Document:

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EXHIBIT (10)(iv)

                                SYNTELLECT, INC.
                              EXECUTIVE 401(K) PLAN

1.       PURPOSE

         The purpose of this Plan is to allow a select group of executives of
         Syntellect, Inc. to defer receipt of Compensation to which the
         executives would otherwise be entitled.

2.       DEFINITIONS

         Whenever referred to in this Plan, the following items shall have the
         meanings set forth below:

         2.1.     "Compensation" shall have the same meaning as it has under the
                  Salary Deferral Plan, without regard to any election made
                  under this Plan.

         2.2.     "Salary Deferral Plan" means the Syntellect, Inc. Salary
                  Deferral Plan, as amended from time to time.

         2.3.     "Employee" means an employee of Employer who has satisfied the
                  eligibility requirements of Section 3, below.

         2.4.     "Employer" means Syntellect, Inc. and any subsidiary that,
                  with the consent of the Board of Director of Syntellect,
                  adopts this Plan.

         2.5.     "Committee" means the Committee as provided in the Salary
                  Deferral Plan.

         2.6.     "Termination of Employment" means any voluntary or involuntary
                  termination of employment, including retirement or death of
                  the Employee, but does not include a transfer from Syntellect
                  to an affiliated company, from an affiliated company to
                  Syntellect or between affiliated companies.

         2.7.     "Deferral Date" means December of the year preceding the year
                  Compensation is deferred into the Employee's Deferred
                  Compensation Account.

         2.8.     "Payment Date" means the date selected by the Employee under
                  Section 4.5.

         2.9.     "Plan Year" means the calendar year.

3.       ELIGIBILITY

         3.1.     An Employee of Syntellect is eligible to participate in this
                  Plan if the Employee's position is Vice President or higher
                  rank as of the Deferral Date, reports directly to the
                  President of Syntellect, Inc. or holds the position of
                  President, and if the Committee so designates him/her for
                  participation.

         3.2.     If an Employee's position changes during the course of the
                  current Plan Year so that he/she is no longer a Vice President
                  or higher rank, he/she will cease to be eligible for this Plan
                  and any additional deferrals will cease.

         3.3.     If an Employee attains the position of Vice President or
                  higher rank after the Deferral Date, he/she will not be
                  eligible for participation in this Plan during the current
                  Plan Year.

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4.       ELECTION TO DEFER

         4.1.     An Employee may elect to defer receipt of Compensation by
                  completing the Deferral Election Form prescribed by the
                  Committee, specifying a percentage or fixed dollar amount of
                  weekly or other Compensation to be deferred during the
                  following Plan Year. Deferrals will commence on whichever of
                  the following dates the Employee elects at the time of
                  executing the Deferral Election Form:

                  4.1.1.   The first day of the calendar year for which the
                           election is made, or

                  4.1.2.   The first day of the payroll period following the
                           period during which the Employee's elective deferrals
                           under the Salary Deferral Plan reach the amount
                           specified in Section 402(g) of the Internal Revenue
                           Code.

         4.2.     The election must be made no later than the Deferral Date.

         4.3.     An election to defer shall be effective on the date the
                  Employee delivers a completed Deferral Election Form to the
                  Committee; provided, however, that if an Employee subsequently
                  delivers a properly completed Deferral Election Form to the
                  Committee before the Deferral Date, the latest dated Deferral
                  Election Form shall take effect. Once the Deferral Date has
                  passed, the elections made on the Deferral Election Form shall
                  be irrevocable.

         4.4.     A separate election to defer must be made for each Plan Year.

         4.5.     The Employee shall elect, when completing the Deferral
                  Election Form, to defer receipt of Compensation until one of
                  the following Payment Dates:

                  4.5.1.   Age 65,

                  4.5.2.   Termination of Employment,

                  4.5.3.   April 1 of any subsequent year(s) provided such date
                           is at least one year from the Deferral Date,

                  4.5.4.   The earlier of Section 4.5.1 or Section 4.5.2, or

                  4.5.5.   The earlier of Section 4.5.2 or Section 4.5.3.

         4.6.     The Employee shall elect, when completing the Deferral
                  Election Form, to receive his or her deferred Compensation in
                  a lump sum or in unequal or substantially equal annual
                  installments. The maximum number of installments shall be five
                  (5).

