Document:

<PAGE>

                              AMENDED AND RESTATED
                       PERFORMANCE ENGINEERING CORPORATION
                       NONQUALIFIED EXECUTIVE SUPPLEMENTAL
                          RETIREMENT PROGRAM AGREEMENT

         THIS AMENDED AND RESTATED AGREEMENT is effective as of the 31st day of
December, 1998 ("Effective Date"), by and between Performance Engineering
Corporation, a Virginia corporation ("PEC"), and each individual employee who
has executed a counterpart of this Agreement ("Employee").

                                   WITNESSETH:

         WHEREAS, Employee is a member of a select group of management or highly
compensated employees of PEC; and

         WHEREAS, PEC recognizes the valuable services heretofore performed for
it by Employee and wishes to encourage continued employment; and

         WHEREAS, the parties desire to specify the terms and conditions under
which the Employee may defer a portion of compensation otherwise payable to him
or her and under which PEC shall pay such deferred compensation to the Employee
or designated beneficiary; and

         WHEREAS, the parties intend that the deferred compensation arrangement
created by this Agreement shall be unfunded for federal income tax purposes and
for purposes of the Employee Retirement Income Act of 1974, as amended;

         NOW, THEREFORE, in consideration of the mutual premises and other good
and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:

         1. DEFERRED COMPENSATION. Commencing on the Effective Date and for each
calendar year thereafter that this Agreement is in effect and continuing through
the date on which the Employee's employment terminates, PEC shall irrevocably
accrue as deferred compensation on the Employee's behalf an amount equal to the
Employee's Deferral Percentage of any compensation otherwise payable to the
Employee. The accrued deferred compensation shall be credited to the Employee's
Deferred Compensation Account in accordance with Section 4 herein.

         2. EMPLOYEE'S DEFERRAL PERCENTAGE. The Employee's Deferral Percentage
shall be that percentage of all regular salary payments payable to the Employee
during the calendar year, up to a maximum percentage, such that the annual
amount to be deferred by the Employee under this Agreement plus the Employee's
401(k) plan annual deferral amount, if any, does not exceed 15%, and that
percentage of any bonus that PEC may award to the Employee during or for any
calendar year, up to a maximum of 100%, which the Employee elects to defer in
accordance with the provisions of this Agreement. In no event shall the actual
amount of regular salary payments deferred by the Employee under this Agreement
plus the Employee's 401(k) plan annual deferral amount exceed 15% of the
Employee's annual salary.

<PAGE>

         The Employee's Deferral Percentage shall be elected by the Employee by
written notice filed by said Employee with the payroll department of PEC in
substantially the form attached hereto as Exhibit A, specifying the percentage
of salary payments and/or bonus to be deferred. The Employee's Deferral
Percentage may be changed from time to time by the Employee only by written
notice.

         3. PEC VOLUNTARY CONTRIBUTION. PEC may, in its sole and arbitrary
discretion, credit such additional amounts, referred to as a PEC Voluntary
Contribution, to the Employee's Deferred Compensation Account in accordance with
Section 4 herein. Any PEC Voluntary Contribution shall be irrevocable and be
deemed vested for purposes of this Agreement only five (5) years after the date
such PEC Voluntary Contribution is credited by PEC to the Employee's Deferred
Contribution Account.

         4. DEFERRED COMPENSATION ACCOUNT. PEC shall maintain on its books a
Deferred Compensation Account in the name of the Employee to which any deferred
amounts under Section 1 and Section 3 shall be credited. PEC shall maintain book
entries to distinguish between the Employee Deferral Percentage and the PEC
Voluntary Contribution, if any, of the Employee's Deferred Compensation Account.
The Deferred Compensation Account shall remain the property of PEC subject to
the claims of its general creditors. The Employee shall have no rights to such
Deferred Compensation Account other than those of a general creditor of PEC.

         Any portion of the Employee's Deferred Compensation Account may be
invested by PEC as it may deem appropriate. To the extent the Deferred
Compensation Account is invested in stocks, bonds, mutual funds, money market or
similar accounts, the Deferred Compensation Account shall be credited with the
gains and losses from such investment.

