Document:

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                                                                   EXHIBIT 10.27

                             ALDERWOODS GROUP, INC.

                           2002 EQUITY INCENTIVE PLAN

1.   PURPOSE. The purpose of the 2002 Equity Incentive Plan is to attract and
     retain officers, Directors and other key employees of Alderwoods Group,
     Inc., a Delaware corporation, and its Subsidiaries and to provide to such
     persons incentives and rewards for superior performance.

2.   DEFINITIONS. As used in this Plan,

     (a)       "Board" means the Board of Directors of the Company and, to the
          extent of any delegation by the Board to a committee (or subcommittee
          thereof) pursuant to Section 11 of this Plan, such committee (or
          subcommittee).

     (b)       "Business Combination" will have the meaning provided in Section
          7 of this Plan.

     (c)       "Canadian Tax Act" means the INCOME TAX ACT (Canada) as amended
          from time to time.

     (d)       "Change in Control" will have the meaning provided in Section 7
          of this Plan.

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

     (f)       "Committee" will have the meaning provided in Section 11 of this
          Plan.

     (g)       "Common Shares" means the shares of common stock, par value $0.01
          per share, of the Company or any security into which such Common
          Shares may be changed by reason of any transaction or event of the
          type referred to in Section 6 of this Plan.

     (h)     "Company" means Alderwoods Group, Inc., a Delaware corporation.

     (i)     "Date of Grant" means the date specified by the Board on which a
          grant of Option Rights will become effective (which date will not be
          earlier than the date on which the Board takes action with respect
          thereto).

     (j)       "Director" means a member of the Board of Directors of the
          Company.

     (k)       "Effective Date" means the effective date of the confirmation by
          the U.S. Bankruptcy Court of the Company's plan of reorganization.

     (l)       "Incumbent Board" will have the meaning provided in Section 7 of
          this Plan.

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     (m)       "Market Value per Share" means, as of any particular date, (i)
          the closing sale price per Common Share as reported on the principal
          exchange on which Common Shares are then trading, if any, or, if
          applicable, the NASDAQ National Market System, or if there are no
          sales on such day, on the next preceding trading day during which a
          sale occurred, or (ii) as otherwise determined by the Board.

     (n)       "Non-Employee Director" means a Director who is not an employee
          of the Company or any Subsidiary.

     (o)       "Optionee" means the optionee named in an agreement evidencing an
          outstanding Option Right.

     (p)       "Option Price" means the purchase price payable on exercise of an
          Option Right.

     (q)       "Option Right" means the right to purchase Common Shares upon
          exercise of an option granted pursuant to Section 4 of this Plan.

     (r)       "Participant" means a person who is selected by the Board to
          receive benefits under this Plan and who is at the time an officer,
          Non-Employee Director or other key employee of the Company or any one
          or more of its Subsidiaries.

     (s)       "Person" will have the meaning provided in Section 7 of this
          Plan.

     (t)       "Plan" means this 2002 Equity Incentive Plan.

     (u)       "Spread" means the excess of the Market Value per Share on the
          date when Option Rights are surrendered in payment of the Option
          Price, over the Option Price provided for in the related Option Right.

     (v)       "Subsidiary" means a corporation, company or other entity (i)
          more than 50 percent of whose outstanding shares or securities
          (representing the right to vote for the election of directors or other
          managing authority), which securities entitled the holder to elect a
          majority of the directors of such corporation, company or entity, are,
          or (ii) which does not have outstanding shares or securities (as may
          be the case in a partnership, joint venture or unincorporated
          association), but more than 50 percent of whose ownership interest
          representing the right generally to make decisions for such other
          entity is, now or hereafter, owned or controlled, directly or
          indirectly, by the Company.

     (w)       "Voting Stock" means, at any time, securities entitled to vote
          generally in the election of Directors.

3.   SHARES AVAILABLE UNDER THE PLAN.

     (a)       Subject to adjustment as provided in Section 3(b) and Section 6
          of this Plan, the number of Common Shares that may be issued or
          transferred upon the exercise of Option Rights or in payment of
          dividend equivalents paid with respect to awards made

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          under the Plan will not exceed in the aggregate 4.5 million Common
          Shares, plus any shares described in Section 3(b). Such shares may be
          shares of original issuance or treasury shares or a combination of the
          foregoing.

     (b)       The number of shares available in Section 3(a) above will be
          adjusted to account for shares relating to awards that expire, are
          forfeited or are transferred, surrendered or relinquished upon the
          payment of any Option Price by the transfer to the Company of Common
          Shares or upon satisfaction of any withholding amount.

