Document:

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                                                                   EXHIBIT 10.36

                           PRINCETON VIDEO IMAGE, INC.
                                15 PRINCESS ROAD
                         LAWRENCEVILLE, NEW JERSEY 08648

                                February 18, 2003

Presencia en Medios, S.A. de C.V.
Palmas #735-206
Mexico, DF 11000
MEXICO
Attn: Mr. Eduardo Sitt

      Re:   Reorganization Agreement dated as of December 28, 2000 by and among
            Presencia en Medios, S.A. de C.V., Eduardo Sitt, David Sitt, Roberto
            Sonabend, Presence in Media LLC, Virtual Advertisement LLC, PVI LA,
            LLC, Princeton Video Image, Inc. and Princeton Video Image Latin
            America, LLC, as amended by Amendment Agreement dated as of February
            4, 2001 (collectively, the "Agreement")

Dear Mr. Sitt:

      This will confirm the agreement of the parties regarding the above
referenced Agreement.

      Section 7.1(a) of the Agreement is hereby amended to read in its entirety
as follows:

                  (a) Board Representation. As used herein "Required Number of
                  Directors" shall mean a number of members of the PVI Board
                  determined as follows:

                  From and after the Closing
                  Date, if the number of shares
                  of PVI Common Stock held by
                  the Seller Group represents a           then the number of
                  percentage of all outstanding           Required Directors
                  PVI Common Stock that is                is
                  -----------------------------           ------------------

                  Greater than 10%                                 3
                  Greater than 3% but less than
                  or equal to 10%                                  1

                  provided that from and after the first date after the Closing
                  Date on which the number of shares of PVI Common Stock held by
                  the Seller Group is less than fifty percent (50%) of the
                  number of shares of PVI Common Stock held by the Seller Group
                  immediately following the Closing, the Required Number of
                  Directors shall be reduced to zero.

                                       1
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                  From and after the Closing Date, the Purchaser agrees to take
                  such action as may be necessary to (i) nominate and recommend
                  for election the Required Number of Directors designated by
                  the Seller; (ii) as long as the Required Number of Directors
                  is at least one (1), nominate as a director of each of (w) the
                  Corporation, (x) any entity of which the Corporation is a
                  Subsidiary (other than any entity of which the Purchaser is a
                  direct or indirect Subsidiary), (y) any entity which is a
                  Subsidiary of the Corporation and (z) any Subsidiary of the
                  Purchaser as to which a member of the PVI Board who is not a
                  full-time employee of the Purchaser is then serving as a
                  director which Subsidiary is actively undertaking business or
                  has conducted or proposes to conduct any debt or equity
                  financing other than with the Purchaser or any of its
                  Subsidiaries, one (1) individual designated by the Seller and
                  at any time when the Purchaser or any of its Subsidiaries owns
                  a majority of the voting securities of such entity cause the
                  election as a director of such designee at each annual meeting
                  of shareholders of such entity, provided that this subsection
                  (ii) of this Section 7.1(a) shall not apply to the board of
                  directors of the Corporation at any time when David Sitt or
                  Roberto Sonabend is a member of such board of directors; and
                  (iii) as long as the Required Number of Directors is at least
                  one (1), appoint to such committees of the PVI Board as the
                  Seller shall request and the nominating committee shall
                  approve, such approval not to be unreasonably withheld
                  (provided that such committees shall constitute not less than
                  one-half of the committees of the PVI Board and shall include
                  the nominating committee and the executive committee at any
                  time when such committees exist) one (1) of the members of the
                  PVI Board that was designated by the Seller. The initial
                  designees of the Seller to the PVI Board shall be Emilio
                  Romano, Jaime Serra Puche and Eduardo Sitt. The Purchaser or
                  its Subsidiary, as applicable, shall provide the Seller with
                  not less than 75 days' prior notice of any meeting at which
                  directors are to be elected. The Seller Shall give notice to
                  the Purchaser or its Subsidiary no later than 60 days prior to
                  such meeting of the persons designated by it as nominees for
                  election as directors. If the Seller fails to give notice to
                  the Purchaser or its Subsidiary as provided above, the
                  designees of the Seller then serving as directors shall be its
                  designees for re-election. In the event a designee of the
                  Seller is unwilling or unable to serve as a director of a
                  Subsidiary of the Purchaser or on the PVI Board or a committee
                  thereof, the Seller shall be entitled to designate a
                  replacement member as a director of such Subsidiary or to the
                  PVI Board or a committee thereof, as the case may be, which
                  the Purchaser agrees to recommend for election or appointment
                  at any applicable meeting of the PVI Board or shareholders of
                  the Purchaser or such Subsidiary. All members of the Seller
                  Group shall vote all shares over which they exercise voting
                  control in favor of the designees of the Seller. If the
                  shareholders of

