Document:

Exhibit 4.9

                           INTERNEXT COMPRESSION, INC.

                           1997 EQUITY INCENTIVE PLAN

              As Adopted by the Board of Directors on June 5, 1997

     1. PURPOSE. The purpose of this Plan is to provide incentives to attract,
retain and motivate eligible persons whose present and potential contributions
are important to the success of the Company, its Parent and Subsidiaries, by
offering them an opportunity to participate in the Company's future performance
through awards of Options and Restricted Stock. Capitalized terms not defined in
the text are defined in Section 22. This Plan is intended to be a written
compensatory benefit plan within the meaning of Rule 701 promulgated under the
Securities Act.

     2. SHARES SUBJECT TO THE PLAN.

          2.1 NUMBER OF SHARES AVAILABLE. Subject to Sections 2.2 and 17, the
total number of Shares reserved and available for grant and issuance pursuant to
this Plan will be Two Million Eight Hundred Thousand (2,800,000) Shares or such
lesser number of Shares as permitted under Section 260.140.45 of Title 10 of the
California Code of Regulations. Subject to Sections 2.2 and 17, Shares will
again be available for grant and issuance in connection with future Awards under
this Plan that: (a) are subject to issuance upon exercise of an Option but cease
to be subject to such Option for any reason other than exercise of such Option
or (b) are subject to an Award that otherwise terminates without Shares being
issued. At all times the Company will reserve and keep available a sufficient
number of Shares as will be required to satisfy the requirements of all Awards
granted under this Plan.

          2.2 ADJUSTMENT OF SHARES. In the event that the number of outstanding
shares of the Company's Common Stock is changed by a stock dividend,
recapitalization, stock split, reverse stock split, subdivision, combination,
reclassification or similar change in the capital structure of the Company
without consideration, then (a) the number of Shares reserved for issuance under
this Plan, (b) the Exercise Prices of and number of Shares subject to
outstanding Options, and (c) the Purchase Price of and number of Shares subject
to other outstanding Awards will be proportionately adjusted, subject to any
required action by the Board or the shareholders of the Company and compliance

                                       1

<PAGE>

with applicable securities laws; provided, however, that fractions of a Share
will not be issued but will either be paid in cash at Fair Market Value of such
fraction of a Share or will be rounded down to the nearest whole Share, as
determined by the Committee.

     3. ELIGIBILITY. ISOs (as defined in Section 5 below) may be granted only to
employees (including officers and directors who are also employees) of the
Company or of a Parent or Subsidiary of the Company. All other Awards may be
granted to employees, officers, directors and consultants of the Company or any
Parent or Subsidiary of the Company; provided such consultants render bona fide
services not in connection with the offer and sale of securities in a
capital-raising transaction. A person may be granted more than one Award under
this Plan.

     4. ADMINISTRATION.

          4.1 COMMITTEE AUTHORITY. This Plan will be administered by the
Committee or the Board acting as the Committee. Subject to the general purposes,
terms and conditions of this Plan, and to the direction of the Board, the
Committee will have full power to implement and carry out this Plan. Without
limitation, the Committee will have the authority to:

               (a)  construe and interpret this Plan, any Award Agreement and
                    any other agreement or document executed pursuant to this
                    Plan;

               (b)  prescribe, amend and rescind rules and regulations relating
                    to this Plan;

               (c)  select persons to receive Awards;

               (d)  determine the form and terms of Awards;

               (e)  determine the number of Shares or other consideration
                    subject to Awards;

               (f)  determine whether Awards will be granted singly, in
                    combination with, in tandem with, in replacement of, or as
                    alternatives to, other Awards under this Plan or any other
                    incentive or compensation plan of the Company or any Parent
                    or Subsidiary of the Company;

               (g)  grant waivers of Plan or Award conditions;

                                       2

<PAGE>

               (h)  determine the vesting, exercisability and payment of Awards;

               (i)  correct any defect, supply any omission, or reconcile any
                    inconsistency in this Plan, any Award, any Award Agreement,
                    any Exercise Agreement or any Restricted Stock Purchase
                    Agreement;

               (j)  determine whether an Award has been earned; and

               (k)  make all other determinations necessary or advisable for the
                    administration of this Plan.

          4.2 COMMITTEE DISCRETION. Any determination made by the Committee with
respect to any Award will be made in its sole discretion at the time of grant of
the Award or, unless in contravention of any express term of this Plan or Award,
and subject to Section 5.9, at any later time, and such determination will be
final and binding on the Company and on all persons having an interest in any
Award under this Plan. The Committee may delegate to one or more officers of the
Company the authority to grant an Award under this Plan to Participants who are
not Insiders of the Company.

     5. OPTIONS. The Committee may grant Options to eligible persons and will
determine whether such Options will be Incentive Stock Options within the
meaning of the Code ("ISOs") or Nonqualified Stock Options ("NQSOs"), the number
of Shares subject to the Option, the Exercise Price of the Option, the period
during which the Option may be exercised, and all other terms and conditions of
the Option, subject to the following:

          5.1 FORM OF OPTION GRANT. Each Option granted under this Plan will be
evidenced by an Award Agreement which will expressly identify the Option as an
ISO or an NQSO ("Stock Option Agreement"), and will be in such form and contain
such provisions (which need not be the same for each Participant) as the
Committee may from time to time approve, and which will comply with and be
subject to the terms and conditions of this Plan.

          5.2 DATE OF GRANT. The date of grant of an Option will be the date on
which the Committee makes the determination to grant such Option, unless
otherwise specified by the Committee. The Stock Option Agreement and a copy of

                                       3

<PAGE>

this Plan will be delivered to the Participant within a reasonable time after
the granting of the Option.

