Document:

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                                                                     EXHIBIT 4.5

                        ACCENT OPTICAL TECHNOLOGIES, INC.

                            INVESTOR RIGHTS AGREEMENT

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                                                CONTENTS
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SECTION 1    GENERAL..........................................................................     1

    1.1      Definitions......................................................................     1

SECTION 2    REGISTRATION; RESTRICTIONS ON TRANSFER...........................................     3

    2.1      Restrictions on Transfer.........................................................     3

    2.2      Piggyback Registrations..........................................................     6

    2.3      Form S-3 Registration............................................................     7

    2.4      Expenses of Registration.........................................................     9

    2.5      Obligations of the Company.......................................................     9

    2.6      Termination of Registration Rights...............................................     10

    2.7      Delay of Registration; Furnishing Information....................................     11

    2.8      Indemnification..................................................................     11

    2.9      Assignment of Registration Rights................................................     13

    2.10     Amendment of Registration Rights.................................................     13

    2.11     "Market Stand-Off" Agreement; Agreement to Furnish Information...................     14

SECTION 3    COVENANTS OF COMPANY.............................................................     14

    3.1      Basic Financial Information and Reporting........................................     14

    3.2      Inspection Rights................................................................     15

    3.3      Termination of Information and Inspection Rights.................................     15

SECTION 4    MISCELLANEOUS....................................................................     15

    4.1      Governing Law....................................................................     15

    4.2      Successors and Assigns...........................................................     16

    4.3      Entire Agreement.................................................................     16
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4.4      Severability.....................................................................     16

4.5      Amendment and Waiver.............................................................     16

4.6      Notices..........................................................................     16

4.7      Attorneys' Fees..................................................................     17

4.8      Titles and Subtitles.............................................................     17

4.9      Counterparts.....................................................................     17
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                        ACCENT OPTICAL TECHNOLOGIES, INC.

                            INVESTOR RIGHTS AGREEMENT

         THIS INVESTOR RIGHTS AGREEMENT (this "Agreement") is entered into as of
the 9th day of November 2000 (the "Execution Date"), by and among ACCENT OPTICAL
TECHNOLOGIES, INC., a Delaware corporation (the "Company") and the purchasers of
the Company's Convertible Preferred Stock ("Convertible Preferred Stock") each
of whom is set forth on Exhibit A of, and defined in, that certain Convertible
Preferred Stock Purchase Agreement of even date herewith (the "Purchase
Agreement") and also set forth on Exhibit A attached hereto (collectively, the
purchasers of the Convertible Preferred Stock shall be referred to hereinafter
as the "Investors" and each individually as an "Investor").

         THE PARTIES ENTER THIS AGREEMENT ON THE BASIS OF THE FOLLOWING FACTS,
UNDERSTANDINGS AND INTENTIONS:

         A.       The Company proposes to sell and issue up to 9,756,098 shares
of its Convertible Preferred Stock pursuant to the Purchase Agreement; and

         B.       As a condition of entering into the Purchase Agreement, the
Investors have requested that the Company extend to them registration rights and
information rights as set forth below; and

         C.       The Company and the Investors desire to set forth certain
agreements relating to the transfer of the Shares.

         NOW, THEREFORE, in consideration of the mutual promises,
representations, warranties, covenants and conditions set forth in this
Agreement and in the Purchase Agreement, the parties mutually agree as follows:

SECTION 1 GENERAL

         1.1      DEFINITIONS

         As used in this Agreement the following terms shall have the following
respective meanings:

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

         "Form S-3" means such form under the Securities Act as in effect on the
Execution Date or any successor registration form under the Securities Act
subsequently adopted by the SEC which permits inclusion or incorporation of

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substantial information by reference to other documents filed by the Company
with the SEC.

         "Holder" means any person owning of record any Shares or Registrable
Securities that have not been sold to the public.

         "Major Investor" means an Investor (with its affiliates) who owns not
less than 25% of the common stock in the share capital of the Company ("Common
Stock") issued or issuable upon conversion of the Convertible Preferred Stock.

         "Qualified IPO" means a public offering (whether or not underwritten,
but excluding any offering pursuant to Form S-8 under the Securities Act or any
other publicly registered offering pursuant to the Securities Act solely
pertaining to an issuance of shares of Common Stock of the Company or securities
exercisable therefor under any benefit plan, employee compensation plan, or
employee or director stock purchase plan) of the Common Stock of the Company
pursuant to an effective registration statement under the Securities Act in
which Company receives aggregate gross proceeds of at least $35,000,000.

         "Register," "registered," and "registration" refer to a registration
effected by preparing and filing a registration statement in compliance with the
Securities Act, and the declaration or ordering of effectiveness of such
registration statement or document.

         "Registrable Securities" means (a) Common Stock of the Company issued
or issuable upon conversion of the Shares; and (b) any Common Stock of the
Company issued as (or issuable upon the conversion or exercise of any warrant,
right or other security which is issued as) a dividend or other distribution
with respect to, or in exchange for or in replacement of, such above-described
securities.

         "Registrable Securities then outstanding" shall be the number of shares
determined by calculating the total number of shares of the Company's Common
Stock that are Registrable Securities and either (a) are then issued and
outstanding or (b) are issuable pursuant to then exercisable or convertible
securities.

         "Registration Expenses" shall mean all expenses incurred by the Company
in complying with Sections 2.2 and 2.3 hereof, including, without limitation,
all registration and filing fees, printing expenses, fees and disbursements of
counsel for the Company, blue sky fees and expenses, the expense of any special
audits incident to or required by any such registration (but excluding the
compensation of regular employees of the Company which shall be paid in any
event by the Company), but excluding the Selling Expenses and the legal fees and
other costs and expenses incurred by the selling Investors in connection with
the registration.

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         "SEC" or "Commission" means the Securities and Exchange Commission.

         "Securities Act" shall mean the Securities Act of 1933, as amended.

         "Securityholders Agreement" shall mean that certain Securityholders
Agreement dated as of July 31, 2000, by and among the Company and its existing
securityholders, as such agreement may be amended, restated, supplemented or
modified from time to time.

         "Selling Expenses" shall mean all underwriting discounts and selling
commissions applicable to the sale of securities.

         "Shares" shall mean the Company's Convertible Preferred Stock issued
pursuant to the Purchase Agreement and held by the Investors listed on Exhibit A
hereto or their permitted transferees or assigns.

SECTION 2 REGISTRATION; RESTRICTIONS ON TRANSFER

         2.1      RESTRICTIONS ON TRANSFER.

                  (a)      Each Holder agrees not to make any disposition of all
or any portion of the Shares or Registrable Securities unless and until:

                  (i)      There is then in effect a registration statement
         under the Securities Act covering such proposed disposition and such
         disposition is made in accordance with such registration statement; or

                  (ii)     (A) The transferee has agreed in writing to be bound
         by the terms of this Agreement, (B) such Holder shall have notified the
         Company of the proposed disposition and shall have furnished the
         Company with a detailed statement of the circumstances surrounding the
         proposed disposition, and (C) if reasonably requested by the Company,
         such Holder shall have furnished the Company with an opinion of
         counsel, reasonably satisfactory to the Company, that such disposition
         will not require registration under the Securities Act.

                  (iii)    Notwithstanding the provisions of paragraphs (i) and
         (ii) immediately above, no such registration statement or opinion of
         counsel shall be necessary for a transfer by a Holder which is (A) a
         partnership to its partners or former partners in accordance with
         partnership interests, or (B) a limited liability company to its
         members or former members in accordance with their interest in the
         limited liability company; provided that in each case the transferee
         will be subject to the terms of this Agreement to the same extent as if
         he were an original Holder hereunder, subject to Section 2.9.

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                  (b)      Notwithstanding any provision in Section 2.1(a) of
this Agreement, subject to the terms and conditions set forth in Section 2.1(b),
each Holder hereby grants a right of first refusal with respect to future sales
or dispositions of its Shares or Registrable Securities to the Company until the
initial Qualified IPO. As used in Sections 2.1(b), 2.1(c) and 2.1(d), references
to "Shares" shall mean "Shares and / or Registrable Securities." Each time a
Holder proposes to offer any Shares, the Holder shall first make an offering of
such Shares to the Company, in accordance with the following provisions:

                  (i)      The Holder shall deliver a notice by certified mail
         (a "Notice") to the Company stating (i) its bona fide intention to
         offer such Shares, (ii) the number of such Shares to be offered and
         (iii) the price and terms, if any, upon which it proposes to offer such
         Shares. Within thirty (30) calendar days after receipt of the Notice,
         the Company may elect to purchase all or a portion of the Shares at the
         price and on the terms specified in the Notice.

                  (ii)     After the expiration of the thirty (30) calendar day
         period set forth in Section 2.1(b)(i), the Holder may offer the then
         remaining unsubscribed portion of such Shares (if any) during the
         ensuing thirty (30) calendar day period to any person or persons at a
         price not less than, and upon terms no more favorable to the offeree
         than, those specified in the Notice. If the Holder does not enter into
         an agreement for the sale of the Shares within such period, or if such
         agreement is not consummated within thirty (30) calendar days of the
         execution thereof, the right provided hereunder shall be deemed to be
         revived and such Shares shall not be offered unless first reoffered to
         the Company in accordance herewith.

                  (c)      If at any time prior to the initial Qualified IPO,
one or more Securityholder(s) (as defined in the Securityholders Agreement;
each, a "Selling Securityholder" or collectively, the "Selling Securityholders")
proposes to sell or otherwise dispose of any of its, his or their Common Stock
(including without limitation by way of a purchase agreement, tender offer,
merger or other business combination or otherwise), which equal in the aggregate
at least 50% (fifty percent) of the then outstanding Common Stock of the Company
(any such sale a "Drag-Along Sale"), then, upon the request of any such Selling
Securityholder, each of the Holders shall sell the Applicable Drag Percentage
(as defined below) of its Shares at a per share price of no less than US$2.05
plus all accrued and unpaid dividends per Share, but otherwise on the same terms
and conditions as applied to the Selling Securityholder(s)' disposition. For the
avoidance of doubt, nothing in this provision shall limit the rights of the
Selling Securityholders to sell their securities at a per share price of less
than US$2.05 in any Drag-Along Sale. If the offer price in the Drag-Along Sale
consists in whole or in part of consideration other than cash, the value of such
consideration shall be the fair market value of such non-cash consideration as

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determined by an investment banker of national reputation acceptable to the
Company. The Selling Securityholder(s) shall provide written notice of such
Drag-Along Sale to each Holder not later than ten (10) business days prior to
the proposed Drag-Along Sale. Such notice shall identify the proposed purchaser,
the number and type of securities proposed to be sold, the consideration offered
and any other material terms and conditions of the Drag-Along Sale. The Selling
Securityholder(s) shall have 180 days from the expiration of such ten (10)
business day period to consummate the proposed Drag-Along Sale; provided that
the Selling Securityholder(s) shall in any event endeavor to consummate the
proposed Drag-Along Sale as expeditiously as practicable. "Applicable Drag
Percentage" means, in connection with any Drag-Along Sale, the higher of (i) 50%
and (ii) the percentage of the total number of Common Stock then held by the
Selling Securityholder selling the highest number of shares of Common Stock in
the Drag-Along Sale to be sold in the Drag-Along Sale. For the purpose of this
Section 2.1(c), number of shares of Common Stock shall be calculated on an
as-converted basis and shall include Common Stock issuable upon the exercise of
vested options.

                  (d)      Each certificate representing Shares or Registrable
Securities shall (unless otherwise permitted by the provisions of the Agreement)
be stamped or otherwise imprinted with a legend substantially similar to the
following (in addition to any legend required under applicable state securities
laws):

         THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
         UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY BE OFFERED AND
         SOLD ONLY IF SO REGISTERED OR IN A MANNER EXEMPT FROM REGISTRATION
         UNDER SUCH ACT. THE SECURITIES REPRESENTED BY THIS CERTIFICATE ALSO ARE
         SUBJECT TO ADDITIONAL RESTRICTIONS ON TRANSFER AS SET FORTH IN THE
         INVESTOR RIGHTS AGREEMENT OF ACCENT OPTICAL TECHNOLOGIES, INC. (THE
         "COMPANY"), DATED AS OF NOVEMBER 9, 2000, COPIES OF WHICH MAY BE
         OBTAINED FROM THE COMPANY. NO TRANSFER OF THESE SECURITIES WILL BE MADE
         ON THE BOOKS OF THE COMPANY UNLESS ACCOMPANIED BY EVIDENCE OF
         COMPLIANCE WITH THE TERMS OF SUCH AGREEMENT.

                  (e)      The Company shall be obligated to reissue promptly
unlegended certificates at the request of any Holder thereof if the Holder shall
have obtained an opinion of counsel (which counsel may be counsel to the
Company) reasonably acceptable to the Company to the effect that the securities
proposed to be disposed of may lawfully be so disposed of without registration,
qualification or legend.

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                  (f)      Any legend endorsed on an instrument pursuant to
applicable state securities laws and the stop-transfer instructions with respect
to such securities shall be removed upon receipt by the Company of an order of
the appropriate blue sky authority authorizing such removal.

         2.2      PIGGYBACK REGISTRATIONS

         Beginning six months after the Qualified IPO, the Company shall notify
all Investors in writing at least fifteen (15) days prior to the filing of any
registration statement under the Securities Act for purposes of a public
offering of securities of the Company (excluding registration statements (i)
relating to any securities issued to one or more employees of the Company
pursuant to and in accordance with any employee benefit plan, agreement or
arrangement that has been approved by the Board, or (ii) with respect to
corporate reorganizations or other transactions under Rule 145 of the Securities
Act) and will afford each such Investor an opportunity to include in such
registration statement all or part of such Registrable Securities held by such
Investor; provided that Investors holding at least 75% of the Registrable
Securities then outstanding participate. Each Investor desiring to include in
any such registration statement all or any part of the Registrable Securities
held by it shall, within fifteen (15) days after the above-described notice from
the Company, so notify the Company in writing. Such notice shall state the
intended method of disposition of the Registrable Securities by such Investor.
If an Investor decides not to include all of its Registrable Securities in any
registration statement thereafter filed by the Company, such Investor shall
nevertheless continue to have the right to include any Registrable Securities in
any subsequent registration statement or registration statements as may be filed
by the Company with respect to offerings of its securities, all upon the terms
and conditions set forth herein.

