Document:

EIGHTH AMENDMENT TO THE THIRD
                      AMENDED AND RESTATED CREDIT AGREEMENT

                                                        Dated as of May 25, 2000

                  EIGHTH AMENDMENT TO THE THIRD AMENDED AND RESTATED CREDIT
AGREEMENT (this "Amendment") among Glenoit Corporation (the "Borrower"), the
Lenders named in the Credit Agreement (defined below) (the "Lenders"), Banque
Nationale de Paris (the "Agent"), as Agent, Arranger, Issuing Bank and Swing
Line Bank, Fleet National Bank, as Syndication Agent, and LaSalle National Bank,
as Documentation Agent.

                  PRELIMINARY STATEMENTS:

                  (1) The Borrower, the Lenders, the Agent, the Arranger, the
Issuing Bank, the Swing Line Bank, the Syndication Agent and the Documentation
Agent have entered into a Third Amended and Restated Credit Agreement, dated as
of February 12, 1999 (as the same has been and in the future may be amended and
modified from time to time, the "Credit Agreement"). Capitalized terms not
otherwise defined in this Amendment have the same meanings as specified in the
Credit Agreement as amended hereby.

                  (2) Section 2.06(b)(iii) of the Credit Agreement provides that
the Borrower is obligated to prepay an aggregate principal amount of Working
Capital Advances, Swing Line Advances and Letter of Credit Advances in an amount
by which such Advances plus the Available Amount of all Letters of Credit then
outstanding (together with such Advances, the "Outstanding Amount") exceeds the
Loan Value of Eligible Collateral, based upon the most recent Borrowing Base
Certificate.

                  (3) On February 23, 2000, Borrower delivered to the Agent a
Borrowing Base Certificate dated February 23, 2000 (the "February BB
Certificate") reflecting that the Outstanding Amount exceeded the Loan Value of
Eligible Collateral. The Borrower was then obligated under Section 2.06(b)(iii)
of the Credit Agreement to make a principal prepayment in the approximate amount
of $2,000,000, which the Borrower failed to make.

                  (4) The failure of the Borrower to make the principal
prepayment required by Section 2.06(b)(iii) of the Credit Agreement as aforesaid
constitutes on Event of Default under Section 6.01(a) of the Credit Agreement
(the "Section 2.06(b)(iii) Event of Default"), which the Borrower has
acknowledged by its letter to the Agent, dated February 23, 2000.

                  (5) Section 5.04 of the Credit Agreement sets forth the
financial covenants of the Borrower. On April 9, 2000, the Borrower delivered a
letter to the Agent confirming that the Borrower is in breach of the Section
5.04 covenants as of April 1, 2000. The breach of such covenants constitutes an
Event of Default under Section 6.01(c) of the Credit Agreement (the "Covenant
Events of Default").

                  (6) On April 14, 2000, the Agent delivered to the Borrower and
United States Trust Company of New York, the Indenture Trustee under the
Subordinated Debt Documents (the "Indenture Trustee"), a letter (the
"Subordinated Debt Notice") (i) confirming that, as a result of the Section
2.06(b)(iii) Event of Default, the Borrower was prohibited from making any

<PAGE>

payments whatsoever in respect of the Subordinated Notes, and (ii) notifying the
Company and the Indenture Trustee that if, but only if, the Section 2.06(b)(iii)
Event of Default is determined not to be a payment default and the Borrower is
not otherwise in payment default under the Credit Agreement, the Subordinated
Debt Notice shall constitute a Blockage Notice (as defined in the Subordinated
Debt Documents) based on the Covenant Events of Default.

                  (7) Pursuant to the terms and conditions set forth in that
certain Seventh Amendment to the Third Amended and Restated Credit Agreement,
dated as of April 28, 2000 (the "Seventh Amendment"), the Lenders agreed that,
provided the Borrower is working diligently to devise a restructuring plan
acceptable to its creditors and equity holders, the Lenders may, in their
discretion, continue to provide Working Capital Advances and issue Letters of
Credit on the conditions, for the limited period and for the limited purposes
set forth in the Seventh Amendment.

                  (8) In order to provide the Loan Parties with additional
liquidity, the Loan Parties have requested and the Lenders, subject to the terms
and conditions of the Credit Agreement as amended hereby, have consented (a) to
increase the Available Amount of Letters of Credit and the available amount of
Working Capital Loans for the limited purposes and for the limited period
hereinafter set forth, and (b) to the issuance by the Lenders, in their
discretion, of Standby Letters of Credit in the limited amounts, for the limited
purposes and for the limited period hereinafter set forth.

                  SECTION 1. Working Capital Advances and Letters of Credit.
Subject to the conditions precedent set forth in Section 3 hereof, the Lenders
hereby agree that the Borrower may request (provided that on the date of such
request, the Borrower and Subsidiaries shall not collectively have in their
possession or under their control cash and Cash Equivalents in an aggregate
amount greater than $1,000,000 (net of undrawn and outstanding checks of such
date)) and the Agent, in its discretion (unless otherwise instructed by the
Majority Working Capital Lenders (as defined herein)), may provide Working
Capital Advances and issue Letters of Credit from the date hereof through and
including June 15, 2000 (the "Amendment Period"); provided, however, that (a)
the aggregate Available Amount of all Letters of Credit outstanding shall not at
any time exceed $5.314 million less the aggregate Letter of Credit Advances at
such time, (b) issued and outstanding Standby Letters of Credit shall not at any
time exceed $1,000,000 in the aggregate, (c) the sum of Working Capital Advances
and Swing Line Advances shall not at any time exceed $46.6 million; and,
provided further that nothing contained herein shall in any way limit, impair or
modify the requirements of Section 2.06(b)(iii) of the Credit Agreement.

                  SECTION 2. Amendments. The Credit Agreement is, effective as
of the date hereof and subject to the satisfaction of the conditions precedent
in Section 3 below, hereby amended as follows:

                  (a) During the Amendment Period, Schedule I to the Credit
         Agreement is hereby amended to increase Letter of Credit Commitment of
         the Issuing Bank from $5,000,000 to $5,314,000.

