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                                                                   Exhibit 10.23

                               FLORIDA BANKS, INC.
                                 CODE OF CONDUCT

A financial institution's activities are affected by laws and regulations, as
well as its responsibilities to its shareholders, customers, employees and the
community in which it serves. The Code of Conduct provides the avenue for
ensuring that the conduct of its employees is consistent with the institution's
corporate responsibilities. For the purpose of this document, the term employees
is defined as all Directors, Officers and Employees of Florida Banks, Inc. and
all subsidiaries. For purposes of this document, the term "Florida Bank" shall
mean Florida Banks, Inc. and Florida Bank N.A.

This Code of Conduct embodies not only legal and regulatory requirements, but
also the standards by which Florida Bank employees must conduct themselves.
Because this Code of Conduct cannot anticipate every imaginable circumstance of
inappropriate conduct, Florida Bank reserves the right to determine the
inappropriateness of any conduct engaged in by an employee. Inappropriate
conduct will generally include any conduct that is detrimental to: 1) the
business interests of Florida Bank, 2) the interests of Florida Bank customers,
3) the image of Florida Bank in the community or 4) the working relationships
among Florida Bank employees. Florida Bank reserves the right to determine the
action to be taken with regard to any conduct of an employee that it deems
inappropriate, depending on the gravity of the offense and circumstances
surrounding it, including termination of employment. Florida Bank also reserves
the right to terminate employment for any reason, at the sole discretion of
management and at all times in compliance with State and Federal law. Employment
by Florida Bank is for an indefinite period and can be terminated, at will, by
Florida Bank or the employee.

EQUAL EMPLOYMENT OPPORTUNITY CODE OF CONDUCT

Florida Bank is an Equal Opportunity Employer committed to providing equal
employment opportunity to all persons without regard to race, color, religion,
national origin, sex, marital status, age, veteran status or disability.

Employees must not participate in or condone any form of discrimination,
including harassment, with regard to recruiting, advertising, hiring, placement,
promotion, transfer, wages, benefits, disciplinary action, termination and all
other privileges, terms and conditions of employment.

Discrimination or any acts suggesting discrimination should be reported
immediately to Human Resources.

AFFIRMATIVE ACTION

Florida Bank will comply with all federal regulations concerning affirmative
action. Florida Bank values affirmative action as a strategic tool in achieving
the company's vision as a recognized leader in the financial services industry.
Florida Bank's Affirmative Action Program supports the elimination of barriers
to employment and advancement and ensures that measures are implemented to
attract, select, promote, and retain qualified women, minorities, individuals
with disabilities and veterans.

FAIR LENDING/COMMUNITY REINVESTMENT

Fair and equal treatment of all customers is not only mandated by law, but is a
safe and sound business practice that complements the corporate strategy of
Florida Bank in the production of quality assets and in providing excellence in
customer service. It is the policy of Florida Bank to adhere to all fair lending
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laws and regulations including, without limitation, the Equal Credit Opportunity
Act, the Fair Housing Act and the Americans with Disabilities Act. Florida Bank
will not discriminate against any person on the basis of race, color, sex,
religion, national origin, marital status, disability, familial status, age
(provided the applicant has the capacity to contract), receipt of public
assistance income or because an applicant has exercised rights in good faith
under the Consumer Credit Protection Act.

It is the desire of Florida Bank to make loans to any creditworthy persons,
inclusive of those with low and moderate incomes, in the markets and communities
it serves, consistent with the Community Reinvestment Act. Florida Bank seeks to
encourage all persons with a need for credit to apply to any of its banking
facilities, lending offices or through its Internet site. Every Florida Bank
employee who is involved in the credit granting process and mortgage brokers
with whom a relationship is maintained are expected to treat applicants in a
fair and equal manner.

ENVIRONMENTAL LAWS

It is the policy of Florida Bank to adhere to all environmental laws and
regulations including those applicable to its own facilities and operations.

CONFLICT OF INTEREST

A financial institution's reputation for integrity is its most valuable asset
and is directly affected by the conduct of its employees. For this reason,
employees must not use their position for private gain, to advance personal
interests, or to obtain favors or benefits for themselves, members of their
families, or any other individuals, corporations or business entities.

A basic premise of this Code of Conduct is that each employee represents Florida
Bank and is obligated to act in the Bank's best interests, and in the best
interests of its customers and stockholders, without regard to the employee's
personal or financial interest or activities. Employees are expected to
recognize and avoid those situations where personal or financial interest or
relationships might influence or appear to influence the employee's judgment.

Employees should understand that the perception of a conflict of interest might
arise when there is a mere opportunity for conflict to occur. Although employees
may not intend to create a conflict of interest, they should manage their
affairs to avoid even the appearance of such a conflict. Certain conflicts of
interest violations also violate state and federal laws and can result in
criminal penalties for the individual employee. If an employee has any doubt
about a certain situation, the employee should contact his/her supervisor to
discuss it immediately.

CRIMINAL ACTIVITY

Florida Bank is restricted by federal law and the provisions of its fidelity
bond from employing persons who have committed dishonest acts or been convicted
of crimes involving fraud, dishonesty, breach of trust or similar crimes.
Employees arrested or charged with crimes of any nature, other than minor
traffic violations, must report this to their immediate supervisor or Human
Resources immediately. Individual circumstances will be evaluated to determine
what effect, if any, the charges will have on continued employment.

CONFIDENTIAL NON-PUBLIC INFORMATION

The unauthorized use or release of confidential information during or after
employment with Florida Bank is a breach of the Code of Conduct and the Gramm
Leach Bliley Act. Confidential non-public information with respect to Florida
Bank, its customers, prospective customers, suppliers, shareholders, and

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employees acquired in the course of business must be used solely for proper
corporate purposes and must never be discussed with or divulged to unauthorized
people. The need for confidentiality extends to everyone, including family,
friends and acquaintances. Employees are expected to be familiar and comply with
all aspects of the Bank's Privacy Policy.

Customers, suppliers, shareholders and employees expect Florida Bank and its
employees to keep information regarding their personal and business affairs in
strict confidence at all times, and to use that information solely for proper
corporate purposes. Examples of non-public confidential information include the
following: current or prospective customers, suppliers, shareholders' or
employees business relationships, loans, accounts, balances, credit ratings,
experiences, or any other transaction with Florida Bank. Other examples of
confidential information include, but are not limited to: corporate policies,
objectives, goals and strategies; lists of clients, customers or vendors;
employee records; discs and tapes and other materials such as graphs, memoranda,
documents, manuals, reports, records, software or hardware for use in computer
or word-processing equipment, training materials, bulletins, and similar
originals or copies of records, whether or not you have contributed to their
creation. Any work assignment completed for Florida Bank at any location is also
confidential information and is the property of Florida Bank unless other
contractual arrangements have been made. When an employee leaves Florida Bank,
the employee may not retain, divulge or use any confidential information. In
certain states (including Florida), disclosure of such information without
appropriate authorization can result in criminal penalties for the individual
employee.

EMPLOYEE INNOVATIONS

Florida Bank strives to maintain its position as an industry leader through the
innovations of its employees. All innovations conceived or created by Florida
Bank employees in the course of their employment shall be the sole and exclusive
property of Florida Bank. Accordingly, employees shall execute assignments,
applications or other documents to protect Florida Bank's interests in these
innovations.

