Document:

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                                                                   EXHIBIT 10.8

                              POET HOLDINGS, INC.

                        1999 EMPLOYEE STOCK PURCHASE PLAN

        1. Purpose. The purpose of the Plan is to provide employees of the
Company with an opportunity to purchase Common Stock of the Company through
accumulated payroll deductions. It is the intention of the Company to have the
Plan qualify as an "Employee Stock Purchase Plan" under Section 423 of the
Internal Revenue Code of 1986, as amended. The provisions of the Plan,
accordingly, shall be construed so as to extend and limit participation in a
manner consistent with the requirements of that section of the Code.

        2. Definitions.

                (a) "Board" shall mean the Board of Directors of the Company.

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

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

                (d) "Company" shall mean POET Holdings, Inc., a Delaware
corporation, and any Designated Subsidiary of the Company.

                (e) "Compensation" shall mean all base straight time gross
earnings and commissions, exclusive of payments for overtime, shift premium,
incentive compensation, incentive payments, bonuses and other compensation.

                (f) "Designated Subsidiary" shall mean any Subsidiary that has
been designated by the Board from time to time in its sole discretion as
eligible to participate in the Plan.

                (g) "Employee" shall mean any individual who is an Employee of
the Company for tax purposes whose customary employment with the Company is at
least twenty (20) hours per week and more than five (5) months in any calendar
year. For purposes of the Plan, the employment relationship shall be treated as
continuing intact while the individual is on sick leave or other leave of
absence approved by the Company. Where the period of leave exceeds 90 days and
the individual's right to reemployment is not guaranteed either by statute or by
contract, the employment relationship shall be deemed to have terminated on the
91st day of such leave.

                (h) "Enrollment Date" shall mean the first day of each Offering
Period.

                (i) "Exercise Date" shall mean the last day of each Offering
Period.

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                (j) "Fair Market Value" shall mean, as of any date, the value of
Common Stock determined as follows:

                        (1) If the Common Stock is listed on any established
stock exchange or a national market system, including without limitation the
Nasdaq National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market,
its Fair Market Value shall be the closing sales price for such stock (or the
closing bid, if no sales were reported) as quoted on such exchange or system for
the last market trading day on the date of such determination, as reported in
The Wall Street Journal or such other source as the Board deems reliable, or;

                        (2) If the Common Stock is regularly quoted by a
recognized securities dealer but selling prices are not reported, its Fair
Market Value shall be the mean of the closing bid and asked prices for the
Common Stock on the date of such determination, as reported in The Wall Street
Journal or such other source as the Board deems reliable, or;

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

                        (4) For purposes of the Enrollment Date of the first
Offering Period under the Plan, the Fair Market Value shall be the initial price
to the public as set forth in the final prospectus included within the
registration statement in Form S-1 filed with the Securities and Exchange
Commission for the initial public offering of the Company's Common Stock (the
"Registration Statement").

                (k) "Offering Period" shall mean a period of approximately six
(6) months during which an option granted pursuant to the Plan may be exercised,
commencing on the first Trading Day on or after June 1 and terminating on the
last Trading Day in the period ending the following November 30, or commencing
on the first Trading Day on or after December 1 and terminating on the last
Trading Day in the period ending the following May 31; provided, however, that
the first Offering Period under the Plan shall commence with the first Trading
Day on or after the date on which the Securities and Exchange Commission
declares the Company's Registration Statement effective and ending on the last
Trading Day on or before November 30, 2000. The duration of Offering Periods may
be changed pursuant to Section 4 of this Plan.

                (l) "Plan" shall mean this Employee Stock Purchase Plan.

                (m) "Purchase Price" shall mean an amount equal to 85% of the
Fair Market Value of a share of Common Stock on the Enrollment Date or on the
Exercise Date, whichever is lower; provided, however, that the Purchase Price
may be adjusted by the Board pursuant to Section 20.

                (n) "Reserves" shall mean the number of shares of Common Stock
covered by each option under the Plan which have not yet been exercised and the
number of shares of Common Stock which have been authorized for issuance under
the Plan but not yet placed under option.

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                (o) "Subsidiary" shall mean a corporation, domestic or foreign,
of which not less than 50% of the voting shares are held by the Company or a
Subsidiary, whether or not such corporation now exists or is hereafter organized
or acquired by the Company or a Subsidiary.

                (p) "Trading Day" shall mean a day on which national stock
exchanges and the Nasdaq System are open for trading.

        3. Eligibility.

                (a) Any Employee who shall be employed by the Company on a given
Enrollment Date shall be eligible to participate in the Plan.

                (b) Any provisions of the Plan to the contrary notwithstanding,
no Employee shall be granted an option under the Plan (i) to the extent that,
immediately after the grant, such Employee (or any other person whose stock
would be attributed to such Employee pursuant to Section 424(d) of the Code)
would own capital stock of the Company and/or hold outstanding options to
purchase such stock possessing five percent (5%) or more of the total combined
voting power or value of all classes of the capital stock of the Company or of
any Subsidiary, or (ii) to the extent that his or her rights to purchase stock
under all employee stock purchase plans of the Company and its subsidiaries
accrues at a rate which exceeds Twenty-Five Thousand Dollars ($25,000) worth of
stock (determined at the fair market value of the shares at the time such option
is granted) for each calendar year in which such option is outstanding at any
time.

        4. Offering Periods. The Plan shall be implemented by consecutive
Offering Periods with a new Offering Period commencing on the first Trading Day
on or after June 1 and December 1 each year, or on such other date as the Board
shall determine, and continuing thereafter until terminated in accordance with
Section 20 hereof; provided, however, that the first Offering Period under the
Plan shall commence with the first Trading Day on or after the date on which the
Securities and Exchange Commission declares the Company's Registration Statement
effective and ending on the last Trading Day on or before November 30, 2000. The
Board shall have the power to change the duration of Offering Periods (including
the commencement dates thereof) with respect to future offerings without
stockholder approval if such change is announced at least five (5) days prior to
the scheduled beginning of the first Offering Period to be affected thereafter.

