Document:

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                                                                   EXHIBIT 10.28

                           ODYSSEY RE HOLDINGS CORP.
                            LONG-TERM INCENTIVE PLAN

SECTION 1. -- ESTABLISHMENT AND PURPOSE

     1.1 Effective Date and Establishment of the Plan.  Odyssey Re Holdings
Corp., a Delaware corporation, and any successor thereto (the "Company"), hereby
establishes the Odyssey Re Holdings Corp. Long-Term Incentive Plan, as amended
from time to time (the "Plan") to permit the awarding of bonuses to Employees
(as such term is defined below), based on the achievement of certain
pre-established performance goals.

     Subject to approval by the stockholders of the Company, the Plan shall
become effective as of May 23, 2001 and continue until December 31, 2006, unless
extended by reaapproval of stockholders obtained prior to such time or unless
earlier terminated by the Company pursuant to Section 10. No bonus shall be made
pursuant to the Plan after its termination date; provided that bonuses granted
prior to the termination date may extend and be paid beyond that date.

     1.2 Purpose.  The purposes of the Plan are to (i) provide competitive
compensation opportunities based on corporate and individual performance, and
(ii) enhance the Company's ability to attract, retain and motivate the highest
caliber employees.

     The Plan is intended to secure the full deductibility of incentive awards
payable to the Executive Officers (as such term is defined below). All
compensation payable under this Plan to Executive Officers is intended to be
deductible by the Company under Section 162(m) of the Internal Revenue Code of
1986, as amended.

SECTION 2. -- DEFINITIONS

     As used in the Plan, the following terms shall have the meanings set forth
below (unless otherwise expressly provided).

     "Award Opportunity" means the various levels of incentive awards which a
Participant may earn under the Plan, as established by the Committee pursuant to
Section 5.1.

     "Base Salary" shall mean the regular base salary earned by a Participant
during the Plan Year prior to any salary reduction contributions made to any of
the Company's deferred compensation plans, except as otherwise determined by the
Committee in its sole discretion.

     "Board" or "Board of Directors" means the Board of Directors of the
Company.

     "Code" means the Internal Revenue Code of 1986, as amended.

     "Committee" means the Compensation Committee of the Board, provided that
the committee shall consist of two (2) or more individuals, appointed by the
Board to administer the Plan, pursuant to Section 3, who are "outside directors"
to the extent required by and within the meaning of Section 162(m) of the Code,
as amended from time to time.

     "Deferred Award" shall mean, for any Plan Year, that portion of a
Participant's Final Award that exceeds his or her Target Incentive Award for
such Plan Year.

     "Disability" shall have the same meaning as such term or similar term is
defined in the Company's long-term disability plan applicable to the
Participant, and shall be as determined in accordance with the terms and
conditions of such plan.

     "Effective Date" means the date the Plan becomes effective, as set forth in
Section 1.1 herein.

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     "Employee" means an employee of the Company, or a Subsidiary that is
participating in the Plan, who is employed at the level of assistant vice
president or above and is recommended by the Chief Executive Officer of the
Company, and is approved by the Committee for participation in the Plan.

     "Exchange Act" means the Securities Exchange Act of 1934, as amended from
time to time.

     "Executive Officer" shall mean an executive officer as set forth in Section
162(m) of the Code or any other executive officer designated by the Committee
for purposes of exempting distributions under the Plan from Section 162(m)(3) of
the Code.

     "Final Award" means the actual award (including, without limitation, any
Deferred Award) earned during a Plan Year by a Participant, as determined by the
Committee after the end of such Plan Year.

     "Financial" shall mean the corporate financial performance of the Company.

     "Non-financial" shall mean the non-financial performance of the Company's
operations designated as such by the Chief Executive Officer and approved by the
Committee for purposes of the Plan, such as a business unit, organizational
unit, division or other such segmentation.

     "Participant" means an Employee who is participating in the Plan pursuant
to Section 4.

     "Plan Year" means the Company's fiscal year, commencing on each January 1
and ending on December 31.

     "Retirement" means, with respect to any Participant, resignation or
termination of employment after attainment of an age regarded by the Company or,
if applicable, a Subsidiary as the normal retirement age for its employees in
general, based upon the Company or the Subsidiary's normal employment and
related policies and practices.