FLORIDA BANK COMPUTER SYSTEMS

All Florida Bank computing facilities, including Electronic Mail (E-mail) and
Voice Mail are intended for authorized business purposes only. Use of these
facilities for non-business activities is discouraged. E-mail and voice mail are
not encrypted or secured and therefore must not be used for the exchange of
confidential information.

All messages sent over Florida Bank computers and communications systems are the
property of Florida Bank. To properly maintain and manage this property,
management reserves the right to examine all data stored in or transmitted by
these systems. Messages sent over Florida Bank's internal electronic mail
systems are not subject to the privacy provisions of the Electronic
Communications Privacy Act of 1986 (which prohibits wiretapping), and therefore
employees should have no expectations of privacy associated with information
they store or send through these systems.

Excessive access from Florida Bank's computer network to any external computer
network (i.e. the Internet) is strictly prohibited unless specifically approved
through Florida Bank's normal approval process. Any approved external
connectivity is required to pass through the approved security process and will
be subject to specific audit and control requirements.

Specific policies have been developed to direct employees' Internet activities.
All employees must review these policies carefully and act according to the
regulation presented. Any requests for deviations from the policy must be
approved in advance by the Senior Operations Officer.

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INSIDER TRADING

An employee's position with Florida Bank may provide that employee with access
to "material non-public information" including but not limited to Florida Bank
or any of its current or prospective customers, business partners, suppliers,
potential acquisitions. "Material non-public information" includes information
that is not available to the public at large which would be important to an
investor in making a decision to buy, sell or retain a security. Common examples
of information that will frequently be considered material are: projections of
future earnings or losses; news of a pending or proposed merger or acquisition,
tender offer or exchange offer; news of a significant sale of assets or the
disposition of a subsidiary; changes in dividend policies or the declaration of
a stock split or the offering of additional securities; significant changes in
management; significant new products or discoveries; demanding payment of
indebtedness or impending financial liquidity problems. It should be noted that
either positive or negative information may be material.

An employee in possession of "material non-public information" including but not
limited to Florida Bank or any of its current or prospective customers, business
partners, suppliers or potential acquisitions shall not pass that information on
to others, and shall not purchase or sell a security or recommend to any other
person a security transaction involving the company about which the information
is known. After the information has been publicly disclosed through appropriate
channels, an employee should allow a reasonable time to elapse (at least two
business days) before trading in the security, to allow for public dissemination
and evaluation of the information. The use or disclosure of such information can
result in civil or criminal penalties under federal securities laws, both for
the individual concerned and for Florida Bank. A specific policy has been
developed concerning Insider Trading. All employees must review this policy
carefully.

RELATIONSHIP WITH THE INVESTMENT COMMUNITY

Institutional investors and securities analysts play a critical role in
establishing the pricing and liquidity of Florida Bank's stock and other
publicly held securities. To ensure proper disclosure and consistency of
information, all communications with members of the investment community should
be referred to the President, Chief Executive Officer or Chief Financial Officer
of Florida Banks, Inc.

FINANCIAL ACCOUNTABILITY AND INTERNAL CONTROLS

Florida Bank's internal control structure is critical to organizational safety
and soundness. These controls facilitate and govern both the ongoing accuracy of
accounting information and the efficiency and effectiveness of operation.
Therefore, Florida Bank expects all employees to be familiar with and abide by
the established internal controls within their responsibilities. Periodic
assessments of the internal control environment will be made by management,
internal audit, external audit and other internal review functions and/or
regulatory agencies. All Florida Bank employees are expected to provide timely
and accurate information during any such assessments of the control environment.

Electronic mail and other computer files provided by Florida Bank are to be
primarily used for business purposes. Use of computer facilities for personal
reasons is discouraged and all computer pass codes must be available to Florida
Bank at all times. Florida Bank reserves the right to enter, search and monitor
the computer files or electronic mail of any employee, without advance notice,
for business purposes such as investigating theft, disclosure of confidential
business or proprietary information, personal abuse of the system or monitoring
work flow, productivity or quality.

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INTEGRITY OF ACCOUNTING AND FINANCIAL INFORMATION

Florida Bank maintains the highest standards in preparing the accounting and
financial information disclosed to the public. There should never be issued any
information that is false, misleading, incomplete or that would lead to mistrust
by the public, the customers, or the stockholders. All accounting records shall
be compiled accurately with the appropriate accounting entries properly
classified when entered on the books.

No payments on behalf of Florida Bank shall be approved or any transaction made
with the intention or understanding that part or all of such payment will be
used for any purpose other than that described by the documents supporting it.
No fund, asset, or liability of Florida Bank shall, under any circumstances or
for any purpose, be concealed or used for an unlawful or improper purpose.

MONEY LAUNDERING AND TRANSACTION STRUCTURING

Someone may attempt to use Florida Bank to launder money derived from criminal
activity. The intention behind these types of transactions is to hide ownership
of the funds from the government.

Any employee who knowingly and willingly launders money or attempts or assists
someone in laundering money is subject to substantial fines or imprisonment or
both. Also, in accordance with the Bank Secrecy Act (BSA), any employee who
willfully structures a transaction, or attempts or assists someone in
structuring a transaction to avoid the currency reporting and recordkeeping
requirements of BSA, will be terminated and is subject to substantial fines and
imprisonment.

Florida Bank employees are prohibited from engaging in money laundering and/or
transaction structuring. All employees are required to immediately report all
attempts to launder money, structure a transaction and/or all suspicious
activities to the Bank Secrecy Officer or to some other member of senior
management.

EMBEZZLEMENT, THEFT AND MISAPPLICATION OF FUNDS

Florida Bank holds each employee responsible for maintaining accurate records.
Anyone who embezzles, steals, or willfully misappropriates any moneys, funds,
credits, or real property of Florida Bank is subject to fine or imprisonment or
both and will be prosecuted.

USE OF CORPORATE NAME AND LETTERHEAD

Florida Bank's or any of its affiliates' names, logos, trademarks, copyrights or
corporate letterheads may not be used for any purpose other than in the normal
course of official Bank business, unless expressly approved by senior
management. No Florida Bank employee can use the name "Florida Bank" or "Florida
Banks, Inc." in the Internet address (URL) of a personal Web page.

RELATIONSHIP WITH THE MEDIA

Florida Bank's relationship with the media is an important one that affects its
image in the community. Employees should refer all questions or requests for
information from reporters or other media representatives to Florida Banks, Inc.
President or Chief Executive Officer to ensure consistency and accuracy of
information.

THINGS OFFERED TO EMPLOYEES

It is a federal crime (Bank Bribery Statute) for any officer, director,
employee, agent or attorney of Florida Bank to corruptly solicit, demand or
accept for the benefit of any person anything of value from anyone in return for
any business, service or confidential information of Florida Bank, with the
intent to be influenced or rewarded, either before or after a transaction is

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discussed or consummated. Although all transactions and businesses are covered,
some examples include extensions of credit, underwriting transactions,
investment advice, trust matters, checking accounts, and purchases from
suppliers. The person who improperly offers or promises something of value under
these circumstances is guilty of the same offense. Substantial criminal
penalties can result from noncompliance.

