Document:

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                                                                   Exhibit 10.33

                          EXODUS COMMUNICATIONS, INC.
                    INTERNET DATA CENTER SERVICES AGREEMENT

     THIS INTERNET DATA CENTER SERVICES AGREEMENT (this "Agreement") is made
effective as of the Submission Date (October 23, 1998) indicated in the initial
Internet Data Center Services Order Form accepted by Exodus, by and between
Exodus Communications, Inc. ("Exodus") and the customer identified below
("Customer").

PARTIES:

CUSTOMER NAME:  911 Gifts, Inc.

ADDRESS:        832 Sansome Street
                San Francisco, CA 94111

PHONE:          415-732-7520

FAX:            415-732-7196

EXODUS COMMUNICATIONS, INC.
2831 Mission College Blvd
Santa Clara, CA 95054
Phone:  (408) 346-2200
Fax:    (408) 346-2420

1.   INTERNET DATA CENTER SERVICES.

Subject to the terms and conditions of this Agreement, during the term of this
Agreement, Exodus will provide to Customer the services described in the
Internet Data Center Services Order Form(s) ("IDC Services Order Form(s)")
accepted by Exodus, or substantially similar services if such substantially
similar services would provide Customer with substantially similar benefits
("Internet Data Center Services"). All IDC Services Order Forms accepted by
Exodus are incorporated herein by this reference, each as of the Submission Date
indicated in such form.

2.   FEES AND BILLING.

     2.1  Fees. Customer will pay all fees due according to the IDC Services
Order Form(s).

     2.2  Billing Commencement. Billing for Internet Data Center Services, other
than Setup Services indicated in the initial IDC Services Order Form shall
commence on the earlier to occur of (i) the "Installation Date" indicated in the
initial IDC Services Order Form, regardless of whether Customer has commenced
use of the Internet Data Center Services, unless Customer is unable to install
the Customer Equipment and/or use the Internet Data Center Services by the
Installation Date due to the fault of Exodus, then billing will not begin until
the date Exodus has remedied such fault and (ii) the date the "Customer
Equipment" (Customer's computer hardware and other tangible equipment, as
identified in the Customer Equipment List which is incorporated herein by this
reference) is placed by Customer in the "Customer Area" (the portion(s) of the
Internet Data Centers, as defined in Section 3.1 below, made available to
Customer hereunder for the placement of Customer Equipment) and is operational.
All Setup Fees will be billed upon receipt of a Customer signed IDC Services
Order Form. In the event that Customer orders additional Internet Data Center
Services, billing for such services shall commence on the date Exodus first
provides such additional Internet Data Center Services to Customer or as
otherwise agreed to by Customer and Exodus.

     2.3  Billing and Payment Terms. Customer will be billed monthly in advance
of the provision of Internet Data Center Services, and payment of such fees will
be due within thirty (30) days of the date of each Exodus invoice. All payments
will be made in U.S. dollars. Late payments hereunder will accrue interest at a
rate of one and one-half percent (1 1/2%) per month, or the highest rate allowed
by applicable law, whichever is lower. If in its judgment Exodus determines that
Customer is not creditworthy or is otherwise not financially secure, Exodus may,
upon written notice to Customer, modify the payment terms to require full
payment before the provision of Internet Data Center Services or other
assurances to secure Customer's payment obligations hereunder.

     2.4  Taxes. All payments required by this Agreement are exclusive of all
national, state, municipal or other governmental excise, sales, value-added,
use, personal property, and occupational taxes, excises, withholding taxes and
obligations and other levies now in force or enacted in the future, all of which
Customer will be responsible for and will pay in full, except for taxes based on
Exodus' net income.

3.   CUSTOMER'S OBLIGATIONS

     3.1  Compliance with Law and Rules and Regulations. Customer agrees that
Customer will comply at all times with all applicable laws and regulations and
Exodus' general rules and regulations relating to its provision of Internet Data
Center Services, as updated by Exodus from time to time ("Rules and
Regulations"). Customer acknowledges that Exodus exercises no control whatsoever
over the content of the information passing through its sites containing the
Customer Area and equipment and facilities used by Exodus to provide Internet
Data Center Services ("Internet Data Centers"), and that it is the sole
responsibility of Customer to ensure that the information it transmits and
receives complies with all applicable laws and regulations.

     3.2  Customer's Costs. Customer agrees that it will be solely responsible,
and at Exodus's request will reimburse Exodus, for all costs and expenses (other
than those included as part of the Internet Data Center Services and except as
otherwise expressly provided herein) it incurs in connection with this
Agreement.

     3.3  Access and Security. Customer will be fully responsible for any
charges, costs, expenses (other than those included in the Internet Data Center
Services), and third party claims that may result from its use of, or access to,
the Internet Data Centers and/or the Customer Area including but not limited to
any unauthorized use of any access devices provided by Exodus hereunder. Except
with the advanced written consent of Exodus, Customer's access to the Internet
Data Centers will be limited solely to the individuals identified and authorized
by Customer to have access to the Internet Data Centers and the Customer Area in
accordance with this Agreement, as identified in the Customer Registration Form,
as amended from time to time, which is hereby incorporated by this reference
("Representatives").

     3.4  No Competitive Services. Customer may not at any time permit any
Internet Data Center Services to be utilized for the provision of any services
that compete with any Exodus services, without Exodus' prior written consent.

     3.5  Insurance.

     (a)  Minimum Levels. Customer will keep in full force and effect during the
term of this Agreement: (i) comprehensive general liability insurance in an
amount not less than $1 million per occurrence for bodily injury and property
damage; (ii) employer's liability insurance in an amount not less than $1
million per occurrence; and (iii) workers' compensation insurance in an amount
not less than that required by applicable law. Customer also agrees that it
will, and will be solely responsible for ensuring that its agents (including
contractors and subcontractors) maintain, other insurance at levels no less than
those required by applicable law and customary in Customer's and its agents'
industries.

     (b)  Certificates of Insurance. Prior to installation of any Customer
Equipment in the Customer Area, Customer will furnish Exodus with certificates
of insurance which evidence the minimum levels of insurance set forth above.

     (c)  Naming Exodus as an Additional Insured. Customer agrees that prior to
the installation of any Customer Equipment, Customer will cause its insurance
provider(s) to name Exodus as an additional insured and notify Exodus in writing
of the effective date thereof.

4.   CONFIDENTIAL INFORMATION.

     4.1  Confidential Information. Each party acknowledges that it will have
access to certain confidential information of the other party concerning the
other party's business, plans, customers, technology, and products, including
the terms and conditions of this Agreement ("Confidential Information").
Confidential Information will include, but not be limited to, each party's
proprietary software and customer information. Each party agrees that it will
not use in any way, for its own account or the account of any third party,
except as expressly permitted by this Agreement, nor disclose to any third party
(except as required by law or to that party's attorneys, accountants and other
advisors as reasonably necessary), any of the other party's Confidential
Information and will take reasonable precautions to protect the confidentiality
of such information.

     4.2  Exceptions. Information will not be deemed Confidential Information
hereunder if such information: (i) is known to the receiving party prior to
receipt from the disclosing party directly or indirectly from a source other
than one having an obligation of confidentiality to the disclosing party; (ii)
becomes known (independently of disclosure by the disclosing party) to the
receiving party directly or indirectly from a source other than one having an
obligation of confidentiality to the disclosing party; (iii) becomes publicly
known or otherwise ceases to be secret or confidential, except through a breach
of this Agreement by the receiving party; or (iv) is independently developed by
the receiving party.

5.   REPRESENTATIONS AND WARRANTIES.

     5.1  Warranties by Customer.

     (a)  Customer Equipment. Customer represents and warrants that it owns or
has the legal right and authority, and will continue to own or maintain the
legal right and authority during the term of this Agreement, to place and use
the Customer Equipment as contemplated by this Agreement. Customer further
represents and warrants that its placement, arrangement, and use of the Customer
Equipment in the Internet Data Centers complies with the Customer Equipment
Manufacturer's environmental and other specifications.

     (b)  Customer's Business. Customer represents and warrants that Customer's
services, products, materials, data, information and Customer Equipment used by
Customer in connection with this Agreement as well as Customer's and its
permitted customers' and users' use of the Internet Data Center Services
(collectively, "Customer's Business") does not as of the Installation Date, and
will not during the term of this Agreement operate in any manner that would
violate any applicable law or regulations.

     (c)  Rules and Regulations. Customer has read the Rules and Regulations and
represents and warrants that Customer and Customer's Business are currently in
full compliance with the Rules and Regulations, and will remain so at all times
during the term of this Agreement.

     (d)  Breach of Warranties. In the event of any breach, or reasonably
anticipated breach, of any of the foregoing warranties, in addition to any other
remedies available at law or in equity, Exodus will have the right immediately,
in Exodus' sole discretion, to suspend any related Internet Data Center Services
if deemed reasonably necessary by Exodus to prevent any harm to Exodus and its
business.