                                      -2-
<PAGE>

                  (b) During the Amendment Period, Section 2.01(e) of the Credit
         Agreement shall be amended by deleting the last sentence thereof and
         adding the following language at the end of such Section:

                           Anything to the contrary set forth in the Loan
                  Documents notwithstanding, two Business Days prior to the
                  issuance of any Trade Letter of Credit, the Borrower shall
                  provide, with respect to all Letters of Credit, documentation
                  to the Agent describing the recipient, amount and purpose of
                  such Letter of Credit, including, without limitation, with
                  respect to Trade Letters of Credit, the customer for whose
                  benefit the Inventory (the payment for which is to be secured
                  by the proposed Trade Letter of Credit) is being ordered.

                  (c) Section 2.06(b) of the Credit Agreement shall be amended
         by adding a new subsection (viii) as follows:

                  (viii)   Anything to the contrary set forth in the Loan
                           Documents notwithstanding, if, on any consecutive
                           three (3) Business Days, the Borrower and its
                           Subsidiaries shall collectively have in their
                           possession or under their control cash and/or Cash
                           Equivalents in aggregate amount in excess of
                           $1,000,000 (net of undrawn and outstanding checks as
                           of such date) (such excess, on any given day, the
                           "Cash Surplus"), the Borrower shall, before the end
                           of such third consecutive Business Day, prepay the
                           Working Capital Advances in an amount equal to the
                           Cash Surplus for such day.

                  (d) Section 2.06(b)(v) shall be amended by deleting the words
         "or (iii)" in the second line thereof and replacing the same by ",(iii)
         or (viii)".

                  (e) During the Amendment Period, Section 5.02(f)(viii) of the
         Credit Agreement shall be amended by adding after the words "Cash
         Equivalents", the following: "(excluding actual cash held in Blocked
         Accounts with Blocked Account Banks (as such terms are defined in the
         Third Amended and Restated Security Agreement))

                  (f) The Credit Agreement shall be amended by adding a new
         Section 5.02(p) as follows:

                           (p) Cash Holdings. None of the Loan Parties shall at
                  any time hold, or permit any of its Subsidiaries to hold,
                  other than in Blocked Accounts with Blocked Account Banks (as
                  such terms are defined in the Third Amended and Restated
                  Security Agreement), any cash which, when combined with the
                  cash held by all other Loan Parties and their Subsidiaries,
                  would aggregate more than $750,000.

SECTION 3. Conditions of Effectiveness of Amendment. This Amendment shall become
effective as of the date first above written when, and only when, the following
conditions precedent shall have been satisfied:

                                      -3-
<PAGE>

                  (a) The Agent shall have received counterparts of this
         Amendment executed by the Borrower, the Agent and the required number
         of Lenders.

                  (b) The Borrower shall have reimbursed or otherwise paid all
         reasonable costs and expenses of the Agent paid or incurred in
         connection with the Borrower or the Credit Agreement, and theretofore
         presented to the Borrower for payment, including, without limitation,
         in connection with the preparation, execution, delivery and
         administration of this Amendment (including, without limitation, (a)
         all outstanding fees and disbursements of (a) Shearman & Sterling
         (including the outstanding bill in the amount of $30,548.34) and Kramer
         Levin Naftalis & Frankel, LLC ("Kramer Levin") in their capacity as
         counsel to the Agent, and (b) Zolfo Cooper LLP, in its capacity as
         consultant to the Agent's counsel ("Zolfo Cooper").

                  SECTION 4. Representations and Warranties of the Borrower. The
Borrower represents and warrants as follows:

                  (a) Each Loan Party is a corporation duly organized, validly
         existing and in good standing under the laws of the jurisdiction of its
         organization.

                  (b) The execution, delivery and performance by the Borrower of
         this Amendment and the Loan Documents, as amended hereby, to which it
         is or is to be a party, is within the Borrower's corporate powers, has
         been duly authorized by all necessary corporate action and does not (i)
         contravene the Borrower's charter or by-laws, (ii) violate any law
         (including, without limitation, the Securities Exchange Act of 1934, as
         amended, and the Racketeer Influenced and Corrupt Organizations Chapter
         of the Organized Crime Control Act of 1970), rule or regulation
         (including, without limitation, Regulation X of the Board of Governors
         of the Federal Reserve System), or any order, writ, judgment,
         injunction, decree, determination or award, binding on or affecting the
         Borrower or any of its Subsidiaries or any of their properties, (iii)
         conflict with or result in the breach of, or constitute a default
         under, any contract, loan agreement, indenture, mortgage, deed of
         trust, lease or other instrument binding on or affecting the Borrower,
         any of its Subsidiaries or any of their properties or (iv) except for
         the Liens created under the Loan Documents, result in or require the
         creation or imposition of any Lien upon or with respect to any of the
         properties of the Borrower or any of its Subsidiaries.

                  (c) No authorization or approval or other action by, and no
         notice to or filing with, any governmental authority or regulatory body
         or any other third party is required for the due execution, delivery,
         recordation, filing or performance by the Borrower of this Amendment or
         any of the Loan Documents, as amended hereby, to which it is or is to
         be a party.

                  (d) With the exception of the Section 2.06(b)(iii) Event of
         Default and the Covenant Events of Default described herein, there are
         no other Defaults or Events of Default by Borrower as of the date
         hereof.

                  (e) This Amendment has been duly executed and delivered by the
         Borrower. This Amendment and each of the Loan Documents, as amended
         hereby, to which the

                                      -4-
<PAGE>

         Borrower is a party are legal, valid and binding obligations of the
         Borrower, enforceable against the Borrower in accordance with their
         respective terms, except as enforceability may be limited by
         bankruptcy, insolvency, reorganization, moratorium or other laws
         relating to or limiting creditors' rights or by equitable principles
         generally.

                  (f) There is no action, suit, investigation, litigation or
         proceeding affecting the Borrower or any of its Subsidiaries
         (including, without limitation, any Environmental Action) pending or
         threatened before any court, governmental agency or arbitrator that (i)
         would be reasonably likely to have a Material Adverse Effect or (ii)
         purports to affect the legality, validity or enforceability of this
         Amendment or any of the Loan Documents, as amended hereby.