5.       DEFERRED COMPENSATION AMOUNTS

         5.1.     Compensation deferred pursuant to Section 4 shall be credited
                  to an account in the name of the Employee (the "Deferred
                  Compensation Account") established for this purpose on the
                  Employer's books. Compensation deferred shall be credited as
                  of the end of the month in which it otherwise would have been
                  paid.

         5.2.     The balance credited to each Deferred Compensation Account
                  when invested shall be credited weekly, or otherwise as
                  consistent with credits under the investment funds established
                  for this Plan, with a return on investment (or charged with an
                  investment loss). The measure of the investment return shall
                  be equal to the proportionate gain or loss of:

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                  5.2.1.   The investment funds established under the
                           Syntellect, Inc. Executive 401(k) Plan Account
                           established with M&I Trust of Arizona (the "Account")
                           or if there are no funds under the Account,

                  5.2.2.   The investment funds established under the Salary
                           Deferral Plan or if there is no such plan,

                  5.2.3.   Such objective measure as the Committee in its
                           discretion determines.

                  The Employer intends that the Account will be invested as
                  determined by the Committee in its discretion. Such
                  investments may be in seven funds comparable to those
                  established under the Salary Deferral Plan (or such number of
                  funds as are existing from time to time with respect to the
                  Salary Deferral Plan), and in such event for purposes of this
                  Section 5.2, the amounts credited to an Employee's Deferred
                  Compensation Account shall be allocated on the Employer's
                  books among the funds in such percentages as elected by the
                  Employee. The Employee may transfer his/her account balances
                  and/or change where his/her future contributions will be
                  invested among the investment funds up to four (4) times per
                  year on a form satisfactory to the Committee. The Committee,
                  however, retains the final authority in its sole discretion to
                  direct the allocation of the Employee's deferral. The
                  Employee's election may be given at such times as the
                  Committee establishes.

6.       EMPLOYER MATCHING CONTRIBUTIONS

         6.1.     At the end of each month, the Employee's Deferred Compensation
                  Account shall be credited with an Employer Matching
                  Contribution equal to the Compensation that the Employee has
                  deferred for such month, times the applicable Matching
                  Percentage in the following schedule.

<TABLE>
<CAPTION>
                  Employee's Deferral                Matching Percentage
                  -------------------                -------------------
<S>                                                  <C>
                  2% of Compensation                 2.0% of Compensation
                  3%                                 2.5%
                  4%                                 3.0%
                  5% and up                          3.5%
</TABLE>

                  For purposes of the above schedule, the "Employee's Deferral"
                  shall be based on the Employee's elective deferrals under this
                  Plan only.

         6.2.     An Employee's Matching Contribution Account shall be credited
                  with an investment return in the same manner as Deferred
                  Compensation Accounts under Section 5.2 and, to the extent
                  vested, shall be paid out pursuant to Section 7.

         6.3.     Employer Matching Contributions shall be vested 33 1/3% per
                  year on December 31 of the first year following the calendar
                  year in which the Participant was first eligible to
                  participate in the Plan, and 33 1/3% additional vesting per
                  year following. For example, if a Participant was first
                  eligible to participate in 2000, their Employer Matching
                  Contributions will be vested 33 1/3% on December 31, 2001; 66
                  2/3% vested on December 31, 2002, and 100% vested on December
                  31, 2003.

                  Employer Matching Contribution shall also be 100% vested on
                  the day the Employee attains age 65, dies or becomes totally
                  and permanently disabled while employed by Syntellect, Inc. or
                  an affiliate.

                  Any amounts that are not vested will be forfeited upon
                  Termination of Employment and shall not be restored upon
                  subsequent reemployment with the Employer or an affiliate. In
                  the event of any forfeiture of Employer Matching
                  Contributions, such forfeited amounts shall be used to reduce
                  future Employer Matching Contributions or as otherwise
                  directed by the Committee.

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7.       PAYMENT OF DEFERRED COMPENSATION ACCOUNTS

         7.1.     Amounts credited to an Employee's Deferred Compensation
                  Account and the vested portion of the Employer's Matching
                  Contributions shall be distributed as specified on the
                  Employee's Deferral Election form or upon the earlier
                  occurrence of a terminating event specified below. Any such
                  payment shall be subject to the terms and conditions of this
                  Section 7.

