Document:

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                                                                 EXHIBIT 10.71

                          FOOTHILL CAPITAL CORPORATION
                          One Boston Place, Suite 1800
                           Boston, Massachusetts 02108

                                                              May 29, 2003

Iron Age Corporation
Robinson Plaza Three, Suite 400
Pittsburgh, Pennsylvania  15205

Attention:  Chief Financial Officer

                  Re: Loan and Security Agreement

Ladies and Gentlemen:

         Reference is made to the Loan and Security Agreement, dated as of
September 23, 2002, as amended by the First Amendment and Limited Waiver dated
as of May 12, 2003 (as amended, the "Loan Agreement"), by and among, on the one
hand, the lenders identified on the signature pages thereof (such lenders,
together with their respective successors and assigns, are referred to
hereinafter each individually as a "Lender" and collectively as the "Lenders"),
and Foothill Capital Corporation, a California corporation, as the arranger and
administrative agent for the Lenders ("Agent"), and, on the other hand, Iron Age
Corporation, a Delaware corporation ("Iron Age"), Falcon Shoe Mfg. Co., a Maine
corporation ("Falcon" and together with Iron Age, each individually a "Borrower"
and collectively, jointly and severally, as "Borrowers"), and Iron Age Holdings
Corporation, a Delaware corporation ("Parent"). All capitalized terms used
herein and not otherwise defined herein are used herein as defined in the Loan
Agreement.

         The Parent has (a) notified the Agent that the Borrowers (i) have
failed to deliver to the Agent and the Lenders a Budget on or prior to May 23,
2003, in accordance with Section 6.18 of the Loan Agreement and (ii) will fail
to maintain Excess Availability of not less than $3,000,000 at the end of each
week during the Waiver Period (as defined in the First Amendment), in accordance
with Section 7.20(d) of the Loan Agreement, and (b) requested that the Agent and
the Lenders waive any Event of Default that would otherwise arise as a result of
each such noncompliance.

         In consideration of such request, the Agent and the Lenders hereby
waive any Event of Default that would otherwise arise under Section 8.2 of the
Loan Agreement by reason of the Borrowers' failure to (a) deliver a Budget to
the Agent and the Lenders on or before May 23, 2003, in accordance with Section
6.18 of the Loan Agreement, provided that the Borrowers deliver such Budget to
the Agent and the Lenders on or before May 29, 2003, and (b) maintain Excess
Availability of not less than $3,000,000 at the end of each week during the
Waiver Period, in accordance with Section 7.20(d) of the Loan Agreement,
provided that the Borrowers

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Iron Age Corporation
May 29, 2003
Page 2

maintain Excess Availability of not less than $2,500,000 at the end of each
week during the Waiver Period.

         Further to the waiver set forth in clause (a) of the immediately
preceding paragraph, all references to "May 23, 2003" in the following
provisions of the Loan Agreement shall be deemed to be references to "the date
on which the Borrowers deliver the Budget to the Agent and the Lenders pursuant
to Section 6.18":

                  (a)      clause (iii) of the first sentence of Section 2.1(a);

                  (b)      subclause (D) of the first sentence of clause (i) of
                           Section 2.3(i);

                  (c)      subclause (B) of clause (i) of the fourth sentence of
                           Section 2.12(a); and

                  (d)      Section 7.20(e).

         This letter agreement (a) shall become effective as of the date set
forth above when signed by the Agent and each Lender and accepted by the
Borrowers and the Guarantors, (b) shall be effective only in this specific
instance and for the specific purposes set forth herein, and (c) does not allow
for any other or further departure from the terms and conditions of the Loan
Agreement or any other Loan Document, which terms and conditions shall continue
in full force and effect.