                  SECTION 5. Definitions. For the purposes of this Amendment,
"Majority Working Capital Lenders" shall mean at any time, Lenders owed or
holding at least 51% of the sum of (a) the aggregate principal amount of the sum
of all Working Capital Advances, Swing Line Advances and Letter of Credit
Advances outstanding at such time, (b) the aggregate Available Amount of all
Letters of Credit outstanding at such time, and (c) the aggregate Unused Working
Capital Commitments at such time.

                  SECTION 6. Reference to and Effect on the Credit Agreement,
the Loan Documents, and the Subordinated Notes.

                  (a) On and after the effectiveness of this Amendment, each
         reference in the Credit Agreement to "this Agreement", "hereunder",
         "hereof" or words of like import referring to the Credit Agreement, and
         each reference in the Notes and each of the other Loan Documents to
         "the Credit Agreement", "thereunder", "thereof" or words of like import
         referring to the Credit Agreement, shall mean and be a reference to the
         Credit Agreement, as amended by this Amendment.

                  (b) The Credit Agreement, the Notes and each of the other Loan
         Documents, as specifically amended by this Amendment, are and shall
         continue to be in full force and effect and are hereby in all respects
         ratified and confirmed. Without limiting the generality of the
         foregoing, the Collateral Documents and all of the Collateral described
         therein do and shall continue to secure the payment of all Obligations
         of the Loan Parties under the Loan Documents, in each case as amended
         by this Amendment.

                  (c) The Borrower hereby agrees that (i) the Borrower is truly
         and justly indebted to the Secured Parties, without defense,
         counterclaim or offset of any kind in the full amount of the Secured
         Obligations and (ii) the Secured Obligations are secured by valid,
         perfected, enforceable and unavoidable first priority Liens and
         security interests upon the Collateral senior to all other security
         interests and liens upon the Collateral (except as set forth in the
         Third Amended and Restated Security Agreement and the Credit
         Agreement), granted by the Loan Parties to the Agent for the ratable
         benefit of the Secured Parties.

                                      -5-
<PAGE>

                  (d) The execution, delivery and effectiveness of this
         Amendment shall not, except as expressly provided herein, operate as a
         waiver of any right, power or remedy of any Lender Party or the Agent
         under any of the Loan Documents, nor constitute a waiver of any
         provision of any of the Loan Documents.

                  (e) This Amendment shall not constitute a waiver of the
         Section 2.06(b)(iii) Event of Default, the Covenant Events of Default
         or any other Default or Event of Default existing as of the date
         hereof, nor shall this Amendment authorize or be deemed to authorize
         any payment by the Borrower in respect of the Subordinated Notes or
         terminate or be deemed to terminate the payment block existing in
         respect of the Subordinated Notes.

                  SECTION 7. Fees; Costs and Expenses. The Borrower agrees to
pay on demand all reasonable costs and expenses of the Agent in connection with
the preparation, execution, delivery and administration, modification and
amendment of this Amendment and the other instruments and documents to be
delivered hereunder (including, without limitation, the reasonable fees and
disbursements of counsel and financial advisor to the Agent) in accordance with
the terms of Section 8.04 of the Credit Agreement.

                  SECTION 8. Execution in Counterparts. This Amendment may be
executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute but one and the same
agreement. Delivery of an executed counterpart of a signature page to this
Amendment by telecopier shall be effective as delivery of a manually executed
counterpart of this Amendment.

                  SECTION 9. Governing Law. This Amendment shall be governed by,
and construed in accordance with, the laws of the State of New York.

                                      -6-
<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have caused this
Amendment to be executed by their respective officers thereunto duly authorized,
as of the date first above written.

                           GLENOIT CORPORATION

                           By       /s/ Thomas J. O'Gorman
                                    ---------------------------------------
                           Name:    Thomas J. O'Gorman
                           Title:   President and Chief Executive Officer

                           AGENT

                           BANQUE NATIONALE DE PARIS,
                                    as Agent and as a Lender

                           By       /s/ David Barcus
                                    ---------------------------------------
                           Name:    David Barcus
                           Title:   Director

                           By       /s/ Richard Cushing
                                    ---------------------------------------
                           Name:    Richard Cushing
                           Title:   Director

                           LENDERS

                           BOEING CAPITAL CORPORATION

                           By       /s/ David Nelson
                                    ---------------------------------------
                           Name:    David Nelson
                           Title:   Special Credits Officer

                           CENTURA BANK

                           By       /s/ Lowry D. Perry
                                    ---------------------------------------
                           Name:    Lowry D. Perry
                           Title:   Bank of Filer

                                      -7-
<PAGE>

                          COMERICA

                           By       /s/ David W. Day
                                    ---------------------------------------
                           Name:    David W. Day
                           Title:   Vice President

                           DEUTSCHE FINANCIAL SERVICES

                           By       /s/ Philip G. Porcher, IX
                                    ---------------------------------------
                           Name:    Philip G. Porcher, IX
                           Title:   Vice President

                           FIRST SOURCE FINANCIAL LLP,
                           By First Source Financial, Inc., as its
                                Agent/Manager

                           By       /s/ John P. Thacker
                                    ---------------------------------------
                           Name:    John P. Thacker
                           Title:   Senior Vice President

                           FLEET BANK, N.A.

                           By       /s/ Michael S. Haines
                                    ---------------------------------------
                           Name:    Michael S. Haines
                           Title:   Senior Vice President

                           INVESCO

                           By       /s/ Gregory Stoeckle
                                    ---------------------------------------
                           Name:    Gregory Stoekle
                           Title:   Authorized Signatory

                                      -8-
<PAGE>

                           LASALLE BANK NATIONAL ASSOCIATION

                           By       /s/ Margaret P. Heger
                                    ---------------------------------------
                           Name:    Margaret P. Heger
                           Title:   First Vice President

                           KZH ING-1 LLC

                           By       /s/ Peter Chin
                                    ---------------------------------------
                           Name:    Peter Chin
                           Title:   Authorized Agent

                           KZH ING-2 LLC

                           By       /s/ Peter Chin
                                    ---------------------------------------
                           Name:    Peter Chin
                           Title:   Authorized Agent

                           KHZ ING-3 LLC

                           By       /s/ Peter Chin
                                    ---------------------------------------
                           Name:    Peter Chin
                           Title:   Authorized Agent