     (c)       Notwithstanding anything in this Section 3, or elsewhere in this
          Plan, to the contrary and subject to adjustment as provided in
          Section 6 of this Plan, no Participant will be granted Option Rights
          for more than 1,000,000 Common Shares during any calendar year.

4.        OPTION RIGHTS. The Board may, from time to time and upon such terms
     and conditions as it may determine, authorize the granting to Participants
     of options to purchase Common Shares. Each such grant may utilize any or
     all of the authorizations, and will be subject to all of the requirements
     contained in the following provisions:

     (a)       Each grant will specify the number of Common Shares to which it
          pertains subject to the limitations set forth in Section 3 of this
          plan.

     (b)       Each grant will specify an Option Price per share, which may not
          be less than the Market Value per Share on the Date of Grant.

     (c)       Each grant will specify whether the Option Price will be payable
          (i) in cash or by check acceptable to the Company, (ii) by the actual
          or constructive transfer to the Company of Common Shares owned by the
          Optionee for at least six months (or other consideration authorized
          pursuant to Section 4(d)) having a value at the time of exercise equal
          to the total Option Price, or (iii) by a combination of such methods
          of payment. Notwithstanding the foregoing, the grant in respect of
          Participants who are residents of Canada for purposes of the Canadian
          Tax Act will specify that the Option Price will be payable in cash or
          check acceptable to the company.

     (d)       The Board may determine, at or after the Date of Grant, subject
          to applicable law, that payment of the Option Price of any Option
          Right by a Participant, other than a Participant who is a resident of
          Canada for purposes of Canadian Tax Act, may also be made in whole or
          in part in the form of Common Shares that are forfeitable or subject
          to restrictions on transfer or other Option Rights (based on the
          Spread on the date of exercise). Unless otherwise determined by the
          Board at or after the Date of Grant, whenever any Option Price is paid
          in whole or in part by means of any of the forms of consideration
          specified in this Section 4(d), the Common Shares received upon the
          exercise of the Option Rights will be subject to such risks of
          forfeiture or restrictions on transfer as may correspond to any that
          apply to the consideration surrendered, but only to the extent,
          determined with respect to the consideration surrendered, of the
          Spread of any unexercisable portion of Option Rights.

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     (e)       Any grant to a Participant, other than a grant to a Participant
          who is a resident of Canada for purposes of the Canadian Tax Act, may
          provide for deferred payment of the Option Price from the proceeds of
          sale through a bank or broker on a date satisfactory to the Company of
          some or all of the shares to which such exercise relates.

     (f)       Successive grants may be made to the same Participant whether or
          not any Option Rights previously granted to such Participant remain
          unexercised.

     (g)       Each grant will specify the period or periods of continuous
          service by the Optionee with the Company or any Subsidiary that is
          necessary before the Option Rights or installments thereof will become
          exercisable and may provide for the earlier exercise of such Option
          Rights in the event of a Change in Control.

     (h)       Any grant of Option Rights may specify management objectives that
          must be achieved as a condition to the exercise of such rights.

     (i)       Option Rights granted under this Plan will be options that are
          not intended to qualify under particular provisions of the Code.

     (j)       The Board may, at or after the Date of Grant of any Option
          Rights, provide for the payment of dividend equivalents to the
          Optionee on either a current or deferred or contingent basis or may
          provide that such equivalents will be credited against the Option
          Price.

     (k)       No Option Right will be exercisable more than 10 years from the
          Date of Grant.

     (l)       Each grant of Option Rights will be evidenced by an agreement
          executed on behalf of the Company by an officer and delivered to the
          Optionee and containing such terms and provisions, consistent with
          this Plan, as the Board may approve.

5.   TRANSFERABILITY.

     (a)       Except as otherwise determined by the Board, no Option Right
          granted under the Plan will be transferable by a Participant other
          than by will or the laws of descent and distribution. Except as
          otherwise determined by the Board, Option Rights will be exercisable
          during the Optionee's lifetime only by him or her or by his or her
          guardian or legal representative.

     (b)       The Board may specify at the Date of Grant that part or all of
          the Common Shares that are to be issued or transferred by the Company
          upon the exercise of Option Rights will be subject to further
          restrictions on transfer.

