Document:

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                                                                   Exhibit 10.15

                               ADVISORY AGREEMENT

     This Advisory Agreement (this "Agreement") is made and entered into as of
December 21, 2000 by and between AMI Holdings, Inc. ("Holdings"), AMI Spinco,
Inc. (the "Company") and together with Holdings, the "Companies") and TBW LLC
("Advisor"). Capitalized terms used but not defined herein shall have the
meanings assigned to such terms in the Agreement and Plan of Merger and
Recapitalization dated December 5, 2000 (the "Recapitalization Agreement") by
and among Japan Energy Corporation ("JEC"), GA-TEK Inc., Holdings, AMI Merger
Company, Inc., the Company, FP-McCartney, LLC ("FP-McCartney") and Advisor.

     WHEREAS, the Companies desire to retain Advisor and Advisor desires to
perform for the Companies and/or their subsidiaries certain services;

     NOW, THEREFORE, in consideration of the premises and the mutual covenants
contained herein, and for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto, intending to
be legally bound hereby, agree as follows:

     1.   Term. This Agreement shall be in effect for an initial term of ten
(10) years commencing on the date hereof (the "Term"), and shall be
automatically extended thereafter on a year to year basis unless the Companies
provide or Advisor provides written notice of its or their desire to terminate
this Agreement to the other party 90 days prior to the expiration of the Term
or any extension thereof.

     2.   Services. Advisor shall perform or cause to be performed such
services for the Companies and/or their subsidiaries as directed by such
Company's board of directors, which may include, without limitation, the
following:

          (a)  executive and management services;

          (b)  identification, support and analysis of acquisitions and
dispositions by such Company or its subsidiaries;

          (c)  support and analysis of financing alternatives, including,
without limitation, in connection with acquisitions, capital expenditures and
refinancing of existing indebtedness;

          (d)  finance functions, including assistance in the preparation of
financial projections, and monitoring of compliance with financing agreements;

          (e)  human resource functions, including searching and hiring of
executives; and

          (f)  other services for such Company or its subsidiaries upon which
such Company's board of directors and Advisor agree.

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     Notwithstanding any provision in this Agreement to the contrary, each of
the parties hereto acknowledges and agrees that there are no minimum levels of
services required to be provided to the Companies pursuant to this Agreement.

     3.   Advisory Fee. Subject to the terms and conditions herein, payment for
services rendered by Advisor and/or its affiliates incurred in connection with
the performance of services pursuant to this Agreement shall be billed on an
hourly basis for actual services rendered (it being agreed that no minimum
services levels shall be required), plus reasonable out-of-pocket expenses
incurred by Advisor and/or its affiliates commencing with the calendar quarter
ended March 31, 2001; provided that, if the Companies and their subsidiaries are
in compliance with the financial covenants contained in that certain Credit
Agreement dated as of December 21, 2000 (the "Credit Agreement") between the
Companies and AMI Merger Company, Inc., on one hand, and the Lenders named
therein together with Credit Suisse First Boston, as Administrative Agent and
Collateral Agent, on the other hand, in lieu of the aforementioned fees and
expenses, Advisor and/or its affiliates shall have the right to collect an
annual advisory fee (the "Advisory Fee"), the amount of which shall be the
greater of (i) $1,000,000 per annum (the "Flat Fee") or (ii) 0.3% per annum of
the annual consolidated revenue of the Companies and their subsidiaries
(determined on a trailing twelve month basis) (the "Percentage Fee"), plus
reasonable out-of-pocket expenses of Advisor and/or its affiliates.

          (a)  Adjustment. In the event that the Advisory Fee paid in any given
year pursuant to this Section 3 exceeds the greater of the Flat Fee or the
Percentage Fee, the Advisor shall promptly repay to the Companies the difference
between the greater of the Flat Fee or the Percentage Fee and the amount of the
Advisory Fee actually paid by the Companies during that year. In the event that
the amount of the Advisory Fee paid by the Companies to the Advisor in any given
year is less than the greater of the Flat Fee or the Percentage Fee, the
Companies shall promptly pay the difference between the amount of Advisory Fee
actually paid to the Advisor and the greater of the Flat Fee or the Percentage
Fee.

          (b)  Advisory Fees Paid to the Other Advisor. Notwithstanding anything
in this Section 3 to the contrary, the Advisory Fee paid to the Advisor
hereunder shall be same amount as the Advisory Fee paid to Francisco Partners
GP, LLC ("Francisco") pursuant to that certain Advisory Agreement dated as of
the date hereof between the Companies and Francisco, as the same may be amended,
replaced or modified from time to time (the "Francisco Agreement").

          (c)  Consent to Payment of Advisory Fee. No Advisory Fee may be paid
in any given year without the prior written consent of Francisco, such consent
to be in Francisco's reasonable discretion. The Companies acknowledge that they
will not pay any Advisory Fee without having received a copy of the written
consent of Francisco. Notwithstanding the foregoing sentence, in any year that
the Advisor does not collect the Advisory Fee for any reason it shall
nonetheless remain entitled to collect hourly fees and expense reimbursements as
described above.

          (d)  Collection of Fee. Subject to the limitation described in Section
3(c) above, the decision whether to collect any Advisory Fee in a given year
shall be in the Advisor's sole discretion. The Advisor's decision not to collect
an Advisory Fee in any given

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year shall not be construed to be a waiver of the Advisor's right to collect an
Advisory Fee in any future year.

               (e) Fee Calculation. All fees and expenses described in this
paragraph 3 shall be payable to Advisor or its designees on a quarterly basis
in advance (based on the parties' estimate of the amount of fees and expenses
which shall become due and payable for such quarter) commencing as of the date
hereof. For the purposes of this Section 3, compliance with the financial
covenants contained in the Credit Agreement shall be determined on a pro forma
basis and shall include the deduction of the Advisory Fee, the deduction of any
other fees and expenses that may be payable to the Advisor hereunder and the
deduction of any other fees and expenses that may be payable to the Advisor
hereunder and the deduction of any fees that may be payable pursuant to the
Francisco Agreement.

          4.   Transaction Fees. The Companies hereby agree to pay to Advisor
or its designee on the Closing Date (as defined in the Recapitalization
Agreement) upon the consummation of the transactions contemplated by the
Recapitalization Agreement a fee for services rendered in connection with the
structuring of the financing for the transactions contemplated by the
Recapitalization Agreement (the "Transactions") and certain other management
services in the amount of Six Million Dollars ($6,000,000), plus reasonable
out-of-pocket expenses. Such fees shall be payable to Advisor or its designees
by wire transfer to an account designated in writing by the Advisor.

          5.   Personnel. Advisor shall provide and devote to the performance
of this Agreement such partners, employees and agents of Advisor as Advisor
shall deem appropriate to the furnishing of the services required.

