Document:

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                                SCI SYSTEMS, INC.
                        1994 STOCK OPTION INCENTIVE PLAN

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                                SCI SYSTEMS, INC.
                        1994 STOCK OPTION INCENTIVE PLAN

                                TABLE OF CONTENTS

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SECTION 1  DEFINITIONS.....................................................................  1

SECTION 2  THE STOCK INCENTIVE PLAN........................................................  2

        2.1    Purpose of the Plan.........................................................  2
        2.2    Stock Subject to the Plan...................................................  2
        2.3    Administration of the Plan..................................................  2
        2.4    Eligibility and Limits......................................................  3

SECTION 3 TERMS OF STOCK OPTIONS GRANTED TO
            EMPLOYEES AND OFFICERS.........................................................  3

        3.1    Terms and Conditions of Options Granted to Employees and Officers...........  3

               (a)    Number of Option Shares..............................................  3
               (b)    Stock Option Agreement...............................................  3
               (c)    Type of Option.......................................................  4
               (d)    Option Price.........................................................  4
               (e)    Option Term..........................................................  4
               (f)    Payment..............................................................  4
               (g)    Conditions to the Exercise of an Option..............................  5
               (h)    Termination of Incentive Stock Option................................  5
               (i)    Special Provisions for Certain Substitute Options....................  5
               (j)    Date of Grant........................................................  5
               (k)    Nonassignability.....................................................  5

        3.2    Treatment of Awards Upon Termination of Employment..........................  6

SECTION 4 TERMS OF STOCK OPTIONS GRANTED TO DIRECTORS......................................  6

        4.1    Number of Option Shares.....................................................  6
        4.2    Stock Option Agreement......................................................  6
        4.3    Type of Option..............................................................  6
        4.4    Option Price................................................................  6
        4.5    Option Term.................................................................  6
        4.6    Payment.....................................................................  7
        4.7    Date of Grant...............................................................  7
        4.8    Nonassignability............................................................  7
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        4.9    Cessation of Board Membership...............................................  7
        4.10   Timing of Directions........................................................  7

SECTION 5  RESTRICTIONS ON STOCK...........................................................  7

SECTION 6  GENERAL PROVISIONS..............................................................  7

        6.1    Withholding.................................................................  7
        6.2    Changes in Capitalization; Merger; Liquidation..............................  8
        6.3    Cash Awards.................................................................  9
        6.4    Compliance with Code........................................................  9
        6.5    Right to Terminate Employment...............................................  9
        6.6    Non-alienation of Benefits..................................................  9
        6.7    Restrictions on Delivery and Sale of Shares; Legends........................  9
        6.8    Termination and Amendment of the Plan........................................ 9
        6.9    Stockholder Approval........................................................ 10
        6.10   Choice of Law............................................................... 10
        6.11   Effective Date of Plan...................................................... 10
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                                SCI SYSTEMS, INC.
                        1994 STOCK OPTION INCENTIVE PLAN

                             SECTION I. DEFINITIONS

        Whenever used herein, the masculine pronoun shall be deemed to include
the feminine, and the singular to include the plural, unless the context clearly
indicates otherwise, and the following capitalized words and phrases are used
herein with the meaning thereafter ascribed:

        1.1 "Board" means the board of directors of the Company.

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

        1.3 "Committee" means the committee appointed by the Board to administer
the Plan.

        1.4 "Company" means SCI Systems, Inc., a Delaware corporation.

        1.5 "Director Fee" means fees payable for the performance of duties as a
director of the Company, but shall not include meeting or committee fees or
expense reimbursements paid to a director.

        1.6 "Disposition" means any conveyance, sale, transfer, assignment,
pledge or hypothecation, whether outright or as security, inter vivos or
testamentary, with or without consideration, voluntary or involuntary.

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

        1.8 "Exercise Price" means the price per share of Stock purchasable
under any Option.

        1.9 "Fair Market Value" with regard to a date means the closing price at
which Stock shall have been sold on the last trading date prior to that date as
reported by the Nasdaq National Market System (or, if applicable, as reported by
a national securities exchange selected by the Committee on which the shares of
Stock are then actively traded) and published in The Wall Street Journal;
provided that, for purposes of granting Options other than incentive stock
options, Fair Market Value of the shares of Stock may be determined by the
Committee by reference to the average market value determined over a period
certain or as of specified dates, to a tender offer price for the shares of
Stock (if settlement of an award is triggered by such an event) or to any other
reasonable measure of fair market value.

        1.10 "Option" means a non-qualified stock option or an incentive stock
option.

        1.11 "Over 10% Owner" means an individual who at the time an incentive
stock option is granted owns Stock possessing more than 10% of the total
combined voting power of the Company or one of its Subsidiaries, determined by
applying the attribution rules of Code Section 424(d).

        1.12 "Participant" means an individual who receives an Option hereunder.

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        1.13 "Plan" means the SCI Systems, Inc. 1994 Stock Option Incentive
Plan.

        1.14 "Stock" means the Company's common stock, $0.10 par value.

        1.15 "Stock Option Agreement" means an agreement between the Company and
a Participant or other documentation evidencing an award of an Option.

        1.16 "Subsidiary" means any corporation (other than the Company) in an
unbroken chain of corporations beginning with the Company if, with respect to
incentive stock options, at the time of the granting of the Option, each of the
corporations other than the last corporation in the unbroken chain owns stock
possessing 50% or more of the total combined voting power of all classes of
stock in one of the other corporations in the chain.

                       SECTION 2 THE STOCK INCENTIVE PLAN

        2.1 Purpose of the Plan. The Plan is intended to (a) provide incentive
to selected employees, officers and directors of the Company and its affiliates
to stimulate their efforts toward the continued success of the Company and to
operate and manage the business in a manner that will provide for the long-term
growth and profitability of the Company; (b) encourage stock ownership by
selected employees, officers and directors by providing them with a means to
acquire a proprietary interest in the Company, acquire shares of Stock, or to
receive compensation which is based upon appreciation in the value of Stock; and
(c) provide a means of obtaining, rewarding and retaining select employees,
officers and directors.

        2.2 Stock Subject to the Plan. Subject to adjustment in accordance with
Section 5.2, 1,300,000 shares of Stock (the "Maximum Plan Shares", of which
302,974 shares are those which were released from reservation under the SCI
Systems, Inc. Non-Qualified Stock Option Plan and the SCI Systems, Inc.
Incentive Stock Option Plan immediately prior to adoption of this Plan), are
hereby reserved exclusively for issuance pursuant to Options. At no time shall
the Company have outstanding Options subject to Section 16 of the Exchange Act
and shares of Stock issued in respect of Options in excess of the Maximum Plan
Shares; for this purpose, the outstanding Options and shares of Stock issued in
respect of Options shall be computed consistent with Rule 16b-3(a)(1) as
promulgated under the Exchange Act. To the extent permitted by Rule 16b-3(a)(1)
as promulgated under the Exchange Act, the shares of Stock attributable to the
nonvested, unpaid, unexercised, unconverted or otherwise unsettled portion of
any Option that is forfeited or cancelled or expires or terminates for any
reason without becoming vested, paid, exercised, converted or otherwise settled
in full shall again be available for purposes of the Plan.

        2.3 Administration of the Plan. The Plan shall be administered by the
Committee.

                (a) With respect to awards under the Plan to key employees and
        officers, the Committee shall be comprised solely of "disinterested
        persons," as defined in Rule 16b-3 as promulgated under the Exchange
        Act, who are then members of the Board. The Committee shall have full
        authority in its discretion to determine the key employees and officers
        of the

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        Company or its affiliates to whom Options shall be granted and the terms
        and provisions of such Options.

               (b) Subject to the provisions of the Plan, the Committee shall
        have full and conclusive authority to interpret the Plan; to prescribe,
        amend and rescind rules and regulations relating to the Plan; to
        determine the terms and provisions of the respective Stock Option
        Agreements and to make all other determinations necessary or advisable
        for the proper administration of the Plan. The Committee's
        determinations under the Plan need not be uniform and may be made by it
        selectively among persons who receive, or are eligible to receive,
        awards under the Plan (whether or not such persons are similarly
        situated). The Committee's decisions shall be final and binding on all
        Participants.

        2.4 Eligibility and Limits. Options may be granted only to employees,
officers and directors of the Company, or any affiliate of the Company;
provided, however, that directors who serve on the Committee shall not be
eligible to receive awards under Plan Section 3 that are subject to Section 16
of the Exchange Act while they are members of the Committee and that an
incentive stock option may only be granted to an employee of the Company or any
Subsidiary. In the case of incentive stock options, the aggregate Fair Market
Value (determined as at the date an incentive stock option is granted) of stock
with respect to which stock options intended to meet the requirements of Code
Section 422 become exercisable for the first time by an individual during any
calendar year under all plans of the Company and its Subsidiaries shall not
exceed $100,000; provided further, that if the limitation is exceeded, the
incentive stock option(s) which cause the limitation to be exceeded shall be
treated as non-qualified stock option(s).

                   SECTION 3 TERMS OF STOCK OPTIONS GRANTED TO
                             EMPLOYEES AND OFFICERS

        3.1 Terms and Conditions of Options Granted to Employees and Officers.
No more than 1,200,000 shares of Stock shall be available for issuance as
Options to employees and officers under the Plan.

