Document:

Exhibit 10.1

                          CHARTWELL INTERNATIONAL, INC.

                         EXECUTIVE EMPLOYMENT AGREEMENT
                                       of
                                 JANICE A. JONES

     THIS EXECUTIVE EMPLOYMENT AGREEMENT ("Agreement") is made as of February 1,
2001 by and between Chartwell International, Inc.., a Nevada corporation (the
"Company"), with an address at 333 South Allison Parkway, Lakewood, Colorado
80226, and Janice A. Jones, with an address at 2450 W. Kettle Avenue, Littleton,
Colorado 80120 (the "Employee").

     In consideration of the premises and mutual covenants contained herein, the
parties agree as follows:

1. Employment. For a term of five (5) years from the date above, (the "Effective
Date"), with automatic annual extensions thereafter, unless either party gives
notice to the other no less than thirty (30) days before the end of any term
that this agreement will not be renewed, Employee shall be employed as the Chair
of Board and President of the Company, and shall have the duties and
responsibilities customary to someone in that position, including the duties and
responsibilities set forth on Schedule 1, subject to the Company's right to
expand, limit or change such duties and provided that it is envisioned by
Employee and Company and shall become the Executive Vice President Corporate
Development of Company within the first year of the term of this Agreement,
premised upon acceptable performance by Employee under this Agreement and
otherwise as determined by Company's Board of Directors in its sole and absolute
discretion. Company and Employee understand and agree that Employee is
considered to be part of executive and management personnel of Company and/or
professional staff as contemplated by C.R.S. ss. 8-2-113(2)(d), a copy of which
is attached hereto as Exhibit 2 and incorporated into the terms hereof by this
reference. During the term of employment hereunder, Employee shall report to the
current President and CEO of the Company and/or the Board of Directors, and
shall devote her best efforts and business time and attention to the business
and affairs of the Company, excluding time off for vacation and reasonable time
off for illness and sick days in accordance with the Company's policies in
effect from time to time. Employee shall perform her duties and responsibilities
to the Company hereunder to the best of her abilities in a diligent,
trustworthy, businesslike and efficient manner.

2. Compensation and Benefits.

(a) (1) Employee's Base Salary. In consideration for rendering the services as
set forth herein, Employee shall receive an initial annual base salary of SIXTY
THOUSAND DOLLARS ($60,000), for which the employee will commit at least 40% of
her time to company matters, of which TWO THOUSAND FIVE HUNDRED ($2,500.00)
shall be paid semi-monthly in arrears, and deferred and payable in accordance
with paragraph 2 (b) below. Employee's salary will be reviewed by the Company
and Employee annually on or each anniversary of the effective date of the
Agreement and shall be adjusted by mutual agreement of the parties.

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(b) Deferred Compensation. The deferred compensation referenced in subparagraph
(a) above shall be payable to Employee upon the earlier to occur of (i) November
1, 2002 (provided Employee is employed by Company on such date pursuant to this
Agreement); or (ii) upon Company obtaining sufficient financing. In addition,
the full applicable periodic compensation shall be paid and there shall be no
deferral in each month where the Company is realizing over One Hundred Thousand
($100,000) positive cash flow per month, after payment of all expenses and costs
of whatever kind or nature, including, without limitation, loan repayments,
principal and interest.

(b) Barter Credits. Employee will receive up to $20,000 in barter credits for
each year of this contract.

(c) Bonus. In addition to all other compensation, the Employee shall participate
in a bonus program for executives as approved by the Board of Directors.

(d) Benefits. The Employee shall be eligible to be a participant in any medical,
dental, disability or health benefit plans which the Company may provide to
similarly situated employees from time to time, as well as be included in any
pension plan or profit sharing that the Company may implement from time to time,
provided that Employee shall be entitled to substantially the same benefits
package as currently enjoyed by similarly situated employees.

(e) Expenses. The Company agrees that Employee shall be entitled to
reimbursement for traveling, entertainment and other expenses reasonably
incurred by Employee in the performance of her employment obligations and
responsibilities and reasonably related automobile expenses as are available to
similarly situated executive employees; provided that such expenses be
pre-approved by the Company and that the Company's liability in this regard
shall otherwise be limited by the terms and conditions of Company policy in
effect on the date that the expense is incurred.

     Termination.

     For Cause by Company. This Agreement may be terminated by Company for
cause, at any time, effective upon written notice to Employee. The term "cause"
shall mean any one of the following: (a) Employee has breached this Agreement,
which breach remains uncured to the reasonable satisfaction of the Board of
Directors of Company for thirty (30) days after Employee receives written notice
thereof from the Board of Directors; (b) Employee has committed willful
misconduct or any willful violation of law in the performance of Employee's
duties to Company; (c) Employee has willfully failed to follow reasonable,
lawful and explicit instructions of the Board of Directors of Company concerning
the operations or business of Company; (d) Employee has been convicted of a
felony deemed by Company to be adverse to its business or reputation; (e)
Employee has willfully misappropriated funds or property of Company; (f)
Employee has willfully obtained a personal profit from any transaction which
constitutes a corporate opportunity of Company or any affiliates, unless the
transaction was approved in writing by Company's Board of Directors after full
disclosure of all details relating to such transaction, or (g) Employee has
directly or indirectly caused a breach of the confidentiality or non-compete
provisions, (h) Employee works part time or full time for any other entity.

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(f) Without Cause by Company. This Agreement may be terminated without cause by
the Company at anytime effective upon written notice to Employee, provided that,
if Employee is terminated "without cause," severance will be paid to the
Employee as follows: (I) if the Employee is terminated without cause within one
year of the date of execution of this Agreement, the Employee shall continue to
be paid her base salary for three (3) months, and (ii) if the Employee is
terminated without cause later than one year after execution of this Agreement,
the Employee shall continue to be paid her base salary for six (6) months.

(g) Voluntarily by Employee. In the event Employee elects to voluntarily
terminate her employment pursuant to notice as provided herein, Company shall
pay Employee the prorated compensation through the date of termination and any
unexercised stock options (whether vested or not) held by Employee shall
automatically expire and automatically be deemed terminated and of no further
force and effect upon such notice of voluntary termination. Upon payment by
Company of such prorated compensation, Company shall be relieved of all further
obligations to Employee under this Agreement. In such event, Employee will be
bound by the provisions of Sections 5 and 6 hereof.

(h) Effect of Termination on Stock Options as to Sections 3(a) and 3(b). If
Employee is terminated by Company pursuant to subparagraphs 3(a) or 3(b), he
must exercise all vested stock options within ninety (90) days of termination,
and any unexercised stock options (whether vested or not) held by Employee in
the shares of Company or in the shares of any affiliate of Company shall
automatically expire upon such termination and automatically be deemed
terminated and of no further force and effect. This provision shall control any
inconsistent or conflicting provision in this Agreement and in any other
agreement between Company, or any affiliate of Company and Employee.

