Document:

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                                                                    EXHIBIT 10.5

                           PRINCETON VIDEO IMAGE, INC.

                         AMENDED 1993 STOCK OPTION PLAN

         1. Purposes of the Plan. The purposes of this Stock Option Plan are to
attract and retain the best available personnel for positions of substantial
responsibility, to provide additional incentive to Employees and Consultants of
the Company and its Subsidiaries and to promote the success of the Company's
business. Options granted under the Plan may be Incentive Stock Options (as
defined under Section 422 of the Code) or Non-Statutory Stock Options, as
determined by the Administrator at the time of grant of an option and subject to
the applicable provisions of Section 422 of the Code, as amended, and the
regulations promulgated thereunder.

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

                  (a) "Administrator" means the Board or any of its Committees
appointed pursuant to Section 4 of the Plan.

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

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

                  (d) "Committee" means the Committee appointed by the Board in
accordance with paragraph (a) of Section 4 of the Plan.

                  (e) "Common Stock" means the Common Stock of the Company.

                  (f) "Company" means Princeton Video Image, Inc., a New Jersey
corporation.

                  (g) "Consultant" means any person, including an advisor, who
is engaged by the Company or any Parent or Subsidiary to render services and is
compensated for such services, and any director of the Company whether
compensated for such services or not provided that if and in the event the
Company registers any class of any equity security pursuant to the Exchange Act,
the term Consultant shall thereafter not include directors who are not
compensated for their services or are paid only a director's fee by the Company.

                  (h) "Continuous Status as an Employee" means the absence of
any interruption or termination of the employment relationship by the Company or
any

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Subsidiary. Continuous Status as an Employee shall not be considered interrupted
in the case of: (i) sick leave; (ii) military leave; (iii) any other leave of
absence approved by the Board, provided that such leave is for a period of not
more than ninety (90) days, unless reemployment upon the expiration of such
leave is guaranteed by contract or statute, or unless provided otherwise
pursuant to Company policy adopted from time to time; or (iv) in the case of
transfers between locations of the Company or between the Company, its
Subsidiaries or its successor.

                  (i) "Date of Grant" means the date on which an Option is
granted under this Plan pursuant to Section 13 of the Plan.

                  (j) "Employee" means any person, including officers and
directors, employed by the Company or any Parent or Subsidiary of the Company.
The payment of a director's fee by the Company shall not be sufficient to
constitute "employment" by the Company.

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

                  (l) "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 National Market System of the National Association of Securities
Dealers, Inc. Automated Quotation ("NASDAQ") System, 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 system or exchange for the last market trading day
prior to such date as reported in the Wall Street Journal or such other source
as the Administrator deems reliable or;

                             (ii) If the Common Stock is quoted on the NASDAQ
System (but not on the National Market System thereof) or regularly quoted by a
recognized securities dealer but selling prices are not reported, its Fair
Market Value shall be the mean between the high and low asked prices for the
Common Stock for the last market trading day prior to such date or;

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

                  (m) "Incentive Stock Option" means an Option intended to
qualify as an incentive stock option within the meaning of Section 422 of the
Code.

                  (n) "Non-Statutory Stock Option" means an Option not intended
to qualify as an Incentive Stock Option.

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

                  (p) "Option Agreement" shall mean the agreement which must be
entered into between the Optionee and the Company upon the grant of an Option by
the Company to the Optionee pursuant to Section 17 of the Plan.

                  (q) "Optioned Stock" means the Common Stock subject to an
Option.

                  (r) "Optionee" means a person who receives an Option.

                  (s) "Parent" means a "parent corporation", whether now or
hereafter existing, as defined in Section 424(e) of the Code.

                  (t) "Plan" means this 1993 Stock Option Plan.

                  (u) "Share" means a share of the Common Stock, as adjusted in
accordance with Section 12 of the Plan.

                  (v) "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. Subject to the provisions of Section 12
of the Plan, the maximum aggregate number of shares which may be optioned and
sold under the Plan is 2,160,000 shares of Common Stock. The shares may be
authorized, but unissued, or reacquired Common Stock.

                  If an Option should expire or become unexercisable for any
reason without having been exercised in full, the unpurchased Shares which were
subject thereto shall, unless the Plan shall have been terminated, become
available for future grant under the Plan.

         4. Administration of the Plan.

                  (a)        Procedure.

                             (i) Administration With Respect to Directors and
Officers. With respect to grants of Options to Employees or Consultants who are
also officers or directors of the Company, the Plan shall be administered by (A)
the Board or (B) a Committee designated by the Board to administer the Plan,
which Committee shall be constituted in such a manner (A) as to permit
transactions under the Plan to qualify for the exemption from Section 16(b) of
the Exchange Act pursuant to Rule 16b-3 promulgated thereunder ("Rule 16b-3")
and (B) to satisfy the legal requirements relating to the administration of
incentive stock option plans, of New Jersey corporate and

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securities laws and of the Code (the "Applicable Laws"). Once appointed, such
Committee shall continue to serve in its designated capacity until otherwise
directed by the Board. From time to time the Board may increase the size of the
Committee and appoint additional members thereof, remove members (with or
without cause) and appoint new members in substitution therefor, fill vacancies,
however caused, and remove all members of the Committee and thereafter directly
administer the Plan, all to the extent permitted by the Applicable Laws and Rule
16b-3.

