Document:

DISTRIBUTION AGREEMENT

THIS AGREEMENT ("Agreement") is made with effect from January 1,
1998 by and between Eclipse Entertainment Group, Inc. ("Eclipse")
located at 10900 N.E. 8th Street, Suite 900, Bellevue, WA 98004
and Westar Entertainment, Inc.  ("Westar") located at 1732 S.
Sepulveda Boulevard, Los Angeles, CA 90025.

Whereas Eclipse is a producer of motion pictures for worldwide
distribution, and is also in the business of acquiring ownership
and worldwide distribution rights of motion pictures produced by
other independent producers (which motion pictures, whether
produced by Eclipse or acquired by Eclipse now or hereafter
during the Term of this Agreement are herein called the "Eclipse
Pictures").

And whereas Westar is a worldwide distributor of motion pictures.

In consideration of the respective covenants, conditions,
warranties and representations hereinafter contained, and for
other good and valuable consideration, receipt of which is hereby
acknowledged, the parties agree as follows:

Exclusive Grant of License:   Eclipse hereby engages Westar to be
the exclusive worldwide distributor of Eclipse Pictures.  Westar
hereby accepts the exclusive distribution rights in and to the
Eclipse Pictures, including but not limited to, the right to
exhibit, distribute, lease, rent, sub-distribute, sell, reissue,
release, transmit, broadcast, project, exploit, advertise,
publicize, promote and market the Eclipse Pictures, prints and
trailers thereof, excerpts, clips or portions therefrom, the
sound and music synchronized therewith, the title or titles
thereof (including the right to change the English language title
and to authorize foreign language titles), and any by-products
thereof, throughout the Territory (as defined below) and all
incidental rights pertaining thereto necessary to allow Westar
the full exercise of the rights granted herein, by any and all
media, means, methods, systems and processes, whether now known
or hereafter devised, recognized or contemplated (including
interactive, CD-ROM, TV series, live stage and publishing), and
in all sizes and gauges of film tape and other material now known
or hereafter developed, and to print, reprint, publish, copy and
vend the Eclipse Pictures in any and all languages, in any form
or media and in any style or manner Westar may desire; and to
license others to exercise any or all of the rights, powers and
privileges of Westar under this Agreement.  Said rights shall
hereinafter collectively defined as the "Rights".  The Rights
include all rights of any nature whether now known or hereafter
conceived and the licenses or privileges, under copyright or
otherwise to: (1) license the Eclipse Pictures in any and all
media, whether now known or hereafter devised, including, but not
limited to, cinematic rights (theatrical, non-theatrical and
public video), video rights (including free, pay, cable,
satellite and broadcast); (2) the license of all music and lyrics
synchronized with or written for or only in connection with the
Eclipse Pictures; (3) the right to assign, license, sub-license
or otherwise delegate any or all of the aforesaid, in accordance
with the terms herein thereof; and (4) the right, but not the
obligation, to maintain, protect and defend copyright of the
Eclipse Pictures and/or any similar protection which may be
available in the Territory but only on behalf of Eclipse.
Further, Westar shall have the right to register the entire
copyright in the Eclipse Pictures in any name as herein provided
in any jurisdiction in the Territory which permits or requires
registration or copyrights as a condition to obtain any remedies
for copyright infringement, to give constructive notice of
copyright ownership, or for other purposes.  It is specifically
understood that the copyright in the Eclipse Pictures shall
remain with Eclipse.

Delivery of the Eclipse Pictures:   Delivery of the Eclipse
Pictures to Westar ("Delivery") at Eclipse's sole expense except
as otherwise provided herein, is the essence of this Agreement.
Delivery of each Eclipse Picture shall be as soon as practical
for Eclipse.  Westar reserves the right to check the quality of
all materials delivered hereunder at a laboratory of its choice.
All materials must pass laboratory inspection and must be
satisfactory for the manufacture of first class quality release
copies of each Eclipse Picture.  Should Eclipse not complete
Delivery, any costs that Westar may incur in doing so may be
deducted from payments otherwise due to Eclipse hereunder.
Should Westar, its licensees or sub-distributors require any
Delivery materials which have not otherwise been provided by
Eclipse, Westar may in its discretion, but without obligation
therefor, arrange to have such Delivery materials made, and shall
deduct the cost thereof from payment otherwise due to Eclipse
hereunder.

Territory:   The Territory ("Territory") for this Agreement shall
be the Universe.  Territory shall be deemed to include, but not
be limited to all of the possessions and territories of the
countries and nations in the World including, but not limited to,
all armed service installations, embassies and ships at sea
wherever located, and oil platforms flying flags of any of such
nations or countries.  The Territory shall include, but not be
limited to, all rights to use the Eclipse Pictures in or on any
airplane, airline or other transportation facilities which may be
flying the flag of any country or nation

Term:   The Initial Term of this Distribution Agreement shall
commence on the execution of hereof and continue for five (5)
years.  After expiration of the Initial Term, this Distribution
Agreement shall continue from year to year unless cancelled by
either party on sixty (60) days written notice.  No license to a
third party shall be granted longer than ten years without
Eclipse's prior written consent.

