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Exhibit 10.12

BOWNE & CO., INC.


2000 Stock Incentive Plan


1.  Purpose.The
purpose of this 2000 Stock Incentive Plan (the Plan)
of Bowne & Co., Inc., a Delaware corporation (the
Company), is to advance the interests of the Company
and its stockholders by providing a means to attract, retain and
reward employees of the Company and its subsidiaries,
non-employee directors of the Company, and consultants and other
persons who provide substantial services to the Company or its
subsidiaries, to link compensation to measures of the
Companys performance in order to provide additional
stock-based incentives to such persons for the creation of
stockholder value, and to enable such persons to acquire or
increase a proprietary interest in the Company in order to
promote a closer identity of interests between such persons and
the Companys stockholders.

2.  Definitions.For
purposes of the Plan, the following terms shall be defined as
set forth below, in addition to the terms defined in
Section 1 and elsewhere in the Plan:



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
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| | (a) Award means any Option, SAR
    (including Limited SAR), Restricted Stock, Deferred Stock, Stock
    granted as a bonus or in lieu of another award, Dividend
    Equivalent, Other Stock-Based Award, or Performance Award,
    together with any related right to interest, granted to a
    Participant under the Plan.                                                                                                                                                                                                                                               
|
| | (b) Beneficiary means the
    person, persons, trust or trusts which have been designated by a
    Participant in his or her most recent written beneficiary
    designation filed with the Committee to receive the benefits
    specified under the Plan upon such Participants death. If,
    upon a Participants death, there is no designated
    Beneficiary or surviving designated Beneficiary, then the term
    Beneficiary means the person, persons, trust or trusts entitled
    by will or the laws of descent and distribution to receive such
    benefits.
|
| | (c) Board means the
    Companys Board of Directors.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
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| | (d) Change in Control and
    related terms have the meanings specified in Section 8.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
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| | (e) Code means the Internal
    Revenue Code of 1986, as amended from time to time, including
    regulations thereunder and successor provisions and regulations
    thereto.                                                                                                                                                                                                                                                                                                                                                                                               
|
| | (f) Committee means a committee
    of two or more directors designated by the Board to administer
    the Plan; provided, however, that directors appointed as members
    of the Committee shall not be employees of the Company or any
    subsidiary. Initially, the Compensation Committee of the Board
    shall be the Committee hereunder. The foregoing notwithstanding,
    the term Committee shall refer to the full Board in
    any case in which it is performing any function of the Committee
    under the Plan.                                         
|
| | (g) Deferred Stock means a
    right, granted to a Participant under Section 6(e), to receive
    Stock, cash or a combination thereof at the end of a specified
    deferral period.                                                                                                                                                                                                                                                                                                                                                                                        
|
| | (h) Dividend Equivalent means a
    right, granted to a Participant under Section 6(g), to receive
    cash, Stock, other Awards or other property equal in value to
    dividends paid with respect to a specified number of shares of
    Stock, or other periodic payments.                                                                                                                                                                                                                                                                                               
|
| | (i) Effective Date means
    the effective date specified in Section 10(n).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
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| | (j) Eligible Person has the
    meaning specified in Section 5.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
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| | (k) Exchange Act means the
    Securities Exchange Act of 1934, as amended from time to time,
    including rules thereunder and successor provisions and rules
    thereto.                                                                                                                                                                                                                                                                                                                                                                                                 
|
| | (l) Fair Market Value means the
    fair market value of Stock, Awards or other property as
    determined by the Committee or under procedures established by
    the Committee. Unless otherwise determined by the Committee, the
    Fair Market Value of Stock shall be the mean between the highest                                                                                                                                                                                                                                                                     





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| | and lowest sales prices reported on a composite
    basis for securities traded on the principal securities exchange
    or automated quotation system on which the Stock is then traded,
    on the date for which the determination is made or, if there was
    no trade reported for that date or the Committee so directs, on
    the latest date for which a trade was reported.
|
| | (m) Limited SAR means a right
    granted to a Participant under Section 6(c).                                                                                                                                                                                                                                                                                                      
|
| | (n) Option means a right,
    granted to a Participant under Section 6(b), to purchase
    Stock or other Awards at a specified price during specified time
    periods. All options granted under the Plan will be
    non-qualified stock options.                                                                                                                                
|
| | (o) Other Stock-Based Awards
    means Awards granted to a Participant under Section 6(h).                                                                                                                                                                                                                                                                                          
|
| | (p) Participant means a person
    who has been granted an Award under the Plan which remains
    outstanding, including a person who is no longer an Eligible
    Person.                                                                                                                                                                                                          
|
| | (q) Performance Award means a
    right, granted to a Participant under Section 6(i), to
    receive Awards or payments based upon performance criteria
    specified by the Committee.                                                                                                                                                                                             
|
| | (r) Restricted Stock means Stock
    granted to a Participant under Section 6(d) which is
    subject to certain restrictions and to a risk of forfeiture.                                                                                                                                                                                                                          
|
| | (s) Rule 16b-3 means Rule 16b-3,
    as from time to time in effect and applicable to the Plan and
    Participants, promulgated by the Securities and Exchange
    Commission under Section 16 of the Exchange Act.                                                                                                                                                                
|
| | (t) Stock means the
    Companys Common Stock, par value $.01 per share, and such
    other securities as may be substituted (or resubstituted) for
    Stock pursuant to Section 10(c).                                                                                                                                                                                           
|
| | (u) Stock Appreciation Rights or
    SAR means a right granted to a Participant under
    Section 6(c).                                                                                                                                                                                                                                                                           

