Document:

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                                                                   EXHIBIT 10.10

                                CREDIT AGREEMENT

        This CREDIT AGREEMENT is entered into as of May 12, 2000 between New
Satco Holdings, Inc. (the "Company") and Teledesic LLC ("Lender").

        WHEREAS, the Lender has agreed to make available to the Company an
unsecured term loan upon the terms and conditions set forth in this Agreement;

        NOW, THEREFORE, in consideration of the mutual agreements, provisions
and covenants contained herein, the parties agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

               1.01 Certain Defined Terms. The following terms have the
        following meanings:

               "Affiliate" means, as to any Person, any other Person which,
        directly or indirectly, is in control of, is controlled by, or is under
        common control with, such Person.

               "Agreement" means this Credit Agreement.

               "Attorney Costs" means and includes all fees and disbursements of
        any law firm or other external counsel, the allocated cost of internal
        legal services and all disbursements of internal counsel.

               "Bankruptcy Code" means the Federal Bankruptcy Reform Act of 1978
        (11 U.S.C. Section 101, et seq.).

               "Business Day" means any day other than a Saturday, Sunday or
        other day on which commercial banks in Seattle, Washington are
        authorized or required by law to close.

               "Change of Control" means the failure of Eagle River Investments,
        L.L.C. or an affiliate to retain direct or indirect control of borrower.

               "Closing Date" means the date on which all conditions precedent
        set forth in Section 3.01 are satisfied or waived by the Lender.

               "Code" means the Internal Revenue Code of 1986, and regulations
        promulgated thereunder.

               "Compliance Certificate" means a certificate substantially in the
        form of Exhibit A.

               "Contingent Obligation" means, as to any Person, any direct or
        indirect liability of that Person, whether or not contingent, with or
        without recourse, (a) with respect to any Indebtedness, lease, dividend,
        letter of credit or other obligation (the "primary obligations") of
        another Person (the "primary obligor"), including any obligation of that
        Person (i) to purchase, repurchase or otherwise acquire such primary
        obligations or any security therefor, (ii) to advance or provide funds
        for the payment or discharge of any such primary obligation, or to
        maintain working capital or equity capital of the primary obligor or
        otherwise to maintain the net worth or solvency or any balance sheet
        item, level of income or financial condition of the primary obligor,
        (iii) to purchase property,

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        securities or services primarily for the purpose of assuring the owner
        of any such primary obligation of the ability of the primary obligor to
        make payment of such primary obligation, or (iv) otherwise to assure or
        hold harmless the holder of any such primary obligation against loss in
        respect thereof (each, a "Guaranty Obligation"); (b) with respect to any
        Surety Instrument issued for the account of that Person or as to which
        that Person is otherwise liable for reimbursement of drawings or
        payments; or (c) to purchase any materials, supplies or other property
        from, or to obtain the services of, another Person if the relevant
        contract or other related document or obligation requires that payment
        for such materials, supplies or other property, or for such services,
        shall be made regardless of whether delivery of such materials, supplies
        or other property is ever made or tendered, or such services are ever
        performed or tendered.

               "Contractual Obligation" means, as to any Person, any provision
        of any security issued by such Person or of any material agreement,
        undertaking, contract, indenture, mortgage, deed of trust or other
        instrument, document or agreement to which such Person is a party or by
        which it or any of its property is bound.

               "Default" means any event or circumstance which, with the giving
        of notice, the lapse of time, or both, would (if not cured or otherwise
        remedied during such time) constitute an Event of Default.

               "Disposition" means (i) the sale, lease, conveyance or other
        disposition of property, other than sales or other dispositions
        expressly permitted under this Agreement and (ii) the sale or transfer
        by the Company or any Subsidiary of the Company of any equity securities
        issued by any Subsidiary of the Company and held by such transferor
        Person.

               "Dollars", "dollars" and "$" each mean lawful money of the United
        States.

               "Event of Default" means any of the events or circumstances
        specified in Section 6.01.

               "Event of Loss" means, with respect to any property, any of the
        following: (a) any loss, destruction or damage of such property; (b) any
        pending or threatened institution of any proceedings for the
        condemnation or seizure of such property or for the exercise of any
        right of eminent domain; or (c) any actual condemnation, seizure or
        taking, by exercise of the power of eminent domain or otherwise, of such
        property, or confiscation of such property or the requisition of the use
        of such property.

               "Exchange Act" means the Securities Exchange Act of 1934, and
        regulations promulgated thereunder.

               "GAAP" means generally accepted accounting principles set forth
        from time to time in the opinions and pronouncements of the Accounting
        Principles Board and the American Institute of Certified Public
        Accountants and statements and pronouncements of the Financial
        Accounting Standards Board (or agencies with similar functions of
        comparable stature and authority within the U.S. accounting profession),
        which are applicable to the circumstances as of the date of
        determination.

               "Governmental Authority" means any nation or government, any
        state or other political subdivision thereof, any central bank (or
        similar monetary or regulatory authority) thereof, any entity exercising
        executive, legislative, judicial, regulatory or administrative functions
        of or pertaining to government, and any corporation or other

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        entity owned or controlled, through stock or capital ownership or
        otherwise, by any of the foregoing.

               "Indebtedness" of any Person means, without duplication, (a) all
        indebtedness for borrowed money; (b) all obligations issued, undertaken
        or assumed as the deferred purchase price of property or services (other
        than trade payables entered into in the ordinary course of business on
        ordinary terms); (c) all non-contingent reimbursement or payment
        obligations with respect to Surety Instruments; (d) all obligations
        evidenced by notes, bonds, debentures or similar instruments, including
        obligations so evidenced incurred in connection with the acquisition of
        property, assets or businesses; (e) all indebtedness created or arising
        under any conditional sale or other title retention agreement, or
        incurred as financing, in either case with respect to property acquired
        by the Person (even though the rights and remedies of the seller or
        Lender under such agreement in the event of default are limited to
        repossession or sale of such property); (f) all obligations with respect
        to capital leases; (g) all indebtedness referred to in clauses (a)
        through (f) above secured by (or for which the holder of such
        Indebtedness has an existing right, contingent or otherwise, to be
        secured by) any Lien upon or in property (including accounts and
        contracts rights) owned by such Person, even though such Person has not
        assumed or become liable for the payment of such Indebtedness; and (h)
        all Guaranty Obligations in respect of indebtedness or obligations of
        others of the kinds referred to in clauses (a) through (g) above.

               "Independent Auditor" has the meaning specified in subsection
        4.01(a).

               "Insolvency Proceeding" means, with respect to any Person, (a)
        any case, action or proceeding with respect to such Person before any
        court or other Governmental Authority relating to bankruptcy,
        reorganization, insolvency, liquidation, receivership, dissolution,
        winding-up or relief of debtors, or (b) any general assignment for the
        benefit of creditors, composition, marshaling of assets for creditors,
        or other, similar arrangement in respect of its creditors generally or
        any substantial portion of its creditors; undertaken under U.S. Federal,
        state or foreign law, including the Bankruptcy Code.

               "Interest Payment Date" means, the last Business Day of each
        calendar quarter.

               "Interest Period" means, a calendar quarter provided that; (i) if
        any Interest Period would otherwise end on a day that is not a Business
        Day, that Interest Period shall be extended to the following Business
        Day, and (ii) no interest period shall extend beyond the Maturity Date.

               "IRS" means the Internal Revenue Service, and any Governmental
        Authority succeeding to any of its principal functions under the Code.

               "Loan" means the extension of credit contemplated by this
        Agreement.

               "Loan Documents" means this Agreement and all other documents
        delivered to the Lender in connection with the transactions contemplated
        by this Agreement.

               "Material Adverse Effect" means (a) a material adverse change in,
        or a material adverse effect upon, the operations, business, properties,
        condition (financial or otherwise) of the Company or the Company and its
        Subsidiaries taken as a whole or as to any Material Subsidiary; (b) a
        material impairment of the ability of the Company to perform under any
        Loan Document and to avoid any Event of Default; or (c) a material
        adverse effect upon (i) the legality, validity, binding effect or
        enforceability against the Company of any Loan Document.

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               "Material Subsidiary" means, at any time, any Subsidiary having
        at such time either (i) total (gross) revenues for the preceding four
        fiscal quarter period in excess of $10,000,000 or (ii) total assets, as
        of the last day of the preceding fiscal quarter, having a net book value
        in excess of $5,000,000, in each case, based upon the Company's most
        recent annual or quarterly financial statements delivered to the Lender
        under Section 4.01.

               "Mortgage" means any deed of trust, mortgage, leasehold mortgage,
        assignment of rents or other document creating a Lien on real property
        or any interest in real property.

               "Net Issuance Proceeds" means, as to any issuance of debt or
        equity by any Person, cash proceeds and non-cash proceeds received or
        receivable by such Person in connection therewith, net of reasonable
        out-of-pocket costs and expenses paid or incurred in connection
        therewith in favor of any Person not an Affiliate of such Person, such
        costs and expenses not to exceed 5% of the gross proceeds of such
        issuance.

               "Obligations" means all advances, debts, liabilities,
        obligations, covenants and duties arising under any Loan Document owing
        by the Company to the Lender whether direct or indirect (including those
        acquired by assignment), absolute or contingent, due or to become due,
        now existing or hereafter arising.

               "Organization Documents" means, for any corporation, the
        certificate or articles of incorporation, the bylaws, any certificate of
        determination or instrument relating to the rights of preferred
        shareholders of such corporation, any shareholder rights agreement, and
        all applicable resolutions of the board of directors (or any committee
        thereof) of such corporation.

               "Person" means an individual, partnership, corporation, limited
        liability company, business trust, joint stock company, trust,
        unincorporated association, joint venture or Governmental Authority.

               "Requirement of Law" means, as to any Person, any law (statutory
        or common), treaty, rule or regulation or determination of an arbitrator
        or of a Governmental Authority, in each case applicable to or binding
        upon the Person or any of its property or to which the Person or any of
        its property is subject.