        5. Participation.

                (a) An eligible Employee may become a participant in the Plan by
completing a subscription agreement authorizing payroll deductions in the form
of Exhibit A to this Plan and filing it with the Company's payroll office prior
to the applicable Enrollment Date.

                (b) Payroll deductions for a participant shall commence on the
first payroll following the Enrollment Date and shall end on the last payroll in
the Offering Period to which such authorization is applicable, unless sooner
terminated by the participant as provided in Section 10 hereof.

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        6. Payroll Deductions.

                (a) At the time a participant files his or her subscription
agreement, he or she shall elect to have payroll deductions made on each pay day
during the Offering Period in an amount not exceeding fifteen percent (15%) of
the Compensation which he or she receives on each pay day during the Offering
Period.

                (b) All payroll deductions made for a participant shall be
credited to his or her account under the Plan and shall be withheld in whole
percentages only. A participant may not make any additional payments into such
account.

                (c) A participant may discontinue his or her participation in
the Plan as provided in Section 10 hereof, or may increase or decrease the rate
of his or her payroll deductions during the Offering Period by completing or
filing with the Company a new subscription agreement authorizing a change in
payroll deduction rate. The Board may, in its discretion, limit the number of
participation rate changes during any Offering Period. The change in rate shall
be effective with the first full payroll period following five (5) business days
after the Company's receipt of the new subscription agreement unless the Company
elects to process a given change in participation more quickly. A participant's
subscription agreement shall remain in effect for successive Offering Periods
unless terminated as provided in Section 10 hereof.

                (d) Notwithstanding the foregoing, to the extent necessary to
comply with Section 423(b)(8) of the Code and Section 3(b) hereof, a
participant's payroll deductions may be decreased to zero percent (0%) at any
time during an Offering Period. Payroll deductions shall recommence at the rate
provided in such participant's subscription agreement at the beginning of the
first Offering Period which is scheduled to end in the following calendar year,
unless terminated by the participant as provided in Section 10 hereof.

                (e) At the time the option is exercised, in whole or in part, or
at the time some or all of the Company's Common Stock issued under the Plan is
disposed of, the participant must make adequate provision for the Company's
federal, state, or other tax withholding obligations, if any, which arise upon
the exercise of the option or the disposition of the Common Stock. At any time,
the Company may, but shall not be obligated to, withhold from the participant's
compensation the amount necessary for the Company to meet applicable withholding
obligations, including any withholding required to make available to the Company
any tax deductions or benefits attributable to sale or early disposition of
Common Stock by the Employee.

        7. Grant of Option. On the Enrollment Date of each Offering Period, each
eligible Employee participating in such Offering Period shall be granted an
option to purchase on the Exercise Date of such Offering Period (at the
applicable Purchase Price) up to a number of shares of the Company's Common
Stock determined by dividing such Employee's payroll deductions accumulated
prior to such Exercise Date and retained in the Participant's account as of the
Exercise Date by the applicable Purchase Price; provided that in no event shall
an Employee be permitted to purchase during

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each Offering Period more than 1,000 shares (subject to any adjustment pursuant
to Section 19), and provided further that such purchase shall be subject to the
limitations set forth in Sections 3(b) and 12 hereof. Exercise of the option
shall occur as provided in Section 8 hereof, unless the participant has
withdrawn pursuant to Section 10 hereof. The Option shall expire on the last day
of the Offering Period.

        8. Exercise of Option. Unless a participant withdraws from the Plan as
provided in Section 10 hereof, his or her option for the purchase of shares
shall be exercised automatically on the Exercise Date, and the maximum number of
full shares subject to option shall be purchased for such participant at the
applicable Purchase Price with the accumulated payroll deductions in his or her
account. No fractional shares shall be purchased; any payroll deductions
accumulated in a participant's account which are not sufficient to purchase a
full share shall be retained in the participant's account for the subsequent
Offering Period, subject to earlier withdrawal by the participant as provided in
Section 10 hereof. Any other monies left over in a participant's account after
the Exercise Date shall be returned to the participant. During a participant's
lifetime, a participant's option to purchase shares hereunder is exercisable
only by him or her.

        9. Delivery. As promptly as practicable after each Exercise Date on
which a purchase of shares occurs, the Company shall arrange the delivery to
each participant, as appropriate, the shares purchased upon exercise of his or
her option.

        10. Withdrawal.

                (a) A participant may withdraw all but not less than all the
payroll deductions credited to his or her account and not yet used to exercise
his or her option under the Plan at any time by giving written notice to the
Company in the form of Exhibit B to this Plan. All of the participant's payroll
deductions credited to his or her account shall be paid to such participant
promptly after receipt of notice of withdrawal and such participant's option for
the Offering Period shall be automatically terminated, and no further payroll
deductions for the purchase of shares shall be made for such Offering Period. If
a participant withdraws from an Offering Period, payroll deductions shall not
resume at the beginning of the succeeding Offering Period unless the participant
delivers to the Company a new subscription agreement.

                (b) A participant's withdrawal from an Offering Period shall not
have any effect upon his or her eligibility to participate in any similar plan
which may hereafter be adopted by the Company or in succeeding Offering Periods
which commence after the termination of the Offering Period from which the
participant withdraws.

        11. Termination of Employment. Upon a participant's ceasing to be an
Employee for any reason, he or she shall be deemed to have elected to withdraw
from the Plan and the payroll deductions credited to such participant's account
during the Offering Period but not yet used to exercise the option shall be
returned to such participant or, in the case of his or her death, to the person
or persons entitled thereto under Section 15 hereof, and such participant's
option shall be automatically terminated. The preceding sentence
notwithstanding, a participant who receives payment in lieu of notice of
termination

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of employment shall be treated as continuing to be an Employee for the
participant's customary number of hours per week of employment during the period
in which the participant is subject to such payment in lieu of notice.

