Document:

DIMENSIONAL VISIONS GROUP, LTD.
                           1996 EQUITY INCENTIVE PLAN

1.   PURPOSE

     The purpose of this 1996 Equity  Incentive  Plan (the "Plan") is to advance
the  interests of  Dimensional  Visions  Group,  Ltd.  (the  "Company")  and its
subsidiaries  by enhancing  the ability of the Company to (i) attract and retain
employees  and  other  persons  or  entities  who  are  in a  position  to  make
significant  contributions  to the success of the Company and its  subsidiaries;
(ii) reward such persons or entities for such contributions; and (iii) encourage
such  persons or entities to take into  account  the  long-term  interest of the
Company  through  ownership of shares  ("Shares") of the Company's  Common Stock
("Stock").

     The Plan is intended to  accomplish  these goals by enabling the Company to
grant  awards  ("Awards")  in the form of Options,  Stock  Appreciation  Rights,
Restricted Stock or Deferred Stock, all as more fully described below.

2.   ADMINISTRATION

     The  Plan  will  be  administered  by  the   Compensation   Committee  (the
"Committee")  of the  Board of  Directors  of the  Company  (the  "Board").  The
Committee  will  determine the  recipients of Awards,  the times at which Awards
will be made  and the  size  and  type or  types  of  Awards  to be made to each
recipient  and  will  set  forth  in  such  Awards  the  terms,  conditions  and
limitations  applicable to it. Awards may be made singly,  in  combination or in
tandem.  The Committee will have full and exclusive power to interpret the Plan,
to adopt  rules,  regulations  and  guidelines  relating  to the Plan,  to grant
waivers of Plan restrictions and to make all of the determinations necessary for
this  administration.  In its  discretion,  the Board of Directors  may elect to
administer  all or any  aspects of the Plan and to perform  any of the duties or
exercise any of the rights delegated or granted to the Committee under the terms
of the Plan; provided, however, that the Board may not make such election if the
election  would  result in the  failure  of the Plan to comply  with Rule  16b-3
promulgated under the Securities Exchange Act of 1934, as amended (the "Exchange
Act"),  at a time at which the Plan would  otherwise be in compliance  with such
rule. Such determinations and actions of the Committee (or the Board as the case
may be), and all other determinations and actions of the Committee (or the Board
as the case may be) made or taken under  authority  granted by any  provision of
the Plan,  will be  conclusive  and  binding  on all  parties.  Nothing  in this
paragraph  shall be  construed  as limiting  the power of the  Committee to make
adjustments under Section 11 or to amend or terminate the Plan under Section 16.

3.   EFFECTIVE DATE AND TERM OF PLAN

     Subject to the approval of the Plan by the Company's shareholders, the Plan
will be deemed  effective on June 13, 1996.  Grants of Awards under the Plan may
be made prior to the receipt of shareholder  approval,  subject to such approval
of the Plan.

     The Plan will  terminate  ten (10) years  after the  effective  date of the
Plan,  subject  to  earlier  termination  of the Plan by the Board  pursuant  to
Section 16. No Award may be granted under the Plan after the termination date of
the Plan, but Awards previously granted may extend beyond that date.
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4.   SHARES SUBJECT TO THE PLAN

     Subject  to  adjustment  as  provided  in  Section  11 below,  the  maximum
aggregate number of Shares of Stock that may be delivered for all purposes under
the Plan shall be ten million (10,000,000).

     If any Award requiring exercise by the Participant for delivery of Stock is
canceled or terminates  without  having been  exercised in full, or if any Award
payable in Stock or cash is satisfied  in cash rather than Stock,  the number of
Shares of Stock as to which such Award was not  exercised  or for which cash was
substituted  will be  available  for future  grants of Stock  except  that Stock
subject to an Option  canceled  upon the  exercise  of an SAR shall not again be
available for Awards under the Plan unless,  and to the extent that,  the SAR is
settled in cash. Likewise, if any Award payable in Stock or cash is satisfied in
Stock rather than cash, the amount of cash for which such Stock was  substituted
will be available for future Awards of cash  compensation.  Shares of Restricted
Stock  forfeited to the Company in accordance with the Plan and the terms of the
particular  Award shall be available  again for Awards under the Plan unless the
Participant  has  received  the  benefits of  ownership  (within the  applicable
interpretation  under Rule 16b-3  under the  Exchange  Act),  in which case such
Shares may only be available for Awards to  Participants  who are not subject to
Section 16 of the Exchange Act.

