Document:

THIRD AMENDMENT TO
                      AMENDED AND RESTATED CREDIT AGREEMENT

         This THIRD  AMENDMENT TO AMENDED AND  RESTATED  CREDIT  AGREEMENT  (the
"Third  Amendment")  is dated as of May 31,  2000,  and is  between S & K FAMOUS
BRANDS,   INC.   (the   "Company")   and   FIRST   UNION   NATIONAL   BANK,   as
successor in interest to Signet Bank/Virginia (the "Bank").

                                    Recitals
                                    --------

         A. The Company and the Bank entered into an Amended and Restated Credit
Agreement  dated as of May 31, 1997,  which was amended by (i) a First Amendment
to Amended and Restated  Credit  Agreement dated April 2, 1999 and (ii) a Second
Amendment  to  Amended  and  Restated  Credit  Agreement  dated  July  30,  1999
(collectively, the "Loan Agreement").

         B. The Company  has  requested  that the Bank  further  modify  certain
provisions  in the Loan  Agreement,  and subject to the terms and  conditions of
this Third Amendment, the Bank is willing to modify the Loan Agreement.

                                    Agreement
                                    ---------

         NOW, THEREFORE,  for and in consideration of the terms,  conditions and
agreements herein, the Bank and the Company hereby agree as follows:

         1. Definitions.  Except as provided  specifically  herein,  all defined
terms used  herein  shall have the  meanings  ascribed to such terms in the Loan
Agreement.

         2. Amendment. The Loan Agreement is hereby amended as follows:

            (a) The  definition of  "Termination  Date" in Section 1.1 is hereby
            amended and restated to read as follows:

            "Termination  Date"  means May 31,  2003,  unless such date has been
            extended pursuant to Section 2.13.

            (b) The definition of  "Commitment" in Section 1.1 is hereby amended
            and restated to read as follows:

            "Commitment"  means  $20,000,000.00,  as such  amount may be reduced
            from time to time pursuant to Sections 2.12.

            (c)  Section  8.1 shall be  amended  by adding  the  following:  The
            Company is in default or an event of default  has been  declared  in
            connection  with the Company's  obligations to Suntrust Bank,  f/k/a
            Crestar Bank, its  successor(s)  in interest  and/or any replacement
            lender(s)/financial institution(s) for the same.

            (d)  Article VI shall be amended  by adding the  following:  Section
            6.12  Additional  Banks/Loan  Agreements.  The  Company  maintains a
            $20,000,000  revolving  credit  facility with Suntrust  Bank,  f/k/a
            Crestar Bank. The terms and conditions of that loan agreement do not
            conflict  with those in the Loan  Agreement,  and all loan  proceeds
            from any loans with Suntrust  Bank,  f/k/a  Crestar Bank  (excluding
            loans under the Bond Purchase  Agreement  dated December 1, 1983, as
            amended),  are  used  for  working  capital  and  general  corporate
            purposes.  During  the terms of this  Loan  Agreement,  the  Company
            agrees that it shall not enter into any other loan agreements, which
            would cause its Indebtedness to exceed $40,000,000  (excluding loans
            under  the Bond  Purchase  Agreement  dated  December  1,  1983,  as
            amended).

            (e) Section 7.5 is hereby  amended and  restated to read as follows:
            Ratio of  Consolidated  Unsubordinated  Liabilities to  Consolidated
            Effective  Tangible Net Worth.  The Company will maintain (a) at the
            end of each fiscal  quarter a ratio of  Consolidated  Unsubordinated
            Liabilities  to  Consolidated  Effective  Tangible  Net Worth of not
            greater  than  1.25 to 1 and (b) at the  end of each  fiscal  year a
            ratio of  Consolidated  Unsubordinated  Liabilities to  Consolidated
            Effective Tangible Net Worth of not greater than .85 to 1.

            (f) Section 8.1(e) is hereby deleted in its entirety.

         3.  Limited  Amendment.  Except as  provided  expressly  in this  Third
Amendment,  each  term,  condition  or  agreement  in the Loan  Agreement  shall
continue to be fully enforceable in accordance with its terms.

         WITNESS the following authorized signatures of the parties hereto:

                                         Company:
                                         --------

                                         S & K FAMOUS BRANDS, INC.

                                         By: /s/ Robert E. Knowles
                                              Robert E. Knowles
                                              Executive Vice President and
                                              Chief Financial Officer

                                         Bank:
                                         -----

                                         FIRST UNION NATIONAL BANK
                                         (formerly, Signet Bank/Virginia)

                                         By:/s/ D. J. Mathews
                                              Donald J. Mathews
                                              VicePresident

<PAGE>
                   SECOND AMENDED AND RESTATED REVOLVING NOTE

$20,000,000.00                                                Richmond, Virginia
                                                                    May 31, 2000

         FOR VALUE  RECEIVED,  S&K FAMOUS BRANDS,  INC., a Virginia  corporation
(the  "Borrower"),  hereby  promises to pay to the order of FIRST UNION NATIONAL
BANK (the "Bank") at its main office, in Richmond,  Virginia, in lawful money of
the United  States,  the  principal  sum of Twenty  Million  and No/100  Dollars
($20,000,000.00) or the aggregate unpaid principal amount of all Revolving Loans
made by the Bank to the Borrower  pursuant to the Credit  Agreement  hereinafter
referred to, which ever is less (the "Principal"). The Borrower further promises
to pay  interest  on the first  day of each  month  from the date  hereof on the
amount  of the  Principal  from  time  to time  outstanding  during  the  period
beginning on the date hereof and continuing  until this Note is paid in full, at
the  rate or  rates  provided  for in the  Credit  Agreement.  Interest  payable
hereunder  shall be  calculated  on the basis of a 365day year and paid for the
actual number of days for which due.

         This Note is the Revolving Note issued  pursuant to the provisions of a
certain  Amended and Restated  Credit  Agreement  dated as of May 31,  1997,  as
amended  pursuant to a First Amendment to Amended and Restated Credit  Agreement
dated  April 2, 1999 and a Second  Amendment  to  Amended  and  Restated  Credit
Agreement  dated July 30, 1999 and a Third  Amendment  to Amended  and  Restated
Credit  Agreement  dated May 31,  2000,  as amended  further  from time to time,
between the Borrower and the Bank (herein,  as the same may from time to time be
amended,  referred to as the "Credit Agreement"),  and is issued in substitution
of (i) a certain  Revolving  Note dated July 15, 1996,  made by the Borrower and
payable  to the  order  of the  Bank and (ii) a  certain  Amended  and  Restated
Revolving Note dated May 31, 1997, made by the Borrower and payable to the order
of the Bank.

