Document:

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                                                                     EXHIBIT 4.1

                          REGISTRATION RIGHTS AGREEMENT

        THIS REGISTRATION RIGHTS AGREEMENT (the "Agreement") is made and entered
into as of October 20, 2000, between LSI Logic Corporation, a Delaware
corporation ("Parent"), and Roger A. Franklin (the "Holder's Agent"), as agent
for the shareholders listed on Schedule A hereto (the "Shareholders").

                                    RECITALS

        A. Pursuant to an Agreement and Plan of Reorganization dated as of
October 20, 2000 by and among Parent, Sapphire Acquisition Corporation, a
Washington corporation and wholly-owned subsidiary of Parent (the "Merger Sub"),
Syntax Systems, Inc., a Washington corporation (the "Company"), the Holder's
Agent and certain other parties thereto (the "Merger Agreement"), the parties
thereto have agreed, subject to the terms and conditions set forth therein, to
merge Merger Sub with and into the Company (the "Merger") and thereby to convert
all shares of capital stock of the Company then outstanding into Parent Common
Stock (as such term is defined in the Merger Agreement) upon the terms and
subject to the conditions described in the Merger Agreement.

        B. The Shareholders desire to have liquidity with respect to the shares
of Parent Common Stock they receive in the Merger.

        C. Parent desires to grant each of the Shareholders registration rights
as provided herein.

        NOW, THEREFORE, in consideration of the promises and the mutual
covenants and agreements herein contained, the Company and the Holder's Agent,
on behalf of the Shareholders, agree as follows:

        1. Definitions of Certain Terms. As used herein, the following terms
shall have the following meanings. Capitalized terms used but not otherwise
defined in this Agreement shall have the meanings given to them in the Merger
Agreement.

               (a) "Closing Date" means the Closing Date as defined in Article I
of the Merger Agreement.

               (b) "Exchange Act" means the Securities Exchange Act of 1934, as
amended, and the rules and regulations of the SEC issued thereunder, as they may
be in effect from time to time.

               (c) "Form S-3" means such form under the Securities Act as in
effect on the date hereof or any registration form under the Securities Act
subsequently adopted by the SEC which similarly permits inclusion or
incorporation of substantial information by reference to other documents filed
by the Company with the commission.

               (d) "Holder" means any Shareholder holding Registrable Shares and
any other person or entity holding Registrable Shares to whom the registration
rights granted in this Agreement have been transferred pursuant to Section 8
hereof.

               (e) "Registrable Shares" means the shares of Parent Common Stock
issued to the Shareholders pursuant to the Merger (including shares held in the
escrow account), and any other securities issued by Parent as a dividend or
other distribution with respect to, or in exchange for or in replacement of,
such shares; provided, however, Registrable Shares shall not include shares of
Parent Common Stock that

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have been registered under the Securities Act and disposed of pursuant to the
registration statement used to effect such registration or that can be sold
without registration in accordance with Rule 144 of the Securities Act.

               (f) "SEC" means the United States Securities and Exchange
Commission, or any governmental agency succeeding to its functions.

               (g) "Securities Act" means the Securities Act of 1933, as
amended, and the rules and regulations of the SEC issued thereunder, as they may
be in effect from time to time.

        2. Shelf Registration. Parent agrees that as soon as possible, but not
later than fifteen (15) days of the Closing Date, Parent shall cause to be filed
a registration statement (a "Shelf Registration") on Form S-3 under the
Securities Act for an offering to be made on a delayed or continuous basis
pursuant to Rule 415 thereunder or any similar rule that may be adopted by the
SEC and permitting sales in ordinary course brokerage or dealer transactions not
involving any underwritten public offering, covering all of the Registrable
Shares. Parent shall use commercially reasonable efforts thereafter (a) to cause
the Shelf Registration to be declared effective by the SEC as promptly as
practicable and (b) subject to Sections 3 and 4 hereof, to keep the Shelf
Registration continuously effective until the earlier to occur of (i) subject to
any extension of time pursuant to Section 4(b) of this Agreement, the first
anniversary of the Closing Date (the "Time Period"), and (ii) the first date on
which no Registrable Shares originally covered by the Shelf Registration shall
constitute Registrable Shares (such period during which the Shelf Registration
is effective is referred to herein as the "Registration Period").

     3. Registration Procedures. After Parent commences the registration of the
Registrable Shares pursuant to the Shelf Registration, Parent shall take all
reasonable actions to permit registration and sale of the Registrable Shares
pursuant to the Shelf Registration, including the following:

               (a) furnish to the Holders such number of copies of the Shelf
Registration, each amendment and supplement thereto (in each case including all
exhibits thereto), the prospectus included in the Shelf Registration (including
any preliminary prospectus) and such other documents as the Holders may
reasonably request in order to facilitate the disposition of the Registrable
Shares owned by the Holders;

               (b) use commercially reasonable efforts to register or qualify
such Registrable Shares under such other securities or "blue sky" laws of such
jurisdictions as the Holder's Agent reasonably requests in writing and to do any
and all other acts and things that may be reasonably necessary or advisable to
register or qualify for sale in such jurisdictions the Registrable Shares owned
by the Holders; provided, however, that Parent shall not be required (i) to
qualify to do business in any jurisdiction where it is not then so qualified or
(ii) to consent to general service of process in any jurisdiction where it is
not then so subject to service of process; and

               (c) use commercially reasonable efforts as promptly as
practicable to cause all Registrable Shares covered by the Shelf Registration to
be listed on the New York Stock Exchange or other securities exchange or market,
if any, on which similar securities issued by Parent are then listed.

     4. Stop Order; Postponement of Registration.

               (a) Parent will notify the Holders promptly of (i) the issuance
of any stop order suspending the effectiveness of the Shelf Registration or (ii)
the receipt by Parent of any notification with respect to the suspension of the
qualification of the Registrable Shares for sale in any jurisdiction.
Immediately upon receipt of any such notice, the Holders shall cease to offer
and sell any Registrable Shares

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pursuant to the Shelf Registration in the jurisdiction to which such stop order
or suspension relates. Parent shall use all reasonable efforts to prevent the
issuance of any such stop order or the suspension of any such qualification and,
if any such stop order is issued or any such qualification is suspended, to
obtain as soon as possible the withdrawal or revocation thereof, and will notify
the Holders at the earliest practicable date of the date on which the Holders
may offer and sell Registrable Shares pursuant to the Shelf Registration.

