<PAGE>

                                                                    Exhibit 10.2

                                  BLUEFLY, INC.
                             1997 STOCK OPTION PLAN

SECTION 1. PURPOSE

         The purposes of this Bluefly, Inc. 1997 Stock Option Plan (the "Plan")
are to encourage selected employees, consultants and directors of Bluefly, Inc.
(together with any successor thereto, the "Company' ) and its Affiliates (as
defined below) to acquire a proprietary interest in the growth and performance
of the Company, to generate an increased incentive to contribute to the
Company's future success and prosperity, thus enhancing the value of the Company
for the benefit of its shareholders, and to enhance the ability of the Company
and its Affiliates to attract and retain qualified individuals upon whom, in
large measure, the sustained progress, growth, and profitability of the Company
depend.

SECTION 2. DEFINITIONS

         As used in the Plan, the following terms shall have the meanings set
forth below:

         (a) "Affiliate" shall mean any entity that, directly or through one or
more intermediaries, is controlled by, controls or is under common control with
the Company.

         (b) "Board" shall mean the Board of Directors of the Company.

         (c) "Code" shall mean the Internal Revenue Code of 1986, as amended
from time to time.

         (d) "Committee" shall mean a committee of the Board designated by the
Board to administer the Plan and composed of not less than two directors, each
of whom is both a non-employee director within the meaning of Rule 16b-3 and an
"outside director" as that term is defined for purposes of Section 162(m) of the
Code.

         (e) "Consultant" shall mean any Person who contracts to provide
services to the Company as an independent contractor.

         (f) "Fair Market Value" shall mean, with respect to Shares or other
securities (i) the closing price per Share of the Shares on the principal
exchange on which the Shares are then trading, if any, on such date, or, if the
Shares were not traded on such date, then on the next preceding trading day
during which a sale occurred; or (ii) if the Shares are not traded on an
exchange but are quoted on NASDAQ or a successor quotation system, (1) the last
sales price (if the Shares are then listed as a National Market Issue under the
NASDAQ National Market System) or (2) the mean between the closing
representative bid and asked prices (in all other cases) for the Shares on such
date as reported by NASDAQ or such successor quotation system; or (iii) if the
Shares are not publicly traded on an exchange and not quoted on NASDAQ or a
successor quotation system, the mean between the closing bid and asked prices
for the Shares on such date as determined in good faith by the Committee; or
(iv) if the provisions of clauses (i), (ii) and (iii) shall not be applicable,
the fair market value established by the Committee acting in good faith.

         (g) "Incentive Stock Option" shall mean an option granted under Section
6 of the Plan that meets the requirements of Section 422 of the Code or any
successor provision thereto.

         (h) "Key Employee" shall mean any officer, director or other employee
who is a regular full-time employee of the Company or its present and future
Affiliates.

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                                                                    Exhibit 10.2

         (i) "Non-Employee Director" shall mean each member of the Board who is
not an employee of the Company or any Affiliate.

         (j) "Non-Qualified Stock Option" shall mean an option granted under the
Plan that is not an Incentive Stock Option.

         (k) "Option" shall mean an Incentive Stock Option or a Non-Qualified
Stock Option.

         (1) "Option Agreement" shall mean a written agreement, contract, or
other instrument or document evidencing an Option granted under the Plan.

         (m) "Participant" shall mean a Key Employee, Consultant or Non-Employee
Director who has been granted an Option under the Plan.

         (n) "Person" shall mean any individual, corporation, partnership,
association, joint-stock company, trust, unincorporated organization, or
government or political subdivision thereof.

         (o) "Rule 16b-3" shall mean Rule 16b-3 promulgated by the Securities
and Exchange Commission under the Securities Exchange Act of 1934, as amended,
or any successor rule or regulation thereto.

         (p) "Shares" shall mean the common stock of the Company, $.01 par
value, and such other securities or property as may become the subject of
Options pursuant to an adjustment made under Section 4(b) of the Plan.

         (q) "Ten Percent Shareholder" shall mean a Person, who together with
his or her spouse, children and trusts and custodial accounts for their benefit,
immediately at the time of the grant of an Option and assuming its immediate
exercise, would beneficially own, within the meaning of Section 424(d) of the
Code, Shares possessing more than ten percent (10%) of the total combined voting
power of all of the outstanding capital stock of the Company.