               "Responsible Officer" means the chief executive officer or the
        president of the Company, or any other officer having substantially the
        same authority and responsibility; or, with respect to compliance with
        financial covenants, the chief financial officer or the treasurer of the
        Company, or any other officer having substantially the same authority
        and responsibility.

               "SEC" means the Securities and Exchange Commission, or any
        Governmental Authority succeeding to any of its principal functions.

               "Solvent" means, as to any Person at any time, that (a) the fair
        value of the property of such Person is greater than the amount of such
        Person's liabilities (including disputed, contingent and unliquidated
        liabilities) as such value is established and liabilities evaluated for
        purposes of Section 101(31) of the Bankruptcy Code and, in the
        alternative, for purposes of the Washington Uniform Fraudulent Transfer
        Act; (b) the present fair saleable value of the property of such Person
        is not less than the amount that will be required to pay the probable
        liability of such Person on its debts as they become absolute and
        matured; (c) such Person is able to realize upon its property and pay
        its

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        debts and other liabilities (including disputed, contingent and
        unliquidated liabilities) as they mature in the normal course of
        business; (d) such Person does not intend to, and does not believe that
        it will, incur debts or liabilities beyond such Person's ability to pay
        as such debts and liabilities mature; and (e) such Person is not engaged
        in business or a transaction, and is not about to engage in business or
        a transaction, for which such Person's property would constitute
        unreasonably small capital.

               "Subsidiary" of a Person means any corporation, association,
        partnership, limited liability company, joint venture or other business
        entity of which more than 50% of the voting stock , membership interests
        or other equity interests (in the case of Persons other than
        corporations), is owned or controlled directly or indirectly by the
        Person, or one or more of the Subsidiaries of the Person, or a
        combination thereof. Unless the context otherwise clearly requires,
        references herein to a "Subsidiary" refer to a Subsidiary of the
        Company.

               "Surety Instruments" means all letters of credit (including
        standby and commercial), banker's acceptances, Lender guaranties,
        shipside bonds, surety bonds and similar instruments.

               "Taxes" means any and all present or future taxes, levies,
        assessments, imposts, duties, deductions, fees, withholdings or similar
        charges, and all liabilities with respect thereto, excluding, in the
        case of the Lender, taxes imposed on or measured by the Lender's gross
        or net income by the jurisdiction (or any political subdivision thereof)
        under the laws of which the Lender is organized or maintains a lending
        office.

               "UCC" means the Uniform Commercial Code as in effect in the State
        of Washington.

               "United States" and "U.S." each means the United States of
        America.

        1.02 Other Interpretive Provisions.

            (a) The meanings of defined terms are equally applicable to the
singular and plural forms of the defined terms.

            (b) The words "hereof", "herein", "hereunder" and similar words
refer to this Agreement as a whole and not to any particular provision of this
Agreement; and subsection, Section, Schedule and Exhibit references are to this
Agreement unless otherwise specified.

            (c) The term "documents" includes any and all instruments,
documents, agreements, certificates, indentures, notices and other writings,
however evidenced.

            (d) The term "including" is not limiting and means "including
without limitation."

            (e) In the computation of periods of time from a specified date to a
later specified date, the word "from" means "from and including"; the words "to"
and "until" each mean "to but excluding", and the word "through" means "to and
including."

            (f) The term "property" includes any kind of property or asset,
real, personal or mixed, tangible or intangible.

            (g) Unless otherwise expressly provided herein, (i) references to
agreements (including this Agreement) and other contractual instruments shall be
deemed to include all subsequent amendments and other modifications thereto, but
only to the extent such amendments and other modifications are not prohibited by
the terms of any Loan Document, and (ii) references to any statute or regulation
are to be construed as including all statutory and

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regulatory provisions consolidating, amending, replacing, supplementing or
interpreting the statute or regulation.

            (h) The captions and headings of this Agreement are for convenience
of reference only and shall not affect the interpretation of this Agreement.

            (i) This Agreement and other Loan Documents may use several
different limitations, tests or measurements to regulate the same or similar
matters. All such limitations, tests and measurements are cumulative and shall
each be performed in accordance with their terms. Unless otherwise expressly
provided, any reference to any action of the Lender by way of consent, approval
or waiver shall be deemed modified by the phrase "in its sole discretion."

            (j) This Agreement and the other Loan Documents are the result of
negotiations among and have been reviewed by counsel to the Lender, the Company
and the other parties, and are the products of all parties. Accordingly, they
shall not be construed against the Lender merely because of the Lender's
involvement in their preparation.

        1.03 Accounting Principles. Unless the context otherwise clearly
requires, all accounting terms not expressly defined herein shall be construed,
and all financial computations required under this Agreement shall be made, in
accordance with GAAP, consistently applied.

                                   ARTICLE II

                                   THE CREDIT

        2.01 Amount and Terms of Commitment; Use of Proceeds. The Lender agrees,
on the terms and conditions set forth herein, to make a single loan to the
Company (the "Loan") on the Closing Date in an amount not to exceed
$200,000,000.00. The Loan is not a revolving loan. Amounts repaid by the Company
may not be reborrowed under this Agreement. Proceeds from the Loan shall be used
by Borrower on or about May 15, 2000 to satisfy a portion of Borrower's
obligations to participate in the Exit Financing as that term is defined in the
ICO Global Communications (Holdings) Limited plan of reorganization.

        2.02 Optional Prepayments. Subject to Section 3.04, the Company may, at
any time or from time to time, upon not less than seven (7) Business Days'
notice to the Lender, ratably prepay the Loan in whole or in part, in minimum
amounts of $10,000,000 or any multiple of $10,000,000 in excess thereof. Such
notice of prepayment shall specify the date and amount of such prepayment. If
such notice is given by the Company, the Company shall make such prepayment and
the payment amount specified in such notice shall be due and payable on the date
specified therein, together with accrued interest to each such date on the
amount prepaid and any amounts required pursuant to Section 3.04.

        2.03 Repayment. The Company shall repay the Loan as follows.

            (a) The maturity date is August 1, 2001 ("the Maturity Date"). The
outstanding principal balance of the Loan shall accrue interest at LIBOR plus
4 1/2 percent per annum for the 6 month period following the Closing Date, and
at LIBOR plus 6 percent per annum thereafter. LIBOR shall mean the London
Inter-Bank Offering Rate for one month contracts as published in the Wall Street
Journal on the Closing Date and on the date of each rate adjustment pursuant to
the next sentence as reflected . The rate shall be adjusted on the sixtieth day
after the Closing Date and every 60 days thereafter. If the Company, or one of
its subsidiaries, has merged with

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Lender (the "Merger") on or before the Maturity Date, the outstanding principal
balance of the Loan, and all accrued and unpaid interest will be paid in cash on
the Maturity Date. If the Merger has not been consummated on or before the
Maturity Date and lack of such consummation is not the result of the Company's
material breach of any agreement setting forth the terms and conditions of the
Merger (the "Merger Agreement"), the Loan shall be repaid, upon notice (the
"Notice") to the Company within 30 days following the Maturity Date, by issuing
to Lender one (1) share of such Company Class A Common Stock for each $10.00 of
outstanding principal and interest accrued hereunder, rounded upward to the
nearest $10.00 increment, in lieu of any cash repayment. Such shares will be
issued within 5 days following the later of (i) the execution and delivery by
Lender of a Stock Purchase Agreement substantially in the form attached hereto
as Exhibit B together with the exhibits attached thereto, and (ii) the
expiration of all applicable waiting periods, and the receipt of all approvals
necessary, for issuance of such shares to Lender. If Lender fails to deliver the
Notice to the Company, or if the conditions to issuance of the shares set forth
in the preceding sentence are not both satisfied within 90 days following the
date of the Notice, the Company shall repay all outstanding principal and
accrued interest then due (the "New Principal") in 40 equal quarterly
installments beginning January 1, 2002, together with interest on the New
Principal at LIBOR plus 6 percent per annum. Payments due to Lender pursuant to
this Agreement shall be subordinated to all payments due by the Company to the
holders of the Company's senior debt instruments.. If the Merger has not been
consummated on or before the Maturity Date due to the Company's material breach
of its obligations under the Merger Agreement, all outstanding principal and
accrued interest shall be paid 30 days after Lender provides written demand for
payment to the Company, provided that demand may not be made on or before the
Maturity Date.. No fees or interest shall be paid in connection with the Loan
except as expressly set forth in this Section 2.3(a) and Section 5.02(a).

            (b) Anything herein to the contrary notwithstanding, the obligations
of the Company to the Lender hereunder shall be subject to the limitation that
payments of interest shall not be required for any period for which interest is
computed hereunder, to the extent (but only to the extent) that contracting for
or receiving such payment by the Lender would be contrary to the provisions of
any law applicable to the Lender limiting the highest rate of interest that may
be lawfully contracted for, charged or received by the Lender, and in such event
the Company shall pay the Lender interest at the highest rate permitted by
applicable law.

        2.04 Payments by the Company.

            (a) All payments to be made by the Company shall be made without
set-off, recoupment or counterclaim. Except as otherwise expressly provided
herein, all payments by the Company shall be made to the Lender at the place
indicated as the place of payment in the signature pages of this Agreement or
such other address as the Lender may specify in writing to the Company from time
to time, and shall be made in dollars and in immediately available funds, no
later than 3:00 p.m. (Pacific Standard time) on the date specified herein. Any
payment received by the Lender later than 3:00 p.m.( Pacific Standard time)
shall be deemed to have been received on the following Business Day and any
applicable interest or fee shall continue to accrue.

            (b) Subject to the provisions set forth in the definition of
"Interest Period" herein, whenever any payment is due on a day other than a
Business Day, such payment shall be made

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on the following Business Day, and such extension of time shall in such case be
included in the computation of interest or fees, as the case may be.

            (c) Any and all payments by the Company to the Lender under this
Agreement and any other Loan Document shall be made free and clear of, and
without deduction or withholding for, any Taxes.