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                  the Purchaser do not elect the designee(s) of the Seller as
                  director(s) of the Purchaser, the Purchaser shall take all
                  action required to increase the size of its Board of Directors
                  by the number of designees not elected and shall appoint such
                  designees to fill such newly-created directorships. The Seller
                  agrees that it may not designate an employee of the Purchaser
                  or any Subsidiary of the Purchaser for election to the board
                  of directors of a Subsidiary of the Purchaser, the PVI Board,
                  or any committee thereof, unless such board of directors or
                  the PVI Board already contains an employee of the Purchaser
                  other than the Chairman and the Chief Executive Officer of the
                  Purchaser; provided, however, that the foregoing restriction
                  shall not apply to a designation by Seller of David Sitt
                  and/or Roberto Sonabend for election to the board of directors
                  of a Subsidiary of the Purchaser, the PVI Board, or any
                  committee thereof at any time at which Seller is entitled to
                  make such a designation. So long as the Required Number of
                  Directors is at least one (1), a designee of the Seller shall
                  be entitled to receive prompt notice of, and to attend,
                  meetings of all committees of the PVI Board of which a
                  designee of the Seller is not a member.

      The authorized signatures below will confirm the amendment to Section
7.1(a) of the Agreement as set forth above. Your attention to this matter is
greatly appreciated.

                                        Sincerely,

                                        /s/ JAMES GREEN

                                        James Green
                                        President and Chief Operating Officer

ACCEPTED AND AGREED TO:

Presencia en Medios, S.A. de C.V.:

By: /s/ DAVID SITT (Power of attorney)
    -------------------------------------------------
Name: Eduardo Sitt
      -----------------------------------------------
Title: President
       ----------------------------------------------
Date:
      -----------------------------------------------

Presence in Media LLC:

By: /s/ DAVID SITT
    -------------------------------------------------
Name: David Sitt
      -----------------------------------------------
Title:
       ----------------------------------------------
Date:
      -----------------------------------------------

                                       3
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PVI LA, LLC:

By: /s/ JAMES GREEN
    -------------------------------------------------
Name: James Green
      -----------------------------------------------
Title:  C.O.O.
       ----------------------------------------------
Date: 18-Feb-2003
      -----------------------------------------------

Princeton Video Image Latin America, LLC:

By: /s/ JAMES GREEN
    -------------------------------------------------
Name: James Green
      -----------------------------------------------
Title:  C.O.O.
       ----------------------------------------------
Date: 18-Feb-2003
      -----------------------------------------------

DESIGNATED PARTIES:

/s/ DAVID SITT (Power of Attorney)
-----------------------------------------------------
Eduardo Sitt

/s/ DAVID SITT
-----------------------------------------------------
David Sitt

/s/ ROBERTO SONABEND
-----------------------------------------------------
Roberto Sonabend

CONSENTED TO:

PVI Holding, LLC:

By: /s/ WILT HILDENBRAND
    -------------------------------------------------

Name: Wilt Hildenbrand
      -----------------------------------------------
Title:
       ----------------------------------------------
Date:
      -----------------------------------------------

                                       4<PAGE>
                                                                   EXHIBIT 10.37

                           PRINCETON VIDEO IMAGE, INC.

                         AMENDED 1993 STOCK OPTION PLAN

      1. Purposes of the Plan. The purposes of this Stock Option Plan are to
attract and retain the best available personnel for positions of substantial
responsibility, to provide additional incentive to Employees and Consultants of
the Company and its Subsidiaries and to promote the success of the Company's
business. Options granted under the Plan may be Incentive Stock Options (as
defined under Section 422 of the Code) or Non-Statutory Stock Options, as
determined by the Administrator at the time of grant of an option and subject to
the applicable provisions of Section 422 of the Code, as amended, and the
regulations promulgated thereunder.