Sales Policies:   Westar shall use its good faith professional
business efforts in the exploitation of the Eclipse Pictures
pursuant hereto, Eclipse agrees that Westar and any sub-
distributors or licensees of Westar shall have complete authority
to distribute the Eclipse Pictures and to exercise the rights
granted herein in accordance with such sales methods, policies
and terms as they may, in their good faith discretion, determine.
Except as provided herein, Westar and such sub-distributors shall
have the broadest possible latitude in the distribution of the
Eclipse Pictures and the exercise of their judgement in all
matters pertaining thereto shall be final.  Westar has not made
any express or implied representation, warranty, guarantee or
agreement as to the amount of Gross Receipts which will be
derived from the distribution of the Eclipse Pictures, nor has
Westar made any express or implied representation, warranty,
guarantee or agreement that there will be any sums payable to
Eclipse hereunder or that the Eclipse Pictures will be favorably
received by the exhibitors or by the public or will be
distributed continuously.  In no event shall Westar incur any
liability to Eclipse hereunder based upon any claim by Eclipse
that Westar has failed to realize receipts or revenues which
should or could have been realized.  Eclipse acknowledges that
Westar may simultaneously with the distribution of the Eclipse
Pictures distribute pictures produced and co-produced by it, or
others, or both, in competition with the Eclipse Pictures, and
Westar shall be under no duty to secure for the Eclipse Pictures
as favorable prices and terms as it secures for films produced by
it, by others or both, it being understood that without in any
way limiting the latitude or discretion of Westar or its
licensees hereunder, Westar agrees to use good faith criteria in
establishing the prices and terms for the Eclipse Pictures.
Wherever a licensee pays either a flat sum or percentage of the
receipts, or both, or makes other payments for the right to
exhibit a group of pictures under an agreement, Westar will
specify under separate contract what portion of the license
payments apply to the respective pictures in the group, and said
allocation shall be fair and equitable to Eclipse but shall in no
way be less that the scheduled minimum for that Territory.

Distribution Fees:   Westar's distribution fees ("Distribution
Fee") with respect to the Gross Receipts (as defined below) from
the Rights of the Eclipse Pictures shall be Fifty Percent (50%)
of the Gross Receipts from the exploitation of the Rights in the
Territory.  Westar shall remit the balance of Gross Receipts,
after deducting and retaining Distribution Fees, to Eclipse.

Gross Receipts:   As used herein, the term "Gross Receipts" shall
mean the aggregate of all monies actually received (and not
subject to forfeiture or return) by Westar from its licensees or
sub-distributors from the sale, licensing, marketing and
exploitation of the Eclipse Pictures and any use of the Rights in
the Territory.

Distribution Expenses:   The term "Distribution Expenses" shall
include, but not be limited to, expenses incurred with respect to
trailers, art work, promotional materials, delivery materials,
advertising, and any and all expenses incurred by Westar for the
sales, marketing and distribution of the Eclipse Pictures, the
exploitation of the Rights, and reasonable attorney's fees and
costs for any third party claims or causes of action related to
the Eclipse Pictures.  All Distribution Expenses incurred by
Westar shall be paid to, or reimbursed to, Westar by Eclipse as
and when incurred by Westar.

Editing, Resetting and Foreign Versions:   Westar may make or
cause to be made and/or authorize others to make English-language
and foreign-language versions of the Eclipse Pictures, whether
dubbed versions, superimposed versions or otherwise, all with
prior consultation with Eclipse.  Eclipse will pay Westar for
same as a Distribution Expense if not paid by the territorial
distributor.  Westar may also grant to any other persons, firms,
corporation or entities the right to make foreign-language
versions in the Territory during the Term.  Westar, with the
prior written consent of Eclipse, may change the title of any
Eclipse Pictures in connection with its distribution in all or
any part of the Territory if, in the judgement of Westar, it is
desirable or expedient to do so.

Music Synchronization License Rights:   Eclipse hereby licenses
to Westar for the Term and Territory the synchronization rights
in the Eclipse Pictures, only to be used in connection with the
distribution or exploitation of the Eclipse Pictures in all media
throughout the World.  All other music rights including
performance rights are held by Eclipse.

Westar's Credit:   Westar and its designees shall receive the
following credits with respect to the exploitation of the Eclipse
Pictures:

A.  On-Screen Credit:

(i)  A first card, single card, front end message presentation
credit on the screen, consisting of Westar's optical logo and
types credit reading "Westar Entertainment Presents" in a size
equal to the regular title, followed by Eclipse credits.

B.  Credit in Paid Advertising:

(i)  "Westar Entertainment Presents" above or preceding the
regular title in first position, along with the Westar logo.

Execution of Documents:   Eclipse and Westar shall execute and
deliver any and all documents which may be necessary or
appropriate to fully implement the provisions of this
Distribution Agreement.

