Document:

Exhibit 10.1.9

                             PACIFIC CAPITAL BANCORP

                 AMENDED AND RESTATED 1996 DIRECTORS STOCK PLAN

                          (Effective February 22, 2000)

1.       PURPOSES OF THE PLAN

         The purposes of this 1996 Directors Stock Plan are to attract, motivate
and  retain  the  best  available  Directors  for the  Company  and  each of its
Subsidiaries  and to provide  them with  additional  incentive  to  promote  the
success of the Company's business.

2.       DEFINITIONS

         As used herein, the following definitions shall apply:

         2.1 Administrator.  "Administrator" means the Board of Directors or any
of its Committees as shall be administering  the Plan in accordance with Section
8 of the Plan.

         2.2 Applicable Laws. "Applicable Laws" means the federal and state laws
relating to the administration of stock option plans.

         2.3 Award.  "Award"  means any Option or  Restricted  Stock  granted or
issued under this Plan.

         2.4 Award  Agreement.  "Award  Agreement" means any Option Agreement or
Restricted Stock Agreement, as appropriate, relating to any Award.

         2.5 "Board of Directors" means the Board of Directors of the Company.

         2.6 "Change of Control" means the occurrence of either of the following
events:

                  2.6.1 An acquisition (other than directly from the Company) of
any  voting  securities  of the  Company by any person (as that term is used for
purposes of Section  13(d) or Section  14(d) of the Exchange  Act),  immediately
after which such  person has  beneficial  ownership  (within the meaning of Rule
13d-3 promulgated  under the Exchange Act) of thirty-five  percent (35%) or more
of  the  combined  voting  power  of  the  Company's  then  outstanding   voting
securities;

                           A.  provided  that a Change of  Control  shall not be
         deemed to have  occurred  if the person  acquiring  the  securities  is
         either (a) an employee benefit plan (or a trust forming a part thereof)
         maintained by the Company or any of its Subsidiaries or (b) the Company
         or any of its Subsidiaries; and

                           B.  provided  further that a Change of Control  shall
         not be  deemed  to have  occurred  if any other  person  acquires  such
         securities  in  connection  with  any  merger,  consolidation  or other
         reorganization of the Company in a transaction after which:

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                           (1)  the  shareholders  of the  Company,  immediately
         before such transaction,  own directly or indirectly  immediately after
         such  transaction  at  least  fifty-one  percent  (51%)  of the  voting
         securities  of the  surviving  corporation  in  substantially  the same
         proportion as their  ownership of the voting  securities of the Company
         immediately before such transaction; or

                           (2) the individuals  who were Incumbent  Directors at
         the time of the Company's execution of the agreement providing for such
         transaction  constitute at least a majority of the members of the board
         of  directors   of  the   corporation   resulting   from  such  merger,
         consolidation or reorganization (the "Surviving Corporation"); provided
         that, if the Company is not the Surviving Corporation,  the individuals
         who were Incumbent  Directors at the time of the Company's execution of
         the  agreement  providing  for such  transaction  constitute at least a
         majority  of the  members  of the board of  directors  of the  ultimate
         parent corporation of the Surviving Corporation; or

                           (3) no person  [other than (a) the  Company,  (b) any
         Subsidiary  of the Company,  or (c) any  employee  benefit plan (or any
         trust forming a part thereof) maintained by the Company,  the Surviving
         Corporation or any Subsidiary of the Company], has beneficial ownership
         of  thirty-five  percent (35%) or more of the combined  voting power of
         the Surviving  Corporation's voting securities outstanding  immediately
         after such transaction; or

                  2.6.2 A cumulative  change in the  composition of the Board of
Directors  occurring during any two-year period, as a result of which fewer than
a majority of the Directors are Incumbent Directors; provided that no individual
shall be considered  to be an Incumbent  Director if such  individual  initially
assumed  office as a result of either an actual or threatened  election  contest
(as described in Rule 14a-11  promulgated  under the Exchange Act) (an "Election
Contest") or other actual or threatened  solicitation  of proxies or consents by
or on behalf of a person other than the Board of Directors (a "Proxy  Contest"),
including  by reason of any  agreement  intended to avoid or settle any Election
Contest or Proxy Contest.

                  2.6.3 Notwithstanding the foregoing, a Change of Control shall
not be deemed to occur solely because any person acquires  beneficial  ownership
of more than the permitted amount of the then outstanding  voting  securities of
the Company as a result of the  acquisition of voting  securities by the Company
which, by reducing the number of voting securities then  outstanding,  increases
the proportional number of voting securities  beneficially owned by such person;
provided  that if a Change of Control would occur (but for the operation of this
sentence) as a result of the  acquisition  of voting  securities by the Company,
and, after such  acquisition by the Company,  such person becomes the beneficial
owner of any additional  voting securities which increases the percentage of the
then outstanding  voting securities  beneficially  owned by such person,  then a
Change of Control shall occur.

                  2.6.4  Notwithstanding  anything  in this  Plan  or any  Stock
Option  Agreement  or  Restricted  Stock  Agreement  to the  contrary,  (a)  the
occurrence of a merger,  consolidation  or  reorganization  that is described in
Section 11.2 of this Plan shall not be considered  the occurrence of a change of
control  for any  purposes  under  this Plan or any Stock  Option  Agreement  or
Restricted Stock Agreement and (b) if a merger, consolidation, reorganization or
other  transaction  might be deemed to be  described  in both this  Section  and
Section 11.2 of this Plan, such merger,  consolidation,  reorganization or other
transaction shall be deemed to be described in only Section 11.2 of this Plan.

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

         2.8 "Commission" means the Securities and Exchange Commission.

         2.9  "Committee"  means the  Committee of the Board of  Directors  that
shall administer the Plan.

         2.10 "Common Stock" means the Common Stock of the Company.

         2.11 "Company" means Pacific Capital Bancorp, a California corporation.

         2.12  "Disability"  means total and permanent  disability as defined in
Section 22(e)(3) of the Code.

         2.13  "Donative  Transfer"  means any  transfer  of an Option or Reload
Option  made for  donative  purposes  or without the payment or receipt by or on
behalf  of the  Optionee  of any  cash,  property  or other  consideration.  For
purposes of this Section 2.13,  neither an Optionee's  receipt of or eligibility
for a deduction,  credit or similar allowance for federal or state income tax or
estate tax purposes nor the  transferee's  use for family or support purposes of
any proceeds  realized  from the sale of any shares of Common Stock  acquired on
exercise of an Option shall be deemed to be the receipt of consideration.

         2.14 Effective Date. "Effective Date" means February 22, 2000, the date
on which the amendment of this Plan was approved by the Board of Directors.

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

         2.16 "Fair Market Value" means, as of any date, the value of the Common
Stock determined as follows.

                  2.16.1 If the Common Stock is listed on an  established  stock
exchange or a national market system,  including  without  limitation the Nasdaq
National  Market  of  the  National  Association  of  Securities  Dealers,  Inc.
Automated  Quotation  ("NASDAQ")  System,  the Fair  Market  Value of a share of
Common  Stock  shall be the  closing  sales price for such stock (or the closing
bid, if no sales were  reported)  as quoted on such  system or exchange  (or the
exchange  with the greatest  volume of trading in the Common  Stock) on the last
market trading day prior to the date of determination.

                  2.16.2 If the Common Stock is quoted on the NASDAQ System (but
not  on  the  Nasdaq  National  Market  thereof)  or is  regularly  quoted  by a
recognized  securities  dealer but  selling  prices are not  reported,  the Fair
Market  Value of a share of Common  Stock shall be the mean between the high bid
and low asked prices for the Common  Stock on the last market  trading day prior
to the date of determination.

         2.17 Incumbent Directors.  "Incumbent Directors" means Directors of the
Company who either (a) are Directors of the Company as of the Effective Date, or
(b) are elected,  or nominated  for  election,  to the Board of Directors by the
affirmative  vote of at least a majority of the Incumbent  Directors at the time
of such election or  nomination;  provided  that,  for purposes of clause (b) of
this Section  2.17, an  individual  whose  election or nomination is effected in
connection  with an actual  or  threatened  Election  Contest  or Proxy  Contest
relating to the election of Directors to the Company  shall not be considered an
Incumbent Director.

         2.18 Nonqualified  Stock Option.  "Nonqualified  Stock Option" means an
Option  which  is  not   designated   as  an  Incentive   Stock  Option  by  the
Administrator.

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         2.19  "Option"  means a stock option  granted  pursuant to the Plan and
shall  include  Reload  Options.   All  Options   granted   hereunder  shall  be
"nonstatutory  stock  options"  and each such  Option  shall be  evidenced  by a
written Stock Option Agreement.

         2.20 "Optioned Stock" means the Common Stock subject to an Option.

         2.21 "Optionee" means a Director who receives an Option.

         2.22  "Participant"  means any Director who has received an Award under
this Plan.

         2.23 "Plan" means this  Restricted  Stock  Option Plan,  as amended and
restated.

