Document:

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                                                                   Exhibit 10.13

                              MANAGEMENT AGREEMENT

         THIS MANAGEMENT AGREEMENT ("Agreement"), is made this ______ day of
November, 1999, by and among J.R. CAPITAL, CORP. ("J.R. Capital"), a Florida
corporation, with offices located at 2075 N. Powerline Road, Pompano Beach,
Florida 33069, Florida and its wholly owned subsidiaries; Atlas-Homestead, Inc.;
Atlas Naples, Inc.; Atlas-Lox Road, Inc.; Atlas Riviera, Inc.; Atlas Transoil,
Inc.; Atlas-Davie, Inc.; and Atlas- Royal Crown, Inc. (collectively, the
"Subsidiaries" and collectively with J.R. Capital, the "Owner"), and DELTA
RECYCLING, INC., a Florida corporation, with offices located at 2075 N.
Powerline Road, Pompano Beach, Florida 33069 ("Manager").

                                R E C I T A L S :

A.       Owner currently owns or has the right to possession of certain
         properties and facilities more specifically described on Exhibit A
         below (the "Facilities"). Owner desires to retain Manager as an
         independent contractor to provide professional, operational and
         administrative management services of the Facilities in order to
         maintain continuing operations of the Facilities and to assist Owner
         with its efforts to maximize its income from the Facilities.

B.       Manager desires to provide such services for Owner as an independent
         contractor and not as Owner's employee.

                              A G R E E M E N T S :

         NOW, THEREFORE, in consideration of the mutual agreements herein
contained, and other good and valuable consideration, the receipt and adequacy
of which are hereby acknowledged, and intending to be legally bound, the parties
agree as follows:

                                    ARTICLE I

                ESTABLISHMENT OF INDEPENDENT CONTRACTOR AND TERM

         Owner retains the Manager as an independent contractor and Manager
agrees to provide professional operational and administrative management
services to the Owner in connection with the operation of the Facilities upon
the terms, covenants and conditions contained in this Agreement.

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         The term of this Agreement shall be effective as of November __, 1999,
and be effective until October 31, 2004, unless terminated earlier or extended
pursuant to Article IV of this Agreement.

                                   ARTICLE II

                                   PROCEDURES

         2.1 OWNER'S DELIVERY OF DOCUMENTS. As soon as possible after the
execution of this Agreement, Owner shall endeavor to provide to the Manager such
of the following documents and information related to the Facilities as are in
its possession and control:

                  (a)      copies of all documents under which Owner holds title
                           or the right to possession of the Facilities;

                  (b)      copies of all permits, licenses, environmental
                           studies and reports, maps and other similar
                           information relating to each Facility;

                  (c)      copies of all local zoning and local permits held by
                           Owner in connection with each Facility;

                  (d)      copies of insurance policies and related
                           correspondence with insurance carriers or brokers;

                  (e)      copies of such other documents which Owner may deem
                           pertinent to continuing operations or which Manager
                           may request, and

                  (f)      copies of all recent operating statements, budgets,
                           and reports in Owner's possession.

         2.2 MANAGER'S DUTIES. Manager shall do the following:

                  (a)      provide all administrative and managerial functions
                           for the Owner including, but not limited to,
                           accounting services, environmental oversight,
                           environmental reporting to all necessary governmental
                           agencies and to Owner's lender, GMAC Commercial
                           Credit LLC ("GMACCC") to the extent required in any
                           loan documentation between Owner and GMACCC, as the
                           same may be amended from time to time (the "GMACCC
                           Credit Facility"), sales and general administrative
                           services and employ such personnel, at its own
                           expense, necessary to accomplish such functions,
                           except for non-administrative

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                           or managerial personnel located at each Facility who
                           shall be employed by Owner;

