Document:

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                                  EXHIBIT 10.14

                      (To Common Stock Purchase Agreement)

                                 PROMISSORY NOTE
$1,300,000                                                         April 7, 2004

FOR VALUE RECEIVED, Distributed Delivery Networks Corporation, a Delaware
corporation ("MAKER"), hereby unconditionally promises to pay to the order of
Amistar Corporation, a California corporation ("LENDER"), in lawful money of the
United States of America and in immediately available funds, the principal sum
of One Million Three Hundred Thousand Dollars ($1,300,000) (the "PRINCIPAL
AMOUNT"), together with accrued and unpaid interest thereon, each due and
payable on the dates and in the manner set forth below. This Note is made in
connection with that certain Common Stock Purchase Agreement, dated as of April
7, 2004 (the "PURCHASE AGREEMENT"), between Maker and Lender. All capitalized
terms used herein that are not otherwise defined shall have such meanings as
ascribed to them in the Purchase Agreement.

         1. INTEREST RATE. Subject to the terms hereof, the rate of interest
prior to the maturity of the indebtedness evidenced hereby, whether by
acceleration or otherwise, shall be four and 61/100 percent (4.61%) per annum
(the "INTEREST RATE"). Interest shall be calculated on the basis of a 360-day
year for the actual number of days elapsed.

         2. PAYMENT SCHEDULE. Subject to Sections 3 and 6 below, Maker shall pay
monthly installments of principal and interest in accordance with the payment
schedule set forth below. All payments shall be applied first to any charges due
hereunder, then to accrued interest, and then to the principal balance.

                  (a) No amounts shall be due or payable prior to April 7, 2008.
On April 7, 2008, all accrued interest shall be added to the Principal Amount
and the resulting amount shall be amortized and repaid in seventy-two (72)
substantially equal monthly installments, each such payment to be due and
payable in arrears on the first (1st) day of each calendar month, commencing on
April 7, 2008 and continuing until the Maturity Date (as defined below).

                  (b) The entire outstanding Principal Amount and all accrued
interest shall be due and payable in full on April 7, 2014 (the "MATURITY
DATE").

         3. PREPAYMENTS.

                  (a) This Note may be prepaid in whole or in part at any time
without premium or penalty.

                  (b) All amounts outstanding under this Note shall be prepaid
in full immediately prior to (i) Maker's dissolution or liquidation, or (ii) the
acquisition by a third party of all or substantially all of Maker's capital
stock, equity interests or assets.

                  (c) (i) In addition, Lender shall have the option, at any time
(not more than once) on or prior to October 7, 2004, to require Maker to prepay
all amounts outstanding under this Note; PROVIDED that this right, which is
hereinafter referred to as the "PREPAYMENT," shall be exercisable by Lender if,
and only if, Maker's management has failed to provide evidence, satisfactory to

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Lender in its reasonable good faith determination, of interest by a top 10
pharmacy retail chain in the purchase of an automated dispensing machine from
Maker for retail pharmacy prescriptions.

                           (ii) The Prepayment shall be subject to Maker's
receipt of requisite consents and compliance with applicable law. In the event
Maker is unable to effect the Prepayment due to the foregoing, Maker shall use
commercially reasonable efforts to obtain such consents and/or comply with such
law (as applicable) in order to effect the Prepayment as soon as reasonably
practicable. In addition, the Prepayment shall be subject to and occur
concurrently with Maker's (A) redemption (the "REDEMPTION") of Lender's shares
of Maker's Common Stock ("COMMON STOCK") under Section 9 of that certain
Investor Rights Agreement dated as of the date hereof among Maker, Lender and
William Holmes and David Blackburn (President, Harbour Ventures) (the
"FOUNDERS") and (B) payment of any bonus to William Holmes that is required
under the Employment Agreement between the Maker and William Holmes of even date
herewith in accordance with Section 2(ii) thereof ("BONUS").

