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                            GWINNETT CORPORATE CENTER              Exhibit 10.26
                                 STANDARD LEASE

          THIS LEASE, made this 10th day of July , 2000 by and between ENDICOTT
COMPANY, LLC, a Delaware limited liability company (the "Lessor") the address of
whom is the address of Lessor set forth in Paragraph 28 herein, and SOMERA
COMMUNICATIONS, INC., a Delaware corporation (the "Lessee"):

                                   WITNESSETH

     1. PREMISES. In consideration of the rents, covenants, agreements, and
stipulations herein set forth, Lessor hereby leases to Lessee and Lessee hereby
accepts and leases from Lessor the premises (the "Premises") shown on the floor
plan attached hereto as Exhibit "A" and made a part hereof, containing
approximately 45,038 square feet and located in the 1725 Corporate Drive, Suites
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300, 305, 310, 315, 320, 325, and 330, Norcross, GA 30093 Building (the
"Building") of Phase five (V) (the "Phase") of the GWINNETT CORPORATE CENTER
business park (the "Project"). The "Phase" shall mean and include the Building
and all other buildings shown in the drawing of the Phase attached hereto as
Exhibit "B" and made a part hereof and the land upon which such buildings stand
and the Common Areas appurtenant to or serving such buildings, all as shown on
Exhibit "B". For all purposes of this Lease the rentable square footage of the
Premises shall be deemed to be the number of square feet set forth in this
Paragraph I and the rentable square footage of the buildings in the Phase
(herein called the "Rentable Square Footage of the Phase") shall be deemed to be
228,668 square feet.
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     2. TERM. To have and to hold the same for a term of 66 months commencing on
(the "Commencement Date") the later to occur of (a) the 30th day of June, 2000,
and (b) the Substantial Completion Date (as that phrase is defined in Exhibit E,
Section XII(B)), and ending at midnight on the last day of the 66th full
calendar month following the Commencement Date, unless extended or sooner
terminated or delayed, as hereinafter provided.

     3. BASE RENTAL. (a) Lessee shall pay to Lessor as base rental (hereinafter
called the "Base Rental") an annual rental of Two Hundred Thirty Thousand Five
Hundred Ninety Four and 56/100s dollars ($230,594.56) in monthly installments of
Nineteen Thousand Two Hundred Sixteen and 21/100s dollars ($19,216.21). Lessee
shall pay a monthly installment of Base Rental to Lessor in the amount provided
herein (as such amount may be increased from time to time pursuant to Paragraph
3(b) herein) without demand, deduction or setoff, in advance, on the first day
of each calendar month during the term of this Lease. See Special Stipulation
IX, Exhibit "E".

          (b) Upon each Lease Anniversary (as hereinafter defined) the amount of
each monthly installment of Base Rental due from Lessee to Lessor shall be
increased, and thereafter and until further increased on the next Lease
Anniversary, the amount of each monthly installment of Base Rental shall be an
amount equal to the product of one and four one-hundredths (1.04) multiplied by
the amount of the monthly installment of Base Rental for the month immediately
prior to such Lease Anniversary as provided in this Paragraph 3. For purposes of
this Paragraph 3, the term "Lease Anniversary" shall refer to the anniversary
during each year of the term of this Lease of the first day of the calendar
month during which the Lease term hereunder commenced.

          (c) If Lessor does not receive full payment of any monthly rental
installment on or before the seventh (7th) day of the month for which such
rental is due or delinquent, then, in addition to all other remedies available
to Lessor for nonpayment of rent and in addition to all rents otherwise owed
hereunder, Lessee shall pay to Lessor a service charge at the rate of four
percent (4%) per month upon all past due amounts owed on such date.

     4. COMMON AREA MAINTENANCE CHARGES. Lessor shall have sole and exclusive
obligation to operate, manage and maintain the Common Areas (as hereinafter
defined) and to determine the expense to be incurred therefore (the "Common Area
Expense") and the times, the manner and the means of such operation, management
and maintenance. Lessee agrees to pay as additional rental hereunder Lessee's
proportionate share (as hereinafter set forth) of the Common Area Expense
incurred by Lessor, including without limitation expense for all water supplied
to any building in the Phase, the tenants of any such building or the Common
Areas and all sewer charges associated therewith, and for maintenance, lighting,
painting, cleaning, policing, inspecting, repairing and replacing, and carrying
insurance with respect to any and all elements of the Common Areas as more fully
described in Paragraph 12 herein, together with a reasonable allowance for
Lessor's overhead and depreciation of equipment. Notwithstanding anything in
this Lease to the contrary, Common Area Expense shall not include (i)
commissions payable to any real estate broker(s) for the leasing of space in the
Project; (ii) the cost of any work done by Lessor for and at the expense of any
particular tenant(s) in the Project; (iii) legal fees paid to enforce the
obligations of any other tenant; (iv) expenses paid by Lessor for the
advertising and promotion of rental space in the Project; (v) fines, penalties
or other costs incurred by Lessor due to its violation of any governmental rule
or authority existing at the time of execution of the lease; (vi) interest or
penalties for overdue payments of taxes, except direct costs incurred in
contesting or reducing same; (vii) the cost to Lessor of repairs made or other
work done, by Lessor as a result of fire, windstorm or other insurable casualty
if Lessor is compensated by insurance or by the exercise of eminent domain,
provided, however, that this exclusion for eminent domain is limited to the
amount of the condemnation award received by lessor in compensation for such
repairs or other work; (viii) attorneys' fees and court costs and other such
expenses incurred by Lessor in connection with the negotiation of disputes with
existing or prospective tenants or occupants of the Project; (ix) the cost to
Lessor of renovating, decorating, painting or redecorating space for tenants or
other occupants of the Project; (x) costs incurred by Lessor due to the
violation of Lessor or any tenant of the terms and conditions of any lease for
space in the Project; (xi) interest on debt or amortization payments on any
mortgages and rental under any ground or underlying leases covering Lessor's
Property; (xii) salaries, wages, and benefits of Lessor's employees above the
grade of property manager and executive salaries not directly engaged in the
management of the property; (xiii) management fees in excess of four (4) percent
of gross income; (xiv) depreciation expense of Lessor's real property and
annualized "reserve accounts" for fixed asset replacement; (xv) the cost of
capital improvements or items of capital equipment, provided, however, that if
capital improvements or items of capital equipment shall be purchased by Lessor
and have the effect of causing a savings in or reduction of Common area
Expenses, then the amount of the expenditure shall be amortized under generally
accepted accounting principles and be included in Common Area Expenses. For all
purposes of this paragraph, the terms "capital improvements" and "items of
capital equipment" mean any improvements or items of equipment which, in
accordance with generally accepted accounting principles, may be deemed to be
capital improvements or items of capital equipment, as the case may be; (xvi)
cost of structural repairs of the Project and the Premises, including repairs to
the foundation, concrete floors, structural frame and roof system.

     As additional rental hereunder, Lessee shall pay the sum of Seventeen
Thousand Five Hundred Sixty-four and 82/100s dollars ($17,564.82) to Lessor
annually as "Common Area Maintenance Rental" in monthly installments, in an
amount each month equal to one-twelfth (1/12th) of the annual Common Area
Maintenance Rental set forth above, at the same times and in the same manner as
the Base Rental. See Exhibit "E", Special Stipulation XI.

     If Lessee's proportionate share of the Common Area Expense for any calendar
year exceeds the amount of Common Area Maintenance Rental paid by Lessee for
such calendar year, then, within ninety (90) days after the close of such
calendar year, Lessor shall furnish to Lessee a statement setting forth the

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Common Area Expense incurred in such calendar year and Lessee's proportionate
share thereof. Lessee's proportionate share of the Common Area Expense for such
calendar year shall be an amount equal to the product of the total Common Area
Expense incurred in such calendar year multiplied by a fraction, the numerator
of which is the rentable square footage of the Premises and the denominator of
which is the Rentable Square Footage of the Phase. Within thirty (30) days
following delivery of such statement to Lessee, Lessee shall pay to Lessor, as
additional rental hereunder, the amount necessary to increase the aggregate
amount of Lessee's payments for Common Area Expense for such calendar year to
the amount of Lessee's proportionate share as set forth in such statement.

     Further, if Lessee's proportionate share of the Common Area Expense for any
calendar year as set forth in such statement exceeds the aggregate amount of
Lessee's monthly installments of Common Area Maintenance Rental due during such
calendar year, then, beginning with the calendar month immediately following the
calendar month in which Lessee receives such statement and continuing until
further increased pursuant to this paragraph, the amount of each monthly
installment of Common Area Maintenance Rental due from Lessee to Lessor shall be
increased to an amount equal to one-twelfth ( 1/12th) of Lessee's proportionate
share of the Common Area Expense as set forth in such statement.

     If the first or final year of the Lease term fails to coincide with a
calendar year, Lessee's obligation to pay for Common Area Expense for the
calendar year during which the Lease term commences or ends (as the case may be)
shall be prorated according to the number of days of the Lease term that fall
within such calendar year.

     5. INSURANCE EXPENSE. (a) Lessee shall pay to Lessor, as additional rental
hereunder, Lessee's proportionate share of Lessor's cost of insurance coverage
for public liability fire, hazard, extended coverage, vandalism, malicious
mischief and sprinkler leakage covering the Phase (except for amounts collected
by Lessor from any tenant of the Project pursuant to Paragraph 5(b) herein).
Lessee's proportionate share of any such insurance cost shall be computed by
multiplying the total aggregate amount of such insurance cost increases by a
fraction, the numerator of which is the rentable square footage of the Premises
and the denominator of which is the Rentable Square Footage of the Phase.
Whenever during the term of this Lease Lessor receives a bill for such insurance
coverage, Lessor shall furnish to Lessee an insurance cost statement setting
forth the amount of Lessee's proportionate share of all such insurance cost,
computed as set forth herein above, and Lessee shall pay such amount to Lessor,
as additional rental hereunder within ten (10) days following receipt of such
statement.

If the first or final year of the Lease term fails to coincide with a calendar
year, Lessee's obligation to pay Lessee's proportionate share of Lessor's
insurance cost, as set forth herein above, for the calendar year during which
the Lease term commences or ends (as the case may be) shall be prorated and paid
according to the number of days of the Lease term that fall within such calendar
year.

     (b) Lessee shall neither make nor permit any use of the Premises nor commit
any act that will (i) increase the existing rate of insurance upon the Premises,
the Building, the Phase or the Project or (ii) cause the cancellation of any
insurance policy covering the Project, or any part thereof. Lessee shall neither
sell nor permit to be kept, used or sold, in or about the Premises, any article
or thing prohibited by the standard form of fire insurance policies. Lessee
shall, at its sole cost and expense, comply with any and all requirements
imposed by any insurance organization or company pertaining to the Premises and
necessary for the maintenance of reasonable fire, hazard, extended coverage,
vandalism, malicious mischief, sprinkler leakage and public liability insurance
covering the Premises, the Building, the Phase and the Project. In addition to
Lessee's proportionate share of insurance costs set forth in Paragraph 5(a)
herein, Lessee agrees to pay to Lessor upon demand, as additional rental
hereunder, and to other tenants of the Project, upon demand, the amount of any
increase in insurance premiums of Lessor or other tenants (as the case may be)
to the extent that such increases result from any act or omission of Lessee or
its agents, employees, sublessees, licensees or invitees or any use to which the
Premises are put or any occurrence upon the Premises during Lessee's possession
of the Premises hereunder. In addition to any other remedies available to Lessor
hereunder or under applicable law, Lessee's failure to satisfy all of Lessee's
obligations under this Paragraph 5(b) shall be grounds for termination of this
Lease. Landlord warrants that at the time of occupancy the building is zoned M-1
(light industrial) in Gwinnett County.

     6. TAXES. (a) Definitions. (i) "Taxes" shall mean any and all taxes,
assessments and charges levied or imposed upon Lessor in respect of the Phase by
the governmental authority or authorities having taxing jurisdiction over the
Phase, including without limitation ad valorem real property taxes, real estate
rental receipts or gross receipts taxes, specific taxes on rentals from the
tenants of the Phase and any taxes imposed in substitution for or in lieu of any
such taxes, plus the cost, including without limitation attorneys', appraisers'
and tax consultants' fees, of all negotiations, contests and appeals pursued by
Lessor in an effort to reduce such taxes or the assessment on which any such tax
is based. If the Phase is carried in the public tax records not as a separate
parcel but instead as part of a larger parcel, then Lessor shall apportion the
taxes upon said larger parcel to the Phase in a reasonable manner and the amount
of such taxes so apportioned to the Phase by Lessor shall be the Taxes for
purposes of this Paragraph 6. If said larger parcel is substantially developed
as a business park, then it shall be deemed reasonable for Lessor to apportion
such taxes to each phase on such larger parcel, pro rata, according to the total
rentable square footage of the buildings in each such phase; however, Lessor
shall be free to use any reasonable method to make such apportionments; (ii)
"Tax Year" shall mean each twelve (12) month period established as the real
estate tax year by the taxing authorities having lawful jurisdiction over the
Phase; (iii)"Tax Base" for each Tax Year shall mean the product of zero cents
($0.00) multiplied by the Rentable Square Footage of the Phase.

(b) For each Tax Year during the term of this Lease, Lessor shall send to Lessee
a statement setting forth both the total amount of Taxes payable by Lessor for
such Tax Year and Lessee's proportionate share thereof, if any. Within thirty
(30) days following receipt of such statement, Lessee shall pay to Lessor, as
additional rental hereunder, the amount set forth on such statement as Lessee's
proportionate share, which proportionate share (hereinafter called the "Annual
Tax Excess") shall equal the product of (i) the excess of the Taxes for such Tax
Year over the Tax Base for such Tax Year, multiplied by (ii) a fraction, the
numerator of which is the rentable square footage of the Premises and the
denominator of which is the Rentable Square Footage of the Phase. Beginning with
the calendar month immediately following the month in which Lessee receives such
a statement and continuing until Lessee receives a subsequent statement of
Taxes, Lessee shall pay to Lessor each month, as additional rental hereunder, at
the same times and in the same manner as the Base Rental, an amount equal to
one-twelfth (1/12th) of the amount of the Annual Tax Excess set forth on the
most recent statement of Taxes provided by Lessor to Lessee. If the first or
final year of the Lease term fails to coincide with a Tax Year, Lessee's
obligation to pay the Annual Tax Excess for the partial Tax Year during which
the Lease term commences or ends (as the case may be) shall be prorated
according to the number of days of the Lease term that fall within such Tax
Year.

          (c) Lessee shall be liable for all taxes assessed against and levied
upon the fixtures and the furnishings, equipment and all other personal property
of Lessee contained in the Premises. If any such taxes are levied against Lessor
or Lessor's property or if the assessed value of Lessor's property is increased
by inclusion of personal property or fixtures of Lessee and if Lessor elects to
pay such taxes or such tax increase, Lessee shall pay to Lessor, in addition to
the Annual Tax Excess set forth above, upon demand as additional rental
hereunder, that part of such taxes for which Lessee is liable hereunder.

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     7. SECURITY DEPOSIT. Lessee does hereby deposit with Lessor the sum of Nine
Thousand Six Hundred Eight and 11/100s dollars ($9,608.11) as a security deposit
which shall be held by Lessor as security for the full and faithful performance
by Lessee of each and every covenant and obligation of Lessee under this Lease.
It is hereby explicitly understood and agreed that this security deposit is
neither an advance deposit of rental nor a measure of Lessor's damages in case
of any default by Lessee and that Lessor shall have no obligation to Lessee to
pay any interest upon this security deposit nor to maintain this security
deposit separate from Lessor's general funds. If any rental herein reserved or
any other charges or sums payable by Lessee to Lessor are overdue and unpaid or
if Lessor makes payments on behalf of Lessee, or if Lessee fails to perform any
of the terms of this Lease, then in any such event Lessor may, at its option,
from time to time, and without prejudice to any other remedy which Lessor may
have against Lessee, appropriate and apply the security deposit toward the
payment of the rents, charges or other sums due from Lessee, or toward any loss,
damage or expense sustained by Lessor and resulting from or in connection with
such default on the part of Lessee (but only to the extent of such rents,
charges, other sums, loss, damage or expense); and in such event Lessee shall
forthwith upon demand pay to Lessor the amount required to restore the security
deposit to the original sum deposited. After termination of this Lease,
surrender of the Premises by Lessee, and satisfaction of all of Lessee's
obligations hereunder, the balance of the security deposit held by Lessor, if
any, shall be promptly returned by Lessor to Lessee without interest.

     8. USE OF PREMISES. The Premises shall be used for office spaces, sales or
distribution rooms or showrooms, warehouse spaces or any or all of the foregoing
but not for any manufacturing process (other than light assembly of
communications equipment) nor for any other purpose without the express, prior,
written consent of Lessor (which consent shall not be unreasonably withheld,
conditioned or delayed); provided, however, that the Lessee acknowledges that it
shall be reasonable for Lessor to withhold its consent to any other use if such
use would be incompatible (in Lessor's reasonable judgment) with the nature of
the Project or with the uses of the other then-current tenants at the Project.
The Premises shall not be used for any illegal purpose; nor in violation of any
law, ordinance, order or regulation affecting the Premises, the Lessee or the
business of Lessee; nor in any manner to create any nuisance or trespass; nor in
any manner to disturb, endanger or annoy other tenants of the Project in their
use of their premises or of the Common Areas, such as without limitation
emitting odor, smoke, gas, dust, noise or vibrations; nor in any manner that may
result in injury to the Building; nor in any manner to vitiate the insurance or
increase the rate of insurance on the Premises. Lessee shall not cause, maintain
or permit any outside storage on or about the Premises, including without
limitation pallets and other refuse; and Lessee shall maintain the loading areas
serving the Premises clean and unobstructed.

     9. DELIVERY OF POSSESSION. See Exhibit "E". Special Stipulation XII(G).

     10. ACCEPTANCE OF PREMISES. By occupancy hereunder, Lessee acknowledges
that it has inspected the Premises and accepts the Premises as being in the
condition called for by this Lease subject to a punch list to be submitted to
Lessor within twenty (20) days following occupancy, and subject to any latent
defects, so long as such alleged latent defects are submitted to Lessor within
thirty (30) days after Lessee actually becomes aware of the same.

     11. MAINTENANCE, REPAIRS AND ALTERATIONS OF PREMISES. (a) Lessor shall have
no obligation to perform any maintenance or to make any repairs or alterations
under this Lease except as specifically set forth herein. Lessor shall keep the
structural elements, the foundation, the roof, and the exterior walls of the
Building in good repair, except for reasonable wear and tear and except for
repairs occasioned or made necessary by the act or negligence of Lessee, its
agents, employees, sub-lessees, invitees or licensees. For purposes of this
Lease, the exterior walls of the Building shall be deemed to exclude all plate
glass, window glass, doors, other openings, door closure devices, window and
door frames, moldings, locks and hardware. In the event the Premises should
become in need of repairs required to be made by Lessor hereunder, Lessee shall
give immediate written notice to Lessor, and Lessor shall make any such repairs,
within a reasonable time after delivery of such written notice. If, within a
reasonable period of time after Lessor has received Lessee's written notice
requesting repairs which Lessor is required to make under the provisions of this
Lease, Lessor fails to commence and thereafter prosecute with reasonable
diligence such repairs, then Lessee may, at its option and only after at least
two (2) business days' advance written notice to Lessor, cause such repairs to
be made, unless Lessor has, prior to the expiration of said period of two (2)
business days, either commenced such repairs in good faith or given Lessee
written notice of reasonable and good faith grounds for Lessor's delay in
commencing and thereafter prosecuting with reasonable diligence such repairs,
which notice of such reasonable and good faith grounds must further include
Lessor's good faith projection of when Lessor will commence and complete such
repairs; provided that Lessee shall indemnify Lessor for any damages, claims,
losses, and liabilities incurred by Lessor as a result of the making of such
repairs by or on behalf of Lessee, and provided further that Lessee shall be
entitled, as its sole remedy for incurring the cost of such repairs and for
Lessor's failure to make such repairs, to reimbursement from Lessor for the
actual and reasonable cost of such repairs.