          6.   Liability. Neither Advisor nor any other Indemnitee (as defined
in Section 7 below) shall be liable to any of the Companies or any of their
subsidiaries or affiliates for any loss, liability, damage or expense arising
out of or in connection with the performance of services contemplated by this
Agreement, unless such loss, liability, damage or expense shall be proven to
result directly from gross negligence, willful misconduct or bad faith on the
part of an Indemnitee acting within the scope of such person's employment or
authority. Advisor makes no representations or warranties, express or implied,
in respect of the services to be provided by Advisor or any of the other
Indemnitees. Except as Advisor may otherwise agree in writing after the date
hereof: (i) Advisor shall have the right to, and shall have no duty (contractual
or otherwise) not to, directly or indirectly: (A) engage in the same or similar
business activities or lines of business as any of the Companies or any of their
subsidiaries, including those competing with any of the Companies or any of
their subsidiaries and (B) do business with any client or customer of any of the
Companies or any of their subsidiaries; (ii) neither Advisor nor any officer,
director, employee, partner, affiliate or associated entity thereof shall be
liable to any of the Companies or any of their subsidiaries or affiliates for
breach of any duty (contractual or otherwise) by reason of any such activities
of or of such person's participation therein; and (iii) in the event that
Advisor acquires knowledge of a potential transaction or matter that may be a
corporate opportunity for the Companies or any of their subsidiaries, on the one
hand, and Advisor, on the other hand, or any other person, Advisor shall have no
duty (contractual or otherwise) to communicate or present such corporate
opportunity to the Companies or any of their subsidiaries and, notwithstanding
any provision of this Agreement to the contrary, shall not be liable to the
Companies or any of their affiliates for breach of any duty (contractual or

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otherwise) by reasons of the fact that Advisor directly or indirectly pursues
or acquires such opportunity for itself, directs such opportunity to another
person, or does not present such opportunity to the Companies. In no event will
any of the parties hereto be liable to any other party hereto for any indirect,
special, incidental or consequential damages, including lost profits or
savings, whether or not such damages are foreseeable, or in respect of any
liabilities relating to any third party claims (whether based in contract, tort
or otherwise) other than the Claims (as defined in Section 7 below) relating to
the service to be provided by Advisor hereunder.

          7. Indemnity. Each of the Companies and their subsidiaries shall
defend, indemnify and hold harmless each of Advisor, its affiliates, members,
partners, employees and agents (collectively, the "Indemnitees") from and
against any and all loss, liability, damage or expenses arising from any claim
by any person with respect to, or in any way related to, the performance of
services contemplated by this Agreement (including attorneys' fees)
(collectively, "Claims") resulting from any act or omission of any of the
Indemnitees, other than for Claims which shall be proven to be the direct
result of gross negligence, bad faith or willful misconduct by an Indemnitee.
Each of the Companies and their subsidiaries shall defend at its own cost and
expense any and all suits or actions (just or unjust) which may be brought
against such Company, any of its subsidiaries or any of the Indemnitees or in
which any of the Indemnitees may be impleaded with others upon any Claims, or
upon any matter, directly or indirectly, related to or arising out of this
Agreement or the performance hereof by any of the Indemnitees, except that if
such damage shall be proven to be the direct result of gross negligence, bad
faith or willful misconduct by an Indemnitee, then Advisor shall reimburse the
Companies and their subsidiaries for the costs of defense and other costs
incurred by the Companies and their subsidiaries.

          8. Notices. All notices hereunder shall be in writing and shall be
delivered personally or mailed by United States mail, postage prepaid,
addressed to the parties as follows:

             To the Companies as appropriate:
             -------------------------------

                 AMI Holdings, Inc.
                 c/o AMI Spinco, Inc.
                 16644 West Bernardo Drive, Suite 301
                 San Diego, CA 92127
                 Attention: Chief Executive Officer
                 Facsimile: 858.521.3777

             To Advisor:
             ----------

                 TBW LLC
                 c/o Citicorp Venture Capital Ltd.
                 399 Park Avenue, 14th Floor
                 Zone 4
                 New York, NY 10043
                 Attention: Paul C. Schorr, IV
                            James A. Urry
                 Facsimile: 212.888.2940

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     9.   Assignment. The Companies may not assign any obligations hereunder to
any other party without the prior written consent of Advisor (which consent
shall not be unreasonably withheld), and Advisor may not assign any Advisor
obligations hereunder to any other party without the prior written consent of
the Companies (which consent shall not be unreasonably withheld); provided that
Advisor may, without consent of the Companies, assign its rights and
obligations under this Agreement to any Permitted Transferee (as such term is
defined in the Shareholders Agreement dated December 21, 2000 among the
Company, FP-McCartney, LLC, the Advisor, JEC and certain other persons named
therein).

     10.  Successors. This Agreement and all the obligations and benefits
hereunder shall inure to the successors and assigns of the parties.

     11.  Counterparts. This Agreement may be executed and delivered by each
party hereto in separate counterparts, each of which when so executed and
delivered shall be deemed an original and all of which taken together shall
constitute but one and the same agreement.

     12.  Entire Agreement; Modification; Governing Law. The terms and
conditions hereof constitute the entire agreement between the parties hereto
with respect to the subject matter of this Agreement and supersede all previous
communications, either oral or written, representations or warranties of any
kind whatsoever, except as expressly set forth herein. No modifications of this
Agreement nor waiver of the terms or conditions thereof shall be binding upon
either party unless approved in writing by an authorized representative of such
party. This Agreement may not be amended in a manner materially adverse to the
Company and the Company may not waive any material provision of this Agreement
that is for its benefit unless a corresponding amendment is made to the
Francisco Agreement or Francisco's consent is obtained. All issues concerning
this Agreement shall be governed by and construed in accordance with the laws of
the State of New York, without giving effect to any choice of law or conflict of
law provisions or rule (whether of the State of New York or any other
jurisdiction) that would cause the application of the law of any jurisdiction
other than the State of New York.

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     IN WITNESS WHEREOF, the parties have executed this Advisory Agreement as
of the date first written above.

                              AMI HOLDINGS, INC.

                              By: /s/ Brent D. Jensen
                                  ----------------------------------------------
                              Name: Brent Jensen
                              Title: Chief Financial Officer and Vice President

                              AMI SPINCO, INC.

                              By: /s/ Brent D. Jensen
                                  ----------------------------------------------
                              Name: Brent Jensen
                              Title: Chief Financial Officer and Vice President

                              TBW LLC

                              By: /s/ James A. Urry
                                  ----------------------------------------------
                              Name: James A. Urry
                                   ---------------------------------------------
                              Title: VP - CITICORP VENTURE CAPITAL LTD
                                    --------------------------------------------

                                       6<PAGE>
                                                                   Exhibit 10.16

                              AMENDED AND RESTATED

                               AMIS HOLDING, INC.

                           2000 EQUITY INCENTIVE PLAN

                             Adopted July 25, 2000
                     Approved By Stockholders July 25, 2000
                        Termination Date: July 24, 2010
                 (last amended and restated December 23, 2002)

1. PURPOSES.

     (a) Eligible Stock Award Recipients. The persons eligible to receive Stock
Awards are the Employees, Directors and Consultants of the Company and its
Affiliates.

     (b) Available Stock Awards. The purpose of the Plan is to provide a means
by which eligible recipients of Stock Awards may be given an opportunity to
benefit from increases in value of the Common Stock through the granting of the
following Stock Awards: (i) Incentive Stock Options, (ii) Nonstatutory Stock
Options, (iii) stock bonuses and (iv) rights to acquire restricted stock.

     (c) General Purpose. The Company, by means of the Plan, seeks to retain the
services of the group of persons eligible to receive Stock Awards, to secure and
retain the services of new members of this group and to provide incentives for
such persons to exert maximum efforts for the success of the Company and its
Affiliates.

2. DEFINITIONS.

     (a) "AFFILIATE" means any parent corporation or subsidiary corporation of
the Company, whether now or hereafter existing, as those terms are defined in
Sections 424(e) and (f), respectively, of the Code.

