Document:

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                                                                   EXHIBIT 10.63

                                   AMDL, INC.

                              EXECUTIVE MANAGEMENT

                      CHANGE IN CONTROL SEVERANCE PAY PLAN

                                          As adopted Effective November 15, 2001

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                                   AMDL, INC.
                              EXECUTIVE MANAGEMENT
                      CHANGE IN CONTROL SEVERANCE PAY PLAN

                                TABLE OF CONTENTS

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ARTICLE 1. INTRODUCTION.........................................................  1

      1.1. Plan Name............................................................  1
      1.2. Plan Type............................................................  1
      1.3. Plan Purpose.........................................................  1

ARTICLE 2. DEFINITIONS, CONSTRUCTION AND INTERPRETATIONS........................  1

      2.1. Affiliate............................................................  1
      2.2. Average Total Compensation...........................................  1
      2.3. Base Pay.............................................................  1
      2.4. Benefit Plan.........................................................  2
      2.5. Board................................................................  2
      2.6. Cause................................................................  2
      2.7. Change in Control....................................................  3
      2.8. Code.................................................................  4
      2.9. Company..............................................................  4
      2.10. Date of Termination.................................................  4
      2.11. Eligible Participant................................................  5
      2.12. ERISA...............................................................  5
      2.13. Exchange Act........................................................  5
      2.14. Good Reason.........................................................  5
      2.15. Governing Law.......................................................  7
      2.16. Headings............................................................  7
      2.17. Notice of Termination...............................................  7
      2.18. Number and Gender...................................................  7
      2.19. Parent Corporation..................................................  7
      2.20. Participant.........................................................  7
      2.21. Plan................................................................  7
      2.22. Person..............................................................  7
      2.23. Qualified Employee..................................................  7
      2.24. Successor...........................................................  7

ARTICLE 3. PARTICIPATION AND ELIGIBILITY FOR BENEFITS...........................  8

      3.1. Commencement of Participation........................................  8
      3.2. Ceasing to be a Qualified Employee...................................  8
      3.3. Eligibility for Benefits.............................................  8
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ARTICLE 4. BENEFITS.............................................................  9

      4.1. Compensation and Benefits Before Date of Termination.................  9
      4.2. Cash Payment.........................................................  9
      4.3. Continuation of Certain Welfare Benefits.............................  9
      4.4. Gross-Up Payments.................................................... 10
      4.5. Indemnification...................................................... 10

ARTICLE 5. ADMINISTRATION AND ENFORCEMENT OF RIGHTS............................. 11

      5.1. Plan Administration.................................................. 11
      5.2. Amendment and Termination............................................ 11
      5.3. Benefit Claims....................................................... 11
      5.4. Disputes............................................................. 12

ARTICLE 6. MISCELLANEOUS........................................................ 12

      6.1. Successors........................................................... 12
      6.2. Binding Plan......................................................... 13
      6.3. Validity............................................................. 13
      6.4. No Mitigation........................................................ 13
      6.5. No Set-off........................................................... 12
      6.6. Taxes................................................................ 13
      6.7. Notices.............................................................. 13
      6.8. Effect of Plan Benefits on Other Severance Plans..................... 13
      6.9. Related Plans........................................................ 13
      6.10. No Employment or Service Contract................................... 14
      6.11. Survival............................................................ 14
      6.12. Effect on Other Plans............................................... 14
      6.13. Prohibition of Alienation........................................... 14
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                                   AMDL, INC.
                              EXECUTIVE MANAGEMENT
                      CHANGE IN CONTROL SEVERANCE PAY PLAN

                                     ARTICLE
                                       1.
                                  INTRODUCTION

1.1  PLAN NAME. The name of the Plan is the "AMDL, Inc. Executive Management
     Change in Control Severance Pay Plan."

1.2  Plan Type. The Plan is an unfunded plan maintained by the Company primarily
     for the purpose of providing benefits for a select group of management or
     highly compensated employees and, as such, is intended to be exempt from
     the provisions of Parts 2, 3 and 4 of Subtitle B of Title I pf ERISA, to
     the extent such provisions would otherwise be applicable, by operation of
     Sections 201(2), 301(a)(3) and 401(a)(1) thereof, respectively. The Plan is
     also intended to be unfunded for tax purposes. The Plan will be construed
     in a manner that gives effect to such intent.

1.3. Plan Purpose. The purpose of the Plan is to provide benefits to qualified
     employees whose employment is terminated in connection with a change in
     control.

                                     ARTICLE
                                       2.
                  DEFINITIONS, CONSTRUCTION AND INTERPRETATIONS

The definitions and rules of construction and interpretation set forth in this
Article 2 apply in construing the Plan unless the context otherwise indicates.

2.1. AFFILIATE. An "AFFILIATE" is:

     (A)  any corporation at least a majority of whose outstanding securities
          ordinarily having the right to vote at elections of directors is owned
          directly or indirectly by the Parent Corporation; or

     (B)  any other form of business entity in which the Parent Corporation, by
          virtue of a direct or indirect ownership interest, has the right to
          elect a majority of the members of such entity's governing body.

2.2  AVERAGE TOTAL COMPENSATION. The "AVERAGE TOTAL COMPENSATION" of a
     participant is the average of his or her annual compensation over the three
     (3) complete fiscal years immediately preceding the Change in Control or
     Notice of Termination, whichever is greater, disregarding any decrease
     which constitutes good reason for the Participant's termination of
     employment. Average Total Compensation includes regular cash salary, wages
     or commissions (determined before any reduction for deferrals pursuant to
     any nonqualified deferred compensation plan or arrangement, qualified cash
     or deferred arrangement or cafeteria plan), cash bonuses and the dollar
     value of all non-cash perquisites.

2.3. BASE PAY. The "BASE PAY" of a Participant is his or her base salary from
     the Company at the annual rate in effect immediately prior to the Change in
     Control or at the time Notice of Termination is given, whichever is
     greater, disregarding any decrease which constitutes Good

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     Reason for the Participant's termination of employment. Base Pay includes
     only regular cash salary, wages or commissions and is determined before any
     reduction for deferrals pursuant to any nonqualified deferred compensation
     plan or arrangement, qualified cash or deferred arrangement or cafeteria
     plan.

2.4. BENEFIT PLAN. A "BENEFIT PLAN" is any:

     (A)  employee benefit plan as defined in ERISA section 3(3),

     (B)  cafeteria plan described in Code section 125,

     (C)  plan, policy or practice providing for paid vacation, other paid time
          off or short- or long-term profit sharing, bonus or incentive
          payments, or

     (D)  stock option, stock purchase, restricted stock, phantom stock, stock
          appreciation right or other equity-based compensation plan

     that is sponsored, maintained or contributed to by the Company for the
     benefit of employees (and/or their families and dependents) generally or a
     Participant (and/or a Participant's family and dependents) in particular.

2.5. BOARD. The "BOARD" is the board of directors of the Parent Corporation duly
     qualified and acting at the time in question. On and after the date of a
     Change in Control, any duty of the Board in connection with the Plan is
     nondelagable and any attempt by the Board to delegate any such duty is
     ineffective.

2.6. CAUSE.

     (A)  Subject to Subsection (B), "Cause" with respect to a particular
          Participant is any of the following:

          (1)  the Participant's gross misconduct which is materially and
               demonstrably injurious to the Company;

          (2)  the Participant's willful and continued failure to perform
               substantially his or her duties with the Company (other than a
               failure resulting from the Participant's incapacity due to bodily
               injury or physical or mental illness) after a demand for
               substantial performance is delivered to the Participant by the
               Board which specifically identifies the manner in which the Board
               believes that the Participant has not substantially performed his
               or her duties and provides for a reasonable period of time within
               which the Participant may take corrective measures; or

          (3)  the Participant's conviction (including a plea of nolo
               contendere) of willfully engaging in illegal conduct constituting
               a felony or gross misdemeanor under federal or state law (or
               comparable illegal conduct under the laws of any foreign
               jurisdiction) which is materially and demonstrably injurious to
               the Company or which impairs the Participant's ability to perform
               substantially his or her duties with the Company.

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               An act or failure to act will be considered "gross" or "willful"
               for this purpose only if done, or omitted to be done, by the
               Participant in bad faith and without reasonable belief that it
               was in, or not opposed to, the best interests of the Company. Any
               act, or failure to act, based upon authority given pursuant to a
               resolution duly adopted by the board of directors or governing
               body of any Company (or a committee thereof) or based upon the
               advice of counsel for the Company will be conclusively presumed
               to be done, or omitted to be done, by the Participant in good
               faith and in the best interests of the Company. A Participant's
               attention to matters not directly related to the business of the
               Company will not provide a basis for termination for Cause so
               long as the Board did not expressly disapprove in writing of his
               or her engagement in such activities either before or within a
               reasonable period of time after the Board knew or could
               reasonably have known that the Participant engaged in those
               activities.

