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                                                                    EXHIBIT 10-T

                         Executive Employment Agreement

This Executive Employment Agreement is entered into this 20/th/ day of November,
2002 ("Effective Date") between Priority Healthcare Corporation and its
affiliated and subsidiary companies, with its primary offices at 250 Technology
Park, Suite 124, Lake Mary, Florida 32746 ("Company") and Rebecca M. Shanahan,
("Executive").

                                  WITNESSETH:

WHEREAS, Company desires to employ Executive for the period provided for in this
Agreement and the Executive is willing to accept such employment with the
Company on a full-time basis, all in accordance with the terms and conditions
specified in this Agreement;

NOW THEREFORE, for and in consideration of ten dollars, the terms contained in
this Agreement and other good and valuable consideration, the receipt and
sufficiency of which is affirmed by the parties by their execution of this
Agreement, the parties agree and covenant to the following terms and conditions:

1.   Employment

1.1  The Company hereby employs the Executive and the Executive hereby accepts
     employment with the Company as the Executive Vice President and Chief
     Administrative Officer for the period set forth in Section 1.3, upon the
     terms and conditions outlined in this Agreement.

1.2  The Executive affirms he is under no other obligation to any former
     employer or to any other third party that is in any way inconsistent with
     or imposes any restriction upon the Executive's employment with the
     Company.

1.3  Unless otherwise terminated under the terms of this Agreement, the term of
     Executive's employment under this Agreement shall be initially for the
     period beginning upon the date of execution hereof and continuing through
     December 31, 2002; PROVIDED THAT on December 31, 2002 and every December
     31/st/ thereafter, the term of the Executive's employment shall
     automatically be extended for an additional one (1) year period
     ("Employment Term"), unless ninety (90) days prior to December 31/st/ each
     year, the Company shall have given the Executive or the Executive shall
     have given the Company a written notice that the Employment Term shall not
     be extended.

2.   Duties

2.1  The Executive shall be employed as Executive Vice President and Chief
     Administrative Officer of the Company, and shall, subject to the direction
     of the Board of Directors of Company ("the Board") and her supervisor, use
     her best efforts to faithfully and competently perform such duties as are
     detailed in Exhibit A,

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      attached hereto and hereby incorporated herein and shall also perform and
      discharge such other executive employment duties and responsibilities
      consistent with his position as Executive Vice President and Chief
      Administrative Officer.

2.2   Executive's primary workplace will be located in greater Orlando, Florida.
      Except as set out herein or otherwise be approved in advance by the Board
      and except for reasonable periods of absence related to vacation, sick
      leave, other personal matters, personal injury and/or service activities,
      Executive shall devote his full time, attention, skill and effort during
      normal business hours throughout Executive's employment, to the duties and
      responsibilities associated with his position.

2.3   Executive shall not, during such employment with Company, engage in any
      other business or volunteer activity requiring any substantial amount of
      his time (whether or not such business activity is pursued for gain,
      profit or pecuniary advantage).

3.    Compensation

3.1   As compensation for the performance of Exhibit A duties herein, the
      Company shall pay the Executive a base salary specified in Exhibit B
      "Salary & Benefits", attached hereto and hereby incorporated herein. The
      base salary shall be identified hereinafter as "Salary." Any Salary
      hereunder shall be paid at regular intervals but no less frequently than
      bi-weekly in accordance with the Company's payroll practices. Annual
      increases in salary shall be determined by the Board and the CEO in their
      sole discretion.

3.2   Executive will be entitled to receive bonus compensation from the Company
      annually, based upon a set of performance targets established by the
      Chairman and Vice Chairman of the Executive Committee, the CEO and as
      approved by the Board or, at the Board's direction, the Compensation
      Committee of the Board of Directors of the Company ("Bonus Performance
      Targets"). Annually said Bonus Performance Targets shall be incorporated
      as Exhibit C attached to this Agreement, amended annually and hereby
      incorporated herein, without the necessity of said Exhibit being executed
      by the parties to this Agreement.

3.3   Payment of any Base Salary and/or Bonus hereunder shall be subject to
      applicable withholding, payroll and other local, state and federal taxes,
      as required by applicable law or the Company's Executive benefit plans.

4.    Other Benefits

      During the term hereof, and any extensions hereto, Executive shall be
      eligible to:

4.1   participate in Executive fringe benefits, pension and/or profit sharing
      plans that may be provided by Company for its Executive Executives in
      accordance with the provisions of such plans, as such plans may be in
      effect from time to time;

4.2   participate in medical, health plans and/or other Executive welfare
      and/or benefit plans that may be provided by the Company for its
      Executive Executives in

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     accordance with the provisions of such plans that may be in effect from
     time to time;

4.3  twenty-five (25) paid vacation days in each calendar year, beginning
     January 1, 2002, as well as all paid holidays given by the Company to its
     Executive officers;

4.4  personal time off, sick leave, sick pay and disability benefits in
     accordance with any Company policy that may be applicable to Executive
     Executives from time to time;

4.5  reimbursement for all reasonably necessary out-of-pocket business expenses
     incurred by the Executive in the performance of his duties as detailed
     herein, in accordance with Company's policies pertaining to such
     out-of-pocket business expenses and in accordance with applicable state and
     federal laws and regulations;

4.6  term insurance coverage on the life of the Executive in the aggregate
     amount provided by the Company for its Executive Executives in accordance
     with applicable Company benefit plans;

4.7  participation in any stock option plans generally available to the
     Company's key Executives; and

4.8  such additional benefits as may be agreed upon by the parties from time to
     time and incorporated herein as Exhibit E.

5.   Confidential and Proprietary Information

5.1  Executive has and will have access to and will participate in the
     development of confidential and/or proprietary information and trade
     secrets related to the business of the Company and its current and future
     subsidiaries, affiliates and related entities of the Company, hereinafter
     referred to as "Confidential Information," including but not limited to:

     .  Customer and physician lists
     .  Patient confidential medical records and other personal information
     .  Referral sources
     .  Financial statements
     .  Cost and other financial reports
     .  Contract proposals or bidding information
     .  Business plans
     .  Training and operations methods, manuals and programs
     .  Reports and correspondence
     .  Systems, Processes, Policies and Procedures
     .  All other Tangible and Intangible property which are used in the
        operation of the Company
     .  Information Systems and Software

5.2  Confidential Information does not include information that is or becomes
     generally publicly available (unless in violation of Executive's
     obligations under this

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     Agreement) and/or Confidential Information that Executive receives on a
     non-confidential basis and not known by him/her as confidential.

5.3  Executive shall not disclose, use or make known for his or another's
     benefit any Confidential Information or use Confidential Information in any
     way that is other than in the best interests of the Company.

5.4  Executive may disclose Confidential Information when required by applicable
     law or judicial proceeding, but only after (a) providing notice to the
     Company of the receipt of a request from applicable governmental authority
     (b) advising the Company of Executive's intention to respond to such
     request and (c) Company's sufficient opportunity to respond, challenge or
     limit the scope of Executive's Disclosure.

5.5  Executive acknowledges and agrees that a remedy at law for breach or
     threatened breach of this Section 5 would be inadequate and agrees that
     Company shall be entitled to injunctive relief in addition to any other
     available rights and remedies in case of any breach or threatened breach.

5.6  In the event of termination of Executive's employment with the Company for
     any reason, including this Section 5, the Executive will immediately return
     to Company any Confidential Information in whatever form possessed by
     Executive.

5.7  Executive's obligations hereunder shall survive the expiration or
     termination of this Agreement and shall apply to Executive's heirs,
     successors and/or legal representatives.

6.   Termination

6.1  Executive's termination of employment under this Agreement shall occur
     in the event of one or more of the following:

          6.1.1. Death of Executive;

          6.1.2. Change of Control of the Company as defined in Exhibit D,
          attached hereto and hereby incorporated herein.