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

     (c) "CAUSE" means the occurrence of any of the following: (i) conviction of
the Participant of any felony or any crime involving fraud or dishonesty; (ii)
the Participant's participation (whether by affirmative act or omission) in a
fraud, act of dishonesty or other act of misconduct against the Company and/or
its Affiliates; (iii) conduct by the Participant which, based upon a good faith
and reasonable factual investigation by the Company (or, if the Participant is
an Officer, by the Board), demonstrates the Participant's unfitness to serve;
(iv) the Participant's violation of any statutory or fiduciary duty, or duty of
loyalty owed to the Company and/or its Affiliates; (v) the Participant's
violation of state or federal law in connection with the Participant's
performance of his/her

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job which has an adverse effect on the Company and/or its Affiliates; (vi) the
Participant's breach of any material term of any contract between the
Participant and the Company and/or its Affiliates; and (vii) the Participant's
violation of Company policy which has a material adverse effect on the Company
and/or its Affiliates. Notwithstanding the foregoing, the Participant's
Disability shall not constitute Cause as set forth herein. The determination
that a termination is for Cause shall be by the Committee in its sole and
exclusive judgment and discretion.

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

     (e)  "COMMITTEE" means a committee of one or more members of the Board
appointed by the Board in accordance with subsection 3(c), or the Board if it
has not appointed a Committee.

     (f)  "COMMON STOCK" means the Class A common stock, par value $.01 per
share, of the Company.

     (g)  "COMPANY" means AMI Holdings, Inc., a Delaware corporation.

     (h)  "COMPANY STOCK" means Common Stock, Preferred Stock and Units.

     (i)  "CONSULTANT" means any person, including and advisor, (i) engaged by
the Company or an Affiliate to render consulting or advisory services and who
is compensated for such services or (ii) who is a member of the Board of
Directors of an Affiliate. However, the term "Consultant" shall not include
either Directors who are not compensated by the Company for their services as
Directors, and the payment of a director's fee by the Company for services as a
Director shall not cause a Director to be deemed a Consultant for purposes of
this Plan.

     (j) "CONTINUOUS SERVICE" means that the Participant's service with the
Company or an Affiliate, whether as an Employee, Director or Consultant, is not
interrupted or terminated. A change in the capacity in which a Participant
renders service to the Company or an Affiliate as an Employee, Consultant or
Director or a change in the entity for which the Participant renders such
service shall not be deemed to interrupt or terminate such Participant's
Continuous Service. For example, a change in status from an Employee of the
Company to a Consultant of an Affiliate or a Director will not constitute an
interruption of Continuous Service. The Board of the chief executive officer of
the Company, in that party's sole discretion, may determine whether Continuous
Service shall be considered interrupted in the case of any leave of absence
approved by that party, including sick leave, military leave or any other
personal leave,.

     (k)  "CONVERSION STOCK AWARDS" means the awards (including but not limited
to options and restricted shares acquired upon the exercise of options)

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under the AMI Spinco, Inc. 2000 Equity Incentive Plan (the "PREDECESSOR PLAN")
assumed by the Company in connection with the terms of the Merger Agreement.

     (1)  "COVERED EMPLOYEE" means the chief executive officer and the four (4)
other highest compensated officers of the Company for whom total compensation
is required to be reported to stockholders under the Exchange Act, as
determined for purposes of Section 162(m) of the Code.

     (m)  "DIRECTOR" means a member of the Board of Directors of the Company.

     (n)  "DISABILITY" means (i) before the Listing Date, the inability of a
person, in the opinion of a qualified physician acceptable to the Company, to
perform the major duties of that person's position with the Company or an
Affiliate of the Company because of the sickness or injury of the person and
(ii) after the Listing Date, the permanent and total disability of a person
within the meaning of Section 22(e)(3) of the Code.

     (o)  "EFFECTIVE TIME" means the effective time of the merger contemplated
by the Merger Agreement.

     (p)  "EMPLOYEE" means any person employed by the Company or an Affiliate.
Service as a Director or payment of a director's fee by the Company or an
Affiliate shall not be sufficient to constitute "employment" by the Company or
an Affiliate for purposes of this Plan.

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

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

          (i)  If the Company Stock is listed on any established stock exchange
or traded on the Nasdaq National Market or the Nasdaq SmallCap Market, the
Fair Market Value of a share of Company Stock shall be the closing sales price
for such stock (or the closing bid, if no sales were reported) as quoted on
such exchange or market (or the exchange or market with the greatest volume of
trading in the Common Stock) on the last market trading day prior to the day of
determination, as reported in The Wall Street Journal or such other source as
the Board deems reliable.

         (ii)  In the absence of such markets for the Common Stock, the Fair
Market Value shall be determined in good faith by the Board.

        (iii)  Prior to the Listing Date, the value of the Company Stock shall
be determined in a manner consistent with Section 260.140.50 of Title 10 of the
California Code of Regulations.

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     (s)  "INCENTIVE STOCK OPTION" means an Option intended to qualify as an
incentive stock option within the meaning of Section 422 of the Code and the
regulations promulgated thereunder.

     (t)  "JUNIOR PREFERRED STOCK" means the Series B Junior Preferred Stock,
par value $.01 per share of the Company.

     (u)  "LISTING DATE" means the first date upon which any security of the
Company is listed (or approved for listing) upon notice of issuance on any
securities exchange or designated (or approved for designation) upon notice of
issuance as a national market security on an interdealer quotation system if
such securities exchange or interdealer quotation system has been certified in
accordance with the provisions of Section 25100(o) of the California Corporate
Securities Law of 1968.

     (v)  "MERGER AGREEMENT" means the Agreement and Plan of Merger and
Recapitalization by and among Japan Energy Corporation, GA-TEK, Inc.,
FP-McCartney, LLC, TBW LLC, Gould Technology Inc., AMI Merger Company, Inc., and
AMI Spinco, Inc., dated as of December 5, 2000.

     (w)  "NON-EMPLOYEE DIRECTOR" means a Director who either (i) is not a
current Employee or Officer of the Company or its parent or a subsidiary, does
not receive compensation (directly or indirectly) from the Company or its parent
or a subsidiary for services rendered as a consultant or in any capacity other
than as a Director (except for an amount as to which disclosure would not be
required under Item 404(a) of Regulation S-K promulgated pursuant to the
Securities Act ("Regulation S-K")), does not possess an interest in any other
transaction as to which disclosure would be required under Item 404(a) of
Regulation S-K and is not engaged in a business relationship as to which
disclosure would be required under Item 404(b) of Regulation S-K; or (ii) is
otherwise considered a "non-employee director") for purposes of Rule 16b-3.

     (x)  "NONSTATUTORY STOCK OPTION" means an Option not intended to qualify as
an Incentive Stock Option.

     (y)  "OFFICER" means (i) before the Reporting Date, any person designated
by the Company as an officer and (ii) on and after the Reporting Date, a person
who is an officer of the Company within the meaning of Section 16 of the
Exchange Act and the rules and regulations promulgated thereunder.

     (z)  "OPTION" means an Incentive Stock Option or a Nonstatutory Stock
Option granted pursuant to the Plan.

     (aa) "OPTION AGREEMENT" means a written agreement between the Company and
an Optionholder evidencing the terms and conditions of an individual Option
grant. Each Option Agreement shall be subject to the terms and conditions of the
Plan.

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     (bb) "OPTIONHOLDER" means a person to whom an Option is granted pursuant
to the Plan or, if applicable, such other person who holds an outstanding
Option.

     (cc) "OUTSIDE DIRECTOR" means a Director who either (i) is not a current
employee of the Company or an "affiliated corporation" (within the meaning of
Treasury Regulations promulgated under Section 162(m) of the Code), is not a
former employee of the Company or an "affiliated corporation" receiving
compensation for prior services (other than benefits under a tax qualified
pension plan), was not an officer of the Company or an "affiliated corporation"
at any time and is not currently receiving direct or indirect remuneration from
the Company or an "affiliated corporation" for services in any capacity other
than as a Director or (ii) is otherwise considered an "outside director" for
purposes of Section 162(m) of the Code.