Eclipse's Warranties:   Eclipse specifically represents and
warrants that (i) Eclipse has the full authority to grant the
Rights granted to Westar herein; (ii) that the Rights are and
will be free and clear of any liens, encumbrances, restrictions,
claims or rights inconsistent with or which could adversely
affect any of the Rights granted herein to Westar, and the
Eclipse Pictures as delivered will be free from any outstanding
payable of any kind; (iii) that the grant of the Rights to Westar
does not interfere with or infringe on the rights of any third
party; (iv) that all rights to music, story, name, likeness,
pictures caricatures, dialogue, voice-overs, the literary
material upon which the Eclipse Pictures are based and to any
other material of any nature whatsoever appearing, used or
recorded in the Eclipse Pictures have been and will be obtained
in proper form for the free and unrestricted use and exploitation
of the Eclipse Pictures in the Territory; (v) that Eclipse has
and will have the right to issue and authorize publicity
concerning persons appearing in or rendering services in
connection with the Eclipse Pictures or appearing in the paid
advertising of the billing, and has and will have the right to
use, reproduce, transmit, broadcast , exploit, publicize and
exhibit their names, photographs, likeness, voices and other
sound effects, as well as recording, transcriptions, films and
other reproductions thereof in connection with the Rights granted
herein to Westar; (vi)that there are and will be no restrictions
from Eclipse or third parties of any kind which could or would
prevent, limit or impair Westar's sole and exclusive Rights or
its right to any use or exploitation thereof; (vii) except as
provided herein Westar will not be obligated to make any payments
to anyone other than as expressly specified in this Distribution
Agreement in connection with the exercise by Westar, its
licensees or sub-distributors of any license rights granted,
including but not limited to, any guild, rerun, reuse, pension,
deferment or residual payments of any kind, nature or
description; (viii) that no third party is entitled to share
Gross Receipts of the Eclipse Pictures in any way which would
limit Westar's Distribution Fee as provided for herein; (ix) that
none of the Eclipse Pictures have been or will be released,
distributed or exhibited by any means or media whatsoever in any
part of the Territory, nor banned by censors of, or refused
import permits for any part of the Territory; (x) Eclipse has not
and will not exercise any right in the Eclipse Pictures which
might tend to derogate from or compete with the Rights herein
granted to Westar; (xi) Westar will quietly and peacefully enjoy
and possess all Rights without hindrance on the part of any
person, firm, corporation or entity,; and (xii) Eclipse further
represents and warrants that none of the Eclipse Pictures, nor
any materials contained therein or synchronized therewith, nor
the exercise of any rights or license t herein, will defame or
constitute unfair competition with any third party, violates or
will violate, infringes or will infringe, any trademark, trade
name, copyright or civil property, right of privacy, right of
publicity or "moral right of authors", or any law or regulation
or other right whatsoever of, or slanders or libels, any person,
firm, corporation, association or entity whatsoever.  Westar
warrants that it will not make any changes in the Eclipse
Pictures or perform any act that would subject Westar to any
Liability whatsoever.

Infringements and Collection Suits:   Westar may, in the name of
Eclipse, or otherwise, take such steps as Westar may deem
reasonably necessary or appropriate by action-at-law or otherwise
to prevent unauthorized exhibition or distribution of the Eclipse
Pictures or any infringement upon the rights of Eclipse or Westar
under this Distribution Agreement, and Westar or its nominee may,
as Eclipse's attorney-in-fact, execute, acknowledge, verify and
deliver all instruments pertaining thereto in the name of and on
behalf of Eclipse only in respect to infringement and collection
suits.  Westar may also take such steps as Westar shall deem
necessary or appropriate by action-at-law or otherwise to recover
moneys due pursuant to any agreement relating to the exploitation
of the Rights.  All costs and expenses, including reasonable
attorneys fees, in connection with such matters shall be borne by
Westar but shall be recoupable by Westar from Eclipse.

Offset Rights:   In the event any written claim or lawsuit is
instituted against Westar or any licensee or sub-distributor of
Westar, which written claim or lawsuit (the "Liability") on a
claim inconsistent with any of Eclipse's warranties,
representations or agreements hereunder, Westar may offset any
moneys that Westar reasonably deem necessary, now or hereafter
payable to or for the account of Eclipse, in the amount of the
Liability plus Westars reasonable attorney's fees and costs,
whether or not the Liability has been reduced to judgement.  In
addition, pending the final determination of such Liability,
Westar may withhold from such moneys payable to Eclipse hereunder
such amount as Westar may reasonably deem necessary to cover the
Liability plus Westar's reasonable attorney's fees and costs.
Westar may compromise or settle such Liability upon terms as
Westar may deem reasonable.

Indemnity:

A.  Each party (in this capacity referred to as "Indemnitor")
agrees to indemnify and hold the other party (in this capacity
referred to as "Indemnitee") and its successors in interest.
licensees and assigns, the officers, directors agents,
shareholders, attorneys, and employees of the foregoing (in this
capacity referred to as "Indemnities") harmless from and against
and all costs, claims, charges, recoveries, losses, expenses
(including, but not limited tom reasonable attorney's fees),
liabilities, judgements, settlements, compromises or any other
out-of-pocket loss (hereinafter collectively referred to as a
"Loss") which may be made, asserted, maintained, secured, against
or suffered by Indemnities, or any of them caused by any breach
or alleged breach by Indemnitor of any provision of this
Distribution Agreement.