         2.24 Restricted  Stock.  "Restricted  Stock" means Common Stock awarded
under this Plan.

         2.25 Restricted Stockholder.  "Restricted Stockholder" means a Director
granted an award of Restricted Stock under this Plan.

         2.26 Restricted Stock Agreement.  "Restricted  Stock Agreement" means a
written agreement between the Company and the Restricted  Stockholder evidencing
the terms and restrictions  applying to the award of the Restricted  Stock. Each
Restricted  Stock  Agreement is subject to the terms and conditions of the Plan.
The terms and  provisions of each  Restricted  Stock  Agreement  need not be the
same.

         2.27 "Plan" means this 1996 Directors Stock Option Plan.

         2.28 "Rule 16b-3" means Rule 16b-3  promulgated  under the Exchange Act
or any successor to Rule 16b-3 in effect at the time in question.

         2.29 "Section 16(b)" means Section 16(b) of the Exchange Act.

         2.30 "Stock Option  Agreement"  means a written  agreement  between the
Company and an Optionee  evidencing  the terms and  conditions  of an individual
Option grant.  Each Option  Agreement is subject to the terms and  conditions of
the Plan.  The terms and  provisions  of each Option  Agreement  need not be the
same.

         2.31  "Subsidiary"  means a  "subsidiary  corporation,"  whether now or
hereafter existing, as defined as Section 424(f) of the Code.

3.       STOCK SUBJECT TO THE PLAN

         3.1 Original  Reserve.  Subject to the  provisions of Sections 11.1 and
11.2 of the Plan, the maximum  aggregate number of shares which are reserved for
issuance  upon  exercise of Options and other Awards  granted  under the Plan is
Five Hundred Fifty Thousand (550,000) shares of Common Stock. During the term of
this Plan,  the Company will at all times reserve and keep available such number
of shares as shall be  sufficient to satisfy the  requirements  of the Plan (the
Plan "Reserve").

         3.2 Adjustments In Reserve.  In the event that any  outstanding  Option
granted under the Plan expires or is terminated  without exercise,  or with only
partial  exercise,  prior to the end of the period  during

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which  Options  may be  granted  under the Plan,  the  shares  allocable  to the
unexercised  portion of such Option shall be added back into the Reserve. In the
event that any outstanding shares of Restricted Stock awarded under the Plan are
repurchased  by the  Company  prior  to  the  end of  the  period  during  which
Restricted  Stock may be awarded under the Plan, such shares of Restricted Stock
shall be added back into the Reserve.

4.       ELIGIBILITY

         Awards  may  be  granted  only  to  Directors  of the  Company,  or any
Subsidiary,  who are not otherwise employed by the Company or any Subsidiary. In
addition,  notwithstanding  any  other  provision  contained  in this  Plan,  no
Director  shall  be  eligible  to  receive  any  Award  under  the  Plan if such
individual  owns stock and securities  possessing more than ten percent (10%) of
the total combined  voting power or value of all classes of stock of the Company
or any  Subsidiary.  Notwithstanding  anything in this Plan to the contrary,  no
person  shall be  entitled  to the grant of more  than one Award  during or with
respect to any year by reason of such  person  acting as a Director of more than
one of the Company or a  Subsidiary.  No person shall be eligible to receive the
grant of an Award  under this Plan unless he or she is a Director of the Company
or such Subsidiary on the date of such grant.

5.       TYPES OF AWARDS

         5.1 Grant of Options.

                  5.1.1 Effective Date of Option Grant. The "grant" of an Option
pursuant to this Plan shall be deemed to have occurred on the latest of: (a) the
date the Board of Directors or the Committee  announces the grant of the Option;
or (b) such later date  designated by the Board of Directors or the Committee or
set forth in the Stock Option Agreement.

                  5.1.2 Determination of Grants.

                           A. The  Administrator  may from time to time,  in its
         absolute discretion:

                                    (1)  Determine  which  Directors  are  to be
                  granted Options;

                                    (2) Determine  the number of shares  subject
                  to Options granted to any Director; and

                                    (3) Determine the other terms and conditions
                  of such Options consistent with this Plan.

                           B. Upon the  selection of a Director to be granted an
         Option,  the Administrator  shall instruct the Secretary of the Company
         to issue the Option and may impose such  conditions on the grant of the
         Option as the Administrator deems appropriate.

                  5.1.3 Other Awards.  Options may be granted  either alone,  in
addition to, or in tandem with other Awards  granted  under the Plan and/or cash
awards made outside of the Plan.

                  5.1.4 Stock Option  Agreements.  Each Option granted hereunder
shall be evidenced by a written Stock Option Agreement.

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        5.2      Award of Restricted Stock.

                  5.2.1 Effective Date of Award.  The award of Restricted  Stock
pursuant to this Plan shall be deemed to have occurred on the latest of: (a) the
date  the  Board  of  Directors  or the  Committee  announces  the  award of the
Restricted Stock; or (b) such later date designated by the Board of Directors or
the Committee or set forth in the Restricted Stock Agreement.

                  5.2.2 Determination of Awards.

                           A. The  Administrator  may from time to time,  in its
         absolute discretion:

                                    (1)  Determine  which  Directors  are  to be
                  awarded Restricted Stock;

                                    (2)  Determine the purchase  price,  if any,
                  and  the  form  of  payment  of the  purchase  price  for  the
                  Restricted  Stock;  provided that such purchase price shall be
                  no less than par value;

                                    (3) Determine the period, if any, over which
                  the Restricted  Stockholder's interest in the Restricted Stock
                  shall vest; provided that such period shall not be longer than
                  five  (5)  years  and at  least  twenty  percent  (20%) of the
                  interest  shall  vest  on  each  anniversary  of the  date  of
                  issuance of the Restricted  Stock;  provided  further that the
                  Administrator  may provide in any Restricted  Stock  Agreement
                  that  the  Restricted  Stock  shall  be  fully  vested  on the
                  occurrence of a Change in Control; and

                                    (4)    Determine   the   other   terms   and
                  conditions, consistent with this Plan, applicable to the award
                  of the Restricted Stock.

                           B.  Upon the grant of  Restricted  Stock  award,  the
         Administrator shall instruct the Secretary of the Company to issue such
         Restricted Stock and may impose such conditions on the issuance of such
         Restricted Stock as it deems appropriate.

                  5.2.3  Other  Awards.  Restricted  Stock may be issued  either
alone,  in addition  to, or in tandem with other Awards  granted  under the Plan
and/or cash awards made outside of the Plan.

                  5.2.4  Restricted Stock  Agreements.  Each award of Restricted
Stock shall be evidenced by a written Restricted Stock Agreement.

         5.3 Performance  Awards.  The  Administrator  may designate whether any
grant of any Option or  Restricted  Stock is intended  to be  "performance-based
compensation"  as that term is used in Section  162(m) of the Code. Any grant of
an  Option  or  award  of  Restricted   Stock   designated  as  intended  to  be
"performance-based  compensation" shall be conditioned on the achievement of one
or more performance  measures  established by the  Administrator.  For grants of
Options  and  awards  of  Restricted  Stock  intended  to be  "performance-based
compensation," the grant of the Option or Restricted Stock and the establishment
of the  performance  measures  shall be made  during the period  required  under
Section 162(m) of the Code.

6.       TERMS OF OPTIONS

         6.1 Term of Option.  Subject to the  provisions of Section 6.3,  below,
the term of each Option shall be five (5) years from the date of grant thereof.

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         6.2 Exercise Price and Consideration.

                  6.2.1  Exercise  Price.  The exercise  price per share for the
shares to be issued upon  exercise of an Option shall be 100% of the Fair Market
Value per share of Common Stock on the date of grant of the Option.

                  6.2.2  Consideration.  The  consideration  to be paid  for the
shares to be issued upon exercise of an Option shall  consist  entirely of cash,
cashier's or bank certified check, or other shares of Common Stock having a Fair
Market Value on the date of exercise of the Option  equal to the exercise  price
for the shares as to which the Option is being exercised,  or any combination of
such methods of payment.  In the event that the exercise price is paid,  whether
in whole or in part,  through the tender of shares of Common Stock already owned
by the Optionee, then the Option must be exercised for a minimum of at least 100
shares or the total  number of shares  subject to the  Option,  if less than 100
shares.

        6.3      Exercise of Option.

                  6.3.1  Six-Month  Vesting  Period.  Any  Option  shall  become
exercisable  only after the  expiration of six (6) months  following the date of
grant of such Option.  Thereafter, the Option shall be fully vested and shall be
exercisable  in whole or in part at any time and from  time to time  during  the
term of the Option.

                  6.3.2  Acceleration on Change of Control.  Upon the occurrence
of a Change of Control,  all unexercised  Options then outstanding  shall be and
become immediately exercisable effective as the effective date of such Change of
Control.  The Company shall use its reasonable  efforts to promptly  notify each
Optionee upon the  occurrence of a Change of Control;  provided that neither the
Company nor any member of the Board of Directors or the Committee shall have any
liability  to any  Optionee  solely by reason  of any delay or  failure  to give
notice of the occurrence of a Change of Control.