          5.3 EXERCISE PERIOD. Options may be exercisable immediately (subject
to repurchase pursuant to Section 11 of this Plan) or may be exercisable within
the times or upon the events determined by the Committee as set forth in the
Stock Option Agreement governing such Option; provided, however, that no Option
will be exercisable after the expiration of ten (10) years from the date the
Option is granted; and provided further that no ISO granted to a person who
directly or by attribution owns more than ten percent (10%) of the total
combined voting power of all classes of stock of the Company or of any Parent or
Subsidiary of the Company ("Ten Percent Shareholder") will be exercisable after
the expiration of five (5) years from the date the ISO is granted. The Committee
also may provide for Options to become exercisable at one time or from time to
time, periodically or otherwise, in such number of Shares or percentage of
Shares as the Committee determines. Subject to earlier termination of the Option
as provided herein, each Participant who is not an officer, director or
consultant of the Company or of a Parent or Subsidiary of the Company shall have
the right to exercise an Option granted hereunder at the rate of at least twenty
percent (20%) per year over five (5) years from the date such Option is granted.

          5.4 EXERCISE PRICE. The Exercise Price of an Option will be determined
by the Committee when the Option is granted and may not be less than 85% of the
Fair Market Value of the Shares on the date of grant; provided that (i) the
Exercise Price of an ISO will not be less than 100% of the Fair Market Value of
the Shares on the date of grant and (ii) the Exercise Price of any Option
granted to a Ten Percent Shareholder will not be less than 110% of the Fair
Market Value of the Shares on the date of grant. Payment for the Shares
purchased must be made in accordance with Section 7 of this Plan.

          5.5 METHOD OF EXERCISE. Options may be exercised only by delivery to
the Company of a written stock option exercise agreement (the "Exercise
Agreement") in a form approved by the Committee (which need not be the same for
each Participant), stating the number of Shares being purchased, the
restrictions imposed on the Shares purchased under such Exercise Agreement, if
any, and such representations and agreements regarding Participant's investment
intent and access to information and other matters, if any, as may be required
or desirable by the Company to comply with applicable securities laws, together

                                       4

<PAGE>

with payment in full of the Exercise Price, and any applicable taxes, for the
number of Shares being purchased.

          5.6 TERMINATION. Subject to earlier termination pursuant to Sections
17 and 18 and notwithstanding the exercise periods set forth in the Stock Option
Agreement, exercise of an Option will always be subject to the following:

               (a)  If the Participant is Terminated for any reason except
                    death, Disability or for Cause, then the Participant may
                    exercise such Participant's Options only to the extent that
                    such Options are exercisable upon the Termination Date no
                    later than three (3) months after the Termination Date (or
                    such shorter time period, not less than thirty (30) days, as
                    may be specified in the Stock Option Agreement) or such
                    longer time period not exceeding five (5) years after the
                    Termination Date as may be determined by the Committee, with
                    any exercise beyond three (3) months after the Termination
                    Date deemed to be an NQSO, but in any event, no later than
                    the expiration date of the Options.

               (b)  If the Participant is Terminated because of Participant's
                    death or Disability (or the Participant dies within three
                    (3) months after a Termination other than because of
                    Participant's death or Disability or Cause), then
                    Participant's Options may be exercised only to the extent
                    that such Options are exercisable by Participant on the
                    Termination Date and must be exercised by Participant (or
                    Participant's legal representative or authorized assignee)
                    no later than twelve (12) months after the Termination Date
                    (or such shorter time period, not less than six (6) months,
                    as may be specified in the Stock Option Agreement) or such
                    longer time period not exceeding five (5) years after the

                                       5

<PAGE>

                    Termination Date as may be determined by the Committee, with
                    any exercise beyond (a) three (3) months after the
                    Termination Date when the Termination is for any reason
                    other than the Participant's death or disability, within the
                    meaning of Section 22(e)(3) of the Code, or (b) twelve (12)
                    months after the Termination Date when the Termination is
                    for Participant's death or disability, within the meaning of
                    Section 22(e)(3) of the Code, deemed to be an NQSO, but in
                    any event no later than the expiration date of the Options.

               (c)  If the Participant is terminated for Cause, then
                    Participant's Options shall expire on such Participant's
                    Termination Date, or at such later time and on such
                    conditions as determined by the Committee.

               5.7 LIMITATIONS ON EXERCISE. The Committee may specify a
reasonable minimum number of Shares that may be purchased on any exercise of an
Option, provided that such minimum number will not prevent Participant from
exercising the Option for the full number of Shares for which it is then
exercisable.

               5.8 LIMITATIONS ON ISOS. The aggregate Fair Market Value
(determined as of the date of grant) of Shares with respect to which ISOs are
exercisable for the first time by a Participant during any calendar year (under
this Plan or under any other incentive stock option plan of the Company or any
Parent or Subsidiary of the Company) will not exceed $100,000. If the Fair
Market Value of Shares on the date of grant with respect to which ISOs are
exercisable for the first time by a Participant during any calendar year exceeds
$100,000, then the Options for the first $100,000 worth of Shares to become
exercisable in such calendar year will be ISOs and the Options for the amount in
excess of $100,000 that become exercisable in that calendar year will be NQSOs.
In the event that the Code or the regulations promulgated thereunder are amended
after the Effective Date (as defined in Section 18 below) to provide for a
different limit on the Fair Market Value of Shares permitted to be subject to
ISOs, then such different limit will be automatically incorporated herein and
will apply to any Options granted after the effective date of such amendment.