It is not uncommon for employees to have close social or family ties with some
of those with whom they do business. Things of value exchanged between a Florida
Bank employee and family members or social friends are not covered by this Code
Of Conduct if they are exchanged solely because of the family or social
relationship and not in connection with a financial transaction or financial
business. However, the exchange of things of value that may create the
appearance of a conflict of interest should be avoided.

Although acceptance of things of value in connection with Bank business is
generally prohibited, an employee may accept meals, refreshments, travel
arrangements or accommodations, or entertainment, all of reasonable value, in
the course of a meeting or other occasion, the purpose of which is to hold bona
fide business discussions or to foster better business relations, provided the
benefit would be paid for by Florida Bank as a reasonable expense if not paid
for by another party; advertising or promotional material of nominal value, such
as pens, pencils, note pads, key chains, calendars and similar items; discounts
or rebates on merchandise or services that do not exceed those available to
other customers; gifts of modest value that are related to commonly recognized
events or occasions, such as a promotion, new job, wedding, retirement,
Christmas, bat or bar mitzvah; civic, charitable, educational or religious
organizational awards for recognition of service and accomplishment.

However, an employee may not receive things of value for purely personal
benefit, or for the personal benefit of anyone other than Florida Bank, which
serve no demonstrable business purpose. Gifts of cash in any amount are
expressly prohibited.

Whenever any situation arises with any question whatsoever with regard to
matters concerning things of value, each employee must make full disclosure to
Florida Bank management and receive management's written response.

THINGS OFFERED BY EMPLOYEES

Employees may not, on behalf of Florida Bank or any of its affiliates in
connection with any transaction or business of Florida Bank, directly or
indirectly give, offer, or promise anything of value to any individual, business
entity, organization, government unit, public official, political party or any
other person for the purpose of influencing the actions of the recipient. This
standard of conduct is not intended to prohibit normal business practices such
as providing meals, entertainment, tickets to cultural and sporting events,
promotional gifts, favors, discounts, price concessions, gifts given as tokens
of friendship or special occasions (such as Holidays), so long as they are of
nominal and reasonable value under the circumstances and promote Florida Bank's
legitimate business interests.

OUTSIDE ACTIVITIES

Employees' activities must not interfere, conflict or appear to conflict with
the interests of Florida Bank. Excluding non-employee members of the Board of
Directors, acceptance of outside employment, outside speaking engagements,
election to the board of directors of other organizations, representation of
Florida Bank customers in dealings with Florida Bank, and participation in
activities on behalf of outside organizations or in political activities
represent potential conflicts of interest.

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Appropriate gainful employment outside the Florida Bank system is permissible,
but discouraged. Employees should not engage in outside employment that
interferes with the time and attention that must be devoted to their duties at
Florida Bank or adversely affects the quality of the work they perform.

Outside employment or affiliation or activities should not compete or conflict
with the activities of Florida Bank; involve any use of company equipment,
supplies, or facilities; imply Florida Bank's sponsorship or support; or
adversely affect Florida Bank's reputation. Employees must disclose all outside
employment to senior management. Approval must be obtained prior to engaging in
any outside employment. Florida Bank encourages employees to participate in
worthwhile civic, social, educational and charitable organizations and
activities. Excluding non-employee members of the Board of Directors, employees
must not act without senior management approval in the following capacities: any
signing capacity on any account of another, except of a family member, held at
Florida Bank; an official of any organization, except for social, religious,
philanthropic or civic organizations, colleges or schools, neighborhood
associations, or trade or professional organizations associated with banking or
business.

SOUND PERSONAL FINANCES

The manner in which employees manage their personal finances can affect
on-the-job performance and Florida Bank's image in the community. Therefore,
employees must avoid any circumstances that may lead to overextension of credit
or salary attachments or drawing checks against insufficient funds or other
financially embarrassing situations. Employees are expected to maintain their
account(s) responsibly and they are also accountable for the actions of other
signer(s) on the account(s). Florida Bank reserves the right to review all
employee accounts at anytime. Employees experiencing financial difficulty are
encouraged to seek confidential counseling from The Employee Assistance Program.

Excluding non-employee members of the Board of Directors, employees and their
families should borrow only from commercial banks or retail institutions that
regularly lend money. Borrowing may be done only on a normal basis with no
favored treatment. Employees and their families may not borrow from customers
and suppliers except those who engage in lending in the usual course of their
business and then only on terms customarily offered to others under similar
circumstances without special concessions as to interest rate, terms, security
repayment terms and penalties. Any employee who is considered an "insider" under
Federal Reserve Regulations must also comply with Florida Bank's Lending Policy.

APPROPRIATE USE OF CORPORATE CREDIT CARDS

Each office has been provided a Corporate VISA card for purchases, travel and
bank related expenses. It is the responsibility of the person in possession of
the card to file timely expense reports in accordance with the expense policy.
The company card may be used for the sole purpose of facilitating payment of
expenses while conducting business. Any other use will result in the employee
not being permitted to use the card.

EMPLOYMENT OF RELATIVES OR PERSONS HAVING CLOSE PERSONAL RELATIONSHIPS

To minimize security risks and avoid conflicts of interest, immediate family
members or other persons with whom an employee has a close personal relationship
must not work in the same department, be placed in positions where one may
supervise another, influence the employment status of another or be placed where
one may be in a position processing, tracking, monitoring or recording
transactions initiated by the other.

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SAFETY

Safety is the responsibility of every employee. A safe work environment benefits
all employees. All employees are therefore expected to perform their jobs
following established safety methods and practices at all times, to include
exercising the proper precautions and safety rules.

Employees should immediately report all safety related workplace accidents,
regardless of how minor, to their supervisor. Employees should also report any
observed unsafe work areas and/or practices to their supervisor or to some other
member of management. The responsibility for accident prevention is shared by
all employees.

ADDITIONAL SPECIFIC POLICIES FOR CHIEF EXECUTIVE OFFICER AND SENIOR FINANCIAL
OFFICERS

The Chief Executive Officer (the "CEO") and all senior financial officers are
responsible for full, fair, accurate, timely and understandable disclosure in
the periodic reports required to be filed by Florida Bank with the Securities
and Exchange Commission. Accordingly, it is the responsibility of the CEO and
each senior financial officer promptly to report any untrue statement of
material fact and any omission of material fact of which he or she may become
aware pertaining to information prepared by him or her or associates in his or
her area(s) of responsibility that affect the disclosures made by Florida Bank
in its public filings.

The CEO and each senior financial officer shall promptly bring to the attention
of the Audit Committee of the Board of Directors any information he or she may
have concerning (a) significant deficiencies in the design or operation of
internal controls or disclosure controls which could adversely affect Florida
Bank's ability to record, process, summarize and report financial data on an
accurate and timely basis or (b) any fraud, whether or not material, that
involves management or other employees who have a significant role in Florida
Bank's financial reporting, disclosures or internal controls.

The CEO and each senior financial officer shall promptly bring to the attention
of the CEO and to the Audit Committee any information he or she may have
concerning any violation of the Code of Conduct, including any actual or
apparent conflicts of interest between personal and professional relationships,
involving any management or other employees who have a significant role in
Florida Bank's financial reporting, disclosures or internal controls.

