Document:

EXHIBIT 10.6

                       GUARANTOR INDEMNIFICATION AGREEMENT

            This Guarantor Indemnification Agreement ("Agreement") dated as of
December 20, 2000, is made by and among TYCO INTERNATIONAL GROUP S.A. (the
"Guarantor"), a company incorporated under the laws of Luxembourg; FiberCore,
Inc. (the "Borrower"), a company incorporated under the laws of Nevada; and the
Managing Shareholders, as defined herein.

                                   WITNESSETH

            WHEREAS, the Borrower wishes to obtain a revolving line of credit in
the maximum principal amount of $10,000,000 (the "Revolving Credit Loan") from
Fleet National Bank, a national banking association (the "Bank") pursuant to the
terms of Loan Agreement dated December 20, 2000 (the "Credit Agreement"); and

            WHEREAS, the Guarantor is an affiliate of TYCO INTERNATIONAL LTD.
("Tyco"), a company organized under the laws of Bermuda, which currently
controls approximately 21.69% of the Borrower's common stock; and

            WHEREAS, the Bank requires, as a condition of making the Revolving
Credit Loan, that a financially responsible party guarantee all indebtedness and
other obligations owing by the Borrower to the Bank with respect to the
Revolving Credit Loan pursuant to the Credit Agreement; and

            WHEREAS the Guarantor is willing to guarantee the Revolving Credit
Loan on the terms set forth in the form of guaranty attached hereto as Exhibit A
(the "Guaranty") provided that, in consideration of providing the Guaranty, the
Guarantor is granted the rights and remedies set forth in this Agreement; and

            WHEREAS, in order to induce the Guarantor to guarantee the Revolving
Credit Loan, the Borrower and the Managing Shareholders are willing to grant the
Guarantor the rights and remedies, and to undertake the obligations, set forth
in this Agreement.

<PAGE>

            NOW, THEREFORE, in consideration of the premises and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, that parties hereto agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

            As used in this agreement, the following terms shall have the
meanings specified below unless the context otherwise requires. All other
capitalized terms used in this Agreement that are defined in the Credit
Agreement or the Guaranty (except as herein otherwise expressly provided or
unless the context otherwise requires) shall have the meanings assigned to such
terms in the Credit Agreement or in the Guaranty as in force on the Effective
Date.

            1.1 Applicable Percentage. The percentage specified in Section
2.2(b) or Section 2.3(b), as applicable.

            1.2 Applicable Rate: A floating annual rate of interest equal to
One-Month LIBOR, as in effect from time to time, plus (a) so long as no Event of
Default has occurred and is continuing, 450 basis points or (b) upon the
occurrence and during the continuation of an Event of Default, 850 basis points.
The Applicable Rate shall be applied on the basis of a 360-day year for the
actual number of days an amount remains outstanding hereunder. Interest shall be
compounded daily until it has been paid in full.

            1.3 Business Day: Each day other than Saturday, Sunday, or any other
day on which banking institutions are authorized or required by law, executive
order or governmental decree to be closed in Luxembourg, New York or
Massachusetts.

            1.4 Common Stock: Newly issued shares of the Borrower's common
stock, par value $.001 per share, which are validly issued, free and clear of
all liens, claims, encumbrances, preemptive rights and other restrictions, other
than restrictions imposed by applicable securities laws.

            1.5 Due Date: Each January 1, April 1, July 1 and October 1 that
occurs on or after the Effective Date and while the Guaranty remains in effect;
provided, however, that if a given Due Date is scheduled to occur on a day that
is not a Business Day, such Due Date shall occur on the next succeeding Business
Day.

            1.6 Effective Date: As defined in Section 9.1.

            1.7 Expenses: All present and future expenses reasonably incurred by
or on behalf of the Guarantor in connection with this Agreement or the Guaranty
and any amendment, supplement or other modification or waiver related hereto, or
thereto, whether incurred heretofore or hereafter, which expenses shall include,
without limitation, reasonable attorneys' fees, disbursements and expenses; all
costs and expenses incurred by the Guarantor in opening bank accounts and
receiving and transferring funds; and reasonable fees and expenses of
accountants, appraisers or other experts or advisors retained by the Guarantor.

            1.8 Managing Shareholders: Mohd A. Aslami, Charles De Luca, Steven
Phillips and each other officer or director of the Borrower who becomes a party
to this Agreement pursuant to Section 3.8.

            1.9 Material Adverse Change: A material adverse change in the
business, prospects, operations, assets, liabilities or condition (financial or
otherwise) of the Borrower and the Subsidiaries, taken as a whole.

            1.10 Material Adverse Effect: Either (i) a material adverse effect
on the business of the Borrower and the Subsidiaries, taken as a whole, (ii) a
material adverse effect on the Borrower's ability to perform its obligations
under this Agreement, the Credit Agreement or any of the Loan Documents to which
it is a party, or (iii) an event or development that, in the reasonable judgment
of the Guarantor, is reasonably likely to cause the effects specified in (i) or
(ii).

            1.11 One-Month LIBOR: With respect to any day, the One-Month London
Interbank Offered Rate (LIBOR) for U.S. Dollar borrowings, as determined by the
British Bankers' Association on the Due Date and as reported by Bloomberg
Financial Markets Service.

            1.12 Series A Designations: The Designation of Rights, Privileges
and Preferences of Series A Preferred Stock, adopted by resolution of the
Borrower's Board of Directors on December __, 2000.

            1.13 Series A Director: A Director designated by the Guarantor
pursuant to the terms of the Series A Designations.

            1.14 Series A Preferred Stock: Shares of the Borrower's Series A
Preferred Stock having the rights, privileges and preferences set forth in
Exhibit B hereto.

            1.15 Subsidiaries: As defined in Section 3.9.

            1.16 Weighted Average Daily Trading Price: For any date, the average
(weighted to take account of the number of shares traded) of the selling prices
of the Borrower's common shares for the ten trading days immediately preceding
such date, as reported by Bloomberg Financial Markets Service.

                                   ARTICLE II

                GUARANTY; REIMBURSEMENT; FACILITY FEES; EXPENSES

            2.1 Guaranty: At closing of the Revolving Credit Loan on the terms
contemplated by the Credit Agreement, as previously presented to and approved by
the Guarantor, subject to satisfaction of the conditions in Section 9.2, the
Guarantor shall execute and deliver the Guaranty to the Bank.

            2.2 Reimbursement of Payments Made Under Guaranty: In the event that
the Guarantor makes a payment to the Bank pursuant to the Guaranty (each a
"Guaranty Payment"), the Guarantor will give written notice to the Borrower
specifying the date and the amount of such Guaranty Payment (each a
"Reimbursement Notice"). Upon issuance of the Reimbursement Notice, and to the
extent not prohibited under the Guaranty, the Guarantor shall assume and be
subrogated to all rights of the Bank under the Revolving Credit Loan. The
Borrower shall reimburse the Guarantor in full for each and every Guaranty
Payment and shall also pay the Guarantor interest at the Applicable Rate on the
outstanding balance of each Guaranty Payment from the day it is made through the
day immediately preceding the day on which the Guarantor is reimbursed as
provided herein. Reimbursement shall be made as specified in Section 2.2(a) or
2.2(b) below. Upon such reimbursement and payment of all interest and Expenses
payable under Article II, the Borrower shall be fully discharged from all
liability to the Guarantor with respect to such Guaranty Payment.

            (a) Reimbursement in Cash. Unless otherwise specified by the
Guarantor in the Reimbursement Notice, reimbursement of a Guaranty Payment and
all interest accrued thereon shall be made in immediately available funds
denominated in U.S. Dollars within ten (10) Business Days after the Guarantor
gives the Reimbursement Notice.

            (b) Reimbursement in Common Stock. If and to the extent so specified
by the Guarantor in the Reimbursement Notice, reimbursement of a Guaranty
Payment and all interest accrued thereon shall be made in the form of Common
Stock issued in the name of the Guarantor or its designee(s). The number of
shares of Common Stock to be issued for purposes of such reimbursement shall be
calculated as specified in Section 2.4, with the Applicable Percentage being
80%. Such shares of Common Stock shall be issued by the Borrower within fifteen
(15) Business Days after the Guarantor gives the Reimbursement Notice.

            2.3 Guaranty Fees: On each Due Date, the Borrower shall pay to the
Guarantor a Guarantee facility fee (the "Fee") equal to 0.4% of the maximum
principal amount, including both amounts outstanding and amounts available to be
drawn by the Borrower, of the Revolving Credit Loan as of such Due Date.

            (a)         Unless otherwise specified by the Guarantor in a written
                        notice given to the Borrower before the Due Date, the
                        Fee shall be paid in immediately available funds
                        denominated in U.S. Dollars.

            (b)         If and to the extent so specified by the Guarantor in a
                        written notice given to the Borrower before the Due
                        Date, the Fee shall be paid in the form of Common Stock
                        issued in the name of the Guarantor or its designee(s).
                        The number of shares of Common Stock to be issued for
                        purposes of such payment shall be calculated as
                        specified in Section 2.4, with the Applicable Percentage
                        being 90%. Such shares of Common Stock shall be issued
                        by the Borrower within fifteen (15) Business Days after
                        the Due Date.