               5.9 MODIFICATION, EXTENSION OR RENEWAL. The Committee may modify,
extend or renew outstanding Options and authorize the grant of new Options in
substitution therefor, provided that any such action may not, without the
written. consent of a Participant, impair any of such Participant's rights under
any Option previously granted. Any outstanding ISO that is modified, extended,
renewed or otherwise altered will be treated in accordance with Section 424(h)

                                       6

<PAGE>

of the Code. The Committee may reduce the Exercise Price of outstanding Options
without the consent of Participants affected by a written notice to them;
provided, however, that the Exercise Price may not be reduced below the minimum
Exercise Price that would be permitted under Section 5.4 of this Plan for
Options granted on the date the action is taken to reduce the Exercise Price.

               5.10 NO DISQUALIFICATION. Notwithstanding any other provision in
this Plan, no term of this Plan relating to ISOs will be interpreted, amended or
altered, nor will any discretion or authority granted under this Plan be
exercised, so as to disqualify this Plan under Section 422 of the Code or,
without the consent of the Participant affected, to disqualify any ISO under
Section 422 of the Code.

     6. RESTRICTED STOCK. A Restricted Stock Award is an offer by the Company to
sell to an eligible person Shares that are subject to restrictions. The
Committee will determine to whom an offer will be made, the number of Shares the
person may purchase, the Purchase Price, the restrictions to which the Shares
will be subject, and all other terms and conditions of the Restricted Stock
Award, subject to the following:

               6.1 FORM OF RESTRICTED STOCK AWARD. All purchases under a
Restricted Stock Award made pursuant to this Plan will be evidenced by an Award
Agreement ("Restricted Stock Purchase Agreement") that will be in such form
(which need not be the same for each Participant) as the Committee will from
time to time approve, and will comply with and be subject to the terms and
conditions of this Plan. The Restricted Stock Award will be accepted by the
Participant's execution and delivery of the Restricted Stock Purchase Agreement
and full payment for the Shares to the Company within thirty (30) days from the
date the Restricted Stock Purchase Agreement is delivered to the person. If such
person does not execute and deliver the Restricted Stock Purchase Agreement
along with full payment for the Shares to the Company within thirty (30) days,
then the offer will terminate, unless otherwise determined by the Committee.

               6.2 PURCHASE PRICE. The Purchase Price of Shares sold pursuant to
a Restricted Stock Award will be determined by the Committee and will be it
least 85% of the Fair Market Value of the Shares on the date the Restricted
Stock Award is granted or at the time the purchase is consummated, except in the
case of a sale to a Ten Percent Shareholder, in which case the Purchase Price

                                       7

<PAGE>

will be 100% of the Fair Market Value on the date the Restricted Stock Award is
granted or at the time the purchase is consummated. Payment of the Purchase
Price may be made in accordance with Section 7 of this Plan.

          6.3 RESTRICTIONS. Restricted Stock Awards may be subject to the
restrictions set forth in Section 11 of this Plan or such other restrictions not
inconsistent with Section 25102(o) of the California Corporations Code.

     7. PAYMENT FOR SHARE PURCHASES.

          7.1 Payment. Payment for Shares purchased pursuant to this Plan may be
made in cash (by check) or, where expressly approved for the Participant by the
Committee and where permitted by law:

               (a)  by cancellation of indebtedness of the Company to the
                    Participant;

               (b)  by surrender of shares that either: (1) have been owned by
                    Participant for more than six (6) months and have been paid
                    for within the meaning of SEC Rule 144 (and, if such shares
                    were purchased from the Company by use of a promissory note,
                    such note has been fully paid with respect to such shares);
                    or (2) were obtained by Participant in the public market;

               (c)  by tender of a full recourse promissory note having such
                    terms as may be approved by the Committee and bearing
                    interest at a rate sufficient to avoid imputation of income
                    under Sections 483 and 1274 of the Code; provided, however,
                    that Participants who are not employees or directors of the
                    Company will not be entitled to purchase Shares with a
                    promissory note unless the note is adequately secured by
                    collateral other than the Shares.

               (d)  by waiver of compensation due or accrued to the Participant
                    for services rendered;

               (e)  with respect only to purchases upon exercise of an Option,
                    and provided that a public market for the Company's stock
                    exists:

                                       8

<PAGE>

          7.1.5.1   through a "same day sale" commitment from the Participant
                    and a broker-dealer that is a member of the National
                    Association of Securities Dealers (an "NASD Dealer") whereby
                    the Participant irrevocably elects to exercise the Option
                    and to sell a portion of the Shares so purchased to pay for
                    the Exercise Price, and whereby the NASD Dealer irrevocably
                    commits upon receipt of such Shares to forward the Exercise
                    Price directly to the Company; or

          7.1.5.2   through a "margin" commitment from the Participant and an
                    NASD Dealer whereby the Participant irrevocably elects to
                    exercise the Option and to pledge the Shares so purchased to
                    the NASD Dealer in a margin account as security for a loan
                    from the NASD Dealer in the amount of the Exercise Price,
                    and whereby the NASD Dealer irrevocably commits upon receipt
                    of such Shares to forward the Exercise Price directly to the
                    Company; or

               (f)  by any combination of the foregoing.

          7.2 LOAN GUARANTEES. The Committee may help the Participant pay for
Shares purchased under this Plan by authorizing a guarantee by the Company of a
third-party loan to the Participant.

     8.   WITHHOLDING TAXES.

          8.1 WITHHOLDING GENERALLY. Whenever Shares are to be issued in
satisfaction of Awards granted under this Plan, the Company may require the
Participant to remit to the Company an amount sufficient to satisfy federal,
state and local withholding tax requirements prior to the delivery of any
certificate or certificates for such Shares. Whenever, under this Plan, payments
in satisfaction of Awards are to be made in cash, such payment will be net of an
amount sufficient to satisfy federal, state, and local withholding tax
requirements.