          (B)  Notwithstanding Subsection (A), a Participant may not be
               terminated for Cause unless and until there has been delivered to
               such Participant a copy of a resolution duly adopted by the
               affirmative vote of not less than a majority of the entire
               membership of the Board (excluding such Participant) at a meeting
               of the Board called and held for such purpose (after reasonable
               notice to such Participant and an opportunity for such
               Participant, together with his or her counsel, to be heard before
               the Board), finding that in the good faith opinion of the Board
               such Participant was guilty of the conduct set forth in clause
               (1), (2) or (3) of Subsection (A) and specifying the particulars
               thereof in detail.

2.7. CHANGE IN CONTROL.

          (A)  Subject to Subsection (B) below, "Change in Control" is the
               occurrence of any of the following on or after November 15, 2001:

               (1)  the sale, lease, exchange or other transfer, directly or
                    indirectly, of all or substantially all of the assets of the
                    Parent Corporation, in one transaction or in a series of
                    related transactions, to any Person;

               (2)  the approval by the shareholders of the Parent Corporation
                    of any plan or proposal for the liquidation or dissolution
                    of the Parent Corporation;

               (3)  any Person, other than a "bona fide underwriter" (as defined
                    below) is or becomes the "beneficial owner" (as defined in
                    Rule 13d-3 under the Exchange Act), directly or indirectly,
                    of (a) 20 percent or more, but not more than 50 percent, of
                    the combined voting power of the Parent Corporation's
                    outstanding securities ordinarily having the right to vote
                    at elections of directors, unless the transaction resulting
                    in such ownership has been approved in advance by the
                    "continuity directors" (as defined below) or (b) more than
                    50 percent of the combined voting power of the Parent
                    Corporation's outstanding securities ordinarily having the
                    right to vote at elections of directors (regardless of any
                    approval by the continuity directors);

               (4)  a merger or consolidation to which the Parent Corporation is
                    a party if the shareholders of the Parent Corporation
                    immediately prior to the effective date of such merger or
                    consolidation have, solely on account of ownership of
                    securities of the Parent Corporation at such time,
                    "beneficial ownership" (as defined in Rule 13d-3 under the
                    Exchange Act) immediately following the effective date of

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               such merger or consolidation of securities of the surviving
               company representing (a) 50 percent or more, but not more than 80
               percent, of the combined voting power of the surviving
               corporation's then outstanding securities ordinarily having the
               right to vote at elections of directors, unless such merger or
               consolidation has been approved in advance by the continuity
               directors, or (b) less than 50 percent of the combined voting
               power of the surviving corporation's then outstanding securities
               ordinarily having the right to vote at elections of directors
               (regardless of any approval by the continuity directors);

          (5)  the continuity directors cease for any reason to constitute at
               least a majority the Board; or

          (6)  a change in control of a nature that is determined by outside
               legal counsel to the Parent Corporation, in a written opinion
               specifically referencing this provision of the Plan, to be
               required to be reported (assuming such event has not been
               "previously reported") pursuant to section 13 or 15(d) of the
               Exchange Act, whether or not the Parent Corporation is then
               subject to such reporting requirement, as of the effective date
               of such change in control.

     (B)  For purposes of this section:

          (1)  "continuity director" means any individual who is a member of the
               Board on November 15, 2001, while he or she is a member of the
               Board, and any individual who subsequently becomes a member of
               the Board whose election or nomination for election by the Parent
               Corporation's shareholders was approved by a vote of at least a
               majority of the directors who are continuity directors (either by
               a specific vote or by approval of the proxy statement of the
               Parent Corporation in which such individual is named as a nominee
               for director without objection to such nomination);

          (2)  "bona fide underwriter" means a Person engaged in business as an
               underwriter of securities that acquires securities of the Parent
               Corporation through such Person's participation in good faith in
               a firm commitment underwriting until the expiration of 40 days
               after the date of such acquisition; and

          (3)  Change in Control shall not include any event or occurrence which
               would not have been consummated had the securities of the Parent
               Corporation beneficially owned by, or subject to the voting
               control of, the Participant not been outstanding at the time of
               shareholder approval of such event or occurrence.

2.8. CODE. The "CODE" is the Internal Revenue Code of 1986, as amended. Aany
     reference to a specific provision of the Code includes a reference to such
     provision as it may be amended from time to time and to any successor
     provision.

2.9. COMPANY. The "COMPANY" is the Parent Corporation, any Successor and any
     Affiliate.

2.10. DATE OF TERMINATION. The "DATE OF TERMINATION." with respect to a
     Participant following a Change in Control (or prior to a Change in Control
     if the Participant's termination was either a condition of the Change in
     Control or was at the request or insistence of any person related to the
     Change in Control) means:

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      (A)   if the Participant's employment is to be terminated by the
            Participant for Good Reason, the date specified in the Notice of
            Termination which in no event may be a date more than 15 days after
            the date on which Notice of Termination is given unless the Company
            agrees in writing to a later date;

      (B)   if the Participant's employment is to be terminated by the Company
            for Cause, the date specified in the Notice of Termination;

      (C)   if the Participant's employment is terminated by reason of his or
            her death, the date of his or her death; or

      (D)   if the Participant's employment is to be terminated by the Company
            for any reason other than Cause or his or her death, the date
            specified in the Notice of Termination, which in no event may be a
            date earlier than 15 days after the date on which a Notice of
            Termination is given, unless the Participant expressly agrees in
            writing to an earlier date.

      If the Company terminates a Participant's employment for Cause and the
      Participant has not previously expressly agreed in writing to the
      termination, then within the 30-day period after the Participant's receipt
      of the Notice of Termination, the Participant may notify the Company that
      a dispute exists concerning the termination, in which event the Date of
      Termination will be the date set either by mutual written agreement of the
      parties or by the arbitrators or a court in a proceeding as provided in
      Section 5.4. During the pendency of any such dispute, the Participant will
      continue to make himself or herself available to provide services to the
      Company and the Company will continue to pay the Participant his or her
      full compensation and benefits in effect immediately prior to the date on
      which the Notice of Termination is given (without regard to any changes to
      such compensation or benefits which constitute Good Reason) and until the
      dispute is resolved in accordance with Section 5.4. The Participant will
      be entitled to retain the full amount of any such compensation and
      benefits without regard to the resolution of the dispute unless the
      arbitrators or judge decide(s) that the Participant's claim of a dispute
      was frivolous or advanced by the Participant in bad faith.

2.11. ELIGIBLE PARTICIPANT. An "ELIGIBLE PARTICIPANT" is a Participant who has
      become eligible to receive benefits pursuant to Section 3.3.

2.12. ERISA. "ERISA" is the Employee Retirement Income Security Act of 1974, as
      amended. Any reference to a specific provision of ERISA includes a
      reference to such provision as it may be amended from time to time and to
      any successor provision.

2.13. EXCHANGE ACT. The "EXCHANGE ACT" is the Securities Exchange Act of 1934,
      as amended. Any reference to a specific provision of the Exchange Act or
      to any rule or regulation thereunder includes a reference to such
      provision as it may be amended from time to time and to any successor
      provision.

2.14. GOOD REASON.

      (A)   Subject to Subsection (B), "Good Reason" with respect to a
            Participant is any of the following:

            (1)   a change in the Participant's status, position(s), duties or
                  responsibilities as an executive of the Company as in effect
                  at any time during the 90-day period

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                  ending on the date of the Change in Control which, in the
                  Participant's reasonable judgment, is adverse (other than, if
                  applicable, any such change directly attributable to the fact
                  that the Parent Corporation is no longer publicly owned);
                  provided, however, that Good Reason does not include a change
                  in a Participant's status, position(s), duties or
                  responsibilities caused by an insubstantial and inadvertent
                  action that is remedied by the Company promptly after receipt
                  of notice of such change is given by the Participant;

            (2)   a reduction by the Company in the Participant's Base Pay, or
                  an adverse change in the form or timing of the payment
                  thereof, as in effect immediately prior to the Change in
                  Control or as thereafter increased;

            (3)   the failure by the Company to cover the Participant under
                  Benefit Plans that, in the aggregate, provide substantially
                  similar benefits to the Participant and/or his or her family
                  and dependents at a substantially similar total cost to the
                  Participant (e.g., premiums, deductibles, co-pays, out of
                  pocket maximums, required contributions, taxes and the like)
                  relative to the benefits and total costs under the Benefit
                  Plans in which the Participant (and/or his or her family or
                  dependents) is participating at any time during the 90-day
                  period immediately preceding the Change in Control;

            (4)   the Company's requiring a Participant to be based more than 30
                  miles from where his or her office is located immediately
                  prior to the Change in Control, except for required travel on
                  the Company's business, and then only to the extent
                  substantially consistent with the business travel obligations
                  which the Participant undertook on behalf of the Company
                  during the 90-day period ending on the date of the Change in
                  Control (without regard to travel related to or in
                  anticipation of the Change in Control);

            (5)   the failure of the Parent Company to obtain from any Successor
                  the assent to this Plan contemplated by Section 6.1;

            (6)   any purported termination by the Company of a Participant's
                  employment which is not properly effected pursuant to a Notice
                  of Termination and pursuant to any other requirements of this
                  Plan, and for purposes of this Plan, no such purported
                  termination will be effective; or

            (7)   any refusal by the Company to continue to allow a Participant
                  to attend to matters or engage in activities not directly
                  related to the business of the Company which, at any time
                  prior to the Change in Control, the Participant was not
                  expressly prohibited by the Company from attending to or
                  engaging in.

