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EXHIBIT 10.41    
  

Date:
June 28, 2002 

Mr. Ralph
Quinsey 

Dear
Ralph: 

        On
behalf of TriQuint Semiconductor, Inc. (the "Company"), I am pleased to offer you the position of President and Chief Executive Officer, and member of the Company's Board of
Directors (the "Board"). For 2003 and forward Board membership is subject to the approval of the shareholders. We look forward to working closely with you in the position to build the future success
of the Company. 

        The
terms of your new position with the Company are as set forth below: 

	1.
	Position.

	(a)
	You
will be employed as President, Chief Executive Officer and member of the Board, working out of the Company's headquarters office in Hillsboro, Oregon, reporting to the Board.

	(b)
	You
agree to perform all of the duties and obligations required of you pursuant to the express and implicit terms herein to the best of your ability and experience, and perform such
services loyally and conscientiously, and to the reasonable satisfaction of the Board. During the term of your employment, you further agree that you will devote all of your business time and
attention to the business of the Company; the Company will be entitled to all of the benefits and profits arising from or incident to all such work services; you will not render commercial or
professional services of any nature to any person or organization without the prior written consent of the Board. 

	2.
	Start Date.    Subject to fulfillment of all conditions set forth in this letter agreement, you will commence your position
with the Company on or before July 16, 2002 (the "Start Date").

	3.
	Proof of Right to Work.    For purposes of federal immigration law, you will be required to provide the Company satisfactory
documentary evidence of your identity and eligibility for employment in the United States. Such documentation must be provided to us within three (3) business days of your start date, or our
employment relationship with you may be ended for Termination for Cause.

	4.
	Hire on Bonus.    You will receive a $25,000 hire on bonus which will be paid to you within 60 days of your first day
of employment. The bonus is subject to the appropriate withholdings.

	5.
	Compensation.

	(a)
	Base Salary.    You will be $12,700 per pay period (26 pay periods per year) which equals an annual base salary of
$330,200. Your base salary will be payable pursuant to the Company's regular payroll policy, and shall be subject to appropriate withholdings. (The annualized base salary described above, together
with any subsequent increases thereto, shall be referred to herein as the "Base Salary.")

	(b)
	Bonus.    You will be eligible for an annual target bonus of 50% of your base salary in compliance with performance against a
corporate wide bonus plan. If there is a bonus plan approved by the Board for 2002 you will be eligible to earn a pro rata portion of this bonus for the period ending December 31, 2002 based
upon the amount of time you are employed by the Company in 2002. (The initial annual target bonus amount stated above, together with any subsequent increases thereto, shall be referred to herein as
the "Target Bonus.") The performance criteria for each year beginning with 2003 will be established, after consultation with you. The amount of bonus that you earn for any given year and the payment
schedule 

 

will
be in compliance with the then current plan. In the event of your termination, bonus payout, if any, shall be in accordance with the then current plan. 

	(c)
	Annual Review.    Your compensation and performance will be reviewed at the Focal Review period conducted each year.

	(d)
	Options/Stock Grant.    In connection with the commencement of your employment, we will recommend to the Board that the Board
grant you an option for 500,000 shares of the Company's Common Stock (the "Option Shares"). The option will be granted as an Incentive Stock Option ("ISO") up to $100K value vesting in a calendar year
which is the maximum allowed by the IRS. The amount of the option grant that exceeds the IRS limit will be granted as a NonQualified Stock Option ("NSO"). The option price will be the closing price on
your first day of your employment.    The options will vest according to the terms of the stock option agreement (28% on first anniversary of option grant, then 2% monthly thereafter until
fully vested). After 12 months of continuous employment you will be eligible to participate in the Company's next scheduled annual Stock Option Refresh Program.

	(e)
	Vesting of Stock Options.    In the event of a Termination Without Cause or a Resignation for Good Reason (as defined below)
at any time from the date the Board of Directors approves a transaction which, if consummated, will result in a Change in Control and continuing for twelve (12) months following the effective
date of such Change in Control (as defined in paragraph (f)), the furthest out twelve (12) months of unvested Option Shares shall automatically become fully vested.

	(f)
	Change in Control.    A "Change in Control" of the Company shall be deemed to occur if and when (i) the Company is
merged, consolidated or reorganized into or with another entity, after which the holders of voting securities of the Company immediately prior to such transaction, including voting securities issuable
upon exercise or conversion of vested options, warrants or other securities or rights, hold (directly or indirectly) less than a majority of the combined voting power of the
then-outstanding securities of the surviving entity; (ii) a sale of the stock of the Company occurs, after which the holders of voting securities of the Company immediately prior to
such sale, including voting securities issuable upon exercise or conversion of vested options, warrants or other securities or rights, hold (directly or indirectly) less than a majority of the
combined voting power of the Company; (iii) the Company sells or otherwise transfers all or substantially all of its assets to any other entity, after which the holders of voting securities of
the Company immediately prior to such sale, including voting securities issuable upon exercise or conversion of vested options, warrants or other securities or rights, hold (directly or indirectly)
less than a majority of the combined voting power of the then-outstanding securities of the purchasing entity; or (iv) the membership of the board of directors of the Company
changes as the result of a contested election, such that individuals who were directors at the beginning of any twenty-four (24) month period (whether commencing before or after the
date of this letter) do not constitute a majority of the board of directors at the end of such period.