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          (b) Lessee agrees throughout the term of this Lease, at Lessee's sole
cost and expense, (i) to keep and maintain the Premises and all fixtures and
equipment therein and thereon, including without limitation all plumbing,
heating, ventilating and air conditioning, electrical, gas, water, sewage and
like fixtures and equipment, and the Premises window glass, plate glass, glass
doors, window frames, exterior steps, loading docks, loading dock doors, all
other doors, door frames, other openings, moldings, door closure devices, locks
and hardware, interior ceilings, walls and floors and all signs of Lessee in
good repair order and condition, (ii) to make all repairs and replacements
thereto as may be required and all other repairs required to keep the Premises
in good repair, order and condition but not the responsibility of Lessor
pursuant to Paragraph 11(a) above and all repairs occasioned or made necessary
by any act or neglect of Lessee or Lessee's agents, employees, sublessees,
invitees or licensees, and (iii) to make all such repairs and replacements in
the same or better design, quality and class as the original work and equipment.
In addition, Lessee shall, at is own cost and expense, wash all windows of the
Premises, inside and outside, as frequently as necessary to keep them clean and
clear, and Lessee shall obtain within thirty (30) days of the date of
commencement hereof and keep in force preventive maintenance/service contracts
approved by Lessor and providing regular maintenance and repair services on all
hot water, heating, ventilating and air conditioning systems and equipment on
the Premises. If any maintenance or repair obligation of Lessee under this
Paragraph 11 is not performed by Lessee within ten (10) days after written
notice delivered to Lessee by Lessor, then in addition to all other remedies
available to Lessor hereunder and under applicable law, Lessor may, at its
option, cause such repairs to be made without being liable to Lessee in any
manner whatsoever by reason of such repairs, and Lessee shall pay to Lessor upon
demand as additional rental hereunder the cost of such repairs, plus interest
thereon from the date of demand at an annual rate equal to the lesser of (i) the
sum of the Prime Rate of interest (as published by the Wall Street Journal or
other reputable source to be selected by Lessor) on the date of demand plus five
(5) percentage points and (ii) the maximum permissible rate of interest under
applicable law. Landlord warrants that the Premises are being delivered in good
and working order and that all construction shall be completed in a workmanlike
manner.

          (c) Except as otherwise provided in this Paragraph 11(c), Lessee shall
not make any alterations, additions, repairs, improvements, or installations to
the Premises or the Building without obtaining the prior written consent of
Lessor, which consent shall not be unreasonably withheld, conditioned or
delayed. Notwithstanding the preceding sentence, Lessee may, without obtaining
Lessor's consent (but upon at least three (3) days notice to Lessor) make (i)
cosmetic alterations, additions, repairs, improvements, or installations to the
Premises, and (ii) all other non-structural alterations, additions, repairs,
improvements or installations to the Premises that (x) shall not impact any
other tenant space in the Building or the Project or any mechanical system,
electrical system, plumbing system, HVAC system, security system or other system
in the Building or the Project, and (y) shall not, in the aggregate, cost more
than $25,000 in any 12 month period; provided, however, that Lessor reserves the
right to require Lessee to restore the Premises and/or Building to its original
condition at time of delivery of possession. Subject to Lessor's rights set
forth in the immediately preceding sentence, all alterations, additions,
repairs, improvements, installations, equipment and fixtures, by whomever
installed or erected (except such business trade fixtures belonging to Lessee as
can be removed without damage to the Premises or the Building) shall remain upon
and be surrendered with the Premises and become the property of Lessor at the
termination of this Lease. Any linoleum, carpeting or other floor covering which
may be cemented, nailed or otherwise affixed to the floor of the Premises shall
become the property of Lessor without credit or compensation to Lessee.

          (d) All construction work caused to be done by Lessee upon or within
the Premises or the Project shall be performed in good and workmanlike manner by
contractors acceptable to Lessor, in compliance with all governmental
requirements and in such a manner as to cause a minimum of interference with
other tenants and with other construction in progress in the Project. Lessee
agrees to indemnify Lessor and hold Lessor harmless from and against any loss,
liability, expense, attorneys' fees or damage resulting from or pertaining to
such work, and Lessee shall, if requested by Lessor, furnish a bond or other
security satisfactory to Lessor against any such loss, liability, damage or
expense.

          (e) Lessee shall not suffer or permit any materialmen's, mechanics',
artisans' or other liens to be filed or placed or to exist against the Project,
the Building or any part thereof or against Lessee's interest in the Premises by
reason of work, services or materials supplied or claimed to have been supplied
to or for the benefit of Lessee or of anyone holding the Premises or any part
thereof through or under the Lessee. If any such lien should, at any time, be
filed, Lessee shall cause the same to be discharged of record within fifteen
(15) days after the date of filing the same. If Lessee shall fail to discharge
such lien within such period, then, in addition to any other right or remedy of
Lessor, Lessor may, but shall not be obligated to, discharge the same either by
paying the amount claimed to be due or by procuring the discharge of such lien
by a deposit in court or by posting a bond. Any amount paid by Lessor for any of
the aforesaid purposes, together with all reasonable expenses of Lessor in
defending any such action or in procuring the discharge of such lien (including
attorneys' fees), shall be deemed additional rental hereunder and shall be
repaid by Lessee to Lessor on demand. Nothing contained in this Lease shall be
deemed or construed in any way as constituting the consent or request of Lessor,
expressed or implied, to any contractor, subcontractor, laborer or materialman
for the performance of any labor or the furnishing of any materials for any
improvements, alterations or repairs of or to the Building or the Premises nor
as giving Lessee any right, power or authority, to contract for or to permit to
be furnished any services or any materials that would give rise to the filing of
a materialmen's mechanics' or other lien against the Building, the Premises, the
Project or any part thereof.

     12. COMMON AREAS. The term "Common Areas" is defined for all purposes of
this Lease as that part of the Phase as shown on Exhibit "B" intended for the
common use or benefit of the tenants of the buildings in the Phase, including
without limitation parking areas, sidewalks, driveways, paving, curbs, gutters,
truckways, common loading areas, landscaped areas, exterior lighting, utility
pipes and lines serving any building in the Phase and actually maintained by
Lessor, common signage, and landscape irrigation systems. The parties hereby
agree that Lessee shall have access in common with all other lessees to the
parking areas, driveways, walks, landscaped areas and service areas serving or
appurtenant to the Premises, subject to reasonable rules and regulations of
Lessor. Lessee agrees not to interfere with the access of other lessees to the
Common Areas.

          Lessee shall be entitled to park in common with other lessees of
Lessor, subject to reasonable rules and regulations adopted by Lessor. Lessee
agrees not to overburden the parking facilities and agrees to cooperate with
Lessor and other lessees in the use of parking facilities. Lessor reserves the
right in its reasonable discretion to determine whether parking facilities are
becoming crowded and, in such event, to allocate parking spaces among Lessee and
other lessees. Lessee's trucks shall be parked in the rear of the Premises in
such a way as not to interfere with the access of other lessees to their
premises or to the Common Areas.

     13. UTILITIES AND SERVICES. Lessor shall provide within the Building
connections to electric, gas, water and sewer and telephone utility services.
Lessor reserves the right to interrupt, curtail or suspend utility services from
time to time to facilitate the making of repairs, alterations, replacements or
improvements in the Project, the Phase, the Building or the Premises. Lessor
shall not be liable to Lessee in any manner whatsoever for any such
interruption, curtailment or suspension of water, sewage, electric, gas,
telephone or other services to the Premises. Lessee shall neither

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claim nor be entitled to any diminution or abatement of rental or of any other
obligation of Lessee set forth herein by reason of any such interruption,
curtailment or suspension. Notwithstanding the foregoing provisions of this
Paragraph 13, if such interruption, curtailment or suspension of utilities
extends for five (5) or more consecutive business days after Lessor receives
written notice from Lessee of such condition and if such condition has rendered
any material portion of the Premises unusable by Lessee for such period, then
Lessee shall be entitled, as Lessee's sole remedy for such interruption,
curtailment, suspension of utilities, to reimbursement from Lessor of the
pro-rated Base Rent for such period upon either written agreement of Lessor or
upon establishing such facts by suit and final, nonappealable judgment. In
addition, if such interruption, curtailment or suspension of utilities or
services continues for thirty (30) or more consecutive business days after
Lessor receives written notice from Lessee of such condition, is not the result
of a casualty (as set forth in Paragraph 15) or a condemnation (as set forth in
Paragraph 18), and if such condition has rendered any material portion of the
Premises unusable by Lessee for such period, then Lessee shall be entitled to
terminate this Lease upon five (5) days written notice. Lessor may defeat such
termination by reinstating such failed services to the Premises prior to the end
of such five (5) day period.

          Lessee shall pay the full cost of all gas, electricity, fuel, light,
heat, power and telephone services supplied to or for the Premises. Lessee shall
pay Lessee's share of water and sewer services as a part of Lessee's Common Area
Maintenance Rental as set forth in Paragraph 4 herein; however, Lessor shall
have the right to separately meter the water supplied to the Premises and to
charge Lessee separately for its water and sewer charges as so metered, with
appropriate adjustment in Lessee's Common Area Maintenance Rental. Lessee shall
not permit discharge from the Premises into any sewer pipe or line connected
with the Premises of any thing or things likely to damage or obstruct any such
sewer pipe or line. Lessee agrees not to exceed or over load the capacity of any
utility connected to the Premises. If Lessee's equipment or operations require
additional, expanded or improved utility facilities, such additional, expanded
or improved facilities shall be installed at Lessee's sole expense in accordance
with plans and specifications approved in advance, in writing by Lessor. If
Lessee does not promptly pay for all costs incurred by Lessee for utility
services and facilities, Lessor may pay the same and such payment shall be added
to the rental of the Premises and shall be due upon demand by Lessor.

     14. SURRENDER OF LEASED PREMISES. Lessee shall not abandon the Premises
during the term of this Lease without the prior written notice to Lessor. Upon
termination of this Lease, Lessee shall quit and surrender the Premises to
Lessor in the same condition as at the commencement of the term, except for
reasonable wear and tear and except as provided in Paragraph 11(c) hereof. If
Lessee is dispossessed of the Premises by legal process or otherwise without
removing all of its fixtures and personal property permitted to be removed by
Lessee under Paragraph 11(c) of this Lease, then any such fixtures and personal
property of Lessee left on the Premises or in the Common Areas shall thereupon
become and remain the property of Lessor free and clear of any claim of Lessee,
and Lessee shall reimburse Lessor immediately upon demand for Lessor's
reasonable costs in disposing of such property and in cleaning and repairing the
Premises.

     15. DAMAGE BY CASUALTY. If the Premises is damaged so substantially by fire
or other casualty as to make the Premises wholly or partially untenantable,
Lessor shall have thirty (30) days (the "Notice Period") from the date of such
damage to notify Lessee in writing (the "Casualty Notice") whether Lessor shall
restore and repair the foundation, structural elements, exterior ways and roof
of the Premises within ninety (90) days following expiration of the Notice
Period to substantially the same condition as before the damage. If during the
Notice Period, Lessor fails to notify Lessee that Lessor does plan so to restore
and repair the Premises, then Lessee may, at its option, at any time after the
expiration of the Notice Period (but prior to the earlier to occur of (a)
Lessee's receipt of the Casualty Notice (whenever given), or (b) restoration of
the Premises), cancel this Lease and surrender the Premises to Lessor by
providing written notice thereof to Lessor; provided, however, that Lessor may
defeat such termination notice by notifying Lessee in writing within three (3)
business days of receipt of Lessee's termination notice that Lessor shall so
restore and repair the Premises and that such restoration and repair shall be
completed within ninety (90) days following expiration of the original Notice
Period . If Lessor does notify Lessee during the Notice Period (or as otherwise
set forth in the preceding sentence) that Lessor plans so to restore and repair
the Premises within ninety (90) days following expiration of the Notice Period,
then this Lease shall remain in full force and effect. If Lessor fails so to
restore the Premises to substantially the same condition as before the damage
within one hundred twenty (120) days following the date of the damage, excluding
days of delay resulting from acts of God, acts or neglect of Lessee (or of its
agents, employees, licensees or invitees), strikes, unavoidable delays in
transportation, or other events causing delay in completion of the restoration
of the Premises and outside the reasonable control of Lessor, then Lessee may,
at its option, prior to completion of repairs and restoration by Lessor and upon
ten (10) days notice to Lessor, cancel this Lease and surrender the Premises to
Lessor. To the extent that this Lease remains in effect following damage to the
Premises by fire or other casualty, the rental hereunder shall, for the time
period commencing on the date of the damage and ending on the date on which
Lessor completes restoration of the Premises, be reduced pro rata in proportion
to the rentable square footage of the Premises made untenantable by such
casualty. Notwithstanding the foregoing provisions of this Paragraph 15, if (i)
Lessor's reasonable, good-faith estimate of the cost of so restoring and
repairing the Premises is less than $225,000.00, and (ii) Lessor's reasonable,
good-faith estimate of the time required so to restore and repair the Premises
is 120 days or less, and (iii) each holder of any mortgage (as defined in
Paragraph 21 hereof) encumbering the property of which the Premises forms a part
has permitted such restoration and repair and has allowed all applicable
insurance proceeds to be applied to such restoration and repair (less any
applicable deductible amounts), then Lessor shall be obligated so to restore the
Premises within 120 days after the date of such casualty damage (subject to
extension of such restoration period due to circumstances beyond the reasonable
control of Lessor), and this Lease shall remain in full force and effect;
provided, however, that if such damage to the Premises by fire or other casualty
occurs at a time when twelve (12) months or less remain on the term of this
Lease, Lessor (unless Lessee, being then entitled to exercise its Renewal
Option, notifies that Lessor of Lessee's election to exercise its Renewal
Option, which case Lessor shall have the obligation to repair and restore the
Premises so long as the conditions set forth in (i), (ii) and (iii) hereinabove
have been met) or Lessee may at its option terminate or cancel this Lease upon
ten (10) days' written notice to the other party, whereupon Lessee shall
promptly surrender the Premises to Lessor, and thereafter no further rental
shall accrue hereunder.

     16. INDEMNITY AND PUBLIC LIABILITY. Lessee shall maintain the Premises in a
safe and careful manner. Except to the extent caused by an act or omission of
Lessor, Lessee shall indemnify and hold Lessor harmless from and against any and
all loss, liability, expense and damage (including, but not limited to,
attorneys fees that may be incurred by Lessor in connection with any such loss,
liability, damage or expense) that arises at the Premises during the Lease Term
or from any act done or omission made by, through or on behalf of Lessee, its
agents, employees, invitees, licensees or any person on the Project by reason of
the Lessee's use, occupancy or possession of the Premises or arising from any
breach or default by Lessee of any obligation of Lessee hereunder. Conversely,
except to the extent caused by any act or omission of Lessee, Lessor shall
indemnify and hold Lessee harmless from and against any and all loss, liability,
expense and damage to the Premises (including, but not limited to, attorneys
fees that may be incurred by Lessee in connection with any such loss, liability,
damage or expense) that arises as a result of any act done or omission made by,
through or on behalf of Lessor, its agents, employees, invitees or licensees or
arising from any breach or default by Lessor of any obligation

<PAGE>

of Lessor hereunder.

          Lessee further covenants and agrees to maintain at all times, during
the term of this Lease, insurance with a responsible insurance company, rated no
less than A, Class XII in the Best Insurance Guide, licensed to do business in
Georgia and satisfactory to Lessor as follows: (A) Commercial General Liability
Insurance with limit of $500,000 bodily injury and property damage liability
each occurrence, $1,000,000 General Aggregate Limit including products and
completed operations coverage and must include at a minimum contractual
liability, personal injury liability, and Premises medical payments; (B)
Comprehensive Automobile Liability with limits of $500,000 bodily injury and
property damage liability each occurrence, including hired and non-owned autos;
(C) Workers' Compensation Insurance with an employer's liability limit of
$100,000; (D) Property insurance consisting of All Risk coverage (subject to
normal all risk exclusions and limitations) on contents including improvements
and betterments on a replacement cost basis in an amount sufficient to replace
them; and (E) Commercial Umbrella Liability Insurance with a limit of at least
$3,000,000. Such policy or policies shall name Lessor as an additional insured,
shall be primary and noncontributing with any insurance carried by Lessor, and
shall not be cancelled or materially altered without thirty (30) days prior
written notice to Lessor. To the extent that the proceeds of any such policy or
policies of insurance are paid to Lessee, Lessee shall use such proceeds only to
repair or replace the damaged property or to pay the liabilities for which the
insurer paid such proceeds. Lessor will not carry insurance on Lessee's
property. Lessee shall furnish Lessor with a certificate of insurance indicating
that Lessee holds all insurance coverage's set forth above prior to beginning
occupancy hereunder and promptly thereafter upon request by Lessor at any time
and from time to time. The obligations of Lessor and Lessee under this Paragraph
16 arising by reason of any occurrence taking place during the term of this
Lease shall survive any termination of this Lease.

          Waiver of Subrogation: The Lessor agrees that it will have inserted in
each policy or policies of insurance providing coverage on an all risk basis
(subject to normal all risk exclusions and limitations) a provision
substantially as follows: "It is hereby stipulated that this insurance shall not
be invalidated should the insured waive in writing prior to a loss any or all
right of recovery against any party for loss occurring to the property described
herein." Lessor hereby waives, during the term of this Lease, any and all rights
of recovery against the Lessee, its officers, employees, and agents for loss
occurring to the Project to the extent that indemnification is due to Lessor
under such insurance protection.

          The Lessee agrees that it will have inserted in each policy or
policies of insurance providing coverage on an all risk basis (subject to normal
all risk exclusions and limitations) a provision substantially as follows: "It
is hereby stipulated that this insurance shall not be invalidated should the
insured waive in writing prior to a loss any or all right of recovery against
any party for loss occurring to the property described herein." Lessee does
hereby waive, during the term of this Lease, any and all rights of recovery
against the Lessor, its officers, employees, and agents and the joint ventures
in Lessor to the extent that indemnification would be due to Lessee under the
insurance protection required to be held by Lessee hereunder.

     17. GOVERNMENTAL ORDERS. Lessee agrees, at its own expense, to promptly
comply with all requirements of any legally constituted public authority made
necessary by reason of Lessee's occupancy of the Premises. Lessor agrees to
promptly comply with any such requirements, except for requirements imposed by
reason of Lessees occupancy or use of the Premises.

     18. EMINENT DOMAIN. If the Premises or a substantial portion thereof shall
be taken by any competent authority under the powers of eminent domain or be
required for any public or quasi-public use or purpose, then this Lease shall
terminate upon the date (the "Condemnation Date") when the title to said
Premises or the part thereof so taken shall be transferred to such authority for
such use or purpose. If this Lease is so terminated, Lessees rental hereunder
shall be prorated and payable by Lessee to Lessor until the Condemnation Date
and Lessee shall surrender the entire Premises on or before the Condemnation
Date. However, in the event of a partial taking in which the portion of the
Premises not so taken remains reasonably usable by Lessee for the purposes set
forth herein; then, with regard only to such portion of the Premises not so
taken, this Lease shall not terminate, but, effective as of the Condemnation
Date, the rental hereunder shall be reduced pro rata in proportion to the
rentable square footage of the Premises so taken. In any event, Lessee shall
have no claim for apportionment of any award paid or payable on account of any
such taking, whether total or partial, or for the value of any unexpired term of
this Lease.

          If any condemnation proceeding shall be instituted in which it is
sought to take or damage any part of the Building or the land under it or
contiguous thereto, or if the grade of any street or alley adjacent to the
Building is changed by any competent authority and such change of grade makes it
necessary or desirable to remodel the Building to conform to the changed grade,
Lessor shall have the right to cancel this Lease after giving written notice of
cancellation to Lessee not less than sixty (60) days prior to the date of
cancellation designated in the notice. If Lessor gives such notice, then rent at
the then current rate shall be prorated and payable by Lessee to Lessor until
the date of such termination. No separate consideration shall be payable by the
Lessor to the Lessee for the right of cancellation, and the Lessee shall have no
right to share in the condemnation award or in any judgment for damages caused
by such taking or such change of grade or for any unexpired term of this Lease.

          For all purposes of this Lease, any transfer by Lessor in lieu of a
condemnation proceeding or in lieu of a taking by any competent authority under
powers of eminent domain shall be deemed to be a condemnation or a taking under
powers of eminent domain, as the case may be.

     19. ASSIGNMENT AND SUBLETTING. See Exhibit "E", Special Stipulation X.

          Consent by Lessor (if required) to any assignment or sublease shall
not destroy the provisions of this Paragraph 19, and (if required by the terms
of Exhibit E, Special Stipulation X) all subsequent assignments and subleases
shall be made likewise only with the prior written consent of Lessor (which
consent shall not be unreasonably withheld, conditioned or delayed). Any
assignee of Lessee shall, at the option of Lessor, become (a) directly liable to
Lessor for all rents due by assignee to Lessee, and (b) all obligations of
Lessee hereunder. In addition, if a sublessee of Lessee defaults in the
performance of its obligations hereunder with respect to any sublease space and
Lessee thereafter fails to cure such default within the applicable cure periods
set forth herein, with respect to such sublease space, such sublessee shall, at
the option of Lessor, become directly liable to Lessor for all sublessee
obligations with respect to the sublease space. No sublease or assignment by
Lessee shall relieve Lessee of any liability hereunder. Collection by Lessor of
rental or other sums directly from assignee or sublessee shall not constitute a
novation or a release of Lessee from any obligation of Lessee hereunder.

