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                                                                    EXHIBIT 10.1

                           IMAGEON SOLUTIONS, INC.

                          2000 EQUITY INCENTIVE PLAN

1.       PURPOSES.

         (a)      Imageon Solutions, Inc., a Delaware corporation (the
"Company"), hereby establishes an incentive compensation plan to be known as the
"Imageon Solutions, Inc. 2000 Equity Incentive Plan" (the "Plan") as set forth
herein.

         (b)      The purpose of the Plan is to provide a means by which
selected Employees and Directors of and Consultants to the Company and its
Affiliates may be given an opportunity to benefit from increases in value of the
stock of the Company through the granting of (i) Incentive Stock Options, (ii)
Nonstatutory Stock Options, and (iii) stock bonuses, all as defined below.

         (c)      The Company, by means of the Plan, seeks to retain the
services of persons who are now Employees or Directors of or Consultants to the
Company or its Affiliates, to secure and retain the services of new Employees,
Directors and Consultants, and to provide incentives for such persons to exert
maximum efforts for the success of the Company and its Affiliates.

         (d)      The Company intends that the Awards issued under the Plan
shall, in the discretion of the Board or any Committee to which responsibility
for administration of the Plan has been delegated pursuant to subsection 3(c),
be either (i) Options granted pursuant to Section 6 hereof, including Incentive
Stock Options and Nonstatutory Stock Options or (ii) stock bonuses granted
pursuant to Section 7 hereof. All Options shall be separately designated
Incentive Stock Options or Nonstatutory Stock Options at the time of grant and a
separate certificate or certificates will be issued for shares purchased on
exercise of each type of Option.

2.       DEFINITIONS.

         (a)      "Affiliate" means any parent corporation or subsidiary
corporation, whether now or hereafter existing, as those terms are defined in
Sections 424(e) and (f) respectively, of the Code.

         (b)      "Award" means any right granted under the Plan, including any
Option and any stock bonus.

         (c)      "Award Agreement" means either an Option Agreement or a Stock
Bonus Agreement.

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

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

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         (f)      "Committee" means a committee appointed by the Board in
accordance with subsection 3(c) of the Plan.

         (g)      "Common Stock" means the common stock of the Company.

         (h)      "Company" means Imageon Solutions, Inc., a Delaware
corporation.

         (i)      "Consultant" means any person, including an advisor, (i)
engaged by the Company or an Affiliate to render consulting or advisory services
or (ii) who is a member of the Board of Directors of an Affiliate. However, the
term "Consultant" shall not include either Directors who are not compensated by
the Company for their services as Directors or Directors who are merely paid a
director's fee by the Company for their services as Directors.

         (j)      "Continuous Service" means that the Participant's service with
the Company or an Affiliate, whether as an Employee, Director or Consultant, is
not interrupted or terminated. The Participant's Continuous Service shall not be
deemed to have terminated merely because of a change in the capacity in which
the Participant renders service to the Company or an Affiliate as an Employee,
Consultant or Director or a change in the entity for which the Participant
renders such service, provided that there is no interruption or termination of
the Participant's Continuous Service. For example, a change in status from an
Employee of the Company to a Consultant of an Affiliate or a Director will not
constitute an interruption of Continuous Service. The Board or the chief
executive officer of the Company, in that party's sole discretion, may determine
whether Continuous Service shall be considered interrupted in the case of any
leave of absence approved by that party, including sick leave, military leave or
any other personal leave.

         (k)      "Director" means a member of the Board.

         (1)      "Disability" means (i) before the Effective Date, the
inability of a person, in the opinion of a qualified physician acceptable to the
Company, to perform the major duties of that person's position with the Company
or an Affiliate of the Company because of the sickness or injury of the person
and (ii) after the Effective Date, the permanent and total disability of a
person within the meaning of Section 22(e)(3) of the Code.

         (m)      "Effective Date" means the first date upon which any
registration statement under the Securities Act for a public offering of the
Common Stock of the Company is declared effective by the Securities and Exchange
Commission.

         (n)      "Employee" means any person, including Officers and Directors,
employed by the Company or any Affiliate of the Company. Neither service as a
Director nor payment of a director's fee by the Company shall be sufficient to
constitute "employment" by the Company.

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

         (p)      "Fair Market Value" means, as of any date, the value of the
Common Stock determined as follows:

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                  (i)      If the Common Stock is listed on any established
         stock exchange or a national market system, including without
         limitation the National Market System of the National Association of
         Securities Dealers, Inc. Automated Quotation ("NASDAQ") System, the
         Fair Market Value of a share of Common Stock shall be the closing sales
         price for such stock (or the closing bid, if no sales were reported) as
         quoted on such system or exchange (or the exchange with the greatest
         volume of trading in Common Stock) on the last market trading day prior
         to the day of determination, as reported in the Wall Street Journal or
         such other source as the Board deems reliable;

                  (ii)     If the Common Stock is quoted on the NASDAQ System
         (but not on the National Market System thereof) or is regularly quoted
         by a recognized securities dealer but selling prices are not reported,
         the Fair Market Value of a share of Common Stock shall be the mean
         between the bid and asked prices for the Common Stock on the last
         market trading day prior to the day of determination, as reported in
         the Wall Street Journal or such other source as the Board deems
         reliable;

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

         (q)      "Incentive Stock Option" means an Option intended to qualify
as an incentive stock option within the meaning of Section 422 of the Code and
the regulations promulgated thereunder.

         (r)      "Nonstatutory Stock Option" means an Option not intended to
qualify as an Incentive Stock Option.

         (s)      "Officer" means (i) before the Effective Date, any person
designated by the Company as an officer and (ii) on and after the Effective
Date, a person who is an officer of the Company within the meaning of Section 16
of the Exchange Act and the rules and regulations promulgated thereunder.

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

         (u)      "Option Agreement" means a written agreement between the
Company and an Optionholder evidencing the terms and conditions of an individual
Option grant. Each Option Agreement shall be subject to the terms and conditions
of the Plan.

         (v)      "Optionholder" means an Employee, Director or Consultant who
holds an outstanding Option.

         (w)      "Participant" means a person to whom an Award is granted
pursuant to the Plan or, if applicable, such other person who holds an
outstanding Award.

         (x)      "Plan" means this 2000 Equity Incentive Plan.

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         (y)      "Rule 16b-3" means Rule 16b-3 of the Exchange Act or any
successor to Rule 16b-3, as in effect when discretion is being exercised with
respect to the Plan.

         (z)      "Securities Act" means the Securities Act of 1933, as amended.

         (aa)     "Stock Bonus Agreement" means a written agreement between the
Company and a stock bonus recipient evidencing the terms and conditions of an
individual stock bonus grant. Each Stock Bonus Agreement shall be subject to the
terms and conditions of the Plan.

         (bb)     "Stockholders Agreement" means the Common Stockholders
Agreement dated January 10, 2000 among the Company and certain of its
stockholders.

         (cc)     "Ten Percent Stockholder" means a person who owns (or is
deemed to own pursuant to Section 424(d) of the Code) stock possessing more than
ten percent (10%) of the total combined voting power of all classes of stock of
the Company or of any of its Affiliates.

3.       ADMINISTRATION.

         (a)      The Board shall administer the Plan unless and until the Board
delegates administration to a Committee, as provided in subsection 3(c). Any
interpretation of the Plan by the Board and any decision by the Board under the
Plan shall be final and binding on all persons.

         (b)      The Board shall have the power, subject to, and within the
limitations of, the express provisions of the Plan:

                  (i)      To determine from time to time which of the persons
         eligible under the Plan shall be granted Awards; when and how each
         Award shall be granted; whether an Award will be an Incentive Stock
         Option, a Nonstatutory Stock Option, a stock bonus, or a combination of
         the foregoing; the provisions of each Award granted (which need not be
         identical), including the time or times when a person shall be
         permitted to receive stock pursuant to an Award; and the number of
         shares with respect to which an Award shall be granted to each such
         person.

                  (ii)     To construe and interpret the Plan and Awards granted
         under it, and to establish, amend and revoke rules and regulations for
         its administration. The Board, in the exercise of this power, may
         correct any defect, omission or inconsistency in the Plan or in any
         Award Agreement, in a manner and to the extent it shall deem necessary
         or expedient to make the Plan fully effective.

                  (iii)    To amend the Plan or an Award as provided in Section
         12.

                  (iv)     Generally, to exercise such powers and to perform
         such acts as the Board deems necessary or expedient to promote the best
         interests of the Company that are not in conflict with the provisions
         of the Plan.

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         (c)      The Board may delegate administration of the Plan to a
committee composed of not fewer than two (2) members (the "Committee"). If
administration is delegated to a Committee, the Committee shall have, in
connection with the administration of the Plan, the powers theretofore possessed
by the Board (and, except with respect to subsections 12(a), 12(b), 12(c) and
13(a), references in this Plan to the Board shall thereafter be to the
Committee), subject, however, to such resolutions, not inconsistent with the
provisions of the Plan, as may be adopted from time to time by the Board;
provided, however, that such delegation shall not apply to the powers set forth
in subsections 12(a), 12(b), 12(c) or 13(a) and the Board shall in all events
exercise the powers set forth therein. The Board may abolish the Committee at
any time and revest in the Board the administration of the Plan.

4.       SHARES SUBJECT TO THE PLAN.

         (a)      Subject to the provisions of Section 11 relating to
adjustments upon changes in stock, the stock that may be issued pursuant to
Awards shall not exceed in the aggregate One Million One Hundred Thousand
(1,100,000) shares of Common Stock.

         (b)      The stock subject to the Plan may be unissued shares or
reacquired shares, bought on the market or otherwise.

         (c)      If any Award shall for any reason expire, be repurchased or
otherwise terminate, in whole or in part, the stock under such Award shall
revert to and again become available for issuance under the Plan.

5.       ELIGIBILITY.

         (a)      Incentive Stock Options may be granted only to Employees.
Awards other than Incentive Stock Options may be granted only to Employees,
Directors or Consultants. For purposes of the preceding sentence, "Employees,"
"Directors" and "Consultants" shall include prospective Employees, prospective
Consultants and prospective Directors to whom Awards are granted in connection
with written offers of an employment or other service relationships with the
Company or an Affiliate.

         (b)      A Ten Percent Stockholder shall not be granted an Incentive
Stock Option unless the exercise price of such Option is at least one hundred
ten percent (110%) of the Fair Market Value of the Common Stock at the date of
grant and the Option is not exercisable after the expiration of five (5) years
from the date of grant.