      (B)   A Participant's continued employment does not constitute consent to,
            or waiver of any rights arising in connection with, any circumstance
            constituting Good Reason. Termination by a Participant of his or her
            employment for Good Reason as defined in this section will
            constitute Good Reason for all purposes of this Plan,
            notwithstanding that the Participant may also thereby be deemed to
            have "retired" under any applicable retirement programs of the
            Company.

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2.15. GOVERNING LAW. To the extent that state law is not preempted by provisions
      of ERISA or any other laws of the United States, all questions pertaining
      to the construction, validity, effect and enforcement of this Plan will be
      determined in accordance with the internal, substantive laws of the State
      of California, without regard to the conflict of laws principles of the
      State of California or of any other jurisdiction.

2.16. HEADINGS. The headings of articles and sections are included solely for
      convenience. If there is a conflict between the headings and the text of
      the Plan, the text will control.

2.17. NOTICE OF TERMINATION. A "NOTICE OF TERMINATION" is a written notice given
      on or after the date of a Change in Control (unless the termination before
      the date of the Change in Control was either a condition of the Change in
      Control or was at the request or insistence of any Person related to the
      Change in Control) which indicates the specific termination provision in
      this Plan pursuant to which the notice is given. Any purported termination
      by the Company or by a Participant for Good Reason on or after the date of
      a Change in Control (or before the date of the Change in Control if the
      termination was either a condition of the Change in Control or was at the
      request or insistence of any Person related to the Change in Control) must
      be communicated by written Notice of Termination to be effective;
      provided, that a Participant's failure to provide Notice of Termination
      will not limit any of his or her rights under the Plan except to the
      extent the Company demonstrates that it suffered material actual damages
      by reason of such failure.

2.18. NUMBER AND GENDER. Wherever appropriate, the singular number may be read
      as the plural, the plural number may be read as the singular and a
      reference to one gender may be read as a reference to the other.

2.19. PARENT CORPORATION. The "PARENT CORPORATION" is AMDL, Inc. and any
      Successor.

2.20. PARTICIPANT. A "PARTICIPANT" is a Qualified Employee who is participating
      in the Plan pursuant to Article 3.

2.21. PLAN. The "PLAN" is that set forth in this instrument as it may be amended
      from time to time.

2.22. PERSON. A "PERSON" includes any individual, corporation, partnership,
      group, association or other "person," as such term is used in section
      14(d) of the Exchange Act, other than the Parent Corporation, any
      Affiliate or any benefit plan sponsored by the Parent Corporation or an
      Affiliate.

2.23. QUALIFIED EMPLOYEE. A "QUALIFIED EMPLOYEE" is an individual who (a) at any
      time during the 90-day period ending on the date of a Change in Control,
      is employed by the Parent Corporation as Chief Executive Officer and/or
      President and (b) is not a party to a separate written agreement with the
      Company which by its express terms specifically provides that the
      individual is not eligible to participate in the Plan.

2.24. SUCCESSOR. A "SUCCESSOR" is any Person that succeeds to, or has the
      practical ability to control (either immediately or solely with the
      passage of time), the Parent Corporation's business directly, by merger,
      consolidation or other form of business combination, or indirectly, by
      purchase of the Parent Corporation's outstanding securities ordinarily
      having the right to vote at the election of directors, all or
      substantially all of its assets or otherwise.

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                                     ARTICLE
                                       3.
                   PARTICIPATION AND ELIGIBILITY FOR BENEFITS

3.1.  COMMENCEMENT OF PARTICIPATIOn. An individual who is hired as a Qualified
      Employee prior to the date of a Change in Control will commence
      participation in the Plan on November 15, 2001. An individual who is hired
      as a Qualified Employee on or after the date of a Change in Control is not
      eligible to participate in the Plan.

3.2.  CEASING TO BE A QUALIFIED EMPLOYEE.

      (A)   A Participant who ceases for any reason to be a Qualified Employee
            will, except with respect to any current or future benefit to which
            he or she is then entitled, thereupon cease his or her participation
            in the Plan.

      (B)   Notwithstanding any other provision of the Plan to the contrary, a
            Participant will cease to be a Qualified Employee if, prior to the
            date of a Change in Control: (1) an Affiliate is sold, merged,
            transferred or in any other manner or for any other reason ceases to
            be an Affiliate or all or any portion of the business or assets of
            an Affiliate are sold, transferred or otherwise disposed of and no
            Change in Control occurs in connection therewith; (2) the
            Participant's primary employment duties are with the Affiliate at
            the time of the occurrence of such event; and (3) such Participant
            does not, in conjunction therewith, transfer employment directly to
            the Parent Corporation or another affiliate as a Qualified Employee.

3.3.  ELIGIBILITY FOR BENEFITS.

      (A)   A Participant will become eligible for the benefits provided in
            Article 4 if and only if (1) (a) the Company terminates his or her
            employment for any reason other than his or her death or Cause or
            (b) the Participant terminates employment with the Company for Good
            Reason and (2) the termination occurs within the period beginning on
            the date of a Change in Control and ending on the last day of the
            twelfth month that begins after the month in which the Change in
            Control occurs or prior to a Change in Control if the termination
            was either a condition of the Change in Control or at the request or
            insistence of a Person related to the Change in Control.

      (B)   If, on or after the date of a Change in Control, an Affiliate is
            sold, merged, transferred or in any other manner or for any other
            reason ceases to be an Affiliate or all or any portion of the
            business or assets of an Affiliate are sold, transferred or
            otherwise disposed of and the acquiror is not the Parent Corporation
            or an Affiliate (a "Disposition"), any individual who was a
            Qualified Employee immediately prior to the Disposition and who
            remains or becomes employed by the acquiror or an affiliate of the
            acquiror (as defined in Section 2.1 but substituting "acquiror" for
            "Parent Corporation") in connection with the Disposition will be
            deemed to have terminated employment on the effective date of the
            Disposition for purposes of Subsection (A) unless (1) the acquiror
            and its affiliates jointly and severally expressly assume and agree,
            in a manner that is enforceable by the individual, to perform the
            obligations of this Plan to the same extent that the Company would
            be required to perform if the Disposition had not occurred and (2)
            the Successor guarantees, in a manner that is enforceable by the
            individual, payment and performance by the acquiror.

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                                     ARTICLE
                                       4.
                                    BENEFITS

4.1.  COMPENSATION AND BENEFITS BEFORE DATE OF TERMINATION. During the period
      beginning on the date a Participant or the Company, as the case may be,
      receives Notice of Termination and ending on the Date of Termination, the
      Company will continue to pay the Participant his or her Base Pay and cause
      his or her continued participation in all Benefit Plans in accordance with
      the terms of such Benefit Plans.

4.2.  CASH PAYMENT.

      (A)   The Company will make a cash payment to an Eligible Participant in
            an amount equal to three hundred percent (300%) of the Eligible
            Participant's Average Total Compensation.

      (B)   The amount determined under Subsection (A) will be paid in a single
            lump sum within ten days after the Eligible Participant's Date of
            Termination or, if later, within ten business days following the
            date of the Change in Control.

4.3.  CONTINUATION OF CERTAIN WELFARE BENEFITS.

      (A)   During the period described in Subsection (B), the Company will
            maintain, or continue to reimburse or pay on behalf of the Eligible
            Participant, as the case may be, medical, dental and life insurance
            plans which by their terms cover each Eligible Participant (and his
            or her family members and dependents who were eligible to be covered
            at any time during the 90-day period ending on the date of a Change
            in Control for the period after the Change in Control in which such
            family members and dependents would otherwise continue to be covered
            under the terms of the plan in effect immediately prior to the
            Change in Control) under the same terms and at the same cost to the
            Eligible Participant and his or her family members and dependents as
            similarly situated executives who continue to be employed by the
            Company (without regard to any reduction in such benefits that
            constitutes Good Reason). The continuation period under applicable
            federal and state continuation laws will begin to run from the date
            on which coverage pursuant to this Section 4.3 ends.