          8.2 STOCK WITHHOLDING. When, under applicable tax laws, a Participant
incurs tax liability in connection with the exercise or vesting of any Award
that is subject to tax withholding and the Participant is obligated to pay the

                                       9

<PAGE>

Company the amount required to be withheld, the Committee may in its sole
discretion allow the Participant to satisfy the minimum withholding tax
obligation by electing to have the Company withhold from the Shares to be issued
that number of Shares having a Fair Market Value equal to the minimum amount
required to be withheld, determined on the date that the amount of tax to be
withheld is to be determined. All elections by a Participant to have Shares
withheld for this purpose will be made in accordance with the requirements
established by the Committee for such elections and be in writing in a form
acceptable to the Committee.

     9.   PRIVILEGES OF STOCK OWNERSHIP.

          9.1 VOTING AND DIVIDENDS. No Participant will have any of the rights
of a shareholder with respect to any Shares until the Shares are issued to the
Participant. After Shares are issued to the Participant, the Participant will be
a shareholder and have all the rights of a shareholder with respect to such
Shares, including the right to vote and receive all dividends or other
distributions made or paid with respect to such Shares; provided, that if such
Shares are Restricted Stock, then any new, additional or different securities
the Participant may become entitled to receive with respect to such Shares by
virtue of a stock dividend, stock split or any other change in the corporate or
capital structure of the Company will be subject to the same restrictions as the
Restricted Stock; provided, further, that the Participant will have no right to
retain such stock dividends or stock distributions with respect to Unvested
Shares that are repurchased pursuant to Section 11. The Company will comply with
Section 260.140.1 of Title 10 of the California Code of Regulations with respect
to the voting rights of Common Stock.

          9.2 FINANCIAL STATEMENTS. The Company will provide financial
statements to each Participant prior to such Participant's purchase of Shares
under this Plan, and to each Participant annually during the period such
Participant has Awards outstanding, or as otherwise required or permitted under
Section 260.140.46 of Title 10 of the California Code of Regulations.
Notwithstanding the foregoing, the Company will not be required to provide such
financial statements to Participants whose services in connection with the
Company assure them access to equivalent information.

          10. TRANSFERABILITY. Awards granted under this Plan, and any interest
therein, will not be transferable or assignable by Participant, and may not be
made subject to execution, attachment or similar process, otherwise than by will

                                       10

<PAGE>

or by the laws of descent and distribution. During the lifetime of the
Participant an Award will be exercisable only by the Participant, and any
elections with respect to an Award, may be made only by the Participant.

     11. RESTRICTIONS ON SHARES. At the discretion of the Committee, the Company
may reserve to itself and/or its assignee(s) in the Award Agreement (a) a right
of first refusal to purchase all Shares that a Participant (or a subsequent
transferee) may propose to transfer to a third party, unless otherwise not
permitted by Section 25102(o) of the California Corporations Code, provided,
that such right of first refusal terminates upon the Company's initial public
offering of Common Stock pursuant an effective registration statement filed
under the Securities Act and/or (b) a right to repurchase Unvested Shares held
by a Participant following such Participant's Termination at any time within
ninety (90) days after Participant's Termination Date (or, in the case of
securities issued upon exercise of an Option after the Participant's Termination
Date, within 90 days after the date of such exercise) for cash and/or
cancellation of purchase money indebtedness, at the Participant's Exercise Price
or Purchase Price, as the case may be, provided, that to the extent the
Participant is not an officer, director or consultant of the Company or of a
Parent or Subsidiary of the Company, such right of repurchase lapses at the rate
of at least twenty percent (20%) per year over five (5) years from: (A) the date
of grant of the Option or (B) in the case of Restricted Stock, the date the
Participant purchases the Shares.

     12. CERTIFICATES. All certificates for Shares or other securities delivered
under this Plan will be subject to such stock transfer orders, legends and other
restrictions as the Committee may deem necessary or advisable, including
restrictions under any applicable federal, state or foreign securities law, or
any rules, regulations and other requirements of the SEC or any stock exchange
or automated quotation system upon which the Shares may be listed or quoted.

     13. ESCROW; PLEDGE OF SHARES. To enforce any restrictions on a
Participant's Shares, the Committee may require the Participant to deposit all
certificates representing Shares, together with stock powers or other
instruments of transfer approved by the Committee, appropriately endorsed in
blank, with the Company or an agent designated by the Company to hold in escrow
until such restrictions have lapsed or terminated, and the Committee may cause a
legend or legends referencing such restrictions to be placed on the
certificates. Any Participant who is permitted to execute a promissory note as

                                       11

<PAGE>

partial or full consideration for the purchase of Shares under this Plan will be
required to pledge and deposit with the Company all or part of the Shares so
purchased as collateral to secure the payment of Participant's obligation to the
Company under the promissory note; provided, however, that the Committee may
require or accept other or additional forms of collateral to secure the payment
of such obligation and, in any event, the Company will have full recourse
against the Participant under the promissory note notwithstanding any pledge of
the Participant's Shares or other collateral. In connection with any pledge of
the Shares, Participant will be required to execute and deliver a written pledge
agreement in such form as the Committee will from time to time approve. The
Shares purchased with the promissory note may be released from the pledge on a
pro rata basis as the promissory note is paid.

     14. EXCHANGE AND BUYOUT OF AWARDS. The Committee may, at any time or from
time to time, authorize the Company, with the consent of the respective
Participants, to issue new Awards in exchange for the surrender and cancellation
of any or all outstanding Awards. The Committee may at any time buy from a
Participant an Award previously granted with payment in cash, shares of Common
Stock of the Company (including restricted stock) or other consideration, based
on such terms and conditions as the Committee and the Participant may agree.