                  6.3.3 Procedure for Exercise.  An Option shall be deemed to be
exercised when the Optionee has delivered to the Administrator written notice of
such exercise and full payment of the exercise price for the shares with respect
to which the  Option is being  exercised.  Full  payment  shall  consist of such
consideration  as is allowable  under Section 6.2,  above.  An Option may not be
granted or  exercised  for a fraction  of a share.  Exercise of an Option in any
manner shall result in a decrease in the number of shares which  thereafter  may
be  available,  both for the  purposes  of the Plan and for  issuance  under the
Option,  by the number of shares as to which the Option is  exercised.  Optionee
may designate in the notice of exercise that some or all of the shares of Common
Stock or other securities to be issued upon such exercise shall be issued in the
name of Optionee's  spouse,  the trustee of a revocable  trust in which Optionee
and his or her  spouse  are the sole  primary  beneficiaries,  Optionee's  prior
spouse, or any combination of the foregoing.  Notwithstanding anything herein to
the  contrary,  Optionee may not designate in the notice of exercise that any of
the shares of Common  Stock or other  securities  shall be issued to  Optionee's
prior spouse unless such issuance is to be made pursuant to a domestic relations
order  as  defined  in the  Code or Title I of the  Employee  Income  Retirement
Security Act, or the rules thereunder.  The Company may rely on a representation
of the Optionee,  or such other evidence as the Company deems  appropriate,  for
purposes of  determining  the  propriety  of the  exercise of any Option and the
compliance of such exercise with the terms of this Plan and any applicable Stock
Option  Agreement.  The  Company  shall  have  no  obligation  to  independently
investigate  the  propriety of the exercise of any Option or the  compliance  of
such  exercise  with  the  terms of this  Plan or any  applicable  Stock  Option
Agreement.

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                  6.3.4  Rights  as  a  Shareholder.   Until  the  issuance  (as
evidenced  by the  appropriate  entry on the books of the  Company  or of a duly
authorized  transfer agent of the Company) of the stock  certificate  evidencing
the shares of Common Stock,  the Optionee shall have no right to vote or receive
dividends  or any other  rights as a  shareholder  with  respect to the Optioned
Stock,  notwithstanding  the exercise of the Option. No adjustment shall be made
in the  exercise  price  payable on the  exercise of any Option or the number of
shares of Common Stock or other securities or property issuable upon exercise of
an Option for any  dividend,  distribution  or other  right for which the record
date is prior to the date the  stock  certificate  is issued  to  Optionee  with
respect to any  Optioned  Stock,  except as provided in Section 11.1 and Section
11.2, below.

                  6.3.5 Termination of Option.

                           A.   Termination   of  Status  as  Director.   If  an
         Optionee's continuous status as a Director is terminated other than for
         cause or by reason of the Optionee's death or disability,  the Optionee
         may,  but only within the three  (3)-month  period from the date of the
         termination of the Optionee's  status as a Director (but not later than
         the  expiration  of the term of the Option),  exercise any  outstanding
         Option  (including any Reload Option) to the extent that the Option was
         exercisable at the date of such  termination.  If the Optionee does not
         exercise the Option in full during such 3-month period, the unexercised
         portion  of the  Option  shall  terminate  at the  close  of  business,
         California  time, on the last  business day of such 3-month  period and
         thereafter   shall   not  be   exercisable   in   whole   or  in  part.
         Notwithstanding anything in this Section to the contrary, if the Option
         is not  exercisable  on the date of the  termination  of the Optionee's
         status as a Director,  then the Option shall  terminate  simultaneously
         with  the  termination  of the  Optionee's  status  as a  Director  and
         thereafter shall not be exercisable in whole or in part.

                           B.  Disability  of  Optionee.   Notwithstanding   the
         provisions  of Section  6.3.5.A,  above,  if an  Optionee's  continuous
         status as a Director is terminated other than for cause and as a result
         of the  Optionee's  death or  disability,  the  Optionee  or his or her
         estate or personal representative may exercise the Option to the extent
         that the  Option was  exercisable  at the date of such  termination  in
         whole or in part at any time and from time to time  during  the  twelve
         (12)-month  period from the date of the  termination  of the Optionee's
         status as a Director.  If the Optionee  does not exercise the Option in
         full during such 12-month period, the unexercised portion of the Option
         shall terminate at the close of business,  California time, on the last
         business  day of such  12-month  period  and  thereafter  shall  not be
         exercisable  in  whole  or in part.  Notwithstanding  anything  in this
         Section to the contrary,  if the Option is not  exercisable on the date
         of the  termination  of the Optionee's  status as a Director,  then the
         Option  shall  terminate  simultaneously  with the  termination  of the
         Optionee's status as a Director and thereafter shall not be exercisable
         in whole or in part.

                           C. Termination for Cause. If an Optionee's continuous
         status as a Director is terminated for cause,  all outstanding  Options
         held  by  the  Optionee  shall   terminate   simultaneously   with  the
         termination of the Optionee's status as a Director and thereafter shall
         not be  exercisable  in whole or in part. For purposes of this Section,
         an Optionee's status as a Director shall be deemed to be terminated for
         "cause" as of the date on which the  Optionee  is removed as a Director
         for any reason  described  in  Section  304 of the  California  General
         Corporation Law.

                           D.  Status  as a  Director.  The  termination  of  an
         Optionee's  status  as a  Director  shall  be  deemed  to  occur on the
         effective date of the earliest of (a) the  Optionee's  resignation as a
         Director,  (b) the removal of the  Optionee  as a Director,  or (c) the
         Optionee's death.

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         6.4 Reload Features.

                  6.4.1  Grant of  Reload  Options.  Whenever  the  holder of an
Option granted under this Plan  (including any Reload Options  granted under the
provisions  of this  Section 6.4 or Section 9, below)  (the  "Original  Option")
exercises the Original Option and pays the exercise price by tendering shares of
the Common Stock held by the Optionee, then the Company shall grant the Optionee
a new option (the "Reload Option") for that number of shares of the Common Stock
which is equal to the number of shares  tendered  by the  Optionee in payment of
the exercise price for the Original Option. All Reload Options granted hereunder
shall be on the following terms and conditions.

                           A. Exercise Price. The exercise price per share shall
         be an amount  equal to the Fair  Market  Value per share of the  Common
         Stock as of the date of exercise of the Original Option.

                           B.  Expiration  Date.  The term of the Reload  Option
         shall  begin as of the date of  exercise  of the  Original  Option and,
         unless  terminated  sooner  pursuant  to the  terms of this Plan or the
         Stock Option Agreement, shall terminate five (5) years thereafter.

                           C.  Vesting  Period.  Any Reload  Option shall become
         exercisable  one (1) year  following  the date of grant of such  Reload
         Option. Thereafter the Reload Option shall be fully vested and shall be
         exercisable  in whole  or in part at any  time  and  from  time to time
         during the term of the Reload Option.

                           D. Other  Terms.  All other  terms of Reload  Options
         granted hereunder shall be identical to the terms and conditions of the
         Original  Option,  the exercise of which gives rise to the grant of the
         Reload Option.

                  6.4.2  Restrictions  on  Reload  Options.  Any and all  Reload
Options  granted  pursuant to this  Section  6.4 (or Section 9, below)  shall be
subject to the following conditions and restrictions.

                           A.  Holding  Period  of  Shares  Tendered.  No Reload
         Option shall be granted  pursuant to Section 6.4.1,  above,  unless the
         shares of Common Stock tendered upon exercise of the Original Option in
         payment  therefore  have been held by the Optionee for a period of more
         than six (6) months prior to the exercise of the Original  Option.  The
         Company may rely on a  representation  of the  Optionee,  or such other
         evidence as the Company deems appropriate,  for purposes of determining
         the holding  period of any shares  surrendered on exercise of an Option
         and the compliance of such exercise with the terms of this Plan and any
         applicable Stock Option Agreement. The Company shall have no obligation
         to independently investigate the holding period or the propriety of the
         exercise  of any Option or the  compliance  of such  exercise  with the
         terms of this Plan or any applicable Stock Option Agreement.

                           B. Holding Period of Original  Option Shares.  If any
         of the shares of Common  Stock of the  Company  which are  issued  upon
         exercise of the Original  Option are sold within one (1) year following
         the  exercise of the  Original  Option,  then the Reload  Option  shall
         immediately terminate.

                                        9

<PAGE>

                           C.  Exception.  The holding period  restrictions  set
         forth in Sections  6.4.2.A and  6.4.2.B,  above,  shall not apply to an
         Optionee's  transfer  of shares of Common  Stock (i) to the  Company in
         payment of all or any portion of the exercise price upon exercise of an
         Option,  whether  an  Original  Option or a Reload  Option,  or (ii) in
         satisfaction of the Optionee's  income tax withholding  obligation,  if
         any,  by the  transfer  of shares to the  Company  or by the  Company's
         withholding of shares that would otherwise be issued as a result of the
         exercise  of an  Option,  or  (iii)  to  the  acquiring  party  in  any
         transaction  described in Section 11.2,  below, in which the Company is
         not the  surviving  corporation,  or (iv) to any  person  described  in
         Section 6.5.2.A hereof so long as the transfer satisfies the conditions
         of Section 6.5.2 hereof.