      (B)   For purposes of Subsection (A), the continuation period with respect
            to any particular plan is the period beginning on an Eligible
            Participant's Date of Termination and ending on the earlier of (1)
            the last day of the twelfth month that begins after the Eligible
            Participant's Date of Termination, (2) the date after the Eligible
            Participant's Date of Termination on which the Eligible Participant
            first becomes eligible to participate as an employee in a plan of
            another employer providing benefits to the Eligible Participant and
            his or her eligible family members and dependents which plan does
            not contain any exclusion or limitation with respect to any
            pre-existing condition of the Eligible Participant or any eligible
            family member or dependent who would otherwise be covered under the
            Company's plan but for this clause (2), or (3) the date of the
            Eligible Participant's death.

      (C)   To the extent an Eligible Participant incurs a tax liability
            (including federal, state and local taxes and any interest and
            penalties with respect thereto) in connection with a benefit
            provided pursuant to Subsection (A) which he or she would not have
            incurred

                                       9
<PAGE>

            had he or she been an active employee of the Company participating
            in the Company's Benefit Plan, the Company will make a payment to
            the Eligible Participant in an amount equal to such tax liability
            plus an additional amount sufficient to permit the Eligible
            Participant to retain a net amount after all taxes (including
            penalties and interest) equal the initial tax liability in
            connection with the benefit. For purposes of applying the foregoing,
            an Eligible Participant's tax rate will be deemed to be the highest
            statutory marginal state and federal tax rate (on a combined basis)
            then in effect. The payment pursuant to this subsection will be made
            within ten days after the Eligible Participant's remittal of a
            written request therefor accompanied by a statement indicating the
            basis for and amount of the liability.

4.4.  GROSS-UP PAYMENTS. Following a Change in Control, the Company will cause
      its independent auditors promptly to review, at the Company's sole
      expense, the applicability of Code section 4999 to any payment or
      distribution of any type by the Company to or for the benefit of an
      Eligible Participant, whether paid or payable or distributed or
      distributable pursuant to the terms of the Plan, any Benefit Plan or
      otherwise (the "Total Payments"). If the auditor determines that the Total
      Payments result in an excise tax imposed by Code section 4999 or any
      comparable state or local law, or any interest or penalties with respect
      to such excise tax (such excise tax, together with any such interest and
      penalties, are collectively referred to as the "Excise Tax"), the Company
      will make an additional cash payment (a "Gross-Up Payment") to the
      Eligible Participant within ten days after such determination equal to an
      amount such that after payment by the Eligible Participant of all taxes
      (including any interest or penalties imposed with respect to such taxes),
      including any Excise Tax, imposed upon the Gross-Up Payment, the Eligible
      Participant would retain an amount of the Gross-Up Payment equal to the
      Excise Tax imposed upon the Total Payments. For purposes of the foregoing
      determination, an Eligible Participant's tax rate will be deemed to be the
      highest statutory marginal state and federal tax rate (on a combined
      basis) then in effect. If no determination by the Company's auditors is
      made prior to the time a tax return reflecting the Total Payments is
      required to be filed by the Eligible Participant, he or she will be
      entitled to receive from the Company a Gross-Up Payment calculated on the
      basis of the Excise Tax he or she reported in such tax return, within ten
      days after the later of the date on which he or she files such tax return
      or the date on which he or she provides a copy thereof to the Company. In
      all events, if any tax authority determines that a greater Excise Tax
      should be imposed upon the Total Payments than is determined by the
      Company's independent auditors or reflected in the Eligible Participants'
      tax return pursuant to this Section 4.4, the Eligible Participant is
      entitled to receive from the Company the full Gross-Up Payment calculated
      on the basis of the amount of Excise Tax determined to be payable by such
      tax authority within ten days after he or she notifies the Company of such
      determination.

4.5.  INDEMNIFICATION. Following a Change in Control, the Company will indemnify
      and advance expenses to an Eligible Participant to the full extent
      permitted by law for damages, costs and expenses (including, without
      limitation, judgments, fines, penalties, settlements and reasonable fees
      and expenses of the Participant's counsel) incurred in connection with all
      matters, events and transactions relating to such Eligible Participant's
      service to or status with the Company or any other corporation, employee
      benefit plan or other entity with whom the Eligible Participant served at
      the request of the Company.

                                       10
<PAGE>

                                     ARTICLE
                                       5.
                    ADMINISTRATION AND ENFORCEMENT OF RIGHTS

5.1.  PLAN ADMINISTRATION. The Board has the power and authority to construe,
      interpret and administer the Plan. Prior to the date of a Change in
      Control, the Board may delegate such power and authority to any committee
      or individual but such delegation will automatically cease to be effective
      on the date of a Change in Control. Prior to (but not after) the date of a
      Change in Control, the power and authority of the Board and any individual
      or committee to whom such power and authority is in whole or in part
      delegated is discretionary as to all matters.

5.2.  AMENDMENT AND TERMINATION.

      (A)   Prior to the date of a Change in Control, the Board may amend the
            Plan from time to time in such respects as the Board may deem
            advisable; provided, that the effective date of any amendment that
            adversely affects a Qualified Employee may not be less than one year
            after the date on which the amendment is approved by the Board and,
            if a Change in Control occurs prior to the date on which the
            amendment would otherwise be effective, the amendment automatically
            will be null and void. On and after the date of a Change in Control,
            the Plan may be amended with respect to a Participant only if he or
            she consents to the amendment in a written instrument signed by the
            Participant.

      (B)   The Board may terminate the Plan at any time; provided, first, that
            prior to the date of a Change in Control, the effective date of the
            termination may not be less than one year after the date on which
            the termination is approved by the Board; and, second, that the Plan
            cannot be terminated, and no termination will become effective,
            within the period beginning on the date of a Change in Control and
            ending on the last day of the twelfth month that begins after the
            month in which the Change in Control occurs.

      (C)   Any amendment or termination of the Plan must be set forth in a
            written instrument approved by the Board and signed by at least two
            officers of the Parent Corporation.

5.3.  BENEFIT CLAIMS. A person whose employment relationship with the Company
      has terminated and who has not been awarded benefits under the Plan or who
      objects to the amount of the benefits so awarded may, within 90 days after
      his or her employment has terminated, file a written request for benefits
      with the Board. The Board will review such request and will notify the
      claimant of its decision within 60 days after such request is filed. If
      the Board denies the claim for benefits, the notice of the denial will
      contain

      (A)   the specific reason for the denial,

      (B)   a specific reference to the provision of the Plan on which denial is
            based,

      (C)   a description of any additional information or material necessary
            for the person to perfect his or her claim (and an explanation of
            why such information is material or necessary), and

      (D)   an explanation of the Plan's claim review procedure.

                                       11
<PAGE>

            If the Board determines that a claimant is not eligible for
            benefits, or if the claimant believes that he or she is entitled to
            greater or different benefits, the claimant may file a petition for
            review with the Board within 60 days after the claimant receives the
            notice issued by the Board. Within 60 days after the Board receives
            the petition, the Board will give the claimant (and his or her
            counsel, if any) an opportunity to present his or her position to
            the Board orally or in writing, and the claimant (or his or her
            counsel) will have the right to review the pertinent documents.
            Within 60 days after the hearing (or the date of receipt of the
            petition if the claimant presents his or her position in writing)
            the Board will notify the claimant of its decision in writing,
            stating the decision and the specific provisions of the Plan on
            which the decision is based.

5.4.  DISPUTES.

      (A)   If a Participant so elects, any dispute, controversy or claim
            arising under or in connection with this Plan will be settled
            exclusively by binding arbitration in Orange County, California in
            accordance with the Employee Benefit Plan Claims Arbitration Rules
            of the American Arbitration Association, incorporated by referenced
            herein. Judgment may be entered on the arbitrator's award in any
            court having jurisdiction; provided, that a Participant may seek
            specific performance of his or her right to receive benefits until
            the Date of Termination during the pendency of any dispute or
            controversy arising under or in connection with the Plan. If any
            dispute, controversy or claim for damages arising under or in
            connection with this Plan is settled by arbitration, the Company
            will pay, or if elected by the Participant, reimburse, all fees,
            costs and expenses incurred by a Participant related to such
            arbitration.

      (B)   If a Participant does not elect arbitration, he or she may pursue
            all available legal remedies. The Company will pay, or if elected by
            the Participant, reimburse each Participant for, all fees, costs and
            expenses incurred by such Participant in connection with any actual,
            threatened or contemplated litigation relating to this Plan to which
            the Participant is or reasonably expects to become a party, whether
            or not initiated by the Participant, if the Participant is
            successful in recovering any benefit under this Plan as a result of
            such action.

      (C)   The Company will not assert in any dispute or controversy with any
            Participant arising under or in connection with this Plan the
            Participant's failure to exhaust administrative remedies.