               (b) Parent will notify the Holders promptly of the occurrence of
any event or the existence of any state of facts that, in the reasonable
judgment of Parent, should be or could be required to be set forth in the
prospectus used in connection with the Shelf Registration (the "Prospectus");
provided, however, that Parent shall not be required to disclose such event or
facts, or the nature thereof, to the Holders. Immediately upon receipt of such
notice, the Holders shall cease to offer or sell any Registrable Shares pursuant
to such Prospectus, cease to deliver or use such Prospectus and, if so requested
by Parent, return to Parent, at its expense, all copies (other than permanent
file copies) of such Prospectus. Promptly after Parent determines that the
information may be included in an amendment or supplement to the Prospectus,
Parent will use commercially reasonable efforts to amend or supplement such
Prospectus as promptly as practicable in order to set forth or reflect such
event or state of facts. In the event that Parent determines in good faith that
the disclosure of such information would be detrimental to Parent or its
shareholders, Parent shall be permitted to delay the filing of such an amendment
or supplement to the Prospectus for a period of time to extend no longer than
sixty (60) days. Parent shall not exercise this delay right more than three
times in any twelve month period. Parent will furnish copies of such amendment
or supplement to the Prospectus to the Holders. In the event Holders are
prevented from selling Registrable Shares through the Shelf Registration as a
result of this Section 4(b), then the Time Period shall be extended by the
number of days that such Holders are prevented from making such sales as a
result of this Section 4(b).

        5. Information Concerning the Holders.

               (a) The obligations of Parent to take the actions contemplated by
Sections 2 and 3 hereof with respect to an offering of Registrable Shares shall
be subject to the condition that each Holder shall (i) conform to all applicable
requirements of the Securities Act and the Exchange Act with respect to the
offering and sale of securities and (ii) advise each underwriter, broker or
dealer through which any of such Registrable Shares are offered that such
Registrable Shares are part of a distribution that is subject to the prospectus
delivery requirements of the Securities Act. Each Holder shall furnish to Parent
in writing such information and furnish such documents as may be reasonably
required by Parent in the preparation of (A) the Prospectus (or any amendment or
supplement thereto) with respect to any offering of Registrable Shares and (B)
any qualification of such Registrable Shares under state securities or "blue
sky" laws pursuant to Section 3(b) hereof, and shall promptly notify Parent of
the occurrence, from the date on which such information or documents are
furnished to the date of the closing for the sale of such Registrable Shares, of
any event relating to such Holder that is required under the Securities Act to
be set forth in the Prospectus (or any amendment or supplement thereto).

               (b) At the end of the Registration Period, the Holders shall
discontinue sales of Registrable Shares pursuant to the Shelf Registration after
Parent has given notice to the Holders of its intention to remove from
registration the securities covered by the Registration Statement which remain
unsold, and the Holders shall notify Parent promptly upon receipt of such notice
from Parent of the number of shares of the Holders that are registered but
remain unsold.

        6. Expenses of Registration. Parent shall pay all reasonable expenses
incident to its performance of or compliance with this Agreement and
registration of Registrable Shares in connection herewith, including (a) all
SEC, stock exchange or market and National Association of Securities Dealers,

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Inc. registration and filing fees, (b) all fees and expenses incurred in
complying with securities or "blue sky" laws, (c) all printing, messenger and
delivery expenses, (d) all fees and disbursements of Parent's independent public
accountants and counsel, and (e) the reasonable fees and expenses of counsel to
the Holders, not to exceed a total of $25,000 (all of such expenses herein
referred to as "Registration Expenses"). The Registration Expenses shall not
include any sales or underwriting discounts, commissions or fees attributable to
the sale of the Registrable Shares, which shall be borne by the Holders.

        7. Indemnification and Contribution.

               (a) Parent agrees to indemnify, to the extent permitted by law
and subject to the terms of this Agreement, each Holder and its directors,
officers, employees and agents and each person, if any, who controls such Holder
(within the meaning of the Securities Act) against any losses, claims, damages,
liabilities and expenses (including reasonable attorneys' fees) arising out of
or based upon any untrue or alleged untrue statement of a material fact
contained in the Shelf Registration (or any amendment thereto) or the Prospectus
(or any amendment or supplement thereto) or any omission or alleged omission to
state therein a material fact required to be stated therein or necessary to make
the statements made therein in the light of the circumstances under which they
were made not misleading; provided, however, that Parent shall not be liable to
any Holder or its directors, officers, employees or agents or each person, if
any, who controls such Holder (within the meaning of the Securities Act) (i) to
the extent that any such loss, claim, damage, liability or expense arises out
of, or is based upon any untrue or alleged untrue statement, or any omission, if
such statement or omission shall have been made in reliance upon and in
conformity with information relating to such Holder or person furnished in
writing to Parent by such Holder or person expressly for use in the preparation
of the Shelf Registration (or any amendment thereto) or the Prospectus (or any
amendment or supplement thereto) or (ii) if a copy of the Prospectus (or any
amendment thereto) relating to the Shelf Registration was not sent or given by
or on behalf of such Holder to a purchaser of the Holder's Registrable Shares,
if required by law so to have been delivered, at or prior to the written
confirmation of the sale of the Registrable Shares to such purchaser, and if the
Prospectus (as so amended or supplemented) would have cured the defect giving
rise to such loss, claim, damage or liability.

               (b) In connection with the Shelf Registration, each Holder will
indemnify, to the extent permitted by law and subject to the terms of this
Agreement, Parent, its directors, officers, employees and agents and each person
who controls Parent (within the meaning of the Securities Act) against any
losses, claims, damages, liabilities and expenses (including reasonable
attorneys' fees) arising out of or based upon any untrue or alleged untrue
statement of a material fact contained in the Shelf Registration (or any
amendment thereto) or the Prospectus (or any amendment or supplement thereto) or
any omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements made therein in the light of
the circumstances under which they were made not misleading, to the extent that
such untrue statement or omission was made in reliance upon and in conformity
with information furnished in writing to Parent by such Holder expressly for use
in the preparation of the Shelf Registration (or any amendment thereto) or the
Prospectus (or any amendment or supplement thereto); provided, that the
liability of each Holder hereunder shall be limited to the proportion of any
such loss, claim, damage, liability or expense which is equal to the proportion
that the public offering price of the shares by such Holder under such
registration statement bears to the total public offering price of all
securities sold thereunder, but not in any event to exceed the net proceeds
received by such Holder.