     "Subsidiary" means any (i) corporation if fifty percent (50%) or more of
the total combined voting power of all classes of stock is owned, either
directly or indirectly, by the Company or another Subsidiary or (ii) limited
liability company if fifty percent (50%) or more of the membership interests is
owned, either directly or indirectly, by the Company or another Subsidiary.

     "Target Incentive Award" means the award to be paid to a Participant when
performance measures are achieved, as established by the Committee.

SECTION 3. -- ADMINISTRATION

     The Plan shall be administered by the Committee.  Except with respect to
the matters that under Section 162(m) of the Code and Treasury Regulation
Section 1.162-27(e) are required to be determined or established by the
Committee to qualify awards under the Plan as qualified performance-based
compensation, the Committee shall have the power to delegate to any officer or
employee of the Company the authority to administer and interpret the procedural
aspects of the Plan, subject to the Plan's terms, including adopting and
enforcing rules to decide procedural and administrative issues.

     The Committee shall employ such legal counsel, independent auditors and
consultants as it deems appropriate for the administration of the Plan and shall
be entitled to rely in good faith upon any report, calculation or other
information furnished to it by any officer or employee of the Company or from
the financial, accounting, legal or other advisers of the Company.

     Subject to the limitations set forth herein, the Committee shall: (i)
select from the Employees, those who shall participate in the Plan, (ii) grant
Award Opportunities in such forms and amounts as it shall determine, (iii)
impose such limitations, restrictions and conditions upon such awards as it
shall deem appropriate, (iv) interpret the Plan and adopt, amend and rescind
administrative guidelines and other rules and regulations relating to the Plan,
(v) make any and all factual determinations in connection with the
administration and interpretation of the Plan, (vi) correct any defect or
omission or reconcile any inconsistency in this Plan or in any Award Opportunity
granted hereunder and (vii) make all other necessary determinations and take all
other

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actions necessary or advisable for the implementation and administration of the
Plan. The Committee's determinations on matters within its authority shall be
conclusive and binding upon all parties.

SECTION 4. -- ELIGIBILITY AND PARTICIPATION

     4.1 Eligibility.  Each Employee who is recommended by the Chief Executive
Officer of the Company to participate in the Plan, and who is approved by the
Committee, shall be eligible to participate in the Plan for such Plan Year,
subject to the limitations of Section 7 herein.

     4.2 Participation.  Participation in the Plan shall be determined annually
by the Committee based upon the criteria set forth herein. Employees who are
eligible to participate in the Plan shall be notified of the performance goals
and related Award Opportunities for the relevant Plan Year, as soon as
practicable.

     4.3 Partial Plan Year Participation.  Except as provided in Section 9, in
the event that an Employee becomes eligible to participate in the Plan
subsequent to the commencement of a Plan Year, then such Employee's Final Award
shall be based on the Base Salary earned as an eligible Employee.

     4.4 No Right to Participate.  No Participant or other Employee shall at any
time have a right to participate in the Plan for any Plan Year, despite having
participated in the Plan during a prior Plan Year.

SECTION 5. -- AWARD DETERMINATION

     5.1 Performance Goals.  Prior to the beginning of each Plan Year, or as
soon as practicable thereafter (but in no event more than ninety days from the
beginning of such Plan Year), the Committee shall, in its sole discretion,
approve or establish in writing the performance goals for that Plan Year. For
any performance period that is less than twelve months, the performance goals
shall be established before twenty-five percent (25%) of the relevant
performance period has lapsed.

     Except as provided in Section 9, the performance goals may include, without
limitation, any combination of Financial, Non-financial and individual
performance goals, as determined by the Committee in its sole discretion.
Performance measures and their relative weight may vary by job classification.
After the performance goals are established, the Committee will align the
achievement of the performance goals with the Award Opportunities (as described
in Section 5.2 herein), such that the level of achievement of the preestablished
performance goals at the end of the Plan Year will determine the amount of the
Final Award. Except as provided in Section 9, the Committee also shall have the
authority to exercise subjective discretion in the determination of Final
Awards, as well as the authority to delegate the ability to exercise subjective
discretion in this respect.

     The Committee also may establish one or more Company-wide performance goals
which must be achieved for any Participant to receive an award for that Plan
Year.

     The performance period with respect to which awards may be payable under
the Plan shall generally be the Plan Year; provided, however, that the Committee
shall have the authority and discretion to designate different performance
periods under the Plan.