                                     ARTICLE
                                       6.
                                  MISCELLANEOUS

6.1.  SUCCESSORS. The Parent Corporation will require any Successor to expressly
      assume and agree to perform the obligations of this Plan in the same
      manner and to the same extent that the Parent Corporation would be
      required to perform if no such succession had taken place. Failure of the
      Parent Corporation to obtain such assumption and agreement at least three
      business days prior to the time a Person becomes a Successor (or where the
      Parent Corporation does not have at least three business days' advance
      notice that a Person may become a Successor, within one business day after
      having notice that such Person may become or has become a Successor) will
      constitute Good Reason for termination of a Participant's employment. The
      date on which any such succession becomes effective will be deemed the
      Date of Termination and Notice of Termination

                                       12
<PAGE>

      will be deemed to have been given on such date. A Successor has no rights,
      authority or power with respect to the Plan prior to a Change in Control.

6.2.  BINDING PLAN. This Plan is for the benefit of, and is enforceable by, each
      Participant, each Participant's personal and legal representatives,
      executors, administrators, successors, heirs, distributees, devisees and
      legatees, but each Participant may not otherwise assign any of his or her
      rights or delegate any of his or her obligations under this Plan. If a
      Participant dies after becoming entitled to, but before receiving, any
      amounts payable under this Plan, all such amounts, unless otherwise
      provided in this Plan, will be paid in accordance with the terms of this
      Plan to such Participant's devisee, legatee or other designee or, if there
      be no such designee, to such Participant's estate.

6.3.  VALIDITY. The invalidity or unenforceability of any provision of the Plan
      does not affect the validity or enforceability of any other provision of
      the Plan, which will remain in full force and effect.

6.4.  NO MITIGATION. No Eligible Participant will be required to mitigate the
      amount of any benefits the Company becomes obligated to provide in
      connection with this Plan by seeking other employment or otherwise and the
      benefits to be provided in connection with this Plan may not be reduced,
      offset or subject to recovery by the Company by any benefits an Eligible
      Participant may receive from other sources.

6.5.  NO SET-OFF. The Company has no right to set-off benefits owed under this
      Plan against amounts owed or claimed to be owed by an Eligible Participant
      to the Company under this Plan or otherwise.

6.6.  TAXES. All benefits to be provided to each Eligible Participant in
      connection with this Plan will be subject to required withholding of
      federal, state and local income, excise and employment-related taxes.

6.7.  NOTICES. For the purposes of this Plan, notices and all other
      communications provided for in, or required under, this Plan must be in
      writing and will be deemed to have been duly given when personally
      delivered or when mailed by United States registered or certified mail,
      return receipt requested, postage prepaid and addressed to each
      Participant's or the Company's (as the case may be) respective address
      (provided that all notices to the Company must be directed to the
      attention of the chair of the Board, or if no such chair has been
      designated, to a member of the Compensation Committee of the Board). For
      purposes of any such notice requirement, the Company will use the
      Participant's most current address on file in the Company's personnel
      records. Any notice of a Participant's change of address will be effective
      only upon receipt by the Company.

6.8.  EFFECT OF PLAN BENEFITS ON OTHER SEVERANCE PLANS. A Participant who
      receives any payment under the terms of this Plan will not be eligible to
      receive benefits under any other severance pay plan sponsored or
      maintained by the Company.

6.9.  RELATED PLANS. To the extent that any provision of any other Benefit Plan
      or agreement between the Company and a Participant limits, qualifies or is
      inconsistent with any provision of this Plan, then for purposes of this
      Plan, while such other Benefit Plan or agreement remains in force, the
      provision of this Plan will control and such provision of such other
      Benefit Plan or agreement will be deemed to have been superseded, and to
      be of no force or effect, as if such other

                                       13
<PAGE>

      agreement had been formally amended to the extent necessary to accomplish
      such purpose. Nothing in this Plan prevents or limits a Participant's
      continuing or future participation in any Benefit Plan provided by the
      Company, and nothing in this Plan limits or otherwise affects the rights
      Participants may have under any Benefit Plans or other agreements with the
      Company. Amounts which are vested benefits or which Participants are
      otherwise entitled to receive under any Benefit Plan or other agreement
      with the Company at or subsequent to the Date of Termination will be
      payable in accordance with such Benefit Plan or other agreement.

6.10. NO EMPLOYMENT OR SERVICE CONTRACT. Nothing in this Plan is intended to
      provide any Participant with any right to continue in the employ of the
      Company for any period of specific duration or interfere with or otherwise
      restrict in any way Participants' rights or the rights of the Company,
      which rights are hereby expressly reserved, to terminate a Participant's
      employment at any time for any reason or no reason whatsoever, with or
      without cause.

6.11. SURVIVAL. The respective obligations of, and benefits afforded to, the
      Company and the Participants which by their express terms or clear intent
      survive termination of a Participant's employment with the Company or
      termination of this Plan, as the case may be, will remain in full force
      and effect according to their terms notwithstanding the termination of a
      Participant's employment with the Company or termination of this Plan, as
      the case may be.

6.12. EFFECT ON OTHER PLANS. Unless otherwise expressly provided therein,
      benefits paid or payable under the Plan will not be deemed to be salary or
      compensation for purposes of determining the benefits to which a
      Participant may be entitled under any other Benefit Plan sponsored,
      maintained or contributed to by the Company.

6.13. PROHIBITION OF ALIENATION. No Participant will have the right to alienate,
      assign, encumber, hypothecate or pledge his or her interest in any benefit
      provided under the Plan, voluntarily or involuntarily, and any attempt to
      so dispose of any interest will be void.

                                       14<PAGE>
                                                                  Exhibit 10(13)

                              HYCOR BIOMEDICAL INC.
                             2001 STOCK OPTION PLAN

        PURPOSE. The Plan is intended to provide incentive to employees,
directors, advisors and consultants of the Corporation, to encourage such
employees to remain in the employ of the Corporation or such directors, advisors
and consultants to remain in the service of the Corporation, and to attract new
employees, directors, advisors and consultants with outstanding qualifications.

        DEFINITIONS. Unless otherwise defined herein or the context otherwise
requires, the capitalized terms used herein shall have the following meanings:

               "Administrator" shall mean the Board or the Plan Committee of the
Board, whichever shall be administering the Plan from time to time in the
discretion of the Board, as described in Section 4 of the Plan.

               "Board" shall mean the Board of Directors of the Corporation.

               "Change of Control" shall mean, a change of control of a nature
that would be required to be reported in response to Item 1 of Form 8-K required
to be filed pursuant to the Exchange Act; provided that, without limitation,
such a Change of Control shall be deemed to have occurred if:

                        the stockholders of the Company approve a definitive
agreement to sell, transfer, or otherwise dispose of all or substantially all of
the Company's assets and properties; or

                        any "person" (as such term is used in Section 13(d) and
14(d) of the Exchange Act), other than the Company, 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 fifty percent (50%) or
more of the combined voting power of the Company's then outstanding securities;
provided, however, that the following shall not constitute a "Change of Control"
of the Company:

                            any acquisition directly from the Company (excluding
any acquisition resulting from the exercise of a conversion or exchange
privilege in respect of outstanding convertible or exchangeable securities); or

                            any acquisition by an employee benefit plan (or
related trust) sponsored or maintained by the Company or any corporation
controlled by the Company; or

                        during any period of two consecutive years during the
term of this Plan, individuals who at the beginning of such period constitute
the Board cease for any reason to constitute at least a majority thereof, unless
the election of each director who was not a director at the beginning of such
period has been approved in advance by directors representing at least
two-thirds of the directors then in office who were directors at the beginning
of the period; or

                        the stockholders of the Company approve the dissolution
of the Company or a definitive agreement to merge or consolidate the Company
with or into another entity in which the Company is not the continuing or
surviving corporation or pursuant to which any shares of the Company's stock
would be converted into cash, securities or other property of another entity,
other than

                                       44
<PAGE>

a merger of the Company in which holders of the Company's Common Stock
immediately prior to the merger own, either directly or indirectly, fifty
percent (50%) or more of the equity interests or combined voting power of the
surviving entity or corporation immediately following such merger.

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

               "Commission" shall mean the Securities and Exchange Commission.

               "Common Stock" shall mean the common stock of the Corporation and
any class of shares into which such common stock hereafter may be converted or
reclassified.

               "Corporation" shall mean Hycor Biomedical Inc., a Delaware
corporation.

               "Disability" shall mean a medically determinable physical or
mental impairment which has made an individual incapable of engaging in any
substantial gainful activity. A condition shall be considered a Disability only
if (i) it can be expected to result in death or has lasted or it can be expected
to last for a continuous period of not less than twelve (12) months, and (ii)
the Administrator, based upon medical evidence, has expressly determined that
Disability exists.