      2. Certain Definitions. As used herein, the following definitions shall
apply:

            (a) "Administrator" means the Board or any of its Committees
appointed pursuant to Section 4 of the Plan.

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

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

            (d) "Committee" means the Committee appointed by the Board in
accordance with paragraph (a) of Section 4 of the Plan.

            (e) "Common Stock" means the Common Stock of the Company.

            (f) "Company" means Princeton Video Image, Inc., a New Jersey
corporation.

            (g) "Consultant" means any person, including an advisor, who is
engaged by the Company or any Parent or Subsidiary to render services and is
compensated for such services, and any director of the Company whether
compensated for such services or not provided that if and in the event the
Company registers any class of any equity security pursuant to the Exchange Act,
the term Consultant shall thereafter not include directors who are not
compensated for their services or are paid only a director's fee by the Company.

            (h) "Continuous Status as an Employee" means the absence of any
interruption or termination of the employment relationship by the Company or any

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Subsidiary. Continuous Status as an Employee shall not be considered interrupted
in the case of: (i) sick leave; (ii) military leave; (iii) any other leave of
absence approved by the Board, provided that such leave is for a period of not
more than ninety (90) days, unless reemployment upon the expiration of such
leave is guaranteed by contract or statute, or unless provided otherwise
pursuant to Company policy adopted from time to time; or (iv) in the case of
transfers between locations of the Company or between the Company, its
Subsidiaries or its successor.

            (i) "Date of Grant" means the date on which an Option is granted
under this Plan pursuant to Section 13 of the Plan.

            (j) "Employee" means any person, including officers and directors,
employed by the Company or any Parent or Subsidiary of the Company. The payment
of a director's fee by the Company shall not be sufficient to constitute
"employment" by the Company.

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

            (l) "Fair Market Value" means, as of any date, the value of Common
Stock determined as follows:

                  (i) If the Common Stock 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 ("NASDAQ") 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 for the last market trading day prior to such date as
reported in the Wall Street Journal or such other source as the Administrator
deems reliable or;

                  (ii) If the Common Stock is quoted on the NASDAQ System (but
not on the National Market System thereof) or regularly quoted by a recognized
securities dealer but selling prices are not reported, its Fair Market Value
shall be the mean between the high and low asked prices for the Common Stock for
the last market trading day prior to such date or;

                  (iii) In the absence of an established market for the Common
Stock, the Fair Market Value thereof shall be determined in good faith by the
Administrator.

            (m) "Incentive Stock Option" means an Option intended to qualify as
an incentive stock option within the meaning of Section 422 of the Code.

            (n) "Non-Statutory Stock Option" means an Option not intended to
qualify as an Incentive Stock Option.

                                     - 2 -
<PAGE>

            (o) "Option" means a stock option granted pursuant to the Plan.

            (p) "Option Agreement" shall mean the agreement which must be
entered into between the Optionee and the Company upon the grant of an Option by
the Company to the Optionee pursuant to Section 17 of the Plan.

            (q) "Optioned Stock" means the Common Stock subject to an Option.

            (r) "Optionee" means a person who receives an Option.

            (s) "Parent" means a "parent corporation", whether now or hereafter
existing, as defined in Section 424(e) of the Code.

            (t) "Plan" means this 1993 Stock Option Plan.

            (u) "Share" means a share of the Common Stock, as adjusted in
accordance with Section 12 of the Plan.

            (v) "Subsidiary" means a "subsidiary corporation", whether now or
hereafter existing, as defined in Section 424(f) of the Code.

      3. Stock Subject to the Plan. Subject to the provisions of Section 12 of
the Plan, the maximum aggregate number of shares which may be optioned and sold
under the Plan is 7,00,000 shares of Common Stock. The shares may be authorized,
but unissued, or reacquired Common Stock.

            If an Option should expire or become unexercisable for any reason
without having been exercised in full, the unpurchased Shares which were subject
thereto shall, unless the Plan shall have been terminated, become available for
future grant under the Plan.

      4. Administration of the Plan.

            (a) Procedure.