     15. SECURITIES LAW AND OTHER REGULATORY COMPLIANCE. This Plan is intended
to comply with Section 25102(o) of the California Corporations Code. Any
provision of the Plan which is inconsistent with Section 25102(o) shall, without
further act or amendment by the Company or the Board, be reformed to comply with
the requirements of Section 25102(o). An Award will not be effective unless such
Award is in compliance with all applicable federal and state securities laws,
rules and regulations of any governmental body, and the requirements of any
stock exchange or automated quotation system upon which the Shares may then be
listed or quoted, as they are in effect on the date of grant of the Award and
also on the date of exercise or other issuance. Notwithstanding any other
provision in this Plan, the Company will have no obligation to issue or deliver
certificates for Shares under this Plan prior to (a) obtaining any approvals
from governmental agencies that the Company determines are necessary or
advisable, and/or (b) compliance with any exemption, completion of any
registration or other qualification of such Shares under any state or federal

                                       12

<PAGE>

law or ruling of any governmental body that the Company determines to be
necessary or advisable. The Company will be under no obligation to register the
Shares with the SEC or to effect compliance with the exemption, registration,
qualification or listing requirements of any state securities laws, stock
exchange or automated quotation system, and the Company will have no liability
for any inability or failure to do so.

     16. NO OBLIGATION TO EMPLOY. Nothing in this Plan or any Award granted
under this Plan will confer or be deemed to confer on any Participant any right
to continue in the employ of, or to continue any other relationship with, the
Company or any Parent or Subsidiary of the Company or limit in any way the right
of the Company or any Parent or Subsidiary of the Company to terminate
Participant's employment or other relationship at any time, with or without
cause.

     17. CORPORATE TRANSACTIONS.

          17.1 ASSUMPTION OR REPLACEMENT OF AWARDS BY SUCCESSOR. In the event of
(a) a dissolution or liquidation of the Company, (b) a merger or consolidation
in which the Company is not the surviving corporation (other than a merger or
consolidation with a wholly-owned subsidiary, a reincorporation of the Company
in a different jurisdiction, or other transaction in which there is no
substantial change in the shareholders of the Company or their relative stock
holdings and the Awards granted under this Plan are assumed, converted or
replaced by the successor corporation, which assumption will be binding on all
Participants), (c) a merger in which the Company is the surviving corporation
but after which the shareholders of the Company immediately prior to such merger
(other than any shareholder which merges, or which owns or controls another
corporation which merges, with the Company in such merger) cease to own their
shares or other equity interests in the Company, or (d) the sale of
substantially all of the assets of the Company, any or all outstanding Awards
will automatically vest for one additional year prior to the consummation of
such event at such times and on such conditions as the Committee determines.
Such accelerated Awards may be assumed, converted or replaced by the successor
corporation (if any), which assumption, conversion or replacement will be
binding on all Participants. In the alternative, the successor corporation may
substitute equivalent Awards or provide substantially similar consideration to
Participants as was provided to shareholders (after taking into account the
existing provisions of the accelerated Awards). The successor corporation may
also issue, in place of outstanding Shares of the Company held by the

                                       13

<PAGE>

Participant, substantially similar shares or other property subject to
repurchase restrictions and other provisions no less favorable to the
Participant than those which applied to such outstanding Shares immediately
prior to such transaction described in this Subsection 17.1. In the event such
successor corporation (if any) does not assume or substitute the accelerated
Awards, as provided above, pursuant to a transaction described in this
Subsection 17.1, then any accelerated Options which are not exercised prior to
the consummation of the corporate transaction shall terminate in accordance with
the provisions of this Plan.

          17.2 OTHER TREATMENT OF AWARDS. Subject to any greater rights granted
to Participants under the foregoing provisions of this Section 17, in the event
of the occurrence of any transaction described in Section 17.1, any outstanding
Awards will be treated as provided in the applicable agreement or plan of
merger, consolidation, dissolution, liquidation or sale of assets.

          17.3 ASSUMPTION OF AWARDS BY THE COMPANY. The Company, from time to
time, also may substitute or assume outstanding awards granted by another
company, whether in connection with an acquisition of such other company or
otherwise, by either (a) granting an Award under this Plan in substitution of
such other company's award or (b) assuming such award as if it had been granted
under this Plan if the terms of such assumed award could be applied to an Award
granted under this Plan. Such substitution or assumption will be permissible if
the holder of the substituted or assumed award would have been eligible to be
granted an Award under this Plan if the other company had applied the rules of
this Plan to such grant. In the event the Company assumes an award granted by
another company, the terms and conditions of such award will remain unchanged
(except that the exercise price and the number and nature of shares issuable
upon exercise of any such option will be adjusted appropriately pursuant to
Section 424(a) of the Code). In the event the Company elects to grant a new
Option rather than assuming an existing option, such new Option may be granted
with a similarly adjusted Exercise Price.

     18. ADOPTION AND SHAREHOLDER APPROVAL. This Plan will become effective on
the date that it is adopted by the Board (the "Effective Date"). This Plan will
be approved by the shareholders of the Company (excluding Shares issued pursuant
to this Plan), consistent with applicable laws, within twelve (12) months before
or after the Effective Date. Upon the Effective Date, the Board may grant Awards
pursuant to this Plan; provided, however, that no Option may be exercised prior
to shareholder approval of this Plan. In the event that

                                       14

<PAGE>

shareholder approval is not obtained within twelve (12) months before or after
the date this Plan is adopted by the Board, all Awards granted hereunder will be
canceled, any Shares issued pursuant to any Award will be canceled and any
purchase of Shares hereunder will be rescinded.