            2.4 Calculation of Number of Shares: When a payment or reimbursement
hereunder is required to be made in the form of Common Stock, the number of
shares of Common Stock to be issued with respect to such payment or
reimbursement shall be calculated as follows as of the date on which such shares
are required to be issued:

                        Number = ($ Amount) / (AP x WADTP)

Where:

o    Number = Number of shares of Common Stock to be issued, rounded to the
     nearest whole share;

o    $ Amount = The U.S. Dollar amount to be paid or reimbursed in Common Stock;

o    AP = The Applicable Percentage; and

o    WADTP = The Weighted Average Daily Trading Price

            Example 1: Assuming the maximum principal amount of the Revolving
            Credit Loan is $10,000,000 on August 1 of 2001, the amount of the
            Fee will be $40,000. Assuming the Weighted Average Daily Trading
            Price for the ten trading days ending July 31 is $5.00 per share,
            the Guarantor will have the option of receiving the Fee (i) entirely
            in cash, (ii) in the form of 8,889 shares of Common Stock in lieu of
            a cash payment, or (ii) in the form of a combination of cash and
            Common Stock.

            Example 2: Assuming the Guarantor has made a $10,000,000 Guaranty
            Payment on Day One, One-Month LIBOR remains constant at 8.00%, and
            (if the Guarantor elects to receive reimbursement of part or all of
            the Guaranty Payment in Common Shares) the Weighted Average Daily
            Trading Price for the ten trading days preceding the date of
            reimbursement of the Guaranty Payment is $5.00 per share, the
            Guarantor will have the option of receiving (i) a cash payment of
            $10,000,000 plus interest calculated at the annual rate of 12.5%,
            which interest is equal to $3,472.22 for Day Two, (ii) 2,500,000
            shares of Common Stock in reimbursement of the $10,000,000 Guaranty
            Payment plus additional shares of Common Stock in reimbursement of
            accrued interest, which is equal to 868 shares for the interest
            accrued on Day Two, or (iii) a combination thereof.

            2.5 Reimbursement of Expenses: On the Effective Date, the Borrower
shall reimburse the Guarantor in immediately available U.S. Dollars for all
Expenses incurred by the Guarantor on or prior to such date, not to exceed
$40,000. The Borrower shall promptly reimburse the Guarantor for all Expenses
incurred by the Guarantor after the Effective Date within thirty (30) days of
the Borrower's receipt of invoices therefor.

            2.6 Interest on Late Payments: Fees, Expenses and other amounts that
are not paid when due under this Agreement shall accrue interest at the
Applicable Rate from the date due through the day immediately preceding the day
on which they are paid. All such interest shall be payable in immediately
available U.S. Dollars on demand by the Guarantor.

            2.7 Application of Payments. All payments received from the Borrower
will be applied first to reimbursement of the Guarantor's Expenses, second to
the payment of interest, and third to payment of other amounts owed to the
Guarantor hereunder.

            2.8. Request for Supplemental Guaranty. Provided the Borrower is not
then in default under this Agreement, the Borrower may request the Guarantor to
guarantee up to $15 million principal amount of loans to the Borrower in
addition to the Revolving Credit Loan. In connection with any such request, the
Borrower shall make available all information reasonably requested by the
Guarantor for the purpose of evaluating such request. The Guarantor agrees to
consider any such request in light of the information provided by the Borrower,
but the Guarantor shall have no obligation to provide any such supplemental
guaranty.

            2.9. Issuance of Series A Preferred Stock. As a further inducement
to and in consideration for the Guarantor's execution and delivery of the
Guaranty, the Borrower shall issue to the Guarantor, contemporaneously with the
closing of the Revolving Credit Loan, one (1) share of the Borrower's Series A
Preferred Stock, which shall be duly authorized, validly issued, fully paid,
non-assessable and free and clear of any and all liens, claims, encumbrances and
preemptive rights.

                                   ARTICLE III

                 REPRESENTATIONS AND WARRANTIES OF THE BORROWER

            The Borrower hereby represents and warrants to the Guarantor as
follows:

            3.1 Organization. The Borrower is a corporation duly organized,
validly existing and in good standing under the laws of the State of Nevada and
has the corporate power and authority and all necessary governmental licenses,
permits, authorizations and approvals to own, lease and operate its properties
and to carry on its business as it is now being conducted or presently proposed
to be conducted. The Borrower is duly qualified as a foreign corporation to do
business, and is in good standing, in each jurisdiction where the character of
its properties owned or held under lease or the nature of its activities makes
such qualification necessary.

            3.2 Authority. The Borrower has the corporate power and authority to
enter into this Agreement and to carry out its obligations hereunder. The
execution, delivery and performance of this Agreement by the Borrower and the
consummation by the Borrower of the transactions contemplated hereby have been
duly authorized by the Borrower's Board of Directors, and no other corporate
proceedings on the part of the Borrower are necessary to authorize this
Agreement and the transactions contemplated hereby. This Agreement has been duly
and validly executed by the Borrower and (assuming this Agreement constitutes a
valid and binding obligation of the Guarantor and the Managing Shareholders)
constitutes a valid and binding agreement of the Borrower, enforceable against
the Borrower in accordance with its terms, subject to applicable bankruptcy,
reorganization, insolvency, moratorium and other laws affecting creditors'
rights generally from time to time in effect and to general equitable
principles.

            3.3 Consents and Approvals. No filing with, and no permit,
authorization, license, consent or approval of, any governmental entity is
necessary for the execution, delivery and performance of this Agreement by the
Borrower and the consummation of the transactions contemplated by this
Agreement.

            3.4 No Conflict or Violation. Neither the execution, delivery or
performance of this Agreement, nor the consummation of the transactions
contemplated hereby, will (a) conflict with or result in any breach of any
provisions of the certificate of incorporation or bylaws of the Borrower, (b)
result in a violation or breach of, or constitute (with or without due notice or
lapse of time or both) a default (or give rise to any right of termination,
cancellation, vesting, payment, exercise, acceleration, suspension, revocation
or modification) under, any of the terms, conditions or provisions of any note,
credit agreement, bond, mortgage, deed of trust, security interest, indenture,
lease, license, contract, agreement, plan or other instrument or obligation to
which Borrower is a party or by which it, or any of its properties or assets,
may be bound or affected, or (c) violate any judgment, order, writ, injunction,
decree, statute, law, ordinance, rule or regulation applicable to Borrower or
any of its properties or assets, except, in the case of clauses (b) and (c), for
such violations, breaches, defaults or rights as to which requisite waivers or
consents have been obtained.

            3.5 Capitalization. The authorized capital stock of the Borrower
consists of 100,000,000 shares of common stock (of which 56,250,030 were
outstanding as of December 15, 2000) and 10,000,000 shares of preferred stock
(of which none are outstanding as of the date of this Agreement).

            3.6 No Material Adverse Change. No Material Adverse Change or
Material Adverse Effect has occurred since the date of the Borrower's most
recent consolidated quarterly financial statements filed with the Securities
Exchange Commission (the "SEC").

            3.7 No Increase in Debt. The aggregate amount of the Borrower's
outstanding consolidated debt (including all amounts required by generally
accepted accounting principles ("GAAP") to be treated as debt) does not exceed
the aggregate amount of debt reflected on the Borrower's most recent
consolidated balance sheet filed with the SEC.

            3.8 Managing Shareholders. Except for the Managing Shareholders, no
officer or other employee of the Borrower holds more than 1% of the Borrower's
outstanding common stock.

            3.9 Subsidiaries. Schedule 3.9 sets forth a complete list of all
corporations or other entities of which the Borrower, directly or indirectly,
has the voting power to elect a majority of the board of directors or other
managers of such corporations or other entities (the "Subsidiaries") together
with, for each Subsidiary, the jurisdiction of its incorporation or organization
and the percentage of each class of shares or other equity interests owned
directly or indirectly by the Borrower.

            3.10 Subsidiary Organization. Each Subsidiary is a corporation duly
organized, validly existing and in good standing under the laws of its state of
incorporation and has the corporate power and authority and, except with respect
to certain governmental licenses, permits, authorizations and approvals
associated with Xtal FiberCore Brasil ("Xtal") that are in the process of being
obtained and with respect to which Xtal is entitled to be indemnified for losses
arising from the failure to so obtain by June 20, 2001, has all necessary
governmental licenses, permits, authorizations and approvals to own, lease and
operate its properties and to carry on its business as it is now being conducted
or presently proposed to be conducted. Each Subsidiary is duly qualified as a
foreign corporation to do business, and is in good standing, in each
jurisdiction where the character of its properties owned or held under lease or
the nature of its activities makes such qualification necessary.

