Exhibit 10.2

AMENDED AND RESTATED 
STORAGE TECHNOLOGY CORPORATION 
1995 EQUITY PARTICIPATION PLAN 
(As amended through December 2001)

SECTION I INTRODUCTION

1.1
Establishment. The Storage Technology Corporation (the Company) 1995 Equity
Participation Plan (the Original Plan) was effective as of March 8, 1995, the
date it was adopted by the Board of Directors (the Board) of the Company. The
Original Plan has been amended from time to time since the adoption date, in each instance
receiving stockholder approval when required. The Company has determined that, for sake of
clarity, it is advisable to incorporate all the amendments to the Original Plan into this
Amended and Restated 1995 Equity Participation Plan (the 1995 Plan).

Effective
as provided in Section 22, the Company hereby establishes a plan of long-term stock-based
compensation incentives for selected employees, directors and consultants of the Company
and its affiliated corporations.

1.2
Purpose. The purpose of the 1995 Plan is to provide employees, directors and consultants
selected for participation in the 1995 Plan with added incentives to continue in the
service of the Company and its affiliates and to create in such employees, directors and
consultants a more direct interest in the future success of the operations of the Company
and its affiliated corporations by relating incentive compensation to the achievement of
long-term corporate economic objectives. The 1995 Plan is also designed to attract key
employees, directors and consultants and to retain and motivate participating employees,
directors and consultants by providing an opportunity for equity investment in the
Company.

1.3
No Effect on 1987 Plan Options. Options granted pursuant to the Storage Technology
Corporation 1987 Equity Participation Plan (the 1987 Plan) shall be governed
by the terms and provisions of the option agreements covering such grants and by the
provisions of the 1987 Plan.

SECTION II DEFINITIONS

2.1
Definitions. The following terms shall have the meanings set forth below:

|(a) |  | Affiliated Corporation means any corporation that is either a parent
                    corporation with respect to the Company or a subsidiary corporation with respect
                    to the Company (within the meaning of Sections 424(e) and (f), respectively, of
                    the Internal Revenue Code).
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|(b) |  | Board means the Board of Directors of the Company.
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|(c) |  | Cause means performance or conduct problems resulting in discharge,
                    as determined by the Company or Affiliated Company, which determination will be
                    conclusive.
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|(d) |  | Committee means a committee designated by the Board to administer
                    the Plan or, if no committee is so designated, the Board.
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|(e) |  | Common Stock means the Companys $.10 par value voting common
                    stock.
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|(f) |  | Common Stock Equivalent means a right to receive Common Stock in the
                    future that may be granted to a Participant pursuant to Sections 12, 13 or 15 in
                    lieu of a current issuance of Common Stock, subject to certain conditions and
                    limitations imposed in accordance with such Sections.
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|(g) |  | Consultant means a natural person who performs services for the
                    Company, or any Affiliated Corporation, or any division thereof in exchange for
                    consideration, but who is not an Employee.
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|(h) |  | Director means a member of the Board.
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|(i) |  | Effective Date means the effective date of the 1995 Plan, as set
                    forth in Section 22 hereof.
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|(j) |  | Eligible Employees means those Employees upon whose judgment,
                    initiative and efforts the Company or the Affiliated Corporations are, or are
                    expected to become, largely dependent for the successful conduct of their
                    business.
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|(k) |  | Employee means a natural person who is deemed an employee
                    (including, without limitation, an officer or director who is also an employee)
                    of the Company, or any Affiliated Corporation, in accordance with the rules
                    contained in Section 3401(c) of the Internal Revenue Code and the regulations
                    thereunder.
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|(l) |  | Fair Market Value means with respect to Common Stock, as of any
                    date, the closing price of a share of Common Stock on the New York Stock
                    Exchange as reported by The Wall Street Journal for the last trading day prior
                    to that date. If no such prices are reported, then Fair Market Value shall mean
                    the average of the high and low sale prices for the Common Stock (or if no sale
                    prices are reported, the average of the high and low bid prices) as reported by
                    the principal regional stock exchange, or if not so reported, as reported by
                    Nasdaq or a quotation system of general circulation to brokers and dealers.
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|(m) |  | Incentive Stock Option means the right to purchase Common Stock
                    granted to an Employee pursuant to Sections 6 and 7, which constitutes an
                    incentive stock option within the meaning of Section 422 of the Internal Revenue
                    Code, and which may or may not be issued with related Stock Appreciation Rights.
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|(n) |  | Internal Revenue Code means the Internal Revenue Code of 1986, as it
                    may be amended from time to time.
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|(o) |  | Long-Term Employee means a person who, as of the date he or she
                    ceases to be an Employee of the Company or any Affiliated Corporation, has been
                    an Employee of the Company or any Affiliated Corporation for six years or more,
                    with no break in such employment of longer than one year.
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|(p) |  | MBO Payment means a payment to a Participant pursuant to the
                    Companys MBO Plan, which payment may be made either in shares of Common
                    Stock, Common Stock Equivalents or in cash, or partly in Common Stock, partly in
                    Common Stock Equivalents and partly in cash, as determined in accordance with
                    the provisions of Section 13.
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|(q) |  | MBO Equity Plan means the Companys Management By Objective
                    Plan, as established by the Board or the Committee from time to time, pursuant
                    to which MBO Payments are made from time to time in the manner and under the
                    conditions established by the Board or the Committee.
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|(r) |  | Non-Qualified Option means a right to purchase Common Stock granted
                    to a Participant pursuant to Sections 6 and 8, which does not qualify as an
                    Incentive Stock Option or which is designated as a Non-Qualified Option, and
                    which may or may not be issued with related Stock Appreciation Rights.
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|(s) |  | Outside Director means a Director who is not an Employee.
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|(t) |  | Participant means an Eligible Employee, Director or Consultant
                    designated by the Committee from time to time during the term of the 1995 Plan
                    to receive one or more of the stock-based compensation incentives provided under
                    the 1995 Plan.
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|(u) |  | Reduction in Force means any termination of employment that, in the
                    sole judgment of the Company, is (i) made at the request of the Company or an
                    Affiliated Corporation and is due to the elimination of the Employees
                    position, or (ii) a reduction in the number of persons employed by the Company,
                    either overall or in the Employees function, department, division or other
                    relevant workplace unit.
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|(v) |  | Restricted Stock Award means an award of Common Stock granted to a
                    Participant pursuant to Section 10 that is subject to certain restrictions
                    imposed in accordance with the provisions of such Section.
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|(w) |  | Retire means any termination of employment that is deemed to be a
                    Retirement by a resolution of the Board of Directors, or any
                    termination of employment made at the request of the Employee if, as of the date
                    of such termination, such Employee (a) is age 62 or older and (b) has, at the
                    time of such termination, been employed by the Company or any Affiliated
                    Corporation for six years or more, with no break in such employment of longer
                    than one year.
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|(x) |  | Retired means the status of any former Employee after he or she
                    Retires.
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|(y) |  | Stock Appreciation Right means a right granted to a Participant
                    pursuant to Section 9 to receive a payment from the Company equal to the
                    difference between the Fair Market Value of one or more shares of Common Stock
                    subject to a Non-Qualified Option or an Incentive Stock Option and the exercise
                    price of such shares under the terms of such Stock Option.
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|(z) |  | Stock Option means an Incentive Stock Option or a Non-Qualified
                    Option.
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2.2
Gender and Number. Except when otherwise indicated by the context, the masculine gender
shall also include the feminine gender, and the definition of any term herein in the
singular shall also include the plural.