         5.       RETIREMENT BENEFIT.

                  (a) PEC shall pay the Employee the Employee's entire Deferred
Compensation Account, at the request of Employee, upon the retirement of the
Employee from employment with PEC upon reaching age sixty-five (65). Such amount
shall be paid in three (3) equal annual payments, as adjusted to reflect
investment gains and losses during the payout period, with the first annual
payment payable within thirty (30) days of the Employee reaching age sixty-five
(65).

                  (b) The Employee shall have the option, upon attaining age
sixty-five (65), to elect to receive the entire Deferred Compensation Account,
notwithstanding continued employment with PEC after reaching age sixty-five
(65). Employee's election to receive the Deferred Compensation Account
notwithstanding continued employment must be made in writing at least thirty
(30) days prior to Employee reaching age sixty-five (65). Such amount, if
elected, shall be paid in three (3) equal annual payments, as adjusted to
reflect investment gains and losses during the payout period, with the first
annual payment payable within thirty (30) days of the employee reaching age
sixty-five (65). Any such election under this subsection shall be irrevocable
and shall result in the termination of Employee's right to any further deferrals
or PEC voluntary contributions hereunder.

<PAGE>

                  (c) The Employee shall have the option, upon attaining age
fifty-five (55), to elect to receive the Employee's entire Deferred Compensation
Account on the strict condition that said Employee completely retires from PEC
and agrees, in writing, not to engage, for a period of five (5) years, directly
or indirectly, individually or as an employee, partner, officer, director,
stockholder (other than a Stockholder holding less than a five percent (5%)
interest in stock of any corporation), advisor, consultant or in any other
capacity whatsoever of or to any person, firm, partnership, corporation or other
business which develops or markets products or services similar to those
developed or marketed by PEC at any time during the twelve (12) months
proceeding the Employee's early retirement, in any place or jurisdiction which
PEC developed or marketed its products or services during the twelve (12) months
proceeding the Employee's early retirement. If elected, such amount shall be
paid in three (3) equal annual payments, as adjusted to reflect investment gains
and losses during the payout period, with the first annual payment payable
within thirty (30) days of the employee reaching age fifty-five (55).

         6. HARDSHIP WITHDRAWALS. Withdrawal of all or part of the Deferred
Compensation Account may be permitted by PEC at the written request of the
Employee upon the occurrence of an unforeseeable emergency. An unforeseeable
emergency is strictly defined as an unanticipated event beyond the Employee's
control that would cause severe financial hardship to the Employee if early
withdrawal were not permitted. In no event shall any early hardship withdrawal
exceed the amount necessary to enable the Employee to meet the unforeseeable
emergency.

         7. DISABILITY RETIREMENT. Notwithstanding any other provision hereof,
the Employee shall be entitled to receive the entire Deferred Compensation
Account prior to retirement in the event that the Employee is determined to be
totally disabled due to ill health or accident by a duly licensed physician
selected by PEC. The term "totally disabled" shall be defined by the terms of
the long-term disability policy then in effect by PEC for the benefit of
Employee. The Employee's entire Deferred Compensation Account shall be payable
in three (3) equal annual payments, as adjusted to reflect investment gains and
losses during the payout period, with the first annual payment payable within
thirty (30) days of the date of the physician's disability determination.

         8. DEATH BENEFIT. Notwithstanding any other provision herein, the
Employee's designated beneficiary shall be entitled to receive the entire
Deferred Compensation Account upon the death of the Employee. The Employee's
entire Deferred Compensation Account shall be payable in three (3) equal annual
payments, as adjusted to reflect investment gains and losses during the payout
period, with the first annual payment payable within thirty (30) days of the
date of death of the Employee.