                           METROPOLITAN LIFE
                                    INSURANCE COMPANY

                           By       /s/ James R. Dingher
                                    ---------------------------------------
                           Name:    James R. Dingher
                           Title:   Director

                                      -9-
<PAGE>

                           VAN KAMPEN SENIOR FLOATING
                                    RATE FUND

                           By       /s/ Darvin D. Pierce
                                    ---------------------------------------
                           Name:    Darvin D. Pierce
                           Title:   Vice President

                           VAN KAMPEN PRIME RATE
                                    INCOME TRUST

                           By       /s/ Darvin D. Pierce
                                    ---------------------------------------
                           Name:    Darvin D. Pierce
                           Title:   Vice President

                           FLEET BUSINESS CREDIT CORPORATION

                           By       /s/ Stephen Y. McGehee
                                    ---------------------------------------
                           Name:    Stephen Y. McGehee
                           Title:   Senior Vice President

                                      -10-ANDRX CORPORATION
                             2000 STOCK OPTION PLAN

         1. PURPOSE. The purpose of the Andrx Corporation 2000 Stock Option Plan
(the "Plan") is to advance the interests of Andrx Corporation., a Florida
corporation (the "Company"), by providing an additional incentive to attract,
retain and motivate highly qualified and competent persons who are key to the
Company, and upon whose efforts and judgment the success of the Company and its
Subsidiaries is largely dependent, including key employees, consultants,
independent contractors, Officers and Directors, by authorizing the grant of
options to purchase Common Stock of the Company to persons who are eligible to
participate hereunder, thereby encouraging stock ownership in the Company by
such persons, all upon and subject to the terms and conditions of this Plan.

         2. DEFINITIONS. As used herein, the following terms shall have the
meanings indicated:

                  (a) "Board" shall mean the Board of Directors of the Company.

                  (b) "Cause" shall mean any of the following:

                           (i) a determination by the Company that there has
been a willful, reckless or grossly negligent failure by the Optionee to perform
his or her duties as an employee of the Company;

                           (ii) a determination by the Company that there has
been a willful breach by the Optionee of any of the material terms or provisions
of any employment agreement between such Optionee and the Company;

                           (iii) any conduct by the Optionee that either results
in his or her conviction of a felony under the laws of the United States of
America or any state thereof, or of an equivalent crime under the laws of any
other jurisdiction;

                           (iv) a determination by the Company that the Optionee
has committed an act or acts involving fraud, embezzlement, misappropriation,
theft, breach of fiduciary duty or material dishonesty against the Company, its
properties or personnel;

                           (v) any act by the Optionee that the Company
determines to be in willful or wanton disregard of the Company's best interests,
or which results, or is intended to result, directly or indirectly, in improper
gain or personal enrichment of the Optionee at the expense of the Company;

                           (vi) a determination by the Company that there has
been a willful, reckless or grossly negligent failure by the Optionee to comply
with any rules, regulations, policies or procedures of the Company, or that the
Optionee has engaged in any act, behavior or conduct demonstrating a deliberate
and material violation or disregard of standards of behavior that the Company
has a right to expect of its employees; or

<PAGE>

                           (vii) if the Optionee, while employed by the Company
and for two years thereafter, violates a confidentiality and/or noncompete
agreement with the Company, or fails to safeguard, divulges, communicates, uses
to the detriment of the Company or for the benefit of any person or persons, or
misuses in any way, any Confidential Information;

PROVIDED, HOWEVER, that, if the Optionee has entered into a written employment
agreement with the Company which remains effective and which expressly provides
for a termination of such Optionee's employment for "cause", the term "Cause" as
used herein shall have the meaning as set forth in the Optionee's employment
agreement in lieu of the definition of "Cause" set forth in this Section 2(b).

                  (c) "Change of Control" shall mean the acquisition by any
person or group (as that term is defined in the Securities Exchange Act of 1934
(the "Exchange Act")), and the rules promulgated pursuant to that act) in a
single transaction or a series of transactions of [forty percent (40%)] or more
in voting power of the outstanding stock of the Company and a change of the
composition of the Board of Directors so that, within two years after the
acquisition took place, a majority of the members of the Board of Directors of
the Company, or of any corporation with which the Company may be consolidated or
merged, are persons who were not directors or officers of the Company or one of
its Subsidiaries immediately prior to the acquisition, or to the first of a
series of transactions which resulted in the acquisition of [forty percent
(40%)] or more in voting power of the outstanding stock of the Company.

                  (d) "Code" shall mean the Internal Revenue Code of 1986, as
amended.

                  (e) "Committee" shall mean the stock option or compensation
committee appointed by the Board or, if not appointed, the Board.

                  (f) "Common Stock" shall mean collectively, the Company's
common stock designated as "Andrx Corporation - Andrx Group Common Stock," par
value $.001 per share, and the Company's common stock designated as "Andrx
Corporation - Cybear Group Common Stock," par value $.001 per share.

                  (g) "Confidential Information" shall mean any and all
information pertaining to the Company's financial condition, clients, customers,
prospects, sources of prospects, customer lists, trademarks, trade names,
service marks, service names, "know-how," trade secrets, products, services,
details of client or consulting contracts, management agreements, pricing
policies, operational methods, site selection, results of operations, costs and
methods of doing business, owners and ownership structure, marketing practices,
marketing plans or strategies, product development techniques or plans,
procurement and sales activities, promotion and pricing techniques, credit and
financial data concerning customers and business acquisition plans, that is not
generally available to the public.

                  (h) "Director" shall mean a member of the Board.

                  (i) "Employee" shall mean any person, including officers,
directors, consultants and independent contractors who are either employed or
engaged by the Company or

                                       2
<PAGE>

any parent or Subsidiary of the Company within the meaning of Code Section
3401(c) or the regulations promulgated thereunder.