B.  Each party agrees to give the other party timely written
notice of any claim, demand or action which is or may be subject
to this Paragraph including A or B hereof ("Demand") promptly
after obtaining knowledge thereof and shall make available to the
other party all documents and information in possession of that
party material the Demand.  Within ten (10) days from receipt of
such notice, the applicable Indemnitor agrees to assume the
defense of the demand on behalf of itself and the applicable
Indemnities.  Any Indemnitee shall have the right to participate
in the defense of any Demand through counsel of their choice at
their cost, if the applicable Indemnitor fails to promptly assume
the defense of any reasonable Demand, any Indemnitee may do so
and the applicable Indemnitor shall promptly reimburse all
Indemnitees for all costs, expenses (including, but not limited
to, reasonable attorney's fees) incurred in connection therewith
as such are incurred.  Indemnitees shall not settle or compromise
any Demand without prior written consent of any Indemnitor,
unless that Indemnitor shall fail or refuse for any reason to
reimburse costs and expenses withheld.  Both parties agree to
fully cooperate with the other in the defense of all Demands
initially made by third parties, including but not limited to,
prompt compliance with all reasonable discovery requests.

Assignment, Successors:   Both parties may assign this
Distribution Agreement provided that such assignment does not
release the assignor from assigner's responsibilities hereunder
and provided that the other party is advised of such assignment
before it is effected.  This Distribution  Agreement shall inure
to the benefit of and be binding upon the heirs, executors,
administrators, assignees and successors in interest of the
parties hereto.

Applicable Law:   This Agreement shall be construed, interpreted
and enforced in accordance to the laws of the State of California
applicable to agreements executed and to be wholly performed
within such state and without regard to the conflict or choice of
law provisions thereof.  All proceedings commenced to enforce
this Agreement shall be decided before a sole arbitrator in the
County of Los Angeles, State of California before the American
Film Association Arbitration Tribunal in accordance with AFMA
rules and procedures.

Partial Invalidity:   If any provisions of this Distribution
Agreement is held invalid or unenforceable by any court of final
jurisdiction, it is the intent of the parties that such provision
shall be ineffective only to the extent of such prohibition or
invalidity and that all other provisions of this Distribution
Agreement shall be construed to remain fully valid, enforceable
and binding on the parties.

Interpretation:   Wherever any words are used herein in a gender
they shall also be construes as though they were in the opposite
gender in all cases where they would apply and wherever any words
are used herein the singular form they shall be construed as
though they were also used in the plural form in all cases where
they would so apply.

Relationship of Parties:   The relationship between Eclipse and
Westar is that of creditor and debtor with respect to sums due
pursuant to this Agreement.  Nothing contained herein shall be
construed so as to create a joint venture or partnership between
Eclipse and Westar.  Except as otherwise specifically set forth
herein, neither Eclipse nor Westar shall be authorized or
empowered to make any representation or commitment or to perform
any act which shall be binding on the other party unless
expressly authorized or empowered in writing.

Headings:   The descriptive headings of the paragraphs of this
Agreement are inserted solely for convenience of reference and
are not part of this Agreement and are not intended to govern,
limit, amplify or aid in the construction of any of the terms or
provisions of this Agreement.

Counterparts:   This Agreement may be signed in one or more
counterparts, each of which shell be deemed an original, but all
of which shall constitute one and the same instrument.  The
respective signatures on each of such counterparts shall
constitute a binding agreement by and between the parties.

Notices:   All notices, payments or approvals which either party
is required or may desire to give or to serve upon the other
party under this Distribution Agreement shall be in writing and
may be delivered personally, by facsimile transmission, by
overnight courier services or by registered or certified mail,
return receipt requested, prepaid first class mail to the said
party at the address set forth below or such other address of
which it may hereafter give notice to the other party in writing.
A copy of any notice sent by facsimile transmission must also be
sent by regular mail.  Any notice sent by facsimile transmission
shall be deemed served the same day if it is a business day
during normal business hours of the recipient or the next
business day is received after recipient's normal business hours
or on a Saturday, Sunday or legal holiday.  Any notice sent by
overnight courier service shall be deemed served the next
business day.  Any notice sent by certified or registered prepaid
first class mail shall be deemed served seven (7) days after it
shall be deposited with the Canadian or United States Postal
Service.

Notices to Producer:

Eclipse Entertainment Group, Inc.
10900 N.E. 8th Street, Suite 900
Bellevue, WA 98004
Tel: (425) 990-5969   Fax: (425) 990-5979

Notices to Westar:

Westar Entertainment, Inc.
1732 S. Sepulveda Boulevard
Los Angeles, CA 90025
Tel: (310)477-4144     Fax: (310)477-6690

Accounting:  Westar shall furnish Eclipse with detailed and
itemized reports quarterly, said reports to indicate Gross
Receipts, Distribution Fees and Distribution Expenses, and shall
be accompanied by Eclipse's Share of Gross Receipts shown to be
due.  Any objection to a report shall be made in writing within
six (6) months of the rendering of same and if no objection has
been made said report shall be deemed final and any objection
thereto deemed waived and action thereon barred.

Entire Agreement:   This Distribution Agreement constitutes the
complete and entire agreement and understanding between the
parties pertaining to the subject matter contained herein and
supercedes all prior and contemporaneous agreements,
representation and understandings, whether oral or written, of
the parties.  No supplement, modification or amendment of this
Distribution Agreement shall be binding unless executed in
writing by all parties.  Eclipse and Westar shall execute any and
all documents and instruments and shall do all acts which may be
necessary or appropriate to fully implement the provisions of
this Distribution Agreement.