6.        ADJUSTMENTS. The Board may make or provide for such adjustments in the
     numbers of Common Shares covered by outstanding Option Rights granted
     hereunder, in the Option Price, and in the kind of shares covered thereby,
     as the Board, in its sole discretion, exercised in good faith, may
     determine is equitably required to prevent dilution or enlargement of the
     rights of Participants or Optionees that otherwise would result from (a)
     any stock dividend, stock split, combination of shares, recapitalization or
     other change in the capital structure of the Company,

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     or (b) any merger, consolidation, spin-off, split-off, spin-out, split-up,
     reorganization, partial or complete liquidation or other distribution of
     assets, issuance of rights or warrants to purchase securities, or (c) any
     other corporate transaction or event having an effect similar to any of the
     foregoing. Moreover, in the event of any such transaction or event, the
     Board, in its discretion, may provide in substitution for any or all
     outstanding awards under this Plan such alternative consideration as it, in
     good faith, may determine to be equitable in the circumstances and may
     require in connection therewith the surrender of all awards so replaced.
     The Board may also make or provide for such adjustments in the numbers of
     shares specified in Section 3 of this Plan as the Board in its sole
     discretion, exercised in good faith, may determine is appropriate to
     reflect any transaction or event described in this Section 6.

7.        CHANGE IN CONTROL. For purposes of this Plan, a "Change in Control"
     will mean, with respect to a Participant, a change in control as defined in
     any employment, severance or other agreement between the Company or any
     Subsidiary and the Participant, or if there is no such agreement in effect
     that contains a definition of change in control, the occurrence of one or
     more of the following events that occurs other than pursuant to a plan of
     reorganization submitted by the Company and confirmed by the U.S.
     Bankruptcy Court:

          (a) the acquisition by any individual, entity or group (a "Person") of
beneficial ownership of 30% or more of the combined voting power of the then
outstanding Voting Stock of the Company; provided, however, that the following
acquisitions will not constitute a Change in Control: (1) any issuance of Voting
Stock of the Company directly from the Company that is approved by the Incumbent
Board (as defined below), (2) any acquisition by the Company of Voting Stock of
the Company, (3) any acquisition of Voting Stock of the Company by any employee
benefit plan (or related trust) sponsored or maintained by the Company or any
subsidiary of the Company, or (4) any acquisition of Voting Stock of the Company
by any Person pursuant to a Business Combination (as defined below) that would
not constitute a Change in Control;

          (b) the consummation of a reorganization, amalgamation, merger or
consolidation, a sale or other disposition of all or substantially all of the
assets of the Company, or other transaction (each, a "Business Combination") in
which all or substantially all of the individuals and entities who were the
beneficial owners of Voting Stock of the Company immediately prior to such
Business Combination beneficially own, directly or indirectly, immediately
following such Business Combination less than 40% of the combined voting power
of the then outstanding shares of Voting Stock of the entity resulting from such
Business Combination;

          (c) individuals who, as of the Effective Date of the plan of
reorganization confirmed by the U.S. Bankruptcy Court, constitute the Board of
Directors of the Company (the "Incumbent Board") cease for any reason to
constitute at least a majority of the Board; provided, however, that any
individual becoming a Director subsequent to such Effective Date whose election,
or nomination for election by the Company's stockholders, was approved by a vote
of at least two-thirds of the Directors then comprising the Incumbent Board
(either by a specific vote or by approval of the proxy statement of the Company
in which such person is named as a nominee for Director, without objection to
such nomination) will be deemed to have been a member of the Incumbent Board,
but excluding, for this purpose, any such individual whose initial assumption of
office occurs as a result of an actual or threatened election contest with
respect to the election or removal of Directors or other actual or threatened
solicitation of proxies or consents by or on behalf of a Person other than the
Board; or

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          (d) the approval by the stockholders of the Company of a complete
liquidation or dissolution of the Company, except pursuant to a Business
Combination that would not constitute a Change in Control.

8.        FRACTIONAL SHARES. The Company will not be required to issue any
     fractional Common Shares pursuant to this Plan. The Board may provide for
     the elimination of fractions or for the settlement of fractions in cash.

9.        WITHHOLDING TAXES.  To the extent that the Company is required to
     withhold federal, state, local or foreign taxes in connection with any
     payment made or benefit realized by a Participant or other person under
     this Plan, and the amounts available to the Company for such withholding
     are insufficient, it will be a condition to the receipt of such payment or
     the realization of such benefit that the Participant or such other person
     make arrangements satisfactory to the Company for payment of the balance of
     such taxes required to be withheld, which arrangements (in the discretion
     of the Board) may include relinquishment of a portion of such benefit. The
     Company and a Participant or such other person may also make similar
     arrangements with respect to the payment of any taxes with respect to which
     withholding is not required. In no event, however, shall the Company accept
     Common Stock for the payment of taxes in excess of the required tax
     withholding rate, except that, in the discretion of the Committee, a
     Participant or such other person may surrender Common Stock owned for more
     than 6 months to satisfy any tax obligations resulting from any such
     transaction.