     5.2  Warranties and Disclaimers by Exodus.

          5.2(a) Service Level Warranty. In the event Customer experiences any
of the following and Exodus determines in its reasonable judgment that such
inability was caused by Exodus' failure to provide Internet Data Center Services
for reasons within Exodus' reasonable control and not as a result of any actions
or inactions of Customer or any third parties (including Customer Equipment and
third party equipment), Exodus will, upon

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Customer's request in accordance with paragraph (iii) below, credit Customer's
account as described below:

          (i) Inability to Access the Internet (Downtime). If Customer is unable
to transmit and receive information from Exodus' Internet Data Centers (i.e.,
Exodus' LAN and WAN) to other portions of the Internet because Exodus failed to
provide the Internet Data Center Services for more than fifteen (15) consecutive
minutes, Exodus will credit Customer's account the pro-rata connectivity charges
(i.e., all bandwidth related charges) for one (1) day of service, up to an
aggregate maximum credit of connectivity charges for seven (7) days of service
in any one calendar (1) month. Exodus' scheduled maintenance of the Internet
Data Centers and Internet Data Center Services, as described in the Rules and
Regulations, shall not be deemed to be a failure of Exodus to provide Internet
Data Center Services. For purposes of the foregoing, "unable to transmit and
receive" shall mean sustained packet loss in excess of 50% based on Exodus'
measurements.

          (ii) Packet Loss and Latency. Exodus does not proactively monitor the
packet loss or transmission latency of specific customers. Exodus does, however,
proactively monitor the aggregate packet loss and transmission latency within
its LAN and WAN. In the event that Exodus discovers (either from its own efforts
or after being notified by Customer) that Customer is experiencing packet loss
in excess of one percent (1%) ("Excess Packet Loss") or transmission latency in
excess of 120 milliseconds round trip time (based on Exodus' measurements)
between any two Internet Data Centers within Exodus' U.S. network (collectively,
"Excess Latency", and with Excess Packet Loss "Excess Packet Loss Latency"), and
Customer notifies Exodus (or confirms that Exodus has notified Customer), Exodus
will take all actions necessary to determine the source of the Excess Packet
Loss/Latency.

               (A) Time to Discover Source of Excess Packet Loss Latency;
Notification of Customer. Within two (2) hours of discovering the existence of
Excess Packet Loss/Latency, Exodus will determine whether the source of the
Excess Packet Loss/Latency is limited to the Customer Equipment and the Exodus
equipment connecting the Customer Equipment to Exodus' LAN ("Customer Specific
Packet Loss: Latency"): If the Excess Packet Loss/Latency is not a Customer
Specific Packet Loss/Latency, Exodus will determine the source of the Excess
Packet Loss/Latency within two (2) hours after determining that it is not a
Customer Specific Packet Loss/Latency. In any event, Exodus will notify Customer
of the source of the Excess Packet Loss/Latency within sixty (60) minutes after
identifying the source.

               (B) Remedy of Excess Packet Loss Latency. If the Excess Packet
Loss/Latency remedy is within the sole control of Exodus, Exodus will remedy the
Excess Packet Loss/Latency within two (2) hours of determining the source of the
Excess Packet Loss/Latency. If the Excess Packet Loss/Latency is caused from
outside of the Exodus LAN or WAN, Exodus will notify Customer and will use
commercially reasonable efforts to notify the party(ies) responsible for the
source and cooperate with it (them) to resolve the problem as soon as possible.

               (C) Failure to Determine Source and or Resolve Problem. In the
event that Exodus is unable to determine the source of and remedy the Excess
Packet Loss/Latency within the time periods described above (where Exodus was
solely in control of the source), Exodus will credit Customer's account the
pro-rata connectivity charges for one (1) day of service for every two (2) hours
after the time periods described above that it takes Exodus to resolve the
problem, up to an aggregate maximum credit of connectivity charges for seven (7)
days of service in any one (1) month.

          (iii) Customer Must Request Credit: To receive any of the credits
described in this section 5.2(a), Customer must notify Exodus within three (3)
business days from the time Customer becomes eligible to receive a credit.
Failure to comply with this requirement will forfeit Customer's right to receive
a credit.

          (iv) Remedies Shall Not Be Cumulative: Maximum Credit: In the event
that Customer is entitled to multiple credits hereunder arising from the same
event, such credits shall not be cumulative and Customer shall be entitled to
receive only the maximum single credit available for such event. In no event
will Exodus be required to credit Customer in any one (1) calendar month
connectivity charges in excess of seven (7) days of service. A credit shall be
applied only to the month in which there was the incident that resulted in the
credit. Customer shall not be eligible to receive any credits for periods in
which Customer received any Internet Data Center Services free of charge.

          (v) Termination Option for Chronic Problems: If, in any single
calendar month, Customer would be able to receive credits totaling fifteen (15)
or more days (but for the limitation in paragraph (iv) above) resulting from
three (3) or more events during such calendar month or, if any single event
entitling customer to credits under paragraph 5.2(a)(i) exists for a period of
eight (8) consecutive hours, then, Customer may terminate this Agreement for
cause and without penalty by notifying Exodus within five (5) days following the
end of such calendar month. Such termination will be effective thirty (30) days
after receipt of such notice by Exodus.

THIS WARRANTY DOES NOT APPLY TO ANY INTERNET DATA CENTER SERVICES THAT EXPRESSLY
EXCLUDE THIS WARRANTY (AS DESCRIBED IN THE SPECIFICATION SHEETS FOR SUCH
PRODUCTS). THIS SECTION 5.2(a) STATES CUSTOMER'S SOLE AND EXCLUSIVE REMEDY FOR
ANY FAILURE BY EXODUS TO PROVIDE INTERNET DATA CENTER SERVICES.

     No Other Warranty. EXCEPT FOR THE EXPRESS WARRANTY SET OUT IN SUBSECTION
(a) ABOVE, THE INTERNET DATA CENTER SERVICES ARE PROVIDED ON AN "AS IS" BASIS,
AND CUSTOMER'S USE OF THE INTERNET DATA CENTER SERVICES IS AT ITS OWN RISK.
EXODUS DOES NOT MAKE, AND HEREBY DISCLAIMS, ANY AND ALL OTHER EXPRESS AND/OR
IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, WARRANTIES OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NONINFRINGEMENT AND TITLE,
AND ANY WARRANTIES ARISING FORM A COURSE OF DEALING, USAGE, OR TRADE PRACTICE.
EXODUS DOES NOT WARRANT THAT THE INTERNET DATA CENTER SERVICES WILL BE
UNINTERRUPTED, ERROR-FREE, OR COMPLETELY SECURE.

          (C) Disclaimer of Actions Caused by and or Under the Control of Third
Parties. EXODUS DOES NOT AND CANNOT CONTROL THE FLOW OF DATA TO OR FROM EXODUS'
INTERNET DATA CENTERS AND OTHER PORTIONS OF THE INTERNET. SUCH FLOW DEPENDS IN
LARGE PART ON THE PERFORMANCE OF INTERNET SERVICES PROVIDED OR CONTROLLED BY
THIRD PARTIES. AT TIMES, ACTIONS OR INACTIONS CAUSED BY THESE THIRD PARTIES CAN
PRODUCE SITUATIONS IN WHICH EXODUS' CUSTOMERS' CONNECTIONS TO THE INTERNET (OR
PORTIONS THEREOF) MAY BE IMPAIRED OR DISRUPTED. ALTHOUGH EXODUS WILL USE
COMMERCIALLY REASONABLE EFFORTS TO TAKE ACTIONS IT DEEMS APPROPRIATE TO REMEDY
AND AVOID SUCH EVENTS, EXODUS CANNOT GUARANTEE THAT THEY WILL NOT OCCUR.
ACCORDINGLY, EXODUS DISCLAIMS ANY AND ALL LIABILITY RESULTING FROM OR RELATED TO
SUCH EVENTS.

6.   LIMITATIONS OF LIABILITY.

     6.1  Personal Injury. EACH REPRESENTATIVE AND ANY OTHER PERSONS VISITING
THE INTERNET DATA CENTERS DOES SO AT ITS OWN RISK AND EXODUS ASSUMES NO
LIABILITY WHATSOEVER FOR ANY HARM TO SUCH PERSONS RESULTING FROM ANY CAUSE OTHER
THAN EXODUS' NEGLIGENCE OR WILLFUL MISCONDUCT RESULTING IN PERSONAL INJURY TO
SUCH PERSONS DURING SUCH A VISIT.

     6.2  Damage to Customer Equipment or Business. EXODUS ASSUMES NO LIABILITY
FOR ANY DAMAGE TO, OR LOSS RELATING TO, CUSTOMER'S BUSINESS RESULTING FROM ANY
CAUSE WHATSOEVER. CERTAIN CUSTOMER EQUIPMENT, INCLUDING BUT NOT LIMITED TO
CUSTOMER EQUIPMENT LOCATED ON CYBERRACKS, MAY BE DIRECTLY ACCESSIBLE BY OTHER
CUSTOMERS. EXODUS ASSUMES NO LIABILITY FOR ANY DAMAGE TO, OR LOSS OF, ANY
CUSTOMER EQUIPMENT RESULTING FROM ANY CAUSE OTHER THAN EXODUS' GROSS NEGLIGENCE
OR WILLFUL MISCONDUCT. TO THE EXTENT EXODUS IS LIABLE FOR ANY DAMAGE TO, OR LOSS
OF, THE CUSTOMER EQUIPMENT FOR ANY REASON, SUCH LIABILITY WILL BE LIMITED
SOLELY TO THE THEN-CURRENT VALUE OF THE CUSTOMER EQUIPMENT.