         9. TERMINATION BENEFIT. In the event of the Employee's termination of
employment with PEC other than retirement, disability, as defined hereinabove,
or death, PEC shall pay to the Employee, as compensation for services rendered
prior to such termination, that portion of Employee's Deferred Compensation
Account equal only to Employee's Deferral Percentage and the vested portion only
of any PEC Voluntary Contribution. Such amount shall be paid within thirty (30)
days of the Employee's termination of employment.

                                       3
<PAGE>

         10. OFFSET FOR OBLIGATIONS TO CORPORATION. If, at such time as the
Employee becomes entitled to benefit payments hereunder, the Employee has any
debt, obligation or other liability representing an amount owing to the
Corporation or an Affiliate of the Corporation, and if such debt, obligation or
other liability is due and owing at the time benefit payments are payable
hereunder, the Corporation may offset the amount owing it or an Affiliate
against the amount of benefits otherwise distributable hereunder.

         11. BENEFICIARY DESIGNATION. The Employee shall have the right, at any
time, to submit in substantially the form attached hereto as Exhibit B, a
written designation of primary and secondary beneficiaries to whom payment under
this Agreement shall be made in the event of death prior to complete
distribution of the benefits due and payable under the Agreement. Each
beneficiary designation shall become effective only when receipt thereof is
acknowledged in writing by the Corporation.

         12. NO CONTRACT OF EMPLOYMENT. Nothing contained herein shall be
construed to be a contract of employment for any term of years, nor as
conferring upon the Employee the right to continue to be employed by the
Corporation in his present capacity, or in any capacity. It is expressly
understood by the parties hereto that this Agreement relates to the payment of
deferred compensation of the Employee's services, payable after termination of
employment with the Corporation and is not intended to be an employment
contract.

         13. OTHER BENEFITS. Any payments under this Agreement shall be
independent of, and in addition to, those under any other plan, program or
agreement which may be in effect between PEC and the Employee, or any other
compensation payable to the Employee or any of the Employee's beneficiaries.

         14. BENEFITS NOT TRANSFERABLE. Neither the Employee, designated
beneficiary nor any other beneficiary under this Agreement shall have any power
or right to transfer, assign, anticipate, hypothecate or otherwise encumber any
part of all of the amounts payable hereunder. No such amounts shall be subject
to seizure by any creditor of any such beneficiary, by a proceeding at law or in
equity, nor shall such amounts be transferable to operation of law in the event
of bankruptcy, insolvency or death of the Employee, designated beneficiary, or
any other beneficiary hereunder. Any such attempted assignment or transfer shall
be void.

         15. AMENDMENT. This Agreement may not be amended, altered or modified,
except by a written instrument signed by the parties hereto or their respective
successors, and may not be otherwise terminated except as provided herein.

         16. INUREMENT. This Agreement shall be binding upon and inure to the
benefit of the Corporation and its successors and assigns, and the Employee,
successors, heirs, executors, administrators and beneficiaries.

         17. NOTICE. Any notice, consent or demand required or permitted to be
given under the

                                       4
<PAGE>

provisions of this Agreement shall be in writing and shall be signed by the
party giving or making the same. If such notice, consent or demand is mailed to
a party hereto, it shall be sent by United States certified mail, postage
prepaid, addressed to such party's last known address as shown on the records of
the Corporation. The date of such mailing shall be deemed the date of notice,
consent or demand. Either party may change the address to which notice is to be
sent by giving notice of the change of address in the manner aforesaid.

         18. GOVERNING LAW. This Agreement, and the rights of the parties
hereunder, shall be governed and construed in accordance with the laws of the
Commonwealth of Virginia.

         IN WITNESS WHEREOF, the parties have executed this Agreement on the day
and year first above written.