               "Employee" shall mean an individual who is employed (within the
meaning of Section 3401 of the Code and the regulations thereunder) by the
Corporation.

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

               "Exercise Price" shall mean the price per Share of Common Stock,
determined by the Administrator, at which an Option may be exercised.

               "Fair Market Value" shall mean the value of one (1) Share of
Common Stock, determined as follows:

                        If the Shares are (A) listed on an exchange, the closing
price as reported for composite transactions on the date of valuation, or, if no
sale occurred on that date, then the mean between the closing bid and asked
prices on such exchange on such date, or (B) traded over-the-counter on the
National Market System (the "NMS") of The Nasdaq Stock Market, Inc. ("NASDAQ"),
the last sale price on the date of valuation, or, if no sale occurred on such
date, the last sale price on the business day immediately prior to the date of
valuation, or, if no sale occurred on that date, then the mean between the
highest bid and lowest asked prices as of the close of business on the business
day immediately prior to the date of valuation, as reported in NASDAQ;

                        If the Shares are not traded on an exchange or the NMS
but are otherwise traded over-the-counter, the mean between the highest bid and
lowest asked prices quoted in NASDAQ as of the close of business on the date of
valuation, or, if on such day such Shares are not quoted in NASDAQ, the mean
between the representative bid and asked prices on such date in the domestic
over-the-counter market as reported by the National Quotation Bureau, Inc., or
any similar successor organization; or

                        If neither clause (i) nor (ii) above applies, the Fair
Market Value shall be determined by the Administrator in good faith. Such
determination shall be conclusive and binding on all persons.

                                       45
<PAGE>

               "Grant Date" shall mean the date on which the granting of an
Option is authorized by the Administrator or such other date as prescribed by
the Administrator.

               "Incentive Stock Option" shall mean an option described in
Section 422 of the Code.

               "Nonstatutory Stock Option" shall mean an option that does not
meet the requirements of Section 422 of the Code or is not intended to be an
Incentive

Stock Option.

               "Option" shall mean any stock option granted pursuant to the
Plan.

               "Option Agreement" shall mean a written stock option agreement
evidencing the grant of an Option.

               "Option Limit" shall have the meaning assigned to it in Section
6.

               "Optionee" shall mean a Participant who has received an Option.

               "Participant" shall have the meaning assigned to it in Section
5(a) hereof.

               "Plan" shall mean this Hycor Biomedical Inc. 2001 Stock Option
Plan, as it may be amended from time to time.

               "Plan Committee" shall mean a committee of two or more directors
appointed by the Board to administer the Plan.

               "Purchase Price" shall mean the Exercise Price multiplied by the
number of Shares with respect to which an Option is exercised.

               "Retirement" shall mean the voluntary termination of employment
by an employee after qualifying for early or normal retirement under any pension
plan or profit sharing or benefit plan of the Corporation or its Subsidiaries.
If an employee is not covered by any such plan, "Retirement" shall mean
voluntary termination of employment after the employee has attained age
sixty-five (65) and after the employee has attained the tenth (10th) anniversary
of his or her employment, or as otherwise determined in the Administrator's sole
discretion.

               "Section 16 Participant" shall mean a Participant who is (or, in
the opinion of the Administrator, may be) generally subject to the Section 16
Requirements with respect to purchases and sales of Common Stock or other equity
securities of the Corporation.

               "Section 16 Requirements" shall mean the those obligations and
requirements imposed on officers and directors by Sections 16(a) and 16(b) of
the Exchange Act and the rules of the Commission promulgated thereunder.

               "Securities Act" shall mean the Securities Act of 1933, as
amended.

               "Subsidiary" shall mean any subsidiary corporation as defined in
Section 425(f) of the Code.

                                       46
<PAGE>

               "Share" shall mean one share of Common Stock, adjusted in
accordance with Section 10 of the Plan (if applicable).

               "Transfer Agent" shall mean a third-party organization retained
by the Corporation to maintain the stock transfer records of the Corporation.

        EFFECTIVE DATE. The Plan was adopted by the Board effective February
23, 2001. Options granted hereunder prior to obtaining stockholder approval
in accordance with Section 15 of the Plan shall be subject to such approval and
shall be canceled if such approval is not obtained.

        ADMINISTRATION.

               Administrator. Subject to subsection (c) below, the Plan shall be
administered, in the discretion of the Board from time to time, by the Board or
by a Plan Committee which shall be appointed by the Board as provided in the
Corporation's Bylaws. The Board may from time to time remove members from, or
add members to, the Plan Committee. Vacancies on the Plan Committee, however
caused, shall be filled by the Board. The Board shall appoint one of the members
of the Plan Committee as Chairman. The Administrator shall hold meetings at such
times and places as it may determine. Acts of a majority of the Administrator at
which a quorum is present, or acts reduced to or approved in writing by the
unanimous consent of the members of the Administrator, shall be the valid acts
of the Administrator.

               Powers of Administrator. The Administrator shall from time to
time at its discretion select the Optionees who are to be granted Options,
determine the number of Shares to be subject to Options to be granted to each
Optionee and designate such Options as Incentive Stock Options or Nonstatutory
Stock Options. The Administrator shall have full power and authority to operate,
manage and administer the Plan and interpret and construe the Plan and the terms
of all Option Agreements. The interpretation and construction by the
Administrator of any provision of the Plan or of any Option or Option Agreement
shall be final. No member of the Administrator shall be liable for any action or
determination made in good faith with respect to the Plan or any Option.

               Disinterested Administration. If the Common Stock is registered
under the Exchange Act and Section 16 Participants are to receive Options
hereunder, this Plan shall be administered by the Board or by a Plan Committee
consisting solely of two or more directors each of whom shall be a "non-employee
director" within the meaning of Rule 16b-3(b)(3) of the Exchange Act and an
"outside director" within the meaning of Section 162(m) of the Code.

        PARTICIPATION.

               Eligibility. The Optionee shall be such persons (collectively,
"Participants"; individually a "Participant") as the Administrator may select
from among the following classes of persons, subject to the terms and conditions
of Section 5(b) below:

                        Employees (who may be officers, whether or not they are
directors) of the Corporation or of a Subsidiary and non-employees to whom an
offer of employment has been extended; and

                        directors, advisors and consultants of the Corporation
or a Subsidiary.

                                       47
<PAGE>

        Notwithstanding provisions of the first paragraph of this Section 5(a),
the Administrator may at any time or from time to time designate one or more
directors as being ineligible for selection as Participants in the Plan for any
period or periods of time. The Administrator may, in its sole discretion and
upon such terms as it deems appropriate, require as a condition of the grant of
an Option to a Participant that the Participant surrender for cancellation some
or all of the Options which have been previously granted to such person under
this Plan or otherwise. An Option, the grant of which is conditioned upon such
surrender, may have an option price lower (or higher) than the exercise price of
such surrendered Option, may cover the same (or a lesser or greater) number of
shares as such surrendered Option, may contain such other terms as the
Administrator deems appropriate, and shall be exerciseable in accordance with
its terms, without regard to the number of shares, price, exercise period or any
other term or condition of such surrendered Option.

               Ten-Percent Stockholders. A Participant who, at the time of
grant, owns more than ten percent (10%) of the total combined voting power of
all classes of outstanding stock of the Corporation or its parent shall not be
eligible to receive an Incentive Stock Option unless the Exercise Price of the
Shares subject to such Option is at least one hundred ten percent (110%) of the
Fair Market Value of such Shares on the Grant Date.

               Stock Ownership. For purposes of Section 5(b) above, in
determining stock ownership, a Participant shall be considered as owning the
stock owned, directly or indirectly, by or for his or her brothers and sisters,
spouse, ancestors and lineal descendants. Stock owned, directly or indirectly,
by or for a corporation, partnership, estate or trust shall be considered as
being owned proportionately by or for its stockholders, partners or
beneficiaries. Stock with respect to which such Participant holds an Option
shall not be counted.

               Outstanding Stock. For purposes of Section 5(b) above,
"outstanding stock" shall include all stock actually issued and outstanding
immediately after the grant of the Option to the Optionee. "Outstanding stock"
shall not include Shares authorized for issue under outstanding Options held by
the Optionee or by any other person.