        6.5      Transferability of Options.

                  6.5.1  Restriction  on Transfer.  Except as  specifically  set
forth in Section 6.5.2 hereof, no Option or Reload Option may be sold,  pledged,
assigned,  hypothecated,  transferred,  or otherwise  disposed of in any manner,
other than by will or the laws of descent and distribution.

                  6.5.2 Limited  Transferability.  A Stock Option  Agreement may
provide that an Optionee may transfer all or any portion of any Option or Reload
Option in  accordance  with the  provisions  of this Section  6.5.2.  If a Stock
Option  Agreement  permits  the  transfer  of any Option or Reload  Option,  any
transfer  that does not comply with all of the  provisions of this Section 6.5.2
and the Stock Option Agreement shall be null and void ab initio.  The provisions
of the Stock Option Agreements  dealing with the  transferability of the Options
need not be identical for all Options and the provision for transferability with
respect to one Option shall not require the provision for  transferability  with
respect to any other Option.

                           A. Permitted Transferees.  An Option or Reload Option
         may be  transferred  or assigned by the Optionee only to one or more of
         the  following:   (a)  the  Optionee's   spouse,   parents  and  lineal
         descendants,   including   adopted  children  (the  "Immediate   Family
         Members");  (b) a trust established by the Optionee and with respect to
         which all beneficial interests are held by one or more of the Optionee,
         the Immediate Family Members, and a tax-exempt charitable  organization
         which has only a  contingent  residual  interest  in the  trust;  (c) a
         partnership or limited  liability  company  established by the Optionee
         and in which all  beneficial  interests  are held by one or more of the
         Optionee  and  the   Immediate   Family   Members;   (d)  a  tax-exempt
         educational,  religious or charitable organization,  as those terms are
         defined in Section  501(c)(3) of the Code;  and (e) such other  persons
         and entities as the Company may  specifically  approve in writing after
         written  notice  from  the  Optionee.  The  Company  may  require  as a
         condition  to the  transfer of any Option or Reload  Option  under this
         Section that the transferee provide to the Company reasonable  evidence
         that the  proposed  transferee  is  described  in one of the  foregoing
         clauses.

                           B. Permitted Transfers.  Any transfer of an Option or
         Reload  Option  under  this  Section  6.5.2  must be either a  Donative
         Transfer,  a transfer to a  partnership  or limited  liability  company
         described  in  clause  (c) of  Section  6.5.2.A  above,  or a  transfer
         specifically  approved in writing by the Company after  written  notice
         from the Optionee.

                           C. Minimum  Transfer.  Any transfer of an Option or a
         Reload  Option must be with respect to not less than one hundred  (100)
         shares of Optioned Stock and may be made only in whole number multiples
         of one hundred (100) shares of Optioned Stock.

                           D. Notice to the Company. The Optionee shall give the
         Company at least ten (10) days  prior  written  notice of any  proposed
         transfer of an Option or Reload Option pursuant to this Section 6.5.2.A
         and shall include with such notice:

                                       10

<PAGE>

                                    (1) The name  and  address  of the  proposed
                  transferee  and a statement of the basis on which the proposed
                  transferee is a permitted  transferee  under  Section  6.5.2.A
                  hereof; and

                                    (2)  The   proposed   transferee's   written
                  agreement to accept the  transferred  Option or Reload  Option
                  and any shares of Common  Stock  acquired  on  exercise of the
                  Option  or  Reload  Option  subject  to all of the  terms  and
                  conditions  of this  Plan  and  the  applicable  Stock  Option
                  Agreement,   including   the   provisions   dealing  with  the
                  termination  of the  Option or  Reload  Option on the death or
                  disability  of  the  Optionee  or  the   termination   of  the
                  Optionee's status as a Director of the Company.

                           E. No Further Transfer.  Notwithstanding  anything in
         this Plan or any Stock Option  Agreement to the contrary,  a transferee
         of any  Option or  Reload  Option  shall not have the right to  further
         transfer all or any portion of the transferred  Option,  other than (a)
         by will  or the  laws  of  descent  and  distribution,  or (b),  if the
         transferee is a trust,  pursuant to the terms of the trust agreement by
         reason of the death of any settlor.

                           F.  Further  Acts.  The  Company  may  require  as  a
         condition  to  the  transfer  of  any  Option  or  Reload  Option  such
         additional  information  and  agreements  from  the  Optionee  and  the
         proposed transferee as the Company may deem necessary or beneficial for
         purposes of complying  with this Section or any  applicable  federal or
         state law, rule or regulation.

                           G.  Disclaimer.   The  Company's  acceptance  of  any
         transfer of an Option or Reload Option shall not be considered legal or
         tax  advice to the  Optionee  or the  proposed  transferee  as to their
         compliance  with any applicable law, rule or regulation or the legal or
         tax  consequences  of such transfer or the  subsequent  exercise of the
         transferred  Option  or the sale or  exchange  of any of the  shares of
         Common Stock acquired on exercise of the transferred Option.

7.       TERMS OF RESTRICTED STOCK GRANTS

         7.1  Continued  Services.  As  consideration  for the  issuance  of the
Restricted  Stock, in addition to payment of any purchase price,  the Restricted
Stockholder shall agree to continue as a Director of the Company for a period of
at  least  one  (1)  year  (or  such  shorter  period  as  may be  fixed  by the
Administrator) after the Restricted Stock is issued.  Nothing in this Plan or in
any Restricted  Stock Agreement  shall confer on any Restricted  Stockholder any
right to continue as a Director of the Company for any period or any  particular
period or shall  interfere with or restrict in any way the rights of the Company
to terminate the Restricted  Stockholder's  status as a Director at any time for
any reason whatsoever, with or without cause.

         7.2 Rights as  Stockholders.  Upon delivery of the shares of Restricted
Stock to the  Restricted  Stockholder,  the Restricted  Stockholder  shall have,
unless otherwise provided by the Administrator,  all the rights of a stockholder
with respect to said shares, subject to the restrictions in the Restricted Stock
Agreement,  including the right to receive all dividends and other distributions
paid or made with respect to the Restricted Stock.

         7.3 Restriction on Transfer.  Notwithstanding  anything in this Plan or
any Restricted  Stock Agreement to the contrary,  no Restricted  Stockholder may
sell or  otherwise  transfer,  whether or not for value,  any of the  Restricted
Stock  prior to six (6)  months  after the date of the  award of the  Restricted
Stock.

                                       11

<PAGE>

         7.4 Restriction.  All shares of Restricted Stock issued under this Plan
(including any shares of Common Stock and other  securities  issued with respect
to the shares of Restricted Stock as a result of stock  dividends,  stock splits
or similar changes in the capital  structure of the Company) shall be subject to
such restrictions as the  Administrator  shall provide,  which  restrictions may
include,   without   limitation,    restrictions   concerning   voting   rights,
transferability   of  the  Restricted  Stock  and  restrictions   based  on  the
continuation  of  the  Restricted  Stockholder's  status  as a  Director  of the
Company, and the Company's or the Restricted Stockholder's performance; provided
that the Administrator  may, on such terms and conditions as it may determine to
be appropriate, remove any or all of such restrictions at any time and from time
to time.  The  restrictions,  if any,  imposed by the  Administrator  under this
Section need not be identical for all Restricted Stock and the imposition of any
restrictions  with  respect  to any  Restricted  Stock  shall  not  require  the
imposition  of the same or any  other  restrictions  with  respect  to any other
Restricted Stock.

         7.5 Repurchase of Unvested  Restricted  Stock.  Each  Restricted  Stock
Agreement shall provide that the Company shall have the right to repurchase from
the Restricted  Stockholder the unvested  Restricted Stock upon a termination of
the Restricted Stockholder's status as a Director of the Company at a cash price
per share equal to the purchase  price paid by the  Restricted  Stockholder  for
such Restricted Stock; provided that provision may be made that no such right of
repurchase  shall  exist in the  event of such a  termination  without  cause or
following a Change In Control.

         7.6  Repurchase of Vested  Restricted  Stock.  In the discretion of the
Administrator, the Restricted Stock Agreement may provide that the Company shall
have the right to repurchase the vested  Restricted  Stock upon a termination of
the Restricted Stockholder's status as a Director of the Company at a cash price
per share equal to the then Fair Market Value of the Common Stock; provided that
provision may be made that no such right of repurchase  shall exist in the event
of such a termination without cause or following a Change In Control.

         7.7  Legend.  The  Administrator  shall cause a legend or legends to be
placed on certificates  representing shares of Restricted Stock that are subject
to restrictions under Restricted Stock Agreements, which legend or legends shall
make appropriate reference to the applicable restrictions.