                  (a)      Underwriting. If the registration statement under
which the Company gives notice under Section 2.2 is for an underwritten
offering, the Company shall so advise the Investors. In such event, the right of
any Investor to be included in a registration pursuant to Section 2.2 shall be
conditioned upon such Investor's participation in such underwriting and the
inclusion of such Investor's Registrable Securities in the underwriting to the
extent provided herein. All Investors proposing to distribute their Registrable
Securities through such underwriting shall enter into an underwriting agreement
in customary form with the underwriter or underwriters selected for such
underwriting by the Company and provide representations, warranties,
indemnifications and opinions as may be requested by the Company.
Notwithstanding any other provision of this Agreement, if the underwriter
determines in good faith that marketing or other factors require a limitation of
the number of shares to be underwritten, the number of shares that may be
included in the underwriting shall be allocated, first, to the Company; second,
to the Securityholders (as defined in the Securityholders Agreement)
participating in such registration; third,

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Investors on a pro rata basis based on the total number of Registrable
Securities held by the Investors participating in the underwriting. No such
reduction shall reduce the securities being offered by the Company for its own
account to be included in the registration and underwriting. If any Investor
disapproves the terms of any such underwriting, such Investor may elect to
withdraw therefrom by written notice to the Company and the underwriter,
delivered at least ten (10) business days prior to the effective date of the
registration statement. Any Registrable Securities excluded or withdrawn from
such underwriting shall be excluded and withdrawn from the registration and the
withdrawing Investor shall nevertheless bear its pro rata costs of the Selling
Expenses in accordance with Section 2.4 as if it were included in the
registration.

                  (b)      Right to Terminate Registration. The Company shall
have the right to terminate or withdraw any registration initiated by it under
Section 2.2 prior to the effectiveness of such registration whether or not any
Investor has elected to include securities in such registration. The
Registration Expenses of such withdrawn registration shall be borne by the
Company in accordance with Section 2.4 hereof.

         2.3      FORM S-3 REGISTRATION

         In case the Company shall receive from 75% of the Investors (the
"Initiating Holders") a written request or requests that the Company effect a
registration on Form S-3 (or any successor to Form S-3) or any similar
short-form registration statement and any related qualification or compliance
with respect to all or a part of the Registrable Securities owned by such
Initiating Holder(s), the Company will:

                  (a)      as soon as reasonably practicable, give written
notice of the proposed registration, and any related qualification or
compliance, to all other Investors and other holders that may be entitled to
participate in such proposed registration; and

                  (b)      as soon as reasonably practicable, effect such
registration and all such qualifications and compliances as may be so requested
and as would permit or facilitate the sale and distribution of all or such
portion of such Initiating Holders' Registrable Securities or other eligible
holders' securities as are specified in such request, together with all or such
portion of the Registrable Securities of any other Investors joining in such
request as are specified in a written request given within fifteen (15) days
after receipt of such written notice from the Company; provided, however, that
the Company shall not be obligated to effect any such registration,
qualification or compliance pursuant to Section 2.3:

                  (i)      if Form S-3 (or any successor or similar form) is not
         available for such offering requested by the Initiating Holders, or

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                  (ii)     if the Investors, together with the holders of any
         other securities of the Company entitled to inclusion in such
         registration, propose to sell Registrable Securities and such other
         securities (if any) at an aggregate price to the public of less than
         US$5,000,000, or

                  (iii)    if within thirty (30) days after receipt of a written
         request from the Initiating Holder(s) pursuant to Section 2.3, the
         Company gives written notice to such Initiating Holder(s) of the
         Company's good faith intention to make a public offering within ninety
         (90) days;

                  (iv)     if the Company shall furnish to the Initiating
         Holders a certificate signed by the Chairman of the Board of Directors
         of the Company stating that in the judgment of the Board of Directors
         of the Company, it would not be in the best interest of the Company for
         such Form S-3 registration to be effected at such time, in which event
         the Company shall have the right to defer the filing of the Form S-3
         registration statement for a period of not more than one hundred twenty
         (120) days after receipt of the request of the Initiating Holder(s)
         under Section 2.3;

                  (v)      if the Company has, within the twelve (12) month
         period preceding the date of such request, already effected one
         registration on Form S-3 for any Investor pursuant to Section 2.3;

                  (vi)     if the Company has effected two (2) registrations
         pursuant to Section 2.3 and such registrations have been declared
         effective;

                  (vii)    during the period ending 180 days after the effective
         date of any registration statement subject to Section 2.2; or

                  (viii)   in any particular jurisdiction in which the Company
         would be required to qualify to do business or to execute a general
         consent to service of process in effecting such registration,
         qualification or compliance.

                  (c)      Subject to the foregoing, the Company shall file a
Form S-3 registration statement covering the Registrable Securities and other
securities so requested to be registered as soon as reasonably practicable after
receipt of the written request or requests of the Initiating Holder(s). If the
underwriter determines in good faith that marketing or other factors require a
limitation of the number of shares to be underwritten in such offering, the
number of shares that may be included in the underwriting shall be reduced on a
pro rata basis based on the total number of securities held by the all Investors
or holders participating in the underwriting.

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         2.4      EXPENSES OF REGISTRATION

         Except as specifically provided herein, all Registration Expenses
incurred in connection with any registration under Section 2.2 or Section 2.3
shall be borne by the Company. All Selling Expenses incurred in connection with
any registrations hereunder shall be borne by the holders of the securities so
registered pro rata on the basis of the number of shares so registered. The
Company shall not, however, be required to pay for expenses of any registration
proceeding begun pursuant to Section 2.3, the request of which has been
subsequently withdrawn by the Initiating Holders, in which case such expenses
shall be borne by the Initiating Holders, unless (a) the withdrawal is based
upon material adverse information concerning the Company of which the Initiating
Holders were not aware at the time of such request or (b) the Investors holding
75% of Registrable Securities agree to forfeit their right to one requested
registration, in which event such right shall be forfeited by all Investors. If
the Investors are required to pay the Registration Expenses, such expenses shall
be borne by the Investors requesting such registration in proportion to the
number of shares for which registration was requested. If the Company is
required to pay the Registration Expenses of a withdrawn offering pursuant to
clause (a) above, then the Investors shall not forfeit their rights pursuant to
Section 2.3 to a registration.

         2.5      OBLIGATIONS OF THE COMPANY

         Whenever required to effect the registration of any Registrable
Securities, the Company shall, within a commercially reasonable time frame:

                  (a)      Prepare and file with the SEC a registration
statement with respect to such Registrable Securities and use commercially
reasonable efforts to cause such registration statement to become effective,
and, upon the request of the Investors holding 75% of the Registrable Securities
registered thereunder, use commercially reasonable efforts to keep such
registration statement effective for up to thirty (30) days or, if earlier,
until the Investor(s) have completed the distribution related thereto, but in no
event shall the Company be obligated to do so for longer than thirty (30) days.
The Company shall not be required to file, cause to become effective or maintain
the effectiveness of any registration statement that contemplates a distribution
of securities on a delayed or continuous basis pursuant to Rule 415 under the
Securities Act.

                  (b)      Prepare and file with the SEC such amendments and
supplements to such registration statement and the prospectus used in connection
with such registration statement as may be necessary to comply with the
provisions of the Securities Act with respect to the disposition of all
securities covered by such registration statement for the period set forth in
paragraph (a) immediately above.

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                  (c)      Furnish to the Investors holding Registrable
Securities such number of copies of a prospectus, including a preliminary
prospectus, in conformity with the requirements of the Securities Act, and such
other documents as they may reasonably request regarding their disposition of
Registrable Securities owned by them.

                  (d)      In the event of any underwritten public offering,
enter into and perform its obligations under an underwriting agreement, in usual
and customary form, with the managing underwriter(s) of such offering. Each
Investor participating in such underwriting shall also enter into and perform
its obligations under such agreement and provide the representations,
warranties, indemnifications and opinions as may be requested by the Company.

                  (e)      Notify each Investor holding Registrable Securities
covered by such registration statement at any time when a prospectus relating
thereto is required to be delivered under the Securities Act of the happening of
any event known to the Company, as a result of which event the prospectus
included in such registration statement, as then in effect, includes an untrue
statement of a material fact or omits to state a material fact required to be
stated therein or necessary to make the statements therein not misleading in the
light of the circumstances then existing.

                  (f)      Use commercially reasonable efforts to furnish, on
the date that such Registrable Securities are delivered to the underwriters for
sale, if such securities are being sold through underwriters, (i) an opinion,
dated as of such date, of the counsel representing the Company for the purposes
of such registration, in form and substance as is customarily given to
underwriters in an underwritten public offering, addressed to the underwriters,
if any, and (ii) a letter dated as of such date, from the independent certified
public accountants of the Company, in form and substance as is customarily given
by independent certified public accountants to underwriters in an underwritten
public offering addressed to the underwriters.

         2.6      TERMINATION OF REGISTRATION RIGHTS

         All registration rights granted under Section 2 shall terminate and be
of no further force and effect at the earlier of (i) three (3) years after the
date of the Company's Qualified IPO, and (ii) with respect to any Investor
(together with affiliates and partners), such time as such Investor may sell
under Rule 144k or sell all such shares during any one quarter period under Rule
144.

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         2.7      DELAY OF REGISTRATION; FURNISHING INFORMATION

                  (a)      No Investor shall have any right to obtain or seek an
injunction restraining or otherwise delaying any such registration as the result
of any controversy that might arise with respect to the interpretation or
implementation of Section 2.

                  (b)      It shall be a condition precedent to the obligations
of the Company to take any action pursuant to Section 2.2 or 2.3 that the
selling Investors shall furnish to the Company such information regarding
themselves, the Registrable Securities held by them and the intended method of
disposition of such securities as shall be required to effect the registration
of their Registrable Securities.

                  (c)      The Company shall have no obligation with respect to
any registration requested pursuant to Section 2.3 if, due to the operation of
Section 2.3, the number of shares or the anticipated aggregate offering price of
the Registrable Securities to be included in the registration does not equal or
exceed the number of shares or the anticipated aggregate offering price required
to originally trigger the Company's obligation to initiate such registration as
specified in Section 2.3.

                  (d)      The Company may, by written notice to each Investor
holding Registrable Securities, suspend for up to 120 consecutive days the
filing of any registration statement under this Agreement or up to 180
consecutive days the right of all Investors to sell Registrable Securities
pursuant to an effective registration statement in any calendar year if the
Board of Directors of the Company determines that such suspension is in the best
interest of the Company.

         2.8      INDEMNIFICATION

         In the event any Registrable Securities are included in a registration
statement under Sections 2.2 or 2.3:

                  (a)      To the extent permitted by law, each Investor will,
if Registrable Securities held by such Investor are included in the securities
as to which such registration is being effected, indemnify and hold harmless the
Company, each of its directors, its officers, its affiliates, its stockholders
and each person, if any, who controls the Company within the meaning of the
Securities Act, any underwriter and any other securityholder of the Company
selling securities under such registration statement or any of such other
securityholder's partners, directors, officers, affiliates or stockholders or
any person who controls such securityholder, against any losses, claims, damages
or liabilities (joint or several) to which the Company or any such director,
officer, affiliates, stockholders, controlling person, underwriter or other such
securityholder, or partner, director, officer, affiliate, stockholder or
controlling person of such other securityholder may become subject under the
Securities Act, the

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Exchange Act or other federal or state law, insofar as such losses, claims,
damages or liabilities (or actions in respect thereto) arise out of or are based
upon any of the following statements, omissions or violations (collectively a
"Violation") by such Investor: (i) any untrue statement or alleged untrue
statement of a material fact contained in such registration statement, including
any preliminary prospectus or final prospectus contained therein or any
amendments or supplements thereto, (ii) the omission or alleged omission to
state therein a material fact required to be stated therein, or necessary to
make the statements therein not misleading, or (iii) any violation or alleged
violation by the Company of the Securities Act, the Exchange Act, any state
securities law or any rule or regulation promulgated under the Securities Act,
the Exchange Act or any state securities law in connection with the offering
covered by such registration statement; in each case to the extent (and only to
the extent) that such Violation occurs in reliance upon and in conformity with
written information furnished by such Investor under an instrument duly executed
by such Investor and stated to be specifically for use in connection with such
registration; and each such Investor will pay as incurred any legal or other
expenses reasonably incurred by the Company or any such director, officer,
affiliate, stockholder, controlling person, underwriter or other securityholder,
or partner, officer, director, affiliate, stockholder or controlling person of
such other securityholder in connection with investigating or defending any such
loss, claim, damage, liability or action if it is judicially determined that
there was such a Violation.

                  (b)      Promptly after receipt by an indemnified party under
Section 2.8 of notice of the commencement of any action (including any
governmental action), such indemnified party will, if a claim in respect thereof
is to be made against any indemnifying party under Section 2.8, deliver to the
indemnifying party a written notice of the commencement thereof and the
indemnifying party shall have the right to participate in, and, to the extent
the indemnifying party so desires, jointly with any other indemnifying party
similarly noticed, to assume the defense thereof with counsel mutually
satisfactory to the parties; provided, however, that an indemnified party shall
have the right to retain its own counsel, with the fees and expenses to be paid
by the indemnifying party, if representation of such indemnified party by the
counsel retained by the indemnifying party would be inappropriate due to actual
or potential differing interests between such indemnified party and any other
party represented by such counsel in such proceeding. The failure to deliver
written notice to the indemnifying party within a reasonable time of the
commencement of any such action, if materially prejudicial to its ability to
defend such action, shall relieve such indemnifying party of any liability to
the indemnified party under Section 2.8, but the omission so to deliver written
notice to the indemnifying party will not relieve it of any liability that it
may have to any indemnified party otherwise than under Section 2.8.

