Document:

<PAGE>

                                  Exhibit 10.2

                 AMENDMENT NO. 1 TO, AND WAIVER WITH RESPECT TO,
              AMENDED AND RESTATED WAREHOUSE AND SECURITY AGREEMENT

     This A AMENDMENT NO. 1 TO, AND WAIVER WITH RESPECT TO, AMENDED AND RESTATED
WAREHOUSE AND SECURITY AGREEMENT (this "Amendment and Waiver")is made as of July
22, 2002, to that certain Amended and Restated Warehouse and Security Agreement,
dated as of March 15, 2002, among TFC Warehouse Corporation I (the "Borrower"),
a Delaware corporation, The Finance Company (in its capacity as initial
purchaser of Contracts from Approved Dealers, "TFC" and, in its capacity as
servicer of the Contracts, the "Servicer"), a Virginia corporation, Wells Fargo
Bank Minnesota, National Association (the "Collateral Agent"), a national
banking association, and Westside Funding Corporation (the "Lender"), a Delaware
corporation, as modified pursuant to the waiver letter agreement dated March 15,
2002 by and among the Borrower, TFC, the Collateral Agent and the Lender, and
consented to by Royal Indemnity Company (the "Insurer"), as insurer (the "Loan
Agreement").

                              W I T N E S S E T H:

     WHEREAS, the Borrower, TFC, the Collateral Agent and the Lender have
entered into the Loan Agreement; and

     WHEREAS, the Borrower, TFC, the Collateral Agent and the Lender wish to
amend the Loan Agreement as provided herein; and

     WHEREAS, the Borrower, TFC, the Collateral Agent and the Lender wish to
waive a certain Event of Default and corresponding Funding Termination Event
under the Loan Agreement, as provided herein;

     NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

     Section 1.01. Defined Terms. For purposes of this Amendment and Waiver,
unless the context clearly requires otherwise, all capitalized terms which are
used but not otherwise defined herein shall have the respective meanings
ascribed to such terms in the Loan Agreement.

     Section 1.02. The Amendments.

          (a)  $6,000,000 Monthly Limit on Advances.

               (i)  Section 2.01(a) of the Loan Agreement is hereby amended,
effective the date hereof, by adding the following sentence to the end of such
Section:

     Notwithstanding anything to the contrary contained herein, the aggregate
     amount of Advances made during any calendar month shall not exceed
     $6,000,000.

               (ii) Section 2.03(a) of the Loan Agreement is hereby amended,
effective the date hereof, by adding the following sentence to the end of such
Section:

<PAGE>

     Notwithstanding anything to the contrary contained herein, the Borrower
shall not request an aggregate amount of Advances in excess of $6,000,000 during
any calendar month.

          (b)  Deletion of Provision Concerning Extension of Expected Facility
Termination Date. Section 2.11 of the Loan Agreement is hereby amended,
effective the date hereof, by replacing such Section with the following:

     Section 2.11 [Deleted].

In addition, all other references in the Loan Agreement to any extension of the
Expected Facility Termination Date are hereby deleted. Without limitation of the
foregoing, the listing in the Table of Contents to the Loan Agreement of the
subheading for Section 2.11 as "Extension of Expected Facility Termination Date"
shall be replaced with a listing therein of the subheading for such Section as
"[Deleted]".

          (c)  Covenant of TFC with Respect to Additional Warehouse Financing.
Section 7.02(d) of the Loan Agreement is hereby amended, effective the date
hereof, by replacing clauses (C)and (D) of such Section with the following:

     (C)the aggregate amount of commitments from such Warehouse Lenders is not
     less than $40,000,000 and (D) no event or circumstance has occurred and is
     continuing which would prevent TFC from obtaining funding under such
     warehouse lines of credit in an amount of up to $40,000,000.