         Except as expressly set forth in this letter agreement, the Agent and
the Lenders have not waived, are not waiving, and have no present intention of
waiving, any Events of Default which may be continuing on the date hereof or any
Events of Default which may occur after the date hereof, and nothing contained
herein shall be deemed or constitute any such waiver. Accordingly, the Agent and
the Lenders reserve the right, in their discretion, to exercise any or all
rights or remedies under the Loan Agreement, the other Loan Documents,
applicable law and otherwise, as a result of any Events of Default which may be
continuing on the date hereof or any Events of Default which may occur after the
date hereof, and the Agent and the Lenders have not waived any of such rights or
remedies and nothing in this letter agreement, and no delay on the Agent's and
the Lenders' part in exercising such rights or remedies, should be construed as
a waiver of any such rights or remedies.

                [Remainder of this page intentionally left blank]

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Iron Age Corporation
May 29, 2003
Page 3

         This letter agreement (a) supersedes all prior discussions, agreements,
commitments, arrangements, negotiations or understandings, whether oral or
written, of the parties with respect thereto, (b) shall be governed by the law
of the State of New York, without giving effect to the conflict of laws
provisions thereof, (c) shall be binding upon the parties and their respective
successors and assigns, (d) may not be relied upon or enforced by any other
person or entity, and (e) may be signed in multiple counterparts, each of which
shall be deemed an original and all of which together shall constitute one and
the same instrument, with delivery of an executed counterpart of this letter
agreement by telefacsimile being equally as effective as delivery of an original
executed counterpart of this letter agreement. If this letter agreement becomes
the subject of a dispute, each of the parties hereto hereby waives trial by
jury. This letter agreement may be amended, modified or waived only in a writing
signed by the parties hereto.

                                          Very truly yours,

                                          FOOTHILL CAPITAL CORPORATION,
                                          as Agent and Lender

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

Consented to and Agreed
as of the date first above written:

CREDIT SUISSE FIRST BOSTON,
as a Lender

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

HIGHBRIDGE/ZWIRN ACQUISITION PARTNERS, LLC,
as a Lender

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

<PAGE>

Iron Age Corporation
May 29, 2003
Page 4

Acknowledged and Accepted
as of the date first above written:

IRON AGE CORPORATION

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

FALCON SHOE MFG. CO.

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

IRON AGE HOLDINGS CORPORATION,
as Guarantor

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

IRON AGE INVESTMENT COMPANY

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

IA VISION ACQUISITION, CO.

By:
     --------------------------------------
     Name:
     Title:EXHIBIT 4.1

                         NOVA INTERNATIONAL FILMS, INC.

                          2003 STOCK COMPENSATION PLAN

                               Section 1. Purpose
                               ------------------

         The  purpose of this 2003 Stock  Compensation  Plan (the  "Plan") is to
advance the interests of Nova International  Films, Inc., a Delaware corporation
("Nova"), by enhancing its ability to attract,  retain and provide incentives to
directors,  officers,  employees and independent  contractors who are crucial to
the future growth and success of Nova and its  subsidiaries  and  Affiliates (as
hereinafter defined).

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

         "Affiliate" when used in conjunction with Nova, shall include,  but not
be limited to, an entity or other person that directly or  indirectly  controls,
or is controlled by, or is under common control with Nova.

         "Award" means any Option,  Stock Appreciation Right,  Performance Share
or Restricted Stock awarded under the Plan.

         "Board" means the board of directors of Nova.

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

         "Committee" means a committee of not less than two members of the Board
appointed by the Board to administer the Plan.

         "Common Stock" or "Stock" means the Common Stock of Nova.

         "Company" means Nova and, except where the content requires  otherwise,
all present and future subsidiaries and Affiliates of Nova.

         "Designated   Beneficiary"  means  the  beneficiary   designated  by  a
Participant,  in a manner  determined  by the Board,  to receive  amounts due or
exercise  rights of the Participant in the event of the  Participant's  death or
incapacity.  In  the  absence  of an  effective  designation  by a  Participant,
Designated  Beneficiary shall mean the Participant's estate, in the event of the
Participant's  death, and the Participant's legal guardian,  in the event of the
Participant's incapacity.