               (a) Number of Option Shares. The number of shares of Stock as to
        which an Option shall be granted pursuant to this Section 3 shall be
        determined by the Committee in its sole discretion, subject to the
        provisions of Section 2.2 as to the total number of shares available for
        grants under the Plan. Notwithstanding the preceding, to the extent
        required under Section 162(m) of the Code and the regulations thereunder
        for compensation to be treated as qualified performance-based
        compensation, the maximum number of shares of Stock with respect to
        which Options may be granted during any one year period to any employee
        shall not exceed 100,000.

                (b) Stock Option Agreement. Each Option granted pursuant to this
        Section 3 shall either be evidenced by a Stock Option Agreement in such
        form and containing such terms, conditions and restrictions as the
        Committee may determine to be appropriate. Each Stock Option Agreement
        shall be subject to the terms of the Plan and any provisions contained
        in the Stock Option Agreement that are inconsistent with the Plan shall
        be null and void.

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                (c) Type of Option. At the time any Option is granted pursuant
        to this Section 3, the Committee shall determine whether the Option is
        to be an incentive stock option described in Code Section 422 or a
        non-qualified stock option, and the Option shall be clearly identified
        as to its status as an incentive stock option or a non-qualified stock
        option. At the time any incentive stock option granted under the Plan is
        exercised, the Company shall be entitled to legend the certificates
        representing the shares of Stock purchased pursuant to the Option to
        clearly identify them as representing the shares purchased upon the
        exercise of an incentive stock option. An incentive stock option may
        only be granted within 10 years from the earlier of the date the Plan is
        adopted or approved by the Company's stockholders.

                (d) Option Price. Subject to adjustment in accordance with
        Section 6.2 and the other provisions of this Section 3, the Exercise
        Price under any Option shall be as set forth in the applicable Stock
        Option Agreement. Notwithstanding the preceding, the Exercise Price
        under any incentive stock option shall not be less than the Fair Market
        Value on the date the Option is granted, and with respect to each grant
        of an incentive stock option to a Participant who is an Over 10% Owner,
        the Exercise Price shall not be less than 110% of the Fair Market Value
        on the date the Option is granted.

                (e) Option Term. Any incentive stock option granted to a
        Participant who is not an Over 10% Owner shall not be exercisable after
        the expiration of 10 years after the date the Option is granted. Any
        incentive stock option granted to a Participant who is an Over 10% Owner
        shall not be exercisable after the expiration of five years after the
        date the Option is granted. The term of any non-qualified stock option
        shall be as specified in the applicable Stock Option Agreement.

                (f) Payment. Payment for all shares of Stock purchased pursuant
        to the exercise of an Option granted pursuant to this Section 3 shall be
        made in any form or manner authorized by the Committee in the Stock
        Option Agreement, including, but not limited to, (i) cash, (ii) by
        delivery to the Company of a number of shares of Stock which have been
        owned by the holder for at least six months prior to the date of
        exercise having an aggregate Fair Market Value of not less than the
        product of the Exercise Price multiplied by the number of shares the
        Participant intends to purchase upon exercise of the Option on the date
        of delivery; (iii) in a cashless exercise through a broker; or (iv) by
        having a number of shares of Stock withheld, the Fair Market Value of
        which as of the date of exercise is sufficient to satisfy the Exercise
        Price. In its discretion, the Committee also may authorize (at the time
        an Option is granted or thereafter) Company financing to assist the
        Participant as to payment of the Exercise Price on such terms as may be
        offered by the Committee in its discretion. Any such financing shall
        require the payment by the Participant of interest on the amount
        financed at a rate not less than the "applicable federal rate" under the
        Code. If a Stock Option Agreement so provides, the Participant may be
        granted a new Option to purchase a number of shares of Stock equal to
        the number of previously owned shares of Stock tendered in payment for
        each share of Stock purchased pursuant to the terms of the Stock Option
        Agreement. Any such new Option shall be subject to the terms and
        conditions of the Stock Option Agreement pursuant to which such new
        Option is granted. Payment of the Exercise Price shall be made at the
        time that the Option or any part thereof is exercised, and no shares
        shall be issued or

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        delivered upon exercise of an Option until full payment has been made by
        the Participant. The holder of an Option, as such, shall have none of
        the rights of a stockholder.

                (g) Conditions to the Exercise of an Option. Each Option granted
        pursuant to this Section 3 shall be exercisable by whom, at such time or
        times, or upon the occurrence of such event or events, and in such
        amounts, as the Committee shall specify in the Stock Option Agreement;
        provided, however, that subsequent to the grant of an Option, the
        Committee, at any time before complete termination of such Option, may
        accelerate the time or times at which such Option may be exercised in
        whole or in part, and may permit the Participant or any other designated
        person to exercise the Option, or any portion thereof, for all or part
        of the remaining Option term, notwithstanding any provision of the Stock
        Option Agreement to the contrary.

                (h) Termination of Incentive Stock Option. With respect to an
        incentive stock option, in the event of termination of employment of a
        Participant for any reason other than death or disability, the Option or
        portion thereof held by the Participant which is unexercised shall
        expire, terminate, and become unexercisable no later than the expiration
        of three months after the date of termination of employment; provided,
        however, that in the case of a holder whose termination of employment is
        due to death or disability, one year shall be substituted for such three
        month period. For purposes of this Subsection (h), termination of
        employment of the Participant shall not be deemed to have occurred if
        the Participant is employed by another corporation (or a parent or
        subsidiary corporation of such other corporation) which has assumed the
        incentive stock option of the Participant in a transaction to which Code
        Section 424(a) is applicable.

                (i) Special Provisions for Certain Substitute Options.
        Notwithstanding anything to the contrary in this Section 3, any Option
        issued in substitution for an option previously issued by another
        entity, which substitution occurs in connection with a transaction to
        which Code Section 424(a) is applicable, may provide for an exercise
        price computed in accordance with such Code Section and the regulations
        thereunder and may contain such other terms and conditions as the
        Committee may prescribe to cause such substitute Option to contain as
        nearly as possible the same terms and conditions (including the
        applicable vesting and termination provisions) as those contained in the
        previously issued option being replaced thereby.

                (j) Date of Grant. The date an Option is granted pursuant to
        this Section 3 shall be the date on which the Committee has approved the
        terms and conditions of the Option and has determined the recipient of
        the Option and the number of shares covered by the Option and has taken
        all such other action necessary to complete the grant of the Option.

                (k) Nonassignability. Options granted pursuant to this Section 3
        shall not be transferable or assignable except by will or by the laws of
        descent and distribution. Such Options shall be exercisable, during the
        Participant's lifetime, only by the Participant; or in the event of the
        death of the Participant, by the legal representatives of the
        Participant's estate or if no legal representative has been appointed,
        by the successor in interest determined under the Participant's will.

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        3.2 Treatment of Awards Upon Termination of Employment. Except as
otherwise provided by Plan Section 3.1(h), any award pursuant to this Section 3
to a Participant who has experienced a termination of employment may be
cancelled, accelerated, paid or continued, as provided in the applicable Stock
Option Agreement, or, in the absence of such provision, as the Committee may
determine. The portion of any award exercisable in the event of continuation or
the amount of any payment due under a continued award may be adjusted by the
Committee to reflect the Participant's period of service from the date of grant
through the date of the Participant's termination of employment or such other
factors as the Committee determines are relevant to its decision to continue the
award.

              SECTION 4 TERMS OF STOCK OPTIONS GRANTED TO DIRECTORS

        Each individual serving as a non-employee director of the Company as of
the effective date of the Plan may irrevocably direct that all or a portion of
his or her Director Fee for the remainder of the term for which he or she is
serving as a director be allocated to the purchase of Options on his or her
behalf. The direction shall be effective with respect to those Director Fees
payable after the expiration of six months following the Company's receipt of
the direction and must be made with respect to all or a portion (in 25%
increments) of each payment. Options granted under this Section 4 shall be
subject to the following terms and conditions:

        4.1 Number of Option Shares. A Participant shall be granted an Option to
purchase that number of shares of Stock with an aggregate Fair Market Value
(determined as of the date of grant) equal to four times the amount of the
Director Fee which the Participant allocated to the purchase of Options.

        4.2 Stock Option Agreement. Each Option shall be evidenced by a Stock
Option Agreement which shall incorporate the terms of the Plan.

        4.3 Type of Option. Options shall be non-qualified stock options.

        4.4 Option Price. The Exercise Price for a share of Stock subject to an
Option shall be the Fair Market Value (determined as of the date of grant) of a
share of Stock.

        4.5 Option Term. Each Option may be exercised for that percentage of
shares of Stock subject to the Option as to which the Option has become vested,
reduced by that number of shares of Stock subject to the Option which have been
previously exercised. The Option shall vest in equal portions on each "Vesting
Date," provided that the Participant is still a director on the Vesting Date.
For purpose of this Section 4, the term Vesting Date shall mean the date of
grant and each Board meeting at which Director Fees are payable during the
remainder of the director's term, provided that Director Fees are paid on a
semi-annual basis. If Director Fees are no longer payable on a semi-annual
basis, then the term Vesting Date shall mean the date of grant and thereafter
any annual meeting of the Company's shareholders or any six month anniversary of
an annual meeting of the Company's shareholders occurring during the director's
term; provided that the next vesting date is no less than four months from any
other vesting date. Once exercisable, each Option granted hereunder shall remain
exercisable until the tenth anniversary of the date of grant; provided, however,
that in the event of a Participant's death prior to the expiration of any such
Option term, the Option may

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continue to be exercised by the Participant's legal representative until the
expiration of such Option term.