                                   ARTICLE IV

                      AFFIRMATIVE COVENANTS OF THE BORROWER

            The Borrower covenants and agrees that, so long as this Agreement
remains in effect, the Borrower shall, and with respect to the covenants in
Sections 4.4, 4.5 and 4.6, shall cause each of the Subsidiaries to:

            4.1 Credit Agreement Payments: On or before the applicable due date,
make all payments due to the Bank under the Credit Agreement.

            4.2 Notice of Proceedings or Adverse Change: Give notice to the
Guarantor, as soon as possible and in any event within two (2) Business Days
after a responsible officer of the Borrower has any knowledge of:

            (a)         the occurrence of any Default or Event of Default under
                        the Credit Agreement or this Agreement; or

            (b)         any litigation or proceeding that is pending or
                        threatened against the Borrower or any of the
                        Subsidiaries in which the portion of the total claim
                        that is not covered by insurance exceeds $2,500,000; in
                        which injunctive or similar relief is sought; or which,
                        if adversely determined, would reasonably be expected to
                        have a Material Adverse Effect.

            4.3 Correspondence, Notices and Financial Statements exchanged with
the Bank: Immediately furnish, or cause to be furnished, to the Guarantor (a)
copies of all correspondence, notices, material information and financial
statements provided by or on behalf of the Borrower to the Bank (whether or not
required under the Credit Agreement); (b) copies of all correspondence and
notices provided to the Borrower by the Bank under the Credit Agreement; and (c)
a certificate, issued on each Due Date and signed by the Borrower's Chief
Financial Officer, stating that the Borrower is in complete compliance with this
Agreement, the Credit Agreement, and all related agreements or amendments
between the Borrower and the Guarantor or the Borrower and the Bank.

            4.4 Visitation and Inspection Rights: Permit the Guarantor to
inspect, and to discuss with the Borrower's or Subsidiary's officers, agents and
auditors, the affairs, finances, and accounts of the Borrower or Subsidiary and
the Borrower's or Subsidiary's books and records, and to make abstracts or
reproductions thereof and to duplicate, reduce to hard copy or otherwise use any
and all computer or electronically stored information or data (provided that, in
all circumstances, all information obtained by the Guarantor shall be treated as
confidential and disclosed only, if necessary, to the Guarantor's auditors,
counsel and others agents and regulatory authorities), in each case, (i) during
normal business hours, (ii) upon reasonable notice, and (iii) at the expense of
the Borrower, and at the same time as the Guarantor and its affiliates may
discuss with the Borrower's or Subsidiary's officers, agents and auditors its
affairs, finances, and accounts.

            4.5 Preservation of Existence; Compliance with Law:

            (a)         Do or cause to be done all things necessary to preserve,
                        renew and keep in full force and effect its corporate
                        existence, and its rights, licenses, permits and
                        franchises that are material or necessary for the
                        conduct of its business; and

            (b)         Comply with all applicable laws, rules, regulations and
                        orders, whether now in effect or hereafter enacted or
                        promulgated by any applicable Governmental Authority.

            4.6 Taxes, etc.: Pay and discharge or cause to be paid and
discharged when due, or adequately reserve for the payment of, all taxes,
assessments and governmental charges or levies imposed upon it or upon its
income and profits or upon any of its property, real, personal or mixed or upon
any part thereof, as well as any other lawful claims that, if unpaid, might
become a Lien upon such properties or any part thereof.

            4.7 Board of Directors: Permit at least one Series A Director to
serve as a member of the Borrower's Board of Directors at all times.

            4.8 Additional Parties: Within fifteen (15) Business Days after the
first day on which an officer of the Borrower becomes the holder of more than 1%
of the Borrower's common stock, cause each such officer to execute and become a
party to this Agreement as a Managing Shareholder.

            4.9 Reports Regarding Status of Xtal Licenses: On each Due Date, and
on any other date within ten (10) Business Days after receiving a request from
the Guarantor for such information, provide a written report to the Guarantor as
to the status of efforts to obtain the licenses, permits, authorizations and
approvals for Xtal that are referred to in Section 3.10 and, if applicable, the
status and amounts of any indemnity claims that have been asserted as a result
of any failure to obtain such licenses, permits, authorizations and approvals.

            4.10 Further Assurances: Execute and deliver to the Guarantor all
further documents, agreements and instruments, and take all further action that
may be required under applicable law, or that the Guarantor may reasonably
request, in order to effectuate the transactions contemplated by the Agreement.

                                    ARTICLE V

                       NEGATIVE COVENANTS OF THE BORROWER

            The Borrower covenants and agrees that, so long as this Agreement
remains in effect, the Borrower shall not, and, with respect to the covenants in
Sections 5.1, 5.2, 5.3 and 5.5, shall cause each of the Subsidiaries not to,
directly or indirectly, without the prior written consent of the Guarantor:

            5.1 Fundamental Changes: Amend its articles of incorporation, bylaws
or other organizational documents, except as contemplated by this Agreement;
dissolve, liquidate, merge, consolidate or otherwise alter or modify its
corporate name, mailing address, principal place of business, structure, status
or existence; enter into or engage in any operation or activity materially
different from that presently conducted by it, or significantly change the scope
of its business operations.

            5.2 Illegal Activities: Engage in any conduct or activity that
violates any applicable law.

            5.3 Indebtedness: Create, assume, incur or permit to exist at any
time (a) any indebtedness for borrowed money other than (i) indebtedness to the
Bank under the Credit Agreement, (ii) indebtedness incurred in accordance with a
capital expenditure program and associated financing strategy approved in
advance by the Borrower's Board of Directors with the affirmative vote of at
least one Series A Director, (iii) indebtedness in existence on the Effective
Date and disclosed in the Credit Agreement, (iv) trade indebtedness incurred in
the ordinary course of business, (v) indebtedness secured by liens in existence
on the Effective Date and disclosed in the Credit Agreement, or (vi) purchase
money indebtedness not to exceed $100,000 per year; or (b) any lien or similar
encumbrance on (i) any property of the Borrower other than liens in favor of the
Bank securing repayment of the Revolving Credit Loan, or (ii) any property of a
Subsidiary other than liens securing indebtedness permitted by clause (a)(ii),
(a)(iii), (a)(v) or (a)(vi) of this Section 5.3.

            5.4 Subordination: Issue or cause to be issued any debt that is or
would be senior to the indebtedness to the Guarantor other than indebtedness to
the Bank pursuant to the Credit Agreement.

            5.5 Disposal of Assets: Sell, assign, transfer, exchange, or
otherwise dispose of, in a single transaction or a series of related
transactions, 25% or more of the Borrower's consolidated tangible assets, as
defined by GAAP, unless all net proceeds of each such transaction are applied
within ten (10) Business Days after the date of receipt to reduce permanently
the maximum principal amount of the Revolving Credit Loan.

            5.6 Dividends: Declare or pay any dividend (other than dividends
payable solely in common stock of the Borrower having voting rights equivalent
to the shares on which the dividends are paid, or in options, warrants or other
rights to purchase such common stock of the Borrower) on any shares of any class
of capital stock of the Borrower or any warrants or options to purchase any such
capital stock.

            5.7 Stock Voting Rights: Create a class of common or preferred stock
with voting rights different from or superior to those of the Common Stock or
modify the voting rights of an existing class of common or preferred stock.

            5.8 Limitation on Optional Payments and Modifications of Debt
Instruments and other Material Agreements: Make any optional payment,
prepayment, repurchase or redemption of any debt for borrowed money, other than
debt under the Credit Agreement; debt owed to the Guarantor; or, if approved in
advance by the Borrower's Board of Directors with the affirmative vote of at
least one Series A Director, debt owed to Crescent International, Ltd.

            5.9 Limitation on Borrower Guarantee Obligations: Create, incur,
assume, or allow to exist any Borrower Guarantee Obligation (as defined below),
except:

            (a)         Borrower Guarantee Obligations in existence on the
                        Effective Date that are disclosed in the Credit
                        Agreement;

            (b)         Borrower Guarantee Obligations with respect to
                        indebtedness of Subsidiaries that is permitted by
                        Section 5.3; and

            (c)         Borrower Guarantee Obligations for performance, appeal,
                        judgment, replevin and similar bonds, or suretyship
                        arrangements, all arising in the ordinary course of
                        business; or other Borrower Guarantee Obligations that
                        arise in the ordinary course of business.

            A Borrower Guarantee Obligation is the obligation of the Borrower to
pay, perform or otherwise discharge a debt or other obligation of another if the
person primarily liable fails to pay, perform or otherwise discharge such debt
or obligation.

                                   ARTICLE VI

                    REPRESENTATIONS, WARRANTIES AND COVENANTS

                          OF THE MANAGING SHAREHOLDERS

            6.1 Representations and Warranties: Each of the Managing
Shareholders hereby represents and warrants to the Guarantor as follows:

            (a)         Authority. Such Managing Shareholder has the power and
                        authority to enter into this Agreement and to carry out
                        his obligations hereunder. This Agreement has been duly
                        and validly executed by such Managing Shareholder and
                        (assuming this Agreement constitutes a valid and binding
                        obligation of the Guarantor, the Borrower and the other
                        Managing Shareholders) constitutes a valid and binding
                        agreement of such Managing Shareholder, enforceable
                        against him in accordance with its terms, subject to
                        applicable bankruptcy, reorganization, insolvency,
                        moratorium and other laws affecting creditors' rights
                        generally from time to time in effect and to general
                        equitable principles.