                  (b)      Manager shall maintain separate books and records,
                           for, and in the name of, each Owner which will not be
                           consolidated or commingled with the books and records
                           of the Manager or any of its affiliates. The Owner
                           shall continue to collect its accounts receivable
                           with the assistance of the Manager and maintain its
                           blocked account arrangement with ________. All bank
                           accounts shall continue to be maintained in the name
                           of the Owner and the Owner shall continue to be
                           responsible for the timely payment of all expenses
                           and obligations. In the event the Manager shall come
                           into possession of any property of the Owner, such
                           property shall be held by the Manager, in trust for
                           the Owner, and shall be immediately remitted to the
                           Owner. The Manager shall not have the right to enter
                           into contracts which obligate the Owner, or incur
                           indebtedness in the name of the Owner, unless the
                           Manager has received the Owner's written consent to
                           enter into such contract or incur such obligation.

                  (c)      Manager or any of its Affiliates will allow each of
                           the Facilities to dispose of residue at any of the
                           Facilities owned or operated by Manager or any of its
                           Affiliates at a rate equal to the lesser of (i) fair
                           market value or (ii) the same rate which Manager
                           charges itself on an internal basis for disposal of
                           its own residue. Manager will allow, but not require,
                           each Facility to share in the benefit obtained by
                           Manager or any of its Affiliates from any waste
                           disposal contracts between Manager or any of its
                           Affiliates and any third party, to the extent
                           permissible under any such agreement.

                  (d)      review all documents and information supplied to
                           Manager pursuant to Section 2.1 and advise Owner of
                           any discrepancies, problems or matters which may
                           require immediate attention;

                  (e)      consult with Owner regarding appropriate types and
                           amounts of insurance, under policies and from
                           carriers acceptable to Owner and GMACCC, in order to
                           comply with the GMACCC Credit Facility and the normal
                           customs and practices and applicable laws and
                           agreements relating to the ownership, use, operation
                           and occupancy of the Facilities, including special
                           policies required since these are waste facilities;
                           all policies shall name Owner and GMACCC as insureds,
                           as their interests may appear;

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                  (f)      provide in accordance with Owner's requirements, a
                           financial accounting and control system to provide
                           periodic financial operating reports;

                  (g)      report to Owner and GMACCC on such other matters as
                           Manager, Owner and/or GMACCC deem pertinent to
                           operations or Owner's efforts to sell the Facilities;

                  (h)      prepare all projections, financial accounting and
                           other reports required under the GMACCC Credit
                           Facility; and

                  (i)      furnish copies to Owner, and to GMACCC to the extent
                           required by the GMACCC Credit Facility, as and when
                           received, of (i) any notices of governmental
                           violations, (ii) notices, inspection and other
                           reports from any other regulatory authority, (iii)
                           insured or uninsured claims and (iv) any other
                           information materially affecting the ownership, use,
                           operation or occupancy of the Facilities.

                                   ARTICLE III

                             MANAGER'S COMPENSATION

         3.1 MANAGEMENT FEE. During the period that this Agreement is in full
force and effect, Manager shall receive as payment for services rendered under
this Agreement a fee in an amount equal to the total amount on Exhibit B
attached hereto (as amended from time to time) plus 10% (the "Management Fee")
provided, however, that at no time shall the Management Fee exceed the amount
set forth by the Owner in any projections provided to, and approved by GMACCC,
pursuant to the GMACCC Credit Facility. The Management Fee shall be paid in
monthly installments in advance on the first day of each month, provided,
however, that the Management Fee for any fractional month at the beginning or
end of the term of this Agreement shall be prorated. Manager, any affiliate of
Manager, or any principal of Manager is expressly prohibited from receiving any
other fees, charges or other income whatsoever from any service related to the
Manager's operation of the Facilities, without the express written consent of
the Owner and GMACCC.

         3.2 ADDITIONAL BENEFITS TO MANAGER AND OWNER. Owner and Manager will
allow each other, and any of their Affiliates, to utilize any of Owner's
Facilities or Manager's facilities for a price equal to ninety (90%) percent of
the fair market value for such services charged to non-affiliate third parties.