               (c) Each party entitled to indemnification under this Section 7
(the "Indemnified Party") shall give notice to the party required to provide
indemnification (the "Indemnifying Party") promptly after such Indemnified Party
has actual knowledge of any claim as to which indemnity may be sought, and shall
permit the Indemnifying Party to assume the defense of any such claim or any
litigation resulting therefrom; provided that counsel for the Indemnifying
Party, who shall conduct the defense of such claim or litigation,

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shall be approved by the Indemnified Party (whose approval shall not be
unreasonably withheld or delayed); and provided, further, that the delay or
failure of any Indemnified Party to give notice as provided herein shall not
relieve the Indemnifying Party of its obligations under this Section 7, except
to the extent that the Indemnifying Party shall have been materially adversely
affected by such delay or failure. The Indemnified Party may participate in such
defense at the Indemnified Party's expense; provided, however, that the
Indemnifying Party shall pay any such reasonable expense if the Indemnified
Party shall have reasonably concluded that there may be a conflict between the
positions of the Indemnifying Party and the Indemnified Party in conducting the
defense of any such claim or litigation resulting therefrom. No Indemnified
Party shall consent to entry of any judgment or settle any claim or litigation
without the prior written consent of the Indemnifying Party.

               (d) If the indemnification provided for in this Section 7 from
the Indemnifying Party is unavailable to an Indemnified Party hereunder in
respect of any losses, claims, damages, liabilities or expenses referred to
therein as a result of a judicial determination that such indemnification may
not be enforced in such case notwithstanding this Agreement, the Indemnifying
Party, in lieu of indemnifying such Indemnified Party, shall contribute to the
amount paid or payable by such Indemnified Party as a result of such losses,
claims, damages, liabilities or expenses in such proportion as is appropriate to
reflect the relative fault of the Indemnifying Party and Indemnified Party in
connection with the actions which resulted in such losses, claims, damages,
liabilities or expense, as well as any other relevant equitable considerations.
The relative fault of such Indemnifying Party and Indemnified Party shall be
determined by reference to, among other things, whether any action in question,
including any untrue or alleged untrue statement of material fact or omission or
alleged omission to state a material fact, has been made by, or relates to
information supplied by, such Indemnifying Party or Indemnified Party, and the
parties' relative intent, knowledge, access to information and opportunity to
correct or prevent such action; provided, however, that no person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation and no Holder will be required to
contribute any amount in excess of the public offering price (less underwriting
discounts and selling commissions) of all such Registrable Stock offered by it
pursuant to such Registration Statement.

        8. Transfer of Registration Rights. The registration rights of any
Holder (and of any transferee of any Holder or its transferees) under this
Agreement with respect to any Registrable Shares may be transferred to any
transferee who (i) acquires at least 50,000 (or, if less, all of the Registrable
Shares of a Holder) of such Registrable Shares, (ii) is a partner, member or
stockholder of a Holder that is a partnership, limited liability company or
corporation, respectively, or (iii) is a family member of a Holder or a trust or
family limited partnership controlled by a Holder; provided that Parent is given
written notice by the Holder at the time of such transfer stating the name and
address of the transferee and identifying the Registrable Shares with respect to
which the rights under this Agreement are being assigned and such transferee
executes and delivers such agreements as Parent may reasonably require in order
to confirm that such transferee agrees to be bound by this Agreement.

        9. Amendment of Registration Rights. This Agreement may not be amended,
modified or supplemented by the parties hereto in any manner, except by a
written instrument that is approved by the Holder's Agent and Insight Venture
Partners I, L.P. ("Insight") and is signed by Parent and the Holder's Agent.

        10. Termination. The registration rights set forth in this Agreement
shall terminate as to any Holder at the earlier of such time as (i) subject to
any extension of time pursuant to Section 4(b) of this Agreement, the first
anniversary of the Closing Date, or (ii) the first date on which no Registrable
Shares originally covered by the Shelf Registration shall constitute Registrable
Shares.

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        11. Grant of Additional Registration Rights. The Holders acknowledge
that Parent may acquire other companies and in the course of such acquisitions
may grant the equity owners thereof registration rights with respect to their
shares of Parent on terms that would be negotiated at such time and may be
materially different than the terms of this Agreement.

        12. No Waiver. The terms and conditions of this Agreement may be waived
only by a written instrument (a) approved by the Holder's Agent and Insight and
signed by the Holder's Agent in the case where a Holder or the Holder's Agent is
waiving compliance and (b) signed by Parent in the case where Parent is waiving
compliance. The failure of any party hereto to enforce at any time any of the
provisions of this Agreement shall in no way be construed to be a waiver of any
such provision, nor in any way to affect the validity of this Agreement or any
part hereof or the right of such party thereafter to enforce each and every such
provision. No waiver of any breach of or non-compliance with this Agreement
shall be held to be a waiver of any other or subsequent breach or
non-compliance. The rights and remedies herein provided are cumulative and are
not exclusive of any rights or remedies that any party may otherwise have at law
or in equity.

        13. Governing Law. This Agreement shall be governed by and construed and
enforced in accordance with the laws of the State of California, regardless of
the other laws that might govern under applicable principles of conflicts of
laws thereof.

        14. Notice. All notices and other communications hereunder shall be in
writing and shall be deemed given if delivered by hand, sent by facsimile
transmission with confirmation of receipt, sent via a reputable overnight
courier service with confirmation of receipt requested, or mailed by registered
or certified mail (postage prepaid and return receipt requested) to the parties
at the following addresses (or at such other address for a party as shall be
specified by like notice), and shall be deemed given on the date on which
delivered by hand or otherwise on the date of receipt as confirmed:

        To Parent:

        LSI Logic Corporation
        1551 McCarthy Boulevard
        Milpitas, California 95035
        Attn:  Vice President and General Counsel
        Telephone No.:(408) 433-7189
        Facsimile No.:(408) 433-6896

        with a copy to:

        Wilson Sonsini Goodrich & Rosati, P.C.
        650 Page Mill Road
        Palo Alto, California 94304
        Attn:  Kathleen B. Bloch, Esq.
        Telephone No.:(650) 493-9300
        Facsimile No.:(650) 493-6811

        To the Holder's Agent:

        Roger A. Franklin
        33650 Sixth Avenue South
        Federal Way, Washington  98003

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        Telephone No.: (253) 838-2626
        Facsimile No.:  (253) 815-1882

        with a copy to:

        Dennis Seinfeld, Esq.
        920 Fawcett Avenue
        Tacoma, Washington 98401
        Telephone No.:  (253) 620-1500
        Facsimile No.:   (253) 572-3052

        To a Holder:

        At their respective addresses appearing on Parent's stock register.

        15. Construction of Agreement. A reference to a Section or Schedule
shall mean a Section in or Schedule to this Agreement unless otherwise expressly
stated. The titles and headings herein are for reference purposes only and shall
not in any manner limit the construction of this Agreement which shall be
considered as a whole. The words "include," "includes" and "including" when used
herein shall be deemed in each case to be followed by the words "without
limitation."