     20. DEFAULT. (a) It is mutually agreed that each of the following events or
occurrences shall constitute an "Event of Default" by Lessee under this Lease:
(i) Lessee fails to make any payment of any rental required to be paid by Lessee
herein within five (5) days of the date when due, provided that two (2) times
per calendar year, an Event of Default shall not have occurred unless and until
Lessee fails to make a payment of any

<PAGE>

rental required to be paid by Lessee herein within five (5) days following
receipt of written notice from Lessor that such payment of rental is delinquent;
(ii) Lessee defaults in the performance of any obligation of Lessee under this
Lease other than the obligation to pay rental and fails to cure such default
within thirty (30) days after Lessor gives written notice of such default to
Lessee (provided, however, that it shall not constitute an Event of Default if
the default is not reasonably curable within such thirty (30) day period, and
prior to the end of such thirty (30) day period Lessee commences to cure such
default, thereafter diligently pursues such cure to completion, and completes
such cure within an additional ninety (90) day period); (iii) Lessee is
adjudicated bankrupt; (iv) a permanent receiver is appointed for Lessee's
property; (v) Lessee takes advantage, voluntarily or involuntarily, of any
debtor relief proceedings under any present or future law, whereby the rent or
any part thereof is, or is proposed to be, reduced or payment thereof deferred;
(vi) Lessee make an assignment for benefit of creditors; (vii) Lessee's effects
are levied upon or attached under process against Lessee, not satisfied or
dissolved within thirty (30) days after such levy or attachment.

     (b) If any Event of Default, as defined above, shall occur, then Lessor
may, at its option, immediately or at any time during the continuance of such
Event of Default, terminate this Lease by written notice to Lessee, whereupon
this Lease shall end. Upon such termination by Lessor, Lessee shall at once
remove all of Lessee's effects and surrender possession of the Premises to
Lessor; and Lessor may forthwith re-enter the Premises and repossess itself
thereof, and remove all persons and effects therefrom, by force if necessary,
without Lessor's being liable to Lessee in any manner whatsoever for such acts.

     (c) As an alternative to Lessor's remedies under subparagraph 20(b) above,
Lessor may, without terminating this Lease, re-enter the Premises and remove all
persons and property from the Premises, by force if necessary, without service
of notice or resort to legal process and without Lessor's being liable to Lessee
in any manner whatsoever for such acts. Following such re-entry, Lessor may
relet the Premises, and Lessor may, on Lessee's behalf, perform any obligation
of Lessee under the terms of this Lease, but Lessor shall not be required to
relet or to perform such obligations of Lessee. Whether or not Lessor relets the
Premises, Lessee shall be and remain liable to Lessor for the full excess of (i)
the sum of all of Lessor's costs associated with re-entry of the Premises,
cleaning, repairing and altering the Premises to make it suitable for reletting
and commissions for reletting, plus all costs of Lessor in performing Lessees
obligations hereunder and all rental obligations of Lessee hereunder over (ii)
Lessor's rental receipts from such reletting. Such excess shall be calculated by
Lessor and paid by Lessee to Lessor monthly. Such re-entry by Lessor shall not
be construed as a termination of this Lease unless Lessor gives explicit written
notice of termination to Lessee or unless termination is decreed by a court of
competent jurisdiction. Notwithstanding any such reletting without termination,
Lessor may, at any time thereafter until cure of such Event of Default has been
effected, elect to terminate this Lease.

     (d) If Lessor does terminate this Lease pursuant to Paragraph 20(b) or
Paragraph 20(c) above, then in addition to all rents accrued hereunder prior to
the date of termination and in addition to all other obligations of Lessee
hereunder, Lessee shall pay to Lessor as liquidated damages hereunder, within
thirty (30) days after demand by Lessor, an amount equal to the excess, if any,
of (i) the total amount of any rental that would have been payable by Lessee to
Lessor hereunder from the time of such termination until the date this Lease
would have expired had it not been so terminated, as reasonably estimated by
Lessor, discounted to present worth at an annual interest factor of eight
percent (8%) over (ii) the fair rental value of the Premises for the same time
period, discounted to present worth at an annual interest factor of eight
percent (8%), plus interest on such excess from the date of demand by Lessor at
the rate eighteen percent (18%) per annum.

     (e) Lessor shall not be deemed in breach of this Lease unless Lessor fails,
within the later to occur of (a) the time period required under this Lease, or
(b) thirty (30) days after receipt of notice from Lessee, to perform an
obligation required to be performed by Lessor hereunder; provided, however, that
if the nature of Lessor's obligation is such that more than thirty (30) days are
reasonably required for its performance, then Lessor shall not be in breach if
Lessor commences performance within such thirty (30) day period, thereafter
diligently pursues such cure to completion, and completes such cure within an
additional ninety (90) day period. In the event Lessor does not cure said breach
within the time periods and in accordance with the terms of this Paragraph, then
Lessee may elect to cure said breach at Lessee's expense, and to pay such
expense under protest, reserving Lessee's claim to reimbursement from Lessor.
Notwithstanding anything herein to the contrary, Lessee may not commence to cure
a Lessor obligation hereunder if, prior to the later to occur of (a) or (b)
above, Lessor has either commenced such cure in good faith or given Lessee
written notice of reasonable and good faith grounds for Lessor's delay in
commencing such cure, which notice of such reasonable and good faith grounds
must further include Lessor's good faith projection of when Lessor will commence
and complete such cure. The time periods set forth herein shall not apply in the
event of an emergency, in which event Lessee shall endeavor to provide Lessor
with as much notice as reasonably possible before commencing such cure. In all
events Lessee shall document the cost of said cure and supply said documentation
to Lessor.

     21. MORTGAGE SUBORDINATION. This Lease shall be and hereby is made subject
and subordinate at all times to the lien or security title of any mortgage
granted by Lessor which may now or hereafter affect the real property of which
the Premises forms a part, and to all renewals, modifications, consolidations,
participation's, replacements and extensions thereof. The term "mortgage" as
used in this Lease shall include deeds of trust and deeds to secure debt. Lessee
agrees that, in the event of foreclosure of any such mortgage or sale of the
Premises under a power contained therein, Lessee will attorn to and accept the
purchaser at any such sale as Lessor for the balance of the term of this Lease,
subject to all of the terms and conditions of this Lease. Lessee agrees that if
Lessor notifies Lessee of the placing of any mortgage against the Premises, then
Lessee shall not, during the term hereof, assert any claim of total or partial
eviction, of right to terminate this Lease or of right to reduce the rental
payments due hereunder unless and until (a) Lessee has given notice in writing
of the basis of such claim to the holder of any mortgage which at the time
encumbers the Premises and of which Lessee has notice, (b) a reasonable period
of time, not less than thirty (30) days, has elapsed following the giving of
such notice to permit such mortgage holder to commence action to remedy or cure
the basis of such claim, and (c) Lessor and every such mortgage holder fail to
commence and pursue such remedial action with reasonable diligence.

     22. SIGNS AND ADVERTISEMENTS. Lessee shall neither place nor cause to be
placed upon any part of the Premises, the Building or the Project any signs,
billboards or advertisements whatsoever, without the prior written consent of
Lessor (which consent shall not be unreasonably withheld, conditioned or
delayed). All signs shall conform to Lessor's Sign Criteria set forth in Exhibit
"C" attached hereto and made a part hereof, and, accordingly, it shall be
reasonable for Lessor to withhold its consent to a Lessee proposed sign,
billboard or advertisement if such sign, billboard or advertisement does not
conform to Lessor's Sign Criteria set forth in Exhibit "C". Lessee shall at all
times keep its signs in good condition and in accordance with all applicable
government regulations. Lessee shall remove all such signs before the
termination of the Lease, and Lessee shall repair any damage, defacement or
discoloration resulting from such installation or removal.

     23. LESSOR'S RIGHT OF ENTRY. Lessor or Lessor's agent may enter the
Premises at reasonable hours (and, except in the event of an

<PAGE>

emergency (in which case no advance notice shall be required), upon at least 48
hours prior written notice to Lessee) to examine the same, to cure any condition
that exists in or upon the Premises or adjacent thereto in violation of the
terms and conditions of this Lease, to show the Premises to potential
purchasers, mortgagees or tenants for years of the Building, or to do any act or
thing that Lessor is required or permitted to do hereunder or which Lessor may
deem necessary for the good of the Premises or the Building. During the last
ninety (90) days of this Lease, Lessor may display a suitable sign on the
Premises advertising the Premises available for rent and may show the Premises.

     24. EFFECT OF TERMINATION OF LEASE. No termination of this Lease, by lapse
of time or otherwise, shall impair Lessor's right to collect all rental set
forth herein for the period prior to termination hereof or for any period during
which Lessee is in possession of the Premises, whether before or after the
termination of this Lease. All obligations of Lessee hereunder not fully
performed as of the termination of this Lease (by expiration of the term hereof
or otherwise) shall survive the termination hereof. Prior to the expiration or
termination of this Lease, Lessee shall have restored the Premises, including
without limitation all fixtures and equipment therein, to the condition that
existed prior to Lessee's occupancy thereof, reasonable wear and tear excepted.
The obligations set forth in this Paragraph shall survive the expiration or
earlier termination of the Lease.

     25. NO ESTATE IN LAND. This Lease shall create the relationship of landlord
and tenant between the parties hereto and shall not have the effect of
transferring any estate from Lessor or to Lessee. Lessee obtains hereby only a
usufruct in the Premises, not subject to levy and sale, and not assignable by
Lessee except in accordance with the other terms and conditions of this Lease.

     26. HOLDING OVER. If Lessee remains in possession of the Premises after
termination of this Lease, Lessee shall be a tenant at sufferance, and Lessee
shall abide by all of the terms and provisions of this Lease, and in addition,
Lessee shall pay rental to Lessor in advance on the first day of each calendar
month during such period in an amount each month equal to one and one-half
(1.50) times the total rental that would have been payable by Lessee for such
month if the term of this Lease had included such period of holding over. During
any period of holding over, Lessee shall vacate and surrender the Premises to
Lessor immediately upon Lessee's receipt of notice from Lessor to vacate. No
holding over by Lessee, whether with or without consent of Lessor, shall operate
to extend this Lease except as otherwise expressly provided herein.

     27. WAIVER. The rights and remedies of Lessor under this Lease as well as
those provided or accorded by law shall be cumulative and shall not be exclusive
of any other rights or remedies hereunder or allowed by law. A waiver by Lessor
of any provision shall not be deemed or construed to be a continuing waiver of
such provision nor as a waiver of any other provision hereof or of any
subsequent breach of the same provision. Acceptance by Lessor of any installment
of rental subsequent to the date the same is due hereunder shall in no manner
alter or affect the covenant and obligation of Lessee to pay subsequent
installments of rental promptly upon the due date thereof. No receipt or
acceptance of money by Lessor after the termination of this Lease shall in any
manner reinstate, continue or extend the term of this Lease.

     28. NOTICES. Any notice required, permitted or convenient to be given
hereunder shall be in writing and shall be deemed given when (a) hand delivered
to a manager or officer of Lessee or Lessor, (b) faxed to the office of Lessor
or Lessee (as the case may be) so long as such fax is followed by a hard copy
either hand delivered or delivered by commercial overnight carrier, or (c) five
(5) days after properly deposited, postage and fees prepaid, with the United
States Postal Service (or official successor), certified, return receipt
requested, or (d) one (1) business day after deposit with a commercial overnight
carrier, with written verification of receipt of next-day overnight delivery,
properly addressed as follows:

<TABLE>
<S>             <C>                            <C>             <C>
IF TO LESSEE:   At the Premises and to:        IF TO LESSOR:   Endicott Company, LLC
                Vice-President of Operations                   c/o Mr. G. A. Dexter
                Somera Communications, Inc.                    Dexter Companies, LLC
                5383 Hollister Ave.                            Two Live Oak Center, Suite 625
                Santa Barbara, CA 93111                        3445 Peachtree Road, NE
                Fax No. 805-681-9053                           Atlanta, Georgia  30326-1234
                                                               Fax No. 404-262-3041
</TABLE>

     Such addressees and/or fax numbers may be changed from time to time by
either party by giving notice to the other.

     29. TIME OF ESSENCE. Time is of the essence of this Lease.

     30. BANKRUPTCY. Neither this Lease nor any interest herein nor any estate
hereby created shall pass to any trustee or receiver in bankruptcy, or to any
other receiver or assignee for the benefit of creditors or otherwise by
operation of law during the term of this Lease.

     31. SPECIAL STIPULATIONS. The Special Stipulations, if any, attached hereto
are hereby made a part hereof and to the extent that the provisions of any of
the Special Stipulations conflict with any other provisions of this Lease, the
provisions of the Special Stipulations shall control.

     32. GOVERNING LAW. This Lease shall be governed in accordance with the laws
of the State of Georgia.

     33. ENTIRE AGREEMENT. This Lease contains the entire agreement between the
parties, and no modification of this Lease shall be binding upon the parties
unless evidenced by an agreement in writing signed by the Lessor and the Lessee
after the date hereof.

     This Lease shall be binding upon and shall inure to the benefit of the
Lessor and its heirs, legal representatives, successors and assigns. This Lease
shall be binding upon and inure to the benefit of the Lessee and its heirs and
legal representatives and its assignees and sublesses, provided that such
assignees and sublesses acquired their interests in this Lease pursuant to
assignments or subleases permitted under the provisions of Paragraph 19 hereof.

     34. ATTORNEY'S FEES. In the event that, at any time after the date of this
Lease, either Lessor or Lessee shall institute any action or proceeding against
the other relating to the provisions of this Lease or any default hereunder, the
party not prevailing in such action or proceeding shall reimburse the prevailing
party all costs and expenses including, without limitation, any attorney and
other professional fees, costs or disbursements incurred in such action and/or
proceeding and in any appeal from the such action or proceeding. If any
delinquent rental owing under this Lease is collected by or through an attorney
at law, Lessee agrees to pay reasonable attorney's fees actually incurred.

     35. ESTOPPEL CERTIFICATES. Lessee agrees to certify in writing to Lessor or
to any person designated by Lessor the status of this Lease and the rental
payable hereunder, at any time and from time to time, upon twenty (20) days
written notice from Lessor. Such certificate shall certify

<PAGE>

(a) the commencement date of the Lease term and the anticipated termination date
thereof, (b) whether or not this Lease is in full force and effect; (c) whether
or not this Lease has been amended or modified, and if so, in what respects; (d)
the date through which rental payments have been made; (e) whether or not there
are any known defaults under this Lease, and if so, specifying the particulars
of such default and the action required to remedy it; (f) whether or not there
is any set-off against or defenses to the enforcement of the terms and
conditions of this Lease, and if so, specifying the particulars of such set-off
or defenses, and (g) any other matters which are reasonable and customary in
such certificates.

     36. RULES AND REGULATIONS. Lessee shall comply with and observe Lessor's
Rules and Regulations, attached hereto as Exhibit "D" and made a part hereof, as
the same may be amended or supplemented from time to time by Lessor. Lessee's
failure to keep and observe Lessor's Rules and Regulations, as amended or
supplemented from time to time by Lessor, shall constitute an Event of Default
under Paragraph 20(a)(ii) of this Lease.

     37. QUIET ENJOYMENT. Lessor warrants that, upon payment of the rental set
forth herein and performance of all obligations, covenants and agreements of
Lessee hereunder, Lessee shall peaceably and quietly have, hold and enjoy the
Premises during the full term of this Lease without let or hindrance by Lessor
or its agents, subject to the terms and conditions of this Lease.

     38. LIMITATION OF REMEDY. Lessor's obligations and liability to Lessee with
respect to this Lease shall be limited solely to Lessor's interest in the
Building, and neither Lessor nor any partner or joint venturer in Lessor nor any
officer, director or shareholder of Lessor shall have any personal liability
whatsoever with respect to this Lease.

     39. AUTHORITY OF LESSEE. The persons executing this Lease on behalf of
Lessee represent and warrant that this Lease has been duly authorized by Lessee
and properly executed and delivered by them on behalf of the Lessee and
constitutes the valid and binding agreement of the Lessee in accordance with the
terms hereof.

     40. OWNERSHIP OF BUILDING. At the time of execution hereof, Lessor is the
owner of record of the Building containing the Premises, and Gregory A. Dexter
is the person authorized to manage the Building containing the Premises. The
owner and the manager have the address set forth in Paragraph 28 herein as
Lessor's address. Lessor and Lessee hereby agree that any funds collected by the
authorized manager from Lessee under this Lease may be deposited into a broker's
trust account or into a bank account designated by Lessor.

     Lessor may transfer Lessor's ownership interest in the Building or any part
thereof. The term "Lessor", as used in this Lease, means only the owner for the
time being of the Building, so that in the event of any sale or sales of the
Building or of any lease for years thereof, Endicott Company, LLC and all joint
ventures therein (and any subsequent Lessor that transfers the Building) shall
be and hereby are entirely freed and relieved of all covenants and obligations
of Lessor thereafter accruing hereunder, and it shall be deemed without further
agreement that the purchaser or the tenant for years, as the case may be, has
assumed and agreed to carry out any and all covenants and obligations of Lessor
hereunder and is the "Lessor" hereunder during the time period that such
purchaser or tenant for years, as the case may be, has the present possessor
ownership interest in the Building. In the event that the entire Building is
severed as to ownership from the land on which it stands by sale and/or lease
for years then the entire Building's owner or tenant for years, as the case may
be, that has the right to lease space in the Building to other tenants shall be
deemed the "Lessor" hereunder. Lessee shall be bound to any succeeding party of
Lessor for all the terms, covenants and conditions hereof and shall execute any
attornment agreement not in conflict herewith at the request of Lessor or any
succeeding party of Lessor.

     41. MISCELLANEOUS. Words of any gender used in this Lease shall be held and
construed to include any other gender, and words in the singular number shall be
held to include the plural, unless the context otherwise requires.

          The captions inserted in this Lease are for convenience only and in no
any define, limit or expand the scope or intent of this Lease, or any provision
hereof, or in any way affect the interpretation of this Lease.

Lessee hereby waives the defense provided in O.C.G.A. Section 44-7-52 (formerly
codified at Ga. Code Ann. Section 61-309), as such defense may be modified or
amended from time to time, and agrees not to assert such defense in any action
by Lessor for non-payment of rent by Lessee; provided, however, that Lessor
agrees that it shall not file any such judicial action against Lessee without
providing Lessee with at least two (2) business days written notice prior to
filing any such action.

          Real Estate Brokerage Commissions relating to this Lease, if any,
shall be paid in accordance with a separate agreement between Lessor and Nickol
Commercial, Inc. and Dexter Companies, LLC (the "Broker"). Lessee and Lessor
each hereby represents and warrants to the other party that it has not retained,
employed or consulted with any broker, agent or finder other than Broker in
connection with this Lease, and each party hereby agrees to indemnify and hold
the other party harmless from and against (i) any and all claims made by any
other broker, agent or finder acting on behalf of the indemnifying party and in
connection with this Lease and (ii) all expenses (including without limitation
reasonable attorneys' fees) incurred by the other party in connection with any
such claim.

<PAGE>

          If any term, clause or provision of this Lease is or becomes illegal,
invalid, or unenforceable under any applicable law or regulation effective
during the term of this Lease, such illegality, invalidity or unenforceability
shall not affect or impair the validity or enforceability of the remaining
terms, clauses and provisions hereof, and all such remaining terms, clauses and
provisions shall continue in full force and effect.

          This Lease shall not be recorded on the real property records of any
state or local government authority without the express, prior, written consent
of Lessor.

          IN WITNESS WHEREOF, the parties have executed this Lease as of the day
and year first above written.

           LESSEE:    SOMERA COMMUNICATIONS, INC., a Delaware corporation

                      By:       /s/ Gary J. Owen
                           -----------------------------------------------------
                      Name:  GARY J. OWEN
                      Its:   Chief Financial Officer

           LESSOR:    ENDICOTT COMPANY, LLC, a Georgia limited liability company

                      BY:      /s/ Gregory A. Dexter
                           -----------------------------------------------------
                             GREGORY A. DEXTER, President and authorized
                             manager

<PAGE>

                         EXHIBIT "C" - SIGNAGE CRITERIA

SIGN CRITERIA FOR PHASES I, II, III, IV, V, VI & VIII. This criteria establishes
the uniform policies for all Tenant sign identification within Gwinnett
Corporate Center. This criteria has been established for the purpose of
maintaining the overall appearance of the Park. Conformance will be strictly
enforced. Any sign installed that does not conform to the sign criteria will be
brought into conformity at the expense of the Tenant.

     a.   General Requirements

          (1)  A drawing of the size and shape of the approved sign is shown
               below. Lettering and installation shall be paid for by the
               Tenant.

          (2)  Landlord shall approve all copy and/or logo design prior to the
               installation of the sign.

          (3)  Landlord shall direct the placement of all Tenant signs and the
               method of attachment to the Building.

          (4)  All signs must be approved by the Landlord which shall be
               constructed and installed by a sign company approved by Landlord.
               The cost of installation of such signs shall be the expense of
               the Tenant.

          (5)  Tenant shall be responsible for the fulfillment of all
               requirements for this criteria.

     b.   General Specifications

          (1)  The front sign shall be white vinyl die cut letters adhered to
               exterior glass pane.

          (2)  The back sign shall be white vinyl die cut letters adhered to
               black matte magnetic sheet which is mounted on the exterior rear
               personnel door. Location to match other existing rear personnel
               doors.