                  (j) "Fair Market Value" of a Share on any date of reference
shall be the Closing Price of a share of Common Stock on the business day on or
immediately preceding such date, unless the Committee in its sole discretion
shall determine otherwise in a fair manner. For this purpose, the "Closing
Price" of the Common Stock on any business day shall be (i) if the Common Stock
is listed or admitted for trading on any United States national securities
exchange (including the National Association of Securities Dealers Automated
Quotation System, NASDAQ), or if actual transactions are otherwise reported on a
consolidated transaction reporting system, the last reported sale price of the
Common Stock on such exchange or reporting system, as reported in any newspaper
of general circulation,or (ii) if clause (i) is not applicable, the mean between
the high bid and low asked quotations for the Common Stock as reported by the
National Quotation Bureau, Incorporated if at least two securities dealers have
inserted both bid and asked quotations for the Common Stock on at least five of
the ten preceding days. If the information set forth in clauses (i) through (ii)
above is unavailable or inapplicable to the Company (e.g., if the Company's
Common Stock is not then publicly traded or quoted), then the "Fair Market
Value" of a Share shall be the fair market value (i.e., the price at which a
willing seller would sell a Share to a willing buyer when neither is acting
under compulsion and when both have reasonable knowledge of all relevant facts)
of a share of the Common Stock on the business day immediately preceding such
date as the Committee in its sole and absolute discretion shall determine in a
fair and uniform manner.

                  (k) "Family Member" shall mean any child, stepchild,
grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling,
niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law,
brother-in-law, or sister-in-law, including adoptive relationships, any person
sharing the Employee's household (other than a tenant or Employee), a trust in
which these persons have more than fifty percent of the beneficial interest, a
foundation in which these persons (or the Employee) control the management of
assets, and any other entity in which these persons (or the Employee) own more
than fifty percent of the voting interests.

                  (l) "Incentive Stock Option" shall mean an incentive stock
option as defined in Section 422 of the Code.

                  (m) "Non-Employee Directors" shall have the meaning set forth
in Rule 16b-3(b)(3)(i) (17 C.F.R.ss.240.16(b)-3(b)(3)(i)) under the Securities
Exchange Act of 1934, as amended.

                  (n) "Non-Statutory Stock Option" or "Nonqualified Stock
Option" shall mean an Option which is not an Incentive Stock Option.

                  (o) "Officer" shall mean the Company's chairman, president,
principal financial officer, principal accounting officer (or, if there is no
such accounting officer, the controller), any vice-president of the Company in
charge of a principal business unit, division or function (such as sales,
administration or finance), any other officer who performs a policy-making
function, or any other person who performs similar policy-making functions for
the Company. Officers of Subsidiaries shall be deemed Officers of the Company if
they perform

                                       3
<PAGE>

such policy-making functions for the Company. As used in this paragraph, the
phrase "policy-making function" does not include policy-making functions that
are not significant. Unless specified otherwise in a resolution by the Board, an
"executive officer" pursuant to Item 401(b) of Regulation S-K (17 C.F.R.
ss.229.401(b)) shall be only such person designated as an "Officer" pursuant to
the foregoing provisions of this paragraph.

                  (p) "Option" (when capitalized) shall mean any stock option
granted under this Plan.

                  (q) "Optionee" shall mean a person to whom an Option is
granted under this Plan or any person who succeeds to the rights of such person
under this Plan by reason of the death of such person.

                  (r) "Plan" shall mean this 2000 Stock Option Plan of the
Company, which Plan shall be effective upon approval by the Board, subject to
approval, within 12 months of the date thereof by holders of a majority of the
Company's issued and outstanding Common Stock of the Company.

                  (s) "Securities Exchange Act" shall mean the Securities
Exchange Act of 1934, as amended.

                  (t) "Share" or "Shares" shall mean a share or shares, as the
case may be, of the Common Stock, as adjusted in accordance with Section 10 of
this Plan.

                  (u) "Subsidiary" shall mean any corporation (other than the
Company) in any unbroken chain of corporations beginning with the Company if, at
the time of the granting of the Option, each of the corporations other than the
last corporation in the unbroken chain owns stock possessing 50 percent or more
of the total combined voting power of all classes of stock in one of the other
corporations in such chain.

         3. SHARES AND OPTIONS. Subject to adjustment in accordance with Section
10 hereof, the Company may grant to Optionees from time to time Options to
purchase an aggregate of up to twelve million (12,000,000) Shares from Shares
held in the Company's treasury or from authorized and unissued Shares. Options
may be granted to purchase either Andrx Group Common Stock, Cybear Group Common
Stock or both to an Optionee, as set forth in the individual grant. If any
Option granted under this Plan shall terminate, expire, or be canceled,
forfeited or surrendered as to any Shares, the Shares relating to such lapsed
Option shall be available for issuance pursuant to new Options subsequently
granted under this Plan. Upon the grant of any Option hereunder, the authorized
and unissued Shares to which such Option relates shall be reserved for issuance
to permit exercise under this Plan. Subject to the provisions of Section 14
hereof, an Option granted hereunder shall be either an Incentive Stock Option or
a Non-Statutory Stock Option as determined by the Committee at the time of grant
of such Option and shall clearly state whether it is an Incentive Stock Option
or Non-Statutory Stock Option. All Incentive Stock Options shall be granted
within ten years from the effective date of this Plan.

         4. LIMITATIONS. Options otherwise qualifying as Incentive Stock Options
hereunder will not be treated as Incentive Stock Options to the extent that the
aggregate Fair Market Value (determined at the time the Option is granted) of
the Shares, with respect to which

                                       4
<PAGE>

Options meeting the requirements of Code Section 422(b) are exercisable for the
first time by any individual during any calendar year (under all stock option or
similar plans of the Company and any Subsidiary), exceeds $100,000.

         5. CONDITIONS FOR GRANT OF OPTIONS.

                  (a) Each Option shall be evidenced by an option agreement that
may contain any term deemed necessary or desirable by the Committee, provided
such terms are not inconsistent with this Plan or any applicable law. Optionees
shall be those persons selected by the Committee from the class of all regular
Employees of the Company or its Subsidiaries, including Employee Directors and
Officers who are regular or former regular employees of the Company, as well as
consultants to the Company. Any person who files with the Committee, in a form
satisfactory to the Committee, a written waiver of eligibility to receive any
Option under this Plan shall not be eligible to receive any Option under this
Plan for the duration of such waiver.

