Document:

Exhibit 10.15

EMPLOYMENT AGREEMENT

BETWEEN

IAN LEGROW

AND

COREL CORPORATION

MADE AS OF APRIL 17, 2002

EMPLOYMENT AGREEMENT

THIS AGREEMENT made as of April 17, 2002;

B E T W E E N:                            

COREL CORPORATION 

(the "Corporation")

OF THE FIRST PART,

- and -

Ian Legrow 

(the "Executive")

OF THE SECOND PART.

WHEREAS the Executive has been employed with the Corporation since May 30, 1994  in a
variety of capacities, having been appointed as Executive Vice President Creative Products on October
10, 2000 ; 

AND Whereas the Executive and the Corporation wish to formalize the terms and conditions of
the Executive's employment as Executive Vice President - Product Strategy with the Corporation;

THIS AGREEMENT WITNESSES that in consideration of the covenants and agreements
contained in this Agreement, the parties agree as follows:

ARTICLE 1 - DEFINITIONS

1.1    Change of Control

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

                 (a)  the Corporation is merged, or consolidated or reorganized into or with another
corporation or other legal person in any transaction or series of related transactions
(other than a transaction to which only the Corporation and one or more of its
subsidiaries are parties) and as a result of such merger, consolidation or reorganization,
less than 51% of the combined voting power of the outstanding voting securities of the
surviving entity or person immediately after such transaction or series of related
transactions, are held in the aggregate by persons or entities who were holders of voting
securities of the Corporation immediately prior to such transaction;

                 (b)  the Corporation sells all or substantially all of its assets to any other
corporation or
other legal person in any sale or series of related sales (other than a transaction to
which only the Corporation and one or more of its subsidiaries are parties);

                 (c) the Corporation's Board of Directors approves the distribution to the
Corporation's
shareholders of all or substantially all of the Corporation's net assets, or the
Corporation's Board of Directors, shareholders or a court of competent jurisdiction
approves the dissolution or liquidation of the Corporation; or

                 (d) any other transactions or series of related transactions occur which have
substantially the same effect as the transactions specified in any of the preceding clauses
(other than transactions to which only the Corporation and one or more of its
subsidiaries are parties).

1.2   Confidential Information

"Confidential Information" means confidential information of the Corporation,
including trade secrets, customer lists and other confidential information concerning the business and
affairs of the Corporation.

1.3   Date of Termination

"Date of Termination" means the date on which a proper Notice of Termination is
given to or by the Executive.

1.4   Good Reason

"Good Reason" means:

(a)    the Corporation and its subsidiaries, taken as a whole, cease to operate as a
going concern;

(b)    any action by the Corporation without the Executive's consent that constitutes
constructive termination of the Executive's employment with the Corporation,
including (i) any material reduction in the Executive's titles, reporting
relationships, powers, authority, duties or responsibilities; (ii) any reduction in
the Executive's base salary; or (iii) any material reduction in the value of the
Executive's employee group insurance or health benefit plans and programmes;

(c)    the Corporation fails to pay, when due, any amount payable by it to the
Executive pursuant to this Agreement;

(d)    any term of the Executive's employment with the Corporation is changed
without the Executive's consent in any proceedings under any bankruptcy,
reorganization, arrangement, dissolution, winding-up or liquidation statute or
law of any jurisdiction, including the Companies' Creditors Arrangement Act
(Canada).

  Notwithstanding the foregoing or any other term of this Agreement, the
appointment of an EVP, Product Development or similar executive and a
change in titles, reporting relationships, powers, authority, duties or
responsibilities for Executive resulting from an altered role for Executive
reporting to said EVP, Product Development or similar executive, along with
any other required change to the terms of this Agreement by reason of said
appointment, shall not constitute a "material reduction" or "Good Reason"
under this Agreement nor shall such changes otherwise constitute either a
constructive dismissal or a repudiation of this Agreement.

1.5   Permanent Disability

"Permanent Disability" means the Executive's absence from his duties with the
Corporation on a full time basis for more than six (6) consecutive months as a result of the Executive's
incapacity due to physical or mental illness.

1.6   Severance Period

"Severance Period" means a period of 12 months from the Date of Termination.

1.7   Subsidiary

"Subsidiary" has the meaning ascribed to it in the Business Corporations Act.

ARTICLE 2 - EMPLOYMENT

2.1   Employment

Subject to the terms and conditions of this Agreement, the Corporation will employ the
Executive in the office of Executive Vice President - Product Strategy reporting to the Chief Executive
Officer.  Without limiting the Executive's right to terminate this Agreement for Good Reason, the
Corporation shall have the unilateral right to change the Executive's offices, titles, reporting
relationships, powers, authority, duties or responsibilities.

2.2   Review

The Executive and Corporation agree that they will review the terms and conditions of
the Executive's employment every three (3) years and recommend changes, if any, to this Agreement,
subject to Section 7.9.

2.3   Place of Employment

The Executive will perform his work and services for the Corporation primarily at its
head office in Ottawa.  The Executive acknowledges that the Board of Directors has the discretion to
change the location of the head office of the Corporation, in which case the Executive will be required
to relocate.  In the event that the Executive agrees to relocate, expenses incurred by the Executive and
his family will be reimbursed in accordance with the Corporation's relocation policy in effect at that time
.. The Executive acknowledges that the performance of Executive's duties and functions will necessitate
frequent travel to other places.

ARTICLE 3 - REMUNERATION
AND BENEFITS

3.1   Base Salary

The Corporation will pay the Executive an annual base salary of   Two Hundred and
Four Thousand Dollars ($204,000.00 CDN) .   The Executive's base salary will be reviewed annually
following completion of the Corporation's financial year ending November 30 at the time of the review
of compensation for the other members of the Executive Management Team or other senior
management employees of the Corporation.

3.2   Benefits

The Executive will be entitled to participate in all health, disability, death, pension and
other employee benefit plans and programmes of the Corporation in effect from time to time in
accordance with their terms. 

3.3   Incentive Plans

The Corporation may pay the Executive an annual bonus if the Corporation achieves
certain revenue, pre-tax operating income and/or development or other targets to be established each
year in advance by the Chief Executive Officer and the Board of Directors.  If one hundred percent
(100%) of the Corporate objectives and personal objectives set for a given year are attained, the
Executive shall be entitled to one hundred percent (100%) of the agreed upon bonus.  The amount of
bonus, if any, to which the Executive will be entitled for attaining a lesser percentage of objectives will
be determined by the Chief Executive Officer and the Board of Directors.

3.4   Stock Option Plans

The Executive will be eligible for a grant of options, at the discretion of the Board of
Directors, in accordance with the policy and practice in place for other senior executives of the
Corporation and in accordance with the terms and conditions of such grant and the stock option plan in
place for senior executives of the Corporation.

3.5   Vacation

The Executive will be entitled to paid vacation each year in accordance with the policy
and practice in place for other senior executives of the Corporation.  The Executive will take vacation
at a time or times reasonable for each of the Corporation and the Executive in the circumstances. 

3.6   Expenses

The Corporation will reimburse the Executive for all reasonable out-of-pocket
expenses properly incurred by Executive in the course of employment with the Corporation.  The
Executive will provide the Corporation with appropriate statements and receipts verifying such
expenses.

3.7   Parking

The Corporation will provide a parking space for the Executive at his or her primary
place of business.

3.8   Supplementary Pension Benefit

The Executive will be eligible for enrolment in the pension plan, if any, available to other
senior executives of the Corporation and on the same terms and conditions applicable to other senior
executives of the Corporation, subject to the condition that the Executive's compensation, as set out in
Section 3.1, was determined on the assumption that any pension contributions made on behalf of the
Executive will not result in contribution in excess of current RRSP contribution limits.  The Executive
acknowledges that the Corporation is currently reviewing the feasibility of a corporate pension plan and
no decision has been made, as of this date, on the availability of a plan for company employees and
executives. 

ARTICLE 4 -  EXECUTIVE'S
COVENANTS

4.1   Full Time Service

The Executive will devote all of Executive's working time, attention and effort to the
business and affairs of the Corporation and its subsidiaries and will well and faithfully serve the
Corporation and its subsidiaries and will use best efforts to promote the interests of the Corporation
and its subsidiaries.