<PAGE>

         "Fair  Market  Value"  means with  respect to Common Stock on any given
date (i) if the  Common  Stock is listed  for  trading  on one or more  national
securities  exchanges,  the mean of the high and low sales prices during regular
trading  hours on the  principal  exchange  on which it is traded on the date in
question,  or, if the Common  Stock  shall not have been traded  during  regular
trading hours on such principal  exchange on such date, the mean of the high and
low sales prices during regular trading hours on such principal  exchange on the
first day prior thereto on which the Common Stock was so traded;  (ii) if Common
Stock is not listed for trading on a national  securities exchange but is traded
on the  over-the-counter  market,  the mean of the highest and lowest bid prices
for the Common Stock during regular  trading hours on the date in question,  or,
if there are no such bid prices for the Common  Stock on such date,  the mean of
the highest and lowest bid prices during regular  trading hours on the first day
prior thereto on which such prices appear;  and (iii) in all other events,  such
amount  as may be  determined  by the  Board  in  good  faith  by any  fair  and
reasonable means.

         "Incentive Stock Option" or "ISO" means an option to purchase shares of
Common Stock awarded to a Participant  under Section 6 which is intended to meet
the requirements of Code Section 422.

         "Nonstatutory Stock Option" or "NSO" means an option to purchase shares
of Common Stock awarded to a  Participant  under Section 6 which is not intended
to be an ISO.

         "Option"  means an  Incentive  Stock  Option  or a  Nonstatutory  Stock
Option.

         "Participant"  means a person selected by the Board to receive an Award
under the Plan.

         "Performance Shares" mean shares of Common Stock which may be earned by
the achievement of performance goals awarded to a Participant under Section 8.

         "Reporting  Person"  means  a  person  subject  to  Section  16 of  the
Securities Exchange Act of 1934 or any successor provision.

         "Restricted  Period"  means the  period of time  selected  by the Board
during which shares subject to a Restricted Stock Award may be repurchased by or
forfeited to the Company.

         "Restricted   Stock"  means  shares  of  Common  Stock   awarded  to  a
Participant under Section 9.

         "Stock Appreciation Right" or "SAR" means a right to receive any excess
in Fair Market Value of shares of Common Stock over the exercise  price  awarded
to a Participant under Section 7.

<PAGE>

                            Section 3. Administration
                            -------------------------

         The Board  shall  have  plenary  authority  in its  discretion,  to the
maximum extent  permissible  by law,  subject to and not  inconsistent  with the
express  provisions of the Plan, to administer  the Plan.  Without  limiting the
foregoing,  the Board shall have authority to make Awards, to set administrative
rules,  guidelines and practices relating to the Plan as it shall deem advisable
from time to time,  and to interpret the  provisions of the Plan. In determining
the persons to whom Awards shall be made,  the number of shares to be covered by
each Award and the terms thereof (including the restriction, if any, which shall
apply to the  Common  Stock  subject  to an  Award),  the Board  shall take into
account  the duties of the  respective  persons,  their  present  and  potential
contributions to the success of the Company and such other factors as the Board,
in its  discretion,  shall deem relevant in connection  with  accomplishing  the
purposes of the Plan.

         The Board's  decisions shall be final and binding.  Except as otherwise
required  by law,  no  member of the Board  shall be  liable  for any  action or
determination relating to the Plan made in good faith.

         The Board may appoint a Committee and delegate to the Committee some or
all of its authority with respect to Plan administration. In the event the Board
appoints a Committee, references in the Plan to the Board shall, as appropriate,
be read as references to the Committee.

                             Section 4. Eligibility
                             ----------------------

         Awards may be made to  employees  and  independent  contractors  of the
Company. For purposes hereof, independent contractors shall include consultants,
advisors and directors of the Company.

                      Section 5. Stock Available for Awards
                      -------------------------------------

         (a) Subject to adjustment  under  Section 10 below,  Awards may be made
under the Plan for up to 10,000,000 (ten million) shares of Common Stock. If any
Award in respect of shares of Common Stock expires or is terminated  unexercised
or is  forfeited  for any reason or settled  in a manner  that  results in fewer
shares outstanding than were initially awarded, the shares subject to such Award
or so  surrendered,  as the  case  may be,  to the  extent  of such  expiration,
termination,  forfeiture  or decrease,  shall again be available for award under
the Plan,  subject,  however,  in the case of Incentive  Stock  Options,  to any
limitation  required under the Code. Shares issued under the Plan may consist in
whole or in part of authorized but unissued shares or treasury shares.