The CEO and each senior financial officer shall promptly bring to the attention
of the CEO and to the Audit Committee any information he or she may have
concerning evidence of a material violation of the securities or other laws,
rules or regulations applicable to Florida Bank, by Florida Bank or any agent
thereof, or of a violation of the Code of Conduct.

The Board of Directors shall determine, or designate appropriate persons to
determine, appropriate actions to be taken in the event of violations of the
Code of Conduct by the CEO and Florida Bank's senior financial officers. Such
actions shall be reasonably designed to deter wrongdoing and to promote
accountability for adherence to the Code of Conduct and to the additional
policies set forth herein, and shall include, as appropriate, written notices to
the individual involved that the Board of Directors has determined that there
has been a violation, censure by the Board of Directors, demotion or
re-assignment of the individual involved, suspension with or without pay or
benefits (as determined by the Board of Directors) and termination of the
individual's employment. In determining what action is appropriate in a
particular case, the Board of Directors or such designee shall take into account
all relevant information, including the nature and severity of the violation,
whether the violation was a single occurrence or repeated occurrences, whether
the violation appears to have been intentional or inadvertent, whether the

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individual in question had been advised prior to the violation as to the proper
course of action and whether or not the individual in question had committed
other violations in the past.

NON-RETALIATION FOR REPORTING

In no event will Florida Bank take or threaten any action against an employee,
officer or director as a reprisal or retaliation for making a complaint or
disclosing or reporting information in good faith. However, if a reporting
individual was involved in improper activity, the individual may be
appropriately disciplined even if he or she was the one who disclosed the matter
to Florida Bank. In these circumstances, Florida Bank may consider the conduct
of the reporting individual in promptly reporting the information as a
mitigating factor in any disciplinary decision.

The Company will not allow retaliation against an employee, officer or director
for reporting a possible violation of this Code in good faith. Retaliation for
reporting a federal offense is illegal under federal law and prohibited under
this Code. Retaliation for reporting any violation of a law, rule or regulation
or a provision of this Code is prohibited. Retaliation will result in discipline
up to and including termination of employment and may also result in criminal
prosecution.

WAIVERS, AMENDMENTS AND MODIFICATIONS OF THE CODE OF CONDUCT

There shall be no waiver of any part of this Code for any director or officer
except by a vote of the Board of Directors or a designated board committee that
will ascertain whether a waiver is appropriate under all the circumstances. If a
waiver of this Code is granted to a director or officer, the notice of such
waiver, along with the justification for such waiver and the name of the person
to whom such waiver is granted, shall be disclosed on Form 8-K within five days
of the Board of Director's vote or shall be otherwise disclosed as required by
applicable law or The Nasdaq National Market ("Nasdaq") rules. This disclosure
requirement applies to any de facto waiver where an officer or director violates
the Code of Conduct but is not subjected to internal sanctions.

Any waiver of any provision of this Code with regard to any employee who is not
an executive officer or director of Florida Bank must be approved by the
employee's supervisor or such other person designated by the CEO.

There shall be no amendment or modification to this Code except by a vote of the
Board of Directors or a designated board committee that will ascertain whether
an amendment or modification is appropriate. In case of an amendment or
modification of this Code, the notice of such amendment shall be disclosed on
Form 8-K within five days of such amendment or modification by the Board of
Directors or shall otherwise disclose as required by applicable law or the
Nasdaq rules.

COMPLIANCE PROCEDURES

Employee Reporting

We must all work to ensure prompt and consistent action against violations of
this Code. You must report promptly any violations of this Code (including any
violations of the requirement of compliance with law). Failure to report a
violation can lead to disciplinary action against the person who failed to
report the violation which may be as severe as the disciplinary action against
the person who committed the violation.

Normally, a possible violation of this Code by an employee other than an officer
of our Company should be reported to the supervisor of the employee who commits
the violation. However, any employee may report any possible violation to our
Senior Vice President of Human Resources. Further, Florida Banks has made

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available a toll free confidential Ethics Hotline which is manned 7 days a week,
24 hours a day for disclosure purposes. Our Senior Vice President of Human
Resources can be reached by fax, mail or email at:

                                FLORIDA BANKS, INC.
                                HUMAN RESOURCES DEPARTMENT, CONFIDENTIAL
                                5210 BELFORT ROAD, SUITE 310
                                CONCOURSE II
                                JACKSONVILLE, FLORIDA 32256
                                FAX: (904) 296-2820
                                EMAIL: CRUNNION@FLBK.COM

A possible violation of this Code by a director or an officer should be reported
to our Senior Vice President of Human Resources. If you believe that in a
particular situation it would not be appropriate to report a possible violation
by a director or officer to the Senior Vice President of Human Resources, you
may report the possible violation to our Chief Executive Officer, to the
Chairman of the Audit Committee of our Board of Directors, or to any other
officer or director of our Company to whom you believe it would be appropriate
to report the possible violation.

If you report a possible violation of this Code by another person, your identity
will be kept confidential, except to the extent that you consent to be
identified or your identification is required by law. Possible violations may be
reported orally or in writing and may be reported anonymously.

In some situations it is difficult to know if a violation has occurred. Since we
cannot anticipate every situation that will arise, it is important that we have
a way to approach a new question or problem. These are the steps to keep in
mind:

         o  Make sure you have all the facts. In order to reach the right
            solutions, we must be as fully informed as possible.

         o  Ask yourself: What specifically am I being asked to do? Does it seem
            unethical or improper? This will enable you to focus on the specific
            question you are faced with, and the alternatives you have. Use your
            judgment and common sense; if something seems unethical or improper,
            it probably is.

         o  Clarify your responsibility and role. In most situations, there is
            shared responsibility. Are your colleagues informed? It may help to
            get others involved and discuss the problem.

         o  Discuss the problem with your supervisor. This is the basic guidance
            for all situations. In many cases, your supervisor will be more
            knowledgeable about the question, and will appreciate being brought
            into the decision-making process. Remember that it is your
            supervisor's responsibility to help solve problems.

         o  Seek help from Florida Bank resources. In the rare case where it may
            not be appropriate to discuss an issue with your supervisor, or
            where you do not feel comfortable approaching your supervisor with
            your question, discuss it locally with your office manager or your
            Human Resources manager.

         o  You may report ethical violations in confidence and without fear of
            retaliation. If your situation requires that your identity be kept

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            secret, your anonymity will be protected. Florida Bank does not
            permit retaliation of any kind against employees for good faith
            reports of ethical violations.

         o  Always ask first, act later: If you are unsure of what to do in any
            situation, seek guidance before you act.