     Stock delivered under the Plan may be either  authorized but unissued Stock
or  previously  issued Stock  acquired by the Company and held in  treasury.  No
fractional  Shares of Stock will be delivered  under the Plan and the  Committee
shall determine the manner in which fractional share value will be treated.

5.   ELIGIBILITY AND PARTICIPATION

     Those  eligible to receive Awards under the Plan  ("Participants")  will be
persons in the employ of the  Company or any of its  subsidiaries  ("Employees")
and other  persons or entities  who, in the opinion of the  Committee,  are in a
position to make a significant contribution to the success of the Company or its
subsidiaries, including non-employee directors of the Company or a subsidiary of
the Company and  consultants  to the Company or a subsidiary  of the Company.  A
"subsidiary" for purposes of the Plan will be a corporation in which the Company
owns, directly or indirectly, stock possessing 50% or more of the total combined
voting power of all classes of stock.

6.   OPTIONS

     a. Nature of Options.  An Option is an Award  entitling the  Participant to
purchase  a  specified  number of Shares at a  specified  exercise  price.  Both
"incentive  stock  options," as defined in Section 422 of the  Internal  Revenue
Code of 1986,  as  amended  (the  "Code")  (referred  to herein as an "ISO") and
non-incentive  stock options may be granted under the Plan.  ISOs may be awarded
only to Employees.

     b. Exercise Price. The exercise price of each Option shall be determined by
the  Committee,  but in the case of an ISO shall not be less than 100%  (110% in
the case of an ISO  granted  to a ten  (10%)  percent  shareholder)  of the Fair
Market  Value of a Share at the time the ISO is  granted.  For  purposes of this

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Plan, "Fair Market Value" shall mean the average closing price of the Shares for
the twenty (20) trading days preceeding the grant of an Option.  For purposes of
this Plan, "ten-percent  shareholder" shall mean any Employee who at the time of
grant owns directly,  or is deemed to own by reason of the attribution rules set
forth in  Section  424(d)  of the  Code,  Stock  possessing  more than ten (10%)
percent  of the  total  combined  voting  power of all  classes  of stock of the
Company or any of its subsidiaries.

     c. Duration of Options. In no case shall an Option be exercisable more than
ten (10) years (five (5) years,  in the case of an ISO granted to a "ten-percent
shareholder" as defined in (b) above) from the date the Option was granted.

     d.  Exercise of Options and  Conditions.  Options  granted under any single
Award will become  exercisable at such time or times, and on and subject to such
conditions, as the Committee may specify. Options will not be exercisable unless
the shares  subject  thereto  have been  approved  for  listing on the  National
Association of Securities Dealers Automated  Quotation System ("NASDAQ") or such
other  exchange or quotation  system on which the Common Stock is then listed or
quoted.  The Committee may at any time and from time to time accelerate the time
at which all or any part of the Option may be exercised.

     e.  Payment for and Delivery of Stock.  Full  payment for Shares  purchased
will be made at the time of the  exercise  of the  Option,  in whole or in part.
Payment  of the  purchase  price  will be made in cash or in such  other form of
consideration  as the  Committee  may approve,  including,  without  limitation,
delivery of Shares of Stock.