                           (iii) The Prepayment shall be exercised by written
notice signed by Lender and delivered to Maker as provided in Section 7.4 of the
Purchase Agreement. Such notice shall identify the Principal Amount ("PREPAYMENT
PRINCIPAL") and the interest ("PREPAYMENT INTEREST" and, together with the
Prepayment Principal, the "PREPAYMENT AMOUNT") outstanding under this Note, the
number of shares of Common Stock to be sold to Maker in the Redemption and shall
notify Maker of the time, place and date for settlement of such repayment and
sale, which shall be scheduled by Lender within ninety (90) days following the
date of such notice. Subject to Section 3(c)(ii), Maker shall pay, on the date
of settlement specified in such notice, the Prepayment Amount, at Lender's
option, in cash or by offset against any indebtedness owing to Maker by Lender,
or by a combination of both.

                           (iv) In the event the Prepayment Principal being paid
plus the aggregate redemption price to be paid by Maker for the Common Stock
pursuant to the Redemption, less any portion of such amounts that are to be paid
by offset against any indebtedness owing to Maker by Lender, is greater than (A)
92.5% of (B) (1) the aggregate of Maker's then-current cash and cash equivalents
as reflected on its most recent regularly prepared financial statement prepared
in accordance with United States generally accepted accounting principles, less
(2) any outstanding liabilities of Maker (including the Prepayment Interest and
Bonus, but excluding the Prepayment Principal) (the amount, if any, by which (1)
exceeds (2), the "EXCESS CASH") (the product of (A) and (B), the "MAXIMUM CASH
AMOUNT"), then the Maximum Cash Amount shall be used to repay the Prepayment
Principal and redeem that number shares of Common Stock pursuant to the
Redemption so that the proportion that Principal Amount under this Note repaid
bears to the Prepayment Principal is equal to the proportion that the number of
shares of Common Stock redeemed bears to the total number of shares of Common
Stock then held by Lender. In addition, the amount, if any, by which the
then-current cash and cash equivalents as reflected on Maker's most recent
regularly prepared financial statement prepared in accordance with United States
generally accepted accounting principles exceed any outstanding liabilities of
Maker (excluding the Prepayment Interest, Bonus and Prepayment Principal), less
any Excess Cash, shall be used to pay any Prepayment Interest due Lender and
Bonus due William Holmes on a pro rata basis. The Maximum Cash Amount and any
additional amounts paid pursuant to the preceding sentence shall be paid on the
date of settlement as set forth above. Any Prepayment Amount not repaid in
accordance with this Section 3(c)(iv) shall be forgiven and this Note shall be
cancelled.

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         4. PLACE OF PAYMENT. All amounts payable hereunder shall be payable in
immediately available funds at the office of Lender, 237 Via Vera Cruz, San
Marcos, CA 92069, unless another place of payment shall be specified in writing
by Lender.

         5. DEFAULT. Each of the following events shall be an "EVENT OF DEFAULT"
hereunder:

                  (a) Maker fails to pay timely any of the principal, interest
or other amounts due under this Note on the date the same become due and
payable;

                  (b) Maker files any petition or commences any case or other
proceeding with respect thereto for relief under any bankruptcy, reorganization,
arrangement, insolvency, readjustment of debt, liquidation or moratorium law or
any other law for the relief of, or relating to, debtors, now or hereafter in
effect, or makes any assignment for the benefit of creditors, or admits in
writing its inability to pay or generally fails to pay its debts as they mature
or become due, or Maker dissolves or ceases to continue to exist, or takes any
corporate action in furtherance of any of the foregoing; or

                  (c) an involuntary petition is filed or any case or other
proceeding is commenced against Maker (unless such petition is dismissed or
discharged within sixty (60) days) under any bankruptcy, reorganization,
arrangement, insolvency, adjustment of debt, liquidation or moratorium statute
now or hereafter in effect, or a custodian, receiver, trustee, liquidator,
assignee for the benefit of creditors (or other similar official) is applied for
or appointed for Maker or is applied for or appointed to take possession,
custody or control of any property of Maker.