          (d)  Event of Default with Respect to Failure to Maintain Credit
Lines. Section 8.01(k) of the Loan Agreement is hereby amended, effective the
date hereof, by replacing clauses (C) and (D) of such Section with the
following:

     (C)the aggregate amount of commitments from such Warehouse Lenders is not
     less than $40,000,000 and (D) no event or circumstance has occurred and is
     continuing which would prevent TFC from obtaining funding under such
     warehouse lines of credit in an amount of up to $40,000,000.

          (e)  Event of Default with Respect to $6,000,000 Monthly Advance
Limit. The Loan Agreement is hereby amended, effective as of the date hereof, by
adding the following Section 8.01(cc):

     Section 8.01(cc). Exceeding Monthly Limit on Advances. The Borrower shall
     have requested and received Advances in an aggregate amount in excess of
     $6,000,000 during any calendar month.

          (f)  Definition of "Expected Facility Termination Date". Appendix A to
the Loan Agreement is hereby amended, effective the date hereof, by replacing
the definition of the term "Expected Facility Termination Date" with the
following definition:

     "Expected Facility Termination Date" means July 1, 2003.

          (g)  Definition of "Maximum Facility Amount". Appendix A to the Loan
Agreement is hereby amended, effective the date hereof, by replacing the
definition of the term "Maximum Facility Amount" with the following definition:

<PAGE>

     "Maximum Facility Amount" means $40,000,000.

          (h)  Advance Rate Matrix. Exhibit A to the Loan Agreement is hereby
amended, effective the date hereof, by replacing the Advance Rate Matrix set
forth therein with the following Advance Rate Matrix:

                               ADVANCE RATE MATRIX

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------
   Weighted Average       Weighted Average Portfolio Remaining Term (in Months)
   Portfolio Spread            34 to 39            40 to 45          46 or more
--------------------------------------------------------------------------------------
<S>                       <C>                   <C>                 <C>
      1.9% to 2.8%             64.65%              64.35%              64.05%
      2.9% to 3.8%             65.65%              65.45%              65.25%
      3.9% to 4.8%             66.65%              66.55%              66.45%
      4.9% to 5.8%             67.65%              67.65%              67.75%
      5.9% to 6.8%             68.65%              68.85%              68.95%
      6.9% to 7.8%             69.65%              69.95%              70.25%
      7.9% to 8.8%             70.65%              71.15%              71.55%
      8.9% to 9.8%             71.75%              72.25%              72.75%
      9.9% to 10.8%            72.75%              73.00%              73.00%
     10.9% or higher           73.00%              73.00%              73.00%
--------------------------------------------------------------------------------------
</TABLE>

     Section 1.03. Waiver of Events of Default and Funding Termination Events.

          (a)  Subject to the conditions set forth in Section 1.04 of this
Amendment and Waiver, the excess of (x) the Net Realized Loss Rate with respect
to any Monthly Static Pool, as of any Determination Date occurring prior to the
date of this Amendment and Waiver over (y) the Net Loss Trigger Percentage with
respect to such Monthly Static Pool for such Determination Date shall not
constitute the occurrence or continuation of a Trigger Event and shall not
result in any increase of the Required Reserve Account Percentage from 2.0% to
5.0%, notwithstanding the definitions of "Required Reserve Account Percentage
and "Trigger Event" in Appendix A to the Loan Agreement.

          (b)  Subject to the conditions set forth in Section 1.04 of this
Amendment and Waiver, notwithstanding Exhibit P to the Loan Agreement, the
following matrix shall be the Net Realized Loss Matrix during the 30-day period
commencing on the date of this Amendment and Waiver:

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------
                            Net Realized Loss Matrix

      Monthly                        Trigger                       Event of
       Period                         Event                        Default
       ------                         -----                        -------
<S>                             <C>                          <C>
        1-3                            0.10                          0.15
        4-6                            1.25                          1.35
        7-9                            4.15                          4.45
       10-12                           9.35                         10.01
       13-15                          13.77                         14.87
       16-18                          17.83                         19.26
       19-21                          21.37                         23.08
       22-24                          23.06                         24.91
       25-27                          24.75                         26.75
       28-30                          26.00                         28.10
       31-33                          26.40                         28.50
       34-36                          26.95                         29.10
--------------------------------------------------------------------------------------
</TABLE>