          6.1.3. Executive's Disability which results in Executive's inability
          to perform his responsibilities as detailed herein for a period of
          more than 90 days, whether or not consecutive, within any consecutive
          twelve (12) month period;

          6.1.4. Executive's written notice to the Company, delivered at least
          90 days prior to the effective date of the termination, that the
          Executive is terminating his employment "for good reason," defined as:

               a.   Assignment to Executive of duties materially inconsistent
                    with Executive's position, authority, duties or
                    responsibilities as outlined herein;

               b.   Action by Company resulting in a material diminution or
                    material adverse change in Executive's title, position,
                    authority, duties or responsibilities;

               c.   Material breach by the Company of this Agreement, including
                    requiring Executive to be based at a location other than
                    Orlando, Florida metropolitan area, as specified in Section
                    2.2 of this Agreement;

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               d.   Company failure to continue any cash or stock-based bonus
                    plan, retirement plan, welfare or other benefit or incentive
                    plan, unless the aggregate value of all such compensation,
                    retirement and benefit plans provided to the Executive is
                    not less than the aggregate value of the plans before such
                    change;

               e.   a reduction by the Company of Executive's Base Salary as in
                    effect on the Effective Date of this Agreement or as said
                    Base Salary shall be increased hereafter from time to time

          6.1.5. Company's written notice of termination of Executive "for
          cause," defined as Executive's:

               a.   Indictment of or the entering of a plea of nolo contendere
                    by the Executive with respect to having committed a felony;

               b.   Acts of fraud, theft or criminal conduct that are
                    detrimental to the financial condition or business
                    reputation of the Company;

               c.   Acts of dishonesty or gross negligence by the Executive,
                    which acts would not be qualified for indemnification under
                    the Directors' and Officers' Liability Insurance Policy; or

               d.   Willful acts or failure(s) to act consistent with or willful
                    disregard of his obligations under Company policies or this
                    Agreement.

          6.1.6. Employee shall not be deemed to have been terminated for cause
          unless and until there shall have been delivered to him/her a copy of
          a resolution duly adopted by the affirmative vote of not less than a
          majority of the entire membership of the Company's Board at a meeting
          called and held for the purpose (after reasonable notice to Employee
          and an opportunity for Employee, together with his counsel, to be
          heard before such Board), finding that, in the good faith opinion of
          such Board, Employee was guilty of conduct constituting "cause" and
          specifying the particulars thereof in detail.

     6.2  In the event Executive's employment hereunder is terminated under
          Section 6.1.1, 6.1.2, 6.1.3, 6.1.4, Company shall pay to Executive, as
          severance pay or liquidated damages or both, a lump-sum cash payment
          equal to the present value of the sum of the following amounts:

               a.   The Base Salary that would have been paid to the Executive
                    throughout the greater of the number of months remaining
                    under the term of this Agreement or 12 months;

               b.   The annual bonus amount in the year of termination of
                    Executive's employment, calculated at the higher of the base
                    bonus opportunity or the average bonus percentage of Base
                    Salary payable to Executive for the two (2) years
                    immediately preceding the year of termination, and

               c.   The annualized long-term incentive award for the year in
                    which the Executive's employment is terminated, at the
                    higher of the targeted level of the award or the anticipated
                    actual incentive award.

     6.3  Executive shall continue to participate in the medical, dental, life,
          accident and disability benefit plans of the Company as provided for
          herein on the same basis

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          and at the same cost to Executive as on the date of termination or
          resignation until the first anniversary of such termination or
          resignation.

     6.4  To the extent that Executive is not then 100% vested in any employer
          matching contribution and earnings thereon allocated to his account in
          the Company's 401(k) Plan and said non-vested amount is forfeited, the
          Company will pay Executive a lump sum amount on the date of such
          forfeiture equal to the non-vested forfeited amount.

     6.5  To the extent that Executive's employment is terminated and Executive
          is entitled to receive funds from Company's profit sharing plan,
          deferred compensation plan, excess plan and/or the Equity Unit Plan
          for the period of time during which Executive was actively engaged as
          an Executive of Company, Company shall pay Executive any accrued
          profit sharing or other amounts through the date of termination of
          Executive's employment. However, Executive shall not, from the date of
          Executive's termination from employment or during the period when
          Company is paying Executive severance pay or liquidated damages or
          both after such date of termination of employment, be entitled to
          participate in any Company profit sharing programs.

     6.6  Except as required by law and except as provided in Sections 6.2, 6.3,
          6.4, 6.5 and 6.7, Company shall not be obligated to make any payments
          to Executive or on his behalf by reason of Executive's cessation of
          employment other than such amounts, if any, of his Salary as shall
          have accrued and remain unpaid as of the date of cessation of
          employment.

     6.7  No interest shall accrue on or be paid with respect to any timely
          payments made hereunder.

     6.8  Any rights or interest of Executive in Restricted Stock or other Stock
          Option Grants shall be subject to the terms provided for in the
          applicable Restricted Stock Agreement or other Stock Option Plan
          documents and agreements.

7.   Change of Control

     7.1  Notwithstanding the foregoing, if a Change in Control of the Company
          (as defined in Exhibit D) shall occur prior to the expiration of the
          original term or any extensions of the term of this Agreement, then
          the term of this Agreement shall automatically become a term of three
          (3) years commencing on the date of any such Change in Control.

     7.2  In the event a Change of Control as outlined in Exhibit D should
          occur, the following benefits, less any amounts required to be
          withheld therefrom under any applicable federal, state or local income
          tax, other tax, or social security laws or similar statutes, shall be
          paid to Executive upon any termination of his employment with the
          Company subsequent to a Change in Control:

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                  (A) Within thirty (30) days following such a termination,
         Executive shall be paid, at his then-effective salary, for services
         performed through the date of his termination. In addition, Executive
         shall be paid the bonus accrued through the date of termination,
         calculated at the higher of the base bonus opportunity or the average
         bonus percentage of Base Salary payable to Executive for the two (2)
         years immediately preceding the year of termination, pro-rated for the
         number of months from January 1 of the year in which the Change of
         Control occurs through the end of the month in which the Change of
         Control occurs and the annualized long-term incentive award for the
         year in which the Change of Control occurs, at the higher of the
         targeted level of the award or the anticipated actual incentive award,
         pro-rated for the number of months from January 1 of the year in which
         the Change of Control occurs through the end of the month in which the
         Change of Control occurs.

                  (B) Within thirty (30) days following such a termination,
         Executive shall be paid a lump sum payment of an amount equal to two
         and nine-tenths (2.9) times Executive's "Base Amount." For purposes
         hereof, Base Amount is defined as the higher of Executive's average
         includable compensation paid by the Company for the five (5) most
         recent taxable years ending before the date on which the Change in
         Control occurs or the Base Salary plus Executive's applicable annual
         bonus opportunity. The definition, interpretation and calculation of
         the dollar amount of Base Amount shall be in a manner consistent with
         and as required by the provisions of Section 280G of the Internal
         Revenue Code of 1986, as amended ("Code"), and the regulations and
         rulings of the Internal Revenue Service promulgated there under.

                  (C)(i) In the event that any payment or benefit (within the
         meaning of Section 280G(b)(2) of the Code) paid or payable to the
         Executive or for his benefit pursuant to the terms of this Agreement or
         otherwise (including any benefit from the exercise of stock options
         vested early because of a change in control) in connection with, or
         arising out of, his employment with the Company or a change in
         ownership or effective control of the Company or of a substantial
         portion of its assets (a "Payment" or "Payments"), would be subject to
         the excise tax imposed by Section 4999 of the Code or any interest,
         penalties, additional tax or similar items are incurred by the
         Executive with respect to such excise tax (such excise tax, together
         with any such interest, penalties, additional tax or similar items are
         hereinafter collectively referred to as the "Excise Tax"), then the
         Executive will be entitled to receive an additional payment (a
         "Gross-Up Payment") in an amount such that after payment by the
         Executive of all taxes (including any interest, penalties, additional
         tax or similar items imposed with respect thereto and the Excise Tax)
         including any Excise Tax imposed upon the Gross-Up Payment, the
         Executive retains an amount of the Gross-Up Payment equal to the Excise
         Tax imposed upon the Payments.

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                  (ii) An initial determination as to whether a Gross-Up Payment
         is required pursuant to this Agreement and the amount of such Gross-Up
         Payment shall be made at the Company's expense by an accounting firm
         selected by the Company and reasonably acceptable to the Executive
         which is designated as one of the four largest accounting firms in the
         United States (the "Accounting Firm"). The Accounting Firm shall
         provide its determination (the "Determination"), together with detailed
         supporting calculations and documentation to the Company and the
         Executive within ten days of the Termination Date if applicable, or
         such other time as requested by the Company or by the Executive and if
         the Accounting Firm determines that no Excise Tax is payable by the
         Executive with respect to a Payment or Payments, it shall furnish the
         Executive with an opinion reasonably acceptable to the Executive that
         no Excise Tax will be imposed with respect to any such Payment or
         Payments. Within ten days of the delivery of the Determination to the
         Executive, the Executive shall have the right to dispute the
         Determination (the "Dispute"). The Gross-Up Payment, if any, as
         determined pursuant to this subsection 6(c) (ii) shall be paid by the
         Company to the Executive within five days of the receipt of the
         Accounting Firm's Determination. The existence of the Dispute shall not
         in any way affect the Executive's right to receive the Gross-Up Payment
         in accordance with the Determination. If there is no Dispute, the
         Determination shall be binding, final and conclusive upon the Company
         and the Executive subject to the application of subsection 6(c) (iii)
         below.