SECTION III PLAN ADMINISTRATION

3.1
Administration Generally. The 1995 Plan shall be administered by the Board or Committee.
In accordance with the provisions of the 1995 Plan, the Committee, in its sole discretion:

|(i) |  | shall select the Participants from Eligible Employees, Directors and
          Consultants;
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|(ii) |  | shall determine the number of shares of Common Stock to be subject to Incentive
          Stock Options, Non-Qualified Options, Stock Appreciation Rights, Restricted
          Stock Awards and other Common Stock or Common Stock Equivalent awards granted
          pursuant to the 1995 Plan;
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|(iii) |  | shall determine the number of shares of Common Stock or Common Stock Equivalents
          to be issued as MBO Payments;
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|(iv) |  | shall determine the time at which such options, rights, awards and payments are
          to be granted;
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|(v) |  | shall fix the exercise price, period and the manner in which a Stock Option
          becomes exercisable;
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|(vi) |  | shall establish the duration and nature of Restricted Stock Award restrictions;
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|(vii) |  | shall determine the Fair Market Value of the Common Stock, in accordance with
          Section 2.1(l) of the 1995 Plan;
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|(viii) |  | shall determine whether and under what circumstances, if any, a Stock Option or
          Stock Appreciation Right may be settled in cash or Common Stock Equivalents
          instead of Common Stock;
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|(ix) |  | INTENTIONALLY DELETED
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|(x) |  | may modify or amend the terms and conditions of any Stock Option, Stock
          Appreciation Right, Restricted Stock Award or other Common Stock award, subject
          to Section 19 of the Plan (including, but not limited to, accelerating vesting
          or waiving forfeiture restrictions);
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|(xi) |  | may institute an option exchange program;
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|(xii) |  | may authorize any person to execute on behalf of the Company any instrument
          required to effect the grant of a Stock Option, Stock Appreciation Right,
          Restricted Stock Award or other Common Stock or Common Stock Equivalent award
          previously granted by the Committee; and
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|(xiii) |  | shall establish such other terms and requirements of the various compensation
          incentives under the 1995 Plan as the Committee may deem necessary or desirable
          and consistent with the terms of the 1995 Plan.
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| | The
Committee shall determine the form or forms of the agreements with Participants, which
shall evidence the particular provisions, terms, conditions, rights and duties of the
Company and the Participants with respect to Incentive Stock Options, Non-Qualified
Options, Stock Appreciation Rights, Common Stock Equivalent and Restricted Stock Awards
granted pursuant to the 1995 Plan, which provisions need not be identical except as may be
provided herein. The Committee may from time to time adopt such rules and regulations for
carrying out the purposes of the 1995 Plan as it may deem proper and in the best interests
of the Company. The Committee may correct any defect or supply any omission or reconcile
any inconsistency in the 1995 Plan or in any agreement entered into hereunder in the
manner and to the extent it shall deem expedient to carry the 1995 Plan into effect, and
it shall be the sole and final judge of such expediency. No member of the Committee shall
be liable for any action or determination made in good faith. The determinations,
interpretations and other actions of the Committee pursuant to the provisions of the 1995
Plan shall be binding and conclusive for all purposes and on all persons, subject only to
the review and control of the Board on all Plan matters except selection of Participants.
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3.2
Multiple Administrative Bodies. If permitted by Rule 16b-3, the 1995 Plan may be
administered by different bodies with respect to Directors who are Employees, Outside
Directors, officers (within the meaning of Rule 16a-1(f)) who are not Directors, and
Employees who are neither Directors nor officers.

3.3
Administration With Respect to Directors and Officers. With respect to grants of Stock
Options, Stock Appreciation Rights, Restricted Stock Awards or other Common Stock or
Common Stock Equivalent awards under the 1995 Plan to Employees who are also officers or
Directors, the 1995 Plan shall be administered by:

|(a) |  | the Board, if the Board may administer the 1995 Plan and still have transactions
                    under the 1995 Plan qualify for exemption under Rule 16b-3, or
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|(b) |  | a Committee designated by the Board to administer the 1995 Plan, which Committee
                    shall be constituted (i) in such a manner as to permit awards granted under the
                    1995 Plan to qualify for exemption under Rule 16b-3 and (ii) in such a manner as
                    to satisfy applicable laws.
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3.4
Administration With Respect to Other Persons. With respect to grants of Stock Options,
Stock Appreciation Rights, Restricted Stock Awards or other Common Stock or Common Stock
Equivalent awards to Employees who are neither Directors nor officers, the 1995 Plan shall
be administered by:

|(a) |  | the Board; or
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|(b) |  | a Committee designated by the Board, which Committee shall be constituted in
          such a manner as to satisfy applicable laws.
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3.5
Committee Composition. Once a Committee has been appointed pursuant to Section 3.3 or 3.4,
such Committee shall continue to serve in its designated capacity until otherwise directed
by the Board. From time to time the Board may increase the size of any Committee and
appoint additional members thereof, remove members (with or without cause) and appoint new
members in substitution therefor, fill vacancies (however caused) or remove all members of
the Committee and thereafter directly administer the Plan, all to the extent permitted by
applicable laws and, in the case of a Committee appointed under Section 3.3, to the extent
permitted by Rule 16b-3 as it applies to transactions intended to qualify thereunder as
exempt transactions.

SECTION IV STOCK SUBJECT TO THE PLAN

4.1
Number of Shares. Twenty-Three Million Five Hundred Fifty Thousand (23,550,000) shares of
Common Stock are authorized for issuance under the 1995 Plan in accordance with the
provisions of the 1995 Plan and subject to such restrictions or other provisions as the
Committee may from time to time deem necessary. This authorization may be increased from
time to time by approval of the Board and the stockholders of the Company. Shares of
Common Stock that are issued upon exercise of Incentive Stock Options, Non-Qualified
Options, or Stock Appreciation Rights or pursuant to MBO Payments, shares of Common Stock
that are issued as Restricted Stock Awards, shares of Common Stock that are issued in
connection with Common Stock Equivalents, and shares of Common Stock that are issued
pursuant to a plan adopted pursuant to Section 15, shall be applied to reduce the number
of shares of Common Stock remaining available for future issuance under the 1995 Plan.

4.2
Unused and Forfeited Stock. Any shares of Common Stock that are subject to an Incentive
Stock Option or a Non-Qualified Option that expires or for any reason is terminated
unexercised, and with respect to which no related Stock Appreciation Right has been
exercised, any shares of Common Stock that are subject to Common Stock Equivalents or to a
Restricted Stock Award and that are forfeited (the Forfeited Restricted
Stock), and any shares of Common Stock that for any other reason are not issued to a
Participant (not including shares withheld pursuant to Section 20.2) or are forfeited (if
forfeited, the Other Forfeited Stock), shall automatically become available
for use under the 1995 Plan; provided, however, that (i) no shares of Forfeited Restricted
Stock or Other Forfeited Stock may be subject to Incentive Stock Options and (ii) such
shares shall not be returned to the 1995 Plan if prohibited by Rule 16b-3.