        16. Entire Agreement, Assignability, etc. This Agreement and the Merger
Agreement and the documents and other agreements among the parties hereto and
thereto as contemplated by or referred to herein or therein constitute the
entire agreement among the parties with respect to the subject matter hereof and
supersede all other prior agreements and understandings, both written and oral,
between the parties with respect to the subject matter hereof. This Agreement
shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and permitted assigns. This Agreement is not intended to
confer upon any person other than the parties hereto and the Shareholders any
rights or remedies hereunder, except as otherwise expressly provided herein and
shall not be assignable by operation of law or otherwise, except as provided in
Section 8 hereof.

        17. Validity. The invalidity or unenforceability of any provision of
this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement, each of which shall remain in full force and
effect.

        18. Counterparts. This Agreement may be executed in one or more
counterparts, all of which together shall constitute one and the same Agreement.

                [remainder of the page intentionally left blank]

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        IN WITNESS WHEREOF, the parties have caused this Registration Rights
Agreement to be executed as an agreement under seal as of the date first written
above.

                                       LSI LOGIC CORPORATION

                                       By:    /s/  Thomas Georgens
                                          ------------------------------------
                                              Name:  Thomas Georgens
                                              Title:  Vice President

                                       HOLDER'S AGENT

                                       By:    /s/  Roger A. Franklin
                                          ------------------------------------
                                              Roger A. Franklin

                [SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT]

<PAGE>   9

                                   Schedule A

                                  ShareholdersExhibit 10.1

                               HBOA HOLDINGS, INC.
                       YEAR 2000 EQUITY COMPENSATION PLAN

<PAGE>

                                Table of Contents
<TABLE>
<CAPTION>

                                                                                                               Page

<S>                                                                                                              <C>
1.       Administration...........................................................................................1

2.       Grants...................................................................................................2

3.       Shares Subject to the Plan...............................................................................2

4.       Eligibility for Participation............................................................................3

5.       Granting of Options......................................................................................3

6.       Restricted Stock Grants..................................................................................6

7.       Withholding of Taxes.....................................................................................8

8.       Transferability of Grants................................................................................8

9.       Reorganization of the Company............................................................................9

10.      Requirements for Issuance or Transfer of Shares..........................................................9

11.      Amendment and Termination of the Plan...................................................................10

12.      Funding of the Plan.....................................................................................10

13.      Rights of Participants..................................................................................10

14.      No Fractional Shares.  .................................................................................10

15.      Headings.  .............................................................................................10

16.      Effective Date of the Plan..............................................................................11

17.      Miscellaneous...........................................................................................11
</TABLE>

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<PAGE>

                               HBOA HOLDINGS, INC.
                       YEAR 2000 EQUITY COMPENSATION PLAN

         The purpose of the HBOA Holdings, Inc. Year 2000 Equity Compensation
Plan (the "Plan") is to provide (i) designated employees of HBOA Holdings, Inc.
(the "Company") and its subsidiaries, (ii) certain Key Advisors (as defined in
Section 4(a)) who perform services for the Company or its subsidiaries and (iii)
non-employee members of the Board of Directors of the Company (the "Board") with
the opportunity to receive grants of incentive stock options, nonqualified stock
options and restricted stock. The Company believes that the Plan will encourage
the participants to contribute materially to the growth of the Company, thereby
benefiting the Company's shareholders, and will align the economic interests of
the participants with those of the shareholders.

         1.       Administration.
                  --------------

                  (a)      Committee. The Plan shall be administered and
interpreted by the Board of Directors or a committee appointed by the Board (the
Board of Directors in such capacity or any committee appointed by the Board of
Directors is referred to hereafter as the "Committee"). The Committee as
appointed by the Board shall consist of two or more persons appointed by the
Board, all of whom may or may not be "outside directors" as defined under
section 162(m) of the Internal Revenue Code of 1986, as amended (the "Code") and
related Treasury regulations and may be "non-employee directors" as defined
under Rule 16b-3 under the Securities Exchange Act of 1934, as amended (the
"Exchange Act").

                  (b)      Committee Authority. The Committee shall have the
sole authority to (i) determine the individuals to whom grants shall be made
under the Plan, (ii) determine the type, size and terms of the grants to be made
to each such individual, (iii) determine the time when the grants will be made
and the duration of any applicable exercise or restriction period, including the
criteria for exercisability and the acceleration of exercisability and (iv) deal
with any other matters arising under the Plan.

                  (c)      Committee Determinations. The Committee shall have
full power and authority to administer and interpret the Plan, to make factual
determinations and to adopt or amend such rules, regulations, agreements and
instruments for implementing the Plan and for the conduct of its business as it
deems necessary or advisable, in its sole discretion. The Committee's
interpretations of the Plan and all determinations made by the Committee
pursuant to the powers vested in it hereunder shall be conclusive and binding on
all persons having any interest in the Plan or in any awards granted hereunder.
All powers of the Committee shall be executed in its sole discretion, in the
best interest of the Company, not as a fiduciary, and in keeping with the
objectives of the Plan and need not be uniform as to similarly situated
individuals.

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<PAGE>

         2. Grants. Awards under the Plan may consist of grants of incentive
stock options as described in Section 5 ("Incentive Stock Options"),
nonqualified stock options as described in Section 5 ("Nonqualified Stock
Options" and, together with Incentive Stock Options, "Options"), and restricted
stock as described in Section 6 ("Restricted Stock") (hereinafter collectively
referred to as "Grants"). All Grants shall be subject to the terms and
conditions set forth herein and to such other terms and conditions consistent
with this Plan as the Committee deems appropriate and as are specified in
writing by the Committee to the individual in a grant instrument (the "Grant
Instrument") or an amendment to the Grant Instrument. In the event there is an
inconsistency between the terms of the Grant Instrument and the terms of the
Plan, the terms of the Plan shall govern. The Committee shall approve the form
and provisions of each Grant Instrument. Grants under a particular Section of
the Plan need not be uniform as among the grantees.

         3.       Shares Subject to the Plan

                  (a)      Shares Authorized. Subject to the adjustment
specified below, the aggregate number of shares of common stock of the Company
("Company Stock") that may be issued or transferred under the Plan is 2,700,000
shares. The maximum aggregate number of shares of Company Stock that shall be
subject to Grants made under the Plan to any individual during any calendar year
shall be as determined by the Committee ("Award Limit"). The shares may be
authorized but unissued shares of Company Stock or reacquired shares of Company
Stock, including shares purchased by the Company on the open market for purposes
of the Plan. If and to the extent Options granted under the Plan terminate,
expire, or are canceled, forfeited, exchanged or surrendered without having been
exercised, or if any shares of Restricted Stock are forfeited, the shares
subject to such Grants shall again be available for purposes of the Plan.
However, to the extent Section 162(m) of the Code requires, such shares continue
to be counted against the Award Limit.