                                                                         PAGE 12
<PAGE>

                  (c)      If the indemnification provided for in Section 2.8 is
held by a court of competent jurisdiction to be unavailable to an indemnified
party with respect to any losses, claims, damages or liabilities referred to
herein, the indemnifying party, in lieu of indemnifying such indemnified party
thereunder, shall to the extent permitted by applicable law contribute to the
amount paid or payable by such indemnified party as a result of such loss,
claim, damage or liability in such proportion as is appropriate to reflect the
relative fault of the indemnifying party on the one hand and of the indemnified
party on the other in connection with the Violation(s) that resulted in such
loss, claim, damage or liability, as well as any other relevant equitable
considerations. The relative fault of the indemnifying party and of the
indemnified party shall be determined by a court of law by reference to, among
other things, whether the untrue or alleged untrue statement of a material fact
or the omission to state a material fact relates to information supplied by the
indemnifying party or by the indemnified party and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission.

                  (d)      The obligations of the Investors under Section 2.8
shall survive the closing of any offering of Registrable Securities in a
registration statement and the termination of this Agreement and shall not be
modified by any underwriting agreement subsequently entered into by the Company
and the Investors. The Investors, in the defense of any such claim or
litigation, shall not, except with the consent of each indemnified party,
consent to entry of any judgment or enter into any settlement which does not
include as an unconditional term thereof the giving by the claimant or plaintiff
to such indemnified party of a release from all liability in respect to such
claim or litigation.

         2.9      ASSIGNMENT OF REGISTRATION RIGHTS

         The rights to cause the Company to register Registrable Securities
pursuant to Section 2 may not be assigned by any Investor.

         2.10     AMENDMENT OF REGISTRATION RIGHTS

         Any provision of Section 2 may be amended and the observance thereof
may be waived (either generally or in a particular instance and either
retroactively or prospectively), only with the written consent of the Company
and the Investors holding at least a majority of the Registrable Securities then
outstanding. Any amendment or waiver effected in accordance with Section 2.10
shall be binding upon each Investor and the Company. By acceptance of any
benefits under Section 2, Investors hereby agree to be bound by the provisions
hereunder.

                                                                         PAGE 13
<PAGE>

         2.11     "MARKET STAND-OFF" AGREEMENT; AGREEMENT TO FURNISH
                  INFORMATION.

         Each Investor hereby agrees that such Investor shall not sell,
transfer, make any short sale of, grant any option for the purchase of, or enter
into any hedging or similar transaction with the same economic effect as a sale,
any Common Stock (or other securities) of the Company held by such Investor
(other than those included in the registration) for a period specified by the
Company (or the representative of the underwriters of Common Stock (or other
securities) upon the consent of the Company), not to exceed one hundred eighty
(180) days following the effective date of a registration statement of the
Company filed under the Securities Act. The Company may impose stop-transfer
instructions with respect to the shares of Common Stock (or other securities)
subject to the foregoing restriction until the end of said one hundred eighty
(180) day period, except that for offerings other than (x) a Qualified IPO, (y)
relating solely to an employee benefit plan (including any option plan) or (z)
relating to a transaction of the type to which Rule 145 under the Securities Act
or any successor provision is applicable, such market stand-off agreement shall
apply only to the extent requested by the lead underwriter in such offering
based on its good faith determination. Each Investor agrees to execute and
deliver such other agreements as may be requested by the Company or the
underwriter which are consistent with the foregoing or which are necessary to
give further effect thereto. In addition, if requested by the Company or the
representative of the underwriters of Common Stock (or other securities) of the
Company, each Investor shall provide, within ten (10) days of such request, such
information as may be required by the Company or such representative in
connection with the completion of any public offering of the Company's
securities pursuant to a registration statement filed under the Securities Act
and such representations, warranties, indemnifications and opinions as may be
requested by the Company in connection with such registration statement.

SECTION 3 COVENANTS OF COMPANY

         3.1      BASIC FINANCIAL INFORMATION AND REPORTING

                  (a)      The Company will maintain true books and records of
account of all its material business transactions pursuant to a system of
accounting established and administered in accordance with generally accepted
accounting principles consistently applied (or such other method approved by the
Board of Directors of the Company), and will set aside on its books all such
proper accruals and reserves as shall be required under generally accepted
accounting principles consistently applied.

                  (b)      As soon as reasonably practicable after the end of
each fiscal year of the Company, and in any event within ninety (90) days
thereafter, the Company will furnish each Major Investor a balance sheet of the
Company, as at the

                                                                         PAGE 14
<PAGE>

end of such fiscal year, and a statement of income and a statement of cash flows
of the Company, for such year, all prepared in accordance with generally
accepted accounting principles consistently applied (or such other method
approved by the Board of Directors of the Company) and setting forth in each
case in comparative form the figures for the previous fiscal year, all in
reasonable detail. Such financial statements (other than the figures for the
previous fiscal year set forth for comparative purposes) shall be accompanied by
a report and opinion thereon by independent public accountants of national
standing selected by the Company's Board of Directors.

                  (c)      The Company will furnish each Major Investor, as soon
as practicable after the end of each quarterly accounting periods in each fiscal
year of the Company, and in any event within forty-five (45) days thereafter, a
balance sheet of the Company as of the end of each such quarterly period, and a
statement of income and a statement of cash flows of the Company for such period
and for the current fiscal year to date, prepared in accordance with generally
accepted accounting principles, with the exception that no notes need be
attached to such statements and year-end audit adjustments may not have been
made, and setting forth in each case in comparative form the figures for the
period in the previous year.

         3.2      INSPECTION RIGHTS

         Upon prior written notice to the President or the Chief Financial
Officer of the Company, each Major Investor shall have the right to visit and
inspect any of the properties of the Company or any of its subsidiaries, and to
discuss the affairs, finances and accounts of the Company or any of its
subsidiaries with the President or the Chief Financial Officer, and to review
such information as is reasonably requested, all at reasonable times during
normal business hours; provided, however, that the Company shall not be
obligated under Section 3.2 with respect to a competitor of the Company or with
respect to information which the Board of Directors of the Company determines in
good faith is confidential and should not, therefore, be disclosed.

         3.3      TERMINATION OF INFORMATION AND INSPECTION RIGHTS

         All information and inspection rights granted under Section 3 shall
terminate and be of no further force and effect upon a Qualified IPO.

SECTION 4 MISCELLANEOUS

         4.1      GOVERNING LAW

         This Agreement shall be governed by and construed under the laws of the
State of California as applied to agreements among California residents entered
into and to be performed entirely within California.

                                                                         PAGE 15
<PAGE>

         4.2      SUCCESSORS AND ASSIGNS

         Except as otherwise expressly provided herein, the provisions hereof
shall inure to the benefit of, and be binding upon, the successors, assigns,
heirs, executors, and administrators of the parties hereto and shall inure to
the benefit of and be enforceable by each person who shall be a holder of
Registrable Securities from time to time; provided, however, that prior to the
receipt by the Company of adequate written notice of the transfer of any
Registrable Securities specifying the full name and address of the transferee,
the Company may deem and treat the person listed as the holder of such shares in
its records as the absolute owner and holder of such shares for all purposes,
including the payment of dividends or any redemption price.

         4.3      ENTIRE AGREEMENT

         This Agreement and the Exhibit hereto, the Purchase Agreement, the
Exhibits and the documents delivered pursuant thereto constitute the full and
entire understanding and agreement between the parties with regard to the
subjects hereof and no party shall be liable or bound to any other in any manner
by any covenants and agreements except as specifically set forth herein and
therein.

         4.4      SEVERABILITY

         In the event one or more of the provisions of this Agreement should,
for any reason, be held to be invalid, illegal or unenforceable in any respect,
such invalidity, illegality, or unenforceability shall not affect any other
provisions of this Agreement, and this Agreement shall be construed as if such
invalid, illegal or unenforceable provision had never been contained herein.

         4.5      AMENDMENT AND WAIVER.

                  (a)      Except as otherwise expressly provided, this
Agreement may be amended or modified only upon the written consent of the
Company and the holders of at least a majority of the Registrable Securities.

                  (b)      Except as otherwise expressly provided, the
obligations of the Company and the rights of the Holders under this Agreement
may be waived only with the written consent of the holders of at least a
majority of the Registrable Securities.

         4.6      NOTICES

         All notices required or permitted hereunder shall be in writing and
shall be deemed effectively given: (a) upon personal delivery to the party to be
notified, (b) when sent by confirmed telex or facsimile if sent during normal
business hours of the

                                                                         PAGE 16
<PAGE>

recipient; if not, then on the next business day, (c) five (5) days after having
been sent by registered or certified mail, return receipt requested, postage
prepaid, or (d) one (1) day after deposit with a nationally recognized overnight
courier, specifying next day delivery, with written verification of receipt.

         All communications shall be sent to the party to be notified at the
address appearing on the books of the Company or at such other address as such
party may designate by ten (10) days advance written notice to the other parties
hereto. Notices to the Company shall be sent to 520 Clyde Avenue, Mountain View,
CA 94043, attention: President, with copy to O'Melveny & Myers LLP, 275 Battery
Street, Embarcadero Center West, 26th Floor, San Francisco, CA 94111-3305,
attention: Peter T. Healy, Esq. and 153 East 53rd Street, New York, NY 10022,
attention: Mark E. Thierfelder, Esq.

         4.7      ATTORNEYS' FEES

         In the event that any suit or action is instituted to enforce any
provision in this Agreement, the prevailing party in such dispute shall be
entitled to recover from the losing party all fees, costs and expenses of
enforcing any right of such prevailing party under or with respect to this
Agreement, including without limitation, such reasonable fees and expenses of
attorneys and accountants, which shall include, without limitation, all fees,
costs and expenses of appeals.

         4.8      TITLES AND SUBTITLES

         The titles of the sections and subsections of this Agreement are for
convenience of reference only and are not to be considered in construing this
Agreement.

         4.9      COUNTERPARTS

         This Agreement may be executed in any number of counterparts, each of
which shall be an original, but all of which together shall constitute one
instrument.

                      [THIS SPACE INTENTIONALLY LEFT BLANK]

                                                                         PAGE 17
<PAGE>

         In Witness Whereof, the parties hereto have executed this Investor
Rights Agreement as of the date set forth in the first paragraph hereof.

                                  "INVESTOR"

                                  RS COINVESTMENT FUND, L.L.C.

                                  By:     /s/
                                      ------------------------------------------
                                  Name: Dana Welch
                                  Title: CAO/General Counsel

                                                                         PAGE 18
<PAGE>

                                  "INVESTOR"

                                  MCP GLOBAL CORPORATION LTD.

                                  By:     /s/
                                      ------------------------------------------
                                  Name: Mai N. Pogue
                                  Title: Director

                                                                         PAGE 19
<PAGE>

                                  "INVESTOR"

                                  IVISIONARY FUND I, L.P.

                                  By:     /s/
                                      ------------------------------------------
                                  Name: Craig Greenberg
                                  Title: Chief Operating Officer

                                                                         PAGE 20
<PAGE>

                                  "INVESTOR"

                                  CLOVER HILL L.L.C

                                  By:     /S/
                                      __________________________________________
                                  Name:_________________________________________
                                  Title:________________________________________

                                                                         PAGE 21
<PAGE>

                                  "INVESTOR"

                                  NETNET VENTURES FUND I, L.P.

                                  By:     /s/
                                      ------------------------------------------
                                  Name: Praveen Gottipalli
                                  Title: Portfolio Manager

                                                                         PAGE 22
<PAGE>

                                  "INVESTOR"

                                  WINFIELD CAPITAL CORP.

                                  By:     /s/
                                      ------------------------------------------
                                  Name: Paul A. Perlin
                                  Title: Chief Executive Officer

                                                                         PAGE 23
<PAGE>

                                  "INVESTOR"

                                  TENNYSON FUND II, L.L.L.P.

                                  By:     /s/
                                      ------------------------------------------
                                  Name: Alfred Whitena
                                  Title: Member

                                                                         PAGE 24
<PAGE>

                                  "COMPANY"

                                  ACCENT OPTICAL TECHNOLOGIES, INC.

                                  By:     /s/
                                      __________________________________________
                                  Name:_________________________________________
                                  Title:________________________________________

                                                                         PAGE 25
<PAGE>

                                    EXHIBIT A

                              SCHEDULE OF INVESTORS

<TABLE>
<CAPTION>
        NAME AND ADDRESS                              NUMBER OF SHARES
<S>                                                   <C>
RS Coinvestment Fund, L.L.C.                             3,573,170
555 California Street
San Francisco, CA  94104
Attention: Michael Olson

MCP Global Corporation Ltd.                              1,463,414
c/o Pogue Capital Management, Inc.
60 Patterson Avenue
Greenwich, CT  06830
Attention: Mai Pogue

iVisionary Fund I, L.P.                                    731,708
250 West Main Street, Suite 1810
Lexington, KY  40507
Attention: Stephen D. Dawahare

Winfield Capital Corp.                                     585,366
237 Mamaroneck Avenue
White Plains, NY  10605
Attention: Paul A. Perlin

NetNet Ventures Fund I, L.P.                               365,853
555 California Street, Suite 2975
San Francisco, CA  94104
Attention: Michael Henman

Clover Hill, L.L.C.                                        336,585
680 Fifth Avenue, 8th Floor
New York, NY  10019-5429
Attention: Kammy M. Maolemzadeh

Tennyson Fund II, L.L.L.P.                                 731,708
Timonium Two
1954 Greenspring Drive, 4th Floor
Timonium, MD 21093
Attention: Alfred L. Whitena
</TABLE>

                                                                         PAGE 26<PAGE>
                                                                    Exhibit 10.1

                                 ACCENT OPTICAL
                               TECHNOLOGIES, INC.
                              STOCK INCENTIVE PLAN

<PAGE>
                                                                               .
                                                                               .
                                                                               .