     19. TERM OF PLAN/GOVERNING LAW. Unless earlier terminated as provided
herein, this Plan will terminate ten (10) years from the Effective Date or, if
earlier, the date of shareholder approval. This Plan and all agreements
hereunder shall be governed by and construed in accordance with the laws of the
State of California.

     20. AMENDMENT OR TERMINATION OF PLAN. Subject to Section 5.9, the Board may
at any time terminate or amend this Plan in any respect, including without
limitation amendment of any form of Award Agreement or instrument to be executed
pursuant to this Plan; provided, however, that the Board will not, without the
approval of the shareholders of the Company, amend this Plan in any manner that
requires such shareholder approval pursuant to the Code or the regulations
promulgated thereunder as such provisions apply to ISO plans.

     21. NONEXCLUSIVITY OF THE PLAN. Neither the adoption of this Plan by the
Board, the submission of this Plan to the shareholders of the Company for
approval, nor any provision of this Plan will be construed as creating any
limitations on the power of the Board to adopt such additional compensation
arrangements as it may deem desirable, including, without limitation, the
granting of stock options otherwise than under this Plan, and such arrangements
may be either generally applicable or applicable only in specific cases.

     22. DEFINITIONS. As used in this Plan, the following terms will have the
following meanings:

          "Award" means any award under this Plan, including any Option or
Restricted Stock Award.

          "Award Agreement" means, with respect to each Award, the signed
written agreement between the Company and the Participant setting forth the
terms and conditions of the Award.

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

          "Cause" means Termination because of (i) any willful material
violation by the Participant of any law or regulation applicable to the business
of the Company or a Parent or Subsidiary of the Company, the Participant's
conviction for, or guilty plea to, a felony or a crime involving moral

                                       15

<PAGE>

turpitude, any willful perpetration by the Participant of a common law fraud or
any unlawful use by the Participant of drugs or other controlled substances,
(ii) the Participant's commission of an act of personal dishonesty which
involves personal profit in connection with the Company or any other entity
having a business relationship with the Company, (iii) any material breach by
the Participant of any provision of any agreement or understanding between the
Company and the Participant regarding the terms of the Participant's service as
an employee, director or consultant to the Company or a Parent or Subsidiary of
the Company, including without limitation, the willful and continued failure or
refusal of the Participant to perform the material duties required of such
Participant as an employee, director or consultant of the Company or a Parent or
Subsidiary of the Company, other than as a result of having a Disability, or a
breach of any applicable invention assignment and confidentiality agreement or
similar agreement between the Company and the Participant, (iv) Participant's
disregard of the policies of the Company so as to cause loss, damage or injury
to the property, reputation or employees of the Company or a Parent or
Subsidiary of the Company, or (v) any other misconduct by the Participant which
is materially injurious to the financial condition or business reputation of, or
is otherwise materially injurious to, the Company or a Parent or Subsidiary of
the Company.

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

          "Committee" means the committee appointed by the Board to administer
this Plan, or if no committee is appointed, the Board.

          "Company" means Internext Compression, Inc., or any successor
corporation.

          "Disability" means a disability, whether temporary or permanent,
partial or total, as determined by the Committee.

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

          "Exercise Price" means the price at which a holder of an Option may
purchase the Shares issuable upon exercise of the Option.

          "Fair Market Value" means, as of any date, the value of a share of the
Company's Common Stock determined as follows:

                                       16

<PAGE>

          (a)  if such Common Stock is then quoted on the Nasdaq National
               Market, its closing price on the Nasdaq National Market on the
               date of determination as reported in The Wall Street Journal;

          (b)  if such Common Stock is publicly traded and is then listed on a
               national securities exchange, its closing price on the date of
               determination on the principal national securities exchange on
               which the Common Stock is listed or admitted to trading as
               reported in The Wall Street Journal;

          (c)  if such Common Stock is publicly traded but is not quoted on the
               Nasdaq National Market nor listed or admitted to trading on a
               national securities exchange, the average of the closing bid and
               asked prices on the date of determination as reported by The Wall
               Street Journal (or, if not so reported, as otherwise reported by
               any newspaper or other source as the Board may determine); or

          (d)  if none of the foregoing is applicable, by the Committee in good
               faith.

          "Insider" means an officer or director of the Company or any other
person whose transactions in the Company's Common Stock are subject to Section
16 of the Exchange Act.

          "Option" means an award of an option to purchase Shares pursuant to
Section 5.

          "Parent" means any corporation (other than the Company) in an unbroken
chain of corporations ending with the Company if each of such corporations other
than the Company owns stock possessing 50% or more of the total combined voting
power of all classes of stock in one of the other corporations in such chain.

          "Participant" means a person who receives an Award under this Plan.

          "Plan" means this Internext Compression, Inc. 1997 Equity Incentive
Plan, as amended from time to time.

          "Purchase Price" the price at which a Participant may purchase
Restricted Stock.

                                       17

<PAGE>

          "Restricted Stock" means Shares purchased pursuant to a Restricted
Stock Award.

          "Restricted Stock Award" means an award of Shares pursuant to Section
6.

          "SEC" means the Securities and Exchange Commission.

          "Securities Act" means the Securities Act of 1933, as amended.

          "Shares" means shares of the Company's Common Stock, reserved for
issuance under this Plan, as adjusted pursuant to Sections 2 and 17, and any
successor security.

          "Subsidiary" means any corporation (other than the Company) in an
unbroken chain of corporations beginning with the Company if 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 such chain.