         7.2.     If an Employee has elected to receive his or her Deferred
                  Compensation Account in installments, the first installment of
                  the vested portion of his or her account shall be distributed
                  within 60 days of the April 1 coinciding with or next
                  following the Payment Date; provided, however, that if the
                  Payment Date occurs within ninety days of April 1, the
                  Committee shall instead make the payment within 60 days of the
                  Payment Date. Subsequent installment payments shall be made
                  within 60 days of each subsequent April 1, regardless of the
                  date on which the first installment is paid. The "Payment
                  Date" for all subsequent installments shall be April 1.

         7.3.     Notwithstanding the Employee's Deferral Election Form, in the
                  case of Termination of Employment before the Employee attains
                  age 65, the Committee may in its discretion accelerate the
                  time and manner in which the amounts credited to an Employee's
                  Deferred Compensation Account will be distributed. If the
                  Committee decides in its discretion to distribute such
                  Deferred Compensation Account balance amounts in installments,
                  the Committee shall determine the regularity of the
                  installment payments and the length of the installment period,
                  provided, however, that the installment period shall not
                  exceed three years.

         7.4.     The unpaid balance of all Deferred Compensation Accounts
                  payable in installments, whether by the Employee's election or
                  by the Committee's exercise of its discretion under Section
                  7.3 above, shall continue to be credited with an investment
                  return as described in Section 5.2 above.

         7.5.     If an Employee dies before all of the amounts credited to his
                  or her Deferred Compensation Account have been distributed,
                  such unpaid portion shall be paid to the beneficiary
                  designated on the Employee's Beneficiary Designation Form. If
                  no such beneficiary has been designated, such unpaid balance
                  shall be paid to the Employee's designated beneficiary under
                  Syntellect's group life insurance program, if any, and if none
                  is designated (or if the designation fails) then to the
                  Employee's spouse and if there is no spouse, to the Employee's
                  estate. Payments made under this Section will be made in the
                  same form and at the same time(s) as such payments would have
                  been made if the Employee were still living on the date each
                  payment is made; provided, however, that in the event the
                  deceased Employee's Deferral Election Form calls for a lump
                  sum payment in the future or for payment in installments, the
                  Committee may, in its sole discretion, distribute the balance
                  credited to the Employee's Deferred Compensation Account to
                  the Employee's beneficiary in a lump sum as soon as
                  practicable after the Employee's death.

         7.6.     In the event of an "unforeseeable emergency," a Participant
                  may apply to the Committee for a distribution of part or all
                  of his or her Account prior to the date that it would
                  otherwise be distributed under this Section 7. If the
                  Committee approves such an application, it will make such
                  distribution as a lump sum cash payment.

                  7.6.1.   An "unforeseeable emergency" means a severe financial
                           hardship to the Participant resulting from a sudden
                           and unexpected illness or accident of the Participant
                           or of a dependent (as defined in Section 152(a) of
                           the Code) of the Participant, loss of the
                           Participant's property due to casualty, or other
                           similar extraordinary and unforeseeable circumstances
                           arising as a result of events beyond the control of
                           the Participant.

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                  7.6.2.   The circumstances that will constitute an
                           unforeseeable emergency will depend on the facts of
                           each case, but, in no event will the Committee
                           approve any distribution to the extent that the
                           hardship is or may be relieved through reimbursement
                           or Compensation by insurance or otherwise, or by
                           liquidation of the Participant's assets, to the
                           extent that the liquidation of such assets would not
                           itself cause severe financial hardship.

                  7.6.3.   Examples of foreseeable circumstances which result in
                           normally budgetable expenditures and are not
                           considered to be unforeseeable emergencies include,
                           but are not limited to, the need to send a
                           Participant's child to college or the desire to
                           purchase a home or automobile.

                  7.6.4.   Any amount approved for distribution under this
                           Section 7.6 will be limited to that amount necessary
                           to meet the emergency.

                           The employee shall submit a written request to the
                           Committee and shall certify as to the financial need.
                           The Committee shall have sole discretion to determine
                           whether to make a hardship distribution from an
                           Employee's Deferred Compensation Account and to
                           determine the amount of such distribution, if any.
                           The Committee's decision shall be final and binding
                           on all interested parties. This Section 7.6
                           supersedes the irrevocability provisions of Section
                           4.3 but only to the extent of the hardship
                           distribution.