          (3)  All sign lettering shall be white in color and sized according to
               drawing below. No other color shall be allowed without Landlord's
               consent.

          (4)  No electrical or audible signs will be allowed.

          (5)  Upon the removal of any sign, any damage to the building will be
               repaired by Tenant.

          (6)  Except as provided herein, no advertising placards, banners,
               pennants, names, insignia, trademarks, or other descriptive
               material shall be affixed or maintained upon any automated
               machine, dock doors, glass panes of the building, landscaped
               area, streets or parking areas.

--------------------------------------------------------------------------------
                           FRONT SIGN
Maximum Width 32"                                         Maximum  Height 20"

                     U/L Case Helvetica Lettering
                              Suite # XXX             5" high max.
                              1" spacing
                            ABC Corporation  3" high max
                              1" spacing
                            Company Slogan   3" high max.
                              1" spacing
                             Company Logo    6"h x 18"w max.
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
                            BACK SIGN
Maximum Width 24"                                          Maximum Height 16"
                     U/L Case Helvetica Lettering
                               Suite XXX              5" high max.
                              1" spacing
                            ABC Corporation  3" high max.
--------------------------------------------------------------------------------

<PAGE>

                        EXHIBIT "D" - RULES & REGULATIONS

1.   SIGN DISPLAY. Lessor will provide at Lessee's expense signage for the
     Premises. Such signage will be coordinated throughout the business park for
     uniformity and attractiveness. No sign, tag, label, picture, advertisement
     or notice shall be displayed, distributed, inscribed, painted or affixed by
     Lessee on any part of the outside of the building, any part visible from
     the outside of the building, or any part of the demised Premises without
     prior written consent of Lessor.

2.   DRIVES AND PARKING AREA. All parking shall be within the property
     boundaries and within marked parking spaces. There should be no on-street
     parking and at not time shall any Lessee obstruct drives and loading areas
     intended for the use of all Lessees. Vehicular ingress and egress and the
     use of all parking areas, including all parking areas adjoining the
     Building, shall be subject to such restrictions, terms, conditions, rules
     and regulations, as Lessor shall, from time to time prescribe. In all
     events, parking facilities supplied by Lessor for tenants, if any, shall be
     used for vehicles which can occupy a standard parking area only, i.e. (9
     feet by 18 feet). In addition, the use of any such parking facilities shall
     be limited to normal business parking and shall not be used for the
     continuous parking of any vehicle regardless of size, and no vehicle may be
     parked within the complex for advertising purposes. The drives and parking
     areas are for the joint use of all Lessees unless specifically marked.
     Trucks shall use only designated entrances, drives and service areas.

3.   STORAGE AND LOADING AREAS. Unless specifically approved by Lessor in
     writing, no materials, supplies or equipment shall be stored in any area on
     site except inside the Premises.

4.   LOCKS. No additional locks shall be placed on the doors of the demised
     Premises by Lessee nor shall any existing locks be changed unless Lessor is
     immediately furnished with two keys thereto. Lessor will, without charge,
     furnish Lessee with two keys for each lock existing upon the entrance doors
     when Lessee assumes possession with the understanding that at the
     termination of the Lease the keys shall be returned.

5.   CONTRACTORS AND SERVICE MAINTENANCE. Lessee will refer all contractors,
     contractor's representatives and installation technicians, rendering any
     service of or to the Premises for Lessee, to Lessor for Lessor's approval
     before performance of any contractual service. This provision shall apply
     to all work performed in the Building including installation of electrical
     devices and attachments and installations of any nature affecting floors,
     walls, woodwork, trim, windows, ceilings, equipment or any other physical
     portion of the Building.

6.   LODGING. No Lessee shall at any time occupy any part of the Building as
     sleeping or lodging quarters.

7.   REGULATION FOR OPERATION AND USE. Lessee shall not place, install or
     operate on demised Premises or in any part of Building, any engine, stove
     or machinery, or conduct mechanical operations or cook thereon or therein,
     or place or use in or about the Premises any explosives, gasoline,
     kerosene, oil, acids, caustics or any flammable, explosive or hazardous
     material without written consent of Lessor. No animals shall be brought
     into the building. Lessee shall not do or permit to be done within the
     demised Premises anything which would unreasonably annoy or interfere with
     the rights of other Lessee of the Building.

8.   WINDOW COVERINGS. Windows facing the Building exterior shall at all times
     be wholly clear and uncovered (except for such blinds or curtains or other
     window coverings Lessor may provide or approve) so that a full unobstructed
     view of the interior of the demised Premises may be had from the exterior
     of the building. Blinds shall be left in the fully lowered position so as
     to keep a uniform appearance from the building exterior.

9.   MODIFICATIONS. Lessor shall have the right from time to time to modify, and
     or delete these Rules and Regulations at Lessor's sole discretion.

10.  LOST OR STOLEN PROPERTY. Lessor will not be responsible for lost or stolen
     personal property, equipment, money or jewelry from Lessee's area or public
     rooms regardless or whether such loss occurs when area is locked against
     entry or not.

<PAGE>

11.  HOUSEKEEPING. None of the entries, passages, doors, or hallways shall be
     blocked, obstructed or littered with any rubbish, litter, trash or material
     of any nature placed, emptied or thrown thereon and all alleyways serving
     the Premises shall be kept clean, neat and unobstructed and shall be used
     only for access or egress by Lessee, Lessee's agents, employees or
     invitees.

12.  WATER. The water closets and other water fixtures shall not be used for any
     purpose other than those for which they were constructed. No person shall
     waste water by interfering with the faucets or otherwise.

13.  CARPET PROTECTION. Lessee shall provide plastic or hardboard chair mats
     under all desk or workstation caster-type chairs in carpeted areas, and
     shall be responsible for any damage to carpet caused by lack of mats or any
     other abnormal puncture and wearing of carpet.

14.  SOLICITING. Canvassing, soliciting and peddling in the Project are
     prohibited, and Lessee shall cooperate to prevent such activity.

<PAGE>

EXHIBIT "E" - SPECIAL STIPULATIONS

I.   Approximately 45,038 sq. ft. of existing office and warehouse space as
     shown on the floorplan attached hereto as Exhibit "A" is provided by Lessor
     which includes partition walls and doors to be removed or added as shown
     and also includes (at Lessor's sole cost and at no cost to Lessee):

     A.   OFFICE AREA: Approximately 8,000 sq.ft. of office area to include:

          a.   Carpet to be selected by Lessee from building standard selection.

          b.   Office walls freshly painted in building standard off white
               color.

          c.   Vinyl composition tile in restrooms and break room to be waxed
               and polished.

          d.   Solid core stain grade doors with hollow metal frames.

          e.   Two (2) restrooms to include one (1) water closet, and one (1)
               lavatory in men's room; one (1) water closet and one (1) lavatory
               in women's room.

          f.   2' x 2' acoustical ceiling (9' high) in office area.

          g.   Heating, ventilating and air-conditioning systems complete.

          h.   Fluorescent lighting fixtures (2' x 4', lay-in type) to be
               provided and installed by Lessor.

          i.   Duplex electrical outlets as shown on Exhibit "A".

          j.   Existing break cabinet with stainless steel sink.

     B.   WAREHOUSE AREA: Balance of space to include:

          1.   Gas fired forced air heaters to maintain 55 DEG. F minimum at
               17 DEG. F outside temperature.

          2.   Cleaned and sealed concrete slab.

          3.   Fluorescent lighting fixtures mounted to bar joist.

          4.   Exit and emergency lights as required by code.

          5.   Seven (7) each 9w x 10'h dock high loading door and seven (7)
               each 10'w x 12'h dock high loading doors.

          6.   Protective pipe bollards for each door.

II.  Upon execution of Lease by Lessee, Lessee shall prepay the first full
     month's Base Rental, one month's Common Area Maintenance Rental, the
     Security Deposit and Lessee's "Tenant Improvement Supplement" as follows:

      Base Rental:   $19,216.21
              CAM:     1,463.74
 Security Deposit:     9,608.11
Tenant Improvement
       Supplement:     4,274.00
                     ----------
                      34,562.06

     Due upon execution of Lease by Lessee: $ 34,562.06 made payable to Endicott
Company, LLC.

III. Lessee and Lessor shall enter into a Commencement Date Addendum which shall
     confirm the Commencement Date and Termination Date of the Lease Term.
     Lessee hereby appoints Mr. Mike Jaksich as its authorized local
     representative to sign the Commencement Date Addendum. Failure to sign such
     Commencement Date Addendum shall in no way diminish the validity of the
     Lease nor negate the actual Commencement Date as determined pursuant to
     paragraphs 2 and 9 of the Lease.

IV.  Pursuant to Georgia Disclosure Law, the parties hereto acknowledge that
     Nickol Commercial, Inc. has - represented the Lessee and not the Lessor in
     this transaction and Dexter Companies, LLC has represented the Lessor and
     not the Lessee in this transaction and both Brokers shall be paid a real
     estate commission by the Lessor.

V.   The deletion itself of typed or printed language herein shall not be taken
     into account in interpreting this Lease it being understood and agreed that
     the deleted language never existed.

VI.  Hazardous Substances:

     A.   Neither Lessor nor Lessee shall cause or permit any "Hazardous
          Substances" (as hereinafter defined) to be used, placed, held,
          located, stored, or disposed of in the Premises or the Project or any
          part thereof; provided, however, that Lessee shall have the right to
          use and store in the Premises those Hazardous Substances which are
          customarily used in Lessee's business operations, but only in such
          reasonable quantities as are reasonably necessary for Lessee's use of
          the Premises (as such use is specifically permitted under the Lease),
          and only in full compliance with all applicable laws and regulations.
          Lessor and Lessee covenant and agree to obey and comply with at all
          times and in all respects, at its sole expense, all applicable laws
          and regulations concerning the use, storage, disposal, containment,
          removal, transportation, or remediation of Hazardous Substances in the
          Premises or in the Project. Lessor and Lessee covenant and agree not
          to discharge, emit or dispose of any Hazardous Substances (including
          without limitation (i) in the soil, (ii) in any storm drains; or (iii)
          in any sewage disposal system serving the Project), whether or not
          such discharge or disposal is permitted by applicable laws or
          regulations.

     B.   For purposes of this Special Stipulation VI, "Hazardous Substances"
          shall mean and include those substances which are contained in the
          list of hazardous substances adopted by the United States
          Environmental Protection Agency (EPA), as amended from time to time,
          or the list of toxic pollutants designated by Congress or the EPA, as
          amended from time to time, or which are regulated by any federal,
          state or local law, ordinance code, rule, regulation, order or decree
          regulating, relating to or imposing liability (including without
          limitation, strict liability) or standards of conduct concerning, any
          hazardous, toxic or dangerous waste, substance, or material, as now or
          at any time hereafter in effect (collectively, "Environmental Laws").

<PAGE>

EXHIBIT "E" - SPECIAL STIPULATIONS

     C.   Lessee hereby agrees to indemnify Lessor and hold Lessor harmless from
          and against any and all losses, liabilities (including without
          limitation any strict liability), damages, injuries, and expenses
          (including reasonable attorneys' fees), costs of any settlement or
          judgment and claims of any and every kind whatsoever paid, incurred or
          suffered by, or asserted against, Lessor, any joint venturer or
          partner of Lessor, or against any employees, agents, officers or
          directors of Lessor or of any joint venturer or partner of Lessor, by
          any person, entity or governmental agency for, with respect to, or as
          a direct or indirect result of (i) the violation of any Environmental
          Laws by Lessee or by its agents, employees, contractors or invitees in
          connection with Lessee's use of the Premises; or (ii) the violation by
          Lessee of any of the provisions of subparagraph (A) above; or (iii)
          the use (by any person or entity) of any Hazardous Substance in the
          Premises during the Lease Term and/or the escape, leakage, spillage
          discharge, emission or release of Hazardous Materials from the
          Premises during the Lease Term (whether or not such use and/or the
          escape, leakage, spillage discharge, emission or release is prohibited
          under this Lease or constitutes a violation of any Environmental
          Laws), including, without limitation, any losses, liabilities
          (including without limitation strict liability), damages, injuries,
          expenses (including reasonable attorneys' fees), costs of any
          settlement or judgment or claims asserted or arising under the
          Comprehensive Environmental Response, Compensation and Liability Act,
          any so-called federal, state or local "Superfund" or "Superlien" laws,
          or any other Environmental Law; provided, however, that the foregoing
          indemnity shall not be effective to the extent any such liability
          arises from the act or omission of Lessor and Lessor's agents,
          employees, or contractors. Conversely, Lessor hereby agrees to
          indemnify Lessee and hold Lessee harmless from and against (but only
          in connection with Lessee's use and occupancy of the Premises and the
          Building) any and all losses, liabilities (including without
          limitation any strict liability), damages, injuries, and expenses
          (including reasonable attorneys' fees), costs of any settlement or
          judgement and claims of any and every kind whatsoever paid, incurred
          or suffered by, or asserted against, Lessee, any joint venturer or
          partner of Lessee, or against any employees, agents, officers or
          directors of Lessee or of any joint venturer or partner of Lessee, by
          any person, entity or governmental agency for, with respect to, or as
          a direct or indirect result of (i) the violation of any Environmental
          Laws by any other tenant at the Building, (ii) the violation of any
          Environmental Laws by Lessor or by its agents, employees, contractors
          or invitees in connection with Lessor's ownership of the Building; or
          (iii) the violation by Lessor of any of the provisions of subparagraph
          (A) above; or (iv) Lessor's use of any Hazardous Substance in the
          Building (whether or not such use is a violation of any Environmental
          Laws), including, without limitation, any losses, liabilities
          (including without limitation strict liability), damages, injuries,
          expenses (including reasonable attorneys' fees), costs of any
          settlement or judgement or claims asserted or arising under the
          Comprehensive Environmental Response, Compensation and Liability Act,
          any so-called federal, state or local "Superfund" or "Superlien" laws,
          or any other Environmental Law; provided, however, that the foregoing
          indemnity shall not be effective to the extent any such liability
          arises from the act or omission of Lessee and Lessee's agents,
          employees, or contractors. The provisions of this Special Stipulation
          VI shall survive termination or expiration of this Lease only with
          respect to any and all indemnification claims which shall have been
          made pursuant to this subparagraph C by written notice given to the
          prospective indemnitor (i.e., Lessor or Lessee, as the case may be)
          within two (2) years after such termination or expiration; and the
          indemnification obligations under this subparagraph C shall apply only
          to direct, actual damages and shall in no event apply to any
          consequential damages.

VII. Financial Reports. If, at any time during the Lease Term, Lessee shall
     cease to be a publicly traded company, then, not more than once each
     calendar year, and upon at least fifteen (15) days prior written notice
     from Lessor to Lessee, Lessee shall furnish Lessee's most recently audited
     financial statements (including any notes to them) to Lessor, or if no such
     audited statements have been prepared, such other financial statements (and
     notes to them) as may have been prepared by an independent certified public
     accountant.

VIII. Dumpster. Lessee at its sole expense may procure a dumpster which must be
     kept on concrete pad directly behind the Premises in a location that does
     not interfere with other Lessees' ingress or egress. A top shall be
     provided on the dumpster and kept closed at all times so that debris will
     not blow out.

IX.  Rental Abatement. Lessee shall receive a Base Rental, Common Area
     Maintenance Rental, Taxes and Insurance Expense rental abatement for the
     first eight (8) full calendar months of the Lease Term with respect to
     18,760 square feet of the Premises. Accordingly, for each of the first
     (1st) through eighth (8th) full calendar months of the Lease Term, Lessee's
     obligation to pay Base Rental, Common Area Maintenance Rental, Taxes and
     Insurance Expense shall be limited to the amount Lessee would have paid if
     Lessee were leasing only 26,278 square feet of the Premises for such time
     periods. For example, Lessee's Base Rental obligation for each of the first
     eight (8) full calendar months of the Lease Term shall be $11,211.95.
     Lessee's Common Area Maintenance Rental, Taxes and Insurance Expense
     obligations shall be similarly prorated for the first eight (8) calendar
     months of the Lease Term.

X.   Assignment/Subletting. Lessee may, without obtaining the prior written
     consent of Lessor (but upon at least fifteen (15) business days' prior
     written notice ("Transferee Notice") to Lessor), assign this Lease or any
     interest hereunder, or sublet the Premises or any part thereof, or
     otherwise permit the Premises or any portion thereof to be used by any
     party other than Lessee (any such assignment, sublease, or other permitted
     use being a "Transfer"), only so long as (i) Lessee shall remain fully
     liable under the terms and conditions of this Lease, (ii) such assignee,
     sublessee, or other permitted user (any of the foregoing being a
     "Transferee") and its business are consistent with the quality and design
     of the Building and the Project; (iii) the Transferee's use of the Premises
     is permitted under Paragraph 8 of this Lease, (iv) the Transferee is a
     party of reasonable financial net worth and/or financial ability in light
     of the responsibilities involved under the Lease, as evidenced by financial
     statements delivered to Lessor simultaneously with the Transferee Notice,
     (v) the Transfer to Transferee will not cause the Lessor to be in violation
     of another lease agreement or other obligation to which Lessor is a party
     and will not give any occupant of the Project a right to cancel or
     materially modify its lease or sublease, and (vi) at the time of any such
     Transfer, Lessee is not in nonmonetary default under this Lease (beyond all
     applicable cure periods) and is not in monetary default under this Lease
     (without regard to whether any applicable grace or cure periods have
     expired); provided, however, that any Transfer which satisfies foregoing
     clauses (i) through (vi), inclusive, of this Special Stipulation X, shall
     also require the prior written consent of Lessor (which consent shall not
     be unreasonably withheld, delayed or conditioned) at any time when the
     financial net worth of Lessee is less than Fifty Million and No/100 Dollars
     ($50,000,000.00). Except as specifically set forth below, all other
     Transfers shall require the prior written consent of

<PAGE>

EXHIBIT "E" - SPECIAL STIPULATIONS

     Lessor (which consent shall not be unreasonably withheld, delayed or
     conditioned); and Lessee shall remain fully liable under the terms and
     conditions of this Lease, notwithstanding such consent, if any, given by
     Lessor. If Lessor's consent is required for a Transfer, then Lessor shall
     have the right to require Lessee to pay to Lessor a sum equal to Lessor's
     reasonable and actual attorneys fees and costs incurred in connection with
     the negotiation, review, and processing of such Transfer. All such sums
     owed to Lessor shall be paid to Lessor as a condition precedent to the
     effectiveness of any such consent. Notwithstanding any other provision of
     this Lease to the contrary, but subject to the last sentence of this
     Paragraph X, Lessee shall have the right, without prior consent of Lessor,
     to assign this Lease or to sublet all or any portion of the Premises to any
     entity controlled by or under common control with Lessee, any entity that
     acquires all or substantially all the assets of Lessee, any entity into
     which Lessee is merged or any entity resulting from a consolidation of
     Lessee with some other entity ("Affiliated Company"); provided, however,
     that (A) no such assignment or sublease shall release Lessee from any
     obligation or liability of Lessee under this Lease, and Lessee shall remain
     fully liable under the terms and conditions of this Lease, (B) such
     assignee or sublessee shall also be fully liable under this Lease to the
     extent of such assignment or sublease, and (C) Lessor is given written
     notice by Lessee within thirty (30) days thereof and is provided with
     reasonably requested documentation by Lessee. Notwithstanding any other
     provision of this Lease to the contrary, a Transferee shall not, without
     the prior written consent of Lessor, assign, sub-sublease, or otherwise
     transfer any of such Transferee's rights or interest with respect to the
     Premises or any portion thereof.

XI.   It is hereby agreed that the portions of the "Common Area Expense" (as
      that phrase is defined in Section 4 of the Lease) which are fully
      controllable by Lessor shall not increase from one calendar year to the
      next by more than six and one-half percent (6.5%) of the charges for the
      same which were paid (or payable) by Lessee for the immediately preceding
      calendar year. The parties hereto agree and acknowledge that cap on
      controllable expenses set forth herein shall not apply to the Insurance
      Expense and Taxes set forth in Paragraphs 5 and 6 of the Lease.

XII. Construction of Initial Leasehold Improvements:

     F.   Lessor will cause the Premises to be constructed substantially in
          accordance with the documents and specifications identified on Exhibit
          "E," Special Stipulation I and Exhibit "A," attached hereto and
          incorporated herein (the "Lessee Construction Documents").

     G.   As used in this Lease, the "Substantial Completion Date" means the
          date upon which Lessee's leasehold improvements, as shown on the
          Lessee Construction Documents, are substantially completed by Lessor
          (but not including completion of final "punch list" items) and a
          permanent or temporary certificate of occupancy is obtained for the
          Premises, accelerated by the number of days construction is delayed
          due to any cause attributable to Lessee ("Delay Items").

     H.   Delay Items shall include, but not be limited to, the following which
          occur after full execution of this Lease by Lessee and Lessor.