                                     PERFORMANCE ENGINEERING CORPORATION

                                     By:
                                        ---------------------------------

                                     EMPLOYEE:

                                     -------------------------------------<PAGE>

                                                                   EXHIBIT 10.12

                                  PEC SOLUTIONS
                          EMPLOYEE STOCK PURCHASE PLAN

         The PEC Solutions Employee Stock Purchase Plan (the "PLAN") provides
eligible employees of PEC Solutions, Inc., a Delaware corporation (the
"COMPANY"), and certain of its subsidiaries with opportunities to purchase
shares of the Company's Common Stock, $0.01 par value per share (the "COMMON
STOCK"). The Plan is intended to benefit the Company by increasing the
employees' interest in the Company's growth and success and encouraging
employees to remain in the employ of the Company or its participating
subsidiaries. The Plan is intended to constitute an "employee stock purchase
plan" within the meaning of section 423 of the Internal Revenue Code of 1986, as
amended (the "CODE"), and shall be so applied and interpreted.

         1. SHARES SUBJECT TO THE PLAN. Subject to adjustment as provided in
Section 13, the aggregate number of shares of Common Stock that may be made
available for purchase under the Plan is 1,000,000 shares. The shares purchased
under the Plan may, in the discretion of the Board of Directors of the Company
(the "BOARD"), be authorized but unissued shares of Common Stock, shares
purchased on the open market, or shares from any other proper source.

         2. ADMINISTRATION. The Plan is administered by the Board or by a
committee appointed by the Board (the "ADMINISTRATOR"). The Administrator has
authority to interpret the Plan, to make, amend and rescind all rules and
regulations for the administration and operation of the Plan, and to make all
other determinations necessary or desirable in administering and operating the
Plan. All actions taken and decisions and determinations made by the
Administrator pursuant to the powers vested in the Administrator under this Plan
shall be in the Administrator's sole and absolute discretion and shall be
conclusive and binding on all parties concerned. No member of the Administrator
shall be liable for any action or determination made in good faith with respect
to the Plan.

         3. ELIGIBILITY. All employees of the Company, including directors who
are employees, and all employees of any subsidiary of the Company (as defined in
Code section 424(f)), now or hereafter existing, that is designated by the
Administrator from time to time as a participating employer under the Plan
("DESIGNATED SUBSIDIARY"), are eligible to participate in the Plan, subject to
such further eligibility requirements as may be specified by the Administrator
consistent with Code section 423.

         4. OPTIONS TO PURCHASE COMMON STOCK.

         (a) Options ("OPTIONS") are granted pursuant to the Plan to each
eligible employee on the first day on which the National Association of
Securities Dealers Automated Quotation ("NASDAQ") system is open for trading
("TRADING DAY") on or after January 1 of each year commencing on or after the
Effective Date (as defined in Section 18), or such other date coincident with or
after the Effective Date as specified by the Administrator. Each Option
terminates on the last Trading Day of a period specified by the Administrator
(each period, an "OPTION PERIOD"). No Option Period may be longer than 27
months. Unless the Administrator determines otherwise, subsequent Option Periods
of equal duration will follow consecutively thereafter, each commencing on the
first Trading Day after the expiration of the preceding Option Period.

         (b) An individual must be employed as an eligible employee by the
Company or a Designated Subsidiary on the first Trading Day of an Option Period
in order to be granted an Option for that Option Period. However, the
Administrator may designate any subsequent Trading Day(s (each

<PAGE>

such designated Trading Day referred to herein as an "INTERIM TRADING DAY") in
an Option Period upon which Options will be granted to eligible employees who
first commence employment with, or first become eligible employees of, the
Company or a Designated Subsidiary after the first Trading Day of the Option
Period. In such event, the Interim Trading Day shall constitute the first
Trading Day of the Option Period for all Options granted on such day for all
purposes under the Plan.

         (c) Each Option represents a right to purchase, on the last Trading Day
of the Option Period or one or more Trading Days within the Option Period
designated by the Administrator (each, including the last Trading Day of the
Option Period, a "PURCHASE DATE"), at the Purchase Price hereinafter provided
for, whole shares of Common Stock up to such maximum number of shares specified
by the Administrator on or before the first day of the Option Period. All
eligible employees granted Options under the Plan for an Option Period shall
have the same rights and privileges with respect to such Options. The purchase
price of each share of Common Stock (the "PURCHASE PRICE") subject to an Option
will be determined by the Administrator, in its discretion, on or before the
beginning of the Option Period; provided, however, that the Purchase Price for
an Option with respect to any Option Period shall never be less than the lesser
of 85 percent of the Fair Market Value of the Common Stock on the (i) first
Trading Day of the Option Period or (ii) the Purchase Date, and shall never be
less than the par value of the Common Stock.