         6. REMEDIES. Upon the occurrence and during the continuance of an Event
of Default hereunder:

                  (a) all unpaid principal, accrued interest and other amounts
owing hereunder shall, at the option of Lender (and, in the case of an Event of
Default pursuant to Section 5(b) or (c) above, automatically) be immediately
due, payable and collectible by Lender pursuant to applicable law; and

                  (b) Lender may exercise any and all rights and remedies it may
have under this Note and/or under applicable law.

         All rights and remedies shall be cumulative and not exclusive. The
failure of Lender to exercise all or any of its rights, remedies, powers or
privileges hereunder or any other agreement or applicable law in any instance
shall not constitute a waiver thereof in that or any other instance.

         7. EXPENSES. If any of the installment payments of principal or
interest of this Note is not paid when due, an Event of Default shall have
occurred, or Maker otherwise breaches its obligations under this Note, Maker
shall pay reasonable attorneys' fees to Lender together with reasonable costs
and expenses of collection, including, without limitation, any attorneys' fees,
costs and expenses relating to any proceedings with respect to the bankruptcy,
reorganization, insolvency, readjustment of debt, dissolution or liquidation of
Maker or any party to any agreement or instrument securing this Note.

         8. MAXIMUM RATE. All agreements which either are now or which shall
become agreements between Maker and the holder of this Note are hereby expressly
limited so that in no contingency or event whatever, whether by reason of
deferment or advancement of the indebtedness represented by this Note,
acceleration of the maturity date of this Note, or otherwise, shall the amount

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paid or agreed to be paid to the holder of this Note for the use, forbearance or
detention of the indebtedness evidenced hereby exceed the maximum amount of
interest permissible under applicable law. If at any time, from any circumstance
whatsoever, fulfillment of any provision of this Note or any other agreement
between Maker and the holder hereof, shall result in or involve payments or
performance which would exceed the maximum legal interest rate, then, ipso
facto, the obligation to be fulfilled shall be reduced so as not to exceed said
maximum legal interest rate.

         9. WAIVER. Maker, for itself and its legal representatives, successors
and assigns, hereby expressly waives demand, presentment, notice of dishonor,
protest and notice of protest, and all other demands and notices in connection
with the delivery, acceptance, performance, default or enforcement of this Note
and agrees that any extension, renewal or postponement of the time of payment or
any other indulgence to, or release of any person now or hereafter obligated for
the payment of this Note shall not affect Maker's liability hereunder.

         10. MISCELLANEOUS. The provisions set forth in Section 7 of the
Purchase Agreement are incorporated herein by this reference to the maximum
extent applicable, with the Agreement therein referring instead to this Note.

                            [SIGNATURE PAGE FOLLOWS]

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         IN WITNESS WHEREOF, this Note has been duly executed as an instrument
under seal as of the date first set forth above.

                                      MAKER:

                                      Distributed Delivery Networks Corporation,
                                      a Delaware corporation

                                      By:    /s/ William K. Holmes
                                             -----------------------------------
                                      Name:  William K. Holmes
                                      Title: President and CEO

ATTEST:

By:    /s/ Gregory Leiser
       ----------------------------
Name:  Gregory Leiser
Title: Executive VP and CFO

                                       5<PAGE>

                                                                    EXHIBIT 4.1

                            THE OUTDOOR CHANNEL, INC.

                       1997 STOCK OPTION PLAN, AS AMENDED

         This 1997 STOCK OPTION PLAN (the "Plan") is hereby established by The
Outdoor Channel, Inc., a Nevada corporation (the "Company") and adopted by its
Board of Directors effective as of the 10th day of December 1997 (the "Effective
Date").

                                   ARTICLE 1
                              PURPOSES OF THE PLAN

         1.1 PURPOSES. The purposes of the Plan are (a) to enhance the Company's
ability to attract and retain the services of qualified employees, officers and
directors (including non-employee officers and directors), and consultants and
other service providers upon whose judgment, initiative and efforts the
successful conduct and development of the Company's business largely depends,
and (b) to provide additional incentives to such persons or entities to devote
their utmost effort and skill to the advancement and betterment of the Company,
by providing them an opportunity to participate `in the ownership of the Company
and thereby have an interest in the success and increased value of the Company.