            (b)         No Conflict or Violation. Neither the execution,
                        delivery or performance of this Agreement, nor the
                        consummation of the transactions contemplated hereby,
                        will (a) result in a violation or breach of, or
                        constitute (with or without due notice or lapse of time
                        or both) a default (or give rise to any right of
                        termination, cancellation, vesting, payment, exercise,
                        acceleration, suspension, revocation or modification)
                        under, any of the terms, conditions or provisions of any
                        note, credit agreement, bond, mortgage, deed of trust,
                        security interest, indenture, lease, license, contract,
                        agreement, plan or other instrument or obligation to
                        which such Managing Shareholder is a party or by which
                        he or any of his properties or assets may be bound or
                        affected, or (b) violate any judgment, order, writ,
                        injunction, decree, statute, law, ordinance, rule or
                        regulation applicable to such Managing Shareholder or
                        any of his properties or assets, except for such
                        violations, breaches, defaults or rights as to which
                        requisite waivers or consents have been obtained.

            6.2 Restriction on Sale of Shares: So long as this Agreement remains
in effect, and unless otherwise consented to in writing by the Guarantor, no
Managing Shareholder shall sell, transfer, grant, pledge, hypothecate, or
otherwise dispose of or encumber any interest in, or the right to vote
(collectively, "Sell"), any shares of the Borrower's stock; provided, however,
that each Managing Shareholder may Sell, (a) in the twelve-month period ending
on the first anniversary of the Effective Date, not more than the greater of (i)
500,000 shares of the Borrower's common stock or (ii) ten percent (10%) of the
total number of shares of the Borrower's common stock that, at any time during
such twelve-month period, such Managing Shareholder either (A) owned or (B) had
the right to acquire through the exercise of vested options or then-exercisable
warrants or conversion rights but did not acquire during such subsequent
twelve-month period; and (b) in any subsequent twelve-month period, not more
than ten percent (10%) of the total number of shares of the Borrower's common
stock that, at any time during such subsequent twelve-month period, such
Managing Shareholder either (i) owned or (ii) had the right to acquire through
the exercise of vested options or then-exercisable warrants or conversion rights
but did not acquire during such subsequent twelve-month period.

            6.3. Termination of Managing Shareholder Status. A Managing
Shareholder shall cease to be a party to and be bound by the provisions of this
Agreement as of the first day upon which such Managing Shareholder is neither
(i) an officer or employee of, nor (ii) a consultant providing management
services or exercising significant decision-making authority with respect to,
the Borrower or any of the Subsidiaries or their respective businesses.

                                   ARTICLE VII

                                EVENTS OF DEFAULT

Each of the following events or circumstances shall constitute an "Event of
Default." An Event of Default hereunder shall be deemed to be continuing unless
and until waived in writing by the Guarantor.

            7.1 The failure of the Borrower to make any payment or issue any
shares of Common Stock when due, as provided in Article II of this Agreement.

            7.2 The failure of the Borrower to perform, comply with or observe
in any material respect any of the covenants specified in Article V of this
Agreement.

            7.3 The failure of any of the Managing Shareholders to perform,
comply with or observe in any material respect any of the covenants in Article
VI of this Agreement.

            7.4 The failure of the Borrower to perform, comply with or observe
any other term, covenant or agreement applicable to the Borrower contained in
this Agreement unless such failure is cured within 20 days after notice thereof
by the Guarantor.

            7.5 Any material breach of a representation or warranty made by the
Borrower or a Managing Shareholder in this Agreement.

            7.6 Any of the following events shall occur:

            (a)         The Borrower or any of the Subsidiaries shall admit its
                        inability to pay its debts as they mature or shall make
                        an assignment for the benefit of itself or any of its
                        creditors;

            (b)         Proceedings in bankruptcy or for reorganization of the
                        Borrower or any of the Subsidiaries, or for the
                        readjustment of its debts under the Bankruptcy Code, as
                        amended, or any part thereof, or under any other laws,
                        whether state or federal, for the relief of debtors, now
                        or hereafter existing, shall be commenced against or by
                        the Borrower or any of the Subsidiaries and, except with
                        respect to any such proceedings instituted by the
                        Borrower or any of the Subsidiaries, shall not be
                        discharged within sixty (60) days of their commencement;
                        or

            (c)         A receiver or trustee shall be appointed for the
                        Borrower of any of the Subsidiaries or for any
                        substantial part of its assets, or any proceedings shall
                        be instituted for the dissolution or the full or partial
                        liquidation of the Borrower or any of the Subsidiaries,
                        and except with respect to any such appointment
                        requested or proceedings instituted by the Borrower or
                        any of the Subsidiaries, such receiver or trustee or
                        proceedings shall not be discharged within sixty (60)
                        days of their appointment or commencement; or

            (d)         The Borrower or any of the Subsidiaries shall
                        discontinue business or materially change the nature of
                        its business.

            7.7 Indebtedness of the Borrower or any of the Subsidiaries for
borrowed money in an outstanding principal amount of $2,500,000 or more shall be
accelerated by the lender as a result of the occurrence of an event of default
under the terms of the documents evidencing or securing such indebtedness.

                                  ARTICLE VIII

                        REMEDIES FOR AN EVENT OF DEFAULT

            8.1 Control of Board. Upon the occurrence and during the
continuation of an Event of Default, the Guarantor shall have the right, but not
the obligation, as holder of the Series A Preferred Stock, to designate
additional Series A Directors to be added to the Borrower's Board of Directors
pursuant to the terms of the Series A Designations. If the Guarantor elects to
exercise such right, it shall do so by delivering written notice (a "Designation
Notice") to the Borrower specifying the names of the individuals to be appointed
as additional Series A Directors.

            (a) The appointments of the additional Series A Directors shall
become effective immediately upon delivery of the Designation Notice.

            (b) Within one day after the Guarantor delivers a Designation
Notice, the Borrower's chief executive officer shall call and give written
notice to all directors, including all Series A Directors, of a special meeting
of the Borrower's Board of Directors (which may be by telephone) to occur no
later than two days after the date of such notice. The notice shall specify the
place, date and time of the special meeting and shall be delivered by hand, by
overnight courier or by facsimile. If the Borrower's chief executive officer
fails to call and give notice of such meeting within the time specified by this
subsection, such special meeting may be called and notice may be given by the
Series A Directors.

            8.2 Acceleration. Upon the occurrence of an Event of Default
specified in Section 7.6, and without any action by the Guarantor, (a) all
amounts owed to the Guarantor under this Agreement shall immediately become due
and payable in full, and (b) any right the Borrower may have to satisfy such
obligations by issuing Common Stock shall immediately terminate.

            8.3 Remedies Cumulative. The remedies provided for in this Article
VIII are cumulative and are not exclusive of any other remedies provided by law.

                                   ARTICLE IX

                EFFECTIVE DATE; CONDITIONS PRECEDENT; TERMINATION

            9.1 Effective Date. This Agreement shall become effective on the
date (the "Effective Date") that is the later of (a) the date of this Agreement
or (b) the first day on which the Guaranty has been executed by the Guarantor
and delivered to the Bank; provided, however, that if the Effective Date has not
occurred by December __, 2000 this Agreement shall be null and void and no party
shall have any further rights or obligations hereunder.

            9.2 Conditions Precedent. The obligation of the Guarantor to execute
the Guaranty and deliver it to the Bank is conditioned upon satisfaction of each
of the following conditions at or before closing of the Revolving Credit Loan:

            (a) This Agreement shall have been executed and delivered by the
Borrower and each of the Managing Shareholders;

            (b) The terms of the Revolving Credit Loan, the Credit Agreement,
and each other loan document shall be acceptable to the Guarantor;

            (c) The Guaranty shall be substantially in the form attached hereto
as Exhibit A;

            (d) The Borrower's Bylaws shall have been amended as set forth in
Exhibit C;

            (e) The Borrower's Board of Directors shall have adopted a
resolution designating the rights, privileges and preferences of the Series A
Preferred Stock, which shall be substantially in the form attached hereto as
Exhibit B, and a certificate of designations setting forth such rights,
privileges and preferences shall have been duly filed with the Secretary of
State of Nevada.

            (f) The Series A Preferred Stock shall have been duly issued to the
Guarantor, free and clear of all liens, claims and encumbrances, and the
Guarantor shall have received a certificate evidencing its ownership of such
Series A Preferred Stock.