4.2   Duties and Responsibilities

The Executive will duly and diligently perform all the duties assigned to Executive and
commensurate with Executive's position while in the employ of the Corporation, and will truly and
faithfully account for and deliver to the Corporation all money, securities and things of value belonging
to the Corporation which the Executive may from time to time receive for, from or on account of the
Corporation.

4.3   Rules and Regulations

The Executive will be bound by and will faithfully observe and abide by all the rules and
regulations of the Corporation from time to time in force which are brought to Executive's notice or of
which Executive should reasonably be aware.

4.4   Confidential Information

(a)    The Executive acknowledges that, by reason of his employment with the
Corporation, Executive will have access to Confidential Information.  The
Executive agrees that, during and after Executive's employment with the
Corporation, Executive will not disclose to any person, except in the proper
course of Executive's employment with the Corporation, or use for Executive's
own purposes or for any purposes other than those of the Corporation, any
Confidential Information acquired by Executive.

(b)    Any breach of Section 4.4(a) by the Executive will result in material and
irreparable harm to the Corporation although it may be difficult for the
Corporation to establish the monetary value flowing from such harm.  The
Executive therefore agrees that the Corporation, in addition to being entitled to
the monetary damages which flow from the breach, will be entitled to injunctive
relief in a court of appropriate jurisdiction in the event of any breach by the
Executive of Section 4.4(a). In addition, the Corporation will be relieved of any
further obligation to make any payments to the Executive or provide Executive
with any benefits as outlined in Section 5.3 and Executive shall be obligated to
repay such amounts already received under said section, except those in
Sections 5.3(a)(i) and 5.3(a)(ii), in the event of a breach by the Executive of
Section 4.4(a).

ARTICLE 5 - TERMINATION

5.1   Termination by the
Corporation

The Corporation may terminate the Executive's employment with the Corporation at
any time by giving a Notice of Termination to the Executive.

5.2   Termination by the Executive

The Executive may terminate Executive's employment with the Corporation at any time
by giving 30 days' written Notice of Termination to the Corporation.

5.3   Payments on Termination Without Cause or for
Good Reason

(a)    If the Executive's employment with the Corporation is terminated by the
Corporation pursuant to Section 5.1 for any reason other than cause or
Permanent Disability, or is terminated by the Executive pursuant to Section 5.2
for Good Reason, and subject to and conditional upon the Executive complying
with the provisions of Article 6, the Corporation will:

(i)    pay to the Executive an amount equal to the salary earned by Executive
up to the Date of Termination and any outstanding vacation pay
calculated as of such Date;

(ii)   reimburse the Executive in accordance with Section 3.6 for any
expenses incurred by Executive up to and including the Date of
Termination;

(iii)  subject to Sections 5.3(b) and (c), pay to the Executive an amount
equivalent to the base salary that would have been payable to
Executive, on the basis of Section 3.1, for the Severance Period, such
payment to be made as a lump sum payment equivalent to six (6)
months' base salary immediately upon termination of employment, with
the remaining amount to be paid within twelve (12 ) months of the Date
of Termination at such times as the Board of Directors shall determine
in its discretion, but in such amounts and at such times as shall be not
less than equal monthly installments and not more than twelve (12 )
such installments commencing thirty (30) days following the Date of
Termination;

(iv)   maintain the Executive's benefits referred to in Section 3.2 for the
Severance Period or, if that is not possible, pay to the Executive an
amount equal to the cost of such benefits, grossed up so that the after
tax value of the payments is equal to the cost of the benefits;

(v)    give the Executive credit under the Corporation's pension plan for an
additional period of service with the Corporation equal to the
Severance Period or, if that is not possible, pay to the Executive an
amount equal to the then present value of the benefits under the
Corporation's pension plan attributable to such service, grossed up so
that the after tax value of the payments is equal to then present value of
the benefits; and

(vi)   permit the Executive to exercise at any time within six (6) months from
the Date of Termination all options granted to the Executive on or after
January 28, 2002 that would otherwise vest during the Severance
Period and permit the Executive to exercise all other options vested on
the Date of Termination within 30 days of the Date of Termination.
Notwithstanding the foregoing, in no event may Executive exercise any
option after the expiration of the Option Period (as defined under the
Stock Option Plan in effect from time to time).        

(b)    Notwithstanding the foregoing, the payments contemplated by Section
5.3(a)(iii), excluding the lump sum payment described therein, will be reduced
by fifty per cent (50%) during any period when the Executive has obtained
alternate employment or has otherwise mitigated any damages arising from the
termination of his employment. The Executive has a duty to mitigate Executive's
damages and will promptly notify the Corporation of such employment or
mitigation.

(c)    In addition to receiving the payments referred to in Section 5.3(a)(iii), in the
event there is a Change of Control and the Executive's employment is
terminated by the Corporation pursuant to Section 5.1 for any reason other
than cause or Permanent Disability, or is terminated by the Executive pursuant
to Section 5.2 for Good Reason, during the period beginning one (1) month
prior to the Change of Control and ending six (6) months following the Change
in Control, and subject to and conditional upon the Executive complying with
the provisions of Article 6, the Corporation will pay to the Executive an amount
equivalent to six  (6) months' base salary, on the basis of Section 3.1, such
payment to be made immediately as a lump sum payment.

  Immediately upon the occurrence of Change of Control, all options granted to
the Executive on or after January 28, 2002 which have not previously expired,
shall immediately vest and become exercisable. Notwithstanding the foregoing
or any other term of this agreement, in no event may any option be exercised
after the expiration of the option period as defined under the stock option plan
in effect from time to time.

  (d)  The parties agree that the provisions of Section 5.3 are fair and reasonable and
that the amounts payable by the Corporation to the Executive or for
Executive's benefit pursuant to Section 5.3 are reasonable estimates of the
damages which will be suffered by the Executive in the event of the termination
of employment with the Corporation in the circumstances set out in this Section
5.3 and will not be construed as a penalty.

(e)    The parties agree that the payments under Section 5.3(a)(iii) and, if applicable,
5.3(c) will be deemed to include: (i) all termination pay and severance pay
owing to the Executive pursuant to the Employment Standards Act (Ontario);
(ii) any other or further amount of notice or pay in lieu thereof at common law
or under any statute, in respect of the termination of Executive's employment.

5.4   Payments on
Termination by Corporation for Cause or by Reason of
Permanent Disability or on Termination by the Executive Without Good
Reason

(a)    If the Executive's employment with the Corporation is terminated by the
Corporation pursuant to Section 5.1 for cause or by reason of Permanent
Disability, or if such employment is terminated by the Executive pursuant to
Section 5.2 without Good Reason, the Corporation will:

(i)    pay to the Executive an amount equal to the salary earned by Executive
up to the Date of Termination and any outstanding vacation pay
calculated as of such date;

(ii)   reimburse the Executive in accordance with Section 3.6 for any
expenses incurred by Executive up to and including the Date of
Termination;

(iii)  pay to the Executive any amounts owing to Executive under the
incentive plans  in accordance with the terms of such Plans and based
on service up to the Date of Termination but not after the Date of
Termination; and

(iv)   arrange for the Executive to receive any pension benefits to which
Executive is entitled pursuant to the Corporation's pension plan. 

(b)    If the Executive's employment with the Corporation is terminated by the
Corporation pursuant to Section 5.1 by reason of Permanent Disability, the
Corporation will:

(i)    continue to pay to the Executive an amount equal to Executive's base
salary at the rate in effect immediately prior to such termination for the
balance, if any, of the applicable waiting period for long term disability
benefits stipulated in the Corporation's long term disability plan (the
"Waiting Period");

(ii)   maintain during the Waiting Period and during any period in which the
Executive is receiving long term disability benefits pursuant to the
Corporation's long term disability plan (the "Long Term Disability
Period") those of the Executive's benefits referred to in Section 3.2
which are normally continued for the Corporation's employees who are
in receipt of either short term disability benefits or long term disability
benefits; 

(iii)  give the Executive credit under the Corporation's pension plan for an
additional period of service with the Corporation equal to the Waiting
Period and the Long Term Disability Period; and

(iv)   permit the Executive or his legal representative to exercise at any time
within six (6) months from the Date of Disability all options granted to
the Executive on or after January 28, 2002 and held by the Executive at
the Date of Termination that have vested on the Date of Termination or
would otherwise vest during the twelve (12) months period following
the Date of Termination and permit the Executive or his legal
representative to exercise all other options vested on the Date of
Disability within such six (6) months period. Notwithstanding the
foregoing, in no event may any option be exercised after the expiration
of the Option Period (as defined under the Stock Option Plan in effect
from time to time).      