     (dd) "PARTICIPANT" means a person to whom a Stock Award is granted
pursuant to the Plan or, if applicable, such other person who holds an
outstanding Stock Award.

     (ee) "PLAN" means this Amended and Restated AMI Holdings, Inc. 2000 Equity
Incentive Plan, as amended.

     (ff) "PREFERRED STOCK" means the Senior Preferred Stock and Junior
Preferred Stock.

     (gg) "REPORTING DATE" means the date the Company becomes subject to the
Exchange Act reporting requirements.

     (hh) "RULE 16B-3" means Rule 16b-3 promulgated under the Exchange Act or
any successor to Rule 16b-3, as in effect from time to time.

     (ii) "SECURITIES ACT" means the Securities Act of 1933, as amended.

     (jj) "SENIOR PREFERRED STOCK" means the Series A Senior Preferred Stock,
par value $.01 per share, of the Company.

     (kk) "STOCK AWARD" means any right granted under the Plan, including an
Option, a stock bonus and a right to acquire restricted stock.

     (ll) "STOCK AWARD AGREEMENT" means a written agreement between the Company
and a holder of a Stock Award evidencing the terms and conditions of an
individual Stock Award grant. Each Stock Award Agreement shall be subject to
the terms and conditions of the Plan.

     (mm) "TEN PERCENT STOCKHOLDER" means a person who owns (or is deemed to
own pursuant to Section 424(d) of the Code) stock possessing more than ten
percent (10%) of the total combined voting power of all classes of stock of the
Company or of any of its Affiliates.

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     (nn) "UNIT" means a unit representing shares of Common Stock and Preferred
Stock, in amounts determined in the discretion of the Committee.

3.   ADMINISTRATION.

     (a)  Administration by Board. The Board shall administer the Plan unless
and until the Board delegates administration to a Committee, as provided in
subsection 3(c).

     (b)  Powers of Board. The Board shall have the power, subject to, and
within the limitations of, the express provisions of the Plan:

          (i)       To determine from time to time which of the persons eligible
under the Plan shall be granted Stock Awards; when and how each Stock Award
shall be granted; what type or combination of types of Stock Award shall be
granted; the provisions of each Stock Award granted (which need not be
identical), including the time or times when a person shall be permitted to
receive Common Stock or Preferred Stock pursuant to a Stock Award; and the
number of shares of Common Stock and Preferred Stock with respect to which a
Stock Award shall be granted to each such person.

          (ii)      To construe and interpret the Plan and Stock Awards granted
under it, and to establish, amend and revoke rules and regulations for its
administration. The Board, in the exercise of this power, may correct any
defect, omission or inconsistency in the Plan or in any Stock Award Agreement,
in a manner and to the extent it shall deem necessary or expedient to make the
Plan fully effective.

          (iii)     To amend the Plan or a Stock Award as provided in Section
12.

          (iv)      Generally, to exercise such powers and to perform such acts
as the Board deems necessary or expedient to promote the best interests of the
Company which are not in conflict with the provisions of the Plan.

     (c)  Delegation to Committee.

          (i)       General. The Board may delegate administration of the Plan
to a Committee or Committees of one (1) or more members of the Board, and the
term "Committee" shall apply to any person or persons to whom such authority
has been delegated. If administration is delegated to a Committee, the
Committee shall have, in connection with the administration of the Plan, the
powers theretofore possessed by the Board, including the power to delegate to a
subcommittee any of the administrative powers the Committee is authorized to
exercise (and references in this Plan to the Board shall thereafter be to the
Committee or subcommittee), subject, however, to such resolutions, not
inconsistent with the provisions of the Plan, as may be adopted from time to
time

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by the Board. The Board may abolish the Committee at any time and revest in the
Board the administration of the Plan.

          (ii) Committee Composition when Company Stock is Publicly Traded. At
such time as any of the Company Stock is publicly traded or after the Reporting
Date, in the discretion of the Board, a Committee may consist solely of two or
more Outside Directors, in accordance with Section 162(m) of the Code, and/or
solely of two or more Outside Directors, in accordance with Section 162(m) of
the Code, and/or solely of two or more Non-Employee Directors, in accordance
with Rule 16b-3. Within the scope of such authority, the Board or the Committee
may (1) delegate to a committee of one or more members of the Board who are not
Outside Directors the authority to grant Stock Awards to eligible persons who
are either (a) not then Covered Employees and are not expected to be Covered
Employees at the time of recognition of income resulting from such Stock Award
or (b) not persons with respect to whom the Company wishes to comply with
Section 162(m) of the Code and/or) (2) delegate to a committee of one or more
members of the Board who are not Non-Employee Directors the authority to grant
Stock Awards to eligible persons who are not then subject to Section 16 of the
Exchange Act.

     (d) Effect of Board's Decision. All determinations, interpretations and
constructions made by the Board in good faith shall not be subject to review by
any person and shall be final, binding and conclusive on all persons.

4.   SHARES SUBJECT TO THE PLAN.

     (a) Share Reserve. Subject to the provisions of Section 11 relating to
adjustments upon changes in Company Stock, the Company Stock that may be issued
pursuant to Conversion Stock Awards shall not exceed in the aggregate 4,187,900
Units which represents 8,375,800 shares of Common Stock, 1,083,897 shares of
Senior Preferred Stock and 867,118 shares of Junior Preferred Stock.
Additionally, subject to the provisions of Section 11 relating to adjustments
upon changes in Company Stock, the Common Stock that may be issued pursuant to
Stock Awards following the Effective Time shall not exceed in the aggregate
13,332,145 shares of Common Stock.

     (b) Reversion of Shares to the Share Reserve. If any Stock Award shall for
any reason expire or otherwise terminate, in whole or in part, without having
been exercised in full, the shares of Common Stock not acquired under such
Stock Award shall revert to and again become available for issuance under the
Plan.

     (c) Source of Shares. The share of Company Stock subject to the Plan may
be unissued shares or reacquired shares, bought on the market or otherwise.

     (d) Share Reserve Limitation. Prior to the Listing Date and to the extent
then required by Section 260.140.45 of Title 10 of the California Code of

                                       7

<PAGE>

Regulations, the total number of shares of Company Stock issuable upon exercise
of all outstanding Options and the total number of shares of Company Stock
provided for under any stock bonus or similar plan of the Company shall not
exceed the applicable percentage as calculated in accordance with the
conditions and exclusions of Section 260.140.45 of Title 10 of the California
Code of Regulations, based on the shares of Company Stock of the Company that
are outstanding at the time the calculation is made.

5.   ELIGIBILITY.

     (a)  Eligibility for Specific Stock Awards. Incentive Stock Options may be
granted only to Employees. Stock Awards other than Incentive Stock Options may
be granted to Employees, Directors and Consultants.

     (b)  Ten Percent Stockholders.

          (i)  A Ten Percent Stockholder shall not be granted an Incentive
Stock Option unless the exercise price of such Option is at least one hundred
ten percent (110%) of the Fair Market Value of the Company Stock at the date of
grant and the Option is not exercisable after the expiration of five (5) years
from the date of grant.

         (ii)  Prior to the Listing Date, a Ten Percent Stockholder shall not
be granted a Nonstatutory Stock Option unless the exercise price of such Option
is at least (i) one hundred ten percent (110%) of the Fair Market Value of the
Company Stock at the date of grant or (ii) such lower percentage of the Fair
Market Value of the Company Stock at the date of grant as is permitted by
Section 260.140.41 of Title 10 of the California Code of Regulations at the
time of the grant of the Option.