                                   ARTICLE 2
                                   DEFINITIONS

         For purposes of this Plan, the following terms shall have the meanings
indicated:

         2.1 ADMINISTRATOR. "Administrator" means the Board or, if the Board
delegates responsibility for any matter to the Committee, the term Administrator
shall mean the Committee.

         2.2 AFFILIATED COMPANY. "Affiliated Company" means any "parent
corporation" or "subsidiary corporation" of the Company, whether now existing or
hereafter created or acquired, as those terms are defined in Sections 424(e) and
424(f) of the Code, respectively.

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

         2.4 CHANGE IN CONTROL. "Change in Control" shall mean (i) the
acquisition, directly or indirectly, by any person or group (within the meaning
of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended) of the
beneficial ownership of more than fifty percent (50%) of the outstanding
securities of the Company; (ii) a merger or consolidation in which the Company
is not the surviving entity, except for a transaction the principal purpose of
which is to change the state in which the Company is incorporated; (iii) the
sale, transfer or other disposition of all or substantially all of the assets of
the Company; (iv) a complete liquidation or dissolution of the Company; or (v)
any reverse merger in which the Company is the surviving entity but in which
securities possessing more than fifty percent (50%) of the total combined voting
power of the Company's outstanding securities are transferred to a person or
persons different from the persons holding those securities immediately prior to
such merger.

         2.5 CODE. "Code" means the Internal Revenue Code of 1986, as amended
from time to time.

         2.6 COMMITTEE. "Committee" means a committee of two or more members of
the Board appointed to administer the Plan, as set forth in Section 7.1 hereof.

         2.7 COMMON STOCK. "Common Stock" means the Common Stock, $.00l par
value of the Company, subject to adjustment pursuant to Section 4.2 hereof.

                                      -1-

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         2.8 DISABILITY. "Disability" means permanent and total disability as
defined in Section 22(e)(3) of the Code. The Administrator's determination of a
Disability or the absence thereof shall be conclusive and binding on all
interested parties.

         2.9 EFFECTIVE DATE. "Effective Date" means the date on which the Plan
is adopted by the Board, as set forth on the first page hereof.

         2.10 EXERCISE PRICE. "Exercise Price" means the purchase price per
share of Common Stock payable upon exercise of an Option.

         2.11 FAIR MARKET VALUE. "Fair Market Value" on any given date means the
value of one share of Common Stock, determined as follows:

                  (a) If the Common Stock is then listed or admitted to trading
on a Nasdaq market system or a stock exchange which reports closing sale prices,
the Fair Market Value shall be the closing sale price on the date of valuation
on such Nasdaq market system or principal stock exchange on which the Common
Stock is then listed or admitted to trading, or, if no closing sale price is
quoted on such day, then the Fair Market Value shall be the closing sale price
of the Common Stock on such Nasdaq market system or such exchange on the next
preceding day on which a closing sale price is quoted.

                  (b) If the Common Stock is not then listed or admitted to
trading on a Nasdaq market system or a stock exchange which reports closing sale
prices, the Fair Market Value shall be the average of the closing bid and asked
prices of the Common Stock in the over-the-counter market on the date of
valuation.

                  (c) If neither (a) nor (b) is applicable as of the date of
valuation, then the Fair Market Value shall be determined by the Administrator
in good faith using any reasonable method of evaluation, which determination
shall be conclusive and binding on all interested parties.

         2.12 INCENTIVE OPTION. "Incentive Option" means any Option designated
and qualified as an "incentive stock option" as defined in Section 422 of the
Code.

         2.13 INCENTIVE OPTION AGREEMENT. "Incentive Option Agreement" means an
Option Agreement with respect to an Incentive Option.

         2.14 NASD DEALER. "NASD Dealer" means a broker-dealer that is a member
of the National Association of Securities Dealers, Inc.