                 (iii) As a result of the uncertainty in the application of
          Sections 4999 and 280G of the Code, it is possible that a Gross-Up
          Payment (or a portion thereof) will be paid which should not have been
          paid (an "Excess Payment") or a Gross-Up Payment (or a portion
          thereof) which should have been paid will not have been paid (an
          "Underpayment"). An Underpayment shall be deemed to have occurred (a)
          upon notice (formal or informal) to the Executive from any
          governmental taxing authority that the Executive's tax liability
          (whether in respect of the Executive's current taxable year or in
          respect of any prior taxable year) may be increased by reason of the
          imposition of the Excise Tax on a Payment or Payments with respect to
          which the Company has failed to make a sufficient Gross-Up Payment,
          (b) upon a determination by a court, (c) by reason of determination by
          the Company (which shall include the position taken by the Company,
          together with its consolidated group, on its federal income tax
          return) or (d) upon the resolution of the Dispute to the Executive's
          satisfaction. If an Underpayment occurs, the Executive shall promptly
          notify the Company and the Company shall promptly, but in any event,
          at least five days prior to the date on which the applicable
          government taxing authority has requested payment, pay to the
          Executive an additional Gross-Up Payment equal to the amount of the

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          Underpayment plus any interest, penalties, additional taxes or similar
          items imposed on the Underpayment. An Excess Payment shall be deemed
          to have occurred upon a "Final Determination" (as hereinafter defined)
          that the Excise Tax shall not be imposed upon a Payment or Payments
          (or portion thereof) with respect to which the Executive had
          previously received a Gross-Up Payment. A "Final Determination" shall
          be deemed to have occurred when the Executive has received from the
          applicable government taxing authority a refund of taxes or other
          reduction in the Executive's tax liability by reason of the Excise
          Payment and upon either (x) the date a determination is made by, or an
          agreement is entered into with, the applicable governmental taxing
          authority which finally and conclusively binds the Executive and such
          taxing authority, or in the event that a claim is brought before a
          court of competent jurisdiction, the date upon which a final
          determination has been made by such court and either all appeals have
          been taken and finally resolved or the time for all appeals has
          expired or (y) the statute of limitations with respect to the
          Executive's applicable tax return has expired. If an Excess Payment is
          determined to have been made, the amount of the Excess Payment shall
          be treated as a loan by the Company to the Executive and the Executive
          shall pay to the Company on demand (but not less than ten days after
          the Final Determination of such Excess Payment and written notice has
          been delivered to the Executive) the amount of the Excess Payment plus
          interest at an annual rate equal to the Applicable Federal Rate
          provided for in Section 1274(d) of the Code from the date the Gross-Up
          Payment (to which the Excess Payment relates) was paid to the
          Executive until the date of repayment to the Company.

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

     7.3  The Company is aware that upon the occurrence of a Change in Control
          the Board of Directors or a shareholder of the Company may then cause
          or attempt to cause the Company to refuse to comply with its
          obligations under this Agreement, or may cause or attempt to cause the
          Company to institute, or may institute, litigation seeking to have
          this Agreement declared unenforceable, or may take or attempt to take
          other action to deny Executive the benefits intended under this
          Agreement. In these circumstances, the purpose of this Agreement could
          be frustrated. It is the intent of the Company that Executive not be
          required to incur the expenses associated with the enforcement of his
          rights under this Agreement by litigation or other legal action, nor
          be bound to negotiate any settlement of his rights hereunder, because
          the cost and expense of such legal action or settlement would
          substantially detract from the benefits intended to be extended to
          Executive

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          hereunder. Accordingly, if following a Change in Control it should
          appear to Executive that the Company has failed to comply with any of
          its obligations under this Agreement or in the event that the Company
          or any other person takes any action to declare this Agreement void or
          unenforceable, or institutes any litigation or other legal action
          designed to deny, diminish or to recover from Executive the benefits
          entitled to be provided to the Executive hereunder, and that Executive
          has complied with all of his obligations under this Agreement, the
          Company irrevocably authorizes Executive from time to time to retain
          counsel of his choice, at the expense of the Company as provided in
          this Section 7, to represent Executive in connection with the
          initiation or defense of any litigation or other legal action, whether
          such action is by or against the Company or any director, officer,
          shareholder, or other person affiliated with the Company, in any
          jurisdiction. Notwithstanding any existing or prior attorney-client
          relationship between the Company and such counsel, the Company
          irrevocably consents to Executive entering into an attorney-client
          relationship with such counsel, and in that connection the Company and
          Executive agree that a confidential relationship shall exist between
          Executive and such counsel. The reasonable fees and expenses of
          counsel selected from time to time by Executive as hereinabove
          provided shall be paid or reimbursed to Executive by the Company on a
          regular, periodic basis upon presentation by Executive of a statement
          or statements prepared by such counsel in accordance with its
          customary practices. Any legal expenses incurred by the Company by
          reason of any dispute between the parties as to enforceability of or
          the terms contained in this Agreement as provided by this Section 7,
          notwithstanding the outcome of any such dispute, shall be the sole
          responsibility of the Company, and the Company shall not take any
          action to seek reimbursement from Executive for such expenses.

     7.4  Executive is not required to mitigate the amount of benefit payments
          to be made by the Company pursuant to this Agreement by seeking other
          employment or otherwise, nor shall the amount of any benefit payments
          provided for in this Agreement be reduced by any compensation earned
          by Executive as a result of employment by another employer or which
          might have been earned by Executive had Executive sought such
          employment, after the date of termination of his employment with the
          Company or otherwise.

     7.5  The Company shall also provide Executive with the benefits set forth
          in Section 7 of this Agreement upon any termination of Executive's
          employment with the Company at Executive's option after a Change in
          Control followed by the happening of any one of the following events:

               (A) Without Executive's express written consent, the assignment
          of Executive to any duties which, in Executive's reasonable judgment,
          are materially inconsistent with his positions, duties,
          responsibilities or status with the Company immediately prior to the
          Change in Control or a substantial reduction of his duties or
          responsibilities which, in Executive's reasonable opinion, does not

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         represent a promotion from his position, duties or responsibilities
         immediately prior to the Change in Control.

                  (B) A reduction by the Company in Executive's salary from the
         level of such salary immediately prior to the Change in Control or the
         Company's failure to increase (within twelve (12) months of Executive's
         last increase in base salary) Executive's base salary after a Change in
         Control in an amount which at least equals, on a percentage basis, the
         average percentage increase in base salary for all executive and senior
         officers of the Company effected in the preceding twelve (12) months.

                  (C) The failure by the Company to continue in effect any
         incentive, bonus or other compensation plan in which Executive
         participates, including but not limited to the Company's stock option
         plans, unless an equitable arrangement (embodied in an ongoing
         substitute or alternative plan), with which Executive has consented,
         has been made with respect to such plan in connection with the Change
         in Control, or the failure by the Company to continue Executive's
         participation therein, or any action by the Company which would
         directly or indirectly materially reduce Executive's participation
         therein.

                  (D) The failure by the Company to continue to provide
         Executive with benefits substantially similar to those enjoyed by
         Executive or to which Executive was entitled under any of the Company's
         principal pension, profit sharing, life insurance, medical, dental,
         health and accident, or disability plans in which Executive was
         participating at the time of a Change in Control, the taking of any
         action by the Company which would directly or indirectly materially
         reduce any of such benefits or deprive Executive of any material fringe
         benefit enjoyed by Executive or to which Executive was entitled at the
         time of the Change in Control, or the failure by the Company to provide
         Executive with the number of paid vacation and sick leave days to which
         Executive is entitled on the basis of years of service or position with
         the Company in accordance with the Company's normal vacation policy in
         effect on the date hereof.

                  (E) The Company's requiring Executive to be based anywhere
         other than the metropolitan area where the Company office at which he
         was based immediately prior to the Change in Control was located,
         except for required travel on the Company's business in accordance with
         the Company's past management practices.

                  (F) Any failure of the Company to obtain the assumption of the
         obligation to perform this Agreement by any successor as contemplated
         in Section 8 hereof.