         (c)      Prior to the Effective Date, a Consultant shall not be
eligible for the grant of an Award if, at the time of grant, either the offer or
the sale of the Company's securities to such Consultant is not exempt under Rule
701 of the Securities Act ("Rule 701") because of the nature of the services
that the Consultant is providing to the Company, or because the Consultant is
not a natural person, or as otherwise provided by Rule 701, unless the Company
determines that such grant need not comply with the requirements of Rule 701 and
will satisfy another exemption under the Securities Act as well as comply with
the securities laws of all other relevant jurisdictions. From and after the
Effective Date, a Consultant shall not be eligible for the grant

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of an Award if, at the time of grant, a Form S-8 Registration Statement under
the Securities Act ("Form S-8") is not available to register either the offer or
the sale of the Company's securities to such Consultant because of the nature of
the services that the Consultant is providing to the Company, or because the
Consultant is not a natural person, or as otherwise provided by the rules
governing the use of Form S-8, unless the Company determines both (i) that such
grant (A) shall be registered in another manner under the Securities Act (e.g.,
on a Form S-3 Registration Statement) or (B) does not require registration under
the Securities Act in order to comply with the requirements of the Securities
Act, if applicable, and (ii) that such grant complies with the securities laws
of all other relevant jurisdictions.

6.       OPTION PROVISIONS.

         Each Option shall be in such form and shall contain such terms and
conditions as the Board shall deem appropriate. The provisions of separate
Options need not be identical, but each Option shall include (through
incorporation of provisions hereof by reference in the Option or otherwise) the
substance of each of the following provisions:

         (a)      Term. Subject to the provisions of subsection 5(b) regarding
Ten Percent Stockholders, no Option shall be exercisable after the expiration
of ten (10) years from the date it was granted.

         (b)      Exercise Price of an Incentive Stock Option. Subject to the
provisions of subsection 5(b) regarding Ten Percent Stockholders, the exercise
price of each Incentive Stock Option shall be not less than one hundred percent
(100%) of the Fair Market Value of the Common Stock subject to the Option on the
date the Option is granted. Notwithstanding the foregoing, an Incentive Stock
Option may be granted with an exercise price lower than that set forth in the
preceding sentence if such Option is granted pursuant to an assumption or
substitution for another option in a manner satisfying the provisions of Section
424(a) of the Code.

         (c)      Exercise Price of a Nonstatutory Stock Option. The exercise
price of each Nonstatutory Stock Option granted shall be as determined by the
Board.

         (d)      Consideration. The purchase price of stock acquired pursuant
to an Option shall be paid, to the extent permitted by applicable statutes and
regulations, either (i) in cash or its equivalent at the time the Option is
exercised, or (ii) if the Board, in its discretion, has approved such
consideration prior to the exercise of the Option, (A) by delivery to the
Company of other Common Stock, (B) according to a deferred payment or other
arrangement (which may include, without limiting the generality of the
foregoing, the use of other Common Stock) with the person to whom the Option is
granted or to whom the Option is transferred pursuant to subsection 6(f), (C) by
assignment to the Company of the proceeds of a sale or loan with respect to some
or all of the shares being acquired upon an exercise of the Option complying
with the provisions of Regulation T promulgated by the Board of Governors of the
Federal Reserve System, as amended (a "Cashless Exercise"), or (D) in any other
form of legal consideration that may be acceptable to the Board; provided,
however, that (i) at any time that the Company is incorporated in Delaware,
payment of the Common Stock's "par value," as defined in the

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Delaware General Corporation Law, shall not be made by deferred payment and (ii)
the Board may in any Option Agreement exclude or restrict the use of any one or
more of the foregoing forms of consideration. In the case of any deferred
payment arrangement, interest shall be compounded at least annually and shall be
charged at the minimum rate of interest necessary to avoid imputed interest
under any applicable provisions of the Code.

         (e)      Transferability of an Incentive Stock Option. An Incentive
Stock Option shall not be transferable except by will or by the laws of descent
and distribution and shall be exercisable during the lifetime of the
Optionholder only by the Optionholder. Notwithstanding the foregoing, the
Optionholder may, by delivering written notice to the Company, in a form
satisfactory to the Company, designate a third party who, in the event of the
death of the Optionholder, shall thereafter be entitled to exercise the Option.

         (f)      Transferability of a Nonstatutory Stock Option. A Nonstatutory
Stock Option shall be transferable to the extent provided in the Option
Agreement. If the Option Agreement does not provide for transferability, then
the Nonstatutory Stock Option shall not be transferable except by will or by the
laws of descent and distribution and shall be exercisable during the lifetime of
the Optionholder only by the Optionholder. Notwithstanding the foregoing, the
Optionholder may, by delivering written notice to the Company, in a form
satisfactory to the Company, designate a third party who, in the event of the
death of the Optionholder, shall thereafter be entitled to exercise the Option.

         (g)      Vesting Generally. The total number of shares of Common Stock
subject to an Option may, but need not, vest and therefore become exercisable in
periodic installments that may, but need not, be equal. The Option may be
subject to such other terms and conditions on the time or times when it may be
exercised (which may be based on performance or other criteria) as the Board may
deem appropriate. The vesting provisions of individual Options may vary. The
provisions of this subsection 6(g) are subject to any Option provisions
governing the minimum number of shares of Common Stock as to which an Option may
be exercised.

         (h)      Termination of Continuous Service. In the event an
Optionholder's Continuous Service terminates (other than upon the Optionholder's
death or Disability), the Optionholder may exercise his or her Option (to the
extent that the Optionholder was entitled to exercise such Option as of the date
of termination) but only within such period of time ending on the earlier of (i)
the date three (3) months following the termination of the Optionholder's
Continuous Service (or such longer or shorter period specified in the Option
Agreement, which period shall not be less than thirty (30) days for Options
granted prior to the Effective Date unless such termination is for cause), or
(ii) the expiration of the term of the Option as set forth in the Option
Agreement. If, after termination, the Optionholder does not exercise his or her
Option within the time specified in the Option Agreement, the Option shall
terminate.

         (i)      Extension of Termination Date. An Optionholder's Option
Agreement may also provide that if the Board determines that the exercise of the
Option following the termination of the Optionholder's Continuous Service (other
than upon the Optionholder's death or Disability) would be prohibited at any
time solely because the issuance of shares of Common Stock would violate the
registration requirements under the Securities Act, then the Option shall
terminate on

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the earlier of (i) the expiration of the term of the Option set forth in
subsection 6(a) or (ii) the passage of an aggregate of one hundred twenty (120)
days after the termination of the Optionholder's Continuous Service during which
the exercise of the Option would not be in violation of such registration
requirements.

         (j)      Disability of Optionholder. In the event that an
Optionholder's Continuous Service terminates as a result of the Optionholder's
Disability, the Optionholder may exercise his or her Option (to the extent that
the Optionholder was entitled to exercise such Option as of the date of
termination), but only within such period of time ending on the earlier of (i)
the date twelve (12) months following such termination (or such longer or
shorter period specified in the Option Agreement, which period shall not be less
than six (6) months for Options granted prior to the Effective Date) or (ii) the
expiration of the term of the Option as set forth in the Option Agreement. If,
after termination, the Optionholder does not exercise his or her Option within
the time specified herein, the Option shall terminate.

         (k)      Death of Optionholder. In the event (i) an Optionholder's
Continuous Service terminates as a result of the Optionholder's death or (ii)
the Optionholder dies within the period (if any) specified in the Option
Agreement after the termination of the Optionholder's Continuous Service for a
reason other than death, then the Option may be exercised (to the extent the
Optionholder was entitled to exercise such Option as of the date of death) by
the Optionholder's estate, by a person who acquired the right to exercise the
Option by bequest or inheritance or by a person designated to exercise the
option upon the Optionholder's death, but only within the period ending on the
earlier of (1) the date eighteen (18) months following the date of death (or
such longer or shorter period specified in the Option Agreement, which period
shall not be less than six (6) months for Options granted prior to the Effective
Date) or (2) the expiration of the term of such Option as set forth in the
Option Agreement. If, after death, the Option is not exercised within the time
specified herein, the Option shall terminate.

         (1)      Early Exercise. The Option Agreement may, but need not,
include a provision whereby the Optionholder may elect at any time before the
Optionholder's Continuous Service terminates to exercise the Option as to any
part or all of the shares of Common Stock subject to the Option prior to the
full vesting of the Option. Subject to the "Repurchase Limitation" in subsection
10(g), any unvested shares of Common Stock so purchased may be subject to a
repurchase option in favor of the Company or to any other restriction the Board
determines to be appropriate.

         (m)      Right of Repurchase. Subject to the "Repurchase Limitation" in
subsection 10(g), the Option Agreement may, but need not, include a provision
whereby the Company may elect, prior to the Effective Date, to repurchase all or
any part of the vested shares of Common Stock acquired by the Optionholder
pursuant to the exercise of the Option.

         (n)      Stockholders Agreement. The Option Agreement may, but need
not, include a provision whereby the Company may, prior to the Effective Date,
require the Optionholder to become a party to the Stockholders Agreement,
subject, however, to such limitation on Optionholder's rights thereunder as set
forth in the Option Agreement.

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         (o)      Re-Load Options. Without in any way limiting the authority of
the Board to make or not to make grants of Options hereunder, the Board shall
have the authority (but not an obligation) to include as part of any Option
Agreement a provision entitling the Optionholder to a further Option (a "Re-Load
Option") in the event the Optionholder exercises the Option evidenced by the
Option Agreement, in whole or in part, by surrendering other shares of Common
Stock in accordance with this Plan and the terms and conditions of the Option
Agreement. Any such Re-Load Option (i) shall be for a number of shares equal to
the number of shares surrendered as part or all of the exercise price of such
Option; (ii) shall have an expiration date which is the same as the expiration
date of the Option the exercise of which gave rise to such Re-Load Option; and
(iii) shall have an exercise price which is equal to one hundred percent (100%)
of the Fair Market Value of the Common Stock subject to the Re-Load Option on
the date of exercise of the original Option or, in the case of a Re-Load Option
which is an Incentive Stock Option and which is granted to a Ten Percent
Stockholder, shall have an exercise price which is equal to one hundred ten
percent (110%) of the Fair Market Value of the stock subject to the Re-Load
Option on the date of exercise of the original Option.