                                   ARTICLE III

                              CONDITIONS PRECEDENT

        3.01 Conditions of Loan. The obligation of Lender to make the Loan is
subject to the condition that Lender shall have received on or before the
Closing Date all of the following, in form and substance satisfactory to the
Lender:

            (a) This Agreement executed by each party thereto;

            (b) Copies of the resolutions of the board of directors of the
Company authorizing the transactions contemplated hereby, certified as of the
Closing Date by the Secretary or an Assistant Secretary of the Company; and

            (c) A certificate of the Secretary or Assistant Secretary of the
Company certifying the names and true signatures of the officers of the Company
authorized to execute, deliver and perform, as applicable, this Agreement, and
all other Loan Documents to be delivered by it hereunder;

            (d) A certificate signed by a Responsible Officer, dated as of the
Closing Date, stating that:

                (1) no Default or Event of Default exists or would result from
the disbursement of the initial Loan; and

                (2) there has occurred since May 5, 2000, no event or
circumstance that has resulted or could reasonably be expected to result in a
Material Adverse Effect;

            (e) Such other approvals, opinions, documents or materials as Lender
may reasonably request.

                                   ARTICLE IV

                              AFFIRMATIVE COVENANTS

        So long as the Loan or other Obligation shall remain unpaid or
unsatisfied, unless the Lender waives compliance in writing:

        4.01 Financial Statements. The Company shall deliver to the Lender, in
form and detail satisfactory to the Lender:

            (a) As soon as available, but not later than one hundred twenty
(120) days after the end of each fiscal year, a copy of the audited consolidated
balance sheet of the Company and its Subsidiaries as at the end of such year and
the related consolidated statements of income or operations, shareholders'
equity and cash flows for such year, setting forth in each case in comparative
form the figures for the previous fiscal year, and accompanied by the opinion of
Arthur Andersen, or another nationally-recognized independent public accounting
firm ("Independent Auditor") which report shall state that such consolidated
financial statements

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present fairly the financial position for the periods indicated in conformity
with GAAP applied on a basis consistent with prior years;

            (b) As soon as available, but not later than ninety (90) days after
the end of each of the first three fiscal quarters of each fiscal year, a copy
of the unaudited consolidated balance sheet of the Company and its Subsidiaries
as of the end of such quarter and the related consolidated statements of income,
shareholders' equity and cash flows for the period commencing on the first day
and ending on the last day of such quarter, and certified by a Responsible
Officer as fairly presenting, in accordance with GAAP (subject to ordinary, good
faith year-end audit adjustments), the financial position and the results of
operations of the Company and the Subsidiaries;

        4.02 Notices. The Company shall promptly notify Lender:

            (a) Of the occurrence of any Default or Event of Default, and of the
occurrence or existence of any event or circumstance that foreseeably will
become a Default or Event of Default;

            (b) of (i) any breach or non-performance of, or any default under,
any Contractual Obligation of the Company or any of its Subsidiaries which could
result in a Material Adverse Effect; and (ii) any dispute, litigation,
investigation, proceeding or suspension which may exist at any time between the
Company or any of its Subsidiaries and any Governmental Authority; and

            (c) Of the commencement of, or any material development in, any
litigation or proceeding affecting the Company or any Subsidiary (i) in which
the amount of damages claimed is $10,000,000 (or its equivalent in another
currency or currencies) or more, (ii) in which injunctive or similar relief is
sought and which, if adversely determined, would reasonably be expected to have
a Material Adverse Effect, or (iii) in which the relief sought is an injunction
or other stay of the performance of this Agreement or any Loan Document.

            Each notice under this Section shall be accompanied by a written
statement by a Responsible Officer setting forth details of the occurrence
referred to therein, and stating what action the Company or any affected
Subsidiary proposes to take with respect thereto and at what time. Each notice
under subsection 4.02(a) shall describe with particularity any and all clauses
or provisions of this Agreement or other Loan Document that have been (or
foreseeably will be) breached or violated.

        4.03 Preservation of Corporate Existence, Etc. The Company shall, and
shall cause each Material Subsidiary to:

            (a) Preserve and maintain in full force and effect its corporate
existence and good standing under the laws of its state or jurisdiction of
incorporation;

            (b) Preserve and maintain in full force and effect all governmental
rights, privileges, qualifications, permits, licenses and franchises necessary
or desirable in the normal conduct of its business;

            (c) Use reasonable efforts, in the ordinary course of business, to
preserve its business organization and goodwill; and

            (d) Preserve or renew all of its registered patents, trademarks,
trade names and service marks, the non-preservation of which could reasonably be
expected to have a Material Adverse Effect.

<PAGE>   10

        4.04 Compliance with Laws. The Company shall comply, and shall cause
each Subsidiary to comply, in all material respects with all Requirements of Law
of any Governmental Authority having jurisdiction over it or its business
(including the Federal Fair Labor Standards Act), except such as may be
contested in good faith or as to which a bona fide dispute may exist.

        4.05 Inspection of Property and Books and Records. The Company shall
maintain and shall cause each Subsidiary to maintain proper books of record and
account, in which full, true and correct entries in conformity with GAAP
consistently applied shall be made of all financial transactions and matters
involving the assets and business of the Company and such Subsidiary. The
Company shall permit, and shall cause each Subsidiary to permit, representatives
and independent contractors of the Lender to visit and inspect any of their
respective properties, to examine their respective corporate, financial and
operating records, and make copies thereof or abstracts therefrom, and to
discuss their respective affairs, finances and accounts with their respective
directors, officers, and independent public accountants, all at the expense of
the Company and at such reasonable times during normal business hours and as
often as may be reasonably desired, upon reasonable advance notice to the
Company; provided, however, when an Event of Default exists the Lender may do
any of the foregoing at the expense of the Company at any time during normal
business hours and without advance notice.

        4.06 Further Assurances. The Company shall ensure that all written
information, exhibits and reports furnished to Lender do not and will not
contain any untrue statement of a material fact and do not and will not omit to
state any material fact or any fact necessary to make the statements contained
therein not misleading in light of the circumstances in which made, and will
promptly disclose to Lender and correct any defect or error that may be
discovered therein or in any Loan Document or in the execution, acknowledgement
or recordation thereof.

                                    ARTICLE V

                                EVENTS OF DEFAULT

        5.01 Event of Default. Any of the following shall constitute an "Event
of Default":

            (a) The Company fails to make, (i) when and as required to be made
herein, payments of any amount of principal of any Loan, or (ii) within ten (10)
days after the same becomes due, payment of any interest, fee or any other
amount payable hereunder or under any other Loan Document; or

            (b) Any representation or warranty by the Company made or deemed
made herein, in any other Loan Document, or which is contained in any
certificate, document or financial or other statement by the Company or any
Responsible Officer, furnished at any time under this Agreement, or in or under
any other Loan Document, is incorrect in any material respect on or as of the
date made or deemed made; or

            (c) The Company fails to perform or observe any other term or
covenant contained in this Agreement, and such default shall continue unremedied
for a period of twenty (20) days after the earlier of (i) the date upon which a
Responsible Officer knew or reasonably

<PAGE>   11

should have known of such failure or (ii) the date upon which written notice
thereof is given to the Company by Lender; or

            (d) The Company or any Subsidiary (A) fails to make any payment in
respect of any Indebtedness or Contingent Obligation, having an aggregate
principal of more than $10,000,000 when due (whether by scheduled maturity,
required prepayment, acceleration, demand, or otherwise) and such failure
continues after the applicable grace or notice period, if any, specified in the
relevant document on the date of such failure, and the party to whom the
Indebtedness or Contingent Obligation is owed commences legal action to collect
on or enforce such Indebtedness or Current Obligation or rightfully accelerates
any material amount due pursuant to such Indebtedness or Current Obligation; or
(B) fails to perform or observe any other condition or covenant, or any other
event shall occur or condition exist, under any agreement or instrument relating
to any such Indebtedness or Contingent Obligation, and such failure continues
after the applicable grace or notice period, if any, specified in the relevant
document on the date of such failure if the effect of such failure, event or
condition is to cause, or to permit the holder or holders of such Indebtedness
or beneficiary or beneficiaries of such Indebtedness (or a trustee or agent on
behalf of such holder or holders or beneficiary or beneficiaries) to cause such
Indebtedness to be declared to be due and payable prior to its stated maturity,
or such Contingent Obligation to become payable or cash collateral in respect
thereof to be demanded, and the party to whom the Indebtedness or Contingent
Obligation is owed commences legal action to collect on or enforce such
Indebtedness or Current Obligation or rightfully accelerates any material amount
due pursuant to such Indebtedness or Current Obligation.

            (e) The Company or any Material Subsidiary (i) ceases or fails to be
solvent, or generally fails to pay, or admits in writing its inability to pay,
its debts as they become due, subject to applicable grace periods, if any,
whether at stated maturity or otherwise; (ii) voluntarily ceases to conduct its
business in the ordinary course; (iii) commences any Insolvency Proceeding with
respect to itself; or (iv) takes any action to effectuate or authorize any of
the foregoing; or

            (f) Any involuntary Insolvency Proceeding is commenced or filed
against the Company or any Material Subsidiary, or any writ, judgment, warrant
of attachment, execution or similar process, is issued or levied against a
substantial part of the Company's or any Material Subsidiary's properties, and
any such proceeding or petition shall not be dismissed, or such writ, judgment,
warrant of attachment, execution or similar process shall not be released,
vacated or fully bonded within sixty (60) days after commencement, filing or
levy; the Company or any Material Subsidiary admits the material allegations of
a petition against it in any Insolvency Proceeding, or an order for relief (or
similar order under non-U.S. law) is ordered in any Insolvency Proceeding; or
the Company or any Material Subsidiary acquiesces in the appointment of a
receiver, trustee, custodian, conservator, liquidator, mortgagee in possession
(or agent therefor), or other similar Person for itself or a substantial portion
of its property or business; or

            (g) One or more non-interlocutory judgments, non-interlocutory
orders, decrees or arbitration awards is entered against the Company or any
Subsidiary involving in the aggregate a liability (to the extent not covered by
independent third-party insurance as to which the insurer does not dispute
coverage) as to any single or related series of transactions, incidents or
conditions, of $10,000,000 or more, and the same shall remain unsatisfied,
unvacated and unstayed pending appeal for a period of ten (10) days after the
entry thereof; or
<PAGE>   12

            (h) Any non-monetary judgment, order or decree is entered against
the Company or any Subsidiary which does or would reasonably be expected to have
a Material Adverse Effect, and there shall be any period of ten (10) consecutive
days during which a stay of enforcement of such judgment or order, by reason of
a pending appeal or otherwise, shall not be in effect; or

            (i) There occurs any Change of Control; or

            (j) Any other Governmental Authority revokes or fails to renew any
material license, permit or franchise of the Company or any Material Subsidiary,
or the Company or any Material Subsidiary for any reason loses any material
license, permit or franchise, or the Company or any Material Subsidiary suffers
the imposition of any restraining order, escrow, suspension or impound of funds
in connection with any proceeding (judicial or administrative) with respect to
any material license, permit or franchise; or

            (k) There occurs a Material Adverse Effect.