         7.7.     If the Employee is employed by Syntellect or an affiliate on
                  any Payment Date, the unvested portion of his or her Deferred
                  Compensation Account relative to a particular payment shall
                  not be payable until it becomes vested. Once an amount becomes
                  vested it shall be paid to the Employee in accordance with his
                  election. However, if the date(s) specified in the Employee's
                  election is past, the remaining portion of his or her account
                  relative to any prior payments which has now become vested,
                  shall be paid within 60 days of the next subsequent April 1.

8.       PLAN ADMINISTRATION

         8.1.     This Plan shall be adopted by or pursuant to the authorization
                  of the Board of Directors of Employer and shall be
                  administered by the Committee.

         8.2.     This Plan may be amended in any way or may be terminated in
                  whole or in part, at any time, in the discretion of the
                  Committee. No amendment or termination of the Plan shall
                  adversely affect the amount in any Deferred Compensation
                  Account prior to or as of the effective date of such amendment
                  or termination.

         8.3.     The Committee shall have the sole authority, in its
                  discretion, to adopt, amend and rescind such rules and
                  regulations as it deems advisable in the administration of the
                  Plan, to construe and interpret the Plan, the rules and
                  regulations, and Deferral Election Forms, and to make all
                  other determinations deemed necessary or advisable for the
                  administration of the Plan. All decisions, determinations, and
                  interpretations of the Committee shall be binding on all
                  persons. The Committee may delegate its responsibilities as it
                  sees fit.

9.       NO FUNDING OBLIGATION

         9.1.     It is the intent of the Committee to establish the Syntellect,
                  Inc. Executive 401(k) Plan Account with M&I Trust of Arizona
                  for purposes of investing the Employee's Deferred Compensation
                  Account in the investment funds as established under the
                  Salary Deferral Plan or with investment funds which closely
                  approximate the objectives of the funds established under the
                  Salary Deferral Plan.

         9.2.     While it is the Committee's intent to establish an account in
                  accordance with Section 9.1, the Employer is under no
                  obligation to transfer amounts credited to the Employee's
                  Deferred Compensation Account to any account, trust or escrow
                  account, and the Employer is under no

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                  obligation to secure any amount credited to an Employee's
                  Deferred Compensation Account by any specific assets of any
                  Employer, or any assets in which any Employer has an interest.
                  This Plan shall not be construed to require the Employer to
                  fund any of the benefits provided hereunder nor to establish a
                  trust for such purpose. The Employer may make such
                  arrangements as it desires to provide for the payment of
                  benefits. Neither the Employee nor his or her estate shall
                  have any rights against the Employer with respect to any
                  portion of the Deferred Compensation Account except as a
                  general unsecured creditor. No Employee has an interest in his
                  or her Deferred Compensation Account until the Employee
                  actually receives the deferred payment. Neither the Employee
                  nor his or her estate shall have any legal or equitable rights
                  against any member of the Committee or the Syntellect Board of
                  Directors.

10.      NON-ALIENATION OF BENEFITS

         No benefit under this Plan may be sold, assigned, transferred,
         conveyed, hypothecated, encumbered, anticipated, or otherwise disposed
         of, and any attempt to do so shall be void. No such benefit shall,
         prior to receipt thereof by an Employee, be in any manner subject to
         the debts, contracts, liabilities, engagements, or torts of such
         Employee.

11.      LIMITATION OF RIGHTS

         Nothing in this Plan shall be construed to limit in any way the right
         of the Employer to terminate an Employee's employment at any time for
         any reason whatsoever with or without cause; nor shall it be evidence
         of any agreement or understanding, express or implied, that the
         Employer (i) will employ an Employee in any particular position, (ii)
         will ensure participation in any incentive program(s), or (iii) will
         grant any awards from such program(s).

12.      APPLICABLE LAW

         This Plan shall be construed and its provision enforced and
         administered in accordance with the law of the State of Arizona except
         as otherwise provided in the Employee Retirement Income Security Act of
         1974, as amended.

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EXHIBIT (10)(v)

                                 SYNTELLECT INC.
                         NONEMPLOYEE DIRECTOR STOCK PLAN
                        (AS AMENDED THROUGH JUNE 1, 2000)

                 ARTICLE I ESTABLISHMENT, PURPOSE, AND DURATION

         1.1. Establishment of the Plan. Syntellect Inc. a Delaware corporation,
hereby establishes the Syntellect Inc. Nonemployee Director Stock Plan (the
"Plan") for the benefit of its Nonemployee Directors. The Plan sets forth the
terms of one-time and annual grants of Nonqualified Stock Options to Nonemployee
Directors. All such grants are subject to the terms and provisions set forth in
this Plan.