         Any such Re-Load Option may be an Incentive Stock Option or a
Nonstatutory Stock Option, as the Board may designate at the time of the grant
of the original Option; provided, however, that the designation of any Re-Load
Option as an Incentive Stock Option shall be subject to the one hundred thousand
dollar ($100,000) annual limitation on exercisability of Incentive Stock Options
described in subsection 10(c) of the Plan and in Section 422(d) of the Code.
There shall be no Re-Load Options on a Re-Load Option. Any such Re-Load Option
shall be subject to the availability of sufficient shares under subsection 4(a)
of the Plan and shall be subject to such other terms and conditions as the Board
may determine.

         (p)      Securities Law Compliance. The issuance of shares of Common
Stock upon exercise of an Option shall be subject to compliance with all
applicable requirements of federal, state, and foreign law with respect to such
securities. If the Board determines that the issuance of shares of Common Stock
upon exercise of an Option would constitute a violation of any applicable
federal, state or foreign securities laws or other law or regulations or the
requirements of any stock exchange or market system upon which the Common Stock
may then be listed then the Company shall be relieved from any liability for
failure to issue and sell stock upon exercise of such Option.

7.       PROVISIONS OF STOCK BONUSES.

         Each Stock Bonus Agreement shall be in such form and shall contain such
terms and conditions as the Board shall deem appropriate. The terms and
conditions of Stock Bonus Agreements may change from time to time, and the terms
and conditions of separate Stock Bonus Agreements need not be identical, but
each Stock Bonus Agreement shall include (through incorporation of provisions
hereof by reference in the agreement or otherwise) the substance of each of the
following provisions:

                  (i)      Consideration. A stock bonus may be awarded in
         consideration for past services actually rendered to the Company or an
         Affiliate for its benefit.

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                  (ii)     Vesting. Subject to the "Repurchase Limitation" in
         subsection 10(g), shares of Common Stock awarded as a stock bonus may,
         but need not, be subject to a share repurchase option in favor of the
         Company in accordance with a vesting schedule to be determined by the
         Board.

                  (iii)    Termination of Participant's Continuous Service.
         Subject to the "Repurchase Limitation" in subsection 10(g) of the Plan,
         in the event a Participant's Continuous Service terminates, the Company
         may reacquire any or all of the shares of Common Stock held by the
         Participant which have not vested as of the date of termination under
         the terms of the Stock Bonus Agreement.

                  (iv)     Transferability. Shares of Common Stock awarded as a
         stock bonus hereunder shall be transferable by the Participant only
         upon such terms and conditions as are set forth in the Stock Bonus
         Agreement.

                  (v)      Stockholders Agreement. The Stock Bonus Agreement
         may, but need not, include a provision whereby the Company may, prior
         to the Effective Date, require the Participant to become a party to the
         Stockholders Agreement, subject, however, to such limitation on
         Participant's rights thereunder as set forth in the Stock Bonus
         Agreement.

8.       COVENANT OF THE COMPANY.

         During the terms of the Awards, the Company shall keep available at all
times the number of shares of stock required to satisfy such Awards.

9.       USE OF PROCEEDS FROM STOCK.

         Proceeds from the sale of stock pursuant to Awards shall constitute
general funds of the Company.

10.      MISCELLANEOUS.

         (a)      Neither an Employee, Director or Consultant nor any person to
whom an Award is transferred shall be deemed to be the holder of, or to have any
of the rights of a holder with respect to, any shares subject to such Award
unless and until such person has satisfied all requirements for exercise of the
Award pursuant to its terms.

         (b)      Nothing in the Plan or any instrument executed or Award
granted pursuant thereto shall confer upon any Employee, Director, Consultant or
other holder of Awards any right to continue in the employ of the Company or any
Affiliate (or to continue acting as a Director or Consultant) or shall affect
the right of the Company or any Affiliate to terminate the employment or
relationship as a Director or Consultant of any Employee, Director, Consultant
or other holder of Awards with or without cause.

         (c)      To the extent that the aggregate Fair Market Value (determined
at the time of grant) of stock with respect to which Incentive Stock Options are
exercisable for the first time

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by any Optionholder during any calendar year under all plans of the Company and
its Affiliates exceeds one hundred thousand dollars ($100,000), the Options or
portions thereof which exceed such limit (according to the order in which they
were granted) shall be treated as Nonstatutory Stock Options.

         (d)      The Company may require any person to whom an Award is
granted, or any person to whom an Award is transferred, as a condition of
exercising or acquiring stock under any Award, (1) to give written assurances
satisfactory to the Company as to such person's knowledge and experience in
financial and business matters or to employ a purchaser representative
reasonably satisfactory to the Company who is knowledgeable and experienced in
financial and business matters, and that he or she is capable of evaluating,
alone or together with the purchaser representative, the merits and risks of
exercising the Award; and (2) to give written assurances satisfactory to the
Company stating that such person is acquiring the stock subject to the Award for
such person's own account and not with any present intention of selling or
otherwise distributing the stock. The foregoing requirements, and any assurances
given pursuant to such requirements, shall be inoperative if the issuance of the
shares upon the exercise or acquisition of stock under the Award has been
registered under a then currently effective registration statement under the
Securities Act, or if, as to any particular requirement, a determination is made
by counsel for the Company that such requirement need not be met in the
circumstances under the then applicable securities laws. The Company may, upon
advice of counsel to the Company, place legends on stock certificates issued
under the Plan as such counsel deems necessary or appropriate in order to comply
with applicable securities laws, including, but not limited to, legends
restricting the transfer of the stock.

         (e)      To the extent provided by the terms of an Award Agreement, the
person to whom an Award is granted may satisfy any federal, state or local tax
withholding obligation relating to the exercise or acquisition of stock under an
Award by any of the following means or by a combination of such means: (1)
tendering a cash payment; (2) authorizing the Company to withhold shares from
the shares of the Common Stock otherwise issuable to the participant as a result
of the exercise or acquisition of stock under the Award; or (3) delivering to
the Company owned and unencumbered shares of the Common Stock.

         (f)      The Board shall have the power to accelerate the time at which
an Award may first be exercised or the time during which an Award or any part
thereof will vest in accordance with the Plan, notwithstanding the provisions in
the Award Agreement stating the time at which it may first be exercised or the
time during which it will vest.

         (g)      The terms of any repurchase option shall be specified in the
Award Agreement and may be either at Fair Market Value at the time of repurchase
or at not less than the original purchase price.

         (h)      In addition to any conditions enumerated in the Plan, the
Board may place such conditions on the exercise of an Award as it may deem
appropriate and not inconsistent with the Plan, which conditions shall be set
forth in the Award Agreement evidencing the grant of the Award.

                                       11
<PAGE>

         (i)      The Company shall not be required to register the Plan, any
Award or any stock issued or issuable pursuant to any such Award under the
Securities Act except as otherwise provided in an Award Agreement.

11.      ADJUSTMENTS UPON CHANGES IN STOCK.

         (a)      If any change is made in the Common Stock subject to the Plan,
or subject to any Award Agreement, without the receipt of consideration by the
Company (through merger, consolidation, reorganization, recapitalization,
reincorporation, stock dividend, dividend in property other than cash, stock
split, liquidating dividend, combination of shares, exchange of shares, change
in corporate structure or other transaction not involving the receipt of
consideration by the Company), the Plan will be appropriately adjusted in the
class(es) and maximum number of securities subject to the Plan pursuant to
subsection 4(a) and the outstanding Awards will be appropriately adjusted in the
class(es) and number of securities and price per share of Common Stock subject
to such outstanding Awards. The Board shall make such adjustments, and its
determination shall be final, binding and conclusive. (The conversion of any
convertible securities of the Company shall not be treated as a transaction
"without receipt of consideration" by the Company.)

         (b)      In the event of a dissolution or liquidation of the Company,
then all outstanding Awards shall terminate immediately prior to such event.

         (c)      In the event of (i) a sale, lease or other disposition of all
or substantially all of the assets of the Company, (ii) a merger or
consolidation in which the Company is not the surviving corporation or (iii) a
reverse merger in which the Company is the surviving corporation but the shares
of Common Stock outstanding immediately preceding the merger are converted by
virtue of the merger into other property, whether in the form of securities,
cash or otherwise, then any surviving corporation or acquiring corporation shall
assume any Awards outstanding under the Plan or shall substitute similar Awards
(including an award to acquire the same consideration paid to the stockholders
in the transaction described in this subsection ll(c), for those outstanding
under the Plan. In the event any surviving corporation or acquiring corporation
refuses to assume such Awards or to substitute similar Awards for those
outstanding under the Plan, then the vesting of outstanding Awards (and, if
applicable, the time during which such Awards may be exercised) shall be
accelerated in full as of the date ten (10) days prior to the date anticipated
by the Board for the consummation of such event, the Company shall promptly
notify each Award holder of such acceleration, and the Awards shall terminate if
not exercised (if applicable) at or prior to such event. The vesting and
exercise of any Award that is permissible solely by reason of this subsection
ll(c) shall be conditioned upon the consummation of the event causing such
acceleration of vesting and exercise rights.

         (d)      After the Effective Date, in the event of an acquisition by
any person, entity or group within the meaning of Section 13(d) or 14(d) of the
Exchange Act, or any comparable successor provisions (excluding any employee
benefit plan, or related trust, sponsored or maintained by the Company or an
Affiliate) of the beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Exchange Act, or comparable successor rule) of securities
of the Company representing at least fifty percent (50%) of the combined voting
power entitled to

                                       12
<PAGE>
vote in the election of Directors, then the vesting of outstanding Awards (and,
if applicable, the time during which such Awards may be exercised) shall be
accelerated in full.

12.      AMENDMENT OF THE PLAN AND AWARDS.

         (a)      The Board at any time, and from time to time, may amend the
Plan. However, except as provided in Section 11 relating to adjustments upon
changes in stock, no amendment shall be effective unless approved by the
stockholders of the Company within twelve (12) months before or after the
adoption of the amendment, where the amendment will:

                  (i)      Increase the number of shares reserved for Awards
         under the Plan;

                  (ii)     Modify the requirements as to eligibility for
         participation in the Plan (to the extent such modification requires
         stockholder approval in order for the Plan to satisfy the requirements
         of Section 422 of the Code); or

                  (iii)    Modify the Plan in any other way if such modification
         requires stockholder approval in order for the Plan to satisfy the
         requirements of Section 422 of the Code or to comply with the
         requirements of Rule 16b-3 or any NASDAQ or securities exchange listing
         requirements.