(i) Death or Disability. The term of employment hereunder shall also terminate
immediately upon the death or "permanent disability" of the Employee ("permanent
disability" being defined as the inability of the Employee to adequately perform
her work in accordance with the provisions of this Agreement for a period of
ninety (90) days, and thereupon the Employee shall not be entitled to receive
any further salary or other compensation; provided however, that the Employee,
or the Employee's estate or guardian, as the case may be, shall be entitled to
exercise any vested unexercised stock options pursuant to their terms, and all
non-vested stock options shall be automatically terminated.

2. Notice Period. Employee and Company understand and agree that should Employee
terminate employment he will give Company thirty (30) days' advance written
notice (the "Notice Period"). Company may, at its option, pay Employee for the
Notice Period in lieu of active employment during the Notice Period. It is
understood that a party's exercise of its rights under this Paragraph shall be
without prejudice to any other right or remedy which it may have at law, in
equity, or under this Agreement, including, without limitation, Company's right
to terminate such employment without notice for Cause.

2.1 Company agrees to continue in effect during the Notice Period payment of the
salary only without bonus or any other compensation to which Employee may be
entitled under this Agreement, which payments shall be made if and only if the
Employee has executed and delivered to the Company a general release of all

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claims against the Company and its stockholders, directors, and employees in
form and substance satisfactory to the Company and only so long as Employee has
not breached and during the Notice Period does not breach the provisions of
Sections 5 and 6 hereof, which provisions shall extend beyond the term of
employment and shall survive termination or expiration of this Agreement.

2.2 Employee agrees that during the Notice Period, he will cooperate fully with
Company in all matters relating to the winding up of any pending work and the
orderly transfer to other Company employees of accounts and matters for which
Employee has been responsible.

2.3 Employee agrees that, prior to the expiration of the Notice Period, he will
return to Company all lists of prospects, candidates and other matters compiled
by Company's management and research staff, or by Employee while employed by
Company, and all business records and materials related thereto, whether in
tangible form, or on computer hard disks, diskettes, on tape drives or any
electronic media, computer literature, correspondence, notes, memoranda,
reports, summaries, manuals, proposals, contracts and other documents of any
kind which relate in any way to the business of Company, including specifically
all materials which comprise or refer to Company's Confidential Information.
Employee will not retain any copy, facsimile or note intended to memorialize any
such data. Employee further agrees that Company's Confidential Information and
trade secrets, remains the sole and exclusive property of Company and subject to
the terms of this Agreement.

2.4 Employee agrees that, at or about the expiration of the Notice Period,
Company may convene an exit interview to review the status of accounts and
matters for which Employee has most recently been responsible to ensure that
Employee has fully obtained any entitlements which may be available under this
Agreement and/or to confirm that Employee clearly understands the nature and
scope of all of her post-employment obligations.

3. Confidentiality.

(a) Employee recognizes that by virtue of Employee's employment by Company
Employee will be afforded numerous and extensive resources to assist Employee in
the solicitation, development, production and servicing of business clients.
Employee understands and agrees that all efforts that Employee expends and
programs and strategies Employee develops in this regard shall be for the
permanent and exclusive benefit of Company, that Company shall secure and retain
indefinitely the proprietary interest in all such business clients, and that
Employee will not undertake any action which could in any way disturb Company's
relationship with said business clients or Company accounts.

(b) Employee further recognizes that by virtue of her employment relationship to
Company, Employee will be granted otherwise prohibited access to confidential,
proprietary information and data of Company which is not known either to its
competitors or within the collegiate student business and related financial
planning business generally and which has independent economic value to Company
and to its subsidiaries and affiliates. This information (hereinafter referred
to as "Confidential Information") includes trade secrets, as contemplated by
C.R.S. ss.ss.7-74-102(4) and 8-2-113(2)(b) (a copy of which is attached hereto
as Schedule 2 and the terms of which are incorporated herein by this reference)
and also includes, but is not limited to: the whole or any portion or phase of
any technical information, process, procedure, formula, improvement,

<PAGE>

confidential business or financial information, business plan, listing of names,
addresses, or telephone numbers, or other information relating to Company, its
subsidiaries and affiliates' business which is secret and of value, including,
but not limited to, data relating to Company, its subsidiaries and affiliates'
unique marketing and servicing programs, procedures and techniques; business,
management and personnel strategies; the criteria and formulae used by Company,
its subsidiaries and affiliates in pricing their products; lists of prospects,
candidates, and other matters compiled by Company, its subsidiaries and
affiliates' management and research staff; the identity, addresses, telephone
numbers, authority and responsibilities of key contacts at Company accounts or
its subsidiaries' or affiliates' accounts, including, but not limited to, high
schools and colleges; details concerning the academic, athletic and personal
backgrounds of student-athlete collegiate scholarship candidates, including
attributes of the scholarship candidates; commission rates of Company, its
subsidiaries and affiliates' personnel; and other data showing the
particularized requirements and preferences of clients and Company, its
subsidiaries and affiliates' accounts, including, but not limited to, high
schools and colleges. Employee recognizes that this Confidential Information
constitutes a valuable property of Company and of its subsidiaries and
affiliates developed over a long period of time and at substantial expense.
Accordingly, Employee agrees that Employee will not, at any time during the
employment relationship with the Company or for a period of three (3) years
after the termination of the Employment relationship with Company, divulge such
Confidential Information or make use of such Confidential Information for
Employee's own purposes or the purposes of another.

4. Non-Compete. Employee recognizes Company's legitimate interest in protecting,
during and for a reasonable period of time following the termination of
Employee's employment, those Company accounts and business contacts with which
Employee will be associated during her employment. Accordingly, Employee
understands and agrees that while employed by Company and for a period of three
(3) years following termination of employment with Company (unless, the Employee
has been terminated without cause by Company, in which case for a period of one
(1) one year following termination), Employee will not compete with the business
of the Company or of any subsidiary or affiliate of Company or solicit the
customers of the Company or of any subsidiary or affiliate of Company. The
geographic limitation within which the Employee shall not compete includes any
states in which Company conducts its business as of the date of the termination
of Employee's employment with the Company. Notwithstanding this location
limitation, Employee will not, during the non-competition period, solicit or
perform work for any of Company's existing customers or clients as of the date
of termination of Employee's employment, regardless of the location from which
such work is performed. If the time or geographic limitation set forth herein is
deemed to be unreasonable, Employee agrees to abide by the maximum time or
geographic limitation decided by a court or other tribunal of competent
jurisdiction.