(c)    The Executive and the Corporation agree that the termination of the Executive's
employment by the Corporation by reason of Permanent Disability is not
contrary to the Ontario Human Rights Code and that further accommodation
would be undue hardship on the Corporation.

5.5   Payments on Death of
the Executive

(a)    if the Executive's employment with the Corporation is terminated by death, the
Corporation will:

  (i)  pay to the Executive an amount equal to the salary earned by Executive
up to the Date of Death and any outstanding vacation pay calculated as
of such date;

  (ii) reimburse in accordance with Section 3.6 for any expenses incurred by
Executive up to and including the Date of Death;

  (iii)     pay to the Executive any amounts owing to Executive under the
incentive plans  in accordance with the terms of such Plans and based
on service up to the Date of Death but not after the Date of Death; 

  (iv) arrange for the Executive to receive any pension benefits to which
Executive is entitled pursuant to the Corporation's pension plan; and

  (v)  permit the legal representative of the Executive to exercise at any time
within six (6) months from the Date of Death all options granted to the
Executive on or after January 28, 2002 and held by the Executive at the
Date of Death that have vested on the Date of Death or would
otherwise vest during the six (6) months period following the Date of
Death and permit the legal representative of the Executive to exercise
all other options vested on the Date of Death within twelve (12) months
of the Date of Death. Notwithstanding the foregoing, in no event may
any option be exercised after the expiration of the Option Period (as
defined under the Stock Option Plan in effect from time to time).5.6       Return of
Property

       Upon any termination of his employment with the Corporation, the Executive will
deliver or cause to be delivered to the Corporation promptly all equipment, books, documents, money,
securities or other properties of the Corporation that are in the possession, charge, control or custody
of the Executive.

5.7   No Termination
Claims

Upon any termination of the Executive's employment by the Corporation in compliance
with this Agreement or upon any termination of the Executive's employment by the Executive, the
Executive will have no action, cause of action, claim or demand against the Corporation, any related or
associated corporations or any other person as a consequence of such termination.

5.8   Resignation as
Director and Officer

Upon any termination of the Executive's employment under this Agreement, the
Executive will sign forms of resignation indicating his resignation as a director and officer of the
Corporation and its subsidiaries, if applicable.

5.9         Comments About the Corporation

      Executive agrees that Executive will not say, publish or do any act or thing that
disparages or casts the Corporation, its officers, directors, employees, agents and/or representatives in
any unfavorable light, or which could result in injury to any such person's reputation.  Executive shall
make no public statements or announcements regarding Executive's past employment by the
Corporation or any of the matters set forth herein without first consulting with the Corporation and
obtaining its prior written approval as to the timing and content of the proposed statements and/or
announcements, except that Executive may disclose Executive's dates of employment,
title, job
description and final base annual salary with the Corporation.  The Corporation agrees that it shall
make no public announcement regarding Executive's past employment with the Corporation which
disparages or casts Executive in a false light.  The parties agree that neither shall make any press release
or other public announcement concerning this Agreement except to the extent required by applicable
law.

5.10  Provisions which Operate Following
Termination

Notwithstanding any termination of the Executive's employment under this Agreement
for any reason whatsoever and with or without cause, the provisions of Sections 4.4, 5.3, 5.4, 5.5, 5.6,
5.7, 5.8, 6.1, 6.2, 6.3 and 6.4 of this Agreement and any other provisions of this Agreement necessary
to give efficacy thereto will continue in full force and effect following such termination.

ARTICLE 6 - NON-COMPETITION AND NON-SOLICITATION

6.1   Non-Competition

(a)    Without limiting the Executive's Covenant's contained in Article 4, the
Executive will not, without the prior written consent of the Corporation, during
the term of employment, either individually or in partnership or jointly or in
conjunction with any person as principal, agent, employee, shareholder (other
than a holding of shares listed on a Canadian or United States stock exchange
that does not exceed 5% of the outstanding shares so listed) or in any other
manner whatsoever carry on or be engaged in or be concerned with or
interested in or advise, lend money to, guarantee the debts or obligations of or
permit his name or any part of his name to be used or employed by any person
engaged in or concerned with or interested in a business which is competitive
with the business carried on by the Corporation at any time during the term of
employment.

  (b)  The Executive will not, without the prior written consent of the      Corporation,
following the term of employment,  

            (i) until the end of the Severance Period if the Executive's employment
is terminated by the Corporation without cause or by the Executive for Good
Reason,

            (ii) until six (6) months following the Date of Termination if the
Executive's employment is terminated by the Corporation for cause, 

            (iii) until six (6) months following the last day actually worked by the
Executive if the Executive's employment is terminated in any other manner or
for any other reason, 

       either individually or in partnership or jointly or in conjunction with any person
as principal, agent, employee, shareholder (other than a holding of shares listed
on a Canadian or United States stock exchange that does not exceed 5% of the
outstanding shares so listed) or in any other manner whatsoever carry on or be
engaged in or be concerned with or interested in or advise, lend money to,
guarantee the debts or obligations of or permit his name or any part of his name
to be used or employed by any person engaged in or concerned with or
interested in within North America,

            i) a business which is competitive with any business carried on by the
Corporation during the term of employment or during any Severance Period if
the Executive's employment is terminated by the Corporation without cause or
by the Executive for Good Reason, or 

            (ii) a business which is competitive with any business carried on by the
Corporation during the term of employment through the Date of Termination, in
all other cases.         

(c)    The Executive confirms that all restrictions in Section 6.1(a) and (b) are
reasonable and valid and that the Executive waives all defences to the strict
enforcement of such restrictions by the Corporation.

6.2   Non-Solicitation

(a)    The Executive will not, without the prior consent of the Corporation, during the
term of Executive's employment or at any time for a period of twelve (12)
months following the termination of the Executive's employment under the
Agreement for whatever reason and with or without cause, either individually,
or in partnership, or jointly, or in conjunction with any person as principal,
agent, employee or shareholder (other than a holding of shares listed on a
Canadian or United States stock exchange that does not exceed 5% of the
outstanding shares so listed) or in any other manner whatsoever on Executive's
own behalf or on behalf of anyone competing or endeavouring to compete with
the Corporation, directly or indirectly solicit, or gain the custom of, interfere
with or endeavour to entice away from the Corporation any person who:

(i)    is a client of the Corporation at the Date of Termination and with whom
the Executive dealt during the Executive's employment;

(ii)   was a client of the Corporation at any time during the Executive's
employment at the Corporation and with whom the Executive dealt
during the Executive's employment; 

    For the purposes of 6.2(a)(i) and (ii) above, "client" shall mean customers
(including distributors, resellers and licensees), joint venture partners, strategic
partners, OEM partners and any other individual or entity in a like relationship
with the Corporation or its affiliates.

(b)    The Executive confirms that all restrictions in Section 6.2(a) are reasonable and
valid and that the Executive waives all defences to the strict enforcement of
such restrictions in Section 6.2(a) by the Corporation.

(c)    Sections 6.2(a)(i),(ii) and (iii) are each separate and distinct covenants,
severable one from the other and if any such covenant or covenants are
determined to be invalid or unenforceable, such invalidity or unenforceability
will attach only to the covenant or covenants as determined and all other such
covenants will continue in full force and effect.

(d)    The Executive, for a period of twelve (12) months following the termination of
the Executive's employment under the Agreement for whatever reason and with
or without cause, will not interfere with or entice away any person who is an
employee or independent contractor of the Corporation at the Date of
Termination.