         2.15 NONQUALIFIED OPTION. "Nonqualified Option" means any Option that
is not an Incentive Option. To the extent that any Option designated as an
Incentive Option fails in whole or in part to qualify as an Incentive Option,
including, without limitation, for failure to meet the limitations applicable to
a 10% Shareholder or because it exceeds the annual limit provided for in Section
5.6 below, it shall to that extent constitute a Nonqualified Option.

         2.16 NONQUALIFIED OPTION AGREEMENT. "Nonqualified Option Agreement"
means an Option Agreement with respect to a Nonqualified Option.

         2.17 OPTION. "Option" means any option to purchase Common Stock granted
pursuant to the Plan.

         2.18 OPTION AGREEMENT. "Option Agreement" means the written agreement
entered into between the Company and the Optionee with respect to an Option
granted under the Plan.

         2.19 OPTIONEE. "Optionee" means a Participant who holds an Option.

         2.20 PARTICIPANT. "Participant" means an individual or entity who holds
an Option under the Plan.

                                      -2-

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         2.21 SERVICE PROVIDER. "Service Provider" means a consultant or other
person or entity who provides services to the Company or an Affiliated Company
and who the Administrator authorizes to become a Participant in the Plan.

         2.22 10% SHAREHOLDER. "10% Shareholder" means a person who, as of a
relevant date, owns or is deemed to own (by reason of the attribution rules
applicable under Section 424(d) of the Code) stock possessing more than 10 % of
the total combined voting power of all classes of stock of the Company or of an
Affiliated Company.

                                   ARTICLE 3
                                   ELIGIBILITY

         3.1 INCENTIVE OPTIONS. Officers and other key employees of the Company
or of an Affiliated Company (including members of the Board if they are
employees of the Company or of an Affiliated Company) are eligible to receive
Incentive Options under the Plan.

         3.2 NONQUALIFIED OPTIONS. Officers and other key employees of the
Company or of an Affiliated Company, members of the Board (whether or not
employed by the Company or an Affiliated Company), and Service Providers are
eligible to receive Nonqualified Options under the Plan.

                                   ARTICLE 4
                                   PLAN SHARES

         4.1 SHARES SUBJECT TO THE PLAN. A total of 3,199,625(1) shares of
Common Stock may be issued under the Plan, subject to adjustment as to the
number and kind of shares pursuant to Section 4.2 hereof. For purposes of this
limitation, in the event that (a) all or any portion of any Option granted or
offered under the Plan can no longer under any circumstances be exercised, or
(b) any shares of Common Stock are reacquired by the Company pursuant to an
Incentive Option Agreement or Nonqualified Option Agreement the shares of Common
Stock allocable to the unexercised portion of such Option, or the shares so
reacquired, shall again be available for grant or issuance under the Plan.

         4.2 CHANGES IN CAPITAL STRUCTURE. In the event that the outstanding
shares of Common Stock are hereafter increased or decreased or changed into or
exchanged for a different number or kind of shares or other securities of the
Company by reason of a recapitalization, stock split, combination of shares,
reclassification, stock dividend, or other change in the capital structure of
the Company, then appropriate adjustments shall be made by the Administrator to
the aggregate number and kind of shares subject to this Plan, and the number and
kind of shares and the price per share, subject to outstanding Option Agreements
in order to preserve, as nearly as practical, but not to increase, the benefits
to Participants.

                                   ARTICLE 5
                                     OPTIONS

         5.1 OPTION AGREEMENT. Each Option granted pursuant to this Plan shall
be evidenced by an Option Agreement which shall specify the number of shares
subject thereto, the Exercise Price per share, and whether the Option is an
Incentive Option or Nonqualified Option. As soon as is practical following the
grant of an Option, an Option Agreement shall be duly executed and delivered by

----------
(1) On September 8, 2004, Outdoor Channel Holdings, Inc., an Alaska corporation
and a predecessor of the registrant ("Holdings-Alaska"), acquired all of the
outstanding capital stock of The Outdoor Channel, Inc., a Nevada corporation
("TOC") in a merger involving Holdings-Alaska, TOC and a wholly owned subsidiary
of Holdings-Alaska (the "TOC Merger"). After the TOC Merger, Holdings-Alaska
merged with and into the registrant (the "Reincorporation"). This number
reflects the total number of shares of common stock issuable by Outdoor Channel
Holdings, Inc., a Delaware corporation, after giving effect to the assumption of
the outstanding options under the Plan in the TOC Merger at an exchange ratio of
0.65, and the subsequent Reincorporation and the 5 for 2 forward split effected
in connection therewith.