         This Note is subject to  prepayment,  in whole or in part, as specified
in the Credit Agreement. In case of Default, as defined in the Credit Agreement,
shall occur and be continuing, in the manner and with the effect provided in the
Credit  Agreement,  and the Borrower hereby agrees to pay all costs and expenses
in connection  therewith,  including reasonable  attorney's fees, as provided in
the Credit Agreement.

         The Borrower and all  guarantors,  endorsers and pledgors hereof hereby
waive presentment, demand, notice of dishonor, protest and all other demands and
notices in connection  with the delivery,  acceptance  and  performance  of this
Note.

         The Bank is  hereby  authorized  to  maintain  records  of the date and
amount of each  Revolving  Loan, the date and amount of any payment of principal
or interest and the principal balance then remaining unpaid hereon. The Borrower
hereby agrees that the amount so evidenced shall,  for all purposes,  constitute
prima facie evidence thereof.

         This Note shall be governed by and  interpreted in accordance  with the
laws of the Commonwealth of Virginia.

         IN WITNESS  WHEREOF,  the Borrower has caused its corporate  name to be
signed by its duly  authorized  officer  under seal as of the day and year first
above written.

                                    S&K FAMOUS BRANDS, INC.

                                    By:      /s/ Robert E. Knowles     [SEAL]
                                    Title:   Executive Vice President
                                             Chief Financial Officer<PAGE>

                                                                    EXHIBIT 10.1
                                C-QUENTIAL, INC.
                      2000 STOCK OPTION AND INCENTIVE PLAN

SECTION 1.  GENERAL PURPOSE OF THE PLAN; DEFINITIONS

     The name of the plan is the c-quential, Inc. 2000 Stock Option and
Incentive Plan (the "Plan").  The purpose of the Plan is to encourage and enable
the officers, employees, Independent Directors and other key persons (including
consultants) of c-quential, Inc. (the "Company") and its Subsidiaries upon whose
judgment, initiative and efforts the Company largely depends for the successful
conduct of its business to acquire a proprietary interest in the Company.  It is
anticipated that providing such persons with a direct stake in the Company's
welfare will assure a closer identification of their interests with those of the
Company, thereby stimulating their efforts on the Company's behalf and
strengthening their desire to remain with the Company.

     The following terms shall be defined as set forth below:

     "Act" means the Securities Act of 1933, as amended, and the rules and
regulations thereunder.

     "Administrator" is defined in Section 2(a).

     "Award" or "Awards," except where referring to a particular category of
grant under the Plan, shall include Incentive Stock Options, Non-Qualified Stock
Options, Stock Appreciation Rights, Deferred Stock Awards, Restricted Stock
Awards, Unrestricted Stock Awards, Performance Share Awards and Dividend
Equivalent Rights.

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

     "Change of Control" is defined in Section 17.

     "Code" means the Internal Revenue Code of 1986, as amended, and any
successor Code, and related rules, regulations and interpretations.

     "Committee" means the Committee of the Board referred to in Section 2.

     "Covered Employee" means an employee who is a "Covered Employee" within the
meaning of Section 162(m) of the Code.

     "Deferred Stock Award" means Awards granted pursuant to Section 8.

     "Dividend Equivalent Right" means Awards granted pursuant to Section 12.
<PAGE>

     "Effective Date" means the date on which the Plan is approved by
stockholders as set forth in Section 19.

     "Exchange Act" means the Securities Exchange Act of 1934, as amended, and
the rules and regulations thereunder.

     "Fair Market Value" of the Stock on any given date means the fair market
value of the Stock determined in good faith by the Administrator; provided,
however, that if the Stock is admitted to quotation on the National Association
of Securities Dealers Automated Quotation System ("Nasdaq"), Nasdaq National
System or a national securities exchange, the determination shall be made by
reference to market quotations.  If there are no market quotations for such
date, the determination shall be made by reference to the last date preceding
such date for which there are market quotations; provided further, however, that
if the date for which Fair Market Value is determined is the first day when
trading prices for the Stock are reported on Nasdaq or on a national securities
exchange, the Fair Market Value shall be the "Price to the Public" (or
equivalent) set forth on the cover page for the final prospectus relating to the
Company's Initial Public Offering.

     "Incentive Stock Option" means any Stock Option designated and qualified as
an "incentive stock option" as defined in Section 422 of the Code.

     "Independent Director" means a member of the Board who is not also an
employee of the Company or any Subsidiary.

     "Initial Public Offering" means the consummation of the first fully
underwritten, firm commitment public offering pursuant to an effective
registration statement under the Act, other than on Forms S-4 or S-8 or their
then equivalents, covering the offer and sale by the Company of its equity
securities, or such other event as a result of or following which the Stock
shall be publicly held.

     "Non-Qualified Stock Option" means any Stock Option that is not an
Incentive Stock Option.

     "Option" or "Stock Option" means any option to purchase shares of Stock
granted pursuant to Section 5.

     "Performance Share Award" means Awards granted pursuant to Section 10.

     "Performance Cycle" means one or more periods of time, which may be of
varying and overlapping durations, as the Administrator may select, over which
the attainment of one or more performance criteria will be measured for the
purpose of determining a grantee's right to and the payment of a Performance
Share Award, Restricted Stock Award or Deferred Stock Award.

                                       2
<PAGE>

     "Restricted Stock Award" means Awards granted pursuant to Section 7.

     "Stock" means Class A Common Stock, par value $.01 per share, of the
Company, subject to adjustments pursuant to Section 3.

     "Stock Appreciation Right" means any Award granted pursuant to Section 6.

     "Subsidiary" means any corporation or other entity (other than the Company)
in any unbroken chain of corporations or other entities beginning with the
Company if each of the corporations or entities (other than the last corporation
or entity in the unbroken chain) owns stock or other interests possessing fifty
percent (50%) or more of the economic interest or the total combined voting
power of all classes of stock or other interests in one of the other
corporations or entities in the chain.

     "Unrestricted Stock Award" means any Award granted pursuant to Section 9.

SECTION 2.  ADMINISTRATION OF PLAN; ADMINISTRATOR AUTHORITY TO SELECT GRANTEES
            AND DETERMINE AWARDS

     (a) Committee.  The Plan shall be administered by either the Board or a
committee of not less than two Independent Directors (in either case, the
"Administrator").