<TABLE>
<S>      <C>      <C>                                                                                          <C>
1.       The Plan................................................................................................1

         1.1      Purpose........................................................................................1

         1.2      Administration and Authorization; Power and Procedure..........................................1

         1.3      Participation..................................................................................2

         1.4      Shares Available for Awards; Share Limits......................................................2

         1.5      No Transferability; Limited Exception to Transfer Restrictions.................................3

         1.6      Acceptance of Notes to Finance Exercise/Purchase...............................................4

2.       Options.................................................................................................5

         2.1      Option Grants..................................................................................5

         2.2      Vesting; Term; Exercise Procedure..............................................................5

         2.3      Option Price...................................................................................6

         2.4      Limitations on Grant and Terms of Incentive Stock Options......................................7

         2.5      Limits on 10% Holders..........................................................................8

         2.6      Effects of Termination of Employment; Termination of Subsidiary Status;
                  Discretionary Provisions...................................................................... 8

         2.7      Option Repricing/Cancellation and Regrant/Waiver of Restrictions..............................10

         2.8      Options in Substitution for Stock Options Granted by Other Corporations.......................11

3.       Restricted Stock Awards................................................................................11

         3.1      Grants........................................................................................11

         3.2      Award Agreement...............................................................................11

         3.3      Vesting.......................................................................................11

         3.4      Term..........................................................................................11

         3.5      Purchase Price................................................................................12

         3.6      Stock Certificates; Fractional Shares.........................................................12

         3.7      Restrictions..................................................................................12

         3.8      Return to the Corporation.....................................................................13

         3.9      Other Sections Applicable to Restricted Stock Awards..........................................13

         3.10     Waiver of Restrictions........................................................................13

4.       Other Provisions.......................................................................................13

         4.1      Rights of Eligible Persons, Participants and Beneficiaries....................................13

         4.2      Adjustments; Acceleration.....................................................................14

         4.3      Compliance with Laws..........................................................................16

         4.4      Tax Withholding...............................................................................18

         4.5      Plan and Award Amendments, Termination and Suspension.........................................19

</TABLE>

<PAGE>

<TABLE>
<S>      <C>      <C>                                                                                          <C>
         4.6      Privileges of Stock Ownership.................................................................20

         4.7      Effective Date of the Plan....................................................................20

         4.8      Term of the Plan..............................................................................20

         4.9      Governing Law/Severability....................................................................20

         4.10     Captions......................................................................................20

         4.11     Non-Exclusivity of Plan.......................................................................20

         4.12     No Restriction on Corporate Powers............................................................20

         4.13     Other Company Compensation or Benefit Programs................................................21

5.       Definitions............................................................................................21

</TABLE>

<PAGE>

                        ACCENT OPTICAL TECHNOLOGIES, INC.
                              STOCK INCENTIVE PLAN

1.       THE PLAN.

1.1      PURPOSE. The purpose of this Plan is to promote the success of the
         Company and the interests of its stockholders by attracting,
         motivating, retaining and rewarding certain officers, employees,
         directors and other eligible persons with awards and incentives for
         high levels of individual performance and improved financial
         performance of the Company. Capitalized terms used herein are defined
         in Section 5.

1.2      ADMINISTRATION AND AUTHORIZATION; POWER AND PROCEDURE.

         1.2.1    COMMITTEE. This Plan will be administered by and all Awards
                  will be authorized by the Committee. Action of the Committee
                  with respect to its authority under this Plan shall be taken
                  pursuant to a majority vote or by unanimous written consent of
                  its members.

         1.2.2    PLAN AWARDS; INTERPRETATION; POWERS OF COMMITTEE. Subject to
                  the express provisions of this Plan and any express
                  limitations on the delegated authority of a Committee, the
                  Committee will have the authority to:

                  (a)      determine eligibility and the particular Eligible
                           Persons who will receive Awards;

                  (b)      grant Awards to Eligible Persons, determine the price
                           at which securities will be offered or awarded and
                           the amount of securities to be offered or awarded to
                           any of such persons, and determine the other specific
                           terms and conditions of Awards consistent with the
                           express limits of this Plan, establish the
                           installments (if any) in which such Awards will
                           become exercisable or will vest, and the respective
                           consequences thereof, or determine that no delayed
                           exercisability or vesting is required, and establish
                           the events of termination or reversion of such
                           Awards;

                  (c)      approve the forms of Award Agreements, which need not
                           be identical either as to type of Award or among
                           Participants;

                  (d)      construe and interpret this Plan and any Award or
                           other agreements defining the rights and obligations
                           of the Company and Participants under this Plan,
                           further define the terms used in this Plan, and
                           prescribe, amend and rescind rules and regulations
                           relating to the administration of this Plan;

                  (e)      cancel, modify, or waive the Corporation's rights
                           with respect to, or modify, discontinue, suspend, or
                           terminate any or all outstanding Awards held by
                           Eligible Persons, subject to any required consent
                           under Section 4.5;

                                       1
<PAGE>

                  (f)      accelerate or extend the exercisability or extend the
                           term of any or all outstanding Awards within the
                           maximum ten-year term of Awards under Sections 2.2.2
                           and 3.4;

                  (g)      determine the duration and purposes of leaves of
                           absence that may be granted to Participants without
                           constituting a termination of their employment for
                           purposes of this Plan; and

                  (h)      make all other determinations and take such other
                           action as contemplated by this Plan or as may be
                           necessary or advisable for the administration of this
                           Plan and the effectuation of its purposes.

         1.2.3    BINDING DETERMINATIONS. Any action taken by, or inaction of,
                  the Corporation, any Subsidiary, the Board or the Committee
                  relating or pursuant to this Plan will be within the absolute
                  discretion of that entity or body and will be conclusive and
                  binding upon all persons. Subject only to compliance with the
                  express provisions hereof, the Board and Committee may act in
                  their absolute discretion in matters within their authority
                  related to this Plan.

         1.2.4    RELIANCE ON EXPERTS. In making any determination or in taking
                  or not taking any action under this Plan, the Committee or the
                  Board, as the case may be, may obtain and may rely upon the
                  advice of experts, including employees of and professional
                  advisors to the Corporation.

         1.2.5    DELEGATION. The Committee may delegate ministerial,
                  non-discretionary functions to individuals who are officers or
                  employees of the Company.

         1.2.6    NO LIABILITY. No director, officer or agent of the Company
                  will be liable for any action, omission or decision under this
                  Plan taken, made or omitted in good faith.

1.3      PARTICIPATION. Awards may be granted by the Committee only to those
         persons that the Committee determines to be Eligible Persons. An
         Eligible Person who has been granted an Award may, if otherwise
         eligible, be granted additional Awards if the Committee so determines.

1.4      SHARES AVAILABLE FOR AWARDS; SHARE LIMITS.

         1.4.1    SHARES AVAILABLE. Subject to the provisions of Section 4.2,
                  the capital stock that may be delivered under this Plan will
                  be shares of the Corporation's authorized but unissued Common
                  Stock and any of its shares of Common Stock held as treasury
                  shares. The shares may be delivered for any lawful
                  consideration.

         1.4.2    SHARE LIMITS. The maximum number of shares of Common Stock
                  that may be delivered pursuant to Awards granted under this
                  Plan will not exceed 27,500,000 shares (the "SHARE LIMIT").
                  The maximum number of shares subject to Options that are
                  granted during any calendar year to any one individual will be
                  limited to 3,000,000 shares and the maximum individual limit
                  on the number of shares in the aggregate subject to all Awards
                  that during any calendar year are granted

                                       2
<PAGE>
                  under this Plan to any one individual will be 3,000,000
                  shares. Each of the foregoing numerical limits will be subject
                  to adjustment as contemplated by this Section 1.4 and Section
                  4.2.

         1.4.3    SHARE RESERVATION; REPLENISHMENT AND REISSUE OF UNVESTED
                  AWARDS. Shares subject to outstanding Awards shall be reserved
                  for issuance. No Award may be granted under this Plan unless,
                  on the date of grant, the sum of (a) the maximum number of
                  shares of Common Stock issuable at any time pursuant to such
                  Award, plus (b) the number of shares of Common Stock that have
                  previously been issued pursuant to Awards granted under this
                  Plan, plus (c) the maximum number of shares of Common Stock
                  that may be issued at any time after such date of grant
                  pursuant to Awards that are outstanding on such date, does not
                  exceed the Share Limit. Shares of Common Stock that are
                  subject to or underlie Awards that expire or for any reason
                  are canceled or terminated, are forfeited, fail to vest, or
                  for any other reason are not paid or delivered under this
                  Plan, will again, except to the extent prohibited by law (or
                  the provisions of the Code, in the case of Incentive Stock
                  Options) or the terms of this Plan, be available for
                  subsequent Awards under this Plan. Accordingly, shares of
                  Common Stock issued pursuant to the terms hereof (including
                  shares of Common Stock offset in satisfaction of applicable
                  withholding taxes or the exercise price of an Award) in
                  respect of an Award shall reduce on a share-for-share basis
                  the number of shares of Common Stock remaining available under
                  this Plan and the number of shares remaining subject to the
                  Award.

1.5      NO TRANSFERABILITY; LIMITED EXCEPTION TO TRANSFER RESTRICTIONS.

         1.5.1    LIMIT ON EXERCISE AND TRANSFER. Unless otherwise expressly
                  provided in (or pursuant to) this Section 1.5, by applicable
                  law and by the Award Agreement, as the same may be amended:

                  (a)      all Awards are non-transferable and will not be
                           subject in any manner to sale, transfer,
                           anticipation, alienation, assignment, pledge,
                           encumbrance or charge;

                  (b)      Awards will be exercised only by the Participant; and

                  (c)      amounts payable or shares issuable pursuant to an
                           Award will be delivered only to (or for the account
                           of) the Participant.

                  In addition, the shares shall be subject to the restrictions
                  set forth in the applicable Award Agreement.

         1.5.2    FURTHER EXCEPTIONS TO LIMITS ON TRANSFER. The exercise and
                  transfer restrictions in Section 1.5.1 will not apply to:

                  (a)      transfers to the Corporation or, with the express
                           written approval of the Committee, transfers by gift
                           to "immediate family" as that term is defined in SEC
                           Rule 16a-1(e) promulgated under the Exchange Act;

                                       3

<PAGE>

                  (b)      the designation of a beneficiary to receive benefits
                           if the Participant dies or, if the Participant has
                           died, transfers to or exercises by the Participant's
                           beneficiary, or, in the absence of a validly
                           designated beneficiary, transfers by will or the laws
                           of descent and distribution; or

                  (c)      if the Participant has suffered a disability,
                           permitted transfers or exercises on behalf of the
                           Participant by the Participant's duly authorized
                           legal representative.

                  Notwithstanding anything else in this Section 1.5.2 to the
                  contrary, Incentive Stock Options and Restricted Stock Awards
                  will be subject to any and all transfer restrictions under the
                  Code applicable to such awards or necessary to maintain the
                  intended tax consequences of such Awards.

1.6      ACCEPTANCE OF NOTES TO FINANCE EXERCISE/PURCHASE. The Corporation may,
         with the Committee's approval in each specific case, accept one or more
         notes from any Eligible Person in connection with the exercise,
         purchase or acquisition of any Award; provided that any such note shall
         be subject to the following terms and conditions:

                  (a)      The principal of the note shall not exceed the amount
                           required to be paid to the Corporation upon the
                           exercise, purchase or acquisition of one or more
                           Awards under this Plan and the note shall be
                           delivered directly to the Corporation in
                           consideration of such exercise, purchase or
                           acquisition.

                  (b)      The initial term of the note shall be determined by
                           the Committee; provided that the term of the note,
                           including extensions, shall not exceed a period of
                           five years.

                  (c)      The note shall provide for full recourse to the
                           Participant and shall bear interest at a rate
                           determined by the Committee, but not less than the
                           interest rate necessary to avoid the imputation of
                           interest under the Code and to avoid any adverse
                           accounting consequences in connection with the
                           exercise, purchase or acquisition.

                  (d)      If the employment or services of the Participant by
                           or to the Company terminates, the unpaid principal
                           balance of the note shall become due and payable on
                           the 30th business day after such termination;
                           provided, however, that if a sale of such shares
                           would cause such Participant to incur liability under
                           Section 16(b) of the Exchange Act, the unpaid balance
                           shall become due and payable on the 10th business day
                           after the first day on which a sale of such shares
                           could have been made without incurring such liability
                           assuming for these purposes that there are no other
                           transactions (or deemed transactions) in securities
                           of the Corporation by the Participant subsequent to
                           such termination.

                  (e)      If required by the Committee or by applicable law,
                           the note shall be secured by a pledge of any shares
                           or rights financed thereby or other collateral, in
                           compliance with applicable law.

                                       4
<PAGE>

                  (f)      The terms, repayment provisions, and collateral
                           release provisions of the note and the pledge
                           securing the note shall conform with all applicable
                           rules and regulations, including those of the Federal
                           Reserve Board and under the California Corporations
                           Code, as then in effect.

2.       OPTIONS.

2.1      OPTION GRANTS.

         2.1.1    APPROVAL; NUMBER OF SHARES. The Committee may grant one or
                  more Options under this Plan to any Eligible Person. Subject
                  to the express provisions of this Plan, the Committee will
                  determine the number of shares of Common Stock subject to each
                  Option.