        4.6 Payment. Payment for all shares of Stock purchased pursuant to the
exercise of an Option shall be made (i) in cash, (ii) by delivery to the Company
of a number of shares of Stock which have been owned by the holder for at least
six months prior to the date of exercise having an aggregate Fair Market Value
of not less than the product of the Exercise Price multiplied by the number of
shares the Participant intends to purchase upon exercise of the Option on the
date of delivery; or (iii) in a cashless exercise through a broker. The holder
of an Option, as such, shall have none of the rights of a stockholder.

        4.7 Date of Grant. An Option shall be granted as of the date on which
the Director Fee is payable for which a direction is applicable.

        4.8 Nonassignability. Options shall not be transferable or assignable
except by will or by the laws of descent and distribution. Such Options shall be
exercisable, during the Participant's lifetime, only by the Participant; or in
the event of the death of the Participant, by the legal representatives of the
Participant's estate or if no legal representative has been appointed, by the
successor in interest determined under the Participant's will.

        4.9 Timing of Directions. Each non-employee director shall make a
direction pursuant to this Section 4 no later than 30 days following his or her
election, reelection or appointment to the Board; provided, however, that any
non-employee director who is a member of the Board as of the Plan's effective
date shall make such a direction no later than 30 days following the Plan's
effective date.

                         SECTION 5 RESTRICTIONS ON STOCK

        The Participant shall not have the right to make or permit to exist any
Disposition of the shares of Stock issued pursuant to the Plan except as
provided in the Plan or the Stock Option Agreement. Any Disposition of the
shares of Stock issued under the Plan by the Participant not made in accordance
with the Plan or the Stock Option Agreement shall be void. The Company shall not
recognize, or have the duty to recognize, any Disposition not made in accordance
with the Plan and the Stock Option Agreement, and the shares so transferred
shall continue to be bound by the Plan and the Stock Option Agreement.

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                          SECTION 6 GENERAL PROVISIONS

        6.1 Withholding. The Company shall deduct from all cash distributions
under the Plan any taxes required to be withheld by federal, state or local
government. Whenever the Company proposes or is required to issue or transfer
shares of Stock under the Plan, the Company shall have the right to require the
recipient to remit to the Company an amount sufficient to satisfy any federal,
state and local withholding tax requirements prior to the delivery of any
certificate or certificates for such shares. A Participant may pay the
withholding tax in cash, or, if the Stock Option Agreement provides, a
Participant may elect to have the number of shares of Stock he is to receive
reduced by the smallest number of whole shares of Stock which, when multiplied
by the Fair Market Value of the shares of Stock determined as of the Tax Date
(defined below), is sufficient to satisfy federal, state and local, if any,
withholding taxes arising from exercise of an Option (a "Withholding Election").
A Participant may make a Withholding Election only if both of the following
conditions are met:

               (a) The Withholding Election must be made on or prior to the date
        on which the amount of tax required to be withheld is determined (the
        "Tax Date") by executing and delivering to the Company a properly
        completed notice of Withholding Election as prescribed by the Committee;
        and

               (b) Any Withholding Election made will be irrevocable except on
        six months advance written notice delivered to the Company; however, the
        Committee may in its sole discretion disapprove and give no effect to
        the Withholding Election.

        6.2 Changes in Capitalization; Merger; Liquidation.

               (a) The number of shares of Stock reserved for the grant of
        Options; the number of shares of Stock reserved for issuance upon the
        exercise or payment, as applicable, of each outstanding Option; and the
        Exercise Price of each outstanding Option shall be proportionately
        adjusted for any increase or decrease in the number of issued shares of
        Stock resulting from a subdivision or combination of shares or the
        payment of a stock dividend in shares of Stock to holders of outstanding
        shares of Stock or any other increase or decrease in the number of
        shares of Stock outstanding effected without receipt of consideration by
        the Company.

               (b) In the event of or anticipation of a merger, consolidation or
        other reorganization of the Company or tender offer for shares of Stock,
        the Committee may make such adjustments with respect to awards and take
        such other action as it deems necessary or appropriate to reflect or
        such merger, consolidation, reorganization or tender offer, including,
        without limitation, the substitution of new awards, the termination or
        adjustment of outstanding awards, the acceleration of awards or the
        removal of restrictions on outstanding awards. Any adjustment pursuant
        to this Section 6.2 may provide, in the Committee's discretion, for the
        elimination without payment therefor of any fractional shares that might
        otherwise become subject to any Option, but shall not otherwise diminish
        the then value of the Option.

               (c) The existence of the Plan and the Options granted pursuant to
        the Plan shall not affect in any way the right or power of the Company
        to make or authorize any adjustment, reclassification, reorganization or
        other change in its capital or business structure, any merger

                                      -8-
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        or consolidation of the Company, any issue of debt or equity securities
        having preferences or priorities as to the Stock or the rights thereof,
        the dissolution or liquidation of the Company, any sale or transfer of
        all or any part of its business or assets, or any other corporate act or
        proceeding.

        6.3 Cash Awards. The Committee may, at any time and in its discretion,
grant to any holder of an Option the right to receive, at such times and in such
amounts as determined by the Committee in its discretion, a cash amount which is
intended to reimburse such person for all or a portion of the federal, state and
local income taxes imposed upon such person as a consequence of the receipt of
the Option or the exercise of rights thereunder.

        6.4 Compliance with Code. All incentive stock options to be granted
hereunder are intended to comply with Code Section 422, and all provisions of
the Plan and all incentive stock options granted hereunder shall be construed in
such manner as to effectuate that intent.

        6.5 Right to Terminate Employment. Nothing in the Plan or in any Option
shall confer upon any Participant the right to continue as an employee, officer
or director of the Company or any of its affiliates or affect the right of the
Company or any of its affiliates to terminate the Participant's employment or
other relationship with the Company at any time.

        6.6 Non-alienation of Benefits. Other than as specifically provided with
regard to the death of a Participant, no benefit under the Plan shall be subject
in any manner to anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance or charge; and any attempt to do so shall be void. No such benefit
shall, prior to receipt by the Participant, be in any manner liable for or
subject to the debts, contracts, liabilities, engagements or torts of the
Participant.

        6.7 Restrictions on Delivery and Sale of Shares; Legends. Each Option is
subject to the condition that if at any time the Committee, in its discretion,
shall determine that the listing, registration or qualification of the shares
covered by such Option upon any securities exchange or under any state or
federal law is necessary or desirable as a condition of or in connection with
the granting of such Option or the purchase or delivery of shares thereunder,
the delivery of any or all shares pursuant to such Option may be withheld unless
and until such listing, registration or qualification shall have been effected.
If a registration statement is not in effect under the Securities Act of 1933 or
any applicable state securities laws with respect to the shares of Stock
purchasable or otherwise deliverable under Options then outstanding, the
Committee may require, as a condition of exercise of any Option or as a
condition to any other delivery of Stock pursuant to an Option, that the
Participant or other recipient of an Option represent, in writing, that the
shares received pursuant to the Option are being acquired for investment and not
with a view to distribution and agree that the shares will not be disposed of
except pursuant to an effective registration statement, unless the Company shall
have received an opinion of counsel that such disposition is exempt from such
requirement under the Securities Act of 1933 and any applicable state securities
laws. The Company may include on certificates representing shares delivered
pursuant to an Option such legends referring to the foregoing representations or
restrictions or any other applicable restrictions on resale as the Company, in
its discretion, shall deem appropriate.

        6.8 Termination and Amendment of the Plan. The Board at any time may
amend or terminate the Plan without stockholder approval; provided, however,
that the Board may condition

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any amendment on the approval of stockholders of the Company if such approval is
necessary or advisable with respect to tax, securities or other applicable laws.
No such termination or amendment without the consent of the holder of an Option
shall adversely affect the rights of the Participant under such Option.

        6.9 Stockholder Approval. The Plan shall be submitted to the
stockholders of the Company for their approval within 12 months before or after
the adoption of the Plan by the Board. If such approval is not obtained, any
Option granted hereunder shall be void.

        6.10 Choice of Law. The laws of the State of Alabama shall govern the
Plan, to the extent not preempted by federal law.

        6.11 Effective Date of Plan. The Plan shall become effective as of the
date of its approval by the Board, subject, however, to the approval of the Plan
by the Company's shareholders at their next annual meeting. Options granted
hereunder prior to such shareholder approval shall be conditioned upon such
shareholder approval. Unless such shareholder approval is obtained by the first
anniversary of the Board's approval, this Plan and any Options awarded hereunder
shall become void thereafter.

                                            SCI SYSTEMS, INC.