     6.3 Exclusions. EXCEPT AS SPECIFIED IN SECTIONS 6.1 AND 6.2, IN NO EVENT
WILL EXODUS BE LIABLE TO CUSTOMER, ANY REPRESENTATIVE, OR ANY THIRD PARTY FOR
ANY CLAIMS ARISING OUT OF OR RELATED TO THIS AGREEMENT, CUSTOMER EQUIPMENT,
CUSTOMER'S BUSINESS OR OTHERWISE, AND ANY LOST REVENUE, LOST PROFITS,
REPLACEMENT GOODS, LOSS OF TECHNOLOGY, RIGHTS OR SERVICES, INCIDENTAL, PUNITIVE,
INDIRECT OR CONSEQUENTIAL DAMAGES, LOSS OF DATA, OR INTERRUPTION OR LOSS OF USE
OF SERVICE OR OF ANY CUSTOMER EQUIPMENT OR CUSTOMER'S BUSINESS, EVEN IF ADVISED
OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER UNDER THEORY OF CONTRACT, TORT
(INCLUDING NEGLIGENCE), STRICT LIABILITY OR OTHERWISE.

     6.4  Maximum Liability. NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS
AGREEMENT, EXODUS'S MAXIMUM AGGREGATE LIABILITY TO CUSTOMER RELATED TO OR IN
CONNECTION WITH THIS AGREEMENT WILL BE LIMITED TO THE TOTAL AMOUNT PAID BY
CUSTOMER TO EXODUS HEREUNDER FOR THE PRIOR TWELVE (12) MONTH PERIOD.

     6.5  Customer's Insurance. Customer agrees that it will not pursue any
claims against Exodus for any liability Exodus may have under or relating to
this Agreement until Customer first makes claims against Customer's insurance
provider(s) and such insurance provider(s) finally resolve(s) such claims.

     6.6  Basis of the Bargain: Failure of Essential Purpose. Customer
acknowledges that Exodus has set its prices and entered into this Agreement in
reliance upon the limitations of liability and the disclaimers of warranties and
damages set forth herein, and that the same form an essential basis of the
bargain between the parties. The parties agree that the limitations and
exclusions of liability and disclaimers specified in this Agreement will survive
and apply even if found to have failed of their essential purpose.

7. INDEMNIFICATION.

     7.1  Exodus' Indemnification of Customer. Exodus will indemnify, defend and
hold Customer harmless from and against any and all costs, liabilities, losses,
and expenses (including, but not limited to, reasonable attorneys' fees)
(collectively, "Losses") resulting from any claim, suit, action, or proceeding
(each, an "Action") brought against Customer alleging (i) the infringement of
any third party registered U.S. copyright or issued U.S. patent resulting from
the provision of Internet Data Center Services pursuant to this Agreement (but
excluding any infringement contributorily caused by Customer's Business or
Customer Equipment) and (ii) personal injury to Customer's Representatives from
Exodus' gross negligence or willful misconduct.

     7.2  Customer's Indemnification of Exodus. Customer will indemnify, defend
and hold Exodus, its affiliates and customers harmless from and against any and
all Losses resulting from or arising out of any Action brought by or against
Exodus, its affiliates or customers alleging: (a) with respect to the Customer's
Business: (i) infringement or misappropriation of any intellectual property
rights; (ii) defamation, libel, slander, obscenity, pornography, or violation of
the rights of privacy or publicity; or (iii) spamming, or any other offensive,
harassing or illegal conduct or violation of the Rules and Regulations; (b) any
damage or destruction to the Customer Area, the Internet Data Centers or the
equipment of Exodus or any other customer by Customer or Representative(s) or
Customer's designees; or (c) any other damages arising from the Customer
Equipment or Customer's Business.

     7.3  Notice. Each party will provide the other party prompt written notice
upon the existence of any such event of which it becomes aware, and an
opportunity to participate in the defense thereof.

8. TERM AND TERMINATION.

     8.1  Term. This Agreement will be effective for a period of two (2) years
from the Installation Date, unless earlier terminated according to the
provisions of this Section 8. The Agreement will automatically renew for
additional terms of one (1) year each.

     8.2  Termination.

     (a)  For Convenience.

     (i)  By Customer During First Thirty Days. Customer may terminate this
Agreement for convenience by providing written notice to Exodus at any time
during the thirty (30) day period beginning on the Installation Date.

     (ii) By Either Party. Either party may terminate this Agreement for
convenience at any time effective after the first (1st) anniversary of the
Installation Date by providing ninety (90) days' prior written notice to the
other party at any time thereafter.

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     (b) For Cause. Either party will have the right to terminate this Agreement
if: (i) the other party breaches any material term or condition of this
Agreement and fails to cure such breach within thirty (30) days after receipt of
written notice of the same, except in the case of failure to pay fees, which
must be cured within five (5) days after receipt of written notice from Exodus;
(ii) the other party becomes the subject of a voluntary petition in bankruptcy
or any voluntary proceeding relating to insolvency, receivership, liquidation,
or composition for the benefit of creditors; or (iii) the other party becomes
the subject of an involuntary petition in bankruptcy or any involuntary
proceeding relating to insolvency, receivership, liquidation, or composition for
the benefit of creditors, if such petition or proceeding is not dismissed within
sixty (60) days of filing.

     8.3 No Liability for Termination. Neither party will be liable to the other
for any termination or expiration of this Agreement in accordance with its
terms.

     8.4 Effect of Termination. Upon the effective date of expiration or
termination of this Agreement: (a) Exodus will immediately cease providing the
Internet Data Center Services; (b) any and all payment obligations of Customer
under this Agreement will become due immediately; (c) within thirty (30) days
after such expiration or termination, each party will return all Confidential
Information of the other party in its possession at the time of expiration or
termination and will not make or retain any copies of such Confidential
Information except as required to comply with any applicable legal or accounting
record keeping requirement; and (d) Customer will remove from the Internet Data
Centers all Customer Equipment and any of its other property within the Internet
Data Centers within five (5) days of such expiration or termination and return
the Customer Area to Exodus in the same condition as it was on the Installation
Date, normal wear and tear excepted. If Customer does not remove such property
within such five-day period, Exodus will have the option to (i) move any and all
such property to secure storage and charge Customer for the cost of such removal
and storage, and/or (ii) liquidate the property in any reasonable manner.

     8.5 Customer Equipment as Security. In the event that Customer fails to pay
Exodus all amounts owed Exodus under this Agreement when due, Customer Agrees
that upon written notice, Exodus may take possession of any Customer Equipment
and store it, at Customer's expense, until taken in full or partial satisfaction
of any lien or judgment, all without being liable to prosecution or for damages.

     8.6 Survival. The following provisions will survive any expiration or
termination of the Agreement: Sections 2, 3, 4, 5, 6, 7, 8 and 9.

9.   MISCELLANEOUS PROVISIONS.

     9.1 Force Majeure. Except for the obligation to pay money, neither party
will be liable for any failure or delay in its performance under this Agreement
due to any cause beyond its reasonable control, including act of war, acts of
God, earthquake, flood, embargo, riot, sabotage, labor shortage or dispute,
governmental act or failure of the Internet, provided that the delayed party:
(a) gives the other party prompt notice of such cause, and (b) uses its
reasonable commercial efforts to correct promptly such failure or delay in
performance.

     9.2 No Lease. This Agreement is a services agreement and is not intended to
and will not constitute a lease of any real or personal property. Customer
acknowledges and agrees that (i) it has been granted only a license to occupy
the Customer Space and use the Internet Data Centers and any equipment provided
by Exodus in accordance with this Agreement, (ii) Customer has not been granted
any real property interest in the Customer Space or Internet Data Centers, and
(iii) Customer has no rights as a tenant or otherwise under any real property or
landlord/tenant laws, regulations, or ordinances. For good cause, including the
exercise of any rights under Section 8.5 above, Exodus may suspend the right of
any Representative or other person to visit the Internet Data Centers.

     9.3 Marketing. Customer agrees that Exodus may refer to Customer by trade
name and trademark, and may briefly describe Customer's Business, in Exodus'
marketing materials and web site. Customer hereby grants Exodus a license to use
any Customer trade names and trademarks solely in connection with the rights
granted to Exodus pursuant to this Section 9.3.

     9.4 Government Regulations. Customer will not export, re-export, transfer,
or make available, whether directly or indirectly, any regulated item or
information to anyone outside the U.S. in connection with this Agreement without
first complying with all export control laws and regulations which may be
imposed by the U.S. Government and any country or organization of nations within
whose jurisdiction Customer operates or does business.

     9.5 Non-Solicitation. During the period beginning on the Installation Date
and ending on the first anniversary of the termination or expiration of this
Agreement in accordance with its terms, Customer agrees that it will not, and
will ensure that its affiliates do not, directly or indirectly, solicit or
attempt to solicit for employment any persons employed by Exodus during such
period.

     9.6 Governing Law: Dispute Resolution. Severability; Waiver. This agreement
is made under and will be governed by and construed in accordance with the laws
of the State of California (except that body of law controlling conflicts of
law) and specifically excluding from application to this Agreement that law
known as the United Nations Convention on the International Sale of Goods. Any
dispute relating to the terms, interpretation or performance of this Agreement
(other than claims for preliminary injunctive relief or other pre-judgment
remedies) will be resolved at the request of either party through binding
arbitration. Arbitration will be conducted in Santa Clara County, California,
under the rules and procedures of the Judicial Arbitration and Mediation Society
("JAMS"). The parties will request that JAMS appoint a single arbitrator
possessing knowledge of online services agreements; however the arbitration will
proceed even if such a person is unavailable. In the event any provision of this
Agreement is held by a tribunal of competent jurisdiction to be contrary to the
law, the remaining provisions of this Agreement will remain in full force and
effect. The waiver of any breach, or default of this Agreement will not
constitute a waiver of any subsequent breach or default, and will not act to
amend or negate the rights of the waiving party.

