Document:

CONFIDENTIAL TREATMENT REQUESTED

                               FIRST AMENDMENT TO
                                 LEASE AGREEMENT

     This FIRST AMENDMENT TO LEASE AGREEMENT (the "First Amendment") is dated as
of April 1,  2000,  by and among  TEXAS  INSTRUMENTS  INCORPORATED,  a  Delaware
corporation   ("Lessor")  and  MEMC  SOUTHWEST  INC.,  a  Delaware   corporation
("Lessee"). All terms used herein, unless otherwise defined, shall have the same
meanings ascribed to them in the Lease (as defined below).

                                    Recitals

     WHEREAS,  Lessor  and  Lessee  made and  entered  into that  certain  Lease
Agreement  Covering Silicon Wafer Operations  Premises dated as of June 30, 1995
(the "Lease"); and

     WHEREAS, in connection with the [CONFIDENTIAL MATERIAL HAS BEEN DELETED AND
FILED  SEPARATELY WITH SEC],  Lessor and Lessee wish to amend the Lease to allow
for early termination by Lessee; and

     WHEREAS,  Article 35 of the Lease  allows the Lease to be amended  with the
written consent of Lessor and Lessee.

     NOW, THEREFORE, the parties agree as follows:

1.   The following shall be added at the end of Article 24:

     "Notwithstanding anything else to the contrary herein, effective January 1,
     2002,  Lessee  shall have the right to  terminate  this Lease upon at least
     twelve (12) months prior written  notice to Lessor.  In the event the Lease
     is  terminated  pursuant  to this  provision  prior  to the end of the then
     current term,  Lessee shall be responsible for all Rent up to and including
     the date of  termination.  Rent shall be prorated for any partial  month of
     occupancy  on the basis of 365 days per  year.  The  foregoing  termination
     shall be permitted  solely in connection  with  [CONFIDENTIAL  MATERIAL HAS
     BEEN DELETED AND FILED SEPARATELY WITH SEC]."

2.   Except as specifically  amended by this First Amendment,  all provisions of
     the Lease shall remain effective and binding. This Amendment, together with
     the Lease, constitutes the entire agreement between the Parties relating to
     the subject  matter  hereof and  supersedes  all prior  agreement,  oral or
     written, and all other communications between the Parties.

     IN WITNESS  WHEREOF,  the parties have executed this First  Amendment as of
the date first above  written and the terms herein shall be effective as of that
date.

Lessor:                                 Lessee:

TEXAS INSTRUMENTS INCORPORATED          MEMC SOUTHWEST INC.

By:  /s/ K. Balasubramanian             By:  /s/ James Lang
   ---------------------------             -------------------------------
Name:  K. Balasubramanian               Name:  James Lang
Title:  Senior Vice President           Title:  PresidentCONFIDENTIAL TREATMENT REQUESTED

                               FIRST AMENDMENT TO
                               SUBLEASE AGREEMENT

     This FIRST AMENDMENT TO SUBLEASE AGREEMENT (the "First Amendment") is dated
as of April 1, 2000,  by and among TEXAS  INSTRUMENTS  INCORPORATED,  a Delaware
corporation  ("Sublessor")  and MEMC  SOUTHWEST  INC.,  a  Delaware  corporation
("Sublessee").  All terms used herein, unless otherwise defined,  shall have the
same meanings ascribed to them in the Sublease (as defined below).

                                    Recitals

     WHEREAS,  Sublessor  and  Sublessee  made and  entered  into  that  certain
Sublease Agreement  Covering Silicon Wafer Operations  Premises dated as of June
30, 1995 (the "Sublease"); and

     WHEREAS, in connection with the [CONFIDENTIAL MATERIAL HAS BEEN DELETED AND
FILED  SEPARATELY WITH SEC],  Sublessor and Sublessee wish to amend the Sublease
to allow for early termination by Sublessee; and

     WHEREAS,  Article 35 of the Sublease allows the Sublease to be amended with
the written consent of Sublessor and Sublessee.

     NOW, THEREFORE, the parties agree as follows:

1.   The following shall be added at the end of Article 24:

     "Notwithstanding anything else to the contrary herein, effective January 1,
     2002,  Sublessee  shall have the right to terminate  this  Sublease upon at
     least twelve (12) months prior written  notice to  Sublessor.  In the event
     the Sublease is terminated  pursuant to this provision  prior to the end of
     the then current term,  Sublessee  shall be responsible  for all Rent up to
     and  including  the date of  termination.  Rent shall be  prorated  for any
     partial month of occupancy on the basis of 365 days per year. The foregoing
     termination  shall be permitted  solely in  connection  with  [CONFIDENTIAL
     MATERIAL HAS BEEN DELETED AND FILED SEPARATELY WITH SEC]"

2.   Except as specifically  amended by this First Amendment,  all provisions of
     the Sublease shall remain effective and binding.  This Amendment,  together
     with the Sublease,  constitutes  the entire  agreement  between the Parties
     relating to the subject matter hereof and  supersedes all prior  agreement,
     oral or written, and all other communications between the Parties.