10.       FOREIGN EMPLOYEES.  In order to facilitate the making of any grant or
     combination of grants under this Plan, the Board may provide for such
     special terms for awards to Participants who are foreign nationals or who
     are employed by the Company or any Subsidiary outside of the United States
     of America as the Board may consider necessary or appropriate to
     accommodate differences in local law, tax policy or custom. Moreover, the
     Board may approve such supplements to or amendments, restatements or
     alternative versions of this Plan as it may consider necessary or
     appropriate for such purposes, without thereby affecting the terms of this
     Plan as in effect for any other purpose, and the Secretary or other
     appropriate officer of the Company may certify any such document as having
     been approved and adopted in the same manner as this Plan. No such special
     terms, supplements, amendments or restatements, however, will include any
     provisions that are inconsistent with the terms of this Plan as then in
     effect unless this Plan could have been amended to eliminate such
     inconsistency without further approval by the shareholders of the Company.

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11.  ADMINISTRATION OF THE PLAN.

     (a)       This Plan will be administered by the Board, which may from
          time to time delegate all or any part of its authority under this Plan
          to a committee of the Board (or subcommittee thereof) consisting of
          not less than two Non-Employee Directors appointed by the Board (the
          "Committee"). A majority of the committee (or subcommittee) will
          constitute a quorum, and the action of the members of the committee
          (or subcommittee) present at any meeting at which a quorum is present,
          or acts unanimously approved in writing, will be the acts of the
          committee (or subcommittee). To the extent of any such delegation,
          references in this Plan to the Board will be deemed to be references
          to any such committee or subcommittee.

     (b)       The interpretation and construction by the Board of any
          provision of this Plan or of any agreement, notification or document
          evidencing the grant of Option Rights and any determination by the
          Board pursuant to any provision of this Plan or of any such agreement,
          notification or document will be final and conclusive. No member of
          the Board will be liable for any such action or determination made in
          good faith.

12.  AMENDMENTS, ETC.

     (a)       The Board may at any time and from time to time amend the Plan
          in whole or in part; provided, however, that any amendment which must
          be approved by the shareholders of the Company in order to comply with
          applicable law or the rules of the NASDAQ National Market System or,
          if the Common Shares are not traded under the NASDAQ National Market
          System, the principal national securities exchange upon which the
          Common Shares are traded or quoted, will not be effective unless and
          until such approval has been obtained. Presentation of this Plan or
          any amendment hereof for shareholder approval will not be construed to
          limit the Company's authority to offer similar or dissimilar benefits
          under other plans without shareholder approval.

     (b)       The Board will not, without the further approval of the
          shareholders of the Company, authorize the amendment of any
          outstanding Option Right to reduce the Option Price. Furthermore, no
          Option Right will be cancelled and replaced with awards having a lower
          Option Price without further approval of the shareholders of the
          Company. This Section 12(b) is intended to prohibit the repricing of
          "underwater" Option Rights and will not be construed to prohibit the
          adjustments provided for in Section 6 of this Plan.

     (c)       The Board also may permit Participants to elect to defer the
          issuance of Common Shares or the settlement of awards in cash under
          the Plan pursuant to such rules, procedures or programs as it may
          establish for purposes of this Plan. The Board also may provide that
          deferred issuances and settlements include the payment or crediting of
          dividend equivalents or interest on the deferral amounts.

     (d)       The Board may condition the grant of any award authorized
          under this Plan on the surrender or deferral by the Participant of his
          or her right to receive a cash bonus or

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          other compensation otherwise payable by the Company or a Subsidiary to
          the Participant.

     (e)       The Board may, in its sole discretion, (i) accelerate the time
          at which an Option Right not immediately exercisable in full may be
          exercised; (ii) accelerate the time when any transfer restriction
          imposed pursuant to Section 5(b) of this Plan will terminate; or (iii)
          waive any other limitation or requirement under any award, in the case
          of (A) termination of employment by reason of the Participant's death,
          disability or normal or early retirement, (B) termination of the
          Participant's employment pursuant to an agreement between the
          Participant and the Company, or (C) hardship or other special
          circumstances.

     (f)       This Plan will not confer upon any Participant any right with
          respect to continuance of employment or other service with the Company
          or any Subsidiary, nor will it interfere in any way with any right the
          Company or any Subsidiary would otherwise have to terminate such
          Participant's employment or other service at any time.

13.       TERMINATION. No grant will be made under this Plan more than 10 years
     after the date on which this Plan is first approved by the shareholders of
     the Company, but all grants made on or prior to such date will continue in
     effect thereafter subject to the terms thereof and of this Plan.

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                                                                   EXHIBIT 10.28

                             ALDERWOODS GROUP, INC.