                  (b) In granting Options, the Committee shall take into
consideration the contribution the person has made, or is expected to make, to
the success of the Company or its Subsidiaries and such other factors as the
Committee shall determine. The Committee shall also have the authority to
consult with and receive recommendations from Officers and other personnel of
the Company and its Subsidiaries with regard to these matters. The Committee may
from time to time in granting Options under this Plan prescribe such terms and
conditions concerning such Options as it deems appropriate, including, without
limitation, (i) the exercise price or prices of the Option or any installments
thereof, (ii) prescribing the date or dates on which the Option becomes and/or
remains exercisable, (iii) providing that the Option vests or becomes
exercisable in installments over a period of time, and/or upon the attainment of
certain stated standards, specifications or goals, (iv) relating an Option to
the continued employment of the Optionee for a specified period of time, or (v)
conditions or termination events with respect to the exercisability of any
Option, provided that such terms and conditions are not more favorable to an
Optionee than those expressly permitted herein; provided, however, that to the
extent not canceled pursuant to Section 9(b) hereof, upon a Change in Control,
any Options that have not yet vested, shall vest upon such Change in Control.

                  (c) The Options granted to employees under this Plan shall be
in addition to regular salaries, pension, life insurance or other benefits
related to their employment with the Company or its Subsidiaries. Neither this
Plan nor any Option granted under this Plan shall confer upon any person any
right to employment or continuance of employment (or related salary and
benefits) by the Company or its Subsidiaries.

         6. EXERCISE PRICE. The exercise price per Share of any Option shall be
any price determined by the Committee but shall not be less than the par value
per Share; PROVIDED, HOWEVER, that in no event shall the exercise price per
Share of any Incentive Stock Option be less than the Fair Market Value of the
Shares underlying such Option on the date such Option is granted and, in the
case of an Incentive Stock Option granted to a 10% shareholder, the per Share
exercise price will not be less than 110% of the Fair Market Value in accordance
with Section 14 of this Plan. Re-granted Options, or Options which are canceled
and then re-granted covering

                                       5
<PAGE>

such canceled Options, will, for purposes of this Section 6, be deemed to have
been granted on the date of the re-granting.

         7. EXERCISE OF OPTIONS.

                  (a) An Option shall be deemed exercised when (i) the Company
has received written notice of such exercise in accordance with the terms of the
Option, (ii) full payment of the aggregate option price of the Shares as to
which the Option is exercised has been made, (iii) the Optionee has agreed to be
bound by the terms, provisions and conditions of any applicable shareholders'
agreement, and (iv) arrangements that are satisfactory to the Committee in its
sole discretion have been made for the Optionee's payment to the Company of the
amount that is necessary for the Company or the Subsidiary employing the
Optionee to withhold in accordance with applicable Federal or state tax
withholding requirements. Unless further limited by the Committee in any Option,
the exercise price of any Shares purchased pursuant to the exercise of such
Option shall be paid in cash, by certified or official bank check, by money
order, with Shares or by a combination of the above; PROVIDED, HOWEVER, that the
Committee in its sole discretion may accept a personal check in full or partial
payment of any Shares. If the exercise price is paid in whole or in part with
Shares, the value of the Shares surrendered shall be their Fair Market Value on
the date the Option is exercised. The Company in its sole discretion may, on an
individual basis or pursuant to a general program established by the Committee
in connection with this Plan, lend money to an Optionee to exercise all or a
portion of the Option granted hereunder. If the exercise price is paid in whole
or part with the Optionee's promissory note, such note shall (i) provide for
full recourse to the maker, (ii) be collateralized by the pledge of the Shares
that the Optionee purchases upon exercise of such Option, (iii) bear interest at
a rate no less than the rate of interest payable by the Company to its principal
lender, and (iv) contain such other terms as the Committee in its sole
discretion shall require. No Optionee shall be deemed to be a holder of any
shares subject to an Option unless and until a stock certificate or certificates
for such shares are issued to the person(s) under the terms of this Plan. No
adjustments shall be made for dividends (ordinary or extraordinary, whether in
cash, securities or property) or distributions or other rights for which the
record date is prior to the date such stock certificate is issued, except as
expressly provided in Section 10 hereof.

                  (b) No Optionee shall be deemed to be a holder of any Shares
subject to an Option unless and until a stock certificate or certificates for
such Shares are issued to such person(s) under the terms of this Plan. No
adjustment shall be made for dividends (ordinary or extraordinary, whether in
cash, securities or other property) or distributions or other rights for which
the record date is prior to the date such stock certificate is issued, except as
expressly provided in Section 10 hereof.

         8. EXERCISABILITY OF OPTIONS. Any Option shall become exercisable in
such amounts, at such intervals, upon such events or occurrences and upon such
other terms and conditions as shall be provided in this Plan or in an individual
Option agreement evidencing such Option, except as otherwise provided in Section
5(b) or this Section 8.

                  (a) The expiration date(s) of an Option shall be determined by
the Committee at the time of grant, but in no event shall an Option be
exercisable after the expiration of ten years from the date of grant of the
Option.

                                       6
<PAGE>

                  (b) Unless otherwise expressly provided in any Option as
approved by the Committee, notwithstanding the exercise schedule set forth in
any Option, each outstanding Option, may, in the sole discretion of the
Committee, become fully exercisable upon the date of the occurrence of any
Change of Control, but, unless otherwise expressly provided in any Option, no
earlier than six months after the date of grant, and if and only if Optionee is
in the employ of the Company on such date.

                  (c) The Committee may in its sole discretion at any time
accelerate the date on which any Option may be exercised and may accelerate the
vesting of any Shares subject to any Option or previously acquired by the
exercise of any Option.

         9. TERMINATION OF OPTION PERIOD.

                  (a) Unless otherwise expressly provided in any Option, the
unexercised portion of any Option shall automatically and without notice
immediately terminate and become forfeited, null and void at the time of the
earliest to occur of the following:

                           (i) three months after the date on which the
Optionee's employment is terminated for any reason other than by reason of (A)
Cause, (B) the termination of the Optionee's employment with the Company by such
Optionee following less than ninety (90) days' prior written notice to the
Company of such termination (an "Improper Termination"), (C) a mental or
physical disability (within the meaning of Section 22(e) of the Code) as
determined by a medical doctor satisfactory to the Committee, or (D) death;

                           (ii) immediately upon (A) the termination by the
Company of the Optionee's employment for Cause, or (B) an Improper Termination;
or

                           (iii) the later of (A) twelve months after the date
of termination of the Optionee's employment by reason of death of the employee,
or (B) three months after the date on which the Optionee shall die if such death
shall occur during the one year period specified in Subsection 9(a)(iii) hereof.