SECTION 3. ADMINISTRATION

         (a) Generally. The Plan shall be administered by the Committee. Unless
otherwise expressly provided in the Plan, all designations, determinations,
interpretations and other decisions under or with respect to the Plan or any
Option shall be within the sole discretion of the Committee, may be made at any
time, and shall be final, conclusive, and binding upon all Persons, including
the Company, any Affiliate, any Participant, any holder or beneficiary of any
Option, any shareholder of the Company or any Affiliate, and any employee of the
Company or of any Affiliate.

         (b) Powers. Subject to the terms of the Plan and applicable law and
except as provided in Section 7 hereof, the Committee shall have full power and
authority to: (i) designate Participants; (ii) determine the type or types of
Options to be granted to each Participant under the Plan; (iii) determine the
number of Shares to be covered by Options; (iv) determine the terms and
conditions of any Option; (v) determine whether, to what extent, and under what
circumstances Options may be settled or exercised in cash, Shares, other
Options, or other property, or canceled, forfeited, or suspended, and the method
or methods by which Options may be settled, exercised, canceled, forfeited, or
suspended; (vi) interpret and administer the Plan and any instruments or
agreements relating to, or Options granted under, the Plan; (vii) establish,
amend, suspend, or waive such rules and regulations and appoint such agents as
it shall deem appropriate for the proper administration of the Plan; and (viii)
make any other determination and take any other action that the Committee deems
necessary or desirable for the administration of the Plan.

         (c) Reliance, Indemnification. The Committee may employ attorneys,
consultants, accountants or other persons and the Committee, the Company and its
officers and directors shall be entitled to rely upon the advice,



                                       2
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                                                                    Exhibit 10.2

opinions or valuations of any such persons. No member of the Committee shall be
personally liable for any action, determination or interpretation taken or made
in good faith with respect to the Plan, or Options granted thereunder and all
members of the Committee shall be fully indemnified and protected by the Company
in respect of any such action, determination or interpretation.

SECTION 4. SHARES AVAILABLE FOR OPTIONS

         (a) Shares Available. Subject to adjustment as provided in Section
4(b):

                  (i) Limitation on Number of Shares. Options issuable under the
         Plan are limited such that the maximum aggregate number of Shares which
         may issued to Key Employees, Consultants and Non-Employee Directors
         pursuant to, or by reason of, Options is 1,500,000. No Participant
         shall be granted in any one fiscal year Options to purchase more than
         100,000 Shares. To the extent that an Option granted to a Participant
         ceases to remain outstanding by reason of termination of rights granted
         thereunder, forfeiture or otherwise, the Shares subject to such Option
         shall again become available for award under the Plan; provided,
         however, that in the case of the cancellation or termination of an
         Option in the same fiscal year that such Option was granted, both the
         canceled Option and the newly granted Option shall be counted in
         determining whether the recipient has received the maximum number of
         such Options under the Plan for such fiscal year.

                  (ii) Accounting for Awards. For purposes of this Section 4,
         the number of Shares covered by an Option to (A) a Key Employee or
         Consultant or (B) a Non-Employee Director shall be counted on the date
         of grant of such Option against the aggregate number of Shares
         available for granting Options under the Plan to (x) Key Employees and
         Consultants or (y) Non-Employee Directors, respectively.

                  (iii) Sources of Shares Deliverable Under Options. Any Shares
         delivered pursuant to an Option may consist, in whole or in part, of
         authorized and unissued Shares or of treasury Shares.

         (b) Adjustments. In the event that the Committee shall determine that
any (i) subdivision or consolidation of Shares, (ii) dividend or other
distribution (in the form of Shares), (iii) recapitalization or other capital
adjustment of the Company or (iv) merger, consolidation or other reorganization
of the Company or other rights to purchase Shares or other securities of the
Company, or other similar corporate transaction or event (of a type described in
Treasury Regulation Section 1.162- 27(e)(2)(iii)(C)), affects the Shares such
that an adjustment is determined by the Committee to be appropriate in order to
prevent dilution or enlargement of the benefits or potential benefits intended
to be made available under the Plan, then the Committee shall, in such manner as
it may deem necessary to prevent dilution or enlargement of the benefits or
potential benefits intended to be made under the Plan, adjust any or all of (x)
the number and type of Shares which thereafter may be made the subject of
Options, (y) the number and type of Shares subject to outstanding Options, and
(z) the grant, purchase, or exercise price with respect to an Option or, if
deemed appropriate, make provision for a cash payment to the holder of an
outstanding Option, provided, however, in each case, that (i) with respect to
Incentive Stock Options no such adjustment shall be authorized to the extent
that such adjustment would cause the Plan to violate Section 422 of the Code or
any successor provision thereto; (ii) each such adjustment shall be made in such
manner as not to constitute a cancellation and reissuance of a Non-Qualified
Stock Option for purposes of Section 162(m) of the Code, or the regulations
promulgated thereunder, to the extent that such reissuance would result in the
grant of such Options in excess of the maximum permitted to be granted to any
Participant in any fiscal year; and (iii) the number of Shares subject to any
Option denominated in Shares shall always be a whole number.