         2.1.2    AWARD AGREEMENT. Each Option will be evidenced by an Award
                  Agreement signed by the Corporation and, to the extent
                  required by the Committee, by the Participant and the
                  Participant's spouse. The Award Agreement evidencing an Option
                  shall contain the terms established by the Committee for that
                  Option, as well as any other terms, provisions, or
                  restrictions that the Committee may impose on the Option or
                  any shares of Common Stock subject to the Option.

         2.1.3    TYPE OF OPTIONS. The Committee will designate each Option
                  granted under this Plan as either an Incentive Stock Option or
                  a Nonqualified Stock Option and such designation shall be set
                  forth in the applicable Award Agreement. Any Option granted
                  hereunder that is not designated as an Incentive Stock Option
                  will be deemed to be designated a Nonqualified Stock Option
                  under this Plan and not an incentive stock option under the
                  Code. Incentive Stock Options shall be subject to the
                  provisions of Section 2.4 in addition to the provisions hereof
                  applicable to Options generally.

2.2      VESTING; TERM; EXERCISE PROCEDURE.

         2.2.1    VESTING. The Committee will determine the vesting and/or
                  exercisability provisions of each Option, which provisions
                  will be set forth in the applicable Award Agreement. Unless
                  the Committee otherwise expressly provides, no Option will be
                  exercisable or will vest until at least six months after the
                  initial Award Date, and once exercisable an Option will remain
                  exercisable until the expiration or earlier termination of the
                  Option. To the extent required to satisfy applicable
                  securities laws and subject to Section 2.6, no Option (except
                  an Option granted to an officer, director, or consultant of
                  the Company) shall vest and become exercisable at a rate of
                  less than 20% per year over five years after the date the
                  Option is granted.

         2.2.2    TERM. Each Option shall expire not more than 10 years after
                  its date of grant. Each Option will be subject to earlier
                  termination as provided in or pursuant to Sections 2.6 or 4.2.
                  Any payment of cash or delivery of stock in payment of or

                                     5
<PAGE>

                  pursuant to an Option may be delayed until a future date if
                  specifically authorized by the Committee in writing and by the
                  Participant.

         2.2.3    EXERCISE PROCEDURE. Any exercisable Option will be deemed to
                  be exercised when the Corporation receives written notice of
                  such exercise from the Participant (on a form and in such
                  manner as may be required by the Committee), together with any
                  required payment made in accordance with Section 2.3.2 and
                  Section 4.4 and any written statement required pursuant to
                  Section 4.3.

         2.2.4    FRACTIONAL SHARES/MINIMUM ISSUE. Fractional share interests
                  will be disregarded, but may be accumulated. The Committee,
                  however, may determine that cash, other securities, or other
                  property will be paid or transferred in lieu of any fractional
                  share interests. No fewer than 100 shares may be purchased on
                  exercise of any Option at one time unless the number purchased
                  is the total number at the time available for purchase under
                  the Option.

2.3      OPTION PRICE.

         2.3.1    PRICING LIMITS. Subject to the following provisions of this
                  Section 2.3.1, the Committee will determine the purchase price
                  per share of the Common Stock covered by each Option (the
                  "exercise price" of the Option) at the time of the grant of
                  the Option, which purchase price will be set forth in the
                  applicable Award Agreement. In no case will the exercise price
                  of an Option be less than the greater of:

                  (a)      the par value of the Common Stock;

                  (b)      in the case of a Nonqualified Stock Option and
                           subject to clause (d) below, 85% of Fair Market Value
                           of the Common Stock on the date of grant;

                  (c)      in the case of an Incentive Stock Option and subject
                           to clause (e) below, 100% of the Fair Market Value of
                           the Common Stock on the date of grant;

                  (d)      in the case of a Nonqualified Stock Option granted to
                           a Participant described in Section 2.5, 110% of the
                           Fair Market Value of the Common Stock on the date of
                           grant; or

                  (e)      in the case of an Incentive Stock Option granted to a
                           Participant described in Section 2.5, 110% of the
                           Fair Market Value of the Common Stock on the date of
                           grant;

                  provided, however, that the limits set forth in (b) and (d)
                  above shall apply only to the extent required by applicable
                  securities laws.

         2.3.2    PAYMENT PROVISIONS. The Corporation will not be obligated to
                  deliver certificates for the shares of Common Stock to be
                  purchased on exercise of an Option unless and until it
                  receives full payment of the exercise price therefor, all
                  related withholding obligations under Section 4.4 have been
                  satisfied, and all

                                       6
<PAGE>

                  other conditions to the exercise of the Option set forth
                  herein or in the Award Agreement have been satisfied. The
                  purchase price of any shares of Common Stock purchased on
                  exercise of an Option must be paid in full at the time of each
                  purchase in one or a combination of the following methods:

                  (a)      in cash or by electronic funds transfer;

                  (b)      by certified or cashier's check payable to the order
                           of the Corporation;

                  (c)      by notice and third party payment in such manner as
                           may be authorized by the Committee;

                  (d)      by the delivery of shares of Common Stock already
                           owned by the Participant; provided that the Committee
                           may, in its absolute discretion, limit the
                           Participant's ability to exercise an Option by
                           delivering previously owned shares, and any shares of
                           Common Stock delivered that were initially acquired
                           from the Corporation upon exercise of a stock option
                           or otherwise must have been owned by the Participant
                           at least 6 months as of the date of delivery; or

                  (e)      if authorized by the Committee or specified in the
                           applicable Award Agreement, by a promissory note of
                           the Participant consistent with the requirements of
                           Section 1.6.

                  Shares of Common Stock used to satisfy the exercise price of
                  an Option will be valued at their Fair Market Value on the
                  date of exercise.

2.4      LIMITATIONS ON GRANT AND TERMS OF INCENTIVE STOCK OPTIONS.

         2.4.1    $100,000 LIMIT. To the extent that the aggregate "Fair Market
                  Value" of stock with respect to which incentive stock options
                  first become exercisable by a Participant in any calendar year
                  exceeds $100,000, taking into account both Common Stock
                  subject to Incentive Stock Options under this Plan and stock
                  subject to incentive stock options under all other plans of
                  the Company or any parent corporation, such options will be
                  treated as Nonqualified Stock Options. For this purpose, the
                  "Fair Market Value" of the stock subject to options will be
                  determined as of the date the options were awarded. In
                  reducing the number of options treated as incentive stock
                  options to meet the $100,000 limit, the most recently granted
                  options will be reduced (recharacterized as Nonqualified Stock
                  Options) first. To the extent a reduction of simultaneously
                  granted options is necessary to meet the $100,000 limit, the
                  Committee may, in the manner and to the extent permitted by
                  law, designate which shares of Common Stock are to be treated
                  as shares acquired pursuant to the exercise of an Incentive
                  Stock Option.

         2.4.2    OTHER CODE LIMITS. Incentive Stock Options may only be granted
                  to employees of the Corporation or a Subsidiary that satisfy
                  the other eligibility requirements of the Code. Any Award
                  Agreement relating to Incentive Stock Options will contain or
                  shall be deemed to contain such other terms and conditions as
                  from time to

                                       7
<PAGE>

                  time are required in order that the Option be an "incentive
                  stock option" as that term is defined in Section 422 of the
                  Code.

         2.4.3    ISO NOTICE OF SALE REQUIREMENT. Any Participant who exercises
                  an Incentive Stock Option shall give prompt written notice to
                  the Corporation of any sale or other transfer of the shares of
                  Common Stock acquired on such exercise if the sale or other
                  transfer occurs (a) within one year after the exercise date of
                  the Option, or (b) two years after the grant date of the
                  Option.

         2.5      LIMITS ON 10% HOLDERS. No Incentive Stock Option (or, to the
                  extent required by applicable securities laws, Nonqualified
                  Stock Option) may be granted to any person who, at the time
                  the Option is granted, owns (or is deemed to own under Section
                  424(d) of the Code) shares of outstanding stock of the
                  Corporation (or a parent or subsidiary of the Corporation)
                  possessing more than 10% of the total combined voting power of
                  all classes of stock of the Corporation (or a parent or
                  subsidiary of the Corporation), unless the exercise price of
                  such Option is at least 110% of the Fair Market Value of the
                  stock subject to the Option and (only in the case of an
                  Incentive Stock Option granted to such a person) such Option
                  by its terms is not exercisable after the expiration of five
                  years from the date such Option is granted.

2.6      EFFECTS OF TERMINATION OF EMPLOYMENT; TERMINATION OF SUBSIDIARY STATUS;
         DISCRETIONARY PROVISIONS.

         2.6.1    DISMISSAL FOR CAUSE. Unless otherwise provided in the Award
                  Agreement and subject to earlier termination pursuant to or as
                  contemplated by Section 2.2.2 or 4.2, if a Participant's
                  employment by or service to the Company is terminated by the
                  Company for Cause, the Participant's Option will terminate on
                  the Participant's Severance Date, whether or not the Option is
                  then vested and/or exercisable.

         2.6.2    RESIGNATION. Unless otherwise provided in the Award Agreement
                  (consistent with applicable securities laws) and subject to
                  earlier termination pursuant to or as contemplated by Section
                  2.2.2 or 4.2, if a Participant voluntarily terminates his or
                  her employment by or service to the Company (other than
                  because of his or her death, Total Disability or Retirement):

                  (a)      the Participant will have until the date that is 30
                           days after the Participant's Severance Date to
                           exercise his or her Option (or portion thereof) to
                           the extent that it was vested and exercisable on the
                           Severance Date;

                  (b)      the Option, to the extent not vested and exercisable
                           on the Participant's Severance Date, shall terminate
                           on the Severance Date; and

                  (c)      the Option, to the extent exercisable for the 30-day
                           period following the Participant's Severance Date and
                           not exercised during such period, shall terminate at
                           the close of business on the last day of the 30-day
                           period.

                                       8
<PAGE>

         2.6.3    LAYOFF OR OTHER INVOLUNTARY TERMINATION. Unless otherwise
                  provided in the Award Agreement (consistent with applicable
                  securities laws) and subject to earlier termination pursuant
                  to or as contemplated by Section 2.2.2 or 4.2, if a
                  Participant is laid off or the Participant's employment by or
                  service to the Company is otherwise terminated at the will of
                  the Company (other than in circumstances constituting a
                  termination because of death, Total Disability, Retirement, or
                  a termination by the Company for Cause):

                  (a)      the Participant will have until the date that is
                           three (3) months after the Participant's Severance
                           Date to exercise his or her Option (or portion
                           thereof) to the extent that it was vested and
                           exercisable on the Severance Date;

                  (b)      the Option, to the extent not vested and exercisable
                           on the Participant's Severance Date, shall terminate
                           on the Severance Date; and

                  (c)      the Option, to the extent exercisable for the 3-month
                           period following the Participant's Severance Date and
                           not exercised during such period, shall terminate at
                           the close of business on the last day of the 3-month
                           period.

         2.6.4    DEATH, DISABILITY, OR RETIREMENT. Unless otherwise provided in
                  the Award Agreement (consistent with applicable securities
                  laws) and subject to earlier termination pursuant to or as
                  contemplated by Section 2.2.2 or 4.2, if a Participant's
                  employment by or service to the Company terminates as a result
                  of the Participant's Total Disability, death, or Retirement:

                  (a)      the Participant (or his or her Personal
                           Representative or Beneficiary, in the case of the
                           Participant's Total Disability or death,
                           respectively), will have until the date that is 12
                           months after the Participant's Severance Date to
                           exercise the Participant's Option (or portion
                           thereof) to the extent that it was vested and
                           exercisable on the Severance Date;

                  (b)      the Option, to the extent not vested and exercisable
                           on the Participant's Severance Date, shall terminate
                           on the Severance Date; and

                  (c)      the Option, to the extent exercisable for the
                           12-month period following the Participant's Severance
                           Date and not exercised during such period, shall
                           terminate at the close of business on the last day of
                           the 12-month period.

         2.6.5    EVENTS NOT DEEMED A TERMINATION OF EMPLOYMENT. Unless Company
                  policy or the Committee otherwise provides, a Participant's
                  employment or service relationship with the Company shall not
                  be considered terminated solely due to any sick leave,
                  military leave, or any other leave of absence authorized by
                  the Company or the Committee; provided that, unless
                  reemployment upon the expiration of such leave is guaranteed
                  by contract or law, such leave is for a period of not more
                  than 90 days. In the case of any Eligible Person on an
                  approved leave of absence, continued vesting of the Award
                  while on leave from the employ of or service with the Company
                  will be suspended until the employees

                                       9
<PAGE>

                  returns to service, unless the Committee otherwise provides or
                  applicable law otherwise requires. In no event shall an Award
                  be exercised after the expiration of the term of the Award set
                  forth in the Award Agreement.

         2.6.6    EFFECT OF CHANGE OF SUBSIDIARY STATUS. For purposes of this
                  Plan and any Award, if an entity ceases to be a Subsidiary, a
                  termination of employment or service will be deemed to have
                  occurred with respect to each Eligible Person in respect of
                  such Subsidiary who does not continue as an Eligible Person in
                  respect of another entity within the Company.

         2.6.7    COMMITTEE DISCRETION. Notwithstanding the foregoing provisions
                  of this Section 2.6, in the event of, or in anticipation of, a
                  termination of employment or service with the Company for any
                  reason, other than a discharge for Cause, the Committee may
                  accelerate the vesting and exercisability of all or a portion
                  of the Participant's Award, and/or, subject to the provisions
                  of Sections 2.2.2 and 4.2, extend the exercisability period of
                  the Participant's Option upon such terms as the Committee
                  determines and as expressly set forth in or by amendment to
                  the Award Agreement.

         2.6.8    DETERMINATION OF SEVERANCE DATE. Notwithstanding the
                  definition of "Severance Date," the Committee may authorize by
                  express provision in or pursuant to an Award an extension of
                  the date of termination of the Participant's employment by or
                  services to the Company if the Participant's status after
                  grant of the Award changes from one category of Eligible
                  Person to another (for example, employee to consultant or visa
                  versa), or in other circumstances that the Committee deems
                  appropriate.