<PAGE>

              (c) Subject to the conditions set forth in Section 1.04 of this
Amendment and Waiver, neither (i)the failure of TFC at any time prior to the
date of this Amendment and Waiver to maintain warehouse lines of credit with
respect to which the aggregate amount of commitments from the related Warehouse
Lenders is not less than $50,000,000 nor (ii) the occurrence and continuation,
at any time prior to the date of this Amendment and Waiver, of any event or
circumstance that would prevent TFC from obtaining funding under such warehouse
lines of credit in an amount of up to $50,000,000 shall constitute, or shall
have constituted at any time prior to the date of this Amendment and Waiver, an
Event of Default or a Funding Termination Event, notwithstanding Section 8.01(k)
of the Loan Agreement; provided, however, that nothing contained in this Section
1.03(c)shall constitute a waiver of any Event of Default under any provision of
the Loan Agreement other than Section 8.01(k) thereof.

              (d) Subject to the conditions set forth in Section 1.04 of this
Amendment and Waiver, the excess of (x) the Net Realized Loss Rate with respect
to any Monthly Static Pool, as of any date of determination prior to the date of
this Amendment and Waiver, over (y) the Net Loss Default Percentage with respect
to such Monthly Static Pool for such date of determination shall not constitute,
and shall not have constituted at any time prior to the date of this Amendment
and Waiver, an Event of Default or a Funding Termination Event, notwithstanding
Section 8.01(m)of the Loan Agreement; provided, however, that the waiver set
forth in this Section 1.03(d) shall be effective only during the 30-day period
commencing on the date of this Amendment and Waiver.

       Section 1.04. Conditions Precedent to Waivers. The Insurer's consent to
the waivers set forth in Section 1.03 of this Amendment and Waiver is subject to
the satisfaction of each of the following conditions precedent: (i) no breach of
any representation and warranty set forth in Article VI of the Loan Agreement
shall have occurred and be continuing; (ii) no representation set forth in
Article VI of the Loan Agreement shall contain any statement that is false or,
in the context in which such statement is made, misleading; (iii) all
information provided to Insurer and Lender in connection with the negotiation
and execution of this Amendment and Waiver shall have been, at the time such
information was so provided, and shall be, as of the date of this Amendment and
Waiver, accurate in all material respects; and (iv) Borrower and TFC have
disclosed to Lender and Insurer all facts, events and occurrences prior to the
date of this Amendment and Waiver that constituted an Event of Default or a
Funding Termination Event.

       Section 1.05. Acknowledgement of Agreement to Negotiate Amendments to
Definition. By its consent to this Amendment and Waiver, the Insurer
acknowledges that it has agreed under certain circumstances to consider, during
the 30-day period commencing on the date of this Amendment and Waiver, certain
potential amendments to the definition of "Trigger Event" in Appendix A to the
Loan Agreement that may be proposed by Borrower and amendments during such
30-day period if (i) the results of a certain audit of TFC currently being
conducted by the Insurer are satisfactory to the Insurer in its sole discretion
and (ii) there are no developments during such 30-day period, including with
respect to the performances of the Contracts or the financial condition of TFC
or the Borrower, that the Insurer reasonably determines in its sole discretion
to be adverse to the interests of the Insurer. Notwithstanding the Insurer's
agreement to consider such potential amendments during such period under such
circumstances, the Insurer has not made any representation, express or implied,
that it will consent to any potential amendment to the definition of "Trigger
Event" in Appendix A to the Loan Agreement.

<PAGE>

       Section 1.06.  Effect of Amendment and Waiver. Upon effectiveness of this
Amendment and Waiver, the Loan Agreement shall be, and be deemed to be, modified
and amended in accordance herewith and the respective rights, limitations,
obligations, duties, liabilities and immunities of the Borrower, TFC, the
Lender, the Collateral Agent and each third party beneficiary hereof shall
hereafter be determined, exercised and enforced subject in all respects to such
modifications and amendments, and all the terms and conditions of this Amendment
and Waiver shall be and be deemed to be part of the terms and conditions of the
Loan Agreement for any and all purposes. All other terms and conditions of the
Loan Agreement shall not be modified or amended and shall remain in full force
and effect.