Company Action

INTERNAL INVESTIGATION. When an alleged violation of the Code of Conduct is
reported, Florida Bank shall take prompt and appropriate action in accordance
with the law and regulations and otherwise consistent with good business
practice. If the suspected violation appears to involve either a possible
violation of law or an issue of significant corporate interest, or if the report
involves a complaint or concern of any person, whether employee, a shareholder
or other interested person regarding Florida Bank's financial disclosure,
internal accounting controls, questionable auditing or accounting matters or
practices or other issues relating to Florida Bank's accounting or auditing,
then the manager or investigator should immediately notify the supervisor or an
executive officer. If a suspected violation involves any director or executive
officer or if the suspected violation concerns any fraud, whether or not
material, involving management or other employees who have a significant role in
Florida Bank's internal controls, any person who received such report should
immediately report the alleged violation to, if appropriate, the Chief Executive
Officer and/or Chief Financial Officer, and, in every such case, the Chairman of
the Audit Committee. The Chairman of the Audit Committee, as applicable, shall
assess the situation and determine the appropriate course of action. At a point
in the process consistent with the need not to compromise the investigation, a
person who is suspected of a violation shall be apprised of the alleged
violation and shall have an opportunity to provide a response to the
investigator.

DISCIPLINARY ACTIONS. Subject to the following sentence, a compliance team
appointed by the Chief Executive Officer (the "Compliance Team"), after
consultation with the Senior Vice President of Human Resources, shall be
responsible for implementing the appropriate disciplinary action in accordance
with Florida Bank's policies and procedures for any employee who is found to
have violated the Code of Conduct. If a violation has been reported to the Audit
Committee or another committee of the Board, that Committee shall be responsible
for determining appropriate disciplinary action. Any violation of applicable law
or any deviation from the standards embodied in this Code will result in
disciplinary action, up to and including termination of employment. Any employee
engaged in the exercise of substantial discretionary authority, including any
executive officer, who is found to have engaged in a violation of law or
unethical conduct in connection with the performance of his or her duties for
Florida Bank, shall be removed from his or her position and not assigned to any
other position involving the exercise of substantial discretionary authority. In
addition to imposing discipline upon employees involved in non-compliant
conduct, Florida Bank also will impose discipline, as appropriate, upon an
employee's supervisor, if any, who directors or approves such employees'
improper actions, or is aware of those actions but does not act appropriately to
correct them, and upon other individuals who fail to report known non-compliant
conduct. In addition to imposing its own discipline, Florida Bank will bring any
violations of law to the attention of appropriate law enforcement personnel.

RETENTION OF REPORTS AND COMPLAINTS. All reports and complaints made to or
received by the Compliance Team or the Chair of the Audit Committee shall be
logged into a record maintained for this purpose by the Compliance Team and this
record of such report shall be retained for five (5) years.

                                       11
<PAGE>
REQUIRED GOVERNMENT REPORTING. Whenever conduct occurs that requires a report to
the government, the Compliance Team shall be responsible for complying with such
reporting requirements.

CORRECTIVE ACTIONS. Subject to the following sentence, in the event of a
violation of the Code of Conduct, the members of the Compliance Team should
assess the situation to determine whether the violation demonstrates a problem
that requires remedial action as to Company policies and procedures. If a
violation has been reported to the Audit Committee or another committee of the
Board, that committee shall be responsible for determining appropriate remedial
or corrective actions. Such corrective action may include providing revised
public disclosure, retaining Company employees, modifying Company policies and
procedures, improving monitoring of compliance under existing procedures and
other action necessary to detect similar non-compliant conduct and prevent it
from occurring in the future. Such corrective action shall be documented, as
appropriate.

                                       12<PAGE>
                                                                    EXHIBIT 10.1

                             1996 STOCK OPTION PLAN
                                       OF
                              PLANETOUT CORPORATION

1.       PURPOSES OF THE PLAN

         The purposes of the 1996 Stock Option Plan (the "Plan") of PlanetOut
Corporation, a Delaware corporation (the "Company"), are to:

         (a)      Encourage selected employees, directors and consultants to
improve operations and increase profits of the Company;

         (b)      Encourage selected employees, directors and consultants to
accept or continue employment or association with the Company or its Affiliates;
and

         (c)      Increase the interest of selected employees, directors and
consultants in the Company's welfare through participation in the growth in
value of the common stock of the Company (the "Common Stock").

         Options granted under this Plan ("Options") may be "incentive stock
options" ("ISOs") intended to satisfy the requirements of Section 422 of the
Internal Revenue Code of 1986, as amended (the "Code"), or "nonqualified
options" ("NQOs").

2.       ELIGIBLE PERSONS

         Every person who at the date of grant of an Option is a full-time
employee of the Company or of any Affiliate (as defined below) of the Company is
eligible to receive NQOs or ISOs under this Plan. Every person who at the date
of grant is a consultant to, or non-employee director of, the Company or any
Affiliate (as defined below) of the Company is eligible to receive NQOs under
this Plan. The term "Affiliate" as used in the Plan means a parent or subsidiary
corporation as defined in the applicable provisions (currently Sections 424(e)
and (f), respectively) of the Code. The term "employee" includes an officer or
director who is an employee, of the Company. The term "consultant" includes
persons employed by, or otherwise affiliated with, a consultant.

3.       STOCK SUBJECT To THIS PLAN

         Subject to the provisions of Section 6.1.1 of the Plan, the total
number of shares of stock which may be issued under options granted pursuant to
this Plan shall not exceed 2,121,737 shares of Common Stock. The shares covered
by the portion of any grant under the Plan which expires unexercised shall
become available again for grants under the Plan.

4.       ADMINISTRATION

         (a)      This Plan shall be administered by the Board of Directors of
the Company (the "Board") or, either in its entirety or only insofar as required
pursuant to Section 4(b) hereof, by a

                                       1.
<PAGE>

committee (the "Committee") of at least two Board members to which
administration of the Plan, or of part of the Plan, is delegated (in either
case, the "Administrator").

         (b)      From and after such time as the Company registers a class of
equity securities under Section 12 of the Securities Exchange Act of 1934, as
amended (the "Exchange Act"), it is intended that this Plan shall be
administered in accordance with the disinterested administration requirements of
Rule 16b-3 promulgated by the Securities and Exchange Commission ("Rule 16b-3"),
or any successor rule thereto.

         (c)      Subject to the other provisions of this Plan, the
Administrator shall have the authority, in its discretion: (i) to grant Options;
(ii) to determine the fair market value of the Common Stock subject to Options;
(iii) to determine the exercise price of Options granted; (iv) to determine the
persons to whom, and the time or times at which, Options shall be granted, and
the number of shares subject to each Option; (v) to interpret this Plan; (vi) to
prescribe, amend, and rescind rules and regulations relating to this Plan; (vii)
to determine the terms and provisions of each Option granted (which need not be
identical), including but not limited to, the time or times at which Options
shall be exercisable; (viii) with the consent of the optionee, to modify or
amend any Option; (ix) to defer (with the consent of the optionee) the exercise
date of any Option; (x) to authorize any person to execute on behalf of the
Company any instrument evidencing the grant of an Option; and (xi) to make all
other determinations deemed necessary or advisable for the administration of
this Plan. The Administrator may delegate nondiscretionary administrative duties
to such employees of the Company as it deems proper.

         (d)      All questions of interpretation, implementation, and
application of this Plan shall be determined by the Administrator. Such
determinations shall be final and binding on all persons.