SECTION 5. ELIGIBILITY

         Options may be granted only to Key Employees, Consultants and
Non-Employee Directors; provided, however, that Incentive Stock Options may be
granted only to Key Employees. In determining the Persons to whom



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                                                                    Exhibit 10.2

Options shall be granted and the number of Shares to be covered by each Option,
the Committee shall take into account the nature of the Person's duties, such
Person's present and potential contributions to the success of the Company and
such other factors as it shall deem relevant in connection with accomplishing
the purposes of the Plan. A Key Employee or Consultant who has been granted an
Option or Options under the Plan may be granted an additional Option or Options,
subject to such limitations as may be imposed by the Code on the grant of
incentive Stock Options.

SECTION 6. OPTION

         The Committee is hereby authorized to grant Options to Participants
upon the following terms and the conditions (except to the extent otherwise
provided in Section 7) and with such additional terms and conditions, in either
case not inconsistent with the provisions of the Plan, as the Committee shall
determine:

                  (a) Exercise Price. The purchase price per Share purchasable
         under Incentive Stock Options shall not be less than 100% of the Fair
         Market Value of a Share on the date of grant; provided that the
         purchase price per Share purchasable under Incentive Stock Options
         granted to Ten Percent Shareholders shall be not less than 110% of the
         Fair Market Value of a Share on the date of grant. The purchase price
         per Share purchasable under Non-Qualified Stock Options shall be the
         price determined by the Committee.

                  (b) Option Term. The term of each Non-Qualified Stock Option
         shall be fixed by the Committee. The term of each Incentive Stock
         Option shall in no event be more than 10 years from the date of grant,
         or in the case of an Incentive Stock Option granted to a Ten Percent
         Shareholder, 5 years from the date of grant.

                  (c) Time and Method of Exercise. The Committee shall determine
         the time or times at which an Option may be exercised in whole or in
         part, and the method or methods by which, and the form or forms in
         which, payment of the option price with respect thereto may be made or
         deemed to have been made (including, without limitation, (i) cash,
         Shares, outstanding Options or other consideration, or any combination
         thereof, having a Fair Market Value on the exercise date equal to the
         relevant option price and (ii) a broker-assisted cashless exercise
         program established by the Committee), provided in each case that such
         methods avoid "short-swing" profits to the Participant under Section
         16(b) of the Securities Exchange Act of 1934, as amended. The payment
         of the exercise price of an Option may be made in a single payment or
         transfer, in installments, or on a deferred basis, in each case in
         accordance with rules and procedures established by the Committee.

                  (d) Early Termination. The unexercised portion of any Option
         granted to a Key Employee or Consultant under the Plan will generally
         be terminated (i) thirty (30) days after the date on which the Key
         Employee's employment is terminated or the period of the Consultant's
         services ceases, as the case may be, for any reason other than (A)
         Cause (as defined below), (B) retirement or mental or physical
         disability, or (C) death; (ii) immediately upon the termination of the
         Key Employee's employment for Cause; (iii) in the case of any Incentive
         Stock Option, three months after the date on which the Key Employee's
         employment is terminated by reason of retirement or one year after the
         Key Employee's employment is terminated by reason of mental or physical
         disability, or in the case of any Non-Qualified Stock Option, three
         months after the date on which the Key Employee's employment is
         terminated or the period of the Consultant's services ceases, as the
         case may be, by reason of retirement or mental or physical disability,
         or in the discretion of the Committee up to one year after the date on
         which the Key Employee's employment is terminated or the period of the
         Consultant's services ceases, as the case may be, by reason of
         retirement or mental or physical disability; or (iv)(A) 12 months after
         the date on which the Key Employee's employment is terminated or the
         period of the Consultant's services ceases, as the case may be, by
         reason of the death of the Key Employee or the Consultant, as the case
         may be, or (B) three months after the date on which the Key Employee or
         the Consultant, as the case may be, shall die if such death shall occur
         during the three-month