6.3   Industrial and Intellectual Property

	     Executive acknowledges that all improvements, inventions, know-how and
discoveries, technology, patents, copyrightable materials, computer programs,
designs, documentation, processes, techniques or procedures in any way
related to the Corporation's business which are developed, invented, or written
by Executive alone or together with others, including all derivative works,
during the course of Executive's employment with Corporation, or at any time
using Confidential Information ("Developments") are the exclusive property the
Corporation:
	     Executive will fully disclose all Developments to the Corporation and  hereby
waives all moral rights in all Developments as of the moment they are created
and transfers all interest in all Developments, including all derivative works,
exclusively to the Corporation on a world-wide, royalty-free basis as of the
moment they are created and, as required by the Corporation, will protect the
Corporation's interest in such Developments.  Executive agrees to execute any
documents which the Corporation feels are necessary to enable the
Corporation to apply for or enforce its patent, copyright, industrial design,
trademark right, or any other industrial or intellectual property rights in the
Developments.

   (c)  Executive acknowledges that Executive is not a party to any prior agreements
which have created, or which could create in any third party rights which are or
could become inconsistent with Executive's obligations herein, and agrees that
Executive will fully disclose to the Corporation at Executive's earliest
opportunity any such prior agreements as well as any claims made or notices
provided by a third party which allege any such agreement or interest.

   (d)  Executive acknowledges that, from time to time, the Corporation uses the
image, likeness, voice or other representation of its employees in connection
with the production of corporate reports, advertising and promotional materials,
and training videos.  Executive agrees that if, during the course of employment,
Executive participates in such productions, the Corporation may use
Executive's image, likeness, voice or other representation in perpetuity, in all
media and in all territories for the purposes described above without further
compensation to Executive.

6.4  Breach

Any breach of the provisions of Sections 6.1(a), 6.1(b), 6.2(a), 6.2(d) or 6.3 by the
Executive will result in material and irreparable harm to the Corporation although it may be difficult for
the Corporation to establish the monetary value flowing from such harm.  The Executive therefore
agrees that the Corporation, in addition to being entitled to the monetary damages which flow from the
breach, will be entitled to injunctive relief in a court of appropriate jurisdiction in the event of any breach
or threatened breach by the Executive of any of the provisions of Sections 6.1(a), 6.1(b), 6.2(a),
6.2(d) or 6.3 .  In addition, the Corporation will be relieved of any further obligations to make any
payments to the Executive or provide him with any benefits as outlined in Section 5.3 and Executive
shall be obligated to repay such amounts already received under said section, except those in Section
5.3(a)(i) and 5.3(a)(ii), in the event of a breach by the Executive of any of the provisions of Sections
6.1(a), 6.1(b), 6.2(a), 6.2(d) or 6.3.

 GENERAL

7.1    Notices

Any demand, notice or other communication ("Communication") to be given in
connection with this Agreement will be given in writing by personal delivery, by registered mail or by
electronic means of communication addressed to the recipient as follows:

To the Corporation:

  1600 Carling Avenue

               Ottawa, ON  K1Z 8R7

  Attention: Vice President Human Resources

To the Executive:

  Mr. Ian Legrow  

            82 Hobin St., Stittsville Ont., K2S 1G8

           

or such other address, individual or electronic communication number as may be designated by
notice
given by either party to the other.  Any Communication given by personal delivery will be conclusively
deemed to have been given on the day of actual delivery of the Communication and, if given by
registered mail, on the third day, other than a Saturday, Sunday or statutory holiday in Ontario,
following the deposit of the Communication in the mail and, if given by electronic communication, on the
day of transmittal of the Communication if given during the normal business hours of the recipient and
on the business day during which such normal business hours next occur if not given during such hours
on any day.  If the party giving any Communication knows or ought reasonably to know of any
difficulties with the postal system which might affect the delivery of mail, any such Communication may
not be mailed but must be given by personal delivery or by electronic communication.

7.2  Time of Essence

Time will be of the essence of this Agreement.

7.3  Deductions

The Corporation will deduct all statutory deductions from any amounts to be paid to the
Executive under this Agreement.

7.4  Sections and Headings

The division of this Agreement into Articles and Sections and the insertion of headings
are for the convenience of reference only and will not affect the construction or interpretation of this
Agreement.  The terms "this Agreement", "hereof", "hereunder" and similar expressions refer to this
Agreement and not to any particular Article, Section or other portion hereof and include any agreement
or instrument supplemental or ancillary hereto.  Unless something in the subject matter or context is
inconsistent therewith, references herein to Articles and Sections are to Articles and Sections of this
Agreement.

7.5  Number

In this Agreement words importing the singular number only will include the plural and
vice versa and words importing the masculine gender will include the feminine and neuter genders and
vice versa and words importing persons will include individuals, partnerships, associations, trusts,
unincorporated organizations and corporations and vice versa.

7.6  Benefit of Agreement

This Agreement will enure to the benefit of and be binding upon the heirs, executors,
administrators and legal personal representatives of the Executive and the successors and permitted
assigns of the Corporation respectively.

7.7  Entire Agreement

This Agreement constitutes the entire agreement between the parties with respect to the
subject matter of this Agreement and cancels and supersedes any prior understandings and agreements
between the parties to this Agreement with respect to the subject matter of this Agreement.  There are
no representations, warranties, forms, conditions, undertakings or collateral agreements, express,
implied or statutory between the parties other than as expressly set forth in this Agreement.

       

7.8  Pre-Contractual Representations

The Executive hereby waives any right to assert a claim based on any pre-contractual
representations, negligent or otherwise, made by the Corporation.

7.9  Amendments and
Waivers

No amendment to this Agreement will be valid or binding unless set forth in writing and
duly executed by both of the parties to this Agreement.  No waiver of any breach of any provision of
this Agreement will be effective or binding unless made in writing and signed by the party purporting to
give the same and, unless otherwise provided in the written waiver, will be limited to the specific breach
waived.

7.10 Severability

If any provision of this Agreement is determined to be invalid or unenforceable in whole
or in part, such invalidity or unenforceability will attach only to such provision or part of such provision
and the remaining part of such provision and all other provisions of this Agreement will continue in full
force and effect.

7.11   Governing Law

This Agreement will be governed by and construed in accordance with the laws of the
Province of Ontario and the laws of Canada applicable in Ontario.

7.12 Attornment

For the purpose of all legal proceedings this Agreement will be deemed to have been
performed in the Province of Ontario and the courts of the Province of Ontario will have jurisdiction to
entertain any action arising under this Agreement.  The Corporation and the Executive each hereby
attorns to the jurisdiction of the courts of the Province of Ontario provided that nothing in this
Agreement contained will prevent the Corporation from proceeding at its election against the Executive
in the courts of any other province or country.

In the event that the Executive, in good faith, initiates litigation to enforce payments under
Article 5.3 or
5.4 following a Change of Control, the Corporation will pay, and be solely financially responsible for,
any and all attorneys' and related fees and expenses incurred by the Executive, without regard to
whether the Executive prevails in such litigation.

7.13 Copy of Agreement

The Executive hereby acknowledges receipt of a copy of this Agreement duly signed by
the Corporation.

IN WITNESS WHEREOF the parties have executed this Agreement.

		Corel
Corporation

			
		By:	_______________________________

		Name: Stephen Quesnelle
		Title: VP - Human Resources

			
			
		By:	_____________________________
		Name:	
		Title:	

		
		
		

			
	WITNESS:		
			
			

			

	Signature	[Ian Legrow signature and date]

			
			

			

	Name (Please print)<PAGE>

                                                                    EXHIBIT 10.1

                           ISTA PHARMACEUTICALS, INC.

                                 2000 STOCK PLAN

                         (as amended December 16, 2002)

         1.       Purposes of the Plan. The purposes of this 2000 Stock Plan
                     are:

                  -     to attract and retain the best available personnel for
                        positions of substantial responsibility,

                  -     to provide additional incentive to Employees, Directors
                        and Consultants, and

                  -     to promote the success of the Company's business.

                  Options granted under the Plan may be Incentive Stock Options
or Nonstatutory Stock Options, as determined by the Administrator at the time of
grant. Stock Purchase Rights may also be granted under the Plan.

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

                  (a)      "Administrator" means the Board or any of its
Committees as shall be administering the Plan, in accordance with Section 4 of
the Plan.

                  (b)      "Applicable Laws" means the requirements relating to
the administration of stock option plans under U.S. state corporate laws, U.S.
federal and state securities laws, the Code, any stock exchange or quotation
system on which the Common Stock is listed or quoted and the applicable laws of
any foreign country or jurisdiction where Options or Stock Purchase Rights are,
or will be, granted under the Plan.