4.3
Capital Adjustments.

|(a) |  | Changes in Capitalization. Subject to any required action by the stockholders of
                    the Company, the number of shares of Common Stock covered by each outstanding
                    Stock Option, Stock Appreciation Right and Common Stock Equivalent
                    (Rights), and the number of shares of Common Stock that have been
                    authorized for issuance under the Plan but as to which no Stock Options, Stock
                    Appreciation Rights or Common Stock Equivalents have yet been granted or that
                    have been returned to the Plan upon cancellation or expiration of a Stock
                    Option, Stock Appreciation Right or Common Stock Equivalents (the Shares
                    Available for Future Grant), as well as the price per share of Common
                    Stock covered by each outstanding Stock Option or Stock Appreciation Right,
                    shall be proportionately adjusted for any increase or decrease in the number of
                    issued and outstanding shares of Common Stock resulting from a stock split,
                    reverse stock split, stock dividend, combination or reclassification of the
                    Common Stock, or any other increase or decrease in the number of issued and
                    outstanding shares of Common Stock effected without receipt of consideration by
                    the Company; provided, however, that conversion of any convertible securities of
                    the Company shall not be deemed to have been effected without receipt of
                    consideration. Such proportionate adjustment shall be made by the
                    Committee, whose determination in that respect shall be final, binding and
                    conclusive. Except as expressly provided herein, no issuance by the Company of
                    shares of stock of any class, or securities convertible into or exercisable for
                    shares of stock of any class, shall affect, and no adjustment by reason thereof
                    shall be made with respect to, the number of Shares Available for Future Grant
                    or the number or price of shares of Common Stock subject to outstanding Stock
                    Options or Stock Appreciation Rights.
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|(b) |  | Dissolution or Liquidation. In the event of the proposed dissolution or
                    liquidation of the Company, to the extent that a Stock Option or Stock
                    Appreciation Right has not been previously exercised, it will terminate
                    immediately prior to the consummation of such proposed action. The Committee
                    may, in the exercise of its sole discretion in such instances, declare that any
                    Stock Option or Stock Appreciation Right shall terminate as of a date fixed by
                    the Committee and give each Participant the right to exercise his or her Stock
                    Option or Stock Appreciation Right in whole or in part, including with respect
                    to shares as to which the Stock Option or Stock Appreciation Right would not
                    otherwise be exercisable. Unless determined otherwise by the Committee, Common
                    Stock Equivalents shall convert into shares of Common Stock immediately prior to
                    the consummation of any such dissolution or liquidation.
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|(c) |  | Merger or Asset Sale. In the event of a merger or consolidation of the Company
                    with or into another corporation, or the sale of all or substantially all of the
                    assets of the Company, each outstanding Stock Option, Stock Appreciation Right
                    and Common Stock Equivalent may be assumed or an equivalent Stock Option, Stock
                    Appreciation Right or Common Stock Equivalent may be substituted by the
                    successor corporation or a parent or subsidiary of the successor corporation.
                    The Committee may, in lieu of such assumption or substitution of Stock Options
                    and Stock Appreciation Rights, provide for Optionees to have the right to
                    exercise his or her Stock Option or Stock Appreciation Right in whole or in
                    part, including with respect to shares as to which it would not otherwise be
                    exercisable. If the Committee makes a Common Stock Equivalent convertible into
                    shares of Common Stock or makes a Stock Option or Stock Appreciation Right
                    exercisable in lieu of assumption or substitution in the event of a merger,
                    consolidation or sale of assets, the Committee shall notify the Participants
                    and, in the case of a Stock Option or Stock Appreciation Right, shall notify the
                    Optionee that the Stock Option or Stock Appreciation Right shall be fully
                    exercisable for a period of thirty (30) days from the date of such notice, and
                    the Stock Option or Stock Appreciation Right shall terminate upon the expiration
                    of such period. For the purposes of this paragraph, the Stock Option, Stock
                    Appreciation Right or Common Stock Equivalent shall be considered assumed if,
                    following the merger, consolidation or sale of assets, the Stock Option, Stock
                    Appreciation Right or Common Stock Equivalent confers the right to purchase or
                    receive, for each share of Common Stock subject to the Stock Option, Stock
                    Appreciation Right or Common Stock Equivalent immediately prior to the merger,
                    consolidation or sale of assets, the consideration (whether stock, cash or other
                    securities or property) received in the merger, consolidation or sale of assets
                    by holders of Common Stock for each share held on the effective date of the
                    transaction (and, if holders were offered a choice of consideration, the type of
                    consideration chosen by the holders of a majority of the outstanding shares);
                    provided, however, that if such consideration received in the merger,
                    consolidation or sale of assets was not solely common stock of the successor
                    corporation or its parent, the Committee may, with the consent of the successor
                    corporation, provide for the consideration to be received upon conversion of a
                    Common Stock Equivalent or upon the exercise of the Stock Option or Stock
                    Appreciation Right, for each share of Common Stock subject to the Stock Option,
                    Stock Appreciation Right or Common Stock Equivalent to be solely common stock of
                    the successor corporation or its parent equal in fair market value to the per
                    share consideration received by holders of Common Stock in the merger,
                    consolidation or sale of assets.
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SECTION V PARTICIPATION

5.1
Eligibility. Participants in the 1995 Plan shall be those Eligible Employees, Directors
and Consultants who, in the judgment of the Committee, are performing, or during the term
of their service to the Company are expected to perform, vital services in the management,
operation and development of the Company or an Affiliated Corporation, and significantly
contribute or are expected to significantly contribute to the achievement of long-term
corporate economic objectives. Participants who are Employees may be granted from time to
time one or more Incentive Stock Options (with or without Stock Appreciation Rights), and
Participants (whether or not they are Employees) may be granted one or more Non-Qualified
Options (with or without Stock Appreciation Rights), one or more Restricted Stock Awards,
one or more MBO Payments in Common Stock Equivalents or in shares of Common Stock, Common
Stock equivalents pursuant to Section 12, and one or more other Common Stock or Common
Stock Equivalent awards pursuant to Section 15; provided, however, that the grant of each
such option, right, award or payment shall be separately approved by the Committee, and
receipt of one such option, right, award or payment shall not result in automatic receipt
of any other option, right, award or payment. Upon determination by the Committee that a
Stock Option, Stock Appreciation Right, Restricted Stock Award, MBO Payment or other
Common Stock or Common Stock Equivalent award is to be granted to a Participant, written
notice shall be given to such person, specifying the terms, conditions, rights and duties
related thereto. Each Participant shall, if required by the Committee, enter into an
agreement with the Company, in such form as the Committee shall determine and as is
consistent with the provisions of the 1995 Plan, specifying such terms, conditions, rights
and duties. Stock Options, Stock Appreciation Rights, Restricted Stock Awards, MBO
Payments and other Common Stock or Common Stock Equivalent awards shall be deemed to be
granted as of the date specified in the grant resolution of the Committee, which date
shall be the date of any related agreement with the Participant. In the event of any
inconsistency between the provisions of the 1995 Plan and any such agreement entered into
hereunder, the provisions of the 1995 Plan shall govern.

5.2
Limitations. The following limitations shall apply to grants of Stock Options and Stock
Appreciation Rights to Participants:

|(a) |  | (i)  Except as set forth in Section 5.2 (a)(ii) hereof, no Participant
                    shall be granted, in any fiscal year of the Company, Stock Options and Stock
                    Appreciation Rights to purchase more than two million (2,000,000) shares (the
                    Individual Limit).  (ii)  No individual who is a
                    newly-hired employee of the Company (a New Hire) shall be granted in
                    the fiscal year (the initial Fiscal Year) in which he or she became
                    a New Hire, Stock Options and Stock Appreciation Rights to purchase shares more
                    than twice the Individual Limit.
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|(b) |  | If a Stock Option or Stock Appreciation Right is canceled in the same fiscal
                    year of the Company in which it was granted (other than in connection with a
                    transaction described in Section 4.3), the canceled Stock Option or Stock
                    Appreciation Right shall be counted against the limit set forth in Section
                    5.2(a).
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|(c) |  | Incentive Stock Options may not be granted to Outside Directors or to
                    Consultants.
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5.3
Rule 16b-3. Stock Options, Stock Appreciation Rights, Restricted Stock Awards, MBO
Payments and other Common Stock or Common Stock Equivalent awards granted to Participants
who are subject to Section 16 of the Securities Exchange Act of 1934, as amended (the
Exchange Act), must comply with the applicable provisions of Rule 16b-3 and
shall contain such additional conditions or restrictions as may be required thereunder to
qualify for the maximum exemption from Section 16 of the Exchange Act with respect to 1995
Plan transactions.

SECTION VI STOCK OPTIONS

6.1
Grant of Stock Options. Coincident with or following designation for participation in the
1995 Plan, a Participant may be granted one or more Stock Options. The Committee in its
sole discretion may designate whether a Stock Option granted to an Employee is to be
considered an Incentive Stock Option or a Non-Qualified Option. The Committee may grant
both an Incentive Stock Option and a Non-Qualified Option to the same Employee at the same
time or at different times. Incentive Stock Options and Non-Qualified Options, whether
granted at the same or different times, shall be deemed to have been awarded in separate
grants, shall be clearly identified, and in no event will the exercise of one Stock Option
affect the right to exercise any other Stock Option or affect the number of shares of
Common Stock for which any other Stock Option may be exercised. All Stock Options granted
to Participants who are not Employees shall be Non-Qualified Options.

6.2
Manner of Stock Option Exercise. A Stock Option may be exercised by a Participant in whole
or in part from time to time, subject to the conditions contained herein, (i) by delivery
of written notice of exercise to the Company at its principal office in Louisville,
Colorado (Attention: Corporate Secretary), in person or through mail, facsimile or
electronic mail, or by delivery of notice of exercise in such other method as has been
approved by the Committee, and (ii) by paying in full, with the written notice of exercise
or at such other time as the Committee may establish, the total exercise price under the
Stock Option for the shares being purchased. Such notice shall be in a form satisfactory
to the Committee and shall specify the particular Stock Option (or portion thereof) that
is being exercised and the number of shares with respect to which the Stock Option is
being exercised. The exercise of the Stock Option shall be deemed effective upon receipt
of such notice by the Corporate Secretary and payment to the Company. As soon as
practicable after the effective exercise of the Stock Option, and upon satisfaction of all
applicable withholding requirements pursuant to Section 20, the Participant shall be
recorded on the stock transfer books of the Company as the owner of the shares purchased
and the Company shall deliver to the Participant one or more duly issued and executed
stock certificates evidencing such ownership.