5. Breach of Agreement. Employee and Company understand and agree that any
breach or evasion of any term of this Agreement will potentially give rise to
actions for breach of contract or tort, which may be brought in any court of
competent jurisdiction. Employee recognizes that the rights and privileges
granted to Employee by this Agreement and Employee's services and Employee's
corresponding covenants to Company are of a special, unique and extraordinary
character, the loss of which cannot reasonably or adequately be solely
compensated for in damages in any action at law or through the offset or
withholding of any monies to which Employee otherwise might be entitled from
Company. Accordingly, Employee understands and agrees that Company shall also be

<PAGE>

entitled to equitable relief, including a temporary restraining order and
preliminary and permanent injunctive relief, to prevent a breach of this
Agreement. The remedies available to Company under this Agreement are
cumulative. Company may, in its sole discretion, elect to pursue all or any of
such remedies. Such remedies are in addition to any given by law or equity and
may be enforced successively or concurrently.

6. Successors or Assigns. This Agreement will be binding upon and benefit the
parties hereto and their assigns, executors, heirs or successors, provided that
Employee will not assign any obligation hereunder without the Company's prior
written consent, which consent may be withheld by Company for any reason, and
any such attempted assignment shall be void.

7. Amendment, Modification, or Waiver. No amendment, modification or waiver of
any condition, provision, or terms of this Agreement will be valid or of any
effect unless made in writing and signed by the party or parties to be charged.
Any waiver by any party of any default of the other party will not affect or
impair any rights arising from any subsequent default by such party.

8. Severable Conditions. Each provision of this Agreement is intended to be
severable. If any provision hereof is illegal or invalid for any reason, such
illegality or invalidity shall not affect the remainder of this Agreement.

9. Entire Agreement. This Agreement contains the entire agreement and
understanding of the parties respecting the transaction contemplated hereby and
supersedes all prior agreements and understandings between the parties
respecting the subject matter of this Agreement.

10. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Colorado with exclusive venue for the
enforcement hereof to be in Jefferson County, Colorado. Both parties consent to
personal jurisdiction in the courts of Colorado located in Jefferson County,
Colorado.

11. Attorneys' Fees. The substantially prevailing party in any litigation or
other proceeding enforcing this Agreement shall be entitled to reimbursement of
all costs and expenses including, without limitation, reasonable attorneys' fees
at each trial and appellate levels.

12. Captions. The captions in this Agreement are included for purposes of
reference only and are not part of the text of this Agreement.

13. Counterparts. This agreement may be executed in several counterparts all of
which shall constitute one and the same Agreement.

<PAGE>

     EXECUTED as of the date first above written.

Employee:

---------------------------------------------
Janice A. Jones                             Date

CHARTWELL INTERNATIONAL, INC., a Nevada corporation

By:
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         Alice Gluckman

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         Corporate Secretary

                                                                (Corporate Seal)EXHIBIT 10.1

              RECKSON ASSOCIATES REALTY CORP. AMENDED AND RESTATED
                             1995 STOCK OPTION PLAN

                        AS AMENDED THROUGH MARCH 5, 2001

ARTICLE 1. GENERAL

         1.1. Purpose. The purpose of the Reckson Associates Realty Corp. 1995
Stock Option Plan (the "Plan") is to provide for certain officers, directors and
key employees, as defined in Section 1.3, of Reckson Associates Realty Corp.
(the "Company") and certain of its Affiliates (as defined below) an equity-based
incentive to maintain and enhance the performance and profitability of the
Company. It is the further purpose of this Plan to permit the granting of awards
that will constitute performance based compensation for certain executive
officers, as described in Section 162(m) of the Internal Revenue Code of 1986,
as amended (the "Code"), and regulations promulgated thereunder.

         1.2. Administration.

         (a) The Plan shall be administered by the Compensation Committee (the
"Committee") of the Board of Directors of the Company (the "Board"), which
Committee shall consist of two or more directors, or by the Board. It is
intended that the directors appointed to serve on the Committee shall be
"non-employee directors" (within the meaning of Rule 16b-3 promulgated under the
Securities Exchange Act of 1934 (the "Act")) and "outside directors" (within the
meaning of Code Section 162(m)); however, the mere fact that a Committee member
shall fail to qualify under either of these requirements shall not invalidate
any award made by the Committee which award is otherwise validly made under the
Plan. The members of the Committee shall be appointed by, and may be changed at
any time and from time to time in the discretion of, the Board.

         (b) The Committee shall have the authority (i) to exercise all of the
powers granted to it under the Plan, (ii) to construe, interpret and implement
the Plan and any Plan Agreements (as defined below) executed pursuant to the
Plan, (iii) to prescribe, amend and rescind rules relating to the Plan, (iv) to
make any determination necessary or advisable in administering the Plan, (v) to
correct any defect, supply any omission and reconcile any inconsistency in the
Plan and (vi) to delegate to Donald J. Rechler and Scott H. Rechler (the "Proper
Officers") its authority to grant awards under the Plan to key employees,
excluding those employees who are executive officers ("Non-Executive Officers"),
provided that (a) the aggregate number of shares of Common Stock granted to any
Non-Executive Officer during any calendar year shall not exceed 100,000 shares
and (b) the Proper Officers shall report quarterly to the Committee regarding
the material terms of awards granted to any Non-Executive Officers. The
Committee shall have no authority to interpret or administer Article 5 of the
Plan or to take any action with respect to any awards thereunder.

         (c) The determination of the Committee on all matters relating to the
Plan or any Plan Agreement shall be conclusive.

<PAGE>

         (d) No member of the Committee shall be liable for any action or
determination made in good faith with respect to the Plan or any award
hereunder.

         (e) Notwithstanding anything to the contrary contained herein, the
Board may, in its sole discretion, at any time and from time to time, resolve to
administer the Plan, in which case, the term Committee as used herein shall be
deemed to mean the Board.

         1.3. Persons Eligible for Awards. Awards under the Plan may be made to
such officers, directors and key employees ("key personnel") of the Company or
its Affiliates as the Committee shall from time to time in its sole discretion
select. No member of the Board who is not an officer or employee of the Company
or an Affiliate (an "Independent Director") shall be eligible to receive any
Awards under the Plan, except for non-qualified stock options granted
automatically under the provisions of Article 5 of the Plan.

         1.4. Types of Awards Under Plan.

         (a) Awards may be made under the Plan in the form of (i) stock options
("options"), (ii) restricted stock awards and (iii) unrestricted stock awards,
in lieu of cash compensation, all as more fully set forth in Articles 2 and 3.