                  (c)      "Board" means the Board of Directors of the Company.

                  (d)      "Cause" means (i) any act of personal dishonesty
taken by the Optionee in connection with his responsibilities as an Employee
which is intended to result in personal enrichment of the Optionee, (ii) the
Optionee's conviction of a felony, (iii) any act by the Optionee that
constitutes misconduct, and (iv) continued violations by the Optionee of the
Optionee's obligations to the Company.

                  (e)      "Change of Control" means the occurrence of any of
the following events:

                           (i)      Any "person" (as such term is used in
Sections 13(d) and 14(d) of the Exchange Act) becomes the "beneficial owner" (as
defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of
securities of the Company representing fifty percent (50%) or more of the total
voting power represented by the Company's then outstanding voting securities; or

<PAGE>

                           (ii)     The consummation of the sale or disposition
by the Company of all or substantially all of the Company's assets; or

                           (iii)    The consummation of a merger or
consolidation of the Company with any other corporation, other than a merger or
consolidation which would result in the voting securities of the Company
outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting securities of the
surviving entity or its parent) at least seventy percent (70%) of the total
voting power represented by the voting securities of the Company or such
surviving entity or its parent outstanding immediately after such merger or
consolidation.

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

                  (g)      "Committee"  means a committee of Directors appointed
by the Board in accordance with Section 4 of the Plan.

                  (h)      "Common Stock" means the common stock of the Company.

                  (i)      "Company" means ISTA Pharmaceuticals, Inc., a
California corporation.

                  (j)      "Consultant" means any person, including an advisor,
engaged by the Company or a Parent or Subsidiary to render services to such
entity.

                  (k)      "Director" means a member of the Board.

                  (l)      "Disability" means total and permanent disability as
defined in Section 22(e)(3) of the Code.

                  (m)      "Employee" means any person, including Officers and
Directors, employed by the Company or any Parent or Subsidiary of the Company. A
Service Provider shall not cease to be an Employee in the case of (i) any leave
of absence approved by the Company or (ii) transfers between locations of the
Company or between the Company, its Parent, any Subsidiary, or any successor.
For purposes of Incentive Stock Options, no such leave may exceed ninety days,
unless reemployment upon expiration of such leave is guaranteed by statute or
contract. If reemployment upon expiration of a leave of absence approved by the
Company is not so guaranteed, on the 181st day of such leave any Incentive Stock
Option held by the Optionee shall cease to be treated as an Incentive Stock
Option and shall be treated for tax purposes as a Nonstatutory Stock Option.
Neither service as a Director nor payment of a director's fee by the Company
shall be sufficient to constitute "employment" by the Company.

                  (n)      "Exchange Act" means the Securities Exchange Act of
1934, as amended.

                  (o)      "Fair Market Value" means, as of any date, the value
of Common Stock determined as follows:

                           (i)      If the Common Stock is listed on any
established stock exchange or a national market system, including without
limitation the Nasdaq National Market or The Nasdaq

                                      2

<PAGE>

SmallCap Market of The Nasdaq Stock Market, its Fair Market Value shall be the
closing sales price for such stock (or the closing bid, if no sales were
reported) as quoted on such exchange or system for the last market trading day
prior to the time of determination, as reported in The Wall Street Journal or
such other source as the Administrator deems reliable;

                           (ii)     If the Common Stock is regularly quoted by a
recognized securities dealer but selling prices are not reported, the Fair
Market Value of a Share of Common Stock shall be the mean between the high bid
and low asked prices for the Common Stock on the last market trading day prior
to the day of determination, as reported in The Wall Street Journal or such
other source as the Administrator deems reliable; or

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

                  (p)      "Incentive Stock Option" means an Option intended to
qualify as an incentive stock option within the meaning of Section 422 of the
Code and the regulations promulgated thereunder.

                  (q)      "Inside Director" means a Director who is an
Employee.

                  (r)      "IPO Effective Date" means the date upon which the
Securities and Exchange Commission declares the initial public offering of the
Company's Common Stock as effective.

                  (s)      "Nonstatutory Stock Option" means an Option not
intended to qualify as an Incentive Stock Option.

                  (t)      "Notice of Grant" means a written or electronic
notice evidencing certain times and conditions of an individual Option or Stock
Purchase Right grant. The Notice of Grant is part of the Option Agreement.

                  (u)      "Officer" means a person who is an officer of the
Company within the meaning of Section 16 of the Exchange Act and the rules and
regulations promulgated thereunder.

                  (v)      "Option" means a stock option granted pursuant to the
Plan.

                  (w)      "Option Agreement" means an agreement between the
Company and an Optionee evidencing the terms and conditions of an individual
Option grant. The Option Agreement is subject to the terms and conditions of the
Plan.

                  (x)      "Option Exchange Program" means a program whereby
outstanding Options are surrendered in exchange for Options with a lower
exercise price.

                  (y)      "Optioned Stock" means the Common Stock subject to an
Option or Stock Purchase Right.

                  (z)      "Optionee" means the holder of an outstanding Option
or Stock Purchase Right granted under the Plan.

                                       3

<PAGE>

                  (aa)     "Outside Director" means a Director who is not an
Employee.

                  (bb)     "Plan" means this 2000 Stock Option Plan, as amended
and restated.

                  (cc)     "Restricted Stock" means shares of Common Stock
acquired pursuant to a grant of Stock Purchase Rights under Section 11 of the
Plan.

                  (dd)     "Restricted Stock Purchase Agreement" means a written
agreement between the Company and the Optionee evidencing the terms and
restrictions applying to stock purchased under a Stock Purchase Right. The
Restricted Stock Purchase Agreement is subject to the terms and conditions of
the Plan and the Notice of Grant.

                  (ee)      "Rule 16b-3" means Rule 16b-3 of the Exchange Act or
any successor to Rule 16b-3, as in effect when discretion is being exercised
with respect to the Plan.

                  (ff)     "Section 16(b)" means Section 16(b) of the Exchange
Act.

                  (gg)     "Service Provider" means an Employee, Director or
Consultant.

                  (hh)     "Share" means a share of the Common Stock, as
adjusted in accordance with Section 14 of the Plan. All Share numbers set forth
herein have been adjusted for the 1-for-10 reverse stock split of Common Stock
that became effective as of 4:01 p.m. EST, November 13, 2002.

                  (ii)     "Stock Purchase Right" means the right to purchase
Common Stock pursuant to Section 11 of the Plan, as evidenced by a Notice of
Grant.

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

         3.       Stock Subject to the Plan. As of December 16, 2002, the date
of the most recent amendment to this 2000 Stock Plan, and subject to the
provisions of Section 14 of the Plan, the maximum aggregate number of Shares
which may be optioned and sold under the Plan is 2,560,000 Shares, which
includes the Shares available for future issuance under the Advanced Corneal
Systems, Inc. 1993 Stock Plan (the "1993 Stock Plan") on the date the Securities
and Exchange Commission declared the Company's registration statement effective,
as well as any Shares returned to the 1993 Stock Plan. The number of Shares
reserved for issuance under the Plan shall increase annually on the first day of
the Company's fiscal year beginning in 2003 by an amount of Shares equal to the
lesser of (i) 200,000 Shares, (ii) 1.5% of the outstanding Shares on such date
or (iii) an amount determined by the Board. The Shares may be authorized, but
unissued, or reacquired Common Stock.

                  If an Option or Stock Purchase Right expires or becomes
unexercisable without having been exercised in full, or is surrendered pursuant
to an Option Exchange Program, the unpurchased Shares which were subject thereto
shall become available for future grant or sale under the Plan (unless the Plan
has terminated); provided, however, that Shares that have actually been issued
under the Plan, whether upon exercise of an Option or Right, shall not be
returned to the Plan

                                       4

<PAGE>

and shall not become available for future distribution under the Plan, except
that if Shares of Restricted Stock are repurchased by the Company at their
original purchase price, such Shares shall become available for future grant
under the Plan.

         4.       Administration of the Plan.

                  (a)      Procedure.

                           (i)      Multiple Administrative Bodies. The Plan may
be administered by different Committees with respect to different groups of
Service Providers.