                                      -3-

<PAGE>

or on behalf of the Company to the Optionee to whom such Option was granted.
Each Option Agreement shall be in such form and contain such additional terms
and conditions, not inconsistent with the provisions of this Plan, as the
Administrator shall, from time to time, deem desirable, including, without
limitation, the imposition of any rights of first refusal and resale obligations
upon any shares of Common Stock acquired pursuant to an Option Agreement. Each
Option Agreement may be different from each other Option Agreement.

         5.2 EXERCISE PRICE. The Exercise Price per share of Common Stock
covered by each Option shall be determined by the Administrator, subject to the
following: (a) the Exercise Price of an Incentive Option shall not be less than
100% of Fair Market Value on the date the Incentive Option is granted, (b) the
Exercise Price of a Nonqualified Option shall not be less than 85 % of Fair
Market Value on the date the Nonqualified Option is granted, and (c) if the
person to whom an Incentive Option is granted is a 10% Shareholder on the date
of grant, the Exercise Price shall not be less than 110% of Fair Market Value on
the date the Option is granted.

         5.3 PAYMENT OF EXERCISE PRICE. Payment of the Exercise Price shall be
made upon exercise of an Option and may be made, in the discretion of the
Administrator, subject to any legal restrictions, by: (a) cash; (b) check; (c)
the surrender of shares of Common Stock owned by the Optionee that have been
held by the Optionee for at least six (6) months, which surrendered shares shall
be valued at Fair Market Value as of the date of such exercise; (d) the
Optionee's promissory note in a form and on terms acceptable to the
Administrator; (e) the cancellation of indebtedness of the Company to the
Optionee; (f) the waiver of compensation due or accrued to the Optionee for
services rendered; (g) provided that a public market for the Common Stock
exists, a "same day sale" commitment from the Optionee and an NASD Dealer
whereby the Optionee irrevocably elects to exercise the Option and to sell a
portion of the shares so purchased to pay for the Exercise Price and whereby the
NASD Dealer irrevocably commits upon receipt of such shares to forward the
Exercise Price directly to the Company; (h) provided that a public market for
the Common Stock exists, a "margin" commitment from the Optionee and an NASD
Dealer whereby the Optionee irrevocably elects to exercise the Option and to
pledge the shares so purchased to the NASD Dealer in a margin account as
security for a loan from the NASD Dealer in the amount of the Exercise Price,
and whereby the NASD Dealer irrevocably commits upon receipt of such shares to
forward the Exercise Price directly to the Company; or (i) any combination of
the foregoing methods of payment or any other consideration or method of payment
as shall be permitted by applicable corporate law.

         5.4 TERM AND TERMINATION OF OPTIONS. The term and termination of each
Option shall be as fixed by the Administrator, but no Option may be exercisable
more than ten (10) years after the date it is granted. An Incentive Option
granted to a person who is a 10% Shareholder on the date of grant shall not be
exercisable more than five (5) years after the date it is granted.

         5.5 VESTING AND EXERCISE OF OPTIONS. Each Option shall vest and be
exercisable in one or more installments at such time or times and subject to
such conditions, including without limitation the achievement of specified
performance goals or objectives, as shall be determined by the Administrator.

         5.6 ANNUAL LIMIT ON INCENTIVE OPTIONS. To the extent required for
"incentive stock option" treatment under Section 422 of the Code, the aggregate
Fair Market Value (determined as of the time of grant) of the Common Stock shall
not, with respect to which Incentive Options granted under this Plan and any
other plan of the Company or any Affiliated Company become exercisable for the
first time by an Optionee during any calendar year, exceed $100,000.