            (g) The Guarantor shall have received each of the following, in form
and substance reasonably acceptable to counsel for the Guarantor:

            (i) Copies of the Borrower's certificate or articles of
            incorporation and the certificate of designation of rights,
            privileges and preferences of the Series A Preferred Stock, each
            certified by the Secretary of State of Nevada;

            (ii) A copy of the Borrower's amended bylaws, certified by the
            Secretary of the Borrower;

            (iii) A certified copy of a resolution of the Borrower's Board of
            Directors evidencing approval of this Agreement and the transactions
            contemplated hereby;

            (iv) An incumbency certificate identifying each of the Borrower's
            directors and executive officers and including specimen signatures
            of the officers executing this Agreement;

            (v) The opinion of Cadwalader, Wickersham & Taft, counsel to the
            Borrower, in substantially the form attached hereto as Exhibit D;
            and

            (vi) The opinion of Lionel, Sawyer & Collins, Nevada counsel to the
            Borrower, in substantially the form attached hereto as Exhibit E.

            9.3 Term and Termination. This Agreement and all covenants,
agreements, representations and warranties herein shall survive the closing of
the Revolving Credit Loan and continue in full force and effect from the
Effective Date until both (a) the Guaranty has been terminated pursuant to
Section 8(a) thereof and (b) all obligations of the Borrower under Article II of
this Agreement have been fully and indefeasibly performed. Notwithstanding any
termination of this Agreement pursuant to the immediately preceding sentence,
this Agreement shall be reinstated, and the Borrower shall immediately reissue
the Series A Preferred Stock to the Guarantor if such stock is not then
outstanding, if at any time either (i) the Guaranty is reinstated pursuant to
Section 8 thereof, or (ii) any payment made to or value received by the
Guarantor hereunder is rescinded or must otherwise be returned by the Guarantor
upon the insolvency, bankruptcy or reorganization or the Borrower, or otherwise,
all as though such payment had not been made or value received.

                                    ARTICLE X

                                  MISCELLANEOUS

            10.1 Entire Agreement. This Agreement (including the Exhibits
hereto) constitutes the entire agreement of the parties hereto and supersedes
any and all prior or contemporaneous agreements, written or oral, as to the
matters contained herein.

            10.2 Amendments, Waivers. No amendment of this Agreement shall be
effective unless the same is in writing and signed by the Guarantor and the
Borrower. No waiver of any provision of this Agreement shall be effective unless
the same is in writing and signed by the waiving party. The Guarantor's failure
to insist upon the strict performance of any term, condition or other provision
of this Agreement, or to exercise any right or remedy hereunder, shall not
constitute a waiver by the Guarantor of any such term, condition or other
provision or Event of Default in connection therewith, nor shall a single or
partial exercise of any such right or remedy preclude any other or future
exercise, or the exercise of any other right or remedy; and any waiver of any
such term, condition or other provision or of any such Event of Default shall
not affect or alter this Agreement, and each and every term, condition and other
provision of this Agreement shall, in such event, continue in full force and
effect and shall be operative with respect to any other then existing or
subsequent Event of Default in connection therewith.

            10.3 Successors and Assigns: This Agreement shall be binding upon
and inure to the benefit of the parties hereto and their respective successors
and permitted assigns. Neither the Borrower nor any of the Managing Shareholders
shall have the right to assign all or any part of this Agreement or any interest
herein without the prior written consent of the Guarantor. The Guarantor may
assign this Agreement without the consent of the Borrower or the Managing
Shareholders to any affiliate of the Guarantor or to any purchaser of the entire
equity interest of Tyco, or Tyco's affiliates, in the Borrower.

            10.4 GOVERNING LAW: THIS AGREEMENT SHALL BE GOVERNED BY AND
INTERPRETED UNDER THE LAWS OF THE STATE OF NEW YORK without regard to the
conflict-of-laws principles thereof (other than Section 5-1401 of the General
Obligations Law of the State of New York).

            10.5 Submission to Jurisdiction; Waivers: Each party hereto hereby
irrevocably and unconditionally

            a. submits itself and its property in any legal action or proceeding
relating to this Agreement, any amendments to this Agreement, or for recognition
enforcement of any judgment in respect thereof, to the exclusive general
jurisdiction of the courts of the State of New York, the courts of the United
States of America for the Southern District of New York, and appellate courts
from either thereof; and

            b. appoints CT Corporation as its agent for service of process in
the state of New York.

            10.6 Notices: All Notices, communications and distributions
hereunder shall be given or made to the intended recipient at the address
specified below, or at such other address as the addressee may hereafter specify
for the purpose by written notice to the other party hereto. Such Notices and
other communications (including, without limitation, any modifications of, or
waivers or consents under, this Agreement) shall be given or made in writing and
may be delivered by hand, by overnight courier, by facsimile, or by first-class
mail (return receipt requested). All such Notices and other communications shall
be deemed to have been duly given (a) if delivered by hand, overnight courier or
first-class mail (return receipt requested), on the date of delivery; and (b) if
transmitted by facsimile (with receipt confirmed by machine), on the date of
transmission if the same is a Business Day or, if not a Business Day, on the
first Business Day after the date of transmission.

To the Guarantor:
Tyco International Group S.A.
6, avenue Emile Reuter
Second Floor
L-2420 Luxembourg
Attention: Richard W. Brann
Telecopier: (011-352) 464-350

With copies to:

Tyco International (US) Inc.
One Tyco Park
Exeter, NH  03833
Attn: Chief Corporate Counsel
Fax: (603) 778-2823

Wilmer, Cutler & Pickering
2445 M Street, NW
Washington, DC  20037
Attention: Meredith Cross
Telecopier: (202) 663-6363

To the Borrower:
FiberCore, Inc.
253 Worcester Road
P.O. Box 180
Charlton, MA  01507
Attention: Steven Phillips
Telecopier: (508) 248 5588

With a copy to:
Cadwalader, Wickersham & Taft
100 Maiden Lane

New York, NY  10038
Attn:  Malcolm P. Wattman
Telecopier:  212-504-6666

To Mohd A. Aslami
c/o FiberCore, Inc.
253 Worcester Road
P.O. Box 180
Charlton, MA  01507
Telecopier: (508) 248 5588

To Charles De Luca
c/o FiberCore, Inc.
253 Worcester Road
P.O. Box 180
Charlton, MA  01507
Telecopier: (508) 248 5588

To Steven Phillips
c/o FiberCore, Inc.
253 Worcester Road
P.O. Box 180
Charlton, MA  01507
Telecopier: (508) 248 5588

            10.7 Severability: In case any provision in or obligation under this
Agreement shall be invalid, illegal or unenforceable in any jurisdiction, the
validity, legality and enforceability of the remaining provisions or
obligations, or of such provision or obligation in any other jurisdiction, shall
not in any way be affected or impaired thereby.

            10.8 Section Headings: The Article and Section headings in this
Agreement are inserted for convenience of reference only and shall not in any
way affect the meaning or construction of any provision of this Agreement.

            10.9 Counterparts: This Agreement may be executed in any number of
counterparts and by the different parties hereto in separate counterparts, each
of which when so executed and delivered shall be an original, but all of which
shall together constitute one and the same instrument.

            10.10 Specific Performance: The Parties each acknowledge and agree
that irreparable damage would occur in the event that any of the provisions of
this Agreement were not performed in accordance with their specific terms or
were otherwise breached. It is accordingly agreed that the Parties shall be
entitled to preliminary relief to prevent or cure breaches of the provisions of
this Agreement and to enforce specifically the terms and provisions hereof, this
being in addition to any other remedy that they may be entitled to by law or
equity.

<PAGE>

IN WITNESS WHEREOF, the parties have executed, or caused their duly authorized
representatives to execute, this Agreement as of the date first above written.

TYCO INTERNATIONAL GROUP S.A.

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

FIBERCORE, INC.

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

-------------------------------------------
Mohd A. Aslami

-------------------------------------------
Charles De Luca

-------------------------------------------
Steven Phillips

Exhibits:
--------

A.   Form of Guaranty
B.   Terms of Series A Preferred Stock
C.   Amendments to Bylaws
D.   Form of Opinion of Cadwalader, Wickersham & Taft
E.   Form of Opinion of Lionel, Sawyer & Collins

<PAGE><PAGE>

                                                                   Exhibit 10.1

                              LEARNINGSTAR CORP.
                      2000 STOCK OPTION AND INCENTIVE PLAN

     1.   Purpose.  The purpose this 2000 Stock Option and Incentive Plan
(the "Plan") is to encourage key employees and directors of LearningStar
Corp. (the "Company"), any future parent or subsidiary of the Company (each a
"Related Company" and, collectively, the "Related Companies") and certain
consultants of the Company or a Related Company, by providing opportunities to
participate in the ownership of the Company and its future growth through (a)
the grant of options which qualify as "incentive stock options" ("ISOs") under
Section 422(b) of the Internal Revenue Code of 1986, as amended (the "Code");
(b) the grant of options which do not qualify as ISOs ("Non-Qualified Options");
(c) awards of stock in the Company ("Awards"); and (d) opportunities to make
direct purchases of stock in the Company ("Purchases"). Both ISOs and Non-
Qualified Options are referred to hereafter individually as an "Option" and
collectively as "Options." Options, Awards and authorizations to make Purchases
are referred to hereafter collectively as "Stock Rights." As used herein, the
terms "parent" and "subsidiary" mean "parent corporation" and "subsidiary
corporation," respectively, as those terms are defined in Section 424 of the
Code.