Arbitration:   Any controversy, dispute or claim arising out of
the interpretation, performance, breach or alleged breach of this
Distribution Agreement, shall be resolved by binging arbitration,
before a sole arbitrator, at the request of either party, in
accordance with the rules of the American Film Marketing
Association.  The arbitrator shall apply California substantive
law and the California Evidence Code to the Proceedings.  The
arbitrator shall have the power to grant all legal and equitable
remedies and award compensatory damages provided by California
law, including the power to award punitive damages in the event
of gross misconduct or fraud, that Eclipse may not enjoin the
distribution of any Eclipse Picture for any reason and shall be
limited to its damages at law for any claims arising under or in
connection with this Distribution Agreement.  The arbitrator
shall prepare in writing and provide to the parties an award
including factual findings and the errors of law or legal
reasoning, and the award may be vacated or corrected pursuant to
California Code of Civil Procedure Sections 1286.2 or 1286.6 for
any such error.  All such proceedings shall take place in the
County of Los Angeles, State of California.

Default and Cure:   Neither party shall be liable for its breach
of the terms of this Distribution Agreement unless it shall have
received written notice of such breach from the non-breaching
party and the breaching party shall not within fifteen (15) days
after receipt of such notice have cured said breach.  Such cure
right shall not be applicable to breaches which are incapable of
being cured.  In the event Westar or Eclipse materially breaches
this Distribution Agreement and does not cure said breach in
accordance with the terms hereof, Westar or Eclipse may elect to
terminate this Distribution Agreement and all of its obligations
hereunder, it being understood that the exercise by Westar or
Eclipse of its rights or remedies under any one provision of this
Distribution Agreement shall not limit or affect its rights or
remedies concurrently or subsequently to exercise any other right
or remedy and shall be in addition to such other rights or
remedies as Westar or Eclipse may have at law, in equity, under
this Distribution Agreement or otherwise.  All of Westar's and
Eclipse's rights and remedies under this Distribution Agreement
shall be cumulative.

No Waiver:   No waiver of any of the provisions of this
Distribution Agreement shall be deemed, or shall constitute a
waiver of any other provision, whether or not similar, dissimilar
or identical, nor shall any waiver constitute a continuing
waiver.  Nether party shall be deemed to have waived any
provision hereof except in writing signed by the party to be
charged.

Construction:   This Distribution Agreement has been negotiated
and approved by the parties hereto and notwithstanding any rule
or maxim of construction to the contrary, any ambiguity or
uncertainty in this Agreement shall not be construed against
either party based upon authorship of any of the provisions
hereof.

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

ECLIPSE ENTERTAINMENT  GROUP, INC

By: /s/  Arthur Birzneck
Arthur Birzneck, President

Date: January 1, 1998

WESTAR ENTERTAINMENT GROUP, INC.

By: /s/  Franco Colombu
Franco Columbu, President

Date: January 1, 1998<PAGE>   1
                                                                    Exhibit 10.9

                            SEAGATE TECHNOLOGY, INC.

                   AMENDED AND RESTATED DIRECTORS' OPTION PLAN
                        (AS AMENDED THROUGH JANUARY 1997)

        1. Purposes of the Plan. The purposes of this Directors' Option Plan are
to attract and retain the best available personnel for service as Directors of
the Company, to provide additional incentive to the Outside Directors of the
Company to serve as Directors, and to encourage their continued service on the
Board.

        All options granted hereunder shall be "non-statutory stock options".

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

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

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

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

               (d) "Company" means Seagate Technology, Inc., a Delaware
corporation.

               (e) "Continuous Status as a Director" means the absence of any
interruption or termination of service as a Director.

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

               (g) "Employee" means any person, including officers and
Directors, employed by the Company or any Parent or Subsidiary of the Company.
The payment of a Director's fee by the Company shall not be sufficient in and of
itself to constitute "employment" by the Company.

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

               (i) "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 National Market System
of the National Association of Securities Dealers, Inc. Automated Quotation
("NASDAQ") System, the Fair Market Value of a Share of Common Stock shall be the
closing sales price for such stock (or the closing bid, if no sales were
reported, as quoted on such system or exchange (or the exchange with the
greatest volume of trading
<PAGE>   2
in Common Stock) on the last market trading day prior to the day of
determination) as reported in the Wall Street Journal or such other source as
the Board deems reliable; (ii) If the Common Stock is quoted on the NASDAQ
System (but not on the National Market System thereof) or regularly quoted by a
recognized securities dealer but selling prices are not reported, the Fair
Market Value of a Share of Common Stock shall be the mean between the high and
low asked prices for the Common Stock on the last market trading day prior to
the date of determination, as reported in the Wall Street Journal or such other
source as the Board deems reliable, or;

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

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

               (k) "Optioned Stock" means the Common Stock subject to an Option.

               (l) "Optionee" means an Outside Director who receives an Option.

               (m) "Outside Director" means a Director who is not an Employee.

               (n) "Parent" means a "parent corporation", whether now or
hereafter existing, as defined in Section 425(e) of the Internal Revenue Code of
1986.

               (o) "Plan" means this Directors' Option Plan.

               (p) "Share" means a share of the Common Stock, as adjusted in
accordance with Section 10 of the Plan.

               (q) "Subsidiary" means a "subsidiary corporation", whether now or
hereafter existing, as defined in Section 425(f) of the Internal Revenue Code of
1986.