8.       CONDITIONS UPON ISSUANCE OF SHARES

         8.1  Compliance  with Law.  Shares of Common  Stock shall not be issued
pursuant to the exercise of an Option unless the exercise of such Option and the
issuance  and  delivery of such shares  pursuant  thereto  shall comply with all
relevant provisions of law, including, without limitation, the Securities Act of
1933,  as amended,  the  Exchange  Act,  the rules and  regulations  promulgated
thereunder, and the requirements of any stock exchange upon which the shares may
then be listed,  and shall be further subject to the approval of counsel for the
Company with respect to such compliance.

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

         8.3 Governmental Consents. Inability of the Company to obtain authority
from any regulatory body having  jurisdiction,  which authority is deemed by the
Company's  counsel to be necessary to the lawful issuance and sale of any shares
of Common Stock hereunder, shall relieve the Company of any liability in respect
of the failure to issue or sell, or any delay in issuing or selling, such shares
as to which such requisite shall not have been obtained.

                                       12

<PAGE>

9.       TAX WITHHOLDING

         To the extent  that the  exercise of any Option  (including  any Reload
Option) granted hereunder gives rise to an income tax withholding  obligation on
the part of the Company  with respect to the  Optionee,  the Company may satisfy
such obligation on such terms and in accordance with such procedures as it deems
appropriate  under  applicable  law.  At  the  election  of the  Optionee,  such
withholding  obligation  may be satisfied  through the  Optionee's  surrender of
shares of Common Stock owned by the Optionee or through the Company's  retention
of shares of the Common Stock which would otherwise be issued as a result of the
exercise of the Option.  If withholding  is made in shares of Common Stock,  the
Company shall grant to the Optionee a Reload Option,  on the terms  specified in
Section 6.4 hereof for the number of shares so withheld.

10.      ADMINISTRATION

         10.1  Procedure.  The  Plan  shall  be  administered  by the  Board  of
Directors or the Committee. The Committee shall consist of not less than two (2)
Directors all of whom shall be Non-Employee  Directors of the Company within the
meaning  of  Rule  16b-3.  Once  appointed,  the  Committee  shall  continue  to
administer  the Plan until  otherwise  directed by the Board of  Directors.  The
Board of  Directors  may  increase  the size of the  Committee  and may  appoint
additional  members,  remove  members (with or without cause) and substitute new
members,  fill  vacancies  (however  caused),  and  remove  all  members  of the
Committee  and  thereafter  directly  administer  the  Plan,  all to the  extent
permitted  by  Applicable  Law.  No  member  of the  Board of  Directors  or the
Committee shall be liable for any action or determination  undertaken or made in
good faith with respect to the Plan or any  agreement  executed  pursuant to the
Plan. Subject to the terms of this Plan, the Board of Directors or the Committee
shall determine:

         10.2  Powers of the  Administrator.  Subject to the  provisions  of the
Plan, the Administrator shall have the authority, in its discretion, to:

                  10.2.1 Select the Directors to whom Options,  Restricted Stock
and other Awards may be granted or awarded hereunder;

                  10.2.2   Determine   whether  and  to  what  extent   Options,
Restricted Stock and other Awards are granted or awarded hereunder;

                  10.2.3  Determine  the number of shares of Common  Stock to be
covered  by  Options,  Restricted  Stock and other  Awards  granted  or  awarded
hereunder;

                  10.2.4  Determine the Fair Market Value of the Common Stock in
accordance with Section 2.16 hereof;

                  10.2.5  Approve  forms  of  the  Option   Agreements  and  the
Restricted Stock Agreements, which Agreements need not be identical;

                  10.2.6  Determine the terms and conditions,  not  inconsistent
with the terms of this Plan, of any award granted hereunder,  including, but not
limited to, the exercise  price,  the time or times when  Options or  Restricted
Stock may be  exercised  or become  vested  (which  may be based on  performance
criteria),  any vesting acceleration or waiver of forfeiture  restrictions,  and
any  restriction or limitation  regarding any Option or Restricted  Stock or the
shares of Common Stock relating  thereto,  based in each case on such factors as
the Administrator, in its sole discretion, shall determine;

                                       13

<PAGE>

                  10.2.7 Construe and interpret the terms of the Plan and awards
granted under the Plan;

                  10.2.8  Prescribe,  amend and  rescind  rules and  regulations
relating to the Plan;

                  10.2.9 Modify or amend each Option or Restricted Stock;

                  10.2.10  Authorize  any  person  to  execute  on behalf of the
Company any instrument required to effect the grant of an Option or the award of
Restricted Stock previously authorized by the Administrator;

                  10.2.11  Determine  the terms and  restrictions  applicable to
Options and any Restricted Stock; and

                  10.2.12  Make all other  determinations  deemed  necessary  or
advisable for administering the Plan.

         10.3 Committee  Procedure.  If the Committee acts as the Administrator,
the  Administrator  shall  act  pursuant  to the vote or  written  consent  of a
majority of its  members,  and minutes  shall be kept of all of its meetings and
copies  thereof  shall be  provided  to the Board of  Directors.  Subject to the
provisions  of the Plan  and the  directions  of the  Board  of  Directors,  the
Committee  may  establish  and follow such other rules and  regulations  for the
conduct of its business as it may deem advisable.

         10.4  Professional  Assistance;  Good Faith Actions.  The Administrator
may, with the approval of the Board of Directors,  employ and rely on the advice
of attorneys, consultants,  accountants,  appraisers, brokers, or other persons.
All  actions  taken  and  all  interpretations  and  determinations  made by the
Administrator  in good  faith  shall be final and  binding  upon all  Optionees,
Restricted Stockholders, the Company and all other interested persons. No member
of the Administrator or the Board of Directors or any officer, employee or agent
of the  Company  shall be  personally  liable for any action,  determination  or
interpretation  made by the  Administrator  in good faith  with  respect to this
Plan, any Options or Restricted Stock granted or awarded under this Plan, or any
Option Agreement or Restricted Stock Agreement.

         10.5   Indemnification.   In   addition   to  any   other   rights   of
indemnification  they  may  have,  the  Administrator  and  the  members  of the
Administrator  shall be indemnified by the Company against reasonable  expenses,
including attorneys' fees and costs,  incurred in connection with the defense of
any  claim,  action,  suit,  or  proceeding,  or in  connection  with any appeal
thereof,  to which  they or any of them may be a party by reason  of any  action
taken or  failure  to act under or in  connection  with the Plan,  any Option or
Restricted  Stock  granted or awarded  thereunder,  or any Option  Agreement  or
Restricted Stock  Agreement,  and against all amounts paid by them in settlement
thereof  (provided  such  settlement  is approved by  independent  legal counsel
selected by the  Company) or paid by them in  satisfaction  of a judgment in any
action, suit, or proceeding;  provided that the foregoing  indemnification shall
not apply to matters as to which it shall be adjudged in such action,  suit,  or
proceeding that the  Administrator or such member is liable for gross negligence
or  willful   misconduct  in  the   performance  of  his  or  her  duties.   The
indemnification  provided in this  Section  shall be available  only if,  within
sixty  (60)  days  after  institution  of  any  such  claim,  action,  suit,  or
proceeding,  the  Administrator  or the member thereof  seeking  indemnification
shall in writing  offer the  Company the  opportunity,  at its own  expense,  to
handle and defend such claim, action, suit or proceeding.

                                       14

<PAGE>

11.      ADJUSTMENT OF SHARES

         11.1  Recapitalization  of the Company.  Except as  otherwise  provided
herein,  appropriate and  proportionate  adjustments shall be made in the number
and class of shares  subject to the Plan and to the  Options  granted  under the
Plan, and the exercise  price of such Options,  in the event of a stock dividend
(but only on Common Stock), stock split, reverse stock split,  recapitalization,
reorganization  or like change in the capital  structure of the Company.  To the
extent  that the  foregoing  adjustments  relate to stock or  securities  of the
Company,  such adjustments shall be made by the Committee,  the determination of
which in that respect shall be final, binding, and conclusive.

         11.2 Reorganization or Liquidation of the Company.

                  11.2.1  Operative  Events.  In the  event of (a) the  complete
liquidation of the Company, or (b) a merger, reorganization, or consolidation of
the Company with any other corporation  (other than a Subsidiary of the Company)
in which the Company is not the surviving  corporation or the Company becomes an
eighty percent (80%) or more owned subsidiary of another corporation, or (c) any
sale  of all or  substantially  all of the  Company's  assets,  any  unexercised
Options  then  outstanding  under the Plan  shall be deemed  canceled  as of the
effective date of any such liquidation, merger, reorganization, consolidation or
sale,  unless the surviving  corporation in any such merger,  reorganization  or
consolidation or the acquiring corporation in any such sale elects to assume the
Options under the Plan or to issue substitute options in place thereof; provided
that, if any Options granted under the Plan would be canceled in accordance with
the foregoing,  the Optionee shall have the right,  exercisable  during a 10-day
period ending on the fifth day prior to the effective date of such  liquidation,
merger, reorganization,  consolidation or sale, to exercise the Options in whole
or  in  part  even  though  the  Option  otherwise  was  not  then  exercisable.
Notwithstanding  anything  in this Plan or any  Stock  Option  Agreement  to the
contrary,  the Company shall not be deemed to have been  liquidated by reason of
the merger or  consolidation  of the Company  with or into a  Subsidiary  of the
Company in a transaction in which the Company is not the surviving corporation.