         (b) The Board may grant Awards under the Plan in substitution for stock
and stock  based  awards held by  employees  of another  corporation  who become
employees  of the  Company  as a result  of a  merger  or  consolidation  of the
employing  corporation  with the  Company or the  acquisition  by the Company of
property or stock of the employing  corporation.  The substitute Awards shall be
granted on such terms and conditions as the Board  considers  appropriate in the
circumstances.  The shares which may be delivered under such  substitute  Awards
shall be in  addition to the maximum  number of shares  provided  for in Section
5(a).

<PAGE>

                            Section 6. Stock Options
                            ------------------------

         (a) General.
             --------

                  (i) Subject to the provisions of the Plan, the Board may award
Incentive Stock Options and Nonstatutory Stock Options, and determine the number
of  shares  to be  covered  by each  Option,  the  option  price  therefor,  the
conditions  and  limitations  applicable  to the  exercise of the Option and the
restrictions,  if  any,  applicable  to the  shares  of  Common  Stock  issuable
thereunder.

                  (ii) The Board shall  establish the exercise price at the time
each Option is awarded.

                  (iii)  Subject  to  Section   10(a),   each  Option  shall  be
exercisable  at such times and subject to such terms and conditions as the Board
may specify in the applicable  Award.  The Board may impose such conditions with
respect to the exercise of Options,  including conditions relating to applicable
federal or state securities laws, as it considers necessary or advisable.

                  (iv)  Options  granted  under the Plan shall  provide  for the
payment of the exercise price by delivery of cash or check in an amount equal to
the  exercise  price of such Options or by delivery of shares of Common Stock of
the Company owned by the optionee for at least six months (valued at Fair Market
Value)  and, to the extent  permitted  by the Board at or after the award of the
Option, may provide for payment by (A) delivery of other property  acceptable to
the Board (valued at fair market  value),  (B) delivery of a promissory  note of
the optionee to the Company on terms determined by the Board, (C) delivery of an
irrevocable  undertaking  by  a  broker  to  deliver  promptly  to  the  Company
sufficient   funds  to  pay  the  exercise  price  or  delivery  of  irrevocable
instructions  to a broker to deliver  promptly  to the  Company  cash or a check
sufficient  to pay  the  exercise  price,  (D)  payment  of  such  other  lawful
consideration  as the  Board  may  determine,  or  (E)  any  combination  of the
foregoing.

                  (v) The Board may provide for the automatic award of an Option
upon the delivery of shares to the Company in payment of the  exercise  price of
an Option for up to the number of shares so delivered.

                  (vi) The  Board may at any time  accelerate  the time at which
all or any part of an Option may be exercised.

<PAGE>

         (b) Incentive Stock Options.
         ----------------------------

         Options  granted  under the Plan which are intended to be ISOs shall be
subject to the following additional terms and conditions:

                  (i) All ISOs  granted  under  the Plan  shall,  at the time of
grant, be specifically  designated as such in the option agreement covering such
Award.  All  Options  designated  as  ISOs  shall  be  interpreted  in a  manner
consistent with the requirements of Code Section 422.

                  (ii) While the  Company  shall  take  reasonable  measures  to
assure  that an Option  intended  to be an ISO shall be so treated  for  federal
income tax purposes,  it makes no assurances to anyone that any Option  intended
to be an ISO shall be taxed as an ISO. Without  limiting the foregoing,  Options
intended  to be ISOs  which are  exercised  after the period  permitted  by Code
Section 422 shall not be taxed as ISOs.

                  (iii)  ISOs  may only be  awarded  to  employees  of Nova or a
corporation  which,  with  respect  to  Nova,  is  a  "parent   corporation"  or
"subsidiary  corporation"  within the meaning of Code  Sections  424(e) and (f).
Furthermore,  except as otherwise provided in Code Section 422, if a Participant
is no longer employed by Nova or a parent corporation or subsidiary  corporation
of Nova, the Participant's Option shall cease to be treated as an ISO.