        3. Stock Subject to the Plan. Subject to the provisions of Section 10 of
the Plan, the maximum aggregate number of Shares which may be optioned and sold
under the Plan is 1,000,000 Shares (the "Pool") of Common Stock. The Shares may
be authorized, but unissued, or reacquired Common Stock.

        If an Option should expire or become unexercisable for any reason
without having been exercised in full, the unpurchased Shares which were subject
thereto shall, unless the Plan shall have been terminated, become available for
future grant under the Plan.

        4. Administration of and Grants of Options under the Plan.

               (a) Administrator. Except as otherwise required herein, the Plan
shall be administered by the Board.
<PAGE>   3
               (b) Procedure for Grants. All grants of Options hereunder shall
be automatic and non-discretionary and shall be made strictly in accordance with
the following provisions:

                   (i) No person shall have any discretion to select which
Outside Directors shall be granted Options or to determine the number of Shares
to be covered by Options granted to Outside Directors.

                   (ii) Each Outside Director shall be automatically granted an
Option to purchase 50,000 Shares (the "Initial Option") on (x) November 1, 1990,
in the case of Outside Directors who are members of the Board as of such date,
and (y) during the term of this Plan, on the date on which such person first
becomes a Director, whether through election by the shareholders of the Company
or appointment by the Board to fill a vacancy, in the case of persons who become
Outside Directors subsequent to November 1, 1990; provided, however, that no
Option shall become exercisable unless and until shareholder approval of the
Plan has been obtained in accordance with Section 16 hereof.

                   (iii) During the term of this Plan, each Outside Director
shall automatically receive an Option to purchase 5,000 Shares (the "Quarterly
Option") on each February 1, May 1, August 1 and November 1 following the grant
of the Initial Option; provided, however, that no Quarterly Option shall be
granted to an Outside Director who received an Initial Option in the preceding
six months.

                   (iv) The terms of each Option granted hereunder shall be as
follows:

                             (A) the term of the Option shall be ten (10) years.

                             (B) the Option shall be exercisable only while the
Outside Director remains a Director of the Company, except as set forth in
Section 8 hereof.

                             (C) the exercise price per Share shall be 100% of
the Fair Market Value per Share on the date of grant of the Option.

                             (D) the Option shall become exercisable in
installments cumulatively as to 1/48 of the Optioned Stock for each full month
that expires following the date of grant that the Optionee remains a Director.

                   (v) In the event that any Option granted under the Plan would
cause the number of Shares subject to outstanding Options plus the number of
Shares previously purchased upon exercise of Options to exceed the Pool, then
each such automatic grant shall be for that number of Shares determined by
dividing the total number of Shares remaining available for grant by the number
of Outside Directors on the automatic grant date. No further grants shall be
made until such time, if any, as additional Shares become available for grant
under the Plan through action of the shareholders to increase the number of
Shares which may be issued under the Plan or through cancellation or expiration
of Options previously granted hereunder.

                                     - 3 -
<PAGE>   4

               (c) Powers of the Board. Subject to the provisions and
restrictions of the Plan, the Board shall have the authority, in its discretion:
(i) to determine, upon review of relevant information and in accordance with
Section 2(i) of the Plan, the Fair Market Value of the Common Stock; (ii) to
interpret the Plan; (iii) to prescribe, amend and rescind rules and regulations
relating to the Plan; (iv) to authorize any person to execute on behalf of the
Company any instrument required to effectuate the grant of an Option previously
granted hereunder; and (v) to make all other determinations deemed necessary or
advisable for the administration of the Plan.

               (d) Effect of Board's Decision. All decisions, determinations and
interpretations of the Board shall be final.

        5. Eligibility. Options may be granted only to Outside Directors. All
Options shall be automatically granted in accordance with the terms set forth in
Section 4(b) hereof. An Outside Director who has been granted an Option may, if
he is otherwise eligible, be granted an additional Option or Options in
accordance with such provisions.

        The Plan shall not confer upon any Optionee any right with respect to
continuation of service as a Director or nomination to serve as a Director, nor
shall it interfere in any way with any rights which the Director or the Company
may have to terminate his directorship at any time.

        6. Term of Plan. The Plan shall become effective upon the earlier to
occur of its adoption by the Board or its approval by the shareholders of the
Company as described in Section 16 of the Plan. It shall continue in effect for
a term of ten (10) years unless sooner terminated under Section 12 of the Plan.

        7. Exercise Price and Consideration.

               (a) Exercise Price. The per Share exercise price for Optioned
Stock shall be 100% of the Fair Market Value per Share on the date of grant of
the Option.