3.  Administration.



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| | (a) Authority of the Committee. The
    Plan shall be administered by the Committee, which shall have
    full and final authority, in each case subject to and consistent
    with the provisions of the Plan, to select Eligible Persons to
    become Participants; to grant Awards; to determine the type and
    number of Awards, the dates on which Awards may be exercised and
    on which the risk of forfeiture or deferral period relating to
    Awards shall lapse or terminate, the acceleration of any such
    dates, the expiration date of any Award, whether, to what
    extent, and under what circumstances an Award may be settled, or
    the exercise price of an Award may be paid, in cash, Shares,
    other Awards or other property, and other terms and conditions
    of, and all other matters relating to, Awards; to prescribe
    documents evidencing or setting terms of Awards (such Award
    documents need not be identical for each Participant) and rules
    and regulations for the administration of the Plan; to construe
    and interpret the Plan and Award documents and correct defects,
    supply omissions or reconcile inconsistencies therein; and to
    make all other decisions and determinations as the Committee may
    deem necessary or advisable for the administration of the Plan.
    Decisions of the Committee with respect to the administration
    and interpretation of the Plan shall be final, conclusive, and
    binding upon all persons interested in the Plan, including
    Participants, Beneficiaries, transferees under Section 10(b) and
    other persons claiming rights from or through a Participant, and
    stockholders. The foregoing notwithstanding, the Board shall
    perform the functions of the Committee for purposes of granting
    Awards under the Plan to non-employee directors, and the Board
    otherwise may perform any function of the Committee under the
    Plan, including for the purpose of ensuring that transactions
    under the Plan by Participants who are then subject to Section
    16 of the Exchange Act in respect of the Company are exempt
    under Rule 16b-3.
|
| | (b) Manner of Exercise of Committee
    Authority.Any action relating to an Award which the
    Committee intends to be exempt under Rule 16b-3(d) may be taken
    by (A) a subcommittee, designated by the Board or the Committee,
    composed solely of two or more members who are Non-                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               

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| | Employee Directors as defined in Rule
    16b-3(b) or (B) by the Committee but with each such member who
    is not then a Non-Employee Director abstaining or
    recusing himself or herself from such action, provided that,
    upon such abstention or recusal, the Committee remains composed
    of two or more Non-Employee Directors. Action
    authorized in such manner shall be the action of the Committee
    for purposes of the Plan. The express grant of any specific
    power to the Committee, and the taking of any action by the
    Committee, shall not be construed as limiting any power or
    authority of the Committee. The Committee may delegate to
    officers or managers of the Company or any subsidiary, or
    committees thereof, the authority, subject to such terms as the
    Committee shall determine, to perform such functions, including
    administrative functions, as the Committee may determine, to the
    extent that such delegation will not result in the loss of an
    exemption under Rule 16b-3(d) for Awards granted to Participants
    subject to Section 16 of the Exchange Act in respect of the
    Company. The Committee may appoint agents to assist it in
    administering the Plan.
|
| | (c) Limitation of Liability.The
    Committee and each member thereof shall be entitled to, in good
    faith, rely or act upon any report or other information
    furnished to him or her by any executive officer, other officer
    or employee of the Company or a subsidiary, the Companys
    independent auditors, consultants or any other agents assisting
    in the administration of the Plan. Members of the Committee and
    any officer or employee of the Company or a subsidiary acting at
    the direction or on behalf of the Committee shall not be
    personally liable for any action or determination taken or made
    in good faith with respect to the Plan, and shall, to the extent
    permitted by law, be fully indemnified and protected by the
    Company with respect to any such action or determination.                                                                                                                                                                                                                                                                                                                                                                                                                    

4.  Stock Subject to Plan.



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| | (a) Overall Number of Shares Available
    for Delivery.Subject to adjustment as provided in Section
    10(c), the total number of shares of Stock reserved and
    available for delivery in connection with Awards under the Plan
    shall be 3,000,000. Such shares shall consist of treasury
    shares, provided, however, that the Committee may determine that
    shares to be delivered in connection with Awards granted to a
    person other than a director, officer or owner of five percent
    of an outstanding class of equity securities of the Company
    shall instead be authorized but unissued shares. For this
    purpose, the term officer has the meaning defined in
    Section 312.04(g) the New York Stock Exchanges Listed
    Company Manual as in effect at the Effective Date.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|
| | (b) Share Counting Rules.The
    Committee may adopt reasonable counting procedures to ensure
    appropriate counting, avoid double counting (as, for example, in
    the case of tandem or substitute awards) and make adjustments if
    the number of shares of Stock actually delivered differs from
    the number of shares previously counted in connection with an
    Award. Shares of Stock subject to an Award under the Plan that
    is canceled, expired, forfeited, settled in cash or otherwise
    terminated without a delivery of shares to the Participant will
    again be available for Awards under the Plan, and shares
    withheld in payment of the exercise price or taxes relating to
    any Award, and a number of shares equal to the number
    surrendered in payment of any exercise price or taxes relating
    to any such Award or award, shall likewise be deemed to
    constitute Shares not delivered to the Participant and shall be
    deemed to again be available for Awards under the Plan. In
    addition, in the case of any Award granted in substitution for
    an award of a company or business acquired by the Company or a
    subsidiary, shares issued or issuable in connection with such
    substitute Award shall not be counted against the number of
    shares reserved under the Plan, but shall be deemed to be
    available under the Plan by virtue of the Companys
    assumption of the plan or arrangement of the acquired company or
    business.

5.  Eligibility; Per-Person Award
Limitations. Subject to the limitations set forth in
Section 4(a) and elsewhere in the Plan, Awards may be granted
under the Plan only to Eligible Persons. For purposes of the
Plan, an Eligible Person means an executive officer
of the Company, an employee of the Company or any subsidiary, a
non-employee director of the Company, a consultant or other
person who provides substantial services to the Company or a
subsidiary, and any person who has been offered employment by
the Company or a subsidiary, provided that such prospective
employee may not receive

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any payment or exercise any right relating to an
Award until such person has commenced employment with the
Company or a subsidiary. An employee on leave of absence may be
considered as still in the employ of the Company or a subsidiary
for purposes of eligibility for participation in the Plan.