	(g)
	Termination for Cause.    The term "Termination for Cause" shall mean a termination of your employment by the Company for any
of the following reasons: i) intentional failure to perform assigned duties, ii) personal dishonesty, iii) incompetence, as measured against standards generally prevailing in the
industry, iv) willful misconduct, v) any breach of fiduciary duty involving personal profit, vi) willful violation of any domestic or international law, rule, regulation (other
than traffic violations or similar minor offenses) or final cease and desist order, or any sexual or other harassment of others; vii) not establishing a primary residence in Oregon within the
agreed upon timeframe; provided however, that with respect to reasons i), iii), iv) and vii) above, no Termination for Cause shall be
deemed to have occurred if you have 

Page 2 of 10

 

not been provided with written notice of the factual basis for the alleged failure to perform or incompetence and a thirty (30) day period to take corrective action. In determining
incompetence, the act or omissions shall be measured against standards generally prevailing in the industry. Notwithstanding the foregoing, a Termination for Cause shall not be deemed to have occurred
unless and until there shall have been delivered to you a copy of a resolution duly adopted by the affirmative vote of not less than a "majority" (>50%) of the members of the Board at a meeting of the
Board called and held for that purpose (after reasonable notice to you and an opportunity for you, together with counsel, to be heard before the Board), finding that in the good faith opinion of the
Board, you were guilty of conduct justifying Termination for Cause and specifying the particulars thereof in detail. A termination of your employment by the Company for any other reason than those
stated in i) through vii) above, or under any other circumstances than those stated in this paragraph, shall be a "Termination Without Cause." 

	(h)
	Resignation for Good Reason.    For purposes of this agreement, a "Resignation for Good Reason" shall be deemed to occur if
you resign your employment within sixty (60) days of the occurrence of any of the following that occur without your written consent: (i) a loss of the title of President and/or Chief
Executive Officer (except during the 12 months following a Change in Control (as defined above); (ii) a material reduction in duties or responsibilities; (iii) any reduction in
your Base Salary or any Target Bonus (other than a reduction comparable in percentage to a reduction affecting the Company's executives generally); (iv) any material reduction in your benefits
(other than a reduction affecting the Company's personnel generally); or (v) a Company-mandated relocation of your principal place of employment or your current principal residence by more than
50 miles from its respective Oregon location immediately prior to the resignation; provided however, that a Resignation for Good Reason shall not be
effective until thirty (30) days following delivery by you of a written notice to the Company stating that you are resigning your employment and that such resignation constitutes Resignation
for Good Reason. The Company may at it's discretion, during the 30 day period, review the Reasons for Termination and may reverse the conduct which gave rise to Good Reason, thereby reversing
the Resignation for Good Reason. A resignation of your employment for any other reason or under any other circumstances shall be a "Resignation Without Good Reason." 

	6.
	Benefits.

	(a)
	Relocation.    The Company, at it's cost, will relocate you and your immediate family from your home in Arizona to Portland,
OR in accordance with the attached CEO Relocation Benefit document Attachment 1. It is expected that you will relocate and establish your primary residence in Oregon within 6 months of
your Start Date. In lieu of the 6% Realtor fee the Company will pay to you $18,000 grossed up twice, for taxes, and payment will be made to you within 60 days of Start Date.

	(b)
	Insurance Benefits.    The Company will provide you with its standard medical and dental insurance benefits.

	(c)
	Vacation.    The Company will provide you with its standard time off benefits.

	(d)
	Other Benefits.    You will be eligible to participate in TriQuint 401(k), Employee Stock Purchase Plan, and Profit Sharing
plans. 

	7.
	Confidentiality Agreement.    Your acceptance of this offer and commencement of employment with the Company is contingent upon
the execution, and delivery to an officer of the Company, of the Company's standard Confidentiality Agreement, Business Ethics Policy, Harassment Statement and Company Policies, prior to or on the
Start Date. 

Page 3 of 10

 
	8.
	Severance Benefits.    You shall be entitled to receive severance benefits upon termination or resignation of employment only
as set forth in this Section 8:

	(a)
	Termination for Cause/Resignation Without Good Reason.    In the event of a Termination for Cause or Resignation Without Good
Reason, then you shall not be entitled to receive payment of any severance benefits. You will receive payment(s) for all salary and unpaid Paid Time Off(defined per Company policy) accrued as of the
date of termination of your employment and your benefits will be continued under the Company's then existing benefit plans and policies in accordance with such plans and policies in effect on the date
of termination and in accordance with applicable law.

	(b)
	Termination Without Cause.    In the event of a Termination Without Cause you will be entitled to receive payment, within
thirty (30) days of the date on which your employment terminates, of severance benefits equal to a lump sum payment equivalent to 12 months Base Salary less appropriate witholdings.
Health and life insurance benefits with the same coverage provided to you prior to termination of your employment and in all other respects significantly comparable to those in place immediately prior
to such termination will be provided at the Company's cost over the 12 month period immediately following the termination (the "Severance Period"). Also please refer to
section 5(e).

	(c)
	Resignation for Good Reason.    In the event of a Resignation for Good Reason, then you will be entitled to receive payment,
within thirty (30) days of the date on which your employment terminates, of severance benefits equal to a lump sum payment equivalent to 12 months Base Salary less appropriate
witholdings. Health and life insurance benefits with the same coverage provided to you prior to termination of your employment and in all other respects significantly comparable to those in place
immediately prior to such termination will be provided at the Company's cost over the 12 month period immediately following the termination (the "Severance Period").
Also please refer to section 5(e).