                  (i) Administration With Respect to Directors and Officers.
With respect to grants of Options to Employees or Consultants who are also
officers or directors of the Company, the Plan shall be administered by (A) the
Board or (B) a Committee designated by the Board to administer the Plan, which
Committee shall be constituted in such a manner (A) as to permit transactions
under the Plan to qualify for the exemption from Section 16(b) of the Exchange
Act pursuant to Rule 16b-3 promulgated thereunder ("Rule 16b-3") and (B) to
satisfy the legal requirements relating to the administration of incentive stock
option plans, of New Jersey corporate and

                                     - 3 -
<PAGE>

securities laws and of the Code (the "Applicable Laws"). Once appointed, such
Committee shall continue to serve in its designated capacity until otherwise
directed by the Board. From time to time the Board may increase the size of the
Committee and appoint additional members thereof, remove members (with or
without cause) and appoint new members in substitution therefor, fill vacancies,
however caused, and remove all members of the Committee and thereafter directly
administer the Plan, all to the extent permitted by the Applicable Laws and Rule
16b-3.

                  (ii) Multiple Administrative Bodies. If permitted by Rule
16b-3, the Plan may be administered by different bodies with respect to
directors, non-director officers and Employees and Consultants who are neither
directors nor officers.

                  (iii) Administration With Respect to Consultants and Other
Employees. With respect to grants of Options to Employees or Consultants who are
neither directors nor officers of the Company, the Plan shall be administered by
(A) the Board or (B) a Committee designated by the Board, which Committee shall
be constituted in such a manner as to satisfy the Applicable Laws. Once
appointed, such Committee shall continue to serve in its designated capacity
until otherwise directed by the Board. From time to time the Board may increase
the size of the Committee and appoint additional members thereof, remove members
(with or without cause) and appoint new members in substitution therefor, fill
vacancies, however caused, and remove all members of the Committee and
thereafter directly administer the Plan, all to the extent permitted by the
Applicable Laws.

                  (iv) Formula Awards to Directors.

                        (A) On July 1 of each year during the term of this Plan,
each person who is then serving as a director of the Company shall be granted a
Non-Statutory Stock Option to purchase 10,000 Shares. Each such Option shall
vest and become exercisable in equal increments of 1/12 of the Shares on the
first day of each month thereafter, provided that the holder is then serving as
a director of the Company

                        (B) Commencing July 1, 2001, on the date of a director's
first election or appointment to the Board, such director shall be granted a
Non-Statutory Stock Option to purchase a number of Shares equal to the product
of (i) 10,000 and (ii) a fraction the numerator of which is the number of
calendar months between the date of such election or appointment and the
following July 1 (with a fractional portion of a calendar month being treated as
a calendar month if it contains 15 days or more) and the denominator of which is
12. Each such Option shall vest and become exercisable on the first day of each
month thereafter, provided that the holder is then serving as a director of the
Company, in increments equal to the quotient obtained by dividing the number of
Shares of Optioned Stock by the number of calendar months described in the
preceding sentence.

                                     - 4 -
<PAGE>

                  (C) A director who is first elected or appointed to the Board
after July 1, 2000, but before July 1, 2001 shall be granted on July 1, 2001, a
Non-Statutory Stock Option to purchase a number of Shares equal to the product
of (i) 10,000 and (ii) a fraction the numerator of which is the number of
calendar months between the date of such election or appointment and the
following July 1 (with a fractional portion of a calendar month being treated as
a calendar month if it contains 15 days or more) and the denominator of which is
12. Each such Option shall vest and become exercisable in full on July 1, 2001,
provided that the holder is then serving as a director of the Company.

                  (D) Options granted pursuant to this Section 4(a)(iv) shall
have a per share exercise price equal to the Fair Market Value per share on the
Date of Grant and shall, expire ten years from the Date of Grant or on such
earlier date as is provided in Section 7 hereof. Once an Option granted pursuant
to this Section, or any portion thereof, has become exercisable, it shall remain
exercisable regardless of whether or not the director holding the Option later
ceases to be a director of the Company.

            (b) Powers of the Administrator. Subject to the provisions of the
Plan and in the case of a Committee, the specific duties delegated by the Board
to such Committee, the Administrator shall have the authority, in its
discretion:

                  (i) to determine the Fair Market Value of the Common Stock, in
accordance with Section 2(l) of the Plan;

                  (ii) to select the Consultants and Employees to whom Options
may from time to time be granted hereunder;

                  (iii) to determine whether and to what extent Options are
granted hereunder;

                  (iv) to determine the number of shares of Common Stock to be
covered by each such Option granted hereunder;

                  (v) to approve forms of agreement for use under the Plan;