6.3
Payment of Stock Option Exercise Price. At the time of the exercise of a Stock Option,
payment of the total Stock Option exercise price for the shares to be purchased shall be
made in the manner specified in the option agreement relating to such Stock Option, which
may include any or all of the following methods of payment:

|(a) |  | in cash or by check;
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|(b) |  | by transfer from the Participant to the Company of shares of Common Stock (other
                    than shares of Common Stock that the Committee determines by rule may not be
                    used to exercise Stock Options) with a then current aggregate Fair Market Value
                    equal to the total Stock Option exercise price;
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|(c) |  | delivery to the Company of: (i) a properly executed exercise notice, (ii)
                    irrevocable instructions to a broker to sell a sufficient number of the shares
                    being exercised to cover the exercise price and to promptly deliver to the
                    Company the amount of sale proceeds required to pay the exercise price and any
                    required tax withholding relating to the exercise, and (iii) such other
                    documentation as the Committee and the broker shall require to effect a same-day
                    exercise and sale;
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|(d) |  | delivery to the Company of (i) a properly executed exercise notice, (ii)
                    irrevocable instructions to a broker or other third party acceptable to the
                    Company to hold the shares being exercised as collateral for a loan to the
                    Optionee of an amount sufficient to cover the exercise price and to promptly
                    deliver to the Company the amount of loan proceeds required to pay the exercise
                    price and any required tax withholding relating to the exercise and (iii) such
                    other documentation as the Committee and the broker or other third party shall
                    require to effect the transaction;
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|(e) |  | a reduction in the amount of any Company liability to the Optionee, including
                    any liability attributable to the Optionees participation in any
                    Company-sponsored deferred compensation program or arrangement;
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|(f) |  | any combination of the foregoing methods of payment; or
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|(g) |  | such other consideration and method of payment for the issuance of Shares to the
                    extent permitted by applicable laws, rules and regulations and by the agreement
                    relating to the Stock Option being exercised.
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In
the event that the option agreement does not specify the acceptable methods of payment of
the exercise price, payment may be made by any of the methods specified in clauses (a)
through (c), inclusive, of this Section 6.3, or any combination of such methods of
payment.

6.4
Stockholder Privileges. No Participant shall have any rights as a stockholder with respect
to any shares of Common Stock covered by a Stock Option until the Participant becomes the
holder of record of such Common Stock, and no adjustments shall be made for dividends or
other distributions or other rights as to which there is a record date preceding the date
such Participant becomes the holder of record of such Common Stock.

SECTION VII INCENTIVE STOCK OPTIONS

7.1
Incentive Stock Option Exercise Price. The per share price to be paid by a Participant at
the time an Incentive Stock Option is exercised shall be determined by the Committee at
the time an Incentive Stock Option is granted (or deemed to have been granted under
applicable tax rules), but in no event shall such exercise price be less than:

|(a) |  | one hundred percent of the Fair Market Value, on the date the Incentive Stock
                    Option is granted (or deemed to have been granted under applicable tax rules),
                    of one share of the stock to which such Stock Option relates; or
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | one hundred and ten percent of the Fair Market Value, on the date the Incentive
                    Stock Option is granted (or deemed to have been granted under applicable tax
                    rules), of one share of the stock to which such Stock Option relates if, at the
                    time the Incentive Stock Option is granted, the Participant owns, directly or
                    indirectly (as determined pursuant to Section 424(d) of the Internal Revenue
                    Code), ten percent or more of the total combined voting power of all classes of
                    stock of the Company or of any Affiliated Corporation (such a Participant is
                    referred to as a 10% Holder).
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

7.2
Number of Option Shares. The number of shares of Common Stock subject to an Incentive
Stock Option shall be designated by the Committee at the time the Committee decides to
grant an Incentive Stock Option.

7.3
Aggregate Limitation of Stock Exercisable Under Options. To the extent the aggregate Fair
Market Value, determined as of the time an Incentive Stock Option is granted, of the
shares of Common Stock with respect to which Incentive Stock Options are exercisable for
the first time by an Option Holder in any calendar year under the 1995 Plan or otherwise,
granted by the Company and Affiliated Corporations, exceeds $100,000, such excess shall be
treated as a Non-Qualified Option.

7.4
Duration of Incentive Stock Options. The period during which an Incentive Stock Option may
be exercised shall be fixed by the Committee, but in no event shall such period be more
than ten years from the date the Stock Option is granted, or, in the case of Participants
who are 10% Holders as described in Section 7.1(b), five years from the date the Stock
Option is granted. No Incentive Stock Option with respect to which Stock Appreciation
Rights have been granted may be exercised during the six-month period following the date
on which such Stock Option was granted. Upon the expiration of such exercise period, the
Incentive Stock Option, to the extent not then exercised, shall terminate. Except as
otherwise provided in Section 11, all Incentive Stock Options granted to a Participant
hereunder shall terminate and may no longer be exercised if the Participant ceases to be
an Employee.

7.5
Restrictions on Exercise of Incentive Stock Options. Incentive Stock Options may be
granted subject to such restrictions as to the timing of exercise of all or various
portions thereof as the Committee may determine at the time it grants Incentive Stock
Options to Participants.

7.6
Disposition of Stock Acquired Pursuant to the Exercise of Incentive Stock Options X
Withholding. In the event that a Participant makes a disposition (as defined in Section
422(c) of the Internal Revenue Code) of any Common Stock acquired pursuant to the exercise
of an Incentive Stock Option prior to the expiration of two years from the date on which
the Incentive Stock Option was granted or prior to the expiration of one year from the
date on which the Stock Option was exercised, the Participant shall send written notice to
the Company at its principal office in Louisville, Colorado (Attention: Corporate
Secretary) of the date of such disposition, the number of shares disposed of, the amount
of proceeds received from such disposition and any other information relating to such
disposition as the Company may reasonably request. The Participant shall, in the event of
such a disposition, make appropriate arrangements with the Company to provide for the
amount of additional withholding required by federal, state and local income and other tax
laws.

SECTION VIII NON-QUALIFIED OPTIONS

8.1
Option Exercise Price. The per share price to be paid by the Participant at the time a
Non-Qualified Option is exercised shall be determined by the Committee at the time the
Stock Option is granted or amended, but in no event shall such exercise price per share be
less than one hundred (100) percent of the Fair Market Value of one share of Common Stock
on the date the Stock Option is granted or amended.

8.2
Number of Option Shares. The number of shares of Common Stock subject to a Non-Qualified
Option shall be designated by the Committee at the time the Committee decides to grant a
Non-Qualified Option.

8.3
Duration of Non-Qualified Options; Restrictions on Exercise. The period during which a
Non-Qualified Option may be exercised, and the installment restrictions on option exercise
during such period, if any, shall be fixed by the Committee, but in no event shall such
period be more than ten years from the date the Stock Option is granted, and no
Non-Qualified Option with respect to which Stock Appreciation Rights have been granted may
be exercised during the six-month period immediately following the date on which such
Stock Option was granted. Upon the expiration of such exercise period, the Non-Qualified
Option, to the extent not then exercised, shall terminate. Except as otherwise provided in
Section 11, all Non-Qualified Options granted to a Participant hereunder shall terminate
and may no longer be exercised if the Participant ceases to be an Employee, Director or
Consultant.

SECTION IX STOCK APPRECIATION RIGHTS

9.1
Grant of Rights. A Stock Appreciation Right may be granted to a Participant in conjunction
with any Incentive Stock Option or Non-Qualified Option granted to such Participant, as
determined by the Committee, (i) at the time of the grant of such Stock Option in the case
of an Incentive Stock Option or (ii) at the time of grant, or at any subsequent time
during the term of the Stock Option, in the case of a Non-Qualified Option. Once granted,
the term of a Stock Appreciation Right shall be equal to the term of its related Stock
Option. Upon exercise of a Stock Appreciation Right by a Participant for a share of Common
Stock, the related Stock Option shall be terminated with respect to such share. Incentive
Stock Options and Non-Qualified Options shall not be exercisable with respect to shares of
Common Stock for which Stock Appreciation Rights have been exercised. Upon such Stock
Appreciation Right exercise, the Participant shall be entitled to receive the economic
value of such Stock Appreciation Right determined in the manner prescribed in Section 9.2.