         (b) Options granted under the Plan may be either (i) "nonqualified"
stock options ("NQSOs") or (ii) options intended to qualify for incentive stock
option treatment described in Code Section 422 ("ISOs"). Grants of options made
under the Plan may also be made in lieu of cash fees otherwise payable to
Directors of the Company or cash bonuses payable to employees of the Company or
any Affiliate.

         (c) All options when granted are intended to be NQSOs, unless the
applicable Plan Agreement explicitly states that the option is intended to be an
ISO. If an option is intended to be an ISO, and if for any reason such option
(or any portion thereof) shall not qualify as an ISO, then, to the extent of
such nonqualification, such option (or portion) shall be regarded as a NQSO
appropriately granted under the Plan provided that such option (or portion)
otherwise meets the Plan's requirements relating to NQSOs.

         1.5. Shares Available for Awards.

         (a) Subject to Section 4.5 (relating to adjustments upon changes in
capitalization), as of any date the total number of shares of Common Stock with
respect to which awards may be granted under the Plan, shall equal the excess
(if any) of 750,000 shares of Common Stock, over (i) the number of shares of
Common Stock subject to outstanding awards, (ii) the number of shares in respect
of which options have been exercised, or grants of restricted or unrestricted
Common Stock have been made pursuant to the Plan, and (iii) the number of shares
issued subject to forfeiture restrictions which have lapsed.

         In accordance with (and without limitation upon) the preceding
sentence, awards may be granted in respect of the following shares of Common
Stock: shares covered by previously-granted awards that have expired, terminated
or been cancelled for any reason whatsoever (other than by reason of exercise or
vesting).

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         (b) In any year, a person eligible for awards under the Plan may not be
granted options under the Plan covering a total of more than 75,000 shares of
Common Stock.

         (c) Shares of Common Stock that shall be subject to issuance pursuant
to the Plan shall be authorized and unissued or treasury shares of Common Stock,
or shares of Common Stock purchased on the open market or from shareholders of
the Company for such purpose.

         (d) Without limiting the generality of the foregoing, the Committee
may, with the grantee's consent, cancel any award under the Plan and issue a new
award in substitution therefor upon such terms as the Committee may in its sole
discretion determine, provided that the substituted award shall satisfy all
applicable Plan requirements as of the date such new award is made.

         1.6. Definitions of Certain Terms.

         (a) The term "Affiliate" as used herein means Reckson Operating
Partnership, L.P., Reckson FS Limited Partnership, RANY Management Group, Inc.,
Reckson Finance, Inc., Reckson Management Group, Inc. and Reckson Construction
Group, Inc., and any person or entity as subsequently approved by the Board
which, at the time of reference, directly, or indirectly through one or more
intermediaries, controls, is controlled by, or is under common control with, the
Company.

         (b) The term "Cause" shall mean a finding by the Committee that the
recipient of an award under the Plan has (i) acted with gross negligence or
willful misconduct in connection with the performance of his material duties to
the Company or its Affiliates; (ii) defaulted in the performance of his material
duties to the Company or its Affiliates and has not corrected such action within
15 days of receipt of written notice thereof; (iii) willfully acted against the
best interests of the Company or its Affiliates, which act has had a material
and adverse impact on the financial affairs of the Company or its Affiliates; or
(iv) been convicted of a felony or committed a material act of common law fraud
against the Company, its Affiliates or their employees and such act or
conviction has, or the Committee reasonably determines will have, a material
adverse effect on the interests of the Company or its Affiliates.

         (c) The term "Common Stock" as used herein means the shares of Class A
common stock of the Company as constituted on the effective date of the Plan,
and any other shares into which such common stock shall thereafter be changed by
reason of a recapitalization, merger, consolidation, split-up, combination,
exchange of shares or the like.

         (d) The "fair market value" (or "FMV") as of any date and in respect of
any share of Common Stock shall be:

                    (i) if the Common Stock is listed for trading on the New
                  York Stock Exchange, the closing price, regular way, of the
                  Common Stock as reported on the New York Stock Exchange
                  Composite Tape, or if no such reported sale of the Common
                  Stock shall have occurred on such date, on the next preceding
                  date on which there was such a reported sale; or

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<PAGE>

                  (ii) the Common Stock is not so listed but is listed on
                  another national securities exchange or authorized for
                  quotation on the National Association of Securities Dealers
                  Inc.'s NASDAQ National Market System ("NASDAQ/NMS"), the
                  closing price, regular way, of the Common Stock on such
                  exchange or NASDAQ/NMS, as the case may be, on which the
                  largest number of shares of Common Stock have been traded in
                  the aggregate on the preceding twenty trading days, or if no
                  such reported sale of the Stock shall have occurred on such
                  date on such exchange or NASDAQ/NMS, as the case may be, on
                  the preceding date on which there was such a reported sale on
                  such exchange or NASDAQ/NMS, as the case may be; or

                  (iii) if the Stock is not listed for trading on a national
                  securities exchange or authorized for quotation on NASDAQ/NMS,
                  the average of the closing bid and asked prices as reported by
                  the National Association of Securities Dealers Automated
                  Quotation System ("NASDAQ") or, if no such prices shall have
                  been so reported for such date, on the next preceding date for
                  which such prices were so reported.

         1.7. Agreements Evidencing Awards.

         (a) Options and restricted stock awards granted under the Plan shall be
evidenced by written agreements. Any such written agreements shall (i) contain
such provisions not inconsistent with the terms of the Plan as the Committee may
in its sole discretion deem necessary or desirable and (ii) be referred to
herein as "Plan Agreements."

         (b) Each Plan Agreement shall set forth the number of shares of Common
Stock subject to the award granted thereby.

         (c) Each Plan Agreement with respect to the granting of an option shall
set forth the amount (the "option exercise price") payable by the grantee to the
Company in connection with the exercise of the option evidenced thereby. The
option exercise price per share shall not be less than 100% of the fair market
value of a share of Common Stock on the date the option is granted.

ARTICLE 2.  STOCK OPTIONS

         2.1. Option Awards.

         (a) Grant of Stock Options. The Committee may grant options to purchase
shares of Common Stock in such amounts and subject to such terms and conditions
as the Committee shall from time to time in its sole discretion determine,
subject to the terms of the Plan.