        5.02 Remedies. If any Event of Default occurs, the Lender may:

            (a) Declare the unpaid principal amount of the Loan, all interest
accrued and unpaid thereon, and all other amounts owing or payable hereunder or
under any other Loan Document to be immediately due and payable, without
presentment, demand, protest or other notice of any kind, all of which are
hereby expressly waived by the Company and upon such declaration, the unpaid
principal amount of the Loan shall accrue interest at the rate of LIBOR plus 8
percent per annum; and

            (b) Exercise on behalf of itself all rights and remedies available
to it under the Loan Documents or applicable law.

        5.03 Rights Not Exclusive. The rights provided for in this Agreement and
the other Loan Documents are cumulative and are not exclusive of any other
rights, powers, privileges or remedies provided by law or in equity, or under
any other instrument, document or agreement now existing or hereafter arising.

                                   ARTICLE VI
                                  MISCELLANEOUS

        6.01 Amendments and Waivers. No amendment or waiver of any provision of
this Agreement or any other Loan Document, and no consent with respect to any
departure by the Company or any applicable Subsidiary therefrom, shall be
effective unless the same shall be in writing and signed by the Lender and the
Company, and then any such waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given.

        6.02 Notices.

            (a) All notices, requests, consents, approvals, waivers and other
communications shall be in writing (including, unless the context expressly
otherwise provides, by facsimile transmission, provided that any matter
transmitted by the Company by facsimile (i) shall be immediately confirmed by a
telephone call to the recipient at the number specified on the signature page
hereto, and (ii) shall be followed promptly by delivery of a hard copy original

<PAGE>   13

thereof) and mailed, faxed or delivered, to the address or facsimile number
specified for notices on the signature page hereto; or, as directed to the
Company or the Lender, to such other address as shall be designated by such
party in a written notice to the other party, and as directed to any other
party, at such other address as shall be designated by such party in a written
notice to the other party.

            (b) All such notices, requests and communications shall, when
transmitted by overnight delivery, or faxed, be effective when delivered for
overnight (next-day) delivery, or transmitted in legible form by facsimile
machine, respectively, or if mailed, upon the third Business Day after the date
deposited into the U.S. mail, or if delivered, upon delivery.

        6.03 No Waiver; Cumulative Remedies. No failure to exercise and no delay
in exercising, on the part of the Lender, any right, remedy, power or privilege
hereunder, shall operate as a waiver thereof; nor shall any single or partial
exercise of any right, remedy, power or privilege hereunder preclude any other
or further exercise thereof or the exercise of any other right, remedy, power or
privilege.

        6.04 Company Indemnification. The Company shall indemnify, defend and
hold Lender, each of its Affiliates, and each of its respective officers,
directors, employees, counsel, agents and attorneys-in-fact (each, an
"Indemnified Person") harmless from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
charges, expenses and disbursements (including Attorney Costs) of any kind or
nature whatsoever which may at any time (including at any time following
repayment of the Loan be imposed on, incurred by or asserted against any such
Person in any way relating to or arising out of this Agreement or any document
contemplated by or referred to herein, or the transactions contemplated hereby,
or any action taken or omitted by any such Person under or in connection with
any of the foregoing, including with respect to any investigation, litigation or
proceeding (including any Insolvency Proceeding or appellate proceeding) related
to or arising out of this Agreement or the Loan or the use of the proceeds
thereof, whether or not any Indemnified Person is a party thereto (all the
foregoing, collectively, the "Indemnified Liabilities"); provided, that the
Company shall have no obligation hereunder to any Indemnified Person with
respect to Indemnified Liabilities resulting solely from the gross negligence or
willful misconduct of such Indemnified Person. The agreements in this Section
shall survive payment of all other Obligations.

        6.05 Successors and Assigns. The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns, except that the Company may not assign or transfer any
of its rights or obligations under this Agreement without the prior written
consent of the Lender.

        6.06 Counterparts. This Agreement may be executed in any number of
separate counterparts, each of which, when so executed, shall be deemed an
original, and all of said counterparts taken together shall be deemed to
constitute but one and the same instrument.

        6.07 Severability. The illegality or unenforceability of any provision
of this Agreement or any instrument or agreement required hereunder shall not in
any way affect or impair the legality or enforceability of the remaining
provisions of this Agreement or any instrument or agreement required hereunder.

<PAGE>   14

        6.08 No Third Parties Benefited. This Agreement is made and entered into
for the sole protection and legal benefit of the Company, the Lender, the
Lender's Affiliates, and their permitted successors and assigns, and no other
Person shall be a direct or indirect legal beneficiary of, or have any direct or
indirect cause of action or claim in connection with, this Agreement or any of
the other Loan Documents.

        6.09 Governing Law and Jurisdiction. THIS AGREEMENT SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF WASHINGTON.

ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF WASHINGTON OR OF THE
UNITED STATES FOR THE WESTERN DISTRICT OF WASHINGTON.

        6.10 Entire Agreement. This Agreement, together with the other Loan
Documents, embodies the entire agreement and understanding among the Company and
the Lender and supersedes all prior or contemporaneous agreements and
understandings of such Persons, verbal or written, relating to the subject
matter hereof and thereof.

                  [Remainder of page intentionally left blank.]

        IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and delivered in Kirkland, Washington by their proper and duly
authorized officers as of the day and year first above written.

NEW SATCO HOLDINGS, INC.                  TELEDESIC LLC

                                          BY: TELEDESIC CORPORATION,
                                          MANAGING MEMBER

By:
    ------------------------------
Its:                                      By:
    ------------------------------            -----------------------------
Address:                                  Its:
         -------------------------            -----------------------------
                                          Address:
                                                  -------------------------

----------------------------------        ---------------------------------

----------------------------------        ---------------------------------
Phone:
      ----------------------------        ---------------------------------
Fax:                                      Phone:
    ------------------------------              ---------------------------
                                          Fax:
                                              -----------------------------

<PAGE>   15

                                    EXHIBIT A

NEW SATCO HOLDINGS, INC.

COMPLIANCE CERTIFICATE

                                            Financial Statement

                                            Date: _____________ , 2000.

        Reference is made to that certain Credit Agreement dated as of , 2000
(as extended, renewed, amended or restated from time to time, the "Credit
Agreement") among NEW SATCO HOLDINGS, INC. and TELEDESIC LLC ("Lender"). Unless
otherwise defined herein, capitalized terms used herein have the respective
meanings assigned to them in the Credit Agreement.

        The undersigned Responsible Officer of _____________, hereby certifies
as of the date hereof that he/she is the _______________ of the Company, and
that, as such, he/she is authorized to execute and deliver this Certificate
to the Lender and that:

        [Use the following paragraph if this Certificate is delivered in
connection with the financial statements required by subsection [4.01(a)] of the
Credit Agreement.]

1. Attached as Schedule 1 hereto are (a) a true and correct copy of the audited
consolidated balance sheet of the Company and its consolidated Subsidiaries as
at the end of the fiscal year ended ________________, 2000, and (b) the related
consolidated statements of income or operations, shareholders' equity and cash
flows for such fiscal year, setting forth in each case in comparative form the
figures for the previous fiscal year, and accompanied by the opinion of Arthur
Andersen LLP the "Independent Auditor") which report states that such
consolidated financial statements present fairly the financial position of the
Company and its consolidated Subsidiaries for the periods indicated in
conformity with GAAP applied on a basis consistent with prior years.

        or

[Use the following paragraph if this Certificate is delivered in connection with
the financial statements required by subsection [4.01(b)] of the Credit
Agreement.]

        1. Attached as Schedule 1 hereto are (a) a true and correct copy of the
unaudited consolidated balance sheet of the Company and its consolidated
Subsidiaries as of the end of the fiscal quarter ended ______________________,
2000 and (b) the related unaudited consolidated statements of income,
shareholders' equity, retained earnings, and cash flows for the period
commencing on the first day and ending on the last day of such quarter, setting
forth in each

<PAGE>   16

case in comparative form the figures for the previous year, and certified by a
Responsible Officer that such financial statements were prepared in accordance
with GAAP (subject only to ordinary, good faith year-end audit adjustments) and
present fairly in all material respects, the financial position and the results
of operations of the Company and its consolidated Subsidiaries.

        or

[Use the following paragraph if this Certificate is delivered in connection with
the financial statements required by subsection [4.01(c)] of the Credit
Agreement.]

        1. Attached as Schedule 1 hereto are (a) a true and correct copy of the
unaudited consolidated balance sheet of the Company and its consolidated
Subsidiaries as of the end of the fiscal year ended ____________________, 2000
and (b) the related consolidated statements of income, shareholders' equity, and
cash flows for such fiscal year, and certified by a Responsible Officer that
such financial statements fairly present, in all material respects, the
financial position and results of operations of the Company and its consolidated
Subsidiaries and that such financial statements were developed and used in
connection with the preparation of the financial statements referred to in
subsection 4.01(a) of the Credit Agreement.