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                                   ARTICLE IV

                                   TERMINATION

         4.1 TERMINATION. The Owner may terminate this Agreement at any time
without cause with such termination to be effective thirty (30) days after
written notice has been received by the Manager from the Owner. The Owner may
terminate this Agreement at any time for cause immediately upon written notice
to Manager. The Manager can terminate this Agreement and such termination shall
be effective ninety (90) days after written notice of such termination has been
received by the Owner from the Manager. Any notice of termination sent by either
Owner or Manager shall also be sent by such party to GMACCC. In the event the
Owner terminates for cause, the Owner shall be entitled to offset its damages
against any theretofore earned but unpaid compensation otherwise due to Manager.
Nothing herein shall preclude Owner from recovering such damages from any other
assets of the Manager.

         4.2 TERMINATION UPON SALE OR CHANGE OF CONTROL OF MANAGER. Unless
sooner terminated, this Agreement shall terminate (i) as to any individual
Owner, upon the transfer of title of such Owner's Facility or (ii) as to all
entities comprising the Owner, upon the transfer of title to all of the
Facilities. Unless sooner terminated, this Agreement shall terminate upon the
change of control of the ownership of Manager or if Messrs. Patrick F. Marzano
shall no longer act as an employee of Manager responsible for Manager's
performance of this Agreement or Jack R. Casagrande shall no longer be a
shareholder of Manager's parent, Star Services, Inc.

         4.3 SURVIVAL OF COVENANTS. Termination of this Agreement under any of
the provisions herein shall not release Manager for liability for failure to
perform any of the duties or obligations of Manager as expressed herein and
required to be performed prior to such termination. Upon termination, Manager
shall forthwith, at the instruction of Owner, (a) cease to continue to collect
all obligations owed to the Facilities on behalf and in the name of the Owner
and otherwise proceed with an orderly conclusion of Manager's obligations under
this Agreement, (b) surrender and deliver to Owner or its designee (i)
possession of the Facilities, (ii) all rents and income of the Facilities, and
(iii) other monies of Owner on hand and in any bank account; (c) deliver to
Owner as received any monies due Owner under this Agreement but received after
such termination; (d) deliver to Owner or its designee all materials and
supplies, keys and documents, and such other accounting, papers and records
pertaining to the Facilities or this Agreement; and (e) with Owner's prior
approval, assign and deliver to Owner or its designee such existing contracts,
permits and licenses relating to the operations and maintenance of the
Facilities to the extent such contracts, permits and licenses, if any, were not
initially applied for or granted in the name of the Owner.

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         4.4 TERMINATION END OF TERM. Unless previously terminated earlier as
provided herein, this Agreement shall also terminate at the end of the term
hereof as set forth in Article I herein.

                                    ARTICLE V

                              COVENANTS OF MANAGER

         The Manager covenants and agrees with the Owner as follows:

         5.1 MANAGEMENT AND MARKETING OF THE FACILITIES. Manager shall manage
and market the business and services of the Facilities so that the Facilities
will be operated and maintained with maximum profit in a first class manner and
in accordance with sound facilities management practice.

         5.2 REQUIRED RETURNS AND REPORTS. Manager shall execute and file
punctually when due all forms, reports and returns and pay when due all amounts
required by law relating to the employment of personnel and to the operation of
the Facilities.

         5.3 COMPLIANCE WITH LEGAL REQUIREMENTS. Manager shall take such action
as may be necessary to obtain and maintain in the name of the Owner, in full
force and effect, all necessary licenses, and permits and to comply with any and
all laws, regulations, orders or requirements necessary for full operation, use,
possession and occupancy of the Facilities from any federal, state, county or
municipal authority having jurisdiction thereover, and to comply with all
insurance policies.

         5.4 QUALIFICATION TO DO BUSINESS. The Manager hereby represents to the
Owner that Manager is qualified to do business and is in good standing in the
State where the Facilities are located and the Manager hereby covenants that
Manager shall maintain such qualification to do business throughout the term of
this Agreement. Manager has full right and authority to enter into this
Agreement and the Agreement is valid and enforceable.