        (iii)  Prior to the Listing Date, a Ten Percent Stockholder shall not
be granted a restricted stock award unless the purchase price of the restricted
stock is at least (i) one hundred percent (100%) of the Fair Market Value of
the Company Stock at the date of grant or (ii) such lower percentage of the
Fair Market Value of the Company Stock at the date of grant as is permitted by
Section 260.140.41 of Title 10 of the California Code of Regulations at the
time of the grant of the Option.

     (c)  Section 162(m) Limitation. Subject to the provisions of Section 11
relating to adjustments upon changes in the shares of Company Stock, no
Employee shall be eligible to be granted Options covering more than two million
(2,000,000) shares of Company Stock during any calendar year. This subsection
5(c) shall not apply prior to the Listing Date and, following the Listing Date,
this subsection 5(c) shall not apply until (i) the earliest of: (1) the first
material modification of the Plan (including any increase in the number of
shares of Company Stock reserved for issuance under the Plan in accordance with
Section 4); (2) the issuance of all of the shares of Common Stock reserved for

                                       8
<PAGE>

issuance under the Plan; (3) the expiration of the Plan; or (4) the first
meeting of stockholders at which Directors are to be elected that occurs after
the close of the third calendar year following the calendar year in which
occurred the first registration of an equity security under Section 12 of the
Exchange Act; or (ii) such other date required by Section 162(m) of the Code
and the rules and regulations promulgated thereunder.

     (d)  Consultants.

          (i)       Prior to the Reporting Date, a Consultant shall not be
eligible for the grant of a Stock Award if, at the time of grant, the Consultant
does not meet the special requirements of Rule 701 ("Rule 701") promulgated
under the Securities Act, the offer or the sale of the Company's securities to
such Consultant is not exempt under Rule 701 because of the nature of the
services that the Consultant is providing to the Company, or as otherwise
provided by Rule 701.

          (ii)      From and after the Reporting Date, a Consultant shall not
be eligible for the grant of a Stock Award if, at the time of grant, a Form S-8
Registration Statement under the Securities Act ("Form S-8") is not available to
register either the offer or the sale of the Company's securities to such
Consultant because of the nature of the services that the Consultant is
providing to the Company, or because the Consultant is not a natural person, or
as otherwise provided by the rules governing the use of Form S-8, unless the
Company determines both (i) that such grant (A) shall be registered in another
manner under the Securities Act (e.g., on a Form S-3 Registration Statement) or
(B) does not require registration under the Securities Act in order to comply
with the requirements of the Securities Act, if applicable, and (ii) that such
grant complies with the securities laws of all other relevant jurisdictions.

          (iii)     Rule 701 and Form S-8 generally are available to
consultants and advisors only if (i) they are natural persons; (ii) they
provide bona fide services to the issuer, its parents, its majority-owned
subsidiaries or majority-owned subsidiaries of the issuer's parent; and (iii)
the services are not in connection with the offer or sale of securities in a
capital-raising transaction, and do not directly or indirectly promote or
maintain a market for the issuer's securities.

                                       9

<PAGE>
6.  OPTION PROVISIONS.

     Each Option shall be in such form and shall contain such terms and
conditions as the Board shall deem appropriate.  All Options shall be
separately designated Incentive Stock Options or Nonstatutory Stock Options at
the time of grant, and, if certificates are issued, a separate certificate or
certificates will be issued for shares of Common Stock purchased on exercise of
each type of Option. The provisions of separate Options need not be identical,
but each Option shall include (through incorporation of provisions hereof by
reference in the Option or otherwise) the substance of each of the following
provisions:

     (a)  Term. Subject to the provisions of subsection 5(b) regarding Ten
Percent Stockholders, no Option granted prior to the Listing Date shall be
exercisable after the expiration of ten (10) years from the date it was
granted, and no Incentive Stock Option granted on or after the Listing Date
shall be exercisable after the expiration of ten (10) years from the date it
was granted.

     (b)  Exercise Price of an Incentive Stock Option. Subject to the
provisions of subsection 5(b) regarding Ten Percent Stockholders, the exercise
price of each Incentive Stock Option shall be not less than one hundred percent
(100%) of the Fair Market Value of the Common Stock subject to the Option on
the date the Option is granted. Notwithstanding the foregoing, an Incentive
Stock Option may be granted with an exercise price lower than that set forth in
the preceding sentence if such Option is granted pursuant to an assumption or
substitution for another option in a manner satisfying the provisions of
Section 424(a) of the Code.

     (c)  Exercise Price of a Nonstatutory Stock Option. Subject to the
provisions of subsection 5(b) regarding Ten Percent Stockholders, the exercise
price of each Nonstatutory Stock Option granted prior to the Listing Date shall
be not less than eighty-five percent (85%) of the Fair Market Value of the
Company Stock subject to the Option on the date the Option is granted. The
exercise price of each Nonstatutory Stock Option granted on or after the
Listing Date shall be not less than eighty-five percent (85%) of the Fair
Market Value of the Company Stock subject to the Option on the date the Option
is granted. Notwithstanding the foregoing, a Nonstatutory Stock Option may be
granted with an exercise price lower than that set forth in the preceding
sentence if such Option is granted pursuant to an assumption or substitution
for another option in a manner satisfying the provisions of Section 424(a) of
the Code.

     (d)  Consideration. The purchase price of Company Stock acquired pursuant
to an Option shall be paid, to the extent permitted by applicable statutes and
regulations, either (i) in cash at the time the Option is exercised or (ii) at
the discretion of the Board at the time of the grant of the Option (or
subsequently in the case of a Nonstatutory Stock Option) (1) by delivery to the
Company of other Company Stock, (2) according to a deferred payment or other
similar arrangement with the Optionholder or (3) in any other form of legal
consideration that may be

                                       10
<PAGE>
acceptable to the Board. Unless otherwise specifically provided in the Option,
the purchase price of Company Stock acquired pursuant to an Option that is paid
by delivery to the Company of other Company Stock acquired, directly or
indirectly from the Company, shall be paid only by shares of the Company Stock
of the Company that have been held for more than six (6) months (or such longer
or shorter period of time required to avoid a charge to earnings for financial
accounting purposes). At any time that the Company is incorporated in Delaware,
payment of the Company Stock's "par value," as defined in the Delaware General
Corporation Law, shall not be made by deferred payment.

     In the case of any deferred payment arrangement, interest shall be
compounded at least annually and shall be charged at the minimum rate of
interest necessary to avoid the treatment as interest, under any applicable
provisions of the Code, of any amounts other than amounts stated to be interest
under the deferred payment arrangement.

     (e) Transferability of an Incentive Stock Option. An Incentive Stock
Option shall not be transferable except by will or by the laws of descent and
distribution and shall be exercisable during the lifetime of the Optionholder
only by the Optionholder. Notwithstanding the foregoing, the Optionholder may,
by delivering written notice to the Company, in a form satisfactory to the
Company, designate a third party who, in the event of the death of the
Optionholder, shall thereafter be entitled to exercise the Option.

     (f) Transferability of a Nonstatutory Stock Option. Except to the extent
otherwise provided in the Option Agreement, a Nonstatutory Stock Option shall
not be transferable except by will or by the laws of descent and distribution
and shall be exercisable during the lifetime of the Optionholder only by the
Optionholder. Notwithstanding the foregoing, the Optionholder may, by delivering
written notice to the Company, in a form satisfactory to the Company, designate
a third party who, in the event of the death of the Optionholder, shall
thereafter be entitled to exercise the Option.