                             (ii) Multiple Administrative Bodies.  If permitted
by Rule 16b-3, the Plan may be administered by different bodies with respect to
directors, non-director officers and Employees and Consultants who are neither
directors nor officers.

                             (iii) Administration With Respect to Consultants
and Other Employees. With respect to grants of Options to Employees or
Consultants who are neither directors nor officers of the Company, the Plan
shall be administered by (A) the Board or (B) a Committee designated by the
Board, which Committee shall be constituted in such a manner as to satisfy the
Applicable Laws. Once appointed, such Committee shall continue to serve in its
designated capacity until otherwise directed by the Board. From time to time the
Board may increase the size of the Committee and appoint additional members
thereof, remove members (with or without cause) and appoint new members in
substitution therefor, fill vacancies, however caused, and remove all members of
the Committee and thereafter directly administer the Plan, all to the extent
permitted by the Applicable Laws.

                             (iv) Formula Awards to Directors.

                                      (A) Each person who on October 1, 1999 was
a nominee for election as a director at the Company's 1999 annual meeting of
shareholders shall be granted a Non-Statutory Stock Option to purchase 10,000
Shares. The Date of Grant of such Option shall be October 1, 1999. Each such
Option shall vest and become exercisable in equal increments of 2,500 Shares on
the date of each Board meeting attended by such person following his election or
reelection as a director at the Company's 1999 annual meeting of shareholders,
provided that on the date of such Board meeting the director is serving as a
director of the Company. Options that have not vested on or before the day
preceding the 2000 annual meeting of shareholders of the Company following such
director's election or reelection shall expire.

                                      (B) On the date of a director's election,
reelection or appointment to the Board, such director shall be granted a
Non-Statutory Stock Option to purchase 10,000 Shares. The Date of Grant of such
Option shall be the date of such director's election, reelection or appointment
to the Board. Each such Option shall vest and become exercisable in equal
increments of 2,500 Shares on the date of each Board meeting attended by such
director following such director's election, reelection or appointment provided
that on such date the director is serving as a director of the

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Company. Options that have not vested on or before the day preceding the first
annual meeting of shareholders of the Company following such director's
election, reelection or appointment shall expire. Any director or nominee who
has been granted an Option pursuant to Section 4(a)(iv)(A) shall not be granted
an Option under this Section 4(a)(iv)(B) before the date of the 2000 annual
meeting of shareholders of the Company.

                                      (C) Options granted pursuant to this
Section 4(a)(iv) shall have a per share exercise price equal to the Fair Market
Value per share on the Date of Grant and, shall, expire ten years from the Date
of Grant or on such earlier date as is provided in Section 4(a)(iv)(A),
4(a)(iv)(B) or Section 7 hereof. Once an Option granted pursuant to this
Section, or any portion thereof, has become exercisable, it shall remain
exercisable regardless of whether or not the director holding the Option later
ceases to be a director of the Company.

                  (b) Powers of the Administrator. Subject to the provisions of
the Plan and in the case of a Committee, 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 of the
Common Stock, in accordance with Section 2(l) of the Plan;

                             (ii) to select the Consultants and Employees to
whom Options may from time to time be granted hereunder;

                             (iii) to determine whether and to what extent
Options are granted hereunder;

                             (iv) to determine the number of shares of Common
Stock to be covered by each such Option granted hereunder;

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

                             (vi) to determine the terms and conditions, not
inconsistent with the terms of the Plan, of any Option granted hereunder
(including, but not limited to, the share price and any restriction or
limitation or waiver of forfeiture restrictions regarding any Option and/or the
shares of Common Stock relating thereto, based in each case on such factors as
the Administrator shall determine, in its sole discretion);

                             (vii) to determine whether and under what
circumstances an Option may be settled in cash under subsection 9(f) instead of
Common Stock;

                             (viii) to determine whether, to what extent and
under what circumstances Common Stock and other amounts payable with respect to
an Option under this Plan shall be deferred either automatically or at the
election of the participant

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(including providing for and determining the amount, if any, of any deemed
earnings on any deferred amount during any deferral period); and

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

                  (c) Effect of Committee's Decision. All decisions,
determinations and interpretations of the Administrator shall be final and
binding on all Optionees and any other holders of any Options.

         5.       Eligibility.

                  (a) Non-Statutory Stock Options may be granted to Employees
and Consultants and directors and officers who are not Employees or Consultants.
Incentive Stock Options may be granted only to Employees. An Employee or
Consultant who has been granted an Option may, if he is otherwise eligible, be
granted an additional Option or Options.