6.  Specific Terms of
Awards.



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
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| | (a) General. Awards may be granted on
    the terms and conditions set forth in this Section 6. In
    addition, the Committee may impose on any Award or the exercise
    thereof, at the date of grant or thereafter (subject to
    Section 10(e)), such additional terms and conditions, not
    inconsistent with the provisions of the Plan, as the Committee
    shall determine, including terms requiring forfeiture of Awards
    in the event of termination of employment or service by the
    Participant and terms permitting a Participant to make elections
    relating to his or her Award. The Committee shall retain full
    power and discretion with respect to any term or condition of an
    Award that is not mandatory under the Plan.
|
| | (b) Options. The Committee is
    authorized to grant Options to Participants on the following
    terms and conditions:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           



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| | (i) Exercise Price. The exercise
    price per share of Stock purchasable under an Option shall be
    determined by the Committee on the date when such Option is
    granted, provided that such exercise price shall be not less
    than the Fair Market Value of a share of Stock on the date of
    grant of such Option.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|
| | (ii) Option Term; Time; and Method of
    Exercise. The Committee shall determine the term of each
    Option, provided that in no event shall the term exceed a period
    of ten years from the date of grant. The Committee shall
    determine the time or times at which or the circumstances under
    which an Option may be exercised in whole or in part (including
    based on achievement of performance goals and/or future service
    requirements), the methods by which such exercise price may be
    paid or deemed to be paid, the form of such payment, including,
    without limitation, cash, Stock, other Awards or awards granted
    under other plans of the Company or any subsidiary, by deducting
    shares of equal value from a final distribution or other
    property (including notes or other contractual obligations of
    Participants to make payment on a deferred basis, such as
    through cashless exercise arrangements, to the
    extent permitted by applicable law), and the methods by or forms
    in which Stock will be delivered or deemed to be delivered to
    Participants.



| |                                                                                                                                        
| | ---------------------------------------------------------------------------------------------------------------------------------------
| | (c) Stock Appreciation Rights.The
    Committee is authorized to grant SARs to Participants on
    the following terms and conditions:



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (i) Right to Payment.An SAR shall
    confer on the Participant to whom it is granted a right to
    receive, upon exercise thereof, the excess of (A) the Fair
    Market Value of one share of Stock on the date of exercise over
    (B) the grant price of the SAR as determined by the
    Committee.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|
| | (ii) Other Terms.The Committee shall
    determine at the date of grant or thereafter, the time or times
    at which and the circumstances under which an SAR may be
    exercised in whole or in part (including based on achievement of
    performance goals and/or future service requirements), the
    method of exercise, method of settlement, form of consideration
    payable in settlement, method by or forms in which Stock will be
    delivered or deemed to be delivered to Participants, whether or
    not an SAR shall be in tandem or in combination with any other
    Award, and any other terms and conditions of any SAR. Limited
    SARs that may only be exercised in connection with a Change in
    Control or other event as specified by the Committee may be
    granted on such terms, not inconsistent with this Section 6(c),
    as the Committee may determine. SARs and Limited SARs may be
    either freestanding or in tandem with other Awards.



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| | -----------------------------------------------------------------------------------------------------------------------------------------
| | (d) Restricted Stock.The Committee
    is authorized to grant Restricted Stock to Participants on the
    following terms and conditions:

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| | (i) Grant and Restrictions.Restricted Stock shall be subject to such restrictions on
    transferability, risk of forfeiture and other restrictions, if
    any, as the Committee may impose, which restrictions may lapse
    separately or in combination at such times, under such
    circumstances (including based on achievement of performance
    goals and/or future service requirements), in such installments
    or otherwise, as the Committee may determine at the date of
    grant or thereafter. Except to the extent restricted under the
    terms of the Plan and any Award document relating to the
    Restricted Stock, a Participant granted Restricted Stock shall
    have all of the rights of a stockholder, including the right to
    vote the Restricted Stock and the right to receive dividends
    thereon (subject to any mandatory reinvestment or other
    requirement imposed by the Committee). During the restricted
    period applicable to the Restricted Stock, subject to
    Section 10(b) below, the Restricted Stock may not be sold,
    transferred, pledged, hypothecated, margined or otherwise
    encumbered by the Participant.
|
| | (ii) Forfeiture.Except as otherwise
    determined by the Committee, upon termination of employment or
    service during the applicable restriction period, Restricted
    Stock that is at that time subject to restrictions shall be
    forfeited and reacquired by the Company; provided that the
    Committee may provide, by rule or regulation or in any Award
    document, or may determine in any individual case, that
    restrictions or forfeiture conditions relating to Restricted
    Stock will lapse in whole or in part, including in the event of
    terminations resulting from specified causes.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|
| | (iii) Certificates for Stock.Restricted Stock granted under the Plan may be evidenced in
    such manner as the Committee shall determine. If certificates
    representing Restricted Stock are registered in the name of the
    Participant, the Committee may require that such certificates
    bear an appropriate legend referring to the terms, conditions
    and restrictions applicable to such Restricted Stock, that the
    Company retain physical possession of the certificates, and that
    the Participant deliver a stock power to the Company, endorsed
    in blank, relating to the Restricted Stock.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|
| | (iv) Dividends and Splits.As a
    condition to the grant of an Award of Restricted Stock, the
    Committee may require that any cash dividends paid on a share of
    Restricted Stock be automatically reinvested in additional
    shares of Restricted Stock or applied to the purchase of
    additional Awards under the Plan. Unless otherwise determined by
    the Committee, Stock distributed in connection with a Stock
    split or Stock dividend, and other property distributed as a
    dividend, shall be subject to restrictions and a risk of
    forfeiture to the same extent as the Restricted Stock with
    respect to which such Stock or other property has been
    distributed.                                                                                                                                                                                                                                                                                                                                                                                                                                                                            



| |                                                                                                                                                                                                                                                                         
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (e) Deferred Stock. The Committee is
    authorized to grant Deferred Stock to Participants, consisting
    of rights to receive Stock, cash, or a combination thereof at
    the end of a specified deferral period, subject to the following
    terms and conditions:



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
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| | (i) Award and Restrictions. Issuance
    of Stock will occur upon expiration of the deferral period
    specified for an Award of Deferred Stock by the Committee (or,
    if permitted by the Committee, as elected by the Participant).
    In addition, Deferred Stock shall be subject to such
    restrictions (which may include a risk of forfeiture) as the
    Committee may impose, if any, which restrictions may lapse at
    the expiration of the deferral period or at earlier specified
    times (including based on achievement of performance goals
    and/or future service requirements), separately or in
    combination, in installments or otherwise, and under such other
    circumstances as the Committee may determine. Deferred Stock may
    be satisfied by delivery of Stock, cash equal to the Fair Market
    Value of the specified number of shares of Stock covered by the
    Deferred Stock, or a combination thereof, as determined by the
    Committee at the date of grant or thereafter.
|
| | (ii) Forfeiture. Except as otherwise
    determined by the Committee, upon termination of employment or
    service during the applicable deferral period or portion thereof
    to which forfeiture conditions apply (as provided in the Award
    document evidencing the Deferred Stock), all Deferred Stock that
    is at that time subject to deferral (other than a deferral at
    the election of                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             

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| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
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| | the Participant) shall be forfeited; provided
    that the Committee may provide, by rule or regulation or in any
    Award document, or may determine in any individual case, that
    restrictions or forfeiture conditions relating to Deferred Stock
    will lapse in whole or in part, including in the event of
    terminations resulting from specified causes.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|
| | (iii) Dividend Equivalents. Unless
    otherwise determined by the Committee on the date of grant,
    Dividend Equivalents on the specified number of shares of Stock
    covered by an Award of Deferred Stock shall be either
    (A) paid with respect to such Deferred Stock at the
    dividend payment date in cash or in shares of unrestricted Stock
    having a Fair Market Value equal to the amount of such
    dividends, or (B) deferred with respect to such Deferred
    Stock and the amount or value thereof automatically deemed
    reinvested in additional Deferred Stock, other Awards or other
    investment vehicles, as the Committee shall determine; provided,
    however, that the Committee may permit a Participant to make
    elections relating to Dividend Equivalents if and to the extent
    that such elections will not result in the Participant being in
    constructive receipt of amounts otherwise intended to be subject
    to deferral for tax purposes.



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| | (f) Bonus Stock and Awards in Lieu of
    Obligations. The Committee is authorized to grant Stock as a
    bonus, or to grant Stock or other Awards in lieu of obligations
    of the Company or a subsidiary to pay cash or deliver other
    property under the Plan or under other plans or compensatory
    arrangements. Stock or Awards granted hereunder shall be subject
    to such other terms as shall be determined by the Committee. In
    the case of any grant of Stock to an officer or non-employee
    director of the Company in lieu of salary, fees or other cash
    compensation, the number of shares granted in place of such
    compensation shall be reasonable, as determined by the Committee.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|
| | (g) Dividend Equivalents. The
    Committee is authorized to grant Dividend Equivalents to a
    Participant, entitling the Participant to receive cash, Stock,
    other Awards, other property equal in value to dividends paid
    with respect to a specified number of shares of Stock, or other
    periodic payments. Dividend Equivalents may be awarded on a
    free-standing basis or in connection with another Award. The
    Committee may provide that Dividend Equivalents shall be paid or
    distributed when accrued or shall be deemed to have been
    reinvested in additional Stock, Awards or other investment
    vehicles, and subject to such restrictions on transferability
    and risks of forfeiture as the Committee may specify.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|
| | (h) Other Stock-Based and Cash Awards.The Committee is authorized, subject to limitations under
    applicable law, to grant to Participants such other Awards as
    may be denominated or payable in, valued in whole or in part by
    reference to, or otherwise based on, or related to, Stock or
    factors that may influence the value of Stock, as deemed by the
    Committee to be consistent with the purposes of the Plan,
    including, without limitation, convertible or exchangeable debt
    securities, other rights convertible or exchangeable into Stock,
    purchase rights for Stock, Awards with value and payment
    contingent upon performance of the Company or any other factors
    designated by the Committee, and Awards valued by reference to
    the book value of Stock or the value of securities of or the
    performance of specified subsidiaries. The Committee shall
    determine the terms and conditions of such Awards. Stock
    delivered pursuant to an Award in the nature of a purchase right
    granted under this Section 6(h) shall be purchased for such
    consideration, paid for at such times, by such methods, and in
    such forms, including, without limitation, cash, Stock, other
    Awards or other property, as the Committee shall determine. Cash
    awards, as an element of or supplement to any other Award under
    the Plan, may also be granted pursuant to this Section 6(h).
|
| | (i) Performance Awards.The Committee
    is authorized to grant Performance Awards to Participants.
    Performance Awards may be denominated as a number of shares of
    Stock, shares of Stock having a specified cash value at a future
    date, or a number of other Awards (or a combination) which may
    be earned upon achievement or satisfaction of performance
    conditions specified by the Committee. In addition, the
    Committee may specify that any other Award shall constitute a
    Performance Award by conditioning the right of a Participant to
    exercise the Award or have it settled, and the timing thereof,
    upon achievement or satisfaction of such performance conditions
    as may be                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

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##### 



| |                                                                                                                                                                                                                                                                                                                                   
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | specified by the Committee. The Committee may use
    such business criteria and other measures of performance as it
    may deem appropriate in establishing any performance conditions,
    and may exercise its discretion to reduce or increase the
    amounts payable under any Award subject to performance
    conditions.