        2. The undersigned has reviewed and is familiar with the terms of the
Credit Agreement and has made, or has caused to be made under his/her
supervision, a detailed review of the transactions and conditions (financial or
otherwise) of the Company during the accounting period covered by the attached
financial statements.

        3. To the best of the undersigned's knowledge, the Company, during such
period, has observed, performed or satisfied all of its covenants and other
agreements, and satisfied every condition in the Credit Agreement to be
observed, performed or satisfied by the Company, and the undersigned has no
knowledge of any Default or Event of Default.

        4. The following financial covenant analyses and information set forth
on Schedule 2 attached hereto are true and accurate on and as of the date of
this Certificate.

        IN WITNESS WHEREOF, the undersigned has executed this Certificate as
of _____________________ , 2000.

                                           NEW SATCO HOLDINGS, INC.

                                           By:
                                              ----------------------------------
                                           Its:
                                               ---------------------------------

<PAGE>   17

                                    EXHIBIT B

                            STOCK PURCHASE AGREEMENT<PAGE>   1
                                                                    EXHIBIT 10.5

                           EDEN BIOSCIENCE CORPORATION

                        2000 EMPLOYEE STOCK PURCHASE PLAN

                               SECTION 1. PURPOSE

         The purposes of the Eden Bioscience Corporation 2000 Employee Stock
Purchase Plan (the "Plan") are (a) to assist employees of Eden Bioscience
Corporation, a Washington corporation (the "Company"), and its designated
subsidiaries in acquiring a stock ownership interest in the Company pursuant to
a plan that is intended to qualify as an "employee stock purchase plan" under
Section 423 of the Internal Revenue Code of 1986, as amended, and (b) to
encourage employees to remain in the employ of the Company and its subsidiaries.

                             SECTION 2. DEFINITIONS

         For purposes of the Plan, the following terms shall be defined as set
forth below:

         "ADDITIONAL SHARES" has the meaning set forth in Section 6.

         "BOARD" means the Board of Directors of the Company.

         "CODE" means the Internal Revenue Code of 1986, as amended from time to
time.

         "COMMITTEE" means the Company's Compensation Committee or any other
Board committee appointed by the Board to administer the Plan.

         "COMMON STOCK" means the common stock, par value $0.0025 per share, of
the Company.

         "COMPANY" means Eden Bioscience Corporation, a Washington corporation.

         "CORPORATE TRANSACTION" means either of the following events:

         (a) Consummation of any merger or consolidation of the Company with or
into another corporation or

         (b) Consummation of any sale, lease, exchange or other transfer in one
transaction or a series of related transactions of all or substantially all the
Company's outstanding securities or all or substantially all the Company's
assets;

provided, however, that a Corporate Transaction shall not include (i) a merger
of the Company in which the holders of shares of Common Stock immediately prior
to the merger hold at least a majority of the shares of Common Stock in a
surviving corporation, a successor corporation or its parent corporation, as
applicable, immediately after the merger; (ii) a mere reincorporation of the
Company; (iii) a transaction undertaken for the sole purpose
<PAGE>   2
of creating a holding company; or (iv) a transfer of the Company's assets to a
majority-owned subsidiary corporation of the Company.

         "DESIGNATED SUBSIDIARY" has the meaning set forth under the definition
of "Eligible Employee" in this Section 2.

         "ELIGIBLE COMPENSATION" means all base straight time gross earnings and
does not include overtime, cash bonuses, commissions, severance pay, hiring and
relocation bonuses, pay in lieu of vacations, sick leave, gain from stock option
exercises or any other special payments.

         "ELIGIBLE EMPLOYEE" means any employee of the Company or a domestic
Subsidiary Corporation or any other Subsidiary Corporation designated by the
Board or the Committee (each, a "Designated Subsidiary"), who is in the employ
of the Company (or any Designated Subsidiary) on one or more Offering Dates and
who meets the following criteria:

         (a) the employee does not, immediately after the Option is granted, own
stock (as defined by the Code) possessing 5% or more of the total combined
voting power or value of all classes of stock of the Company or of a Parent
Corporation or Subsidiary Corporation of the Company;

         (b) the employee's customary employment is for 20 hours or more per
week; provided, however, that the Plan Administrator may decrease this minimum
hours requirement for a future Offering;

         (c) if specified by the Plan Administrator for a future Offering, the
employee customarily works a minimum of five months per year or any lesser
number of months established by the Plan Administrator; and

         (d) if specified by the Plan Administrator for a future Offering, the
employee has been employed for a certain minimum period of time as of an
Offering Date; provided, however, that any such minimum employment period may
not exceed two years.

If the Company permits any employee of a Designated Subsidiary to participate in
the Plan, then all employees of that Designated Subsidiary who meet the
requirements of this paragraph shall also be considered Eligible Employees.

         "ENROLLMENT PERIOD" has the meaning set forth in Section 7.1.

         "ESPP BROKER" has the meaning set forth in Section 10.1.

         "FAIR MARKET VALUE" shall be as established in good faith by the Plan
Administrator or (a) if the Common Stock is listed on the Nasdaq National
Market, the closing sales price for the Common Stock as reported by the Nasdaq
National Market on the Offering Date or the Purchase Date, as applicable, unless
the Plan Administrator determines otherwise for a future Offering or (b) if the
Common Stock is listed on the New York Stock Exchange or the

                                      -2-
<PAGE>   3
American Stock Exchange, the closing sales price for the Common Stock as such
price is officially quoted in the composite tape of transactions on such
exchange on the Offering Date or the Purchase Date, as applicable, unless the
Plan Administrator determines otherwise for a future Offering; provided,
however, that for the first Offering Date under the Plan that occurs on the IPO
Date, Fair Market Value shall be equal to the Common Stock's initial public
offering price as set forth in Section 6(a). If there is no such reported price
for the Common Stock for the date in question, then such price on the last
preceding date for which such price exists shall be determinative of Fair Market
Value.

         "IPO DATE" means the day on which shares of Common Stock are first
offered to the public in an underwritten initial public offering of the Common
Stock pursuant to a registration statement filed with and declared effective by
the Securities and Exchange Commission (such day being the first trading day for
the Common Stock on the Nasdaq National Market, the New York Stock Exchange or
other applicable trading market).

         "OFFERING" has the meaning set forth in Section 5.1.

         "OFFERING DATE" means the first day of an Offering.

         "OPTION" means an option granted under the Plan to an Eligible Employee
to purchase shares of Common Stock.

         "PARENT CORPORATION" means any corporation, other than the Company, in
an unbroken chain of corporations ending with the Company, if, at the time of
the granting of the Option, each of the corporations, other than the Company,
owns stock possessing 50% or more of the total combined voting power of all
classes of stock in one of the other corporations in such chain.

         "PARTICIPANT" means any Eligible Employee who has elected to
participate in an Offering in accordance with the procedures set forth in
Section 7 and who has not withdrawn from the Plan or whose participation in the
Plan is not otherwise terminated.

         "PLAN" means the Eden Bioscience Corporation 2000 Employee Stock
Purchase Plan.

         "PLAN ADMINISTRATOR" has the meaning set forth in Section 3.1.

         "PURCHASE DATE" means the last day of each Purchase Period.

         "PURCHASE PERIOD" has the meaning set forth in Section 5.2.

         "PURCHASE PRICE" has the meaning set forth in Section 6.

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

         "SUBSCRIPTION" has the meaning set forth in Section 7.1.

                                      -3-
<PAGE>   4
         "SUBSIDIARY CORPORATION" means any corporation, other than the Company,
in an 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% or more of the
total combined voting power of all classes of stock in one of the other
corporations in such chain.

                            SECTION 3. ADMINISTRATION

3.1 PLAN ADMINISTRATOR

         The Plan shall be administered by the Board and/or the Committee or, if
and to the extent the Board or the Committee designates an executive officer of
the Company to administer the Plan, by such executive officer (each, the "Plan
Administrator"). Any decisions made by the Plan Administrator shall be
applicable equally to all Eligible Employees.

3.2 ADMINISTRATION AND INTERPRETATION BY THE PLAN ADMINISTRATOR

         Subject to the provisions of the Plan, the Plan Administrator shall
have the authority, in its sole discretion, to determine all matters relating to
Options granted under the Plan, including all terms, conditions, restrictions
and limitations of Options; provided, however, that all Participants granted
Options pursuant to the Plan shall have the same rights and privileges within
the meaning of Code Section 423. The Plan Administrator shall also have
exclusive authority to interpret the Plan and may from time to time adopt, and
change, rules and regulations of general application for the Plan's
administration. The Plan Administrator's interpretation of the Plan and its
rules and regulations, and all actions taken and determinations made by the Plan
Administrator pursuant to the Plan, unless reserved to the Board or the
Committee, shall be conclusive and binding on all parties involved or affected.
The Plan Administrator may delegate administrative duties to such of the
Company's other officers or employees as the Plan Administrator so determines.

                        SECTION 4. STOCK SUBJECT TO PLAN

         Subject to adjustment from time to time as provided in Section 20.1,
the maximum number of shares of Common Stock that shall be available for
issuance under the Plan shall be:

         (a) 500,000 shares, plus

         (b) an annual increase to be added as of the first day of the Company's
fiscal year beginning in 2002 equal to the least of (i) 250,000 shares and (ii)
1% of the outstanding shares of Common Stock of the Company as of the end of the
Company's immediately preceding fiscal year on a fully diluted basis (assuming
exercise of all outstanding options and warrants and conversion of all
outstanding convertible preferred stock) and (iii) a lesser amount determined by
the Board; provided, however, that any shares from any increases in previous
years that are not actually issued shall be added to the aggregate number of
shares available for issuance under the Plan.

                                      -4-
<PAGE>   5
         Shares issued under the Plan shall be drawn from authorized and
unissued shares or shares subsequently acquired by the Company.