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                  (G) Any failure by the Company or its shareholders, as the
         case may be, to reappoint or reelect Executive to a corporate office
         held by him immediately prior to the Change in Control or his removal
         from any such office including any seat held at such time on the
         Company's Board of Directors.

                  (H) The effectiveness of a resignation, tendered at any time,
         either before or after a Change in Control and regardless of whether
         formally characterized as voluntary or otherwise, by Executive of any
         corporate office held by him immediately prior to the Change in Control
         or of any seat held at such time on the Company's Board of Directors,
         at the request of the Company or at the request of the person obtaining
         control of the Company in such Change in Control.

                  (I) Any purported termination of the Executive's employment
         which is not effected pursuant to a Notice of Termination satisfying
         the requirements of this Agreement.

                  (J) Any request by the Company that Executive participate in
         an unlawful act or take any action constituting a breach of Executive's
         professional standard of conduct.

                  (K) Any breach by the Company of any of the provisions of this
         Agreement or any failure by the Company to carry out any of its
         obligations hereunder.

Notwithstanding anything in this Agreement to the contrary, Executive's right to
terminate Executive's employment pursuant to this Section 7 shall not be
affected by Executive's incapacity due to physical or mental illness.

8.   No Assignment

8.1  Neither this Agreement nor any right or interest hereunder is assignable by
     Executive or Executive's beneficiaries or legal representatives without
     Company's prior written consent; provided however, nothing in this
     Agreement shall preclude the Executive from designating a beneficiary to
     receive any benefit payable hereunder upon Executive's death or incapacity.

8.2  Notwithstanding the terms herein, this Agreement and the Company's rights
     hereunder may be assigned by the Company pursuant to a merger or
     consolidation that is not defined as a Change of Control in Exhibit D.

8.3  No right to receive payments under this Agreement shall be subject to
     anticipation, commutation, alienation, sale, assignment, encumbrance,
     charge, pledge, attachment, and levy or to assignment by operation of law.
     Any attempt, voluntary or involuntary, to effect any such action shall be
     null, void and of no effect.

                                       12

<PAGE>

9.   Severability

     Should any clause, portion or section of this Agreement be unenforceable or
     invalid for any reason, such unenforceability or invalidity shall not
     affect the enforceability or validity of the remainder of this Agreement.
     Should any particular covenant in this Agreement be held unreasonable or
     unenforceable for any reason, including without limitation, the time
     period, geographical area and scope of activity covered by such covenant,
     then the covenant shall be given effect and enforced to whatever extent
     would be reasonable and enforceable.

10.  Non-Compete Agreement

     This Agreement shall be subject to and hereby incorporates herein the terms
     of the Non-Compete Agreement between Executive and Company executed at the
     time of initiation of Executive's employment with Company.

11.  Indemnity

To the extent permitted by applicable law and the charter and by-laws of the
Company, Company shall:

11.1 Indemnify Executive and hold Executive harmless for any acts or decisions
     made by him in good faith while performing services for the Company.
     Company will use reasonable best efforts to maintain and, after
     termination, continue coverage for Executive under Director's and
     Officer's liability coverage to the same extent as other current or former
     officers and directors of the Company; and

11.2 Advance or pay all expenses, including attorney's fees actually and
     necessarily incurred by the Executive in connection with the defense of
     any action, suit or proceeding arising out of Executive's service for the
     Company and in connection with any appeal thereon, including the cost of
     court settlements.

12.  No Mitigation

In the event of Executive's resignation or termination of Executive's employment
hereunder, Executive shall have no obligation to seek other employment or
otherwise mitigate damages and there shall be no offset for any remuneration
attributable to any subsequent employment that the Executive may obtain.

13.  Notices

All notices which are required or may be given pursuant to the terms of this
Agreement shall be in writing and shall be sufficiently delivered if provided in
writing, delivered personally, by certified or registered mail, return receipt
requested, by a nationally recognized overnight courier or via facsimile
confirmed in writing to the recipient. Delivery shall be to Company at Company's
principal place of business and to Executive at Executive's most recently filed
home address.

Any termination of Executive's employment with the Company hereof shall be
communicated by written "Notice of Termination" to the other party hereto. Any
"Notice of Termination" given by Executive or given by the Company in connection
with a termination as to which the Company believes it is not obligated to
provide Executive

                                       13

<PAGE>

with benefits set forth herein shall indicate the specific provisions of this
Agreement relied upon and shall set forth in reasonable detail the facts and
circumstances claimed to provide a basis for such termination.

14.  Enforcement

Any dispute arising under this Agreement shall, at the election of either party,
be resolved by final and binding arbitration to be held in the Orlando, Florida
metropolitan area in accordance with the rules and procedures of the American
Arbitration Association. Judgment upon the award entered by the arbitrator may
be entered in any court having jurisdiction thereof.

15.  Governing Law

This Agreement is governed by the laws of the state of Indiana.

16.  Waiver

Failure to insist upon strict compliance with any of the terms, conditions or
provisions of this Agreement shall not be deemed a waiver hereof, nor shall any
waiver or relinquishment of any right or power hereunder at any one or more
times be deemed a waiver or relinquishment of any right or power at any other
time.

17.  No Amendment

This Agreement may not be modified or amended without prior written consent of
both Executive and Company.

18.  Counterparts

This Agreement may be executed in two or more counterparts, each of which shall
be deemed an original but all of which together shall constitute the same
instrument.

IN WITNESS WHEREOF, Company and Executive have executed on the date first stated
above.

/s/ Steven Cosler                            /s/ Rebecca M. Shanahan
------------------------------------         -----------------------------------
Priority Healthcare Corporation              Executive

                                       14

<PAGE>

                                    Exhibit A
                                Executive Duties
            Executive Vice President and Chief Administrative Officer

     Executive shall perform the duties and responsibilities and shall have the
     responsibilities and powers as shall be determined from time to time. All
     such duties, responsibilities and/or powers as may reasonably assigned in
     furtherance of Executive's responsibilities and the business requirements
     of Company shall be subject to the order, direction and supervision of any
     superior officers of the Company. Executive's duties include but are not
     limited to:

 POSITION SUMMARY:

          .    Oversee Human Resources Management and activities for the Company
               and all its subsidiaries, divisions, etc., including but not
               limited to:

               .    compensation and benefits management,

               .    training and organizational development;

               .    corporate communications, including IntraNet and other
                    in-house communications;

               .    support/enhancement of the Vision, Mission and Culture of
                    the Company.

          .    Serve as General Counsel to the Company and its subsidiaries,
               divisions, etc., including:

               .    Legal representation of the Company before appropriate legal
                    tribunals, governmental agencies and authorities;

               .    Review and advice to Company employees regarding contractual
                    relationships, managed care, vendor, real estate, labor
                    agreements, and all other legal documents and agreements
                    obligating the Company to actions, financial commitments,
                    legal obligations, etc.

               .    Selection and management of outside legal and other
                    resources necessary to manage the legal activities, defend
                    legal actions, etc.

               .    Review and advice to Company and its employees regarding all
                    applicable laws, regulations and/or accreditation and
                    licensing obligations.

               .    Coordinate representation of Company by lobbyists and other
                    consultants and management of governmental relations.

               .    Mergers, acquisitions and divestitures.

               .    All other matters pertaining to legal issues, disputes
                    and/or obligations of the Company.

          .    Serve as the Corporate Secretary to the Company and the Board of
               Directors, including:

               .    Maintenance of appropriate minutes, agendas, authorizations,
                    governance actions and such other actions regarding the
                    registration, licensure and Board and corporate committee
                    compliance with all applicable laws and regulations;

                                       15

<PAGE>

               .    Investor Relations, including the maintenance of books and
                    records of the securities of the corporation, stock option
                    plans, and communications to investors and capital markets

               .    Coordinate and provide guidance to the Board of Directors
                    and the Corporation regarding compliance with all applicable
                    securities and corporate regulations and rules.

               .    Coordinate the Board and Board Committee Schedules,
                    information to Board and/or Committee members necessary to
                    discharge their responsibilities, etc.

          .    Leadership and Oversight of Payer Relations, including:

               .    development and implementation of a Company strategy to
                    develop services and products which meet the requirements of
                    third party payers including commercial and governmental
                    payers;

               .    marketing and sales to Payers, including HMOs, PPOs,
                    Insurance and Labor Trusts, Employer-Sponsored Health Plans,
                    Third Party Payers, Consultants, etc.

               .    financial accounting and reporting to the Company and the
                    Payers regarding managed care services by Company, including
                    the development and implementation of pricing analysis and
                    strategies, development of economic and actuarial
                    utilization models and analytical tools with which to
                    measure the financial performance of Payer contracts, etc.