     (g) Vesting Generally. The total number of shares of Common Stock subject
to an Option may, but need not, vest and therefore become exercisable in
periodic installments that may, but need not, be equal. The Option may be
subject to such other terms and conditions on the time or times when it may be
exercised (which may be based on performance or other criteria) as the Board may
deem appropriate. The vesting provisions of individual Options may vary. The
provisions of this subsection 6(g) are subject to any Option provisions
governing the minimum number of shares of Common Stock as to which an Option may
be exercised.

     (h) Minimum Vesting Prior to the Listing Date. Notwithstanding the
foregoing subsection 6(g), to the extent that the following restrictions on
vesting are required by Section 260.140.41(f) of Title 10 of the California
Code of Regulations at the time of the grant of the Option, then:

                                       11

<PAGE>
          (i)  Options granted prior to the Listing Date to an Employee who is
not an Officer, Director or Consultant shall provide for vesting of the total
number of shares of Common Stock at a rate of at least twenty percent (20%) per
year over five (5) years from the date the Option was granted, subject to
reasonable conditions such as continued employment; and

          (ii) Options granted prior to the Listing Date to Officers, Directors
or Consultants may be made fully exercisable, subject to reasonable conditions
such as continued employment, at any time or during any period established by
the Company.

     (i)  Termination of Continuous Service. In the event an Optionholder's
Continuous Service terminates (other than upon the Optionholder's death or
Disability or for Cause), the Optionholder may exercise his or her Option (to
the extent that the Optionholder was entitled to exercise such Option as of the
date of termination) but only within such period of time ending on the earlier
of (i) the date three (3) months following the termination of the
Optionholder's Continuous Service (or such longer or shorter period specified in
the Option Agreement), or (ii) the expiration of the term of the Option as set
forth in the Option Agreement. If, after termination, the Optionholder does not
exercise his or her Option within the time specified in the Option Agreement,
the Option shall terminate.

     (j)  Extension of Termination Date. An Optionholder's Option Agreement may
also provide that if the exercise of the Option following the termination of
the Optionholder's Continuous Service (other than upon the Optionholder's death
or Disability or for Cause) would be prohibited at any time solely because
the issuance of shares of Common Stock would violate the registration
requirements under the Securities Act, then the Option shall terminate on the
earlier of (i) the expiration of the term of the Option set forth in subsection
6(a) or (ii) the expiration of a period of three (3) months after the
termination of the Optionholder's Continuous Service during which the exercise
of the Option would not be in violation of such registration requirements.

     (k)  Disability of Optionholder. In the event that an Optionholder's
Continuous Service terminates as a result of the Optionholder's Disability, the
Optionholder may exercise his or her Option (to the extent that the
Optionholder was entitled to exercise such Option as of the date of
termination), but only within such period of time ending on the earlier of (i)
the date twelve (12) months following such termination (or such longer or
shorter period specified in the Option Agreement) or (ii) the expiration of the
term of the Option as set forth in the Option Agreement. If, after termination,
the Optionholder does not exercise his or her Option within the time specified
herein, the Option shall terminate.

     (l)  Death of Optionholder. If the event (i) an Optionholder's Continuous
Service terminates as a result of the Optionholder's death or (ii) the
Optionholder dies within the period (if any) specified in the Option Agreement
after the termination of the Optionholder's Continuous Service for a reason
other

                                       12
<PAGE>
than death, then the Option may be exercised (to the extent the Optionholder
was entitled to exercise such Option as of the date of death) by the
Optionholder's estate, by a person who acquired the right to exercise the
Option by bequest or inheritance or by a person designated to exercise the
Option upon the Optionholder's death pursuant to subsection 6(e) or 6(f), but
only within the period ending on the earlier of (1) the date eighteen (18)
months following the date of death (or such longer or shorter period specified
in the Option Agreement) or (2) the expiration of the term of such Option as
set forth in the Option Agreement. If, after death, the Option is not exercised
within the time specified herein, the Option shall terminate.

     (m) Termination for Cause. In the event of an Optionholder's Continuous
Service is terminated for Cause, the Option shall immediately terminate upon
the termination for Cause of such Optionholder's Continuous Service and the
Optionholder is prohibited from exercising his or her Option at the time of
such termination.

     (n) Early Exercise. The Option may, but need not, include a provision
whereby the Optionholder may elect at any time before the Optionholder's
Continuous Service terminates to exercise the Option as to any part or all of
the shares of Common Stock subject to the Option prior to the full vesting of
the Option. Subject to the "Repurchase Limitation" in subsection 10(h), any
unvested shares of Common Stock so purchased may be subject to a repurchase
option in favor of the Company or to any other restriction the Board determines
to be appropriate.

     (o) Right of Repurchase. Subject to the "Repurchase Limitation" in
subsection 10(h), the Option may, but need not, include a provision whereby the
Company may elect, prior to the Listing Date, to repurchase all or any part of
the vested shares of Common Stock acquired by the Optionholder pursuant to the
exercise of the Option.

     (p) Right of First Refusal. The Option may, but need not, include a
provision whereby the Company may elect, prior to the Listing Date, to exercise
a right of first refusal following receipt of notice from the Optionholder of
the intent to transfer all or any part of the shares of Common Stock received
upon the exercise of the Option. Except as expressly provided in this
subsection 6(p), such right of first refusal shall otherwise comply with any
applicable provisions of the Bylaws of the Company.

     (q) Restrictions on Transfer of Securities Acquired upon Exercise. Any
shares of Company Stock acquired upon the exercise of an Option prior to the
Reporting Date is subject to the restrictions on transfer contained in the
Company's bylaws, as may be amended from time to time.

                                       13

<PAGE>
7.   PROVISIONS OF STOCK AWARDS OTHER THAN OPTIONS.

     (a)  Stock Bonus Awards.  Each stock bonus agreement shall be in such form
and shall contain such terms and conditions as the Board shall deem appropriate.
The terms and conditions of stock bonus agreements may change from time to time,
and the terms and conditions of separate stock bonus agreements need not be
identical, but each stock bonus agreement shall include (through incorporation
of provisions hereof by reference in the agreement or otherwise) the substance
of each of the following provisions:

          (i)       Consideration.  A stock bonus may be awarded in
consideration for past services actually rendered to the Company or an Affiliate
for its benefit.

          (ii)      Vesting.  Subject to the "Repurchase Limitation" in
subsection 10(h), shares of Company Stock awarded under the stock bonus
agreement may, but need not, be subject to a share repurchase option in favor of
the Company in accordance with a vesting schedule to be determined by the Board.

          (iii)     Termination of Participant's Continuous Service.  Subject to
the "Repurchase Limitation" in subsection 10(h), in the event a Participant's
Continuous Service terminates, the Company may reacquire any or all of the
shares of Company Stock held by the Participant which have not vested as of the
date of termination under the terms of the stock bonus agreement.

          (iv)      Transferability.  For a stock bonus award made before the
Listing Date, rights to acquire shares of Company Stock under the stock bonus
agreement shall not be transferable except by will or by the laws of descent and
distribution and shall be exercisable during the lifetime of the Participant
only by the Participant. For a stock bonus award made on or after the Listing
Date, rights to acquire shares of Company Stock under the stock bonus agreement
shall be transferable by the Participant only upon such terms and conditions as
are set forth in the stock bonus agreement, as the Board shall determine in its
discretion, so long as Company Stock awarded under the stock bonus agreement
remains subject to the terms of the stock bonus agreement.