                  (b) Each Option shall be designated in the Option Agreement as
either an Incentive Stock Option or a Non-Statutory Stock Option. However,
notwithstanding such designations, to the extent that the aggregate Fair Market
Value of the Shares with respect to which Options designated as Incentive Stock
Options are exercisable for the first time by any optionee during any calendar
year (under all plans of the Company or any Parent or Subsidiary) exceeds
$100,000, such excess Options shall be treated as Non-Statutory Stock Options.

                  (c) For purposes of Section 5(b), Incentive Stock Options
shall be taken into account in the order in which they were granted, and the
Fair Market Value of the Shares shall be determined as of the time the Option
with respect to such Shares is granted.

                  (d) The Plan shall not confer upon any Optionee any right with
respect to continuation of employment or consulting relationship with the
Company, nor shall it interfere in any way with his right or the Company's right
to terminate his employment or consulting relationship at any time, with or
without cause.

         6. Term of Plan. The Plan shall become effective upon the earlier to
occur of its adoption by the Board or its approval by the shareholders of the
Company as described in Section 18 of the Plan. It shall continue in effect for
a term of ten (10) years unless sooner terminated under Section 14 of the Plan.

         7. Term of Option. The term of each Option shall be the term stated in
the Option Agreement; provided, however, that in the case of an Incentive Stock
Option, the term shall be no more than ten (10) years from the date of grant
thereof or such shorter

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term as may be provided in the Option Agreement. However, in the case of an
Option granted to an Optionee who, at the time the 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 term of the Option shall
be five (5) years from the date of grant thereof or such shorter term as may be
provided in the Option Agreement.

         8.       Option Exercise Price and Consideration.

                  (a) The per share exercise price for the Shares to be issued
pursuant to exercise of an Option shall be such price as is determined by the
Board, but shall be subject to the following: In the case of an Incentive Stock
Option (i) granted to an Employee who, at the time of the grant of such
Incentive Stock Option, 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; (ii) granted to any Employee, not
described in Section 8(a)(i), the per Share exercise price shall be no less than
100% of the Fair Market Value per Share on the date of grant.

                  (b) The consideration to be paid for the Shares to be issued
upon exercise of an Option, including the method of payment, shall be determined
by the Administrator (and, in the case of an Incentive Stock Option, shall be
determined at the time of grant) and may consist entirely of (1) cash, (2)
check, (3) promissory note, (4) other Shares which (x) in the case of Shares
acquired upon exercise of an Option either have been owned by the Optionee for
more than six months on the date of surrender or were not acquired, directly or
indirectly, from the Company, and (y) 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, (5) authorization to the Company to retain from the
total number of Shares as to which the Option is exercised that number of Shares
having a Fair Market Value on the date of exercise equal to the exercise price
for the total number of Shares as to which the Option is exercised, (6) delivery
of a properly executed exercise notice together with irrevocable instructions to
a broker to promptly deliver to the Company the amount of sale or loan proceeds
required to pay the exercise price, (7) delivery of an irrevocable subscription
agreement for the Shares which irrevocably obligates the option holder to take
and pay for the Shares not more than twelve months after the date of delivery of
the subscription agreement, (8) any combination of the foregoing methods of
payment, or (9) such other consideration and method of payment for the issuance
of Shares to the extent permitted under Applicable Laws. In making its
determination as to the type of consideration to accept, the Board shall
consider if acceptance of such consideration may be reasonably expected to
benefit the Company.

         9.       Exercise of Option.

                  (a) Procedure for Exercise; Rights as a Shareholder. Any
Option granted hereunder shall be exercisable at such times and under such
conditions as determined by the Board and set forth in the Option Agreement,
including performance

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criteria with respect to the Company and/or the Optionee, and as shall be
permissible under the terms of the Plan. An Option may not be exercised for a
fraction of a Share.

                             An Option shall be deemed to be exercised when
written notice of such exercise has been given to the Company in accordance with
the terms of the Option by the person entitled to exercise the Option and full
payment for the Shares with respect to which the Option is exercised has been
received by the Company. Full payment may, as authorized by the Board, consist
of any consideration and method of payment allowable under Section 8(b) of the
Plan. Until the issuance (as evidenced by the appropriate entry on the books of
the Company or of a duly authorized transfer agent of the Company) of the stock
certificate evidencing such Shares, 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 stock certificate promptly upon exercise of the Option. No
adjustment will be made for a dividend or other right for which the record date
is prior to the date the stock certificate is issued.

                             Exercise of an Option in any manner shall result in
a decrease in the number of Shares which thereafter may be 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 Employment. In the event of termination of
an Optionee's consulting relationship or Continuous Status as an Employee with
the Company (as the case may be), such Optionee may, but only within ninety (90)
days (or such other period of time as is determined by the Board, with such
determination in the case of an Incentive Stock Option being made at the time of
grant of the Option and not exceeding ninety (90) days) after the date of such
termination (but in no event later than the expiration date of the term of such
Option as set forth in the Option Agreement), exercise his Option to the extent
that Optionee was entitled to exercise it at the date of such termination. To
the extent that Optionee was not entitled to exercise the Option at the date of
such termination, or if Optionee does not exercise such Option to the extent so
entitled within the time specified herein, the Option shall terminate.