	(d)
	Termination by Reason of Death or Disability.    In the event that your employment with the Company terminates as a result of
your death or Disability (as defined below), you or your estate or legal representative will receive all salary and unpaid Paid Time Off accrued as of the date of your death or
Disability, all severance benefits payable under Section 8(b) above and any other benefits payable under the Company's then existing benefit plans and policies in accordance with such plans and
policies in effect on the date of death or Disability and in accordance with applicable law. For purposes of this Agreement, disability coverage and definition will be in compliance with the then
current Company insured plans. 

	9.
	Miscellaneous Provisions.

	(a)
	Counterparts.    This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which
together will constitute one and the same instrument.

	(b)
	Legal Fees.    The Company agrees to reimburse you for up to $2000 in attorney fees incurred in reviewing, negotiating and
finalizing this Agreement and related documents; provided, however, that if you resign your employment or are terminated for any reason within your first year of employment, you will be responsible
for repaying the entire amount.

	(c)
	Indemnification.    Company shall indemnify you in accordance with the Company's obligations to you as a Director, CEO and
President, as set forth in the Company's Bylaws.

	(d)
	At-Will Employment.    Your employment with TriQuint is at-will and, as such, may be terminated at
any time by you or by the Company for any reason including those defined in Section 8 above. In the event of your Resignation for Good Reason, you will provide the Company with the written
notice required in Section 5(h). 

Page 4 of 10

 

	(e)
	Drug Test.    TriQuint's mandatory drug test policy requires that all new hires be tested for drugs prior to their first day
of work. Therefore this offer is contingent upon passing a pre-employment drug test prior to your start date.

	(f)
	Severability.    If any portion of this Agreement is held invalid or inoperative, the other portions of this Agreement shall
be deemed valid and operative and, so far as is reasonable and possible, effect shall be given to the intent manifested by the portion held invalid or inoperative. The paragraph headings herein are
for reference purposes only and are not intended in any way to describe, interpret, define, or limit the extent or intent of the Agreement or of any part hereof. 

	10.
	Non Compete Agreement.

	(a)
	You
recognize that the Company's willingness to enter into this Agreement is based in material part on your agreement to the provisions of this paragraph 10 and that your
breach of the provisions of this paragraph 10 could materially damage the Company. Subject to the further provisions of this Agreement, You will not, during the term of his employment with the
Company and in the event of a termination without cause/resignation for good reason as defined in Section 5 in the contract, for the duration of any "Severance Period," as also defined in
Section 8b, directly or indirectly, for himself or on behalf of or in conjunction with any other person, company, partnership, corporation, or business of whatever nature:

	(i)
	Engage,
as an officer, director, shareholder, owner, partner, joint venturer, or in a managerial capacity, whether as an employee, independent
contractor, consultant or advisor, or as a sales representative, in any compound semiconductor communications Semiconductor business(Competitor). Should you be hired by a competitor, as defined above,
you agree to pay to TriQuint Semiconductor all net gains on stock options received in the 3 years and 4 months immediately prior to a date that is 4 months after the termination
date from TriQuint Semiconductor. You further agree that this payment will be made within 60 days of the date of requested by TriQuint.

	(ii)
	Contact
any person who is, at that time, an employee of the Company for the purpose or with the intent of enticing such employee away from or out of
the employ of the Company;

	(iii)
	Call
upon any prospective acquisition candidate, on your own behalf or on behalf of any competitor, which candidate was, to your actual knowledge,
either called upon by the Company or for which the Company made an acquisition analysis, for the purpose of acquiring such entity; or

	(iv)
	Disclose
customers, whether in existence or proposed, of the Company to any person, firm, partnership, corporation, or business for any reason or
purpose whatsoever except to the extent that the Company has in the past disclosed such information to the public for valid business reasons. 

	(b)
	It
is agreed by the parties that the foregoing covenants in this Section 10 impose a reasonable restraint on you in light of the activities and business of the Company on the
date of the execution of this Agreement and the current plans of the Company; but it is also the intent of the Company and you that such covenants be construed and enforced in accordance with the
changing activities, business and locations of the Company throughout the term of this covenant, whether before or after the date of termination of the employment of you, unless youwere conducting
such new business prior to the Company conducting such new business. For example, if, during the term of this Agreement, the Company engages in new and different activities, enters a new business, or
establishes new locations for its current activities or business in addition to or other than the activities or business enumerated under the 

Page 5 of 10

 

Recitals
above or the locations currently established therefor, then You will be precluded from soliciting the customers or employees of such new activities or business or from such new location and
from directly competing with such new business, unless the you was conducting such new business prior to the Company conducting such new business. 

	(c)
	The
parties further acknowledge and agree that any violation of the provisions of this Section 10 could cause irreparable injury to the Company, and that no adequate remedy at
law exists for violation of these provisions. Consequently, in addition to any damages, the Company shall be entitled to injunctive relief.

	(d)
	The
covenants in this Section 10 are severable and separate, and the unenforceability of any specific covenant shall not affect the provisions of any other covenant. Moreover,
in the event any court of competent jurisdiction shall determine that the scope, time, or territorial restrictions set forth are unreasonable, then it is the intention of the parties that such
restrictions be enforced to the fullest extent that the court deems reasonable, and the Agreement shall thereby be reformed.

	(e)
	It
is specifically agreed that for purposes of this Section 10, the duration of the Severance Period following termination of employment and the covenants of this
Section 10 operative during the Severance Period shall be extended by any time during which you is in violation of any provision of this Section 10.

	(f)
	The
Company and the you hereby agree that this covenant is a material and substantial part of this Contract. 