               .    business development through relationships with physicians,
                    hospitals, payer medical directors, payer utilization
                    management staff, disease management carve out services and
                    companies, etc.

          .    Support and Coordinate Business Development activities associated
               with Pharmaceutical Manufacturers, Retail Pharmacies, and
               Employers and/ or other Third Party Payers and such other third
               party entities as may be identified by Company from time to time.

          .    Leadership and management of Implementation Services, including
               Reimbursement, Verification, New Project Implementation and Roll
               Out Teams, Payer Services, Coding, etc.

          .    Leadership and management of Company Compliance activities,
               including:

               .    Compliance with all Federal, State and local laws and
                    regulations;

               .    Accreditation and ongoing Professional licensure compliance;

               .    Safety, training and auditing of compliance activities,
                    including OSHA, Environmental safety, Quality Improvement
                    and Assurance, etc.

          .    All other duties as assigned.

                                       16

<PAGE>

     EXHIBIT B

                                Salary & Benefits

                                       17

<PAGE>

                                    EXHIBIT C
                            Bonus Performance Targets
                                      2002

                                       18

<PAGE>

                                    EXHIBIT D
                          Change in Control of Company

         Change of Control of the Company shall be defined as:

               (A) The acquisition by any individual, entity or group (within
          the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange
          Act of 1934, as amended (the "Exchange Act") (a "Person") of
          beneficial ownership (within the meaning of Rule 13d-3 promulgated
          under the Exchange Act as in effect from time to time) of twenty-five
          percent (25%) or more of either (i) the then outstanding shares of
          common stock of the Company or (ii) the combined voting power of the
          then outstanding voting securities of the Company entitled to vote
          generally in the election of directors; provided, however, that the
          following acquisitions shall not constitute an acquisition of control:
          (i) any acquisition directly from the Company (excluding an
          acquisition by virtue of the exercise of a conversion privilege), (ii)
          any acquisition by the Company, (iii) any acquisition by any Executive
          benefit plan (or related trust) sponsored or maintained by the Company
          or any Company controlled by the Company, (iv) any acquisition by any
          Company pursuant to a reorganization, merger or consolidation, if,
          following such reorganization, merger or consolidation, the conditions
          described in clauses (i), (ii) and (iii) of subsection (C) of this
          Section 2 are satisfied, (v) any acquisition by William E. Bindley or
          (vi) upon the death of William E. Bindley, any acquisition triggered
          by his death by operation of law, by any testamentary bequest or by
          the terms of any trust or other contractual arrangement established by
          him;

               (B) Individuals who, as of the date hereof, constitute the Board
          of Directors of the Company (the "Incumbent Board") cease for any
          reason to constitute at least a majority of the Board of Directors of
          the Company (the "Board"); provided, however, that any individual
          becoming a director subsequent to the date hereof whose election, or
          nomination for election by the Company's shareholders, was approved by
          a vote of at least a majority of the directors then comprising the
          Incumbent Board shall be considered as though such individual were a
          member of the Incumbent Board, but excluding, for this purpose, any
          such individual whose initial assumption of office occurs as a result
          of either an actual or threatened election contest (as such terms are
          used in Rule 14a-11 of Regulation 14A promulgated under the Exchange
          Act) or other actual or threatened solicitation of proxies or consents
          by or on behalf of a Person other than the Board; or

               (C) Approval by the shareholders of the Company of a
          reorganization, merger or consolidation, in each case, unless,
          following such reorganization, merger or consolidation, (i) more than
          sixty percent

                                       19

<PAGE>

         (60%) of, respectively, the then outstanding shares of common stock of
         the Company resulting from such reorganization, merger or consolidation
         and the combined voting power of the then outstanding voting securities
         of such Company entitled to vote generally in the election of directors
         is then beneficially owned, directly or indirectly, by all or
         substantially all of the individuals and entities who were the
         beneficial owners, respectively, of the outstanding Company common
         stock and outstanding Company voting securities immediately prior to
         such reorganization, merger or consolidation in substantially the same
         proportions as their ownership, immediately prior to such
         reorganization, merger or consolidation, of the outstanding Company
         stock and outstanding Company voting securities, as the case may be,
         (ii) no Person (excluding the Company, any Executive benefit plan or
         related trust of the Company or such Company resulting from such
         reorganization, merger or consolidation and any Person beneficially
         owning, immediately prior to such reorganization, merger or
         consolidation, directly or indirectly, twenty-five percent (25%) or
         more of the outstanding Company common stock or outstanding voting
         securities, as the case may be) beneficially owns, directly or
         indirectly, twenty-five percent (25%) or more of, respectively, the
         then outstanding shares of common stock of the Company resulting from
         such reorganization, merger or consolidation or the combined voting
         power of the then outstanding voting securities of such Company
         entitled to vote generally in the election of directors and (iii) at
         least a majority of the members of the board of directors of the
         Company resulting from such reorganization, merger or consolidation
         were members of the Incumbent Board at the time of the execution of the
         initial agreement providing for such reorganization, merger or
         consolidation; or

                  (D) Approval by the shareholders of the Company of (i) a
         complete liquidation or dissolution of the Company or (ii) the sale or
         other disposition of all or substantially all of the assets of the
         Company, other than to a Company with respect to which following such
         sale or other disposition (a) more than sixty percent (60%) of,
         respectively, the then outstanding shares of common stock of such
         Company and the combined voting power of the then outstanding voting
         securities of such Company entitled to vote generally in the election
         of directors is then beneficially owned, directly or indirectly, by all
         or substantially all of the individuals and entities who were the
         beneficial owners, respectively, of the outstanding Company common
         stock and outstanding Company voting securities immediately prior to
         such sale or other disposition in substantially the same proportion as
         their ownership, immediately prior to such sale or other disposition,
         of the outstanding Company common stock and outstanding Company voting
         securities, as the case may be, (b) no Person (excluding the Company
         and any Executive benefit plan or related trust of the Company or such
         Company and any Person beneficially owning, immediately prior to such
         sale or other disposition, directly or

                                       20

<PAGE>

         indirectly, twenty-five percent (25%) or more of the outstanding
         Company common stock or outstanding Company voting securities, as the
         case may be) beneficially owns, directly or indirectly, twenty-five
         percent (25%) or more of, respectively, the then outstanding shares of
         common stock of such Company and the combined voting power of the then
         outstanding voting securities of such Company entitled to vote
         generally in the election of directors and (c) at least a majority of
         the members of the board of directors of such Company were members of
         the Incumbent Board at the time of the execution of the initial
         agreement or action of the Board providing for such sale or other
         disposition of assets of the Company.

                                       21<PAGE>

                                                                   Exhibit 10.4A

                                  ALTIRIS, INC.

                        2002 EMPLOYEE STOCK PURCHASE PLAN

     The following constitutes the provisions of the 2002 Employee Stock
Purchase Plan of Altiris, Inc.

     1. Purpose. The purpose of the Plan is to provide Employees with an
        -------
opportunity to purchase Common Stock through accumulated payroll deductions. It
is the intention of the Company to have the Plan qualify as an "Employee Stock
Purchase Plan" under Section 423 of the Code. The provisions of the Plan,
accordingly, shall be construed so as to extend and limit Plan participation in
a manner that is consistent with the requirements of that section of the Code.

     2. Definitions.
        -----------

        (a) "Administrator" means the Board or any committee thereof designated
             -------------
by the Board in accordance with Section 14.

        (b) "Board" means the Board of Directors of the Company.
             -----

        (c) "Change of Control" means the occurrence of any of the following
             -----------------
events:

          (i) Any "person" (as such term is used in Sections 13(d) and 14(d) of
the Exchange Act) becomes the "beneficial owner" (as defined in Rule 13d-3 of
the Exchange Act), directly or indirectly, of securities of the Company
representing fifty percent (50%) or more of the total voting power represented
by the Company's then outstanding voting securities; or

          (ii) The consummation of the sale or disposition by the Company of all
or substantially all of the Company's assets; or

          (iii) The consummation of a merger or consolidation of the Company,
with any other corporation, other than a merger or consolidation which would
result in the voting securities of the Company outstanding immediately prior
thereto continuing to represent (either by remaining outstanding or by being
converted into voting securities of the surviving entity or its parent) at least
fifty percent (50%) of the total voting power represented by the voting
securities of the Company, or such surviving entity or its parent outstanding
immediately after such merger or consolidation.