                  (b)      Adjustments. If there is any change in the number or
kind of shares of Company Stock outstanding (i) by reason of a stock dividend,
spinoff, recapitalization, stock split or combination or exchange of shares,
(ii) by reason of a merger, reorganization or consolidation in which the Company
is the surviving corporation, (iii) by reason of a reclassification or change in
par value, or (iv) by reason of any other extraordinary or unusual event
affecting the outstanding Company Stock as a class without the Company's receipt
of consideration, or if the value of outstanding shares of Company Stock is
substantially reduced as a result of a spinoff or the Company's payment of an
extraordinary dividend or distribution, the maximum number of shares of Company
Stock available for Grants, the maximum number of shares of Company Stock that
any individual participating in the Plan may be granted in any year, the number
of shares covered by outstanding Grants, the kind of shares issued under the
Plan, and the price per share or the applicable market value of such Grants
shall be appropriately adjusted by the Committee to reflect any increase or
decrease in the number of, or change in the kind or value of, issued shares of
Company Stock to preclude, to the extent practicable, the enlargement or
dilution of rights and benefits under such Grants; provided, however, that any
fractional shares resulting from such adjustment shall be eliminated. Any
adjustments determined by the Committee shall be final, binding and conclusive.

                                        4
<PAGE>

         With respect to Options which are granted to participants, the
compensation of whom could be subject to limitation under Section 162(m) of the
Code and which are intended to qualify as performance-based compensation under
Section 162(m)(4)(C), no adjustment or action described in this Section 3(b) or
in any other provision of the Plan shall be authorized to the extent that such
adjustment or action would cause the option to fail to qualify under Section
162(m)(4)(C), or any successor provisions thereto. Furthermore, no adjustment or
action shall be authorized to the extent the adjustment or action would result
in short-swing profits liability under Section 16 or violate the exemptive
conditions of Rule 16b-3 unless the Committee determines that the Option or
other award is not to comply with such exemptive conditions. The number of
shares of Company Stock subject to any Option shall always be rounded to the
next whole number.

         4.       Eligibility for Participation.
                  -----------------------------

                  (a)      Eligible Persons. All employees of the Company and
its subsidiaries ("Employees"), including Employees who are officers or members
of the Board, and members of the Board who are not Employees ("Non-Employee
Directors") shall be eligible to participate in the Plan. Key advisors and
consultants who perform services to the Company or any of its subsidiaries ("Key
Advisors") shall be eligible to participate in the Plan if the Key Advisors
render bona fide services and such services are not in connection with the offer
or sale of securities in a capital-raising transaction.

                  (b)      Selection of Grantees. The Committee shall select the
Employees, Non-Employee Directors and Key Advisors to receive Grants and shall
determine the number of shares of Company Stock subject to a particular Grant in
such manner as the Committee determines. Employees, Key Advisors and
Non-Employee Directors who receive Grants under this Plan shall hereinafter be
referred to as "Grantees."

         5.       Granting of Options.
                  -------------------

                  (a)      Number of Shares. The Committee shall determine the
number of shares of Company Stock that will be subject to each Grant of Options
to Employees, Non-Employee Directors and Key Advisors.

                  (b)      Type of Option and Price.
                           ------------------------

                           i)      The  Committee may grant  Incentive  Stock
Options that are intended to qualify as "incentive stock options" within the
meaning of section 422 of the Code or Nonqualified Stock Options that are not
intended to so qualify or any combination of Incentive Stock Options and
Nonqualified Stock Options, all in accordance with the terms and conditions set
forth herein. Incentive Stock Options may be granted only to Employees.
Nonqualified Stock Options may be granted to Employees, Non-Employee Directors
and Key Advisors.

                                        5
<PAGE>

                           (ii)     The  purchase  price (the  "Exercise
Price") of Company Stock subject to an Option shall be determined by the
Committee and may be equal to, greater than, or less than the Fair Market Value
(as defined below) of a share of Company Stock on the date the Option is
granted, provided, however, that (A) the Exercise Price of an Incentive Stock
Option shall be equal to, or greater than, the Fair Market Value of a share of
Company Stock on the date the Incentive Stock Option is granted; (B) an
Incentive Stock Option may not be granted to an Employee who, at the time of
grant, owns stock possessing more than 10 percent of the total combined voting
power of all classes of stock of the Company or any parent or subsidiary of the
Company, unless the Exercise Price per share is not less than 110% of the Fair
Market Value of Company Stock on the date of grant; (C) in the case of an option
intended to qualify as performance based compensation (as described n Section
162(m)(4)(c) of the Code), the Exercise Price shall not be less than 100% of the
Fair Market Value of Company Stock on the date of grant; and (D) in the case of
Nonqualified Stock Options granted to non-employee directors, the Exercise Price
shall equal 100% of the Fair Market Value of Company Stock on the date of grant.

                           (iii)    If the Company Stock is publicly  traded,
then the Fair Market Value per share shall be determined as follows: (x) if the
principal trading market for the Company Stock is a national securities exchange
or the Nasdaq National Market, the last reported sale price thereof on the
relevant date or (if there were no trades on that date) the latest preceding
date upon which a sale was reported, or (y) if the Company Stock is not
principally traded on such exchange or market, the mean between the last
reported "bid" and "asked" prices of Company Stock on the relevant date, as
reported on Nasdaq or, if not so reported, as reported by the National Daily
Quotation Bureau, Inc. or as reported in a customary financial reporting
service, as applicable and as the Committee determines. If the Company Stock is
not publicly traded or, if publicly traded, is not subject to reported
transactions or "bid" or "asked" quotations as set forth above, the Fair Market
Value per share shall be as determined by the Committee.

                  (c)     Option Term. The Committee shall determine the term
of each Option. The term of any Option shall not exceed ten years from the date
of grant. However, an Incentive Stock Option that is granted to an Employee who,
at the time of grant, owns stock possessing more than 10 percent of the total
combined voting power of all classes of stock of the Company, or any parent or
subsidiary of the Company, may not have a term that exceeds five years from the
date of grant.

                  (d)      Vesting and Exercisability of Options. Options shall
vest and become exercisable in accordance with such terms and conditions,
consistent with the Plan, as may be determined by the Committee and specified in
the Grant Instrument or an amendment to the Grant Instrument. The Committee may
accelerate the vesting and/or exercisability of any or all outstanding Options
at any time for any reason. Options may, at the discretion of the Committee, be
exercised prior to vesting, provided that the optionee grants the Company a
right to repurchase any unvested shares at the exercise price upon termination
of the optionee's service to the Company.