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                                                                    Exhibit 10.2

         period following the termination of the Key Employee's employment or
         the cessation of the Consultant's services, as the case may be, by
         reason of retirement or mental or physical disability. The term
         "Cause," as used herein, shall mean (w) the Key Employee's willful
         misconduct or fraud in the performance of his duties under such Key
         Employee's employment arrangement with the Company, (x) the continued
         failure or refusal of the Key Employee (following written notice
         thereof) to carry out any reasonable request of the Board for the
         provision of services under such Key Employee's employment arrangement
         with the Company, (y) the material breach by the Key Employee of his
         employment arrangement with the Company or (z) the entering of a plea
         of guilty or nolo contendere to or the conviction of the Key Employee
         for a felony or any other criminal act involving moral turpitude,
         dishonesty, theft or unethical business conduct. For purposes of this
         paragraph (d), no act shall be considered willful unless done or
         omitted to be done not in good faith and without reasonable belief that
         such action or omission was in the best interest of the Company.

                  (e) Incentive Stock Options. All terms of any Incentive Stock
         Option granted under the Plan shall comply in all respects with the
         provisions of Section 422 of the Code, or any successor provision
         thereto, and any regulations promulgated thereunder.

                  (f) No Cash Consideration for Awards. Awards shall be granted
         for no cash consideration or such minimal cash consideration as may be
         required by applicable law.

                  (g) Limits on Transfer of Options. Subject to Code Section
         422, no Option and no right under any such Option, shall be assignable,
         alienable, saleable, or transferable by a Participant otherwise than by
         will or by the laws of descent and distribution; provided, however,
         that, if so determined by the Committee, a Participant may, in the
         manner established by the Committee, designate a beneficiary or
         beneficiaries to exercise the rights of the Participant, and to receive
         any property distributable, with respect to any Option upon the death
         of the Participant. Each Option, and each right under any such Option,
         shall be exercisable during the Participant's lifetime, only by the
         Participant or, if permissible under applicable law with respect to any
         Option that is not an Incentive Stock Option, by the Participant's
         guardian or legal representative. No Option and no right under any such
         Option, may be pledged, alienated, attached, or otherwise encumbered,
         and any purported pledge, alienation, attachment, or encumbrance
         thereof shall be void and unenforceable against the Company or any
         Affiliate.

                  (h) Term of Options. Except as set forth in Section 6(b) and
         Section 7, the term of each Option shall be for such period as may be
         determined by the Committee.

                  (i) Share Certificates. All certificates for Shares or other
         securities of the Company delivered under the Plan pursuant to any
         Option or the exercise thereof shall be subject to such stop transfer
         orders and other restrictions as the Committee may deem advisable under
         the Plan or the rules, regulations, and other restrictions of the
         Securities and Exchange Commission, any stock exchange upon which such
         Shares or other securities are then listed, and any applicable Federal
         or state securities laws, and the Committee may cause a legend or
         legends to be put on any such certificates to make appropriate
         reference to such restrictions.

SECTION 7. OPTIONS AWARDED TO NON-EMPLOYEE DIRECTORS

         Each Non-Employee Director who was a member of the Board on the
Effective Date (defined hereafter) shall automatically be granted on such date a
Non-Qualified Stock Option to purchase 5,000 Shares, subject to all of the
provisions of the Plan. Each person who is either elected or appointed a
Non-Employee Director, and who has not previously received a grant of
Non-Qualified Stock Options pursuant to the Plan, shall automatically be granted
a Non-Qualified Stock Option to purchase 3,750 Shares on the date of their
appointment or election, subject to the provisions of the Plan. In addition,
each Non-Employee Director who is a member of the Board on April 30 of a year
during the term of the Plan beginning in calendar year 1998 shall automatically
be granted a Non-Qualified


                                       5
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                                                                    Exhibit 10.2

Stock Option to purchase 3,750 Shares on May 1of the following year. All Options
granted to Non-Employee Directors pursuant to the Plan shall (a) be (in the case
of a grant under this Section 7) at an exercise price per Share equal to 100% of
the Fair Market Value of a Share on the date of the grant; (b) have (in the case
of a grant under this Section 7) a term of 10 years; (c) terminate (i) thirty
(30) days after termination of a Non-Employee Director's service as a director
of the Company for any reason other than retirement or mental or physical
disability or death, (ii) thirty (30) days after the date the Non-Employee
Director ceases to serve as a director of the Company due to retirement or
physical or mental disability, or in the discretion of the Committee up to one
year after the date the Non-Employee Director ceases to serve as a director of
the Company due to retirement or physical or mental disability or (iii)(A) 12
months after the date the Non-Employee Director ceases to serve as a director
due to the death of the Non-Employee Director or (B) three months after the
death of the Non-Employee Director if such death shall occur during the three
month period following the date the Non-Employee Director ceased to serve as a
director of the Company due to physical or mental disability; and (d) be
otherwise on the same terms and conditions as all other Options granted pursuant
to the Plan.