7.  Certain Provisions Applicable
to Awards.



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (a) Stand-Alone, Additional, Tandem, and
    Substitute Awards. Awards granted under the Plan may, in the
    discretion of the Committee, be granted either alone or in
    addition to, in tandem with, or in substitution or exchange for,
    any other Award or any award granted under another plan of the
    Company, any subsidiary, or any business entity to be acquired
    by the Company or a subsidiary, or any other right of a
    Participant to receive payment from the Company or any
    subsidiary. Awards granted in addition to or in tandem with
    other Awards or awards may be granted either as of the same time
    as or a different time from the grant of such other Awards or
    awards. If so determined by the Committee, the in-the-money
    value of any surrendered Award or award may be applied to reduce
    the exercise price of any Option, grant price of any SAR, or
    purchase price of any other Award conferring a right to purchase
    Stock, at the time of grant or exercise.                                                                                                                                                                                                                                                                                                                                                                                                                                       
|
| | (b) Term of Awards.The term of each
    Award shall be for such period as may be determined by the
    Committee, subject to the express limitations set forth in
    Section 6(b)(ii) and elsewhere in the Plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|
| | (c) Form and Timing of Payment under
    Awards; Deferrals.Subject to the terms of the Plan and any
    applicable Award document, payments to be made by the Company or
    a subsidiary upon the exercise of an Option or other Award or
    settlement of an Award may be made in such forms as the
    Committee shall determine, including, without limitation, cash,
    Stock, other Awards or other property, and may be made in a
    single payment or transfer, in installments, or on a deferred
    basis. The settlement of any Award may be accelerated, and cash
    paid in lieu of Stock in connection with such settlement, in the
    discretion of the Committee or upon occurrence or one or more
    specified events (in addition to a Change in Control).
    Installment or deferred payments may be required by the
    Committee (subject to Section 10(e) of the Plan, including
    the consent provisions thereof in the case of any deferral of an
    outstanding Award not provided for in the original Award
    document) or permitted at the election of the Participant on
    terms and conditions established by the Committee. Payments may
    include, without limitation, provisions for the payment or
    crediting of reasonable interest on installment or deferred
    payments or the grant or crediting of Dividend Equivalents or
    other amounts in respect of installment or deferred payments
    denominated in Stock.
|
| | (d) Exemptions from Section 16(b)
    Liability. With respect to a Participant who is then subject
    to the reporting requirements of Section 16(a) of the
    Exchange Act in respect of the Company, the Committee shall
    implement transactions under the Plan and administer the Plan in
    a manner that will ensure that each transaction by such a
    Participant is exempt from liability under Rule 16b-3,
    except that this provision shall not limit sales by such a
    Participant, and such a Participant may engage in other
    non-exempt transactions under the Plan. The Committee may
    authorize the Company to repurchase any Award or shares of Stock
    resulting from any Award in order to prevent a Participant who
    is subject to Section 16 of the Exchange Act from incurring
    liability under Section 16(b). Unless otherwise specified
    by the Participant, equity securities or derivative securities
    acquired under the Plan which are disposed of by a Participant
    shall be deemed to be disposed of in the order acquired by the
    Participant.                                                                                                                                                                                                                                                                                                                                                             
|
| | (e) Loan Provisions. With the consent
    of the Committee, and subject at all times to, and only to the
    extent, if any, permitted under and in accordance with, laws and
    regulations and other binding obligations or provisions
    applicable to the Company (including applicable margin
    regulations), the Company may make, guarantee, or arrange for a
    loan or loans to a Participant with respect to the exercise of
    any Option or other payment in connection with any Award,
    including the payment by a Participant of any or all federal,
    state, or local income or other taxes due in connection with any
    Award. Subject to such limitations, the Committee shall have
    full authority to decide whether to                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       

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##### 



| |                                                                                                                                                                                                                                                                                                                                                                                                                           
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | make a loan or loans hereunder and to determine
    the amount, terms, and provisions of any such loan or loans,
    including the interest rate to be charged in respect of any such
    loan or loans, whether the loan or loans are to be with or
    without recourse against the borrower, the terms on which the
    loan is to be repaid and conditions, if any, under which the
    loan or loans may be forgiven.

8.  Change in Control.



| |                                                                                                                                                                            
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (a) Effect of Change in
    Control. In the event of a Change in
    Control, the following provisions shall apply unless
    otherwise provided in the Award document:



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (i) Any Award carrying a right to exercise
    that was not previously exercisable and vested shall become
    fully exercisable and vested as of the time of the Change in
    Control and shall remain exercisable and vested for the balance
    of the stated term of such Award without regard to any
    termination of employment or service by the Participant, subject
    only to applicable restrictions set forth in Section 10(a);
|
| | (ii) The restrictions, deferral of
    settlement, and forfeiture conditions applicable to any other
    Award granted under the Plan shall lapse and such Awards shall
    be deemed fully vested as of the time of the Change in Control,
    except to the extent of any waiver by the Participant and
    subject to applicable restrictions set forth in
    Section 10(a); and                                                           
|
| | (iii) With respect to any outstanding Award
    subject to achievement of performance goals and conditions under
    the Plan, such performance goals and other conditions will be
    deemed to be met if and to the extent so provided by the
    Committee in the Award document relating to such Award or other
    agreement with the Participant.                                                                                        



| |                                                                                                          
| | ---------------------------------------------------------------------------------------------------------
| | (b) Definition of Change in
    Control. A Change in Control shall be
    deemed to have occurred if:



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (i) a change is proposed by the stockholders
    of the Company as to the number of members, or incumbent
    membership of the Companys Board of Directors such that
    the incumbent members of said Board of Directors immediately
    prior to such change would no longer constitute at least a
    majority of the Board of Directors after such change, and such
    proposal is enacted; or the Board of Directors as constituted
    immediately prior to any action by the Companys
    stockholders with respect to such proposal determines that such
    proposal, if enacted, would constitute a change in control of
    the Company, and such proposal is enacted;                                                                                                                                                              
|
| | (ii) any determination is made by the Board
    of Directors of the Company that there has been a change in the
    control of the Company because a person (as such term is used in
    Section 13(d) of the Exchange Act), together with such
    persons affiliates (as such term is defined in
    Rule 12b-2 of the General Rules and Regulations under the
    Exchange Act), has become, at any date after the effective date
    of the Plan, and is not on the date hereof, the beneficial owner
    (as such term is defined in Rule 13d-3 of the General Rules
    and Regulations under the Exchange Act), directly or indirectly
    of 10% or more of the voting power of the Companys then
    outstanding securities;                                                                                                            
|
| | (iii) any person (other than (x) any
    employee stock ownership trust or similar entity created by the
    Company for the benefit of its employees, (y) an
    underwriter participating in a public offering of stock of the
    Company or (z) an entity owned by the Companys
    stockholders in substantially the same proportions as their
    ownership of stock of the Company prior to an acquisition of
    stock of the Company by such entity in connection with a
    reorganization), together with its affiliates, has become, at
    any date after the Effective Date, and is not on the date
    hereof, the beneficial owner, directly or indirectly, of 33% or
    more of the voting power of the Companys then outstanding
    securities entitled generally to vote for the election of the
    Companys directors; or
|
| | (iv) the approval by the stockholders of the
    Company of (i) the sale of all or substantially all the
    assets of the Company, (ii) a liquidation of the Company or
    (iii) the merger or                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