         (b)      The Board may in its sole discretion submit any other
amendment to the Plan for stockholder approval.

         (c)      It is expressly contemplated that the Board may amend the Plan
in any respect the Board deems necessary or advisable to provide eligible
Employees with the maximum benefits provided or to be provided under the
provisions of the Code and the regulations promulgated thereunder relating to
Incentive Stock Options or to bring the Plan or Incentive Stock Options granted
under it into compliance therewith.

         (d)      Rights and obligations respecting any Award granted before
amendment of the Plan shall not be impaired by any amendment of the Plan unless
(i) the Company requests the consent of the person to whom the Award was granted
and (ii) such person consents in writing.

         (e)      The Board at any time, and from time to time, may amend the
terms respecting any Award; provided, however, that the rights and obligations
respecting any Award shall not be impaired by any such amendment unless (i) the
Company requests the consent of the person to whom the Award was granted and
(ii) such person consents in writing.

13.      TERMINATION OR SUSPENSION OF THE PLAN.

         (a)      The Board may suspend or terminate the Plan at any time.
Unless sooner terminated, the Plan shall terminate on the day before the tenth
(10th) anniversary of the date the Plan is adopted by the Board or approved by
the stockholders of the Company, whichever is earlier. No Awards may be granted
under the Plan while the Plan is suspended or after it is terminated.

                                       13

<PAGE>

         (b)      Rights and obligations under any Award granted while the Plan
is in effect shall not be altered or impaired by suspension or termination of
the Plan, except with the consent of the person to whom the Award was granted.

14.      EFFECTIVE DATE OF PLAN.

         The Plan shall become effective upon adoption by the Board, but no
Award granted under the Plan shall be exercised unless and until the Plan has
been approved by the stockholders of the Company, which approval shall be within
twelve (12) months before or after the date the Plan is adopted by the Board.

                                       14<PAGE>

                                                                    EXHIBIT 10.2

                                  EMAGEON, INC.
                          2000 EQUITY COMPENSATION PLAN

                                   SECTION 1.
                                     PURPOSE

         The purpose of this Plan is to promote the interests of the Company by
providing the opportunity to purchase Shares or to receive compensation which is
based upon appreciation in the value of Shares to Employees and Key Persons in
order to attract and retain Employees and Key Persons by providing an incentive
to work to increase the value of Shares and a stake in the future of the Company
which corresponds to the stake of each of the Company's shareholders. The Plan
provides for the grant of Incentive Stock Options, Non-Qualified Stock Options,
Restricted Stock Awards and Stock Appreciation Rights to aid the Company in
obtaining these goals.

                                   SECTION 2.
                                   DEFINITIONS

         Each term set forth in this Section shall have the meaning set forth
opposite such term for purposes of this Plan and, for purposes of such
definitions, the singular shall include the plural and the plural shall include
the singular, and reference to one gender shall include the other gender.

         2.1      BOARD means the Board of Directors of the Company.

         2.2      CAUSE shall mean an act or acts by an employee involving (a)
the use for profit or disclosure to unauthorized persons of confidential
information or trade secrets of the Company, (b) the breach of any contract with
the Company, (c) the violation of any fiduciary obligation to the Company, (d)
the unlawful trading in the securities of the Company or of another corporation
based on information gained as a result of the performance of services for the
Company, (e) a felony conviction or the failure to contest prosecution of a
felony, or (f) willful misconduct, dishonesty, embezzlement, fraud, deceit or
civil rights violations, or other unlawful acts.

         2.3      CHANGE OF CONTROL means either of the following:

                  (a)      any transaction or series of transactions pursuant to
which the Company sells, transfers, leases, exchanges or disposes of
substantially all (i.e., at least eighty-five percent (85%)) of its assets for
cash or property, or for a combination of cash and property, or for other
consideration; or

                  (b)      any transaction pursuant to which persons who are not
current shareholders of the Company acquire by merger, consolidation,
reorganization, division or other business combination or transaction, or by a
purchase of an interest in the Company, an interest in the Company so that after
such transaction, the shareholders of the Company immediately prior to such
transaction no longer have a controlling (i.e., 50% or more) voting interest in
the Company.

However, notwithstanding the foregoing, in no event shall an initial public
offering of the Company's common stock constitute a Change of Control.

         2.4      CODE means the Internal Revenue Code of 1986, as amended.

         2.5      COMMITTEE means any committee appointed by the Board to
administer the Plan, as specified in Section 5 hereof. Any such committee shall
be comprised entirely of Directors.

         2.6      COMMON STOCK means the common stock of the Company.

         2.7      COMPANY means Emageon, Inc., a Delaware corporation, and any
successor to such organization.

<PAGE>

         2.8      CONSTRUCTIVE DISCHARGE means a termination of employment with
the Company by an Employee due to any of the following events IF the termination
occurs within thirty (30) days of such event:

                  (a)      Forced Relocation or Transfer. The Employee may
continue employment with the Company (or a successor employer), but such
employment is contingent on the Employee's being transferred to a site of
employment which is located further than 50 miles from the Employee's current
site of employment. For this purpose, an Employee's site of employment shall be
the site of employment to which they are assigned as their home base, from which
their work is assigned, or to which they report, and shall be determined by the
Committee in its sole discretion on the basis of the facts and circumstances.

                  (b)      Decrease in Salary or Wages. The Employee may
continue employment with the Company (or a successor employer), but such
employment is contingent upon the Employee's acceptance of a salary or wage rate
which is less than the Employee's prior salary or wage rate.

                  (c)      Significant and Substantial Reduction in Benefits.
The Employee may continue employment with the Company (or a successor employer),
but such employment is contingent upon the Employee's acceptance of a reduction
in the pension, welfare or fringe benefits provided which is both significant
and substantial when expressed as a dollar amount or when expressed as a
percentage of the Employee's cash compensation. The determination of whether a
reduction in pension, welfare or fringe benefits is significant and substantial
shall be made on the basis of all pertinent facts and circumstances, including
the entire benefit (pension, welfare and fringe) package provided to the
Employee, and any salary or wages paid to the Employee. However, notwithstanding
the preceding, any modification or elimination of benefits which results solely
from the provision of new benefits to an Employee by a successor employer as a
result of a change of the Employee's employment from employment with the Company
to employment with such successor shall not be deemed a Significant and
Substantial Reduction in Benefits where such new benefits are identical to the
benefits provided to similarly situated Employees of the successor.

         2.9      DIRECTOR means a member of the Board.

         2.10     EMPLOYEE means an employee of the Company, a Subsidiary or a
Parent.

         2.11     EXCHANGE ACT means the Securities Exchange Act of 1934, as
amended.

         2.12     EXERCISE PRICE means the price which shall be paid to purchase
one (1) Share upon the exercise of an Option granted under this Plan.

         2.13     FAIR MARKET VALUE of each Share on any date means the price
determined below as of the close of business on the last business day
immediately preceding the date of valuation:

                  (a)      If the Common Stock is listed on any established
stock exchange or a national market system, including without limitation the
National Market of the National Association of Securities Dealers, Inc.
Automated Quotation ("NASDAQ") System, its Fair Market Value per share shall be
the closing sale price for the Common Stock (or the mean of the closing bid and
asked prices, if no sales were reported), as quoted on such exchange or system
on the date of such determination, as reported in The Wall Street Journal or
such other source as the Board deems reliable; or

                  (b)      If the Common Stock is not listed on any established
stock exchange or a national market system, its Fair Market Value per share
shall be the average of the closing dealer "bid" and "ask" prices of a share of
the Common Stock as reflected on the NASDAQ interdealer quotation system of the
National Association of Securities Dealers, Inc. on the date of such
determination; or

                  (c)      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.

         2.14     INSIDER means an individual who is, on the relevant date, an
officer, director or ten percent (10%) beneficial owner of any class of the
Company's equity securities that is registered pursuant to Section 12 of the
Exchange Act, all as defined under Section 16 of the Exchange Act.

                                  Page 2 of 16
<PAGE>

         2.15     ISO means an option granted under this Plan to purchase Shares
which is intended by the Company to satisfy the requirements of Code Section 422
as an incentive stock option.

         2.16     KEY PERSON means (i) a member of the Board who is not an
Employee, (ii) a consultant, distributor or other person who has rendered or
committed to render valuable services to the Company, a Subsidiary or a Parent,
(iii) a person who has incurred, or is willing to incur, financial risk in the
form of guaranteeing or acting as co-obligor with respect to debts or other
obligations of the Company, or (iv) a person who has extended credit to the
Company. Key Persons are not limited to individuals and, subject to the
preceding definition, may include corporations, partnerships, associations and
other entities.

         2.17     NON-ISO means an option granted under this Plan to purchase
Shares which is not intended by the Company to satisfy the requirements of Code
Section 422.

         2.18     OPTION means an ISO or a Non-ISO.

         2.19     OUTSIDE DIRECTOR means a Director who is not an Employee and
who qualifies as (1) a "non-employee director" under Rule 16b-3(b)(3) under the
1934 Act, as amended from time to time, and (2) an "outside director" under Code
Section 162(m) and the regulations promulgated thereunder.

         2.20     PARENT means any corporation which is a parent of the Company
(within the meaning of Code Section 424(e)).

         2.21     PARTICIPANT means an individual who receives a Stock Incentive
hereunder.

         2.22     PERFORMANCE-BASED EXCEPTION means the performance-based
exception from the tax deductibility limitations of Code Section 162(m).

         2.23     PLAN means the Emageon, Inc. 2000 Equity Compensation Plan, as
may be amended from time to time.

         2.24     RESTRICTED STOCK AWARD means an award of Common Stock granted
to a Participant under this Plan whereby the Participant has immediate rights of
ownership in the shares of Common Stock underlying the award, but such shares
are subject to restrictions in accordance with the terms and provisions of this
Plan and the Stock Incentive Agreement pertaining to the award and may be
subject to forfeiture by the individual until the earlier of (a) the time such
restrictions lapse or are satisfied, or (b) the time such shares are forfeited,
pursuant to the terms and provisions of the Stock Incentive Agreement pertaining
to the award.

         2.25     SHARE means a share of the Common Stock of the Company.

         2.26     STOCK APPRECIATION RIGHT means a right granted to a
Participant pursuant to the terms and provisions of this Plan whereby the
individual, without payment to the Company (except for any applicable
withholding or other taxes), receives cash, shares of Common Stock, a
combination thereof, or such other consideration as the Board may determine, in
an amount equal to the excess of the Fair Market Value per share on the date on
which the Stock Appreciation Right is exercised over the exercise price noted in
the Stock Appreciation Right.