     (b) Powers of Administrator.  The Administrator shall have the power and
authority to grant Awards consistent with the terms of the Plan, including the
power and authority:

          (i) to select the individuals to whom Awards may from time to time be
     granted;

          (ii) to determine the time or times of grant, and the extent, if any,
     of Incentive Stock Options, Non-Qualified Stock Options, Stock Appreciation
     Rights, Restricted Stock Awards, Deferred Stock Awards, Unrestricted Stock
     Awards, Performance Share Awards and Dividend Equivalent Rights, or any
     combination of the foregoing, granted to any one or more grantees;

          (iii)  to determine the number of shares of Stock to be covered by any
     Award;

          (iv) to determine and modify from time to time the terms and
     conditions, including restrictions, not inconsistent with the terms of the
     Plan, of any Award, which terms and conditions may differ among individual
     Awards and grantees, and to approve the form of written instruments
     evidencing the Awards;

          (v) to accelerate at any time the exercisability or vesting of all or
     any portion of any Award;

                                       3
<PAGE>

          (vi) subject to the provisions of Section 5(a)(ii), to extend at any
     time the period in which Stock Options may be exercised;

          (vii)  to determine at any time whether, to what extent, and under
     what circumstances distribution or the receipt of Stock and other amounts
     payable with respect to an Award shall be deferred either automatically or
     at the election of the grantee and whether and to what extent the Company
     shall pay or credit amounts constituting interest (at rates determined by
     the Administrator) or dividends or deemed dividends on such deferrals; and

          (viii)  at any time to adopt, alter and repeal such rules, guidelines
     and practices for administration of the Plan and for its own acts and
     proceedings as it shall deem advisable; to interpret the terms and
     provisions of the Plan and any Award (including related written
     instruments); to make all determinations it deems advisable for the
     administration of the Plan; to decide all disputes arising in connection
     with the Plan; and to otherwise supervise the administration of the Plan.

     All decisions and interpretations of the Administrator shall be binding on
all persons, including the Company and Plan grantees.

     (c) Delegation of Authority to Grant Awards.  The Administrator, in its
discretion, may delegate to the Chief Executive Officer of the Company all or
part of the Administrator's authority and duties with respect to the granting of
Awards at Fair Market Value, to individuals who are not subject to the reporting
and other provisions of Section 16 of the Exchange Act or "covered employees"
within the meaning of Section 162(m) of the Code.  The Chief Executive Officer
shall be deemed a one-person committee of the Board.  Any such delegation by the
Administrator shall include a limitation as to the amount of Awards that may be
granted during the period of the delegation and shall contain guidelines as to
the determination of the exercise price of any Stock Option or Stock
Appreciation Right, the conversion ratio or price of other Awards and the
vesting criteria.  The Administrator may revoke or amend the terms of a
delegation at any time but such action shall not invalidate any prior actions of
the Administrator's delegate or delegates that were consistent with the terms of
the Plan.

     (d) Indemnification.  Neither the Board nor the Committee, nor any member
of either or any delegatee thereof, shall be liable for any act, omission,
interpretation, construction or determination made in good faith in connection
with the Plan, and the members of the Board and the Committee (and any delegatee
thereof) shall be entitled in all cases to indemnification and reimbursement by
the Company in respect of any claim, loss, damage or expense (including, without
limitation, reasonable attorneys' fees) arising or resulting therefrom to the
fullest extent permitted by law and/or under any directors' and officers'
liability insurance coverage which may be in effect from time to time.

                                       4
<PAGE>

SECTION 3.  STOCK ISSUABLE UNDER THE PLAN; MERGERS; SUBSTITUTION

     (a) Stock Issuable.  Subject to adjustment as provided in Section 3(b), the
maximum number of shares of Stock reserved and available for issuance under the
Plan shall be such aggregate number of shares of Stock as does not exceed
13,500,000.  For purposes of this limitation, the shares of Stock underlying any
Awards which are forfeited, canceled, reacquired by the Company, satisfied
without the issuance of Stock or otherwise terminated (other than by exercise)
shall be added back to the shares of Stock available for issuance under the
Plan.  Subject to such overall limitation, shares of Stock may be issued up to
such maximum number pursuant to any type or types of Award; provided, however,
that from and after the date grants under the Plan become subject to Section
162(m) of the Code, Stock Options or Stock Appreciation Rights with respect to
no more than 2,000,000 shares of Stock may be granted to any one individual
grantee during any one calendar year period.  The shares available for issuance
under the Plan may be authorized but unissued shares of Stock or shares of Stock
reacquired by the Company and held in its treasury.

     (b) Changes in Stock.  Subject to Section 3(c) hereof, if, as a result of
any reorganization, recapitalization, reclassification, stock dividend, stock
split, reverse stock split or other similar change in the Company's capital
stock, the outstanding shares of Stock are increased or decreased or are
exchanged for a different number or kind of shares or other securities of the
Company, or additional shares or new or different shares or other securities of
the Company or other non-cash assets are distributed with respect to such shares
of Stock or other securities, or, if, as a result of any merger or
consolidation, sale of all or substantially all of the assets of the Company,
the outstanding shares of Stock are converted into or exchanged for a different
number or kind of securities of the Company or any successor entity (or a parent
or subsidiary thereof), the Administrator shall make an appropriate or
proportionate adjustment in (i) the maximum number of shares reserved for
issuance under the Plan, (ii) the number of Stock Options or Stock Appreciation
Rights that can be granted to any one individual grantee and the maximum number
of shares that may be granted under a Performance-based Award, (iii) the number
and kind of shares or other securities subject to any then outstanding Awards
under the Plan, (iv) the repurchase price per share subject to each outstanding
Restricted Stock Award, and (v) the price for each share subject to any then
outstanding Stock Options and Stock Appreciation Rights under the Plan, without
changing the aggregate exercise price (i.e., the exercise price multiplied by
the number of Stock Options and Stock Appreciation Rights) as to which such
Stock Options and Stock Appreciation Rights remain exercisable.  The adjustment
by the Administrator shall be final, binding and conclusive.  No fractional
shares of Stock shall be issued under the Plan resulting from any such
adjustment, but the Administrator in its discretion may make a cash payment in
lieu of fractional shares.

     The Administrator may also adjust the number of shares subject to
outstanding Awards and the exercise price and the terms of outstanding Awards to
take into consideration material changes in accounting practices or principles,
extraordinary dividends, acquisitions or dispositions of stock or property or
any other event if it is determined by the Administrator that such adjustment is
appropriate to avoid distortion in the operation of the Plan, provided

                                       5
<PAGE>

that no such adjustment shall be made in the case of an Incentive Stock Option,
without the consent of the grantee, if it would constitute a modification,
extension or renewal of the Option within the meaning of Section 424(h) of the
Code.