                  (b) Notwithstanding the foregoing, if the Optionee's
employment is terminated by reason of a mental or physical disability (within
the meaning of Section 22(e) of the Code) as determined by a medical doctor
satisfactory to the Committee or the Optionee retires from employment by the
Company or any other entity, then the Option shall continue until the original
expiration date.

                  (c) The Committee in its sole discretion may, by giving
written notice ("cancellation notice"), cancel effective upon the date of the
consummation of any corporate transaction described in Subsection 10(d) hereof,
any Option that remains unexercised on such date. Such cancellation notice shall
be given a reasonable period of time prior to the proposed date of such
cancellation and may be given either before or after approval of such corporate
transaction.

                  (d) Upon Optionee's termination of employment as described in
this Section 9, or otherwise, any Option (or portion thereof) not previously
vested or not yet exercisable

                                       7
<PAGE>

pursuant to Section 8 of this Plan or the vesting schedule set forth in such
Option shall be immediately canceled.

         10. ADJUSTMENT OF SHARES.

                  (a) If at any time while this Plan is in effect or unexercised
Options are outstanding, there shall be any increase or decrease in the number
of issued and outstanding Shares through the declaration of a stock dividend or
through any recapitalization resulting in a stock split, combination or exchange
of Shares (other than any such exchange or issuance of Shares through which
Shares are issued to effect an acquisition of another business or entity or the
Company's purchase of Shares to exercise a "call" purchase option), then and in
such event:

                           (i) appropriate adjustment shall be made in the
maximum number of Shares available for grant under this Plan, so that the same
percentage of the Company's issued and outstanding Shares shall continue to be
subject to being so optioned;

                           (ii) appropriate adjustment shall be made in the
number of Shares and the exercise price per Share thereof then subject to any
outstanding Option, so that the same percentage of the Company's issued and
outstanding Shares shall remain subject to purchase at the same aggregate
exercise price; and

                           (iii) such adjustments shall be made by the
Committee, whose determination in that respect shall be final, binding and
conclusive.

                  (b) Subject to the specific terms of any Option, the Committee
may change the terms of Options outstanding under this Plan, with respect to the
option price or the number of Shares subject to the Options, or both, when, in
the Committee's sole discretion, such adjustments become appropriate by reason
of a corporate transaction described in Subsection 10(d) hereof, or otherwise.

                  (c) Except as otherwise expressly provided herein, the
issuance by the Company of shares of its capital stock of any class, or
securities convertible into or exchangeable for shares of its capital stock of
any class, either in connection with a direct or unwritten sale or upon the
exercise of rights or warrants to subscribe therefor or purchase such Shares, or
upon conversion of shares of obligations of the Company convertible into such
shares or other securities, shall not affect, and no adjustment by reason
thereof shall be made with respect to the number of or exercise price of Shares
then subject to outstanding Options granted under this Plan.

                  (d) Without limiting the generality of the foregoing, the
existence of outstanding Options granted under this Plan shall not affect in any
manner the right or power of the Company to make, authorize or consummate (i)
any or all adjustments, reclassifications, recapitalizations, reorganizations or
other changes in the Company's capital structure or its business; (ii) any
merger or consolidation of the Company or to which the Company is a party; (iii)
any issuance by the Company of debt securities, or preferred or preference stock
that would rank senior to or above the Shares subject to outstanding Options;
(iv) any purchase or issuance by the Company of Shares or other classes of
common stock or common equity securities; (v) the dissolution or liquidation of
the Company; (vi) any sale, transfer, encumbrance, pledge or

                                       8
<PAGE>

assignment of all or any part of the assets or business of the Company; or (vii)
any other corporate act or proceeding, whether of a similar character or
otherwise.

                  (e) The Optionee shall receive written notice within a
reasonable time prior to the consummation of such action advising the Optionee
of any of the foregoing. The Committee may, in the exercise of its sole
discretion, in such instances declare that any Option shall terminate as of a
date fixed by the Board and give each Optionee the right to exercise his or her
Option.

         11. TRANSFERABILITY OF OPTIONS. Unless otherwise authorized by the
Board, no Option granted hereunder shall be sold, pledged, assigned,
hypothecated, disposed or otherwise transferred by the Optionee other than (a)
by will or the laws of descent and distribution, (b) by gift to a Family Member,
or (c) through a domestic relations order in settlement of marital property
rights. No Option shall be exercisable during the Optionee's lifetime by any
person other than the Optionee or transferee permitted under this Section 11.

         12. ISSUANCE OF SHARES. As a condition of any sale or issuance of
Shares upon exercise of any Option, the Committee may require such agreements or
undertakings, if any, as the Committee may deem necessary or advisable to assure
compliance with any such law or regulation including, but not limited to, the
following:

                  (i) a representation and warranty by the Optionee to the
Company, at the time any Option is exercised, that he is acquiring the Shares to
be issued to him for investment and not with a view to, or for sale in
connection with, the distribution of any such Shares; and

                  (ii) an agreement and undertaking to comply with all of the
terms, restrictions and provisions set forth in any then applicable
shareholders' agreement relating to the Shares, including, without limitation,
any restrictions on transferability, any rights of first refusal and any option
of the Company to "call" or purchase such Shares under then applicable
agreements, and

                           (A) any restrictive legend or legends, to be embossed
or imprinted on Share certificates, that are, in the discretion of the
Committee, necessary or appropriate to comply with the provisions of any
securities law or other restriction applicable to the issuance of the Shares.

         13. ADMINISTRATION OF THIS PLAN.

                  (a) This Plan shall initially be administered by the Board. As
soon as may be practicable, but no later than the date (if ever) the Common
Stock is listed or admitted for trading on any United States national securities
exchange, the Plan shall be administered by the Committee, which shall consist
of not less than two Non-Employee Directors. The Committee shall have all of the
powers of the Board with respect to this Plan. Any member of the Committee may
be removed at any time, with or without cause, by resolution of the Board and
any vacancy occurring in the membership of the Committee may be filled by
appointment by the Board.