                                            By: /s/ A. Eugene Sapp
                                               ---------------------------------
                                            Title: President
                                                  ------------------------------
ATTEST:

By: Michael Sullivan
   -----------------------------
Title: Secretary
      --------------------------

        [CORPORATE SEAL]

                                      -10-
<PAGE>

                               FIRST AMENDMENT TO
                                SCI SYSTEMS, INC.
                        1994 STOCK OPTION INCENTIVE PLAN

        THIS FIRST AMENDMENT, made on this 28th day of October, 1996, by SCI
SYSTEMS, INC. (the "Company"), a corporation duly organized and existing under
the laws of the State of Delaware;

                              W I T N E S S E T H:

        WHEREAS, the Company maintains the SCI Systems, Inc. 1994 Stock Option
Incentive Plan (the "Plan"); and

        WHEREAS, the Company desires to amend the Plan to comply with the
provisions of Section 162(m) of the Internal Revenue Code of 1986, as amended
(the "Code"); and

        NOW, THEREFORE, the Plan is hereby amended, as follows:

        1. Effective as of January 1, 1994, by adding to the end of Section 2.4
the following:

               "In no event shall any person be entitled to grants under the
               Plan in any calendar year in excess of 100,000 shares."

        2. Effective as of November 1, 1996, by deleting the first sentence of
Section 2.3(a) and replacing it with the following:

                      "With respect to awards under the Plan to key employees
               and officers, the Committee shall be comprised solely of at least
               two (2) members of Board of Directors. The Board of Directors
               should consider the advisability of complying with the
               disinterested standards contained in both Code Section 162(m) and
               Rule 16b-3(b)(3) when appointing such Committee members.

        Except as specifically amended hereby, the Plan shall remain in full
force and effect as prior to this First Amendment.

<PAGE>

        IN WITNESS WHEREOF, the Company has caused this First Amendment to be
executed on the day and year first above written.

                                            SCI SYSTEMS, INC.

                                            By: /s/ A. Eugene Sapp
                                               ---------------------------------
                                            Title: President
                                                  ------------------------------
ATTEST:

By: Michael Sullivan
   ----------------------------
Title: Secretary
      -------------------------

[CORPORATE SEAL]

                                      -2-
<PAGE>

                             SECOND AMENDMENT TO THE
                                SCI SYSTEMS, INC.
                        1994 STOCK OPTION INCENTIVE PLAN

        THIS SECOND AMENDMENT is made on the 1st day of November, 1998, by SCI
Systems, Inc., a Delaware corporation (the "Corporation").

                                  INTRODUCTION

        WHEREAS, the Corporation maintains the SCI Systems, Inc. 1994 Stock
Option Incentive Plan (the "Plan");

        WHEREAS, the Plan currently has a limited number of shares of common
stock, par value $0.10 per share, of the Corporation's ("Common Stock")
available for issuance under the Plan, and as a result, the Corporation will
have insufficient shares of Common Stock available under the Plan to continue to
utilize the Plan as a component of compensation for qualified officers, key
employees and consultants; and

        WHEREAS, the Corporation desires to amend the Plan to increase the
number of shares of Common Stock authorized for issuance under the Plan from
2,600,000 (adjusted to reflect a two-for-one stock adjustment to the number of
shares available for issuance by the Company whereby the number of shares of
Common Stock available for issuance under the Plan was increased from 1,300,000
to 2,600,000 shares pursuant to Section 6.2 of the Plan) to 4,600,000 shares.

                                    AMENDMENT

        NOW, THEREFORE, effective October 23, 1998 and subject to approval by
the holders of Common Stock, the first sentence of Section 2.2 of the Plan is
hereby amended and modified as follows:

               "Subject to adjustment in accordance with Section 6.2, 4,600,000
               shares of common stock (the "Maximum Plan Shares," of which
               302,974 shares are those which were released from reservation
               under the SCI systems, Inc. Non-Qualified Stock Option Plan and
               the SCI Systems, Inc. Incentive Stock Option Plan immediately
               prior to adoption of this Plan), are hereby reserved exclusively
               for issuance pursuant to Options."

        Except as specifically provided for herein, the Plan shall remain in
full force and effect as prior to this Second Amendment.

<PAGE>

        IN WITNESS WHEREOF, the parties hereto have caused this Second Amendment
to be executed as of the day and year first above written.

                                      SCI SYSTEMS, INC.

                                      By: /s/ A. Eugene Sapp
                                         ---------------------------------------
                                      Title: President & Chief Executive Officer

ATTEST:

By: /s/ Michael Sullivan
   ----------------------------------
Title: Secretary & General Counsel
      -------------------------------

[CORPORATE SEAL]

                                        2<PAGE>

                                SCI SYSTEMS, INC.
                            2000 STOCK INCENTIVE PLAN

<PAGE>

                                SCI SYSTEMS, INC.
                            2000 STOCK INCENTIVE PLAN

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                    PAGE
                                                                                    ----
<S>                                                                                 <C>
SECTION I. DEFINITIONS.............................................................   1

    1.1    DEFINITIONS.............................................................   1

SECTION 2 THE STOCK INCENTIVE PLAN.................................................   5

    2.1    PURPOSE OF THE PLAN.....................................................   5
    2.2    STOCK SUBJECT TO THE PLAN...............................................   5
    2.3    ADMINISTRATION OF THE PLAN..............................................   5
    2.4    ELIGIBILITY AND LIMITS..................................................   6

SECTION 3 TERMS OF STOCK INCENTIVES................................................   6

    3.1    TERMS AND CONDITIONS OF ALL STOCK INCENTIVES............................   6
    3.2    TERMS AND CONDITIONS OF OPTIONS.........................................   7
           (a)    Option Price.....................................................   7
           (b)    Option Term......................................................   8
           (c)    Payment..........................................................   8
           (d)    Conditions to the Exercise of an Option..........................   8
           (e)    Termination of Incentive Stock Option............................   9
           (f)    Special Provisions for Certain Substitute Options................   9
    3.3    TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS.......................   9
           (a)    Settlement.......................................................   9
           (b)    Conditions to Exercise...........................................  10
    3.4    TERMS AND CONDITIONS OF STOCK AWARDS....................................  10
    3.5    TERMS AND CONDITIONS OF DIVIDEND EQUIVALENT RIGHTS......................  10
           (a)    Payment..........................................................  10
           (b)    Conditions to Payment............................................  10
    3.6    TERMS AND CONDITIONS OF PERFORMANCE UNIT AWARDS.........................  11
           (a)    Payment..........................................................  11
           (b)    Conditions to Payment............................................  11
    3.7    TERMS AND CONDITIONS OF PHANTOM SHARES..................................  11
           (a)    Payment..........................................................  11
           (b)    Conditions to Payment............................................  11
    3.8    TREATMENT OF AWARDS UPON TERMINATION OF EMPLOYMENT......................  11

SECTION 4 RESTRICTIONS ON STOCK....................................................  12

    4.1    ESCROW OF SHARES........................................................  12
    4.2    RESTRICTIONS ON TRANSFER................................................  12

SECTION 5 GENERAL PROVISIONS.......................................................  12

    5.1    WITHHOLDING.............................................................  12
    5.2    CHANGES IN CAPITALIZATION; MERGER; LIQUIDATION..........................  13
    5.3    CASH AWARDS.............................................................  14
    5.4    COMPLIANCE WITH CODE....................................................  14
    5.5    RIGHT TO TERMINATE EMPLOYMENT...........................................  14
    5.6    NON-ALIENATION OF BENEFITS..............................................  14
    5.7    RESTRICTIONS ON DELIVERY AND SALE OF SHARES; LEGENDS....................  14
    5.8    LISTING AND LEGAL COMPLIANCE............................................  15
    5.9    TERMINATION AND AMENDMENT OF THE PLAN...................................  15
    5.10   STOCKHOLDER APPROVAL....................................................  15
    5.11   CHOICE OF LAW...........................................................  15
    5.12   EFFECTIVE DATE OF PLAN..................................................  16
</TABLE>

                                       i
<PAGE>

                                SCI SYSTEMS, INC.
                            2000 STOCK INCENTIVE PLAN

                             SECTION I. DEFINITIONS

       1.1 Definitions. Whenever used herein, the masculine pronoun will be
deemed to include the feminine, and the singular to include the plural, unless
the context clearly indicates otherwise, and the following capitalized words and
phrases are used herein with the meaning thereafter ascribed:

              (a) "Affiliate" means:

                     (1) Any Subsidiary or Parent,

                     (2) An entity that directly or through one or more
              intermediaries controls, is controlled by, or is under common
              control with the Company, as determined by the Company, or

                     (3) Any entity in which the Company has such a significant
              interest that the Company determines it should be deemed an
              "Affiliate", as determined in the sole discretion of the Company.

              (b) "Board of Directors" means the board of directors of the
       Company.

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

              (d) "Committee" means the committee appointed by the Board of
       Directors to administer the Plan. The Board of Directors shall consider
       the advisability of whether the members of the Committee shall consist
       solely of at least two members of the Board of Directors who are both
       "outside directors" as defined in Treas. Reg. Section 1.162-27(e) as
       promulgated by the Internal Revenue Service and "non-employee directors"
       as defined in Rule 16b-3(b)(3) as promulgated under the Exchange Act. If
       the Committee has not been appointed, the Board of Directors in their
       entirety shall constitute the Committee. In addition, for purposes of any
       Stock Incentive granted to a director of the Company who is not also an
       employee of the Company, the Board of Directors in its entirety shall
       constitute the Committee.

              (e) "Company" means SCI Systems, Inc., a Delaware corporation.

              (f) "Disability" has the same meaning as provided in the long-term
       disability plan or policy maintained or, if applicable, most recently
       maintained, by the Company or, if applicable, any Affiliate of the
       Company for the Participant. If no long-term disability plan or policy
       was ever maintained on behalf of the Participant or, if the determination
       of Disability relates to an Incentive Stock Option, Disability means that
       condition described

<PAGE>

       in Code Section 22(e)(3), as amended from time to time. In the event of a
       dispute, the determination of Disability will be made by the Committee
       and will be supported by advice of a physician competent in the area to
       which such Disability relates.