                                        6
<PAGE>

                  (e)      Termination of Employment, Disability or Death.

                           (i)      Except as provided  below, an Option may
only be exercised while the Grantee is employed by or otherwise providing
service to the Company as an Employee, Key Advisor or member of the Board. In
the event that a Grantee ceases to be employed by the Company for any reason
other than a "disability", or "termination for cause", any Option which is
otherwise exercisable by the Grantee shall terminate unless exercised within one
hundred eighty days after the date on which the Grantee ceases to be employed by
the Company (or within such other period of time as may be specified in a Grant
Instrument), but in any event no later than the date of expiration of the Option
term. Any of the Grantee's Options that are not otherwise exercisable as of the
date on which the Grantee ceases to be employed by the Company shall terminate
as of such date (unless specified to the contrary in a Grant Instrument).

                           (ii)     In the event the  Grantee  ceases to be
employed by the Company on account of a "termination for cause" by the Company,
the unvested portion of any Option held by the Grantee shall terminate on the
date on which the Grantee ceases to be employed by the Company. Any of the
Grantee's Options which are not otherwise exercisable as of the date on which
the Grantee ceases to be employed by the Company shall terminate as of such
date.

                           (iii)    In the event the  Grantee  ceases to be
employed by the Company because the Grantee is "disabled", any Option which is
otherwise exercisable by the Grantee shall terminate unless exercised within one
year after the date on which the Grantee ceases to be employed by the Company
(or within such other period of time as may be specified in a Grant Instrument),
but in any event no later than the date of expiration of the Option term. Any of
the Grantee's Options which are not otherwise exercisable as of the date on
which the Grantee ceases to be employed by the Company shall terminate as of
such date (unless specified to the contrary in a Grant Instrument).

                           (iv)     If the Grantee  dies while  employed by the
Company or within 90 days after the date on which the Grantee ceases to be
employed on account of a termination of employment specified in Section 5(e)(i)
above (or within such other period of time as may be specified in a Grant
Instrument), any Option that is otherwise exercisable by the Grantee shall
terminate unless exercised within one year after the date on which the Grantee
ceases to be employed by the Company (or within such other period of time as may
be specified in a Grant Instrument), but in any event no later than the date of
expiration of the Option term. Any of the Grantee's Options that are not
otherwise exercisable as of the date on which the Grantee ceases to be employed
by the Company shall terminate as of such date (unless specified to the contrary
in a Grant Instrument).

                           (v)      For purposes of Sections 5(e) and 6:

                                    (A)     "Company,"  when used in the phrase
         "employed by the  Company,"  shall mean the Company and its parent and
         subsidiary corporations.

                                        7
<PAGE>

                                    (B)     "Employed  by the  Company"  shall
         mean employment or service as an Employee, Key Advisor or member of the
         Board (so that, for purposes of exercising Options and satisfying
         conditions with respect to Restricted Stock, a Grantee shall not be
         considered to have terminated employment or service until the Grantee
         ceases to be an Employee, Key Advisor and member of the Board), unless
         the Committee determines otherwise.

                                    (C)     "Disability"  shall  mean a
         Grantee's becoming disabled within the meaning of section 22(e)(3) of
         the Code or otherwise as defined in an employment consultant or other
         agreement between the Company and the Grantee.

                                    (D)     "Termination  for cause"  shall
         mean, except to the extent specified otherwise by the Committee or
         otherwise as defined in an employment, consultant or other agreement
         between the Company and the Grantee, a finding by the Committee that
         the Grantee has breached his or her employment, service,
         noncompetition, nonsolicitation or other similar contract with the
         Company, or has been engaged in disloyalty to the Company, including,
         without limitation, fraud, embezzlement, theft, commission of a felony
         or dishonesty in the course of his or her employment or service, or has
         disclosed trade secrets or confidential information of the Company to
         persons not entitled to receive such information. A Grant Instrument
         may provide that in the event a Grantee's employment is terminated for
         cause, in addition to the immediate termination of all Grants, the
         Grantee shall automatically forfeit all shares underlying any exercised
         portion of an Option, upon refund by the Company of the Exercise Price
         paid by the Grantee for such shares, and any option gain realized by
         the Grantee from exercising all or a portion of an Option within the
         two-year period prior to the event shall be paid by the Grantee to the
         Company.

                  (f) Exercise of Options. A Grantee may exercise an Option that
has become exercisable, in whole or in part, by delivering a notice of exercise
to the Company with payment of the Exercise Price. The Grantee shall pay the
Exercise Price for an Option as specified by the Committee (x) in cash, (y) with
the approval of the Committee, by delivering shares of Company Stock owned by
the Grantee for the period necessary to avoid a charge to the Company's earnings
for financial reporting purposes (including Company Stock acquired in connection
with the exercise of an Option, subject to such restrictions as the Committee
deems appropriate) and having a Fair Market Value on the date of exercise equal
to the Exercise Price or (z) by such other method as the Committee may approve,
including payment through a broker in accordance with procedures permitted by
Regulation T of the Federal Reserve Board. Shares of Company Stock used to
exercise an Option shall have been held by the Grantee for the requisite period
of time to avoid adverse accounting consequences to the Company with respect to
the Option. The Grantee shall pay the Exercise Price and the amount of any
withholding tax due (pursuant to Section 7) at the time of exercise.

                                        8
<PAGE>

                  (g) Limits on Incentive Stock Options. Each Incentive Stock
Option shall provide that, if the aggregate Fair Market Value of the stock on
the date of the grant with respect to which Incentive Stock Options are
exercisable for the first time by a Grantee during any calendar year, under the
Plan or any other stock option plan of the Company or a parent or subsidiary,
exceeds $100,000, then the option, as to the excess, shall be treated as a
Nonqualified Stock Option. An Incentive Stock Option shall not be granted to any
person who is not an Employee of the Company or a parent or subsidiary (within
the meaning of section 424(f) of the Code).

         6. Restricted Stock Grants. The Committee may issue or transfer shares
of Company Stock to an Employee or Key Advisor under a Grant of Restricted
Stock, upon such terms as the Committee deems appropriate. The following
provisions are applicable to Restricted Stock:

                  (a) General Requirements. Shares of Company Stock issued or
transferred pursuant to Restricted Stock Grants may be issued or transferred for
consideration or for no consideration, as determined by the Committee. The
Committee may establish conditions under which restrictions on shares of
Restricted Stock shall lapse over a period of time or according to such other
criteria as the Committee deems appropriate. The period of time during which the
Restricted Stock will remain subject to restrictions will be designated in the
Grant Instrument as the "Restriction Period."