7.   STOCK APPRECIATION RIGHTS

     a. Nature of Stock  Appreciation  Rights.  A Stock  Appreciation  Right (an
"SAR") is an Award  entitling the recipient to receive  payment,  in cash and/or
Stock,  determined in whole or in part by reference to appreciation in the value
of a Share. In general,  an SAR entitles the recipient to receive,  with respect
to each Share as to which the SAR is  exercised,  the excess of the Fair  Market
Value of a Share on the date of exercise  over the Fair Market  Value of a Share
on the date the SAR was granted.  However, the Committee may provide at the time
of grant that the amount the  recipient  is entitled to receive will be adjusted
upward or downward under rules established by the Committee to take into account
the performance of the Shares in comparison with the performance of other stocks
or an index or indices of other stocks.

     b. Grant of SARs. SARs may be granted in tandem with, or independently  of,
Options granted under the Plan. An SAR granted in tandem with an Option which is
not an ISO may be granted either at or after the time the Option is granted.  An
SAR granted in tandem with an ISO may be granted  only at the time the Option is
granted.

     c.  Exercise  of SARs.  An SAR not  granted in tandem  with an Option  will
become  exercisable  at such  time or  times,  and on  such  conditions,  as the
Committee  may  specify.  An SAR  granted  in  tandem  with  an  Option  will be
exercisable  only at such times,  and to the extent,  that the related Option is
exercisable. An SAR granted in tandem with an ISO may be exercised only when the
market price of the Shares  subject to the Option  exceeds the exercise price of
such Option.

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The Committee may at any time and from time to time accelerate the time at which
all or part of the SAR may be exercised.

8.   RESTRICTED STOCK

     A Restricted Stock Award entitles the recipient to acquire Shares,  subject
to certain restrictions or conditions,  for no cash consideration,  if permitted
by  applicable  law,  or for  such  other  consideration  as  determined  by the
Committee.  The  Award  may be  subject  to such  restrictions,  conditions  and
forfeiture provisions as the Committee may determine, including, but not limited
to, restrictions on transfer,  continuous service with the Company or any of its
subsidiaries;  achievement  of business  objectives,  and  individual,  unit and
Company  performance.  Subject to such  restrictions,  conditions and forfeiture
provisions as may be established by the Committee,  any Participant receiving an
Award will have all the rights of a  shareholder  of the Company with respect to
Shares of Restricted Stock, including the right to vote the Shares and the right
to receive any dividends thereon.

9.   DEFERRED STOCK

     A Deferred  Stock Award  entitles  the  recipient  to receive  Shares to be
delivered in the future.  Delivery of the Shares will take place at such time or
times, and on such conditions,  as the Committee may specify.  The Committee may
at any time  accelerate  the time at  which  delivery  of all or any part of the
Shares will take place.  At the time any  Deferred  Stock Award is granted,  the
Committee may provide that the Participant will receive an instrument evidencing
the Participant's right to future delivery of Deferred Stock.

10.  TRANSFERS

     No Award  (other than an Award in the form of an outright  transfer of cash
or Stock) may be assigned,  pledged or transferred  other than by will or by the
laws of descent and  distribution  and during a  Participant's  lifetime will be
exercisable  only  by the  Participant  or,  in  the  event  of a  Participant's
incapacity, his or her guardian or legal representative.

11.  ADJUSTMENTS

     a. In the event of a stock dividend,  stock split or combination of Shares,
recapitalization  or other  change  in the  Company's  capitalization,  or other
distribution  to holders of the  Company's  Common  Stock other than normal cash
dividends,  after the effective  date of the Plan,  the Committee  will make any
appropriate  adjustments  to the maximum  number of Shares that may be delivered
under the Plan and to any Participant under Section 4 above.

     b. In any event  referred to in paragraph (a), the Committee will also make
any  appropriate  adjustments  to the  number  and  kind of  Shares  of Stock or
securities  subject to Awards then  outstanding  or  subsequently  granted,  any
exercise prices relating to Awards and any other provision of Awards affected by
such change.  The Committee may also make such  adjustments to take into account
material  changes in law or in  accounting  practices  or  principles,  mergers,
consolidations, acquisitions, dispositions or similar corporate transactions, or
any other event,  if it is  determined  by the Committee  that  adjustments  are
appropriate to avoid distortion in the operation of the Plan.

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<PAGE>
12.  RIGHTS AS A SHAREHOLDER

     Except as  specifically  provided by the Plan, the receipt of an Award will
not give a Participant rights as a shareholder; the Participant will obtain such
rights,  subject  to any  limitations  imposed  by the  Plan  or the  instrument
evidencing the Award, upon actual receipt of Shares. However, the Committee may,
on such  conditions as it deems  appropriate,  provide that a  Participant  will
receive a benefit in lieu of cash  dividends that would have been payable on any
or  all  Shares  subject  to  the  Participant's  Award  had  such  Shares  been
outstanding.