         2.6.9    TERMINATION OF CONSULTING OR AFFILIATE SERVICES. If the
                  Participant is not an Eligible Employee or a director of the
                  Corporation, and provides services as an Other Eligible
                  Person, the Committee shall be the sole judge of whether the
                  Participant continues to render services to the Company,
                  unless a written contract or the Award Agreement otherwise
                  provides. If, in these circumstances, the Company notifies the
                  Participant in writing that a termination of the Participant's
                  services to the Company has occurred for purposes of this
                  Plan, then (unless the contract or the Award Agreement
                  otherwise expressly provides), the Participant's termination
                  of services with the Company for purposes of this Plan shall
                  be the date which is 10 days after the Company's mailing of
                  the notice or, in the case of a termination for Cause, the
                  date of the mailing of the notice.

2.7      OPTION REPRICING/CANCELLATION AND REGRANT/WAIVER OF RESTRICTIONS.
         Subject to Section 1.4 and Section 4.5 and the specific limitations on
         Options contained in this Plan, the Committee from time to time may
         authorize, generally or in specific cases only, for the benefit of any
         Eligible Person, any adjustment in the exercise price, the vesting
         schedule, the number of shares subject to, or the term of, an Option
         granted under this Plan by cancellation of an outstanding Option and a
         subsequent regranting of the Option, by amendment, by substitution of
         an outstanding Option, by waiver or by other legally valid means. Such
         amendment or other action may result in, among other changes, an

                                       10
<PAGE>

         exercise price that is higher or lower than the exercise price of the
         original or prior Option, provide for a greater or lesser number of
         shares of Common Stock subject to the Option, or provide for a longer
         or shorter vesting or exercise period.

2.8      OPTIONS IN SUBSTITUTION FOR STOCK OPTIONS GRANTED BY OTHER
         CORPORATIONS. Options may be granted to Eligible Persons under this
         Plan in substitution for employee stock options granted by other
         entities, in connection with a distribution, merger or reorganization
         by or with the granting entity or an affiliated entity, or the
         acquisition by the Company, directly or indirectly, of all or a
         substantial part of the stock or assets of the employing entity.

3.       RESTRICTED STOCK AWARDS.

3.1      GRANTS. The Committee may grant one or more Restricted Stock Awards to
         any Eligible Person. Subject to the provisions of this Plan, the
         Committee will determine the number of shares of Common Stock subject
         to each Restricted Stock Award. Each Restricted Stock Award will be
         evidenced by an Award Agreement signed by the Corporation and, to the
         extent required by the Committee, by the Participant and the
         Participant's spouse. Upon issuance of the Restricted Stock Award, the
         Participant may be required to provide such further assurances and
         documents as the Committee may require to enforce the restrictions
         thereon.

3.2      AWARD AGREEMENT. Each Restricted Stock Award Agreement will specify the
         number of shares of Common Stock to be issued to the Participant, the
         date of such issuance, the consideration for such shares (but not less
         than the minimum lawful consideration under applicable state law) to be
         paid by the Participant for the shares, the extent (if any) to which
         and the time (if ever) at which the Participant will be entitled to
         dividends, voting and other rights in respect of the shares prior to
         vesting, and the restrictions (which may be based on performance
         criteria, passage of time or other factors or any combination thereof)
         imposed on such shares and the conditions of release or lapse of such
         restrictions.

3.3      VESTING. The restrictions imposed on the shares of Common Stock subject
         to a Restricted Stock Award will not lapse earlier than six months
         after the Award Date, except to the extent the Committee may otherwise
         provide. To the extent required to satisfy applicable securities laws,
         the restrictions imposed on the shares of Common Stock subject to a
         Restricted Stock Award (other than an Award granted to an officer,
         director, or consultant of the Company, which may include more
         restrictive provisions) shall lapse as to such shares, subject to
         Section 3.8, at a rate of at least 20% of the shares subject to the
         Award per year over the five years after the date the Award is granted.

3.4      TERM. Any Restricted Stock Award shall either vest or be forfeited not
         more than 10 years after the date of grant. Each Restricted Stock Award
         will be subject to earlier termination as provided in or pursuant to
         Section 4.2. Any payment of cash or delivery of stock in payment for a
         Restricted Stock Award may be delayed until a future date if
         specifically authorized by the Committee in writing and by the
         Participant.

                                       11
<PAGE>

3.5      PURCHASE PRICE.

         3.5.1    PRICING LIMITS. Subject to the following provisions of this
                  Section 3.5, the Committee will determine the purchase price
                  per share of the Common Stock covered by each Restricted Stock
                  Award at the time of grant of the Award. To the extent
                  required to satisfy applicable securities laws, in no case
                  will such purchase price be less than the greater of:

                  (a)      85% of the Fair Market Value of the Common Stock on
                           the date of grant, or at the time the purchase is
                           consummated; or

                  (b)      100% of the Fair Market Value of the Common Stock on
                           the date of grant, or at the time the purchase is
                           consummated, in the case of any person who owns stock
                           possessing more than 10% of the total combined voting
                           power of all classes of stock of the Corporation, its
                           parent, or a Subsidiary.

         3.5.2    PAYMENT PROVISIONS. The Corporation will not be obligated to
                  issue certificates evidencing shares of Restricted Stock
                  pending the lapse of restrictions ("Restricted Shares") unless
                  and until it receives full payment of the purchase price
                  therefor and all other conditions to the purchase, as
                  determined by the Committee, have been satisfied. The purchase
                  price of any Restricted Shares must be paid in full at the
                  time of the purchase in one or a combination of the methods
                  set forth in clauses (a) through (e) in Section 2.3.2.

3.6      STOCK CERTIFICATES; FRACTIONAL SHARES. Stock certificates evidencing
         Restricted Shares will bear a legend making appropriate reference to
         the restrictions imposed hereunder and will be held by the Corporation
         or by a third party designated by the Committee until the restrictions
         on such shares have lapsed and the shares have vested in accordance
         with the provisions of the Award and Section 3.3 and any related loan
         has been repaid. Fractional share interests will be disregarded, but
         may be accumulated. The Committee, however, may determine that cash,
         other securities, or other property will be paid or transferred in lieu
         of any fractional share interests.

3.7      RESTRICTIONS.

         3.7.1    PRE-VESTING RESTRAINTS. Except as provided in Section 3.1,
                  Restricted Shares comprising any Restricted Stock Award may
                  not be sold, assigned, transferred, pledged or otherwise
                  disposed of or encumbered, either voluntarily or
                  involuntarily, until the restrictions on such shares have
                  lapsed and the shares have become vested.

         3.7.2    DIVIDEND AND VOTING RIGHTS. Unless otherwise provided in the
                  applicable Award Agreement, a Participant receiving a
                  Restricted Stock Award will be entitled to cash dividend and
                  voting rights for all Restricted Shares issued even though
                  they are not vested, but such rights will terminate
                  immediately as to any Restricted Shares which cease to be
                  eligible for vesting.

                                       12
<PAGE>

         3.7.3    CASH PAYMENTS. The Award Agreement shall specify whether and
                  to what extent cash or other property received in respect of
                  Restricted Shares must be returned (with or without an
                  earnings factor) if the Restricted Shares fail to vest and
                  must be returned to the Corporation in accordance with Section
                  3.8.

3.8      RETURN TO THE CORPORATION. Unless the Committee otherwise expressly
         provides, Restricted Shares subject to a Participant's Restricted Stock
         Award that remain subject to restrictions at the time the Participant's
         employment by or service to the Company terminates, or are subject to
         other conditions to vesting that have not been satisfied by the time
         specified in the applicable Award Agreement, will not vest and will be
         reacquired by the Corporation in such manner and on such terms as the
         Committee provides, which terms shall include return or repayment of
         the lower of the Fair Market Value or the original purchase price of
         the Restricted Shares, without interest, to the Participant to the
         extent not prohibited by law. The Restricted Stock Award shall specify
         any other terms or conditions of the repurchase if the Award fails to
         vest.

3.9      OTHER SECTIONS APPLICABLE TO RESTRICTED STOCK AWARDS . The provisions
         of Sections 2.6.5 through 2.6.8 are applicable to Restricted Stock
         Awards as well as Options.

3.10     WAIVER OF RESTRICTIONS. Subject to Section 1.4 and 4.5 and the specific
         limitations on Restricted Stock Awards contained in this Plan, the
         Committee from time to time may authorize, generally or in specific
         cases only, for the benefit of any Eligible Person, any adjustment in
         the vesting schedule, or the restrictions upon or the term of, a
         Restricted Stock Award granted under this Plan by amendment, by
         substitution of an outstanding Restricted Stock Award, by waiver or by
         other legally valid means.

4.       OTHER PROVISIONS.

4.1      RIGHTS OF ELIGIBLE PERSONS, PARTICIPANTS AND BENEFICIARIES.

         4.1.1    EMPLOYMENT STATUS. Status as an Eligible Person will not be
                  construed as a commitment that any Award will be granted under
                  this Plan to an Eligible Person or to Eligible Persons
                  generally.

         4.1.2    NO EMPLOYMENT/SERVICE CONTRACT. Nothing contained in this Plan
                  (or in any other documents under this Plan or related to any
                  Award) shall confer upon any Eligible Employee or other
                  Participant any right to continue in the employ or other
                  service of the Company, constitute any contract or agreement
                  of employment or other service or affect an employee's status
                  as an employee at will, nor shall interfere in any way with
                  the right of the Company to change such person's compensation
                  or other benefits, or to terminate his or her employment or
                  other service, with or without cause at any time. Nothing in
                  this Section 4.1.2, or in Section 4.2.2 or 4.12, however, is
                  intended to adversely affect any express independent right of
                  such person under a separate employment or service contract.
                  An Award Agreement shall not constitute a contract of
                  employment or service.

         4.1.3    PLAN NOT FUNDED. Awards payable under this Plan will be
                  payable in shares of Common Stock or from the general assets
                  of the Corporation, and (except as

                                       13
<PAGE>

                  provided in Section 1.4.3) no special or separate reserve,
                  fund or deposit will be made to assure payment of such Awards.
                  No Participant, Beneficiary or other person will have any
                  right, title or interest in any fund or in any specific asset
                  (including shares of Common Stock) of the Company by reason of
                  any Award hereunder. Neither the provisions of this Plan (or
                  of any related documents), nor the creation or adoption of
                  this Plan, nor any action taken pursuant to the provisions of
                  this Plan will create, or be construed to create, a trust of
                  any kind or a fiduciary relationship between the Company and
                  any Participant, Beneficiary or other person. To the extent
                  that a Participant, Beneficiary or other person acquires a
                  right to receive payment pursuant to any Award hereunder, such
                  right will be no greater than the right of any unsecured
                  general creditor of the Company.

         4.1.4    CHARTER DOCUMENTS. The Articles of Incorporation and By-Laws
                  of the Corporation, as either of them may lawfully be amended
                  from time to time, may provide for additional restrictions and
                  limitations with respect to the Common Stock (including
                  additional restrictions and limitations on the voting or
                  transfer of Common Stock) or priorities, rights and
                  preferences as to securities and interests prior in rights to
                  the Common Stock. To the extent that these restrictions and
                  limitations are greater than those set forth in this Plan or
                  any Award Agreement, such restrictions and limitations shall
                  apply to any shares of Common Stock acquired pursuant to the
                  exercise of Awards and are incorporated herein by this
                  reference.

4.2      ADJUSTMENTS; ACCELERATION.

         4.2.1    ADJUSTMENTS. Upon or in contemplation of any reclassification,
                  recapitalization, stock split (including a stock split in the
                  form of a stock dividend) or reverse stock split; any merger,
                  combination, consolidation or other reorganization; any
                  split-up; spin-off, or similar extraordinary dividend
                  distribution ("spin-off") in respect of the Common Stock
                  (whether in the form of securities or property); any exchange
                  of Common Stock or other securities of the Corporation, or any
                  similar, unusual or extraordinary corporate transaction in
                  respect of the Common Stock; or a sale of substantially all
                  the assets of the Corporation as an entirety ("asset sale");
                  then the Committee shall, in such manner, to such extent (if
                  any) and at such time as it deems appropriate and equitable in
                  the circumstances:

                  (a)      proportionately adjust any or all of (1) the number
                           of shares of Common Stock or the number and type of
                           other securities that thereafter may be made the
                           subject of Awards (including the specific maxima and
                           numbers of shares set forth elsewhere in this Plan),
                           (2) the number, amount and type of shares of Common
                           Stock (or other securities or property) subject to
                           any or all outstanding Awards, (3) the grant,
                           purchase, or exercise price of any or all outstanding
                           Awards, or (4) the securities, cash or other property
                           deliverable upon exercise or vesting of any
                           outstanding Awards, or

                                       14
<PAGE>

                  (b)      make provision for a settlement by a cash payment or
                           for the substitution or exchange of any or all
                           outstanding Awards for cash, securities or other
                           property (or for other awards) based upon the
                           distribution or consideration payable to holders of
                           the Common Stock upon or in respect of such event.

                  The Committee may adopt such valuation methodologies for
                  outstanding Awards as it deems reasonable in the event of a
                  cash, securities or other property settlement. In the case of
                  Options, but without limitation on other methodologies, the
                  Committee may base such settlement solely upon the excess (if
                  any) of the amount payable upon or in respect of such event
                  over the exercise price of the Option to the extent of the
                  then vested and exercisable shares subject to the Option. In
                  the case of Restricted Shares, but without limiting other
                  methodologies, the Committee may limit the payment to either
                  (1) the purchase price previously paid by the Participant, or
                  (2) the Fair Market Value of the shares, or (3) the price to
                  be paid in the transaction for unrestricted shares.