         5.7 NONTRANSFERABILITY OF OPTIONS. No Option shall be assignable or
transferable except by will or the laws of descent and distribution, except as
provided below, and during the life of the Optionee shall be exercisable only by
such Optionee; provided, however, that, in the discretion of the Administrator,
any Option may be assigned or transferred in any manner which an "incentive
stock option" is permitted to be assigned or transferred under the Code.
Nonqualified options may be transferable as determined by the Board.

         5.8 RIGHTS AS SHAREHOLDER. An Optionee or permitted transferee of an
Option shall have no rights or privileges as a shareholder with respect to any
shares covered by an Option until such Option has been duly exercised and
certificates representing shares purchased upon such exercise have been issued
to such person.

                                      -4-

<PAGE>

         5.9 NON-EMPLOYEE DIRECTORS. Each non-employee director of the Company
shall be granted a Nonqualified Option to purchase shares of Common Stock the
amount of which shall be determined by the Board of Directors upon his or her
commencement of service on the Board

                                   ARTICLE 6
                           ADMINISTRATION OF THE PLAN

         6.1 ADMINISTRATOR. Authority to control and manage the operation and
administration of the Plan shall be vested in the Board, which may delegate such
responsibilities in whole or in part to a committee consisting of two (2) or
more members of the Board (the "Committee"). Members of the Committee may be
appointed from time to time by, and shall serve at the pleasure of, the Board.
As used herein, the term "Administrator" means the Board or, with respect to any
matter as to which responsibility has been delegated to the Committee, the term
Administrator shall mean the Committee.

         6.2 POWERS OF THE ADMINISTRATOR. In addition to any other powers or
authority conferred upon the Administrator elsewhere in the Plan or by law, the
Administrator shall have full power and authority: (a) to determine the persons
to whom, and the time or times at which, Incentive Options or Nonqualified
Options shall be granted, the number of shares to be represented by each Option
and the consideration to be received by the Company upon the exercise thereof;
(b) to interpret the Plan; (c) to create, amend or rescind rules and regulations
relating to the Plan; (d) to determine the terms, conditions and restrictions
contained in, and the form of, Option Agreements; (e) to determine the identity
or capacity of any persons who may be entitled to exercise a Participant's
rights under any Option under the Plan; (f) to correct any defect or supply any
omission or reconcile any inconsistency in the Plan or in any Option Agreement;
(g) to accelerate the vesting of any Option; (h) to extend the exercise date of
any Option; (i) to provide for rights of first refusal and/or repurchase rights;
(j) to amend outstanding Option Agreements to provide for, among other things,
any change or modification which the Administrator could have provided for upon
the grant of an Option or in furtherance of the powers provided for herein; and
(k) to make all other determinations necessary or advisable for the
administration of the Plan, but only to the extent not contrary to the express
provisions of the Plan. Any action, decision, interpretation or determination
made in good faith by the Administrator in the exercise of its authority
conferred upon it under the Plan shall be final and binding on the Company and
all Participants.

         6.3 LIMITATION ON-LIABILITY. No employee of the Company or member of
the Board or Committee shall be subject to any liability with respect to duties
under the Plan unless the person acts fraudulently or in bad faith. To the
extent permitted by law, the Company shall indemnify each member of the Board or
Committee, and any employee of the Company with duties under the Plan, who was
or is a party, or is threatened to be made a party, to any threatened, pending
or completed proceeding, whether civil, criminal, administrative or
investigative, by reason of such person's conduct in the performance of duties
under the Plan.