                           DIRECTOR COMPENSATION PLAN

1.       PURPOSE. This Alderwoods Group Incorporated Director Compensation Plan
         (the "Plan") is established to allow the outside directors of
         Alderwoods Group, Inc. (the "Company") to participate in the ownership
         of shares of the Company's common stock ("Common Stock").

2.       ADMINISTRATION.

(a)               The Plan shall be administered by the Compensation Committee
                  of the Board of Directors of the Company (the "Committee"),
                  which shall have full power and authority, subject to the
                  provisions of the Plan, to supervise administration of the
                  Plan and to interpret the provisions of the Plan and to
                  authorize and supervise any issuance or payment of Common
                  Stock and any crediting or payment of Deferred Stock (as
                  defined in Section 5 below) hereunder. Any decision by the
                  Committee shall be final and binding on all parties. No member
                  of the Committee shall be liable for any determination made,
                  or any decision or action taken with respect to the Plan or
                  any issuance of Common Stock under the Plan. The Committee may
                  delegate any of its responsibilities to one or more of its
                  affiliates and agents, including employees of the Company or
                  one or more of the Company's affiliates and subsidiaries, and
                  may retain advisors to provide advice to the Committee. No
                  Participant in the Plan shall participate in the making of any
                  decision with respect to any question relating to Common Stock
                  issued under the Plan exclusively to that Participant.

(b)               The Committee shall be vested with full authority to make such
                  rules and regulations as it deems necessary to administer the
                  Plan and to interpret and administer the provisions of the
                  Plan in a uniform manner. Any determination, decision or
                  action of the Committee in connection with the construction,
                  interpretation, administration or application of the Plan
                  shall be final, conclusive and binding on all parties.

(c)               The cost of issuing Common Stock pursuant to the Plan and the
                  expenses of administering the Plan shall be borne by the
                  Company.

3.       ELIGIBILITY. Shares of Common Stock shall be issued to each member of
         the Board of Directors of the Company who is not an employee of the
         Company if such member of the Board of Directors so elects in
         accordance with Section 5, provided that shares of the Company's Common
         Stock remain available for issuance hereunder in accordance with
         Section 4. Each non-employee director of the Company shall be referred
         to herein as a "Participant."

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4.       SHARES SUBJECT TO THE PLAN. The shares subject to the Plan shall be
         authorized but unissued or reacquired shares of the Company's Common
         Stock. Subject to adjustment in accordance with Section 9 of the Plan,
         the maximum number of shares of Common Stock which may be issued and/or
         credited to Accounts (as defined below) as Deferred Stock under the
         Plan shall be 100,000 and the adoption of the Plan by the Board of
         Directors of the Company shall constitute a reservation of 100,000
         authorized but unissued, or reacquired, shares of Common Stock for
         issuance under the Plan.

5.       DIRECTOR COMPENSATION ELECTION.

(a)               The amount of (i) the director retainer fee (the "Retainer"),
                  (ii) the director fees for attendance at meetings of the
                  Company's Board of Directors and/or committees thereof (the
                  "Meeting Fees"), and (iii) any other compensation paid to the
                  directors for services as a director (the "Other
                  Compensation") shall be determined from time to time by the
                  Company's Board of Directors.

(b)               Each Participant may elect to have all or any portion of his
                  or her Retainer, Meeting Fees and/or Other Compensation
                  payable in cash or Common Stock and may further elect to have
                  such Common Stock paid in the form of deferred Common Stock
                  ("Deferred Stock"), which will be credited to a booking
                  account in the name of the Participant (the "Account") in
                  accordance with this Plan.

(c)               An election to receive payment of the Retainer, the Meeting
                  Fees and/or the Other Compensation in the form of Common Stock
                  or Deferred Stock of the Company pursuant Section 5(b) above
                  must be made in writing and delivered to the Company prior to
                  the start of the calendar year in which the Retainer, the
                  Meeting Fees and/or the Other Compensation would otherwise be
                  paid and such election will be irrevocable for the affected
                  calendar year (the "Affected Year"). To participate in the
                  Plan during the calendar year in which the Plan becomes
                  effective, the Participant must make an election pursuant to
                  Section 5(b) within 30 days after the Effective Date (as
                  defined in Section 14) and such election will be irrevocable
                  for the remainder of the Affected Year. To participate in the
                  Plan during the first calendar year in which a non-employee
                  director becomes eligible to participate in the Plan, the new
                  non-employee director must make an election pursuant to
                  Section 5(b) within 30 days after the date he or she becomes
                  eligible and such election will be irrevocable for the
                  remainder of the Affected Year and, Canadian resident
                  directors, must in any event elect pursuant to Section 5(b) at
                  least 10 business days prior to the end of the first Quarter
                  in which the Participant is a director. Each election shall
                  remain in effect until revoked in writing, and any such
                  revocation shall become effective no earlier than the first
                  day of the first calendar year commencing after such
                  revocation is received by the Company. If a non-employee
                  director does not file an election form by the specified date,
                  he or she will be deemed to have elected to receive all of the
                  Retainer, the Meeting Fees and the Other Compensation in cash.