       Section 1.07.  Construction of Amendment and Waiver in Relation to
Original Agreement. In case of any inconsistency between any provisions of this
Amendment and Waiver and any provisions of the Loan Agreement prior to this
Amendment and Waiver, the provisions of this Amendment and Waiver shall control.

       Section 1.08.  Governing Law. This Amendment and Waiver shall be governed
by, and construed in accordance with, the laws of the State of New York, without
regard to the conflicts of law principles thereof.

       Section 1.09.  Severability of Provisions. If one or more of the
provisions of this Amendment and Waiver shall be for any reason whatever held
invalid or unenforceable, such provision(s) shall be deemed severable from the
remaining covenants, agreements and provisions of this Amendment and Waiver and
shall in no way affect the validity or enforceability of such remaining
provisions or the rights of any parties hereto or third party beneficiaries
hereof.

       Section 1.10.  Binding Effect. The provisions of this Amendment and
Waiver shall be binding upon and inure to the benefit of the parties hereto and
third party beneficiaries hereof and their respective successors and permitted
assigns.

       Section 1.11.  Counterparts. This Amendment and Waiver may be executed in
any number of counterparts, each of which shall be an original and all of which
taken together shall constitute but one and the same instrument.

         [The remainder of this page has been intentionally left blank.]

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Amendment and
Waiver to be duly executed by their respective officers thereunto duly
authorized, as of the day first above written.

                                     WESTSIDE FUNDING CORPORATION

                                     By: Westdeutsche Landesbank Girozentrale,
                                         New York Branch, as Administrator

                                     By: /s/ Jeffrey W. Kramer
                                         -------------------------------
                                         Name:  Jeffrey W. Kramer
                                         Title: Executive Director
                                                Asset Securitization
                                                and Structured Capital

                                     By: /s/ Brian Statfeld
                                         -------------------------------
                                         Name:  Brian Statfeld
                                         Title: Executive Director
                                                Asset Securitization
                                                and Structured Capital

                                     TFC WAREHOUSE CORPORATION I

                                     By: /s/ Ronald G. Tray
                                         -------------------------------
                                         Name:  Ronald G. Tray
                                         Title: President

                                     THE FINANCE COMPANY

                                     By: /s/ Ronald G. Tray
                                         -------------------------------
                                         Name:  Ronald G. Tray
                                         Title: President

                                     WELLS FARGO BANK MINNESOTA,
                                     NATIONAL ASSOCIATION

                                     By: /s/ Eileen R. O'Connor
                                         -------------------------------
                                         Name:  Eileen R. O'Connor
                                         Title: Assistant Vice President

Consented to as of the date first above:

ROYAL INDEMNITY COMPANY

By: /s/ William J. Hibberd
    ------------------------------------
    Name:  William J. Hibberd
    Title: Authorized Representative<PAGE>

                                                                    EXHIBIT 4(a)

                            GENOME THERAPEUTICS CORP.
                            -------------------------
                          EMPLOYEE STOCK PURCHASE PLAN
                          ----------------------------
                       (As amended through June 25, 2002)

SECTION 1.  PURPOSE OF PLAN
            ---------------

     The Genome Therapeutics Corp. Employee Stock Purchase Plan, as amended June
25, 2002 (the "Plan"), is intended to provide a method by which eligible
employees of Genome Therapeutics Corp. (the "Company") may use voluntary,
systematic payroll deductions to purchase shares of Common Stock, $.10 par value
of the Company (such Common Stock being hereafter referred to as "Stock") and
thereby acquire an interest in the future of the Company. The purpose of the
Plan is to assist the Company in retaining high quality employees and to expand
employee stock ownership. The Plan is intended to qualify under Section 423 of
the Internal Revenue Code of 1986, as amended (the "Code"), and shall be
construed accordingly.