                  11.2.2  Notice of Event.  The Company shall give each Optionee
at least thirty (30) days' prior  written  notice of the  anticipated  effective
date of any such  liquidation,  merger,  reorganization,  consolidation or sale.
Notwithstanding  anything in this Plan or in any Stock  Option  Agreement to the
contrary,  (i) all Option exercises  effected during the foregoing 10-day period
shall  be  deemed  to be  effective  immediately  prior to the  closing  of such
liquidation,  merger,  reorganization,  consolidation  or sale  and  (ii) if the
Company  abandons  or  otherwise  fails to close any such  liquidation,  merger,
reorganization,  consolidation  or  sale,  then  (A) all  exercises  during  the
foregoing  10-day  period  shall  cease to be  effective  ab initio  and (B) the
outstanding  Options  shall be  exercisable  as otherwise  determined  under the
applicable  Stock Option  Agreements and without  consideration  of this Section
11.2.2 or the corresponding provisions of any Stock Option Agreement.

12.      TERM; TERMINATION; AND AMENDMENT OF PLAN

         12.1 Term of Plan. This Plan has been adopted by the Board of Directors
as of February  27,  1996.  The term of the Plan shall begin as of February  27,
1996, and shall continue until December 31, 2005,  unless  terminated  sooner in
accordance with the provisions of the Plan.

                                       15

<PAGE>

         12.2 Amendment And Termination Of The Plan

                  12.2.1 Amendment and  Termination.  The Board of Directors may
at any time amend, alter, suspend or terminate the Plan.

                  12.2.2   Stockholder   Approval.   The  Company  shall  obtain
stockholder  approval of any Plan  amendment  to the extent  necessary to comply
with  Applicable  Law,  including the  requirements of any exchange or quotation
system on which the Common Stock is listed or quoted. Such stockholder approval,
if  required,  shall be  obtained  in such a manner  and to such a degree  as is
required by the Applicable Law.

                  12.2.3  Effect of  Amendment  or  Termination.  No  amendment,
alteration, suspension or termination of the Plan shall impair the rights of any
Optionee or Restricted Stockholder, unless mutually agreed otherwise between the
Optionee or the Restricted  Stockholder and the  Administrator,  which agreement
must be in writing and signed by the Optionee or the Restricted  Stockholder and
the Company.

        12.3     Effect Of Amendments

                  12.3.1  Amendment  of  Options.  From and after the  Effective
Date, the date of this Amended Plan, all of the terms and provisions of the Plan
as amended shall apply to all Options which are  outstanding as of such date and
the Stock Option Agreements covering such Options shall be deemed  automatically
amended to reflect the amended terms of this Plan.

                  12.3.2 No Change in Price or Term. Notwithstanding anything in
this Plan to the  contrary,  in no event shall the amendment of any Stock Option
Agreement in accordance with the provisions of this Section change any or all of
the  number of shares  covered  by any  Option or the  exercise  price,  vesting
schedule or term of the Option.

                  12.3.3 Amended Stock Option Agreements. Any Optionee who holds
an Option that is deemed  amended  under this Section may at any time deliver to
the Company his or her  existing  Stock  Option  Agreement  and request that the
Company deliver to the Optionee a new Stock Option Agreement  incorporating  the
amended and restated terms and provisions of the Plan. The Company shall deliver
to the  Optionee a new Stock  Option  Agreement  promptly  after the  Optionee's
delivery of the existing  Stock Option  Agreement.  NOTWITHSTANDING  ANYTHING IN
THIS  PLAN TO THE  CONTRARY,  THE  OPTIONEE  SHALL  BE  SOLELY  RESPONSIBLE  FOR
DETERMINING  WHETHER THE AMENDMENT OF A STOCK OPTION AGREEMENT WILL CONSTITUTE A
MODIFICATION  OF THE OPTION AND THE  COMPANY  SHALL  HAVE NO  RESPONSIBILITY  OR
LIABILITY TO THE OPTIONEE BY REASON OF THE AMENDMENT OF A STOCK OPTION AGREEMENT
BEING A MODIFICATION OF THE OPTION.

                                       16

<PAGE>

                            CERTIFICATE OF SECRETARY

             The undersigned, being the Corporate Secretary of the Company, does
hereby certify that the Amended and Restated  Directors  Stock Plan effective as
of February 22, 2000,  was adopted by the Board of Directors of the Company at a
duly called and held meeting of the Board of Directors on February 22, 2000, and
was duly  approved by the  stockholders  of the  Company  duly held on April 25,
2000.

Dated: August 9, 2000

                                        ----------------------------------------
                                        Jay D. Smith, Esq., Corporate Secretary

                                       17Exhibit 10.1

                             MODIFICATION AGREEMENT

    THIS  MODIFICATION  AGREEMENT  ("AGREEMENT")  is made as of the  11th day of
August, 2000, by and among ACCOM, INC., a Delaware corporation ("BORROWER"); THE
PROVIDENT BANK, an Ohio banking institution ("LENDER"); and ACCOM INTERNATIONAL,
INC., ACCOM EUROPE,  LTD., ACCOM ASIA- PACIFIC,  and ACCOM VIRTUAL STUDIO,  INC.
(collectively,  "GUARANTORS").  Hereafter,  the BORROWER and the  GUARANTORS are
collectively referred to as the "OBLIGORS."

RECITALS

    The LENDER has  extended a  revolving  line of credit to the  BORROWER.  The
GUARANTORS  have  guaranteed to the LENDER the repayment and  performance by the
BORROWER of such credit accommodation.

    The OBLIGORS have  requested  that the LENDER agree to modify certain of the
terms and conditions governing the credit accommodations.  The LENDER has agreed
to the requested  modifications  in accordance with the terms of this AGREEMENT.
The parties have entered into this AGREEMENT to accomplish such modifications.

    NOW,  THEREFORE,  in  consideration  of the  premises,  and  other  good and
valuable   consideration,   the  receipt  and   adequacy  of  which  are  hereby
acknowledged, the parties hereby agree as follows:

AGREEMENT

    Section 1. Definitions. As used in this AGREEMENT, the terms set forth below
shall have the  meanings  set forth  below.  Terms  defined  in this  Section or
elsewhere in this AGREEMENT are in all capital letters.  The singular use of any
defined term includes the plural, and the plural use includes the singular.  All
terms defined in the "LOAN  AGREEMENT" (as such term is defined below) which are
not defined  herein  shall have the same  meaning in this  AGREEMENT as given to
them in the LOAN AGREEMENT.

         Section 1.1. Guaranty. The term "GUARANTY" means collectively:  (a) the
Guaranty  Agreement  dated  February 10, 2000  executed by Accom  International,
Inc.;  (b) the Guaranty  Agreement  dated  February  10, 2000  executed by Accom
Europe,  Ltd.;  (c) the Guaranty  Agreement  dated February 10, 2000 executed by
Accom Asia-  Pacific;  and (d) the Guaranty  Agreement  dated  February 10, 2000
executed by Accom Virtual Studio, Inc.

<PAGE>

         Section  1.2.  Laws.  The term "LAWS" means all  ordinances,  statutes,
rules, regulations,  orders,  injunctions,  writs or decrees of any governmental
authority.

         Section 1.3. Loan Agreement.  The term "LOAN  AGREEMENT" means the Loan
And Security Agreement by and between the BORROWER and the LENDER dated February
10, 2000.

         Section  1.4.  Loan  Documents.   The  term  "LOAN   DOCUMENTS"   means
collectively the LOAN AGREEMENT, NOTE, GUARANTY, and all agreements, instruments
and documents,  security  agreements,  subordination  agreements,  intercreditor
agreements,  pledges,  affidavits,  powers of attorney,  consents,  assignments,
landlord and mortgage waivers, opinions,  collateral assignments,  reimbursement
agreements,  contracts,  notices, leases, financing statements,  pledges and all
other written  matter,  whether  heretofore,  now or hereafter  executed,  which
evidence or secure the LOAN.

         Section 1.5.  Loan.  The term "LOAN" means the revolving line of credit
facility  being  provided  by the LENDER to the  BORROWER  pursuant  to the LOAN
AGREEMENT.

         Section 1.6. Note. The term "NOTE" means the Revolving Loan  Promissory
Note dated February 10, 2000 from the BORROWER, as maker thereof, and payable to
the order of the LENDER in the stated  principal  amount of Two Million  Dollars
($2,000,000.00).

    Section 2. Acknowledgment Of Obligations. The OBLIGORS acknowledge that: (a)
each of the LOAN  DOCUMENTS is the valid and binding  obligation  of each of the
OBLIGORS that is a signatory thereto;  (b) the LOAN DOCUMENTS are enforceable in
accordance with all stated terms; and (c) the OBLIGORS have no defenses,  claims
of offset,  or  counterclaims  against the  enforcement of the LOAN DOCUMENTS in
accordance with all stated terms.