                  (b) Number of Shares. The Committee shall determine the number
of shares of Company Stock to be issued or transferred pursuant to a Restricted
Stock Grant and the restrictions applicable to such shares.

                  (c) Requirement of Employment. If the Grantee ceases to be
employed by the Company (as defined in Section 5(e)) during a period designated
in the Grant Instrument as the Restriction Period, or if other specified
conditions are not met, the Restricted Stock Grant shall terminate as to all
shares covered by the Grant as to which the restrictions have not lapsed, and
those shares of Company Stock must be immediately returned to the Company. The
Committee may, however, provide for complete or partial exceptions to this
requirement as it deems appropriate.

                  (d) Restrictions on Transfer and Legend on Stock Certificate.
During the Restriction Period, a Grantee may not sell, assign, transfer, pledge
or otherwise dispose of the shares of Restricted Stock except to a Successor
Grantee under Section 8(a). Each certificate for a share of Restricted Stock
shall contain a legend giving appropriate notice of the restrictions in the
Grant. The Grantee shall be entitled to have the legend removed from the stock
certificate covering the shares subject to restrictions when all restrictions on
such shares have lapsed. The Committee may determine that the Company will not
issue certificates for shares of Restricted Stock until all restrictions on such
shares have lapsed, or that the Company will retain possession of certificates
for shares of Restricted Stock until all restrictions on such shares have
lapsed.

                  (e) Right to Vote and to Receive Dividends. Unless the
Committee determines otherwise, during the Restriction Period, the Grantee shall
have the right to vote shares of Restricted Stock and to receive any dividends
or other distributions paid on such shares, subject to any restrictions deemed
appropriate by the Committee.

                                        9
<PAGE>

                  (f) Lapse of Restrictions. All restrictions imposed on
Restricted Stock shall lapse upon the expiration of the applicable Restriction
Period and the satisfaction of all conditions imposed by the Committee. The
Committee may determine, as to any or all Restricted Stock Grants, that the
restrictions shall lapse without regard to any Restriction Period.

                  (g) Performance Based Compensation. The Committee may grant
Restricted Stock to an employee covered under Section 162(m) of the Code that
vests upon the attainment of performance targets for the Company which are
related to one or more of the following performance goals: (i) pre-tax income,
(ii) operating income, (iii) cash flow, (iv) earnings per share, (v) return on
equity, (vi) return on invested capital or assets and (vii) cost reductions or
savings. To the extent necessary to comply with the performance-based
compensation requirements of Section 162(m)(4)(c) of the Code, with respect to
Restricted Stock which may be granted to one or more employees covered under
Section 162(m) of the Code, no later than ninety days following the commencement
of any fiscal year in question or any other designated fiscal period, the
Committee shall, in writing, (i) designate the employees covered under Section
162(m) of the Code, (ii) select the performance goal or goals applicable to the
fiscal year or other designated fiscal period, (iii) establish the various
targets and bonus amounts which may be earned for such fiscal year or other
designated fiscal period and (iv) specify the relationship between performance
goals and targets and the amounts to be earned by each Section 162(m)
participant for such fiscal year or other designed fiscal period. Following the
completion of each fiscal year or other designated fiscal period, the Committee
shall certify in writing whether the applicable performance target has been
achieved for such fiscal year or other designated fiscal period. In determining
the amount earned by a Section 162(m) participant, the Committee shall have the
right to reduce (but not to increase) the amount payable at a given level of
performance to take into account additional factors that the Committee may deem
relevant to the assessment of individual or corporate performance for the fiscal
year or other designed fiscal period.

         7.       Withholding of Taxes
                  --------------------

                  (a) Required Withholding. All Grants under the Plan shall be
subject to applicable federal (including FICA), state and local tax withholding
requirements. The Company shall have the right to deduct from all Grants paid in
cash, or from other wages paid to the Grantee, any federal, state or local taxes
required by law to be withheld with respect to such Grants. In the case of
Options and other Grants paid in Company Stock, the Company may require the
Grantee or other person receiving such shares to pay to the Company the amount
of any such taxes that the Company is required to withhold with respect to such
Grants, or the Company may deduct from other wages paid by the Company the
amount of any withholding taxes due with respect to such Grants.

                                       10
<PAGE>

                  (b) Election to Withhold Shares. If the Committee so permits,
a Grantee may elect to satisfy the Company's income tax withholding obligation
with respect to an Option or Restricted Stock paid in Company Stock by having
shares withheld up to an amount that does not exceed the Grantee's maximum
marginal tax rate for federal (including FICA), state and local tax liabilities.
The election must be in a form and manner prescribed by the Committee and shall
be subject to the prior approval of the Committee.

         8.       Transferability of Grants
                  -------------------------

                  (a) Nontransferability of Grants. Except as provided below,
only the Grantee may exercise rights under a Grant during the Grantee's
lifetime. A Grantee may not transfer those rights except by will or by the laws
of descent and distribution or, with respect to Grants other than Incentive
Stock Options, and then only if and to the extent permitted in any specific case
by the Committee, pursuant to a domestic relations order (as defined under the
Code or Title I of the Employee Retirement Income Security Act of 1974, as
amended, or the regulations there under). When a Grantee dies, the personal
representative or other person entitled to succeed to the rights of the Grantee
("Successor Grantee") may exercise such rights. A Successor Grantee must furnish
proof satisfactory to the Company of his or her right to receive the Grant under
the Grantee's will or under the applicable laws of descent and distribution.

                  (b) Transfer of Nonqualified Stock Options. Notwithstanding
the foregoing, the Committee may provide, in a Grant Instrument, that a Grantee
may transfer Nonqualified Stock Options to family members or other persons or
entities according to such terms as the Committee may determine; provided that
the Grantee receives no consideration for the transfer of an Option and the
transferred Option shall continue to be subject to the same terms and conditions
as were applicable to the Option immediately before the transfer.

         9.       Reorganization of the Company.
                  -----------------------------

                  (a) Reorganization. As used herein, a "Change of Control"
shall be deemed to have occurred upon the consummation of any of the following
transactions: (i) any merger or consolidation of the Company or other
transaction (other than sales of equity by the Company for the purpose of
raising cash for its own account) where the shareholders of the Company
immediately prior to such transaction will not beneficially own immediately
after such transaction shares entitling such shareholders to more than 50% of
all votes to which all shareholders of the surviving corporation would be
entitled in the election of directors (without consideration of the rights of
any class of stock to elect directors by a separate class vote); or (ii) the
sale or other disposition of all or substantially all of the assets of the
Company.