     5.2 Objective Compensation Formula.  Prior to the beginning of each Plan
year, or as soon as practicable thereafter (but in no event more than ninety
days from the beginning of such Plan Year), the Committee shall, in its sole
discretion, approve or establish in writing the objective compensation formula
or standard for that Plan Year. Such objective compensation formula or standard
shall be the method for computing the amount of compensation payable to the
Participant if the performance goals are attained. The formula or standard is
objective if a third party having knowledge of the relevant performance results
could calculate the amount to be paid to a Participant.

     5.3 Award Opportunities.  Prior to the beginning of each Plan Year, or as
soon as practicable thereafter (but in no event more than ninety days from the
beginning of such Plan Year), the Committee shall establish an Award Opportunity
for each Participant. Such Award Opportunity may vary in relation to the job
classification of each Participant. Except as provided in Section 9, in the
event a Participant changes job

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levels during a Plan Year, the Participant's Award Opportunity may be adjusted
to reflect the amount of time at each job level during the Plan Year.

     5.4 Adjustment of Performance Goals.  Except as provided in Section 9, the
Committee shall have the right to adjust the performance goals and the Award
Opportunities (either up or down) during a Plan Year, to the extent permitted by
Code Section 162(m) and the regulations and interpretative rulings thereunder,
if it determines that external changes or other unanticipated business
conditions have materially affected the fairness of the goals and have unduly
influenced the Company's ability to meet them. Further, in the event of a Plan
Year of less than twelve (12) months, the Committee shall have the right to
adjust the performance goals and the Award Opportunities accordingly, in its
sole discretion.

     5.5 Final Award Determinations.  At the end of each Plan Year, Final Awards
(including, without limitation, Deferred Awards) shall be computed for each
Participant as determined by the Committee. Except as provided in Section 9,
each such award shall be based upon (i) the Participant's Target Incentive Award
percentage, multiplied by his Base Salary, in whole or in part (or other
preestablished objective compensation formula in accordance with Section 5.2),
and (ii) the attainment of Financial, Non-financial and individual performance
goals. Final Award amounts may vary above or below the Target Incentive Award,
based on the level of achievement of the pre-established Financial,
Non-financial, and individual performance goals. Notwithstanding the foregoing,
the Committee shall have, in its sole discretion, the right to reduce or
eliminate the compensation or other economic benefit upon attainment of
Financial, Non-financial and individual performance goals.

     5.6 Limitations.  The amount payable to a Participant for any calendar year
shall not exceed $12,500,000.

SECTION 6. -- PAYMENT OF FINAL AWARDS

     6.1 Form and Timing of Payment.  Within 120 days after the end of each Plan
Year, the Committee shall certify in writing the extent to which the Company and
each Participant has achieved the performance goals for such Plan Year,
including the specific target objective(s) and the satisfaction of any other
material terms of the awards, and the Committee shall calculate the amount of
each Participant's incentive award for the relevant period. Subject to Section
7, Final Award payments may be payable to the Participant, or to his estate in
the case of death, in a single cash payment within 120 days after the end of
each Plan Year or may be deferred to any of the Company's deferred compensation
plans or arrangements or in any other manner determined by the Committee, after
the Committee, in its sole discretion, has certified in writing that the
specified performance goals were achieved.

     6.2 Payment of Partial Awards.  In the event a Participant no longer meets
the eligibility criteria as set forth in the Plan during the course of a
particular Plan Year, the Committee may, in its sole discretion, compute and pay
a partial award for the portion of the Plan Year that an Employee was a
Participant.

     6.3 Unsecured Interest.  No Participant or any other party claiming an
interest in amounts earned under the Plan shall have any interest whatsoever in
any specific asset of the Company. To the extent that any party acquires a right
to receive payments under the Plan, such right shall be equivalent to that of an
unsecured general creditor of the Company.

SECTION 7. -- TERMINATION OF EMPLOYMENT

     7.1 Termination of Employment Due to Death, Disability, Retirement, or
Transfer to an Affiliate Not Included in the Plan.  In the event a Participant's
employment is terminated by reason of death, Disability, Retirement, or transfer
to an affiliated company not participating in the Plan (as determined by the
Committee in its sole discretion), the Final Award (including a Deferred Award)
determined in accordance with Section 5.4 herein shall be reduced to reflect
participation in the Plan prior to such termination only. In the case of a
Participant's Disability, termination of employment shall be deemed to have
occurred on the date the Committee determines that the requirements of
Disability have been satisfied.