         (d) For purposes of the Plan, "FAIR MARKET VALUE" on a Trading Day
means the average of the high and low sale prices per share of Common Stock as
reflected on the principal consolidated transaction reporting system for
securities listed on any national securities exchange or other market quotation
system on which the Common Stock may be principally listed or quoted or, if
there are no transactions on a Trading Day, then such average for the preceding
Trading Day upon which transactions occurred. However, for the Trading Day that
occurs on the date of the initial public offering of the Common Stock, "Fair
Market Value" shall mean the initial offering price of the Common Stock to the
public as indicated in the Company's final prospectus in connection with such
offering and as such price is negotiated between the Company and the managing
underwriters.

         (e) No employee shall be granted an Option under this Plan if such
employee, immediately after the Option would otherwise be granted, would own 5%
or more of the total combined voting power or value of the stock of the Company
or any subsidiary. For purposes of the preceding sentence, the attribution rules
of Code section 424(d) will apply in determining the stock ownership of an
employee, and all stock which the employee has a contractual right to purchase
will be treated as stock owned by the employee.

         (f) No employee may be granted an Option which permits his rights to
purchase Common Stock under this Plan and all other stock purchase plans of the
Company and its subsidiaries to accrue at a rate which exceeds $25,000 of the
fair market value of such Common Stock (determined at the time such Option is
granted) for each calendar year in which the Option is outstanding at any time,
as required by Code section 423.

         5. PAYROLL DEDUCTIONS AND CASH CONTRIBUTIONS.

         To facilitate payment of the Purchase Price of Options, the
Administrator, in its discretion, may permit eligible employees to authorize
payroll deductions to be made on each payday during the Option Period, and/or to
contribute cash or cash-equivalents to the Company, up to a maximum amount
determined by the Administrator. The Company will maintain bookkeeping accounts
for all employees who authorize payroll deduction or make cash contributions.
Interest will not be paid on any employee

                                      -2-
<PAGE>

accounts, unless the Administrator determines otherwise. The Administrator shall
establish rules and procedures, in its discretion, from time to time regarding
elections to authorize payroll deductions, changes in such elections, timing and
manner of cash contributions, and withdrawals from employee accounts. Amounts
credited to employee accounts as of the Purchase Date will be applied to the
payment of the Purchase Price of outstanding Options pursuant to Section 6
below.

         6. EXERCISE OF OPTIONS; PURCHASE OF COMMON STOCK. Options shall be
exercised on the close of business on the Purchase Date. In accordance with
rules established by the Administrator, the Purchase Price of Common Stock
subject to an option shall be paid (i) from funds credited to an eligible
employee's account, (ii) by a broker-assisted cashless exercise in accordance
with Regulation T of the Board of Governors of the Federal Reserve System, or
(iii) by such other method as the Administrator shall determine from time to
time. Options shall be exercised only to the extent the Purchase Price is paid
with respect to whole shares of Common Stock. Any balance remaining in an
employee's account on the Purchase Date after such purchase of Common Stock will
be carried forward automatically into the employee's account for the next
Purchase Date, unless the employee is not an eligible employee with respect to
the next Purchase Date, in which case such amount will be promptly refunded.

         7. ISSUANCE OF CERTIFICATES. As soon as practicable following each
Purchase Date, certificates representing shares of Common Stock purchased under
the Plan will be issued only in the name of the employee, in the name of the
employee and another person of legal age as joint tenants with rights of
survivorship, or (in the Administrator's sole discretion) in the street name of
a brokerage firm, bank or other nominee holder designated by the employee or the
Administrator.