     2.   Administration of the Plan.

          A.  Board or Committee Administration. The Plan shall be administered
     by the Board of Directors of the Company (the "Board") or by a committee
     appointed by the Board (the "Committee"); provided that the Plan shall be
     administered: (i) to the extent required by applicable regulations under
     Section 162(m) of the Code, by two or more "outside directors" (as defined
     in applicable regulations thereunder) and (ii) to the extent required by
     Rule 16b-3 promulgated under the Securities Exchange Act of 1934 or any
     successor provision ("Rule 16b-3"), by two or more independent directors
     appointed by and holding office at the pleasure of the Board, each of whom
     is both a "non-employee director" as defined by Rule 16b-3 and an "outside
     director" for purposes of Section 162(m) of the Code. Hereinafter, all
     references in this Plan to the "Committee" shall mean the Board if no
     Committee has been appointed. Subject to ratification of the grant or
     authorization of each Stock Right by the Board (if so required by
     applicable state law), and subject to the terms of the Plan, the Committee
     shall have the authority to (i) determine to whom (from among the class of
     employees eligible under paragraph 3 to receive ISOs) ISOs shall be
     granted, and to whom (from among the class of individuals and entities
     eligible under paragraph 3 to receive Non-Qualified Options and Awards and
     to make Purchases) Non-Qualified Options, Awards and authorizations to make
     Purchases may be granted; (ii) determine the time or times at which Options
     or Awards shall be granted or Purchases made; (iii) determine the purchase
     price of shares subject to each Option or Purchase, which prices shall not
     be less than the minimum price specified in paragraph 6; (iv) determine
     whether each Option granted shall be an ISO or a Non-Qualified Option; (v)
     determine (subject to paragraph 7) the time or times when each Option shall
     become exercisable and the duration of the exercise period; (vi) extend the
     period during which outstanding Options may be exercised; (vii) determine
     whether restrictions such as repurchase options are to be imposed on shares
     subject to Options, Awards and Purchases and the nature of such
     restrictions, if any, (viii) interpret the Plan
<PAGE>

     and prescribe and rescind rules and regulations relating to it and (ix) to
     amend any outstanding Stock Rights; provided that no such amendment shall
     effect the rights of optionees under the Plan without the written consent
     of such optionee. If the Committee determines to issue a Non-Qualified
     Option, it shall take whatever actions it deems necessary, under Section
     422 of the Code and the regulations promulgated thereunder, to ensure that
     such Option is not treated as an ISO. The interpretation and construction
     by the Committee of any provisions of the Plan or of any Stock Right
     granted under it shall be final unless otherwise determined by the Board.
     The Committee may from time to time adopt such rules and regulations for
     carrying out the Plan as it may deem advisable. No member of the Board or
     the Committee shall be liable for any action or determination made in good
     faith with respect to the Plan or any Stock Right granted under it.

          B.  Committee Actions. The Committee may select one of its members as
     its chairman, and shall hold meetings at such time and places as it may
     determine. A majority of the Committee shall constitute a quorum and acts
     of a majority of the members of the Committee at a meeting at which a
     quorum is present, or acts reduced to or and approved in writing by all the
     members of the Committee (if consistent with applicable state law), shall
     be the valid acts of the Committee. 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, or remove all members
     of the Committee and thereafter directly administer the Plan.

          C.  Grant of Stock Rights to Board Members. Stock Rights may be
     granted to members of the Board. All grants of Stock Rights to members of
     the Board shall in all other respects be made in accordance with the
     provisions of this Plan applicable to other eligible persons. Consistent
     with the provisions of the first sentence of paragraph 2(A) above, members
     of the Board who either (i) are eligible to receive grants of Stock Rights
     pursuant to the Plan or (ii) have been granted Stock Rights may vote on any
     matters affecting the administration of the Plan or the grant of any Stock
     Rights pursuant to the Plan, except that no such member shall act upon the
     granting to himself or herself of Stock Rights, but any such member may be
     counted in determining the existence of a quorum at any meeting of the
     Board during which action is taken with respect to the granting to such
     member of Stock Rights.

     3.   Eligible Employees and Others. ISOs may be granted only to employees
of the Company or any Related Company. Non-Qualified Options, Awards and
authorizations to make Purchases may be granted to any employee, officer or
director (whether or not also an employee) of the Company or any Related
Company. Non-Qualified Options, Awards and authorizations to make Purchases may
be also granted to consultants of the Company or any Related Company if, and
only if, (i) the consultant or adviser renders bona fide services to the Company
or any Related Company; (ii) the services rendered by the consultant or adviser
are not in connection with the offer or sale of securities in a capital-raising
transaction and do not directly or indirectly promote or maintain a market for
the securities of the Company or any Related Company; and (iii) the consultant
or adviser is a natural person who has contracted directly with the Company or
any Related Company to render such services. The granting of any

                                       2
<PAGE>

Stock Right to any individual or entity shall neither entitle that individual or
entity to, nor disqualify such individual or entity from, participation in any
other grant of Stock Rights.

     4.   Stock Authorized for Issuance under the Plan.

          A.  Number of Shares.  The stock subject to Stock Rights shall be
     authorized but unissued shares of common stock of the Company, par value
     $.01 per share (the "Common Stock"), or shares of Common Stock reacquired
     by the Company in any manner. The aggregate number of shares which may be
     issued pursuant to the Plan is [______________], subject to adjustment as
     provided in paragraph 13. If any Stock Right granted under the Plan shall
     expire or terminate for any reason without having been exercised in full or
     shall cease for any reason to be exercisable in whole or in part or shall
     be repurchased by the Company, the shares of Common Stock subject to such
     Stock Right shall again be available for grants of Stock Rights under the
     Plan, provided however, that the cumulative number of such shares that may
     be so reissued under the Plan shall not exceed [______________].

          B.  Per Participant Limit.  Subject to adjustment as provided in
     paragraph 13, no participant in the Plan may be granted Stock Rights during
     any one fiscal year to purchase more than [_____________] shares of Common
     Stock.

     5.   Granting of Stock Rights.  Stock Rights may be granted after the
Plan is approved by the Board, and Stock Rights may no longer be granted after
the tenth (10th) anniversary of the date that the Plan is adopted by the Board.
The date of grant of a Stock Right under the Plan shall be the date specified by
the Committee at the time it grants the Stock Right; provided, however, that
such date shall not be prior to the date on which the Committee acts to approve
the grant.

     6.   Minimum Option Price; ISO Limitations.

          A.  Price for Non-Qualified Options, Awards and Purchases.  The
     exercise price per share specified in the agreement relating to each Non-
     Qualified Option granted, and the purchase price per share of stock granted
     in any Award or authorized as a Purchase, under the Plan shall in no event
     be less than the minimum legal consideration required therefor under the
     laws of any jurisdiction in which the Company or its successors in interest
     may be organized. Non-Qualified Options granted under the Plan, with an
     exercise price less than the fair market value per share of Common Stock on
     the date of grant, are intended to qualify as performance-based
     compensation under Section 162(m) of the Code and any applicable
     regulations thereunder. Any such Non-Qualified Options granted under the
     Plan shall be exercisable only upon the attainment of a pre-established,
     objective performance goal established by the Committee and subject to any
     additional limitations set forth in Section 162(m) of the Code, including
     all amendments thereto.

          B.  Price for ISOs.  The exercise price per share specified in
     the agreement relating to each ISO granted under the Plan shall not be less
     than the fair market value per share of Common Stock on the date of such
     grant. In the case of an ISO to be granted

                                       3
<PAGE>

     to an employee owning stock possessing more than ten percent (10%) of the
     total combined voting power of all classes of stock of the Company or any
     Related Company, the price per share specified in the agreement relating to
     such ISO shall not be less than one hundred ten percent (110%) of the fair
     market value per share of Common Stock on the date of grant. For purposes
     of determining stock ownership under this paragraph, the rules of Section
     424(d) of the Code shall apply.

          C.  $100,000 Annual Limitation on ISO Vesting. Each eligible employee
     may be granted Options treated as ISOs only to the extent that, in the
     aggregate under this Plan and all incentive stock option plans of the
     Company and any Related Company, ISOs do not become exercisable for the
     first time by such employee during any calendar year with respect to stock
     having a fair market value (determined at the time the ISOs were granted)
     in excess of $100,000. The Company intends to designate any Options granted
     in excess of such limitation as Non-Qualified Options.