         (b) Dividend Equivalent Rights. To the extent expressly provided by the
Committee at the time of the grant, each NQSO granted under this Section 2.1
shall also generate Dividend Equivalent Rights ("DERs"), which shall entitle the
grantee to receive an additional share of Common Stock for each DER received
upon the exercise of the NQSO, at no additional cost, based on the formula set
forth herein. As of the last business day of each calendar quarter, the amount
of dividends paid by the Company on each share of Common Stock with respect to

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<PAGE>

that quarter shall be divided by the FMV per share to determine the actual
number of DERs accruing on each share subject to the NQSO. Such amount of DERs
shall be multiplied by the number of shares covered by the NQSO to determine the
number of DERs which accrued during such quarter. The provisions of this Section
2.1(b) shall not be amended more than once every six months other than to
comport with changes in applicable law.

         For example. Assume that a grantee holds a NQSO to purchase 600 shares
of Common Stock. Further assume that the dividend per share for the first
quarter was $0.10, and that the FMV per share on the last business day of the
quarter was $20. Therefore, .005 DER would accrue per share for that quarter and
such grantee would receive three DERs for that quarter (600 X .005). For
purposes of determining how many DERs would accrue during the second quarter,
the NQSO would be considered to be for 603 shares of Common Stock.

         2.2. Exercisability of Options. Subject to the other provisions of the
Plan:

         (a) Exercisability Determined by Plan Agreement. Each Plan Agreement
shall set forth the period during which and the conditions subject to which the
option shall be exercisable (including, but not limited to vesting of such
options), as determined by the Committee in its discretion.

         (b) Partial Exercise Permitted. Unless the applicable Plan Agreement
otherwise provides, an option granted under the Plan may be exercised from time
to time as to all or part of the full number of shares for which such option is
then exercisable, in which event the DERs relating to the portion of the option
being exercised shall also be exercised.

         (c) Notice of Exercise; Exercise Date.

                  (i) An option shall be exercisable by the filing of a written
                  notice of exercise with the Company, on such form and in such
                  manner as the Committee shall in its sole discretion
                  prescribe, and by payment in accordance with Section 2.4.

                  (ii) Unless the applicable Plan Agreement otherwise provides,
                  or the Committee in its sole discretion otherwise determines,
                  the date of exercise of an option shall be the date the
                  Company receives such written notice of exercise and payment.

         2.3. Limitation on Exercise. Notwithstanding any other provision of the
Plan, no Plan Agreement shall permit an ISO to be exercisable more than 10 years
after the date of grant.

         2.4. Payment of Option Price.

         (a) Tender Due Upon Notice of Exercise. Unless the applicable Plan
Agreement otherwise provides or the Committee in its sole discretion otherwise
determines, any written notice of exercise of an option shall be accompanied by
payment of the full purchase price for the shares being purchased.

         (b) Manner of Payment. Payment of the option exercise price shall be
made in any combination of the following:

                                       5
<PAGE>

                  (i) by certified or official bank check payable to the Company
                  (or the equivalent thereof acceptable to the Committee);

                  (ii) by personal check (subject to collection), which may in
                  the Committee's discretion be deemed conditional;

                  (iii) with the consent of the Committee in its sole
                  discretion, by delivery of previously acquired shares of
                  Common Stock owned by the grantee for at least six months
                  having a fair market value (determined as of the option
                  exercise date) equal to the portion of the option exercise
                  price being paid thereby, provided that the Committee may
                  require the grantee to furnish an opinion of counsel
                  acceptable to the Committee to the effect that such delivery
                  would not result in the grantee incurring any liability under
                  Section 16(b) of the Act and does not require any Consent (as
                  defined in Section 4.2); and

                   (iv) with the consent of the Committee in its sole
                  discretion, by the full recourse promissory note and agreement
                  of the grantee providing for payment with interest on the
                  unpaid balance accruing at a rate not less than that needed to
                  avoid the imputation of income under Code Section 7872 and
                  upon such terms and conditions (including the security, if
                  any, therefor) as the Committee may determine; and

                  (v) by withholding shares of Common Stock from the shares
                  otherwise issuable pursuant to the exercise.

         (c) Cashless Exercise. Payment in accordance with Section 2.4(b) may be
deemed to be satisfied, if and to the extent provided in the applicable Plan
Agreement, by delivery to the Company of an assignment of a sufficient amount of
the proceeds from the sale of Common Stock acquired upon exercise to pay for all
of the Common Stock acquired upon exercise and an authorization to the broker or
selling agent to pay that amount to the Company, which sale shall be made at the
grantee's direction at the time of exercise, provided that the Committee may
require the grantee to furnish an opinion of counsel acceptable to the Committee
to the effect that such delivery would not result in the grantee incurring any
liability under Section 16 of the Act and does not require any Consent (as
defined in Section 4.2).

         (d) Issuance of Shares. As soon as practicable after receipt of full
payment, the Company shall, subject to the provisions of Section 4.2, deliver to
the grantee one or more certificates for the shares of Common Stock so
purchased, which certificates may bear such legends as the Company may deem
appropriate concerning restrictions on the disposition of the shares in
accordance with applicable securities laws, rules and regulations or otherwise.

         2.5. Default Rules Concerning Termination of Employment.

         Subject to the other provisions of the Plan and unless the applicable
Plan Agreement otherwise provides:

                                       6
<PAGE>

         (a) General Rule. All options granted to a grantee shall terminate upon
the grantee's termination of employment for any reason except to the extent
post-employment exercise of the option is permitted in accordance with this
Section 2.5.

         (b) Termination for Cause. All unexercised or unvested options granted
to a grantee shall terminate and expire on the day a grantee's employment is
terminated for Cause.

         (c) Regular Termination; Leave of Absence. If the grantee's employment
terminates for any reason other than as provided in subsection (b), (d) or (f)
of this Section 2.5, any awards granted to such grantee which were exercisable
immediately prior to such termination of employment may be exercised, and any
awards subject to vesting may continue to vest, until the earlier of either: (i)
90 days after the grantee's termination of employment and (ii) the date on which
such options terminate or expire in accordance with the provisions of the Plan
(other than this Section 2.5) and the Plan Agreement; provided that the
Committee may, in its sole discretion, determine such other period for exercise
in the case of a grantee whose employment terminates solely because the
grantee's employer ceases to be an Affiliate or the grantee transfers employment
with the Company's consent to a purchaser of a business disposed of by the
Company. The Committee may, in its sole discretion, determine (i) whether any
leave of absence (including short-term or long-term disability or medical leave)
shall constitute a termination of employment for purposes of the Plan and (ii)
the effect, if any, of any such leave on outstanding awards under the Plan.

         (d) Retirement. If a grantee's employment terminates by reason of
retirement (i.e., the voluntary termination of employee by a grantee after
attaining the age of 55), the options exercisable by the grantee immediately
prior to the grantee's retirement shall be exercisable by the grantee until the
earlier of (i) 36 months after the grantee's retirement and (ii) the date on
which such options terminate or expire in accordance with the provisions of the
Plan (other than this Section 2.5) and the Plan Agreement.