13.  CONDITIONS ON DELIVERY OF STOCK

     The Company  will not be  obligated  to deliver any Shares  pursuant to the
Plan or to remove any restrictions or legends from Shares  previously  delivered
under  the  Plan  until,  (a)  in the  opinion  of the  Company's  counsel,  all
applicable  Federal and state laws and regulations  have been complied with, (b)
if the outstanding  Shares are at the time listed on any stock  exchange,  until
the Shares to be delivered  have been listed or  authorized to be listed on such
exchange  upon  official  notice of notice of issuance,  and (c) until all other
legal matters in  connection  with the issuance and delivery of such Shares have
been  approved  by the  Company's  counsel.  If the sale of Shares  has not been
registered  under the  Securities  Act of 1933,  as  amended,  the  Company  may
require,  as a  condition  to exercise of the Award,  such  representations  and
agreements  as  counsel  for the  Company  may  consider  appropriate  to  avoid
violation  of such Act and may require  that the  certificates  evidencing  such
Shares bear an appropriate legend restricting transfer. If an Award is exercised
by the  Participant's  legal  representative,  the  Company  will  be  under  no
obligation  to deliver  Shares  pursuant to such  exercise  until the Company is
satisfied as to the authority of such representative.

14.  TAX WITHHOLDING

     The Company will have the right to deduct from any cash  payment  under the
Plan taxes that are  required  to be  withheld  and  further  to  condition  the
obligation  to deliver  or vest  Shares  under this Plan upon the  Participant's
paying the Company  such amount as it may request to satisfy any  liability  for
applicable  withholding  taxes.  The  Committee  may  in its  discretion  permit
Participants to satisfy all or part of their  withholding  liability by delivery
of Shares with a Fair  Market  Value  equal to such  liability  or by having the
Company  withhold from Stock  delivered upon exercise of an Award,  Shares whose
Fair Market Value is equal to such liability.

15.  MERGERS; ETC.

     In the event of any merger or consolidation involving the Company, any sale
of substantially  all of the Company's assets or any other transaction or series
of related  transactions as a result of which a single person or several persons
acting in concert own a majority of the Company's then  outstanding  Stock (such
merger,  consolidation,  sale or other transaction being hereinafter referred to
as a "Transaction"),  all outstanding  Options and SARs shall become immediately

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exercisable and each outstanding  share of Restricted Stock and each outstanding
Deferred  Stock Award shall  immediately  become  free of all  restrictions  and
conditions.  Upon consummation of the Transaction,  all outstanding  Options and
SARs shall terminate and cease to be  exercisable.  There shall be excluded from
the  foregoing  any  Transaction  as a result of which (a) the  holders of Stock
prior to the Transaction retain or acquire securities constituting a majority of
the outstanding voting Common Stock of the acquiring or surviving corporation or
other  entity and (b) no single  person  owns more than half of the  outstanding
voting Common Stock of the acquiring or surviving  corporation  or other entity.
For purposes of this Section,  voting Common Stock of the acquiring or surviving
corporation  or other entity that is issuable  upon  conversion  of  convertible
securities  or  upon  exercise  of  warrants  or  options  shall  be  considered
outstanding,  and all securities  that vote in the election of directors  (other
than  solely as the result of a default in the making of any  dividend  or other
payment)  shall be deemed to  constitute  that number of shares of voting Common
Stock  which is  equivalent  to the number of such votes that may be cast by the
holders of such securities.