         5.5 OWNER'S ACCESS TO FACILITIES AND ITS OPERATIONS. The Owner and
GMACCC shall at all times have the right of access to the Facilities and the
right to inspect the Facilities. Manager shall maintain at the Facilities or
such other places as may be approved by Owner, upon notice to GMACCC, a
comprehensive system of office records, books and accounts in a manner
satisfactory to Owner. Owner, GMACCC and others designated by the Owner or
GMACCC shall have access at all times to such records, accounts and books and to
all vouchers, files and all other material pertaining to the Facilities and this
Agreement, all of which Manager agrees to keep safe, available and separate from
any records not having to do with the Facilities.

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         5.6 LITIGATION. Manager shall promptly upon receipt of any and all
Notices, Summons, Complaints, Petitions, Orders or any other form of process,
served or otherwise received at the Facilities, whether as a result of service
by mail, personal delivery, or otherwise, and whether as a result of the
assertion of federal, state, county or municipal jurisdiction, and in no event
later than twenty-four (24) hours from the time of receipt, forward, or cause to
be forwarded, same to Owner and to GMACCC, to the extent required by the GMACCC
Credit Facility and proceed as directed by the Owner, consistent with the terms
of the GMACCC Credit Facility.

                                   ARTICLE VI

                                  MISCELLANEOUS

         6.1 INDEMNIFICATION. Manager shall indemnify, defend, and hold Owner
harmless from and against any and all claims, damages, liabilities, costs,
expenses, actions, or suits of any kind resulting directly or indirectly from
fraud, negligence or wilful tort perpetrated by or on the part of Manager's
officers, employees, agents or representatives.

         6.2 ASSIGNMENT. This Agreement shall not be assigned by either party
without the prior written consent of the other party and GMACCC.

         6.3 ADDITIONAL INFORMATION. From time to time the Owner may request
from the Manager and the Manager shall provide such other and additional
information as Owner desires.

         6.4 SUBORDINATION. This Agreement is subject and subordinate to all
notes, mortgages, security interests, liens, claims, and encumbrances now
affecting the Facilities.

         6.5 NO JOINT VENTURE. Owner and Manager shall not be construed as
partners, joint venturers or as members of a joint enterprise and neither shall
have the power to bind or obligate the other except as set forth in this
Agreement.

         6.6 NOTICES. All notices required or permitted by this Agreement shall
be in writing and shall be sent by (i) registered or certified mail, (ii)
personal delivery, (iii) telecopier, or (iv) reputable overnight delivery
service, addressed in the case of Owner to:

                           J.R. CAPITAL, CORP.
                           2075 N. Powerline Road
                           Pompano Beach, FL 33069
                           Attn:    Jack R. Casagrande

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and in the case of Manager to:

                           DELTA RECYCLING, INC.
                           2075 N. Powerline Road
                           Pompano Beach, FL 33069
                           Attn:    Patrick F. Marzano

and in the case of GMACCC to:

                           GMAC Commercial Credit LLC
                           1290 Avenue of the Americas
                           New York, New York 10104
                           Attn:    Frank Imperato

or to such other address or addressee as shall, from time to time, have been
designated by written notice by either party to the other party as herein
provided. All notices, demands and requests which shall be served upon either
party addressed in the manner aforesaid shall be deemed sufficiently served or
given for all purposes hereunder (a) upon the Owner if mailed, at the time such
notice, demand or request shall be received by the Owner addresses or, if
personally delivered, sent by telecopier or sent by overnight delivery, upon
receipt or (b) upon the Manager, if mailed three (3) days after such notice,
demand or request shall be mailed by Owner or, if personally delivered, sent by
overnight delivery, upon receipt.