	11.
	Dispute Resolution Process.

	(a)
	Election of Remedies.    All disputes arising out of this Agreement, including those relating to the meaning or effect of any
of its provisions, and all disputes arising out any aspect of the employment relationship, including your rights under any federal, state (excluding workers compensation) or local employment and/or
labor law or regulation, shall be exclusively resolved in a final and binding manner through arbitration as set forth in this Section 11. You and the Company therefore expressly waive the right
to litigate any such disputes in any other forum, administrative or judicial, and expressly waive the right to trial by jury.

	(b)
	By You.    You shall have the discretion to invoke final and binding arbitration under Section 11 and upon so doing,
you shall be barred from pursuing the same dispute in any other contractual or statutory forum, regardless of whether you elect to exhaust the chosen procedure.

	(c)
	By the Company.    The Company shall have the discretion to invoke final and binding arbitration as set forth in this
Section 11 when it believes you have violated any of the terms and conditions of this Agreement or you have asserted any violation of this Agreement by the Company, and shall be required to do
so in any dispute in which it claims monetary damages from you. However, this shall not prevent the Company from taking any form of disciplinary action against you, but you shall then have the right
to challenge such action under the procedures established in this Section 11.

	(d)
	Injunctive or Other Equitable Relief.    Nothing in this Section 11 shall prevent you or the Company from seeking
injunctive relief against the other in circumstances allowed by law and/or authorized by any of the terms and conditions of this Agreement.

	(e)
	Initiation of Process.    In the event either party claims any violation of this Agreement, the party must notify the other
party in writing within thirty (30) calendar days of the occurrence or the date the occurrence should reasonably have become known. In the event either party claims any violation of any
applicable statutory right, the party must notify the other party in 

Page 6 of 10

 

writing
within six (6) calendar months of the occurrence or the date the occurrence should reasonably have become known. The notice shall describe the alleged violation and identify any
relevant provisions of this Agreement, the proposed remedy and, if from you, the desired dispute resolution process. 

	(f)
	Mediation.    Upon notification that a dispute exists, either party shall then have thirty (30) calendar days in which
to notify the other that the matter will be referred to mediation (which shall not be adversarial in nature). The parties (or their representatives) shall immediately attempt to agree upon a mediator,
and shall have the right to have representatives, including counsel, present at mediation. 

If
a party does not exercise its right to require mediation within the thirty (30) days or the parties are unable to select a mediator or reach agreement in mediation then, within fifteen
(15) calendar days thereafter, either party may invoke arbitration or the alleged violation(s) shall be deemed waived for all purposes. 

Each
party will bear its own costs and attorneys fees in any mediation, and the mediation fee and any related costs shall be the responsibility of the party demanding mediation. 

	(g)
	Arbitration. Except as expressly modified by this Section 11 (g), arbitration shall follow the procedures established in the
Employment Dispute Resolution Rules of the American Arbitration Association or its successor.

	(h)
	Selection of Arbitrator.    In any such dispute and request for arbitration, the moving party shall submit a request to the
American Arbitration Association for a list of seven National Academy arbitrators maintaining their primary residence in Washington or Oregon. Upon receiving the list, the parties shall alternately
strike one name each, with you striking first, until one name remains on the list.

	(i)
	Conduct of Arbitration Hearing.    Except as expressly modified by this Section 11 (f), the arbitrator shall follow
the procedures established in the Employment Dispute Resolution Rules of the American Arbitration Association and the National Academy of Arbitrators Code of Professional Responsibility. Either party
may require that a professional reporter prepare an official record of the proceedings.

	(j)
	Damages.    An arbitrator selected to hear a dispute shall be authorized to determine and award such damages as either party
could have received in an appropriate action in the Oregon or federal courts under Oregon and/or federal law, and the same shall be true of prevailing party reasonable attorneys fees and costs
incurred in the litigation, excluding any attorneys fees or costs incurred in connection with any mediation.

	(k)
	Arbitration Decision and Award.    The decision of the arbitrator shall be in writing, shall state findings of fact and
conclusions of law, and shall be signed by the arbitrator and served on both parties.

	(l)
	Costs of Arbitration.    Except as otherwise provided in Section 11(f), each party will bear its own costs and
attorneys' fees in any arbitration proceeding and one-half of the arbitrators and any separate arbitration and/or reporting fees.

	(m)
	Severability and Reformation.    You and the Company acknowledge that the law is evolving as it relates to final and binding
arbitration of disputes arising out of employment relationships, and particularly disputes arising under federal and state laws, and therefore all of the provisions of this Section 11 shall be
subject to Section 9(f) of this Agreement. 

Page 7 of 10

 

        We
are delighted to extend you this offer and look forward to working with you. To indicate your acceptance of the Company's offer, please sign and date this letter agreement in the
space provided below and return it to me by Wednesday June 26, 2002. 

        This
letter agreement sets forth the terms of your employment with the Company and supersedes any prior representations or agreements, whether written or oral. This letter agreement may
be modified or amended only by a written agreement, signed by the Company and by you. 

	Very truly yours,	 	 
	

TriQuint Semiconductor, Inc.	
 	

 
	

By:	
 	

/s/ Steve Sharp
 Steve Sharp,

CEO, President, and Chairman of the Board	
 	

 
	

ACCEPTED and AGREED this 1 day of July 2002:	
 	

 
	

By:	
 	

/s/ Ralph Quinsey
 Ralph Quinsey	
 	

 

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QuickLinks

EXHIBIT 10.41<Page>

                              1-800 CONTACTS, INC.

              AMENDED AND RESTATED 1998 INCENTIVE STOCK OPTION PLAN

                                   ARTICLE 1

                           IDENTIFICATION OF THE PLAN

     1.1. TITLE. The plan described herein shall be known as the 1-800 CONTACTS,
INC. 1998 Incentive Stock Option Plan (the "Plan").