     (c) Mergers and Other Transactions.  In the case of and subject to the
consummation of (i) the dissolution or liquidation of the Company, (ii) the sale
of all or substantially all of the assets of the Company on a consolidated basis
to an unrelated person or entity, (iii) a merger, reorganization or
consolidation in which the outstanding shares of Stock are converted into or
exchanged for a different kind of securities of the successor entity and the
holders of the Company's outstanding voting power immediately prior to such
transaction do not own a majority of the outstanding voting power of the
successor entity immediately upon completion of such transaction, or (iv) the
sale of all of the Stock of the Company to an unrelated person or entity (in
each case, a "Sale Event"), all other outstanding Awards shall become fully
vested, nonforfeitable and fully exercisable as of the effective time of the
Sale Event, except as the Administrator may have otherwise specified with
respect to particular Awards.  Upon the consummation of the Sale Event, the Plan
and all outstanding Awards granted hereunder shall terminate, unless provision
is made in connection with the Sale Event in the sole discretion of the parties
thereto for the assumption or continuation of Awards theretofore granted by the
successor entity, or the substitution of such Awards with new Awards of the
successor entity or parent thereof, with appropriate adjustment as to the number
and kind of shares and, if appropriate, the per share exercise prices, as such
parties shall agree (after taking into account any acceleration hereunder).  In
the event of such termination, each grantee shall be permitted, within a
specified period of time prior to the consummation of the Sale Event as
determined by the Administrator, to exercise all outstanding Options and Stock
Appreciation Rights held by such grantee, including those that will become
exercisable upon the consummation of the Sale Event; provided, however, that the
exercise of Options and Stock Appreciation Rights not exercisable prior to the
Sale Event shall be subject to the consummation of the Sale Event.

     Notwithstanding anything to the contrary in this Section 3.2(c), in the
event of a Sale Event pursuant to which holders of the Stock of the Company will
receive upon consummation thereof a cash payment for each share surrendered in
the Sale Event, the Company shall have the right, but not the obligation, to
make or provide for a cash payment to the grantees holding Options and Stock
Appreciation Rights, in exchange for the cancellation thereof, in an amount
equal to the difference between (A) the value as determined by the Administrator
of the consideration payable per share of Stock pursuant to the Sale Event (the
"Sale Price") times the number of shares of Stock subject to outstanding Options
and Stock Appreciation Rights (to the extent then exercisable at prices not in
excess of the Sale Price) and (B) the aggregate exercise price of all such
outstanding Options and Stock Appreciation Rights.

     (d) Substitute Awards.  The Administrator may grant Awards under the Plan
in substitution for stock and stock based awards held by employees, directors or
other key persons of another corporation in connection with the merger or
consolidation of the employing corporation with the Company or a Subsidiary or
the acquisition by the Company or

                                       6
<PAGE>

a Subsidiary of property or stock of the employing corporation. The
Administrator may direct that the substitute awards be granted on such terms and
conditions as the Administrator considers appropriate in the circumstances. Any
substitute Awards granted under the Plan shall not count against the share
limitation set forth in Section 3(a).

SECTION 4.  ELIGIBILITY

     Grantees under the Plan will be such full or part-time officers and other
employees, Independent Directors and key persons (including consultants and
prospective employees) of the Company and its Subsidiaries as are selected from
time to time by the Administrator in its sole discretion.

SECTION 5.  STOCK OPTIONS

     Any Stock Option granted under the Plan shall be in such form as the
Administrator may from time to time approve.

     Stock Options granted under the Plan may be either Incentive Stock Options
or Non-Qualified Stock Options.  Incentive Stock Options may be granted only to
employees of the Company or any Subsidiary that is a "subsidiary corporation"
within the meaning of Section 424(f) of the Code.  To the extent that any Option
does not qualify as an Incentive Stock Option, it shall be deemed a Non-
Qualified Stock Option.

     No Incentive Stock Option shall be granted under the Plan after the tenth
anniversary of the date the Plan is approved by the Board of Directors.

     (a) Grant of Stock Options.  The Administrator in its discretion may grant
Stock Options to eligible employees, Independent Directors and key persons of
the Company or any Subsidiary.  Stock Options granted pursuant to this Section
5(a) shall be subject to the following terms and conditions and shall contain
such additional terms and conditions, not inconsistent with the terms of the
Plan, as the Administrator shall deem desirable.  If the Administrator so
determines, Stock Options may be granted in lieu of cash compensation at the
optionee's election, subject to such terms and conditions as the Administrator
may establish.

          (i) Exercise Price.  The exercise price per share for the Stock
     covered by a Stock Option granted pursuant to this Section 5(a) shall be
     determined by the Administrator at the time of grant but shall not be less
     than one hundred percent (100%) of the Fair Market Value on the date of
     grant in the case of Incentive Stock Options.  If an employee owns or is
     deemed to own (by reason of the attribution rules of Section 424(d) of the
     Code) more than ten percent (10%) of the combined voting power of all
     classes of stock of the Company or any parent or subsidiary corporation and
     an Incentive Stock Option is granted to such employee, the option price of
     such Incentive Stock Option shall be not less than one hundred ten percent
     (110%) of the Fair Market Value on the grant date.

                                       7
<PAGE>

          (ii) Option Term.  The term of each Stock Option shall be fixed by the
     Administrator, but except as otherwise set forth in the Option Award
     Agreement, no Stock Option shall be exercisable more than ten (10) years
     after the date the Stock Option is granted.  If an employee owns or is
     deemed to own (by reason of the attribution rules of Section 424(d) of the
     Code) more than ten percent (10%) of the combined voting power of all
     classes of stock of the Company or any parent or subsidiary corporation and
     an Incentive Stock Option is granted to such employee, the term of such
     Stock Option shall be no more than five (5) years from the date of grant.

          (iii)  Exercisability; Rights of a Stockholder.  Stock Options shall
     become exercisable at such time or times, whether or not in installments,
     as shall be determined by the Administrator at or after the grant date.
     The Administrator may at any time accelerate the exercisability of all or
     any portion of any Stock Option.  An optionee shall have the rights of a
     stockholder only as to shares acquired upon the exercise of a Stock Option
     and not as to unexercised Stock Options.

          (iv) Method of Exercise.  Stock Options may be exercised in whole or
     in part, by giving written notice of exercise to the Company, specifying
     the number of shares to be purchased.  Payment of the purchase price may be
     made by one or more of the following methods to the extent provided in the
     Option Award agreement:

               (A) In cash, by certified or bank check or other instrument
          acceptable to the Administrator;

               (B) Through the delivery (or attestation to the ownership) of
          shares of Stock that have been purchased by the optionee on the open
          market or that have been beneficially owned by the optionee for at
          least six (6) months and are not then subject to restrictions under
          any Company plan.  Such surrendered shares shall be valued at Fair
          Market Value on the exercise date;

               (C) By the optionee delivering to the Company a properly executed
          exercise notice together with irrevocable instructions to a broker to
          promptly deliver to the Company cash or a check payable and acceptable
          to the Company for the purchase price; provided that in the event the
          optionee chooses to pay the purchase price as so provided, the
          optionee and the broker shall comply with such procedures and enter
          into such agreements of indemnity and other agreements as the
          Administrator shall prescribe as a condition of such payment
          procedure; or

               (D) By the optionee delivering to the Company a promissory note
          if the Board has expressly authorized the loan of funds to the
          optionee for the purpose of enabling or assisting the optionee to
          effect the exercise of his Stock Option; provided that at least so
          much of the exercise price as represents the par

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<PAGE>

          value of the Stock shall be paid other than with a promissory note if
          otherwise required by state law.