SECTION 2.  OPTIONS TO PURCHASE STOCK
            -------------------------

     Under the Plan, there is available an aggregate of not more than 500,000
shares of Stock (subject to adjustment as provided in Section 15) for sale
pursuant to the exercise of options ("Options") granted under the Plan to
employees of the Company ("Employees") who meet the eligibility requirements set
forth in Section 3 hereof ("Eligible Employees"). The Stock to be delivered upon
exercise of Options under the Plan may be either shares of authorized but
unissued Stock or shares of reacquired Stock, as the Board of Directors of the
Company (the "Board of Directors") may determine.

SECTION 3.  ELIGIBLE EMPLOYEES
            ------------------

     Except as otherwise provided below, each Employee who, on the first day of
an Option Period (as defined below) following his or her employment by the
Company, is scheduled to work at least 20 hours per week and is expected to be
employed by Company for at least five months per year will be eligible to
participate in the Plan

     (a) Any Employee who immediately after the grant of an Option would own (or
pursuant to Section 423(b)(3) of the Code would be deemed to own) stock
possessing 5% or more of the total combined voting power or value of all classes
of stock of the Company, as defined in Section 424 of the Code, will not be
eligible to receive an Option to purchase Stock pursuant to the Plan.

     (b) No Employee will be granted an Option under the Plan that would permit
his or her rights to purchase shares of stock under all employee stock purchase
plans of the Company to accrue at a rate which exceeds $25,000 in fair market
value of such stock (determined at the time the Option is granted) for each
calendar year during which any such Option granted to such Employee is
outstanding at any time, as provided in Section 423 of the Code.

                                      6

<PAGE>

SECTION 4.  METHOD OF PARTICIPATION
            -----------------------

     The first stock option period (the "Initial Option Period") for which
Options may be granted hereunder shall commence on March 1, 2001 and end on
March 30, 2001. After the Initial Option Period, the periods for which Options
may be granted hereunder shall be from January 1 to March 30 and from July 1 to
December 31 of each year. Such periods, together with the Initial Option Period,
shall be referred to as the "Option Periods." Each person who will be an
Eligible Employee on the first day of any Option Period may elect to participate
in the Plan by executing and delivering, at least 15 days prior to such day, a
payroll deduction authorization in accordance with Section 5. Such Employee will
thereby become a participant ("Participant") on the first day of such Option
Period and will remain a Participant until his or her participation is
terminated as provided in the Plan.

SECTION 5.  PAYROLL DEDUCTION
            -----------------

     The payroll deduction authorization will request withholding at a rate (in
whole percentages) of not less than 1% nor more than 15% from the Participant's
Compensation by means of substantially equal payroll deductions over the Option
Period from payroll periods ending in the Option Period. For purposes of the
Plan, "Compensation" means all compensation paid to the Participant by the
Company and currently includable in his or her income, including bonuses,
commissions and other amounts includible in the definition of compensation
provided in the Treasury Regulations promulgated under Section 415 of the Code,
plus any amount that would be so included but for the fact that it was
contributed to a qualified plan pursuant to an elective deferral under Section
401(k) of the Code, but not including payments under stock option plans and
other employee benefit plans or any other amounts excluded from the definition
of compensation provided in the Treasury Regulations under Section 415 of the
Code. Once per quarter, a Participant may increase or decrease the withholding
rate of his or her payroll deduction authorization by written notice delivered
to the Company at least 15 days prior to the first day of the Option Period as
to which the change is to be effective. All amounts withheld in accordance with
a Participant's payroll deduction authorization will be credited to a
withholding account for such Participant.