                            SECTION 5. OFFERING DATES

5.1 OFFERINGS

         (a) Except as otherwise set forth below, the Plan shall be implemented
by a series of Offerings that each last twenty-four months (each, an
"Offering"). Offerings shall commence on May 1st and November 1st of each year
and end on the second April 30th and October 31st, respectively, occurring
thereafter; provided, however, that the first Offering shall begin on the IPO
Date and shall end on October 31, 2002.

         (b) Notwithstanding the foregoing, the Plan Administrator may establish
(i) a different term for one or more future Offerings and (ii) different
commencing and ending dates for such future Offerings; provided, however, that
an Offering may not exceed five years; and provided, further, that if the
Purchase Price may be less than 85% of the Fair Market Value of the Common Stock
on the Purchase Date, the Offering may not exceed 27 months.

         (c) In the event the first or the last day of an Offering is not a
regular business day, then the first day of the Offering shall be deemed to be
the next regular business day and the last day of the Offering shall be deemed
to be the last preceding regular business day.

5.2 PURCHASE PERIODS

         (a) Each Offering shall consist of four consecutive purchase periods of
six months' duration (each, a "Purchase Period"). The last day of each Purchase
Period shall be the Purchase Date for such Purchase Period. Except as otherwise
set forth below, a Purchase Period shall commence on May 1st and November 1st of
each year and end on the next October 31st and April 30th, respectively,
occurring thereafter; provided, however, that the Purchase Period for the first
Offering shall commence on the IPO Date and shall end on April 30, 2001.

         (b) Notwithstanding the foregoing, the Plan Administrator may establish
for a future Offering (i) a different term for one or more future Purchase
Periods and (ii) different commencing and ending dates for any such Purchase
Period.

         (c) In the event the first or last day of a Purchase Period is not a
regular business day, then the first day of the Purchase Period shall be deemed
to be the next regular business day and the last day of the Purchase Period
shall be deemed to be the last preceding regular business day.

                                      -5-
<PAGE>   6
5.3 GOVERNMENTAL APPROVAL; SHAREHOLDER APPROVAL

         Notwithstanding any other provision of the Plan to the contrary, an
Option granted pursuant to the Plan shall be subject to (a) obtaining all
necessary governmental approvals and qualifications for the Plan and (b)
obtaining shareholder approval of the Plan.

                            SECTION 6. PURCHASE PRICE

         (a) The purchase price (the "Purchase Price") at which Common Stock may
be acquired in an Offering pursuant to the exercise of all or any portion of an
Option shall be 85% of the lesser of (i) the Fair Market Value of the Common
Stock on the Offering Date of such Offering and (ii) the Fair Market Value of
the Common Stock on the Purchase Date; provided, however, that the Purchase
Price for the first Offering that begins on the IPO Date shall be the lesser of
(A) 100% of the initial public offering price per share of Common Stock, before
underwriters' discounts or concessions, set forth in that certain underwriting
agreement between the Company and the representatives of the underwriters and
executed in connection with the Company's initial public offering of the Common
Stock and (B) 85% of the Fair Market Value of the Common Stock on the Purchase
Date.

         (b) Notwithstanding the foregoing, if an increase in the number of
shares authorized for issuance under the Plan (other than an annual increase
pursuant to Section 4) is approved and all or a portion of such additional
shares are to be issued during one or more Offerings that are underway at the
time of shareholder approval of such increase (the "Additional Shares"), then,
if as of the date of such shareholder approval, the Fair Market Value of a share
of Common Stock is higher than the Fair Market Value on the Offering Date for
any such Offering, the Purchase Price for the Additional Shares shall be 85% of
the lesser of (i) the Common Stock's Fair Market Value on the date of such
shareholder approval and (ii) the Fair Market Value of the Common Stock on the
Purchase Date.

                      SECTION 7. PARTICIPATION IN THE PLAN

7.1 INITIAL PARTICIPATION

         Except for the first Offering that begins on the IPO Date, an Eligible
Employee shall become a Participant on the first Offering Date after satisfying
the eligibility requirements and delivering to the Plan Administrator during the
enrollment period established by the Plan Administrator (the "Enrollment
Period") a subscription (the "Subscription"):

         (a) indicating the Eligible Employee's election to participate in the
Plan;

         (b) authorizing payroll deductions and stating the amount to be
deducted regularly from the Participant's pay; and

         (c) authorizing the purchase of Common Stock for the Participant in
each Purchase Period.

                                      -6-
<PAGE>   7
         An Eligible Employee who does not deliver a Subscription as provided
above during the Enrollment Period shall not participate in the Plan for that
Offering or for any subsequent Offering unless such Eligible Employee
subsequently enrolls in the Plan by filing a Subscription with the Company
during the Enrollment Period for such subsequent Offering. The Company may, from
time to time, change the Enrollment Period for a future Offering as deemed
advisable by the Plan Administrator, in its sole discretion, for the proper
administration of the Plan.

         An employee who becomes eligible to participate in the Plan after an
Offering has commenced shall not be eligible to participate in such Offering but
may participate in any subsequent Offering, provided that such employee is still
an Eligible Employee as of the commencement of any such subsequent Offering.
Eligible Employees may not participate in more than one Offering at a time.

7.2 FIRST OFFERING UNDER THE PLAN

         For the first Offering that begins on the IPO Date, all Eligible
Employees shall automatically be enrolled in the Plan in an amount equal to 15%
of such Eligible Employees' Eligible Compensation. For the first Purchase Period
under the Plan, (a) the 15% amount shall be determined only with respect to the
number of full payroll periods within such Purchase Period and (b) the
Participant shall be obligated to pay such amount to the Company by cash or
certified, cashier's or personal check (if a personal check is acceptable to the
Company) prior to the first Purchase Date under the Plan. For subsequent
Purchase Periods in the first Offering, Participants' purchases of shares of
Common Stock shall be made with accrued payroll deductions, equal to 15% of such
Participants' Eligible Compensation, at the times and in the manner provided in
the Plan. During a specified period following the first Offering Date,
Participants shall have the right to change certain terms of their participation
in the Plan, including reducing their level of participation in the Plan and
authorizing payment through payroll deductions, subject to such terms as may be
required by the Company.

7.3 CONTINUED PARTICIPATION

         A Participant shall automatically participate in the next Offering
until such time as such Participant withdraws from the Plan pursuant to Section
11.3 or terminates employment as provided in Section 13.

               SECTION 8. LIMITATIONS ON RIGHT TO PURCHASE SHARES

8.1 NUMBER OF SHARES PURCHASED

         (a) No Participant shall be entitled to purchase Common Stock under the
Plan (or any other employee stock purchase plan that is intended to meet the
requirements of Code Section 423 sponsored by the Company, a Parent Corporation
or a Subsidiary Corporation) with a Fair Market Value exceeding $25,000 (such
value determined as of the Offering Date for each Offering or such other limit
as may be imposed by the Code) in any calendar year in

                                      -7-
<PAGE>   8
which a Participant participates in the Plan (or any other employee stock
purchase plan described in this Section 8.1).

         (b) No Participant shall be entitled to purchase more than 1,000 shares
of Common Stock (or such other number as the Board or the Committee shall
specify for a future Offering) under the Plan in any single Purchase Period. In
addition, no more than an aggregate of 125,000 shares of Common Stock (or such
other number as the Board or the Committee shall specify for a future Offering)
may be purchased by all Participants under the Plan in any single Purchase
Period.

         (c) For a future Offering, the Board or the Committee may specify a
maximum number of shares that may be purchased by any Participant, as well as a
maximum aggregate number of shares that may be purchased by all Participants,
pursuant to such Offering.

8.2 PRO RATA ALLOCATION

         In the event the number of shares of Common Stock that might be
purchased by all Participants exceeds the number of shares of Common Stock
available in the Plan, in a Purchase Period or in an Offering, the Plan
Administrator shall make a pro rata allocation of the remaining shares of Common
Stock in as uniform a manner as shall be practicable and as the Plan
Administrator shall determine to be equitable. Fractional shares may not be
issued under the Plan unless the Plan Administrator determines otherwise for a
future Offering.

                      SECTION 9. PAYMENT OF PURCHASE PRICE

9.1 GENERAL RULES

         Subject to Section 9.11, Common Stock that is acquired pursuant to the
exercise of all or any portion of an Option may be paid for only by means of
payroll deductions from the Participant's Eligible Compensation. Except as set
forth in this Section 9, the amount of compensation to be withheld from a
Participant's Eligible Compensation during each pay period shall be determined
by the Participant's Subscription.

9.2 PERCENT WITHHELD

         The amount of payroll withholding for each Participant for purchases
pursuant to the Plan during any pay period shall be at least 1% but shall not
exceed 15% of the Participant's Eligible Compensation for such pay period (or
such other higher percentage as the Plan Administrator may establish from time
to time for a future Offering). Amounts shall be withheld in whole percentages
only.

9.3 PAYROLL DEDUCTIONS

         Payroll deductions shall commence on the first payday following the
Offering Date and shall continue through the last payday of the Offering unless
sooner altered or terminated as provided in the Plan.

                                      -8-
<PAGE>   9
9.4 MEMORANDUM ACCOUNTS

         Individual accounts shall be maintained for each Participant for
memorandum purposes only. All payroll deductions from a Participant's
compensation shall be credited to such account but shall be deposited with the
general funds of the Company. All payroll deductions received or held by the
Company may be used by the Company for any corporate purpose.

9.5 NO INTEREST

         No interest shall be paid on payroll deductions received or held by the
Company.

9.6 ACQUISITION OF COMMON STOCK

         On each Purchase Date of an Offering, each Participant shall
automatically acquire, pursuant to the exercise of the Participant's Option, the
number of shares of Common Stock arrived at by dividing the total amount of the
Participant's accumulated payroll deductions for the Purchase Period by the
Purchase Price; provided, however, that the number of shares of Common Stock
purchased by the Participant shall not exceed the number of whole shares of
Common Stock so determined, unless the Plan Administrator has determined for a
future Offering that fractional shares may be issued under the Plan; and
provided, further, that the number of shares of Common Stock purchased by the
Participant shall not exceed the number of shares for which Options have been
granted to the Participant pursuant to Section 8.1.