                  (vi) to determine the terms and conditions, not inconsistent
with the terms of the Plan, of any Option granted hereunder (including, but not
limited to, the share price and any restriction or limitation or waiver of
forfeiture restrictions regarding any Option and/or the shares of Common Stock
relating thereto, based in each case on such factors as the Administrator shall
determine, in its sole discretion);

                  (vii) to determine whether and under what circumstances an
Option may be settled in cash under subsection 9(f) instead of Common Stock;

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<PAGE>

                  (viii) to determine whether, to what extent and under what
circumstances Common Stock and other amounts payable with respect to an Option
under this Plan shall be deferred either automatically or at the election of the
participant (including providing for and determining the amount, if any, of any
deemed earnings on any deferred amount during any deferral period); and

                  (ix) to reduce the exercise price of any Option to the then
current Fair Market Value if the Fair Market Value of the Common Stock covered
by such Option shall have declined since the date the Option was granted.

            (c) Effect of Committee's Decision. All decisions, determinations
and interpretations of the Administrator shall be final and binding on all
Optionees and any other holders of any Options.

      5. Eligibility.

            (a) Non-Statutory Stock Options may be granted to Employees and
Consultants and directors and officers who are not Employees or Consultants.
Incentive Stock Options may be granted only to Employees. An Employee or
Consultant who has been granted an Option may, if he is otherwise eligible, be
granted an additional Option or Options.

            (b) Each Option shall be designated in the Option Agreement as
either an Incentive Stock Option or a Non-Statutory Stock Option. However,
notwithstanding such designations, to the extent that the aggregate Fair Market
Value of the Shares with respect to which Options designated as Incentive Stock
Options are exercisable for the first time by any optionee during any calendar
year (under all plans of the Company or any Parent or Subsidiary) exceeds
$100,000, such excess Options shall be treated as Non-Statutory Stock Options.

            (c) For purposes of Section 5(b), Incentive Stock Options shall be
taken into account in the order in which they were granted, and the Fair Market
Value of the Shares shall be determined as of the time the Option with respect
to such Shares is granted.

            (d) The Plan shall not confer upon any Optionee any right with
respect to continuation of employment or consulting relationship with the
Company, nor shall it interfere in any way with his right or the Company's right
to terminate his employment or consulting relationship at any time, with or
without cause.

      6. Term of Plan. The Plan shall become effective upon the earlier to occur
of its adoption by the Board or its approval by the shareholders of the Company
as described in Section 18 of the Plan. It shall continue in effect for a term
of ten (10) years unless sooner terminated under Section 14 of the Plan.

                                     - 6 -
<PAGE>

      7. Term of Option. The term of each Option shall be the term stated in the
Option Agreement; provided, however, that in the case of an Incentive Stock
Option, the term shall be no more than ten (10) years from the date of grant
thereof or such shorter term as may be provided in the Option Agreement.
However, in the case of an Option granted to an Optionee who, at the time the
Option is granted, owns stock representing more than ten percent (10%) of the
voting power of all classes of stock of the Company or any Parent or Subsidiary,
the term of the Option shall be five (5) years from the date of grant thereof or
such shorter term as may be provided in the Option Agreement.

      8. Option Exercise Price and Consideration.

            (a) The per share exercise price for the Shares to be issued
pursuant to exercise of an Option shall be such price as is determined by the
Board, but shall be subject to the following: In the case of an Incentive Stock
Option (i) granted to an Employee who, at the time of the grant of such
Incentive Stock Option, owns stock representing more than ten percent (10%) of
the voting power of all classes of stock of the Company or any Parent or
Subsidiary, the per Share exercise price shall be no less than 110% of the Fair
Market Value per Share on the date of grant; (ii) granted to any Employee, not
described in Section 8(a)(i), the per Share exercise price shall be no less than
100% of the Fair Market Value per Share on the date of grant.