     1.2. PURPOSE. The purpose of this Plan is (i) to compensate certain
directors, officers and employees of 1-800 CONTACTS, INC., a Delaware
corporation (the "Company") and its Subsidiaries for services rendered by such
persons after the date of adoption of this Plan to the Company or any
Subsidiary; (ii) to provide certain directors, officers and employees of the
Company and its Subsidiaries with significant additional incentive to promote
the financial success of the Company; and (iii) to provide an incentive which
may be used to induce able persons to serve or remain on the Board of Directors
of the Company or to enter into or remain in the employment of the Company or
any Subsidiary.

     1.3. EFFECTIVE DATE. The Plan became effective upon its approval by the
Board of Directors and the stockholders of the Company (the "Effective Date").

     1.4. DEFINED TERMS. Certain capitalized terms used herein have the meanings
as set forth in Section 10.1 of the Plan.

                                   ARTICLE 2

                           ADMINISTRATION OF THE PLAN

     2.1. INITIAL ADMINISTRATION. This Plan shall initially be administered by
the Board of Directors. The Board of Directors shall delegate the administration
of the Plan to a Compensation Committee (the "Committee") in the event that such
a committee is established by the Board of Directors and is comprised of persons
appointed by the Board of Directors of the Company in accordance with the
provisions of Section 2.3. The Board shall exercise full power and authority
regarding the administration of the Plan until such administration is delegated
to the Committee. Unless the context otherwise requires, references herein to
the Committee shall be deemed to refer to the Board of Directors until the
administration of the Plan has been delegated to the Committee.

     2.2. COMMITTEE'S POWERS. The Committee shall have full power and authority
to prescribe, amend and rescind rules and procedures governing administration of
this Plan. The Committee shall have full power and authority (i) to interpret
the terms of this Plan, the terms of the Options and the rules and procedures
established by the Committee and (ii) to determine the meaning of or
requirements imposed by or rights of any person under this Plan, any Option or
any rule or procedure established by the Committee. Each action of the Committee
which is
<Page>

within the scope of the authority delegated to the Committee by this Plan or by
the Board shall be binding on all persons.

     2.3. COMMITTEE MEMBERSHIP. The Committee shall be composed of two or more
members of the Board, each of whom is an "outside director" as defined in
Section 162(m) of the Code and a "Non-Employee Director," as defined in
Securities and Exchange Commission Rule 16b-3, as amended ("Rule 16b-3"), or any
successor rules or government pronouncements. The Board shall have the power to
determine the number of members which the Committee shall have and to change the
number of membership positions on the Committee from time to time. The Board
shall appoint all members of the Committee. The Board may from time to time
appoint members to the Committee in substitution for, or in addition to, members
previously appointed and may fill vacancies, however caused, on the Committee.
Any member of the Committee may be removed from the Committee by the Board at
any time with or without cause.

     2.4. COMMITTEE PROCEDURES. The Committee shall hold its meetings at such
times and places as it may determine. The Committee may make such rules and
regulations for the conduct of its business as it shall deem advisable. Unless
the Board or the Committee expressly decides to the contrary, a majority of the
members of the Committee shall constitute a quorum and any action taken by a
majority of the Committee members in attendance at a meeting at which a quorum
of Committee members are present shall be deemed an act of the Committee.

     2.5. INDEMNIFICATION. No member of the Committee shall be liable, in the
absence of bad faith, for any act or omission with respect to his or her service
on the Committee under this Plan. Service on the Committee shall constitute
service as a director of the Company so that the members of the Committee shall
be entitled to indemnification and reimbursement as directors of the Company for
any action or any failure to act in connection with service on the Committee to
the full extent provided for at any time in the Company's Certificate of
Incorporation and By-Laws, or in any insurance policy or other agreement
intended for the benefit of the Company's directors.

                                   ARTICLE 3

                       PERSONS ELIGIBLE TO RECEIVE OPTIONS

     A person shall be eligible to be granted an Option only if on the proposed
Granting Date for such Option such person is a full-time, salaried employee of
the Company or any Subsidiary, is currently serving as a member of the Board of
Directors of the Company, or has rendered or is expected to render advisory or
consulting services to the Company or any Subsidiary within a twelve-month
period of the Granting Date. A person eligible to be granted an Option is herein
called a "Grantee."

                                   ARTICLE 4

                                GRANT OF OPTIONS

     4.1. POWER TO GRANT OPTIONS. The Committee shall have the right and the
power to grant at any time to any Grantee an option entitling such person to
purchase Common Stock (the

                                       2
<Page>

"Common Stock") from the Company in such quantity, at such price, on such terms
and subject to such conditions consistent with the provisions of this Plan as
may be established by the Committee on or prior to the Granting Date for such
option. Each option to purchase Common Stock which shall be granted by the
Committee pursuant to the provisions of this Plan is herein called an "Option."

     4.2. GRANTING DATE. An Option shall be deemed to have been granted under
this Plan on the date (the "Granting Date") which the Committee designates as
the Granting Date at the time it approves such Option, provided that the
Committee may not designate a Granting Date with respect to any Option which is
earlier than the date on which the granting of such Option is approved by the
Committee.