        12. Interest. No interest shall accrue on the payroll deductions of a
participant in the Plan.

        13. Stock.

                (a) Subject to adjustment upon changes in capitalization of the
Company as provided in Section 19 hereof, the maximum number of shares of the
Company's Common Stock which shall be made available for sale under the Plan
shall be one hundred thousand (100,000) shares, plus an annual increase to be
added on the first day of the Company's fiscal year beginning in 2000 equal to
the lesser of (i) 131,936 shares, (ii) 1% of the outstanding shares on such date
or (iii) a lesser amount determined by the Board. If, on a given Exercise Date,
the number of shares with respect to which options are to be exercised exceeds
the number of shares then available under the Plan, the Company shall make a pro
rata allocation of the shares remaining available for purchase in as uniform a
manner as shall be practicable and as it shall determine to be equitable.

                (b) The participant shall have no interest or voting right in
shares covered by his option until such option has been exercised.

                (c) Shares to be delivered to a participant under the Plan shall
be registered in the name of the participant or in the name of the participant
and his or her spouse.

        14. Administration. The Plan shall be administered by the Board or a
committee of members of the Board appointed by the Board. The Board or its
committee shall have full and exclusive discretionary authority to construe,
interpret and apply the terms of the Plan, to determine eligibility and to
adjudicate all disputed claims filed under the Plan. Every finding, decision and
determination made by the Board or its committee shall, to the full extent
permitted by law, be final and binding upon all parties.

        15. Designation of Beneficiary.

                (a) A participant may file a written designation of a
beneficiary who is to receive any shares and cash, if any, from the
participant's account under the Plan in the event of such participant's death
subsequent to an Exercise Date on which the option is exercised but prior to
delivery to such participant of such shares and cash. In addition, a participant
may file a written designation of a beneficiary who is to receive any cash from
the participant's account under the Plan in the event of such participant's
death prior to exercise of the option. If a participant is married and the
designated beneficiary is not the spouse, spousal consent shall be required for
such designation to be effective.

                (b) Such designation of beneficiary may be changed by the
participant at any time by written notice. In the event of the death of a
participant and in the absence of a beneficiary validly designated under the
Plan who is living at the time of such participant's death, the Company shall
deliver

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such shares and/or cash to the executor or administrator of the estate of the
participant, or if no such executor or administrator has been appointed (to the
knowledge of the Company), the Company, in its discretion, may deliver such
shares and/or cash to the spouse or to any one or more dependents or relatives
of the participant, or if no spouse, dependent or relative is known to the
Company, then to such other person as the Company may designate.

        16. Transferability. Neither payroll deductions credited to a
participant's account nor any rights with regard to the exercise of an option or
to receive shares under the Plan may be assigned, transferred, pledged or
otherwise disposed of in any way (other than by will, the laws of descent and
distribution or as provided in Section 15 hereof) by the participant. Any such
attempt at assignment, transfer, pledge or other disposition shall be without
effect, except that the Company may treat such act as an election to withdraw
funds from an Offering Period in accordance with Section 10 hereof.

        17. Use of Funds. All payroll deductions received or held by the Company
under the Plan may be used by the Company for any corporate purpose, and the
Company shall not be obligated to segregate such payroll deductions.

        18. Reports. Individual accounts shall be maintained for each
participant in the Plan. Statements of account shall be given to participating
Employees at least annually, which statements shall set forth the amounts of
payroll deductions, the Purchase Price, the number of shares purchased and the
remaining cash balance, if any.

        19. Adjustments Upon Changes in Capitalization, Dissolution,
Liquidation, Merger or Asset Sale.

                (a) Changes in Capitalization. Subject to any required action by
the stockholders of the Company, the Reserves, the maximum number of shares each
participant may purchase per Offering Period (pursuant to Section 7), as well as
the price per share and the number of shares of Common Stock covered by each
option under the Plan which has not yet been exercised shall be proportionately
adjusted for any increase or decrease in the number of issued shares of Common
Stock resulting from a stock split, reverse stock split, stock dividend,
combination or reclassification of the Common Stock, or any other increase or
decrease in the number of shares of Common Stock effected without receipt of
consideration by the Company; provided, however, that conversion of any
convertible securities of the Company shall not be deemed to have been "effected
without receipt of consideration." Such adjustment shall be made by the Board,
whose determination in that respect shall be final, binding and conclusive.
Except as expressly provided herein, no issuance by the Company of shares of
stock of any class, or securities convertible into shares of stock of any class,
shall affect, and no adjustment by reason thereof shall be made with respect to,
the number or price of shares of Common Stock subject to an option.

                (b) Dissolution or Liquidation. In the event of the proposed
dissolution or liquidation of the Company, the Offering Period then in progress
shall be shortened by setting a new Exercise Date (the "New Exercise Date"), and
shall terminate immediately prior to the consummation of such proposed
dissolution or liquidation, unless provided otherwise by the Board. The New
Exercise

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Date shall be before the date of the Company's proposed dissolution or
liquidation. The Board shall notify each participant in writing, at least ten
(10) business days prior to the New Exercise Date, that the Exercise Date for
the participant's option has been changed to the New Exercise Date and that the
participant's option shall be exercised automatically on the New Exercise Date,
unless prior to such date the participant has withdrawn from the Offering Period
as provided in Section 10 hereof.

                (c) Merger or Asset Sale. In the event of a proposed sale of all
or substantially all of the assets of the Company, or the merger of the Company
with or into another corporation, the Offering Period then in progress shall be
shortened by setting a new Exercise Date (the "New Exercise Date"). The New
Exercise Date shall be before the date of the Company's proposed sale or merger.
The Board shall notify each participant in writing, at least ten (10) business
days prior to the New Exercise Date, that the Exercise Date for the
participant's option has been changed to the New Exercise Date and that the
participant's option shall be exercised automatically on the New Exercise Date,
unless prior to such date the participant has withdrawn from the Offering Period
as provided in Section 10 hereof.

        20. Amendment or Termination.

                (a) The Board of Directors of the Company may at any time and
for any reason terminate or amend the Plan. Except as provided in Section 19
hereof, no such termination can affect options previously granted, provided that
an Offering Period may be terminated by the Board of Directors on any Exercise
Date if the Board determines that the termination of the Offering Period or the
Plan is in the best interests of the Company and its stockholders. Except as
provided in Section 19 and Section 20 hereof, no amendment may make any change
in any option theretofore granted which adversely affects the rights of any
participant. To the extent necessary to comply with Section 423 of the Code (or
any other applicable law, regulation or stock exchange rule), the Company shall
obtain shareholder approval in such a manner and to such a degree as required.