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     The Final Award (including a Deferred Award) thus determined shall be
payable to such Participant at the time that the Final Awards (including
Deferred Awards) for such Plan Year would otherwise be payable to active
Participants.

     7.2 Termination of Employment for Other Reasons.  In the event a
Participant's employment is terminated for any reason other than death,
Disability, Retirement or transfer to an affiliated company not participating in
the Plan (of which the Committee shall be the sole judge) prior to the payment
date of a Final Award and/or Deferred Award, all of the Participant's rights to
such Final Award and/or Deferred Award shall be forfeited. However, the
Committee, in its sole discretion, may pay a partial award for the portion of
that Plan Year that the Participant was employed by the Company, as determined
by the Committee in its sole discretion.

SECTION 8. -- RIGHTS OF PARTICIPANTS

     8.1 Employment.  Nothing in the Plan shall interfere with or limit in any
way the right of the Company to terminate a Participant's employment at any time
or confer upon any Participant any right to continue in the employ of the
Company.

     8.2 Nontransferability.  No right or interest of any Participant in the
Plan shall be assignable or transferable, or subject to any lien, directly, by
operation of law, or otherwise, including, but not limited to, execution, levy,
garnishment, attachment, pledge, and bankruptcy.

SECTION 9. -- EXECUTIVE OFFICERS

     9.1 Applicability.  The provisions of this Section 9 shall apply only to
Executive Officers. In the event of any inconsistencies between this Section 9
and the other Plan provisions, the provisions of this Section 9 shall control.

     9.2 No Partial Plan Year Participation.  An Executive Officer who first
becomes eligible to participate in the Plan after the beginning of a Plan Year
may participate in the Plan for the succeeding Plan Year.

     9.3 Award Determination.  Prior to the beginning of each Plan Year, or as
soon as practicable thereafter, the Committee shall establish the Target
Incentive Award percentage for each Executive Officer and the performance goals
for that Plan Year. The Committee shall choose the performance goals from among
any combination of the Financial and Non-financial performance goals set forth
in Schedule A and such individual performance goals as established by the
Committee. The Committee may select one or more of the performance goals
specified from Plan Year to Plan Year which need not be the same for each
Executive Officer in a given year.

     At the end of the Plan Year and prior to payment of a Final Award, the
Committee shall certify in writing the extent to which the performance goals and
any other material terms were satisfied. Final Awards shall be computed for each
Executive Officer based on (i) the Participant's Target Incentive Award
multiplied by his Base Salary and (ii) the Financial, Non-financial and
individual performance goals (if applicable).

     Final Award amounts may vary above or below the Target Incentive Award
based on the level of achievement of the pre-established Financial,
Non-financial and individual performance goals.

     9.4 Non-adjustment of Performance Goals.  Once established, performance
goals shall not be changed during the Plan Year. Participants shall not receive
any payout when the Company or Non-financial segment (if applicable) does not
achieve at least minimum performance goals.

     9.5 Discretionary Adjustments.  The Committee retains the discretion to
eliminate or decrease the amount of the Final Award otherwise payable to a
Participant.

     9.6 Possible Modification.  If, on advice of the Company's tax counsel, the
Committee determines that Code Section 162(m) and the regulations thereunder
will not adversely affect the deductibility, for federal income tax purposes, of
any amount paid under the Plan by applying one or more of Sections 2, 4.3, 5.1,
5.2, 5.3, 5.4 or 5.5 to an Executive Officer without regard to the exceptions to
such Section or Sections contained

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in this Section 9, then the Committee may, in its sole discretion, apply such
Section or Sections to the Executive Officer without regard to the exceptions to
such Section or Sections that are contained in this Section.

SECTION 10. -- AMENDMENT AND MODIFICATION

     The Board or the Committee, in its sole discretion, without notice, at any
time and from time to time, may modify or amend, in whole or in part, any or all
of the provisions of the Plan, or suspend or terminate it entirely; provided,
however, that no such modification, amendment, suspension, or termination may,
without the consent of a Participant, reduce the right of a Participant to a
payment or distribution hereunder which he has already earned and to which he is
otherwise entitled.

SECTION 11. -- MISCELLANEOUS

     11.1 Governing Law.  The Plan, and all agreements hereunder, shall be
        governed by and construed in accordance with the laws of the State of
        Delaware.

     11.2 Withholding Taxes.  The Company shall have the right to deduct from
        all payments under the Plan any Federal, state, or local income and
        employment taxes required by law to be withheld with respect to such
        payments.