                  (iv)  Subject to clause  (v),  the Option  exercise  price per
share of Common  Stock  covered by an ISO shall be no less than the Fair  Market
Value of a share of Common Stock on the date of grant of the Option.

                  (v) In the case of an individual who at the time the Option is
granted owns stock  possessing  more than 10% of the total combined voting power
of all classes of the stock of Nova or of a parent or subsidiary  corporation of
Nova (a "10% Holder"), (1) the Option exercise price of the Common Stock covered
by any ISO  granted  to such  person  shall in no event be less than 110% of the
Fair Market Value of the Common Stock on the date the ISO is granted and (2) the
term of an ISO granted to such person may not exceed five years from the date of
grant.

                  (vi) The aggregate  Fair Market Value  (determined at the time
an ISO is granted) of the Common Stock covered by ISOs exercisable for the first
time by an employee  during any  calendar  year (under all plans of the Company)
may not exceed $100,000.

                      Section 7. Stock Appreciation Rights
                      ------------------------------------

         (a) The Board may grant Stock Appreciation Rights entitling  recipients
on exercise of the SAR to receive an amount,  in cash or Stock or a  combination
thereof  (such form to be  determined  by the Board),  determined in whole or in
part by reference to  appreciation in the Fair Market Value of the Stock between
the date of the Award and the exercise of the Award. A Stock  Appreciation Right
shall entitle the Participant to receive, with respect to each share of Stock as
to which the SAR is  exercised,  the excess of the share's  Fair Market Value on
the date of exercise over its Fair Market Value on the date the SAR was granted.

<PAGE>

         (b)  Stock  Appreciation  Rights  may be  granted  in tandem  with,  or
independently  of, Options  granted under the Plan. A Stock  Appreciation  Right
granted in tandem with an Option which is not an  Incentive  Stock Option may be
granted either at or after the time the Option is granted.  A Stock Appreciation
Right  granted in tandem with an  Incentive  Stock Option may be granted only at
the time the Option is granted.

         (c) When Stock Appreciation  Rights are granted in tandem with Options,
the following provisions shall apply:

                  (i) The Stock  Appreciation Right shall be exercisable only at
such time or times,  and to the extent,  that the related  Option is exercisable
and shall be exercisable in accordance with the procedure  required for exercise
of the related Option.

                  (ii) The  Stock  Appreciation  Right  shall  terminate  and no
longer be exercisable  upon the  termination or exercise of the related  Option,
except that a Stock  Appreciation  Right  granted  with respect to less than the
full number of shares covered by an Option shall not be reduced until the number
of shares as to which the related  Option has been  exercised or has  terminated
exceeds the number of shares not covered by the Stock Appreciation Right.

                  (iii) The Option shall  terminate and no longer be exercisable
upon the exercise of the related Stock Appreciation Right.

                  (iv) The Stock  Appreciation  Right shall be transferable only
with the related Option.

                  (v) A Stock  Appreciation  Right  granted  in  tandem  with an
Incentive  Stock Option may be exercised only when the market price of the Stock
subject to the Option exceeds the exercise price of such Option.

         (d) A Stock  Appreciation  Right not  granted in tandem  with an Option
shall become  exercisable at such time or times, and on such conditions,  as the
Board may specify.

         (e) The Board may at any time  accelerate  the time at which all or any
part of the SAR may be exercised.

                          Section 8. Performance Shares
                          -----------------------------

         (a) The Board may make Performance Share Awards entitling recipients to
acquire shares of Stock upon the attainment of specified  performance goals. The
Board may make Performance Share Awards independent of or in connection with the
granting  of any other Award  under the Plan.  The Board in its sole  discretion
shall  determine the performance  goals  applicable  under each such Award,  the
periods during which  performance is to be measured,  and all other  limitations
and conditions applicable to the awarded Performance Shares.