          1.   failure by Lessee or its architects, engineers, space planners or
               others employed by Lessee to timely provide such information as
               Lessor may reasonably request, but only to the extent such
               failure results in Lessee's leasehold improvements being
               substantially completed later than they would have been
               substantially completed absent said failure; and

          2.   changes in the Lessee Construction Documents made by Lessee
               during the general contractor pricing process which result in a
               delay in Lessor's ability to release the contractor to commence
               construction; and

          3.   changes in the Lessee Construction Documents made by Lessee
               during construction of Lessee's leasehold improvements as
               contained in Lessee Construction Documents, which result in
               Lessee's leasehold improvements being substantially completed
               later than they would have been substantially completed absent
               said changes; and

          4.   any "long-lead time" leasehold improvement item (e.g., millwork)
               other than improvements included at execution of this Lease,
               which cannot be fabricated, delivered to the job, and completely
               installed within the same time frame as the remainder of the
               leasehold improvements shown on the Lessee Construction
               Documents; and

          5.   failure by Lessee to timely execute a change order for changes
               requested by Lessee; and

          6.   delays in the completion of design, documentation or construction
               of Lessee's leasehold improvements which are caused by Lessee,
               its architects, engineers, vendors, contractors, suppliers or
               consultants.

     I.   If Lessee makes any changes in the work described in the Lessee
          Construction Documents (the "Lessee Extra Work"), Lessee shall be
          responsible for any increases in the direct cost thereof (including
          the General Contractor's standard and customary overhead and profit)
          plus an additional charge equal to three percent (3%) of such costs as
          a construction management administrative cost recovery payable to
          Lessor.

     J.   Any and all work shall be completed by Dexter Construction Services,
          LLC as the general contractor. If Lessor desires to use the services
          of any other general contractor in connection with the work, all such
          other general contractors shall be subject to Lessee's prior written
          approval (which approval shall not be unreasonably withheld, delayed
          or conditioned).

     K.   All change orders to the Lessee Construction Documents shall be
          approved in writing by both Lessor and Lessee. Prior to such approval,
          Lessee shall issue a Change Order Request including changed plans
          and/or specifications delineating the change to Lessor's general
          contractor for a quotation of the cost of the proposed change and any
          time delay resulting therefrom. Upon such approval of a change order,
          the Lessee Construction Documents shall be deemed revised to
          incorporate the change order and the agreed upon cost

<PAGE>

EXHIBIT "E" - SPECIAL STIPULATIONS

          shall be due as additional rental hereunder and one-half (1/2) of this
          agreed upon cost paid to Lessor within 15 days after approval of the
          change order by Lessee and the remaining one-half (1/2) paid within 15
          days after completion of work per the change order.

     L.   Notwithstanding anything herein to the contrary, except provided that
          this Lease is fully executed by June 30, 2000 and Lessee's
          construction documents are fully completed and executed by June 30,
          2000, should the Substantial Completion Date not occur by August 10,
          2000, as said date may be delayed by the number of days construction
          is delayed due to causes other than Delay Items (August 10, 2000, as
          so delayed, being the "Specified Date"), then for every day after the
          Specified Date (as it may be extended) and continuing until the
          Substantial Completion Date, Lessee shall (in addition to the Rental
          Abatement set forth in Section IX above, and commencing on the first
          day of the ninth (9th) full calendar month immediately following the
          Commencement Date) be entitled to one day of free Base Rental, Common
          Area Maintenance Rental, Taxes and Insurance Expense. Notwithstanding
          the foregoing, if the -- Substantial Completion Date has not occurred
          by September 10, 2000 (the "Outside Date"), then Lessee, at its option
          to be exercised within ten (10) business days following the Outside
          Date, but, in any event, prior to the Substantial Completion Date, may
          immediately terminate this Lease by written notice to Lessor. In the
          event of such termination by Lessee, then this Lease shall be null and
          void, all rights and obligations of the parties shall terminate.
          Provided that Lessor's failure to deliver possession does not result
          from Lessor's intentional or bad faith breach of this Lease, such
          termination shall be Lessee's sole and exclusive remedy for Lessor's
          failure to deliver the substantially completed Premises to Lessee on
          or prior to the Outside Date. If Lessor's failure to deliver
          possession on or prior to the Outside Date is the result of Lessor's
          intentional or bad faith breach of the Lease, Lessee shall have the
          right, in addition to its right to terminate the Lease, to pursue
          Lessor for all actual damages incurred as a result of such breach. If
          Lessee does not elect to terminate this Lease as permitted above, the
          Commencement Date shall be extended until the Substantial Completion
          Date and Lessee shall be entitled to the rent abatement set forth in
          this Section.

XIII. Renewal Option. Provided that Lessee (at the time of the delivery of the
     Extension Notice and at the end of the initial Lease Term) is not in
     default of the Lease (beyond all applicable cure periods), Lessee shall
     have one (1) five (5) year renewal option by providing irrevocable notice
     (the "Extension Notice") to Lessor at least six (6) months prior to the end
     of the initial Lease Term. Terms and conditions for such renewal term shall
     be at a continuation of the Base Rental schedule (including escalations in
     accordance with Paragraph 3 of the Lease). Lessee's renewal option shall be
     applicable regardless of whether Lessee or an assignee or sublessee of
     Lessee occupies all or any portion of the Premises. Notwithstanding the
     previous sentence (and irrespective of the amount of space at the Premises
     that Lessee subleases at the time it delivers the Extension Notice), if, at
     the end of the initial Lease Term, Lessee is then currently subleasing more
     than fifty percent (50%) of the Premises to a person or entity other than
     an Affiliated Company (as such term is defined in Special Stipulation X
     above), Lessee's Renewal Option shall be null and void and of no further
     force and/or effect and the Lease Term shall terminate at the end of the
     initial Lease Term. Further, if at any time during the initial Lease Term,
     Lessee provides Lessor with notice that Lessee intends to assign the Lease
     and the entire Premises to a person or entity other than an Affiliated
     Company (and such assignment includes the Renewal Option), Lessor shall
     have the option (but not the obligation) to recapture the entire Premises
     (with such recapture to become effective as of the effective date of the
     proposed assignment), by providing Lessee with written notice (the
     "Recapture Notice") of Lessor's election to so recapture the entire
     Premises, on or prior to that date which is five (5) business days
     following Lessee's notice to Lessor of such proposed assignment. Lessor's
     failure to timely provide Lessee with the Recapture Notice shall render
     Lessor's recapture right (as described herein) (with respect to such
     proposed assignment) null and void and of no further force and/or effect.
     The Renewal Option under this Special Stipulation XIII shall be exercisable
     only with respect to the entire Premises under this Lease, including the
     entire Additional Space (as defined in Special Stipulation XIV) if the
     Additional Space has been leased pursuant to Special Stipulation XIV during
     the initial Lease Term.

XIV. Right of First Opportunity. Provided that Lessee has not assigned the
     entire Premises, or transferred or sublet the entire Premises, other than
     to an Affiliated Company (as defined in Special Stipulation X), and
     provided that Lessee is not in default under the Lease (beyond all
     applicable cure periods) when Lessee exercises its option under this
     Special Stipulation XIV, then Lessee shall be entitled to exercise the
     option described in this Special Stipulation XIV, subject to the terms and
     conditions set forth in this Special Stipulation XIV. At least three (3)
     months prior to expiration of the lease term (including any extensions
     thereof) of the current tenant of Suite 335 (6,478 sq. ft.), 1725 Corporate
     Drive (referred to as "Additional Space") or upon the occurrence of any
     earlier termination of the lease term of the current tenant of the
     Additional Space, Lessor shall give Lessee notice of any such expiration or
     termination ("Availability Notice"); and Lessee shall have fifteen (15)
     business days after the giving of Lessor's notice in order to give Lessor
     written notice of Lessee's desire to expand into all of the Additional
     Space. Should Lessee either fail to give such notice to Lessor within said
     period of fifteen (15) business days or otherwise decline to lease the
     Additional Space, Lessor shall be entitled to lease any or all of the
     Additional Space to any third party with no further obligation to Lessee.
     If Lessee leases the Additional Space pursuant to this Special Stipulation
     XIV, Base Rental for the Additional Space shall be the same Base Rental (on
     a per square foot per year basis) as in the Lease, including escalations,
     and Lessee shall also be responsible for Tax, Insurance and Common Area
     Maintenance Rental charges with respect to the Additional Space pursuant to
     paragraphs 6, 5, and 4 of the Lease, mutatis mutandis. The Additional Space
     shall be delivered to Lessee in "as is" condition except that all systems
     shall be in good operating condition. If the Lessee exercises its option to
     expand into the Additional Space, the parties shall work together in good
     faith to reach terms on a mutually acceptable Lease amendment containing
     such agreed economic terms and the other terms required under this Special
     Stipulation XIV with respect to such Additional Space (the "Additional
     Space Lease Amendment"). If the parties fail, within a thirty (30) day
     period after Lessee provides Lessor with written notice of Lessee's desire
     to expand into the Additional Space, to execute a mutually agreeable
     Additional Space Lease Addendum, then Lessee's Right of First Opportunity
     (as set forth herein) shall expire and Lessor shall have be entitled to
     lease the Additional Space to a third party. The term of any such
     Additional Space Lease shall commence on a date which is mutually
     satisfactory to Lessor and Lessee, but which in all events is not later
     than the thirtieth (30th) calendar day after the Additional Space becomes
     vacant and all systems are in good working order and shall expire, unless
     sooner terminated in accordance with the Additional Space Lease Amendment,
     at midnight on the expiration date of the term of the Lease (as the same
     may be extended). Subject to incorporation of the economic terms described
     in the foregoing provisions of this Special Stipulation XIV, the terms and
     conditions of any Additional Space Lease Amendment shall be as set forth in
     the Lease, mutatis mutandis, but excluding from such Additional Space Lease
                ----------------
     Amendment the following provisions of the Lease: Paragraphs I, II, IX, XII,
     and XIV of Exhibit E - Special Stipulations to the Lease Agreement.
     Notwithstanding anything herein to the contrary,

<PAGE>

EXHIBIT "E" - SPECIAL STIPULATIONS

     Lessee's Right of First Opportunity to lease the Additional Space shall be
     subject to the following additional limitations: (a) if the Availability
     Notice is provided by Lessor to Lessee at any time during the last 24
     months of the initial Lease Term, Lessee shall have the right exercise its
     Right of First Opportunity to lease the Additional Space only if Lessee
     either (i) exercises its Renewal Option at the same time it exercises its
     notice of election to expand into the Additional Space, or (ii) executes an
     amendment to the Lease which extends the initial Lease Term to a date which
     is exactly two (2) years from the date the Additional Space is delivered to
     Lessee, and (b) if the Availability Notice is provided by Lessor to Lessee
     at any time during the last 24 months of the Renewal Term, Lessee shall
     have the right to exercise its Right of First Opportunity to lease the
     Additional Space only if Lessee executes an amendment to the Lease which
     extends the Renewal Term to a date which is exactly two (2) years from the
     date the Additional Space is delivered to Lessee.<PAGE>

                                                                    EXHIBIT 10.2

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

                                LOGICVISION, INC.

                              AMENDED AND RESTATED

                            2000 STOCK INCENTIVE PLAN

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

<PAGE>

                                TABLE OF CONTENTS
                                -----------------

<TABLE>
<CAPTION>
                                                                                                 Page
                                                                                                 ----
<S>                                                                                               <C>
SECTION 1.  ESTABLISHMENT AND PURPOSE.............................................................1

SECTION 2.  DEFINITIONS...........................................................................1
   (a)   "Affiliate"..............................................................................1
   (b)   "Award"..................................................................................1
   (c)   "Board of Directors".....................................................................1
   (d)   "Change in Control"......................................................................1
   (e)   "Code"...................................................................................2
   (f)   "Committee"..............................................................................2
   (g)   "Company"................................................................................2
   (h)   "Consultant".............................................................................2
   (i)   "Employee"...............................................................................3
   (j)   "Exchange Act"...........................................................................3
   (k)   "Exercise Price".........................................................................3
   (l)   "Fair Market Value"......................................................................3
   (m)   "ISO"....................................................................................3
   (n)   "Nonstatutory Option" or "NSO"...........................................................3
   (o)   "Offeree"................................................................................3
   (p)   "Option".................................................................................4
   (q)   "Optionee"...............................................................................4
   (r)   "Outside Director".......................................................................4
   (s)   "Parent".................................................................................4
   (t)   "Participant"............................................................................4
   (u)   "Plan"...................................................................................4
   (v)   "Predecessor Plan".......................................................................4
   (w)   "Purchase Price".........................................................................4
   (x)   "Restricted Share".......................................................................4
   (y)   "Restricted Share Agreement".............................................................4
   (z)   "SAR"....................................................................................4
   (aa)  "SAR Agreement"..........................................................................4
   (bb)  "Service"................................................................................4
   (cc)  "Share"..................................................................................4
   (dd)  "Stock"..................................................................................4
   (ee)  "Stock Option Agreement".................................................................4
   (ff)  "Stock Purchase Agreement"...............................................................5
   (gg)  "Stock Unit".............................................................................5
   (hh)  "Stock Unit Agreement"...................................................................5
   (ii)  "Subsidiary".............................................................................5
   (jj)  "Total and Permanent Disability".........................................................5

SECTION 3.  ADMINISTRATION........................................................................5
   (a)   Committee Composition....................................................................5
   (b)   Committee for Non-Officer Grants.........................................................5
</TABLE>

                                       -i-

<PAGE>

<TABLE>
<S>                                                                                              <C>
   (c)   Committee Procedures.....................................................................5
   (d)   Committee Responsibilities...............................................................6

SECTION 4.  ELIGIBILITY...........................................................................7
   (a)   General Rule.............................................................................7
   (b)   Outside Directors........................................................................7
   (c)   Ten-Percent Stockholders.................................................................9
   (d)   Attribution Rules........................................................................9
   (e)   Outstanding Stock........................................................................9

SECTION 5.  STOCK SUBJECT TO PLAN.................................................................9
   (a)   Basic Limitation.........................................................................9
   (b)   Annual Increase in Shares................................................................9
   (c)   Additional Shares.......................................................................10
   (d)   Dividend Equivalents....................................................................10

SECTION 6.  RESTRICTED SHARES....................................................................10
   (a)   Restricted Stock Agreement..............................................................10
   (b)   Payment for Awards......................................................................10
   (c)   Vesting.................................................................................11
   (d)   Voting and Dividend Rights..............................................................11

SECTION 7.  OTHER TERMS AND CONDITIONS OF AWARDS OR SALES........................................11
   (a)   Duration of Offers and Nontransferability of Rights.....................................11
   (b)   Withholding Taxes.......................................................................11
   (c)   Restrictions on Transfer of Shares......................................................11

SECTION 8.  TERMS AND CONDITIONS OF OPTIONS......................................................11
   (a)   Stock Option Agreement..................................................................11
   (b)   Number of Shares........................................................................12
   (c)   Exercise Price..........................................................................12
   (d)   Withholding Taxes.......................................................................12
   (e)   Exercisability and Term.................................................................12
   (f)   Nontransferability......................................................................12
   (g)   Exercise of Options Upon Termination of Service.........................................12
   (h)   Effect of Change in Control.............................................................13
   (i)   Leaves of Absence.......................................................................13
   (j)   No Rights as a Stockholder..............................................................13
   (k)   Modification, Extension and Renewal of Options..........................................13
   (l)   Restrictions on Transfer of Shares......................................................13
   (m)   Buyout Provisions.......................................................................13

SECTION 9.  PAYMENT FOR SHARES...................................................................14
   (a)   General Rule............................................................................14
   (b)   Surrender of Stock......................................................................14
   (c)   Services Rendered.......................................................................14
   (d)   Cashless Exercise.......................................................................14
</TABLE>

                                      -ii-

<PAGE>

<TABLE>
<S>                                                                                              <C>
   (e)   Exercise/Pledge.........................................................................14
   (f)   Promissory Note.........................................................................14
   (g)   Other Forms of Payment..................................................................14

SECTION 10.  STOCK APPRECIATION RIGHTS...........................................................14
   (a)   SAR Agreement...........................................................................14
   (b)   Number of Shares........................................................................15
   (c)   Exercise Price..........................................................................15
   (d)   Exercisability and Term.................................................................15
   (e)   Effect of Change in Control.............................................................15
   (f)   Exercise of SARs........................................................................15
   (g)   Special Holding Period..................................................................15
   (h)   Special Exercise Window.................................................................15
   (i)   Modification or Assumption of SARs......................................................16

SECTION 11.  STOCK UNITS.........................................................................16
   (a)   Stock Unit Agreement....................................................................16
   (b)   Payment for Awards......................................................................16
   (c)   Vesting Conditions......................................................................16
   (d)   Voting and Dividend Rights..............................................................16
   (e)   Form and Time of Settlement of Stock Units..............................................16
   (f)   Death of Recipient......................................................................17
   (g)   Creditors' Rights.......................................................................17

SECTION 12.  ADJUSTMENT OF SHARES................................................................17
   (a)   Adjustments.............................................................................17
   (b)   Dissolution or Liquidation..............................................................18
   (c)   Reorganizations.........................................................................18
   (d)   Reservation of Rights...................................................................18

SECTION 13.  DEFERRAL OF AWARDS..................................................................18

SECTION 14.  AWARDS UNDER OTHER PLANS............................................................19

SECTION 15.  PAYMENT OF DIRECTOR'S FEES IN SECURITIES............................................19
   (a)   Effective Date..........................................................................19
   (b)   Elections to Receive NSOs, Restricted Shares or Stock Units.............................19
   (c)   Number and Terms of NSOs, Restricted Shares or Stock Units..............................19

SECTION 16.  LEGAL AND REGULATORY REQUIREMENTS...................................................19

SECTION 17.  WITHHOLDING TAXES...................................................................20
   (a)   General.................................................................................20
   (b)   Share Withholding.......................................................................20

SECTION 18.  LIMITATION ON PARACHUTE PAYMENTS....................................................20
   (a)   Scope of Limitation.....................................................................20
   (b)   Basic Rule..............................................................................20
</TABLE>

                                      -iii-

<PAGE>

<TABLE>
<S>                                                                                              <C>
   (c)   Reduction of Payments...................................................................20
   (d)   Overpayments and Underpayments..........................................................21
   (e)   Related Corporations....................................................................21

SECTION 19.  NO EMPLOYMENT RIGHTS................................................................21

SECTION 20.  DURATION AND AMENDMENTS.............................................................21
   (a)   Term of the Plan........................................................................21
   (b)   Predecessor Plan........................................................................21
   (c)   Right to Amend or Terminate the Plan....................................................22
   (d)   Effect of Amendment or Termination......................................................22

SECTION 21.  EXECUTION...........................................................................22
</TABLE>

                                      -iv-

<PAGE>

                                LOGICVISION, INC.

                 AMENDED AND RESTATED 2000 STOCK INCENTIVE PLAN

SECTION 1. ESTABLISHMENT AND PURPOSE.

     The Plan was adopted by the Board of Directors on August 3, 2000 and was
amended and restated by the Board of Directors on September 25, 2000, effective
as of the commencement date of the Company's initial public offering of its
Stock on October 31, 2001, pursuant to a registration statement filed under the
Securities Act of 1933 (the "IPO"). The Plan was subsequently amended and
restated by the Board of Directors on January 17, 2002.

     The purpose of the Plan is to promote the long-term success of the Company
and the creation of stockholder value by (a) encouraging Employees, Outside
Directors and Consultants to focus on critical long-range objectives, (b)
encouraging the attraction and retention of Employees, Outside Directors and
Consultants with exceptional qualifications and (c) linking Employees, Outside
Directors and Consultants directly to stockholder interests through increased
stock ownership. The Plan seeks to achieve this purpose by providing for Awards
in the form of Restricted Shares, Stock Units, Options (which may constitute
incentive stock options or nonstatutory stock options) or stock appreciation
rights.

SECTION 2. DEFINITIONS.

     (a)"Affiliate" shall mean any entity other than a Subsidiary, if the
Company and/or one of more Subsidiaries own not less than 50% of such entity.

     (b)"Award" shall mean any award of an Option, a SAR, a Restricted Share or
a Stock Unit under the Plan.

     (c)"Board of Directors" shall mean the Board of Directors of the Company,
as constituted from time to time.

     (d)"Change in Control" shall mean the occurrence of any of the following
events:

          (i) A change in the composition of the Board of Directors occurs, as a
     result of which fewer than one-half of the incumbent directors are
     directors who either:

               (A) Had been directors of the Company on the "look-back date" (as
          defined below) (the "original directors"); or

               (B) Were elected, or nominated for election, to the Board of
          Directors with the affirmative votes of at least a majority of the
          aggregate of the original directors who were still in office at the
          time of the election or nomination and the directors whose election or
          nomination was previously so approved (the "continuing directors"); or

                                       -1-

<PAGE>

          (ii) Any "person" (as defined below) who by the acquisition or
     aggregation of securities, is or becomes the "beneficial owner" (as defined
     in Rule 13d-3 under the Exchange Act), directly or indirectly, of
     securities of the Company representing 50% or more of the combined voting
     power of the Company's then outstanding securities ordinarily (and apart
     from rights accruing under special circumstances) having the right to vote
     at elections of directors (the "Base Capital Stock"); except that any
     change in the relative beneficial ownership of the Company's securities by
     any person resulting solely from a reduction in the aggregate number of
     outstanding shares of Base Capital Stock, and any decrease thereafter in
     such person's ownership of securities, shall be disregarded until such
     person increases in any manner, directly or indirectly, such person's
     beneficial ownership of any securities of the Company; or

          (iii) The consummation of a merger or consolidation of the Corporation
     with or into another entity or any other corporate reorganization, if
     persons who were not stockholders of the Company immediately prior to such
     merger, consolidation or other reorganization own immediately after such
     merger, consolidation or other reorganization 50% or more of the voting
     power of the outstanding securities of each of (A) the continuing or
     surviving entity and (B) any direct or indirect parent corporation of such
     continuing or surviving entity; or

          (iv) The sale, transfer or other disposition of all or substantially
     all of the Company's assets.