(d)               If a Participant elects to receive Common Stock in payment of
                  all or part of his or her Retainer, Meeting Fees and Other
                  Compensation, the number of shares of

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                  Common Stock to be issued shall equal the cash amount that
                  would have been paid divided by the Fair Market Value of one
                  share of Common Stock on the date on which such cash amount
                  would have been paid.

6.       DEFERRAL.

         The provisions of this Section 6 apply to Participants who are not
Canadian Resident Directors.

(a)               If a Participant elects to receive Deferred Stock in payment
                  of all or part of his or her Retainer, Meeting Fees and/or
                  Other Compensation, there shall be credited to the
                  Participant's Account as of the day such Retainer, Meeting
                  Fees and/or Other Compensation would have been paid, the
                  number of shares of Deferred Stock which is equal to the
                  number of shares of Common Stock that would otherwise have
                  been delivered to the Participant pursuant to Section 5(d)
                  above on such date. The shares of Deferred Stock credited to
                  the Participant's Account shall represent the number of shares
                  of Common Stock that the Company will issue to the Participant
                  at the end of the deferral period.

(b)               The Deferred Stock shall be subject to a deferral period
                  beginning on the date of crediting to the Participant's
                  Account and ending upon termination of service as a Director
                  or such other period as the Participant may have elected. The
                  period of deferral shall be (i) for a minimum period of one
                  year, except in the case where the Participant elects a
                  deferral period determined by reference to his or her
                  termination of service as a Director; and (ii) for a maximum
                  period of not more than 10 years after the date of termination
                  of service as a Director. During the deferral period, the
                  Participant shall have no right to transfer any rights under
                  his or her Deferred Stock and shall have no other rights of
                  ownership therein.

(c)               A Participant's Account will be credited as of the last day of
                  each calendar quarter with that number of additional shares of
                  Deferred Stock equal to the amount of cash dividends paid by
                  the Company during such quarter on the number of shares of
                  Common Stock equivalent to the number of shares of Deferred
                  Stock in the Participant's Account from time to time during
                  such quarter divided by the Fair Market Value of one share of
                  Common Stock on the last business day of such calendar
                  quarter. Such dividend equivalents, which shall likewise be
                  credited with dividend equivalents, shall be deferred until
                  the end of the deferral period for the Deferred Stock with
                  respect to which the dividend equivalents were credited.

(d)               In the event of the death of a Participant, the Participant's
                  Account shall be immediately paid in the form of Common Stock
                  to the person or persons (a "Beneficiary" or "Beneficiaries")
                  designated by the Participant (the "Beneficiary Designation")
                  to receive payment of the Participant's Account in the event
                  of the death of the Participant. If no Beneficiary Designation
                  is in effect or if no Beneficiary is then living, upon the
                  death of a Participant, such Participant's Account shall be
                  paid to the Participant's estate.

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(e)               Notwithstanding the foregoing provisions, (i) if, upon the
                  Participant's termination of service as a Director, the value
                  of the Participant's Account is less than $500, the amount of
                  such Participant's Account, at the discretion of the Board of
                  Directors, may be immediately paid to the Participant or, if
                  the Participant is deceased, to his or her Beneficiary or
                  Beneficiaries in cash or shares of Common Stock; (ii) if a
                  Change in Control of the Company occurs, the amount of each
                  Participant's Account shall immediately be paid to the
                  Director in full; and (iii) in the event of an unforeseeable
                  emergency, as defined in section 1.457-2(h)(4) and (5) of the
                  Income Tax Regulations, that is caused by an event beyond the
                  control of the Participant or the Participant's Beneficiary
                  and that would result in severe financial hardship to the
                  individual if acceleration were not permitted, the Board of
                  Directors may in its sole discretion accelerate the payment to
                  the Participant or his or her Beneficiary of the Participant's
                  Account, but only up to the amount necessary to meet the
                  emergency.

7.       DEFERRAL - CANADIAN RESIDENT DIRECTORS.

         The provisions of this Section 7 apply to Participants who are Canadian
Resident Directors.