         8. RIGHTS ON RETIREMENT, DEATH, TERMINATION OF EMPLOYMENT, OR
TERMINATION OF STATUS AS ELIGIBLE EMPLOYEE. In the event of an employee's
termination of employment or termination of status as an eligible employee prior
to the Purchase Date (whether as a result of the employee's voluntary or
involuntary termination, retirement, death or otherwise), any outstanding Option
granted to him will immediately terminate, no further payroll deduction will be
taken from any pay due and owing to the employee and the balance in the
employee's account will be paid to the employee or, in the event of the
employee's death, (a) to the executor or administrator of the employee's estate
or (b) if no such executor or administrator has been appointed to the knowledge
of the Administrator, to such other person(s) as the Administrator may, in its
discretion, designate. If, prior to the Purchase Date, the Designated Subsidiary
by which an employee is employed will cease to be a subsidiary of the Company,
or if the employee is transferred to a subsidiary of the Company that is not a
Designated Subsidiary, the employee will be deemed to have terminated employment
for the purposes of this Plan.

         9. OPTIONEES NOT STOCKHOLDERS. Neither the granting of an Option to an
employee nor the deductions from his pay will constitute such employee a
stockholder of the shares of Common Stock covered by an Option under this Plan
until such shares have been purchased by and issued to him.

         10. OPTIONS NOT TRANSFERABLE. Options under this Plan are not
transferable by a participating employee other than by will or the laws of
descent and distribution, and are exercisable during the employee's lifetime
only by the employee.

         11. WITHHOLDING OF TAXES. To the extent that a participating employee
realizes ordinary income in connection with the purchase, sale or other transfer
of any shares of Common Stock purchased under the Plan or the crediting of
interest to the employee's account, the Company may withhold amounts needed to
cover such taxes from any payments otherwise due and owing to the participating
employee or from shares that would otherwise be issued to the participating
employee hereunder. Any participating

                                      -3-
<PAGE>

employee who sells or otherwise transfers shares purchased under the Plan must,
within 30 days of such sale or transfer, notify the Company in writing of the
sale or transfer.

         12. APPLICATION OF FUNDS. All funds received or held by the Company
under the Plan may be used for any corporate purpose until applied to the
purchase of Common Stock and/or refunded to participating employees and can be
commingled with other general corporate funds. Participating employees' accounts
will not be segregated.

         13. EFFECT OF CHANGES IN CAPITALIZATION.

         (a) CHANGES IN STOCK. If the number of outstanding shares of Common
Stock is increased or decreased or the shares of Common Stock are changed into
or exchanged for a different number or kind of shares or other securities of the
Company by reason of any recapitalization, reclassification, stock split,
reverse split, combination of shares, exchange of shares, stock dividend, or
other distribution payable in capital stock, or other increase or decrease in
such shares effected without receipt of consideration by the Company occurring
after the Effective Date of the Plan, the number and kind of shares that may be
purchased under the Plan shall be adjusted proportionately and accordingly by
the Company. In addition, the number and kind of shares for which Options are
outstanding shall be similarly adjusted so that the proportionate interest, if
any, of a participating employee immediately following such event shall, to the
extent practicable, be the same as immediately prior to such event. Any such
adjustment in outstanding Options shall not change the aggregate Purchase Price
payable by a participating employee with respect to shares subject to such
Options, but shall include a corresponding proportionate adjustment in the
Purchase Price per share.

         (b) REORGANIZATION IN WHICH THE COMPANY IS THE SURVIVING COMPANY.
Subject to Subsection (c) of this Section 13, if the Company shall be the
surviving corporation in any reorganization, merger or consolidation of the
Company with one or more other corporations, all outstanding Options under the
Plan shall pertain to and apply to the securities to which a holder of the
number of shares of Common Stock subject to such Options would have been
entitled immediately following such reorganization, merger or consolidation,
with a corresponding proportionate adjustment of the Purchase Price per share so
that the aggregate Purchase Price thereafter shall be the same as the aggregate
Purchase Price of the shares subject to such Options immediately prior to such
reorganization, merger or consolidation.