    Section 3. Amendment and Modification of Loan Agreement.  The LOAN AGREEMENT
is hereby amended and modified as follows:

         a. Section 1.17.  Section 1.17 of the LOAN  AGREEMENT is hereby amended
by  deleting  its present  language in its  entirety  and  substituting  in lieu
thereof the following:

            Section 1.17. Dollar Cap. The term "DOLLAR CAP" shall mean
         the  sum  of  One  Million  Five  Hundred   Thousand  Dollars
         ($1,500,000.00).

         b. Section 2.1.6. Section 2.1.6 of the LOAN AGREEMENT is hereby amended
by  deleting  its present  language in its  entirety  and  substituting  in lieu
thereof the following:

<PAGE>

            Section  2.1.6.  Term.  All  sums  outstanding  under  the
         REVOLVING LOAN shall be paid in full on June 30, 2001.

         c. Section 5.18.  Section 5.18 of the LOAN  AGREEMENT is hereby amended
by  deleting  its present  language in its  entirety  and  substituting  in lieu
thereof the following:

            Section  5.18.  Tangible  Net Worth.  The  BORROWER  shall
         maintain  a  TANGIBLE  NET  WORTH of not less  than:  (a) Two
         Million  Seventy-Six  Thousand Dollars  ($2,076,000.00) as of
         September 30, 2000; (b) One Million Seven Hundred  Eighty-Six
         Thousand Dollars ($1,786,000.00) as of December 31, 2000; and
         (c) One Million Eight Hundred Thousand Dollars as of the last
         day of each calendar quarter ending after December 31, 2000.

         d. Section 5.19.  Section 5.19 of the LOAN  AGREEMENT is hereby amended
by  deleting  its present  language in its  entirety  and  substituting  in lieu
thereof the following:

            Section 5.19. EBITDA. The BORROWER shall have an EBITDA of
         not less than: (a) Four Hundred  Sixty-One  Thousand  Dollars
         ($461,000.00)  for the six (6) month  period  ending June 30,
         2000;  (b) negative One Hundred  Forty-One  Thousand  Dollars
         (-$141,000.00) for the seven (7) month period ending July 31,
         2000; (c) negative Two Hundred  Sixty-Three  Thousand Dollars
         (-$263,000.00)  for the eight (8) month period  ending August
         31,  2000;  (d)  One  Hundred  Sixty-Eight  Thousand  Dollars
         ($168,000.00)  for the nine (9) month period ending September
         30,  2000;  (e)  negative  One Hundred  Ninety-Five  Thousand
         Dollars  (-$195,000.00)  for the ten (10) month period ending
         October  31,  2000;  (f)  negative  Two  Hundred  Forty-Eight
         Thousand  Dollars  (-$248,000.00)  for the eleven  (11) month
         period ending November 30, 2000; (g) Two Hundred  Twenty-Nine
         Thousand  Dollars  ($229,000.00)  for the  twelve  (12) month
         period  ending  December 31, 2000;  (i) One Hundred  Thousand
         Dollars  ($100,000.00)  for the one (1) month  period  ending
         January  31,   2001;   (j)  Two  Hundred   Thousand   Dollars
         ($200,000.00)  for the two (2) month period  ending  February
         28, 2001; (k) Three Hundred  Thousand  Dollars  ($300,000.00)
         for the three (3) month period  ending  March 31,  2001;  (l)
         Four Hundred Thousand Dollars  ($400,000.00) for the four (4)
         month period ending April 30, 2001; (m) Five Hundred Thousand
         Dollars  ($500,000.00)  for the five (5) month period  ending
         May  31,  2001;   and  (n)  Six  Hundred   Thousand   Dollars
         ($600,000.00)  for the six (6) month  period  ending June 30,
         2001.

<PAGE>

         e. Section 5.20.  Section 5.20 of the LOAN  AGREEMENT is hereby amended
by  deleting  its present  language in its  entirety  and  substituting  in lieu
thereof the following:

            Section 5.20.  Interest Coverage Ratio. The BORROWER shall
         maintain an  INTEREST  COVERAGE  RATIO of not less than:  (a)
         0.60 to 1.0 for the nine (9) month  period  ending  September
         30,  2000;  (b) 0.60 to 1.0 for the twelve (12) month  period
         ending  December  31,  2000;  (c) 1.0 to 1.0  for the  fiscal
         quarter ending December 31, 2000; and (d) 1.0 to 1.0 for each
         fiscal quarter ending after December 31, 2000.

         f. Section 6.15.  Section 6.15 of the LOAN  AGREEMENT is hereby amended
by  deleting  its present  language in its  entirety  and  substituting  in lieu
thereof the following:

            Section 6.15. Capital Expenditures. The BORROWER shall not
         make any CAPITAL  EXPENDITURES  in excess of: (a) Two Hundred
         Fifty Thousand Dollars  ($250,000.00) in the aggregate during
         the nine (9) month period ending September 30, 2000; (b) Four
         Hundred Fifty Thousand Dollars ($450,000.00) in the aggregate
         during the twelve (12) month period ending December 31, 2000;
         (c)  One  Hundred  Thousand  Dollars   ($100,000.00)  in  the
         aggregate  during the three (3) month period ending March 31,
         2001; and (d) Two Hundred Thousand  Dollars  ($200,000.00) in
         the aggregate during the six (6) month period ending June 30,
         2001.

    Section 4.  Amendment And  Modification  Of Note. The NOTE is hereby amended
and modified as follows:

         a. Interest Rate.  Paragraph  number 1 of the NOTE,  which paragraph is
entitled  "Interest Rate" is hereby amended by deleting the words and percentage
"One and One-Quarter percent (1.25%)" and substituting in lieu thereof the words
and percentage "two and one-quarter percent (2.25%)".

         b. Maturity Date.  Paragraph  number 3 of the NOTE,  which paragraph is
entitled  "Repayment" is hereby amended by deleting the date "March 1, 2003" and
substituting in lieu thereof the date "June 30, 2001."

    Section 5.  Amendment  Fee.  In  consideration  of the  LENDER'S  agreements
contained  herein,  the  BORROWER  shall  pay to the  LENDER on the date of this
AGREEMENT a fee in the amount of Ten Thousand Dollars ($10,000.00). The BORROWER
hereby  irrevocably  authorizes  the LENDER to make an advance under the LOAN to
make payment of such fee.

    Section 6. Obligors' Representations And Warranties. As an inducement to the
LENDER to enter into this  AGREEMENT,  each of the OBLIGORS  makes the

<PAGE>

following  representations  and  warranties to the LENDER and  acknowledges  the
LENDER'S justifiable reliance thereon:

         Section 6.1 Authority  And Good  Standing.  Each  OBLIGOR:  (a) has the
power to enter into this AGREEMENT and any related  documents and to perform all
of its obligations  hereunder and thereunder;  (b) has duly authorized the entry
into and performance of this AGREEMENT and all related documents;  and (c) is in
good standing in the jurisdiction of its organization.

         Section 6.2  Violations.  The execution,  delivery,  and performance of
this  AGREEMENT  by each OBLIGOR  will not  immediately,  or with the passage of
time, the giving of notice, or both: (a) violate any LAWS or result in a default
under any contract,  agreement, or instrument to which any OBLIGOR is a party or
by which any OBLIGOR or any  properties of any OBLIGOR are bound;  or (b) result
in  the  creation  or  imposition  of any  security  interest  in,  or  lien  or
encumbrance  upon,  any of the  assets  of any  OBLIGOR,  except in favor of the
LENDER.

         Section 6.3 Litigation. There are no outstanding judgments or tax liens
against  any  OBLIGOR,  and  there  are no  actions,  suits,  investigations  or
proceedings  pending  against  any  OBLIGOR  or  against  any of the  collateral
securing the LOAN.

         Section 6.4 Liens. The LENDER holds first lien priority perfected liens
and  security  interests in and to the assets of the BORROWER as required by the
terms and conditions of the LOAN DOCUMENTS, which liens shall survive intact the
transactions  contemplated by this AGREEMENT in the same lien priority  existing
prior to this AGREEMENT.

         Section  6.5  Enforceability.  This  AGREEMENT  and  all  of  the  LOAN
DOCUMENTS,  as modified and amended in  accordance  herewith,  are the valid and
binding obligations of the OBLIGORS, as indicated,  and are fully enforceable in
accordance with all stated terms.

    Section 7. Guaranty. The GUARANTORS hereby ratify and reaffirm the terms and
conditions of each GUARANTY and acknowledge  that each GUARANTY will continue to
be fully enforceable against the GUARANTOR executing such GUARANTY in accordance
with all stated terms after the execution and delivery of this AGREEMENT and the
consummation of the transactions contemplated herein.