                           (ii)     Section 162(m). To the extent that the
Administrator determines it to be desirable to qualify Options granted hereunder
as "performance-based compensation" within the meaning of Section 162(m) of the
Code, the Plan shall be administered by a Committee of two or more "outside
directors" within the meaning of Section 162(m) of the Code.

                           (iii)    Rule 16b-3. To the extent desirable to
qualify transactions hereunder as exempt under Rule 16b-3, the transactions
contemplated hereunder shall be structured to satisfy the requirements for
exemption under Rule 16b-3.

                           (iv)     Other Administration. Other than as provided
above, the Plan shall be administered by (A) the Board or (B) a Committee, which
committee shall be constituted to satisfy Applicable Laws.

                  (b)      Powers of the Administrator. Subject to the
provisions of the Plan, and in the case of a Committee, subject to the specific
duties delegated by the Board to such Committee, the Administrator shall have
the authority, in its discretion:

                           (i)      to determine the Fair Market Value;

                           (ii)     to select the Service Providers to whom
Options and Stock Purchase Rights may be granted hereunder;

                           (iii)    to determine the number of shares of Common
Stock to be covered by each Option and Stock Purchase Right granted hereunder;

                           (iv)     to approve forms of agreement for use under
the Plan;

                           (v)      to determine the terms and conditions, not
inconsistent with the terms of the Plan, of any Option or Stock Purchase Right
granted hereunder. Such terms and conditions include, but are not limited to,
the exercise price, the time or times when Options or Stock Purchase Rights may
be exercised (which may be based on performance criteria), any vesting
acceleration or waiver of forfeiture restrictions, and any restriction or
limitation regarding any Option or Stock Purchase Right or the shares of Common
Stock relating thereto, based in each case on such factors as the Administrator,
in its sole discretion, shall determine;

                                       5

<PAGE>

                           (vi)     to reduce the exercise price of any Option
or Stock Purchase Right to the then current Fair Market Value if the Fair Market
Value of the Common Stock covered by such Option or Stock Purchase Right shall
have declined since the date the Option or Stock Purchase Right was granted;

                           (vii)    to institute an Option Exchange Program;

                           (viii)   to construe and interpret the terms of the
Plan and awards granted pursuant to the Plan;

                           (ix)     to prescribe, amend and rescind rules and
regulations relating to the Plan, including rules and regulations relating to
sub-plans established for the purpose of qualifying for preferred tax treatment
under foreign tax laws;

                           (x)      to modify or amend each Option or Stock
Purchase Right (subject to Section 16(c) of the Plan), including the
discretionary authority to extend the post-termination exercisability period of
Options longer than is otherwise provided for in the Plan;

                           (xi)     to allow Optionees to satisfy withholding
tax obligations by electing to have the Company withhold from the Shares to be
issued upon exercise of an Option or Stock Purchase Right that number of Shares
having a Fair Market Value equal to the amount required to be withheld. The Fair
Market Value of the Shares to be withheld shall be determined on the date that
the amount of tax to be withheld is to be determined. All elections by an
Optionee to have Shares withheld for this purpose shall be made in such form and
under such conditions as the Administrator may deem necessary or advisable;

                           (xii)    to authorize any person to execute on behalf
of the Company any instrument required to effect the grant of an Option or Stock
Purchase Right previously granted by the Administrator;

                           (xiii)   to make all other determinations deemed
necessary or advisable for administering the Plan.

                  (c)      Effect of Administrator's Decision. The
Administrator's decisions, determinations and interpretations shall be final and
binding on all Optionees and any other holders of Options or Stock Purchase
Rights.

         5.       Eligibility. Nonstatutory Stock Options and Stock Purchase
Rights may be granted to Service Providers. Incentive Stock Options may be
granted only to Employees.

         6.       Limitations.

                  (a)      Each Option shall be designated in the Option
Agreement as either an Incentive Stock Option or a Nonstatutory Stock Option.
However, notwithstanding such designation, to the extent that the aggregate Fair
Market Value of the Shares with respect to which Incentive Stock Options are
exercisable for the first time by the Optionee during any calendar year (under
all plans of the Company and any Parent or Subsidiary) exceeds $100,000, such
Options shall be treated as Nonstatutory Stock Options. For purposes of this
Section 6(a), Incentive Stock Options shall

                                       6

<PAGE>

be taken into account in the order in which they were granted. The Fair Market
Value of the Shares shall be determined as of the time the Option with respect
to such Shares is granted.

                  (b)      Neither the Plan nor any Option or Stock Purchase
Right shall confer upon an Optionee any right with respect to continuing the
Optionee's relationship as a Service Provider with the Company, nor shall they
interfere in any way with the Optionee's right or the Company's right to
terminate such relationship at any time, with or without Cause.

                  (c)      The following limitations shall apply to grants of
Options:

                           (i)      No Service Provider shall be granted, in any
fiscal year of the Company, Options to purchase more than 100,000 Shares.

                           (ii)     In connection with his or her initial
service, a Service Provider may be granted Options to purchase up to an
additional 200,000 Shares, which shall not count against the limit, set forth in
subsection (i) above.

                           (iii)    The foregoing limitations shall be adjusted
proportionately in connection with any change in the Company's capitalization as
described in Section 14.

                           (iv)     If an Option is cancelled in the same fiscal
year of the Company in which it was granted (other than in connection with a
transaction described in Section 14), the cancelled Option will be counted
against the limits set forth in subsections (i) and (ii) above. For this
purpose, if the exercise price of an Option is reduced, the transaction will be
treated as a cancellation of the Option and the grant of a new Option.

         7.       Term of Plan. Subject to Section 20 of the Plan, the Plan
shall become effective upon its adoption by the Board. It shall continue in
effect for a term of ten (10) years unless terminated earlier under Section 16
of the Plan.

         8.       Term of Option. The term of each Option shall be stated in the
Option Agreement. In the case of an Incentive Stock Option, the term shall be
ten (10) years from the date of grant or such shorter term as may be provided in
the Option Agreement. Moreover, in the case of an Incentive Stock Option granted
to an Optionee who, at the time the Incentive Stock Option is granted, owns
stock representing more than ten percent (10%) of the total combined voting
power of all classes of stock of the Company or any Parent or Subsidiary, the
term of the Incentive Stock Option shall be five (5) years from the date of
grant or such shorter term as may be provided in the Option Agreement.

         9.       Option Exercise Price and Consideration.

                  (a)      Exercise Price. The per share exercise price for the
Shares to be issued pursuant to exercise of an Option shall be determined by the
Administrator, subject to the following:

                           (i)      In the case of an Incentive Stock Option

                                       7

<PAGE>

                                    (A)     granted to an Employee who, at the
time the Incentive Stock Option is granted, owns stock representing more than
ten percent (10%) of the voting power of all classes of stock of the Company or
any Parent or Subsidiary, the per Share exercise price shall be no less than
110% of the Fair Market Value per Share on the date of grant.

                                    (B)     granted to any Employee other than
an Employee described in paragraph (A) immediately above, the per Share exercise
price shall be no less than 100% of the Fair Market Value per Share on the date
of grant.

                           (ii)     In the case of a Nonstatutory Stock Option,
the per Share exercise price shall be determined by the Administrator. In the
case of a Nonstatutory Stock Option intended to qualify as "performance-based
compensation" within the meaning of Section 162(m) of the Code, the per Share
exercise price shall be no less than 100% of the Fair Market Value per Share on
the date of grant.

                           (iii)    Notwithstanding the foregoing, Options may
be granted with a per Share exercise price of less than 100% of the Fair Market
Value per Share on the date of grant pursuant to a merger or other corporate
transaction.

                  (b)      Waiting Period and Exercise Dates. At the time an
Option is granted, the Administrator shall fix the period within which the
Option may be exercised and shall determine any conditions that must be
satisfied before the Option may be exercised.