     In lieu of the foregoing, if there is an acquiring or surviving corporation
or  entity,  the  Committee  may by vote of a  majority  of the  members  of the
Committee who are Continuing Directors (as defined below),  arrange to have such
acquiring or surviving  corporation or entity or an Affiliate (as defined below)
thereof grant to Participants  holding  outstanding  Awards  replacement  Awards
which, in the case of ISOs, satisfy, in the determination of the Committee,  the
requirements  of Section  425 (e) of the Code.  The term  "Continuing  Director"
shall mean any director of the Company who (i) is not an Acquiring  Person or an
Affiliate of an  Acquiring  Person and (ii) either was (A) a member of the Board
of Directors of the Company on the  effective  date of the Plan or (B) nominated
for his or her initial term of office by a majority of the Continuing  Directors
in office at the time of such  nomination.  The term  "Acquiring  Person"  shall
mean,  with  respect  to any  Transaction,  each  Person  who is a party to or a
participant in such Transaction or who, as a result of such  Transaction,  would
(together  with other Persons acting in concert) own a majority of the Company's
outstanding  Common  Stock;  provided,  however,  that none of the Company,  any
wholly-owned subsidiary of the Company, any employee benefit plan of the Company
or any trustee in respect thereof acting in such capacity shall, for purposes of
this  Section,  be deemed an  "Acquiring  Person."  The term  "Affiliate",  with
respect to any Person, shall mean any other Person who is, or would be deemed to
be an  "affiliate"  or an  "associate"  of such  Person  within  the  respective
meanings  ascribed  to such  terms  in  Rule  12b-2  of the  General  Rules  and
Regulations  under the  Securities  Exchange Act of 1934,  as amended.  The term
"Person"  shall mean a  corporation,  association,  partnership,  joint venture,
trust,  organization,  business,  individual or  government or any  governmental
agency or political subdivision thereof.

16.  AMENDMENTS AND TERMINATION

     The Committee will have the authority to make such  amendments to any terms
and conditions applicable to outstanding Awards as are consistent with this Plan
provided that,  except for adjustments  under Section 11 hereof,  no such action
will  modify  such Award in a manner  adverse  to the  Participant  without  the
Participant's   consent  except  as  such   modification   is  provided  for  or
contemplated in the terms of the Award.

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     The Board may amend,  suspend or  terminate  the Plan  without  shareholder
approval.

17.  NO GUARANTEE OF EMPLOYMENT

     The grant of an Award under this Plan shall not  constitute an assurance of
continued employment for any period.

18.  MISCELLANEOUS

     This Plan shall be governed by and construed in accordance with the laws of
the State of Delaware.

                                        7EXHIBIT A

                            DIMENSIONAL VISIONS, INC.

                             1999 STOCK OPTION PLAN

SECTION 1. PURPOSE

     The purpose of  Dimensional  Visions,  Inc.'s  1999 Stock  Option Plan (the
"Plan") is to advance the interest of Dimensional Visions,  Inc. (the "Company")
by  encouraging  and enabling  the  acquisition  of a financial  interest in the
Company by officers and other key  employees of the  Company.  In addition,  the
Plan is intended to aid the Company in attracting  and retaining key  employees,
to stimulate the efforts of such  employees  and to  strengthen  their desire to
remain in the employ of the Company.

SECTION 2. DEFINITIONS

     "Business  Day"  means a day on which  the  NASDAQ  is open for  securities
trading.

     "Change in  Control"  shall mean a change in control of a nature that would
be  required  to be  reported  in  response  to  Item  6(e) of  Schedule  14A of
Regulation  14A under the  Securities  Exchange  Act of 1934 ("1934  Act") as in
effect on  January  1, 1999,  provided  that such a change in  control  shall be
deemed to have  occurred at such time as (i) any  "person" (as that term is used
in Sections  13(d) and 14(d)(2) of the 1934 Act), is or becomes the  "beneficial
owner" (as  defined in Rule 13d-3  under the 1934 Act as in effect on January 1,
1999)  directly or  indirectly,  of securities  representing  20% or more of the
combined  voting  power  for  election  of  directors  of the  then  outstanding
securities  of the  Company or any  successor  of the  Company;  (ii) during any
period of two (2) consecutive years or less, individuals who at the beginning of
such period  constituted  the Board of Directors of the Company  cease,  for any
reason, to constitute at least a majority of the Board of Directors,  unless the
election or nomination  for election of each new director was approved by a vote
of at least  two-thirds of the directors then still in office who were directors
at the  beginning of the period;  (iii) the share owners of the Company  approve
any  merger or  consolidation  as a result of which  the DVUI  Common  Stock (as
defined  below) shall be changed,  converted  or exchanged  (other than a merger
with a wholly owned subsidiary of the Company) or any liquidation of the Company
or any sale or other  disposition  of 50% or more of the assets or earning power
of the Company;  or (iv) the share  owners of the Company  approve any merger or
consolidation  to which the  Company is a party as a result of which the persons
who were share owners of the Company  immediately prior to the effective date of
the merger or consolidation shall have beneficial  ownership of less than 50% of
the combined voting power for election of directors of the surviving corporation
following the effective date of such merger or consolidation; provided, however,
that no Change in Control  shall be deemed to have  occurred  if,  prior to such
times as a Change in Control  would  otherwise be deemed to have  occurred,  the
Board of Directors determines otherwise.