                  (c) Disability of Optionee. Notwithstanding the provisions of
Section 9(b) above, in the event of termination of an Optionee's consulting
relationship or Continuous Status as an Employee as a result of his total and
permanent disability (as defined in Section 22(e)(3) of the Code), Optionee may,
but only within twelve (12) months from the date of such termination (but in no
event later than the expiration date of the term of such Option as set forth in
the Option Agreement), exercise the Option to the extent otherwise entitled to
exercise it at the date of such termination. To the extent that Optionee was not
entitled to exercise the Option at the date of termination, or if Optionee does
not exercise such Option to the extent so entitled within the time specified
herein, the Option shall terminate.

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                  (d) Death of Optionee. In the event of the death of an
Optionee, 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 date of
the term of such Option as set forth in the Option Agreement), by the Optionee's
estate or by a person who acquired the right to exercise the Option by bequest
or inheritance, but only to the extent the Optionee was entitled to exercise the
Option at the date of death. To the extent that Optionee was not entitled to
exercise the Option at the date of termination, or if Optionee does not exercise
such Option to the extent so entitled within the time specified herein, the
Option shall terminate.

                  (e) Rule 16b-3. Options granted to persons subject to Section
16(b) of the Exchange Act must comply with Rule 16b-3 and shall contain such
additional conditions or restrictions as may be required thereunder to qualify
for the maximum exemption from Section 16 of the Exchange Act with respect to
Plan transactions. Shares acquired pursuant to exercise of an Option by any
person who is subject to Section 16(b) of the Exchange Act may not be sold or
otherwise disposed of for a period of six (6) months following the Date of
Grant.

                  (f) 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.

         10. Non-Transferability of Options. The Option 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.

         11. Stock Withholding to Satisfy Withholding Tax Obligations. At the
discretion of the Administrator, Optionees may satisfy withholding obligations
as provided in this paragraph. When an Optionee incurs tax liability in
connection with an Option, which tax liability is subject to tax withholding
under applicable tax laws, and the Optionee is obligated to pay the Company an
amount required to be withheld under applicable tax laws, the Optionee may
satisfy the withholding tax obligation by electing to have the Company withhold
from the Shares to be issued upon exercise of the Option, if any, 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 (the "Tax Date").

         All elections by an Optionee to have Shares withheld for this purpose
shall be made in writing in a form acceptable to the Administrator and shall be
subject to the following restrictions:

                  (a) the election must be made on or prior to the applicable
Tax Date;

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                  (b) once made, the election shall be irrevocable as to the
particular Shares of the Option as to which the election is made;

                  (c) all elections shall be subject to the consent or
disapproval of the Administrator; and

                  (d) if the Optionee is subject to Rule 16b-3, the election
must comply with the applicable provisions of Rule 16b-3 and shall be subject to
such additional conditions or restrictions as may be required thereunder to
qualify for the maximum exemption from Section 16 of the Exchange Act with
respect to Plan transactions.

         In the event the election to have Shares withheld is made by an
Optionee and the Tax Date is deferred under Section 83 of the Code because no
election is filed under Section 83(b) of the Code, the Optionee shall receive
the full number of Shares with respect to which the Option is exercised but such
Optionee shall be unconditionally obligated to tender back to the Company the
proper number of Shares on the Tax Date.

         12. Adjustments Upon Changes in Capitalization or Merger. Subject to
any required action by the shareholders of the Company, the number of shares of
Common Stock covered by each outstanding Option, and the number of shares of
Common Stock which have been authorized for issuance under the Plan but as to
which no Options have yet been granted or which have been returned to the Plan
upon cancellation or expiration of an Option, as well as the price per share of
Common Stock covered by each such outstanding Option, 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; provided, however, that 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.

         In the event of the proposed dissolution or liquidation of the Company,
the Board shall notify the Optionee at least fifteen (15) days prior to such
proposed action. To the extent it has not been previously exercised, the Option
will terminate immediately prior to the consummation of such proposed action. In
the event of a merger of the Company with or into another corporation, the
Option shall be assumed or an equivalent option shall be substituted by such
successor corporation or a Parent or Subsidiary of such successor corporation.
In the event that such successor corporation does not agree to assume the Option
or to substitute an equivalent option, the Board shall, in lieu of such
assumption or substitution, provide for the Optionee to have the right to
exercise the

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Option as to all of the Optioned Stock, including Shares as to which the Option
would not otherwise be exercisable. If the Board makes an Option fully
exercisable in lieu of assumption or substitution in the event of a merger, the
Board shall notify the Optionee that the Option shall be fully exercisable for a
period of fifteen (15) days from the date of such notice, and the Option will
terminate upon the expiration of such period. For the purposes of this
paragraph, the Option shall be considered assumed if, following the merger, the
Option or right confers the right to purchase, for each Share of stock subject
to the Option 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 was not solely common
stock of the successor corporation or its Parent, the Board may, with the
consent of the successor corporation and the participant, provide for the
consideration to be received upon the exercise of the Option, for each Share of
stock subject to the Option, 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 or sale of
assets.