         (e) Death After Termination. If a grantee's employment terminates in
the manner described in subsections (c) or (d) of this Section 2.5 and the
grantee dies within the period for exercise provided for therein, the options
exercisable by the grantee immediately prior to the grantee's death shall be
exercisable by the personal representative of the grantee's estate or by the
person to whom such options pass under the grantee's will (or, if applicable,
pursuant to the laws of descent and distribution) until the earlier of (i) 12
months after the grantee's death and (ii) the date on which such options
terminate or expire in accordance with the provisions of subsections (c) or (d)
of this Section 2.5.

         (f) Death Before Termination. If a grantee dies while employed by the
Company or any Affiliate, all options granted to the grantee but not exercised
before the death of the grantee, whether or not exercisable by the grantee
before the grantee's death, shall immediately become and be exercisable by the
personal representative of the grantee's estate or by the person to whom such
options pass under the grantee's will (or, if applicable, pursuant to the laws
of descent and distribution) until the earlier of (i) 12 months after the
grantee's death and (ii) the date on which such options terminate or expire in
accordance with the provisions of the Plan (other than this Section 2.5) and the
Plan Agreement.

                                       7
<PAGE>

         2.6. Special ISO Requirements. In order for a grantee to receive
special tax treatment with respect to stock acquired under an option intended to
be an ISO, the grantee of such option must be, at all times during the period
beginning on the date of grant and ending on the day three months before the
date of exercise of such option, an employee of the Company or any of the
Company's parent or subsidiary corporations (within the meaning of Code Section
424), or of a corporation or a parent or subsidiary corporation of such
corporation issuing or assuming a stock option in a transaction to which Code
Section 424(a) applies. If an option granted under the Plan is intended to be an
ISO, and if the grantee, at the time of grant, owns stock possessing more than
10% of the total combined voting power of all classes of stock of the grantee's
employer corporation or of its parent or subsidiary corporation, then (i) the
option exercise price per share shall in no event be less than 110% of the fair
market value of the Common Stock on the date of such grant and (ii) such option
shall not be exercisable after the expiration of five years after the date such
option is granted.

ARTICLE 3. RESTRICTED STOCK AND UNRESTRICTED STOCK AWARDS

         3.1. Restricted Stock Awards.

         (a) Grant of Awards. The Committee may grant restricted stock awards,
alone or in tandem with other awards, under the Plan in such amounts and subject
to such terms and conditions as the Committee shall from time to time in its
sole discretion determine; provided, however, that the grant of any such
restricted stock awards may be made in lieu of, or in tandem with other, cash
compensation and bonuses. The vesting of a restricted stock award granted under
the Plan may be conditioned upon the completion of a specified period of
employment with the Company or any Affiliate, upon the attainment of specified
performance goals, and/or upon such other criteria as the Committee may
determine in its sole discretion.

         (b) Payment. Each Plan Agreement with respect to a restricted stock
award shall set forth the amount (if any) to be paid by the grantee with respect
to such award. If a grantee makes any payment for a restricted stock award which
does not vest, appropriate payment may be made to the grantee following the
forfeiture of such award on such terms and conditions as the Committee may
determine. The Committee shall have the authority to make or authorize loans to
finance, or to otherwise accommodate the financing of, the acquisition or
exercise of a restricted stock award.

         (c) Forfeiture upon Termination of Employment. Unless the applicable
Plan Agreement otherwise provides or the Committee otherwise determines, (i) if
a grantee's employment terminates for any reason (including death) before all of
his restricted stock awards have vested, such awards shall terminate and expire
upon such termination of employment, and (ii) in the event any condition to the
vesting of restricted stock awards is not satisfied within the period of time
permitted therefor, such unvested shares shall be returned to the Company.

         (d) Issuance of Shares. The Committee may provide that one or more
certificates representing restricted stock awards shall be registered in the
grantee's name and bear an appropriate legend specifying that such shares are
not transferable and are subject to the terms and conditions of the Plan and the
applicable Plan Agreement, or that such certificate or certificates shall be
held in escrow by the Company on behalf of the grantee until such shares

                                       8
<PAGE>

vest or are forfeited, all on such terms and conditions as the Committee may
determine. Unless the applicable Plan Agreement otherwise provides, no share of
restricted stock may be assigned, transferred, otherwise encumbered or disposed
of by the grantee until such share has vested in accordance with the terms of
such award. Subject to the provisions of Section 4.2, as soon as practicable
after any restricted stock award shall vest, the Company shall issue or reissue
to the grantee (or to the grantee's designated beneficiary in the event of the
grantee's death) one or more certificates for the Common Stock represented by
such restricted stock award.

         (e) Grantees' Rights Regarding Restricted Stock. Unless the applicable
Plan Agreement otherwise provides: (i) a grantee may vote and receive dividends
on restricted stock awarded under the Plan; and (ii) any stock received as a
distribution with respect to a restricted stock award shall be subject to the
same restrictions as such restricted stock.

         3.2. Unrestricted Stock. The Committee may issue unrestricted stock
under the Plan, alone or in tandem with other awards, in such amounts and
subject to such terms and conditions as the Committee shall from time to time in
its sole discretion determine; provided, however, that the grant of any such
unrestricted stock awards may be made in lieu of, or in tandem with other, cash
compensation and bonuses. The Committee shall have the authority to make or
authorize loans to finance, or to otherwise accommodate the financing of, the
acquisition or exercise of an unrestricted stock award.

ARTICLE 4. MISCELLANEOUS

         4.1. Amendment of the Plan; Modification of Awards.

         (a) Plan Amendments. The Board may, without stockholder approval, at
any time and from time to time suspend, discontinue or amend the Plan in any
respect whatsoever, except that no such amendment shall impair any rights under
any award theretofore made under the Plan without the consent of the grantee of
such award. Furthermore, except as and to the extent otherwise permitted by
Section 4.5 or 4.11, no such amendment shall, without stockholder approval:

                  (i) materially increase the benefits accruing to grantees
                  under the Plan;

                  (ii) increase the maximum number of shares which may be made
                  subject to awards to an individual as options in any year;

                  (iii) materially increase, beyond the amounts set forth in
                  Section 1.5, the number of shares of Common Stock in respect
                  of which awards may be issued under the Plan;

                  (iv) materially modify the designation in Section 1.3 of the
                  class of persons eligible to receive awards under the Plan;

                  (v) provide for the grant of stock options having an option
                  exercise price per share of Common Stock less than 100% of the
                  fair market value of a share of Common Stock on the date of
                  grant; or

                                       9
<PAGE>

                  (vi) extend the term of the Plan beyond the period set forth
                  in Section 4.13.