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##### 



| |                                                                                                                                                                                                                                                                                                                                                                                                                       
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | consolidation of the Company with any other
    Company, unless the incumbent members of the Board of Directors
    of the Company as constituted immediately prior to such merger
    or consolidation shall constitute at least a majority of the
    directors of the surviving parent (as such term is defined in
    Rule 12b-2 of the General Rules and Regulations under the
    Exchange Act) of such Company.



| |                                                                                                                                                                                                                                                                    
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Any determination of the occurrence of any Change
    in Control made in good faith by the Board of Directors of the
    Company, on the basis of information available at the time to
    it, shall be conclusive and binding for all purposes under the
    Plan.

9.  Additional Award Forfeiture
Provisions



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (a) Forfeiture of Options and Other
    Awards and Gains Realized Upon Prior Option Exercises.
    Unless otherwise determined by the Committee, each Award granted
    hereunder shall be subject to the following additional
    forfeiture conditions, to which each Participant who accepts an
    Award hereunder shall agree. If any of the events specified in
    Section 9(b)(i), (ii), or (iii) occurs (a Forfeiture
    Event), all of the following forfeitures will result:



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (i) The unexercised portion of the Option,
    whether or not vested, and any other Award not then settled
    (except for an Award that has not been settled solely due to an
    elective deferral by the Participant) will be immediately
    forfeited and cancelled upon the occurrence of the Forfeiture
    Event; and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|
| | (ii) The Participant will be obligated to
    repay to the Company, in cash, within five business days after
    demand is made therefor by the Company, the total amount of
    Option Gain (as defined herein) realized by Participant upon
    each exercise of an Option that occurred on or after
    (A) the date that is six months prior to the occurrence of
    the Forfeiture Event, if the Forfeiture Event occurred while
    Participant was employed by the Company or a subsidiary, or
    (B) the date that is six months prior to the date
    Participants employment by the Company or a subsidiary
    terminated, if the Forfeiture Event occurred after Participant
    ceased to be so employed. For purposes of this Section, the term
    Option Gain in respect of a given exercise shall
    mean the product of (X) the Fair Market Value per share of
    Stock at the date of such exercise (without regard to any
    subsequent change in the market price of shares) minus the
    exercise price times (Y) the number of shares as to which
    the Option was exercised at that date.



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) Events Triggering Forfeiture. The
    forfeitures specified in Section 9(a) will be triggered
    upon the occurrence of any one of the following Forfeiture
    Events at any time during Participants employment by the
    Company or a subsidiary or during the one-year period following
    termination of such employment (but not later than 18 months
    after the Award terminates or, in the case of an Option, is
    fully exercised):



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (i) Participant, acting alone or with
    others, directly or indirectly, prior to a Change in Control,
    (A) engages, either as employee, employer, consultant,
    advisor, or director, or as an owner, investor, partner, or
    stockholder unless the Participants interest is
    insubstantial, in any business in an area or region in which the
    Company conducts business at the date the event occurs, which is
    directly in competition with a business then conducted by the
    Company or a subsidiary; (B) induces any customer or
    supplier of the Company or a subsidiary with whom Participant
    has had contacts or relationships, directly or indirectly,
    during and within the scope of his employment with the Company
    or any subsidiary, to curtail, cancel, not renew, or not
    continue his or her or its business with the Company or any
    subsidiary; or (C) induces, or attempts to influence, any
    employee of or service provider to the Company or a subsidiary
    to terminate such employment or service. The Committee shall, in
    its discretion, determine which lines of business the Company
    conducts on any particular date and which third parties may
    reasonably be deemed to be in competition with the Company. For
    purposes of this Section 9(b)(i), a Participants
    interest as a stockholder is insubstantial if it represents
    beneficial ownership of less than five percent of the
    outstanding class of stock, and a Participants interest

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##### 



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | as an owner, investor, or partner is
    insubstantial if it represents ownership, as determined by the
    Committee in its discretion, of less than five percent of the
    outstanding equity of the entity;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|
| | (ii) Participant discloses, uses, sells, or
    otherwise transfers, except in the course of employment with or
    other service to the Company or any subsidiary, any proprietary
    information of the Company or any subsidiary so long as such
    information has not otherwise been disclosed to the public or is
    not otherwise in the public domain, except as required by law or
    pursuant to legal process, or Participant makes statements or
    representations, or otherwise communicates, directly or
    indirectly, in writing, orally, or otherwise, or takes any other
    action which may, directly or indirectly, disparage or be
    damaging to the Company or any of its subsidiaries or affiliates
    or their respective officers, directors, employees, advisors,
    businesses or reputations, except as required by law or pursuant
    to legal process; or
|
| | (iii) Participant fails to cooperate with
    the Company or any subsidiary by making himself or herself
    available to testify on behalf of the Company or such subsidiary
    in any action, suit, or proceeding, whether civil, criminal,
    administrative, or investigative, or otherwise fails to assist
    the Company or any subsidiary in any such action, suit, or
    proceeding by providing information and meeting and consulting
    with members of management of, other representatives of, or
    counsel to, the Company or such subsidiary, as reasonably
    requested.                                                                                                                                                                                                                                                                                                    