          (iv) A change in the composition of the Board, as a result of which
fewer than a majority of the Directors are Incumbent Directors. "Incumbent
Directors" means Directors who either (A) are Directors as of the effective date
of the Plan (pursuant to Section 23), or (B) are elected, or nominated for
election, to the Board with the affirmative votes of at least a majority of
those Directors whose election or nomination was not in connection with any
transaction described in subsections (i), (ii) or (iii) or in connection with an
actual or threatened proxy contest relating to the election of Directors of the
Company.

<PAGE>

        (d) "Code" means the Internal Revenue Code of 1986, as amended. Any
             ----
reference to a section of the Code herein shall be a reference to any successor
or amended section of the Code.

        (e) "Common Stock" means the common stock of the Company.
             ------------

        (f) "Company" means Altiris, Inc., a Delaware corporation.
             -------

        (g) "Compensation" means all base straight time gross earnings,
             ------------
commissions, overtime, and shift premium, but exclusive of payments for
incentive compensation, bonuses, and other compensation.

        (h) "Designated Subsidiary" means any Subsidiary that has been
             ---------------------
designated by the Administrator from time to time in its sole discretion as
eligible to participate in the Plan.

        (i) "Director" means a member of the Board.
             --------

        (j) "Employee" means any individual who is a common law employee of an
             --------
Employer. For purposes of the Plan, the employment relationship shall be treated
as continuing intact while the individual is on sick leave or other leave of
absence approved by the Employer. Where the period of leave exceeds ninety (90)
days and the individual's right to reemployment is not guaranteed either by
statute or by contract, the employment relationship shall be deemed to have
terminated on the 91st day of such leave.

        (k) "Employer" means any one or all of the Company and its Designated
             --------
Subsidiaries.

        (l) "Enrollment Date" means the first Trading Day of each Offering
             ---------------
Period.

        (m) "Exchange Act" means the Securities Exchange Act of 1934, as
             ------------
amended, including the rules and regulations promulgated thereunder.

        (n) "Exercise Date" means the first Trading Day on or after February 1
             -------------
and August 1 of each year. The first Exercise Date under the Plan shall be the
first Trading Day on or after February 1, 2003.

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

          (i) If the Common Stock is listed on any established stock exchange or
a national market system, including without limitation the Nasdaq National
Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its Fair Market
Value shall be the closing sales price for the Common Stock (or the closing bid,
if no sales were reported) as quoted on such exchange or system on the date of
determination, as reported in The Wall Street Journal or such other source as
the Administrator deems reliable, or;

          (ii) If the Common Stock is regularly quoted by a recognized
securities dealer but selling prices are not reported, its Fair Market Value
shall be the mean of the closing bid

                                      -2-

<PAGE>

and asked prices for the Common Stock on the date of determination, as reported
in The Wall Street Journal or such other source as the Administrator deems
reliable, or;

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

          (iv) For purposes of the Enrollment Date of the first Offering Period
under the Plan, the Fair Market Value shall be the initial price to the public
as set forth in the final prospectus deemed to be included within the
registration statement on Form S-1 filed with the Securities and Exchange
Commission for the initial public offering of the Common Stock (the
"Registration Statement").

        (p) "Offering Periods" means the periods of approximately six (6) months
             ----------------
during which an option granted pursuant to the Plan may be exercised, commencing
on the first Trading Day on or after February 1 and August 1 of each year and
terminating on the first Trading Day on or after the February 1 and August 1
Offering Period commencement date approximately six (6) months later; provided,
however, that the first Offering Period under the Plan shall commence with the
first Trading Day on or after the date on which the Securities and Exchange
Commission declares the Company's Registration Statement effective and end on
the last Trading Day on or after February 1, 2003. The duration and timing of
Offering Periods may be changed pursuant to Section 4 of this Plan.

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

        (r) "Plan" means this 2002 Employee Stock Purchase Plan.
             ----

        (s) "Purchase Price" means an amount equal to eighty-five percent (85%)
             --------------
of the Fair Market Value of a share of Common Stock on the Enrollment Date or on
the Exercise Date, whichever is lower; provided however, that the Purchase Price
may be adjusted by the Administrator pursuant to Section 20.

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

        (u) "Trading Day" means a day on which the U.S. national stock exchanges
             -----------
and the Nasdaq System are open for trading.

     3. Eligibility.
        -----------

        (a) First Offering Period. Any individual who is an Employee immediately
            ---------------------
prior to the first Offering Period under the Plan shall be automatically
enrolled in the first Offering Period.

        (b) Subsequent Offering Periods. Any individual who is an Employee as of
            ---------------------------
the Enrollment Date of any future Offering Period shall be eligible to
participate in such Offering Period, subject to the requirements of Section 5.

                                      -3-

<PAGE>

        (c) Limitations. Any provisions of the Plan to the contrary
            -----------
notwithstanding, no Employee shall be granted an option under the Plan (i) to
the extent that, immediately after the grant, such Employee (or any other person
whose stock would be attributed to such Employee pursuant to Section 424(d) of
the Code) would own capital stock of the Company or any Parent or Subsidiary of
the Company and/or hold outstanding options to purchase such stock possessing
five percent (5%) or more of the total combined voting power or value of all
classes of the capital stock of the Company or of any Parent or Subsidiary of
the Company, or (ii) to the extent that his or her rights to purchase stock
under all employee stock purchase plans (as defined in Section 423 of the Code)
of the Company or any Parent or Subsidiary of the Company accrues at a rate
which exceeds twenty-five thousand dollars ($25,000) worth of stock (determined
at the Fair Market Value of the stock at the time such option is granted) for
each calendar year in which such option is outstanding at any time.

     4. Offering Periods. The Plan shall be implemented by consecutive Offering
        ----------------
Periods with a new Offering Period commencing on the first Trading Day on or
after February 1 and August 1 of each year, or on such other date as the
Administrator shall determine, and continuing thereafter until terminated in
accordance with Section 20; provided, however, that the first Offering Period
under the Plan shall commence with the first Trading Day on or after the date on
which the Securities and Exchange Commission declares the Company's Registration
Statement effective and end on the first Trading Day on or after February 1,
2003. The Administrator shall have the power to change the duration of Offering
Periods (including the commencement dates thereof) with respect to future
offerings without stockholder approval if such change is announced prior to the
scheduled beginning of the first Offering Period to be affected thereafter.

     5. Participation.
        -------------

        (a) First Offering Period. An Employee who has become a participant in
            ---------------------
the first Offering Period under the Plan pursuant to Section 3(a) shall be
entitled to continue his or her participation in such Offering Period only if he
or she submits to the Company's payroll office (or its designee) a properly
completed subscription agreement authorizing payroll deductions in the form
provided by the Administrator for such purpose (i) no earlier than the effective
date of the filing of the Company's Registration Statement on Form S-8 with
respect to the shares of Common Stock issuable under the Plan (the "Effective
Date") and (ii) no later than five (5) business days from the Effective Date
(the "Enrollment Window"). A participant's failure to submit the subscription
agreement during the Enrollment Window pursuant to this Section 5(a) shall
result in the automatic termination of his or her participation in the first
Offering Period under the Plan.

        (b) Subsequent Offering Periods. An Employee who is eligible to
            ---------------------------
participate in the Plan pursuant to Section 3(b) may become a participant by (i)
submitting to the Company's payroll office (or its designee), on or before a
date prescribed by the Administrator prior to an applicable Enrollment Date, a
properly completed subscription agreement authorizing payroll deductions in the
form provided by the Administrator for such purpose, or (ii) following an
electronic or other enrollment procedure prescribed by the Administrator.

                                      -4-

<PAGE>

     6. Payroll Deductions.
        ------------------

        (a) At the time a participant enrolls in the Plan pursuant to Section 5,
he or she shall elect to have payroll deductions made on each payday during the
Offering Period in an amount not exceeding 10% of the Compensation which he or
she receives on each such payday.

        (b) Payroll deductions authorized by a participant shall commence on the
first payday following the Enrollment Date and shall end on the last payday in
the Offering Period to which such authorization is applicable, unless sooner
terminated by the participant as provided in Section 10; provided, however, that
for the first Offering Period under the Plan, payroll deductions shall commence
on the first payday on or following the end of the Enrollment Window.

        (c) All payroll deductions made for a participant shall be credited to
his or her account under the Plan and shall be withheld in whole percentages
only. A participant may not make any additional payments into such account.