     9.7 Assignment; Notices. Customer may not assign its rights or delegate
its duties under this Agreement either in whole or in part without the prior
written consent of Exodus, except that Customer may assign this Agreement in
whole as part of a corporate reorganization, consolidation, merger, or sale of
substantially all of its assets. Any attempted assignment or delegation without
such consent will be void. Exodus may assign this Agreement in whole or part.
This Agreement will bind and inure to the benefit of each party's successors
and permitted assigns. Any notice or communication required or permitted to be
given hereunder may be delivered by hand, deposited with an overnight courier,
sent by confirmed facsimile, or mailed by registered or certified mail, return
receipt requested, postage prepaid, in each case to the address of the
receiving party indicated on the signature page hereof, or at such other
address as may hereafter be furnished in writing by either party hereto to the
other. Such notice will be deemed to have been given as of the date it is
delivered, mailed or sent, whichever is earlier.

     9.8 Relationship of Parties. Exodus and Customer are independent
contractors and this Agreement will not establish any relationship of
partnership, joint venture, employment, franchise or agency between Exodus and
Customer. Neither Exodus nor Customer will have the power to bind the other or
incur obligations on the other's behalf without the other's prior written
consent, except as otherwise expressly provided herein.

     9.9 Entire Agreement; Counterparts. This Agreement, including all
documents incorporated herein by reference, constitutes the complete and
exclusive agreement between the parties with respect to the subject matter
hereof, and supersedes and replaces any and all prior or contemporaneous
discussions, negotiations, understandings and agreements, written and oral,
regarding such subject matter. This Agreement may be executed in two or more
counterparts, each of which will be deemed an original, but all of which
together shall constitute one and the same instrument.

Customer's and Exodus' authorized representatives have read the foregoing and
all documents incorporated therein and agree and accept such terms effective as
of the date first above written.

CUSTOMER                                EXODUS COMMUNICATIONS, INC.

Signature:   /s/ Hilary Billings        Signature:   /s/ [illegible]
           ---------------------------             ---------------------------

Print Name:  Hilary Billings            Print Name:  Sallie McLean
           ---------------------------             ---------------------------

Title:       President and CEO          Title:       Contracts Manager
           ---------------------------             ---------------------------

<PAGE>

ORDER FORM

<Table>
<Caption>
Customer                                                      Bill to:
------------------------------------------------------------------------------------------------------------------------------------
<S>                               <C>                         <C>                         <C>                        <C>
RedEnvelope, Inc.                                             RedEnvelope, Inc.
911002                                                        201 Spear Street
                                                              Third Floor

                                                              San Francisco CA 84105

                                                              USA
------------------------------------------------------------------------------------------------------------------------------------
Quote Date: April 18, 2003                                    DC:              : Santa Clara           Payment          : Net 30

Form #    : 1-1GUNOO               Revision : 1               Sales Person     : Vicki Alexander

Valid From: 4/17/2003              Through  : 5/17/2003       Order Status     : Final

Partner

     Purchase Order No. No PO Required
     |-----------------------------------------------------------------------------------|
     |Requested Service Date             : 08/10/2003          Initial Terms  : 12 Months|
     |-----------------------------------------------------------------------------------|
------------------------------------------------------------------------------------------------------------------------------------
</Table>

<Table>
<Caption>
                                                                       Monthly                      Extended        Extended
                                                                      Recurring    Non-Recurring     Monthly     Non-Returning
                         Description*           IDC       Qty            Cost           Cost           Fees           Fees
------------------------------------------------------------------------------------------------------------------------------------
<S>                     <C>                    <C>       <C>          <C>           <C>              <C>          <C>
7  EXO-FH-VDCCage       VDC-Cage               Santa       3             [*]         [*]               [*]            [*]
                                               Clara
------------------------------------------------------------------------------------------------------------------------------------
8  EXO-BW-BASE-U10      Bandwidth Base - 10    Santa       1             [*]         [*]               [*]            [*]
                        Mbps           - 10    Clara
------------------------------------------------------------------------------------------------------------------------------------
10 EXO-BW-ASSET-FE      Fast Ethernet Line     Santa       1             [*]         [*]               [*]            [*]
                        Asset                  Clara
------------------------------------------------------------------------------------------------------------------------------------
11 EXO-TELCO-11         Monthly recurring fee  Santa       1             [*]         [*]               [*]            [*]
                        for the circuit from   Clara
                        the Telco.
------------------------------------------------------------------------------------------------------------------------------------
  Variable Usage        EXO-BW-BASE-UV                     0
   above base

  EXO-BW-BASE-UV        Variable Bandwidth     Santa                     [*]
                        Price/Mbps Above       Clara
                        Base
------------------------------------------------------------------------------------------------------------------------------------
  Group Total                                                                                          [*]            [*]
------------------------------------------------------------------------------------------------------------------------------------
Cancel Services
------------------------------------------------------------------------------------------------------------------------------------
1  EXC-VDC              Visual Data Center     Santa      -3             [*]         [*]               [*]            [*]
                        (7ft X 8ft)            Clara
------------------------------------------------------------------------------------------------------------------------------------
2  EXO-BW-BASF-U1O      Bandwidth Base - 10    Santa      -1             [*]         [*]               [*]            [*]
                        Mbps                   Clara
------------------------------------------------------------------------------------------------------------------------------------
3  EXO-BW-ASSET-FE      Fast Ethernet Line     Santa      -1             [*]         [*]               [*]            [*]
                        Asset                  Clara
------------------------------------------------------------------------------------------------------------------------------------
6  EXO-TELCO-T1         Monthly Recurring fee  Santa      -1             [*]         [*]               [*]            [*]
                        for the circuit from   Clara
                        the Telco.
------------------------------------------------------------------------------------------------------------------------------------
   Variable Usage above Base EXO-BW-BASE-UV                0

   EXO-BW-BASE-UV       Variable Bandwidth     Santa                     [*]
                        Price/Mbps Above       Clara
                        Base
------------------------------------------------------------------------------------------------------------------------------------
  Group Total                                                                                          [*]            [*]
------------------------------------------------------------------------------------------------------------------------------------
     </Table>

*    Confidential treatment has been requested for portions of this exhibit. The
     copy filed herewith omits the information subject to the confidentiality
     request. Omissions are designated as [*]. A complete version of this
     exhibit has been filed separately with the Securities and Exchange
     Commission.

Order Form

Order Form Terms and Conditions:
--------------------------------

(1)  Customer hereby orders and Cable & Wireless Internet Services, Inc. ("C&W")
     hereby agrees to provide the services, hardware and/or software described
     in this Order Form (collectively, "the Services").

(2)  THE SERVICES ARE PROVIDED PURSUANT TO THE TERMS AND CONDITIONS OF THIS
     ORDER FORM AND THE TERMS AND CONDITIONS OF THE FOLLOWING C&W DOCUMENTS:
     a) Specification sheet(s).
     b) Statement of work signed by Customer and C&W.
     c) The appropriate services agreement between Customer and C&W whether it
        be a Master Services Agreement, Internet Data Center Services Agreement.
        Global Services Agreement, End User Agreement and/or Professional
        Services Agreement.

(3)  The Customer representative signing below hereby acknowledges and agrees
     that in the event that Customer does not issue a purchase order prior to
     the requested service date, this Order Form shall serve as Customer's
     purchase order. Customer further acknowledges that any additional or
     conflicting terms and conditions contained in Customer's purchase order
     shall not be applicable to the services to be provided hereunder, even if
     C&W uses such purchase order for invoicing purposes.

(4)  Customer will not be bound by this Order Form until it has been signed by
     an authorized representative of Customer. Acceptance of the Order Form is
     subject to C&W credit approval.

(5)  The Customer representative signing below hereby acknowledges and agrees
     that: (a) Customer shall have ten (10) business days from the date that
     Customer verbally accepts the newly installed services to return to C&W an
     executed Customer Acceptance Form ("CAF") confirming acceptance or delivery
     of the services on the CAF (the "CAF Services"); (b) in the event Customer
     does not return the CAF to C&W in accordance with this paragraph, a C&W
     customer representative will speak with Customer in an attempt to resolve
     outstanding issues relating to the acceptance of the CAF Services; (c) if
     Customer fails to submit an executed CAF within five (5) days after
     speaking with the C&W customer representative regarding any uninstalled CAF
     Services, C&W may terminate the CAF Services; and (d) in the event C&W
     terminates the CAF Services due to Customer's failure to accept the
     services in writing, Customer will be charged, and Customer agrees to pay,
     for any and all setup fees, de-installation fees or charges for the
     services terminated in accordance with this paragraph.

(6)  THERE ARE IMPORTANT TERMS AND CONDITIONS, WARRANTY DISCLAIMERS, LIABILITY
     LIMITATIONS AND SERVICE DESCRIPTIONS CONTAINED IN THE APPLICABLE SERVICES
     AGREEMENT, SPECIFICATION SHEET(S) AND STATEMENTS OF WORK. DO NOT SIGN THIS
     ORDER FORM BEFORE YOU HAVE READ ALL THE TERMS OF THE APPLICABLE SERVICES
     AGREEMENT, SPECIFICATION SHEET(S) AND/OR STATEMENTS OF WORK WHICH PERTAIN
     TO THIS ORDER. YOUR SIGNATURE BELOW INDICATES THAT YOU HAVE READ THE TERMS
     OF THIS ORDER FORM AND THE ADDITIONAL TERMS IN THE APPLICABLE SERVICES
     AGREEMENT, SPECIFICATION SHEET(S) AND/OR STATEMENTS OF WORK AND AGREE TO BE
     BOUND BY THEM.