          "Termination" or "Terminated" means, for purposes of this Plan with
respect to a Participant, that the Participant has for any reason ceased to
provide services as an employee, officer, director or consultant to the Company
or a Parent or Subsidiary of the Company. An employee will not be deemed to have
ceased to provide services in the case of (i) sick leave, (ii) military leave,
or (iii) any other leave of absence approved by the Committee, provided that
such leave is for a period of not more than 90 days unless reemployment upon the
expiration of such leave is guaranteed by contract or statute, or unless
provided otherwise pursuant to formal policy adopted from time to time by the
Company and issued and promulgated in writing. In the case of any participant on
(i) sick leave, (ii) military leave or (iii) on an approved leave of absence,
the Committee may make such provisions respecting suspension of vesting of the
Award while on leave from the employ of the Company or a Subsidiary as it may
deem appropriate, except that in no event may an Option be exercised after the
expiration of the term set forth in the Stock Option Agreement. The Committee
will have sole discretion to determine whether a Participant has ceased to
provide services and the effective date on which the Participant ceased to
provide services (the "Termination Date").

          "Unvested Shares" means "Unvested Shares" as defined in the Award
Agreement.

                                       18

<PAGE>

          "Vested Shares" means "Vested Shares" as defined in the Award
Agreement.

                                       19<PAGE>

                             STOCK ESCROW AGREEMENT

     This Agreement, made and entered into this ______ day of April, 1995, by
and between TULLY'S COFFEE CORPORATION ("Company") and TOM T. AND CATHY O'KEEFE
as individuals and as organizers and promoters of the Company ("Promoters") and
SEAFIRST BANK ("Escrow Agent").

                                   WITNESSETH:

     As the Company has applied to the Administrator of the Washington
Securities Act, of the State of Washington ("Administrator"), for the
registration to sell at a price of $1.50 per share a minimum of 700,000
($1,050,000) and a maximum of 2,800,000 ($4,200,000) of shares of its Common
Stock for sale to the public under the Washington Securities Act, upon such
terms and conditions as the Administrator may deem appropriate to make the issue
fair and equitable; and

     As the Promoters have been issued shares of Common Stock of the Company in
the amounts indicated below, for a consideration substantially different from
the public offering price or for a consideration other than cash, which shares
are deemed to be promotional shares, to be deposited in escrow pursuant to WAC
460-16A-104, upon the terms approved by the Administrator as hereinafter set
forth, as follows:

<TABLE>
<CAPTION>

                                                          Shares Escrowed
Name and Address           Total Shares Issued        Minimum       Maximum
----------------           -------------------       ---------     ---------
<S>                         <C>                      <C>           <C>
Tom T. and Cathy O'Keefe
2010 Airport Way South
Seattle, Washington  98134        6,598,500          4,340,475     3,743,475

</TABLE>

     Should the actual amount raised by the Company fall between the Minimum of
$700,000 and the Maximum of $4,200,000, the number of shares to be escrowed
shall be adjusted accordingly.

     Therefore, in consideration of the mutual promises, covenants, and
agreements by and between the parties hereto, it is hereby agreed as follows:

     1. AUTHORITY TO AMEND. This Agreement shall not be terminated, revoked,
rescinded, altered, or modified in any respect without the prior written consent
of the Administrator and the parties hereto.

     2. SHARES NONTRANSFERABLE. So long as any shares of Common Stock of the
Company remain subject to the terms and conditions of the Agreement ("Escrowed
Shares"), they shall not be sold, pledged, hypothecated, transferred, alienated,
assigned, or otherwise disposed of, in whole or in part, in any manner
whatsoever

                                       1
<PAGE>

except as permitted in paragraph 3 below without the prior written consent of
the Administrator. If any such action is consented to, the consent of the
proposed transferees to execute an identical Escrow Agreement must be obtained.

     3. PERMITTED TRANSFERS. Notwithstanding paragraph 2 above, the Escrowed
Shares may be transferred by Will, or pursuant to the laws of descent and
distribution, or through appropriate legal proceedings without the consent of
the Administrator, but in all cases the Escrowed Shares shall remain in escrow
and subject to the terms of this Agreement. In addition, upon the death of a
Promoter, the Promoter's Escrowed Shares may be hypothecated, subject to all of
the terms of this Agreement, to the extent necessary to pay the expense of the
estate; otherwise, the Escrowed Shares may not be pledged to secure a debt.
Furthermore, the Escrowed Shares may be transferred by gift to family members,
provided the shares remain subject to the terms of this Agreement.

     4. VOTING RIGHTS. The Escrowed Shares shall be considered to be issued and
outstanding stock of the Company and shall enjoy all voting rights accorded to
all other issued and outstanding shares of the same class.

     5. PARTICIPATION IN DIVIDENDS. The Escrowed Shares shall be considered to
be issued and outstanding stock of the Company and shall enjoy all dividend
privileges accorded to all other issued and outstanding shares of the same
class. Any dividends paid on the Escrowed Shares shall be paid to the Escrow
Agent and shall be held pursuant to the terms of this Agreement. The Escrow
Agent shall treat such dividends as assets available for distribution as
provided under paragraph 6 below. All cash dividends held in escrow shall be
invested at the written direction of the promoters in a money market account in
accordance with the terms set forth on Exhibit A attached hereto and shall bear
interest at the Escrow Agent's prevailing rate of interest on such accounts. The
cash dividends and any interest earned thereon will be disbursed when the
Escrowed Shares are released from the escrow.

     6. DIVIDENDS ON DISSOLUTION OR LIQUIDATION. In the event of dissolution of
the Company, or the partial or complete liquidation of all or substantially all
of its assets, or in the event of bankruptcy or insolvency, or the merger,
consolidation, or reorganization of the Company, or any other transaction or
proceeding which contemplates or results in the distribution of assets of the
Company, the Escrowed Shares shall not participate in any distribution dividend
by virtue thereof, and the Promoters hereby waive any such distribution
dividend, until all other issued and outstanding shares of the capital stock of
the Company that have not been escrowed shall have received a distribution
dividend at least equal to $1.50 per share adjusted for stock splits and stock
dividends. Subsequently, the Escrowed Shares shall be entitled to receive a
distribution dividend equal to that received by the nonescrow shareholders.
Thereafter, all shares shall participate in any remaining distributions on a pro
rata basis.