                  The Committee may make adjustments to and/or accelerate the
                  exercisability of Options in a manner that disqualifies the
                  Options as Incentive Stock Options without the written consent
                  of the Option holders affected thereby.

                  In any of such events, the Committee may take such action
                  prior to such event to the extent that the Committee deems the
                  action necessary to permit the Participant to realize the
                  benefits intended to be conveyed with respect to the
                  underlying shares in the same manner as is or will be
                  available to stockholders generally.

         4.2.2    ACCELERATION OF AWARDS UPON CHANGE IN CONTROL. Subject to
                  Sections 4.2.3 through 4.2.6, unless prior to a Change in
                  Control Event the Committee determines that, upon its
                  occurrence, benefits under any or all Awards will not
                  accelerate or determines that only certain or limited benefits
                  under any or all Awards will be accelerated and the extent to
                  which they will be accelerated, and/or establishes a different
                  time in respect of such event for such acceleration, then upon
                  (or, as may be necessary to effectuate the purposes of this
                  acceleration, immediately prior to) the occurrence of a Change
                  in Control Event:

                  (a)      each Option will become immediately vested and
                           exercisable, and

                  (b)      Restricted Stock will immediately vest free of
                           forfeiture restrictions and/or restrictions giving
                           the Corporation the right to repurchase the stock at
                           its original purchase price.

                  The Committee may override the limitations on acceleration in
                  this Section 4.2.2 by express provision in the Award Agreement
                  and may accord any Eligible Person a right to refuse any
                  acceleration, whether pursuant to the Award Agreement or
                  otherwise, in such circumstances as the Committee may approve.
                  Any acceleration of Awards will comply with applicable legal
                  requirements and, if necessary to accomplish the purposes of
                  the acceleration or if the circumstances otherwise require,
                  may be deemed by the Committee to occur (subject to Sections

                                       15
<PAGE>

                  4.2.4 through 4.2.6) not more than 30 days before or only upon
                  the consummation of the event. Any acceleration of an
                  Incentive Stock Option may disqualify the Option as an
                  Incentive Stock Option and does not require the written
                  consent of the holder of the Option, whether or not the holder
                  is adversely affected thereby.

         4.2.3    POSSIBLE EARLY TERMINATION OF ACCELERATED AWARDS. Without any
                  limitation on the Committee's authority under Section 4.2.1,
                  if the vesting of any Option under this Plan has been fully
                  accelerated as required or permitted by Section 4.2.2 but is
                  not exercised prior to (a) a dissolution of the Corporation,
                  (b) an event described in Section 4.2.1 that the Corporation
                  does not survive, or (c) the consummation of a Change in
                  Control Event approved by the Board, the Option shall
                  terminate, subject to any provision that has been expressly
                  made by the Board or the Committee for the survival,
                  substitution, assumption, exchange or other settlement of the
                  Option.

         4.2.4    POSSIBLE RESCISSION OF ACCELERATION. If the vesting of an
                  Award has been accelerated in anticipation of an event or upon
                  stockholder approval of an event and the Committee or the
                  Board later determines that the event will not occur, the
                  Committee may rescind the effect of the acceleration as to any
                  then outstanding and unexercised or otherwise unvested Awards.

         4.2.5    POOLING EXCEPTION. Any discretion with respect to the events
                  addressed in this Section 4.2, including any acceleration of
                  vesting, shall be limited to the extent required by applicable
                  accounting requirements in the case of a transaction intended
                  to be accounted for as a pooling of interests transaction.

         4.2.6    GOLDEN PARACHUTE LIMITATIONS. Unless otherwise specified in an
                  Award Agreement or otherwise authorized by the Board in the
                  specific case, no vesting of or lapse or restrictions imposed
                  on an Award will be accelerated under this Plan to an extent
                  or in a manner that would result in payments that are not
                  fully deductible by the Company for federal income tax
                  purposes because of Section 280G of the Code. If a Participant
                  would be entitled to benefits or payments hereunder and under
                  any other plan or program that would constitute "parachute
                  payments" as defined in Section 280G of the Code, then the
                  Participant may by written notice to the Company designate the
                  order in which such parachute payments will be reduced or
                  modified so that the Company is not denied any federal income
                  tax deductions for any "parachute payments" because of Section
                  280G of the Code.

4.3      COMPLIANCE WITH LAWS.

         4.3.1    GENERAL. This Plan, the granting and vesting of Awards under
                  this Plan, and the offer, issuance and delivery of shares of
                  Common Stock, the acceptance of promissory notes and/or the
                  payment of money under this Plan or under Awards are subject
                  to compliance with all applicable federal and state laws,
                  rules and regulations (including but not limited to state and
                  federal securities laws, and federal margin requirements) and
                  to such approvals by any listing, regulatory or

                                       16
<PAGE>

                  governmental authority as may, in the opinion of counsel for
                  the Corporation, be necessary or advisable in connection
                  therewith. In addition, any securities delivered under this
                  Plan may be subject to any special restrictions that the
                  Committee may require to preserve a pooling of interests under
                  generally accepted accounting principles. The person acquiring
                  any securities under this Plan will, if requested by the
                  Corporation, provide such assurances and representations to
                  the Corporation as the Committee may deem necessary or
                  desirable to assure compliance with all applicable legal and
                  accounting requirements.

         4.3.2    COMPLIANCE WITH SECURITIES LAWS. No Participant shall sell,
                  pledge or otherwise transfer shares of Common Stock acquired
                  pursuant to an Award or any interest in such shares except in
                  accordance with the express terms of this Plan and the
                  applicable Award Agreement. Any attempted transfer in
                  violation of this Section 4.3 shall be void and of no effect.
                  Without in any way limiting the provisions set forth above, no
                  Participant shall make any disposition of all or any portion
                  of shares of Common Stock acquired or to be acquired pursuant
                  to an Award, except in compliance with all applicable federal
                  and state securities laws and unless and until:

                  (a)      there is then in effect a registration statement
                           under the Securities Act covering such proposed
                           disposition and such disposition is made in
                           accordance with such registration statement; or

                  (b)      such disposition is made in accordance with Rule 144
                           under the Securities Act; or

                  (c)      such Participant notifies the Corporation of the
                           proposed disposition and furnishes the Corporation
                           with a statement of the circumstances surrounding the
                           proposed disposition, and, if requested by the
                           Corporation, furnishes to the Corporation an opinion
                           of counsel acceptable to the Corporation's counsel,
                           that such disposition will not require registration
                           under the Securities Act and will be in compliance
                           with all applicable state securities laws.

                  Notwithstanding anything else herein to the contrary, the
                  Company has no obligation to register the Common Stock or file
                  any registration statement under either federal or state
                  securities laws, nor does the Company make any representation
                  concerning the likelihood of a public offering of the Common
                  Stock or any other securities of the Company.

         4.3.3    SHARE LEGENDS . All certificates evidencing shares of Common
                  Stock issued or delivered under this Plan shall bear the
                  following legends and/or any other appropriate or required
                  legends under applicable laws:

                  "OWNERSHIP OF THIS CERTIFICATE, THE SHARES EVIDENCED BY THIS
                  CERTIFICATE AND ANY INTEREST THEREIN ARE SUBJECT TO

                                       17
<PAGE>

                  SUBSTANTIAL RESTRICTIONS ON TRANSFER UNDER APPLICABLE LAW AND
                  UNDER AGREEMENTS WITH THE CORPORATION, INCLUDING RESTRICTIONS
                  ON SALE, ASSIGNMENT, TRANSFER, PLEDGE OR OTHER DISPOSITION."

                  "THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED OR
                  QUALIFIED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
                  ("ACT"), NOR HAVE THEY BEEN REGISTERED OR QUALIFIED UNDER THE
                  SECURITIES LAWS OF ANY STATE. NO TRANSFER OF SUCH SECURITIES
                  WILL BE PERMITTED UNLESS A REGISTRATION STATEMENT UNDER THE
                  ACT IS IN EFFECT AS TO SUCH TRANSFER, THE TRANSFER IS MADE IN
                  ACCORDANCE WITH RULE 144 UNDER THE ACT, OR IN THE OPINION OF
                  COUNSEL TO THE CORPORATION, REGISTRATION UNDER THE ACT IS
                  UNNECESSARY IN ORDER FOR SUCH TRANSFER TO COMPLY WITH THE ACT
                  AND WITH APPLICABLE STATE SECURITIES LAWS."

         4.3.4    DELIVERY OF FINANCIAL STATEMENTS. The Corporation shall
                  deliver annually to Participants such financial statements of
                  the Corporation as are required to satisfy applicable
                  securities laws.

         4.3.5    CONFIDENTIAL INFORMATION. Any financial or other information
                  relating to the Corporation obtained by Participants in
                  connection with or as a result of this Plan or their Awards
                  shall be treated as confidential.

4.4      TAX WITHHOLDING.

         4.4.1    TAX WITHHOLDING. Upon any exercise, vesting, or payment of any
                  Award or upon the disposition of shares of Common Stock
                  acquired pursuant to the exercise of an Incentive Stock Option
                  prior to satisfaction of the holding period requirements of
                  Section 422 of the Code, the Company shall have the right at
                  its option to:

                  (a)      require the Participant (or Personal Representative
                           or Beneficiary, as the case may be) to pay or provide
                           for payment of the amount of any taxes which the
                           Company may be required to withhold with respect to
                           such Award event or payment;

                  (b)      deduct from any amount payable to the Participant (or
                           Personal Representative or Beneficiary, as the case
                           may be) in cash or equivalent (in respect of an Award
                           or otherwise) the amount of any taxes which the
                           Company may be required to withhold with respect to
                           such Award event or payment; or

                  (c)      reduce the number of shares of Common Stock to be
                           delivered by (or otherwise reacquire shares held by
                           the Participant at least 6 months) the appropriate
                           number of shares of Common Stock, valued at their
                           then Fair Market Value, to satisfy the minimum
                           withholding obligation.

                                       18
<PAGE>

                  The Committee may, in its sole discretion (subject to Section
                  4.3), grant (either at the time of grant of the Award or
                  thereafter) to the Participant the right to elect, pursuant to
                  such rules and subject to such conditions as the Committee may
                  establish, to have the Corporation utilize the withholding
                  offset under clause (c) above.

                  In no event will the value of shares withheld under (c) above
                  exceed the minimum amount of required withholding under
                  applicable law.

         4.4.2    TAX LOANS. If so provided in the Award Agreement or
                  otherwise authorized by the Committee, the
                  Corporation may, to the extent permitted by law, authorize a
                  loan to an Eligible Person in the amount of any taxes that
                  the Company may be required to withhold with respect to
                  shares of Common Stock received (or disposed of, as the case
                  may be) pursuant to a transaction described in Section 4.4.1.
                  Such a loan will be for a term not greater than 12 months and
                  at a rate of interest and pursuant to such other terms and
                  conditions as the Corporation may establish, subject to
                  compliance with applicable law. Such a loan need not
                  otherwise comply with the provisions of Section 2.3.3.

4.5      PLAN AND AWARD AMENDMENTS, TERMINATION AND SUSPENSION.

         4.5.1    BOARD AUTHORIZATION. The Board may, at any time, terminate
                  or, from time to time, amend, modify or suspend this Plan, in
                  whole or in part. No Awards may be granted during any
                  suspension of this Plan or after termination of this Plan.
                  Unless otherwise expressly provided in this Plan or in an
                  applicable Award Agreement, any Award granted prior to the
                  termination or suspension of this Plan may extend beyond the
                  date of such termination or suspension, and all authority of
                  the Committee with respect to Awards hereunder, including the
                  authority to amend an Award, will continue during any
                  suspension of this Plan and in respect of Awards outstanding
                  upon or following the termination of this Plan.

         4.5.2    STOCKHOLDER APPROVAL. This Plan and any amendment to
                  this Plan shall be subject to stockholder approval to the
                  extent then required under Section 422 or 424 of the Code or
                  any other applicable law, or deemed necessary or advisable by
                  the Board.

         4.5.3    AMENDMENTS TO AWARDS. Without limiting any other express
                  authority of the Committee under but subject to the express
                  limits of this Plan, the Committee by resolution or otherwise
                  may make changes to the terms and conditions of Awards and
                  this Plan.

         4.5.4    LIMITATIONS ON AMENDMENTS TO PLAN AND AWARDS. The Board and
                  the Committee may not, without the written consent of the
                  Participant affected thereby, amend, terminate or suspend
                  this Plan in any manner materially adverse to the
                  Participant's rights or benefits under an outstanding Award
                  or amend the Participant's Award in any manner materially
                  adverse to the Participant's rights or benefits thereunder.
                  Changes contemplated by Section 4.2 or Section 4.5.5 do

                                       19
<PAGE>

                  not and will not be deemed to constitute changes or
                  amendments for purposes of this Section 4.5.

4.6      PRIVILEGES OF STOCK OWNERSHIP. Except as otherwise expressly authorized
         by the Committee or this Plan or in the Award Agreement, a Participant
         will not be entitled to any privilege of stock ownership as to any
         shares of Common Stock not actually delivered to and held of record by
         the Participant. No adjustment will be made for dividends or other
         rights as a stockholder for which a record date is prior to such date
         of delivery.

4.7      EFFECTIVE DATE OF THE PLAN. This Plan is effective upon the Effective
         Date, subject to approval by the stockholders of the Corporation within
         twelve months after the date the Board approves this Plan.

4.8      TERM OF THE PLAN. Unless earlier terminated by the Board, this Plan
         will terminate at the close of business on the day before the 10th
         anniversary of the Effective Date.

4.9      GOVERNING LAW/SEVERABILITY.

         4.9.1    CHOICE OF LAW. This Plan, the Awards, all documents evidencing
                  Awards and all other related documents will be governed by,
                  and construed in accordance with, the laws of the state of
                  Delaware.