         6.7 Each Subsidiary hereby irrevocably designates J.R. Capital to be
its attorney-in-fact and agent, and in such capacity to execute and deliver all
instruments, documents and writings or to take such other actions on behalf of
the Subsidiaries as may be necessary or appropriate to be taken on behalf of the
Owner pursuant to this Agreement.

         6.8 SEVERABILITY. The invalidity or unenforceability of any particular
paragraph or provision of this Agreement shall not affect the validity of the
remaining provisions of this Agreement. This Agreement shall be construed in all
respects as if such invalid or unenforceable provisions were omitted.

         6.9 TERMINATION SURVIVAL. The covenants of the Manager in this
Agreement including but not limited to the "indemnification" provision herein
and the provisions of Section 4.3 shall survive and remain enforceable after
termination by either party to this Agreement.

         6.10 GOVERNING LAW. This Agreement shall be governed and construed
under the law of the State of Florida, and the parties hereto consent to the
jurisdiction of said State.

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         6.11 HEADINGS. The headings used herein are for purposes of convenience
only and should not be used in construing the provisions hereof.

         6.12 ENTIRE AGREEMENT. This document represents the entire agreement
between the parties with respect to the subject matter hereof, and to the extent
inconsistent therewith, supersedes all other prior agreements, representations,
and covenants, oral or written provided, however, that in the event of any
inconsistency between this Agreement and the terms of the GMACCC Credit
Facility, the terms of the GMACCC Credit Facility shall control. This Agreement
cannot be amended, modified, waived or changed at any time or in any respect
except by an instrument in writing executed by Owner and Manager and consented
to, in writing, by GMACCC.

         6.13 SUCCESSOR AND ASSIGNS. Except as limited in Section 6.1 hereof,
this Agreement shall be binding upon and inure to the benefit of the parties,
legal representatives, successors and assigns.

         6.14 PRE-EXISTING CONDITION. Owner specifically agrees that manager has
not assumed any responsibilities or liability for pre-existing environmental or
other conditions.

         IN WITNESS WHEREOF, the parties have executed this Agreement as of the
day and year first above written.

                                     OWNER:

                                     J.R. CAPITAL, CORP.

                                     By: /s/ Jack R. Casagrande
                                         ---------------------------------------
                                     JACK R. CASAGRANDE, President

                                     ATLAS-HOMESTEAD, INC.

                                     By: /s/ Jack R. Casagrande
                                         ---------------------------------------
                                     JACK R. CASAGRANDE, President

                      [SIGNATURES CONTINUED ON NEXT PAGE]

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                    [SIGNATURES CONTINUED FROM PREVIOUS PAGE]

                                     ATLAS NAPLES, INC.

                                     By: /s/ Jack R. Casagrande
                                         ---------------------------------------
                                     JACK R. CASAGRANDE, President

                                     ATLAS-LOX ROAD, INC.

                                     By: /s/ Jack R. Casagrande
                                         ---------------------------------------
                                     JACK R. CASAGRANDE, President

                                     ATLAS RIVIERA, INC.

                                     By: /s/ Jack R. Casagrande
                                         ---------------------------------------
                                     JACK R. CASAGRANDE, President

                                     ATLAS-DAVIE, INC.

                                     By: /s/ Jack R. Casagrande
                                         ---------------------------------------
                                     JACK R. CASAGRANDE, President

                                     ATLAS-ROYAL CROWN, INC.

                                     By: /s/ Jack R. Casagrande
                                         ---------------------------------------
                                     JACK R. CASAGRANDE, President

                                     MANAGER:

                                     DELTA RECYCLING, INC.