              (g) "Dividend Equivalent Rights" means certain rights to receive
       cash payments as described in Section 3.5.

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

              (i) "Fair Market Value" with regard to a date means:

                     (1) the price at which Stock shall have been sold on that
              date or the last trading date prior to that date as reported by
              the national securities exchange selected by the Committee on
              which the shares of Stock are then actively traded or, if
              applicable, as reported by the NASDAQ Stock Market.

                     (2) if such market information is not published on a
              regular basis, the price of Stock in the over-the-counter market
              on that date or the last business day prior to that date as
              reported by the NASDAQ Stock Market or, if not so reported, by a
              generally accepted reporting service.

                     (3) if Stock is not publicly traded, as determined in good
              faith by the Committee with due consideration being given to (i)
              the most recent independent appraisal of the Company, if such
              appraisal is not more than twelve months old and (ii) the
              valuation methodology used in any such appraisal.

       For purposes of Paragraphs (1), (2), or (3) above, the Committee may use
       the closing price as of the applicable date or the trading day prior to
       the applicable date, the average of the high and low prices as of the
       applicable date or for a period certain ending on such date, the price
       determined at the time the transaction is processed, the tender offer
       price for shares of Stock, or any other method which the Committee
       determines is reasonably indicative of the fair market value.

              (j) "Incentive Stock Option" means an incentive stock option
       within the meaning of Section 422 of the Internal Revenue Code.

              (k) "Option" means a Non-Qualified Stock Option or an Incentive
       Stock Option.

              (l) "Over 10% Owner" means an individual who at the time an
       Incentive Stock Option is granted owns Stock possessing more than ten
       percent (10%) of the total combined voting power of the Company or one of
       its Subsidiaries, determined by applying the attribution rules of Code
       Section 424(d).

                                       2
<PAGE>

              (m) "Non-Qualified Stock Option" means a stock option that is not
       an Incentive Stock Option.

              (n) "Parent" means any corporation (other than the Company) in an
       unbroken chain of corporations ending with the Company if, with respect
       to Incentive Stock Options, at the time of the granting of the Option,
       each of the corporations other than the Company owns stock possessing
       fifty percent (50%) or more of the total combined voting power of all
       classes of stock in one of the other corporations in such chain. A Parent
       shall include any entity other than a corporation to the extent
       permissible under Section 424(f) or regulations and rulings thereunder.

              (o) "Participant" means an individual who receives a Stock
       Incentive hereunder.

              (p) "Performance Goals" means the measurable performance
       objectives, if any, established by the Committee for a Performance Period
       that are to be achieved with respect to a Stock Incentive granted to a
       Participant under the Plan. Performance Goals may be described in terms
       of Company-wide objectives or in terms of objectives that are related to
       performance of the division, Affiliate, department or function within the
       Company or an Affiliate in which the Participant receiving the Stock
       Incentive is employed or on which the Participant's efforts have the most
       influence. The achievement of the Performance Goals established by the
       Committee for any Performance Period will be determined without regard to
       the effect on such Performance Goals of any acquisition or disposition by
       the Company of a trade or business, or of substantially all of the assets
       of a trade or business, during the Performance Period and without regard
       to any change in accounting standards by the Financial Accounting
       Standards Board or any successor entity. The Performance Goals
       established by the Committee for any Performance Period under the Plan
       will consist of one or more of the following:

                     (i) earnings per share and/or growth in earnings per share
              in relation to target objectives, excluding the effect of
              extraordinary or nonrecurring items;

                     (ii) operating cash flow and/or growth in operating cash
              flow in relation to target objectives;

                     (iii) cash available in relation to target objectives;

                     (iv) net income and/or growth in net income in relation to
              target objectives, excluding the effect of extraordinary or
              nonrecurring items;

                     (v) revenue and/or growth in revenue in relation to target
              objectives;

                     (vi) total shareholder return (measured as the total of the
              appreciation of and dividends declared on the Common Stock) in
              relation to target objectives;

                     (vii) economic value added;

                                       3
<PAGE>

                     (viii) stock price;

                     (viii) return on invested capital in relation to target
              objectives;

                     (ix) return on shareholder equity in relation to target
              objectives;

                     (x) return on assets in relation to target objectives; and

                     (xi) return on common book equity in relation to target
              objectives

       If the Committee determines that, as a result of a change in the
       business, operations, corporate structure or capital structure of the
       Company, or the manner in which the Company conducts its business, or any
       other events or circumstances, the Performance Goals are no longer
       suitable, the Committee may in its discretion modify such Performance
       Goals or the related minimum acceptable level of achievement, in whole or
       in part, with respect to a period as the Committee deems appropriate and
       equitable.

              (q) "Performance Period" means, with respect to a Stock Incentive,
       a period of time within which the Performance Goals relating to such
       Stock Incentive are to be measured. The Performance Period will be
       established by the Committee at the time the Stock Incentive is granted.

              (r) "Performance Unit Award" refers to a performance unit award as
       described in Section 3.6.

              (s) "Phantom Shares" refers to the rights described in Section
       3.7.

              (t) "Plan" means the SCI Systems, Inc. 2000 Stock Incentive Plan.

              (u) "Stock" means the Company's common stock.

              (v) "Stock Appreciation Right" means a stock appreciation right
       described in Section 3.3.

              (w) "Stock Award" means a stock award described in Section 3.4.

              (x) "Stock Incentive Agreement" means an agreement between the
       Company and a Participant or other documentation evidencing an award of a
       Stock Incentive.

              (y) "Stock Incentive Program" means a written program established
       by the Committee, pursuant to which Stock Incentives are awarded under
       the Plan under uniform terms, conditions and restrictions set forth in
       such written program.

              (z) "Stock Incentives" means, collectively, Dividend Equivalent
       Rights, Incentive Stock Options, Non-Qualified Stock Options, Phantom
       Shares, Stock Appreciation Rights and Stock Awards and Performance Unit
       Awards.

                                       4
<PAGE>

              (aa) "Subsidiary" means any corporation (other than the Company)
       in an unbroken chain of corporations beginning with the Company if, at
       the time of the granting of the Option, each of the corporations other
       than the last corporation in the unbroken chain owns stock possessing
       fifty percent (50%) or more of the total combined voting power of all
       classes of stock in one of the other corporations in the chain. A
       "Subsidiary" shall include any entity other than a corporation to the
       extent permissible under Section 424(f) or regulations or rulings
       thereunder.

              (bb) "Termination of Employment" means the termination of the
       employee-employer relationship between a Participant and the Company and
       its Affiliates, regardless of whether severance or similar payments are
       made to the Participant for any reason, including, but not by way of
       limitation, a termination by resignation, discharge, death, Disability or
       retirement. The Committee will, in its absolute discretion, determine the
       effect of all matters and questions relating to a Termination of
       Employment, including, but not by way of limitation, the question of
       whether a leave of absence constitutes a Termination of Employment.

                       SECTION 2 THE STOCK INCENTIVE PLAN

       2.1 Purpose of the Plan. The Plan is intended to (a) provide incentive to
officers, employees, directors and consultants of the Company and its Affiliates
to stimulate their efforts toward the continued success of the Company and to
operate and manage the business in a manner that will provide for the long-term
growth and profitability of the Company; (b) encourage stock ownership by
officers, employees, directors and consultants by providing them with a means to
acquire a proprietary interest in the Company, acquire shares of Stock, or to
receive compensation which is based upon appreciation in the value of Stock; and
(c) provide a means of obtaining, rewarding and retaining officers, employees,
directors and consultants.

       2.2 Stock Subject to the Plan. Subject to adjustment in accordance with
Section 5.2, seven million five hundred thousand (7,500,000) shares of Stock,
plus the number of shares of Common Stock which are released from reservation
under the SCI Systems, Inc. 1994 Stock Option Incentive Plan immediately prior
to the adoption of this Plan, (the "Maximum Plan Shares") are hereby reserved
exclusively for issuance upon exercise or payment pursuant to Stock Incentives.
The shares of Stock attributable to the nonvested, unpaid, unexercised,
unconverted or otherwise unsettled portion of any Stock Incentive that is
forfeited or cancelled or expires or terminates for any reason without becoming
vested, paid, exercised, converted or otherwise settled in full will again be
available for grant under the Plan.

       2.3 Administration of the Plan. The Plan is administered by the
Committee. The Committee has full authority in its discretion to determine the
officers, employees, directors and consultants of the Company or its Affiliates
to whom Stock Incentives will be granted and the terms and provisions of Stock
Incentives, subject to the Plan. Subject to the provisions of the Plan, the
Committee has full and conclusive authority to interpret the Plan; to prescribe,
amend and rescind rules and regulations relating to the Plan; to determine the
terms and provisions of the respective Stock Incentive Agreements and to make
all other determinations necessary or

                                       5
<PAGE>

advisable for the proper administration of the Plan. The Committee's
determinations under the Plan need not be uniform and may be made by it
selectively among persons who receive, or are eligible to receive, awards under
the Plan (whether or not such persons are similarly situated). The Committee's
decisions are final and binding on all Participants. Notwithstanding the
foregoing, for purposes of any Stock Incentive granted to a director of the
Company who is not also an employee of the Company, the Board of Directors in
its entirety shall constitute the Committee.