     11.3 Gender and Number.  Except where otherwise indicated by the context,
        any masculine term used herein also shall include the feminine, the
        plural shall include the singular, and the singular shall include the
        plural.

     11.4 Severability.  In the event any provision of the Plan shall be held
        illegal or invalid for any reason, the illegality or invalidity shall
        not affect the remaining parts of the Plan and the Plan shall be
        construed and enforced as if the illegal or invalid provision had not
        been included.

     11.5 Costs of the Plan.  All costs of implementing and administering the
        Plan shall be borne by the Company.

     11.6 Successors.  All obligations of the Company under the Plan shall be
        binding upon and inure to the benefit of any successor to the Company,
        whether the existence of such successor is the result of a direct or
        indirect purchase, merger, consolidation, or otherwise, of all or
        substantially all of the business and/or assets of the Company.

     11.7 Meaning of "Company".  Any reference to the Company includes, if and
        to the extent applicable, a reference to any Subsidiary.

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                                   SCHEDULE A

<TABLE>

------------------------------------------------------------
               FINANCIAL PERFORMANCE MEASURES
------------------------------------------------------------
<S>                                                         <C>
  Combined Ratio, which is a combination of an underwriting
  expense ratio and a claims/claims adjustment expense ratio
------------------------------------------------------------
  Earnings before interest, taxes, depreciation, and
  amortization
------------------------------------------------------------
  Earnings before interest and taxes
------------------------------------------------------------
  Return on investment
------------------------------------------------------------
  Return on net assets
------------------------------------------------------------
  Return on invested capital
------------------------------------------------------------
  Return on equity
------------------------------------------------------------
  Underwriting Profit
------------------------------------------------------------
  Profit before taxes
------------------------------------------------------------
  Profit margin
------------------------------------------------------------
  Net operating profit after taxes
------------------------------------------------------------
  Cash value added
------------------------------------------------------------
  Revenue growth
------------------------------------------------------------
  Cash-flow return on investment
------------------------------------------------------------
  Economic value added
------------------------------------------------------------
</TABLE>

<TABLE>
<S>                                                      <C>
------------------------------------------------------------
             NON-FINANCIAL PERFORMANCE MEASURES
------------------------------------------------------------
  Expense management
------------------------------------------------------------
  Customer satisfaction
------------------------------------------------------------
  Quality
------------------------------------------------------------
  Human resources management
------------------------------------------------------------
  Development and execution of strategic initiatives
------------------------------------------------------------
</TABLE>

                                       A-1<PAGE>   1

                                                                   EXHIBIT 10.29

                           ODYSSEY RE HOLDINGS CORP.

                                (NON-QUALIFIED)

                          EMPLOYEE SHARE PURCHASE PLAN

     1.   PURPOSE.  The purpose of the Odyssey Re Holdings Corp. (Non-Qualified)
Employee Share Purchase Plan, as amended from time to time (the "Plan"), is to
provide eligible employees with an opportunity to purchase Shares (as such term
is defined below) through payroll deductions and employer contributions. It is
the intention of Odyssey Re Holdings Corp., a Delaware corporation, and any
successor thereto (the "Company") that the Plan shall not qualify as an
"Employee Stock Purchase Plan" under Section 423 of the U.S. Internal Revenue
Code of 1986, as amended (the "Code"). Participation in the Plan will provide
eligible employees who wish to acquire an interest in the Company with a method
of doing so which is both convenient and, by virtue of employer contributions,
favorable to the employees. It is believed that employee participation in
ownership of the Shares on this basis will be to the mutual benefit of the
employees and the Participating Companies (as such term is defined below).

     2.   DEFINITIONS AND RULES OF CONSTRUCTION.

     (a)  Definitions. For purposes of the Plan, the following capitalized words
          shall have the meanings set forth below:

     "Account" means a separate record keeping account that the Administrator
maintains for each Participant for the credit of Participant Contributions,
Company Contributions, Shares purchased therefrom and dividends received in
respect of Shares.

     "Administrator" means the Company, or such other entity as may be
designated from time to time by the Board to administer the Plan.

     "Board" means the Board of Directors of the Company.

     "Company" includes, except in these definitions, if and to the extent
applicable, a Participating Company.

     "Company Contributions" means the contributions of the Company to the Plan
provided for in Section 6.

     "Custodian" means an independent custodian designated by the Administrator
in its sole discretion.