         (b) A Participant  receiving a  Performance  Share Award shall have the
rights of a stockholder  only as to shares actually  received by the Participant
under  the Plan and not with  respect  to  shares  subject  to an Award  but not

<PAGE>

actually received by the Participant. A Participant shall be entitled to receive
a stock  certificate  evidencing  the  acquisition  of shares  of Stock  under a
Performance  Share Award only upon  satisfaction of all conditions  specified in
the Agreement evidencing the Performance Share Award.

         (c) The  Board  may at any time  accelerate  or waive any or all of the
goals, restrictions or conditions imposed under any Performance Share Award.

                           Section 9. Restricted Stock
                           ---------------------------

         (a) The Board may grant Restricted Stock Awards entitling recipients to
acquire  shares of Stock,  subject to the right of the Company to repurchase all
or part of such shares at their purchase price (or to require forfeiture of such
shares if purchased at no cost) from the recipient in the event that  conditions
specified by the Board in the  applicable  Award are not satisfied  prior to the
end of the applicable Restricted Period or Restricted Periods established by the
Board for such Award.  Conditions for repurchase (or forfeiture) may be based on
continuing  employment or service or achievement of pre-established  performance
or other goals and objectives.

         (b) Shares of Restricted Stock may not be sold, assigned,  transferred,
pledged or  otherwise  encumbered,  except as  permitted by the Board during the
applicable  Restricted Period.  Shares of Restricted Stock shall be evidenced in
such manner as the Board may determine.  Any  certificates  issued in respect of
shares of Restricted  Stock shall be  registered in the name of the  Participant
and, unless  otherwise  determined by the Board,  deposited by the  Participant,
together  with a stock  power  endorsed  in  blank,  with  the  Company  (or its
designee).  At the  expiration of the  Restricted  Period,  the Company (or such
designee)  shall  deliver  such  certificates  to  the  Participant  or  if  the
Participant has died, to the Participants' Designated Beneficiary.

         (c) The  purchase  price for each share of  Restricted  Stock  shall be
determined by the Board.  Such purchase  price may be paid in cash or such other
lawful consideration as is determined by the Board.

         (e)  The  Board  may at  any  time  accelerate  the  expiration  of the
Restricted  Period applicable to all, or any particular,  outstanding  shares of
Restricted Stock.

         (f) Notwithstanding the foregoing,  the Board may award to Participants
Restricted  Stock for  services  rendered or to be rendered by such  Participant
pursuant to the terms of any agreement between the Company and such Participant,
which award is not  requested  to contain any  repurchase  rights or  forfeiture
provisions.

               Section 10. General Provisions Applicable to Awards
               ---------------------------------------------------

         (a)  Maximum  Term.  No Award  shall have a term  exceeding  ten years,
measured from the date of the Award grant.

         (b)  Documentation.  Each Award under the Plan shall be evidenced by an
instrument  delivered to the  Participant  specifying  the terms and  conditions
thereof and containing such other terms and conditions not inconsistent with the
provisions  of the Plan as the Board  considers  necessary  or  advisable.  Such
instruments  may be in the form of agreements to be executed by both the Company
and the Participant, or certificates,  letters or similar documents,  acceptance
of which shall evidence agreement to the terms thereof and of this Plan.

<PAGE>

         (c) Board Discretion. Each type of Award may be made alone, in addition
to or in  relation  to any other type of Award.  The terms of each type of Award
need not be  identical  and the  Board  need not treat  Participants  uniformly.
Except  as  otherwise   provided  by  the  Plan  or  a  particular   Award,  any
determination  with  respect to an Award may be made by the Board at the time of
the Award grant or at any time thereafter.

         (d) Termination of Status. The Board shall determine and specify in the
Award documentation the effect on an Award of the disability, death, retirement,
authorized  leave of absence or other  termination of employment or other status
of a  Participant  and the extent to which,  and the period  during  which,  the
Participant's  legal  representative,  guardian or  Designated  Beneficiary  may
exercise rights under such Award.