--------------------------------------------------------------------------------
CUSTOMER                                CABLE & WIRELESS INTERNET SERVICES, INC.

Signature: /s/ John W. Roberts          Signature:
          ---------------------------             ------------------------------
Print Name: John W. Roberts             Print Name:
           --------------------------              -----------------------------
Title: VP of IS                         Title:
      -------------------------------         ----------------------------------
Date:   4/21/03                         Date:
     --------------------------------         ----------------------------------
--------------------------------------------------------------------------------

                                                       Customer's Initials
                                                                           -----
                                                 Order Form: 1-1GUNCO     Rev: 1

                          Proprietary and Confidential               Page 4 of 4<PAGE>
                                                                    EXHIBIT 10.1
                               VISX, INCORPORATED

                  1995 DIRECTOR OPTION AND STOCK DEFERRAL PLAN

                     AMENDED AND RESTATED AS OF MAY 23, 2003

         1.       PURPOSES OF THE PLAN. The purposes of this 1995 Director
Option and Stock Deferral Plan are to attract and retain the best available
personnel for service as Outside Directors (as defined herein) of the Company,
to provide additional incentive to the Outside Directors of the Company to serve
as Directors, and to encourage their continued service on the Board.

                  All options granted hereunder shall be nonstatutory stock
options. Outside Directors may also elect to convert their annual retainer into
deferred phantom stock hereunder.

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

                  (a)      "BOARD" means the Board of Directors of the Company.

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

                  (c)      "COMMON STOCK" means the Common Stock of the Company.

                  (d)      "COMPANY" means VISX, Incorporated, a Delaware
corporation.

                  (e)      "CONTINUOUS STATUS AS A DIRECTOR" means the absence
of any interruption or termination of service as a Director.

                  (f)      "DEFERRED PHANTOM STOCK" means phantom units of
Company Common Stock under the Outside Director Stock Deferral Plan.

                  (g)      "DIRECTOR" means a member of the Board.

                  (h)      "EMPLOYEE" means any person, including officers and
Directors, employed by the Company or any Parent or Subsidiary of the Company.
The payment of a Director's fee by the Company shall not be sufficient in and of
itself to constitute "employment" by the Company.

                  (i)      "EXCHANGE ACT" means the Securities Exchange Act of
1934, as amended.

                  (j)      "FAIR MARKET VALUE" means, as of any date, the value
of Common Stock determined as follows:

                           (i)      If the Common Stock is listed on any
established stock exchange or a national market system, including without
limitation the New York Stock Exchange, the Fair Market Value of a Share of
Common Stock shall be the closing sales price for such stock (or the closing
bid, if no sales were reported) as quoted on such system or exchange (or the
exchange with the greatest volume of trading in Common Stock) on the day of
determination, as reported in THE WALL STREET JOURNAL or such other source as
the Board deems reliable;

                           (ii)     If the Common Stock is quoted on any
established stock exchange or regularly quoted by a recognized securities dealer
but selling prices are not reported, the Fair Market

                                        1

<PAGE>

Value of a Share of Common Stock shall be the mean between the high bid and low
asked prices for the Common Stock on the day of determination, as reported in
THE WALL STREET JOURNAL or such other source as the Board deems reliable, or;

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

                  (k)      "NEW OUTSIDE DIRECTOR" means an Outside Director who
first becomes a Director at or after the Company's 2003 annual meeting of
stockholders.

                  (l)      "OPTION" means a stock option granted pursuant to the
Plan.

                  (m)      "OPTIONED STOCK" means the Common Stock subject to an
Option.

                  (n)      "OPTIONEE" means an Outside Director who receives an
Option.

                  (o)      "OUTSIDE DIRECTOR" means a Director who is not an
Employee.

                  (p)      "OUTSIDE DIRECTOR STOCK DEFERRAL PLAN" means the
Outside Director Stock Deferral Plan attached hereto as Appendix A.

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

                  (r)      "PLAN" means this VISX, Incorporated 1995 Director
Option and Stock Deferral Plan, including the Outside Director Stock Deferral
Plan attached hereto as Appendix A.

                  (s)      "QUALIFYING RETIREMENT" means an Outside Director's
termination from the Board, including pursuant to the Outside Director's death
or disability (as defined in Section 22(e)(3) of the Code), if such termination
follows (i) five full terms of Board membership and attainment of age 62 or
greater, or (ii) ten full terms of Board membership.

                  (t)      "SHARE" means a share of the Common Stock, as
adjusted in accordance with Section 10 of the Plan.

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

         3.       STOCK SUBJECT TO THE PLAN. Subject to the provisions of
Section 10 of the Plan, the maximum aggregate number of Shares which may be
optioned and sold under the Plan or deferred as Deferred Phantom Stock into the
Outside Director Stock Deferral Plan is seven hundred and seventy-five thousand
(775,000) Shares (the "Pool") of Common Stock. The Shares may be authorized but
unissued, or reacquired Common Stock.

                  If an Option should expire or become unexercisable for any
reason without having been exercised in full, the unpurchased Shares which were
subject thereto shall, unless the Plan shall have been terminated, become
available for future grant under the Plan; provided, however, that Shares that
have actually been issued under the Plan shall not be returned to the Plan and
shall not become available for future distribution under the Plan.

                                        2

<PAGE>

         4.       ADMINISTRATION AND INITIAL AND ANNUAL GRANT OF OPTIONS UNDER
THE PLAN.

                  (a)      PROCEDURE FOR INITIAL AND ANNUAL GRANTS. Outside
Directors shall receive initial and annual grants as follows:

                           (i)      No person shall have any discretion to
select which Outside Directors shall be granted Options or to determine the
number of Shares.

                           (ii)     Each New Outside Director shall be
automatically granted an Option to purchase Twenty-Five Thousand (25,000) Shares
(a "First Option") on the date on which such person first becomes a Director,
whether through election by the stockholders of the Company or appointment by
the Board to fill a vacancy; provided, however, that an Employee Director who
ceases to be an Employee but who remains a Director shall not receive a First
Option.

                           (iii)    Each Outside Director shall be automatically
granted an Option to purchase Ten Thousand (10,000) Shares (a "Subsequent
Option") on the date such Outside Director is re-elected to the Board commencing
with the Company's 2003 annual meeting of stockholders, if on such date he or
she shall have served on the Board for at least six (6) months.

                           (iv)     The terms of a First Option granted
hereunder shall be as follows:

                                    (A)      the term of the First Option shall
be ten (10) years.

                                    (B)      the First Option shall be
exercisable only while the Outside Director remains a Director of the Company,
except as set forth in Section 9 hereof.

                                    (C)      the exercise price per Share shall
be 100% of the Fair Market Value per Share on the date of grant of the First
Option. In the event that the date of grant of the First Option is not a trading
day, the exercise price per Share shall be the Fair Market Value on the next
trading day immediately following the date of grant of the First Option.

                                    (D)      the First Option shall vest as to
1/3 of the Shares subject to the First Option on each anniversary of the date of
grant, so as to be 100% vested on the third anniversary of the date of grant,
subject to continued service as an Outside Director.

                           (v)      The terms of a Subsequent Option granted
hereunder shall be as follows:

                                    (A)      the term of the Subsequent Option
shall be ten (10) years.

                                    (B)      the Subsequent Option shall be
exercisable only while the Outside Director remains a Director of the Company,
except as set forth in Section 9 hereof.

                                    (C)      the exercise price per Share shall
be 100% of the Fair Market Value per Share on the date of grant of the
Subsequent Option. In the event that the date of grant of the Subsequent Option
is not a trading day, the exercise price per Share shall be the Fair Market
Value on the next trading day immediately following the date of grant of the
Subsequent Option.

                                    (D)      the Subsequent Option shall be 100%
vested upon the date of grant.

                                        3

<PAGE>

                           (vi)     In the event that any Option granted under
the Plan would cause the number of Shares subject to outstanding Options plus
the number of Shares previously purchased under Options to exceed the Pool, then
the remaining Shares available for Option grant shall be granted under Options
to the Outside Directors on a pro rata basis. No further grants shall be made
until such time, if any, as additional Shares become available for grant under
the Plan through action of the stockholders to increase the number of Shares
which may be issued under the Plan or through cancellation or expiration of
Options previously granted hereunder.

         5.       ELECTION TO RECEIVE ANNUAL RETAINER IN STOCK OPTIONS OR
DEFERRED PHANTOM STOCK.

                  (a)      IRREVOCABLE ELECTION. On the date of each annual
meeting of stockholders of the Company during the term of this Plan, commencing
with the 2003 annual stockholders meeting, each Outside Director may make an
election to receive (an "Election") (i) Options in lieu of 50% or 100% of his or
her annual cash retainer for the year following the meeting or (ii) Deferred
Phantom Stock in lieu of 50% or 100% of his or her annual cash retainer for the
year following the meeting. The Election must be in writing and delivered to the
Secretary of the Company prior to the date of such annual stockholders meeting.
Any Election made by an Outside Director pursuant to this Section 5 shall be
irrevocable.