     Payment instruments will be received subject to collection.  The delivery
     of certificates representing the shares of Stock to be purchased pursuant
     to the exercise of a Stock Option will be contingent upon receipt from the
     optionee (or a purchaser acting in his stead in accordance with the
     provisions of the Stock Option) by the Company of the full purchase price
     for such shares and the fulfillment of any other requirements contained in
     the Option Award agreement or applicable provisions of laws.  In the event
     an optionee chooses to pay the purchase price by previously-owned shares of
     Stock through the attestation method, the number of shares of Stock
     transferred to the optionee upon the exercise of the Stock Option shall be
     net of the number of shares attested to.

          (v) Annual Limit on Incentive Stock Options.  To the extent required
     for "incentive stock option" treatment under Section 422 of the Code, the
     aggregate Fair Market Value (determined as of the time of grant) of the
     shares of Stock with respect to which Incentive Stock Options granted under
     this Plan and any other plan of the Company or its parent and subsidiary
     corporations become exercisable for the first time by an optionee during
     any calendar year shall not exceed $100,000.  To the extent that any Stock
     Option exceeds this limit, it shall constitute a Non-Qualified Stock
     Option.

     (b) Reload Options.  At the discretion of the Administrator, Options
granted under the Plan may include a "reload" feature pursuant to which an
optionee exercising an option by the delivery of a number of shares of Stock in
accordance with Section 5(a)(iv)(B) hereof would automatically be granted an
additional Option (with an exercise price equal to the Fair Market Value of the
Stock on the date the additional Option is granted and with such other terms as
the Administrator may provide) to purchase that number of shares of Stock equal
to the sum of (i) the number delivered to exercise the original Option and (ii)
the number withheld to satisfy tax liabilities, with an Option term equal to the
remainder of the original Option term unless the Administrator otherwise
determines in the Award agreement for the original Option grant.

     (c) Non-transferability of Options.  No Stock Option shall be transferable
by the optionee otherwise than by will or by the laws of descent and
distribution and all Stock Options shall be exercisable, during the optionee's
lifetime, only by the optionee, or by the optionee's legal representative or
guardian in the event of the optionee's incapacity.  No Stock Option shall serve
as security for a loan.  Notwithstanding the foregoing, the Administrator, in
its sole discretion, may provide in the Award agreement regarding a given Option
that the optionee may transfer his Non-Qualified Stock Options to members of his
immediate family, to trusts for the benefit of such family members, or to
partnerships in which such family members are the only partners, provided that
the transferee agrees in writing with the Company to be bound by all of the
terms and conditions of this Plan and the applicable Option.  Exercisable
options

                                       9
<PAGE>

shall be forfeited upon the termination of the optionee's contract of employment
as a result of dismissal for cause up to and including the relevant exercise
date.

SECTION 6.  STOCK APPRECIATION RIGHTS.

     (a) Nature of Stock Appreciation Rights.  A Stock Appreciation Right is an
Award entitling the recipient to receive an amount in cash or shares of Stock or
a combination thereof having a value equal to the excess of the Fair Market
Value of the Stock on the date of exercise over the exercise price Stock
Appreciation Right, which price shall not be less than eighty-five percent (85%)
of the Fair Market Value of the Stock on the date of grant (or more than the
option exercise price per share, if the Stock Appreciation Right was granted in
tandem with a Stock Option) multiplied by the number of shares of Stock with
respect to which the Stock Appreciation Right shall have been exercised, with
the Administrator having the right to determine the form of payment.

     (b) Grant and Exercise of Stock Appreciation Rights.  Stock Appreciation
Rights may be granted by the Administrator in tandem with, or independently of,
any Stock Option granted pursuant to Section 5 of the Plan.  In the case of a
Stock Appreciation Right granted in tandem with a Non-Qualified Stock Option,
such Stock Appreciation Right may be granted either at or after the time of the
grant of such Option.  In the case of a Stock Appreciation Right granted in
tandem with an Incentive Stock Option, such Stock Appreciation Right may be
granted only at the time of the grant of the Option.

     A Stock Appreciation Right or applicable portion thereof granted in tandem
with a Stock Option shall terminate and no longer be exercisable upon the
termination or exercise of the related Option.

     (c) Terms and Conditions of Stock Appreciation Rights.  Stock Appreciation
Rights shall be subject to such terms and conditions as shall be determined from
time to time by the Administrator, subject to the following:

          (i) Stock Appreciation Rights granted in tandem with Options shall be
     exercisable at such time or times and to the extent that the related Stock
     Options shall be exercisable.

          (ii) Upon exercise of a Stock Appreciation Right, the applicable
     portion of any related Option shall be surrendered.

          (iii)  All Stock Appreciation Rights shall be exercisable during the
     grantee's lifetime only by the grantee or the grantee's legal
     representative.

                                       10
<PAGE>

SECTION 7.  RESTRICTED STOCK AWARDS

     (a) Nature of Restricted Stock Awards.  A Restricted Stock Award is an
Award entitling the recipient to acquire, at such purchase price as determined
by the Administrator, shares of Stock subject to such restrictions and
conditions as the Administrator may determine at the time of grant ("Restricted
Stock").  Conditions may be based on continuing employment (or other service
relationship) and/or achievement of pre-established performance goals and
objectives.  The grant of a Restricted Stock Award is contingent on the grantee
executing the Restricted Stock Award agreement.  The terms and conditions of
each such agreement shall be determined by the Administrator, and such terms and
conditions may differ among individual Awards and grantees.

     (b) Rights as a Stockholder.  Upon execution of a written instrument
setting forth the Restricted Stock Award and payment of any applicable purchase
price, a grantee shall have the rights of a stockholder with respect to the
voting of the Restricted Stock, subject to such conditions contained in the
written instrument evidencing the Restricted Stock Award.  Unless the
Administrator shall otherwise determine, certificates evidencing the Restricted
Stock shall remain in the possession of the Company until such Restricted Stock
is vested as provided in Section 7(d) below, and the grantee shall be required,
as a condition of the grant, to deliver to the Company a stock power endorsed in
blank.

     (c) Restrictions.  Restricted Stock may not be sold, assigned, transferred,
pledged or otherwise encumbered or disposed of except as specifically provided
herein or in the Restricted Stock Award agreement.  If a grantee's employment
(or other service relationship) with the Company and its Subsidiaries terminates
for any reason, the Company shall have the right to repurchase Restricted Stock
that has not vested at the time of termination at its original purchase price,
from the grantee or the grantee's legal representative.