     "Earnings" means a Participant's amount of base salary paid in each payroll
period before giving effect to any salary reduction agreement pursuant to a
qualified cash or deferred arrangement within the meaning of Section 401(k) of
the Code or to any similar reduction agreement pursuant to any cafeteria plan
(within the meaning of Section 125 of the Code).

     "Earnings Percentage" means a percentage, which may be any integer from 1
to 10 inclusive, which is the percentage of a Participant's Earnings that the
Company will deduct as Participant Contributions.

     "Effective Date" means June 15, 2001.

     "Employee" means any individual who is employed on a full-time basis by a
Participating Company, as determined by the Administrator, and any other
individual designated by the Administrator who is employed on a regular basis by
a Participating Company.

     "Month" means a calendar month.

     "Participant" means an Employee who has elected to participate in the Plan
pursuant to the provisions of Section 4, who has completed his Probationary
Period and who has not withdrawn from the Plan.

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     "Participant Contributions" means the contributions of Participants to the
Plan pursuant to the provisions of Section 5.

     "Participating Companies" means and includes the Company and any Subsidiary
that has elected to participate in the Plan with the consent of the Company.

     "Probationary Period" means, unless determined otherwise by the
Administrator in its sole discretion, the period commencing on an Employee's
date of hire and ending on the 12-month anniversary of such Employee's date of
hire.

     "Restricted Period" means, with respect to any Shares, the period of time
during which a Share is subject to restrictions on transfer as set forth in
Section 10.

     "Shares" means the common stock of the Company, par value $.01 per share.

     "Subsidiary" means any (i) corporation if fifty percent (50%) or more of
the total combined voting power of all classes of stock is owned, either
directly or indirectly, by the Company or another Subsidiary or (ii) limited
liability company if fifty percent (50%) or more of the membership interests is
owned, either directly or indirectly, by the Company or another Subsidiary.

     "Transfer" means to sell, assign, transfer, pledge or otherwise dispose of,
or encumber, any Share.

     "Withdrawal Notice Period" means the period from January 1 to the last day
of February in each year.

     "Year" or "Plan Year" means the calendar year; provided, however, that for
purposes of this Plan, the period between the Effective Date and December 31,
2001 shall also be a Year and a Plan Year.

     (b)  Rules of Construction. The masculine pronoun shall be deemed to
          include the feminine pronoun and the singular form of a word shall be
          deemed to include the plural form, unless the context requires
          otherwise. Unless the text indicates otherwise, references to
          "Sections" are to sections of the Plan.

     3.   ELIGIBILITY.  Each Employee who has completed his Probationary Period
shall be eligible to participate in the Plan. Subject to the satisfaction of
Section 4, an Employee shall be eligible to participate in the Plan commencing
in the first payroll period which falls entirely outside his Probationary
Period.

     4.   PARTICIPATION.

     (a)   Each Employee may elect to participate in the Plan by submitting a
           complete enrollment form (as approved by the Administrator from time
           to time) to the Administrator, indicating his desired Earnings
           Percentage. Such election shall not be effective with respect to any
           payroll period unless such form is received at least ten (10) days
           prior to the commencement of such payroll period. Any such election
           shall remain in effect until it is changed or revoked by the
           Participant.

     (b)   Unless otherwise determined by the Administrator in its sole
           discretion, upon a Participant's termination of employment with the
           Participating Companies for any reason (the date of a Participant's
           termination of employment shall be determined by the Administrator in
           its sole discretion), such Participant shall be deemed to have
           withdrawn from the Plan.

     5.   CONTRIBUTIONS BY PARTICIPANTS.

     (a)   Participants shall make Participant Contributions by means of regular
           payroll deductions in an amount, as regards each Participant, equal
           to that Participant's then elected Earnings Percentage of Earnings.
           Such payroll deductions shall be made at each payroll period.

     (b)   A Participant may, at any time and for any reason, adjust his
           Earnings Percentage, terminate his Participant Contributions or
           withdraw from the Plan by providing written notice to the
           Administrator of the same on a change in enrollment form (as approved
           by the Administrator from time to time); provided, however, that,
           unless otherwise determined by the Administrator in its sole
           discretion, such Participant may provide such a notice only once in
           any thirty (30)-day period.

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        Such notice shall be effective in the first payroll period commencing
        after the date of providing such notice.