       2.4 Eligibility and Limits. Stock Incentives may be granted only to
officers, employees, directors, and consultants of the Company, or any Affiliate
of the Company; provided, however, that an Incentive Stock Option may only be
granted to an employee of the Company or any Subsidiary. In the case of
Incentive Stock Options, the aggregate Fair Market Value (determined as at the
date an Incentive Stock Option is granted) of stock with respect to which stock
options intended to meet the requirements of Code Section 422 become exercisable
for the first time by an individual during any calendar year under all plans of
the Company and its Subsidiaries may not exceed $100,000; provided further, that
if the limitation is exceeded, the Incentive Stock Option(s) which cause the
limitation to be exceeded will be treated as Non-Qualified Stock Option(s).

                       SECTION 3 TERMS OF STOCK INCENTIVES

       3.1 Terms and Conditions of All Stock Incentives.

              (a) The number of shares of Stock as to which a Stock Incentive
       may be granted will be determined by the Committee in its sole
       discretion, subject to the provisions of Section 2.2 as to the total
       number of shares available for grants under the Plan and subject to the
       limits on Options and Stock Appreciation Rights in the following
       sentence. On such date as required by Section 162(m) of the Code and the
       regulations thereunder for compensation to be treated as qualified
       performance based compensation, the maximum number of shares of Stock
       with respect to which any Stock Incentives may be granted during any
       calendar year to any employee may not exceed 500,000. If, after grant, an
       Option is cancelled, the cancelled Option shall continue to be counted
       against the maximum number of shares for which options may be granted to
       an employee as described in this Section 3.1. NOTWITHSTANDING ANY OTHER
       PROVISION HEREOF, AND EXCEPT FOR ADJUSTMENTS TO THE EXERCISE PRICE AS
       CONTEMPLATED BY SECTION 5.2 HEREOF, IN NO EVENT WILL THE EXERCISE PRICE
       PER SHARE OF STOCK PURCHASABLE UNDER ANY OPTION OR THE BASE AMOUNT ON
       WHICH A STOCK APPRECIATION RIGHT IS CALCULATED BE REDUCED AFTER THE DATE
       OF GRANT OF THE OPTION OR STOCK APPRECIATION RIGHT AND NO OPTION OR STOCK
       APPRECIATION RIGHT MAY BE CANCELED OR SURRENDERED IN EXCHANGE FOR AN
       OPTION OR STOCK APPRECIATION RIGHT, AS APPLICABLE, WITH A LOWER EXERCISE
       PRICE.

              (b) Each Stock Incentive will either be evidenced by a Stock
       Incentive Agreement in such form and containing such terms, conditions
       and restrictions as the Committee may determine to be appropriate,
       including without limitation, Performance Goals that must be achieved as
       a condition to vesting or payment of the Stock Incentive,

                                       6
<PAGE>

       or be made subject to the terms of a Stock Incentive Program, containing
       such terms, conditions and restrictions as the Committee may determine to
       be appropriate, including without limitation, Performance Goals that must
       be achieved as a condition to vesting or payment of the Stock Incentive.
       Each Stock Incentive Agreement or Stock Incentive Program is subject to
       the terms of the Plan and any provisions contained in the Stock Incentive
       Agreement or Stock Incentive Program that are inconsistent with the Plan
       are null and void.

              (c) The date a Stock Incentive is granted will be the date on
       which the Committee has approved the terms and conditions of the Stock
       Incentive and has determined the recipient of the Stock Incentive and the
       number of shares covered by the Stock Incentive, and has taken all such
       other actions necessary to complete the grant of the Stock Incentive.

              (d) Any Stock Incentive may be granted in connection with all or
       any portion of a previously or contemporaneously granted Stock Incentive.
       Exercise or vesting of a Stock Incentive granted in connection with
       another Stock Incentive may result in a pro rata surrender or
       cancellation of any related Stock Incentive, as specified in the
       applicable Stock Incentive Agreement or Stock Incentive Program.

              (e) Stock Incentives are not transferable or assignable except by
       will or by the laws of descent and distribution and are exercisable,
       during the Participant's lifetime, only by the Participant; or in the
       event of the Disability of the Participant, by the legal representative
       of the Participant; or in the event of death of the Participant, by the
       legal representative of the Participant's estate or if no legal
       representative has been appointed, by the successor in interest
       determined under the Participant's will; provided, however, that the
       Committee may waive any of the provisions of this Section or provide
       otherwise as to any Stock Incentives other than Incentive Stock Options.

              (f) The terms of any Stock Incentive Agreement award to a
       Participant under the Plan may be modified with the consent of the
       Committee and the Participant.

       3.2 Terms and Conditions of Options. Each Option granted under the Plan
must be evidenced by a Stock Incentive Agreement. At the time any Option is
granted, the Committee will determine whether the Option is to be an Incentive
Stock Option described in Code Section 422 or a Non-Qualified Stock Option, and
the Option must be clearly identified as to its status as an Incentive Stock
Option or a Non-Qualified Stock Option. Incentive Stock Options may only be
granted to employees of the Company or any Subsidiary. At the time any Incentive
Stock Option granted under the Plan is exercised, the Company will be entitled
to legend the certificates representing the shares of Stock purchased pursuant
to the Option to clearly identify them as representing the shares purchased upon
the exercise of an Incentive Stock Option. An Incentive Stock Option may only be
granted within ten (10) years from the earlier of the date the Plan is adopted
or approved by the Company's stockholders.

              (a) Option Price. Subject to adjustment in accordance with Section
       5.2 and the other provisions of this Section 3.2, the exercise price (the
       "Exercise Price") per share

                                       7
<PAGE>

       of Stock purchasable under any Option must be as set forth in the
       applicable Stock Incentive Agreement, but in no event may it be less than
       the Fair Market Value on the date the Option is granted with respect to
       an Incentive Stock Option or any option issued to an employee who is a
       "covered employee" within the meaning of Code Section 162(m).
       Notwithstanding the foregoing, the Exercise Price of any Option which is
       not an Incentive Stock Option, is not granted to a covered employee and
       is granted within four months of the employee's date of employment with
       the Company or Subsidiary, may not be less than the lesser of Fair Market
       Value on the date of grant or Fair Market Value as of the date of the
       employee's employment with the Company or Subsidiary commenced. With
       respect to each grant of an Incentive Stock Option to a Participant who
       is an Over 10% Owner, the Exercise Price may not be less than 110% of the
       Fair Market Value on the date the Option is granted.

              (b) Option Term. Any Incentive Stock Option granted to a
       Participant who is not an Over 10% Owner is not exercisable after the
       expiration of ten (10) years after the date the Option is granted. Any
       Incentive Stock Option granted to an Over 10% Owner is not exercisable
       after the expiration of five (5) years after the date the Option is
       granted. The term of any Non-Qualified Stock Option must be as specified
       in the applicable Stock Incentive Agreement.

              (c) Payment. Payment for all shares of Stock purchased pursuant to
       exercise of an Option will be made in any form or manner authorized by
       the Committee in the Stock Incentive Agreement or by amendment thereto,
       including, but not limited to, cash or, if the Stock Incentive Agreement
       provides:

                     (i) by delivery to the Company of a number of shares of
              Stock which have been owned by the holder for at least six (6)
              months prior to the date of exercise having an aggregate Fair
              Market Value of not less than the product of the Exercise Price
              multiplied by the number of shares the Participant intends to
              purchase upon exercise of the Option on the date of delivery;

                     (ii) in a cashless exercise through a broker; or

                     (iii) by having a number of shares of Stock withheld, the
              Fair Market Value of which as of the date of exercise is
              sufficient to satisfy the Exercise Price.

       In its discretion, the Committee also may authorize (at the time an
       Option is granted or thereafter) Company financing to assist the
       Participant as to payment of the Exercise Price on such terms as may be
       offered by the Committee in its discretion. Payment must be made at the
       time that the Option or any part thereof is exercised, and no shares may
       be issued or delivered upon exercise of an option until full payment has
       been made by the Participant. The holder of an Option, as such, has none
       of the rights of a stockholder.

              (d) Conditions to the Exercise of an Option. Each Option granted
       under the Plan is exercisable by the Participant or any other designated
       person, at such time or times, or upon the occurrence of such event or
       events, and in such amounts, as the

                                       8
<PAGE>

       Committee specifies in the Stock Incentive Agreement; provided, however,
       that subsequent to the grant of an Option, the Committee, at any time
       before complete termination of such Option, may accelerate the time or
       times at which such Option may be exercised in whole or in part,
       including, without limitation, upon a Change in Control as defined in the
       Stock Incentive Agreement and may permit the Participant or any other
       designated person to exercise the Option, or any portion thereof, for all
       or part of the remaining Option term, notwithstanding any provision of
       the Stock Incentive Agreement to the contrary.