     4.3. OPTION TERMS WHICH THE COMMITTEE MAY DETERMINE. The Committee shall
have the power to determine the Grantee to whom Options are granted, the number
of Shares subject to each Option, the number of Options granted to each Grantee
and the time at which each Option is granted. Except as otherwise expressly
provided in this Plan, the Committee shall also have the power to determine, at
the time of the grant of each Option, all terms and conditions governing the
rights and obligations of the holder with respect to such Option. With respect
to any Option, the Committee shall have the power to determine: (a) the purchase
price per Share or the method by which the purchase price per Share will be
determined; (b) the length of the period during which the Option may be
exercised and any limitations on the number of Shares purchasable with the
Option at any given time during such period; (c) the times at which the Option
may be exercised; (d) any conditions precedent to be satisfied before the Option
may be exercised, such as vesting period; (e) any restrictions on resale of any
Shares purchased upon exercise of the Option; (f) the extent to which the Option
may be transferable; and (g) whether the Option will constitute an Incentive
Stock Option.

     4.4. OPTION AGREEMENT. No person shall have any rights under any Option
unless and until the Company and the person to whom such Option is granted have
executed and delivered an agreement expressly granting the Option to such person
and containing provisions setting forth the terms of the Option (an "Option
Agreement"). Unless otherwise provided by the Committee, the form of Stock
Option Agreement attached to this Plan as Exhibit A shall be used by the
Committee in granting nonqualified Options under the Plan.

     4.5. LIMITATION ON SHARES ISSUABLE TO ANY GRANTEE. The aggregate number of
Shares that may relate to Options granted to a Grantee during any calendar year
(including those already exercised by the Grantee) shall not exceed 50,000
shares, as adjusted pursuant to Article 8 of this Plan.

                                   ARTICLE 5

                                  OPTION TERMS

     5.1. PLAN PROVISIONS CONTROL TERMS. The terms of this Plan shall govern all
Options. In the event any provision of any Option Agreement conflicts with any
term in this Plan as constituted on the Granting Date of such Option, the term
in this Plan as constituted on the Granting Date of the Option shall control.
Except as provided in Article 8, the terms of any

                                       3
<Page>

Option may not be changed after the Granting Date of such Option without the
express approval of the Company and the Option Holder.

     5.2. TERM LIMITATION. No Incentive Stock Option may be granted under this
Plan which is exercisable more than ten years after its Granting Date. This
Section 5.2 shall not be deemed to limit the term which the Committee may
specify for any Options (including Options) granted under the Plan which are not
intended to be Incentive Stock Options.

     5.3. TRANSFER OF OPTIONS. An Option granted pursuant to this Plan may be
transferable as provided in the Option Agreement. It shall be a condition
precedent to any transfer of any Option that the transferee executes and
delivers an agreement acknowledging such Option has been acquired for investment
and not for distribution and is and shall remain subject to this Plan and the
Option Agreement. The "Holder" of any Option shall mean (i) the initial grantee
of such Option or (ii) any permitted transferee.

     5.4. $100,000 PER YEAR LIMIT ON INCENTIVE STOCK OPTIONS. No Grantee may be
granted Incentive Stock Options if the value of the Shares subject to those
options which first become exercisable in any given calendar year (and the value
of the Shares subject to any other Incentive Stock Options issued to the Grantee
under the Plan or any other plan of the Company or its Subsidiaries which first
become exercisable in such year) exceeds $100,000. For this purpose, the value
of Shares shall be determined on the Granting Date. Any Incentive Stock Options
issued in excess of the $100,000 limit shall be treated as Options that are not
Incentive Stock Options. Incentive Stock Options shall be taken into account in
the order in which they were granted.

     5.5. NO RIGHT TO EMPLOYMENT CONFERRED. Nothing in this Plan or (in the
absence of an express provision to the contrary) in any Option Agreement (i)
confers any right or obligation on any person to continue in the employ of the
Company or any Subsidiary or (ii) affects or shall affect in any way any
person's right or the right of the Company or any Subsidiary to terminate such
person's employment with the Company or any Subsidiary at any time, for any
reason, with or without cause.

                                   ARTICLE 6

                              REGULATORY COMPLIANCE

     6.1. TAXES. The Company or any Subsidiary shall be entitled, if the
Committee deems it necessary or desirable, to withhold from an Option Holder's
salary or other compensation (or to secure payment from the Option Holder in
lieu of withholding) all or any portion of any withholding or other tax due from
the Company or any Subsidiary with respect to any Shares deliverable under such
Holder's Option or the Committee may (but need not) permit payment of such
withholding by the Company's retention of Shares which would otherwise be
transferred to the Option Holder upon exercise of the Option. In the event any
Common Stock is retained by the Company to satisfy all or any part of the
withholding, the part of the withholding deemed to have been satisfied by such
Common Stock shall be equal to the product derived by multiplying the Per Share
Market Value as of the date of exercise by the number of Shares retained by the
Company. The number of Shares retained by the Company in satisfaction of
withholding shall

                                       4
<Page>

not be a number which when multiplied by the Per Share Market Value as of the
date of exercise would result in a product greater than the withholding amount.
No fractional Shares shall be retained by the Company in satisfaction of
withholding. Notwithstanding Article 7, unless the Board shall otherwise
determine, for each Share retained by the Company in satisfaction of all or any
part of the withholding amount, the aggregate number of Shares subject to this
Plan shall be increased by one Share. The Company may defer delivery under a
Holder's Option until indemnified to its satisfaction with respect to such
withholding or other taxes.