     (c)   Unless otherwise determined by the Administrator in its sole
           discretion, if a Participant terminates his Participant Contributions
           or withdraws from the Plan, such Participant shall not be permitted
           to recommence Participant Contributions or re-enroll in the Plan for
           ninety (90) days following such termination or withdrawal.

     6.   CONTRIBUTIONS BY THE COMPANY.

     (a)   Unless otherwise determined by the Administrator, the Company shall,
           on the last business day of each Month, make a Company Contribution
           to the Plan on behalf of each Participant in an amount equal to
           thirty percent (30%) of the amount of Participant Contributions made
           by that Participant in such Month.

     (b)   The Company shall, within ninety (90) days after the end of each Plan
           Year in which the Company has achieved a return on equity of at least
           fifteen percent (15%), as computed in accordance with generally
           accepted accounting principles, make an additional Company
           Contribution to the Plan on behalf of each Employee who is then a
           Participant in an amount equal to twenty percent (20%) of the amount
           of Participant Contributions made by that Participant during the
           immediately preceding Plan Year.

     7.   ACCOUNTS AND ALLOCATIONS TO PARTICIPANTS.

     (a)   The Administrator shall establish and maintain a separate Account in
           respect of each Participant showing all Participant Contributions and
           Company Contributions, the total number of whole Shares and
           fractional Shares, and the amount of dividends (and interest thereon,
           if any), allocated to his Account.

     (b)   All Participant Contributions and Company Contributions shall be
           forwarded by the Administrator to the Custodian in a timely manner.

     (c)   All dividends received in respect of the Shares held in a
           Participant's Account, and the interest earned thereon, if any, shall
           be allocated by the Administrator to the Participant's Account in a
           timely manner and shall be subject to Sections 10 and 11.

     8.   VESTING.  All Participant Contributions and Company Contributions
allocated to a Participant's Account shall be fully and immediately vested upon
being allocated to his Account.

     9.   PURCHASE OF SHARES.

     (a)   The Administrator shall designate a Custodian that shall acquire
           Shares as the agent for the Participants. The Custodian shall use the
           Participant Contributions and the Company Contributions forwarded to
           it to purchase on the open market in a timely manner as many Shares
           as may be acquired with such contributions.

     (b)   Upon any such purchase of Shares, the Custodian shall allocate to
           each Participant's Account the number of whole and fractional Shares
           to which such Participant is entitled. All Shares purchased pursuant
           to the provisions of this Section 9 shall be subject to a Restricted
           Period and such Shares shall be held by the Custodian in escrow on
           behalf of the applicable Participants until the expiration of the
           Restricted Period.

     (c)   During the Restricted Period, all rights with respect to Shares
           allocated to a Participant's Account (including the right to vote)
           shall be exercisable by the Participant, except as expressly provided
           otherwise herein.

     10. RESTRICTED PERIOD.

     (a)   A Participant may not Transfer any Share allocated to his Account in
           any Plan Year during the period commencing on the date such Share is
           so allocated and expiring at the end of the

                                        3
<PAGE>   4

        Withdrawal Notice Period falling in the immediately following Plan Year
        (the "Restricted Period").

     (b)   Until the expiration of the Restricted Period, a Participant shall
           not be entitled to delivery of a certificate evidencing a Share which
           is subject to the restrictions on transferability set forth in
           Section 10(a).

     (c)   Any cash dividends and stock dividends with respect to Shares subject
           to a Restricted Period shall be subject to the same restrictions as
           the underlying Shares.

     11. DISTRIBUTIONS FROM THE PLAN.

     (a)   Upon the expiration of the Restricted Period with respect to any
           Share, the restrictions set forth in Section 10 shall be of no
           further force or effect with respect to such Share. During the
           Withdrawal Notice Period in each Year, a Participant may submit
           written notification to the Company that he wishes to withdraw some
           or all of the whole Shares allocated to his Account, in which event
           the Custodian shall, within a reasonable time after the last day of
           February in such Year, deliver to the Participant, without charge,
           one or more certificates evidencing the Shares requested. Any such
           distribution shall reduce the number of Shares allocated to such
           Participant's Account.

     (b)   Within a reasonable time after the last day of February in each Plan
           Year, the Custodian and/or the Administrator shall distribute to each
           Participant all cash dividends (and, if applicable, any interest
           earned thereon) forming part of such Participant's Account at the end
           of the immediately preceding Plan Year.