                                   ARTICLE 7
                                CHANGE IN CONTROL

         7.1 CHANGE IN CONTROL. In order to preserve a Participant's rights in
the event of a Change in Control of the Company, (i) the time period relating to
the exercise or realization of all outstanding Options shall automatically
accelerate immediately prior to the consummation of such Change in Control and
(ii) with respect to Options, the Administrator in its discretion may, at any
time an Option is granted, or at any time thereafter, take one or more of the
following actions: (A) provide for the purchase of each Option for an amount of
cash or other property that could have been received upon the exercise of the
Option had the Option been currently exercisable, (B) adjust the terms of the
Options in a manner determined by the Administrator to reflect the Change in
Control, (C) cause the Options to be assumed, or new rights substituted
therefor, by another entity, through the continuance of the Plan and the
assumption of outstanding Options, or the substitution for such Options of new
options and new rights to purchase of comparable value covering shares of a
successor corporation, with appropriate adjustments as to the number and kind of
shares and Exercise Prices, in which event the Plan and such Options, or the new
options and rights to purchase substituted therefor, shall continue in the
manner and under the terms so provided or (D) make such other provision as the
Committee may consider equitable. If the Administrator does not take any of the
forgoing actions, all Options shall terminate upon the consummation of the

                                      -5-

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Change in Control and the Administrator shall cause written notice of the
proposed transaction to be given to all Participants not less than fifteen (15)
days prior to the anticipated effective date of the proposed transaction.

                                   ARTICLE 8
                      AMENDMENT AND TERMINATION OF THE PLAN

         8.1 AMENDMENTS. The Board may from time to time alter, amend, suspend
or terminate the Plan in such respects as the Board may deem advisable. No such
alteration, amendment, suspension or termination shall be made which shall
substantially affect or impair the rights of any Participant under an
outstanding Option Agreement without such Participant's consent. The Board may
alter or amend the Plan to comply with requirements under the Code relating to
Incentive Options or other types of options which give Optionee more favorable
tax treatment than that applicable to Options granted under this Plan as of the
date of its adoption. Upon any such alteration or amendment, any outstanding
Option granted hereunder may, if the Administrator so determines and if
permitted by applicable law, be subject to the more favorable tax treatment
afforded to an Optionee pursuant to such terms and conditions.

         8.2 PLAN TERMINATION. Unless the Plan shall theretofore have been
terminated, the Plan shall terminate on the tenth (10th) anniversary of the
Effective Date and no Options may be granted under the Plan thereafter, but
Option Agreements then outstanding shall continue in effect in accordance with
their respective terms.

                                   ARTICLE 9
                                 TAX WITHHOLDING

         9.1 WITHHOLDING. The Company shall have the power to withhold, or
require a Participant to remit to the Company, an amount sufficient to satisfy
any applicable Federal, state, and local tax withholding requirements with
respect to any Options exercised under the Plan. To the extent permissible under
applicable tax, securities and other laws, the Administrator may, in its sole
discretion and upon such terms and conditions as it may deem appropriate, permit
a Participant to satisfy his or her obligation to pay any such tax, in whole or
in part, up to an amount determined on the basis of the highest marginal tax
rate applicable to such Participant, by (a) directing the Company to apply
shares of Common Stock to which the Participant is entitled as a result of the
exercise of an Option or (b) delivering to the Company shares of Common Stock
owned by the Participant. The shares of Common Stock so applied or delivered in
satisfaction of the Participant's tax withholding obligation shall be valued at
their Fair Market Value as of the date of measurement of the amount of income
subject to withholding.

                                   ARTICLE 10
                                  MISCELLANEOUS

         10.1 BENEFITS NOT ALIENABLE. Other than as provided above, benefits
under the Plan may not be assigned or alienated, whether voluntarily or
involuntarily. Any unauthorized attempt .at assignment, transfer, pledge or
other disposition shall be without effect.

         10.2 NO ENLARGEMENT OF EMPLOYEE RIGHTS. This Plan is strictly a
voluntary undertaking on the part of the Company and shall not be deemed to
constitute a contract between the Company and any Participant to be
consideration for, or an inducement to, or a condition of, the employment of any
Participant. Nothing contained in the Plan shall be deemed to give the right to
any Participant to be retained as an employee of the Company or any Affiliated
Company or to interfere with the right of the Company or any Affiliated Company
to discharge any Participant at any time.

         10.3 APPLICATION OF FUNDS. The proceeds received by the Company from
the sale of Common Stock pursuant to Option Agreements, except as otherwise
provided herein, will be used for general corporate purposes.

                                      -6-

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