                  (b) Assumption of Grants. Upon a Change of Control where the
Company is not the surviving corporation (or survives only as a subsidiary of
another corporation), the Company shall provide that either (i) all outstanding
Options that are not exercised shall be assumed by, or replaced with comparable
options or rights by, the surviving corporation, (ii) the Company or the
surviving company shall pay to each Grantee an amount equal to the product of
(x) the number of Options then vested and exercisable, multiplied by (ii) the
Fair Market Value per share less the Exercise Price per Option, or (iii) the
Committee may, in its sole discretion, accelerate the vesting of some or all of
the Grants.

                                       11
<PAGE>

                  (c) Notice and Acceleration. Upon a Change of Control, the
Company shall provide each Grantee who has outstanding Grants with written
notice of such Change of Control. The Committee may, in its sole discretion,
provide in a Grant Instrument that upon a Change of Control (i) all outstanding
Options shall automatically accelerate and become fully exercisable, and (ii)
the restrictions and conditions on all outstanding Restricted Stock shall
immediately lapse. If the Committee does not provide such terms in the Grant
Instrument, a Change of Control will not impact a Grant.

         10. Limitations on Issuance or Transfer of Shares. No Company Stock
shall be issued or transferred in connection with any Grant hereunder unless and
until all legal requirements applicable to the issuance or transfer of such
Company Stock have been complied with to the satisfaction of the Committee. The
Committee shall have the right to condition any Grant made to any Grantee
hereunder on such Grantee's undertaking in writing to comply with such
restrictions on his or her subsequent disposition of such shares of Company
Stock as the Committee shall deem necessary or advisable as a result of any
applicable law, regulation or official interpretation thereof, and certificates
representing such shares may be legended to reflect any such restrictions.
Certificates representing shares of Company Stock issued or transferred under
the Plan will be subject to such stop-transfer orders and other restrictions as
may be required by applicable laws, regulations and interpretations, including
any requirement that a legend be placed thereon.

         11.      Amendment and Termination of the Plan

                  (a) Amendment. The Board may amend or terminate the Plan at
any time; provided, however, that the Board shall not amend the Plan without
shareholder approval if such approval is required by Section l62(m) of the Code.

                  (b) Termination of Plan. The Plan shall terminate on the day
immediately preceding the tenth anniversary of its effective date, unless the
Plan is terminated earlier by the Board or is extended by the Board with the
approval of the shareholders.

                  (c) Termination and Amendment of Outstanding Grants. A
termination or amendment of the Plan that occurs after a Grant is made shall not
materially impair the rights of a Grantee unless the Grantee consents. The
termination of the Plan shall not impair the power and authority of the
Committee with respect to an outstanding Grant. Whether or not the Plan has
terminated, an outstanding Grant may be terminated or amended in accordance with
the Plan or, may be amended by agreement of the Company and the Grantee
consistent with the Plan.

                  (d) Governing  Document.  The Plan shall be the controlling
document. No other statements, representations, explanatory materials or
examples, oral or written, may amend the Plan in any manner. The Plan shall be
binding upon and enforceable against the Company and its successors and assigns.

         12. Funding of the Plan. This Plan shall be unfunded. The Company shall
not be required to establish any special or separate fund or to make any other
segregation of assets to assure the payment of any Grants under this Plan. In no
event shall interest be paid or accrued on any Grant, including unpaid
installments of Grants.

         13. Rights of Participants. Nothing in this Plan shall entitle any
Employee, Key Advisor or other person to any claim or right to be granted a
Grant under this Plan. Neither this Plan nor any action taken hereunder shall be
construed as giving any individual any rights to be retained by or in the employ
of the Company or any other employment rights.

                                       12
<PAGE>

         14. No Fractional Shares. No fractional shares of Company Stock shall
be issued or delivered pursuant to the Plan or any Grant. The Committee shall
determine whether cash, other awards or other property shall be issued or paid
in lieu of such fractional shares or whether such fractional shares or any
rights thereto shall be forfeited or otherwise eliminated.

         15. Headings.  Section headings are for reference only. In the event
of a conflict between a title and the content of a Section, the content of the
Section shall control.

         16.      Effective Date of the Plan.
                  --------------------------

                  (a)      Effective Date.  Subject to the approval of the
Company's shareholders, the Plan shall be effective as of June 1, 2000.

                  (b) Public Offering. The provisions of the Plan that refer to
a Public Offering, or that refer to, or are applicable to persons subject to,
section 16 of the Exchange Act or section 162(m) of the Code, shall be effective
for so long as such stock is so registered.

         17.      Miscellaneous

                  (a) Grants in Connection with Corporate Transactions and
Otherwise. Nothing contained in this Plan shall be construed to (i) limit the
right of the Committee to make Grants under this Plan in connection with the
acquisition, by purchase, lease, merger, consolidation or otherwise, of the
business or assets of any corporation, firm or association, including Grants to
employees thereof who become Employees of the Company, or for other proper
corporate purposes, or (ii) limit the right of the Company to grant stock
options or make other awards outside of this Plan. Without limiting the
foregoing, the Committee may make a Grant to an employee of another corporation
who becomes an Employee by reason of a corporate merger, consolidation,
acquisition of stock or property, reorganization or liquidation involving the
Company or any of its subsidiaries in substitution for a stock option or
restricted stock grant made by such corporation. The terms and conditions of the
substitute grants may vary from the terms and conditions required by the Plan
and from those of the substituted stock incentives. The Committee shall
prescribe the provisions of the substitute grants.

                  (b) Loans. The Committee may, in its discretion, extend a loan
in connection with the exercise or receipt of a grant under this Plan. The terms
and conditions of any such loan shall be set by the Committee.

                                       13
<PAGE>

                  (c) Compliance with Law. The Plan, the exercise of Options and
the obligations of the Company to issue or transfer shares of Company Stock
under Grants shall be subject to all applicable laws and to approvals by any
governmental or regulatory agency as may be required. With respect to persons
subject to section 16 of the Exchange Act, it is the intent of the Company that
the Plan and all transactions under the Plan comply with all applicable
provisions of Rule 16b-3 or its successors under the Exchange Act. The Committee
may revoke any Grant if it is contrary to law or modify a Grant to bring it into
compliance with any valid and mandatory government regulation. The Committee may
also adopt rules regarding the withholding of taxes on payments to Grantees. The
Committee may, in its sole discretion, agree to limit its authority under this
Section.

                  (d) Governing Law. The validity, construction, interpretation
and effect of the Plan and Grant Instruments issued under the Plan shall
exclusively be governed by and determined in accordance with the law of the
State of Florida, without regard to conflicts of laws principles.

         Dated as of October 10, 2000.

                                       HBOA HOLDINGS, INC.

                                       By: /s/ Edward A. Saludes
                                           -------------------------------------
                                           Edward A. Saludes
                                           President and Chief Executive Officer

                                       14

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