                                       2
<PAGE>

     7. STOCK SPLITS OR OTHER RECLASSIFICATION. Any shares issued to Promoters
pursuant to stock splits or stock dividends on the Escrowed Shares shall be
delivered to the Escrow Agent to be held pursuant to the Agreement.

     8. RELEASE REQUIREMENTS. Escrowed Shares shall be held in escrow until such
time as the Company has achieved any of the following tests:

          a. The Company has demonstrated annual earnings per share for two
consecutive fiscal years of at least $0.075 per share per year.

          b. The Company has demonstrated average annual earnings over five
years of at least $0.075 per share.

     A request to the Administrator for termination of this Agreement based on
the earnings per share tests in a. and b. above shall be accompanied by an
earnings per share calculation audited and reported on by an independent
certified public accountant.

          c. The Company establishes for its Common Stock a bona fide
over-the-counter trading market and such stock maintains an average bid price
equal to or greater than $2.625 per share for any period of twenty-six
consecutive weeks. In determining whether a bona fide market has been
established, all transactions in the Company's stock by any director or officer
of the Company, or any affiliates of such persons, during the period in which
the market is claimed to have existed will be excluded. In addition, the Company
will have disseminated to the public during said period, at least two quarterly
unaudited financial statements or one annual audited financial statement.

     All shares will be released from escrow if the public offering is
terminated and no shares were sold pursuant thereto.

     However, notwithstanding the above, no escrowed shares shall be released
without written consent of the Administrator.

     9. DURATION AND TERMINATION: PHASED RELEASE. The term of this agreement is
nine (9) years and will expire nine years from the date of effectiveness of the
offering or ____________, 2004. Unless released pursuant to paragraph 8 hereof,
all Escrowed Shares shall remain in escrow until the sixth anniversary of the
effective date of the offering. On each of the sixth, seventh, eighth, and ninth
anniversary dates, 25% of the Escrowed Shares held by the Promoters shall be
released from escrow, such that no shares will remain in escrow as of nine years
from the effective date of the offering. This Agreement will terminate
automatically if the Company ceases to exist and no successor becomes a party to
the Agreement. Except as expressly provided herein, the Escrow Agent shall not
release any of the Escrowed Shares without the written consent of the
Administrator.

                                       3
<PAGE>

     10. INSPECTION OF RECORDS. The Administrator may, at any time, inspect the
records of the Company for the purpose of making any determination, and may
inspect the records of the Escrow Agent or the Promoters, insofar as they relate
to this Agreement, for the purpose of making any determination hereunder and
affecting compliance with and conformance to the provisions of this Agreement.

     11. CONTROVERSY. If any controversy arises between the parties hereto or
with any third person, the Escrow Agent shall not be required to determine the
same or to take any action, but may await the settlement of any such controversy
by final appropriate legal proceedings, or otherwise as the Escrow Agent may
require. In the alternative, the Escrow Agent may, in its sole discretion,
institute such appropriate interpleader or other proceedings in connection
therewith as it may deem proper, notwithstanding anything in this Agreement to
the contrary. In any such event, the Escrow Agent shall not be liable for
interest or damages to the Company or the Promoters.

     12. ESCROW AGENT'S LIABILITY. The Escrow Agent's obligations and duties in
connection herewith are confined to those specifically stated in the Agreement.
The Escrow Agent shall not be in any manner liable or responsible for the
sufficiency, correctness, genuineness, or validity of any instruments deposited
with it or with reference to the form of execution thereof, or the identity,
authority, or rights of any person executing or depositing same. The Escrow
Agent shall not be liable for any loss that may occur, except for its own
negligence or willful misconduct.

     13. ESCROW AGENT'S FEE. The fee of the Escrow Agent is set forth in
Schedule B and is payable by the Promoters. The fee agreed upon for the services
rendered hereunder is intended as full compensation for the Escrow Agent's
services as contemplated by this Agreement. Escrow Agent acknowledges receipt of
stock certificates numbered ________________ and representing 4,340,475 shares
at the Maximum of the Company's common stock.

     14. BINDING AGREEMENT AND SUBSTITUTION OF ESCROW AGENT. The terms and
conditions of this Agreement shall be binding on the successors or assigns of
the parties hereto. If for any reason the Escrow Agent named herein should be
unable or unwilling to continue as Escrow Agent, then the other parties to this
Agreement may substitute, with the consent of the Administrator, another person
to serve as Escrow Agent. Any apportionment of the fees provided for in
paragraph 14 will be subject to agreement of the parties.

                                       4
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have severally caused this Agreement
to be executed as of the ______ day of April, 1995.

                  Company:          TULLY'S COFFEE CORPORATION

                                    By:
                                       -----------------------------------------
                                       Tom T. O'Keefe, President

                  Escrow Agent:     BANKAMERICAS STATE TRUST COMPANY
                                    AS AUTHORIZED AGENT FOR SEAFIRST
                                    BANK

                                    By:
                                       -----------------------------------------
                                    Name and Title:
                                                   -----------------------------

                  Promoters:        --------------------------------------------
                                            Tom T. O'Keefe

                                    --------------------------------------------
                                            Cathy O'Keefe

ACCEPTED:

Washington State Department of Financial Institutions
Securities Division

By:
   --------------------------------
         Chief Analyst

                                       5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00011-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00011-of-00352.parquet"}]]