         13. Time of Granting Options. The date of grant of an Option shall, for
all purposes, be the date on which the Administrator makes the determination
granting such Option, or such other date as is determined by the Board. Notice
of the determination shall be given to each person to whom an Option is so
granted within a reasonable time after the date of such grant.

         14. Amendment and Termination of the Plan.

                  (a) Amendment and Termination. The Board may at any time
amend, alter, suspend or discontinue the Plan, but no amendment, alteration,
suspension or discontinuation shall be made which would impair the rights of any
Optionee under any grant theretofore made, without Optionee's consent. In
addition, to the extent necessary and desirable to comply with Rule 16b-3 under
the Exchange Act or with Section 422 of the Code (or any other applicable law or
regulation, including the requirements of the NASD or an established stock
exchange), the Company shall obtain shareholder approval of any Plan amendment
in such a manner and to such a degree as required.

                  (b) Effect of Amendment or Termination. Any such amendment or
termination of the Plan shall not affect Options already granted and such
Options shall remain in full force and effect as if this Plan had not been
amended or terminated, unless mutually agreed otherwise between the Optionee and
the Board, which agreement must be in writing and signed by the Optionee and the
Company.

         15. Conditions Upon Issuance of Shares. Shares shall not be issued
pursuant to the exercise of an Option unless the exercise of such Option and the
issuance and

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delivery of such Shares pursuant thereto shall comply with all relevant
provisions of law, including, without limitation, the Securities Act of 1933, as
amended, the Exchange Act, the rules and regulations promulgated thereunder, and
the requirements of any stock exchange upon which the Shares may then be listed,
and shall be further subject to the approval of counsel for the Company with
respect to such compliance. As a condition to the exercise of an Option, the
Company may require the person exercising such Option 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
by any of the aforementioned relevant provisions of law.

         16. 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.

                  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.

         17. Agreements. Options shall be evidenced by written agreements in
such form as the Board shall approve from time to time.

         18. Shareholder Approval. Continuance of the Plan shall be subject to
approval by the shareholders of the Company within twelve (12) months before or
after the date the Plan is adopted. Such shareholder approval shall be obtained
in the degree and manner required under applicable state and federal law.

         19. Information to Optionees. The Company shall provide to each
Optionee, during the period for which such Optionee has one or more Options
outstanding, copies of all annual reports and other information which are
provided to all shareholders of the Company. The Company shall not be required
to provide such information if the issuance of Options under the Plan is limited
to key employees whose duties in connection with the Company assure their access
to equivalent information.

                                    * * * * *

                                      -12-THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE
INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME
OF A DEPOSITORY OR A NOMINEE OF A DEPOSITORY.  THIS SECURITY IS NOT
EXCHANGEABLE FOR NOTES REGISTERED IN THE NAME OF A PERSON OTHER
THAN THE DEPOSITORY OR ITS NOMINEE EXCEPT IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS
NOTE (OTHER THAN A TRANSFER OF THIS NOTE AS A WHOLE BY THE
DEPOSITORY TO A NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF THE
DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE
DEPOSITORY) MAY BE REGISTERED EXCEPT IN THE LIMITED CIRCUMSTANCES
DESCRIBED IN THE INDENTURE.

Unless this certificate is presented by an authorized
representative of The Depository Trust Company, a New York corporation
("DTC"), to the issuer or its agent for registration of
transfer, exchange or payment, and any certificate issued is
registered in the name of Cede & Co. or such other name as requested
by an authorized representative of DTC (and any payment
is made to Cede & Co. or such other entity as is requested by an
authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
inasmuch as the registered owner hereof, Cede & Co., has an interest herein.

THIS NOTE IS NOT A SAVINGS ACCOUNT OR A DEPOSIT AND IS NOT AN
OBLIGATION OF OR GUARANTEED BY ANY BANKING OR NONBANKING
AFFILIATE OF BANK OF AMERICA CORPORATION AND IS NOT INSURED BY
THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER
GOVERNMENTAL AGENCY.