         (b) Award Modifications. Subject to the terms and conditions of the
Plan (including Section 4.1(a)), the Committee may amend outstanding Plan
Agreements with such grantee, including, without limitation, any amendment which
would (i) accelerate the time or times at which an award may vest or become
exercisable and/or (ii) extend the scheduled termination or expiration date of
the award, provided, however, that no modification having a material adverse
effect upon the interest of a grantee in an award shall be made without the
consent of such grantee.

         4.2. Restrictions.

         (a) Consent Requirements. If the Committee shall at any time determine
that any Consent (as hereinafter defined) is necessary or desirable as a
condition of, or in connection with, the granting of any award under the Plan,
the acquisition, issuance or purchase of shares or other rights hereunder or the
taking of any other action hereunder (each such action being hereinafter
referred to as a "Plan Action"), then such Plan Action shall not be taken, in
whole or in part, unless and until such Consent shall have been effected or
obtained to the full satisfaction of the Committee. Without limiting the
generality of the foregoing, the Committee shall be entitled to determine not to
make any payment whatsoever until Consent has been given if (i) the Committee
may make any payment under the Plan in cash, Common Stock or both, and (ii) the
Committee determines that Consent is necessary or desirable as a condition of,
or in connection with, payment in any one or more of such forms.

         (b) Consent Defined. The term "Consent" as used herein with respect to
any Plan Action means (i) any and all listings, registrations or qualifications
in respect thereof upon any securities exchange or other self-regulatory
organization or under any federal, state or local law, rule or regulation, (ii)
the expiration, elimination or satisfaction of any prohibitions, restrictions or
limitations under any federal, state or local law, rule or regulation or the
rules of any securities exchange or other self-regulatory organization, (iii)
any and all written agreements and representations by the grantee with respect
to the disposition of shares, or with respect to any other matter, which the
Committee shall deem necessary or desirable to comply with the terms of any such
listing, registration or qualification or to obtain an exemption from the
requirement that any such listing, qualification or registration be made, and
(iv) any and all consents, clearances and approvals in respect of a Plan Action
by any governmental or other regulatory bodies or any parties to any loan
agreements or other contractual obligations of the Company or any Affiliate.

         4.3. Nontransferability. No award granted to any grantee under the Plan
or under any Plan Agreement shall be assignable or transferable by the grantee
other than by will or by the laws of descent and distribution. During the
lifetime of the grantee, all rights with respect to any award granted to the
grantee under the Plan or under any Plan Agreement shall be exercisable only by
the grantee.

         4.4. Withholding Taxes.

         (a) Whenever under the Plan shares of Common Stock are to be delivered
pursuant to an award, the Committee may require as a condition of delivery that
the grantee remit an amount

                                       10
<PAGE>

sufficient to satisfy all federal, state and other governmental withholding tax
requirements related thereto. Whenever cash is to be paid under the Plan, the
Company may, as a condition of its payment, deduct therefrom, or from any salary
or other payments due to the grantee, an amount sufficient to satisfy all
federal, state and other governmental withholding tax requirements related
thereto or to the delivery of any shares of Common Stock under the Plan.

         (b) Without limiting the generality of the foregoing, (i) a grantee may
elect to satisfy all or part of the foregoing withholding requirements by
delivery of unrestricted shares of Common Stock owned by the grantee for at
least six months (or such other period as the Committee may determine) having a
fair market value (determined as of the date of such delivery by the grantee)
equal to all or part of the amount to be so withheld, provided that the
Committee may require, as a condition of accepting any such delivery, the
grantee to furnish an opinion of counsel acceptable to the Committee to the
effect that such delivery would not result in the grantee incurring any
liability under Section 16(b) of the Act and (ii) the Committee may permit any
such delivery to be made by withholding shares of Common Stock from the shares
otherwise issuable pursuant to the award giving rise to the tax withholding
obligation (in which event the date of delivery shall be deemed the date such
award was exercised).

         4.5. Adjustments Upon Changes in Capitalization. If and to the extent
specified by the Committee, the number of shares of Common Stock which may be
issued pursuant to awards under the Plan, the maximum number of options which
may be granted to any one person in any year, the number of shares of Common
Stock subject to awards, the option exercise price of options theretofore
granted under the Plan, and the amount payable by a grantee in respect of an
award, shall be appropriately adjusted (as the Committee may determine) for any
change in the number of issued shares of Common Stock resulting from the
subdivision or combination of shares of Common Stock or other capital
adjustments, or the payment of a stock dividend after the effective date of the
Plan, or other change in such shares of Common Stock effected without receipt of
consideration by the Company; provided that any awards covering fractional
shares of Common Stock resulting from any such adjustment shall be eliminated
and provided further, that each ISO granted under the Plan shall not be adjusted
in a manner that causes such option to fail to continue to qualify as an ISO
within the meaning of Code Section 422. Adjustments under this Section shall be
made by the Committee, whose determination as to what adjustments shall be made,
and the extent thereof, shall be final, binding and conclusive.

         4.6. Right of Discharge Reserved. Nothing in the Plan or in any Plan
Agreement shall confer upon any person the right to continue in the employment
of the Company or an Affiliate or affect any right which the Company or an
Affiliate may have to terminate the employment of such person.

         4.7. No Rights as a Stockholder. No grantee or other person shall have
any of the rights of a stockholder of the Company with respect to shares subject
to an award until the issuance of a stock certificate to him for such shares.
Except as otherwise provided in Section 4.5, no adjustment shall be made for
dividends, distributions or other rights (whether ordinary or extraordinary, and
whether in cash, securities or other property) for which the record date is
prior to the date such stock certificate is issued. In the case of a grantee of
an award which has not yet vested, the grantee shall have the rights of a
stockholder of the Company if and only to the extent provided in the applicable
Plan Agreement.

                                       11
<PAGE>

         4.8. Nature of Payments.

         (a) Any and all awards or payments hereunder shall be granted, issued,
delivered or paid, as the case may be, in consideration of services performed
for the Company or for its Affiliates by the grantee.

         (b) No such awards and payments shall be considered special incentive
payments to the grantee or, unless otherwise determined by the Committee, be
taken into account in computing the grantee's salary or compensation for the
purposes of determining any benefits under (i) any pension, retirement, life
insurance or other benefit plan of the Company or any Affiliate or (ii) any
agreement between the Company or any Affiliate and the grantee.

         (c) By accepting an award under the Plan, the grantee shall thereby
waive any claim to continued exercisability or vesting of an award or to damages
or severance entitlement related to non-continuation of the award beyond the
period provided herein or in the applicable Plan Agreement, notwithstanding any
contrary provision in any written employment contract with the grantee, whether
any such contract is executed before or after the grant date of the award.