              (e) Termination of Incentive Stock Option. With respect to an
       Incentive Stock Option, in the event of Termination of Employment of a
       Participant, the Option or portion thereof held by the Participant which
       is unexercised will expire, terminate, and become unexercisable no later
       than the expiration of three (3) months after the date of Termination of
       Employment; provided, however, that in the case of a holder whose
       Termination of Employment is due to death or Disability, one (1) year
       will be substituted for such three (3) month period; provided, further
       that such time limits may be exceeded by the Committee under the terms of
       the grant, in which case, the Incentive Stock Option will be a
       Non-Qualified Option if it is exercised after the time limits that would
       otherwise apply. For purposes of this Subsection (e), Termination of
       Employment of the Participant will not be deemed to have occurred if the
       Participant is employed by another corporation (or a parent or subsidiary
       corporation of such other corporation) which has assumed the Incentive
       Stock Option of the Participant in a transaction to which Code Section
       424(a) is applicable.

              (f) Special Provisions for Certain Substitute Options.
       Notwithstanding anything to the contrary in this Section 3.2, any Option
       issued in substitution for an option previously issued by another entity,
       which substitution occurs in connection with a transaction to which Code
       Section 424(a) is applicable, may provide for an exercise price computed
       in accordance with such Code Section and the regulations thereunder and
       may contain such other terms and conditions as the Committee may
       prescribe to cause such substitute Option to contain as nearly as
       possible the same terms and conditions (including the applicable vesting
       and termination provisions) as those contained in the previously issued
       option being replaced thereby.

       3.3 Terms and Conditions of Stock Appreciation Rights. Each Stock
Appreciation Right granted under the Plan must be evidenced by a Stock Incentive
Agreement. A Stock Appreciation Right entitles the Participant to receive the
excess of (1) the Fair Market Value of a specified or determinable number of
shares of the Stock at the time of payment or exercise over (2) a specified or
determinable price which, in the case of a Stock Appreciation Right granted in
connection with an Option, may not be less than the Exercise Price for that
number of shares subject to that Option. A Stock Appreciation Right granted in
connection with a Stock Incentive may only be exercised to the extent that the
related Stock Incentive has not been exercised, paid or otherwise settled.

              (a) Settlement. Upon settlement of a Stock Appreciation Right, the
       Company must pay to the Participant the appreciation in cash or shares of
       Stock (valued at the

                                       9
<PAGE>

       aggregate Fair Market Value on the date of payment or exercise) as
       provided in the Stock Incentive Agreement or, in the absence of such
       provision, as the Committee may determine.

              (b) Conditions to Exercise. Each Stock Appreciation Right granted
       under the Plan is exercisable or payable at such time or times, or upon
       the occurrence of such event or events, and in such amounts, as the
       Committee specifies in the Stock Incentive Agreement; provided, however,
       that subsequent to the grant of a Stock Appreciation Right, the
       Committee, at any time before complete termination of such Stock
       Appreciation Right, may accelerate the time or times at which such Stock
       Appreciation Right may be exercised or paid in whole or in part.

       3.4 Terms and Conditions of Stock Awards. The number of shares of Stock
subject to a Stock Award and restrictions or conditions on such shares, if any,
will be as the Committee determines, and the certificate for such shares will
bear evidence of any restrictions or conditions. In no event shall Stock Awards
under the Plan be made for more than seven hundred fifty thousand (750,000)
shares of Stock; provided that the shares of Stock attributable to the nonvested
portion of any Stock Award that is forfeited or cancelled or terminates for any
reason without becoming vested will again be available for grant under the Plan
as a Stock Award. Subsequent to the date of the grant of the Stock Award, the
Committee has the power to permit, in its discretion, an acceleration of the
expiration of an applicable restriction period with respect to any part or all
of the shares awarded to a Participant. The Committee may require a cash payment
from the Participant in an amount no greater than the aggregate Fair Market
Value of the shares of Stock awarded determined at the date of grant in exchange
for the grant of a Stock Award or may grant a Stock Award without the
requirement of a cash payment.

       3.5 Terms and Conditions of Dividend Equivalent Rights. A Dividend
Equivalent Right entitles the Participant to receive payments from the Company
in an amount determined by reference to any cash dividends paid on a specified
number of shares of Stock to Company stockholders of record during the period
such rights are effective. The Committee may impose such restrictions and
conditions on any Dividend Equivalent Right as the Committee in its discretion
shall determine, including the date any such right shall terminate and may
reserve the right to terminate, amend or suspend any such right at any time.

              (a) Payment. Payment in respect of a Dividend Equivalent Right may
       be made by the Company in cash or shares of Stock (valued at Fair Market
       Value as of the date payment is owed) as provided in the Stock Incentive
       Agreement or Stock Incentive Program, or, in the absence of such
       provision, as the Committee may determine.

              (b) Conditions to Payment. Each Dividend Equivalent Right granted
       under the Plan is payable at such time or times, or upon the occurrence
       of such event or events, and in such amounts, as the Committee specifies
       in the applicable Stock Incentive Agreement or Stock Incentive Program;
       provided, however, that subsequent to the grant of a Dividend Equivalent
       Right, the Committee, at any time before complete termination of such
       Dividend Equivalent Right, may accelerate the time or times at which such
       Dividend Equivalent Right may be paid in whole or in part.

                                       10
<PAGE>

       3.6 Terms and Conditions of Performance Unit Awards. A Performance Unit
Award shall entitle the Participant to receive, at a specified future date,
payment of an amount equal to all or a portion of the value of a specified or
determinable number of units (stated in terms of a designated or determinable
dollar amount per unit) granted by the Committee. At the time of the grant, the
Committee must determine the base value of each unit, the number of units
subject to a Performance Unit Award, and the Performance Goals applicable to the
determination of the ultimate payment value of the Performance Unit Award. The
Committee may provide for an alternate base value for each unit under certain
specified conditions.

              (a) Payment. Payment in respect of Performance Unit Awards may be
       made by the Company in cash or shares of Stock (valued at Fair Market
       Value as of the date payment is owed) as provided in the applicable Stock
       Incentive Agreement or Stock Incentive Program or, in the absence of such
       provision, as the Committee may determine.

              (b) Conditions to Payment. Each Performance Unit Award granted
       under the Plan shall be payable at such time or times, or upon the
       occurrence of such event or events, and in such amounts, as the Committee
       shall specify in the applicable Stock Incentive Agreement or Stock
       Incentive Program; provided, however, that subsequent to the grant of a
       Performance Unit Award, the Committee, at any time before complete
       termination of such Performance Unit Award, may accelerate the time or
       times at which such Performance Unit Award may be paid in whole or in
       part.

       3.7 Terms and Conditions of Phantom Shares. Phantom Shares shall entitle
the Participant to receive, at a specified future date, payment of an amount
equal to all or a portion of the Fair Market Value of a specified number of
shares of Stock at the end of a specified period. At the time of the grant, the
Committee will determine the factors which will govern the portion of the
phantom shares so payable, including, at the discretion of the Committee, any
performance criteria that must be satisfied as a condition to payment. Phantom
Share awards containing performance criteria may be designated as performance
share awards.

              (a) Payment. Payment in respect of Phantom Shares may be made by
       the Company in cash or shares of Stock (valued at Fair Market Value as of
       the date payment is owed) as provided in the applicable Stock Incentive
       Agreement or Stock Incentive Program, or, in the absence of such
       provision, as the Committee may determine.

              (b) Conditions to Payment. Each Phantom Share granted under the
       Plan is payable at such time or times, or upon the occurrence of such
       event or events, and in such amounts, as the Committee specify in the
       applicable Stock Incentive Agreement or Stock Incentive Program;
       provided, however, that subsequent to the grant of a Phantom Share, the
       Committee, at any time before complete termination of such Phantom Share,
       may accelerate the time or times at which such Phantom Share may be paid
       in whole or in part.

       3.8 Treatment of Awards Upon Termination of Employment. Except as
otherwise provided by Plan Section 3.2(e), any award under this Plan to a
Participant who has experienced

                                       11
<PAGE>

a Termination of Employment may be cancelled, accelerated, paid or continued, as
provided in the applicable Stock Incentive Agreement or Stock Incentive Program,
or, in the absence of such provision, as the Committee may determine. The
portion of any award exercisable in the event of continuation or the amount of
any payment due under a continued award may be adjusted by the Committee to
reflect the Participant's period of service from the date of grant through the
date of the Participant's Termination of Employment or such other factors as the
Committee determines are relevant to its decision to continue the award.

                         SECTION 4 RESTRICTIONS ON STOCK

       4.1 Escrow of Shares. Any certificates representing the shares of Stock
issued under the Plan will be issued in the Participant's name, but, if the
applicable Stock Incentive Agreement or Stock Incentive Program so provides, the
shares of Stock will be held by a custodian designated by the Committee (the
"Custodian"). Each applicable Stock Incentive Agreement or Stock Incentive
Program providing for transfer of shares of Stock to the Custodian must appoint
the Custodian as the attorney-in-fact for the Participant for the term specified
in the applicable Stock Incentive Agreement or Stock Incentive Program, with
full power and authority in the Participant's name, place and stead to transfer,
assign and convey to the Company any shares of Stock held by the Custodian for
such Participant, if the Participant forfeits the shares under the terms of the
applicable Stock Incentive Agreement or Stock Incentive Program. During the
period that the Custodian holds the shares subject to this Section, the
Participant is entitled to all rights, except as provided in the applicable
Stock Incentive Agreement or Stock Incentive Program, applicable to shares of
Stock not so held. Any dividends declared on shares of Stock held by the
Custodian must provide in the applicable Stock Incentive Agreement or Stock
Incentive Program, to be paid directly to the Participant or, in the
alternative, be retained by the Custodian or by the Company until the expiration
of the term specified in the applicable Stock Incentive Agreement or Stock
Incentive Program and shall then be delivered, together with any proceeds, with
the shares of Stock to the Participant or to the Company, as applicable.