     (c)   Within a reasonable time after the termination of a Participant's
           employment with the Participating Companies for any reason, the
           Custodian and/or the Administrator shall deliver to the Participant,
           without charge, one or more certificates evidencing the whole Shares,
           and any cash dividends or stock dividends, credited to the
           Participant's Account, together with a cash payment in lieu of any
           fractional Shares credited to his Account, in the amount determined
           by the Administrator and funded by the Company, and together with any
           other assets then credited to his Account.

     (d)   A Participant may apply to the Company at any time and from time to
           time to receive an immediate distribution of part or all of the
           Shares or other assets held in his Account, or to otherwise reduce
           any Restricted Period. The decision upon any such application shall
           be at the absolute discretion of the Company, and no such decision,
           or any other determination permitted on a discretionary basis
           hereunder to the Administrator or the Company, shall have any
           precedent value. Any such distribution shall serve to reduce that
           Participant's Account.

     12. ADMINISTRATION.

     (a)   The Administrator may make, amend and repeal at any time and from
           time to time such regulations not inconsistent herewith as it may
           deem necessary or advisable for the proper administration and
           operation of the Plan. In particular, the Administrator may delegate
           to any person, group of persons or corporation, such administrative
           duties and powers as it may see fit.

     (b)   Notwithstanding the foregoing, the Administrator shall have the power
           to interpret the provisions of the Plan and to make regulations and
           formulate administrative provisions for carrying them out and to make
           such changes in the Plan and in the regulations and administrative
           provisions as, from time to time, the Administrator deems necessary.
           All decisions and interpretations of the Administrator respecting the
           Plan and all rules and regulations made from time to time pursuant
           hereto, shall be binding and conclusive on the Company and on all
           Participants in the Plan and their respective legal representatives
           and on all Employees eligible under the Plan to participate therein.

     (c)   The Administrator shall have full power and authority, subject to the
           express provisions hereof, to construe and interpret the Plan and
           make any factual determinations hereunder.

                                        4
<PAGE>   5

     13. PARTICIPANT'S RIGHT NOT TRANSFERABLE.  Except as otherwise provided
herein, and except for transfers by will or under the laws of descent and
distribution, no Employee shall have the right to Transfer either his right to
participate in the Plan or his interest in the Shares or other assets credited
to his Account, and no such attempted Transfer shall be effective.

     14. AMENDMENT; TERMINATION.  Notwithstanding anything herein to the
contrary, the Board may, at any time, amend, modify, terminate or suspend the
Plan; provided, however, that no amendment or modification that otherwise must
be approved by stockholders, pursuant to applicable rules of a stock exchange or
any requirements under Section 162(m) of the Code and the regulations
promulgated thereunder, shall be effective without stockholder approval.
However, except as otherwise expressly provided herein, no such action will,
without the express written consent of a Participant, alter or impair his rights
existing at such time with respect to any Shares or other assets credited to his
Account.

     15.   TERMINATION OF PLAN.  Upon termination of the Plan, all assets
credited to all Accounts shall, within a reasonable time after such termination,
be distributed to the respective Participants in a manner similar to the
distributions provided for in Section 11(c).

     16.   COSTS.  The Company shall pay all costs of administering the Plan.
Brokerage fees with respect to the purchase of Shares pursuant to the Plan shall
be paid by the Company.

     17.   NO RIGHT TO CONTINUED EMPLOYMENT.  Participation in the Plan shall be
entirely voluntary and shall not be construed to give any Employee the right to
be employed or to continue to be employed by the Company.

     18.   APPLICABLE LAW.  The Plan shall be governed by and construed in
accordance with the laws of the State of Delaware (without giving effect to
principles of conflicts of laws).

     19.   EFFECTIVE DATE.  The Plan shall become effective on the Effective
Date, and shall remain in effect until it has been terminated pursuant to
Section 15.

     20.   WAGE AND TAX WITHHOLDING.  The Participating Companies are authorized
to withhold from any Shares or any compensation or other payment to a
Participant amounts of withholding and other taxes due in connection with any
Shares or with any Company Contributions, and to take such other action as the
Administrator may deem necessary or advisable to enable the Company and the
Participants to satisfy obligations for the payment of withholding taxes and
other tax obligations relating thereto. This authority shall include authority
for the Company to withhold or receive Shares or other property and to make cash
payments in respect thereof in satisfaction of a Participant's tax obligations,
either on a mandatory or elective basis, in the sole discretion of the Company.

                                        5

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