         4.9. Non-Uniform Determinations. The Committee's determinations under
the Plan need not be uniform and may be made by it selectively among persons who
receive, or are eligible to receive, awards under the Plan (whether or not such
persons are similarly situated). Without limiting the generality of the
foregoing, the Committee shall be entitled, among other things, to make
non-uniform and selective determinations, and to enter into non-uniform and
selective Plan Agreements, as to (a) the persons to receive awards under the
Plan, (b) the terms and provisions of awards under the Plan, and (c) the
treatment of leaves of absence pursuant to Section 2.7(c).

         4.10. Other Payments or Awards. Nothing contained in the Plan shall be
deemed in any way to limit or restrict the Company, any Affiliate or the
Committee from making any award or payment to any person under any other plan,
arrangement or understanding, whether now existing or hereafter in effect.

         4.11. Reorganization.

         (a) In the event that the Company is merged or consolidated with
another corporation and, whether or not the Company shall be the surviving
corporation, there shall be any change in the shares of Common Stock by reason
of such merger or consolidation, or in the event that all or substantially all
of the assets of the Company are acquired by another person, or in the event of
a reorganization or liquidation of the Company (each such event being
hereinafter referred to as a "Reorganization Event") or in the event that the
Board shall propose that the Company enter into a Reorganization Event, then the
Committee may in its discretion, by written notice to a grantee, provide that
his options will be terminated unless exercised within 30 days (or such longer
period as the Committee shall determine in its sole discretion) after the date
of such notice; provided that if, and to the extent that, the Committee takes
such action with respect to the grantee's options not yet exercisable, the
Committee shall also accelerate the dates upon which such options shall be
exercisable. The Committee also may in its discretion by written notice to a
grantee provide that all or some of the restrictions on any of the grantee's
awards may lapse in

                                       12
<PAGE>

the event of a Reorganization Event upon such terms and conditions as the
Committee may determine.

         (b) Whenever deemed appropriate by the Committee, the actions referred
to in Section 4.11(a) may be made conditional upon the consummation of the
applicable Reorganization Event.

         4.12. Section Headings. The section headings contained herein are for
the purposes of convenience only and
are not intended to define or limit the contents of said sections.

         4.13. Effective Date and Term of Plan.

         (a) The Plan shall be deemed adopted and become effective upon the
approval thereof by the shareholders of the Company.

         (b) The Plan shall terminate 10 years after the earlier of the date on
which it becomes effective or is approved by shareholders, and no awards shall
thereafter be made under the Plan. Notwithstanding the foregoing, all awards
made under the Plan prior to such termination date shall remain in effect until
such awards have been satisfied or terminated in accordance with the terms and
provisions of the Plan and the applicable Plan Agreement.

         4.14. Governing Law. The Plan shall be governed by the laws of the
State of New York applicable to agreements made and to be performed entirely
within such state.

ARTICLE 5.  STOCK OPTIONS GRANTED TO INDEPENDENT DIRECTORS

         5.1. Automatic Grant of Options. Each Independent Director appointed or
elected for the first time shall automatically be granted (under this Plan or
another Company stock option plan) a NQSO to purchase 7,500 shares of Common
Stock on his date of appointment or election. Each Independent Director who is
serving as Director of the Company on the fifth business day after each annual
meeting of shareholders shall, on such day, automatically be granted (under this
Plan or another Company stock option plan) NQSOs to acquire 6,250 shares of
Common Stock; provided, however, that an Independent Director who is appointed
or elected for the first time shall not be eligible to receive NQSOs pursuant to
this sentence for the year of his initial appointment or election. The exercise
price per share for the Common Stock covered by a NQSO granted pursuant to this
Section 5.1 shall be equal to the FMV of the Common Stock on the date the NQSO
is granted.

         5.2. Exercise; Termination; Non-Transferability

         (a) All NQSOs granted under this Article 5 shall be immediately
exercisable. No NQSO issued under this Article 5 shall be exercisable after the
expiration of ten years from the date upon which such NQSO is granted.

         (b) The rights of an Independent Director in a NQSO granted under this
Article 5 shall terminate twelve months after such Director ceases to be a
Director of the Company or the specified expiration date, if earlier; provided,
however, that such rights shall terminate immediately on the date on which an
Independent Director ceases to be a Director by reason of

                                       13
<PAGE>

termination of his directorship on account of any act of (i) fraud or
intentional misrepresentation or (ii) embezzlement, misappropriation or
conversion of assets or opportunities of the Company or any Affiliate.

         (c) No NQSO granted under this Article 5 shall be transferable by the
grantee otherwise than by will or by the laws of descent and distribution, and
such grantee shall be exercisable during the grantee's lifetime only by the
grantee. Any NQSO granted to an Independent Director and outstanding on the date
of his death may be exercised by the legal representative or legatee of the
grantee for the period of twelve months from the date of death or until the
expiration of the stated term of the option, if earlier.

         (d) NQSOs granted under this Article 5 may be exercised only by written
notice to the Company specifying the number of shares to be purchased. Payment
of the full purchase price of the shares to be purchased may be made by
certified or official bank check payable to the Company. A grantee shall have
the rights of a stockholder only as to shares acquired upon the exercise of a
NQSO and not as to unexercised NQSOs.

         5.3. Adjustments Upon Changes in Capitalization. The number of shares
of Common Stock subject to awards and the option exercise price of NQSOs
theretofore granted under this Article 5, and the amount payable by a grantee in
respect of an award, shall be appropriately adjusted for any change in the
number of issued shares of Common Stock resulting from the subdivision or
combination of shares of Common Stock or other capital adjustments, or the
payment of a stock dividend after the effective date of the Plan, or other
change in such shares of Common Stock effected without receipt of consideration
by the Company; provided that any awards covering fractional shares of Common
Stock resulting from any such adjustment shall be eliminated.

         5.4 Limited to Independent Directors. The provisions of this Article 5
shall apply only to NQSOs granted or to be granted to Independent Directors,
shall be interpreted as if this Article 5 constituted a separate plan of the
Company and shall not be deemed to modify, limit or otherwise apply to any other
provision of this Plan or to any NQSO issued under this Plan to a participant
who is not an Independent Director of the Company. To the extent inconsistent
with the provisions of any other Section of this Plan, the provisions of this
Article 5 shall govern the rights and obligations of the Company and Independent
Directors respecting NQSOs granted or to be granted to Independent Directors.
The provisions of this Article 5 shall not be amended more than once every six
months other than to comport with changes in applicable law.

                                       14

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