     For purposes of Section 2(d)(i), the term "look-back" date shall mean the
later of (1) the date of the IPO or (2) the date 24 months prior to the date of
the event that may constitute a Change in Control.

     For purposes of Section 2(d)(ii), the term "person" shall have the same
meaning as when used in Sections 13(d) and 14(d) of the Exchange Act but shall
exclude (1) a trustee or other fiduciary holding securities under an employee
benefit plan maintained by the Company or a Parent or Subsidiary and (2) a
corporation owned directly or indirectly by the stockholders of the Company in
substantially the same proportions as their ownership of the Stock.

     Any other provision of this Section 2(d) notwithstanding, a transaction
shall not constitute a Change in Control if its sole purpose is to change the
state of the Company's incorporation or to create a holding company that will be
owned in substantially the same proportions by the persons who held the
Company's securities immediately before such transaction.

     (e) "Code" shall mean the Internal Revenue Code of 1986, as amended.

     (f) "Committee" shall mean the committee designated by the Board of
Directors, which is authorized to administer the Plan, as described in Section 3
hereof.

     (g) "Company" shall mean LogicVision, Inc., a Delaware corporation.

     (h) "Consultant" shall mean a consultant or advisor who provides bona fide
services to the Company, a Parent, a Subsidiary or an Affiliate as an
independent contractor or a member

                                       -2-

<PAGE>

of the board of directors of a Parent or a Subsidiary who is not an Employee.
Service as a Consultant shall be considered Service for all purposes of the
Plan.

     (i) "Employee" shall mean any individual who is a common-law employee of
the Company, a Parent or a Subsidiary.

     (j) "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended.

     (k) "Exercise Price" shall mean, in the case of an Option, the amount for
which one Common Share may be purchased upon exercise of such Option, as
specified in the applicable Stock Option Agreement. "Exercise Price," in the
case of a SAR, shall mean an amount, as specified in the applicable SAR
Agreement, which is subtracted from the Fair Market Value of one Common Share in
determining the amount payable upon exercise of such SAR.

     (l) "Fair Market Value" with respect to a Share, shall mean the market
price of one Share of Stock, determined by the Committee as follows:

          (i) If the Stock was traded over-the-counter on the date in question
     but was not traded on The Nasdaq Stock Market, then the Fair Market Value
     shall be equal to the last transaction price quoted for such date by the
     OTC Bulletin Board or, if not so quoted, shall be equal to the mean between
     the last reported representative bid and asked prices quoted for such date
     by the principal automated inter-dealer quotation system on which the Stock
     is quoted or, if the Stock is not quoted on any such system, by the "Pink
     Sheets" published by the National Quotation Bureau, Inc.;

          (ii) If the Stock was traded on The Nasdaq Stock Market, then the Fair
     Market Value shall be equal to the last reported sale price quoted for such
     date by The Nasdaq Stock Market;

          (iii) If the Stock was traded on a United States stock exchange on the
     date in question, then the Fair Market Value shall be equal to the closing
     price reported for such date by the applicable composite-transactions
     report; and

          (iv) If none of the foregoing provisions is applicable, then the Fair
     Market Value shall be determined by the Committee in good faith on such
     basis as it deems appropriate.

In all cases, the determination of Fair Market Value by the Committee shall be
conclusive and binding on all persons.

     (m) "ISO" shall mean an employee incentive stock option described in
Section 422 of the Code.

     (n) "Nonstatutory Option" or "NSO" shall mean an employee stock option that
is not an ISO.

     (o) "Offeree" shall mean an individual to whom the Committee has offered
the right to acquire Shares under the Plan (other than upon exercise of an
Option).

                                       -3-

<PAGE>

     (p) "Option" shall mean an ISO or Nonstatutory Option granted under the
Plan and entitling the holder to purchase Shares.

     (q) "Optionee" shall mean an individual or estate who holds an Option or
SAR.

     (r) "Outside Director" shall mean a member of the Board of Directors who is
not a common-law employee of the Company, a Parent or a Subsidiary. Service as
an Outside Director shall be considered Service for all purposes of the Plan,
except for purposes of determining eligibility for the grant of ISOs under
Section 4(a).

     (s) "Parent" shall mean any corporation (other than the Company) in an
unbroken chain of corporations ending with the Company, if each of the
corporations other than the Company owns stock possessing 50% or more of the
total combined voting power of all classes of stock in one of the other
corporations in such chain. A corporation that attains the status of a Parent on
a date after the adoption of the Plan shall be a Parent commencing as of such
date.

     (t) "Participant" shall mean an individual or estate who holds an Award.

     (u) "Plan" shall mean this 2000 Stock Incentive Plan of LogicVision, Inc.,
as amended from time to time.

     (v) "Predecessor Plan" shall mean the Company's 1994 Flexible Stock
Incentive Plan, as amended.

     (w) "Purchase Price" shall mean the consideration for which one Share may
be acquired under the Plan (other than upon exercise of an Option), as specified
by the Committee.

     (x) "Restricted Share" shall mean a Share awarded under the Plan.

     (y) "Restricted Share Agreement" shall mean the agreement between the
Company and the recipient of a Restricted Share which contains the terms,
conditions and restrictions pertaining to such Restricted Shares.

     (z) "SAR" shall mean a stock appreciation right granted under the Plan.

     (aa) "SAR Agreement" shall mean the agreement between the Company and an
Optionee which contains the terms, conditions and restrictions pertaining to his
or her SAR.

     (bb) "Service" shall mean service as an Employee, Consultant or Outside
Director.

     (cc) "Share" shall mean one share of Stock, as adjusted in accordance with
Section 12 (if applicable).

     (dd) "Stock" shall mean the Common Stock of the Company.

     (ee) "Stock Option Agreement" shall mean the agreement between the Company
and an Optionee that contains the terms, conditions and restrictions pertaining
to his Option.

                                       -4-

<PAGE>

     (ff) "Stock Purchase Agreement" shall mean the agreement between the
Company and an Offeree who acquires Shares under the Plan that contains the
terms, conditions and restrictions pertaining to the acquisition of such Shares.

     (gg) "Stock Unit" shall mean a bookkeeping entry representing the
equivalent of one Share, as awarded under the Plan.

     (hh) "Stock Unit Agreement" shall mean the agreement between the Company
and the recipient of a Stock Unit which contains the terms, conditions and
restrictions pertaining to such Stock Unit.

     (ii) "Subsidiary" shall mean any corporation, if the Company and/or one or
more other Subsidiaries own not less than 50% of the total combined voting power
of all classes of outstanding stock of such corporation. A corporation that
attains the status of a Subsidiary on a date after the adoption of the Plan
shall be considered a Subsidiary commencing as of such date.

     (jj) "Total and Permanent Disability" shall mean that the Optionee is
unable to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment that can be expected to result in
death or that has lasted, or can be expected to last, for a continuous period of
not less than 12 months.

SECTION 3. ADMINISTRATION.

     (a) Committee Composition. The Plan shall be administered by the Committee.
The Committee shall consist of two or more directors of the Company, who shall
be appointed by the Board. In addition, the composition of the Committee shall
satisfy

          (i)  such requirements as the Securities and Exchange Commission may
     establish for administrators acting under plans intended to qualify for
     exemption under Rule 16b-3 (or its successor) under the Exchange Act; and

          (ii) such requirements as the Internal Revenue Service may establish
     for outside directors acting under plans intended to qualify for exemption
     under Section 162(m)(4)(C) of the Code.

     (b) Committee for Non-Officer Grants. The Board may also appoint one or
more separate committees of the Board, each composed of one or more directors of
the Company who need not satisfy the requirements of Section 3(a), who may
administer the Plan with respect to Employees who are not considered officers or
directors of the Company under Section 16 of the Exchange Act, may grant Awards
under the Plan to such Employees and may determine all terms of such grants.
Within the limitations of the preceding sentence, any reference in the Plan to
the Committee shall include such committee or committees appointed pursuant to
the preceding sentence.

     (c) Committee Procedures. The Board of Directors shall designate one of the
members of the Committee as chairman. The Committee may hold meetings at such
times and places as it shall determine. The acts of a majority of the Committee
members present at

                                       -5-

<PAGE>

meetings at which a quorum exists, or acts reduced to or approved in writing by
all Committee members, shall be valid acts of the Committee.

     (d) Committee Responsibilities. Subject to the provisions of the Plan, the
Committee shall have full discretionary authority to take the following actions:

          (i)   To interpret the Plan and to apply its provisions;

          (ii)  To adopt, amend or rescind rules, procedures and forms relating
     to the Plan;

          (iii) To authorize any person to execute, on behalf of the Company,
     any instrument required to carry out the purposes of the Plan;

          (iv)  To determine when Shares are to be awarded or offered for sale
     and when Options are to be granted under the Plan;

          (v)   To select the Offerees and Optionees;

          (vi)  To determine the number of Shares to be offered to each Offeree
     or to be made subject to each Option;

          (vii) To prescribe the terms and conditions of each award or sale of
     Shares, including (without limitation) the Purchase Price, the vesting of
     the award (including accelerating the vesting of awards) and to specify the
     provisions of the Stock Purchase Agreement relating to such award or sale;

          (viii) To prescribe the terms and conditions of each Option, including
     (without limitation) the Exercise Price, the vesting or duration of the
     Option (including accelerating the vesting of the Option), to determine
     whether such Option is to be classified as an ISO or as a Nonstatutory
     Option, and to specify the provisions of the Stock Option Agreement
     relating to such Option;

          (ix)  To amend any outstanding Stock Purchase Agreement or Stock
     Option Agreement, subject to applicable legal restrictions and to the
     consent of the Offeree or Optionee who entered into such agreement;

          (x)   To prescribe the consideration for the grant of each Option or
     other right under the Plan and to determine the sufficiency of such
     consideration;

          (xi)  To determine the disposition of each Option or other right under
     the Plan in the event of an Optionee's or Offeree's divorce or dissolution
     of marriage;

          (xii) To determine whether Options or other rights under the Plan will
     be granted in replacement of other grants under an incentive or other
     compensation plan of an acquired business;

                                       -6-

<PAGE>

          (xiii) To correct any defect, supply any omission, or reconcile any
     inconsistency in the Plan, any Stock Option Agreement or any Stock Purchase
     Agreement; and

          (xiv)  To take any other actions deemed necessary or advisable for the
     administration of the Plan.

Subject to the requirements of applicable law, the Committee may designate
persons other than members of the Committee to carry out its responsibilities
and may prescribe such conditions and limitations as it may deem appropriate,
except that the Committee may not delegate its authority with regard to the
selection for participation of or the granting of Options or other rights under
the Plan to persons subject to Section 16 of the Exchange Act. All decisions,
interpretations and other actions of the Committee shall be final and binding on
all Offerees, all Optionees, and all persons deriving their rights from an
Offeree or Optionee. No member of the Committee shall be liable for any action
that he has taken or has failed to take in good faith with respect to the Plan,
any Option, or any right to acquire Shares under the Plan.

SECTION 4. ELIGIBILITY.

     (a) General Rule. Only Employees shall be eligible for the grant of ISOs.
Only Employees, Consultants and Outside Directors shall be eligible for the
grant of Restricted Shares, Stock Units, NSOs or SARs, and grants to Outside
Directors shall comply with the provisions of Section 4(b).

     (b) Outside Directors. Any other provision of the Plan notwithstanding, the
participation of Outside Directors in the Plan shall be subject to the following
restrictions:

          (i)   Outside Directors shall only be eligible for the grant of
     Restricted Shares, Stock Units, Nonstatutory Options and SARs.

          (ii)  Each Outside Director who first joins the Board of Directors
     after October 31, 2001 shall receive a Nonstatutory Option, subject to
     approval of the Plan by the Company's stockholders, to purchase 7,500
     Shares (subject to adjustment under Section 12) on the first business day
     after his or her election to the Board of Directors.

          (iii) On the first business day following the conclusion of each
     regular annual meeting of the Company's stockholders after such Outside
     Director's appointment or election to the Board of Directors, commencing
     with the annual meeting occurring after October 31, 2001, each Outside
     Director who will continue serving as a member of the Board of Directors
     thereafter shall receive an Option to purchase 2,500 Shares, subject to
     adjustment under Section 12. Each Outside Director who is not initially
     elected at a regular annual meeting of the Company's stockholders shall
     receive an Option to purchase a pro rata portion of 2,500 Shares within ten
     business days of his or her election based on the number of full months
     remaining from date of election until the next regular annual meeting of
     the Company's stockholders divided by 12. Any fractional shares resulting
     from such calculation shall be rounded up to the nearest whole number.

          (iv)  The Exercise Price of all Nonstatutory Options granted to an
     Outside Director under this Section 4(b) shall be equal to 100% of the Fair
     Market Value of a

                                       -7-

<PAGE>

     Share on the date of grant, payable in one of the forms described in
     Section 9(a), Section 9(b) or Section 9(d).

          (v) Each Option granted under Section 4(b)(ii) shall become
     exercisable in three equal annual installments on each of the first three
     anniversaries of the date of grant. Except as set forth in the next
     succeeding sentence, each Option granted under Section 4(b)(iii) above
     shall become exercisable in full on the first anniversary of the date of
     grant. Each Option granted to Outside Directors who were not initially
     elected at a regular annual meeting of the Company's stockholders shall
     become exercisable in full at the next regular annual meeting of the
     Company's stockholders following the date of grant. Notwithstanding the
     foregoing, each Option that has been outstanding for not less than six
     months shall become exercisable in full in the event that a Change in
     Control occurs with respect to the Company.

          (vi) Subject to Section 4(b)(vii) and Section 4(b)(viii), all
     Nonstatutory Options granted to an Outside Director under this Section 4(b)
     shall terminate on the tenth anniversary of the date of grant of such
     Options.

          (vii) If an Optionee's Service terminates for any reason other than
     death, then his or her Options shall expire on the earliest of the
     following occasions:

               (A) The expiration date determined pursuant to Section 4(b)(vi);

               (B) The date 24 months after the termination of the Optionee's
          Service, if the termination occurs because of his or her Total and
          Permanent Disability; or

               (C) The date six months after the termination of the Optionee's
          Service for any reason other than Total and Permanent Disability.

     The Optionee may exercise all or part of his or her Options at any time
     before the expiration of such Options under the preceding sentence, but
     only to the extent that such Options had become exercisable before his or
     her Service terminated. The balance of such Options shall lapse when the
     Optionee's Service terminates. In the event that the Optionee dies after
     the termination of his or her Service but before the expiration of his or
     her Options, all or part of such Options may be exercised at any time prior
     to their expiration by the executors or administrators of the Optionee's
     estate or by any person who has acquired such Options directly from him or
     her by bequest, inheritance or beneficiary designation under the Plan, but
     only to the extent that such Options had become exercisable before his or
     her Service terminated.

          (viii) If an Optionee dies while he or she is in Service, then his or
     her Options shall expire on the earlier of the following dates:

               (A) The expiration date determined pursuant to Section 4(b)(vi)
          above; or

                                       -8-

<PAGE>

               (B) The date 24 months after his or her death.

     All or part of the Optionee's Options may be exercised at any time before
     the expiration of such Options under the preceding sentence by the
     executors or administrators of his or her estate or by any person who has
     acquired such Options directly from him or her by bequest, inheritance or
     beneficiary designation under the Plan.

          (ix) No Option shall be transferable by the Optionee other than by
     will, by written beneficiary designation or by the laws of descent and
     distribution. An Option may be exercised during the lifetime of the
     Optionee only by the Optionee or by the Optionee's guardian or legal
     representative. Except as permitted by the Committee, no Option or interest
     therein may be transferred, assigned, pledged or hypothecated by the
     Optionee during his or her lifetime, whether by operation of law or
     otherwise, or be made subject to execution, attachment or similar process.

     (c) Ten-Percent Stockholders. An Employee who owns more than 10% of the
total combined voting power of all classes of outstanding stock of the Company,
a Parent or Subsidiary shall not be eligible for the grant of an ISO unless (a)
the Exercise Price under the ISO is not less than 110% of the Fair Market Value
of a Share on the date of grant; and (b) the term of the ISO does not exceed 5
years from the date of grant.

     (d) Attribution Rules. For purposes of Section 4(c) above, in determining
stock ownership, an Employee shall be deemed to own the stock owned, directly or
indirectly, by or for such Employee's brothers, sisters, spouse, ancestors and
lineal descendants. Stock owned, directly or indirectly, by or for a
corporation, partnership, estate or trust shall be deemed to be owned
proportionately by or for its stockholders, partners or beneficiaries.

     (e) Outstanding Stock. For purposes of Section 4(c) above, "outstanding
stock" shall include all stock actually issued and outstanding immediately after
the grant. "Outstanding stock" shall not include shares authorized for issuance
under outstanding options held by the Employee or by any other person.

SECTION 5. STOCK SUBJECT TO PLAN.

     (a) Basic Limitation. Shares offered under the Plan shall be authorized but
unissued Shares or treasury Shares. The maximum aggregate number of Options,
SARs, Stock Units and Restricted Shares awarded under the Plan shall not exceed
1,000,000 Shares, plus the additional Shares described in Section 5(b) and
Section 5(c). The limitation of this Section 5(a) shall be subject to adjustment
pursuant to Section 12.

     (b) Annual Increase in Shares. As of January 1 of each year, commencing
with the year 2002, the aggregate number of Options, SARs, Stock Units and
Restricted Shares that may be awarded under the Plan shall automatically
increase by a number equal to the lesser of (i) 750,000 shares, (ii) 3.5% of the
outstanding shares of Stock of the Company on such date or (iii) a lesser amount
determined by the Board. The aggregate number of Shares that may be issued under
the Plan shall at all times be subject to adjustment pursuant to Section 12. The
number of Shares that are subject to Options or other rights outstanding at any
time under the Plan shall not exceed the number of Shares which then remain
available for issuance under the

                                       -9-

<PAGE>

Plan. The Company, during the term of the Plan, shall at all times reserve and
keep available sufficient Shares to satisfy the requirements of the Plan.

     (c) Additional Shares.

          (i)   On the effective date of the Plan, all shares of Common Stock
     which are then available for the grant of stock options or for issuance
     under the Predecessor Plan (together with such additional number of shares
     as may be required pursuant to the antidilution provisions of the
     Predecessor Plan), shall become available for Awards under the Plan.

          (ii)  Upon the expiration or termination unexercised of currently
     outstanding options or the repurchase of restricted shares under the
     Predecessor Plan, the Company shall reserve an equivalent number of shares
     as were initially reserved for issuance pursuant to such expired or
     terminated unexercised options or repurchased shares (together with such
     additional number of shares as may be required pursuant to the antidilution
     provisions of the Predecessor Plan) of its Common Stock, subject to
     adjustment under Section 12, and such shares shall become available for
     Awards under the Plan.

          (iii) If Restricted Shares or Shares issued upon the exercise of
     Options are forfeited, then such Shares shall again become available for
     Awards under the Plan. If Stock Units, Options or SARs are forfeited or
     terminate for any other reason before being exercised, then the
     corresponding Shares shall again become available for Awards under the
     Plan. If Stock Units are settled, then only the number of Shares (if any)
     actually issued in settlement of such Stock Units shall reduce the number
     available under Section 5(a) and the balance shall again become available
     for Awards under the Plan. If SARs are exercised, then only the number of
     Shares (if any) actually issued in settlement of such SARs shall reduce the
     number available in Section 5(a) and the balance shall again become
     available for Awards under the Plan. The foregoing notwithstanding, the
     aggregate number of Shares that may be issued under the Plan upon the
     exercise of ISOs shall not be increased when Restricted Shares or other
     Shares are forfeited.

     (d) Dividend Equivalents. Any dividend equivalents paid or credited under
the Plan shall not be applied against the number of Restricted Shares, Stock
Units, Options or SARs available for Awards, whether or not such dividend
equivalents are converted into Stock Units.

SECTION 6. RESTRICTED SHARES

     (a) Restricted Stock Agreement. Each grant of Restricted Shares under the
Plan shall be evidenced by a Restricted Stock Agreement between the recipient
and the Company. Such Restricted Shares shall be subject to all applicable terms
of the Plan and may be subject to any other terms that are not inconsistent with
the Plan. The provisions of the various Restricted Stock Agreements entered into
under the Plan need not be identical.