                (b) Without stockholder consent and without regard to whether
any participant rights may be considered to have been "adversely affected," the
Board (or its committee) shall be entitled to change the Offering Periods, limit
the frequency and/or number of changes in the amount withheld during an Offering
Period, establish the exchange ratio applicable to amounts withheld in a
currency other than U.S. dollars, permit payroll withholding in excess of the
amount designated by a participant in order to adjust for delays or mistakes in
the Company's processing of properly completed withholding elections, establish
reasonable waiting and adjustment periods and/or accounting and crediting
procedures to ensure that amounts applied toward the purchase of Common Stock
for each participant properly correspond with amounts withheld from the
participant's Compensation, and establish such other limitations or procedures
as the Board (or its committee) determines in its sole discretion advisable
which are consistent with the Plan.

                (c) In the event the Board determines that the ongoing operation
of the Plan may result in unfavorable financial accounting consequences, the
Board may, in its discretion and, to the extent necessary or desirable, modify
or amend the Plan to reduce or eliminate such accounting consequence including,
but not limited to:

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                        (1) altering the Purchase Price for any Offering Period
including an Offering Period underway at the time of the change in Purchase
Price;

                        (2) shortening any Offering Period so that Offering
Period ends on a new Exercise Date, including an Offering Period underway at the
time of the Board action; and

                        (3) allocating shares.

        Such modifications or amendments shall not require stockholder approval
or the consent of any Plan participants.

        21. Notices. All notices or other communications by a participant to the
Company under or in connection with the Plan shall be deemed to have been duly
given when received in the form specified by the Company at the location, or by
the person, designated by the Company for the receipt thereof.

        22. Conditions Upon Issuance of Shares. Shares shall not be issued with
respect to an option unless the exercise of such option and the issuance and
delivery of such shares pursuant thereto shall comply with all applicable
provisions of law, domestic or foreign, including, without limitation, the
Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as
amended, the rules and regulations promulgated thereunder, and the requirements
of any stock exchange upon which the shares may then be listed, and shall be
further subject to the approval of counsel for the Company with respect to such
compliance.

        As a condition to the exercise of an option, the Company may require the
person exercising such option to represent and warrant at the time of any such
exercise that the shares are being purchased only for investment and without any
present intention to sell or distribute such shares if, in the opinion of
counsel for the Company, such a representation is required by any of the
aforementioned applicable provisions of law.

        23. Term of Plan. The Plan shall become effective upon the earlier to
occur of its adoption by the Board of Directors or its approval by the
stockholders of the Company. It shall continue in effect for a term of ten (10)
years unless sooner terminated under Section 20 hereof.

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                                    EXHIBIT A

                               POET HOLDINGS, INC.

                        1999 EMPLOYEE STOCK PURCHASE PLAN

                             SUBSCRIPTION AGREEMENT

_____ Original Application                           Enrollment Date: __________
_____ Change in Payroll Deduction Rate
_____ Change of Beneficiary(ies)

1.      _____________________________________ hereby elects to participate in
        the POET Holdings, Inc. 1999 Employee Stock Purchase Plan (the "Employee
        Stock Purchase Plan") and subscribes to purchase shares of the Company's
        Common Stock in accordance with this Subscription Agreement and the
        Employee Stock Purchase Plan.

2.      I hereby authorize payroll deductions from each paycheck in the amount
        of ____% of my Compensation on each payday (from 1 to _____%) during the
        Offering Period in accordance with the Employee Stock Purchase Plan.
        (Please note that no fractional percentages are permitted.)

3.      I understand that said payroll deductions shall be accumulated for the
        purchase of shares of Common Stock at the applicable Purchase Price
        determined in accordance with the Employee Stock Purchase Plan. I
        understand that if I do not withdraw from an Offering Period, any
        accumulated payroll deductions will be used to automatically exercise my
        option.

4.      I have received a copy of the complete Employee Stock Purchase Plan. I
        understand that my participation in the Employee Stock Purchase Plan is
        in all respects subject to the terms of the Plan. I understand that my
        ability to exercise the option under this Subscription Agreement is
        subject to stockholder approval of the Employee Stock Purchase Plan.

5.      Shares purchased for me under the Employee Stock Purchase Plan should be
        issued in the name(s) of (Employee or Employee and Spouse only): .

6.      I understand that if I dispose of any shares received by me pursuant to
        the Plan within 2 years after the Enrollment Date (the first day of the
        Offering Period during which I purchased such shares), I will be treated
        for federal income tax purposes as having received ordinary income at
        the time of such disposition in an amount equal to the excess of the
        fair market value of the shares at the time such shares were purchased
        by me over the price which I paid for the shares. I hereby agree to
        notify the Company in writing within 30 days after the date of any
        disposition

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        of shares and I will make adequate provision for Federal, state or other
        tax withholding obligations, if any, which arise upon the disposition of
        the Common Stock. The Company may, but will not be obligated to,
        withhold from my compensation the amount necessary to meet any
        applicable withholding obligation including any withholding necessary to
        make available to the Company any tax deductions or benefits
        attributable to sale or early disposition of Common Stock by me. If I
        dispose of such shares at any time after the expiration of the 2-year
        holding period, I understand that I will be treated for federal income
        tax purposes as having received income only at the time of such
        disposition, and that such income will be taxed as ordinary income only
        to the extent of an amount equal to the lesser of (1) the excess of the
        fair market value of the shares at the time of such disposition over the
        purchase price which I paid for the shares, or (2) 15% of the fair
        market value of the shares on the first day of the Offering Period. The
        remainder of the gain, if any, recognized on such disposition will be
        taxed as capital gain.

7.      I hereby agree to be bound by the terms of the Employee Stock Purchase
        Plan. The effectiveness of this Subscription Agreement is dependent upon
        my eligibility to participate in the Employee Stock Purchase Plan.