         (e)      With respect to persons subject to Section 16 of the Exchange
Act, if any, transactions under this Plan are intended to comply with the
applicable conditions of Rule 16b-3, or any successor rule thereto. To the
extent any provision of this plan or action by the Administrator fails to so
comply, it shall be deemed null and void, to the extent permitted by law and
deemed advisable by the Administrator. Notwithstanding the above, it shall be
the responsibility of such persons, not of the Company or the Administrator, to
comply with the requirements of Section 16 of the Exchange Act; and neither the
Company nor the Administrator shall be liable if this Plan or any transaction
under this Plan fails to comply with the applicable conditions of Rule 16b-3 or
any successor rule thereto, or if any such person incurs any liability under
Section 16 of the Exchange Act.

5.       GRANTING OF OPTIONS; OPTION AGREEMENT

         (a)      No Options shall be granted under this Plan after ten years
from the date of adoption of this Plan by the Board.

         (b)      Each Option shall be evidenced by a written stock option
agreement, in form satisfactory to the Company, executed by the Company and the
person to whom such Option is granted; provided, however, that the failure, by
the Company, the optionee, or both to execute

                                       2.
<PAGE>

such an agreement shall not invalidate the granting of an Option, although the
exercise of each option shall be subject to Section 6.1.3.

         (c)      The stock option agreement shall specify whether each Option
it evidences is a NQO or an ISO.

         (d)      Subject to Section 6.3.3 with respect to ISOs, the
Administrator may approve the grant of Options under this Plan to persons who
are expected to become employees, directors or consultants of the Company, but
are not employees, directors or consultants at the date of approval.

6.       TERMS AND CONDITIONS OF OPTIONS

         Each Option granted under this Plan shall be subject to the terms and
conditions set forth in Section 6.1. NQOs shall be also subject to the terms and
conditions set forth in Section 6.2, but not those set forth in Section 6.3.
ISOs shall also be subject to the terms and conditions set forth in Section 6.3,
but not those set forth in Section 6.2.

         6.1      TERMS AND CONDITIONS TO WHICH ALL OPTIONS ARE SUBJECT. All
Options granted under this Plan shall be subject to the following terms and
conditions:

                  6.1.1    CHANGES IN CAPITAL STRUCTURE. Subject to Section
6.1.2, if the stock of the Company is changed by reason of a stock split,
reverse stock split, stock dividend, or recapitalization, combination or
reclassification, appropriate adjustments shall be made by the Board in (a) the
number and class of shares of stock subject to this Plan and each Option
outstanding under this Plan, and (b) the exercise price of each outstanding
Option; provided, however, that the Company shall not be required to issue
fractional shares as a result of any such adjustments. Each such adjustment
shall be subject to approval by the Board in its sole discretion.

                  6.1.2    CORPORATE TRANSACTIONS. In the event of the proposed
dissolution or liquidation of the Company, the Administrator shall notify each
optionee at least 30 days prior to such proposed action. To the extent not
previously exercised, all Options will terminate immediately prior to the
consummation of such proposed action. In the event of a merger or consolidation
of the Company with or into another corporation or entity in which the Company
does not survive, or in the event of a sale of all or substantially all of the
assets of the Company in which the stockholders of the Company receive
securities of the acquiring entity or an affiliate thereof, all Options shall be
assumed or equivalent options shall be substituted by the successor corporation
(or other entity) or a parent or subsidiary of such successor corporation (or
other entity). If such successor does not agree to assume the Options or to
substitute equivalent options therefor, unless the Administrator shall determine
otherwise, the Options will expire upon such event.

                  6.1.3    TIME OF OPTION EXERCISE. Subject to Section 5 and
Section 6.3.4, Options granted under this Plan shall be exercisable (a)
immediately as of the effective date of the stock option agreement granting the
Option, or (b) in accordance with a schedule related to the date of the grant of
the Option, the date of first employment, or such other date as may be set by
the Administrator (in any case, the "Vesting Base Date") and specified in the
written stock

                                       3.
<PAGE>

option agreement relating to such Option; provided, however, that the right to
exercise an Option must vest at the rate of at least 20% per year over five
years from the date the Option was granted. In any case, no Option shall be
exercisable until a written stock option agreement in form satisfactory to the
Company is executed by the Company and the optionee.

                  6.1.4    OPTION GRANT DATE. Except in the case of advance
approvals described in Section 5(d), the date of grant of an Option under this
Plan shall be the date as of which the Administrator approves the grant.

                  6.1.5    NONASSIGNABILITY OF OPTION RIGHTS. No Option granted
under this Plan shall be assignable or otherwise transferable by the optionee
except by will or by the laws of descent and distribution. During the life of
the optionee, an Option shall be exercisable only by the optionee.

                  6.1.6    PAYMENT. Except as provided below, payment in full,
in cash, shall be made for all stock purchased at the time written notice of
exercise of an Option is given to the Company, and proceeds of any payment shall
constitute general funds of the Company. At the time an Option is granted or
exercised, the Administrator, in the exercise of its absolute discretion after
considering any tax or accounting consequences, may authorize any one or more of
the following additional methods of payment:

                           (a)      Acceptance of the optionee's full recourse
promissory note for all or part of the Option price, payable on such terms and
bearing such interest rate as determined by the Administrator (but in no event
less than the minimum interest rate specified under the Code at which no
additional interest would be imputed), which promissory note may be either
secured or unsecured in such manner as the Administrator shall approve
(including, without limitation, by a security interest in the shares of the
Company); and

                           (b)      Delivery by the optionee of Common Stock
already owned by the optionee for all or part of the Option price, provided the
value (determined as set forth in Section 6.1.11) of such Common Stock is equal
on the date of exercise to the Option price, or such portion thereof as the
optionee is authorized to pay by delivery of such stock; provided, however, that
if an optionee has exercised any portion of any Option granted by the Company by
delivery of Common Stock, the optionee may not, within six months following such
exercise, exercise any Option granted under this Plan by delivery of Common
Stock without the consent of the Administrator.

                  6.1.7    TERMINATION OF EMPLOYMENT.

                           (a)      If for any reason other than death or
disability, an optionee ceases to be employed by the Company or any of its
Affiliates (such event being called a "Termination"), Options held at the date
of Termination (to the extent then exercisable) may be exercised in whole or in
part at any time within three months of the date of such Termination, or such
other period of not less than thirty days after the date of such Termination as
is specified in the Option Agreement (but in no event after the Expiration
Date); provided, that if such exercise of the Option would result in liability
for the optionee under Section 16(b) of the Exchange Act, then such three-month
period automatically shall be extended until the tenth day following the

                                       4.
<PAGE>

last date upon which optionee has any liability under Section 16(b) (but in no
event after the Expiration Date).

                           (b)      If an optionee dies while employed by the
Company or an Affiliate or within the period that the Option remains exercisable
after Termination, Options then held (to the extent then exercisable) may be
exercised, in whole or in part, by the optionee, by the optionee's personal
representative, or by the person to whom the Option is transferred by devise or
the laws of descent and distribution, at any time within twelve months after the
death of the optionee, or such other period of not less than six months from the
date of Termination as is specified in the Option Agreement (but in no event
after the Expiration Date).