     "ISO" means an incentive  stock option within the meaning of Section 422 of
     the Internal Revenue Code of 1986, as amended.

     "DVUI Common Stock" means Dimensional Visions, Inc. Common Stock, par value
     $.001 per share.

     "NSO" means a stock option that does not constitute an ISO.

     "Options" means ISOs and NSOs granted under this Plan.

                                      A-1
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SECTION 3. OPTIONS

     The  Company  may  grant  ISOs  and  NSOs  to  those  persons  meeting  the
eligibility requirements in Section 6.

SECTION 4. ADMINISTRATION

     The Plan shall be administered by the Board of Directors.  No person, other
than members of the Board of  Directors,  shall have any  discretion  concerning
decisions regarding the Plan. The Board shall determine the key employees of the
Company (including officers, whether or not they are directors) to whom, and the
time or times at which,  Options  will be  granted;  the  number of shares to be
subject to each Option;  the  duration of each Option;  the time or times within
which the Option may be  exercised;  the  cancellation  of the Option  (with the
consent of the holder  thereof);  and the other  conditions  of the grant of the
Option,  at grant or while  outstanding,  pursuant to the terms of the Plan. The
provisions  and  conditions  of the Options need not be the same with respect to
each optionee or with respect to each Option.

     The Board may, subject to the provisions of the Plan,  establish such rules
and regulations as it deems necessary or advisable for the proper administration
of the  Plan,  and may make  determinations  and may take such  other  action in
connection  with or in relation to the Plan as it deems  necessary or advisable.
Each determination or other action made or taken pursuant to the Plan, including
interpretation  of the Plan and the specific  conditions  and  provisions of the
Options  granted  hereunder by the Board,  shall be final and conclusive for all
purposes and upon all persons including,  but without  limitation,  the Company,
the Board, officers and the affected employees of the Company, optionees and the
respective successors in interest of any of the foregoing.

SECTION 5. STOCK

     The DVUI Common Stock to be issued,  transferred and/or sold under the Plan
shall be made available  from  authorized and unissued DVUI Common Stock or from
the Company's  treasury shares.  The total number of shares of DVUI Common Stock
that may be issued or  transferred  under the Plan  pursuant to Options  granted
thereunder may not exceed  1,500,000  shares (subject to adjustment as described
below).  Such number of shares shall be subject to adjustment in accordance with
Section 5 and Section 11. DVUI Common Stock subject to any  unexercised  portion
of an Option which expires or is canceled,  surrendered  or  terminated  for any
reason may again be subject to Options granted under the Plan.

SECTION 6. ELIGIBILITY

     Options may be granted to employees and directors of the Company.

SECTION 7. AWARDS OF OPTIONS

     Except as otherwise  specifically  provided in this Plan,  Options  granted
pursuant to the Plan shall be subject to the following terms and conditions:

     (a) Option Price. The option price will be 100% of the fair market value of
the DVUI Common Stock on the date of grant.  The fair market value of a share of
DVUI  Common  Stock  shall be the  average of the high and low market  prices at
which a share of DVUI Common Stock shall have been sold on the date of grant, or
on the next  preceding  trading  day if such  date was not a  trading  date,  as
reported on the NASDAQ Transactions listing.

     (b)  Payment.  The  option  price  shall  be paid  in  full at the  time of
exercise. Payment must be in cash.