8.      In the event of my death, I hereby designate the following as my
        beneficiary(ies) to receive all payments and shares due me under the
        Employee Stock Purchase Plan:

        NAME:  (Please print)               ____________________________________
                                            (First)     (Middle)          (Last)

        ____________________________        ____________________________________
           Relationship

                                            ____________________________________
                                            (Address)

           Employee's Social
           Security Number:                 ____________________________________

           Employee's Address:              ____________________________________

                                            ____________________________________

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I UNDERSTAND THAT THIS SUBSCRIPTION AGREEMENT SHALL REMAIN IN EFFECT THROUGHOUT
SUCCESSIVE OFFERING PERIODS UNLESS TERMINATED BY ME.

Dated: ___________________                  ____________________________________
                                            Signature of Employee

                                            ____________________________________
                                            Spouse's Signature (If beneficiary
                                            other than spouse)

                                      -3-<PAGE>
                                                                   Exhibit 10.21

                         EXECUTIVE EMPLOYMENT AGREEMENT

        This Executive Employment Agreement ("Agreement") is made and entered
into this 23rd day of March, 2000 by and between Humboldt Bancorp, a California
corporation, (hereinafter referred to as "Employer") and Kenneth J. Musante
(hereinafter referred to as "Officer"). It is the intent of the parties that,
except as otherwise provided in subparagraph (a) of Paragraph 3, this Agreement
shall be retroactively effective to and including December 16, 1997.

        WHEREAS, the parties hereto desire to enter into an Agreement for the
purpose of engaging the services of Officer by reason of Officer's experience,
training, reputation and ability.

        NOW, THEREFORE, IT IS MUTUALLY AGREED AS FOLLOWS:

1.      EMPLOYMENT TERM AND DUTIES. Officer has served and will continue to be
        employed as Vice President/Manager of Employer and will perform the
        duties as assigned by Employer. This Agreement is in effect until
        December 16, 2007, subject only to prior termination as otherwise
        provided herein.

2.      EXTENT OF SERVICES. During the term of this Agreement, Officer shall
        devote Officer's full time, ability and attention to the business of
        Employer. Officer shall not, without prior written consent of the Board
        of Directors of the Employer, which shall not be unreasonably withheld,
        directly or indirectly render any services of a business, commercial or
        professional nature to any other person, firm, corporation or
        organization for compensation. Further, during the term of this
        Agreement, Officer shall not directly or indirectly, either as an
        employee, employer, consultant, agent, principal, partner, shareholder,
        corporate officer, director or in any individual or representative
        capacity, engage or participate in any competing banking, commercial
        leasing or bankcard service.

        Nothing contained herein shall be construed to prevent Officer from
        investing Officer's assets in any form or manner which does not require
        any substantial activity on Officer's part as long as said investing
        does not in any manner for any amount of time interfere with Officer's
        performance or services on behalf of Employer, or involve a conflict of
        interest or the perception of a conflict. Employer shall be the sole
        judge of activities which have or might appear to be a conflict of
        interest.

3.      COMPENSATION. In consideration of Officer's services to Employer during
        the employment as defined herein, Employer agrees to compensate Officer
        as follows:

        (a)    BASE COMPENSATION. Officer's Base Compensation for the period
               December 16, 1997 and August 31, 1999, inclusive, is hereby
               agreed to have been Officer's annual base salary actually paid
               from time to time to Officer by Employer during such period(s).
               From and after September 1, 1999, for Officer's services

<PAGE>
               hereunder Employer shall pay annually a base salary ("Base
               Compensation") to Officer of Eighty Five Thousand Dollars
               ($85,000.00). Adjustments to the Base Compensation will be at
               Employer's sole discretion: provided, however, that the Base
               Compensation stated herein shall not be decreased during the term
               of this Agreement without the written consent of both Employer
               and Officer.

        (b)    VARIABLE COMPENSATION. In addition to the Base Compensation,
               Officer shall receive, subject to the limitations set forth in
               paragraph 3(e) below, Variable Compensation in the amount of two
               and one-half percent (2.5%) of the Proprietary Portfolio's (as
               defined in Addendum 2) net pre-tax annual income as determined in
               accordance with generally accepted accounting principles by
               Employer's outside independent Certified Public Accountants.
               Variable Compensation will be paid quarterly on the first pay
               period immediately following each quarter end.

        (c)    BONUS COMPENSATION. In addition to the Base and Variable
               Compensation, Employer may, from time to time, grant Officer a
               bonus in amount and at such times and for such reasons as shall
               be solely within Employer's discretion. Officer shall have no
               right to any bonus compensation unless and until such time, and
               only to the extent, as such may be granted in a specific instance
               by Employer.

        (d)    TOTAL CASH COMPENSATION. Officer's total compensation ("Total
               Cash Compensation"), which shall include Base Compensation,
               Variable Compensation and Bonus Compensation, shall not exceed
               Three Hundred Thousand Dollars ($300,000.00) per year unless,
               upon recommendation of Management, the Board and Officer agree to
               amend this Agreement. Any amendment, to be effective, must be in
               writing.

        (e)    FAIR ALLOCATION OF EFFORTS. It is intended by the parties to this
               Agreement that Officer shall fairly allocate his time and
               energies between the Proprietary Portfolio and the other duties
               to be undertaken by him on behalf of Employer. It is therefore
               agreed that Variable Compensation shall not, in any year, exceed
               fifty percent (50%) of the Total Cash Compensation paid to
               Officer. If, in any quarter, the amount which would otherwise be
               paid to Officer as Variable Compensation exceeds fifty percent
               (50%) of Officer's Total Cash Compensation for that quarter, the
               parties will immediately meet to discuss and consider, in good
               faith, whether an amendment to the Agreement would be appropriate
               under the circumstances then existing. Neither party, however,
               shall have any obligation to amend the Agreement in any respect
               and unless both parties agree to amend this Agreement in writing,
               the Agreement shall remain in full force and effect.

4.      EXPENSES. Employer will pay for and reimburse Officer for all ordinary
        and necessary business expenses upon presentation of adequate receipts,
        or proof of payment by Officer, or an account of such expenditures
        satisfactory to Employer. No expense will be paid

<PAGE>

        which will not qualify as a proper deduction on the federal and state
        income tax returns of Employer as a business expense or as deductible
        compensation to Officer.