         (e) Dilutions and Other Adjustments. In the event of any stock dividend
or split,  issuance or  repurchase of stock or  securities  convertible  into or
exchangeable  for  shares of stock,  grants of  options,  warrants  or rights to
purchase  stock,  recapitalization,  combination,  exchange  or  similar  change
affecting the Common Stock,  or any other  increase or decrease in the number of
issued shares of Common Stock effected  without receipt of  consideration by the
Company, the Board in its sole discretion may equitably adjust any or all of (i)
the number  and kind of shares in respect of which  Awards may be made under the
Plan,  (ii) the number and kind of shares  subject to  outstanding  Awards,  and
(iii) the  award,  exercise  or  conversion  price  with  respect  to any of the
foregoing,  and may make any other  equitable  adjustments  or take  such  other
equitable  action as the  Board,  in its  discretion,  shall  deem  appropriate,
including,  if considered  appropriate by the Board, making provision for a cash
payment with respect to an outstanding  Award. Such adjustments or actions shall
be  conclusive  and  binding for all  purposes.  In the event of a change in the
Common Stock which is limited to a change in the designation thereof to "Capital
Stock" or other similar designation, or to a change in the par value thereof, or
from no par value to par value (or vice versa),  without increase or decrease in
the number of issued shares,  the shares resulting from any such change shall be
deemed to be Common Stock within the meaning of the Plan.  For purposes  hereof,
the conversion of any convertible  securities of the Company shall not be deemed
to have been "effected without receipt of consideration."

         In the event that the  Company  or the  division,  subsidiary  or other
affiliated  entity for which a Participant  performs  services is sold,  merged,
consolidated,  reorganized or liquidated,  the Board may take any one or more of
the following  actions as to  outstanding  Awards:  (i) provide that such Awards
shall be assumed,  or substantially  equivalent Awards shall be substituted,  by
the acquiring or succeeding  corporation (or an affiliate thereof) on such terms
as  the  Board  determines  to be  appropriate,  (ii)  upon  written  notice  to
Participants,  provide  that all  unexercised  Options or SARs  shall  terminate
immediately  prior to the consummation of such  transaction  unless exercised by
the  Participant  within a specified  period  following the date of such notice,
(iii) in the  event of a sale or  similar  transaction  under the terms of which
holders  of the Common  Stock of the  Company  receive a payment  for each share
surrendered  in the  transaction  (the  "Sales  Price"),  make or provide  for a
payment to each  Option  and/or SAR holder  equal to the amount by which (A) the
Sales Price times the number of shares of Common Stock subject to  Participant's
outstanding,  vested Options or SARs exceeds (B) the aggregate exercise price of

<PAGE>

all such outstanding, vested Options or SARs, in exchange for the termination of
such Options or SARs, (iv) or make such other adjustments,  if any, as the Board
determines  to be necessary or  advisable  to provide  each  Participant  with a
benefit  substantially  similar to that to which the Participant would have been
entitled had such event not occurred.

         (h)  Withholding.  The  Participant  shall pay to the Company,  or make
provision satisfactory to the Board for payment of, any taxes required by law to
be  withheld  in respect of Awards  under the Plan no later than the date of the
event creating the tax liability. In the Board's discretion, and subject to such
conditions as the Board may establish, such tax obligations may be paid in whole
or in part in shares of Common Stock,  including  shares retained from the Award
creating the tax obligation, valued at their Fair Market Value. The Company may,
to the extent permitted by law, deduct any such tax obligations from any payment
of any kind otherwise due to the Participant.

         (i)  Foreign  Nationals.  Awards  may be made to  Participants  who are
foreign  nationals  or  employed  outside  the  United  States on such terms and
conditions  different  from those  specified in the Plan as the Board  considers
necessary  or  advisable  to achieve  the  purposes  of the Plan and comply with
applicable laws and/or achieve favorable tax results under foreign tax laws.

         (j)  Amendment of Award.  The Board may amend,  modify or terminate any
outstanding Award,  including substituting therefor another Award of the same or
a different type, changing the date of exercise or realization and converting an
Incentive  Stock  Option  to a  Nonstatutory  Stock  Option,  provided  that the
Participant's  consent  to such  action  shall  be  required  unless  the  Board
determines that the action,  taking into account any related  action,  would not
materially and adversely affect the Participant.