SECTION 6.  GRANT OF OPTIONS
            ----------------

     Each person who is a Participant on the first day of an Option Period will
as of such day be granted an Option for such Period. Such Option will be for the
number of whole shares of Stock to be determined by dividing (i) the balance in
the Participant's withholding account on the last day of the Option Period, by
(ii) the purchase price per share of the Stock determined under Section 7;
provided, that the maximum number of shares that may be purchased by any
Participant for the Initial Option Period shall be that number of shares which
had a fair market value of $8,333.33 on the first day of the Initial Option
Period; provided, further, that the maximum number of shares that may be
purchased by any Participant for any subsequent Option Period shall be that
number of shares which had a fair market value of $12,500 on the first day of
the Option Period. The Company will reduce, on a substantially proportionate
basis, the number of shares of Stock purchasable by each Participant upon
exercise of his or her Option for an Option Period in the event that the number
of shares then available under the Plan is insufficient.

                                       7

<PAGE>

SECTION 7.  PURCHASE PRICE
            --------------

     The purchase price of Stock issued pursuant to the exercise of an Option
will be 85% of the fair market value of the Stock at (a) the time of grant of
the Option or (b) the time at which the Option is deemed exercised, whichever is
less. Fair market value will mean the Closing Price of the Stock. The "Closing
Price" of the Stock on any business day will be the last sale price, regular
way, with respect to such Stock, or, in case no such sale takes place on such
day, the average of the closing bid and asked prices, regular way, with respect
to such Stock, in either case as reported on the NASDAQ Stock Market ("NASDAQ");
or, if such Stock is not listed or admitted to trading on NASDAQ, as reported on
such other principal national securities exchange on which such Stock is listed
or admitted to trading.

SECTION 8.  EXERCISE OF OPTIONS
            -------------------

     If any Employee is a Participant in the Plan on the last business day of an
Option Period, he or she will be deemed to have exercised the Option granted to
him or her for that period. Upon such exercise, the Company will apply the
balance of the Participant's withholding account to the purchase of the number
of whole shares of Stock determined under Section 6 and as soon as practicable
thereafter will issue and deliver certificates for said shares to the
Participant and will return to him or her the balance, if any, of his or her
withholding account in excess of the total purchase price of the shares so
issued; provided, that if the balance left in the account consists solely of an
amount equal to the value of a fractional share it will be retained in the
Account and carried over to the next Period. No fractional shares will be issued
hereunder.

     Notwithstanding anything herein to the contrary, the Company's obligation
to issue and deliver shares of Stock under the Plan will be subject to the
approval required of any governmental authority in connection with the
authorization, issuance, sale or transfer of said shares, to any requirements of
any national securities exchange applicable thereto, and to compliance by the
Company with other applicable legal requirements in effect from time to time.

SECTION 9.  INTEREST
            --------

     No interest will be payable on withholding accounts.

SECTION 10.  CANCELLATION AND WITHDRAWAL
             ---------------------------

     A Participant who holds an Option under the Plan may at any time prior to
exercise thereof under Section 8 cancel all or any part of his or her Options by
written notice delivered to the Company. Upon such cancellation, the balance in
the Participant's withholding account will be returned to the Participant.

     A Participant may terminate his or her payroll deduction authorization as
of any date by written notice delivered to the Company and will thereby cease to
be a Participant as of such date. Any Participant who voluntarily terminates his
or her payroll deduction authorization prior to the last business day of an
option period will be deemed to have canceled his or her Option.

                                       8

<PAGE>

SECTION 11.  TERMINATION OF EMPLOYMENT
             -------------------------

     Upon the termination of a Participant's service with the Company by reason
of retirement or disability (permanent or temporary) or upon a Participant's
leave of absence with the Company, such Participant, by written notice to the
Company, may request that the balance of his or her withholding account be
applied to the exercise of his or her Option as of the last day of the Option
Period pursuant to Section 8 of the Plan.

     In the absence of such a written notice to the Company, subject to Section
12, upon the termination of a Participant's service with the Company for any
reason, he or she will cease to be a Participant, and any Option held by him or
her under the Plan will be deemed canceled, the balance of his or her
withholding account will be returned, and he or she will have no further rights
under the Plan.