9.2
Exercise of Stock Appreciation Rights. Stock Appreciation Rights shall be subject to such
terms and conditions consistent with other provisions of the 1995 Plan as may be
determined from time to time by the Committee and shall include the following:

|(a) |  | A Stock Appreciation Right shall be exercisable, in whole or in part, at such
                    time or times and only to the extent that the Stock Option to which it relates
                    shall be exercisable; provided, however, that, except as otherwise provided in
                    Section 11, no Stock Appreciation Right shall be exercisable during the
                    six-month period following the date of its grant. A Stock Appreciation Right
                    shall be exercised by the giving of notice in the same manner as the Stock
                    Option to which it relates may be exercised.
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | Upon the exercise of a Stock Appreciation Right, a Participant shall be entitled
                    to receive the economic value thereof, which shall be equal to (i) the excess of
                    the then Fair Market Value of one share of Common Stock over the exercise price
                    per share specified in the related Stock Option, multiplied by (ii) the number
                    of shares in respect of which the Stock Appreciation Right is being exercised.
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) |  | The Committee shall, in the agreement relating to the Stock Appreciation Right,
                    either (i) specify the form in which payment of the economic value of exercised
                    Stock Appreciation Rights will be made to the Participant upon exercise thereof
                    (i.e., cash, Common Stock, or a specified combination thereof) or (ii) grant the
                    Participant the right to elect to receive cash in full or partial payment of
                    such economic value, at the Participants discretion. If the agreement
                    relating to the Stock Appreciation Right does not so specify, then the
                    Participant shall have the right to elect cash or Common Stock, Common Stock
                    Equivalents or any combination thereof. If the Participant is not an
                    officer or director of the Company, as those terms are
                    defined in the rules under Section 16 of the Exchange Act, at the time of grant
                    or exercise of the Stock Appreciation Right, then the Committee may retain the
                    right to either consent to or disapprove of Participants elected method of
                    payment.
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

9.3
Stockholder Privileges. No Participant shall have any rights as a stockholder with respect
to any shares of Common Stock covered by a Stock Appreciation Right until the Participant
becomes the holder of record of such Common Stock, and no adjustments shall be made for
dividends or other distributions or other rights as to which there is a record date
preceding the date such Participant becomes the holder of record of such Common Stock.

SECTION X RESTRICTED STOCK AWARDS

10.1
Awards Granted by Committee. Coincident with or following designation for participation in
the 1995 Plan, a Participant may be granted one or more Restricted Stock Awards consisting
of shares of Common Stock. The number of shares granted as a Restricted Stock Award shall
be determined by the Committee. The Committee may, in its discretion, require the payment
by the Participant of cash in an amount equal to the par value of the Common Stock subject
to the Restricted Stock Award as a condition precedent to the issuance of Common Stock to
the Participant.

10.2
Restrictions. A Participants right to retain a Restricted Stock Award granted to him
or her under Section 10.1 shall be subject to such restrictions, including but not limited
to the Participants continuous status as an Employee, Director or Consultant for a
restriction period specified by the Committee, or the attainment of specified performance
goals and objectives, as may be established by the Committee with respect to such award.
The Committee may in its sole discretion require different periods of employment, director
service or consulting service or different performance goals and objectives with respect
to different Participants, to different Restricted Stock Awards or to separate, designated
portions of the Common Stock shares constituting a Restricted Stock Award. Subject to the
provisions of Sections 11 and 14, if a Participants continuous status as an
Employee, Director or Consultant terminates prior to the end of such restriction period or
the attainment of such goals and objectives as may be specified by the Committee, the
Restricted Stock Award shall be forfeited and all shares of Common Stock related thereto
shall be immediately returned to the Company.

10.3
Privileges of a Stockholder; Transferability. A Participant shall have all voting,
dividend, liquidation and other rights with respect to Common Stock in accordance with its
terms received by him or her as a Restricted Stock Award under this Section 10 upon
becoming the holder of record of such Common Stock; provided, however, that the
Participants right to sell, encumber, or otherwise transfer such Common Stock (and
any other securities issued in respect of such shares of Common Stock as a stock dividend,
stock split or the like) shall be subject to the limitations of Section 16.2 hereof.

10.4
Enforcement of Restrictions. The Committee may in its sole discretion require one or more
of the following methods of enforcing the restrictions referred to in Section 10.2 and
10.3:

|(a) |  | Placing a legend on the stock certificates referring to the restrictions;
|--- |  | -------------------------------------------------------------------------

|(b) |  | Requiring the Participant to keep the stock certificates, duly endorsed, in the
                    custody of the Company while the restrictions remain in effect; or
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) |  | Requiring that the stock certificates, duly endorsed, be held in the custody of
                    a third party while the restrictions remain in effect.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------

SECTION XI EFFECT OF TERMINATION OF SERVICE ON STOCK OPTIONS, 
STOCK APPRECIATION RIGHTS AND RESTRICTED STOCK AWARDS

11.1
Effect of Termination of Service on Stock Options and Stock Appreciation Rights. No Stock
Option or Stock Appreciation Right may be exercised unless, at the time of such exercise,
the Participant is an Employee, Director or Consultant, except as follows:

|(a) |  | The Stock Option or Stock Appreciation Right may be exercised within such
                    period of time after termination of service as is specified in the Stock Option
                    or Stock Appreciation Right agreement or instrument, but (i) in no event may
                    such post-termination period extend beyond the original expiration date of the
                    Stock Option or Stock Appreciation Right and (ii) only to the extent that the
                    Participant was entitled to exercise it at the date of termination of service.
                    In the absence of a specified time in the Stock Option or Stock Appreciation
                    Right agreement or instrument, the Stock Option or Stock Appreciation Right
                    shall remain exercisable for the applicable period and to the extent specified
                    in Section 11.5 below following the Participants termination of service as
                    an Employee, Director or Consultant. In the case of an Incentive Stock Option,
                    such period of time shall not exceed 90 days from the date of termination of
                    status as an Employee; provided, however, that the agreement may specify a
                    longer period, in which case Stock Option shall convert to a Non-Qualified
                    Option on the 91st day following termination of employment.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | If the Participant dies while serving as an Employee, Director or Consultant,
                    or within three months after the Participant ceases such service, the Stock
                    Option or Stock Appreciation Right may be exercised by the person to whom it is
                    transferred by will or the laws of descent and distribution within such period
                    of time after death as is specified in the Stock Option or Stock Appreciation
                    Right agreement or instrument, but in no event may such post-death period extend
                    beyond the original expiration date of the Stock Option or Stock Appreciation
                    Right. In the absence of a specified time in the Stock Option or Stock
                    Appreciation Right agreement or instrument, the Stock Option or Stock
                    Appreciation Right shall remain exercisable for the applicable period and to the
                    extent specified in Section 11.5 below.
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) |  | If the Participant becomes disabled (within the meaning of Section 22(e)(3) of
                    the Internal Revenue Code) while serving as an Employee, Director or Consultant,
                    the Stock Option or Stock Appreciation Right may be exercised within such period
                    of time after termination of service as is specified in the Stock Option or
                    Stock Appreciation Right agreement or instrument, but in no event may such
                    post-termination period extend beyond the original expiration date of the Stock
                    Option or Stock Appreciation Right. In the absence of a specified time in the
                    Stock Option or Stock Appreciation Right agreement or instrument, the Stock
                    Option or Stock Appreciation Right shall remain exercisable for the applicable
                    period and to the extent specified in Section 11.5 below; or
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

11.2
Effect of Termination of Service on Restricted Stock Awards. In the event of the death or
disability (as defined in Section 11.1(c)) of a Participant, all period of service and
other restrictions applicable to Restricted Stock Awards then held by such Participant
shall lapse, and such awards shall become fully vested and nonforfeitable. In the event of
a Participants termination of service for any other reason, any Restricted Stock
Awards as to which the employment period or other restrictions have not been satisfied
shall be forfeited.