            (b) The consideration to be paid for the Shares to be issued upon
exercise of an Option, including the method of payment, shall be determined by
the Administrator (and, in the case of an Incentive Stock Option, shall be
determined at the time of grant) and may consist entirely of (1) cash, (2)
check, (3) promissory note, (4) other Shares which (x) in the case of Shares
acquired upon exercise of an Option either have been owned by the Optionee for
more than six months on the date of surrender or were not acquired, directly or
indirectly, from the Company, and (y) have a Fair Market Value on the date of
surrender equal to the aggregate exercise price of the Shares as to which said
Option shall be exercised, (5) authorization to the Company to retain from the
total number of Shares as to which the Option is exercised that number of Shares
having a Fair Market Value on the date of exercise equal to the exercise price
for the total number of Shares as to which the Option is exercised, (6) delivery
of a properly executed exercise notice together with irrevocable instructions to
a broker to promptly deliver to the Company the amount of sale or loan proceeds
required to pay the exercise price, (7) delivery of an irrevocable subscription
agreement for the Shares which irrevocably obligates the option holder to take
and pay for the Shares not more than twelve months after the date of delivery of
the subscription agreement, (8) any combination of the foregoing methods of
payment, or (9) such other consideration and method of payment for the issuance
of Shares to the extent permitted under Applicable Laws. In making its
determination as to the type of consideration to accept, the Board shall
consider if acceptance of such consideration may be reasonably expected to
benefit the Company.

      9. Exercise of Option.

                                     - 7 -
<PAGE>

            (a) Procedure for Exercise; Rights as a Shareholder. Any Option
granted hereunder shall be exercisable at such times and under such conditions
as determined by the Board and set forth in the Option Agreement, including
performance criteria with respect to the Company and/or the Optionee, and as
shall be permissible under the terms of the Plan. An Option may not be exercised
for a fraction of a Share.

                  An Option shall be deemed to be exercised when written notice
of such exercise has been given to the Company in accordance with the terms of
the Option by the person entitled to exercise the Option and full payment for
the Shares with respect to which the Option is exercised has been received by
the Company. Full payment may, as authorized by the Board, consist of any
consideration and method of payment allowable under Section 8(b) of the Plan.
Until the issuance (as evidenced by the appropriate entry on the books of the
Company or of a duly authorized transfer agent of the Company) of the stock
certificate evidencing such Shares, no right to vote or receive dividends or any
other rights as a shareholder shall exist with respect to the Optioned Stock,
notwithstanding the exercise of the Option. The Company shall issue (or cause to
be issued) such stock certificate promptly upon exercise of the Option. No
adjustment will be made for a dividend or other right for which the record date
is prior to the date the stock certificate is issued.

                  Exercise of an Option in any manner shall result in a decrease
in the number of Shares which thereafter may be available, both for purposes of
the Plan and for sale under the Option, by the number of Shares as to which the
Option is exercised.

            (b) Termination of Employment. In the event of termination of an
Optionee's consulting relationship or Continuous Status as an Employee with the
Company (as the case may be), such Optionee may, but only within ninety (90)
days (or such other period of time as is determined by the Board, with such
determination in the case of an Incentive Stock Option being made at the time of
grant of the Option and not exceeding ninety (90) days) after the date of such
termination (but in no event later than the expiration date of the term of such
Option as set forth in the Option Agreement), exercise his Option to the extent
that Optionee was entitled to exercise it at the date of such termination. To
the extent that Optionee was not entitled to exercise the Option at the date of
such termination, or if Optionee does not exercise such Option to the extent so
entitled within the time specified herein, the Option shall terminate.

            (c) Disability of Optionee. Notwithstanding the provisions of
Section 9(b) above, in the event of termination of an Optionee's consulting
relationship or Continuous Status as an Employee as a result of his total and
permanent disability (as defined in Section 22(e)(3) of the Code), Optionee may,
but only within twelve (12) months from the date of such termination (but in no
event later than the expiration date of the term of such Option as set forth in
the Option Agreement), exercise the Option to the extent otherwise entitled to
exercise it at the date of such termination. To the extent that Optionee was not
entitled to exercise the Option at the date of termination, or if Optionee

                                     - 8 -
<PAGE>

does not exercise such Option to the extent so entitled within the time
specified herein, the Option shall terminate.

            (d) Death of Optionee. In the event of the death of an Optionee, the
Option may be exercised, at any time within twelve (12) months following the
date of death (but in no event later than the expiration date of the term of
such Option as set forth in the Option Agreement), by the Optionee's estate or
by a person who acquired the right to exercise the Option by bequest or
inheritance, but only to the extent the Optionee was entitled to exercise the
Option at the date of death. To the extent that Optionee was not entitled to
exercise the Option at the date of termination, or if Optionee does not exercise
such Option to the extent so entitled within the time specified herein, the
Option shall terminate.