         2.27     STOCK INCENTIVE means an ISO, a Non-ISO, a Restricted Stock
Award or a Stock Appreciation Right.

         2.28     STOCK INCENTIVE AGREEMENT means an agreement between the
Company and a Participant evidencing an award of a Stock Incentive.

         2.29     SUBSIDIARY means any corporation which is a subsidiary of the
Company (within the meaning of Code Section 424(f)).

                                  Page 3 of 16
<PAGE>

         2.30     SURRENDERED SHARES means the Shares described in Section 8.2
which (in lieu of being purchased) are surrendered for cash or Shares, or for a
combination of cash and Shares, in accordance with Section 8.

         2.31     TEN PERCENT SHAREHOLDER means a person who owns (after taking
into account the attribution rules of Code Section 424(d)) more than ten percent
(10%) of the total combined voting power of all classes of shares of either the
Company, a Subsidiary or a Parent.

         2.32     VESTING TERMINATION shall mean a termination of the employment
of an employee where such termination is done by the Company without Cause or
where such termination is a Constructive Discharge.

                                   SECTION 3.
                       SHARES SUBJECT TO STOCK INCENTIVES

         The total number of Shares that may be issued pursuant to Stock
Incentives under this Plan shall not exceed 5,925,000 as adjusted pursuant to
Section 11. Such Shares shall be reserved, to the extent that the Company deems
appropriate, from authorized but unissued Shares, and from Shares which have
been reacquired by the Company. Furthermore, any Shares subject to a Stock
Incentive which remain after the cancellation, expiration or exchange of such
Stock Incentive thereafter shall again become available for use under this Plan,
but any Surrendered Shares which remain after the surrender of an ISO or a
Non-ISO under Section 8 shall not again become available for use under this
Plan. Notwithstanding anything herein to the contrary, no Participant may be
granted Options or Stock Appreciation Rights covering an aggregate number of
Shares in excess of 2,250,000 in any calendar year.

                                   SECTION 4.
                                 EFFECTIVE DATE

         The effective date of this Plan, as documented hereby, shall be the
date it is adopted by the Board, as noted in resolutions effectuating such
adoption, provided the shareholders of the Company approve this Plan within
twelve (12) months after such effective date. If such effective date comes
before such shareholder approval, any Stock Incentives granted under this Plan
before the date of such approval automatically shall be granted subject to such
approval.

                                   SECTION 5.
                                 ADMINISTRATION

         5.1      GENERAL ADMINISTRATION. This Plan shall be administered by the
Board. The Board, acting in its absolute discretion, shall exercise such powers
and take such action as expressly called for under this Plan. The Board shall
have the power to interpret this Plan and, subject to the terms and provisions
of this Plan, to take such other action in the administration and operation of
the Plan as it deems equitable under the circumstances. The Board's actions
shall be binding on the Company, on each affected Employee or Key Person, and on
each other person directly or indirectly affected by such actions.

         5.2      AUTHORITY OF THE BOARD. Except as limited by law or by the
Articles of Incorporation or Bylaws of the Company, and subject to the
provisions herein, the Board shall have full power to select Employees and Key
Persons who shall participate in the Plan, to determine the sizes and types of
Stock Incentives in a manner consistent with the Plan, to determine the terms
and conditions of Stock Incentives in a manner consistent with the Plan, to
construe and interpret the Plan and any agreement or instrument entered into
under the Plan, to establish, amend or waive rules and regulations for the
Plan's administration, and to amend the terms and conditions of any outstanding
Stock Incentives as allowed under the Plan and such Stock Incentives. Further,
the Board may make all other determinations which may be necessary or advisable
for the administration of the Plan.

         5.3      DELEGATION OF AUTHORITY. The Board may delegate its authority
under the Plan, in whole or in part, to a Committee appointed by the Board
consisting of not less than two (2) directors. The members of the Committee
shall be appointed from time to time by, and shall serve at the discretion of,
the Board. The Committee (if appointed) shall act according to the policies and
procedures set forth in the Plan and to those

                                  Page 4 of 16
<PAGE>

policies and procedures established by the Board, and the Committee shall have
such powers and responsibilities as are set forth by the Board. Reference to the
Board in this Plan shall specifically include reference to the Committee where
the Board has delegated its authority to the Committee, and any action by the
Committee pursuant to a delegation of authority by the Board shall be deemed an
action by the Board under the Plan. Notwithstanding the above, the Board may
assume the powers and responsibilities granted to the Committee at any time, in
whole or in part. With respect to Committee appointments and composition, only a
Committee (or a sub-committee thereof) comprised solely of two (2) or more
Outside Directors may grant Stock Incentives which will meet the
Performance-Based Exception, and only a Committee comprised solely of Outside
Directors may grant Stock Incentives to Insiders that will be exempt from
Section 16(b) of the Exchange Act.

         5.4      DECISIONS BINDING. All determinations and decisions made by
the Board (or its delegate) pursuant to the provisions of this Plan and all
related orders and resolutions of the Board shall be final, conclusive and
binding on all persons, including the Company, its stockholders, Directors,
Employees, Key Persons, Participants, and their estates and beneficiaries

         5.5      INDEMNIFICATION FOR DECISIONS. No member of the Board of the
Committee (or a sub-committee thereof) shall be liable for any action taken or
determination made hereunder in good faith. Service on the Committee (or a
sub-committee thereof) shall constitute service as a director of the Company so
that the members of the Committee (or a sub-committee thereof) shall be entitled
to indemnification and reimbursement as directors of the Company pursuant to its
bylaws and applicable law. In addition, the members of the Board, Committee (or
a sub-committee thereof) shall be indemnified by the Company against (a) the
reasonable expenses, including attorneys' fees actually and necessarily incurred
in connection with the defense of any action, suit or proceeding, to which they
or any of them may be a party by reason of any action taken or failure to act
under or in connection with the Plan, any Stock Incentive granted hereunder, and
(b) against all amounts paid by them in settlement thereof (provided such
settlement is approved by independent legal counsel selected by the Company) or
paid by them in satisfaction of a judgment in any such action, suit or
proceeding, except in relation to matters as to which it shall be adjudged in
such action, suit or proceeding that such individual is liable for gross
negligence or misconduct in the performance of his duties, provided that within
60 days after institution of any such action, suit or proceeding a Committee
member or delegatee shall in writing offer the Company the opportunity, at its
own expense, to handle and defend the same.

                                   SECTION 6.
                                   ELIGIBILITY

         Employees and Key Persons selected by the Board shall be eligible for
the grant of Stock Incentives under this Plan, but no Employee or Key Person
shall have the right to be granted a Stock Incentive under this Plan merely as a
result of his or her status as an Employee or Key Person. Only Employees shall
be eligible to receive a grant of ISO's.

                                    SECTION 7
                            TERMS OF STOCK INCENTIVES

         7.1      TERMS AND CONDITIONS OF ALL STOCK INCENTIVES.

                  (a)      Grants of Stock Incentives. The Board, in its
absolute discretion, shall grant Stock Incentives under this Plan from time to
time and shall have the right to grant new Stock Incentives in exchange for
outstanding Stock Incentives. Stock Incentives shall be granted to Employees or
Key Persons selected by the Board, and the Board shall be under no obligation
whatsoever to grant Stock Incentives to all Employees or Key Persons, or to
grant all Stock Incentives subject to the same terms and conditions.

                  (b)      Shares Subject to Stock Incentives. The number of
Shares as to which a Stock Incentive shall be granted shall be determined by the
Board in its sole discretion, subject to the provisions of Section 3 as to the
total number of shares available for grants under the Plan.

                  (c)      Stock Incentive Agreements. Each Stock Incentive
shall be evidenced by a Stock Incentive Agreement executed by the Company and
the Participant, which shall be in such form and contain

                                  Page 5 of 16
<PAGE>

such terms and conditions as the Board in its discretion may, subject to the
provisions of the Plan, from time to time determine.

                  (d)      Date of Grant. The date a Stock Incentive is granted
shall be the date on which the Board (1) has approved the terms and conditions
of the Stock Incentive Agreement, (2) has determined the recipient of the Stock
Incentive and the number of Shares covered by the Stock Incentive and (3) has
taken all such other action necessary to complete the grant of the Stock
Incentive.

         7.2      TERMS AND CONDITIONS OF OPTIONS.

                  (a)      Necessity of Stock Incentive Agreements. Each grant
of an Option shall be evidenced by a Stock Incentive Agreement which shall
specify whether the Option is an ISO or Non-ISO, and incorporate such other
terms and conditions as the Board, acting in its absolute discretion, deems
consistent with the terms of this Plan, including (without limitation) a
restriction on the number of Shares subject to the Option which first become
exercisable or subject to surrender during any calendar year. The Board and/or
the Company shall have complete discretion to modify the terms and provisions of
an Option in accordance with Section 13 of this Plan even though such
modification may change the Option from an ISO to Non-ISO.

                  (b)      Determining Optionees. In determining Employee(s) or
Key Person(s) to whom an Option shall be granted and the number of Shares to be
covered by such Option, the Board may take into account the recommendations of
the Chief Executive Officer of the Company and its other officers, the duties of
the Employee or Key Person, the present and potential contributions of the
Employee or Key Person to the success of the Company, the anticipated number of
years of service remaining before the attainment by the Employee of retirement
age, and other factors deemed relevant by the Board, in its sole discretion, in
connection with accomplishing the purpose of this Plan. An Employee or Key
Person who has been granted an Option to purchase Shares, whether under this
Plan or otherwise, may be granted one or more additional Options. If the Board
grants an ISO and a Non-ISO to an Employee on the same date, the right of the
Employee to exercise or surrender one such Option shall not be conditioned on
his or her failure to exercise or surrender the other such Option.

                  (c)      Exercise Price. Subject to adjustment in accordance
with Section 11 and the other provisions of this Section, the Exercise Price
shall be as set forth in the applicable Stock Incentive Agreement. With respect
to each grant of an ISO to a Participant who is not a Ten Percent Shareholder,
the Exercise Price shall not be less than the Fair Market Value on the date the
ISO is granted. With respect to each grant of an ISO to a Participant who is a
Ten Percent Shareholder, the Exercise Price shall not be less than one hundred
ten percent (110%) of the Fair Market Value on the date the ISO is granted. If a
Stock Incentive is a Non-ISO, the Exercise Price for each Share shall be no less
than the minimum price required by applicable state law, or by the Company's
governing instrument, whichever price is greater. Any Stock Incentive intended
to meet the Performance-Based Exception must be granted with an Exercise Price
equivalent to or greater than the Fair Market Value of the Shares subject
thereto.