9.7 REFUND OF EXCESS AMOUNTS

         Any cash balance remaining in the Participant's account at the
termination of a Purchase Period that is not sufficient to purchase a whole
share of Common Stock shall be applied to the purchase of Common Stock in the
new Purchase Period, provided the Participant participates in the next Purchase
Period and the purchase complies with Section 8.1. All other amounts remaining
in a Participant's account after a Purchase Date shall be refunded to the
Participant as soon as practical after the Purchase Date without the payment of
any interest.

9.8 WITHHOLDING OBLIGATIONS

         At the time the Option is exercised, in whole or in part, or at the
time some or all the Common Stock is disposed of, the Participant shall make
adequate provision for local, state, federal and foreign withholding obligations
of the Company, if any, that arise upon exercise of the Option or upon
disposition of the Common Stock. The Company may withhold from the Participant's
compensation the amount necessary to meet such withholding obligations.

                                      -9-
<PAGE>   10
9.9 TERMINATION OF PARTICIPATION

         No Common Stock shall be purchased on behalf of a Participant on a
Purchase Date if his or her participation in the Offering or the Plan has
terminated on or before such Purchase Date.

9.10 PROCEDURAL MATTERS

         The Company may, from time to time, establish (a) limitations on the
frequency and/or number of any permitted changes in the amount withheld during
an Offering, as set forth in Section 11.1, (b) an exchange ratio applicable to
amounts withheld in a currency other than U.S. dollars, (c) payroll withholding
in excess of the amount designated by a Participant in order to adjust for
delays or mistakes in the Company's processing of properly completed withholding
elections, and (d) such other limitations or procedures as deemed advisable by
the Company in the Company's sole discretion that are consistent with the Plan
and in accordance with the requirements of Code Section 423.

9.11 LEAVES OF ABSENCE

         During leaves of absence approved by the Company and meeting the
requirements of the applicable treasury regulations promulgated under the Code,
a Participant may elect to continue participation in the Plan by delivering cash
payments to the Company on the Participant's normal paydays equal to the amount
of his or her payroll deduction under the Plan had the Participant not taken a
leave of absence. Currently, the treasury regulations provide that a Participant
may continue participation in the Plan only during the first 90 days of a leave
of absence unless the Participant's reemployment rights are guaranteed by
statute or contract.

                SECTION 10. COMMON STOCK PURCHASED UNDER THE PLAN

10.1 ESPP BROKER

         If the Plan Administrator designates or approves a stock brokerage or
other financial services firm (the "ESPP Broker") to hold shares purchased under
the Plan for the accounts of Participants, the following procedures shall apply.
Promptly following each Purchase Date, the number of shares of Common Stock
purchased by each Participant shall be deposited into an account established in
the Participant's name with the ESPP Broker. Each Participant shall be the
beneficial owner of the Common Stock purchased under the Plan and shall have all
rights of beneficial ownership in such Common Stock. A Participant shall be free
to undertake a disposition of the shares of Common Stock in his or her account
at any time, but, in the absence of such a disposition, the shares of Common
Stock must remain in the Participant's account at the ESPP Broker until the
holding period set forth in Code Section 423 has been satisfied. With respect to
shares of Common Stock for which the holding period set forth above has been
satisfied, the Participant may move those shares of Common Stock to another
brokerage account of the Participant's choosing or request that a stock
certificate be issued and delivered to him or her. Dividends paid in the form of
shares

                                      -10-
<PAGE>   11
of Common Stock with respect to Common Stock in a Participant's account shall be
credited to such account. A Participant who is not subject to payment of U.S.
income taxes may move his or her shares of Common Stock to another brokerage
account of his or her choosing or request that a stock certificate be delivered
to him or her at any time, without regard to the Code Section 423 holding
period.

10.2 NOTICE OF DISPOSITION

         By entering the Plan, each Participant agrees to promptly give the
Company notice of any Common Stock disposed of within the later of one year from
the Purchase Date and two years from the Offering Date for such Common Stock,
showing the number of such shares disposed of and the Purchase Date and Offering
Date for such Common Stock. This notice shall not be required if and so long as
the Company has a designated ESPP Broker.

                 SECTION 11. CHANGES IN WITHHOLDING AMOUNTS AND
                              VOLUNTARY WITHDRAWAL

11.1 CHANGES IN WITHHOLDING AMOUNTS

         (a) Unless the Plan Administrator determines otherwise for a future
Offering, a Participant may elect to increase or decrease the amount to be
withheld from his or her compensation for future Purchase Periods by filing with
the Plan Administrator an amended Subscription; provided, however, that notice
of such election must be delivered to the Plan Administrator at least ten days
prior to such Purchase Period in such form and in accordance with such terms as
the Plan Administrator may establish for an Offering. An amended Subscription
shall remain in effect until the Participant changes such Subscription in
accordance with the terms of the Plan.

         (b) Notwithstanding the foregoing, to the extent necessary to comply
with Code Section 423 and Section 8.1, a Participant's payroll deductions may be
decreased to 0% during any Purchase Period if the aggregate of all payroll
deductions accumulated with respect to one or more Purchase Periods ending
within the same calendar year exceeds $25,000 of Fair Market Value of the Common
Stock determined as of the first day of an Offering ($21,250 to the extent the
Purchase Price may be 85% of the Fair Market Value of the Common Stock on the
Offering Date of the Offering). Payroll deductions shall re-commence at the rate
provided in such Participant's Subscription at the beginning of the first
Purchase Period that is scheduled to end in the following calendar year, unless
the Participant terminates participation in an Offering or the Plan as provided
in Section 11.2 or Section 11.3 or indicates otherwise in an amended
Subscription. Also notwithstanding the foregoing, a Participant's payroll
deductions may be decreased to 0% at such time that the aggregate of all payroll
deductions accumulated with respect to a Purchase Period exceeds the amount
necessary to purchase (i) 1,000 shares of Common Stock in such Purchase Period
(or such other number as the Board or Committee shall specify for a future
Offering) or (ii) the aggregate number of shares of Common Stock available for
purchase by all Participants in any single Purchase Period or Offering as set
forth in Section 8.1. Payroll deductions shall re-commence at the rate provided
in such Participant's Subscription at the beginning of the

                                      -11-
<PAGE>   12
next Purchase Period, provided the Participant continues to participate in the
Plan and such participation complies with Section 8.1.

11.2 WITHDRAWAL FROM AN OFFERING

         A Participant may withdraw from an Offering by completing and
delivering to the Plan Administrator a written notice of withdrawal on a form
provided by the Company for such purpose. Such notice must be delivered prior to
the end of the Purchase Period for which such withdrawal is to be effective.
Unless otherwise indicated by a Participant, withdrawal from an Offering shall
not result in a withdrawal from the Plan or any succeeding Offering therein. A
Participant may not resume participation in the same Offering at any time upon
withdrawal from such Offering.

11.3 WITHDRAWAL FROM THE PLAN

         A Participant may withdraw from the Plan by completing and delivering
to the Plan Administrator a written notice of withdrawal on a form provided by
the Plan Administrator for such purpose. Such notice must be delivered prior to
the end of the Purchase Period for which such withdrawal is to be effective, or
by any other date specified by the Plan Administrator for a future Offering.

11.4 NOTICE OF WITHDRAWAL; EFFECT OF WITHDRAWAL ON PRIOR PURCHASE PERIODS;
     RE-ENROLLMENT IN THE PLAN

         (a) The Company may, from time to time, impose a requirement that any
notice of withdrawal be on file with the Company for a reasonable period prior
to the effectiveness of the Participant's withdrawal.

         (b) If a Participant withdraws from an Offering or the Plan after the
Purchase Date for a Purchase Period, the withdrawal shall not affect Common
Stock acquired by the Participant in any earlier Purchase Periods.

         (c) In the event a Participant voluntarily elects to withdraw from an
Offering, the Participant may not resume participation in the Plan during the
same Offering, but may participate in any subsequent Offering under the Plan by
again satisfying the definition of Eligible Employee. In the event a Participant
voluntarily elects to withdraw from the Plan, the Participant may participate in
any subsequent Offerings under the Plan by again satisfying the definition of
Eligible Employee and re-enrolling in the Plan in accordance with Section 7.

11.5 RETURN OF PAYROLL DEDUCTIONS

         Upon withdrawal from an Offering pursuant to Section 11.2 or from the
Plan pursuant to Section 11.3, the withdrawing Participant's accumulated payroll
deductions that have not been applied to the purchase of Common Stock shall be
returned as soon as practical after the withdrawal, without the payment of any
interest, to the Participant and the Participant's

                                      -12-
<PAGE>   13
interest in the Offering shall terminate. Such accumulated payroll deductions
may not be applied to any other Offering under the Plan.

                        SECTION 12. AUTOMATIC WITHDRAWAL

         If the Fair Market Value of the Common Stock on any Purchase Date of an
Offering is less than the Fair Market Value of the Common Stock on the Offering
Date for such Offering, then every Participant shall automatically (a) be
withdrawn from such Offering at the close of such Purchase Date and after the
acquisition of the shares of Common Stock for such Purchase Period and (b) be
enrolled in the Offering commencing on the first business date subsequent to
such Purchase Period, provided the Participant is eligible to participate in the
Plan and has not elected to terminate participation in the Plan.

                      SECTION 13. TERMINATION OF EMPLOYMENT

         Termination of a Participant's employment with the Company for any
reason, including retirement, death or the failure of a Participant to remain an
Eligible Employee, shall immediately terminate the Participant's participation
in the Plan. The payroll deductions credited to the Participant's account since
the last Purchase Date shall, as soon as practical, be returned to the
Participant or, in the case of a Participant's death, to the Participant's legal
representative or designated beneficiary as provided in Section 14.2, and all
the Participant's rights under the Plan shall terminate. Interest shall not be
paid on sums returned to a Participant pursuant to this Section 13.