          D.  Determination of Fair Market Value. If, at the time an Option is
     granted under the Plan, the Company's Common Stock is publicly traded,
     "fair market value" shall be determined as of the date of grant or, if the
     prices or quotes discussed in this sentence are unavailable for such date,
     the last business day for which such prices or quotes are available prior
     to the date of grant and shall mean (i) the average (on that date) of the
     high and low prices of the Common Stock on the principal national
     securities exchange on which the Common Stock is traded, if the Common
     Stock is then traded on a national securities exchange; or (ii) the last
     reported sale price (on that date) of the Common Stock on the Nasdaq
     National Market, if the Common Stock is not then traded on a national
     securities exchange; or (iii) the closing bid price (or average of bid
     prices) last quoted (on that date) by an established quotation service for
     over-the-counter securities, if the Common Stock is not reported on the
     Nasdaq National Market. If the Common Stock is not publicly traded at the
     time an Option is granted under the Plan, "fair market value" shall mean
     the fair value of the Common Stock as determined by the Committee after
     taking into consideration all factors which it deems appropriate,
     including, without limitation, recent sale and offer prices of the Common
     Stock in private transactions negotiated at arm's length.

     7.  Option Duration.  Subject to earlier termination as provided in
paragraphs 9 and 10 or in the agreement relating to such Option, each Option
shall expire on the date specified by the Committee, but not more than (i) ten
years from the date of grant in the case of Options generally, and (ii) five
years from the date of grant in the case of ISOs granted to an employee owning
stock possessing more than ten percent (10%) of the total combined voting power
of all classes of stock of the Company or any Related Company, as determined
under paragraph 6(B). Subject to earlier termination as provided in paragraphs 9
and 10, the term of each ISO shall be the term set forth in the original
instrument granting such ISO, except with respect to any part of such ISO that
is converted into a Non-Qualified Option pursuant to paragraph 17.

     8.  Exercise of Option.  Subject to the provisions of paragraphs 9
through 12, each Option granted under the Plan shall be exercisable as follows:

                                       4
<PAGE>

          A.  Vesting.  The Option shall either be fully exercisable on the date
     of grant or shall become exercisable thereafter in such installments as the
     Committee may specify.

          B.  Full Vesting of Installments.  Once an installment becomes
     exercisable it shall remain exercisable until expiration or termination of
     the Option, unless otherwise specified by the Committee.

          C.  Partial Exercise.  Each Option or installment may be exercised at
     any time or from time to time, in whole or in part, for up to the total
     number of shares with respect to which it is then exercisable.

          D.  Acceleration of Vesting.  The Committee shall have the right to
     accelerate the date that any installment of any Option becomes exercisable;
     provided that the Committee shall not, without the consent of an optionee,
     accelerate the permitted exercise date of any installment of any Option
     granted to any employee as an ISO (and not previously converted into a Non-
     Qualified Option pursuant to paragraph 17) if such acceleration would
     violate the annual vesting limitation contained in Section 422(d) of the
     Code, as described in paragraph 6(C).

     9.   Termination of Employment. Unless otherwise specified in the agreement
relating to such ISO, if an ISO optionee ceases to be employed by the Company
and all Related Companies other than by reason of death or disability as defined
in paragraph 10, no further installments of his or her ISOs shall become
exercisable, and his or her ISOs shall terminate on the earlier of (a) ninety
(90) days after the date of termination of his or her employment, or (b) their
specified expiration dates, except to the extent that such ISOs (or unexercised
installments thereof) have been converted into Non-Qualified Options pursuant to
paragraph 17. For purposes of this paragraph 9, employment shall be considered
as continuing uninterrupted during any bona fide leave of absence (such as those
attributable to illness, military obligations or governmental service); provided
that the period of such leave does not exceed 90 days or, if longer, any period
during which such optionee's right to reemployment is guaranteed by statute. A
bona fide leave of absence with the written approval of the Committee shall not
be considered an interruption of employment under this paragraph 9, provided
that such written approval contractually obligates the Company or any Related
Company to continue the employment of the optionee after the approved period of
absence. ISOs granted under the Plan shall not be affected by any change of
employment within or among the Company and Related Companies, so long as the
optionee continues to be an employee of the Company or any Related Company.
Nothing in the Plan shall be deemed to give any grantee of any Stock Right the
right to be retained in employment or other service by the Company or any
Related Company for any period of time.

     10.  Death; Disability.

          A.  Death.  If an ISO optionee ceases to be employed by the
     Company and all Related Companies by reason of his or her death, any ISO
     owned by such optionee may be exercised, to the extent otherwise
     exercisable on the date of death, by the estate, personal representative or
     beneficiary who has acquired the ISO by will or by the laws of

                                       5
<PAGE>

     descent and distribution, until the earlier of (i) the specified expiration
     date of the ISO or (ii) 180 days from the date of the optionee's death.

          B.  Disability.  If an ISO optionee ceases to be employed by the
     Company and all Related Companies by reason of his or her disability, such
     optionee shall have the right to exercise any ISO held by him or her on the
     date of termination of employment, for the number of shares for which he or
     she could have exercised it on that date, until the earlier of (i) the
     specified expiration date of the ISO or (ii) 180 days from the date of the
     termination of the optionee's employment. For the purposes of the Plan, the
     term "disability" shall mean "permanent and total disability" as defined in
     Section 22(e)(3) of the Code or any successor statute.

     11.  Assignability.  No Stock Right shall be assignable or transferable by
the grantee except by will, by the laws of descent and distribution. Except as
set forth in the previous sentence, during the lifetime of a grantee each Stock
Right shall be exercisable only by such grantee.

     12.  Terms and Conditions of Options.  Options shall be evidenced by
instruments (which need not be identical) in such forms as the Committee may
from time to time approve. Such instruments shall conform to the terms and
conditions set forth in paragraphs 6 through 11 hereof and may contain such
other provisions as the Committee deems advisable which are not inconsistent
with the Plan, including restrictions applicable to shares of Common Stock
issuable upon exercise of Options. The Committee may specify that any Non-
Qualified Option shall be subject to the restrictions set forth herein with
respect to ISOs, or to such other termination and cancellation provisions as the
Committee may determine. The Committee may from time to time confer authority
and responsibility on one or more of its own members and/or one or more officers
of the Company to execute and deliver such instruments. The proper officers of
the Company are authorized and directed to take any and all action necessary or
advisable from time to time to carry out the terms of such instruments.

     13.  Adjustments.  Upon the occurrence of any of the following events, an
optionee's rights with respect to Options granted to such optionee hereunder
shall be adjusted as hereinafter provided, unless otherwise specifically
provided in the written agreement between the optionee and the Company relating
to such Option:

          A.  Stock Dividends and Stock Splits.  If the shares of Common Stock
     shall be subdivided or combined into a greater or smaller number of shares
     or if the Company shall issue any shares of Common Stock as a stock
     dividend on its outstanding Common Stock, the number of shares of Common
     Stock deliverable upon the exercise of Options shall be appropriately
     increased or decreased proportionately, and appropriate adjustments shall
     be made in the purchase price per share to reflect such subdivision,
     combination or stock dividend.

          B.  Consolidations or Mergers.  If the Company is to be consolidated
     with or acquired by another entity in a merger or other reorganization in
     which the holders of the outstanding voting stock of the Company
     immediately preceding the consummation of such event, shall, immediately
     following such event, hold, as a group, less than a

                                       6
<PAGE>

     majority of the voting securities of the surviving or successor entity, or
     in the event of a sale of all or substantially all of the Company's assets
     or otherwise (each, an "Acquisition"), the Committee or the board of
     directors of any entity assuming the obligations of the Company hereunder
     (the "Successor Board"), shall, as to outstanding Options, either (i) make
     appropriate provision for the continuation of such Options by substituting
     on an equitable basis for the shares then subject to such Options either
     (a) the consideration payable with respect to the outstanding shares of
     Common Stock in connection with the Acquisition, (b) shares of stock of the
     surviving or successor corporation or (c) such other securities as the
     Successor Board deems appropriate, the fair market value of which shall not
     materially exceed the fair market value of the shares of Common Stock
     subject to such Options immediately preceding the Acquisition; or (ii) upon
     written notice to the optionees, provide that all Options must be
     exercised, to the extent then exercisable or to be exercisable as a result
     of the Acquisition, within a specified number of days of the date of such
     notice, at the end of which period the Options shall terminate; or (iii)
     terminate all Options in exchange for a cash payment equal to the excess of
     the fair market value of the shares subject to such Options (to the extent
     then exercisable or to be exercisable as a result of the Acquisition) over
     the exercise price thereof.

          C.  Recapitalization or Reorganization.  In the event of a
     recapitalization or reorganization of the Company (other than a transaction
     described in subparagraph B above) pursuant to which securities of the
     Company or of another corporation are issued with respect to the
     outstanding shares of Common Stock, an optionee upon exercising an Option
     shall be entitled to receive for the purchase price paid upon such exercise
     the securities he or she would have received if he or she had exercised
     such Option prior to such recapitalization or reorganization.

          D.  Modification of ISOs.  Notwithstanding the foregoing, any
     adjustments made pursuant to subparagraphs A, B or C with respect to ISOs
     shall be made only after the Committee, after consulting with counsel for
     the Company, determines whether such adjustments would constitute a
     "modification" of such ISOs (as that term is defined in Section 424 of the
     Code) or would cause any adverse tax consequences for the holders of such
     ISOs. If the Committee determines that such adjustments made with respect
     to ISOs would constitute a modification of such ISOs or would cause adverse
     tax consequences to the holders, it may refrain from making such
     adjustments.