               (b) Form of Consideration. The consideration to be paid for the
Shares to be issued upon exercise of an Option, including the method of payment,
shall be determined by the Board and may consist entirely of (i) cash, (ii)
check, (iii) promissory note, (iv) other shares which (x) in the case of Shares
acquired upon exercise of an Option either have been owned by the Optionee for
more than six (6) months on the date of surrender or were not acquired, directly
or indirectly, from the Company, and (y) have a Fair Market Value on the date of
surrender equal to the aggregate exercise price of the Shares as to which said
Option shall be exercised, (v) authorization from the Company to retain from the
total number of Shares as to which the Option is exercised that number of Shares
having a Fair Market Value on the date of exercise equal to the exercise price
for the total number of Shares as to which the Option is exercised, (vi)
delivery of a properly executed exercise notice together with irrevocable
instructions to a broker to promptly deliver to the Company the amount of sale
or loan proceeds required to pay the exercise price, (vii) by delivering an
irrevocable

                                     - 4 -
<PAGE>   5
subscription agreement for the Shares which irrevocably obligates the Optionee
to take and pay for the Shares not more than twelve (12) months after the date
of delivery of the subscription agreement, (viii) any combination of the
foregoing methods of payment, or (ix) such other consideration and method of
payment for the issuance of Shares to the extent permitted under applicable law.

        8. Exercise of Option.

               (a) Procedure for Exercise; Rights as a Shareholder. Any Option
granted hereunder shall be exercisable at such times as are set forth in Section
4(b) hereof; provided, however, that no Options shall be exercisable until
shareholder approval of the Plan in accordance with Section 16 hereof has been
obtained.

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

        An Option shall be deemed to be exercised when written notice of such
exercise has been given to the Company in accordance with the terms of the
Option by the person entitled to exercise the Option and full payment for the
Shares with respect to which the Option is exercised has been received by the
Company. Full payment may consist of any consideration and method of payment
allowable under Section 7(b) of the Plan. Until the issuance (as evidenced by
the appropriate entry on the books of the Company or of a duly authorized
transfer agent of the Company) of the stock certificate evidencing such Shares,
no right to vote or receive dividends or any other rights as a shareholder shall
exist with respect to the Optioned Stock, notwithstanding the exercise of the
Option. A share certificate for the number of Shares so acquired shall be issued
to the Optionee as soon as practicable after exercise of the Option. No
adjustment will be made for a dividend or other right for which the record date
is prior to the date the stock certificate is issued, except as provided in
Section 10 of the Plan.

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

               (b) Rule 16b-3. Options granted to Outside Directors must comply
with the applicable provisions of Rule 16b-3 promulgated under the Exchange Act
or any successor thereto and shall contain such additional conditions or
restrictions as may be required thereunder to qualify for the maximum exemption
from Section 16 of the Exchange Act with respect to Plan transactions.

               (c) Termination of Status as a Director. If an Outside Director
ceases to serve as a Director and such termination is not based on cause, he
may, within five (5) years after the date he ceases to be a Director of the
Company, exercise this Option to the extent that he was entitled to exercise it
at the date of such termination. If an Outside Director ceases to serve as a
Director as a result of a termination based on cause, he may, but only within
three (3) months after the date he ceases to be a Director of the Company,
exercise his Option to the extent that he was entitled to exercise it at the
date of such termination. Notwithstanding the foregoing, in no event may the

                                     - 5 -
<PAGE>   6
Option be exercised after its ten (10) year term has expired. To the extent that
he was not entitled to exercise an Option at the date of such termination, or if
he does not exercise such Option (which he was entitled to exercise) within the
time specified herein, the Option shall terminate. For this purpose, "cause" is
defined as (i) an act of dishonesty made by the Director in connection with
Director's responsibilities as a director and intended to result in Director's
substantial personal enrichment, (ii) Director's conviction of a felony, (iii) a
willful act by Director which constitutes gross misconduct and which is
injurious to the Company, or (iv) Director's continued substantial violations of
his director duties which are demonstrably willful and deliberate on Director's
part after Director has received a written demand for performance from the Board
of Directors which specifically sets forth the factual basis for the Board of
Director's belief that Director has not substantially performed his duties.

               (d) Disability of Optionee. Notwithstanding the provisions of
Section 8(c) above, in the event an Optionee is unable to continue his service
as a Director as a result of his total and permanent disability (as defined in
Section 22(e)(3) of the Code), he may, but only within five (5) years from the
date of termination, exercise his Option to the extent he was entitled to
exercise it at the date of such termination. Notwithstanding the foregoing, in
no event may the Option be exercised after its ten (10) year term has expired.
To the extent that he was not entitled to exercise the Option at the date of
termination, or if he does not exercise such Option (which he was entitled to
exercise) within the time specified herein, the Option shall terminate.

               (e) Death of Optionee. In the event of the death of an Optionee,
the Option may be exercised, at any time within twelve (12) months following the
date of death, by the Optionee's estate or by a person who acquired the right to
exercise the Option by bequest or inheritance, but only to the extent of the
right to exercise that had accrued at the date of death. Notwithstanding the
foregoing, in no event may the option be exercised after its ten (10) year term
has expired.

        9. Non-Transferability of Options. Unless determined otherwise by the
Board, on Option may not be sold, pledged, assigned, hypothecated, transferred,
or disposed of in any manner other than by will or by the laws of descent and
distribution and may be exercised, during the lifetime of the Optionee, only by
the Optionee. If the Board makes an Option transferable, such Option shall
contain such additional terms and conditions as the Board deems appropriate.