                     SECTION 14. RESTRICTIONS ON ASSIGNMENT

14.1 TRANSFERABILITY

         An Option granted under the Plan shall not be transferable and such
Option shall be exercisable during the Participant's lifetime only by the
Participant. The Company will not recognize, and shall be under no duty to
recognize, any assignment or purported assignment by a Participant of the
Participant's interest in the Plan, of his or her Option or of any rights under
his or her Option.

14.2 BENEFICIARY DESIGNATION

         The Plan Administrator may permit a Participant to designate a
beneficiary who is to receive any shares and cash, if any, from the
Participant's account under the Plan in the event the Participant dies after the
Purchase Date for an Offering but prior to delivery to such Participant of such
shares and cash. In addition, the Plan Administrator may permit a Participant to
designate a beneficiary who is to receive any cash from the Participant's
account under the Plan in the event that the Participant dies before the
Purchase Date for an Offering. Such designation may be changed by the
Participant at any time by written notice to the Plan Administrator.

                                      -13-
<PAGE>   14
            SECTION 15. NO RIGHTS AS SHAREHOLDER UNTIL SHARES ISSUED

         With respect to shares of Common Stock subject to an Option, a
Participant shall not be deemed to be a shareholder of the Company, and he or
she shall not have any of the rights or privileges of a shareholder. A
Participant shall have the rights and privileges of a shareholder of the Company
when, but not until, a certificate or its equivalent has been issued to the
Participant for the shares following exercise of the Participant's Option.

    SECTION 16. LIMITATIONS ON SALE OF COMMON STOCK PURCHASED UNDER THE PLAN

         The Plan is intended to provide Common Stock for investment and not for
resale. The Company does not, however, intend to restrict or influence any
Participant in the conduct of his or her own affairs. A Participant, therefore,
may sell Common Stock purchased under the Plan at any time he or she chooses
subject to compliance with Company policies and any applicable federal and state
securities laws. A Participant assumes the risk of any market fluctuations in
the price of the Common Stock.

                SECTION 17. AMENDMENT OR TERMINATION OF THE PLAN

         (a) The Board may amend the Plan in such respects as it shall deem
advisable; provided, however, that, to the extent required for compliance with
Code Section 423 or any applicable law or regulation, shareholder approval will
be required for any amendment that will (i) increase the total number of shares
as to which Options may be granted under the Plan, (ii) modify the class of
employees eligible to receive Options, or (iii) otherwise require shareholder
approval under any applicable law or regulation; and provided further, that
except as provided in this Section 17, no amendment to the Plan shall make any
change in any Option previously granted which adversely affects the rights of
any Participant.

         (b) The Plan shall continue in effect for ten years after the date of
its adoption by the Board. Notwithstanding the foregoing, the Board may at any
time and for any reason terminate or suspend the Plan. During any period of
suspension or upon termination of the Plan, no Options shall be granted.

         (c) Except as provided in Section 20, no such termination of the Plan
may affect Options previously granted, provided that the Plan or an Offering may
be terminated by the Board on a Purchase Date or by the Board's setting a new
Purchase Date with respect to an Offering and a Purchase Period then in progress
if the Board determines that termination of the Plan and/or the Offering is in
the best interests of the Company and the shareholders or if continuation of the
Plan and/or the Offering would cause the Company to incur adverse accounting
charges as a result of a change after the effective date of the Plan in the
generally accepted accounting rules applicable to the Plan.

                                      -14-
<PAGE>   15
                      SECTION 18. NO RIGHTS AS AN EMPLOYEE

         Nothing in the Plan shall be construed to give any person (including
any Eligible Employee or Participant) the right to remain in the employ of the
Company or a Parent Corporation or Subsidiary Corporation or to affect the right
of the Company or a Parent Corporation or Subsidiary Corporation to terminate
the employment of any person (including any Eligible Employee or Participant) at
any time with or without cause.

                       SECTION 19. EFFECT UPON OTHER PLANS

         The adoption of the Plan shall not affect any other compensation or
incentive plans in effect for the Company or any Parent Corporation or
Subsidiary Corporation. Nothing in the Plan shall be construed to limit the
right of the Company, any Parent Corporation or Subsidiary Corporation to (a)
establish any other forms of incentives or compensation for employees of the
Company, a Parent Corporation or Subsidiary Corporation or (b) grant or assume
options otherwise than under the Plan in connection with any proper corporate
purpose, including, but not by way of limitation, the grant or assumption of
options in connection with the acquisition, by purchase, lease, merger,
consolidation or otherwise, of the business, stock or assets of any corporation,
firm or association.

                             SECTION 20. ADJUSTMENTS

20.1 ADJUSTMENT OF SHARES

         In the event that, at any time or from time to time, a stock dividend,
stock split, spin-off, combination or exchange of shares, recapitalization,
merger, consolidation, distribution to shareholders other than a normal cash
dividend, or other change in the Company's corporate or capital structure
results in (a) the outstanding shares, or any securities exchanged therefor or
received in their place, being exchanged for a different number or kind of
securities of the Company or of any other corporation or (b) new, different or
additional securities of the Company or of any other corporation being received
by the holders of shares of Common Stock, then (subject to any required action
by the Company's shareholders), the Board or the Committee, in its sole
discretion, shall make such equitable adjustments as it shall deem appropriate
in the circumstances in (i) the maximum number and kind of shares of Common
Stock subject to the Plan as set forth in Section 4, (ii) the number and kind of
securities that are subject to any outstanding Option and the per share price of
such securities and (iii) the maximum number of shares of Common Stock that may
be purchased by a Participant in a Purchase Period, or by all Participants in a
single Purchase Period. The determination by the Board or the Committee as to
the terms of any of the foregoing adjustments shall be conclusive and binding.
Notwithstanding the foregoing, a merger, asset sale, dissolution or liquidation
of the Company shall not be governed by this Section 20.1 but shall be governed
by Sections 20.2 and 20.3, respectively.

                                      -15-
<PAGE>   16
20.2 DISSOLUTION OR LIQUIDATION OF THE COMPANY

         In the event of the proposed dissolution or liquidation of the Company,
the Offering then in progress shall be shortened by setting a new Purchase Date
and shall terminate immediately prior to the consummation of such proposed
dissolution or liquidation, unless provided otherwise by the Board. The new
Purchase Date shall be a specified date before the date of the Company's
proposed dissolution or liquidation. The Board shall notify each Participant in
writing prior to the new Purchase Date that the Purchase Date for the
Participant's Option has been changed to the new Purchase Date and that the
Participant's Option shall be exercised automatically on the new Purchase Date,
unless prior to such date the Participant has withdrawn from an Offering then in
progress or the Plan as provided in Section 11.

20.3 CORPORATE TRANSACTION

         In the event of a proposed Corporate Transaction, each outstanding
Option shall be assumed or an equivalent option substituted by the successor
corporation or parent thereof (the "Successor Corporation"). In the event that
the Successor Corporation refuses to assume or substitute for the Option, any
Offering then in progress shall be shortened by setting a new Purchase Date. The
new Purchase Date shall be a specified date before the date of the Corporate
Transaction. The Board shall notify each Participant in writing, prior to the
new Purchase Date, that the Purchase Date for the Participant's Option has been
changed to the new Purchase Date and that the Participant's Option shall be
exercised automatically on the new Purchase Date, unless prior to such date the
Participant has withdrawn from an Offering then in progress or the Plan as
provided in Section 11.

20.4 LIMITATIONS

         The grant of Options shall in no way affect the Company's right to
adjust, reclassify, reorganize or otherwise change its capital or business
structure or to merge, consolidate, dissolve, liquidate or sell or transfer all
or any part of its business or assets.

                SECTION 21. REGISTRATION; CERTIFICATES FOR SHARES

          Notwithstanding any other provision of the Plan, the Company shall
have no obligation to issue or deliver any shares of Common Stock under the Plan
or make any other distribution of benefits under the Plan unless such issuance,
delivery or distribution would comply with all applicable laws (including,
without limitation, the requirements of the Securities Act), and the applicable
requirements of any securities exchange or similar entity.

         The Company shall be under no obligation to any Participant to register
for offering or resale or to qualify for exemption under the Securities Act, or
to register or qualify under state securities laws, any shares of Common Stock,
security or interest in a security paid or issued under, or created by, the
Plan, or to continue in effect any such registrations or qualifications if made.
The Company may issue certificates for shares with such legends and subject to
such restrictions on transfer and stop-transfer instructions as counsel for the

                                      -16-
<PAGE>   17
Company deems necessary or desirable for compliance by the Company with federal
and state securities laws.

         To the extent that the Plan or any instrument evidencing shares of
Common Stock provides for issuance of stock certificates to reflect the issuance
of such shares, the issuance may be effected on a noncertificated basis, to the
extent not prohibited by applicable law or the applicable rules of any stock
exchange.

                           SECTION 22. EFFECTIVE DATE

         The Plan will become effective on the IPO Date, so long as it is
approved by the Company's shareholders as of such date.

         Adopted by the Board on July 6, 2000 and approved by the shareholders
on August 9, 2000.

                                      -17-
<PAGE>   18
                    PLAN ADOPTION AND AMENDMENTS/ADJUSTMENTS
                                  SUMMARY PAGE

<TABLE>
<CAPTION>
                                                SECTION/EFFECT OF          DATE OF SHAREHOLDER
DATE OF BOARD ACTION   ACTION                   AMENDMENT                  APPROVAL
<S>                    <C>                      <C>                        <C>
July 6, 2000           Initial Plan Adoption                               August 9, 2000
September 19, 2000     Amendment                Added Section 7.2,         N/A
                                                providing for automatic
                                                enrollment of all
                                                Eligible Employees in
                                                the first Offering
                                                under the Plan
</TABLE>

                                       R-1

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