       4.2 Restrictions on Transfer. The Participant does not have the right to
make or permit to exist any disposition of the shares of Stock issued pursuant
to the Plan except as provided in the Plan or the applicable Stock Incentive
Agreement or Stock Incentive Program. Any disposition of the shares of Stock
issued under the Plan by the Participant not made in accordance with the Plan or
the applicable Stock Incentive Agreement or Stock Incentive Program will be
void. The Company will not recognize, or have the duty to recognize, any
disposition not made in accordance with the Plan and the applicable Stock
Incentive Agreement or Stock Incentive Program, and the shares so transferred
will continue to be bound by the Plan and the applicable Stock Incentive
Agreement or Stock Incentive Program.

                          SECTION 5 GENERAL PROVISIONS

       5.1 Withholding. The Company must deduct from all cash distributions
under the Plan any taxes required to be withheld by federal, state or local
government. Whenever the Company proposes or is required to issue or transfer
shares of Stock under the Plan or upon the

                                       12
<PAGE>

vesting of any Stock Award, the Company has the right to require the recipient
to remit to the Company an amount sufficient to satisfy the minimum statutory
federal, state and local tax withholding requirements prior to the delivery of
any certificate or certificates for such shares or the vesting of such Stock
Award. A Participant may pay the withholding obligation in cash, or, if the
applicable Stock Incentive Agreement or Stock Incentive Program provides, a
Participant may elect to have the number of shares of Stock he is to receive
reduced by, or with respect to a Stock Award, tender back to the Company, the
smallest number of whole shares of Stock which, when multiplied by the Fair
Market Value of the shares of Stock determined as of the Tax Date (defined
below), is sufficient to satisfy minimum statutory federal, state and local, if
any, withholding obligations arising from exercise or payment of a Stock
Incentive (a "Withholding Election"). A Participant may make a Withholding
Election only if both of the following conditions are met:

              (a) The Withholding Election must be made on or prior to the date
       on which the amount of tax required to be withheld is determined (the
       "Tax Date") by executing and delivering to the Company a properly
       completed notice of Withholding Election as prescribed by the Committee;
       and

              (b) Any Withholding Election made will be irrevocable except on
       six months advance written notice delivered to the Company; however, the
       Committee may in its sole discretion disapprove and give no effect to the
       Withholding Election.

       5.2 Changes in Capitalization; Merger; Liquidation.

              (a) The number of shares of Stock reserved for the grant of
       Options, Dividend Equivalent Rights, Performance Unit Awards, Phantom
       Shares, Stock Appreciation Rights and Stock Awards; the number of shares
       of Stock reserved for issuance upon the exercise or payment, as
       applicable, of each outstanding Option, Dividend Equivalent Right,
       Phantom Share and Stock Appreciation Right and upon vesting or grant, as
       applicable, of each Stock Award; the number of shares of Stock with
       respect to which any Stock Incentives may be granted during any calendar
       year to any employee, the Exercise Price of each outstanding Option and
       the specified number of shares of Stock to which each outstanding
       Dividend Equivalent Right, Phantom Share and Stock Appreciation Right
       pertains must be proportionately adjusted for any increase or decrease in
       the number of issued shares of Stock resulting from a subdivision or
       combination of shares or the payment of a stock dividend in shares of
       Stock to holders of outstanding shares of Stock or any other increase or
       decrease in the number of shares of Stock outstanding effected without
       receipt of consideration by the Company.

              (b) In the event of a merger, consolidation, reorganization,
       extraordinary dividend, spin-off, sale of substantially all of the
       Company's assets, other change in capital structure of the Company,
       tender offer for shares of Stock, or a change in control of the Company
       (as defined by the Committee in the applicable Stock Incentive Agreement)
       the Committee may make such adjustments with respect to awards and take
       such other action as it deems necessary or appropriate to reflect such
       merger, consolidation, reorganization or tender offer, including, without
       limitation, the

                                       13
<PAGE>

       substitution of new awards, or the adjustment of outstanding awards, the
       acceleration of awards, the removal of restrictions on outstanding
       awards, or the termination of outstanding awards in exchange for the cash
       value determined in good faith by the Committee of the vested and/or
       unvested portion of the award. Any adjustment pursuant to this Section
       5.2 may provide, in the Committee's discretion, for the elimination
       without payment therefor of any fractional shares that might otherwise
       become subject to any Stock Incentive, but except as set forth in this
       Section may not otherwise diminish the then value of the Stock Incentive.

              (c) The existence of the Plan and the Stock Incentives granted
       pursuant to the Plan must not affect in any way the right or power of the
       Company to make or authorize any adjustment, reclassification,
       reorganization or other change in its capital or business structure, any
       merger or consolidation of the Company, any issue of debt or equity
       securities having preferences or priorities as to the Stock or the rights
       thereof, the dissolution or liquidation of the Company, any sale or
       transfer of all or any part of its business or assets, or any other
       corporate act or proceeding.

       5.3 Cash Awards. The Committee may, at any time and in its discretion,
grant to any holder of a Stock Incentive the right to receive, at such times and
in such amounts as determined by the Committee in its discretion, a cash amount
which is intended to reimburse such person for all or a portion of the federal,
state and local income taxes imposed upon such person as a consequence of the
receipt of the Stock Incentive or the exercise of rights thereunder.

       5.4 Compliance with Code. All Incentive Stock Options to be granted
hereunder are intended to comply with Code Section 422, and all provisions of
the Plan and all Incentive Stock Options granted hereunder must be construed in
such manner as to effectuate that intent.

       5.5 Right to Terminate Employment. Nothing in the Plan or in any Stock
Incentive confers upon any Participant the right to continue as an employee or
officer of the Company or any of its Affiliates or affect the right of the
Company or any of its Affiliates to terminate the Participant's employment or
services at any time.

       5.6 Non-Alienation of Benefits. Other than as provided herein, no benefit
under the Plan may be subject in any manner to anticipation, alienation, sale,
transfer, assignment, pledge, encumbrance or charge; and any attempt to do so
shall be void. No such benefit may, prior to receipt by the Participant, be in
any manner liable for or subject to the debts, contracts, liabilities,
engagements or torts of the Participant.

       5.7 Restrictions on Delivery and Sale of Shares; Legends. Each Stock
Incentive is subject to the condition that if at any time the Committee, in its
discretion, shall determine that the listing, registration or qualification of
the shares covered by such Stock Incentive upon any securities exchange or under
any state or federal law is necessary or desirable as a condition of or in
connection with the granting of such Stock Incentive or the purchase or delivery
of shares thereunder, the delivery of any or all shares pursuant to such Stock
Incentive may be withheld unless and until such listing, registration or
qualification shall have been effected. If a

                                       14
<PAGE>

registration statement is not in effect under the Securities Act of 1933 or any
applicable state securities laws with respect to the shares of Stock purchasable
or otherwise deliverable under Stock Incentives then outstanding, the Committee
may require, as a condition of exercise of any Option or as a condition to any
other delivery of Stock pursuant to a Stock Incentive, that the Participant or
other recipient of a Stock Incentive represent, in writing, that the shares
received pursuant to the Stock Incentive are being acquired for investment and
not with a view to distribution and agree that the shares will not be disposed
of except pursuant to an effective registration statement, unless the Company
shall have received an opinion of counsel that such disposition is exempt from
such requirement under the Securities Act of 1933 and any applicable state
securities laws. The Company may include on certificates representing shares
delivered pursuant to a Stock Incentive such legends referring to the foregoing
representations or restrictions or any other applicable restrictions on resale
as the Company, in its discretion, shall deem appropriate.

       5.8 Listing and Legal Compliance. The Committee may suspend the exercise
or payment of any Stock Incentive so long as it determines that securities
exchange listing or registration or qualification under any securities laws is
required in connection therewith and has not been completed on terms acceptable
to the Committee.

       5.9 Termination and Amendment of the Plan. The Board of Directors at any
time may amend or terminate the Plan without stockholder approval; provided,
however, that the Board of Directors may condition any amendment on the approval
of stockholders of the Company if such approval is necessary or advisable with
respect to tax, securities or other applicable laws. No such termination or
amendment without the consent of the holder of a Stock Incentive may adversely
affect the rights of the Participant under such Stock Incentive.

       5.10 Stockholder Approval. The Plan must be submitted to the stockholders
of the Company for their approval within twelve (12) months before or after the
adoption of the Plan by the Board of Directors of the Company. If such approval
is not obtained, any Stock Incentive granted hereunder will be void.

       5.11 Choice of Law. The laws of the State of Alabama shall govern the
Plan, to the extent not preempted by federal law, without reference to the
principles of conflict of laws.

                                       15
<PAGE>

       5.12 Effective Date of Plan. This Plan was approved by the Board of
Directors as of July 19, 2000.

                                        SCI SYSTEMS, INC.

                                        By: /s/ A. Eugene Sapp, Jr.
                                           -------------------------------------
                                        Title: President and Chief Executive
                                               Officer
                                              ----------------------------------

ATTEST:

/s/ Michael Sullivan
------------------------------------

Title: Secretary
      ------------------------------

            [CORPORATE SEAL]

                                       16

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