          E.  Dissolution or Liquidation.  In the event of the proposed
     dissolution or liquidation of the Company, each Option shall terminate
     immediately prior to the consummation of such proposed action or at such
     other time and subject to such other conditions as shall be determined by
     the Committee.

          F.  Issuances of Securities.  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 subject to Options. No adjustments

                                       7
<PAGE>

     shall be made for dividends paid in cash or in property other than
     securities of the Company.

          G.  Fractional Shares.  No fractional shares shall be issued under the
     Plan and the optionee shall receive from the Company cash in lieu of such
     fractional shares.

          H.  Adjustments.  Upon the happening of any of the events described in
     subparagraphs A, B or C above, the class and aggregate number of shares set
     forth in paragraph 4 hereof that are subject to Stock Rights which
     previously have been or subsequently may be granted under the Plan shall
     also be appropriately adjusted to reflect the events described in such
     subparagraphs. The Committee or the Successor Board shall determine the
     specific adjustments to be made under this paragraph 13 and, subject to
     paragraph 2, its determination shall be conclusive.

     14.  Means of Exercising Options. An Option (or any part or installment
thereof) shall be exercised by giving written notice to the Company at its
principal office address, or to such transfer agent as the Company shall
designate. Such notice shall identify the Option being exercised and specify the
number of shares as to which such Option is being exercised, accompanied by full
payment of the purchase price therefor either (a) in United States dollars in
cash or by check, (b) at the discretion of the Committee, through delivery of
shares of Common Stock having a fair market value equal as of the date of the
exercise to the cash exercise price of the Option, (c) at the discretion of the
Committee, by delivery of the grantee's personal recourse note bearing interest
payable not less than annually at no less than 100% of the lowest applicable
Federal rate, as defined in Section 1274(d) of the Code, (d) at the discretion
of the Committee and consistent with applicable law, through the delivery of an
assignment to the Company of a sufficient amount of the proceeds from the sale
of the Common Stock acquired upon exercise of the Option and an authorization to
the broker or selling agent to pay that amount to the Company, which sale shall
be at the participant's direction at the time of exercise, or (e) at the
discretion of the Committee, by any combination of (a), (b), (c) and (d) above.
If the Committee exercises its discretion to permit payment of the exercise
price of an ISO by means of the methods set forth in clauses (b), (c), (d) or
(e) of the preceding sentence, such discretion shall be exercised in writing at
the time of the grant of the ISO in question. The holder of an Option shall not
have the rights of a shareholder with respect to the shares covered by such
Option until the date of issuance of a stock certificate to such holder for such
shares. Except as expressly provided above in paragraph 13 with respect to
changes in capitalization and stock dividends, no adjustment shall be made for
dividends or similar rights for which the record date is before the date such
stock certificate is issued.

     15.  Conditions on Delivery of Stock. The Company shall not be obligated to
deliver any shares of Common Stock pursuant to the Plan or to remove
restrictions from shares previously delivered under the Plan until (i) all
conditions of the Award have been met or removed to the satisfaction of the
Company, (ii) in the opinion of the Company's counsel, all other legal matters
in connection with the issuance and delivery of such shares have been satisfied,
including any applicable securities laws and any applicable stock exchange or
stock market rules and regulations, and (iii) the optionee has executed and
delivered to the Company such representations or agreements as the Company may
consider appropriate to satisfy the requirements of any applicable laws, rules
or regulations.

                                       8
<PAGE>

     16.  Term and Amendment of Plan.  This Plan shall be submitted for the
approval of the Company's stockholders within twelve months after the date of
the Board's initial approval of the Plan. The Plan shall expire after the 10th
anniversary of the date that the Plan is approved by the Board (except as to
Options outstanding on that date).

               The Board may at any time wholly or partially amend, alter,
          suspend or terminate the Plan. However, without approval of the
          Company's stockholders given within twelve (12) months before or after
          action by the Board, no action of the Board may, except as provided in
          paragraph 13, increase the limits imposed in paragraph 4 on the
          maximum number of shares which may be issued under the Plan or extend
          the term of the Plan under this paragraph 16.

               The Board shall obtain stockholder approval of any Plan amendment
          to the extent necessary and desirable to comply with applicable tax
          laws.

     No amendment, alteration, suspension or termination of the Plan shall
impair the rights of any optionee, unless mutually agreed otherwise between the
optionee and the Company, which agreement must be in writing and signed by the
optionee and the Company. Termination of the Plan shall not affect the
Committee's ability to exercise the powers granted to it hereunder with respect
to Stock Rights granted or awarded under the Plan prior to the date of such
termination.

     17.  Conversion of ISOs into Non-Qualified Options.  The Committee, at the
written request or with the written consent of any optionee, may in its
discretion take such actions as may be necessary to convert such optionee's ISOs
(or any installments or portions of installments thereof) that have not been
exercised on the date of conversion into Non-Qualified Options at any time prior
to the expiration of such ISOs, regardless of whether the optionee is an
employee of the Company or a Related Company at the time of such conversion.
Such actions may include, but shall not be limited to, extending the exercise
period or reducing the exercise price of the appropriate installments of such
ISOs. At the time of such conversion, the Committee (with the consent of the
optionee) may impose such conditions on the exercise of the resulting Non-
Qualified Options as the Committee in its discretion may determine, provided
that such conditions shall not be inconsistent with this Plan. Nothing in the
Plan shall be deemed to give any optionee the right to have such optionee's ISOs
converted into Non-Qualified Options, and no such conversion shall occur until
and unless the Committee takes appropriate action.

     18.  Application of Funds.  The proceeds received by the Company from the
sale of shares pursuant to Options granted and Purchases authorized under the
Plan shall be used for general corporate purposes.

     19.  Notice to Company of Disqualifying Disposition.  By accepting an ISO
granted under the Plan, each optionee agrees to notify the Company in writing
immediately after such optionee makes a Disqualifying Disposition (as described
in Sections 421, 422 and 424 of the Code and regulations thereunder) of any
stock acquired pursuant to the exercise of ISOs granted under the Plan. A
Disqualifying Disposition is generally any disposition occurring on or

                                       9
<PAGE>

before the later of (a) the date two years following the date the ISO was
granted or (b) the date one year following the date the ISO was exercised.

     20.  Withholding of Additional Income Taxes. Upon the exercise of a Non-
Qualified Option, the grant of an Award, the making of a Purchase of Common
Stock for less than its fair market value, the making of a Disqualifying
Disposition (as defined in paragraph 19), the vesting or transfer of restricted
stock or securities acquired on the exercise of an Option hereunder, or the
making of a distribution or other payment with respect to such stock or
securities, the Company may withhold taxes in respect of amounts that constitute
compensation includible in gross income. The Committee in its discretion may
condition (i) the exercise of an Option, (ii) the grant of an Award, (iii) the
making of a Purchase of Common Stock for less than its fair market value, or
(iv) the vesting or transferability of restricted stock or securities acquired
by exercising an Option, on the grantee's making satisfactory arrangement for
such withholding. Such arrangement may include payment by the grantee in cash or
by check of the amount of the withholding taxes or, at the discretion of the
Committee, by the grantee's delivery of previously held shares of Common Stock
or the withholding from the shares of Common Stock otherwise deliverable upon
exercise of a Option shares having an aggregate fair market value equal to the
amount of such withholding taxes. Notwithstanding any other provision of the
Plan, the number of shares of Common Stock which may be withheld upon the
exercise or vesting of any right under the Plan, or which may be repurchased
from the participant within six months after such shares were acquired by the
participant from the Company, in order to satisfy the participant's federal and
state income and payroll tax liabilities with respect to the exercise or vesting
of the right shall be limited to the number of shares which have a fair market
value equal to the aggregate amount of such liabilities based on the minimum
statutory withholding rates for federal and state tax income and payroll tax
purposes that are applicable to such supplemental taxable income.

     21.  No Right To Employment or Other Status.  No person shall have any
claim or right to be granted a Stock Right, and the grant of a Stock Right shall
not be construed as giving the grantee the right to continued employment or any
other relationship with the Company. The Company expressly reserves the right at
any time to dismiss or otherwise terminate its relationship with a grantee free
from any liability or claim under the Plan.

     22.  Governmental Regulation.  The Company's obligation to sell and deliver
shares of the Common Stock under this Plan is subject to the approval of any
governmental authority required in connection with the authorization, issuance
or sale of such shares. Government regulations may impose reporting or other
obligations on the Company with respect to the Plan. For example, the Company
may be required to send tax information statements to employees and former
employees that exercise ISOs under the Plan, and the Company may be required to
file tax information returns reporting the income received by grantees of
Options in connection with the Plan.

     23.  Governing Law.  The validity and construction of the Plan and the
instruments evidencing Options shall be governed by the laws of the state of
Delaware.

                                       10

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