SECTION 8. AMENDMENT AND TERMINATION

         Except to the extent prohibited by applicable law and unless otherwise
expressly provided in an Option Agreement or in the Plan:

         (a) Amendments to the Plan. The Plan may be wholly or partially amended
or otherwise modified, suspended or terminated at any time or from time to time
by the Board, but no amendment without the approval of the shareholders of the
Company shall be made if shareholder approval would be required under Section
162(m) of the Code, Section 422 of the Code, Rule 16b-3 or any other law or rule
of any governmental authority, stock exchange or other self-regulatory
organization to which the Company is subject. Neither the amendment, suspension
or termination of the Plan shall, without the consent of the holder of such
Option, alter or impair any rights or obligations under any Option theretofore
granted.

         (b) Adjustments of Options Upon the Occurrence of Certain Unusual or
Nonrecurring Events. The Committee shall be authorized to make adjustments in
the terms and conditions of, and the criteria included in, Options in
recognition of unusual or nonrecurring events (including, without limitation,
the events described in Section 4(b) hereof) affecting the Company, any
Affiliate, or the financial statements of the Company or any Affiliate or of
changes in applicable laws, regulations, or accounting principles, whenever the
Committee determines that such adjustments are appropriate in order to prevent
enlargement of the benefits or potential benefits to be made available under the
Plan.

         (c) Correction of Defects, Omissions, and Inconsistencies. The
Committee may correct any defect, supply any omission or reconcile any
inconsistency in the Plan or any Option in the manner and to the extent it shall
deem desirable to carry the Plan into effect.

SECTION 9. ELECTION TO HAVE SHARES WITHHELD

         (a) In combination with or in substitution for cash withholding or any
other legal method of satisfying federal and state withholding tax liability, a
Participant may elect to have Shares withheld by the Company or to have Shares
sold in a broker-assisted transaction in order to satisfy federal and state
withholding tax liability (a "share withholding election"), provided (i) the
Committee shall have adopted procedures providing for a withholding election;
and (ii) the share withholding election is made on or prior to the date on which
the amount of withholding tax liability is determined (the "Tax Date"). If a
Participant elects within thirty (30) days of the date of exercise to be subject
to withholding tax on the exercise date pursuant to the provisions of Section
83(b) of the Code, then the share withholding election may be made during such
thirty (30) day period. Notwithstanding the foregoing, a holder whose
transactions in Common Stock are subject to Section 16(b) of the Securities
Exchange Act of 1934, as amended, may make a share withholding election only if
the following additional conditions are met: (i) the share withholding


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                                                                    Exhibit 10.2

election is made no sooner than six (6) months after the date of grant of the
Option, except, however, such six (6) month condition shall not apply if the
Participant's death or disability (as shall be determined by the Committee)
occurs within such six (6) month period; and (ii) the share withholding election
is made (x) at least six (6) months prior to the Tax Date, or (y) during the
period beginning on the third business day following the date of release of the
Company's quarterly or annual financial results and ending on the twelfth
business day following such date.

         (b) A share withholding election shall be deemed made when written
notice of such election, signed by the Participant, has been hand delivered or
transmitted by registered or certified mail to the Secretary of the Company at
its then principal office. Delivery of said notice shall constitute an
irrevocable election to have Shares withheld.

         (c) If a Participant has made a share withholding election pursuant to
this Section 9, and (i) within thirty (30) days of the date of exercise of the
Option, the Participant elects pursuant to the provisions of Section 83(b) of
the Code to be subject to withholding tax on the date of exercise of the Option,
then such Participant will be unconditionally obligated to immediately tender
back to the Company the number of Shares having an aggregate fair market value
(as determined in good faith by the Committee), equal to the amount of tax
required to be withheld plus cash for any fractional amount, together with
written notice to the Company informing the Company of the Participant's
election pursuant to Section 83(b) of the Code; or (ii) if the Participant has
not made an election pursuant to the provisions of Section 83(b) of the Code,
then on the Tax Date, such Participant will be unconditionally obligated to
tender back to the Company the number of Shares having an aggregate fair market
value (as determined in good faith by the Committee), equal to the amount of tax
required to be withheld plus cash for any fractional amount.