                  (b)      RETAINER OPTION GRANTS. On the date of each annual
meeting of stockholders of the Company, each Outside Director who has made an
Election to receive Stock Options in lieu of 50% or 100% of his or her annual
cash retainer shall automatically receive a Stock Option covering the number of
Shares determined by dividing (1) the product of (a) the amount of the annual
cash retainer covered by such Election, multiplied by (b) 3, by (2) the Fair
Market Value of a Share on that date, rounded to the nearest whole Share,
provided that sufficient Shares are available under the Plan for the grant of
such Stock Option (the "Retainer Option").

                           (i)      The terms of a Retainer Option granted
hereunder shall be as follows:

                                    (A)      the term of the Retainer Option
shall be ten (10) years.

                                    (B)      the Retainer Option shall be
exercisable only while the Outside Director remains a Director of the Company,
except as set forth in Section 9 hereof.

                                    (C)      the exercise price per Share shall
be 100% of the Fair Market Value per Share on the date of grant of the Retainer
Option. In the event that the date of grant of the Retainer Option is not a
trading day, the exercise price per Share shall be the Fair Market Value on the
next trading day immediately following the date of grant of the Retainer Option.

                                    (D)      the Retainer Option shall be fully
vested as to 25% of the Shares subject to the Retainer Option on the date of
grant and shall vest with respect to an additional 25% of such Shares every
ninety (90) days following the date of grant, so as to be 100% vested on the
date that is 270 days following the date of grant, subject to continued service
as on Outside Director.

                  (c)      DEFERRED PHANTOM STOCK. On the date of each annual
meeting of stockholders of the Company, Outside Directors who has made an
Election to receive Deferred Phantom Stock in lieu of 50% or 100% of their
annual cash retainer shall automatically have their account under the Outside
Director Stock Deferral Plan credited with the number of Deferred Phantom Stock
units determined by dividing (i) the amount of the annual cash retainer covered
by such Election by (ii) the Fair Market Value of a Share on that date, rounded
to the nearest whole Share, provided that sufficient Shares

                                        4

<PAGE>

are available under the Plan for the crediting of such Deferred Phantom Stock
units. The Deferred Phantom Stock units shall be fully vested as to 25% of units
on the date of grant and shall vest with respect to an additional 25% of such
units every ninety (90) days following the date of grant, so as to be 100%
vested on the date that is 270 days following the date of grant, subject to
continued service as on Outside Director. The Deferred Phantom Stock units shall
be held subject to the terms and conditions of the Outside Director Stock
Deferral Plan and the elections made thereunder.

         6.       ELIGIBILITY. Options and Deferred Phantom Stock may be granted
only to Outside Directors. An Outside Director who has been granted an Option or
Deferred Phantom Stock may, if he or she is otherwise eligible, be granted
additional Options or Deferred Phantom Stock in accordance with the provisions
of the Plan.

                  The Plan shall not confer upon any Outside Director any right
with respect to continuation of service as a Director or nomination to serve as
a Director, nor shall it interfere in any way with any rights which the Director
or the Company may have to terminate his or her directorship at any time.

         7.       TERM OF PLAN. The Plan shall become effective upon the earlier
to occur of its adoption by the Board or its approval by the stockholders of the
Company. It shall continue in effect for a term of ten (10) years unless sooner
terminated under Section 11 of the Plan.

         8.       FORM OF CONSIDERATION. The consideration to be paid for the
Shares to be issued upon exercise of an Option, including the method of payment,
shall consist of (i) cash, (ii) check, (iii) other shares which (x) in the case
of Shares acquired upon exercise of an Option, have been owned by the Optionee
for more than six (6) months on the date of surrender, and (y) have a Fair
Market Value on the date of surrender equal to the aggregate exercise price of
the Shares as to which said Option shall be exercised, (iv) delivery of a
properly executed exercise notice together with such other documentation as the
Company and the broker, if applicable, shall require to effect an exercise of
the Option and delivery to the Company of the sale or loan proceeds required to
pay the exercise price, or (v) any combination of the foregoing methods of
payment.

         9.       EXERCISE OF OPTION.

                  (a)      PROCEDURE FOR EXERCISE; RIGHTS AS A STOCKHOLDER. Any
Option granted hereunder shall be exercisable at such times as are set forth in
Sections 4 and 5 hereof.

                  An Option may not be exercised for a fraction of a Share.

                  An Option shall be deemed to be exercised when written notice
of such exercise has been given to the Company in accordance with the terms of
the Option by the person entitled to exercise the Option and full payment for
the Shares with respect to which the Option is exercised has been received by
the Company. Full payment may consist of any consideration and method of payment
allowable under Section 8 of the Plan. Until the issuance (as evidenced by the
appropriate entry on the books of the Company or of a duly authorized transfer
agent of the Company) of the stock certificate evidencing such Shares, no right
to vote or receive dividends or any other rights as a stockholder shall exist
with respect to the Optioned Stock, notwithstanding the exercise of the Option.
A share certificate or electronic notice covering the number of Shares so
acquired shall be issued to the Optionee as soon as practicable after exercise
of the Option. No adjustment shall be made for a dividend or other right for
which the record date is prior to the date the stock certificate or electronic
notice is issued, except as provided in Section 11 of the Plan.

                                        5

<PAGE>

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

                  (b)      RULE 16b-3. Options and Deferred Phantom Stock
granted to Outside Directors must comply with the applicable provisions of Rule
16b-3 promulgated under the Exchange Act or any successor thereto and shall
contain such additional conditions or restrictions as may be required thereunder
to qualify Plan transactions, and other transactions by Outside Directors that
otherwise could be matched with Plan transactions, for the maximum exemption
from Section 16 of the Exchange Act.

                  (c)      TERMINATION OF CONTINUOUS STATUS AS A DIRECTOR. In
the event an Optionee's Continuous Status as a Director terminates (other than
upon the Optionee's death or total and permanent disability (as defined in
Section 22(e)(3) of the Code) or Qualifying Retirement), the Optionee may
exercise his or her Option, but only within three (3) months from the date of
such termination, and only to the extent that the Optionee was entitled to
exercise it on the date of such termination (but in no event later than the
expiration of its ten (10) year term). To the extent that the Optionee was not
entitled to exercise an Option on the date of such termination, and to the
extent that the Optionee does not exercise such Option (to the extent otherwise
so entitled) within the time specified herein, the Option shall terminate.

                  (d)      DISABILITY OF OPTIONEE. In the event Optionee's
Continuous Status as a Director terminates as a result of total and permanent
disability (as defined in Section 22(e)(3) of the Code), the Optionee may
exercise his or her Option, but only within twelve (12) months from the date of
such termination, and only to the extent that the Optionee was entitled to
exercise it on the date of such termination (but in no event later than the
expiration of its ten (10) year term). To the extent that the Optionee was not
entitled to exercise an Option on the date of termination, or if he or she does
not exercise such Option (to the extent otherwise so entitled) within the time
specified herein, the Option shall terminate.

                  (e)      DEATH OF OPTIONEE. In the event of an Optionee's
death, the Optionee's estate or a person who acquired the right to exercise the
Option by bequest or inheritance may exercise the Option, but only within twelve
(12) months following the date of death, and only to the extent that the
Optionee was entitled to exercise it on the date of death (but in no event later
than the expiration of its ten (10) year term). To the extent that the Optionee
was not entitled to exercise an Option on the date of death, and to the extent
that the Optionee's estate or a person who acquired the right to exercise such
Option does not exercise such Option (to the extent otherwise so entitled)
within the time specified herein, the Option shall terminate.

                  (f)      QUALIFYING RETIREMENT OF OPTIONEE. Notwithstanding
the provisions set forth in Section 9(d) of the Plan, in the event of an
Optionee's Qualifying Retirement, the Optionee may exercise his or her Option,
but only within the lesser of (i) five years from the date of the Qualifying
Retirement, or (ii) the original ten (10) year term of the Option following the
date of termination, and only to the extent that the Optionee was entitled to
exercise it on the date of termination. To the extent that the Optionee was not
entitled to exercise an Option on the date of termination, or if he or she does
not exercise such Option (to the extent otherwise so entitled) within the time
specified herein, the Option shall terminate.

         10.      NON-TRANSFERABILITY OF OPTIONS. Options hereunder may not be
sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner
other than by will or by the laws of descent or distribution and may be
exercised, during the lifetime of the Optionee, only by the Optionee.

                                        6

<PAGE>

         11.      ADJUSTMENTS UPON CHANGES IN CAPITALIZATION, DISSOLUTION,
MERGER, ASSET SALE OR CHANGE OF CONTROL.

                  (a)      CHANGES IN CAPITALIZATION. Subject to any required
action by the stockholders of the Company, the number of Shares covered by each
outstanding Option or share of Deferred Phantom Stock, the number of Shares
which have been authorized for issuance under the Plan but as to which no
Options or Deferred Phantom Stock units have yet been granted or credited or
which have been returned to the Plan upon cancellation or expiration of an
Option, as well as the price per Share covered by each such outstanding Option,
and the number of Shares issuable pursuant to the automatic grant provisions of
Section 4 hereof shall be proportionately adjusted for any increase or decrease
in the number of issued Shares resulting from a stock split, reverse stock
split, stock dividend, combination or reclassification of the Common Stock, or
any other increase or decrease in the number of issued Shares effected without
receipt of consideration by the Company; provided, however, that conversion of
any convertible securities of the Company shall not be deemed to have been
"effected without receipt of consideration." 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 an Option or the number of Deferred Phantom Stock units
credited to an account.