        STOCK. The stock subject to Options granted under the Plan shall be
Shares of the Corporation's authorized but unissued or reacquired Common Stock.
The aggregate number of Shares which may be issued upon exercise of Options
under the Plan at any time shall not exceed 1,000,000 Shares (the "Option
Limit"), subject to adjustment as provided for in this Plan. Notwithstanding the
foregoing, upon the full or partial payment of any Purchase Price by the
transfer to the Corporation of Shares or upon satisfaction of tax withholding
provisions in connection with any such exercise or any other payment made or
benefit realized under this Plan by the transfer or relinquishment of Shares,
there shall be deemed to have been issued or transferred under this Plan only
the net number of Shares actually issued or transferred by the Corporation. In
the event any outstanding Option granted under this Plan for any reason expires
or is canceled or terminated, the Shares allocable to the unexercised portion of
such Option shall again be available to be granted as Options under this Plan.
Notwithstanding the previous sentence, to the extent required by Section 162(m)
of the Code, Shares subject to Options which are canceled continue to be counted
against the Option Limit and if, after an Option grant, the price of Shares
subject to such Option is reduced, the transaction is treated as a cancellation
of the Option and a grant of a New Option and both the Option deemed to be
canceled and the Option deemed to be granted are counted against the Option
Limit. The limitations established by this Section 6 shall be subject to
adjustment in the manner provided in Section 10 hereof upon the occurrence of an
event specified in Section 10.

                                       48
<PAGE>

        TERMS AND CONDITIONS OF OPTIONS.

               Stock Option Agreements. Each Option shall be evidenced by an
Option Agreement in such other form as the Administrator shall from time to time
determine. Such Option Agreements need not be identical but shall comply with
and be subject to the terms and conditions set forth in this Section 7.

               Nature of Option. Each Option shall state whether it is an
Incentive Stock Option or a Nonstatutory Stock Option.

               Optionee's Undertaking. Each Optionee shall agree to remain in
the employ or service of the Corporation and to render services for a period as
shall be determined by the Administrator, from the Grant Date of the Option or
such other date agreed to by the Optionee and the Corporation, but such
agreement shall not impose upon the Corporation any obligation to retain the
Optionee in their employ or service for any period.

               Number of Shares. Each Option shall state the number of Shares to
which it pertains and shall provide for the adjustment thereof in accordance
with the provisions of Section 10 hereof.

               Exercise Price; Exercise of Options. Each Option shall state the
Exercise Price. The Exercise Price in the case of an Incentive Stock Option
granted to an Optionee described in Section 5(b) hereof, shall not be less than
one hundred ten percent (110%) of the Fair Market Value on the Grant Date. The
Exercise Price in the case of any Incentive Stock Option granted to persons
other than to an Optionee described in Section 5(b) hereof, shall not be less
than the Fair Market Value on the Grant Date. The Exercise Price in the case of
any Nonstatutory Stock Option, shall not be less than Eighty-five percent (85%)
of the Fair Market Value on the Grant Date. At the sole discretion of the
Administrator, any Option granted under this Plan to any Participant may be
exercisable in whole or in part immediately upon the grant thereof, or only
after the occurrence of a specified event and/or only in installments, which
installments may be equal or otherwise, and which installments may vary as to
the number thereof as well as to whether any unexercised installments are
cumulative through the life of a particular Option.

               Medium and Time of Payment; Notice. The Purchase Price shall be
payable in full in United States dollars upon the exercise of the Option;
provided, however, that if the applicable Option Agreement so provides, or the
Administrator in its sole discretion otherwise approves thereof, the Purchase
Price may (to the extent permitted by applicable law) be paid by the surrender
of Shares in good form for transfer, owned by the person exercising the Option
and having a Fair Market Value on the date of exercise equal to the Purchase
Price.

        In the event the Corporation determines that it is required to withhold
state or Federal income tax as a result of the exercise of an Option, as a
condition to the exercise thereof, an Optionee must make arrangements
satisfactory to the Corporation to enable it to satisfy such withholding
requirements before the Optionee shall be permitted to exercise the Option.
Payment of such withholding requirements may be made, in the discretion of the
Administrator, (i) in cash, (ii) by delivery of Shares registered in the name of
the Optionee, or by the Corporation not issuing such number of Shares subject to
the Option, having a Fair Market Value at the time of exercise equal to the
amount to be withheld or (iii) any combination of (i) and (ii) above.

                                       49
<PAGE>

        The Optionee shall exercise an Option by completing and delivering to
the Corporation, concurrently with the payment of the Purchase Price in the
manner described above, an exercise notice in such form as the Administrator
shall from time to time determine.

               Term and Non-Transferability of Options. Each Option shall state
the time or times when all or part thereof becomes exercisable. No Option shall
be exercisable after the expiration of ten (10) years (or less, in the
discretion of the Administrator) from the Grant Date; except that no Incentive
Stock Option granted to an Optionee described in Section 5(b) hereof shall be
exercisable after the expiration of five (5) years from the Grant Date (or less,
in the discretion of the Administrator). During the lifetime of the Optionee,
the Option shall be exercisable only by the Optionee or the Optionee's guardian
or legal representative and shall not be assignable or transferable. The Option
shall not be transferable by the Optionee other than by will or the laws of
descent and distribution. Any other attempted alienation, assignment, pledge,
hypothecation, attachment, execution or similar process, whether voluntary or
involuntary, with respect to all or any part of any Option or right thereunder,
shall be null and void and, at the Corporation's option, shall cause all of the
Optionee's rights under the Option to terminate.

               Cessation of Employment (Except by Death, Disability or
Retirement). If an Optionee's employment or service with the Corporation ceases
for any reason or no reason, whether voluntarily or involuntarily, with or
without cause, other than pursuant to death, Disability or Retirement, such
Optionee shall have the right, subject to the restrictions referred to in
Section 7(g) above, to exercise the Option at any time within ninety (90) days
after such cessation, but, except as otherwise provided in the applicable Option
Agreement, only to the extent that, at the date of such cessation, the
Optionee's right to exercise such Option had accrued pursuant to the terms of
the applicable Option Agreement and had not previously been exercised.

        For purposes of this Section 7(h), the employment relationship shall be
treated as continuing intact while the Optionee is on military leave, sick leave
or other bona fide leave of absence (to be determined in the sole discretion of
the Administrator). The foregoing notwithstanding, in the case of an Incentive
Stock Option, employment shall not be deemed to continue beyond the ninetieth
(90th) day after the Optionee ceased active employment, unless the Optionee's
reemployment rights are guaranteed by statute or by contract.

               Death of Optionee. If an Optionee's employment or service with
the Corporation ceases by reason of the Optionee's death, or after ceasing to be
a Participant but during the period in which he or she could have exercised the
Option under this Section 7, and has not fully exercised the Option, then the
Option may be exercised in full, subject to the restrictions referred to in
Section 7(g) above, at any time within twelve (12) months after the Optionee's
death by the executor or administrator of his or her estate or by any person or
persons who have acquired the Option directly from the Optionee by bequest or
inheritance, but, except as otherwise provided in the applicable Option
Agreement, only to the extent that, at the date of death, the Optionee's right
to exercise such Option had accrued and had not been forfeited pursuant to the
terms of the applicable Option Agreement and had not previously been exercised.

               Disability of Optionee. If an Optionee's employment or service
with the Corporation ceases by reason of the Optionee's Disability, such
Optionee shall have the right, subject to the restrictions referred to in
Section 7(g) above, to exercise the Option at any time within twelve (12) months
after such cessation by reason of Disability, but, except as provided in the
applicable Option Agreement, only to the extent that, at the date of such
cessation, the Optionee's right to exercise such

                                       50
<PAGE>

Option had accrued pursuant to the terms of the applicable Option Agreement and
had not previously been exercised.

               Retirement of Optionee. If an Optionee's employment or service
with the Corporation ceases by reason of the Optionee's Retirement, such
Optionee shall have the right, subject to the restrictions referred to in
Section 7(g) above, to exercise the Option at any time within six (6) months
days after the date of Retirement, but only to the extent that, at the date of
such cessation, the Optionee's right to exercise such Option had accrued
pursuant to the terms of the applicable Option Agreement and had not previously
been exercised.

               Time of Cessation of Service. For purposes of this Plan, the
Optionee's employment or service shall be deemed to have ceased or be terminated
on the date when the Optionee's employment or service in fact ceased or Optionee
is in fact terminated.

               Rights as a Stockholder. No one shall have rights as a
stockholder with respect to any Shares covered by an Option until the date of
the issuance of a stock certificate for such Shares. No adjustment shall be made
for dividends (ordinary or extraordinary, whether in cash, securities or other
property), distributions or other rights for which the record date is prior to
the date such stock certificate is issued, except as expressly provided in
Section 10 hereof.

               Modification, Extension and Renewal of Options. Within the
limitations of the Plan, the Administrator may modify an Option, extend or renew
outstanding Options or accept the cancellation of outstanding Options (to the
extent not previously exercised) for the granting of new Options in substitution
therefor. The foregoing notwithstanding, no modification of an Option shall,
without the consent of the Optionee, adversely alter or impair any rights or
obligations under any Option previously granted. With the consent of the
affected Optionee, the Administrator may cancel any agreement evidencing
Options. In the event of such cancellation, the Administrator may authorize the
granting of new Options, which may or may not cover the same number of Shares
that have been the subject of the prior award, at such Exercise Price and
subject to such terms, conditions and discretions as would have been applicable
under this Plan had the canceled Options not been granted.