                  (d)      Option Term. Each Option granted under this Plan
shall be exercisable in whole or in part at such time or times as set forth in
the related Stock Incentive Agreement, but no Stock Incentive Agreement shall:

                           (i)      make an Option exercisable before the date
such Option is granted; or

                           (ii)     make an Option exercisable after the earlier
of:

                                    (A)      the date such Option is exercised
in full, or

                                    (B)      the date which is the tenth (10th)
anniversary of the date such Option is granted, if such Option is a Non-ISO or
an ISO granted to a non-Ten Percent Shareholder, or the date which is the fifth
(5th) anniversary of the date such Option is granted, if such Option is an ISO
granted to a Ten Percent Shareholder. A Stock Incentive Agreement may provide
for the exercise of an Option after the employment of an Employee has terminated
for any reason whatsoever, including death or disability. The Employee's rights,
if any, upon termination of employment will be set forth in the applicable Stock
Incentive Agreement.

                                  Page 6 of 16
<PAGE>

                  (e)      Payment. Options shall be exercised by the delivery
of a written notice of exercise to the Company, setting forth the number of
Shares with respect to which the Option is to be exercised accompanied by full
payment for the Shares. Payment for shares of Stock purchased pursuant to
exercise of an Option shall be made in cash or, unless the Stock Incentive
Agreement provides otherwise, by delivery to the Company of a number of Shares
which have been owned and completely paid for by the holder for at least six (6)
months prior to the date of exercise (i.e., "mature shares" for accounting
purposes) having an aggregate Fair Market Value equal to the amount to be
tendered, or a combination thereof. In addition, unless the Stock Incentive
Agreement provides otherwise, the Option may be exercised through a brokerage
transaction following registration of the Company's equity securities under
Section 12 of the Securities Exchange Act of 1934 as permitted under the
provisions of Regulation T applicable to cashless exercises promulgated by the
Federal Reserve Board. However, notwithstanding the foregoing, with respect to
any Option recipient who is an Insider, a tender of shares or a cashless
exercise must (1) have met the requirements of an exemption under Rule 16b-3
promulgated under the Exchange Act, or (2) be a subsequent transaction the terms
of which were provided for in a transaction initially meeting the requirements
of an exemption under Rule 16b-3 promulgated under the Exchange Act. Unless the
Stock Incentive Agreement provides otherwise, the foregoing exercise payment
methods shall be subsequent transactions approved by the original grant of an
Option. Except as provided in subparagraph (f) below, payment shall be made at
the time that the Option or any part thereof is exercised, and no Shares shall
be issued or delivered upon exercise of an Option until full payment has been
made by the Participant. The holder of an Option, as such, shall have none of
the rights of a stockholder. Notwithstanding the above, and in the sole
discretion of the Board, an Option may be exercised as to a portion or all (as
determined by the Board) of the number of Shares specified in the Stock
Incentive Agreement by delivery to the Company of a promissory note, such
promissory note to be executed by the Participant and which shall include, with
such other terms and conditions as the Board shall determine, provisions in a
form approved by the Board under which: (i) the balance of the aggregate
purchase price shall be payable in equal installments over such period and shall
bear interest at such rate (which shall not be less than the prime bank loan
rate as determined by the Board) as the Board shall approve, and (ii) the
Participant shall be personally liable for payment of the unpaid principal
balance and all accrued but unpaid interest. Other methods of payment may also
be used if approved by the Board in its sole and absolute discretion and
provided for under the Stock Incentive Agreement.

                  (f)      Conditions to Exercise of an Option. Each Option
granted under the Plan shall vest and shall be exercisable at such time or
times, or upon the occurrence of such event or events, and in such amounts, as
the Board shall specify in the Stock Incentive Agreement; provided, however,
that subsequent to the grant of an Option, the Board, at any time before
complete termination of such Option, may accelerate the time or times at which
such Option may vest or be exercised in whole or in part. The Board may impose
such restrictions on any Shares acquired pursuant to the exercise of an Option
as it may deem advisable, including, without limitation, vesting or
performance-based restrictions, restrictions under applicable federal securities
laws, under the requirements of any stock exchange or market upon which such
Shares are then listed and/or traded, and under any blue sky or state securities
laws applicable to such Shares.

                  (g)      Transferability of Options. An Option shall not be
transferable or assignable except by will or by the laws of descent and
distribution and shall be exercisable, during the Participant's lifetime, only
by the Participant, or in the event of the disability of the Participant;
provided, however, that in the event the Participant is incapacitated and unable
to exercise his or her Option, such Option may be exercised by such
Participant's legal guardian, legal representative, or other representative whom
the Board deems appropriate based on applicable facts and circumstances. The
determination of incapacity of a Participant and the determination of the
appropriate representative of the Participant who shall be able to exercise the
Option if the Participant is incapacitated shall be determined by the Board in
its sole and absolute discretion. Notwithstanding the foregoing, except as
otherwise provided in the Stock Incentive Agreement, a Non-ISO may also be
transferred as a bona fide gift (i) to his spouse or lineal descendant or lineal
ascendant, (ii) to a trust for the benefit of one or more individuals described
in clause (i), or (iii) to a partnership of which the only partners are one or
more individuals described in clause (i), in which case the transferee shall be
subject to all provisions of the Plan, the Stock Incentive Agreement and other
agreements between the Company and the Participant in connection with the
exercise of the Option and purchase of Shares. In the event of such a gift, the
Optionee shall promptly notify the Board of such transfer and deliver to the
Board such written documentation as the Board may in its discretion request,
including, without limitation, the written acknowledgment of the donee that the
donee is subject to the provisions of the Plan, the Stock Incentive Agreement
and other agreements between the Company and the Participant.

                                  Page 7 of 16
<PAGE>

                  (h)      Special Provisions for Certain Substitute Options.
Notwithstanding anything to the contrary in this Section, any Option in
substitution for a stock option previously issued by another entity, which
substitution occurs in connection with a transaction to which Code Section
424(a) is applicable, may provide for an exercise price computed in accordance
with Code Section 424(a) and the regulations thereunder and may contain such
other terms and conditions as the Board may prescribe to cause such substitute
Option to contain as nearly as possible the same terms and conditions (including
the applicable vesting and termination provisions) as those contained in the
previously issued stock option being replaced thereby.

                  (i)      ISO Tax Treatment Requirements. With respect to any
Option which purports to be an ISO, to the extent that the aggregate Fair Market
Value (determined as of the date of grant of such Option) of stock with respect
to which such Option is exercisable for the first time by any individual during
any calendar year exceeds one hundred thousand dollars ($100,000.00), such
Option shall not be treated as an ISO in accordance with Code Section 422(d).
The rule of the preceding sentence is applied in the order in which Options are
granted. Also, with respect to any Option which purports to be an ISO, such
Option shall not be treated as an ISO if the Participant disposes of shares
acquired thereunder within two (2) years from the date of the granting of the
Option or within one (1) year of the exercise of the Option, or if the
Participant has not meet the requirements of Code Section 422(a)(2).

         7.3      TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS. A Stock
Appreciation Right may be granted in connection with all or any portion of a
previously or contemporaneously granted Option or not in connection with an
Option. A Stock Appreciation Right shall entitle the Participant to receive upon
exercise or payment the excess of the Fair Market Value of a specified number of
Shares at the time of exercise, over a specified price which shall be not less
than the Exercise Price for that number of Shares in the case of a Stock
Appreciation Right granted in connection with a previously or contemporaneously
granted Option, or in the case of any other Stock Appreciation Right not less
than one hundred percent (100%) of the Fair Market Value of that number of
Shares at the time the Stock Appreciation Right was granted. The exercise of a
Stock Appreciation Right shall result in a pro rata surrender of the related
Option to the extent the Stock Appreciation Right has been exercised.

                  (a)      Payment. Upon exercise or payment of a Stock
Appreciation Right, the Company shall pay to the Participant the appreciation in
cash or Shares (at the aggregate Fair Market Value on the date of payment or
exercise) as provided in the Stock Incentive Agreement or, in the absence of
such provision, as the Board may determine.

                  (b)      Conditions to Exercise. Each Stock Appreciation Right
granted under the Plan shall be exercisable at such time or times, or upon the
occurrence of such event or events, and in such amounts, as the Board shall
specify in the Stock Incentive Agreement; provided, however, that subsequent to
the grant of a Stock Appreciation Right, the Board, at any time before complete
termination of such Stock Appreciation Right, may accelerate the time or times
at which such Stock Appreciation Right may be exercised in whole or in part.

                  (c)      Transferability of Stock Appreciation Rights. Except
as otherwise provided in a Participant's Stock Incentive Agreement, no Stock
Appreciation Right granted under the Plan may be sold, transferred, pledged,
assigned or otherwise alienated or hypothecated, other than by will or by the
laws of descent and distribution. Further, except as otherwise provided in a
Participant's Stock Incentive Agreement, all Stock Appreciation Rights granted
to a Participant under the Plan shall be exercisable, during the Participant's
lifetime, only by the Participant; provided, however, that in the event the
Participant is incapacitated and unable to exercise his or her Stock
Appreciation Right, such Stock Appreciation Right may be exercised by such
Participant's legal guardian, legal representative, or other representative whom
the Board deems appropriate based on applicable facts and circumstances. The
determination of incapacity of a Participant and the determination of the
appropriate representative of the Participant shall be determined by the Board
in its sole and absolute discretion. Notwithstanding the foregoing, except as
otherwise provided in the Stock Incentive Agreement, (A) a Stock Appreciation
Right which is granted in connection with the grant of a Non-ISO may be
transferred, but only with the Non-ISO, and (B) a Stock Appreciation Right which
is not granted in connection with the grant of a Non-ISO, may be transferred as
a bona fide gift (i) to his spouse or lineal descendant or lineal ascendant,
(ii) to a trust for the benefit of one or more individuals described in clause
(i), or (iii) to a partnership of which the only partners are one or more
individuals described in clause (i), in which case the transferee shall be
subject to all provisions of the Plan, the Stock Incentive Agreement and other
agreements between the Company and the Participant in connection with the
exercise of the Stock Appreciation Right. In the event of

                                  Page 8 of 16
<PAGE>

such a gift, the Optionee shall promptly notify the Board of such transfer and
deliver to the Board such written documentation as the Board may in its
discretion request, including, without limitation, the written acknowledgment of
the donee that the donee is subject to the provisions of the Plan, the Stock
Incentive Agreement and other agreements between the Company and the Participant
in connection with the exercise of the Stock Appreciation Right.