     6.2. SECURITIES LAW COMPLIANCE. Each Option shall be subject to the
condition that such Option may not be exercised if and to the extent the
Committee determines that the sale of securities upon exercise of the Option may
violate the Securities Act or any other law or requirement of any governmental
authority. The Company shall not be deemed by any reason of the granting of any
Option to have any obligation to register the Shares subject to such Option
under the Securities Act or to maintain in effect any registration of such
Shares which may be made at any time under the Securities Act. An Option shall
not be exercisable if the Committee or the Board determines there is non-public
information material to the decision of the Holder to exercise such Option which
the Company cannot for any reason communicate to such Holder.

                                   ARTICLE 7

                           SHARES SUBJECT TO THE PLAN

     Except as provided in Section 6.1 and Article 8, an aggregate of 1,240,000
Shares of Common Stock shall be subject to this Plan. Except as provided in
Section 6.1 and Article 8, the Options shall be limited so that the sum of the
following shall not as of any given time exceed 1,240,000 Shares: (i) all Shares
subject to Options outstanding under this Plan at the given time and (ii) all
Shares which shall have been issued by the Company by reason of the exercise at
or prior to the given time of any of the Options. The Common Stock issued under
the Plan may be either authorized and unissued shares, shares reacquired and
held in the treasury of the Company, or both, all as from time to time
determined by the Board. In the event any Option shall expire or be terminated
before it is fully exercised, then all Shares formerly subject to such Option as
to which such Option was not exercised shall be available for any Option
subsequently granted in accordance with the provisions of this Plan. No
fractional Shares will be eligible to be issued under the Plan.

     In the event of a change in the Shares as presently constituted, which is
limited to a change of all of its authorized shares with par value into the same
number of shares with a different par value or without par value, the shares
resulting from any such change shall be deemed to be the Shares within the
meaning of the Plan.

                                   ARTICLE 8

                     ADJUSTMENTS TO REFLECT ORGANIC CHANGES

     The Board shall appropriately and proportionately adjust the number and
kind of Shares subject to outstanding Options, the price for which Shares may be
purchased upon the exercise of outstanding Options, and the number and kind of
Shares available for Options subsequently

                                       5
<Page>

granted under this Plan to reflect any stock dividend, stock split, combination
or exchange of shares, merger, consolidation or other change in the
capitalization of the Company which the Board determines to be similar, in its
substantive effect upon this Plan or the Options, to any of the changes
expressly indicated in this sentence. The Board may (but shall not be required
to) make any appropriate adjustment to the number and kind of Shares subject to
outstanding Options, the price for which Shares may be purchased upon the
exercise of outstanding Options, and the number and kind of Shares available for
Options subsequently granted under this Plan to reflect any spin-off, spin-out
or other distribution of assets to stockholders or any acquisition of the
Company's stock or assets or other change which the Board determines to be
similar, in its substantive effect upon this Plan or the Options, to any of the
changes expressly indicated in this sentence. The Committee shall have the power
to determine the amount of the adjustment to be made in each case described in
the preceding two sentences, but no adjustment approved by the Committee shall
be effective until and unless it is approved by the Board. In the event of any
reorganization, reclassification, consolidation, merger or sale of all or
substantially all of the Company's assets which is effected in such a way that
holders of Common Stock are entitled to receive (either directly or upon
subsequent liquidation) stock, securities or assets with respect to or in
exchange for Common Stock, the Board may (but shall not be required to)
substitute the per share amount of such stock, securities or assets for Shares
upon any subsequent exercise of any Option.

                                   ARTICLE 9

                      AMENDMENT AND TERMINATION OF THE PLAN

     9.1. AMENDMENT. Except as provided in the following two sentences, the
Board shall have complete power and authority to amend this Plan at any time and
no approval by the Company's stockholders or by any other person, committee or
other entity of any kind shall be required to make any amendment approved by the
Board effective. So long as the Common Stock is eligible for trading on the
Nasdaq National Market, the Board shall obtain stockholder approval for those
amendments of the Plan required to be so approved pursuant to the By-laws of the
National Association of Securities Dealers. The Board shall not, without the
affirmative approval of the Company's stockholders, amend the Plan in any manner
which would cause any outstanding Incentive Stock Options to no longer qualify
as Incentive Stock Options. No termination or amendment of this Plan may,
without the consent of the Holder of any Option prior to termination or the
adoption of such amendment, materially and adversely affect the rights of such
Holder under such Option.

     9.2. TERMINATION. The Board shall have the right and the power to terminate
this Plan at any time, provided that no Incentive Stock Options may be granted
after the tenth anniversary of the adoption of this Plan. No Option shall be
granted under this Plan after the termination of this Plan, but the termination
of this Plan shall not have any other effect. Any Option outstanding at the time
of the termination of this Plan may be exercised after termination of this Plan
at any time prior to the Expiration Date of such Option to the same extent such
Option would have been exercisable had this Plan not terminated.

                                       6
<Page>

                                   ARTICLE 10

                  DEFINITIONS AND OTHER PROVISIONS OF THE PLAN

     10.1. DEFINITIONS. Each term defined in this Section 10.1 has the meaning
indicated in this Section 10.1 whenever such term is used in this Plan:

     "Board of Directors" and "Board" both mean the Board of Directors of the
Company as constituted at the time the term is applied.

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

     "Committee" has the meaning such term is given in Section 2.1 of this Plan.

     "Common Stock" means the issued or issuable Common Stock, par value $.01
per share, of the Company.

     "Company" as applied as of any given time shall mean 1-800 CONTACTS, INC.,
a Delaware corporation, except that if prior to the given time any corporation
or other entity has acquired all or a substantial part of the assets of the
Company (as herein defined) and has agreed to assume the obligations of the
Company under this Plan, or is the survivor in a merger or consolidation to
which the Company was a party, such corporation or other entity shall be deemed
to be the Company at the given time.