        (d) A participant may discontinue his or her participation in the Plan
as provided in Section 10, or may change the rate of his or her payroll
deductions during the Offering Period by (i) properly completing and submitting
to the Company's payroll office (or its designee), on or before a date
prescribed by the Administrator prior to an applicable Exercise Date, a new
subscription agreement authorizing the change in payroll deduction rate in the
form provided by the Administrator for such purpose, or (ii) following an
electronic or other procedure prescribed by the Administrator. If a participant
has not followed such procedures to change the rate of payroll deductions, the
rate of his or her payroll deductions shall continue at the originally elected
rate throughout the Offering Period and future Offering Periods (unless
terminated as provided in Section 10). The Administrator may, in its sole
discretion, limit the nature and/or number of payroll deduction rate changes
that may be made by participants during any Offering Period. Any change in
payroll deduction rate made pursuant to this Section 6(d) shall be effective as
of the first full payroll period following five (5) business days after the date
on which the change is made by the participant (unless the Administrator, in its
sole discretion, elects to process a given change in payroll deduction rate more
quickly).

        (e) Notwithstanding the foregoing, to the extent necessary to comply
with Section 423(b)(8) of the Code and Section 3(c), a participant's payroll
deductions may be decreased to zero percent (0%) at any time during an Offering
Period. Payroll deductions shall recommence at the rate originally elected by
the participant effective as of the beginning of the first Offering Period which
is scheduled to end in the following calendar year, unless terminated by the
participant as provided in Section 10.

        (f) At the time the option is exercised, in whole or in part, or at the
time some or all of the Company's Common Stock issued under the Plan is disposed
of, the participant must make adequate provision for the Company's federal,
state, or other tax withholding obligations, if any, which arise upon the
exercise of the option or the disposition of the Common Stock. At any time, the
Company may, but shall not be obligated to, withhold from the participant's
compensation the amount necessary for the Company to meet applicable withholding
obligations, including any

                                      -5-

<PAGE>

withholding required to make available to the Company any tax deductions or
benefits attributable to the sale or early disposition of Common Stock by the
Employee.

     7. Grant of Option. On the Enrollment Date of each Offering Period, each
        ---------------
Employee participating in such Offering Period shall be granted an option to
purchase on each Exercise Date during such Offering Period (at the applicable
Purchase Price) up to a number of shares of Common Stock determined by dividing
such participant's payroll deductions accumulated prior to such Exercise Date
and retained in the participant's account as of the Exercise Date by the
applicable Purchase Price; provided that in no event shall a participant be
permitted to purchase during the first Offering Period under the Plan more than
1,125 shares of Common Stock (subject to any adjustment pursuant to Section 19)
and during each subsequent Offering Period under the Plan more than 750 shares
of Common Stock (subject to any adjustment pursuant to Section 19), and provided
further that such purchase shall be subject to the limitations set forth in
Sections 3(c) and 13. The Employee may accept the grant of such option (i) with
respect to the first Offering Period under the Plan, by submitting a properly
completed subscription agreement in accordance with the requirements of Section
5(a) on or before the last day of the Enrollment Window, and (ii) with respect
to any future Offering Period under the Plan, by electing to participate in the
Plan in accordance with the requirements of Section 5(b). The Administrator may,
for future Offering Periods, increase or decrease, in its absolute discretion,
the maximum number of shares of Common Stock that a participant may purchase
during each Offering Period. Exercise of the option shall occur as provided in
Section 8, unless the participant has withdrawn pursuant to Section 10. The
option shall expire on the last day of the Offering Period.

     8. Exercise of Option.
        ------------------

        (a) Unless a participant withdraws from the Plan as provided in Section
10, his or her option for the purchase of shares of Common Stock shall be
exercised automatically on the Exercise Date, and the maximum number of full
shares subject to option shall be purchased for such participant at the
applicable Purchase Price with the accumulated payroll deductions in his or her
account. No fractional shares of Common Stock shall be purchased; any payroll
deductions accumulated in a participant's account which are not sufficient to
purchase a full share shall be retained in the participant's account for the
subsequent Offering Period, subject to earlier withdrawal by the participant as
provided in Section 10. Any other monies left over in a participant's account
after the Exercise Date shall be returned to the participant. During a
participant's lifetime, a participant's option to purchase shares hereunder is
exercisable only by him or her.

        (b) Notwithstanding any contrary Plan provision, if the Administrator
determines that, on a given Exercise Date, the number of shares of Common Stock
with respect to which options are to be exercised may exceed (i) the number of
shares of Common Stock that were available for sale under the Plan on the
Enrollment Date of the applicable Offering Period, or (ii) the number of shares
of Common Stock available for sale under the Plan on such Exercise Date, the
Administrator may in its sole discretion (x) provide that the Company shall make
a pro rata allocation of the shares of Common Stock available for purchase on
such Enrollment Date or Exercise Date, as applicable, in as uniform a manner as
shall be practicable and as it shall determine in its sole discretion to be
equitable among all participants exercising options to purchase Common Stock on
such Exercise Date, and continue all Offering Periods then in effect, or (y)
provide that the Company shall make a pro rata allocation of the shares of
Common Stock available for purchase on such Enrollment Date

                                      -6-

<PAGE>

or Exercise Date, as applicable, in as uniform a manner as shall be practicable
and as it shall determine in its sole discretion to be equitable among all
participants exercising options to purchase Common Stock on such Exercise Date,
and terminate any or all Offering Periods then in effect pursuant to Section 20.
The Company may make pro rata allocation of the shares of Common Stock available
on the Enrollment Date of any applicable Offering Period pursuant to the
preceding sentence, notwithstanding any authorization of additional shares of
Common Stock for issuance under the Plan by the Company's shareholders
subsequent to such Enrollment Date.

     9. Delivery. As soon as administratively practicable after each Exercise
        --------
Date on which a purchase of shares of Common Stock occurs, the Company shall
arrange the delivery to each participant, as appropriate, the shares purchased
upon exercise of his or her option in a form determined by the Administrator (in
its sole discretion). No participant shall have any voting, dividend, or other
shareholder rights with respect to shares of Common Stock subject to any option
granted under the Plan until such shares have been purchased and delivered to
the participant as provided in this Section 9.

     10. Withdrawal.
         ----------

        (a) Under procedures established by the Administrator, a participant may
withdraw all but not less than all the payroll deductions credited to his or her
account and not yet used to exercise his or her option under the Plan at any
time by (i) submitting to the Company's payroll office (or its designee) a
written notice of withdrawal in the form prescribed by the Administrator for
such purpose, or (ii) following an electronic or other withdrawal procedure
prescribed by the Administrator. All of the participant's payroll deductions
credited to his or her account shall be paid to such participant as promptly as
practicable after the effective date of his or her withdrawal and such
participant's option for the Offering Period shall be automatically terminated,
and no further payroll deductions for the purchase of shares shall be made for
such Offering Period. If a participant withdraws from an Offering Period,
payroll deductions shall not resume at the beginning of the succeeding Offering
Period unless the participant re-enrolls in the Plan in accordance with the
provisions of Section 5.

        (b) A participant's withdrawal from an Offering Period shall not have
any effect upon his or her eligibility to participate in any similar plan which
may hereafter be adopted by the Company or in succeeding Offering Periods which
commence after the termination of the Offering Period from which the participant
withdraws.

     11. Termination of Employment. In the event a participant ceases to be an
         -------------------------
Employee of an Employer, his or her option shall remain exercisable for a period
of three (3) months from the date of such Employee's termination. Upon the
expiration of such three (3) month period or a date prior to the expiration of
such three (3) month period if requested by the participant, any payroll
deductions credited to such participant's account during the Offering Period but
not yet used to purchase shares of Common Stock under the Plan shall be returned
to such participant or, in the case of his or her death, to the person or
persons entitled thereto under Section 15, and such participant's option shall
be automatically terminated. The preceding sentence notwithstanding, a
participant who receives payment in lieu of notice of termination of employment
shall be treated as continuing to be an Employee for the participant's customary
number of hours per week of employment during the period in which the
participant is subject to such payment in lieu of notice.

                                      -7-

<PAGE>

     12. Interest. No interest shall accrue on the payroll deductions of a
         --------
participant in the Plan.

     13. Stock.
         -----

        (a) Subject to adjustment upon changes in capitalization of the Company
as provided in Section 19, the maximum number of shares of Common Stock which
shall be made available for sale under the Plan shall be 500,000 shares plus an
annual increase to be added on the first day of the Company's fiscal year
beginning in fiscal year 2003, equal to the lesser of (i) 750,000 shares, (ii)
2% of the outstanding shares on such date or (iii) an amount determined by the
Board.

        (b) Shares of Common Stock to be delivered to a participant under the
Plan shall be registered in the name of the participant or in the name of the
participant and his or her spouse.