               Substitution of Options. Notwithstanding any inconsistent
provisions or limits under the Plan, in the event the Corporation acquires
(whether by purchase, merger or otherwise) all or substantially all of
outstanding capital stock or assets of another corporation or of any
reorganization or other transaction qualifying under Section 424 of the Code,
the Administrator may, in accordance with the provisions of that Section,
substitute Options under the Plan for options under the plan of the acquired
company; provided, however, that (i) the excess of the aggregate fair market
value of the shares subject to an option immediately after the substitution over
the aggregate option price of such shares is not more than the similar excess
immediately before such substitution and (ii) the new option does not give
persons additional benefits, including any extension of the exercise period.

               Other Provisions. An Option Agreement authorized under the Plan
may contain such terms and provisions not inconsistent with the terms of the
Plan (including, without limitation, restrictions upon the exercise of the
Option) as the Administrator shall deem advisable in its sole and absolute
discretion.

                                       51
<PAGE>

        LIMITATION ON INCENTIVE STOCK OPTIONS. To the extent that the aggregate
Fair Market Value (determined as of the Grant Date) of the Shares with respect
to which Incentive Stock Options are exercisable for the first time by any
Optionee during any calendar year under the Plan and all other plans maintained
by the Corporation or its parent, exceeds $100,000, such excess Options shall be
treated as Nonstatutory Stock Options. For the purposes of this Section 8,
Incentive Stock Options shall be taken into account in the order in which they
were granted.

        TERM OF PLAN. Options may be granted pursuant to the Plan until the
expiration of the Plan ten (10) years after the effective date referred to in
Section 3.

        EFFECT OF CERTAIN EVENTS.

               Adjustments Upon Changes in Stock. The Administrator shall make
or provide for such adjustments in the Option Limit, the Exercise Price and in
the number or kind of shares or other securities (including shares or other
securities of another issuer) covered by this Plan and outstanding Options as
the Administrator in its sole discretion, exercised in good faith, shall
determine is equitably required to prevent dilution or enlargement of rights of
optionees that would otherwise result from (a) any stock dividend, stock split,
combination of shares, issuance of rights or warrants to purchase stock,
spin-off, recapitalization or other changes in the capital structure of the
Corporation, (b) any merger, consolidation, reorganization or partial or
complete liquidations, or (c) any other corporate transaction or event having an
effect similar to any of the foregoing. The Administrator may also make or
provide for such adjustment in the number or kind of shares of the Corporation's
capital stock or other securities (or in shares or other securities of another
issuer) which may be acquired pursuant to Options granted under the Plan and the
number of such securities to be awarded to each Optionee as the Administrator in
its sole discretion, shall determine is appropriate to reflect any transaction
or event described in the preceding sentence. In the event of any such
transaction or event, the Administrator may provide in substitution for any or
all outstanding Options under the Plan such alternative consideration (including
securities of any surviving entity) as it may in good faith determine to be
equitable under the circumstances and may require in connection therewith the
surrender of all Options so replaced. In any case, such substitution of
securities shall not require the consent of any person who is granted Options
pursuant to the Plan. The determination of the Administrator as to what
adjustments shall be made, and the extent thereof, shall be final, binding and
conclusive.

               Change of Control. In addition to the rights set forth in Section
10(a) above, in the event of a Change of Control, the Administrator may, in its
sole discretion, without obtaining stockholder approval or the consent of any
person granted Options under the Plan, take one or more of the following
actions:

                        Accelerate the exercise dates of any outstanding
Options, or make Options fully vested and exercisable;

                        Pay cash to any or all owners of Options in exchange for
the cancellation of their outstanding Options; or

                        Make any other adjustments or amendments to the Plan and
outstanding Options and substitute new Options for outstanding Options.

               Adjustment Determination. To the extent that the foregoing
adjustments relate to securities of the Corporation, such adjustments shall be
made by the Administrator, whose determination shall be conclusive and binding
on all persons.

                                       52
<PAGE>

               Limitation on Rights. Except as expressly provided in this
Section 10, the Optionee shall have no rights by reason of any 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
or by reason of any dissolution, liquidation, merger or consolidation or spinoff
of assets or stock of another corporation, and any issue by the Corporation 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 Corporation 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.

        SECURITIES LAW REQUIREMENTS.

               Legality of Issuance. No Shares shall be issued upon the exercise
of any Option unless and until the Corporation has determined that:

                        it and the Optionee have taken all actions required to
register the offer and sale of the Shares under the Securities Act, or to
perfect an exemption from the registration requirements thereof;

                        any applicable listing requirement of any stock exchange
on which the Common Stock is listed has been satisfied; and

                        any other applicable provision of state or Federal law
has been satisfied.

               Restrictions on Transfer; Representations of Optionee; Legends.
Regardless of whether the offering and sale of Shares under the Plan has been
registered under the Securities Act or has been registered or qualified under
the securities laws of any state, the Corporation may impose restrictions upon
the sale, pledge or other transfer of such Shares (including the placement of
appropriate legends on stock certificates) if, in the judgment of the
Corporation and its counsel, such restrictions are necessary or desirable in
order to achieve compliance with the provisions of the Securities Act, the
securities laws of any state or any other law. In the event that the sale of
Shares under the Plan is not registered under the Securities Act but an
exemption is available which requires an investment representation or other
representation, each Optionee shall be required to represent that such Shares
are being acquired for investment, and not with a view to the sale or
distribution thereof, and to make such other representations as are deemed
necessary or appropriate by the Corporation and its counsel. Stock certificates
evidencing Shares acquired under the Plan pursuant to an unregistered
transaction shall bear the following restrictive legend and such other
restrictive legends as are required or deemed advisable under the provisions of
any applicable law:

               "THE SALE OF THE SECURITIES REPRESENTED HEREBY HAS NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933 AS AMENDED (THE "ACT"). ANY TRANSFER
OR PLEDGE OF SUCH SECURITIES WILL BE INVALID UNLESS A REGISTRATION STATEMENT
UNDER THE ACT IS IN EFFECT AS TO SUCH TRANSFER OR IN THE OPINION OF COUNSEL FOR
THE ISSUER SUCH REGISTRATION IS UNNECESSARY IN ORDER FOR SUCH TRANSFER OR PLEDGE
TO COMPLY WITH THE ACT."

        Any determination by the Corporation and its counsel in connection with
any of the matters set forth in this Section 11 shall be conclusive and binding
on all persons.

                                       53
<PAGE>

               Registration or Qualification of Securities. The Corporation may,
but shall not be obligated to, register or qualify the sale of Shares under the
Securities Act or any other applicable law. The Corporation shall not be
obligated to take any affirmative action in order to cause the sale of Shares
under the Plan to comply with any law.

               Exchange of Certificates. If, in the opinion of the Corporation
and its counsel, any legend placed on a stock certificate representing Shares
sold under the Plan is no longer required, the holder of such certificate shall
be entitled to exchange such certificate for a certificate representing the same
number of Shares but without such legend.

        AMENDMENT OF THE PLAN. The Administrator may from time to time, with
respect to any Shares at the time not subject to Options, suspend or discontinue
the Plan or revise or amend it in any respect whatsoever except that, without
the approval of the Corporation's stockholders, no such revision or amendment
shall:

               Be made if stockholder approval is required by applicable law,
regulation or the requirements of The Nasdaq Stock Market or any exchange or
interdealer network where the Shares are trading;

               Increase the number of Shares which may be issued under the Plan;

               Amend this Section 12 to defeat its purpose.

        Without limiting the generality of the foregoing, the Administrator may
amend this Plan to eliminate provisions which are no longer necessary as a
result of changes in tax or securities laws or regulations, or in the
interpretation thereof.

        FINANCIAL STATEMENTS. Each Optionee shall receive financial statements
of the Corporation not less than annually.

        APPLICATION OF FUNDS. The proceeds received by the Corporation from the
sale of Common Stock pursuant to the exercise of an Option will be used for
general corporate purposes.

        APPROVAL OF STOCKHOLDERS. The Plan must be approved by the affirmative
vote of the holders of a majority of the Corporation's outstanding shares of
capital stock on or before the date twelve (12) months from the date the Plan
was adopted by the Board.

        GOVERNING LAW. This Plan, and the Option Agreements, shall be governed
by and enforced and construed in accordance with the internal substantive laws
(and not the laws of conflicts of laws) of the State of California.

        To record the adoption of the Plan by the Board as of February 23, 2001,
the Board has caused its authorized officers to sign the Plan and affix the
corporate seal hereto.

HYCOR BIOMEDICAL INC.

By:
Name:    /s/ J. David Tholen
        ---------------------
Title:  President

By:
Name:   /s/ Reginald P. Jones
        ----------------------
Title:  Secretary

                                       54

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