            (e) Rule 16b-3. Options granted to persons subject to Section 16(b)
of the Exchange Act must comply with Rule 16b-3 and shall contain such
additional conditions or restrictions as may be required thereunder to qualify
for the maximum exemption from Section 16 of the Exchange Act with respect to
Plan transactions. Shares acquired pursuant to exercise of an Option by any
person who is subject to Section 16(b) of the Exchange Act may not be sold or
otherwise disposed of for a period of six (6) months following the Date of
Grant.

            (f) Buyout Provisions. The Administrator may at any time offer to
buy out for a payment in cash or Shares an Option previously granted, based on
such terms and conditions as the Administrator shall establish and communicate
to the Optionee at the time that such offer is made.

      10. Non-Transferability of Options. The Option may not be sold, pledged,
assigned, hypothecated, transferred, or disposed of in any manner other than by
will or by the laws of descent or distribution and may be exercised, during the
lifetime of the Optionee, only by the Optionee.

      11. Stock Withholding to Satisfy Withholding Tax Obligations. At the
discretion of the Administrator, Optionees may satisfy withholding obligations
as provided in this paragraph. When an Optionee incurs tax liability in
connection with an Option, which tax liability is subject to tax withholding
under applicable tax laws, and the Optionee is obligated to pay the Company an
amount required to be withheld under applicable tax laws, the Optionee may
satisfy the withholding tax obligation by electing to have the Company withhold
from the Shares to be issued upon exercise of the Option, if any, that number of
Shares having a Fair Market Value equal to the amount required to be withheld.
The Fair Market Value of the Shares to be withheld shall be determined on the
date that the amount of tax to be withheld is to be determined (the "Tax Date").

      All elections by an Optionee to have Shares withheld for this purpose
shall be made in writing in a form acceptable to the Administrator and shall be
subject to the following restrictions:

                                     - 9 -
<PAGE>

            (a) the election must be made on or prior to the applicable Tax
Date;

            (b) once made, the election shall be irrevocable as to the
particular Shares of the Option as to which the election is made;

            (c) all elections shall be subject to the consent or disapproval of
the Administrator; and

            (d) if the Optionee is subject to Rule 16b-3, the election must
comply with the applicable provisions of Rule 16b-3 and shall be subject to such
additional conditions or restrictions as may be required thereunder to qualify
for the maximum exemption from Section 16 of the Exchange Act with respect to
Plan transactions.

      In the event the election to have Shares withheld is made by an Optionee
and the Tax Date is deferred under Section 83 of the Code because no election is
filed under Section 83(b) of the Code, the Optionee shall receive the full
number of Shares with respect to which the Option is exercised but such Optionee
shall be unconditionally obligated to tender back to the Company the proper
number of Shares on the Tax Date.

      12. Adjustments Upon Changes in Capitalization or Merger. Subject to any
required action by the shareholders of the Company, the number of shares of
Common Stock covered by each outstanding Option, and the number of shares of
Common Stock which have been authorized for issuance under the Plan but as to
which no Options have yet been granted or which have been returned to the Plan
upon cancellation or expiration of an Option, as well as the price per share of
Common Stock covered by each such outstanding Option, shall be proportionately
adjusted for any increase or decrease in the number of issued shares of Common
Stock resulting from a stock split, reverse stock split, stock dividend,
combination or reclassification of the Common Stock, or any other increase or
decrease in the number of issued shares of Common Stock effected without receipt
of consideration by the Company; provided, however, that conversion of any
convertible securities of the Company shall not be deemed to have been "effected
without receipt of consideration." Such adjustment shall be made by the Board,
whose determination in that respect shall be final, binding and conclusive.
Except as expressly provided herein, no issuance by the Company of shares of
stock of any class, or securities convertible into shares of stock of any class,
shall affect, and no adjustment by reason thereof shall be made with respect to,
the number or price of shares of Common Stock subject to an Option.