    Section 8. No Other Modifications Of Loan Documents. The parties acknowledge
that except as specifically  stated in this AGREEMENT,  the LOAN DOCUMENTS shall
not be deemed to have been  amended,  modified  or changed in any  respect,  and
shall continue to be enforceable  against the parties thereto in accordance with
all stated  terms.  Nothing  contained  herein is  intended to limit,  vary,  or
terminate any liens,  pledges,  security  interests or mortgage liens  presently
existing  for the benefit of the LENDER or to alter the lien  priority  thereof.
Each  OBLIGOR  reaffirms

<PAGE>

and ratifies all of such liens,  pledges,  security  interests or mortgage liens
previously granted for the benefit of the LENDER.

    Section 9.  Further  Assurances.  The  OBLIGORS  each  agree to execute  and
deliver to the LENDER  such other and  further  documents  as may,  from time to
time, be  reasonably  requested by the LENDER in order to execute or enforce the
terms and conditions of this AGREEMENT or any of the LOAN DOCUMENTS.

    Section  10. No  Novation;  No  Refinance.  It is the  intent of each of the
OBLIGORS and of the LENDER that nothing  contained  in this  AGREEMENT  shall be
deemed to effect or accomplish or otherwise  constitute a novation of any of the
obligations  owed by any of the  OBLIGORS to the LENDER or to be a refinance  of
the LOAN.  Nothing contained herein shall be deemed to extinguish,  terminate or
impair any of the duties or obligations  owed by the OBLIGORS to the LENDER with
respect to the LOAN, the LOAN DOCUMENTS or the GUARANTY.

    Section 11. Enforceability. This AGREEMENT shall inure to the benefit of and
be  enforceable  against  the  OBLIGORS  and the  LENDER  and  their  respective
successors and assigns.

    Section 12. Choice Of Law; Consent To  Jurisdiction;  Agreement As To Venue.
This AGREEMENT  shall be construed,  performed and enforced and its validity and
enforceability  determined in accordance  with the LAWS of the State of Maryland
(excluding, however, conflict of LAWS principles). Each of the OBLIGORS consents
to the  jurisdiction of the courts of the State of Maryland and the jurisdiction
of the United States District Court for the District of Maryland, if a basis for
federal  jurisdiction exists. Each of the OBLIGORS waives any right to object to
the  maintenance of a suit in any of the state or federal courts of the State of
Maryland on the basis of improper venue or inconvenience of forum.

    Section 13. Amendment.  This AGREEMENT may be amended only by a writing duly
executed by each of the OBLIGORS and by the LENDER.

    Section  14.  Waiver.  No failure or delay by the LENDER in the  exercise or
enforcement  of any of its rights under any LOAN  DOCUMENT  shall be a waiver of
such  right or remedy  nor shall a single or  partial  exercise  or  enforcement
thereof  preclude any other or further  exercise or  enforcement  thereof or the
exercise or enforcement of an other right or remedy.  The LENDER may at any time
or from time to time waive all or any rights  under this  AGREEMENT or under any
LOAN  DOCUMENT,  but any such waiver must be specific and in writing and no such
waiver  shall  constitute,  unless  specifically  so  expressed by the LENDER in
writing,  a future  waiver of  performance  or exact  performance  by any of the
OBLIGORS. No notice to or demand upon the OBLIGORS in any instance shall entitle
any  OBLIGOR  to any other or further  notice or demand in the same,  similar or
other circumstance.

    Section 15. Obligations Unconditional.  The OBLIGORS' respective obligations
hereunder and as set forth in the LOAN DOCUMENTS are absolute and unconditional,

<PAGE>

and  are  independent  of any  defense  or  rights  of  set-off,  recoupment  or
counterclaim  which any of the OBLIGORS  might have against the LENDER.  Each of
the OBLIGORS  agrees that all  payments  required to be made by it shall be made
free of any deductions and without abatement,  diminution or set-off.  Until the
LOAN has been fully repaid and all other obligations of the OBLIGORS owed to the
LENDER have been fully  performed:  (a) no payment provided for herein or by the
terms of any of the LOAN DOCUMENTS shall be suspended or  discontinued;  and (b)
the OBLIGORS shall fully perform and observe all of their  respective  covenants
and agreements  contained  herein and in the LOAN DOCUMENTS,  including  without
limitation, the covenants and agreements to make all payments required under the
LOAN DOCUMENTS, as amended pursuant to this AGREEMENT.

    Section 16.  Expenses.  The  BORROWER  agrees to  reimburse  the LENDER upon
demand for the costs and expenses  incurred by the LENDER in connection with the
preparation of this AGREEMENT,  including all attorneys'  fees. In the event the
BORROWER fails to pay such costs and expenses upon the demand of the LENDER, the
BORROWER hereby  irrevocably  authorizes the LENDER to make an advance under the
LOAN in order to make payment of such costs and expenses.

    Section 17.  Counterparts  And Delivery.  This AGREEMENT may be executed and
delivered  in  counterparts,   and  shall  be  fully  enforceable  against  each
signatory,  even if all  designated  signatories  do not  actually  execute this
AGREEMENT.  No OBLIGOR is relying  upon the  signature  of any other  OBLIGOR in
making  the  decision  to  execute  this  AGREEMENT.  This  AGREEMENT,  and  the
signatures to this AGREEMENT, may be delivered via facsimile.

    SECTION  18.  RELEASE.  IN ORDER TO INDUCE  THE  LENDER  TO ENTER  INTO THIS
AGREEMENT,  EACH OF THE OBLIGORS  FOREVER RELEASES AND DISCHARGES THE LENDER AND
THE LENDER'S OFFICERS, DIRECTORS,  EMPLOYEES, ATTORNEYS, AGENTS, SUCCESSORS, AND
ASSIGNS  (COLLECTIVELY,  THE "RELEASED PARTIES") FROM ANY AND ALL CLAIMS, CAUSES
OF ACTION,  SUITS AND DAMAGES  (INCLUDING  CLAIMS FOR ATTORNEYS' FEES AND COSTS)
WHICH THE OBLIGORS,  JOINTLY OR SEVERALLY,  EVER HAD OR MAY NOW HAVE AGAINST ANY
OF THE RELEASED PARTIES, WHETHER KNOWN OR UNKNOWN,  INCLUDING BUT NOT LIMITED TO
ANY AND ALL CLAIMS BASED UPON OR RELYING ON ANY  ALLEGATIONS  OR  ASSERTIONS  OF
DURESS, ILLEGALITY, UNCONSCIONABILITY, BAD FAITH, BREACH OF CONTRACT, REGULATORY
VIOLATIONS,  NEGLIGENCE,  MISCONDUCT,  OR ANY OTHER TORT, CONTRACT OR REGULATORY
CLAIM  OF ANY  KIND  OR  NATURE.  THIS  RELEASE  IS  INTENDED  TO BE  FINAL  AND
IRREVOCABLE  AND IS NOT SUBJECT TO THE  SATISFACTION  OF ANY  CONDITIONS  OF ANY
KIND.

    Section 19. Waiver Of Jury Trial.  Each of the OBLIGORS and the LENDER agree
that any suit, action, or proceeding, whether claim or counterclaim,  brought or
instituted by any of the OBLIGORS, the LENDER, or any successor or assign of any
of the OBLIGORS or the LENDER,  on or with  respect to this  AGREEMENT or any of
the

<PAGE>

LOAN  DOCUMENTS  or which in any way  relates,  directly or  indirectly,  to the
obligations  of any of the OBLIGORS to the LENDER under this AGREEMENT or any of
the LOAN DOCUMENTS or the dealings of the parties with respect thereto, shall be
tried by a court and not by a jury.  EACH OF THE OBLIGORS AND THE LENDER  HEREBY
EXPRESSLY  WAIVE  ANY  RIGHT  TO A TRIAL BY JURY IN ANY SUCH  SUIT,  ACTION,  OR
PROCEEDING.

    IN WITNESS  WHEREOF,  the parties  have  executed  this  AGREEMENT  with the
specific  intention of creating a document  under seal to be effective as of the
date first above written.

WITNESS/ATTEST:                 BORROWER:

                                    ACCOM, INC., A Delaware Corporation

________________________            By:             (SEAL)
                                            Name: /s/ Donald K. McCauley
                                            Title: Senior Vice President and
                                                   Chief Financial Officer

                                    GUARANTORS:

                                    ACCOM INTERNATIONAL, INC.

________________________            By:             (SEAL)
                                            Name: /s/ Junaid Sheikh
                                            Title: Director

                                    ACCOM EUROPE, LTD.

________________________            By:             (SEAL)
                                            Name: /s/ James Cunniffe
                                            Title: Director

<PAGE>

WITNESS/ATTEST:                 GUARANTORS (cont.):

                                    ACCOM ASIA-PACIFIC

________________________            By:             (SEAL)
                                            Name: /s/ Donald K. McCauley
                                            Title: Director

                                    ACCOM VIRTUAL STUDIO, INC.

________________________            By:             (SEAL)
                                            Name: /s/ Junaid Sheikh
                                            Title: Director

                                    LENDER:

                                    THE PROVIDENT BANK,
                                    An Ohio Banking Institution

________________________            By:             (SEAL)
                                            Name: /s/ Jose Garde
                                            Title: Vice President

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