     (d) Vesting of Restricted Stock.  The Administrator at the time of grant
shall specify the date or dates and/or the attainment of pre-established
performance goals, objectives and other conditions on which the non-
transferability of the Restricted Stock and the Company's right of repurchase or
forfeiture shall lapse.  Subsequent to such date or dates and/or the attainment
of such pre-established performance goals, objectives and other conditions, the
shares on which all restrictions have lapsed shall no longer be Restricted Stock
and shall be deemed "vested."  Except as may otherwise be provided by the
Administrator either in the Award agreement or, subject to Section 15 below, in
writing after the Award agreement is issued, a grantee's rights in any shares of
Restricted Stock that have not vested shall automatically terminate upon the
grantee's termination of employment (or other service relationship) with the
Company and its Subsidiaries and such shares shall be subject to the Company's
right of repurchase as provided in Section 7(c) above.

     (e) Waiver, Deferral and Reinvestment of Dividends.  The Restricted Stock
Award agreement may require or permit the immediate payment, waiver, deferral or
investment of dividends paid on the Restricted Stock.

                                       11
<PAGE>

SECTION 8.  DEFERRED STOCK AWARDS

     (a) Nature of Deferred Stock Awards.   A Deferred Stock Award is an Award
of phantom stock units to a grantee, subject to restrictions and conditions as
the Administrator may determine at the time of grant.  Conditions may be based
on continuing employment (or other service relationship) and/or achievement of
pre-established performance goals and objectives.  The grant of a Deferred Stock
Award is contingent on the grantee executing the Deferred Stock Award agreement.
The terms and conditions of each such agreement shall be determined by the
Administrator, and such terms and conditions may differ among individual Awards
and grantees.  At the end of the deferral period, the Deferred Stock Award, to
the extent vested, shall be paid to the grantee in the form of shares of Stock.

     (b) Election to Receive Deferred Stock Awards in Lieu of Compensation.  The
Administrator may, in its sole discretion, permit a grantee to elect to receive
a portion of the cash compensation or Restricted Stock Award otherwise due to
such grantee in the form of a Deferred Stock Award.  Any such election shall be
made in writing and shall be delivered to the Company no later than the date
specified by the Administrator and in accordance with rules and procedures
established by the Administrator.  The Administrator shall have the sole right
to determine whether and under what circumstances to permit such elections and
to impose such limitations and other terms and conditions thereon as the
Administrator deems appropriate.

     (c) Rights as a Stockholder.  During the deferral period, a grantee shall
have no rights as a stockholder; provided, however, that the grantee may be
credited with Dividend Equivalent Rights with respect to the phantom stock units
underlying his Deferred Stock Award, subject to such terms and conditions as the
Administrator may determine.

     (d) Restrictions.  A Deferred Stock Award may not be sold, assigned,
transferred, pledged or otherwise encumbered or disposed of during the deferral
period.

     (e) Termination.  Except as may otherwise be provided by the Administrator
either in the Award agreement or, subject to Section 15 below, in writing after
the Award agreement is issued, a grantee's right in all Deferred Stock Awards
that have not vested shall automatically terminate upon the grantee's
termination of employment (or cessation of service relationship) with the
Company and its Subsidiaries for any reason.

SECTION 9.  UNRESTRICTED STOCK AWARDS

     Grant or Sale of Unrestricted Stock.  The Administrator may, in its sole
discretion, grant (or sell at par value or such higher purchase price determined
by the Administrator) an Unrestricted Stock Award to any grantee pursuant to
which such grantee may receive shares of Stock free of any restrictions
("Unrestricted Stock") under the Plan.  Unrestricted Stock

                                       12
<PAGE>

Awards may be granted in respect of past services or other valid consideration,
or in lieu of cash compensation due to such grantee.

SECTION 10.  PERFORMANCE SHARE AWARDS

     (a) Nature of Performance Share Awards.  A Performance Share Award is an
Award entitling the recipient to acquire shares of Stock upon the attainment of
specified performance goals.  The Administrator may make Performance Share
Awards independent of or in connection with the granting of any other Award
under the Plan.  The Administrator in its sole discretion shall determine
whether and to whom Performance Share Awards shall be made, the performance
goals, the periods during which performance is to be measured, and all other
limitations and conditions.

     (b) Rights as a Stockholder.  A grantee receiving a Performance Share Award
shall have the rights of a stockholder only as to shares actually received by
the grantee under the Plan and not with respect to shares subject to the Award
but not actually received by the grantee.  A grantee shall be entitled to
receive a stock certificate evidencing the acquisition of shares of Stock under
a Performance Share Award only upon satisfaction of all conditions specified in
the Performance Share Award agreement (or in a performance plan adopted by the
Administrator).

     (c) Termination.  Except as may otherwise be provided by the Administrator
either in the Award agreement or, subject to Section 15 below, in writing after
the Award agreement is issued, a grantee's rights in all Performance Share
Awards shall automatically terminate upon the grantee's termination of
employment (or cessation of service relationship) with the Company and its
Subsidiaries for any reason.

     (d) Acceleration, Waiver, Etc.  At any time prior to the grantee's
termination of employment (or other service relationship) by the Company and its
Subsidiaries, the Administrator may in its sole discretion accelerate, waive or,
subject to Section 15, amend any or all of the goals, restrictions or conditions
applicable to a Performance Share Award.

SECTION 11.  PERFORMANCE-BASED AWARDS TO COVERED EMPLOYEES

     Notwithstanding anything to the contrary contained herein, if any
Restricted Stock Award, Deferred Stock Award or Performance Share Award granted
to a Covered Employee is intended to qualify as "Performance-based Compensation"
under Section 162(m) of the Code and the regulations promulgated thereunder (a
"Performance-based Award"), such Award shall comply with the provisions set
forth below:

     (a) Performance Criteria.  The performance criteria used in performance
goals governing Performance-based Awards granted to Covered Employees may
include any or all of the following:  (i) the Company's return on equity,
assets, capital or investment, (ii) pre-tax or after-tax profit levels of the
Company or any Subsidiary, a division, an operating unit or a

                                       13
<PAGE>

business segment of the Company, or any combination of the foregoing; (iii) cash
flow, funds from operations or similar measure; (iv) total shareholder return;
(v) changes in the market price of the Stock; (vi) sales or market share; or
(vii) earnings per share.

     (b) Grant of Performance-based Awards.  With respect to each Performance-
based Award granted to a Covered Employee, the Committee shall select, within
the first ninety (90) days of a Performance Cycle (or, if shorter, within the
maximum period allowed under Section 162(m) of the Code) the performance
criteria for such grant, and the achievement targets with respect to each
performance criterion (including a threshold level of performance below which no
amount will become payable with respect to such Award).  Each Performance-based
Award will specify the amount payable, or the formula for determining the amount
payable, upon achievement of the various applicable performance targets.  The
performance criteria established by the Committee may be (but need not be)
different for each Performance Cycle and different goals may be applicable to
Performance-based Awards to different Covered Employees.