11.3
Meaning of Employment. For all purposes of the 1995 Plan and any Stock Option or Stock
Appreciation Right granted hereunder, employment shall be defined in
accordance with the provisions of Section 3401(c) of the Internal Revenue Code and the
regulations thereunder.

11.4
Meaning of Continuous Status. Unless otherwise specified in the Stock Option or Stock
Appreciation Right agreement or instrument, so long as a Participant is either an Employee
or a Director or a Consultant, he or she shall be considered to be in continuous status as
an Employee, Director or Consultant, even if the person is serving in one capacity when
the award is granted and subsequently changes to service in a different capacity, such as
terminating employment but continuing to serve as a Consultant.

11.5
Default Provisions for Termination of Service. In the event that the Stock Option or Stock
Appreciation Right agreement or instrument do not specify the post-termination period of
exercisability, the following provisions shall apply:

|(a) |  | Subject to 11.5(f), if such termination is due to the death of the Participant,
                    or the Participant dies within three months after such termination, or if such
                    termination occurs after the Participant becomes disabled (within the meaning of
                    Section 22(e)(3) of the Internal Revenue Code), the Stock Option or Stock
                    Appreciation Right may be exercised by the Participant (or, in the case of
                    death, by the person to whom it is transferred by will of the laws of descent
                    and distribution): (i) for all Incentive Stock Option grants, or for
                    Non-Qualified Stock Option grants or Stock Appreciation Right grants made before
                    May 22, 1997, or for Non-Qualified Stock Option grants or Stock Appreciation
                    Right grants made on or after May 22, 1997, if, at the time of the
                    Participants termination, such Participant was not a Long-Term Employee,
                    then within a period of one year after the date of death (but in no event longer
                    than the term of the Stock Option or Stock Appreciation Right); and (ii) for
                    grants made on or after May 22, 1997, if the Participant was a Long-Term
                    Employee at the time of the Participants termination, the Non-Qualified
                    Stock Option or Stock Appreciation Right may be exercised, to the extent it is
                    vested as of the date of the Participants termination, for the entire
                    remaining term of such Stock Option or Stock Appreciation Right.
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | Subject to 11.5(f), if such termination occurs after the Participant becomes
                    disabled (within the meaning of Section 22(e)(3) of the Internal Revenue Code),
                    the Stock Option or Stock Appreciation Right may be exercised: (i) for all
                    Incentive Stock Option grants, or for Non-Qualified Stock Option or Stock
                    Appreciation Right grants made before May 22, 1997, or for Non-Qualified Stock
                    Option grants or Stock Appreciation Right grants made on or after May 22, 1997,
                    if, at the time of the Participants termination, such Participant was not
                    a Long-Term Employee, then within a period of one year after the date of such
                    termination (but in no event longer than the term of the Stock Option or Stock
                    Appreciation Right); and (ii) for grants made on or after May 22, 1997, if the
                    Participant is a Long-Term Employee, a Non-Qualified Stock Option or Stock
                    Appreciation Right may be exercised to the extent it is vested as of the date of
                    the Participants termination for the entire remaining term of such Stock
                    Option or Stock Appreciation Right.
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) |  | Subject to 11.5(f), if such termination is due to a Reduction in Force, then,
                    for grants on or after May 22, 1997, the Stock Option or Stock Appreciation
                    Right shall be exercisable, to the extent vested at the time of such
                    termination, for a period of six months from the date of such termination.
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) |  | Subject to 11.5(f), if the Participant Retires, then, for grants on or after May
                    22, 1997, the Stock Option or Stock Appreciation Right shall be exercisable, to
                    the extent vested at the time the Participant Retires, for the entire remaining
                    term of such Stock Option or Stock Appreciation Right.
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) |  | Subject to 11.5(f), if the Participants employment is terminated for any
                    reason other than those reasons covered by subsections (a) through (d) of this
                    Section 11.5, then the Stock Option or Stock Appreciation Right shall be
                    exercisable, to the extent vested at the time of such termination, for a period
                    of ninety (90) days after the date of such termination.
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(f) |  | Notwithstanding the provisions of Section 11.5(a) through (e) above:
|--- |  | --------------------------------------------------------------------

|(i) |  | With respect to all grants of Stock Options or Stock Appreciation Rights
               occurring on or after May 22, 1997, no such grants shall be exercisable after
               the date of termination of employment if either the termination was for Cause,
               or if the former Employee, Consultant or Director is then, in the sole judgement
               of the Company, in material breach of any contractual, statutory, fiduciary or
               other legal obligation to the Company; and
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(ii) |  | In addition to the provisions of paragraph (i) above, unless otherwise provided
               in the Option or Stock Appreciation Right agreement, with respect to all grants
               of Stock Options or Stock Appreciation Rights occurring on or after March 4,
               1998 (or earlier date if agreed to by the Company and the participant), if at
               any time within six months before or within six months after voluntary or
               involuntary termination of the optionees employment or service for any
               reason, the former Employee, Consultant or Director is, in the sole judgment of
               the Company, engaging or has engaged in any activity in competition with any
               activity of the Company, or harmful or contrary to the interests of the Company,
               including, but not limited to: accepting employment with or serving as a
               consultant or advisor to any employer that is in competition with the Company or
               acting against the interests of the Company, including employing or recruiting
               any Employee of the Company; or disclosing or misusing any confidential,
               proprietary or material information concerning the Company (such information
               includes, without limitation, information regarding the Companys
               operations, its products, product designs, business plans, strategic plans,
               marketing and distribution plans and arrangements, customers, and financial
               statements, budgets and forecasts); or participating in any hostile takeover
               attempt of the Company, then: (I) any Options or Stock Appreciation Rights still
               held by the optionee shall immediately cease to be exercisable and shall be
               canceled, (II) any shares issued upon exercise of Options or Stock Appreciation
               Rights after the date of termination of employment or service shall be sold back
               to the Company at the exercise price paid for such shares, and any cash received
               upon exercise of a Stock Appreciation Right after termination of employment or
               service shall be returned to the Company; (III) if the Employee, Consultant or
               Director exercises any Stock Options or Stock Appreciation Rights within six
               months prior to the date of termination of employment or service, then any gain
               represented by the fair market value on the date of exercise over the exercise
               price multiplied by the number of shares such individual purchased (option
               gain), without regard to any subsequent market price decrease or increase,
               shall be paid by such individual to the Company; and (IV) shares issued upon
               exercise of Options or Stock Appreciation Rights within six months prior to or
               at any time after termination of employment or service shall be non-transferable
               and shall be held in escrow by the Company until such time as the Employee,
               Consultant or Director complies in full with the provisions of this Section
               11.5(f)(ii).
|---- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

SECTION XII DIRECTOR STOCK AND STOCK EQUIVALENTS

12.1
Director Stock and Stock Equivalents. Effective with the beginning of the Companys
fiscal year beginning December 28, 1996, each Outside Director may receive all or a
portion of his or her annual retainer and any meeting fees (which shall include any
additional annual retainer or fees paid to a committee chair) in shares of Common Stock
or, if elected by the Director, in Common Stock Equivalents. An election pursuant to this
Section 12 must be made in writing on or before the first day of the beginning of the
Outside Directors annual retainer period and shall entitle the Outside Director to a
number of shares of Common Stock or Common Stock Equivalents determined by dividing (a)
the dollar amount of the portion of the retainer for the fiscal period that is to be paid
in shares of Common Stock or Common Stock Equivalents by (b) the Fair Market Value of one
share of Common Stock as of the last day of each such fiscal period, rounded up to the
next full number of shares. In the event any person becomes an Outside Director other than
at the beginning of an annual retainer period, such person may elect, within thirty (30)
days of the date on which such person becomes an Outside Director, to receive his or her
retainer and any meeting fees in shares of Common Stock or Common Stock Equivalents as
described above for the balance of such annual retainer period in accordance with the
formula set forth in the preceding sentence.

For
purposes of this Section 12, an annual retainer period shall begin on the date of an
Annual Meeting of the Stockholders of the Company and shall end on the day immediately
preceding the next following Annual Meeting.