                                       9
<PAGE>

                  (b) Subject to the provisions of this Plan, the Committee
shall have the authority, in its sole discretion, to: (i) grant Options, (ii)
determine the exercise price per Share at which Options may be exercised, (iii)
determine the Optionees to whom, and time or times at which, Options shall be
granted, (iv) determine the number of Shares to be represented by each Option,
(v) determine the terms, conditions and provisions of each Option granted (which
need not be identical) and, with the consent of the holder thereof, modify or
amend each Option, (vi) defer (with the consent of the Optionee) or accelerate
the exercise date of any Option, and (vii) make all other determinations deemed
necessary or advisable for the administration of this Plan, including repricing,
canceling and regranting Options.

                  (c) The Committee, from time to time, may adopt rules and
regulations for carrying out the purposes of this Plan. The Committee's
determinations and its interpretation and construction of any provision of this
Plan shall be final, conclusive and binding upon all Optionees and any holders
of any Options granted under this Plan.

                  (d) Any and all decisions or determinations of the Committee
shall be made either (i) by a majority vote of the members of the Committee at a
meeting of the Committee or (ii) without a meeting by the unanimous written
approval of the members of the Committee.

                  (e) No member of the Committee, or any Officer or Director of
the Company or its Subsidiaries, shall be personally liable for any act or
omission made in good faith in connection with this Plan.

         14. INCENTIVE OPTIONS FOR 10% SHAREHOLDERS. Notwithstanding any other
provisions of this Plan to the contrary, an Incentive Stock Option shall not be
granted to any person owning directly or indirectly (through attribution under
Section 424(d) of the Code) at the date of grant, stock possessing more than 10%
of the total combined voting power of all classes of stock of the Company (or of
its Subsidiary) at the date of grant unless the exercise price of such Option is
at least 110% of the Fair Market Value of the Shares subject to such Option on
the date the Option is granted, and such Option by its terms is not exercisable
after the expiration of ten years from the date such Option is granted.

         15. INTERPRETATION.

                  (a) This Plan shall be administered and interpreted so that
all Incentive Stock Options granted under this Plan will qualify as Incentive
Stock Options under Section 422 of the Code. If any provision of this Plan
should be held invalid for the granting of Incentive Stock Options or illegal
for any reason, such determination shall not affect the remaining provisions
hereof, and this Plan shall be construed and enforced as if such provision had
never been included in this Plan.

                  (b) This Plan shall be governed by the laws of the State of
Florida.

                  (c) Headings contained in this Plan are for convenience only
and shall in no manner be construed as part of this Plan or affect the meaning
or interpretation of any part of this Plan.

                                       10
<PAGE>

                  (d) Any reference to the masculine, feminine, or neuter gender
shall be a reference to such other gender as is appropriate.

                  (e) Time shall be of the essence with respect to all time
periods specified for the giving of notices to the company hereunder, as well as
all time periods for the expiration and termination of Options in accordance
with Section 9 hereof (or as otherwise set forth in an option agreement).

         16. CANCELLATION AND RESCISSION OF AWARDS.

                  (a) Unless the Option specifies otherwise, the Committee may
cancel, rescind, suspend, withhold or otherwise limit or restrict any unexpired,
unpaid, or deferred Options at any time if the Optionee is not in compliance
with all applicable provisions of this Plan and the individual Option agreement
evidencing such Option , or if the Optionee engages in any "Detrimental
Activity." For purposes of this Section 16, "Detrimental Activity" shall
include: (i) the rendering of services for any organization or engaging directly
or indirectly in any business which is or becomes competitive with the Company,
or which organization or business, or the rendering of services to such
organization or business, is or becomes otherwise prejudicial to or in conflict
with the interests of the Company; (ii) the disclosure to anyone outside the
Company, or the use in other than the Company's business, without prior written
authorization from the Company, of any confidential information or material, as
defined in any agreement between the Optionee and the Company regarding
confidential information and intellectual property either during or after
employment with the Company; (iii) the failure or refusal to disclose promptly
and to assign to the Company, pursuant to the Company's confidentiality
agreement with the Optionee, all right, title and interest in any invention or
idea, patentable or not, made or conceived by the Optionee during employment by
the Company, relating in any manner to the actual or anticipated business,
research or development work of the Company or the failure or refusal to do
anything reasonably necessary to enable the Company to secure a patent where
appropriate in the United States and in other countries; (iv) activity that
results in termination of the Optionee's employment for cause; (v) a material
violation of any written rules, policies, procedures or guidelines of the
Company; (vi) any attempt directly or indirectly to induce any employee of the
Company to be employed or perform services elsewhere or any attempt directly or
indirectly to solicit the trade or business of any current or prospective
customer, supplier or partner of the Company; (vii) the Optionee being convicted
of, or entering a guilty plea with respect to, a crime, whether or not connected
with the Company; or (viii) any other conduct or act determined to be injurious,
detrimental or prejudicial to any interest of the Company.

                  (b) Upon exercise, payment or delivery pursuant to an Option,
the Optionee shall certify in a manner acceptable to the Company that he or she
is in compliance with the terms and conditions of the Plan. In the event a
Optionee fails to comply with the provisions of paragraphs (a)(i)-(viii) of this
Section 16 prior to, or during the six months after, any exercise, payment or
delivery pursuant to an Option, such exercise, payment or delivery may be
rescinded by the Company within two years thereafter. In the event of any such
rescission, the Optionee shall pay to the Company the amount of any gain
realized or payment received as a result of the rescinded exercise, payment or
delivery, in such manner and on such terms and conditions as may be required,
and the Company shall be entitled to set-off against the amount of any such gain
any amount owed to the Optionee by the Company.

                                       11
<PAGE>

         17. AMENDMENT AND DISCONTINUATION OF THIS PLAN. Either the Board or the
Committee may from time to time amend this Plan or any Option without the
consent or approval of the shareholders of the Company; PROVIDED, HOWEVER, that,
except to the extent provided in Section 9, no amendment or suspension of this
Plan or any Option issued hereunder shall substantially impair any Option
previously granted to any Optionee without the consent of such Optionee.

         18. TERMINATION DATE. This Plan shall terminate ten years after the
date of adoption by the Board of Directors.

                                       12

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