     (c) Payment of Performance-based Awards.  Following the completion of a
Performance Cycle, the Committee shall meet to review and certify in writing
whether, and to what extent, the performance criteria for the Performance Cycle
have been achieved and, if so, to also calculate and certify in writing the
amount of the Performance-based Awards earned for the Performance Cycle.  The
Committee shall then determine the actual size of each Covered Employee's
Performance-based Award, and, in doing so, may reduce or eliminate the amount of
the Performance-based Award for a Covered Employee if, in its sole judgment,
such reduction or elimination is appropriate.

     (d) Maximum Award Payable.  The maximum Performance-based Award payable to
any one Covered Employee under the Plan for a Performance Cycle is 1,000,000
Shares (subject to adjustment as provided in Section 3(b) hereof).

SECTION 12.  DIVIDEND EQUIVALENT RIGHTS

     (a) Dividend Equivalent Rights.  A Dividend Equivalent Right is an Award
entitling the grantee to receive credits based on cash dividends that would have
been paid on the shares of Stock specified in the Dividend Equivalent Right (or
other award to which it relates) if such shares had been issued to and held by
the grantee.  A Dividend Equivalent Right may be granted hereunder to any
grantee as a component of another Award or as a freestanding award.  The terms
and conditions of Dividend Equivalent Rights shall be specified in the Award
agreement.  Dividend equivalents credited to the holder of a Dividend Equivalent
Right may be paid currently or may be deemed to be reinvested in additional
shares of Stock, which may thereafter accrue additional equivalents.  Any such
reinvestment shall be at Fair Market Value on the date of reinvestment or such
other price as may then apply under a dividend reinvestment plan sponsored by
the Company, if any.  Dividend Equivalent Rights may be settled in cash or
shares of Stock or a combination thereof, in a single installment or
installments.  A Dividend Equivalent Right granted as a component of another
Award may

                                       14
<PAGE>

provide that such Dividend Equivalent Right shall be settled upon exercise,
settlement, or payment of, or lapse of restrictions on, such other award, and
that such Dividend Equivalent Right shall expire or be forfeited or annulled
under the same conditions as such other award. A Dividend Equivalent Right
granted as a component of another Award may also contain terms and conditions
different from such other award.

     (b) Interest Equivalents.  Any Award under this Plan that is settled in
whole or in part in cash on a deferred basis may provide in the grant for
interest equivalents to be credited with respect to such cash payment.  Interest
equivalents may be compounded and shall be paid upon such terms and conditions
as may be specified by the grant.

     (c) Termination.  Except as may otherwise be provided by the Administrator
either in the Award agreement or, subject to Section 15 below, in writing after
the Award agreement is issued, a grantee's rights in all Dividend Equivalent
Rights or interest equivalents shall automatically terminate upon the grantee's
termination of employment (or cessation of service relationship) with the
Company and its Subsidiaries for any reason.

SECTION 13.  TAX WITHHOLDING

     (a) Payment by Grantee.  Each grantee shall, no later than the date as of
which the value of an Award or of any Stock or other amounts received thereunder
first becomes includable in the gross income of the grantee for Federal income
tax purposes, pay to the Company, or make arrangements satisfactory to the
Administrator regarding payment of, any Federal, state, or local taxes of any
kind required by law to be withheld with respect to such income.  The Company
and its Subsidiaries shall, to the extent permitted by law, have the right to
deduct any such taxes from any payment of any kind otherwise due to the grantee.
The Company's obligation to deliver stock certificates to any grantee is subject
to and conditioned on tax obligations being satisfied by the grantee.

     (b) Payment in Stock.  Subject to approval by the Administrator, a grantee
may elect to have the minimum required tax withholding obligation satisfied, in
whole or in part, by (i) authorizing the Company to withhold from shares of
Stock to be issued pursuant to any Award a number of shares with an aggregate
Fair Market Value (as of the date the withholding is effected) that would
satisfy the withholding amount due, or (ii) transferring to the Company shares
of Stock owned by the grantee with an aggregate Fair Market Value (as of the
date the withholding is effected) that would satisfy the withholding amount due.

SECTION 14.  TRANSFER, LEAVE OF ABSENCE, ETC.

     For purposes of the Plan, the following events shall not be deemed a
termination of employment:

     (a) a transfer to the employment of the Company from a Subsidiary or from
the Company to a Subsidiary, or from one Subsidiary to another; or

                                       15
<PAGE>

     (b) an approved leave of absence for military service or sickness, or for
any other purpose approved by the Company, if the employee's right to re-
employment is guaranteed either by a statute or by contract or under the policy
pursuant to which the leave of absence was granted or if the Administrator
otherwise so provides in writing.

SECTION 15.  AMENDMENTS AND TERMINATION

     The Board may, at any time, amend or discontinue the Plan and the
Administrator may, at any time, amend or cancel any outstanding Award for the
purpose of satisfying changes in law or for any other lawful purpose, but no
such action shall adversely affect rights under any outstanding Award without
the holder's consent.  If and to the extent determined by the Administrator to
be required by the Code to ensure that Incentive Stock Options granted under the
Plan are qualified under Section 422 of the Code or to ensure that compensation
earned under Awards qualifies as performance-based compensation under Section
162(m) of the Code, if and to the extent intended to so qualify, Plan amendments
shall be subject to approval by the Company stockholders entitled to vote at a
meeting of stockholders.  Nothing in this Section 15 shall limit the
Administrator's authority to take any action permitted pursuant to Section 3(c).

SECTION 16.  STATUS OF PLAN

     With respect to the portion of any Award that has not been exercised and
any payments in cash, Stock or other consideration not received by a grantee, a
grantee shall have no rights greater than those of a general creditor of the
Company unless the Administrator shall otherwise expressly determine in
connection with any Award or Awards.  In its sole discretion, the Administrator
may authorize the creation of trusts or other arrangements to meet the Company's
obligations to deliver Stock or make payments with respect to Awards hereunder,
provided that the existence of such trusts or other arrangements is consistent
with the foregoing sentence.

SECTION 17.  CHANGE OF CONTROL PROVISIONS

     (a) With respect to any Change of Control as defined in this Section 17,
the Administrator, in its discretion, may specify in any Award or determine in
connection with any Change of Control that:

          (i) Each outstanding Stock Option and Stock Appreciation Right shall
     automatically become fully exercisable; and/or

          (ii) Any conditions and restrictions on each outstanding Restricted
     Stock Award, Deferred Stock Award and Performance Share Award.