                           (c)      If an optionee ceases to be employed by the
Company as a result of his or her disability, the optionee may, but only within
six (6) months from the date of Termination (and in no event after the
Expiration Date), exercise the Option to the extent otherwise entitled to
exercise it at the date of Termination; provided, however, that if such
disability is not a "disability" as such term is defined in Section 22(e) (3) of
the Code, in the case of an ISO such ISO shall automatically convert to an NQO
on the day three months and one day following such Termination. To the extent
that the optionee was not entitled to exercise the Option at the date of
Termination or if the optionee does not exercise such Option to the extent so
entitled within the time specified herein, the Option shall terminate, and the
Shares covered by such Option shall revert to the Plan.

                           (d)      For purposes of this Section 6.1.7,
"employment" includes service as a director or as a consultant. For purposes of
this Section 6.1.7, an optionee's employment shall not be deemed to terminate by
reason of sick leave, military leave, or other leave of absence approved by the
Administrator, if the period of any such leave does not exceed 90 days or, if
longer, if the optionee's right to reemployment by the Company or any Affiliate
is guaranteed either contractually or by statute.

                  6.1.8    REPURCHASE OF STOCK. At the option of the
Administrator, the stock to be delivered pursuant to the exercise of any Option
granted to an employee, director or consultant under this Plan may be subject to
a right of repurchase in favor of the Company with respect to any employee, or
director or consultant whose employment, or director or consulting relationship
with the Company is terminated. Such right of repurchase either:

                           (a)      shall be at the Option exercise price and
(i) shall lapse at the rate of at least 20% per year over five years from the
date the Option is granted (without regard to the date it becomes exercisable),
and must be exercised for cash or cancellation of purchase money indebtedness
within 90 days of such termination and (ii) if the right is assignable by the
Company, the assignee must pay the Company upon assignment of the right (unless
the assignee is a 100% owned subsidiary of the Company or is an Affiliate) cash
equal to the difference between the Option exercise price and the value
(determined as set forth in Section 6.1.11) of the stock to be purchased if the
Option exercise price is less than such value; or

                           (b)      shall be at the higher of the Option
exercise price or the value (determined as set forth in Section 6.1.11) of the
stock being purchased on the date of termination, and must be exercised for cash
or cancellation of purchase money indebtedness (a)

                                       5.
<PAGE>

within 90 days of termination of employment, and such right shall terminate when
the Company's securities become publicly traded.

         Determination of the number of shares subject to any such right of
repurchase shall be made as of the date the employee's employment by, director's
director relationship with, or consultant's consulting relationship with, the
Company terminates, not as of the date that any Option granted to such employee,
director or consultant is thereafter exercised.

                  6.1.9    WITHHOLDING AND EMPLOYMENT TAXES. At the time of
exercise of an Option or at such other time as the amount of such obligations
becomes determinable (the "Tax Date"), the optionee shall remit to the Company
in cash all applicable federal and state withholding and employment taxes. If
authorized by the Administrator in its sole discretion after considering any tax
or accounting consequences, an optionee may elect to (i) deliver a promissory
note on such terms as the Administrator deems appropriate, (ii) tender to the
Company previously owned shares of Stock or other securities of the Company, or
(iii) have shares of Common Stock which are acquired upon exercise of the Option
withheld by the Company to pay some or all of the amount of tax that is required
by law to be withheld by the Company as a result of the exercise of such Option,
subject to the following limitations:

                           (a)      Any election pursuant to clause (iii) above
by an optionee subject to Section 16 of the Exchange Act shall either (x) be
made at least six months before the Tax Date and shall be irrevocable; or (y)
shall be made in (or made earlier to take effect in) any ten-day period
beginning on the third business day following the date of release for
publication of the Company's quarterly or annual summary statements of earnings
and shall be subject to approval by the Administrator, which approval may be
given at any time after such election has been made. In addition, in the case of
(y), the Option shall be held at least six months prior to the Tax Date.

                           (b)      Any election pursuant to clause (ii) above,
where the optionee is tendering Common Stock issued pursuant to the exercise of
an Option, shall require that such shares be held at least six months prior to
the Tax Date.

         Any of the foregoing limitations may be waived (or additional
limitations may be imposed) by the Administrator, in its sole discretion, if the
Administrator determines that such foregoing limitations are not required (or
that such additional limitations are required) in order that the transaction
shall be exempt from Section 16(b) of the Exchange Act pursuant to Rule 16b-3,
or any successor rule thereto. In addition, any of the foregoing limitations may
be waived by the Administrator, in its sole discretion, if the Administrator
determines that Rule 16b-3, or any successor rule thereto, is not applicable to
the exercise of the Option by the optionee or for any other reason.

         Any securities tendered or withheld in accordance with this Section
6.1.9 shall be valued by the Company as of the Tax Date.

                  6.1.10   OTHER PROVISIONS. Each Option granted under this Plan
may contain such other terms, provisions, and conditions not inconsistent with
this Plan as may be determined by the Administrator, and each ISO granted under
this Plan shall include such provisions and

                                       6.
<PAGE>

conditions as are necessary to qualify the Option as an "incentive stock option"
within the meaning of Section 422 of the Code. If Options provide for a right of
first refusal in favor of the Company with respect to stock acquired by
employees, directors or consultants, such Options shall provide that the right
of first refusal shall terminate upon the earlier of (i) the closing of the
Company's initial registered public offering to the public generally, or (ii)
the date ten years after the grant date as set forth in Section 6.1.4.

                  6.1.11   DETERMINATION OF VALUE. For purposes of the Plan, the
value of Common Stock or other securities of the Company shall be determined as
follows:

                           (a)      If the stock of the Company is listed on any
established stock exchange or a national market system, including without
limitation the National Market System of the National Association of Securities
Dealers, Inc. Automated Quotation System, its fair market value shall be the
closing sales price for such stock or the closing bid if no sales were reported,
as quoted on such system or exchange (or the largest such exchange) for the date
the value is to be determined (or if there are no sales for such date, then for
the last preceding business day on which there were sales), as reported in the
Wall Street Journal or similar publication.

                           (b)      If the stock of the Company is regularly
quoted by a recognized securities dealer but selling prices are not reported,
its fair market value shall be the mean between the high bid and low asked
prices for the stock on the date the value is to be determined (or if there are
no quoted prices for the date of grant, then for the last preceding business day
on which there were quoted prices).

                           (c)      In the absence of an established market for
the stock, the fair market value thereof shall be determined in good faith by
the Administrator, with reference to the Company's net worth, prospective
earning power, dividend-paying capacity, and other relevant factors, including
the goodwill of the Company, the economic outlook in the Company's industry, the
Company's position in the industry and its management, and the values of stock
of other corporations in the same or a similar line of business.

                  6.1.12   OPTION TERM. Subject to Section 6.3.5, no Option
shall be exercisable more than ten years after the date of grant, or such lesser
period of time as is set forth in the stock option agreement (the end of the
maximum exercise period stated in the stock option agreement is referred to in
this Plan as the "Expiration Date").

                  6.1.13   EXERCISE PRICE. The exercise price of any Option
granted to any person who owns, directly or by attribution under the Code
currently Section 424(d), stock possessing more than ten percent of the total
combined voting power of all classes of stock of the Company or of any Affiliate
(a "Ten Percent Stockholder") shall in no event be less than 110% of the fair
market value (determined in accordance with Section 6.1.11) of the stock covered
by the Option at the time the Option is granted.