(a)               If a Participant elects to receive Deferred Stock in payment
                  of all or part of his or her Retainer, Meeting Fees and/or
                  Other Compensation, there shall be credited to the
                  Participant's Account as of the day such Retainer, Meeting
                  Fees and/or Other Compensation would have been paid, the
                  number of shares of Deferred Stock which is equal to the
                  number of shares of Common Stock that would otherwise have
                  been delivered to the Participant pursuant to Section 5(d)
                  above on such date. The shares of Deferred Stock credited to
                  the Participant's Account shall represent the number of shares
                  of Common Stock that the Company will issue to the Participant
                  at the end of the deferral period.

(b)               The Deferred Stock will be subject to a Deferral Period
                  beginning on the date of crediting to the Participant's
                  Account and ending upon the Participant's Redemption Date.
                  During the Deferral Period, the Participant shall have no
                  right to transfer any rights under his or her Deferred Stock
                  and shall have no other rights of ownership therein.

(c)               A Participant's Account will be credited as of the last day of
                  each calendar quarter with that number of additional shares of
                  Deferred Stock equal to the amount of cash dividends paid by
                  the Company during such quarter on the number of shares of
                  Common Stock equivalent to the number of shares of Deferred
                  Stock in the Participant's Account from time to time during
                  such quarter divided by the Fair Market Value of one share of
                  Common Stock on the last business day of such calendar
                  quarter. Such dividend equivalents, which shall likewise be
                  credited with dividend equivalents, shall be deferred until
                  the end of the deferral period for the Deferred Stock with
                  respect to which the dividend equivalents were credited.

                                       4
<PAGE>

(d)               In the event of the death of a Participant, the Participant's
                  Account shall be immediately paid in the form of Common Stock
                  to the Beneficiary or Beneficiaries designated by the
                  Participant in his or her Beneficiary Designation. If no
                  Beneficiary Designation is in effect or if no Beneficiary is
                  then living, upon the death of a Participant, such
                  Participant's Account shall be paid to the Participant's
                  estate in the form of Common Stock.

(e)               Notwithstanding the foregoing provisions, if, upon the
                  Participant's termination of service as a director, the value
                  of the Participant's Account is less than $500, the amount of
                  such Participant's Account, at the discretion of the Board of
                  Directors, may be immediately paid to the Participant or, if
                  the Participant is deceased, to his or her Beneficiary or
                  Beneficiaries in cash or shares of Common Stock.

(f)               For greater certainty, no amount will be paid and no other
                  benefit will be granted to, or in respect of a Participant
                  under the Plan or pursuant to any other arrangement, in order
                  to compensate for a downward fluctuation in the price of
                  Common Stock.

8. DEFINITIONS, ETC.

(a)               For purposes of this Plan, the Fair Market Value of the Common
                  Stock on any date means (i) the closing sale price per share
                  of Common Stock as reported on the principal exchange on which
                  shares of Common Stock are then trading, if any, or, if
                  applicable, the NASDAQ National Market System, or if there are
                  no sales on such day, on the next preceding trading day during
                  which a sale occurred, or (ii) if clause (i) does not apply,
                  the fair market value of a share of Common Stock as determined
                  by the Board of Directors of the Company. To the extent that
                  the application of any formula described in this Plan does not
                  result in a whole number of shares of Common Stock, the result
                  shall be rounded upwards to the next whole number such that no
                  fractional shares of Common Stock shall be issued under the
                  Plan.

(b)               For purposes of this Plan, a Change in Control shall have the
                  meaning ascribed to such term in the Company's 2002 Equity
                  Incentive Plan.

(c)               Notwithstanding anything to the contrary contained in this
                  Plan, it is a condition to the payment of the Participant's
                  Retainer, Meeting Fees and Other Compensation in the form of
                  Common Stock or Deferred Stock, that the issuance of shares
                  under this Plan has been registered under the Securities Act
                  of 1933, as amended and no Participant will be able to receive
                  Common Stock or Deferred Stock in payment of all or part of
                  his or her Retainer, Meeting Fees and Other Compensation
                  unless and until the Company has prepared and filed a
                  Registration Statement on Form S-8 covering the shares to be
                  issued under the Plan.

(d)               For purposes of Section 7, the following definitions apply:

                  (i)      "Canadian Resident Director" means a Participant who
                           is a resident of Canada for purposes of the INCOME
                           TAX ACT (Canada) in an Affected Year.