                  (c)      Form of Consideration. The Administrator shall
determine the acceptable form of consideration for exercising an Option,
including the method of payment. In the case of an Incentive Stock Option, the
Administrator shall determine the acceptable form of consideration at the time
of grant. Such consideration may consist entirely of:

                           (i)      cash;

                           (ii)     check;

                           (iii)    promissory note;

                           (iv)     other Shares which (A) in the case of Shares
acquired upon exercise of an option, have been owned by the Optionee for more
than six months on the date of surrender, and (B) have a Fair Market Value on
the date of surrender equal to the aggregate exercise price of the Shares as to
which said Option shall be exercised;

                           (v)      consideration received by the Company under
a cashless exercise program implemented by the Company in connection with the
Plan;

                           (vi)     a reduction in the amount of any Company
liability to the Optionee, including any liability attributable to the
Optionee's participation in any Company-sponsored deferred compensation program
or arrangement;

                           (vii)    any combination of the foregoing methods of
payment; or

                                       8

<PAGE>

                           (viii)   such other consideration and method of
payment for the issuance of Shares to the extent permitted by Applicable Laws.

         10.      Exercise of Option.

                  (a)      Procedure for Exercise; Rights as a Shareholder. Any
Option granted hereunder shall be exercisable according to the terms of the Plan
and at such times and under such conditions as determined by the Administrator
and set forth in the Option Agreement. Unless the Administrator provides
otherwise, vesting of Options granted hereunder shall be tolled during any
unpaid leave of absence. An Option may not be exercised for a fraction of a
Share.

                           An Option shall be deemed exercised when the Company
receives: (i) written or electronic notice of exercise (in accordance with the
Option Agreement) from the person entitled to exercise the Option, and (ii) full
payment for the Shares with respect to which the Option is exercised. Full
payment may consist of any consideration and method of payment authorized by the
Administrator and permitted by the Option Agreement and the Plan. Shares issued
upon exercise of an Option shall be issued in the name of the Optionee or, if
requested by the Optionee, in the name of the Optionee and his or her spouse.
Until the Shares are issued (as evidenced by the appropriate entry on the books
of the Company or of a duly authorized transfer agent of the Company), no right
to vote or receive dividends or any other rights as a shareholder shall exist
with respect to the Optioned Stock, notwithstanding the exercise of the Option.
The Company shall issue (or cause to be issued) such Shares promptly after the
Option is exercised. No adjustment will be made for a dividend or other right
for which the record date is prior to the date the Shares are issued, except as
provided in Section 14 of the Plan.

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

                  (b)      Termination of Relationship as a Service Provider.
Subject to Section 14, if an Optionee ceases to be a Service Provider (but not
in the event of an Optionee's change of status from Employee to Consultant (in
which case an Employee's Incentive Stock Option shall automatically convert to a
Nonstatutory Stock Option on the ninety-first (91st) day following such change
of status) or from Consultant to Employee), such Optionee may, but only within
such period of time as is specified in the Option Agreement (but in no event
later than the expiration date of the term of such Option as set forth in the
Option Agreement), exercise his or her Option to the extent that Optionee was
entitled to exercise it at the date of such termination. In the absence of a
specified time in the Option Agreement, the Option shall remain exercisable for
three (3) months following the Optionee's termination. If, on the date of
termination, the Optionee is not vested as to his or her entire Option, the
Shares covered by the unvested portion of the Option shall revert to the Plan.
If, after termination, the Optionee does not exercise his or her Option within
the time specified by the Administrator, the Option shall terminate, and the
Shares covered by such Option shall revert to the Plan.

                  (c)      Disability of Optionee. If an Optionee ceases to be
a Service Provider as a result of the Optionee's Disability, the Optionee may,
but only within twelve (12) months from the

                                       9

<PAGE>

date of such termination (and in no event later than the expiration date of the
term of such Option as set forth in the Option Agreement), exercise his or her
Option to the extent that the Option is vested on the date of termination. If,
on the date of termination, the Optionee is not vested as to his or her entire
Option, the Shares covered by the unvested portion of the Option shall revert to
the Plan. If, after termination, the Optionee does not exercise his or her
Option within the time specified herein, the Option shall terminate, and the
Shares covered by such Option shall revert to the Plan.

                  (d)      Death of Optionee. If an Optionee dies while a
Service Provider, the Option may be exercised at any time within twelve (12)
months following the date of death (but in no event later than the expiration of
the term of such Option as set forth in the Notice of Grant), by the Optionee's
estate or by a person who acquires the right to exercise the Option by bequest
or inheritance, but only to the extent that the Option is vested on the date of
death. If, at the time of death, the Optionee is not vested as to his or her
entire Option, the Shares covered by the unvested portion of the Option shall
immediately revert to the Plan. The Option may be exercised by the executor or
administrator of the Optionee's estate or, if none, by the person(s) entitled to
exercise the Option under the Optionee's will or the laws of descent or
distribution. If the Option is not so exercised within the time specified
herein, the Option shall terminate, and the Shares covered by such Option shall
revert to the Plan.

                  (e)      Buyout Provisions. The Administrator may at any time
offer to buy out for a payment in cash or Shares an Option previously granted
based on such terms and conditions as the Administrator shall establish and
communicate to the Optionee at the time that such offer is made.

         11.      Stock Purchase Rights.

                  (a)      Rights to Purchase. Stock Purchase Rights may be
issued either alone, in addition to, or in tandem with other awards granted
under the Plan and/or cash awards made outside of the Plan. After the
Administrator determines that it will offer Stock Purchase Rights under the
Plan, it shall advise the offeree in writing or electronically, by means of a
Notice of Grant, of the terms, conditions and restrictions related to the offer,
including the number of Shares that the offeree shall be entitled to purchase,
the price to be paid, and the time within which the offeree must accept such
offer. The offer shall be accepted by execution of a Restricted Stock Purchase
Agreement in the form determined by the Administrator.

                  (b)      Repurchase Option. Unless the Administrator
determines otherwise, the Restricted Stock Purchase Agreement shall grant the
Company a repurchase option exercisable upon the voluntary or involuntary
termination of the purchaser's service with the Company for any reason
(including death or Disability). The purchase price for Shares repurchased
pursuant to the Restricted Stock Purchase Agreement shall be the original price
paid by the purchaser and may be paid by cancellation of any indebtedness of the
purchaser to the Company. The repurchase option shall lapse at a rate determined
by the Administrator.

                  (c)      Other Provisions. The Restricted Stock Purchase
Agreement shall contain such other terms, provisions and conditions not
inconsistent with the Plan as may be determined by the Administrator in its sole
discretion.

                                       10

<PAGE>

                  (d)      Rights as a Shareholder. Once the Stock Purchase
Right is exercised, the purchaser shall have the rights equivalent to those of a
shareholder, and shall be a shareholder when his or her purchase is entered upon
the records of the duly authorized transfer agent of the Company. No adjustment
will be made for a dividend or other right for which the record date is prior to
the date the Stock Purchase Right is exercised, except as provided in Section 14
of the Plan.

         12.      Non-Transferability of Options and Stock Purchase Rights.
Unless determined otherwise by the Administrator, an Option or Stock Purchase
Right may not be sold, pledged, assigned, hypothecated, transferred, or disposed
of in any manner other than by will or by the laws of descent or distribution
and may be exercised, during the lifetime of the Optionee, only by the Optionee.
If the Administrator makes an Option or Stock Purchase Right transferable, such
Option or Stock Purchase Right shall contain such additional terms and
conditions as the Administrator deems appropriate.

         13.      Formula Option Grants to Outside Directors. Outside Directors
shall be granted Options in accordance with the following provisions:

                  (a)      All Options granted pursuant to this Section shall be
Nonstatutory Stock Options and, except as otherwise provided herein, shall be
subject to the other terms and conditions of the Plan.

                  (b)      Except as provided in subsection (d) below, each
person who becomes an Outside Director on or after the IPO Effective Date,
whether through election by the stockholders of the Company or appointment by
the Board to fill a vacancy shall be automatically granted an Option to purchase
up to 32,500 Shares (the "First Option") on the date he or she becomes an
Outside Director; provided, however, that an Inside Director who ceases to be an
Inside Director but who remains a Director shall not receive a First Option;
provided, further, that if a person becomes an Outside Director after having
previously served as an Outside Director, (i) such person shall only be granted
another First Option if his or her previous service as an Outside Director was
terminated for bona fide reasons, as determined in good faith by the Board, and
(ii) such person shall not be granted another First Option by virtue of
re-election as a director at an annual meeting of stockholders.