SECTION 10. VESTING LIMITATION ON INCENTIVE STOCK OPTIONS

         The Fair Market Value of Shares subject to Incentive Stock Options
(determined as of the date such Incentive Stock Options are granted) exercisable
for the first time by any individual during any calendar year shall in no event
exceed $100,000.

SECTION 11.                GENERAL PROVISIONS

         (a) No Rights to Awards. No Key Employee or Consultant shall have any
claim to be granted any Option under the Plan, and there is no obligation for
uniformity of treatment of Key Employees or Consultants or holders or
beneficiaries of Options under the Plan. The terms and conditions of Options
need not be the same with respect to each recipient.

         (b) No Limit on Other Plans. Nothing contained in the Plan shall
prevent the Company or any Affiliate from adopting or continuing in effect other
or additional compensation arrangements and such arrangements may be either
generally applicable or applicable only in specific cases.

         (c) No Right to Employment. The grant of an Option shall not be
construed as giving a Participant the right to be retained in the employ of the
Company or any Affiliate. Further, the Company or an Affiliate may at any time
dismiss a Participant from employment, free from any liability, or any claim
under the Plan, unless otherwise expressly provided in the Plan or in any Option
Agreement.

         (d) Governing Law. The validity, construction, and effect of the Plan
and any rules and regulations relating to the Plan shall be determined in
accordance with the laws of the State of New York and applicable Federal law.

         (e) Severability. If any provision of the Plan or any Option is or
becomes or is deemed to be invalid, illegal, or unenforceable in any
jurisdiction, or would disqualify the Plan or any Option under any law deemed

                                       7
<PAGE>

                                                                    Exhibit 10.2

applicable by the Committee, such provision shall be construed or deemed amended
to conform to applicable laws, or if it cannot be construed or deemed amended
without, in the determination of the Committee, materially altering the intent
of the Plan, such provision shall be deemed void, stricken and the remainder of
the Plan and any such Option shall remain in full force and effect.

         (f) No Trust or Fund Created. Neither the Plan nor any Option shall
create or be construed to create a trust or separate fund of any kind or a
fiduciary relationship between the Company or any Affiliate and a Participant or
any other Person. To the extent that any Person acquires a right to receive
payments from the Company or any Affiliate pursuant to an Option, such right
shall be no greater than the right of any unsecured general creditor of the
Company or any Affiliate.

         (g) No Fractional Shares. No fractional Shares shall be issued or
delivered pursuant to the Plan or any Option, and the Committee shall determine
whether cash, other securities, or other property shall be paid or transferred
in lieu of any fractional Shares or whether such fractional Shares or any rights
thereto shall be canceled, terminated, or otherwise eliminated.

         (h) Headings. Headings are given to the Sections and subsections of the
Plan solely as a convenience to facilitate reference. Such headings shall not be
deemed in any way material or relevant to the construction or interpretation of
the Plan or any provision hereof.

SECTION 12. DEDUCTIBILITY OF COMPENSATION

         Prior to the end of the "reliance period" as defined in Treasury
Regulation Section 1.162-27(f)(2), the Committee shall take such actions, if
any, that it deems necessary or appropriate so that the compensation element of
Non-Qualified Stock Options will qualify as "qualified performance-based
compensation," within the meaning of Treasury Regulation Section 1.162-27(e).

SECTION 13. EFFECTIVE DATE OF THE PLAN

         The Plan is effective as of the closing of the Company's initial public
offering (the "Effective Date").

SECTION 14. TERM OF THE PLAN

         The Plan shall continue until the earlier of (i) the date on which all
Options issuable hereunder have been issued, (ii) the termination of the Plan by
the Board or (iii) March 4, 2007. However, unless otherwise expressly provided
in the Plan or in an applicable Option Agreement, any Option theretofore granted
may extend beyond such date and the authority of the Committee to amend, alter,
adjust, suspend, discontinue, or terminate any such Option or to waive any
conditions or rights under any such Option, and the authority of the Board to
amend the Plan, shall extend beyond such date.

                                       8