         (k) Conditions on Delivery of Stock. The Company shall not be obligated
to deliver any shares of Stock  pursuant  to the Plan or to remove  restrictions
from shares previously  delivered under the Plan (i) until all conditions of the
Award  have been  satisfied  or  removed,  (ii)  until,  in the  opinion  of the
Company's  counsel,  all applicable  federal and state laws and regulations have
been complied with, and (iii) if the outstanding  Stock is at the time listed on
any  stock  exchange,  until  the  shares to be  delivered  have been  listed or
authorized to be listed on such exchange  upon official  notice of issuance.  If
the sale of Stock has not been  registered  under the Securities Act of 1933, as
amended,  the Company may require, as a condition to exercise of the Award, such
representations  or agreements as the Company may consider  appropriate to avoid
violation  of such Act and may require  that the  certificates  evidencing  such
Stock bear an appropriate legend restricting  transfer.  Except to the extent as
may be specified in the documentation  with respect to a particular Award grant,
the Company  shall be under no  obligation  to register or qualify any shares of
Common Stock subject to Awards under any federal or state  securities  law or on
any exchange.

                            Section 11. Miscellaneous
                            -------------------------

         (a) No Right To Employment  or Other  Status.  No person shall have any
claim or right to be  granted an Award,  and the grant of an Award  shall not be
construed as giving a  Participant  the right to continued  employment by or the
right to continue  to provide  services to the  Company.  The Company  expressly
reserves the right at any time to dismiss a Participant  free from any liability
or claim under the Plan,  except as may be expressly  provided in the applicable
Award.

<PAGE>

         (b)  No  Rights  As  Stockholder.  Subject  to  the  provisions  of the
applicable Award, no Participant or Designated Beneficiary shall have any rights
as a  stockholder  with respect to any shares of Common Stock to be  distributed
under the Plan until he or she becomes the record holder thereof.

         (c) No  Restriction  on the Right of the  Company  to Effect  Corporate
Changes.  The Plan and the Options granted hereunder shall not affect in any way
the right or power of Nova or its  stockholders  to make or authorize any or all
adjustments, recapitalization, reorganizations or other changes in Nova's or the
Company's capital  structure or its business,  or any merger or consolidation of
Nova or the Company, or any issue of stock or of options,  warrants or rights to
purchase stock or of bonds,  debentures,  preferred or prior  preference  stocks
whose rights are superior to or affect the Common Stock or the rights of holders
thereof or which are convertible  into or exchangeable  for Common Stock, or the
dissolution or  liquidation  of Nova or the Company,  or any sale or transfer of
all or any  part of its  assets  or  business,  or any  other  corporate  act or
proceeding, whether of a similar character or otherwise.

         (d) Exclusion from Benefit Computations.  Except as expressly specified
in the applicable  plan or program,  no amount or shares of Common Stock payable
upon exercise of an Award  granted  under the Plan shall be  considered  salary,
wages or  compensation  for  purposes  of  determining  the  amount or nature of
benefits  that a Participant  is entitled to receive  under any Company  benefit
plan or program.

         (e)  Effective   Date  and  Term.   Subject  to  the  approval  of  the
stockholders of the Company,  the Plan is effective as of May 15, 2003, the date
as of when it was  adopted by the  Board.  Prior to such  stockholder  approval,
Awards  incorporating  provisions  authorized  by the Plan may be made under the
Plan,  but shall be  expressly  subject to such  approval.  No Award may be made
under the Plan after the tenth  anniversary  of the Plan's  effective  date, but
Awards granted before such date may extend beyond that date.

         (f)  Amendment of Plan.  The Board may amend,  suspend or terminate the
Plan or any portion thereof at any time;  provided,  however,  that no amendment
shall be made  without  stockholder  approval if such  approval is  necessary to
comply with any  applicable  tax or  regulatory  requirement.  Prior to any such
approval, Awards may be made under the Plan expressly subject to such approval.

         (g) Governing  Law. The provisions of the Plan shall be governed by and
interpreted in accordance with the laws of the state of Delaware.

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