                  (b)      DISSOLUTION OR LIQUIDATION. In the event of the
proposed dissolution or liquidation of the Company, to the extent that an Option
has not been previously exercised, it will terminate immediately prior to the
consummation of such proposed action.

                  (c)      MERGER OR ASSET SALE. Subject to Section 11(d), in
the event of a merger of the Company with or into another corporation, or the
sale of substantially all of the assets of the Company, each outstanding Option
shall be assumed or an equivalent option shall be substituted by the successor
corporation or a Parent or Subsidiary of the successor corporation. In the event
that the successor corporation does not agree to assume the Option or to
substitute an equivalent option, each outstanding Option shall become fully
vested and exercisable, including as to Shares as to which it would not
otherwise be exercisable. If an Option becomes fully vested and exercisable in
the event of a merger or sale of assets, the Board shall notify the Optionee
that the Option shall be fully exercisable for a period of thirty (30) days from
the date of such notice, and the Option shall terminate upon the expiration of
such period. For the purposes of this paragraph, the Option shall be considered
assumed if, following the merger or sale of assets, the option or right confers
the right to purchase, for each Share of Optioned Stock subject to the Option
immediately prior to the merger or sale of assets, the consideration (whether
stock, cash, or other securities or property) received in the merger or sale of
assets by holders of Common Stock for each Share held on the effective date of
the transaction (and if holders were offered a choice of consideration, the type
of consideration chosen by the holders of a majority of the outstanding Shares).

                  (d)      CHANGE OF CONTROL. In the event of a Change of
Control (as defined below), each Outside Director (i) shall fully vest in and
have the right to exercise each Option as to all of the Optioned Stock,
including Shares as to which it would not otherwise be vested or exercisable and
(ii) shall fully vest in each Deferred Phantom Stock unit. If an Option becomes
fully vested and exercisable in the event of a Change of Control, the
Administrator shall notify the Optionee in writing or electronically that the
Option shall be fully vested and exercisable for a period of fifteen (15) days
from the date of such notice, and the Option shall terminate upon the expiration
of such period.

                  A "Change of Control" means the occurrence of any of the
following events:

                           (i)      any "person," as such term is used in
Sections 13(d) and 14(d) of the Exchange Act, other than the Company, a
subsidiary of the Company or a Company employee benefit

                                        7

<PAGE>

plan, including any trustee of such plan acting as trustee, is or becomes the
"beneficial owner" (as defined in Rule 13d-3 under the Exchange Act), directly
or indirectly, of securities of the Company representing twenty percent (20%) or
more of the combined voting power of the Company's then outstanding securities
entitled to vote generally in the election of directors; or

                           (ii)     a merger or consolidation of the Company or
any direct or indirect subsidiary of the Company with any other corporation,
other than a merger or consolidation which would result in the voting securities
of the Company outstanding immediately prior thereto continuing to represent
(either by remaining outstanding or by being converted into voting securities of
the surviving entity) at least fifty percent (50%) of the total voting power
represented by the voting securities of the Company or such surviving entity
outstanding immediately after such merger or consolidation, or the stockholders
of the Company approve an agreement for the sale or disposition by the Company
of all or substantially all the Company's assets; or

                           (iii)    a change in the composition of the Board, as
a result of which fewer than a majority of the directors are Incumbent
Directors. "Incumbent Directors" shall mean directors who either (A) are
Directors as of the date this amendment to the Plan is approved by the Board, or
(B) are elected, or nominated for election, to the Board with the affirmative
votes of at least a majority of the Incumbent Directors AND whose election or
nomination was not in connection with any transaction described in (i) or (ii)
above or in connection with an actual or threatened proxy contest relating to
the election of directors of the Company.

         12.      AMENDMENT AND TERMINATION OF THE PLAN.

                  (a)      AMENDMENT AND TERMINATION. Except as set forth in
Section 4, the Board may at any time amend, alter, suspend, or discontinue the
Plan, but no amendment, alteration, suspension, or discontinuation shall be made
which would impair the rights of any Optionee or Outside Director Stock Deferral
Plan participant under any grant theretofore made, without his or her consent,
provided that the Board may not amend the Plan to permit the repricing,
including by way of exchange, of any Option without stockholder approval. In
addition, to the extent necessary and desirable to comply with Rule 16b-3 under
the Exchange Act (or any other applicable law or regulation), the Company shall
obtain stockholder approval of any Plan amendment in such a manner and to such a
degree as required.

                  (b)      EFFECT OF AMENDMENT OR TERMINATION. Any such adverse
amendment without consent or termination of the Plan shall not affect Options or
Deferred Phantom Stock units already granted or credited and such Options and
Deferred Phantom Stock units shall remain in full force and effect as if this
Plan had not been amended or terminated.

         13.      TIME OF GRANTING OPTIONS. The date of grant of an Option
shall, for all purposes, be the date determined in accordance with Section 4
hereof.

         14.      CONDITIONS UPON ISSUANCE OF SHARES. Shares shall not be issued
pursuant to the exercise of an Option unless the exercise of such Option and the
issuance and delivery of such Shares pursuant thereto shall comply with all
relevant provisions of law, including, without limitation, the Securities Act of
1933, as amended, the Exchange Act, the rules and regulations promulgated
thereunder, state securities laws, and the requirements of any stock exchange
upon which the Shares may then be listed, and shall be further subject to the
approval of counsel for the Company with respect to such compliance.

                  As a condition to the exercise of an Option, the Company may
require the person exercising such Option to represent and warrant at the time
of any such exercise that the Shares are being

                                        8

<PAGE>

purchased only for investment and without any present intention to sell or
distribute such Shares, if, in the opinion of counsel for the Company, such a
representation is required by any of the aforementioned relevant provisions of
law.

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

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

         16.      OPTION AGREEMENT. Options shall be evidenced by written option
agreements in such form as the Board shall approve.

                                        9

<PAGE>

                      APPENDIX A TO THE 1995 DIRECTOR PLAN

                               VISX, INCORPORATED

                      OUTSIDE DIRECTOR STOCK DEFERRAL PLAN

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                               PAGE
                                                                                               ----
<S>                                                                                            <C>
                                     ARTICLE I DEFINITIONS

1.1      "BOARD OF DIRECTORS"..............................................................     1

1.2      "COMMITTEE".......................................................................     1

1.3      "CREDITED INVESTMENT RETURN (LOSS)"...............................................     1

1.4      "DEFERRAL ACCOUNT"................................................................     1

1.5      "DEFERRAL AMOUNT".................................................................     1

1.6      "DEFERRAL ELECTION"...............................................................     1

1.7      "PARTICIPANT".....................................................................     1

1.8      "PLAN"............................................................................     1

                                     ARTICLE II ELIGIBILITY

2.1      ELIGIBLE PERSONS..................................................................     1

2.2      COMMENCEMENT OF PARTICIPATION.....................................................     2

2.3      TERMINATION OF PARTICIPATION......................................................     2

                               ARTICLE III DEFERRED PHANTOM STOCK

3.1      PHANTOM STOCK DEFERRALS...........................................................     2

3.2      NO WITHDRAWAL.....................................................................     2

        ARTICLE IV CREDITED INVESTMENT RETURN (LOSS) ON DEFERRAL ACCOUNTS

4.1      DEFERRAL ACCOUNT..................................................................     2

4.2      CREDITED INVESTMENT RETURN (LOSS).................................................     2

                                       ARTICLE V BENEFITS

5.1      DISTRIBUTION OF BENEFITS..........................................................     3

5.2      CHANGE OF DISTRIBUTION ELECTION...................................................     3

5.3      PAYMENT TO ESTATE.................................................................     3

5.4      AUTOMATIC LUMP-SUM DISTRIBUTION FOR ACCOUNTS BELOW $25,000........................     3

5.5      TAX WITHHOLDING...................................................................     3

                    ARTICLE VI OBLIGATION TO PAY SUPPLEMENTAL PARTICIPANT BENEFITS

6.1      BENEFITS PAID FROM GENERAL CORPORATE ASSETS; PAYMENT IN STOCK.....................     3

6.2      NO SECURED INTEREST...............................................................     3

                                    ARTICLE VII ADMINISTRATION

7.1      ADMINISTRATION OF THE PLAN........................................................     3

7.2      INDEMNIFICATION...................................................................     4
</TABLE>

                                       ii

<PAGE>

<TABLE>
<S>                                                                                             <C>
                                    ARTICLE VIII MISCELLANEOUS

8.1      NONTRANSFERABILITY................................................................     4

8.2      BINDING EFFECT....................................................................     4

8.3      REIMBURSEMENT OF COSTS............................................................     4

8.4      ARBITRATION.......................................................................     4

8.5      APPLICABLE LAW....................................................................     4

8.6      ENTIRE AGREEMENT..................................................................     4

8.7      Termination or Amendment of Plan..................................................     4
</TABLE>

                                       iii

<PAGE>

                               VISX, INCORPORATED

                      OUTSIDE DIRECTOR STOCK DEFERRAL PLAN

                  This VISX, Incorporated Outside Director Stock Deferral Plan
is adopted effective as of the date of the Company's 2003 annual meeting of
stockholders.