     (b) Payment for Awards. Subject to the following sentence, Restricted
Shares may be sold or awarded under the Plan for such consideration as the
Committee may determine, including (without limitation) cash, cash equivalents,
full-recourse promissory notes, past

                                      -10-

<PAGE>

services and future services. To the extent that an Award consists of newly
issued Restricted Shares, the Award recipient shall furnish consideration with a
value not less than the par value of such Restricted Shares in the form of cash,
cash equivalents, or past services rendered to the Company (or a Parent or
Subsidiary), as the Committee may determine.

     (c) Vesting. Each Award of Restricted Shares may or may not be subject to
vesting. Vesting shall occur, in full or in installments, upon satisfaction of
the conditions specified in the Restricted Stock Agreement. A Restricted Stock
Agreement may provide for accelerated vesting in the event of the Participant's
death, disability or retirement or other events. The Committee may determine, at
the time of granting Restricted Shares of thereafter, that all or part of such
Restricted Shares shall become vested in the event that a Change in Control
occurs with respect to the Company.

     (d) Voting and Dividend Rights. The holders of Restricted Shares awarded
under the Plan shall have the same voting, dividend and other rights as the
Company's other stockholders. A Restricted Stock Agreement, however, may require
that the holders of Restricted Shares invest any cash dividends received in
additional Restricted Shares. Such additional Restricted Shares shall be subject
to the same conditions and restrictions as the Award with respect to which the
dividends were paid.

SECTION 7. OTHER TERMS AND CONDITIONS OF AWARDS OR SALES.

     (a) Duration of Offers and Nontransferability of Rights. Any right to
acquire Shares under the Plan (other than an Option) shall automatically expire
if not exercised by the Offeree 30 days after the grant of such right was
communicated to him by the Committee. Such right shall not be transferable and
shall be exercisable only by the Offeree to whom such right was granted.

     (b) Withholding Taxes. As a condition to the purchase of Shares, the
Offeree shall make such arrangements as the Committee may require for the
satisfaction of any federal, state or local withholding tax obligations that may
arise in connection with such purchase.

     (c) Restrictions on Transfer of Shares. Any Shares awarded or sold under
the Plan shall be subject to such special forfeiture conditions, rights of
repurchase, rights of first refusal and other transfer restrictions as the
Committee may determine. Such restrictions shall be set forth in the applicable
Stock Purchase Agreement and shall apply in addition to any general restrictions
that may apply to all holders of Shares.

SECTION 8. TERMS AND CONDITIONS OF OPTIONS.

     (a) Stock Option Agreement. Each grant of an Option under the Plan shall be
evidenced by a Stock Option Agreement between the Optionee and the Company. Such
Option shall be subject to all applicable terms and conditions of the Plan and
may be subject to any other terms and conditions which are not inconsistent with
the Plan and which the Committee deems appropriate for inclusion in a Stock
Option Agreement. The Stock Option Agreement shall specify whether the Option is
an ISO or an NSO. The provisions of the various Stock Option Agreements entered
into under the Plan need not be identical. Options may be granted in
consideration of a reduction in the Optionee's other compensation. A Stock
Option Agreement

                                      -11-

<PAGE>

may provide that a new Option will be granted automatically to the Optionee when
he or she exercises a prior Option and pays the Exercise Price in a form
described in Section 9(b).

     (b) Number of Shares. Each Stock Option Agreement shall specify the number
of Shares that are subject to the Option and shall provide for the adjustment of
such number in accordance with Section 12. No Employee or Consultant shall be
granted Options to purchase more than 500,000 Shares in any fiscal year of the
Company, except that Options granted to a new Employee or Consultant in the
fiscal year of the Company in which his or her Service first commences shall not
cover more than 1,000,000 Shares (in each case subject to adjustment in
accordance with Section 12).

     (c) Exercise Price. Each Stock Option Agreement shall specify the Exercise
Price. The Exercise Price of an ISO shall not be less than 100% of the Fair
Market Value of a Share on the date of grant, except as otherwise provided in
Section 4(c), and the Exercise Price of an NSO shall not be less than 100% of
the Fair Market Value of a Share on the date of grant. Subject to the foregoing
in this Section 8(c), the Exercise Price under any Option shall be determined by
the Committee at its sole discretion. The Exercise Price shall be payable in one
of the forms described in Section 9.

     (d) Withholding Taxes. As a condition to the exercise of an Option, the
Optionee shall make such arrangements as the Committee may require for the
satisfaction of any federal, state or local withholding tax obligations that may
arise in connection with such exercise. The Optionee shall also make such
arrangements as the Committee may require for the satisfaction of any federal,
state or local withholding tax obligations that may arise in connection with the
disposition of Shares acquired by exercising an Option.

     (e) Exercisability and Term. Each Stock Option Agreement shall specify the
date when all or any installment of the Option is to become exercisable. The
Stock Option Agreement shall also specify the term of the Option; provided that
the term of an ISO shall in no event exceed 10 years from the date of grant
(five years for Employees described in Section 4(c)). A Stock Option Agreement
may provide for accelerated exercisability in the event of the Optionee's death,
disability, or retirement or other events and may provide for expiration prior
to the end of its term in the event of the termination of the Optionee's
service. Options may be awarded in combination with SARs, and such an Award may
provide that the Options will not be exercisable unless the related SARs are
forfeited. Subject to the foregoing in this Section 8(e), the Committee at its
sole discretion shall determine when all or any installment of an Option is to
become exercisable and when an Option is to expire.

     (f) Nontransferability. Except as permitted by the Committee, during an
Optionee's lifetime, his or her Option(s) shall be exercisable only by the
Optionee and shall not be transferable. In the event of an Optionee's death, his
or her Option(s) shall not be transferable other than by will or by the laws of
descent and distribution.

     (g) Exercise of Options Upon Termination of Service. Each Stock Option
Agreement shall set forth the extent to which the Optionee shall have the right
to exercise the Option following termination of the Optionee's Service with the
Company and its Subsidiaries, and the right to exercise the Option of any
executors or administrators of the Optionee's estate or any

                                      -12-

<PAGE>

person who has acquired such Option(s) directly from the Optionee by bequest or
inheritance. Such provisions shall be determined in the sole discretion of the
Committee, need not be uniform among all Options issued pursuant to the Plan,
and may reflect distinctions based on the reasons for termination of Service.

     (h) Effect of Change in Control. The Committee may determine, at the time
of granting an Option or thereafter, that such Option shall become exercisable
as to all or part of the Shares subject to such Option in the event that a
Change in Control occurs with respect to the Company.

     (i) Leaves of Absence. An Employee's Service shall cease when such Employee
ceases to be actively employed by, or a consultant or adviser to, the Company
(or any subsidiary) as determined in the sole discretion of the Board of
Directors. For purposes of Options, Service does not terminate when an Employee
goes on a bona fide leave of absence, that was approved by the Company in
writing, if the terms of the leave provide for continued service crediting, or
when continued service crediting is required by applicable law. However, for
purposes of determining whether an Option is entitled to ISO status, an
Employee's Service will be treated as terminating 90 days after such Employee
went on leave, unless such Employee's right to return to active work is
guaranteed by law or by a contract. Service terminates in any event when the
approved leave ends, unless such Employee immediately returns to active work.
The Company shall have the discretionary authority to determine which leaves
count toward Service, and when Service terminates for all purposes under the
Plan.

     (j) No Rights as a Stockholder. An Optionee, or a transferee of an
Optionee, shall have no rights as a stockholder with respect to any Shares
covered by his Option until the date of the issuance of a stock certificate for
such Shares. No adjustments shall be made, except as provided in Section 12.

     (k) Modification, Extension and Renewal of Options. Within the limitations
of the Plan, the Committee may modify, extend or renew outstanding options or
may accept the cancellation of outstanding options (to the extent not previously
exercised), whether or not granted hereunder, in return for the grant of new
Options for the same or a different number of Shares and at the same or a
different exercise price. The foregoing notwithstanding, no modification of an
Option shall, without the consent of the Optionee, alter or impair his or her
rights or obligations under such Option.

     (l) Restrictions on Transfer of Shares. Any Shares issued upon exercise of
an Option shall be subject to such special forfeiture conditions, rights of
repurchase, rights of first refusal and other transfer restrictions as the
Committee may determine. Such restrictions shall be set forth in the applicable
Stock Option Agreement and shall apply in addition to any general restrictions
that may apply to all holders of Shares.

     (m) Buyout Provisions. The Committee may at any time (a) offer to buy out
for a payment in cash or cash equivalents an Option previously granted or (b)
authorize an Optionee to elect to cash out an Option previously granted, in
either case at such time and based upon such terms and conditions as the
Committee shall establish.

                                      -13-

<PAGE>

SECTION 9.  PAYMENT FOR SHARES.

     (a) General Rule. The entire Exercise Price of Shares issued under the Plan
shall be payable in lawful money of the United States of America at the time
when such Shares are purchased, except as provided in Section 9(b) through
Section 9(g) below.

     (b) Surrender of Stock. To the extent that a Stock Option Agreement so
provides, payment may be made all or in part by surrendering, or attesting to
the ownership of, Shares which have already been owned by the Optionee or his
representative for more than 12 months. Such Shares shall be valued at their
Fair Market Value on the date when the new Shares are purchased under the Plan.
The Optionee shall not surrender, or attest to the ownership of, Shares in
payment of the Exercise Price if such action would cause the Company to
recognize compensation expense (or additional compensation expense) with respect
to the Option for financial reporting purposes.

     (c) Services Rendered. At the discretion of the Committee, Shares may be
awarded under the Plan in consideration of services rendered to the Company or a
Subsidiary prior to the award. If Shares are awarded without the payment of a
Purchase Price in cash, the Committee shall make a determination (at the time of
the award) of the value of the services rendered by the Offeree and the
sufficiency of the consideration to meet the requirements of Section 6(b).

     (d) Cashless Exercise. To the extent that a Stock Option Agreement so
provides, payment may be made all or in part by delivery (on a form prescribed
by the Committee) of an irrevocable direction to a securities broker to sell
Shares and to deliver all or part of the sale proceeds to the Company in payment
of the aggregate Exercise Price.

     (e) Exercise/Pledge. To the extent that a Stock Option Agreement so
provides, payment may be made all or in part by delivery (on a form prescribed
by the Committee) of an irrevocable direction to a securities broker or lender
to pledge Shares, as security for a loan, and to deliver all or part of the loan
proceeds to the Company in payment of the aggregate Exercise Price.

     (f) Promissory Note. To the extent that a Stock Option Agreement so
provides, payment may be made all or in part by delivering (on a form prescribed
by the Company) a full-recourse promissory note. However, the par value of the
Common Shares being purchased under the Plan, if newly issued, shall be paid in
cash or cash equivalents.

     (g) Other Forms of Payment. To the extent that a Stock Option Agreement so
provides, payment may be made in any other form that is consistent with
applicable laws, regulations and rules.

SECTION 10. STOCK APPRECIATION RIGHTS.

     (a) SAR Agreement. Each grant of a SAR under the Plan shall be evidenced by
a SAR Agreement between the Optionee and the Company. Such SAR shall be subject
to all applicable terms of the Plan and may be subject to any other terms that
are not inconsistent with the Plan. The provisions of the various SAR Agreements
entered into under the Plan need not be

                                      -14-

<PAGE>

identical. SARs may be granted in consideration of a reduction in the Optionee's
other compensation.

     (b) Number of Shares. Each SAR Agreement shall specify the number of Shares
to which the SAR pertains and shall provide for the adjustment of such number in
accordance with Section 12. SARs granted to any Optionee in a single calendar
year shall in no event pertain to more than 500,000 Shares, except that SARs
granted to a new Employee or Consultant in the fiscal year of the Company in
which his or her Service first commences shall not pertain to more than
1,000,000 Shares. The limitations set forth in the preceding sentence shall be
subject to adjustment in accordance with Section 12.

     (c) Exercise Price. Each SAR Agreement shall specify the Exercise Price. A
SAR Agreement may specify an Exercise Price that varies in accordance with a
predetermined formula while the SAR is outstanding.

     (d) Exercisability and Term. Each SAR Agreement shall specify the date when
all or any installment of the SAR is to become exercisable. The SAR Agreement
shall also specify the term of the SAR. A SAR Agreement may provide for
accelerated exercisability in the event of the Optionee's death, disability or
retirement or other events and may provide for expiration prior to the end of
its term in the event of the termination of the Optionee's service. SARs may be
awarded in combination with Options, and such an Award may provide that the SARs
will not be exercisable unless the related Options are forfeited. A SAR may be
included in an ISO only at the time of grant but may be included in an NSO at
the time of grant or thereafter. A SAR granted under the Plan may provide that
it will be exercisable only in the event of a Change in Control.

     (e) Effect of Change in Control. The Committee may determine, at the time
of granting a SAR or thereafter, that such SAR shall become fully exercisable as
to all Common Shares subject to such SAR in the event that a Change in Control
occurs with respect to the Company.

     (f) Exercise of SARs. If, on the date when a SAR expires, the Exercise
Price under such SAR is less than the Fair Market Value on such date but any
portion of such SAR has not been exercised or surrendered, then such SAR shall
automatically be deemed to be exercised as of such date with respect to such
portion. Upon exercise of a SAR, the Optionee (or any person having the right to
exercise the SAR after his or her death) shall receive from the Company (a)
Shares, (b) cash or (c) a combination of Shares and cash, as the Committee shall
determine. The amount of cash and/or the Fair Market Value of Shares received
upon exercise of SARs shall, in the aggregate, be equal to the amount by which
the Fair Market Value (on the date of surrender) of the Shares subject to the
SARs exceeds the Exercise Price.

     (g) Special Holding Period. To the extent required by Section 16 of the
Exchange Act or any rule thereunder, an SAR shall not be exercised for cash
unless both it and the related Option have been outstanding for more than six
months.

     (h) Special Exercise Window. To the extent required by Section 16 of the
Exchange Act or any rule thereunder, an SAR may only be exercised for cash
during a period which

                                      -15-

<PAGE>

(a) begins on the third business day following a date when the Company's
quarterly summary statement of sales and earnings is released to the public and
(b) ends on the 45th business day following such date. This Section 10(h) shall
not apply if the exercise occurs automatically on the date when the related
Option expires, and the Committee may determine that it shall not apply to
limited SARs that are exercisable only in the event of a Change in Control.

     (i) Modification or Assumption of SARs. Within the limitations of the Plan,
the Committee may modify, extend or assume outstanding SARs or may accept the
cancellation of outstanding SARs (whether granted by the Company or by another
issuer) in return for the grant of new SARs for the same or a different number
of shares and at the same or a different exercise price. The foregoing
notwithstanding, no modification of a SAR shall, without the consent of the
Optionee, may alter or impair his or her rights or obligations under such SAR.

SECTION 11. STOCK UNITS.

     (a) Stock Unit Agreement. Each grant of Stock Units under the Plan shall be
evidenced by a Stock Unit Agreement between the recipient and the Company. Such
Stock Units shall be subject to all applicable terms of the Plan and may be
subject to any other terms that are not inconsistent with the Plan. The
provisions of the various Stock Unit Agreements entered into under the Plan need
not be identical. Stock Units may be granted in consideration of a reduction in
the recipient's other compensation.

     (b) Payment for Awards. To the extent that an Award is granted in the form
of Stock Units, no cash consideration shall be required of the Award recipients.

     (c) Vesting Conditions. Each Award of Stock Units may or may not be subject
to vesting. Vesting shall occur, in full or in installments, upon satisfaction
of the conditions specified in the Stock Unit Agreement. A Stock Unit Agreement
may provide for accelerated vesting in the event of the Participant's death,
disability or retirement or other events. The Committee may determine, at the
time of granting Stock Units or thereafter, that all or part of such Stock Units
shall become vested in the event that a Change in Control occurs with respect to
the Company.

     (d) Voting and Dividend Rights. The holders of Stock Units shall have no
voting rights. Prior to settlement or forfeiture, any Stock Unit awarded under
the Plan may, at the Committee's discretion, carry with it a right to dividend
equivalents. Such right entitles the holder to be credited with an amount equal
to all cash dividends paid on one Share while the Stock Unit is outstanding.
Dividend equivalents may be converted into additional Stock Units. Settlement of
dividend equivalents may be made in the form of cash, in the form of Shares, or
in a combination of both. Prior to distribution, any dividend equivalents which
are not paid shall be subject to the same conditions and restrictions (including
without limitation, any forfeiture conditions) as the Stock Units to which they
attach.

     (e) Form and Time of Settlement of Stock Units. Settlement of vested Stock
Units may be made in the form of (a) cash, (b) Shares or (c) any combination of
both, as determined by the Committee. The actual number of Stock Units eligible
for settlement may be larger or smaller than the number included in the original
Award, based on predetermined performance

                                      -16-

<PAGE>

factors. Methods of converting Stock Units into cash may include (without
limitation) a method based on the average Fair Market Value of Shares over a
series of trading days. Vested Stock Units may be settled in a lump sum or in
installments. The distribution may occur or commence when all vesting conditions
applicable to the Stock Units have been satisfied or have lapsed, or it may be
deferred to any later date. The amount of a deferred distribution may be
increased by an interest factor or by dividend equivalents. Until an Award of
Stock Units is settled, the number of such Stock Units shall be subject to
adjustment pursuant to Section 12.

     (f) Death of Recipient. Any Stock Units Award that becomes payable after
the recipient's death shall be distributed to the recipient's beneficiary or
beneficiaries. Each recipient of a Stock Units Award under the Plan shall
designate one or more beneficiaries for this purpose by filing the prescribed
form with the Company. A beneficiary designation may be changed by filing the
prescribed form with the Company at any time before the Award recipient's death.
If no beneficiary was designated or if no designated beneficiary survives the
Award recipient, then any Stock Units Award that becomes payable after the
recipient's death shall be distributed to the recipient's estate.

     (g) Creditors' Rights. A holder of Stock Units shall have no rights other
than those of a general creditor of the Company. Stock Units represent an
unfunded and unsecured obligation of the Company, subject to the terms and
conditions of the applicable Stock Unit Agreement.

SECTION 12. ADJUSTMENT OF SHARES.

     (a) Adjustments. In the event of a subdivision of the outstanding Stock, a
declaration of a dividend payable in Shares, a declaration of a dividend payable
in a form other than Shares in an amount that has a material effect on the price
of Shares, a combination or consolidation of the outstanding Stock (by
reclassification or otherwise) into a lesser number of Shares, a
recapitalization, a spin-off or a similar occurrence, the Committee shall make
such adjustments as it, in its sole discretion, deems appropriate in one or more
of:

          (i)   The number of Options, SARs, Restricted Shares and Stock Units
     available for future Awards under Section 5;

          (ii)  The limitations set forth in Section 8(b) and Section 10(b);

          (iii) The number of NSOs to be granted to Outside Directors under
     Section 4(b);

          (iv)  The number of Shares covered by each outstanding Option and SAR;

          (v)   The Exercise Price under each outstanding Option and SAR; or

          (vi)  The number of Stock Units included in any prior Award which has
     not yet been settled.

Except as provided in this Section 12, a Participant shall have no rights by
reason of any issue by the Company of stock of any class or securities
convertible into stock of any class, any

                                      -17-

<PAGE>

subdivision or consolidation of shares of stock of any class, the payment of any
stock dividend or any other increase or decrease in the number of shares of
stock of any class.

     (b) Dissolution or Liquidation. To the extent not previously exercised or
settled, Options, SARs and Stock Units shall terminate immediately prior to the
dissolution or liquidation of the Company.

     (c) Reorganizations. In the event that the Company is a party to a merger
or other reorganization, outstanding Awards shall be subject to the agreement of
merger or reorganization. Such agreement shall provide for:

          (i)   The continuation of the outstanding Awards by the Company, if
     the Company is a surviving corporation;

          (ii)  The assumption of the outstanding Awards by the surviving
     corporation or its parent or subsidiary;

          (iii) The substitution by the surviving corporation or its parent or
     subsidiary of its own awards for the outstanding Awards;

          (iv)  Full exercisability or vesting and accelerated expiration of the
     outstanding Awards; or

          (v)   Settlement of the full value of the outstanding Awards in cash
     or cash equivalents followed by cancellation of such Awards.

     (d) Reservation of Rights. Except as provided in this Section 12, an
Optionee or Offeree shall have no rights by reason of any subdivision or
consolidation of shares of stock of any class, the payment of any dividend or
any other increase or decrease in the number of shares of stock of any class.
Any issue by the Company of shares of stock of any class, or securities
convertible into shares of stock of any class, shall not affect, and no
adjustment by reason thereof shall be made with respect to, the number or
Exercise Price of Shares subject to an Option. The grant of an Option pursuant
to the Plan shall not affect in any way the right or power of the Company to
make adjustments, reclassifications, reorganizations or changes of its capital
or business structure, to merge or consolidate or to dissolve, liquidate, sell
or transfer all or any part of its business or assets.

SECTION 13. DEFERRAL OF AWARDS.