12.2
Stock Equivalents. The number of Common Stock Equivalents determined under Section 12.1
for each Outside Director shall be credited to a bookkeeping account established in the
name of that Director subject to the following terms and conditions:

|(a) |  | If the Company pays a cash dividend with respect to the Common Stock at any time
                    while Common Stock Equivalents are credited to an Outside Directors
                    account, there shall be credited to the Outside Directors account
                    additional Common Stock Equivalents equal to (i) the dollar amount of the cash
                    dividend the Director would have received had he or she been the actual owner of
                    the Common Stock to which the Common Stock Equivalents then credited to the
                    Directors account relate, divided by (ii) the Fair Market Value of one
                    share of the Companys Common Stock on the dividend payment date. The
                    Company will pay the Director a cash payment in lieu of fractional stock
                    equivalents on the date of such dividend payment.
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | Upon the death or other termination of the Outside Directors service on
                    the Board, or, if authorized by the Committee, such other time or times as
                    specified by the Outside Director at the time of his or her annual election(s),
                    the Company shall deliver to the Outside Director (or his or her designated
                    beneficiary or estate) a number of shares of Common Stock equal to the whole
                    number of Common Stock Equivalents then credited to the Directors account,
                    together with a cash payment equal to the Fair Market Value of any fractional
                    Common Stock Equivalent.
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) |  | The Companys obligation with respect to Common Stock Equivalents shall not
                    be funded or secured in any manner, nor shall an Outside Directors right
                    to receive Common Stock equivalents be assigned or transferable, voluntarily or
                    involuntarily, except as expressly provided herein; and
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) |  | An Outside Director shall not be entitled to any voting or other stockholder
                    rights as a result of the credit of Common Stock Equivalents to the
                    Directors account until certificates representing shares of Common Stock
                    are delivered to the Director (or his or her designated beneficiary or estate)
                    hereunder.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

12.3
Elections. The Committee shall determine the form of Outside Directors elections
pursuant to this Section 12, which form shall evidence the particular provisions, terms,
conditions, rights and duties of the Company and the Outside Directors with respect to
Common Stock and Common Stock Equivalents paid with respect to the Directors annual
retainer and any meeting fees.

SECTION XIII MBO PAYMENTS

13.1
Participant Election As to MBO Payment. At such time as the Committee determines that a
Participant has or may become eligible for an MBO Payment pursuant to the MBO Plan, the
Committee may notify the Participant as to whether or not the Participant will be required
by the Committee to, or will be given the right to elect to, accept all or a part of such
MBO Payment in the form of shares of Common Stock or Common Stock Equivalents. If the
Committee grants the Participant the right to elect whether to accept the MBO Payment in
Common Stock or Common Stock Equivalents, then the Participant shall have ten (10)
business days after the receipt of such notice from the Committee to make such election.
The Participant shall notify the Committee with respect to his or her election on such
form as may be provided for this purpose by the Committee, setting forth thereon the
dollar value of the portion of the MBO Payment which he or she desires to receive in
shares of Common Stock or Common Stock Equivalents. If a Participant fails to make an
election pursuant to this Section with respect to the mode of payment of an MBO Payment,
the entire MBO Payment shall be made in cash.

13.2
Determination of Number of Shares. The number of shares of Common Stock or Common Stock
Equivalents that shall be issued or credited as an MBO Payment shall be determined by
dividing the dollar value of the portion of the MBO Payment that is to be paid in shares
of Common Stock or Common Stock Equivalents (whether as elected above or as adjusted by
the Committee pursuant to Section 13.3) by the Fair Market Value of the Common Stock on
the date the shares are issued or credited with respect to such Payment. No fractional
shares of Common Stock or Common Stock Equivalent shall be issued or credited as a part of
an MBO Payment and the value of any such fractional share that would otherwise be issued
pursuant to the Participants election shall be paid in cash.

13.3
Decision of Committee. The Committee shall have the sole discretion to either accept the
Participants election with respect to the payment of an MBO Payment, in whole or in
part, in shares of Common Stock or Common Stock Equivalents or to determine that a lesser
portion, or none, of the MBO Payment will be made in shares of Common Stock or Common
Stock Equivalents, and the Committees determination in this regard shall be final
and binding on the Participant.

SECTION XIV TENDER OFFERS AND ACQUISITIONS

If
any person or entity (other than the Company or any person or entity that is controlled by
the Company) shall make a tender offer or exchange offer for all or any part of the Common
Stock or other capital shares of the Company and shall purchase any part of the Common
Stock or other capital shares tendered to it, and the Board opposes or does not
affirmatively recommend acceptance of such tender offer or exchange offer, then:

|(a) |  | all Stock Options with respect to which no Stock Appreciation Rights have been
                    granted, and all Stock Options with respect to which Stock Appreciation Rights
                    have been issued (and all such related Stock Appreciation Rights) that have been
                    outstanding for at least six months, shall become immediately exercisable in
                    full during the remaining term thereof, whether or not the Participants to whom
                    such options and rights have been granted remain Employees, Directors or
                    Consultants of the Company; provided, however, that Stock Appreciation Rights
                    shall remain subject to the requirements of Section 9.2(a) with respect to the
                    exercise thereof only within prescribed periods after public release of Company
                    financial information;
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | all restrictions with respect to outstanding Restricted Stock Awards shall
                    immediately lapse; and
|--- |  | ---------------------------------------------------------------------------------------------------------------------

|(c) |  | all Common Stock Equivalents shall convert into shares of Common Stock as of the
                    date determined by the Committee.
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------

SECTION XV OTHER COMMON STOCK PROGRAMS

From
time to time during the duration of the 1995 Plan, the Board may, in its sole discretion,
adopt one or more incentive compensation arrangements for Eligible Employees, Directors or
Consultants pursuant to which such Eligible Employees, Directors or Consultants may
acquire shares of Common Stock or Common Stock Equivalents, whether by purchase, outright
grant or otherwise. Any such arrangements shall be subject to the general provisions of
the 1995 Plan and all shares of Common Stock or Common Stock Equivalents issued or
credited pursuant to such arrangements shall be issued under the 1995 Plan if so
designated by the Committee.

SECTION XVI RIGHTS OF PARTICIPANTS

16.1
Employment, Directorship or Consulting Relationship. Nothing contained in the 1995 Plan or
in any Stock Option, Stock Appreciation Right, Restricted Stock Award or other Common
Stock or Common Stock Equivalent award granted under the 1995 Plan shall confer upon any
Participant any right with respect to the continuation of his or her employment, service
as a director or consulting relationship with the Company or any Affiliated Corporation,
or interfere in any way with the right of the Company or any Affiliated Corporation,
subject to the terms of any separate agreement to the contrary, at any time to terminate
such service or to increase or decrease the compensation of the Participant from the rate
in existence at the time of the grant of a Stock Option, Stock Appreciation Right,
Restricted Stock Award or other Common Stock or Common Stock Equivalent award. Whether an
authorized leave of absence, or absence in military or government service, shall
constitute termination of service shall be determined by the Committee at the time.

16.2
Nontransferability. Except as otherwise approved by the Committee and set forth in the
agreement between the Company and the Participant, no right or interest of any Participant
in a Stock Option, a Stock Appreciation Right, a Restricted Stock Award prior to the
completion of the restriction period applicable thereto, or other Common Stock or Common
Stock Equivalent award granted pursuant to the 1995 Plan shall be assignable or
transferable during the lifetime of the Participant, either voluntarily or involuntarily,
or subjected to any lien, directly or indirectly, by operation of law, or otherwise,
including execution, levy, garnishment, attachment, pledge or bankruptcy. If permitted by
applicable law (including Rule 16b-3, as amended from time to time), the Committee may
(but need not) permit the transfer of Stock Options, Stock Appreciation Rights, Restricted
Stock Awards and/or other Common Stock or Common Stock Equivalent awards either generally,
to a limited class of persons or on a case-by-case basis. In the event of a
Participants death, a Participants rights and interest in Stock Options, Stock
Appreciation Rights, Restricted Stock Awards and other Common Stock or Common Stock
Equivalent awards shall be transferable by testamentary will or the laws of descent and
distribution, and payment of any amounts due under the 1995 Plan shall be made to, and
exercise of any Stock Options or Stock Appreciation Rights may be made by, the
Participants legal representatives, heirs or legatees. If in the opinion of the
Committee a person entitled to payments or to exercise rights with respect to the 1995
Plan is disabled from caring for his or her affairs because of mental condition, physical
condition, or age, payment due such person may be made to, and such rights shall be
exercised by, such persons guardian, conservator or other legal personal
representative upon furnishing the Committee with evidence satisfactory to the Committee
of such status.