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     (c) Exercise May Be Delayed Until Withholding is Satisfied. The Company may
refuse  to  exercise  an  Option  if the  optionee  has  not  made  arrangements
satisfactory  to the  Company to satisfy the tax  withholding  which the Company
determines is necessary to comply with applicable requirements.

     (d) Duration of Options. The duration of Options shall be determined by the
Board,  but in no event shall the  duration of an ISO exceed ten (10) years from
the date of its grant or the  duration of an NSO exceed  fifteen (15) years from
the date of its grant.

     (e) Other Terms and Conditions.  Options may contain such other provisions,
not  inconsistent  with the provisions of the Plan, as the Board shall determine
appropriate from time to time, including vesting provisions;  provided, however,
that,  except in the event of a Change in Control or the  disability or death of
the optionee, no Option shall be exercisable in whole or in part for a period of
twelve (12) months from the date on which the Option is granted. The grant of an
Option to any  employee  shall not affect in any way the right of the Company to
terminate the employment of the holder thereof.

     (f)  ISOs.  The  Board,  with  respect  to each  grant of an  Option  to an
optionee,  shall  determine  whether  such  Option  shall be an ISO,  and,  upon
determining  that an Option shall be an ISO,  shall  designate it as such in the
written instrument  evidencing such Option. If the written instrument evidencing
an Option does not contain a  designation  that it is an ISO, it shall not be an
ISO.

     The aggregate fair market value (determined in each instance on the date on
which an ISO is granted) of the DVUI Common Stock with respect to which ISOs are
first exercisable by any optionee in any calendar year shall not exceed $250,000
for such  optionee.  If any subsidiary of the Company shall adopt a stock option
plan under which options constituting ISOs may be granted, the fair market value
of the stock on which any such incentive stock options are granted and the times
at which such  incentive  stock options will first become  exercisable  shall be
taken  into  account  in  determining  the  maximum  amount of ISOs which may be
granted to the optionee under this Plan in any calendar year.

SECTION 8. NONTRANSFERABILITY OF OPTIONS

     No Option granted pursuant to the Plan shall be transferable otherwise than
by will or by the laws of descent and  distribution.  During the  lifetime of an
optionee,  the Option shall be exercisable only by the optionee personally or by
the optionee's legal representative.

                                      A-3
<PAGE>
SECTION 9. EFFECT OF TERMINATION  OF EMPLOYMENT,  OTHER CHANGES OF EMPLOYMENT OR
EMPLOYER STATUS, DEATH, RETIREMENT OR A CHANGE IN CONTROL
<TABLE>
<CAPTION>
       EVENT                      IMPACT ON VESTING                IMPACT ON EXERCISE PERIOD
       -----                      -----------------                -------------------------
<S>                          <C>                                 <C>
Employment terminates        All options become immediately      Option expiration date provided
upon Disability              vested                              in grant continues to apply

Employment terminates        Option held at least 12 full        Option expiration date provided
upon Retirement              calendar months become              in grant continues to apply
                             immediately vested; options held
                             less than 12 full calendar months
                             are forfeited

Employment terminates        All options become immediately      Right of executor, administrator
upon death                   vested                              of estate (or other transferee
                                                                 permitted by Section 8)
                                                                 terminates on earlier of (1) 12
                                                                 months from the date of death,
                                                                 or (2) the expiration date
                                                                 provided in the Option

Employment terminates        All options become immediately      Option expiration date provided
upon Change in Control       vested                              in grant continues to apply

Termination of employment    Unvested options are forfeited      Expires upon earlier of 6 months
for other reasons (Optionees                                     from termination date or option
should be aware that the                                         expiration date provided in grant
receipt of severance does
not extend their termination
date)

US military leave            Vesting continues during leave      Option expiration date provided
                                                                 in grant continues to apply

US FMLA leave of             Vesting continues during leave      Option expiration date provided
absence                                                          in grant continues to apply
</TABLE>

     In the case of other leaves of absence not specified above,  optionees will
be deemed to have  terminated  employment (so that options  unvested will expire
and the option exercise period will end on the earlier of 6 months from the date
the leave began or the option expiration date provided in the grant), unless the
Board  identifies a valid business  interest in doing otherwise in which case it
may  specify  what  provisions  it deems  appropriate  in its  sole  discretion;
provided that the Board shall have no obligation to consider any such matters.