                                    ARTICLE I

                                   DEFINITIONS

                  Whenever used herein, the masculine pronoun shall be deemed to
include the feminine, and the singular to include the plural, unless the context
clearly indicates otherwise, and the following definitions shall govern the Plan
(capitalized terms not defined below shall have the same defined meaning as
specified in the 1995 Director Option and Stock Deferral Plan):

                  1.1      "BOARD OF DIRECTORS" or "BOARD" means the Board of
Directors of VISX, Incorporated.

                  1.2      "COMMITTEE" means an independent Committee appointed
by the Board to administer this Plan and to take such other actions as may be
specified herein.

                  1.3      "CREDITED INVESTMENT RETURN (LOSS)" means the
hypothetical investment return which shall be credited to a Participant's
Deferral Account pursuant to Article IV.

                  1.4      "DEFERRAL ACCOUNT" means the book entry account
established under this Plan for each Participant to which shall be credited (or
debited) such Participant's Deferral Amount and Credited Investment Return
(Loss) and which shall be reduced by any distributions made to such Participant
and any charges which may be imposed on such Deferral Account pursuant to the
terms of this Plan.

                  1.5      "DEFERRAL AMOUNT" means the Deferred Phantom Stock
Amount which Participant elects to contribute pursuant to Article III.

                  1.6      "DEFERRAL ELECTION" means the form of Deferred
Phantom Stock Election as prescribed by the Committee, as modified from time to
time.

                  1.7      "PARTICIPANT" means a present or former Outside
Director (or estate or beneficiaries of an Outside Director) who has a Deferral
Account under this Plan.

                  1.8      "PLAN" shall mean this VISX, Incorporated Outside
Director Stock Deferral Plan, as it may be amended from time to time.

                                   ARTICLE II

                                   ELIGIBILITY

                  2.1      ELIGIBLE PERSONS. Eligibility for participation in
this Plan shall be limited to Outside Directors who have elected to receive
Deferred Phantom Stock in lieu of their annual retainer under the Company's 1995
Director Option and Stock Deferral Plan and their estates and beneficiaries.

                                        1

<PAGE>

                  2.2      COMMENCEMENT OF PARTICIPATION. A Participant may
begin participation in this Plan immediately following the submission of an
irrevocable Deferral Election in accordance with the terms of the 1995 Director
Option and Stock Deferral Plan.

                  2.3      TERMINATION OF PARTICIPATION. Active participation in
this Plan shall end when a Participant's Board service terminates for any
reason. No contributions to this Plan shall be made with respect to a
Participant's Deferral Account after such termination date. Upon termination of
Board service, a Participant shall remain an inactive Participant in the Plan
until all of the benefits to which he or she is entitled hereunder have been
paid in full.

                                  ARTICLE III

                             DEFERRED PHANTOM STOCK

                  3.1      PHANTOM STOCK DEFERRALS.

                           (a)      Upon submitting a Deferral Election to the
Company, in lieu of his or her annual retainer, a Participant's Deferral Account
under this Plan shall be credited with a number of Deferred Phantom Stock shares
determined in accordance with Section 5(c) of the 1995 Director Option and Stock
Deferral Plan. The Participant shall satisfy the self-employment tax obligations
arising from the credit of Deferred Phantom Stock to his or her Deferral
Account.

                           (b)      A Participant's Deferral Election shall be
irrevocable, except as provided in Section 5.2 of this Plan.

                  3.2      NO WITHDRAWAL. Except as provided in Section 5.3
below, Deferral Amounts may not be withdrawn by a Participant and shall be paid
only in accordance with the provisions of this Plan.

                                   ARTICLE IV

             CREDITED INVESTMENT RETURN (LOSS) ON DEFERRAL ACCOUNTS

                  4.1      DEFERRAL ACCOUNT.

                           (a)      A Deferral Account shall be established and
maintained for each Participant.

                  4.2      CREDITED INVESTMENT RETURN (LOSS). Each Participant's
Deferral Account shall be credited (or debited) monthly with the Credited
Investment Return (Loss) attributable to his or her Deferral Account. The
Credited Investment Return (Loss) is the amount which the Participant's Deferral
Account would have earned if the amounts credited to the Deferral Account had,
in fact, been invested in the Common Stock, purchased at the closing sales price
on the date of the applicable Board meeting (as specified in Section 5(c) of the
1995 Director Option and Stock Deferral Plan), and assuming reinvestment of all
dividends back into such Common Stock at the Common Stock closing sales price on
the date of the dividend distribution.

                                        2

<PAGE>

                                   ARTICLE V

                                    BENEFITS

                  5.1      DISTRIBUTION OF BENEFITS. Benefits shall be
distributed in accordance with the elections specified within a Participant's
Deferral Election.

                  5.2      CHANGE OF DISTRIBUTION ELECTION. A Participant may
file an amended election to change his or her distribution election at any time
which is more than one (1) year prior to the applicable specified fixed date at
which payment of benefits would otherwise commence. Any amended election which
is filed within one (1) year of the applicable specified date at which payment
of benefits shall commence shall be void and without effect and the most
recently effective election shall control instead.

                  5.3      PAYMENT TO ESTATE. In the event a Participant dies
after installment payments have begun but before all of the installments are
paid, the undistributed installments shall be paid to his or her estate as they
become due.

                  5.4      AUTOMATIC LUMP-SUM DISTRIBUTION FOR ACCOUNTS BELOW
$25,000. Notwithstanding any other provisions of this Plan or the provisions of
a Participant's Deferral Election, in the event that a Participant has less than
twenty-five thousand dollars ($25,000) credited to his or her Deferral Account
as of the date of his or her termination of Board service, 100% of his or her
Deferral Account shall be distributed to him or her in a single lump-sum
distribution within a reasonable amount of time following the date of such
termination of service.

                  5.5      TAX WITHHOLDING. All distributions under this Plan
shall be subject to all applicable withholding for state and federal income tax
and to any other federal, state or local tax which may be applicable thereto.

                                   ARTICLE VI

               OBLIGATION TO PAY SUPPLEMENTAL PARTICIPANT BENEFITS

                  6.1      BENEFITS PAID FROM GENERAL CORPORATE ASSETS; PAYMENT
IN STOCK. All benefits payable to a Participant hereunder, shall be paid by the
Company in shares of Common Stock.

                  6.2      NO SECURED INTEREST. Deferral Accounts shall be
subject to the claims of creditors of the Company. Each Participant is a general
unsecured creditor of the Company with respect to the promises of the Company
made herein.

                                   ARTICLE VII

                                 ADMINISTRATION

                  7.1      ADMINISTRATION OF THE PLAN. This Plan shall be
administered by the Committee. The Committee shall have full power and
discretionary authority to administer, construe and interpret the Plan, to
establish procedures for administering this Plan, to prescribe forms, and take
any and all necessary or desirable actions in connection with this Plan. The
Committee's interpretation and construction of this Plan shall be conclusive and
binding on all persons. The Committee may appoint a

                                        3

<PAGE>

plan administrator or any other agent and delegate to them such powers and
duties in connection with the administration of this Plan as the Committee may
from time to time prescribe.

                  7.2      INDEMNIFICATION. The Committee and each of its
members are indemnified by the Company against any and all liabilities incurred
by reason of any action taken in good faith pursuant to the provisions of this
Plan.

                                  ARTICLE VIII

                                  MISCELLANEOUS

                  8.1      NONTRANSFERABILITY. The right of each Participant or
any other person to the payment of any benefits under this Plan shall not be
assigned, transferred, pledged or encumbered.

                  8.2      BINDING EFFECT. This Plan shall be binding upon and
inure to the benefit of the Company, its successors and assigns and each
Participant and his or her heirs, executors, administrators and legal
representatives.

                  8.3      REIMBURSEMENT OF COSTS. If the Company, a Participant
or a successor in interest to either of the foregoing, brings legal action to
enforce any of the provisions of this Plan, including an action described in
Section 8.4 of this Plan, the prevailing party in such legal action shall be
reimbursed by the other party for the prevailing party's costs of such legal
action including, without limitation, reasonable fees of attorneys, accountants
and similar advisors and expert witnesses.

                  8.4      ARBITRATION. Any dispute or claim relating to or
arising out of this Plan shall be fully and finally resolved by binding
arbitration conducted by the American Arbitration Association in Santa Clara,
California.

                  8.5      APPLICABLE LAW. This Plan shall be construed in
accordance with and governed by the laws of the State of California.

                  8.6      ENTIRE AGREEMENT. This Plan, 1995 Director Option and
Stock Deferral Plan and each applicable Deferral Election constitute the entire
understanding and agreement with respect to this Plan, and there are no
agreements, understandings, restrictions, representations or warranties among
any Participant and the Company other than those as set forth or provided for
therein.

                  8.7      Termination or Amendment of Plan.

                           (a)      This Plan may be amended by the Company at
any time in its sole discretion by resolution by the Board; provided, however,
that no amendment may be made which would alter the irrevocable nature of a
Deferral Election or which would reduce the amount credited to an Participant's
Deferral Account on the date of such amendment.

                           (b)      Notwithstanding the foregoing paragraph or
any other provision in this Plan to the contrary, the Company reserves the right
to terminate the Plan in its entirety at any time upon fifteen (15) days notice
to Outside Directors. If this Plan is terminated, all benefits shall be paid
pursuant to the provisions of Article 5 as if such Participant had voluntarily
terminated Board service on the date of Plan termination.

                                        4

<PAGE>

                  IN WITNESS WHEREOF, the Company has caused this Plan to be
executed by a duly authorized officer effective as of the Effective Date.

                                         VISX, INCORPORATED

                                         By: ___________________________________

                                        5

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