     The Committee (in its sole discretion) may permit or require a Participant
to:

     (a) Have cash that otherwise would be paid to such Participant as a result
of the exercise of a SAR or the settlement of Stock Units credited to a deferred
compensation account established for such Participant by the Committee as an
entry on the Company's books;

     (b) Have Shares that otherwise would be delivered to such Participant as a
result of the exercise of an Option or SAR converted into an equal number of
Stock Units; or

                                      -18-

<PAGE>

     (c) Have Shares that otherwise would be delivered to such Participant as a
result of the exercise of an Option or SAR or the settlement of Stock Units
converted into amounts credited to a deferred compensation account established
for such Participant by the Committee as an entry on the Company's books. Such
amounts shall be determined by reference to the Fair Market Value of such Shares
as of the date when they otherwise would have been delivered to such
Participant.

     A deferred compensation account established under this Section 13 may be
credited with interest or other forms of investment return, as determined by the
Committee. A Participant for whom such an account is established shall have no
rights other than those of a general creditor of the Company. Such an account
shall represent an unfunded and unsecured obligation of the Company and shall be
subject to the terms and conditions of the applicable agreement between such
Participant and the Company. If the deferral or conversion of Awards is
permitted or required, the Committee (in its sole discretion) may establish
rules, procedures and forms pertaining to such Awards, including (without
limitation) the settlement of deferred compensation accounts established under
this Section 13.

SECTION 14. AWARDS UNDER OTHER PLANS.

     The Company may grant awards under other plans or programs. Such awards may
be settled in the form of Shares issued under this Plan. Such Shares shall be
treated for all purposes under the Plan like Shares issued in settlement of
Stock Units and shall, when issued, reduce the number of Shares available under
Section 5.

SECTION 15. PAYMENT OF DIRECTOR'S FEES IN SECURITIES.

     (a) Effective Date. No provision of this Section 15 shall be effective
unless and until the Board has determined to implement such provision.

     (b) Elections to Receive NSOs, Restricted Shares or Stock Units. An Outside
Director may elect to receive his or her annual retainer payments and/or meeting
fees from the Company in the form of cash, NSOs, Restricted Shares or Stock
Units, or a combination thereof, as determined by the Board. Such NSOs,
Restricted Shares and Stock Units shall be issued under the Plan. An election
under this Section 15 shall be filed with the Company on the prescribed form.

     (c) Number and Terms of NSOs, Restricted Shares or Stock Units. The number
of NSOs, Restricted Shares or Stock Units to be granted to Outside Directors in
lieu of annual retainers and meeting fees that would otherwise be paid in cash
shall be calculated in a manner determined by the Board. The terms of such NSOs,
Restricted Shares or Stock Units shall also be determined by the Board.

SECTION 16. LEGAL AND REGULATORY REQUIREMENTS.

     Shares shall not be issued under the Plan unless the issuance and delivery
of such Shares complies with (or is exempt from) all applicable requirements of
law, including (without limitation) the Securities Act of 1933, as amended, the
rules and regulations promulgated thereunder, state securities laws and
regulations and the regulations of any stock exchange on

                                      -19-

<PAGE>

which the Company's securities may then be listed, and the Company has obtained
the approval or favorable ruling from any governmental agency which the Company
determines is necessary or advisable.

SECTION 17. WITHHOLDING TAXES.

     (a) General. To the extent required by applicable federal, state, local or
foreign law, a Participant or his or her successor shall make arrangements
satisfactory to the Company for the satisfaction of any withholding tax
obligations that arise in connection with the Plan. The Company shall not be
required to issue any Shares or make any cash payment under the Plan until such
obligations are satisfied.

     (b) Share Withholding. The Committee may permit a Participant to satisfy
all or part of his or her withholding or income tax obligations by having the
Company withhold all or a portion of any Shares that otherwise would be issued
to him or her or by surrendering all or a portion of any Shares that he or she
previously acquired. Such Shares shall be valued at their Fair Market Value on
the date when taxes otherwise would be withheld in cash. In no event may a
Participant have Shares withheld that would otherwise be issued to him or her in
excess of the number necessary to satisfy the legally required minimum tax
withholding.

SECTION 18. LIMITATION ON PARACHUTE PAYMENTS.

     (a) Scope of Limitation. This Section 18 shall apply to an Award unless the
Committee, at the time of making an Award under the Plan or at any time
thereafter, specifies in writing that such Award shall not be subject to this
Section 18. If this Section 18 applies to an Award, it shall supersede any
contrary provision of the Plan or of any Award granted under the Plan.

     (b) Basic Rule. In the event that the independent auditors most recently
selected by the Board (the "Auditors") determine that any payment or transfer by
the Company under the Plan to or for the benefit of a Participant (a "Payment")
would be nondeductible by the Company for federal income tax purposes because of
the provisions concerning "excess parachute payments" in Section 280G of the
Code, then the aggregate present value of all Payments shall be reduced (but not
below zero) to the Reduced Amount. For purposes of this Section 18, the "Reduced
Amount" shall be the amount, expressed as a present value, which maximizes the
aggregate present value of the Payments without causing any Payment to be
nondeductible by the Company because of Section 280G of the Code.

     (c) Reduction of Payments. If the Auditors determine that any Payment would
be nondeductible by the Company because of Section 280G of the Code, then the
Company shall promptly give the Participant notice to that effect and a copy of
the detailed calculation thereof and of the Reduced Amount, and the Participant
may then elect, in his or her sole discretion, which and how much of the
Payments shall be eliminated or reduced (as long as after such election the
aggregate present value of the Payments equals the Reduced Amount) and shall
advise the Company in writing of his or her election within 10 days of receipt
of notice. If no such election is made by the Participant within such 10-day
period, then the Company may elect which and how much of the Payments shall be
eliminated or reduced (as long as after such

                                      -20-

<PAGE>

election the aggregate present value of the Payments equals the Reduced Amount)
and shall notify the Participant promptly of such election. For purposes of this
Section 18, present value shall be determined in accordance with Section
280G(d)(4) of the Code. All determinations made by the Auditors under this
Section 18 shall be binding upon the Company and the Participant and shall be
made within 60 days of the date when a Payment becomes payable or transferable.
As promptly as practicable following such determination and the elections
hereunder, the Company shall pay or transfer to or for the benefit of the
Participant such amounts as are then due to him or her under the Plan and shall
promptly pay or transfer to or for the benefit of the Participant in the future
such amounts as become due to him or her under the Plan.

     (d) Overpayments and Underpayments. As a result of uncertainty in the
application of Section 280G of the Code at the time of an initial determination
by the Auditors hereunder, it is possible that Payments will have been made by
the Company that should not have been made (an "Overpayment") or that additional
Payments that will not have been made by the Company could have been made (an
"Underpayment"), consistent in each case with the calculation of the Reduced
Amount hereunder. In the event that the Auditors, based upon the assertion of a
deficiency by the Internal Revenue Service against the Company or the
Participant that the Auditors believe has a high probability of success,
determine that an Overpayment has been made, such Overpayment shall be treated
for all purposes as a loan to the Participant which he or she shall repay to the
Company, together with interest at the applicable federal rate provided in
Section 7872(f)(2) of the Code; provided, however, that no amount shall be
payable by the Participant to the Company if and to the extent that such payment
would not reduce the amount subject to taxation under Section 4999 of the Code.
In the event that the Auditors determine that an Underpayment has occurred, such
Underpayment shall promptly be paid or transferred by the Company to or for the
benefit of the Participant, together with interest at the applicable federal
rate provided in Section 7872(f)(2) of the Code.

     (e) Related Corporations. For purposes of this Section 18, the term
"Company" shall include affiliated corporations to the extent determined by the
Auditors in accordance with Section 280G(d)(5) of the Code.

SECTION 19. NO EMPLOYMENT RIGHTS.

     No provision of the Plan, nor any right or Option granted under the Plan,
shall be construed to give any person any right to become, to be treated as, or
to remain an Employee. The Company and its Subsidiaries reserve the right to
terminate any person's Service at any time and for any reason, with or without
notice.

SECTION 20. DURATION AND AMENDMENTS.

     (a) Term of the Plan. The Plan, as set forth herein, shall terminate
automatically on August 2, 2010 and may be terminated on any earlier date
pursuant to Section 20(c) below.

     (b) Predecessor Plan. The Plan shall serve as the successor to the
Predecessor Plan, and no further option grants shall be made under the
Predecessor Plan after the Plan's effective date. All options outstanding under
the Predecessor Plans as of the Plan's effective date shall, immediately upon
approval of the Plan by the Company's stockholders, be incorporated into the

                                      -21-

<PAGE>

Plan and treated as outstanding options under the Plan. However, each
outstanding option so incorporated shall continue to be governed solely by the
terms of the documents evidencing such option, and no provision of the Plan
shall be deemed to affect or otherwise modify the rights or obligations of the
holders of such incorporated options with respect to their acquisition of shares
of Stock.

     (c) Right to Amend or Terminate the Plan. The Board of Directors may amend
or terminate the Plan at any time and for any reason. Rights and obligations
under any Option granted before amendment of the Plan shall not be materially
impaired by such amendment, except with consent of the person to whom the Option
was granted. An amendment of the Plan shall be subject to the approval of the
Company's stockholders only to the extent required by applicable laws,
regulations or rules.

     (d) Effect of Amendment or Termination. No Shares shall be issued or sold
under the Plan after the termination thereof, except upon exercise of an Option
granted prior to such termination. The termination of the Plan, or any amendment
thereof, shall not affect any Share previously issued or any Option previously
granted under the Plan.

SECTION 21. EXECUTION.

     To record the amendment and restatement of the Plan by the Board of
Directors on January 17, 2002, the Company has caused its authorized officer to
execute the same.

                                             LOGICVISION, INC.

                                                By  /s/ John H. Barnet
                                                    ----------------------------
                                                        John H. Barnet
                                                   Vice President of Finance and
                                                     Chief Financial Officer

                                      -22-

<PAGE>

                                 AMENDMENT NO.1
                                     TO THE
                              AMENDED AND RESTATED
                            2000 STOCK INCENTIVE PLAN

          The Amended and Restated 2000 Stock Incentive Plan of Logic Vision,
Inc.(the "Plan") is hereby further amended, effective January 17, 2002, as
follows:

     1. Secton4(b)(iii)of the Plan shall be amended to read in its entirety as
follows:

          "On the first business day following the conclusion of each regular
          annual meeting of the Company's stockholders after such Outside
          Director's appointment or election to the Board of Directors,
          commencing with the annual meeting occurring after October 31,2001,
          each Outside Director who will continue serving as a member of the
          Board of Directors thereafter shall receive an Option to purchase
          4,000 Shares, subject to adjustment under Section 12. Each Outside
          Director who is not initially elected at a regular annual meeting of
          the Company's stockholders shall receive an Option to purchase a pro
          rata portion of 4,000 Shares within ten business days of his or her
          election based on the number of full months remaining from date of
          election until the next regular annual meeting of the Company's
          stockholders divided by 12. Any fractional shares resulting from such
          calculation shall be rounded up to the nearest whole number."

     2.   To record the adoption of this Amendment to the Plan by the Board of
Directors as of January 17,2002, the Corporation has caused its authorized
officer to execute the same.

                                            LOGICVISION, INC.

                                            By: /s/ John H. Barnet
                                                --------------------------------

                                            Name:John H. Barnet
                                                 -------------------------------

                                            Its: Vice President of Finance and
                                                 -------------------------------
                                                 Chief Financial Officer
                                                 -------------------------------

<PAGE>

--------------------------------------- ----------------------------------------
                                        LogicVision, Inc.
Notice of Grant of Stock Options        ID:  94-3 166964
and Option Agreement                    101 Metro Drive, Third Floor
                                        San Jose, CA  95110
--------------------------------------- ----------------------------------------
[Name]                                  Option Number:
[Address]                               Plan:
                                        ID:
--------------------------------------- ----------------------------------------

Effective ____________, you have been granted a(n) [Incentive/Nonstatutory]
Stock Option to buy ____________ shares of LogicVision, Inc. (the Company) stock
at $____________ per share.

The total option price of the shares granted is $____________.

Shares in each period will become fully vested in the date shown.

 Shares              Vest Type                Full Vest              Expiration

By your signature and the Company's signature below, you and the Company agree
that these options are granted under and governed by the terms and conditions of
the Company's Stock Option Plan as amended and the Option Agreement, all of
which are attached and made a part of this document.

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

--------------------------------------- ----------------------------------------
LogicVision, Inc.                       Date

--------------------------------------- ----------------------------------------
[Name]                                  Date

<PAGE>

                             LOGICVISION, INC. 2000
                              STOCK INCENTIVE PLAN

                             STOCK OPTION AGREEMENT

Tax Treatment       This option is intended to be an incentive stock option
                    under section 422 of the Internal Revenue Code or a
                    nonstatutory option, as shown in the Notice of Stock Option
                    Grant.

Vesting             This option becomes exercisable in installments, as shown in
                    the Notice of Stock Option Grant. No additional shares
                    become exercisable after your Service as an employee,
                    consultant or director of LogicVision, Inc. (the "Company")
                    or a subsidiary of the Company has terminated for any
                    reason.

                    Note: Under the Plan, the Compensation Committee has the
                    discretion to provide for accelerated vesting of an option
                    in the event of death, disability, retirement, a change in
                    control or any combination of the foregoing events. If the
                    Committee has not provided for accelerated vesting of the
                    option, the remaining text in this section should be
                    deleted.

                    In addition, this option becomes exercisable in full if one
                    of the following events occur:

                    o    The Company is subject to a "change in control," as
                         defined in the LogicVision, Inc. 2000 Stock Incentive
                         Plan (the "Plan"), while you are in Service for the
                         Company or a subsidiary of the Company. However, if
                         this option is designated as an ISO in the Notice of
                         Stock Option Grant, your option will not become fully
                         exercisable unless you consent in writing to the
                         acceleration.

                    o    Your Service as an employee, consultant or director of
                         the Company or a subsidiary of the Company terminates
                         because of death, total and permanent disability (as
                         defined below) or retirement on or after age 65.

Term                This option will expire in any event at the close of
                    business at the Company's headquarters on the day before the
                    10th anniversary of the Date of Grant, as shown in the
                    Notice of Stock Option Grant (fifth anniversary for a 10%
                    owner). This option will expire earlier if your Service
                    terminates, as described below. The term "Service" and all
                    other capitalized terms in this Agreement are defined in the
                    official Plan document.

<PAGE>

Regular             If your Service terminates for any reason other than death
Termination         or total and permanent disability, then this option will
                    expire at the close of business at the Company's
                    headquarters on the date three months after the date your
                    Service terminates. The Company has the discretionary
                    authority to determine when your Service terminates for all
                    purposes of the Plan and its determinations are conclusive
                    and binding on all persons.

Death               If you die as an employee, director, consultant or advisor
                    of the Company or one of its subsidiaries, then this option
                    will expire at the close of business at the Company's
                    headquarters on the date 12 months after the date of your
                    death. During that twelve-month period, your estate or heirs
                    may exercise your option.

Disability          If your Service terminates because of your total and
                    permanent disability, then this option will expire at the
                    close of business at the Company's headquarters on the date
                    12 months after the date on which your Service terminates.
                    "Total and permanent disability" means that you are unable
                    to engage in any substantial gainful activity by reason of
                    any medically determinable physical or mental impairment
                    that can be expected to result in death or that has lasted,
                    or can be expected to last, for a continuous period of not
                    less than one year. The Company has the discretionary
                    authority to determine whether a total and permanent
                    disability exists and its determination is conclusive and
                    binding on all persons.

Leaves of Absence   If you take a military leave, sick leave or other bona fide
                    leave of absence (such as temporary employment with the
                    government), when and whether your Service terminates will
                    be determined by the Company its discretion. Generally, the
                    following rules, which are subject to change by the Company
                    in its discretion, will apply:

                    o    If you take an authorized-unpaid leave of absence that
                         does not exceed 90 days, your Service does not
                         terminate provided that you remain continuously
                         employed by the Company for at least one month after
                         you return from your leave. If you do not remain
                         continuously employed by the Company for at least one
                         month after your leave or if your leave exceeds 90
                         days, then your Service terminates on the 91st day
                         after your leave started.

                    o    If you take a leave with a right to reemployment
                         guaranteed by law or contract and you return to work by
                         the date that your reemployment rights terminate under
                         such law or contract (the "latest reemployment date"),
                         your Service does not terminate provided that you
                         remain continuously employed by the Company for at
                         least one month after you return from your leave. If
                         you do not remain continuously employed by the Company
                         for at least one month after your leave or if you do
                         not return to work by the latest reemployment date,
                         then your Service terminates on the day after the
                         latest reemployment date.

Restrictions on     The Company will not permit you to exercise this option if
Exercise            the issuance of shares at that time would violate any law or
                    regulation.

<PAGE>

Notice of Exercise  When you wish to exercise this option, you must notify the
                    Company by submitting the "Notice of Exercise of Stock
                    Option" form provided by the Company to the address given on
                    the form. Facsimiles are not acceptable. Your notice must
                    specify how many shares you wish to purchase and how your
                    shares should be registered (in your name only or in your
                    and your spouse's names as community property or as joint
                    tenants with right of survivorship). The notice will be
                    effective when it is received by the Company. If someone
                    else wants to exercise this option after your death, that
                    person must prove to the Company's satisfaction that he or
                    she is entitled to do so.

Form of Payment     When you submit your notice of exercise, you must include
                    payment of the option price for the shares you are
                    purchasing. Subject to any restrictions on resale described
                    below, payment may be made in one (or a combination of two
                    or more) of the following forms:

                    o    Your personal check, a cashier's check or a money
                         order.

                    o    Irrevocable directions to a securities broker approved
                         by the Company to sell your option shares and to
                         deliver all or a portion of the sale proceeds to the
                         Company in payment of the option price. The directions
                         must be given by signing a special "Notice of Exercise
                         of Stock Option" form provided by the Company. The
                         balance of the sale proceeds, if any, will be delivered
                         to you.

                    o    Irrevocable directions to a securities broker approved
                         by the Company to pledge your option shares for a loan
                         and to deliver all or a portion of the loan proceeds to
                         the Company in payment of the option price. (The
                         balance of the loan proceeds, if any, will be delivered
                         to you.) The directions must be given by signing a
                         special "Notice of Exercise of Stock Option" form
                         provided by the Company.

                    o    Certificates for the Company stock that you have owned
                         for at least six months, along with any forms needed to
                         effect a transfer of the shares to the Company. The
                         value of the shares, determined as of the effective
                         date of the option exercise, will be applied to the
                         option price.

Withholding         You will not be allowed to exercise this option unless you
Taxes               make acceptable arrangements to pay any withholding taxes
                    that may be due as a result of your option exercise.

Restrictions on     By signing this Agreement, you agree not to sell any option
Resale              shares at a time when applicable laws, Company policies or
                    an agreement between the Company and its underwriters
                    prohibit a sale (e.g., a lock-up period after a public
                    offering of the Company's stock). This restriction will
                    apply as long as you are an employee, director, consultant
                    or advisor of the Company or a subsidiary of the Company.

<PAGE>
Transfer of         Prior to your death, only you may exercise this option.  You
Option              cannot transfer or assign this option. For instance, you may
                    not sell this option or use it as security for a loan. If
                    you attempt to do any of these things, this option will
                    immediately become invalid. You may, however, dispose of
                    this option in your will or a written beneficiary
                    designation. Such a designation must be filed with the
                    Company on the proper form and will be recognized only if it
                    is received at the Company headquarters before your death.
                    Regardless of any marital property settlement agreement, the
                    Company is not obligated to honor a notice of exercise from
                    your former spouse, nor is the Company obligated to
                    recognize your former spouse's interest in your option in
                    any other way.

Retention Rights    Your option or this Agreement do not give you the right to
                    be retained by the Company or its subsidiaries in any
                    capacity. The Company and its subsidiaries reserve the right
                    to terminate your service at any time, with or without
                    cause.

Stockholder         You, or your estate or heirs, have no rights as a
Rights              stockholder of the Company until a certificate for your
                    option shares has been issued. No adjustments are made for
                    dividends or other rights if the applicable record date
                    occurs before your stock certificate is issued, except as
                    described in the Plan.

Adjustments         In the event of a stock split, stock dividend or a similar
                    change in the Company stock, the number of shares covered by
                    this option and the exercise price per share may be adjusted
                    pursuant to the Plan.

Applicable Law      This Agreement will be interpreted and enforced under the
                    laws of the State of Delaware (without regard to their
                    choice-of-law provisions).

The Plan and        The text of the Plan is incorporated in this Agreement by
Other Agreements    reference. This Agreement and the Plan constitute the entire
                    understanding between you and the Company regarding this
                    option. Any prior agreements, commitments or negotiations
                    concerning this option are superseded. This Agreement may be
                    amended only by another written agreement signed by both
                    parties.

          BY SIGNING THE NOTICE OF STOCK OPTION GRANT, YOU AGREE TO ALL
          OF THE TERMS AND CONDITIONS DESCRIBED ABOVE AND IN THE PLAN.

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