SECTION XVII GENERAL RESTRICTIONS

17.1
Investment Representations. The Company may require any person to whom a Stock Option,
Stock Appreciation Right, Restricted Stock Award, MBO Payment or other Common Stock or
Common Stock Equivalent award is granted, as a condition of exercising such Stock Option
or Stock Appreciation Right, or receiving such Restricted Stock Award, MBO Payment or
other Common Stock award or Common Stock Equivalent award, to give written assurances in
substance and form satisfactory to the Company and its counsel to the effect that such
person is acquiring the Common Stock subject to the Stock Option, Stock Appreciation
Right, Restricted Stock Award, MBO Payment or Common Stock or Common Stock Equivalent
award for his or her own account for investment and not with any present intention of
selling or otherwise distributing the same, and to such other effects as the Company deems
necessary or appropriate in order to comply with federal and applicable state securities
laws.

17.2
Compliance with Securities Laws. Each Stock Option, Stock Appreciation Right and Common
Stock Equivalent shall be subject to the requirement that, if at any time counsel to the
Company shall determine that the listing, registration or qualification of the shares
subject to such Stock Option, Stock Appreciation Right or Common Stock Equivalent upon any
securities exchange or under any state or federal law, or the consent or approval of any
governmental or regulatory body, is necessary as a condition of, or in connection with,
the issuance or purchase of shares thereunder, such Stock Option, Stock Appreciation Right
or Common Stock Equivalent may not be accepted or exercised in whole or in part unless
such listing, registration, qualification, consent or approval shall have been effected or
obtained on conditions acceptable to the Committee. Nothing herein shall be deemed to
require the Company to apply for or to obtain such listing, registration or qualification.

17.3
Changes in Accounting Rules. Notwithstanding any other provision of the 1995 Plan to the
contrary, if, during the term of the 1995 Plan, any changes in the financial or tax
accounting rules applicable to Stock Options, Stock Appreciation Rights, Restricted Stock
Awards, MBO Payments or other Common Stock or Common Stock Equivalent awards shall occur
that, in the sole judgment of the Committee, may have a material adverse effect on the
reported earnings, assets or liabilities of the Company, the Committee shall have the
right and power to modify as necessary, or cancel, any then outstanding and unexercised
Stock Options or Stock Appreciation Rights, any then outstanding Restricted Stock Awards
as to which the applicable restriction has not been satisfied and any other Common Stock
awards or Common Stock Equivalent.

SECTION XVIII OTHER BENEFITS

The
amount of any compensation deemed to be received by an Employee, Director or Consultant as
a result of the exercise of a Stock Option, a Stock Appreciation Right or the sale of
shares received upon such exercise or the vesting of any Restricted Stock Awards or the
receipt of any other Common Stock or Common Stock Equivalent award will not constitute
earnings with respect to which any other benefits provided by the Company or
an Affiliated Corporation to such person are determined, including without limitation
benefits under any pension, profit sharing, life insurance or salary continuation plan.

SECTION XIX PLAN AMENDMENT, MODIFICATION AND TERMINATION

19.1
Amendment or Termination. The Board, upon recommendation of the Committee or at its own initiative,
at any time may terminate and at any time and from time to time and in any respect, may
amend or modify the 1995 Plan. The Company shall obtain stockholder approval of any
amendment to the extent necessary and desirable to comply with Applicable Laws.
Applicable Laws means the requirements relating to the administration of stock
option plans under U.S. state corporate laws, U.S. federal and state securities laws, the
Code, any stock exchange or quotation system on which the Common Stock is listed or quoted
and the applicable laws of any foreign country or jurisdiction where Stock Options, Stock
Appreciation Rights, Restricted Stock Awards or other Common Stock or Common Stock
Equivalent awards are, or will be, granted under the 1995 Plan.

19.2
Effect of Amendment.

|(a) |  | With regard to any Stock Option, Stock Appreciation Right, Restricted Stock
                    Award or other Common Stock. Equivalent awards that has been granted to a
                    Participant, the terms and conditions of the Companys 1995 equity
                    participation plan in effect on the date of such grant was made shall govern,
                    notwithstanding subsequent amendments, unless otherwise agreed upon by the
                    Participant; provided, however, that this sentence shall not impair the right of
                    the Committee to take whatever action it deems appropriate under Section 4.3,
                    Section 14 or Section 17.3 or Section 29.4; provided further, that the
                    Boards deletion of its right pursuant to Section 3.1(ix) hereof shall be
                    effective as to all Stock Options and Stock Appreciation Rights issued under.
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | Except as set forth in Section 19.2 (a) hereof, the termination or any
                    modification or amendment of the 1995 Plan shall not, without the consent of a
                    Participant, affect his or her rights under a Stock Option, Stock Appreciation
                    Right, Restricted Stock Award or other Common Stock or Common Stock Equivalent
                    award previously granted to him or her. With the consent of the Participant
                    affected, the Committee may amend outstanding option agreements in a manner not
                    inconsistent with the 1995 Plan.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

19.3
Preservation of Incentive Stock Options. The Board shall have the right to amend or modify
the terms and provisions of the 1995 Plan and of any outstanding Incentive Stock Options
granted under the 1995 Plan to the extent necessary to qualify any or all such Stock
Options for such favorable treatment as may be afforded Incentive Stock Options under
Section 422 of the Internal Revenue Code.

SECTION XX WITHHOLDING

20.1
Withholding Requirement. The Companys obligations to deliver shares of Common Stock
upon the exercise of any Stock Option or Stock Appreciation Right granted under the 1995
Plan or upon any MBO Payment under the 1995 Plan or pursuant to any other Common Stock or
Common Stock Equivalent award, shall be subject to the Participants satisfaction of
all applicable federal, state and local income and other tax withholding requirements.

20.2
Withholding With Common Stock. The Committee may, in its sole discretion, allow
Participants to pay all or any portion of any tax withholding obligation that results from
Stock Options, Stock Appreciation Rights, MBO Payments, or any other Common Stock or
Common Stock Equivalent award, by electing to transfer to the Company, or to have the
Company withhold from shares otherwise issuable to the Participant, shares of Common Stock
having a value equal to the amount required to be withheld or such lesser amount as may be
elected by the Participant. Any such withholding election shall be subject to such terms
and conditions as the Committee may, from time to time, establish; provided, that, in the
case of a Participant who is an officer or director of the Company within the meaning of
Section 16 of the Exchange Act, then the approval by the Committee of the grant of the
award shall be deemed to include approval by the Committee of the election by such
Participant to utilize this withholding provision, unless otherwise specified in the
agreement relating to the award.

SECTION XXI REQUIREMENTS OF LAW

21.1
Requirements of Law. The issuance of stock and the payment of cash pursuant to the 1995
Plan shall be subject to all applicable laws, rules and regulations.

21.2
Governing Law. The 1995 Plan and all agreements hereunder shall be construed in accordance
with and governed by the laws of the State of Colorado.

SECTION XXII EFFECTIVE DATE OF THE 1995 PLAN

22.1
Effective Date. The Original Plan became effective as of March 8, 1995, the date it was
adopted by the Board of Directors of the Company. Each subsequent Amendment became
effective as of the date it was adopted by the Board of Directors of the Company..

22.2
Duration of the 1995 Plan. The 1995 Plan shall terminate at midnight on March 7, 2005,
which is the day before the tenth anniversary of the Effective Date, and may be terminated
prior thereto by Board action; and no Stock Option, Stock Appreciation Right, Restricted
Stock Award or other Common Stock or Common Stock Equivalent award shall be granted after
such termination. Stock Options, Stock Appreciation Rights, Restricted Stock Awards and
other Common Stock and Common Stock Equivalent awards outstanding at the time of the 1995
Plan termination may continue to be exercised, or become free of restrictions, in
accordance with their terms.