         6.2      TERMS AND CONDITIONS TO WHICH ONLY NQOS ARE SUBJECT. Options
granted under this Plan which are designated as NQOs shall be subject to the
following terms and conditions:

                                       7.
<PAGE>

                  6.2.1    EXERCISE PRICE. Except as set forth in Section
6.1.13, the exercise price of a NQO granted after May 15, 1996 shall be not less
than 85% of the fair market value (determined in accordance with Section 6.1.11)
of the stock subject to the Option on the date of grant.

         6.3      TERMS AND CONDITIONS TO WHICH ONLY ISOs ARE SUBJECT. Options
granted under this Plan which are designated as ISOS shall be subject to the
following terms and conditions:

                  6.3.1    EXERCISE PRICE. Except as set forth in Section
6.1.13, the exercise price of an ISO shall be determined in accordance with the
applicable provisions of the Code and shall in no event be less than the fair
market value (determined in accordance with Section 6.1.11) of the stock covered
by the Option at the time the Option is granted.

                  6.3.2    DISQUALIFYING DISPOSITIONS. If stock acquired by
exercise of an ISO granted pursuant to this Plan is disposed of in a
"disqualifying disposition" within the meaning of Section 422 of the Code, the
holder of the stock immediately before the disposition shall promptly notify the
Company in writing of the date and terms of the disposition and shall provide
such other information regarding the Option as the Company may reasonably
require.

                  6.3.3    GRANT DATE. If an ISO is granted in anticipation of
employment as provided in Section 5(d), the Option shall be deemed granted,
without further approval, on the date the grantee assumes the employment
relationship forming the basis for such grant, and, in addition, satisfies all
requirements of this Plan for Options granted on that date.

                  6.3.4    VESTING. Notwithstanding any other provision of this
Plan, ISOs granted under all incentive stock option plans of the Company and its
subsidiaries may not "vest" for more than $100,000 in fair market value of stock
(measured on the grant dates(s)) in any calendar year. For purposes of the
preceding sentence, an option "vests" when it first becomes exercisable. If, by
their terms, such ISOs taken together would vest to a greater extent in a
calendar year, and unless otherwise provided by the Administrator, the vesting
limitation described above shall be applied by deferring the exercisability of
those ISOs or portions of ISOs which have the highest per share exercise prices;
but in no event shall more than $100,000 in fair market value of stock (measured
on the grant date(s)) vest in any calendar year. The ISOs or portions of ISOs
whose exercisability is so deferred shall become exercisable on the first day of
the first subsequent calendar year during which they may be exercised, as
determined by applying these same principles and all other provisions of this
Plan including those relating to the expiration and termination of ISOs. In no
event, however, will the operation of this Section 6.3.4 cause an ISO to vest
before its terms or, having vested, cease to be vested.

                  6.3.5    TERM. Notwithstanding Section 6.1.12, no ISO granted
to any Ten Percent Stockholder shall be exercisable more than five years after
the date of grant.

7.       MANNER OF EXERCISE

         (a)      An optionee wishing to exercise an Option shall give written
notice to the Company at its principal executive office, to the attention of the
officer of the Company designated by the Administrator, accompanied by payment
of the exercise price as provided in

                                       8.
<PAGE>

Section 6.1.6. The date the Company receives written notice of an exercise
hereunder accompanied by payment of the exercise price will be considered as the
date such Option was exercised.

         (b)      Promptly after receipt of written notice of exercise of an
Option, the Company shall, without stock issue or transfer taxes to the optionee
or other person entitled to exercise the Option, deliver to the optionee or such
other person a certificate or certificates for the requisite number of shares of
stock. An optionee or permitted transferee of an optionee shall not have any
privileges as a stockholder with respect to any shares of stock covered by the
Option until the date of issuance (as evidenced by the appropriate entry on the
books of the Company or a duly authorized transfer agent) of such shares.

8.       EMPLOYMENT OR CONSULTING RELATIONSHIP

         Nothing in this Plan or any Option granted thereunder shall interfere
with or limit in any way the right of the Company or of any of its Affiliates to
terminate any optionee's employment or consulting at any time, nor confer upon
any optionee any right to continue in the employ of, or consult with, the
Company or any of its Affiliates.

9.       FINANCIAL INFORMATION

         The Company shall provide to each optionee during the period such
optionee holds an outstanding Option, and to each holder of Common Stock
acquired upon exercise of Options granted under the Plan for so long as such
person is a holder of such Common Stock, annual financial statements of the
Company as prepared either by the Company or independent certified public
accountants of the Company. Such financial statements shall include, at a
minimum, a balance sheet and an income statement, and shall be delivered as soon
as practicable following the end of the Company's fiscal year.

10.      CONDITIONS UPON ISSUANCE OF SHARES.

         Shares of Common Stock shall not be issued pursuant to the exercise of
an Option unless the exercise of such Option and the issuance and delivery of
such shares pursuant thereto shall comply with all relevant provisions of law,
including, without limitation, the Securities Act of 1933, as amended (the
"Securities Act").

11.      NONEXCLUSIVITY OF THE PLAN.

         The adoption of the Plan shall not be construed as creating any
limitations on the power of the Company to adopt such other incentive
arrangements as it may deem desirable, including, without limitation, the
granting of stock options other than under the Plan.

12.      MARKET STANDOFF.

         Each Optionee, if so requested by the Company or any representative of
the underwriters in connection with any registration of the offering of any
securities of the company under the Securities Act shall not sell or otherwise
transfer any shares of Common Stock acquired upon exercise of Options during the
180-day period following the effective date of a registration

                                       9.
<PAGE>

statement of the company filed under the Securities Act; provided, however, that
such restriction shall apply only to the first two registration statements of
the Company to become effective under the Securities Act which includes
securities to be sold on behalf of the Company to the public in an underwritten
public offering under the Securities Act. The Company may impose stop-transfer
instructions with respect to securities subject to the foregoing restriction
until the end of such 180-day period.

13.      AMENDMENTS TO PLAN

         The Board may at any time amend, alter, suspend or discontinue this
Plan. Without the consent of an optionee, no amendment, alteration, suspension
or discontinuance may adversely affect outstanding Options except to conform
this Plan and ISOs granted under this Plan to the requirements of federal or
other tax laws relating to incentive stock options. No amendment, alteration,
suspension or discontinuance shall require stockholder approval unless (a)
stockholder approval is required to preserve incentive stock option treatment
for federal income tax purposes, or (b) the Board otherwise concludes that
stockholder approval is advisable.

14.      EFFECTIVE DATE OF PLAN

         This Plan shall become effective upon adoption by the Board provided,
however, that no Option shall be exercisable unless and until written consent of
the stockholders of the Company, or approval of stockholders of the Company
voting at a validly called stockholders' meeting, is obtained within 12 months
after adoption by the Board. If such stockholder approval is not obtained within
such time, Options granted hereunder shall terminate and be of no force and
effect from and after expiration of such 12-month period. Options may be granted
and exercised under this Plan only after there has been compliance with all
applicable federal and state securities laws.

Plan adopted by the Board of Directors on April 21, 1996.

                                      10.

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