5.      BENEFITS. Employer will provide to Officer and his eligible dependents
        Employer's Executive Benefits plan attached hereto as Addendum 1, which
        is a part of this Agreement. The benefits as listed on Addendum 1 are
        more fully described in Employer's Employee Handbook and related Summary
        Plan Description documents. Employer reserves the right to make changes
        in its benefit plans, its handbook, and Summary Plan Description
        documents from time to time in its sole discretion.

6.      EQUITY PARTICIPATION. Officer shall have an interest ("Officer's Share")
        in the Proprietary Portfolio (as defined in Addendum 2) as set forth in
        this Paragraph.

        (a)    Employer may sell all or any portion of the Proprietary Portfolio
               at any time, and under such terms and conditions as Employer may,
               in Employer's sole discretion, decide. In the event of a sale
               ("Sale") of all or any portion of the Proprietary Portfolio by
               Employer at any time (except in circumstances where Employer is
               acquired by, merges or consolidates with, another entity or
               otherwise reorganizes its corporate structure, or except with
               respect to a sale to Officer pursuant to subparagraph 6(g)
               below), Officer shall be entitled to ten percent (10%),
               irrespective of any vesting provisions set forth hereunder, of
               the net proceeds of the Sale ("Sale Proceeds"). Net proceeds
               shall reflect deductions for all expenses incurred by Employer in
               completing the transaction, including (but not limited to)
               commissions and appraisals.

        (b)    For all other purposes, Officer's Share shall accrue at the rate
               of one percent (1%) per year of the Proprietary Portfolio, as it
               exists from time to time, for each full year of Officer's
               employment pursuant to this Agreement, beginning December 16,
               1998, up to a maximum of ten percent (10%) thereof on and after
               December 16, 2007.

        (c)    Officer's Share shall not vest until either:

               (i)    Officer is continuously employed pursuant to this
                      Agreement through and until the sixth (6th) anniversary of
                      this Agreement, at which point Officer will have accrued a
                      six percent (6%) interest in the Proprietary Portfolio,
                      and thereafter shall continue to vest at the rate of an
                      additional one percent (1%) per year on the seventh (7th)
                      through the tenth (10th) anniversaries of this Agreement;
                      or

               (ii)   Officer is terminated at any time by Employer without
                      cause, in which case Officer's Share shall immediately
                      vest in the amount of the maximum percentage (10%).

<PAGE>

        (d)    If Officer:

               (i)    resigns employment or is terminated for cause prior to the
                      vesting date, Officer's Share shall immediately become
                      zero (0), and Officer shall have no right to share in any
                      Sale Proceeds, or thereafter have any interest whatsoever
                      in the Proprietary Portfolio.

               (ii)   is terminated for cause or resigns on or after the sixth
                      (6th) anniversary date of this Agreement, Employer shall
                      purchase the vested amount of Officer's Share for a
                      purchase price which shall be equal to the fair market
                      value of the Proprietary Portfolio on the date of
                      termination or resignation, determined pursuant to the
                      provisions of subparagraph 6(e), multiplied by the
                      percentage of the Officer's Share then vested.

        (e)    For purposes of subparagraph 6(d)(ii), the fair market value of
               the Proprietary Portfolio will be established (unless an election
               is made by Employer to sell the entire Proprietary Portfolio
               pursuant to subparagraph 6(f)(iii)), within ninety (90) days of
               the date of termination or resignation of employment, by
               obtaining an independent appraisal by an appraiser mutually
               agreed upon by Officer and Employer. If Officer and Employer are
               unable to agree upon the selection of an appraiser, either party
               may apply to the Humboldt County Superior Court for the
               appointment of an appraiser. The appraiser, however selected,
               shall be a person having national experience in evaluating
               businesses of the type represented by the Proprietary Portfolio.
               The determination of the appraiser shall be final and binding
               upon the parties.

        (f)    In the event of a purchase by Employer of the Officer's Share,
               pursuant to the provisions of subparagraph 6(d)(ii) above,
               Employer may, at Employer's sole option, elect to pay Officer for
               such purchase:

               (i)    in cash or an equivalent value using Employer's stock,
                      valued at the closing market price therefor on the NASDAQ
                      on the date of termination or resignation, in either which
                      case payment shall be due no later than sixty (60) days
                      from the date of the determination of the purchase price;

               (ii)   pursuant to a note, fully amortized over a period of sixty
                      (60) months, which shall bear interest at Employer's prime
                      rate with principal and interest due in monthly
                      installments; or

               (iii)  alternatively, Employer may elect to sell the entire
                      Proprietary Portfolio to a third party in an arm's length
                      transaction and remit to Officer his vested Officer's
                      Share of the Sale Proceeds. The provisions of subparagraph
                      6(a) above shall not apply to such a sale.

<PAGE>

        (g)    In the event that Employer elects to sell the Proprietary
               Portfolio, in its entirety as it then exists at the time of sale,
               at any time during Officer's period of employment pursuant to
               this Agreement, Employer shall first offer to sell to Officer the
               entire Proprietary Portfolio for an amount and upon terms and
               conditions set by Employer. Officer must accept this offer within
               ninety (90) days of written notice from Employer of the proposed
               sale terms. In the event that Officer declines the offer or fails
               to accept it within such ninety (90) day period, Employer may at
               any time thereafter sell the Proprietary Portfolio to any third
               party upon any terms and conditions Employer elects; provided,
               however, that with respect to any sale occurring within the six
               (6) months following the date of such declination or failure, the
               sales price shall be not less than ninety percent (90%) of the
               price offered to Officer. Officer's right to purchase the
               Proprietary Portfolio, as described herein, shall be a one time
               right only, and Employer's failure to sell the Proprietary
               Portfolio following a declination to purchase the Proprietary
               Portfolio or other failure to accept Employer's offer on
               Officer's part shall not create any further or extended right to
               purchase the Proprietary Portfolio by Officer; provided, however,
               that Employer may make Officer a subsequent offer pursuant to the
               terms of this subparagraph at a future date should Employer so
               elect, at Employer's sole option.