SECTION 12.  DEATH OF PARTICIPANT
             --------------------

     A Participant may file a written designation of beneficiary specifying who
is to receive any stock and/or cash credited to the Participant under the Plan
in the event of the Participant's death, which designation will also provide for
the election by the Participant of either (i) cancellation of the Participant's
Option upon his or her death, as provided in Section 10 or (ii) application as
of the last day of the Option Period of the balance of the deceased
Participant's withholding account at the time of death to the exercise of his or
her Option, pursuant to Section 8 of the Plan. In the absence of a valid
election otherwise, the death of a Participant will be deemed to effect a
cancellation of his or her Option. A designation of beneficiary and election may
be changed by the Participant at any time, by written notice. In the event of
the death of a Participant and receipt by the Company of proof of the identity
and existence at the Participant's death of a beneficiary validly designated by
him or her under the Plan, the Company will deliver such stock and/or cash to
which the beneficiary is entitled under the Plan to such beneficiary. In the
event of the death of a Participant and in the absence of a beneficiary validly
designated under the Plan who is living at the time of such Participant's death,
the Company will deliver such stock and/or cash to the executor or administrator
of the estate of the Participant, if the Company is able to identify such
executor or administrator. If the Company is unable to identify such
administrator or executor, the Company in its discretion may deliver such stock
and/or cash to the spouse or to any one or more dependents of a Participant as
the Company may determine. No beneficiary will, prior to the death of the
Participant by whom he or she has been designated, acquire any interest in the
stock or cash credited to the Participant under the Plan.

SECTION 13.  EQUAL RIGHTS; PARTICIPANT'S RIGHTS NOT TRANSFERABLE
             ---------------------------------------------------

     All Participants granted Options under the Plan will have the same rights
and privileges, and each Participant's rights and privileges under any Option
granted under the Plan will be exercisable during his or her lifetime only by
him or her, and will not be sold, pledged, assigned, or transferred in any
manner. In the event any Participant violates the terms of this Section, any
Options held by him or her may be terminated by the Company and upon return to
the Participant of the balance of his or her withholding account, all his or her
rights under the Plan will terminate.

                                       9

<PAGE>

SECTION 14.  EMPLOYMENT RIGHTS
             -----------------

     Nothing contained in the provisions of the Plan will be construed to give
to any Employee the right to be retained in the employ of the Company or to
interfere with the right of the Company to discharge any Employee at any time.

SECTION 15.  CHANGE IN CAPITALIZATION
             ------------------------

     In the event of any change in the outstanding Stock of the Company by
reason of a stock dividend, split-up, recapitalization, merger, consolidation,
reorganization, or other capital change, the aggregate number of shares
available under the Plan, the number of shares under Options granted but not
exercised, the maximum number of shares purchasable under an Option, and the
Option price will be appropriately adjusted.

SECTION 16.  ADMINISTRATION OF PLAN
             ----------------------

     The Plan will be administered by the Board of Directors, which will have
the right to determine any questions which may arise regarding the
interpretation and application of the provisions of the Plan and to make,
administer, and interpret such rules and regulations as it will deem necessary
or advisable.

SECTION 17.  AMENDMENT AND TERMINATION OF PLAN
             ---------------------------------

     The Company reserves the right at any time or times to amend the Plan to
any extent and in any manner it may deem advisable by vote of the Board of
Directors; provided, however, that any amendment relating to the aggregate
number of shares which may be issued under the Plan (other than an adjustment
provided for in Section 15) will have no force or effect unless it will have
been approved by the shareholders within twelve months before or after its
adoption.

     The Plan may be suspended or terminated at any time by the Board of
Directors, but no such suspension or termination will adversely affect the
rights and privileges of holders of the outstanding Options. The Plan will
terminate in any case when all or substantially all of the Stock reserved for
the purposes of the Plan has been purchased.

SECTION 18.  APPROVAL OF SHAREHOLDERS
             ------------------------

     The Plan will be subject to the approval of the shareholders of the Company
secured within twelve months before or after the date the Plan is adopted by the
Board of Directors.

SECTION 19.  EFFECTIVE DATE
             --------------

     The effective date of the Plan shall be March 1, 2001.

                                       10

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