     (b)  Restricted Stock Awards.  Each restricted stock purchase agreement
shall be in such form and shall contain such terms and conditions as the Board
shall deem appropriate. The terms and conditions of the restricted stock
purchase agreements may change from time to time, and the terms and conditions
of separate restricted stock purchase agreements need not be identical, but each
restricted stock purchase agreement shall include (through incorporation of
provisions hereof by reference in the agreement or otherwise) the substance of
each of the following provisions:

                                       14
<PAGE>
          (i)       Purchase Price.  Subject to the provisions of subsection
5(b) regarding Ten Percent Stockholders, the purchase price under each
restricted stock purchase agreement shall be such amount as the Board shall
determine and designate in such restricted stock purchase agreement. For
restricted stock awards made prior to the Listing Date, the purchase price shall
not be less than eighty-five percent (85%) of the Company Stock's Fair Market
Value on the date such award is made or at the time the purchase is consummated.
For restricted stock awards made on or after the Listing Date, the purchase
price shall not be less than eighty-five percent (85%) of the Company Stock's
Fair Market Value on the date such award is made or at the time the purchase is
consummated.

          (ii)      Consideration.  The purchase price of Company Stock acquired
pursuant to the restricted stock purchase agreement shall be paid either: (i) in
cash at the time of purchase; (ii) at the discretion of the Board, according to
a deferred payment or other similar arrangement with the Participant; or (iii)
in any other form of legal consideration that may be acceptable to the Board in
its discretion; provided, however, that at any time that the Company is
incorporated in Delaware, then payment of the Company Stock's "par value," as
defined in the Delaware General Corporation Law, shall not be made by deferred
payment.

          (iii)     Vesting.  Subject to the "Repurchase Limitation" in
subsection 10(h), shares of Company Stock acquired under the restricted stock
purchase agreement may, but need not, be subject to a share repurchase option in
favor of the Company in accordance with a vesting schedule to be determined by
the Board.

          (iv)      Termination of Participant's Continuous Service.  Subject to
the "Repurchase Limitation" in subsection 10(h), in the event a Participant's
Continuous Service terminates, the Company may repurchase or otherwise reacquire
any or all of the shares of Company Stock held by the Participant which have not
vested as of the date of termination under the terms of the restricted stock
purchase agreement.

          (v)       Transferability.  For a restricted stock award made before
the Listing Date, rights to acquire shares of Company Stock under the restricted
stock purchase agreement shall not be transferable except by will or by the laws
of descent and distribution and shall be exercisable during the lifetime of the
Participant only by the Participant. For a restricted stock award made on or
after the Listing Date, rights to acquire shares of Company Stock under the
restricted stock purchase agreement shall be transferable by the Participant
only upon such terms and conditions as are set forth in the restricted stock
purchase agreement, as the Board shall determine in its discretion, so long as
Company Stock awarded under the restricted stock purchase agreement remains
subject to the terms of the restricted stock purchase agreement.

     (c)  Restrictions on Transfer of Securities Acquired through Stock Awards
other than Options.  All shares of Company Stock acquired through Stock

                                       15
<PAGE>
Awards other than Options prior to the Reporting Date are subject to the
restrictions on transfer contained in the Company's bylaws, as may be amended
from time to time.

8.   COVENANTS OF THE COMPANY.

     (a)  Availability of Shares. During the terms of the Stock Awards, the
Company shall keep available at all times the number of shares of Company Stock
required to satisfy such Stock Awards.

     (b)  Securities Law Compliance. The Company shall seek to obtain from each
regulatory commission or agency having jurisdiction over the Plan such
authority as may be required to grant Stock Awards and to issue and sell shares
of Company Stock upon exercise of the Stock Awards; provided, however, that
this undertaking shall not require the Company to register under the Securities
Act the Plan, any Stock Award or any Company Stock issued or issuable pursuant
to any such Stock Award. If, after reasonable efforts, the Company is unable to
obtain from any such regulatory commission or agency the authority which
counsel for the Company deems necessary for the lawful issuance and sale of
Company Stock under the Plan, the Company shall be relieved from any liability
for failure to issue and sell Company Stock upon exercise of such Stock Awards
unless and until such authority is obtained.

9.   USE OF PROCEEDS FROM STOCK.

     Proceeds from the sale of Company Stock pursuant to Stock Awards shall
constitute general funds of the Company.

10.  MISCELLANEOUS

     (a)  Acceleration of Exercisability and Vesting. The Board shall have the
power to accelerate the time at which a Stock Award may first be exercised or
the time during which a Stock Award or any part thereof will vest in accordance
with the Plan, notwithstanding the provisions in the Stock Award stating the
time at which it may first be exercised or the time during which it will vest.

     (b)  Stockholder Rights. No Participant shall be deemed to be the holder
of, or to have any of the rights of a holder with respect to, any shares of
Common Stock subject to such Stock Award unless and until such Participant has
satisfied all requirements for exercise of the Stock Award pursuant to its
terms.

     (c)  No Employment or other Service Rights. Nothing in the Plan or any
instrument executed or Stock Award granted pursuant thereto shall confer upon
any Participant any right to continue to serve the Company or an Affiliate in
the capacity in effect at the time the Stock Award was granted or shall affect
the right of the Company or an Affiliate to terminate (i) the employment of an
Employee with or without notice and with or without cause, (ii) the service of
a Consultant pursuant to the terms of such Consultant's agreement with the

                                       16
<PAGE>
Company or an Affiliate or (iii) the service of a Director pursuant to the
Bylaws of the Company or an Affiliate, and any applicable provisions of the
corporate law of the state in which the Company or the Affiliate is
incorporated, as the case may be.

     (d)  Incentive Stock Option $100,000 Limitation. To the extent that the
aggregate Fair Market Value (determined at the time of grant) of Common Stock
with respect to which Incentive Stock Options are exercisable for the first
time by any Optionholder during any calendar year (under all plans of the
Company and its Affiliates) exceeds one hundred thousand dollars ($100,000),
the Options or portions thereof which exceed such limit (according to the order
in which they were granted) shall be treated as Nonstatutory Stock Options.

     (e)  Investment Assurances. The Company may require a Participant, as a
condition of exercising or acquiring Company Stock under any Stock Award, (i) to
give written assurances satisfactory to the Company as to the Participant's
knowledge and experience in financial and business matters and/or to employ a
purchaser representative reasonably satisfactory to the Company who is
knowledgeable and experienced in financial and business matters and that he or
she is capable of evaluating, alone or together with the purchaser
representative, the merits and risks of exercising the Stock Award; and (ii) to
give written assurances satisfactory to the Company stating that the Participant
is acquiring Company Stock subject to the Stock Award for the Participant's own
account and not with any present intention of selling or otherwise distributing
the Company Stock. The foregoing requirements, and any assurances given pursuant
to such requirements, shall be inoperative if (1) the issuance of the shares of
Company Stock upon the exercise or acquisition of Company Stock under the Stock
Award has been registered under a then currently effective registration
statement under the Securities Act or (2) as to any particular requirement, a
determination is made by counsel for the Company that such requirement need not
be met in the circumstances under the then applicable securities laws. The
Company may place legends on stock certificates issued under the Plan as deemed
necessary or appropriate in order to comply with applicable securities laws,
including, but not limited to, legends restricting the transfer of the Common
Stock.