        (h)    Except as otherwise provided in Paragraph 11, Officer's Share,
               whether vested or contingent, may not be sold, transferred,
               assigned or hypothecated by Officer.

7.      INDEMNIFICATION. Employer shall indemnify Officer as an agent of
        Employer to the fullest extent permitted under California law, including
        but not limited to Section 317 of the General Corporation Law as the
        same is now in effect or shall be amended. Such indemnification shall
        include the advancement of expenses incurred in defending any
        indemnifiable proceeding prior to its final disposition.

8.      MORAL CONDUCT. Officer agrees to conduct himself at all times with due
        regard to public conventions and morals. Officer further agrees not to
        do or commit any act that will reasonably tend to degrade him or to
        bring him into public hatred, contempt or ridicule, or that will
        reasonably tend to shock or offend the community, or to prejudice
        Employer or the banking, commercial leasing or finance industry in
        general.

9.      CONFIDENTIAL INFORMATION.

        (a)    Officer understands that during the course of his employment with
               Employer, he will have access to trade secrets and other
               confidential information which is of a special and unique nature,
               the value of which would be destroyed by disclosure to any person
               or entity not directly affiliated with the management of the
               Employer. Such trade secrets and confidential information
               include, but are not limited to: Employer's customer lists and
               price lists; business and/or personal information about customers
               and prospects; customer agreements; identities of key customer

<PAGE>

               contacts: credit histories; special tracking programs; Employer's
               internal procedures, programs, manuals, forms, marketing plans,
               pricing structure, business processes, research reports and
               studies, sales materials, merchandising aids, records, and the
               identity and purchasing preferences of Employer's customers and
               suppliers, strategic plans and other knowledge of Employer's
               trade secrets that are integral to the products or services of
               Employer that could materially damage Employer if known and
               utilized in competition with Employer, including other similar
               information which is not easily available from public sources, as
               well as compilations of information prepared by or for Employer,
               where such compilations are not readily available from public
               sources in their compiled form (hereinafter "Confidential
               Information"). Accordingly, Officer agrees that without the prior
               express written consent of the Board of Directors of Employer,
               Officer will not, either during the term of this Agreement or at
               any time thereafter, disclose any such Confidential Information,
               directly or indirectly, to anyone who is not employed directly by
               Employer or employed as an executive officer of an affiliate of
               Employer. Officer further agrees that he shall not use any
               Confidential Information for the benefit of himself or anyone
               other than Employer without the prior written consent of the
               Board of Directors of Employer.

        (b)    The terms of this Agreement are confidential, and Officer shall
               not, either before or after termination of this Agreement and
               except with Employer's consent in writing, disclose to anyone any
               information relating to this Agreement other than to Officer's
               own attorney or accountant for the express purpose of reviewing
               this Agreement or as ordered by a court of competent jurisdiction
               or otherwise required to be disclosed by applicable law or
               regulation.

        (c)    All records in any form, including but not limited to: books,
               files, manuals, drawings, customer lists, records, documents,
               computer files, brochures, equipment, supplies, keys and other
               items relating to Employer's business which have been or may be
               prepared, possessed or controlled by Officer are, and shall
               forever remain, the sole and exclusive property of Employer.
               Accordingly, Officer shall surrender any and all such material to
               Employer immediately upon request of Employer or upon termination
               of this Agreement, whichever occurs earlier and, further, may not
               make copies of any such material for his personal use.

10.     NO SOLICITATION. Officer agrees that Employer has invested substantial
        money, time and effort in assembling its present staff of personnel.
        Accordingly, Officer agrees that for a period of three (3) years after
        termination of employment, Officer will not in any way directly or
        indirectly induce or solicit any of Employer's employees to leave their
        employment. In the event of any solicitation, the parties acknowledge
        that it would be extremely difficult if not impractical, to fix the
        actual damages that Employer would incur. Therefore, the parties agree
        that a fair estimate of the damage to Employer resulting from
        solicitation of its employees would be sixty percent (60%) of the total
        annual compensation paid by Employer during the immediately preceding
        twelve (12)

<PAGE>

        months to the employee(s) solicited, which sum shall become due and
        payable to Employer as liquidated damages, and not as a penalty, on the
        day following the solicited employee's separation from employment with
        Employer. In the event that Humboldt Bancorp is sold, the provisions of
        this Section 10 shall no longer be applicable.

11.     TERMINATION OF EMPLOYMENT.

        (a)    Officer's employment is "at will" and may be terminated by
               Employer with or without cause or notice but such termination
               shall be subject to the provisions of Paragraph 6 hereof.

        (b)    "Termination for cause," for all purposes of this Agreement,
               shall mean (i) Officer's substantial failure to perform the
               stated duties of his position, including financial performance,
               as determined solely by the Board of Directors of Employer,
               subject to good faith, fair dealing and reasonableness by
               Employer and not as a result of arbitrary or capricious acts by
               Employer, (ii) conduct involving moral turpitude prohibited by
               the Employee Handbook, (iii) occurrence of any event involving
               moral turpitude specified in the regulations of any federal or
               state regulator of competent jurisdiction as grounds for
               immediate termination as now or hereafter in effect, (iv)
               personal dishonesty, willful misconduct, gross negligence, breach
               of fiduciary duty involving personal profit, or willful violation
               of any law, rule or regulation (other than a traffic violation or
               similar offense); or (v) conduct resulting in the initiation of
               any formal action by a regulatory agency to remove Officer from
               his employment with Employer or the issuance of a cease and
               desist order the subject matter of which includes any conduct of
               Officer prohibited by such order.

        (c)    The provisions of Paragraph 9 (confidentiality) and Paragraph 10
               (solicitation) shall survive any termination of this Agreement.

12.     NOTICE. Any notices to be given hereunder by either party to the other
        may be effected in writing by mail, registered or certified, postage
        prepaid with return receipt requested. Notices to Employer shall be
        given to Employer at its then current principal office, c/o the Chairman
        of the Board of Directors. Notices to Officer shall be sent to Officer's
        then current or last known personal residence.