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (c) Agreement Does Not Prohibit
    Competition or Other Participant Activities.Although the
    conditions set forth in this Section 9 are deemed to be
    incorporated into an Award, a Participant is not thereby
    prohibited from engaging in any activity, including but not
    limited to competition with the Company and its subsidiaries.
    Rather, the non-occurrence of the Forfeiture Events set forth in
    Section 9(b) is a condition to Participants right to
    realize and retain value from his or her compensatory Options
    and Awards, and the consequence under the Plan if Participant
    engages in an activity giving rise to any such Forfeiture Event,
    which Forfeiture Events and activities are hereby acknowledged
    to be harmful to the Company, are the forfeitures specified
    herein. The Company and Participant shall not be precluded by
    this provision or otherwise from entering into other agreements
    concerning the subject matter of Section 9(a) and 9(b).
|
| | (d) Right of Setoff.Participant
    agrees that the Company or any subsidiary may, to the extent
    permitted by applicable law, deduct from and set off against any
    amounts the Company or a subsidiary may owe to Participant from
    time to time, including amounts owed as wages or other
    compensation, fringe benefits, or other amounts owed to
    Participant, such amounts as may be owed by Participant to the
    Company under Section 9(a), although Participant shall remain
    liable for any part of Participants payment obligation
    under Section 9(a) not satisfied through such deduction and
    setoff.                                                                                                                                                                                                                                                                                                                                                                                       
|
| | (e) Committee Discretion.The
    Committee may, in its discretion, waive in whole or in part the
    Companys right to forfeiture under this Section, but no
    such waiver shall be effective unless evidenced by a writing
    signed by a duly authorized officer of the Company. In addition,
    the Committee may impose additional conditions on Awards, by
    inclusion of appropriate provisions in the document evidencing
    any such Award.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         

10.  General Provisions.



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (a) Compliance with Legal and Other
    Requirements.The Company may, to the extent deemed
    necessary or advisable by the Committee, postpone the issuance
    or delivery of Stock or payment of other benefits under any
    Award until completion of such registration or qualification of
    such Stock or other required action under any federal or state
    law, rule or regulation, listing or other required action with
    respect to any stock exchange or automated quotation system upon
    which the Stock or other securities of the Company are listed or
    quoted, or compliance with any other obligation of the Company,
    as the Committee may consider appropriate, and may require any
    Participant to make such representations, furnish such
    information and comply with or be subject to such other
    conditions as it may consider appropriate in connection with the
    issuance or delivery of Stock or payment of other

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| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | benefits in compliance with applicable laws,
    rules, and regulations, listing requirements, or other
    obligations. The foregoing notwithstanding, in connection with a
    Change in Control, the Company shall take or cause to be taken
    no action, and shall undertake or permit to arise no legal or
    contractual obligation, that results or would result in any
    postponement of the issuance or delivery of Stock or payment of
    benefits under any Award or the imposition of any other
    conditions on such issuance, delivery or payment, to the extent
    that such postponement or other condition would represent a
    greater burden on a Participant than existed on the 90th day
    preceding the Change in Control.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|
| | (b) Limits on Transferability;
    Beneficiaries. No Award or other right or interest of a
    Participant under the Plan shall be pledged, hypothecated or
    otherwise encumbered or subject to any lien, obligation or
    liability of such Participant to any party (other than the
    Company or a subsidiary), or assigned or transferred by such
    Participant otherwise than by will or the laws of descent and
    distribution or to a Beneficiary upon the death of a
    Participant, and such Awards or rights that may be exercisable
    shall be exercised during the lifetime of the Participant only
    by the Participant or his or her guardian or legal
    representative, except that Awards and other rights may be
    transferred to one or more transferees during the lifetime of
    the Participant, and may be exercised by such transferees in
    accordance with the terms of such Award, but only if and to the
    extent such transfers are permitted by the Committee pursuant to
    the express terms of an Award document (subject to any terms and
    conditions which the Committee may impose thereon). A
    Beneficiary, transferee, or other person claiming any rights
    under the Plan from or through any Participant shall be subject
    to all terms and conditions of the Plan and any Award document
    applicable to such Participant, except as otherwise determined
    by the Committee, and to any additional terms and conditions
    deemed necessary or appropriate by the Committee.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|
| | (c) Adjustments. In the event that
    any dividend or other distribution (whether in the form of cash,
    Stock, or other property), recapitalization, forward or reverse
    split, reorganization, merger, consolidation, spin-off,
    combination, repurchase, share exchange, liquidation,
    dissolution or other similar corporate transaction or event
    affects the Stock such that an adjustment is determined by the
    Committee to be appropriate under the Plan, then the Committee
    shall, in such manner as it may deem equitable, adjust any or
    all of (i) the number and kind of shares of Stock which may
    be delivered in connection with Awards granted thereafter
    (including with respect to each specified limit under
    Section 5), (ii) the number and kind of shares of
    Stock subject to or deliverable in respect of outstanding Awards
    and (iii) the exercise price, grant price or purchase price
    relating to any Award or, if deemed appropriate, upon a Change
    in Control, the Committee may make provision for a cash payment
    to the holder of an outstanding Option in consideration for the
    cancellation of such Option in an amount equal to the excess, if
    any, of the amount of cash and fair market value of property
    that is the price per share paid in any transaction triggering
    the Change in Control over the per share exercise price of such
    Option, multiplied by the number of shares of Stock covered by
    such Option. In addition, the Committee is authorized to make
    adjustments in the terms and conditions of, and the criteria
    included in, Awards (including Performance Awards and
    performance goals, in recognition of unusual or nonrecurring
    events (including, without limitation, events described in the
    preceding sentence, as well as acquisitions and dispositions of
    businesses and assets) affecting the Company, any subsidiary or
    any business unit, or the financial statements of the Company or
    any subsidiary, or in response to changes in applicable laws,
    regulations, accounting principles, tax rates and regulations or
    business conditions or in view of the Committees
    assessment of the business strategy of the Company, any
    subsidiary or business unit thereof, performance of comparable
    organizations, economic and business conditions, personal
    performance of a Participant, and any other circumstances deemed
    relevant.
|
| | (d) Taxes. The Company and any
    subsidiary is authorized to withhold from any Award granted, any
    payment relating to an Award under the Plan, including from a
    distribution of Stock, or any payroll or other payment to a
    Participant, amounts of mandatory withholding and other taxes
    due or payable in connection with any transaction involving an
    Award, and to take such other action as                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            