                                     By: /s/ Patrick F. Marzano
                                         ---------------------------------------
                                     PATRICK F. MARZANO, President

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                                    EXHIBIT A

                                   FACILITIES

Name:
-----

Atlas-Riviera
Atlas-Lox Road
Atlas-Davie
Atlas-Homestead
Atlas-Naples

Transoil - Manatee
Transoil - Dade City

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                                    EXHIBIT B

                                 MANAGEMENT FEE

Management Fee to be paid to Delta Recycling will consist of:

Site Management as per attached schedule:                             608,589

Executive management & Administration                                 638,950

Office expenses, rent, phone, electric, etc.                          150,000

Total                                                               1,397,539

                                       12<PAGE>   1

                                                                     EXHIBIT 4.1

                 2000 MRV COMMUNICATIONS, INC. STOCK OPTION PLAN
                                FOR EMPLOYEES OF
                        FIBER OPTIC COMMUNICATIONS, INC.
                               (AN MRV SUBSIDIARY)

     1. PURPOSE. The purpose of the 2000 MRV Communications, Inc. Stock Option
Plan for Employees of Fiber Optic Communications, Inc. (the "Plan") is to induce
key employees of Fiber Optic Communications, Inc. ("FOCI"), a majority owned
subsidiary of MRV Communications, Inc. (the "Company"), to remain in the employ
of the Company or of any subsidiary of the Company, to encourage such employees
to secure or increase on reasonable terms their stock ownership in the Company
and to replace options such employees had or may have had with FOCI prior to its
acquisition by the Company. The board of directors of the Company believes the
Plan will promote continuity of management and increased incentive and personal
interest in the welfare of the Company by those who are primarily responsible
for shaping and carrying out the long-range plans of FOCI and securing its
continued growth and financial success.

     2. EFFECTIVE DATE OF THE PLAN. The Plan shall become effective on April 25,
2000, the closing date of the acquisition of FOCI by the Company or a subsidiary
of the Company.

     3. STOCK SUBJECT TO PLAN. The maximum number of common shares that may be
issued pursuant to the exercise of options granted under the Plan ("Options") is
six hundred eighty one thousand three hundred (681,300) subject to the
adjustments provided in paragraph 13 below. Six hundred eighty one thousand
three hundred (681,300) of the authorized but unissued common shares of the
Company will be reserved for issue upon exercise of Options subject to the
adjustments provided in paragraph 13 below; provided, however, that the number
of such authorized but unissued shares so reserved may from time to time be
reduced to the extent that a corresponding amount of issued and outstanding
shares have been purchased by the Company and set aside for issue upon the
exercise of Options. If any Options shall expire or terminate for any reason
without having been exercised in full, the unpurchased shares subject thereto
shall again be available for further grants under the Plan.

     4. ADMINISTRATION. The Plan shall be administered by the Board of Directors
(the "Board") or the Compensation Committee of the Board (the "Compensation
Committee") of the Company. The Board or Compensation Committee shall have the
sole authority, in its absolute discretion, to determine which of the eligible
persons of FOCI shall receive Options ("Optionees"), and, subject to the express
provisions and restrictions of this Plan, shall have sole authority, in its
absolute discretion, to determine the time when Options shall be granted, the
terms and conditions of an Option other than those terms and conditions fixed
under this Plan, the number of shares which may be issued upon exercise of an
Option and the means of payment for such shares, and shall have authority to do
everything necessary or appropriate to administer the Plan. All decisions,
determinations and interpretations of the Board or Compensation Committee shall
be final and binding on all Optionees.

     5. ELIGIBILITY. The Board or Compensation Committee, may, in its
discretion, grant one or more Options under the Plan to any employee of FOCI who
is not an officer of the Company or member of the Board or any person who is not
an officer of the Company or member of the Board and who performs consulting or
other services for FOCI, the Company or its affiliated companies and who is
designated by the Board as eligible to participate in the Plan. Such Options may
be granted to one or more such persons without being granted to other eligible
persons, as the Board or Compensation Committee may deem fit. Notwithstanding
the provisions of this Section, the Board or Compensation Committee may, in its
discretion, grant one or more Options under the Plan to any person not
previously employed by FOCI as an inducement essential to the individual's
entering into an employment contract with FOCI. As used in this Plan, "officer
of the Company" means the chief executive officer, president, chief financial
officer, chief accounting officer, any vice president in charge of a principal
business function (such as sales, administration, or finance) and any other
person who performs similar policy-making functions for the Company.