     Notwithstanding  the  foregoing  provisions,  the  Board  may,  in its sole
discretion, establish different terms and conditions pertaining to the effect of
an optionee's  termination on the expiration or exercisability of Options at the
time of  grant  or (with  the  consent  of the  affected  optionee)  outstanding
Options. However, no Option can have a term of more than fifteen years.

SECTION 10. NO RIGHTS AS A SHARE OWNER

     An optionee or a transferee of an optionee pursuant to Section 8 shall have
no right as a share owner with  respect to any DVUI Common  Stock  covered by an
Option or  receivable  upon the  exercise  of an Option  until the  optionee  or
transferee shall have become the holder of record of such DVUI Common Stock, and
no  adjustments  shall be made for dividends in cash or other  property or other
distributions  or rights in  respect  to such  DVUI  Common  Stock for which the
record date is prior to the date on which the optionee or transferee  shall have
in fact become the holder of record of the share of DVUI Common  Stock  acquired
pursuant to the Option.

                                      A-4
<PAGE>
SECTION 11. ADJUSTMENT IN THE NUMBER OF SHARES AND IN OPTION PRICE

     In the event there is any change in the shares of DVUI Common Stock through
the declaration of stock dividends, or stock splits or through  recapitalization
or merger or  consolidation  or combination of shares or spin-offs or otherwise,
the Board shall make such adjustment,  if any, as it may deem appropriate in the
number of shares of DVUI  Common  Stock  available  for  Options  as well as the
number of shares of DVUI Common Stock subject to any outstanding  Option and the
option price thereof. Any such adjustment may provide for the elimination of any
fractional  shares which might  otherwise  become  subject to any Option without
payment therefor.

SECTION 12. AMENDMENTS, MODIFICATIONS AND TERMINATION OF THE PLAN

     The Board may terminate the Plan at any time.  From time to time, the Board
may  suspend  the Plan,  in whole or in part.  From time to time,  the Board may
amend the Plan, in whole or in part, including the adoption of amendments deemed
necessary  or  desirable  to  qualify  the  Options  under  the laws of  various
countries  (including tax laws) and under rules and  regulations  promulgated by
the Securities and Exchange Commission with respect to employees who are subject
to the  provisions  of Section 16 of the 1934 Act,  or to correct  any defect or
supply an omission or reconcile any  inconsistency  in the Plan or in any Option
granted  thereunder,  or for any other  purpose  or to any effect  permitted  by
applicable laws and regulations, without the approval of the share owners of the
Company.  However,  in no event may  additional  shares of DVUI Common  Stock be
allocated to the Plan or any outstanding  option be repriced or replaced without
share-owner approval. Without limiting the foregoing, the Board of Directors may
make amendments  applicable or inapplicable only to participants who are subject
to Section 16 of the 1934 Act.

     No amendment or termination or modification of the Plan shall in any manner
affect any Option  theretofore  granted  without  the  consent of the  optionee,
except  that the Board may amend or modify the Plan in a manner that does affect
Options  theretofore  granted upon a finding by the Board that such amendment or
modification is in the best interest of holders of outstanding  Options affected
thereby.  Grants of ISOs may be made under this Plan until  November 15, 2009 or
such  earlier  date as this Plan is  terminated,  and grants of NSOs may be made
until all of the 1,500,000  shares of DVUI Common Stock  authorized for issuance
hereunder  (adjusted as provided in Sections 5 and 11) have been issued or until
this Plan is terminated,  whichever first occurs.  The Plan shall terminate when
there  are  no  longer  Options  outstanding  under  the  Plan,  unless  earlier
terminated by the Board.

SECTION 13. GOVERNING LAW

     The Plan and all  determinations  made and actions taken  pursuant  thereto
shall  be  governed  by the  laws of the  State  of  Arizona  and  construed  in
accordance therewith.

                                      A-5

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