REGISTERED                               $_______________________
NUMBER R-__

Common Code No. _______________                  CUSIP 060505 ___
ISIN US __________________
                              SEE REVERSE FOR CERTAIN DEFINITIONS
                                        AND ADDITIONAL PROVISIONS

                   BANK OF AMERICA CORPORATION

                7.80% SUBORDINATED NOTE, DUE 2010

    BANK OF AMERICA CORPORATION, a corporation duly organized and
existing under the laws of the State of Delaware (herein called the
"Corporation," which term includes any successor corporation under the
Indenture referred to on the reverse hereof), for value
received, hereby promises to pay to CEDE & CO., or registered
assigns, the principal sum of $_________________on February 15, 2010
and to pay interest on said principal sum, semi-annually in arrears on
February 15 and August 15 of each year commencing August 15, 2000,
at the rate of 7.80% per annum, from the February 15 or August
15, as the case may be, next preceding the date of this Note to which
interest has been paid, unless the date hereof is a date
to which interest has been paid, in which case from the date of
this Note, or unless no interest has been paid on the Notes, in which
case from February 14, 2000, until payment of such principal sum has
been made or duly provided for.  Notwithstanding the foregoing, if the date
hereof is after a record date for the Notes (which shall be the
close of business on the last day of the calendar month next preceding an
interest payment date) and before the next succeeding
interest payment date, this Note shall bear interest from such
interest payment date; provided, however, that if the Corporation shall
default in the payment of interest due on such interest
payment date, then this Note shall bear interest from the next
preceding interest payment date to which interest has been paid, or, if
no interest has been paid on the Notes, from February 14, 2000.  The
interest so payable, and punctually paid or duly provided for, on any
interest payment date will, as provided in such Indenture, be paid to the
person in whose name this Note (or one or more predecessor Notes evidencing
all or a portion of the same debt as this Note) is registered at the
close of business on the record date for such interest payment date.

    The principal of and interest on this Note are payable in
such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and
private debts, at the office or agency of the Corporation in New
York, New York or such other places that the Corporation shall designate
as provided in such Indenture; provided, however, that interest may be
paid, at the option of the Corporation, by check mailed to the person
entitled thereto at his address last appearing on the Security
Register of the Corporation relating to the Notes.  Any interest not
punctually paid or duly provided for shall be payable as provided in
such Indenture.

    Reference is made to the further provisions of this Note set
forth on the reverse hereof, which shall have the same effect as though
fully set forth at this place.

    Unless the certificate of authentication hereon has been duly
executed by or on behalf of the Trustee or an authenticating agent on
behalf of the Trustee by manual signature, this Note shall not be entitled
to any benefit under such Indenture, or be valid or obligatory for any
purpose.

    IN WITNESS WHEREOF, the Corporation has caused this
instrument to be duly executed by manual or facsimile signature under
its corporate seal or a facsimile thereof.

                                        BANK OF AMERICA CORPORATION

Attest:
                                        By: /S/ JOHN E. MACK
/S/ ALLISON GILLIAM                     Title:  Senior Vice President

Assistant Secretary

[CORPORATE SEAL]

                  CERTIFICATE OF AUTHENTICATION

    This is one of the Securities of the series designated
therein referred to in the within-mentioned Indenture.

Dated: February __, 2000.

                                THE BANK OF NEW YORK,
                                as Trustee,

                                By:
                                   Authorized Signatory

                      [Reverse Side of Note]

                   BANK OF AMERICA CORPORATION
                7.80% SUBORDINATED NOTE, DUE 2010

    This Note is one of a duly authorized series of Securities of
the Corporation unlimited in aggregate principal amount issued and to
be issued under an Indenture dated as of January 1,
1995 as amended by First Supplemental Indenture dated as of
August 28, 1998 (herein called the "Indenture"), between the
Corporation and The Bank of New York, as Trustee (herein
called the "Trustee," which term includes any successor trustee
under the Indenture), to which Indenture and all indentures supplemental
thereto reference is hereby made for a statement of
the respective rights thereunder of the Corporation, the Trustee
and the holders of the Notes, and the terms upon which the Notes are,
and are to be, authenticated and delivered.  This Note
is also one of the Notes designated as the Corporation's 7.80%
Subordinated Notes, due 2010 (herein called the "Notes"), initially
limited in aggregate principal amount to $1,000,000,000.
The Trustee shall initially act as Security Registrar,
Authenticating and Paying Agent in connection with the Notes.

    THE INDEBTEDNESS OF THE CORPORATION EVIDENCED BY THE NOTES,
INCLUDING THE PRINCIPAL THEREOF AND INTEREST THEREON, IS, TO THE
EXTENT AND IN THE MANNER SET FORTH IN THE INDENTURE, SUBORDINATE
AND JUNIOR IN RIGHT OF PAYMENT TO ITS OBLIGATIONS TO HOLDERS OF
SENIOR INDEBTEDNESS, AS DEFINED IN THE INDENTURE, AND EACH HOLDER
OF THE NOTES, BY THE ACCEPTANCE THEREOF, AGREES TO AND SHALL BE
BOUND BY SUCH PROVISIONS OF THE INDENTURE.