     (b) "Change of Control" shall mean the occurrence of any one of the
following events:

                                       16
<PAGE>

          (i) any "Person," as such term is used in Sections 13(d) and 14(d) of
     the Exchange Act (other than the Company, any of its Subsidiaries, Arthur
     D. Little, Inc., or any trustee, fiduciary or other person or entity
     holding securities under any employee benefit plan or trust of the Company,
     any of its Subsidiaries, Arthur D. Little, Inc. or any of its
     subsidiaries), together with all "affiliates" and "associates" (as such
     terms are defined in Rule 12b-2 under the Exchange Act) of such person,
     shall become the "beneficial owner" (as such term is defined in Rule 13d-3
     under the Exchange Act), directly or indirectly, of securities of the
     Company representing forty percent (40%) or more of the combined voting
     power of the Company's then outstanding securities having the right to vote
     in an election of the Company's Board of Directors ("Voting Securities")
     (in such case other than as a result of an acquisition of securities
     directly from the Company); or

          (ii) persons who, as of the Effective Date, constitute the Company's
     Board of Directors (the "Incumbent Directors") cease for any reason,
     including, without limitation, as a result of a tender offer, proxy
     contest, merger or similar transaction, to constitute at least a majority
     of the Board, provided that any person becoming a director of the Company
     subsequent to the Effective Date shall be considered an Incumbent Director
     if such person's election was approved by or such person was nominated for
     election by either (A) a vote of at least a majority of the Incumbent
     Directors or (B) a vote of at least a majority of the Incumbent Directors
     who are members of a nominating committee comprised, in the majority, of
     Incumbent Directors; but provided further, that any such person whose
     initial assumption of office is in connection with an actual or threatened
     election contest relating to the election of members of the Board of
     Directors or other actual or threatened solicitation of proxies or consents
     by or on behalf of a Person other than the Board, including by reason of
     agreement intended to avoid or settle any such actual or threatened contest
     or solicitation, shall not be considered an Incumbent Director; or

          (iii)  the approval by the stockholders of the Company of a
     consolidation, merger or consolidation or sale or other disposition of all
     or substantially all of the assets of the Company (a "Corporate
     Transaction") or if consummation of such Corporate Transaction is subject,
     at the time of such approval by stockholders, to the consent of any
     government or governmental agency, obtaining of such consent (either
     explicitly or implicitly by consummation); excluding , however, a Corporate
     Transaction in which the stockholders of the Company immediately prior to
     the Corporate Transaction, would, immediately after the Corporate
     Transaction, beneficially own (as such term is defined in Rule 13d-3 under
     the Exchange Act), directly or indirectly, shares representing in the
     aggregate more than fifty percent (50%) of the voting shares of the
     corporation issuing cash or securities in the Corporate Transaction (or of
     its ultimate parent corporation, if any); or

                                       17
<PAGE>

          (iv) the approval by the stockholders of any plan or proposal for the
     liquidation or dissolution of the Company.

     Notwithstanding the foregoing, a "Change of Control" shall not be deemed to
have occurred for purposes of the foregoing clause (i) solely as the result of
an acquisition of securities by the Company which, by reducing the number of
shares of Voting Securities outstanding, increases the proportionate number of
shares of Voting Securities beneficially owned by any person to forty percent
(40%) or more of the combined voting power of all then outstanding Voting
Securities; provided, however, that if any person referred to in this sentence
shall thereafter become the beneficial owner of any additional shares of Voting
Securities (other than pursuant to a stock split, stock dividend, or similar
transaction or as a result of an acquisition of securities directly from the
Company) and immediately thereafter beneficially owns forty percent (40%) or
more of the combined voting power of all then outstanding Voting Securities,
then a "Change of Control" shall be deemed to have occurred for purposes of the
foregoing clause (i).

SECTION 18.  GENERAL PROVISIONS

     (a) No Distribution; Compliance with Legal Requirements.  The Administrator
may require each person acquiring Stock pursuant to an Award to represent to and
agree with the Company in writing that such person is acquiring the shares
without a view to distribution thereof.

     No shares of Stock shall be issued pursuant to an Award until all
applicable securities law and other legal and stock exchange or similar
requirements have been satisfied.  The Administrator may require the placing of
such stop-orders and restrictive legends on certificates for Stock and Awards as
it deems appropriate.

     (b) Delivery of Stock Certificates.  Stock certificates to grantees under
this Plan shall be deemed delivered for all purposes when the Company or a stock
transfer agent of the Company shall have mailed such certificates in the United
States mail, addressed to the grantee, at the grantee's last known address on
file with the Company.

     (c) Other Compensation Arrangements; No Employment Rights.  Nothing
contained in this Plan shall prevent the Board from adopting other or additional
compensation arrangements, including trusts, and such arrangements may be either
generally applicable or applicable only in specific cases.  The adoption of this
Plan and the grant of Awards do not confer upon any employee any right to
continued employment with the Company or any Subsidiary.

     (d) Trading Policy Restrictions.  Option exercises and other Awards under
the Plan shall be subject to such Company's insider trading policy, as in effect
from time to time.

                                       18
<PAGE>

     (e) Loans to Grantees.  The Company shall have the authority to make loans
to grantees of Awards hereunder (including to facilitate the purchase of shares)
and shall further have the authority to issue shares for promissory notes
hereunder.

     (f) Designation of Beneficiary.  Each grantee to whom an Award has been
made under the Plan may designate a beneficiary or beneficiaries to exercise any
Award or receive any payment under any Award payable on or after the grantee's
death.  Any such designation shall be on a form provided for that purpose by the
Administrator and shall not be effective until received by the Administrator.
If no beneficiary has been designated by a deceased grantee, or if the
designated beneficiaries have predeceased the grantee, the beneficiary shall be
the grantee's estate.

     (g) Special Terms and Conditions for Foreign Employees.  The Company may
adopt special terms and conditions, including component plans of this Plan, to
comply with laws of foreign jurisdictions in connection with grants of Awards to
employees and key persons in such jurisdictions.  Any shares of Stock issued
under a component plan shall be considered an issuance under this Plan and
subject to the share limitations set forth herein.

SECTION 19.  EFFECTIVE DATE OF PLAN

     This Plan shall become effective upon approval by the holders of a majority
of the votes cast at a meeting of stockholders at which a quorum is present or
by written consent vote of stockholders.  Subject to such approval by the
stockholders and to the requirement that no Stock may be issued hereunder prior
to such approval, Stock Options and other Awards may be granted hereunder on and
after adoption of this Plan by the Board.

SECTION 20.  GOVERNING LAW

     This Plan and all Awards and actions taken thereunder shall be governed by,
and construed in accordance with, the laws of the State of Delaware, applied
without regard to conflict of law principles.

                                       19

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