                                       5
<PAGE>

                  (ii)     "Redemption Date" with respect to a Participant who
                           has a Retirement Date, shall be the day specified by
                           or in respect of the Participant in an election filed
                           with the Company and shall not be prior to the date
                           that is at least 5 business days from the date of
                           delivery of such election to the Company and shall
                           not be later than 15 December of the first calendar
                           year commencing after the Participant's Retirement
                           Date. Where a Participant fails to make an election
                           within the above-mentioned period, his or her
                           Redemption Date shall be 15 December of the first
                           calendar year commencing after the Participant's
                           Retirement Date. In any event, the payment of the
                           Participant's benefits under the Plan will take place
                           no later than 31 December of the first calendar year
                           commencing after the Participant's Retirement Date.

                  (iii)    "Retirement Date" means the date on which a
                           Participant ceases to be a director. If a Participant
                           becomes an Employee but continues to be a Director,
                           his or her participation in the Plan shall be
                           suspended effective the date of the commencement of
                           his employment and shall resume upon termination of
                           such employment. If prior to the termination of his
                           or her employment such Participant ceases to be a
                           Director, the Participant's Retirement Date shall be
                           deemed to be the date he or she ceases to be an
                           Employee.

9.       DELIVERY OF SHARES. The Company shall make delivery of certificates
         representing the shares of Common Stock which a Participant has elected
         to receive in payment of all or part of his or her Retainer, Meeting
         Fees and/or Other Compensation, within a reasonable period of time;
         PROVIDED, HOWEVER, that if any law, regulation or agreement requires
         the Company to take any action with respect to the shares before the
         issuance thereof, then the date of delivery of such shares shall be
         extended for the period necessary to take such action. Certificates
         representing shares received under this Plan may bear such restrictive
         legends as may be necessary or desirable in order to comply with the
         applicable federal and state securities laws.

10.      ADJUSTMENTS. In the event that, after the Effective Date of this Plan
         (as defined in Section 14), the outstanding shares of Common Stock are
         increased or decreased or exchanged for a different number or kind of
         shares or other securities of the Company by reason of a
         recapitalization, reclassification, stock split-up, combination of
         shares or dividend payable in stock, appropriate adjustments shall be
         made by the Company's Board of Directors in the number and kind of
         shares or other securities that may be issued under this Plan. All
         adjustments made by the Board of Directors under this Section 10 shall
         be final and conclusive.

11.      TERMINATION OR AMENDMENT OF THE PLAN. The Board of Directors may at any
         time terminate, suspend or amend the Plan, provided such amendment does
         not adversely affect the treatment under the Income Tax Act (Canada)
         (the "Act") of directors who are residents of Canada for purposes of
         the Act. An amendment or the termination of this Plan shall not
         adversely affect the right of a Participant to receive shares of Common
         Stock issuable or cash payable at the effective date of the amendment
         or termination.

                                       6
<PAGE>

12.      WITHHOLDING TAXES. To the extent that the Company is required to
         withhold federal, state, provincial, local or foreign taxes in
         connection with any payment made or benefit realized by a Participant
         under this Plan, and the amount available to the Company for such
         withholding is insufficient, it will be a condition to the receipt of
         such payment or the realization of such benefit that the Participant
         make arrangements with the Company for payment of the balance of such
         taxes required to be withheld, which arrangements in the discretion of
         the Committee, may include relinquishment of a portion of such benefit.

13.      MISCELLANEOUS.

(a)               The rights, benefits or interests a Participant may have under
                  this Plan are not assignable or transferable and shall not be
                  subject in any manner to alienation, sale or any encumbrances,
                  liens, levies, attachments, pledges or charges of the
                  Participant or his or her creditors. Any action attempting to
                  effect any transaction of that type shall be void and of no
                  force and effect.

(b)               The adoption and maintenance of this Plan shall not be deemed
                  to be a contract between the Company and the Participant to
                  retain his or her position as a director of the Company.

(c)               The validity, interpretation and administration of the Plan
                  and any rules, regulations, determinations or decisions
                  hereunder and the rights of any and all persons having or
                  claiming to have any interest herein or hereunder shall be
                  determined exclusively in accordance with the laws of the
                  State of Delaware (without regard to the choice of law
                  provisions thereof).

(d)               All notices, elections or other communications made or given
                  pursuant to the Plan shall be in writing and shall be
                  sufficiently made or given if hand-delivered or mailed by
                  certified mail, addressed (if from the Company to the
                  Participant) to any Participant at the address contained in
                  the records of the Company for such Participant, or addressed
                  (if from the Participant to the Company) to the Secretary of
                  the Company at its principal office.

(e)               The headings in the Plan are for reference purposes only and
                  shall not affect the meaning or interpretation of the Plan.

14.      EFFECTIVE DATE OF THE PLAN. The Plan shall be effective immediately
         upon the date of its approval by the stockholders of the Company (the
         "Effective Date").

                                       7

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