    The Corporation shall pay as additional interest on this Note
such additional amounts ("Additional Amounts") as may be necessary in
order that the net payment by the Corporation of the principal of and
interest on this Note to a holder who is a Non-United States Person, after
deduction for any present or future tax, assessment or governmental
charge of the United States, or a political subdivision or authority
thereof or therein, imposed by withholding with respect to
the payment, will not be less than the amount provided for in
this Note to be then due and payable; provided, however, that the
foregoing obligation to pay Additional Amounts shall not apply to:

    (i) any tax, assessment or other governmental charge which
would not have been so imposed but for:

        (a) the existence of any present or former connection
     between such holder (or between a fiduciary, settlor, beneficiary,
     member orstockholder of, or a person holding a power over, such holder,
     if such holder is an estate, trust, partnership or corporation) and
     the United States, including, without limitation, such holder
     (or such fiduciary, settlor, beneficiary, member, stockholder or
     person holding a power) being or having been a
     citizen or resident or treated as a resident thereof or being
     or having been engaged in atrade or business therein or being or
     having been present therein or having or having had a
     permanent establishment therein;

        (b) such holder's present or former status as a personal
     holding company, foreign personal holding company, passive
     foreign investment company, private foundation or
     other tax-exempt entity or controlled foreign corporation for
     United States tax purposes or a corporation which accumulates
     earnings to avoid United States federal income tax; or

        (c) such holder's status as a bank extending credit
     pursuant to a loan agreement entered into in the ordinary
     course of business;

    (ii)    any tax, assessment or governmental charge that would
not have been imposed or withheld but for the failure of the holder
to comply with certification, identification or information reporting
requirements under United States income tax laws, without regard to any
tax treaty, with respect to the payment, concerning the nationality,
residence, identity or connection with the United States of the holder
or a beneficial owner of this Note, if such compliance is required by
United States income tax laws, without regard to any tax treaty, as a
precondition to relief or exemption from such tax, assessment or
governmental charge;

    (iii)   any tax, assessment or governmental charge that would
not have been so imposed or withheld but for the presentation by the
holder of this Note for payment on a date more than 30 days after the
date on which such payment became due and payable or the date on which
payment thereof is duly provided for, whichever occurs later;

    (iv)    any estate, inheritance, gift, sales, transfer,
excise, wealth or personal property tax or any similar tax, assessment
or governmental charge;

    (v) any tax, assessment or governmental charge which is
payable otherwise than by withholding by the Corporation or the Trustee
from the payment of the principal of or interest on this Note;

    (vi)    any tax, assessment or governmental charge required
to be withheld from such payment of principal of or interest on this
Note, if such payment can be made without such withholding or any
liability on the part of the Corporation;

    (vii)   any tax, assessment or other governmental charge
imposed on interest received by a person holding, actually or
constructively, 10% or more of the total combined voting power of all
classes of stock of the Corporation entitled to vote; or

    (viii)  any combination of items (i), (ii), (iii), (iv), (v),
(vi) or (vii);

nor shall Additional Amounts be paid with respect to any payment
of the principal of or interest on this Note to a person other than
the sole beneficial owner of such payment or that is a
partnership or fiduciary to the extent such beneficial owner,
member of such partnership or beneficiary or settlor with respect to
such fiduciary would not have been entitled to the payment
of Additional Amounts had such beneficial owner, member, beneficiary or
settlor held its interest in this Note directly.

    The Notes of this series are not subject to redemption at the
option of the Corporation or repayment at the option of the holder
prior to maturity.

    As provided in the Indenture and subject to certain limitations
therein set forth, the transfer of this Note may be registered on the
Security Register of the Corporation relating to
the Notes, upon surrender of this Note for registration of
transfer at the office or agency of the Corporation designated by
it pursuant to the Indenture, duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the
Corporation and the Trustee or the Security Registrar duly executed by,
the registered holder hereof or his attorney duly
authorized in writing, and thereupon one or more new Notes, of
authorized denominations and for the same aggregate principal amount,
will be issued to the designated transferee or transferees.

    The Notes are issuable only as registered Notes without
coupons in the denominations of $1,000 and integral multiples thereof.
As provided in the Indenture, and subject to certain
limitations therein set forth, Notes are exchangeable for a like
aggregate principal amount of Notes of different authorized denominations,
as requested by the holder surrendering the same.

    If any interest payment date or maturity date for a Note
falls on a day that is not a Business Day, the interest payment date
or maturity date will be the following day that is a
Business Day and the payment of interest or principal will be
made on the next Business Day as if it were made on the date such
payment was due and no additional interest will accrue on
the amount so payable for the period from and after such interest
payment date or maturity date.

    No service charge will be made for any such registration of
transfer or exchange, but the Corporation may require payment of a
sum sufficient to cover any tax or other governmental charge payable
in connection therewith.

    Prior to due presentment for registration of transfer of this
Note, the Corporation, the Trustee and any agent of the Corporation
or the Trustee may treat the person in whose name
this Note is registered as the absolute owner hereof for the
purpose of receiving payment as herein provided and for all other
purposes, whether or not this Note be overdue, and neither
the Corporation, the Trustee nor any such agent shall be affected
by notice to the contrary.