         1.2. Purpose of the Plan. The purpose of the Plan is to encourage
ownership in the Company by Nonemployee Directors, to strengthen the ability of
the Company to attract and retain the services of experienced and knowledgeable
individuals as Nonemployee Directors of the Company, and to provide Nonemployee
Directors with a further incentive to work for the best interests of the Company
and its shareholders.

         1.3. Effective Date. The Plan is effective as of the date approved by
the Company's shareholders (the "Effective Date"). The Plan will be deemed to be
approved by the shareholders if it receives the affirmative vote of the holders
of a majority of the shares of stock of the Company present, or represented, and
entitled to vote at a meeting duly held in accordance with the applicable
provisions of the Delaware General Corporation Law and the Company's By-Laws and
Certificate of Incorporation. Any Awards granted under the Plan prior to
shareholder approval are effective when made, but no Award may be exercised or
settled before shareholder approval. If the shareholders fail to approve the
Plan, any Award previously made shall be automatically cancelled without any
further act.

         1.4. Duration of the Plan. The Plan shall remain in effect until such
time as the Plan is terminated by the Board of Directors pursuant to Article 7
or Section 8.4.

                     ARTICLE 2 DEFINITIONS AND CONSTRUCTION

         2.1. Definitions. For purposes of the Plan, the following terms will
have the meanings set forth below:

                  (a) "Award" means a grant of Nonqualified Stock Options under
         the Plan.

                  (b) "Board" or "Board of Directors" means the Board of
         Directors of the Company, and includes any committee of the Board of
         Directors designated by the Board to administer this Plan.

                  (c) "Change of Control" means and includes each of the
         following:

                           (1) there shall be consummated any consolidation or
                  merger of the Company in which the Company is not the
                  continuing or surviving entity, or pursuant to which Stock
                  would be converted into cash, securities or other property,
                  other than a merger of the Company in which the holders of the
                  Company's Stock immediately prior to the merger have the same
                  proportionate ownership of beneficial interest of common stock
                  or other voting securities of the surviving entity immediately
                  after the merger;

                           (2) there shall be consummated any sale, lease,
                  exchange or other transfer (in one transaction or a series of
                  related transactions) of assets or earning power aggregating
                  more than 40% of the assets or earning power of the Company
                  and its subsidiaries (taken as a whole);

                           (3) the shareholders of the Company shall approve any
                  plan or proposal for liquidation or dissolution of the
                  Company;

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                           (4) any person (as such term is used in Section 13(d)
                  and 14(d)(2) of the Exchange Act), other than any employee
                  benefit plan of the Company or any subsidiary of the Company
                  or any entity holding shares of capital stock of the Company
                  for or pursuant to the terms of any such employee benefit plan
                  in its role as an agent or trustee for such plan, shall become
                  the beneficial owner (within the meaning of Rule 13d-3 under
                  the Exchange Act) of 20% or more of the Company's outstanding
                  Stock; or

                           (5) during any period of two consecutive years,
                  individuals who at the beginning of such period shall fail to
                  constitute a majority thereof, unless the election, or the
                  nomination for election by the Company's shareholders, of each
                  new director was approved by a vote of at least two-thirds of
                  the directors then still in office who were directors at the
                  beginning of the period.

                  (d) "Code" means the Internal Revenue Code of 1986, as amended
         from time to time.

                  (e) "Committee" means the committee appointed by the Board to
         administer the Plan.

                  (f) "Company" means Syntellect Inc., a Delaware corporation,
         or any successor as provided in Section 8.3.

                  (g) "Disability" means a permanent and total disability,
         within the meaning of Section 22(e)(3) of the Code. To the extent
         permitted pursuant to Section 16 of the Exchange Act, Disability shall
         be determined by the Board in good faith, upon receipt of sufficient
         competent medical advice from one or more individuals, selected by the
         Board, who are qualified to give professional medical advice.

                  (h) "Exchange Act" means the Securities Exchange Act of 1934,
         as amended from time to time, or any successor provision.