                  (c)      Except as provided in subsection (d) below, each
Outside Director shall be automatically granted an Option to purchase up to
16,250 Shares (a "Subsequent Option") following each annual meeting of the
stockholders of the Company occurring after the end of the Company's fiscal year
2003, if immediately after such meeting, he or she shall continue to serve on
the Board and shall have served on the Board for at least the preceding six (6)
months; provided, however, that each Outside Director shall only be granted one
Subsequent Option in each fiscal year of the Company.

                  (d)      Notwithstanding the provisions of subsections (b) and
(c) hereof, any exercise of an Option granted before the Company has obtained
stockholder approval of the Plan in accordance with Section 20 hereof shall be
conditioned upon obtaining such stockholder approval of the Plan in accordance
with Section 20 hereof.

                                       11

<PAGE>

                  (e)      The terms of each First Option granted pursuant to
this Section shall be as follows:

                           (i)      the term of the Option shall be ten (10)
years;

                           (ii)     the exercise price per Share shall be at
least 100% of the Fair Market Value per Share on the date of grant of the
Option; and

                           (iii)    one third (1/3) of the Shares subject to the
Option shall vest on the first anniversary after the date of grant and one-third
(1/3) of the Shares subject to the Option shall vest on each anniversary
thereafter so that the Option shall be fully vested on the third anniversary
after the date of grant, provided that in each case the Outside Director shall
continue to serve on the Board on such dates.

                  (f)      The terms of each Subsequent Option granted pursuant
to this Section shall be as follows:

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

                           (ii)     the exercise price per Share shall be at
least 100% of the Fair Market Value per Share on the date of grant of the
Option.

                           (iii)    the Option shall vest and become exercisable
in full on the first anniversary after the date of grant, provided that the
Outside Director shall continue to serve on the Board on such date.

         14.      Adjustments Upon Changes in Capitalization, Merger or Asset
Sale.

                  (a)      Changes in Capitalization. Subject to any required
action by the stockholders of the Company, the number of shares of Common Stock
covered by each outstanding Option or Stock Purchase Right, and the number of
shares of Common Stock which have been authorized for issuance under the Plan
but as to which no Options or Stock Purchase Rights have yet been granted or
which have been returned to the Plan upon cancellation or expiration of an
Option or Stock Purchase Right, as well as the price per share of Common Stock
covered by each such outstanding Option or Stock Purchase Right, shall be
proportionately adjusted for any increase or decrease in the number of issued
shares of Common Stock resulting from a stock split, reverse stock split, stock
dividend, combination or reclassification of the Common Stock, or any other
increase or decrease in the number of issued shares of Common Stock effected
without receipt of consideration by the Company. The conversion of any
convertible securities of the Company shall not be deemed to have been "effected
without receipt of consideration." Such adjustment shall be made by the Board,
whose determination in that respect shall be final, binding and conclusive.
Except as expressly provided herein, no issuance by the Company of shares of
stock of any class, or securities convertible into shares of stock of any class,
shall affect, and no adjustment by reason thereof shall be made with respect to,
the number or price of shares of Common Stock subject to an Option or Stock
Purchase Right.

                                       12

<PAGE>

                  (b)      Dissolution or Liquidation. In the event of the
proposed dissolution or liquidation of the Company, the Administrator shall
notify each Optionee as soon as practicable prior to the effective date of such
proposed transaction. The Administrator in its discretion may provide for an
Optionee to have the right to exercise his or her Option or Stock Purchase Right
until fifteen (15) days prior to such transaction as to all of the Optioned
Stock covered thereby, including Shares as to which the Option or Stock Purchase
Right would not otherwise be exercisable. In addition, the Administrator may
provide that any Company repurchase option applicable to any Shares purchased
upon exercise of an Option or Stock Purchase Right shall lapse as to all such
Shares, provided the proposed dissolution or liquidation takes place at the time
and in the manner contemplated. To the extent it has not been previously
exercised, an Option or Stock Purchase Right will terminate immediately prior to
the consummation of such proposed action.

                  (c)      Merger or Asset Sale. Subject to Section 15 below, in
the event of a merger of the Company with or into another corporation, or the
sale of substantially all of the assets of the Company (a "Merger"), each
outstanding Option and Stock Purchase Right shall be assumed or an equivalent
option or right substituted by the successor corporation or a Parent or
Subsidiary of the successor corporation (the "Successor Corporation"). In the
event that the Successor Corporation refuses to assume or substitute for the
Option or Stock Purchase Right, the Optionee shall fully vest in and have the
right to exercise the Option or Stock Purchase Right as to all of the Optioned
Stock, including Shares as to which it would not otherwise be vested or
exercisable. If an Option or Stock Purchase Right becomes fully vested and
exercisable in lieu of assumption or substitution in the event of a Merger, the
Administrator shall notify the Optionee in writing or electronically that the
Option or Stock Purchase Right shall be fully vested and exercisable for a
period of fifteen (15) days from the date of such notice, and the Option or
Stock Purchase Right shall terminate upon the expiration of such period. For the
purposes of this Section 14(c), the Option or Stock Purchase Right shall be
considered assumed if, following the Merger, the option or right confers the
right to purchase or receive, for each Share of Optioned Stock subject to the
Option or Stock Purchase Right immediately prior to the Merger, the
consideration (whether stock, cash, or other securities or property) received in
the Merger by holders of Common Stock for each Share held on the effective date
of the transaction (and if holders were offered a choice of consideration, the
type of consideration chosen by the holders of a majority of the outstanding
Shares); provided, however, that if such consideration received in the Merger is
not solely common stock of the Successor Corporation or its Parent, the
Administrator may, with the consent of the Successor Corporation, provide for
the consideration to be received upon the exercise of the Option or Stock
Purchase Right, for each Share of Optioned Stock subject to the Option or Stock
Purchase Right, to be solely common stock of the Successor Corporation or its
Parent equal in fair market value to the per share consideration received by
holders of Common Stock in the Merger.

         15.      Change of Control. In the event of a Change of Control, each
outstanding Option held by an Outside Director shall vest and become exercisable
in full as to all of the Optioned Stock, including Shares as to which the
Outside Director would not otherwise be vested or exercisable. If an Option
becomes fully vested and exercisable as provided in this paragraph, the
Administrator shall notify the Optionee in writing or electronically that the
Option shall be fully vested and exercisable for a period of fifteen (15) days
from the date of such notice, and the Option shall terminate upon the expiration
of such period.

                                       13

<PAGE>

         16.      Date of Grant. The date of grant of an Option or Stock
Purchase Right shall be, for all purposes, the date on which the Administrator
makes the determination granting such Option or Stock Purchase Right, or such
other later date as is determined by the Administrator. Notice of the
determination shall be provided to each Optionee within a reasonable time after
the date of such grant.

         17.      Amendment and Termination of the Plan.

                  (a)      Amendment and Termination. The Board may at any time
amend, alter, suspend or terminate the Plan.

                  (b)      Shareholder Approval. The Company shall obtain
shareholder approval of any Plan amendment to the extent necessary and desirable
to comply with Applicable Laws.

                  (c)      Effect of Amendment or Termination. No amendment,
alteration, suspension or termination of the Plan shall impair the rights of any
Optionee, unless mutually agreed otherwise between the Optionee and the
Administrator, which agreement must be in writing and signed by the Optionee and
the Company. Termination of the Plan shall not affect the Administrator's
ability to exercise the powers granted to it hereunder with respect to Options
granted under the Plan prior to the date of such termination.

         18.      Conditions Upon Issuance of Shares.

                  (a)      Legal Compliance. Shares shall not be issued pursuant
to the exercise of an Option or Stock Purchase Right unless the exercise of such
Option or Stock Purchase Right and the issuance and delivery of such Shares
shall comply with Applicable Laws and shall be further subject to the approval
of counsel for the Company with respect to such compliance.

                  (b)      Investment Representations. As a condition to the
exercise of an Option or Stock Purchase Right, the Company may require the
person exercising such Option or Stock Purchase Right to represent and warrant
at the time of any such exercise that the Shares are being purchased only for
investment and without any present intention to sell or distribute such Shares
if, in the opinion of counsel for the Company, such a representation is
required.

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

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

         21.      Shareholder Approval. The Plan shall be subject to approval
by the shareholders of the Company within twelve (12) months after the date the
Plan is adopted. Such shareholder approval shall be obtained in the manner and
to the degree required under Applicable Laws.

                                       14

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