     (f)  Withholding Obligations. To the extent provided by the terms of a
Stock Award Agreement, the Participant may satisfy any federal, state or local
tax withholding obligation relating to the exercise or acquisition of Company
Stock under a Stock Award by any of the following means (in addition to the
Company's right to withhold from any compensation paid to the Participant by
the Company) or by a combination of such means: (i) tendering a cash payment;
(ii) authorizing the Company to withhold shares of Company Stock from the
shares of Company Stock otherwise issuable to the Participant as a result of
the exercise or acquisition of Company Stock under the Stock Award, provided,
however, that no shares of Company Stock are withheld with a value exceeding
the minimum amount of tax required to be withheld by law; or (iii) delivering
to the Company owed and unencumbered shares of Company Stock.

                                       17
<PAGE>
     (g) Information Obligation. Prior to the Listing Date, to the extent
required by Section 260.140.46 of Title 10 of the California Code of
Regulations, the Company shall deliver financial statements to Participants at
least annually. This subsection 10(g) shall not apply to key Employees whose
duties in connection with the Company assure them access to equivalent
information.

     (h) Repurchase Limitation. The terms of any repurchase option shall be
specified in the Stock Award and may be either at Fair Market Value at the time
of repurchase or at not less than the original purchase price. To the extent
required by Section 260.140.41 and Section 260.140.42 of Title 10 of the
California Code of Regulations at the time a Stock Award is made, any
repurchase option contained in a Stock Award granted prior to the Listing Date
to a person who is not an Officer, Director or Consultant shall be upon the
terms described below:

          (i) Fair Market Value. If the repurchase option gives the Company the
right to repurchase the shares of Common Stock upon termination of employment
at not less than the Fair Market Value of the shares of Common Stock to be
purchased on the date of termination of Continuous Service, then (i) the right
to repurchase shall be exercised for cash or cancellation of purchase money
indebtedness for the shares of Common Stock within ninety (90) days of
termination of Continuous Service (or in the case of shares of Common Stock
issued upon exercise of Stock Awards after such date of termination, within
ninety (90) days after the date of the exercise) or such longer period as may
be agreed to by the Company and the Participant (for example, for purposes of
satisfying the requirements of Section 1202(c)(3) of the Code regarding
"qualified small business stock") and (ii) the right terminates when the shares
of Common Stock become publicly traded.

          (ii) Original Purchase Price. If the repurchase option gives the
Company the right to repurchase the shares of Common Stock upon termination of
Continuous Service at the original purchase price, then (i) the right to
repurchase at the original purchase price shall lapse at the rate of at least
twenty percent (20%) of the shares of Company Stock per year over five (5)
years from the date the Stock Award is granted (without respect to the date the
Stock Award was exercised or became exercisable) and (ii) the right to
repurchase shall be exercised for cash or cancellation of purchase money
indebtedness for the shares of Company Stock within ninety (90) days of
termination of Continuous Service (or in the case of shares of Common Stock
issued upon exercise of Options after such date of termination, within ninety
(90) days after the date of the exercise) or such longer period as may be
agreed to by the Company and the Participant (for example, for purposes of
satisfying the requirements of Section 1202(c)(3) of the Code regarding
"qualified small business stock").

     (i) Fractional Shares. Fractional shares may be issued or delivered
pursuant to the Plan or any Award, but in connection with the exercise of any
Option with respect to a fractional share, the Committee may determine that
cash,

                                       18

<PAGE>
other securities or other property shall be paid or transferred in lieu of any
fractional shares of Company Securities, or that such fractional shares or any
rights thereto shall be canceled, terminated or otherwise eliminated.

11.  ADJUSTMENTS UPON CHANGES IN STOCK.

     (a)  In the event that the Committee shall determine that any dividend or
other distribution (whether in the form of cash, Company Stock, other
securities, or other property), recapitalization, stock split, reverse stock
split, reorganization, merger, consolidation, split-up, spin-off, combination,
repurchase, redemption or exchange of Company Stock or other securities of the
Company, issuance of warrants or other rights to purchase Shares or other
securities of the Company, or other similar corporate transaction or event
affects the shares of Company Stock such that an adjustment is determined by
the Committee to be appropriate in order to prevent dilution or enlargement of
the benefits or potential benefits intended to be made available under the
Plan, then the Committee may, in such manner as it may deem equitable, adjust
any or all of (i) the number and type of shares of Company Stock (or other
securities or property) which thereafter may be made the subject of Stock
Awards, including the aggregate and individual limits specified in Section 5(c)
hereof, (ii) the number and type of shares of Company Stock (or other
securities or property) subject to outstanding Stock Awards, and (iii) the
grant, purchase, or exercise price with respect to any Stock Award or, if
deemed appropriate, cancel any Stock Award and/or make provision for a cash
payment to the holder of an outstanding Stock Award or effect any combination
of the foregoing.

     (b)  Dissolution of Liquidation. In the event of a dissolution or
liquidation of the Company, then all outstanding Stock Awards shall terminate
immediately prior to such event.

12.  AMENDMENT OF THE PLAN AND STOCK AWARDS.

     (a)  Amendment of Plan. The Board at any time, and from time to time, may
amend the Plan. However, except as provided in Section 11 relating to
adjustments upon changes in Company Stock, no amendment shall be effective
unless approved by the stockholders of the Company to the extent stockholder
approval is necessary to satisfy the requirements of Section 422 of the Code,
Rule 16b-3 or any Nasdaq or securities exchange listing requirements.

     (b)  Stockholder Approval. The Board may, in its sole discretion, submit
any other amendment to the Plan for stockholder approval, including, but not
limited to, amendments to the Plan intended to satisfy the requirements of
Section 162(m) of the Code and the regulations thereunder regarding the
exclusion of performance-based compensation from the limit on corporate
deductibility of compensation paid to certain executive officers.

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<PAGE>
     (c)  Contemplated Amendments. It is expressly contemplated that the Board
may amend the Plan in any respect the Board deems necessary or advisable to
provide eligible Employees with the maximum benefits provided or to be provided
under the provisions of the Code and the regulations promulgated thereunder
relating to Incentive Stock Options and/or to bring the Plan and/or Incentive
Stock Options granted under it into compliance therewith.

     (d)  No Impairment of Rights. Rights under any Stock Award granted before
amendment of the Plan shall not be impaired by any amendment of the Plan unless
(i) the Company requests the consent of the Participant and (ii) the Participant
consents in writing.

     (e)  Amendment of Stock Awards. The Board at any time, and from time to
time, may amend the terms of any one or more Stock Awards; provided, however,
that the rights under any Stock Award shall not be impaired by any such
amendment unless (i) the Company requests the consent of the Participant and
(ii) the Participant consents in writing.

13.  TERMINATION OR SUSPENSION OF THE PLAN.

     (a)  Plan Term.  The Board may suspend or terminate the Plan at any time.
Unless sooner terminated, the Plan shall terminate on the day before the tenth
(10th) anniversary of the date the Plan is adopted by the Board or approved by
the stockholders of the Company, whichever is earlier. No Stock Awards may be
granted under the Plan while the Plan is suspended or after it is terminated.

     (b)  No Impairment of Rights. Suspension or termination of the Plan shall
not impair rights and obligations under any Stock Award granted while the Plan
is in effect except with the written consent of the Participant.

14.  EFFECTIVE DATE OF PLAN.

     The Plan shall become effective as determined by the Board and shall
replace and supersede the Predecessor Plan, but no Stock Award shall be
exercised (or, in the case of a stock bonus, shall be granted) unless and until
the Plan has been approved by the stockholders of the Company, which approval
shall be within twelve (12) months before or after the date the Plan is adopted
by the Board.

15.  CHOICE OF LAW.

     The law of the State of California shall govern all questions concerning
the construction, validity and interpretation of this Plan, without regard to
such state's conflict of laws rules.

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