                  (i) "Fair Market Value" means the closing price for Shares on
         the relevant date, or (if there were no sales on such date) the closing
         price on the immediately preceding date on which such sales occurred,
         as reported in The Wall Street Journal or a similar publication
         selected by the Committee.

                  (j) "Grant Date" means, for Options issued under Section 6.1,
         the third business day after the date the Nonemployee Director is
         elected or appointed to the Board of Directors, and for Options issued
         under Section 6.2, June 1, 1995 and each anniversary of that date
         through and including June 1, 1998.

                  (k) "Nonemployee Director" means any individual who is a
         member of the Board of Directors of the Company, but who is not
         otherwise an employee of the Company.

                  (l) "Nonqualified Stock Option" or "NQSO" means an option to
         purchase Shares, granted under Article 6, that is not intended to be an
         incentive stock option qualifying under Section 422 of the Code.

                  (m) "Option" means a Nonqualified Stock Option granted under
         the Plan.

                  (n) "Participant" means a Nonemployee Director of the Company
         who has been granted an Award under the Plan.

                  (o) "Shares" means the shares of the Company's common stock
         described in the Company's Certificate of Incorporation.

         2.2. Gender and Number. Except as indicated by the context, any
masculine term also shall include the feminine, the plural shall include the
singular, and the singular shall include the plural.

         2.3. Severability of Provisions. With respect to persons subject to
Section 16 of the Exchange Act, transactions under this Plan are intended to
comply with all applicable conditions of Rule 16b-3 or its successors

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under the Exchange Act. To the extent any provision of the Plan or action by the
Board fails to so comply, it shall be deemed null and void, to the extent
permitted by law and deemed advisable by the Board, and the remaining provisions
of the Plan or actions by Board shall be construed and enforced as if the
invalid provision or action had not been included or undertaken.

         2.4. Incorporation by Reference. In the event this Plan does not
include a provision required by Rule 16b-3 to be stated herein, such provision
(other than one relating to eligibility requirements or the price and amount of
Awards) shall be deemed automatically to be incorporated by reference herein,
insofar as Participants subject to Section 16 of the Exchange Act are concerned.

                            ARTICLE 3 ADMINISTRATION

         3.1. The Committee. The Plan will be administered by the Committee,
subject to the restrictions set forth in the Plan.

         3.2. Administration by the Committee. The Committee has the full power,
discretion, and authority to interpret and administer the Plan in a manner that
is consistent with the Plan's provisions. However, the Committee does not have
the power to (i) determine Plan eligibility, or to determine the number, the
price, the vesting period, or the timing of Awards to be made under the Plan to
any Participant or (ii) take any action that would result in the Awards not
being treated as "formula awards" within the meaning of Rule 16b3(c)(ii) or any
successor provision, promulgated pursuant to the Exchange Act.

         3.3. Decisions Binding. The Committee's determinations and decisions
under the Plan, and all related orders or resolutions of the Board shall be
final, conclusive, and binding on all persons, including the Company, its
stockholders, employees, Participants, and their estates and beneficiaries.

                      ARTICLE 4 SHARES SUBJECT TO THE PLAN

         4.1. Number of Shares. The total number of Shares available for grant
under the Plan may not exceed 50,000, subject to adjustment as provided in
Section 4.3. The Shares issued pursuant to the exercise of Options granted under
the Plan may be authorized and unissued Shares or Shares reacquired by the
Company, as determined by the Committee.

         4.2. Lapsed Awards. If any Option granted under the Plan terminates,
expires, or lapses for any reason, any Shares subject to purchase pursuant to
such Option again will be available for grant under the Plan.

         4.3. Adjustments in Authorized Shares. In the event of any merger,
reorganization, consolidation, recapitalization, separation, liquidation, stock
dividend, split-up, Share combination, or other change in the corporate
structure of the Company affecting the Shares, the number and/or type of Shares
subject to any outstanding Award, and the Option exercise price per Share under
any outstanding Option will be automatically adjusted so that the proportionate
interests of the Participants will be maintained as before the occurrence of
such event.