     14. Administration. The Plan shall be administered by the Board or a
         --------------
committee of members of the Board who shall be appointed from time to time by,
and shall serve at the pleasure of, the Board. The Administrator shall have full
and exclusive discretionary authority to construe, interpret and apply the terms
of the Plan, to determine eligibility and to adjudicate all disputed claims
filed under the Plan. The Administrator, in its sole discretion and on such
terms and conditions as it may provide, may delegate to one or more individuals
all or any part of its authority and powers under the Plan. Every finding,
decision and determination made by the Administrator (or its designee) shall, to
the full extent permitted by law, be final and binding upon all parties.

     15. Designation of Beneficiary.
         --------------------------

        (a) A participant may designate a beneficiary who is to receive any
shares of Common Stock and cash, if any, from the participant's account under
the Plan in the event of such participant's death subsequent to an Exercise Date
on which the option is exercised but prior to delivery to such participant of
such shares and cash. In addition, a participant may designate a beneficiary who
is to receive any cash from the participant's account under the Plan in the
event of such participant's death prior to exercise of the option. If a
participant is married and the designated beneficiary is not the spouse, spousal
consent shall be required for such designation to be effective.

        (b) Such designation of beneficiary may be changed by the participant at
any time. In the event of the death of a participant and in the absence of a
beneficiary validly designated under the Plan who is living at the time of such
participant's death, the Company shall deliver such shares and/or cash to the
executor or administrator of the estate of the participant, or if no such
executor or administrator has been appointed (to the knowledge of the Company),
the Company, in its discretion, may deliver such shares and/or cash to the
spouse or to any one or more dependents or relatives of the participant, or if
no spouse, dependent or relative is known to the Company, then to such other
person as the Company may designate.

        (c) All beneficiary designations under this Section 15 shall be made in
such form and manner as the Administrator may prescribe from time to time.

     16. Transferability. Neither payroll deductions credited to a participant's
         ---------------
account nor any rights with regard to the exercise of an option or to receive
shares of Common Stock under the Plan may be assigned, transferred, pledged or
otherwise disposed of in any way (other than by will, the

                                      -8-

<PAGE>

laws of descent and distribution or as provided in Section 15) by the
participant. Any such attempt at assignment, transfer, pledge or other
disposition shall be without effect, except that the Company may treat such act
as an election to withdraw from an Offering Period in accordance with Section
10.

     17. Use of Funds. All payroll deductions received or held by the Company
         ------------
under the Plan may be used by the Company for any corporate purpose, and the
Company shall not be obligated to segregate such payroll deductions. Until
shares of Common Stock are issued under the Plan (as evidenced by the
appropriate entry on the books of the Company or of a duly authorized transfer
agent of the Company), a participant shall only have the rights of an unsecured
creditor with respect to such shares.

     18. Reports. Individual accounts shall be maintained for each participant
         -------
in the Plan. Statements of account shall be given to participating Employees at
least annually, which statements shall set forth the amounts of payroll
deductions, the Purchase Price, the number of shares of Common Stock purchased
and the remaining cash balance, if any.

     19. Adjustments, Dissolution, Liquidation or Change of Control.
         ----------------------------------------------------------

        (a) Adjustments. In the event that any dividend or other distribution
            -----------
(whether in the form of cash, Common Stock, other securities, or other
property), recapitalization, stock split, reverse stock split, reorganization,
merger, consolidation, split-up, spin-off, combination, repurchase, or exchange
of Common Stock or other securities of the Company, or other change in the
corporate structure of the Company affecting the Common Stock such that an
adjustment is determined by the Administrator (in its sole discretion) to be
appropriate in order to prevent dilution or enlargement of the benefits or
potential benefits intended to be made available under the Plan, then the
Administrator shall, in such manner as it may deem equitable, adjust the number
and class of Common Stock which may be delivered under the Plan, the Purchase
Price per share and the number of shares of Common Stock covered by each option
under the Plan which has not yet been exercised, and the numerical limits of
Sections 7 and 13.

        (b) Dissolution or Liquidation. In the event of the proposed dissolution
            --------------------------
or liquidation of the Company, the Offering Period then in progress shall be
shortened by setting a new Exercise Date (the "New Exercise Date"), and shall
terminate immediately prior to the consummation of such proposed dissolution or
liquidation, unless provided otherwise by the Board. The New Exercise Date shall
be before the date of the Company's proposed dissolution or liquidation. The
Board shall notify each participant in writing, at least ten (10) business days
prior to the New Exercise Date, that the Exercise Date for the participant's
option has been changed to the New Exercise Date and that the participant's
option shall be exercised automatically on the New Exercise Date, unless prior
to such date the participant has withdrawn from the Offering Period as provided
in Section 10.

        (c) Merger or Change of Control. In the event of a merger or Change of
            ---------------------------
Control, each outstanding option shall be assumed or an equivalent option
substituted by the successor corporation or a Parent or Subsidiary of the
successor corporation. In the event that the successor corporation refuses to
assume or substitute for the option, any Offering Periods then in progress shall
be shortened by setting a new Exercise Date (the "New Exercise Date") and any
Offering Periods then in progress shall end on the New Exercise Date. The New
Exercise Date shall be before the

                                      -9-

<PAGE>

date of the Company's proposed merger or Change of Control. The Board shall
notify each participant in writing, at least ten (10) business days prior to the
New Exercise Date, that the Exercise Date for the participant's option has been
changed to the New Exercise Date and that the participant's option shall be
exercised automatically on the New Exercise Date, unless prior to such date the
participant has withdrawn from the Offering Period as provided in Section 10.

     20. Amendment or Termination.
         ------------------------

        (a) The Administrator may at any time and for any reason terminate or
amend the Plan. Except as provided in Section 19, no such termination can affect
options previously granted under the Plan, provided that an Offering Period may
be terminated by the Administrator on any Exercise Date if the Administrator
determines that the termination of the Plan is in the best interests of the
Company and its stockholders. Except as provided in Section 19 and this Section
20, no amendment may make any change in any option theretofore granted which
adversely affects the rights of any participant. To the extent necessary to
comply with Section 423 of the Code (or any successor rule or provision or any
other applicable law, regulation or stock exchange rule), the Company shall
obtain stockholder approval in such a manner and to such a degree as required.

        (b) Without stockholder consent and without regard to whether any
participant rights may be considered to have been "adversely affected," the
Administrator shall be entitled to change the Offering Periods, limit the
frequency and/or number of changes in the amount withheld during an Offering
Period, establish the exchange ratio applicable to amounts withheld in a
currency other than U.S. dollars, permit payroll withholding in excess of the
amount designated by a participant in order to adjust for delays or mistakes in
the Company's processing of properly completed withholding elections, establish
reasonable waiting and adjustment periods and/or accounting and crediting
procedures to ensure that amounts applied toward the purchase of Common Stock
for each participant properly correspond with amounts withheld from the
participant's Compensation, and establish such other limitations or procedures
as the Administrator determines in its sole discretion advisable which are
consistent with the Plan.

        (c) In the event the Administrator determines that the ongoing operation
of the Plan may result in unfavorable financial accounting consequences, the
Board may, in its discretion and, to the extent necessary or desirable, modify
or amend the Plan to reduce or eliminate such accounting consequence including,
but not limited to:

          (i) altering the Purchase Price for any Offering Period including an
Offering Period underway at the time of the change in Purchase Price;

          (ii) shortening any Offering Period so that Offering Period ends on a
new Exercise Date, including an Offering Period underway at the time of the
Board action; and

          (iii) allocating shares.

Such modifications or amendments shall not require stockholder approval or the
consent of any Plan participants.

     21. Notices. All notices or other communications by a participant to the
         -------
Company under or in connection with the Plan shall be deemed to have been duly
given when received in the form

                                      -10-

<PAGE>

specified by the Company at the location, or by the person, designated by the
Company for the receipt thereof.

     22. Conditions Upon Issuance of Shares. Shares of Common Stock shall not be
         ----------------------------------
issued with respect to an option under the Plan unless the exercise of such
option and the issuance and delivery of such shares pursuant thereto shall
comply with all applicable provisions of law, domestic or foreign, including,
without limitation, the Securities Act of 1933, as amended, including the rules
and regulations promulgated thereunder, the Exchange Act 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.

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

     23. Term of Plan. The Plan shall become effective upon the earlier to occur
         ------------
of its adoption by the Board or its approval by the stockholders of the Company.
It shall continue in effect until terminated under Section 20.

                                      -11-

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