         4.9.2    SEVERABILITY. If it is determined that any provision of this
                  Plan or an Award Agreement is invalid and unenforceable, the
                  remaining provisions of this Plan and/or the Award Agreement,
                  as applicable, will continue in effect provided that the
                  essential economic terms of this Plan and the Award can still
                  be enforced.

4.10     CAPTIONS. Captions and headings are given to the sections and
         subsections of this Plan solely as a convenience to facilitate
         reference. Such headings will not be deemed in any way material or
         relevant to the construction or interpretation of this Plan or any
         provision thereof.

4.11     NON-EXCLUSIVITY OF PLAN. Nothing in this Plan will limit or be deemed
         to limit the authority of the Board or the Committee to grant awards or
         authorize any other compensation, with or without reference to the
         Common Stock, under any other plan or authority.

4.12     NO RESTRICTION ON CORPORATE POWERS. The existence of this Plan, the
         Award Agreements, and the Awards granted hereunder, shall not limit,
         affect or restrict in any way the right or power of the Board or the
         stockholders of the Corporation to make or authorize: (a) any
         adjustment, recapitalization, reorganization or other change in the
         Corporation's or any Subsidiary's capital structure or its business;
         (b) any merger, amalgamation, consolidation or change in the ownership
         of the Corporation or any Subsidiary; (c) any issue of bonds,
         debentures, capital, preferred or prior preference stocks ahead of or
         affecting the Corporation's capital stock or the rights thereof; (d)
         any dissolution or liquidation of the Corporation or any Subsidiary;
         (e) any sale or transfer of all or any part of the Corporation or any
         Subsidiary's assets or business; or (f) any other

                                       20
<PAGE>

         corporate act or proceeding by the Corporation or any Subsidiary. No
         Participant, Beneficiary or any other person shall have any claim under
         any Award or Award Agreement against any member of the Board or the
         Committee, or the Corporation or any employees, officers or agents of
         the Corporation or any Subsidiary, as a result of any such action.

4.13     OTHER COMPANY COMPENSATION OR BENEFIT PROGRAMS . Payments and other
         benefits received by a Participant under an Award made pursuant to this
         Plan shall not be deemed a part of a Participant's compensation for
         purposes of the determination of benefits under any other employee
         welfare or benefit plans or arrangements, if any, provided by the
         Corporation or any Subsidiary, except where the Committee or the Board
         expressly otherwise provides or authorizes in writing. Awards under
         this Plan may be made in addition to, in combination with, as
         alternatives to or in payment of grants, awards or commitments under
         any other plans or arrangements of the Corporation or any Subsidiary.

5.       DEFINITIONS.

"AWARD" means an award of any Option or Restricted Stock, or any combination
thereof, whether alternative or cumulative, authorized by and granted under this
Plan.

"AWARD AGREEMENT" means any writing, approved by the Committee, setting forth
the terms of an Award that has been duly authorized and approved.

"AWARD DATE" means the date upon which the Committee took the action granting an
Award or such later date as the Committee designates as the Award Date at the
time of the grant of the Award.

"BENEFICIARY" means the person, persons, trust or trusts designated by a
Participant, or, in the absence of a designation, entitled by will or the laws
of descent and distribution, to receive the benefits specified in the Award
Agreement and under this Plan if the Participant dies, and means the
Participant's executor or administrator if no other Beneficiary is designated
and able to act under the circumstances.

"BOARD" means the Board of Directors of the Corporation.

"CAUSE" with respect to a Participant means (unless otherwise expressly provided
in the applicable Award Agreement, or another applicable contract with the
Participant that defines such term for purposes of determining the effect that a
"for cause" termination has on the Participant's stock options and/or restricted
stock awards) a termination of employment or service based upon a finding by the
Company, acting in good faith and based on its reasonable belief at the time,
that the Participant:

         (a)      has been negligent in the discharge of his or her duties to
                  the Company, has refused to perform stated or assigned duties
                  or is incompetent in or (other than by reason of a disability
                  or analogous condition) incapable of performing those duties;
                  or

                                       21
<PAGE>

         (b)      has been dishonest or committed or engaged in an act of theft,
                  embezzlement or fraud, a breach of confidentiality, an
                  unauthorized disclosure or use of inside information, customer
                  lists, trade secrets or other confidential information; or

         (c)      has breached a fiduciary duty, or willfully and materially
                  violated any other duty, law, rule, regulation or policy of
                  the Company or an affiliate; or has been convicted of, or
                  plead guilty or nolo contendere to, a felony or misdemeanor
                  (other than minor traffic violations or similar offenses); or

         (d)      has materially breached any of the provisions of any agreement
                  with the Company or an affiliated entity; or

         (e)      has engaged in unfair competition with, or otherwise acted
                  intentionally in a manner injurious to the reputation,
                  business or assets of, the Company or an affiliate; or

         (f)      has improperly induced a vendor or customer to break or
                  terminate any contract with the Company or an affiliate or
                  induced a principal for whom the Company or an affiliate acts
                  as agent to terminate such agency relationship.

A termination for Cause shall be deemed to occur (subject to reinstatement upon
a contrary final determination by the Committee) on the date on which the
Company first delivers written notice to the Participant of a finding of
termination for Cause.

"CHANGE IN CONTROL EVENT" means any of the following:

         (a)      Approval by the Board and by stockholders of the Corporation
                  (or, if no stockholder approval is required, by the Board
                  alone) of the dissolution or liquidation of the Corporation,
                  other than in the context of a transaction that does not
                  constitute a Change in Control Event under clause (b) below;

         (b)      Consummation of a merger, consolidation, or other
                  reorganization, with or into, or the sale of all or
                  substantially all of the Corporation's business and/or assets
                  as an entirety to, one or more entities that are not
                  Subsidiaries or other affiliates of the Company (a "BUSINESS
                  COMBINATION"), unless (1) as a result of the Business
                  Combination, more than 50% of the outstanding voting power
                  generally in the election of directors of the surviving or
                  resulting entity or a parent thereof (the "SUCCESSOR ENTITY")
                  immediately after the reorganization are, or will be, owned,
                  directly or indirectly, by holders of the Corporation's voting
                  securities immediately before the Business Combination; and
                  (2) no "PERSON" (as such term is used in Sections 13(d) and
                  14(d) of the Exchange Act), excluding the Successor Entity or
                  an Excluded Person, beneficially owns, directly or indirectly,
                  more than 50% of the outstanding shares or the combined voting
                  power of the outstanding voting securities of the Successor
                  Entity, after giving effect to the Business Combination,
                  except to the extent that such ownership existed prior to the
                  Business Combination; or

                                       22
<PAGE>

         (c)      Any "PERSON" (as such term is used in Sections 13(d) and 14(d)
                  of the Exchange Act) other than an Excluded Person becomes the
                  beneficial owner (as defined in Rule 13d-3 under the Exchange
                  Act), directly or indirectly, of securities of the Corporation
                  representing more than 50% of the combined voting power of the
                  Corporation's then outstanding securities entitled to then
                  vote generally in the election of directors of the
                  Corporation, other than as a result of (1) an acquisition
                  directly from the Company, (2) an acquisition by the Company,
                  or (3) an acquisition by an entity pursuant to a transaction
                  which is expressly excluded under clause (b) above.

"CODE" means the Internal Revenue Code of 1986, as amended from time to time.

"COMMISSION" means the Securities and Exchange Commission.

"COMMITTEE" means the Board or one or more committees of director(s) appointed
by the Board to administer all or certain aspects of this Plan, each committee
to be comprised solely of one or more directors or such greater number of
directors as may be required under applicable law.

"COMMON STOCK" means the shares of the Corporation's Common Stock, $0.00001 par
value, and such other securities or property as may become the subject of
Awards, or become subject to Awards, pursuant to an adjustment made under
Section 4.2 of this Plan.

"COMPANY" means the Corporation and its Subsidiaries.

"CORPORATION" means Accent Optical Technologies, Inc., a Delaware corporation,
and its successors.

"EFFECTIVE DATE" means the date the Board approved this Plan.

"ELIGIBLE EMPLOYEE" means an officer (whether or not a director) or employee of
the Company.

"ELIGIBLE PERSON" means an Eligible Employee, or any Other Eligible Person,
designated by the Committee in its discretion.

"EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended from time
to time.

"EXCLUDED PERSON" means (a) any person described in and satisfying the
conditions of Rule 13d-1(b)(1) under the Exchange Act, (b) the Company, (c) an
employee benefit plan (or related trust) sponsored or maintained by the Company
or the Successor Entity, or (d) any person who is the beneficial owner (as
defined in Rule 13d-3 under the Exchange Act) of more than 25% of the Common
Stock on the Effective Date (or an affiliate, successor, heir, descendant, or
related party of or to such person).

"FAIR MARKET VALUE" on any date means:

         (a)      if the stock is listed or admitted to trade on a national
                  securities exchange, the closing price of the stock on the
                  Composite Tape, as published in the Western Edition of The
                  Wall Street Journal, of the principal national securities
                  exchange

                                       23
<PAGE>

                  on which the stock is so listed or admitted to trade, on such
                  date, or, if there is no trading of the stock on such date,
                  then the closing price of the stock as quoted on such
                  Composite Tape on the next preceding date on which there was
                  trading in such shares;

         (b)      if the stock is not listed or admitted to trade on a national
                  securities exchange, the last/closing price for the stock on
                  such date, as furnished by the National Association of
                  Securities Dealers, Inc. ("NASD") through the NASDAQ National
                  Market Reporting System or a similar organization if the NASD
                  is no longer reporting such information;

         (c)      if the stock is not listed or admitted to trade on a national
                  securities exchange and is not reported on the National Market
                  Reporting System, the mean between the bid and asked price for
                  the stock on such date, as furnished by the NASD or a similar
                  organization; or

         (d)      if the stock is not listed or admitted to trade on a national
                  securities exchange, is not reported on the National Market
                  Reporting System and if bid and asked prices for the stock are
                  not furnished by the NASD or a similar organization, the value
                  as established by the Committee at such time for purposes of
                  this Plan.

         Any determination as to fair market value made pursuant to this Plan
         shall be determined without regard to any restriction other than a
         restriction which, by its terms, will never lapse, and shall be
         conclusive and binding on all persons.

"INCENTIVE STOCK OPTION" means an Option that is designated and intended as an
incentive stock option within the meaning of Section 422 of the Code, the award
of which contains such provisions (including but not limited to the receipt of
stockholder approval of this Plan, if the award is made prior to such approval)
and is made under such circumstances and to such persons as may be necessary to
comply with that section.

"NONQUALIFIED STOCK OPTION" means an Option that is not an incentive stock
option within the meaning of Section 442 of the code and includes an Option
designated as a Nonqualified Stock Option and any Option intended as an
Incentive Stock Option that fails to meet the applicable legal requirements
thereof.

"OPTION" means an option to purchase Common Stock granted under this Plan. The
Committee will designate any Option granted to an employee of the Corporation or
a Subsidiary as a Nonqualified Stock Option or an Incentive Stock Option.

"OTHER ELIGIBLE PERSON" means any director of, or any individual consultant or
advisor who renders or has rendered bona fide services (other than services in
connection with the offering or sale of securities of the Company in a capital
raising transaction or as a market maker or promoter of the Company's
securities) to, the Company, and who is selected to participate in this Plan by
the Committee. An advisor or consultant may be selected as an Other Eligible
Person only if such person's participation in this Plan would not adversely
affect (a) the Corporation's eligibility to rely on the Rule 701 from
registration under the Securities Act for the offering of

                                       24
<PAGE>

shares issuable under this Plan by the Company, or (b) the Corporation's
compliance with any other applicable laws.

"PARTICIPANT" means an Eligible Person who has been granted and holds an Award
under this Plan.

"PERSONAL REPRESENTATIVE" means the person or persons who, upon the disability
or incompetence of a Participant, has acquired on behalf of the Participant, by
legal proceeding or otherwise, the power to exercise the rights or receive
benefits under this Plan by virtue of having become the legal representative of
the Participant.

"PLAN" means this Accent Optical Technologies, Inc. Stock Incentive Plan, as it
may hereafter be amended from time to time.

"PUBLIC OFFERING DATE" means the date the Common Stock is first registered under
the Exchange Act and listed or quoted on a recognized national securities
exchange or in the NASDAQ National Market Quotation System.

"RESTRICTED SHARES" or "RESTRICTED STOCK" means shares of Common Stock awarded
to a Participant under this Plan, subject to payment of such consideration and
such conditions on vesting (which may include, among others, the passage of
time, specified performance objectives or other factors) and such transfer and
other restrictions as are established in or pursuant to this Plan and the
related Award Agreement, to the extent such remain unvested and restricted under
the terms of the applicable Award Agreement.

"RETIREMENT" means retirement with the consent of the Company or, from active
service as an employee or officer of the Company on or after attaining (a) age
55 with ten or more years of employment with the Company, or (b) age 65.

"SECURITIES ACT" means the Securities Act of 1933, as amended from time to time.

"SEVERANCE DATE" means (a) in the case of an Award granted to an Eligible
Employee, the date the Eligible Employee's employment by the Company terminates
for any reason whatsoever, (b) in the case of an Award granted to an Other
Eligible Person who is a director of the Corporation, the date the director
ceases to be a director of the Corporation for any reason whatsoever, or (c) in
the case of any other Other Eligible Person, the date the person's services to
the Company terminate for any reason whatsoever.

"SUBSIDIARY" means any corporation or other entity a majority of whose
outstanding voting stock or voting power is beneficially owned, directly or
indirectly, by the Corporation.

"TOTAL DISABILITY" means a "total and permanent disability" within the meaning
of Section 22(e)(3) of the Code and, with respect to Awards other than Incentive
Stock Options, such other disabilities, infirmities, afflictions, or conditions
as the Committee may include.

                                       25

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