                     ARTICLE 5 ELIGIBILITY AND PARTICIPATION

         5.1. Eligibility. Eligibility to participate in the Plan is limited to
Nonemployee Directors.

         5.2. Actual Participation. All eligible Nonemployee Directors will
receive a grant of Options pursuant to Article 6.

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                           ARTICLE 6 GRANT OF OPTIONS

         6.1. One-Time Grant of Options. An Option to purchase 10,000 Shares
shall be granted to each Nonemployee Director on the third business day after
the date the Nonemployee Director is first elected or appointed to the Board of
Directors. The specific terms of the Options are subject to the provisions of
this Article 6 and the Option Agreement executed pursuant to Section 6.3.

         6.2. Annual Grant of Options. Each individual who is a Nonemployee
Director on the relevant Grant Date will be granted an Option to purchase 2,000
Shares, subject to the limitations on the number of Shares that may be awarded
under the Plan. The specific terms of the Options are subject to the provisions
of this Article 6 and the Option Agreement executed pursuant to Section 6.3.

         6.3. Option Agreement. The grant of Options will be evidenced by an
Option Agreement that will not include any terms or conditions that are
inconsistent with the terms and conditions of this Plan.

         6.4. Option Exercise Price Per Share. The Option exercise price per
Share under any Option granted pursuant to this Article 6 shall be the Fair
Market Value of such Share on the Grant Date (the "Exercise Price").

         6.5. Duration of Options. Each Option granted to a Participant under
this Article 6 shall expire on the sixth (6th) anniversary date of the Grant
Date, unless the Option is earlier terminated, forfeited, or surrendered
pursuant to a provision of this Plan.

         6.6. Vesting of Options Subject to Exercise. Subject to Section 1.3,
the Options granted to the Participants under this Article 6 shall vest and
become subject to exercise in accordance with the following schedule:

No part of (i) an Option granted under Section 6.1, or (ii) each annual Option
granted under Section 6.2 may be exercised until the first anniversary of the
Grant Date of such Option, at which time 24% of the Shares subject to the Option
shall vest and may be acquired upon exercise. Thereafter, an additional 2% of
the Shares subject to the Option shall vest per month may be acquired upon
exercise until the Option is fully vested.

         6.7. Exercise of Disposition of Options. Participants shall be entitled
to exercise any Option that has vested at any time within the period beginning
with the Grant Date and ending six (6) years after the Grant Date; provided,
however, that the disposition by a Participant of any Shares acquired pursuant
to the exercise of an Option shall occur only after the end of the six (6) month
period beginning on the date that Company's shareholders approve the Plan.

         6.8. Payment. Options are exercised by delivering a written notice of
exercise to the Secretary of the Company, setting forth the number of Options to
be exercised and accompanied by a payment equivalent to the product of the
number of Options exercised multiplied by the Exercise Price (the "Total
Exercise Price"). The Total Exercise Price is payable:

                  (a) in cash or its equivalent;

                  (b) by tendering previously acquired Shares having a Fair
         Market Value at the time of exercise equal to the Total Exercise Price;

                  (c) by a combination of (a) and (b).

                  As soon as practicable after receipt of a written notification
         of exercise and full payment, the Company shall deliver to the
         Participant, in the Participant's name, Share certificates in an
         appropriate amount based upon the number of Shares purchased pursuant
         to the exercise of the Options.

         6.9. Restrictions on Share Transferability. To the extent necessary to
ensure that Options granted under this Article 6 comply with applicable law, the
Board shall impose restrictions on the transferability of any Shares acquired
pursuant to the exercise of an Option under this Article 6, including, without
limitation, restrictions

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under applicable Federal securities laws, under the requirements of any Stock
exchange or market upon which such Shares are then listed and/or traded, and
under any blue sky or state securities laws applicable to such Shares.

         6.10. Termination of Services on Board of Directors Due to Death or
Disability. If a Participant's service on the Board is terminated by reason of
death or Disability, any outstanding Options held by the Participant that are
not fully vested are immediately forfeited and returned to the Company. Any
outstanding options held by the Participant that are fully vested will remain
fully vested and subject to exercise.

         To the extent an Option is fully vested and exercisable as of the date
of death or Disability, it will remain exercisable for one year after the date
of death or Disability by the Participant or such person or persons as shall
have been named as the Participant's legal representative or beneficiary, or by
such persons as shall have acquired the Participant's Options by will or by the
laws of descent and distribution. Any Option that is fully vested but not
exercised during this one-year period after death or Disability will be
immediately forfeited to the Company.