         (c) REORGANIZATION IN WHICH THE COMPANY IS NOT THE SURVIVING COMPANY OR
SALE OF ASSETS OR STOCK. Upon any dissolution or liquidation of the Company, or
upon a merger, consolidation or reorganization of the Company with one or more
other corporations in which the Company is not the surviving corporation, or
upon a sale of all or substantially all of the assets of the Company to another
corporation, or upon any transaction (including, without limitation, a merger or
reorganization in which the Company is the surviving corporation) approved by
the Board that results in any person or entity owning more than 50 percent of
the combined voting power of all classes of stock of the Company, the Plan and
all Options outstanding hereunder shall terminate, except to the extent
provision is made in writing in connection with such transaction for the
continuation of the Plan and/or the assumption of the Options theretofore
granted, or for the substitution for such Options of new Options covering the
stock of a successor corporation, or a parent or subsidiary thereof, with
appropriate adjustments as to the number and kinds of shares and exercise
prices, in which event the Plan and Options theretofore granted shall continue
in the manner and under the terms so provided. In the event of any such
termination of the Plan, the Option Period shall be deemed to have ended on the
last Trading Day prior to such termination, and, unless the Administrator
determines otherwise in its discretion, each participating employee shall have
the

                                      -4-
<PAGE>

ability to choose either to (i) have all monies then credited to such employee's
account (including interest, to the extent any has accrued) returned to such
participating employee or (ii) exercise his Options in accordance with Section 6
on such last Trading Day; provided, however, that if a participating employee
does not exercise his right of choice, his Options shall be deemed to have been
automatically exercised in accordance with Section 6 on such last Trading Day.
The Administrator shall send written notice of an event that will result in such
a termination to all participating employees not later than the time at which
the Company gives notice thereof to its stockholders.

         (d) ADJUSTMENTS. Adjustments under this Section 13 related to stock or
securities of the Company shall be made by the Committee, whose determination in
that respect shall be final, binding, and conclusive.

         (e) NO LIMITATIONS ON COMPANY. The grant of an Option pursuant to the
Plan shall not affect or limit in any way the right or power of the Company to
make adjustments, reclassifications, reorganizations or changes of its capital
or business structure or to merge, consolidate, dissolve or liquidate, or to
sell or transfer all or any part of its business or assets.

         14. AMENDMENT OF THE PLAN. The Board may at any time, and from time to
time, amend this Plan in any respect, except that (a) if the approval of any
such amendment by the stockholders of the Company is required by Code section
423, such amendment will not be effected without such approval, and (b) in no
event may any amendment be made which would cause the Plan to fail to comply
with Code section 423 unless expressly so provided by the Board.

         15. INSUFFICIENT SHARES. In the event that the total number of shares
of Common Stock specified in elections to be purchased under any Option plus the
number of shares purchased under all Options previously granted under this Plan
exceeds the maximum number of shares issuable under this Plan, the Administrator
will allot the shares then available on a pro rata basis. Any funds then
remaining in a participating employee's account after purchase of the employee's
pro-rata number of shares will be refunded.

         16. TERMINATION OF THE PLAN. This Plan may be terminated at any time by
the Board. Except as otherwise provided in Section 13(c) hereof, upon
termination of this Plan all outstanding Options shall immediately terminate and
amounts in the employees' accounts will be promptly refunded.

         17. GOVERNMENTAL REGULATIONS.

         (a) The Company's obligation to sell and deliver Common Stock under
this Plan is subject to listing on a national stock exchange or quotation on
Nasdaq and the approval of all governmental authorities required in connection
with the authorization, issuance or sale of such stock.

         (b) The Plan will be governed by the laws of the State of Delaware,
without regard to the conflict of laws principles thereof, except to the extent
that such law is preempted by federal law.

         18. EFFECTIVE DATE. The Plan is effective as of January 1, 2000 (the
"EFFECTIVE DATE"), subject to the approval of the stockholders of the Company
within 12 months of the Effective Date.

                                      -5-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00000-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00000-of-00352.parquet"}]]