     "Expiration Date" as applied to any Option means the date specified in the
Option Agreement between the Company and the Holder as the expiration date of
such Option. If no expiration date is specified in the Option Agreement relating
to any Option, then the Expiration Date of such Option shall be the day prior to
the tenth anniversary of the Granting Date of such Option. Notwithstanding the
preceding sentences, if the person to whom any Incentive Stock Option is granted
owns, on the Granting Date of such Option, stock possessing more than ten
percent of the total combined voting power of all classes of stock of the
Company (or of any parent or Subsidiary of the Company in existence on the
Granting Date of such Option), and if no expiration date is specified in the
Option Agreement relating to such Option, then the Expiration Date of such
Option shall be the day prior to the fifth anniversary of the Granting Date of
such Option.

     "Grantee" has the meaning such term is given in Article 3 of this Plan.

     "Granting Date" has the meaning such term is given in Section 4.2 of this
Plan.

     "Holder" has the meaning such term is given in Section 5.3 of this Plan.

     "Incentive Stock Option" means an incentive stock option, as defined in
Code Section 422, which is granted pursuant to this Plan.

     "Option" has the meaning such term is given in Section 4.1 of this Plan.

     "Option Agreement" has the meaning such term is given in Section 4.4 of
this Plan.

                                       7
<Page>

     "Per Share Market Value" on any given date shall be the fair market value
of one Share as of the close of business on the given date determined in such
manner as shall be prescribed in good faith by the Committee; provided, that as
long as the Shares are traded on a national securities exchange or national
automated quotation system (such as the Nasdaq National Market), the Per Share
Market Value shall be the reported closing price of the Shares on such date.

     "Plan" has the meaning such term is given in Section 1.1 of this Plan.

     "Securities Act" at any given time shall consist of: (i) the Securities Act
of 1933 as constituted at the given time; (ii) any other law or laws promulgated
prior to the given time by the United States Government which are in effect at
the given time and which regulate or govern any matters at any time regulated or
governed by the Securities Act of 1933; (iii) all regulations, rules,
registration forms and other governmental pronouncements issued under the laws
specified in clauses (i) and (ii) of this sentence which are in effect at the
given time; and (iv) all interpretations by any governmental agency or authority
of the things specified in clause (i), (ii) or (iii) of this sentence which are
in effect at the given time. Whenever any provision of this Plan requires that
any action be taken in compliance with any provision of the Securities Act, such
provision shall be deemed to require compliance with the Securities Act as
constituted at the time such action takes place.

     "Share" means a share of Common Stock.

     "Subsidiary" means any corporation in which the Company owns, directly or
indirectly, 50% or more of the total combined voting power of all classes of
securities of such corporation.

     10.2. HEADINGS. Section headings used in this Plan are for convenience
only, do not constitute a part of this Plan and shall not be deemed to limit,
characterize or affect in any way any provisions of this Plan. All provisions in
this Plan shall be construed as if no headings had been used in this Plan.

     10.3. SEVERABILITY.

     (a)  General. Whenever possible, each provision in this Plan and in every
Option at any time granted under this Plan shall be interpreted in such manner
as to be effective and valid under applicable law, but if any provision of this
Plan or any Option at any time granted under this Plan is held to be prohibited
by or invalid under applicable law, then (i) such provision shall be deemed
amended to accomplish the objectives of the provision as originally written to
the fullest extent permitted by law and (ii) all other provisions of this Plan
and every Option at any time granted under this Plan shall remain in full force
and effect.

     (b)  Incentive Stock Options. Whenever possible, each provision in this
Plan and in every Option at any time granted under this Plan which is evidenced
by an Option Agreement which expressly states such Option is intended to
constitute an Incentive Stock Option under Code Section 422 (an "intended ISO")
shall be interpreted in such manner as to entitle such intended ISO to the tax
treatment afforded by the Code to Options which do constitute Incentive Stock
Options under Code Section 422, but if any provision of this Plan or any
intended ISO at any time granted under this Plan is held to be contrary to the
requirements necessary to entitle

                                       8
<Page>

such intended ISO to the tax treatment afforded by the Code to Options which do
constitute Incentive Stock Options under Code Section 422, then (i) such
provision shall be deemed to have contained from the outset such language as
shall be necessary to entitle such intended ISO to the tax treatment afforded by
the Code to Options which do constitute Incentive Stock Options under Code
Section 422, and (ii) all other provisions of this Plan and such intended ISO
shall remain in full force and effect. If any Option Agreement covering an
intended ISO granted under this Plan does not explicitly include any terms
required to entitle such intended ISO to the tax treatment afforded by the Code
to Options which do constitute Incentive Stock Options under Code Section 422,
then all such terms shall be deemed implicit in the intention to afford such
treatment to such Option and such Option shall be deemed to have been granted
subject to all such terms.

     10.4. NO STRICT CONSTRUCTION. No rule of strict construction shall be
applied against the Company, the Committee or any other person in the
interpretation of any of the terms of this Plan, any Option or any rule or
procedure established by the Committee.

     10.5. CHOICE OF LAW. This Plan and all documents contemplated hereby, and
all remedies in connection therewith and all questions or transactions relating
thereto, shall be construed in accordance with and governed by the internal laws
of the State of Delaware.

     10.6. TAX CONSEQUENCES. Tax consequences from the purchase and sale of
Shares may differ among grantees under the Plan. Each grantee of an Option
should discuss specific tax questions regarding participation in the Plan with
his or her own tax advisor.

                                       9

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