         6.11. Termination of Service on Board of Directors for Other Reasons.
If the Participant's service on the Board is terminated for any reason other
than for death or Disability, any outstanding Options held by the Participant
that are not fully vested as of the date of termination are immediately
forfeited to the Company. To the extent an Option is fully vested and
exercisable as of such date, it will remain exercisable for ninety (90) days
after the date the Participant's service on the Board terminates. Any Option
that is fully vested but not exercised during this ninety (90) day period after
termination of service will be immediately forfeited to the Company.

         6.12. Limitations on the Transferability of Options. No Option granted
under this Article 6 may be sold, transferred, pledged, assigned, or otherwise
alienated, other than by will, the laws of descent and distribution, or under
any other circumstances allowed by the Committee that would not violate the
transferability restrictions contained in Rule 16b-3(a)(2) or any successor
provision.

         6.13. Change of Control. A Change of Control shall cause every Option
outstanding hereunder to become fully exercisable and allow each Participant the
right to exercise an Option prior to the occurrence of the event otherwise
terminating the Option.

               ARTICLE 7 AMENDMENT, MODIFICATION, AND TERMINATION

         7.1. Amendment, Modification, and Termination. Subject to the terms set
forth in this Section 7.1, the Committee may terminate, amend, or modify the
Plan at any time; provided, however, that shareholder approval is required for
any Plan amendment that would materially increase the benefits to Participants
or the number of securities that may be issued, or materially modify the
eligibility requirements in the Plan. Further, Plan provisions relating to the
amount, price, and timing of securities to be awarded under the Plan may not be
amended more than once every six (6) months, other than to comport with changes
in the Code, the Employee Retirement Income Security Act, or the rules
thereunder.

         7.2. Awards Previously Granted. Unless required by law, no termination,
amendment, or modification of the Plan shall in any manner adversely affect any
Award previously granted under the Plan, without the written consent of the
Participant holding the Award.

                             ARTICLE 8 MISCELLANEOUS

         8.1. Indemnification. Each individual who is or shall have been a
member of the Board or the Committee shall be indemnified and held harmless by
the Company against and from any loss, cost, liability, or expense that may be
imposed upon or reasonably incurred by him or her in connection with or
resulting from any claim, action, suit, or proceeding to which he or she may be
a party or in which he or she may be involved by reason of any action taken or
failure to act under this Plan and against and from any and all amounts paid by
him or her in settlement thereof, with the Company's approval, or paid by him or
her in satisfaction of any judgment in any such action, suit, or proceeding
against him or her, provided he or she shall give the Company an opportunity, at
its own expense, to assume and defend the same before he or she undertakes to
defend it on his or her own behalf.

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<PAGE>   6
         The foregoing right if indemnification shall not be exclusive of any
other rights of indemnification to which such individuals may be entitled under
the Company's Certificate of Incorporation or By-Laws, as a matter of law, or
otherwise, or any power that the Company may have to indemnify them or hold them
harmless.

         8.2. Beneficiary Designation. Each Participant under the Plan may name
any beneficiary or beneficiaries to whom any benefit under the Plan is to be
paid in the event of his or her death. Each designation will revoke all prior
designations by the same Participant, shall be in a form prescribed by the
Committee, and will be effective only when filed by the Participant in writing
with the Committee during his or her lifetime. In the absence of any such
designation, benefits remaining unpaid at the Participant's death shall be paid
to the Participant's estate.

         8.3. Successors. All obligations of the Company under the Plan, with
respect to Awards granted hereunder, shall be binding on any successor to the
Company, whether the existence of such successor is the result of a direct or
indirect purchase, merger, consolidation, or otherwise, of all or substantially
all of the business and/or assets of the Company.

         8.4. Requirements of Law. The granting of Awards under the Plan shall
be subject to all applicable laws, rules, and regulations, and to such approvals
by any governmental agencies or national securities exchanges as may be
required. Notwithstanding any other provision of the Plan, the Committee may, in
its sole discretion, terminate, amend, or modify the Plan in any way necessary
to comply with the applicable requirements of Rule 16b-3 promulgated by the
Securities and Exchange Commission as interpreted pursuant to no-action letters
and interpretive releases.

         8.5. Governing Law. To the extent not preempted by Federal law, the
Plan, and all agreements hereunder, shall be construed in accordance with and
governed by the laws of the State of Arizona.

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