- 11 -



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##### 



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | the Committee may deem advisable to enable the
    Company and Participants to satisfy obligations for the payment
    of withholding taxes and other tax obligations relating to any
    Award. This authority shall include authority to withhold or
    receive Stock or other property and to make cash payments in
    respect thereof in satisfaction of a Participants
    mandatory withholding obligations, either on a mandatory or
    elective basis in the discretion of the Committee. No authority
    to withhold is conferred under the Plan to the extent that,
    solely due to such authority, an Award would be accounted for as
    a variable award under APB 25.                                                                                                                                                                                                      
|
| | (e) Changes to the Plan.The Board
    may amend, suspend, or terminate the Plan or the
    Committees authority to grant Awards under the Plan
    without the consent of stockholders or Participants; provided,
    however, that, except in the case of adjustments authorized
    under Section 10(c), no amendment shall reduce the exercise
    price of any outstanding Option, grant price of any outstanding
    SAR, or purchase price of any other outstanding Award conferring
    a right to purchase Stock to an amount less than the Fair Market
    Value of a share at the date of grant of the outstanding award;
    and provided further that, without the consent of an affected
    Participant, no such Board action may materially and adversely
    affect the rights of such Participant under any outstanding
    Award.                                              
|
| | (f) Limitation on Rights Conferred under
    Plan.Neither the Plan nor any action taken hereunder shall
    be construed as (i) giving any Eligible Person or
    Participant the right to continue as an Eligible Person or
    Participant or in the employ or service of the Company or a
    subsidiary, (ii) interfering in any way with the right of
    the Company or a subsidiary to terminate any Eligible
    Persons or Participants employment or service at any
    time, (iii) giving an Eligible Person or Participant any
    claim to be granted any Award under the Plan or to be treated
    uniformly with other Participants and employees, or
    (iv) conferring on a Participant any of the rights of a
    stockholder of the Company unless and until the Participant is
    duly issued or transferred shares of Stock in accordance with
    the terms of an Award.
|
| | (g) Unfunded Status of Awards; Creation
    of Trusts.The Plan is intended to constitute an
    unfunded plan for incentive and deferred
    compensation. With respect to any payments not yet made to a
    Participant or obligation to deliver Stock pursuant to an Award,
    nothing contained in the Plan or any Award shall give any such
    Participant any rights that are greater than those of a general
    creditor of the Company; provided that the Committee may
    authorize the creation of trusts and deposit therein cash,
    Stock, other Awards or other property, or make other
    arrangements to meet the Companys obligations under the
    Plan. Such trusts or other arrangements shall be consistent with
    the unfunded status of the Plan unless the Committee
    otherwise determines with the consent of each affected
    Participant.             
|
| | (h) Nonexclusivity of the Plan.Neither the adoption of the Plan by the Board nor its
    submission to the stockholders of the Company for approval shall
    be construed as creating any limitations on the power of the
    Board or a committee thereof to adopt such other incentive
    arrangements as it may deem desirable including incentive
    arrangements and awards which do not qualify under Code Section
    162(m), including the granting of awards otherwise than under
    the Plan, and such arrangements may be either applicable
    generally or only in specific cases.                                                                                                                                                                                                                                                                                               
|
| | (i) Payments in the Event of Forfeitures;
    Fractional Shares.Unless otherwise determined by the
    Committee, in the event of a forfeiture of an Award with respect
    to which a Participant paid cash consideration, the Participant
    shall be repaid the amount of such cash consideration. No
    fractional shares of Stock shall be issued or delivered pursuant
    to the Plan or any Award. 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.                                                                                                                                                                                                                                 
|
| | (j) Compliance with Code Section 162(m).The Committee may require deferral of settlement of an Award
    on a mandatory basis or impose other conditions in order to
    prevent the loss of a tax deduction by the Company under
    Section 162(m) of the Code.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

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| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (k) Governing Law.The validity,
    construction and effect of the Plan, any rules and regulations
    under the Plan, and any Award document shall be determined in
    accordance with the Delaware General Corporation Law, the laws
    of the state of New York applicable to contracts made and to be
    performed in the State of New York, without regard to principles
    of conflicts of law, and applicable federal law.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|
| | (l) Certain Limitations Relating to
    Accounting Treatment of Awards.Other provisions of the Plan
    notwithstanding, the Committees authority under the Plan
    is limited to the extent necessary to ensure that any Option or
    other Award of a type that the Committee has intended to be
    subject to fixed accounting with a measurement date at the date
    of grant or the date performance conditions are satisfied under
    APB 25 shall not become subject to variable
    accounting solely due to the existence of such authority, unless
    the Committee specifically determines that the Award shall
    remain outstanding despite such variable accounting.
    Anything in the Plan to the contrary notwithstanding, if any
    right under this Plan would cause a transaction to be ineligible
    for pooling of interest accounting that would, but for the right
    hereunder, be eligible for such accounting treatment, the
    Committee may modify or adjust the right so that pooling of
    interest accounting shall be available, including the
    substitution of Stock having a Fair Market Value equal to the
    cash otherwise payable hereunder for the right which caused the
    transaction to be ineligible for pooling of interest accounting.
|
| | (m) Awards to Participants Outside the
    United States.The Committee may modify the terms of any
    Award under the Plan made to or held by a Participant who is
    then resident or primarily employed outside of the United States
    in any manner deemed by the Committee to be necessary or
    appropriate in order that such Award shall conform to laws,
    regulations, and customs of the country in which the Participant
    is then resident or primarily employed, or so that the value and
    other benefits of the Award to the Participant, as affected by
    foreign tax laws and other restrictions applicable as a result
    of the Participants residence or employment abroad, shall
    be comparable to the value of such an Award to a Participant who
    is resident or primarily employed in the United States. An Award
    may be modified under this Section 10(m) a manner that is
    inconsistent with the express terms of the Plan, so long as such
    modifications will not contravene any applicable law or
    regulation or result in actual liability under Section 16(b) for
    the Participant whose Award is modified.                                                                                                                             
|
| | (n) Plan Effective Date and Stockholder
    Approval.The Plan shall become effective on March 8,
    2000. Unless earlier terminated by action of the Board of
    Directors, the Plan will remain in effect until such time as no
    Stock remains available for delivery under the Plan and the
    Company has no further rights or obligations under the Plan with
    respect to outstanding Awards under the Plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

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