    If an Event of Default (defined in the Indenture as certain
events involving the bankruptcy of the Corporation) shall occur with
respect to the Notes, the principal of all the Notes may be declared
due and payable in the manner and with the effect provided in the
Indenture.  THERE IS NO RIGHT OF ACCELERATION PROVIDED IN THE
INDENTURE IN CASE OF A DEFAULT IN THE PAYMENT OF INTEREST OR THE
PERFORMANCE OF ANY OTHER COVENANT BY THE CORPORATION.

    The Indenture permits, with certain exceptions as therein
provided, the amendment thereof and the modification of the rights and
obligations of the Corporation and the rights of
the holders of the Notes under the Indenture at any time by the
Corporation with the consent of the holders of not less than 66-2/3%
in aggregate principal amount of the Notes then outstanding and all
other Securities then outstanding issued under the Indenture and affected
by such amendment and modification.  The Indenture also contains
provisions permitting the holders of a majority in aggregate principal
amount of the Notes then outstanding and all other Securities then
outstanding issued under the Indenture and affected thereby, on behalf of the
holders of all such Securities, to waive compliance by the Corporation
with certain provisions of the Indenture and certain past defaults under
the Indenture and their consequences.  Any such consent or waiver by the
holder of this Note shall be conclusive and binding upon such
holder and upon all future holders of this Note and of any Note
issued upon the registration of transfer hereof or in exchange herefor
or in lieu hereof whether or not notation of such consent
or waiver is made upon this Note.

    No reference herein to the Indenture and no provision of this
Note or of the Indenture shall alter or impair the obligation of the
Corporation, which is absolute and unconditional, to
pay the principal of and interest on this Note at the times,
place and rate, and in the coin or currency, herein prescribed.

    No recourse shall be had for the payment of the principal of
or the interest on this Note, or for any claim based hereon, or otherwise
in respect hereof, or based on or in respect of the Indenture or any
indenture supplemental thereto, against any incorporator, stockholder,
officer or director, as such, past, present or future, of the Corporation
or any predecessor or successor corporation, whether by virtue of any
constitution, statute or rule of law, or by the
enforcement of any assessment or penalty or otherwise, all such
liability being, by the acceptance hereof and as part of the
consideration for the issue hereof, expressly waived and released.

    The Notes of this series shall be dated the date of their
authentication.

    All terms used in this Note which are defined in the
Indenture shall have the meanings assigned to them in the Indenture.

    The Notes are being issued by means of a book-entry system
with no physical distribution of certificates to be made except as
provided in the Indenture.  The book-entry system maintained by The
Depository Trust Company ("DTC") will evidence ownership of the
Notes, with transfers of ownership effected on the records of DTC
and its participants pursuant to rules and procedures established by
DTC and its participants.  The Corporation will recognize Cede & Co.,
as nominee of DTC, while the registered owner of the Notes, as the
owner of the Notes for all purposes, including payment of principal and
interest, notices and voting. Transfer of principal and interest to
participants of DTC will be the responsibility of DTC, and transfer of
principal and interest to beneficial owners of the Notes by participants of
DTC will be the responsibility of such participants and other
nominees of such beneficial owners.  So long as the book-entry system
is in effect, the selection of any Notes to be redeemed will be determined
by DTC pursuant to rules and procedures established by DTC
and its participants.  The Corporation will not be responsible or
liable for such transfers or payments or for maintaining, supervising or
reviewing the records maintained by DTC, its participants or persons
acting through such participants.

    Transfers of Notes in Europe may be effected through the
facilities of Cedel Bank, societe anonyme, and Morgan Guaranty Trust
Company of New York, Brussels office, as operator of the Euroclear
System, in accordance with rules and procedures established by those
depositories.
                      ______________________

    The following abbreviations, when used in the inscription on
the face of the within Note, shall be construed as though they were
written out in full according to applicable laws or regulations:

TEN COM     as tenants in common
TEN ENT     as tenants by the entireties
JT TEN      as joint tenants with right of survivorship and not
as tenants in common

UNIF GIFT MIN ACT   _________ Custodian _________
                    (Cust)          (Minor)
                    under Uniform Gifts to Minors
                    Act __________ (State)

Additional abbreviations may also be used though not in the above
list.

                            __________

FOR VALUE RECEIVED the undersigned hereby sells, assigns and
transfers unto

      PLEASE INSERT SOCIAL SECURITY OR
 OTHER IDENTIFYING NUMBER OF ASSIGNEE

________________________________________________________________

________________________________________________________________

(Name and Address of Assignee, including zip code, must be
printed or typewritten.)

________________________________________________   the within
Note, and all rights thereunder, hereby irrevocably constituting
and appointing

_________________________________________________   Attorney
to transfer said Note on the books of the Corporation, with full
power of substitution in the
premises.

Dated:  ____________________________

    NOTICE:  The signature to this assignment must correspond
with the name as it appears upon the face of the within Note in
every particular, without alteration or enlargement or any
change whatever and must be guaranteed.

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