13.     ENTIRE AGREEMENT. This Agreement is in addition to any other agreements
        either oral or in writing, between the parties hereto with respect to
        the employment of Officer by Employer. Any modification of the Agreement
        will be effective only if it is in writing signed by the parties hereto.

14.     PARTIAL INVALIDITY. If any provision in this Agreement is held by a
        court of competent jurisdiction to be invalid, void or unenforceable,
        the remaining provisions shall

<PAGE>

        nevertheless continue in full force and effect without being impaired or
        invalidated in any way.

15.     GOVERNING LAW. This Agreement shall be governed by and construed in
        accordance with the laws of the State of California.

16.     WAIVER. The parties hereto shall not be deemed to have waived any of
        their respective rights under this Agreement unless this waiver is in
        writing and signed by such waiving party. No delay in exercising any
        rights shall be a waiver nor shall a waiver on one occasion operate as a
        waiver of such right on a future occasion,

17.     ASSIGNMENT. Neither this Agreement nor any of the rights or benefits
        hereunder shall be subject to execution, attachment or similar process.
        This Agreement, nor any rights or benefits hereunder, may not be
        assigned, transferred, pledged or hypothecated without the written
        consent of both parties hereto; provided, however, that in the event of
        any sale of substantially all of the assets of, or merger,
        consolidation, conversion or other reorganization involving the
        Employer, any successor to Employer by reason of such reorganization
        shall succeed to all Employer's rights and benefits and shall be subject
        to all of Employer's duties and obligations hereunder, without the
        necessity of any consent of Officer.

18.     CAPTIONS AND PARAGRAPH HEADINGS. Captions and paragraph headings used
        herein are for convenience of reference and are not a part of this
        Agreement and shall not be used in the construction or interpretation
        thereof.

19.     ARBITRATION; ATTORNEY'S FEES. Any controversy or claim arising out of or
        related to this Agreement or alleged breach of this Agreement shall be
        settled by arbitration in accordance with the Commercial Arbitration
        Rules (the "Rules") of the American Arbitration Association then in
        effect, and judgment on the award rendered by the arbitrator may be
        entered in any court having jurisdiction. The arbitration shall be
        conducted in Eureka, California, or such other location as shall be
        agreed to by Officer and Employer. There shall be a single arbitrator.
        Officer and Employer jointly shall directly appoint such arbitrator
        within thirty (30) days after the arbitration is initiated, failing
        which the arbitrator shall be appointed as provided in the Rules. The
        arbitrator shall be a retired judge of the State of California or an
        attorney having at least fifteen (15) years experience as a business
        attorney. The reasonable costs of the arbitration, including the cost of
        any record or transcripts of the arbitration, administrative fees, the
        fees of the arbitrator, attorney's fees, and all other fees and costs
        shall be awarded by the arbitrator to the prevailing party in any such
        arbitration.

20.     OFFICER'S REPRESENTATIONS. Officer represents that he is free to enter
        into this contract and is not precluded or limited, by contract or
        otherwise, from fulfilling the duties and obligations encompassed by
        this contract. Officer further acknowledges that this representation is
        material to Employer's decision to enter into this contract and agrees

<PAGE>

        that if such representation is found to be untrue, this contract may be
        terminated as if for cause by Employer.

HUMBOLDT BANCORP

By:
    ------------------------------------
    Theodore S. Mason, President & CEO

    ------------------------------------
    Kenneth J. Musante

<PAGE>

                                   ADDENDUM 1

                           EXECUTIVE BENEFITS PACKAGE

MEDICAL INSURANCE:                      Employer pays employee's coverage.
                                        Employee pays cost of family coverage
                                        under Employer's Executive Group Medical
                                        Insurance Plan.

DENTAL INSURANCE:                       Employer pays employee's coverage.
                                        Employee pays cost of family coverage
                                        under Employer's Executive Group Dental
                                        Insurance Plan.

VISION INSURANCE:                       Employer pays employee's coverage.
                                        Employee pays cost of family coverage
                                        under Employer's Executive Group Vision
                                        Insurance Plan.

LIFE INSURANCE                          Employer pays cost of term life
                                        insurance policy in amount of two (2)
                                        times annual Base Compensation naming
                                        beneficiary of Employee's choice.

DISABILITY INSURANCE:                   Officer shall pay full cost of any
                                        supplemental Disability Insurance
                                        Program.

SALARY AUGMENTATION:                    Per agreement dated December 1, 1996,
                                        Officer will receive a defined benefit
                                        (annuity) to be paid in 180 monthly
                                        installments beginning on December 1,
                                        2001. Projected base as of starting date
                                        equals $146,665.

VACATION:                               Four (4) weeks per year with annual
                                        carryover ability of two (2) weeks which
                                        must be taken the following year.

SICK LEAVE/HOLIDAYS:                    Standard employee package.

MISCELLANEOUS                           Employer to reimburse Officer for
                                        cellular telephone including airtime
                                        charges. Employer to pay dues and fees
                                        for memberships in professional
                                        organizations approved by Employer.

<PAGE>

                                   ADDENDUM 2

        PROPRIETARY PORTFOLIO: For purposes of the Agreement, the "Proprietary
Portfolio" referred to in Sections 3(b), 3(e), 6, 11 (d) and 11 (e) thereof
shall consist of all merchant accounts associated with the merchant processing
activity generated through the Bank Identification Number 419404 and FDR System
Number 5379.

        As used in Section 3(b) of the Agreement, "net pre-tax income" means all
income generated by the Proprietary Portfolio (including but not limited to
application income, equipment income, discount income, lease income, income from
deposits on hold, American Express income and any other expense and/or income
associated therewith) less all expenses associated with the Proprietary
Portfolio (including but not limited to staff expense, telecommunication
expense, marketing expense, bank occupancy expense, postage expense and
equipment expense, in both cases calculated before provision for taxes.

        When determining the value of the principal of the Proprietary Portfolio
for purposes of Section 6 of the Agreement, the entire operation will be
considered so as to recognize the value of the business, its marketing
potential, systems and future new accounts, rather than merely the merchant
accounts themselves.

        The Proprietary Portfolio may be expanded to include other newly created
BINs and systems upon the express written consent of the Executive Review
Committee of Humboldt Bank.

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