        10. Adjustments Upon Changes in Capitalization or Merger. Subject to any
required action by the shareholders of the Company, the number of Shares covered
by each outstanding Option, and the number of Shares which have been authorized
for issuance under the Plan but as to which no Options have yet been granted or
which have been returned to the Plan upon cancellation or expiration of an
Option, as well as the price per Share covered by each such outstanding Option,
shall be proportionately adjusted for any increase or decrease in the number of
issued Shares resulting from a stock split, reverse stock split, stock dividend,
combination or reclassification of the Common Stock, or any other increase or
decrease in the aggregate number of issued Shares effected without receipt of
consideration by the Company; provided, however, that conversion of any
convertible securities of the Company shall not be deemed to have been "effected
without receipt of

                                     - 6 -
<PAGE>   7
consideration." Such adjustment shall be made by the Board, whose determination
in that respect shall be final, binding and conclusive. Except as expressly
provided herein, no issuance by the Company of Shares of stock of any class, or
securities convertible into Shares of stock of any class, shall affect, and no
adjustment by reason thereof shall be made with respect to, the number or price
of Shares subject to an Option.

        In the event of the proposed dissolution or liquidation of the Company,
all outstanding Options will terminate immediately prior to the consummation of
such proposed action, unless otherwise provided by the Board. The Board may, in
the exercise of its sole discretion in such instances, declare that any Option
shall terminate as of a date fixed by the Board and give each Optionee the right
to exercise his Option as to all or any part of the Optioned Stock, including
Shares as to which the Option would not otherwise be exercisable.

        Subject to the provisions of paragraph (b) hereof, in the event of a
proposed sale of all or substantially all of the assets of the Company, or the
merger of the Company with or into another corporation, each outstanding Option
shall be assumed or an equivalent option shall be substituted by such successor
corporation or a parent or subsidiary of such successor corporation, unless the
Board determines, in the exercise of its sole discretion and in lieu of such
assumption or substitution, that the Optionee shall have the right to exercise
the Option as to all of the Optioned Stock, including Shares as to which the
Option would not otherwise be exercisable. If the Board makes an Option fully
exercisable in lieu of assumption or substitution in the event of a merger or
sale of assets, the Company shall notify the Optionee that the Option shall be
fully exercisable for a period of fifteen (15) days from the date of such
notice, and the Option will terminate upon the expiration of such period. For
purposes of this paragraph, an Option granted under the Plan shall be deemed to
be assumed if, following the sale of assets or merger, the Option confers the
right to purchase, for each Share of Optioned Stock subject to the Option
immediately prior to the sale of assets or merger, the consideration (whether
stock, cash or other securities or property) received in the sale of assets or
merger by holders of Common Stock for each Share held on the effective date of
the transaction (and if such holders were offered a choice of consideration, the
type of consideration chosen by the holders if a majority of the outstanding
Shares); provided, however, that if such consideration received in the sale of
assets or merger was not solely Common Stock of the successor corporation or its
parent, the Board may, with the consent of the successor corporation and the
participant, provide for the consideration to be received upon exercise of the
Option to be solely Common Stock of the successor corporation or its parent
equal in Fair Market Value to the per share consideration received by holders of
Common Stock in the sale of assets or merger.

        11. Amendment and Termination of the Plan.

        (a) Amendment and Termination. The Board may at any time amend, alter,
suspend, or discontinue the Plan, but no amendment, alteration, suspension, or
discontinuation shall be made which would impair the rights of any Optionee
under any grant theretofore made, without his or her consent. In addition, to
the extent necessary and desirable to comply with Rule 16b-3 under

                                     - 7 -
<PAGE>   8
the Exchange Act (or any other applicable law or regulation), the Company shall
obtain shareholder approval of any Plan amendment in such a manner and to such a
degree as required.

        Notwithstanding the foregoing, the provisions set forth in Sections 2(m)
and 4(b) of this Plan (and any additional Sections of this Plan that affect
terms required to be specified in this Plan by Rule 16b-3) shall not be amended
more than once every six months, other than to comport with changes in the
Internal Revenue Code, the Employee Retirement Income Security Act, or the rules
thereunder.

               (b) Effect of Amendment or Termination. Any such amendment or
termination of the Plan shall not affect Options already granted and such
Options shall remain in full force and effect as if this Plan had not been
amended or terminated.

        12. Time of Granting Options. The date of grant of an Option shall, for
all purposes, be the date determined in accordance with Section 4(b) hereof.
Notice of the determination shall be given to each Outside Director to whom an
Option is so granted within a reasonable time after the date of such grant.

        13. Conditions Upon Issuance of Shares. Shares shall not be issued
pursuant to the exercise of an Option unless the exercise of such Option and the
issuance and delivery of such Shares pursuant thereto shall comply with all
relevant provisions of law, including, without limitation, the Securities Act of
1933, as amended, the Exchange Act, the rules and regulations promulgated
thereunder, state securities laws, 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 relevant provisions of law.

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

        14. Reservation of Shares. The Company, during the term of this Plan,
will at all times reserve and keep available such number of Shares as shall be
sufficient to satisfy the requirements of the Plan.

        15. Option Agreement. Options shall be evidenced by written option
agreements in such form as the Board shall approve.

                                     - 8 -
<PAGE>   9
        16. Shareholder Approval. Continuance of the Plan shall be subject to
approval by the shareholders of the Company at or prior to the first annual
meeting of shareholders held subsequent to the granting of an Option hereunder.
Such shareholder approval shall be obtained in the degree and manner required
under applicable state and federal law.

                                     - 9 -

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