     6. OPTION PRICE. The option price will be determined by the Board or
Compensation Committee at the time the option is granted and may be granted at
less than the fair market value of the common shares on the date of grant as
shall

<PAGE>   2

reasonably be determined by the Board or Compensation Committee.

     7. DATE OF OPTION GRANT. An option shall be considered granted on the date
the Board or Compensation Committee acts to grant the option, or such date
thereafter as the Board or Compensation Committee shall specify.

     8. TERM OF PLAN. The board of directors, without approval of the
shareholders may terminate the Plan at any time, but no termination shall,
without the participant's consent, alter or impair any of the rights under any
option theretofore granted to him under the Plan.

     9. TERM OF OPTIONS. The term of each option granted under the Plan will be
for such period (hereinafter referred to as the "option period") not exceeding
five (5) years as the Board or Compensation Committee shall determine. Each
option shall be subject to earlier termination as described under "exercise of
options."

     10. EXERCISE OF OPTIONS. Each option granted under the Plan will be
exercisable on such date or dates and during such period and for such number of
shares as shall be determined pursuant to the provisions of the option agreement
evidencing such option. Subject to the express provisions of the Plan, the Board
or Compensation Committee shall have complete authority, in its discretion, to
determine the extent, if any, and the conditions under which an option may be
exercised in the event of the death of the participant or in the event the
participant leaves the employ of the Company or has his or her employment
terminated by the Company. An option may be exercised, by (a) written notice of
intent to exercise the option with respect to a specified number of shares of
stock, and (b) payment to the Company of the amount of the option purchase price
for the number of shares of stock with respect to which the option is then
exercised.

     11. NONTRANSFERABILITY. Options under the Plan are not transferable
otherwise than by will or the laws of descent or distribution, and may be
exercised during the lifetime of a participant only by such participant.

     12. AGREEMENTS. Options granted pursuant to the Plan shall be evidenced by
stock option agreements in such form as the Board or Compensation Committee
shall from time to time adopt.

     13. SALE OR REORGANIZATION OF COMPANY. Upon the consummation of a
transaction: (i) that by its terms offers to all or substantially all of the
stockholders of the Company an opportunity to receive cash or securities
(whether debt, equity or other and whether issued by the Company or a third
party) in exchange for all or a portion of their shares of common stock of the
Company, provided, however, a sale of the Company shall not be considered to
have occurred as a result of the pro rata distribution by the Company to its
stockholders of capital stock of any of its subsidiaries; (ii) in which the
stockholders of the Company approve a plan of complete dissolution or
liquidation of the Company; or (iii) that involves the sale of all or
substantially all of the Company's property or a sale of more than eighty
percent (80%) of the then outstanding stock of the Company to another
corporation (each transaction a "Sale"), the Board may, without limitation and
in its sole and absolute discretion, do any, or any combination, of the
following:

          a. declare that the time period relating to the exercise of any Stock
Option shall accelerate and become exercisable;

          b. declare that the value of all or some of the outstanding Options
shall, to the extent determined by the Board at or after grant, be cashed out by
a payment of cash or other property, as the Board may determine, on the basis of
the "Sale Price" (as defined in below) as of the date the Sale occurs or such
other date as the Board may determine prior to the Sale;

          c. permit a successor corporation, if applicable, pursuant to a
written agreement signed by the parties, to substitute equivalent Options or
provide substantially similar consideration to Optionees as was or will be
provided to stockholders of the Company after making any appropriate adjustment
as such parties deem

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necessary or appropriate for restrictions attaching to such Options, including,
but not limited to, vesting and exercise price; or

          d. declare that any unexercised Options issued hereunder (or any
unexercised portion thereof) shall terminate and cease to be effective.

     For purposes of this Section 13, "Sale Price" means the higher of (i) the
highest price per share paid in any transaction related to a Sale of the Company
or (ii) the highest price per share paid in any transaction reported on the
exchange or national market system on which the Common Stock is listed, at any
time during the preceding sixty (60) day period as determined by the Board.