                  (d)      Special Provisions for Tandem SAR's. A Stock
Appreciation Right granted in connection with an Option may only be exercised to
the extent that the related Option has not been exercised. A Stock Appreciation
Right granted in connection with an ISO (1) will expire no later than the
expiration of the underlying ISO, (2) may be for no more than the difference
between the exercise price of the underlying ISO and the market price of the
stock subject to the underlying ISO at the time the Stock Appreciation Right is
exercised, (3) may be transferable only when, and under the same conditions as,
the underlying ISO is transferable, and (4) may be exercised only (i) when the
underlying ISO could be exercised and (ii) when the Fair Market Value of the
stock subject to the ISO exceeds the exercise price of the ISO.

         7.4      TERMS AND CONDITIONS OF RESTRICTED STOCK AWARDS. Shares
awarded pursuant to Restricted Stock Awards shall be subject to such
restrictions as determined by the Board for periods determined by the Board.
Unless the applicable Stock Incentive Agreement provides otherwise, holders of
Restricted Stock Awards shall be entitled to vote and receive dividends during
the periods of restriction to the same extent as holders of unrestricted Common
Stock. The Board shall have the power to permit, in its discretion, an
acceleration of the expiration of the applicable restriction period with respect
to any part or all of the Shares awarded to a Participant. The Board may require
a cash payment from the Participant in an amount no greater than the aggregate
Fair Market Value of the Shares awarded determined at the date of grant in
exchange for the grant of a Restricted Stock Award or may grant a Restricted
Stock Award without the requirement of a cash payment. A Restricted Stock Award
may be transferred, except as otherwise provided in the Stock Incentive
Agreement, as a bona fide gift (i) to his spouse or lineal descendant or lineal
ascendant, (ii) to a trust for the benefit of one or more individuals described
in clause (i), or (iii) to a partnership of which the only partners are one or
more individuals described in clause (i), in which case the transferee shall be
subject to all provisions of the Plan, the Stock Incentive Agreement, and other
agreements between the Company and the Participant in connection with the
Restricted Stock Award. In the event of such a gift, the Optionee shall promptly
notify the Board of such transfer and deliver to the Board such written
documentation as the Board may in its discretion request, including, without
limitation, the written acknowledgment of the donee that the donee is subject to
the provisions of the Plan, the Stock Incentive Agreement and the Restricted
Stock Award.

                                   SECTION 8.
                              SURRENDER OF OPTIONS

         8.1      GENERAL RULE. The Board, acting in its absolute discretion,
may incorporate a provision in a Stock Incentive Agreement to allow an Employee
or Key Person to surrender his or Option in whole or in part in lieu of the
exercise in whole or in part of that Option on any date that:

                  (a)      the Fair Market Value of the Shares subject to such
Option exceeds Exercise Price for such Shares, and

                  (b)      the Option to purchase such Shares is otherwise
exercisable.

         8.2      PROCEDURE. The surrender of an Option in whole or in part
shall be effected by the delivery of the Stock Incentive Agreement to the Board,
together with a statement signed by the Participant which specifies the number
of Shares ("Surrendered Shares") as to which the Participant surrenders his or
her Option and how he or she desires payment be made for such Surrendered
Shares.

         8.3      PAYMENT. A Participant in exchange for his or her Surrendered
Shares shall receive a payment in cash or in Shares, or in a combination of cash
and Shares, equal in amount on the date such surrender is effected to the excess
of the Fair Market Value of the Surrendered Shares on such date over the
Exercise Price for the Surrendered Shares. The Board, acting in its absolute
discretion, can approve or disapprove a Participant's request for payment in
whole or in part in cash and can make that payment in cash or in such

                                  Page 9 of 16
<PAGE>

combination of cash and Shares as the Board deems appropriate. Also, the Board,
acting in its absolute discretion, can make payment in cash in lieu of any
fractional Shares.

         8.4      RESTRICTIONS. Any Stock Incentive Agreement which incorporates
a provision to allow a Participant to surrender his or her Option in whole or in
part also shall incorporate such additional restrictions on the exercise or
surrender of such Option as the Board deems necessary to satisfy the conditions
to the exemption under Rule 16b-3 (or any successor exemption) to Section 16(b)
of the Exchange Act.

                                   SECTION 9.
                              SECURITIES REGULATION

         Each Stock Incentive Agreement may provide that, upon the receipt of
Shares as a result of the surrender or exercise of a Stock Incentive or
otherwise, the Participant shall, if so requested by the Company, hold such
Shares for investment and not with a view of resale or distribution to the
public and, if so requested by the Company, shall deliver to the Company a
written statement satisfactory to the Company to that effect. Each Stock
Incentive Agreement may also provide that, if so requested by the Company, the
Participant shall make a written representation to the Company that he or she
will not sell or offer to sell any of such Shares unless a registration
statement shall be in effect with respect to such Shares under the Securities
Act of 1933, as amended ("1933 Act"), and any applicable state securities law
or, unless he or she shall have furnished to the Company an opinion, in form and
substance satisfactory to the Company, of legal counsel acceptable to the
Company, that such registration is not required. Certificates representing the
Shares transferred upon the exercise or surrender of a Stock Incentive granted
under this Plan may at the discretion of the Company bear a legend to the effect
that such Shares have not been registered under the 1933 Act or any applicable
state securities law and that such Shares may not be sold or offered for sale in
the absence of an effective registration statement as to such Shares under the
1933 Act and any applicable state securities law or an opinion, in form and
substance satisfactory to the Company, of legal counsel acceptable to the
Company, that such registration is not required.

                                   SECTION 10.
                                  LIFE OF PLAN

         No Stock Incentive shall be granted under this Plan on or after the
earlier of:

                  (a)      the tenth (10th) anniversary of the effective date of
this Plan (as determined under Section 4 of this Plan), in which event this Plan
otherwise thereafter shall continue in effect until all outstanding Stock
Incentives have been surrendered or exercised in full or no longer are
exercisable, or

                  (b)      the date on which all of the Shares reserved under
Section 3 of this Plan have (as a result of the surrender or exercise of Stock
Incentives granted under this Plan or lapse of all restrictions under a
Restricted Stock Award) been issued or no longer are available for use under
this Plan, in which event this Plan also shall terminate on such date.

                                   SECTION 11.
                                   ADJUSTMENT

         Notwithstanding anything in Section 13 to the contrary, the number of
Shares reserved under Section 3 of this Plan, the limit on the number of Shares
which may be granted during a calendar year to any individual under Section 3 of
this Plan, the number of Shares subject to Stock Incentives granted under this
Plan, and the Exercise Price of any Options, shall be adjusted by the Board in
an equitable manner to reflect any change in the capitalization of the Company,
including, but not limited to, such changes as stock dividends or stock splits.
Furthermore, the Board shall have the right to adjust (in a manner which
satisfies the requirements of Code Section 424(a)) the number of Shares reserved
under Section 3, and the number of Shares subject to Stock Incentives granted
under this Plan, and the Exercise Price of any Options in the event of any
corporate transaction described in Code Section 424(a) which provides for the
substitution or assumption of such Stock Incentives. If any adjustment under
this Section creates a fractional Share or a right to acquire a fractional
Share, such fractional Share shall be disregarded, and the number of Shares
reserved under this Plan and the number subject to any Stock Incentives granted
under this Plan shall be the next lower number of Shares, rounding all fractions

                                 Page 10 of 16
<PAGE>

downward. An adjustment made under this Section by the Board shall be conclusive
and binding on all affected persons and, further, shall not constitute an
increase in the number of Shares reserved under Section 3.

                                   SECTION 12.
                        CHANGE OF CONTROL OF THE COMPANY

         If a Change of Control occurs, and the agreements effectuating the
Change of Control do not provide for the assumption or substitution of the Stock
Incentives granted under this Plan, then, except to the extent otherwise
provided in the Stock Incentive Agreement pertaining to a particular Stock
Incentive, each Stock Incentive shall be governed by applicable law and the
documents effectuating the Change of Control.

                                   SECTION 13.
                            AMENDMENT OR TERMINATION

         This Plan may be amended by the Board from time to time to the extent
that the Board deems necessary or appropriate; provided, however, no such
amendment shall be made absent the approval of the shareholders of the Company
(a) to increase the number of Shares reserved under Section 3, except as set
forth in Section 11, (b) to extend the maximum life of the Plan under Section 10
or the maximum exercise period under Section 7, (c) to decrease the minimum
Exercise Price under Section 7, or (d) to change the designation of Employees or
Key Persons eligible for Stock Incentives under Section 6. The Board also may
suspend the granting of Stock Incentives under this Plan at any time and may
terminate this Plan at any time. The Company shall have the right to modify,
amend or cancel any Stock Incentive after it has been granted if (I) the
Participant consents in writing to such modification, amendment or cancellation,
or (II) there is a dissolution or liquidation of the Company or a transaction
described in Section 11 or Section 12, or (III) the Company would otherwise have
the right to make such modification, amendment or cancellation by applicable
law.

                                   SECTION 14.
                                  MISCELLANEOUS

         14.1     SHAREHOLDER RIGHTS. No Participant shall have any rights as a
shareholder of the Company as a result of the grant of a Stock Incentive to him
or to her under this Plan or his or her exercise or surrender of such Stock
Incentive pending the actual delivery of Shares subject to such Stock Incentive
to such Participant.

         14.2     NO GUARANTEE OF CONTINUED RELATIONSHIP. The grant of a Stock
Incentive to a Participant under this Plan shall not constitute a contract of
employment and shall not confer on a Participant any rights upon his or her
termination of employment or relationship with the Company in addition to those
rights, if any, expressly set forth in the Stock Incentive Agreement which
evidences his or her Stock Incentive.