      In the event of the proposed dissolution or liquidation of the Company,
the Board shall notify the Optionee at least fifteen (15) days prior to such
proposed action. To the extent it has not been previously exercised, the Option
will terminate immediately prior to the consummation of such proposed action. In
the event of a merger of the Company with or into another corporation, the
Option shall be assumed or an equivalent option shall be substituted by such
successor corporation or a Parent or Subsidiary of such

                                     - 10 -
<PAGE>

successor corporation. In the event that such successor corporation does not
agree to assume the Option or to substitute an equivalent option, the Board
shall, in lieu of such assumption or substitution, provide for the Optionee to
have the right to exercise the Option as to all of the Optioned Stock, including
Shares as to which the Option would not otherwise be exercisable. If the Board
makes an Option fully exercisable in lieu of assumption or substitution in the
event of a merger, the Board shall notify the Optionee that the Option shall be
fully exercisable for a period of fifteen (15) days from the date of such
notice, and the Option will terminate upon the expiration of such period. For
the purposes of this paragraph, the Option shall be considered assumed if,
following the merger, the Option or right confers the right to purchase, for
each Share of stock subject to the Option immediately prior to the merger, the
consideration (whether stock, cash, or other securities or property) received in
the merger by holders of Common Stock for each Share held on the effective date
of the transaction (and if holders were offered a choice of consideration, the
type of consideration chosen by the holders of a majority of the outstanding
Shares); provided, however, that if such consideration received in the merger
was not solely common stock of the successor corporation or its Parent, the
Board may, with the consent of the successor corporation and the participant,
provide for the consideration to be received upon the exercise of the Option,
for each Share of stock subject to the Option, to be solely common stock of the
successor corporation or its Parent equal in Fair Market Value to the per share
consideration received by holders of Common Stock in the merger or sale of
assets.

      13. Time of Granting Options. The date of grant of an Option shall, for
all purposes, be the date on which the Administrator makes the determination
granting such Option, or such other date as is determined by the Board. Notice
of the determination shall be given to each person to whom an Option is so
granted within a reasonable time after the date of such grant.

      14. Amendment and Termination of the Plan.

            (a) Amendment and Termination. The Board may at any time amend,
alter, suspend or discontinue the Plan, but no amendment, alteration, suspension
or discontinuation shall be made which would impair the rights of any Optionee
under any grant theretofore made, without Optionee's consent. In addition, to
the extent necessary and desirable to comply with Rule 16b-3 under the Exchange
Act or with Section 422 of the Code (or any other applicable law or regulation,
including the requirements of the NASD or an established stock exchange), the
Company shall obtain shareholder approval of any Plan amendment in such a manner
and to such a degree as required.

            (b) Effect of Amendment or Termination. Any such amendment or
termination of the Plan shall not affect Options already granted and such
Options shall remain in full force and effect as if this Plan had not been
amended or terminated, unless mutually agreed otherwise between the Optionee and
the Board, which agreement must be in writing and signed by the Optionee and the
Company.

                                     - 11 -
<PAGE>

      15. Conditions Upon Issuance of Shares. Shares 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 Exchange Act, the rules and regulations promulgated
thereunder, and the requirements of any stock exchange upon which the Shares may
then be listed, and shall be further subject to the approval of counsel for the
Company with respect to such compliance. As a condition to the exercise of an
Option, the Company may require the person exercising such Option to represent
and warrant at the time of any such exercise that the Shares are being purchased
only for investment and without any present intention to sell or distribute such
Shares if, in the opinion of counsel for the Company, such a representation is
required by any of the aforementioned relevant provisions of law.

      16. Reservation of Shares. The Company, during the term of this Plan, will
at all times reserve and keep available such number of Shares as shall be
sufficient to satisfy the requirements of the Plan.

            The inability of the Company to obtain authority from any regulatory
body having jurisdiction, which authority is deemed by the Company's counsel to
be necessary to the lawful issuance and sale of any Shares hereunder, shall
relieve the Company of any liability in respect of the failure to issue or sell
such Shares as to which such requisite authority shall not have been obtained.

      17. Agreements. Options shall be evidenced by written agreements in such
form as the Board shall approve from time to time.

      18. Shareholder Approval. Continuance of the Plan shall be subject to
approval by the shareholders of the Company within twelve (12) months before or
after the date the Plan is adopted. Such shareholder approval shall be obtained
in the degree and manner required under applicable state and federal law.

      19. Information to Optionees. The Company shall provide to each Optionee,
during the period for which such Optionee has one or more Options outstanding,
copies of all annual reports and other information which are provided to all
shareholders of the Company. The Company shall not be required to provide such
information if the issuance of Options under the Plan is limited to key
employees whose duties in connection with the Company assure their access to
equivalent information.

                                    * * * * *

As amended through December 19, 2002

                                     - 12 -

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