     An Optionee's individual stock option agreement may, but is not required
to, provide what occurs upon a Sale. To the extent an Optionee's individual
stock option agreement determines what occurs upon a Sale, the terms of such
stock option agreement shall be dispositive in the event of a Sale; provided
that if the terms of such Optionee's individual stock option agreement, together
with the terms of any other stock option agreement granted hereunder, pertaining
to what occurs upon a Sale would materially impair an acquiror's ability to use
the "pooling of interests" accounting method to account for the acquisition, as
described in the immediately preceding paragraph, then the Board shall have, in
its sole and absolute discretion, the right to modify (to the least extent
possible and still permit the acquiror to use "pooling of interests") the terms
of the stock option agreement, solely with respect to those terms pertaining to
what occurs upon a Sale.

     Notwithstanding the foregoing, in the event that any such agreement shall
be terminated without consummating the disposition of said stock or assets:

          (i) any unexercised non-vested installments that had become
exercisable solely by reason of the provision of Section 13 shall again become
non-vested and unexercisable as of said termination of such agreement, and

          (ii) the exercise of any option that had become exercisable solely by
reason of this Section 8(b) shall be deemed ineffective and such installments
shall again become non-vested and unexercisable as of said agreement of such
agreement

     14. ADJUSTMENT OF NUMBER OF SHARES. In the event that a dividend shall be
declared upon the common shares of the Company payable in common shares of the
Company the number of common shares then subject to any such option and the
number of shares reserved for issuance pursuant to the Plan but not yet covered
by an option, shall be adjusted by adding to each such share the number of
shares which would be distributable thereon if such share had been outstanding
on the date fixed for determining the shareholders entitled to receive such
stock dividend. In the event that the outstanding common shares of the Company
shall be changed into or exchanged for a different number or kind of shares of
stock or other securities of the Company or of another corporation, whether
through reorganization, recapitalization, stock split-up, combination of shares,
merger or consolidation, then there shall be substituted for each common share
reserved for issuance pursuant to the Plan, the number and kind of shares of
stock or other securities into which each outstanding common share shall be so
changed or for which each such share shall be exchanged. In the event there
shall be any change, other than as specified above in this paragraph in the
number or kind of outstanding common shares of the Company or of any stock or
other securities into which such common shares shall have been changed or for
which it shall have been exchanged, then if the Board or Compensation Committee
shall in sole discretion determine that such change equitably requires an
adjustment in the number or kind of shares theretofore reserved for issuance
pursuant to the Plan, but not yet covered by an option and of the shares then
subject to an option or options, such adjustment may be made by the Board or
Compensation Committee and shall be effective and binding for all purposes of
the Plan and of each stock option agreement. The option price in each stock
option agreement for each share of stock or other securities substituted or
adjusted as provided for in this paragraph shall be determined by dividing the
option price in such agreement for each share prior to such substitution or
adjustment by the number of shares or the fraction of a share

                                       3
<PAGE>   4

substituted for such share or to which such share shall have been adjusted. No
adjustment or substitution provided for in this paragraph shall require the
Company in any stock option agreement to sell a fractional share, and the total
substitution or adjustment with respect to each stock option agreement shall be
limited accordingly.

     15. AMENDMENTS. The board of directors, without approval of the
shareholders, may from time to time amend the Plan in such respects as the board
may deem advisable. No amendment shall, without the participant's consent, alter
or impair any of the rights or obligations under any option theretofore granted
to him under the Plan.

     IN WITNESS WHEREOF, the Board of Directors of the Company has adopted this
Plan as of the 25th day of April, 2000.

                                    MRV COMMUNICATIONS, INC.

                                    By: /s/ EDMUND GLAZER
                                        -------------------------------------
                                          Edmund Glazer
                                    Its: Vice President of Finance and
                                    Administration and Chief Financial Officer

                                       4

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