         14.3     WITHHOLDING. The Company shall have the power and the right to
deduct or withhold, or require a Participant to remit to the Company as a
condition precedent for the fulfillment of any Stock Incentive, an amount
sufficient to satisfy Federal, state and local taxes, domestic or foreign,
required by law or regulation to be withheld with respect to any taxable event
arising as a result of this Plan and/or any action taken by a Participant with
respect to a Stock Incentive Award. Whenever Shares are to be issued or cash
paid to a Participant upon exercise of an Option, the Company shall have the
right to require the Participant to remit to the Company, as a condition of
exercise of the Option, an amount sufficient to satisfy federal, state and local
withholding tax requirements at the time of exercise. However, notwithstanding
the foregoing, to the extent that a Participant is an Insider, satisfaction of
withholding requirements by having the Company withhold Shares may only be made
to the extent that such withholding of Shares (1) has met the requirements of an
exemption under Rule 16b-3 promulgated under the Exchange Act, or (2) is a
subsequent transaction the terms of which were provided for in a transaction
initially meeting the requirements of an exemption under Rule 16b-3 promulgated
under the Exchange Act. Unless the Stock Incentive Agreement provides otherwise,
the withholding of shares to satisfy federal, state and local withholding tax
requirements shall be a subsequent transaction approved by the original grant of
a Stock Incentive. Notwithstanding the foregoing, in no event shall payment of
withholding taxes be made by a retention of Shares by the Company unless the
Company retains only Shares with a Fair Market Value equal to the minimum amount
of taxes required to be withheld.

                                 Page 11 of 16
<PAGE>

         14.4     NOTIFICATION OF DISQUALIFYING DISPOSITIONS OF ISO OPTIONS. If
a Participant sells or otherwise disposes of any of the Shares acquired pursuant
to an Option which is an ISO on or before the later of (1) the date two (2)
years after the date of grant of such Option, or (2) the date one (1) year after
the exercise of such Option, then the Participant shall immediately notify the
Company in writing of such sale or disposition and shall cooperate with the
Company in providing sufficient information to the Company for the Company to
properly report such sale or disposition to the Internal Revenue Service. The
Participant acknowledges and agrees that he may be subject to income tax
withholding by the Company on the compensation income recognized by Participant
from any such early disposition by either (or both) his payment to the Company
in cash or his payment out of the current wages or earnings otherwise payable to
him by the Company, as the Company shall require, and agrees that he shall
include the compensation from such early disposition in his gross income for
federal tax purposes. Participant also acknowledges that the Company may
condition the exercise of any Option which is an ISO on the Participant's
express written agreement with these provisions of this Plan.

         14.5     TRANSFER. The transfer of an Employee between or among the
Company, a Subsidiary or a Parent shall not be treated as a termination of his
or her employment under this Plan.

         14.6     CONSTRUCTION. This Plan shall be construed under the laws of
the State of Delaware.

                                 Page 12 of 16
<PAGE>

                             FIRST AMENDMENT TO THE
                   EMAGEON, INC. 2000 EQUITY COMPENSATION PLAN

         THIS FIRST AMENDMENT is made by Emageon, Inc., a corporation organized
and existing under the laws of the State of Delaware (the "Company").

                                   WITNESSETH:

         WHEREAS, the Company has previously adopted and currently maintains,
the Emageon, Inc. 2000 Equity Compensation Plan (the "Plan"); and

         WHEREAS, the Board of Directors has determined that it is now in the
Company's best interest to amend the Plan to provide for accelerated vesting of
all option issues under the Plan in the event of a change of control of the
Company; and

         NOW, THEREFORE, Section 12 of the Plan is hereby amended to read as
follows effective as of February 8, 2001.

                                   SECTION 12.
                        CHANGE OF CONTROL OF THE COMPANY

                  If a Change of Control occurs, then, except to the extent
         otherwise provided in the Stock Incentive Agreement pertaining to a
         particular Stock Incentive, each Stock Incentive shall be governed by
         applicable law and the documents effectuating the Change of Control.
         Additionally, if a Change of Control occurs, each Stock Incentive which
         is an Option shall become fully bested and immediately exercisable as
         of the closing of the Change of Control transaction, and Participants
         holding an Option shall be given notice of this accelerated vesting and
         exercisability to occur as of the closing of such transaction. Further,
         if the agreements effectuating the Change of Control do not provide for
         the assumption or substitution of the Stock Incentives granted under
         this Plan to a Participant, then additionally such participant will be
         entitled, prior to the closing of the Change of Control transaction, to
         exercise all or a portion of their Option contingent upon the closing
         of such transaction (taking into account such acceleration), and such
         Participant shall be given notification of such entitlement and a
         reasonable period of time to exercise their Option. If exercised by the
         Participant during such established period, the Participant shall be
         treated as a shareholder as of, and for purposes of, the Change of
         Control transaction to the extent of any shares purchased by the
         Participant pursuant to such exercise.

         Except as specifically amended herein, the Plan shall remain in full
force and effect as prior to this First Amendment.

         The Board has approved by resolution this First Amendment as of
February 8, 2001.

                                 Page 13 of 16
<PAGE>

                             SECOND AMENDMENT TO THE
                   EMAGEON, INC. 2000 EQUITY COMPENSATION PLAN

         THIS SECOND AMENDMENT is made by Emageon, Inc., a corporation organized
and existing under the laws of the State of Delaware (the "Company").

                                   WITNESSETH:

         WHEREAS, the Company has previously adopted and currently maintains,
the Emageon, Inc. 2000 Equity Compensation Plan (the "Plan"); and

         WHEREAS, the Board of Directors has determined that it is now in the
Company's best interest to amend the Plan to provide for additional stock
incentives for Company employees.

         NOW, THEREFORE, Section 3 of the Plan is hereby amended to read as
follows effective as of September 28, 2001.

                                   SECTION 3.
                       SHARES SUBJECT TO STOCK INCENTIVES

                  The total number of Shares that may be issued pursuant to
         Stock Incentives under this Plan shall not exceed 8,975,000 as adjusted
         pursuant to Section 11. Such Shares shall be reserved, to the extent
         that the Company deems appropriate, from authorized but unissued
         Shares, and from Shares which have been reacquired by the Company.
         Furthermore, any Shares subject to a Stock Incentive which remain after
         the cancellation, expiration or exchange of such Stock Incentive
         thereafter shall again become available for use under this Plan, but
         any Surrendered Shares which remain after the surrender of an ISO or a
         Non-ISO under Section 8 shall not again become available for use under
         this Plan. Notwithstanding anything herein to the contrary, no
         Participant may be granted Options or Stock Appreciation Rights
         covering an aggregate number of Shares in excess of 2,250,000 in any
         calendar year.

         Except as specifically amended by this Second Amendment, the Plan shall
remain in full force and effect as prior to this Second Amendment.

         The holders of a majority of Emageon, Inc. Common Stock have approved
this Second Amendment as of September 28, 2001.

                                 Page 14 of 16
<PAGE>

                             THIRD AMENDMENT TO THE
                   EMAGEON, INC. 2000 EQUITY COMPENSATION PLAN

         THIS THIRD AMENDMENT is made by Emageon, Inc., a corporation organized
and existing under the laws of the State of Delaware (the "Company").

                                   WITNESSETH:

         WHEREAS, the Company has previously adopted and currently maintains,
the Emageon, Inc. 2000 Equity Compensation Plan (the "Plan"); and

         WHEREAS, the Board of Directors has determined that it is now in the
Company's best interest to amend the Plan to provide for additional stock
incentives for Company employees; and

         NOW, THEREFORE, Section 3 of the Plan is hereby amended to read as
follows effective as of April 16, 2002.

                                   SECTION 3.
                       SHARES SUBJECT TO STOCK INCENTIVES

                  The total number of Shares that may be issued pursuant to
         Stock Incentives under this Plan shall not exceed 14,975,000 as
         adjusted pursuant to Section 11. Such Shares shall be reserved, to the
         extent that the Company deems appropriate, from authorized but unissued
         Shares, and from Shares which have been reacquired by the Company.
         Furthermore, any Shares subject to a Stock Incentive which remain after
         the cancellation, expiration or exchange of such Stock Incentive
         thereafter shall again become available for use under this Plan, but
         any Surrendered Shares which remain after the surrender of an ISO or a
         Non-ISO under Section 8 shall not again become available for use under
         this Plan. Notwithstanding anything herein to the contrary, no
         Participant may be granted Options or Stock Appreciation Rights
         covering an aggregate number of Shares in excess of 2,250,000 in any
         calendar year.

         Except as specifically amended by this resolution, the Plan shall
remain in full force and effect as prior to this Third Amendment.

         The holders of a majority of Emageon, Inc. Common Stock have approved
this Third Amendment as of April 16, 2002.

                                 Page 15 of 16
<PAGE>

                             FOURTH AMENDMENT TO THE
                   EMAGEON, INC. 2000 EQUITY COMPENSATION PLAN

         THIS FOURTH AMENDMENT is made by Emageon, Inc., a corporation organized
and existing under the laws of the State of Delaware (the "Company").

                                   WITNESSETH:

         WHEREAS, the Company has previously adopted and currently maintains,
the Emageon, Inc. 2000 Equity Compensation Plan (the "Plan"); and

         WHEREAS, the Board of Directors has determined that in conjunction with
its merger with UltraVisual, Inc., it is in the Company's best interest to amend
the Plan to increase the maximum number of shares of Common Stock that may be
issued pursuant to the Plan.

         NOW, THEREFORE, Section 3 of the Plan is hereby amended to read as
follows effective as of May 30, 2003.

                                   SECTION 3.
                       SHARES SUBJECT TO STOCK INCENTIVES

                  The total number of Shares that may be issued pursuant to
         Stock Incentives under this Plan shall not exceed 18,325,000 as
         adjusted pursuant to Section 11. Such Shares shall be reserved, to the
         extent that the Company deems appropriate, from authorized but unissued
         Shares, and from Shares which have been reacquired by the Company.
         Furthermore, any Shares subject to a Stock Incentive which remain after
         the cancellation, expiration or exchange of such Stock Incentive
         thereafter shall again become available for use under this Plan, but
         any Surrendered Shares which remain after the surrender of an ISO or a
         Non-ISO under Section 8 shall not again become available for use under
         this Plan. Notwithstanding anything herein to the contrary, no
         Participant may be granted Options or Stock Appreciation Rights
         covering an aggregate number of Shares in excess of 2,250,000 in any
         calendar year.

         Except as specifically amended by this resolution, the Plan shall
remain in full force and effect as prior to this Third Amendment.

         The Board of Directors unanimously approved this Fourth Amendment as of
April 30, 2003.

         The holders of a majority of Emageon, Inc. Common Stock have approved
this Fourth Amendment as of May 30, 2003.

                                 Page 16 of 16

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}]]