     IN WITNESS  WHEREOF,  the parties have executed this First  Amendment as of
the date first above  written and the terms herein shall be effective as of that
date.

Sublessor:                                      Sublessee:

TEXAS INSTRUMENTS INCORPORATED                  MEMC SOUTHWEST INC.

By:  /s/ K. Balasubramanian                     By:  /s/ James Lang
   ---------------------------                     -----------------------------
Name:   K. Balasubramanian                      Name:   James Lang
Title:  Senior Vice President                   Title:  PresidentMEMC Electronic Materials, Inc.

                           1995 EQUITY INCENTIVE PLAN

                    as Amended and Restated on August 3, 2000

     1. Purpose. The purpose of the MEMC Electronic Materials,  Inc. 1995 Equity
Incentive  Plan as amended and  restated  herein  (the  "Plan") is to provide an
additional incentive to officers,  other eligible key employees and directors of
MEMC Electronic Materials, Inc., a Delaware corporation (the "Company"), and its
Subsidiaries  (as  hereinafter  defined)  upon  whom  responsibilities  for  the
successful  operation,  administration  and  management  of the Company rest and
whose present or potential  contributions are important to the continued success
of the  Company,  and to enable the  Company to attract and retain in its employ
and as directors  highly  qualified  persons for the  successful  conduct of its
business. It is intended that this purpose will be effected through the granting
of incentive  and  nonqualified  Stock  Options,  Restricted  Stock  Awards,  or
Performance  Share  Awards,  as  provided  herein  (as each term is  hereinafter
defined and collectively defined as the "Awards").

     2.  Definitions.  For purposes of the Plan,  the  following  terms shall be
defined as follows:

          "Affiliate" and "Associate" have the respective  meanings  ascribed to
     such terms in Rule 12b-2 promulgated under the Exchange Act.

          "Award"  means  an  award  to an  Eligible  Employee  (as  hereinafter
     defined)  in the  form  of  Stock  Options,  Restricted  Stock  Awards,  or
     Performance Share Awards.

          "Award Agreement" means an agreement  granting an Award and containing
     such terms and conditions as the Committee  deems  appropriate and that are
     not inconsistent with the terms of the Plan.

          "Beneficial Owner" has the meaning ascribed to such term in Rule 13d-3
     promulgated under the Exchange Act.

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

          A "Change in Control" of the Company  shall be deemed to have occurred
     when (A) any Person  (other than (x) the  Company,  any  Subsidiary  of the
     Company,  or any Parent of the Company  including VEBA AG, Huls Corporation
     and any of their Affiliates or (y) any employee benefit plan of the Company
     or of any  Subsidiary  of the Company,  or any Person or entity  organized,
     appointed or  established  by the Company or any  Subsidiary of the Company
     for or pursuant to the terms of any such plan,  alone or together  with its
     Affiliates  and  Associates)  shall become the  Beneficial  Owner of twenty
     percent (20%) or more of the then outstanding shares of Common Stock or the
     Combined Voting Power of the Company's then outstanding  voting  securities
     (except pursuant to an offer for all outstanding  shares of Common Stock at
     a price and upon such terms and  conditions as a majority of the Continuing
     Directors  determine  to be in the best  interests  of the  Company and its
     shareholders  (other  than the  Person on whose  behalf  the offer is being
     made)  (an  "Acquiring  Person")),  or (B)  during  any  period  of two (2)
     consecutive  years,  individuals  who  at  the  beginning  of  such  period
     constitute the Board,  and any new director (other than a director who is a
     representative  or nominee of an Acquiring  Person)  whose  election by the
     Board or nomination for election by the Company's shareholders was approved
     by a vote of at least a majority of the directors  then still in office who
     either were  directors at the beginning of the period or whose  election or
     nomination  for  election was  previously  so approved  (collectively,  the
     "Continuing  Directors"),  cease for any reason to constitute a majority of
     the Board.  Notwithstanding  the  foregoing,  no Change in Control shall be
     deemed  to have  occurred  if VEBA  AG and  any of its  Affiliates  are the
     Beneficial  Owners of fifty  percent  (50%) or more of the Combined  Voting
     Power of the Company's then outstanding  voting securities and designees of
     VEBA AG and its Affiliates constitute a majority of the Board.

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

          "Combined  Voting  Power"  means  the  combined  voting  power  of the
     Company's then outstanding voting securities.

          "Committee"  means the Compensation  Committee  appointed by the Board
     pursuant to Section 3(a) hereof to administer the Plan.

          "Common  Stock"  means the  Voting  Common  Stock,  par value $.01 per
     share, of the Company.

          "Disability" means, with respect to any Participant, that, as a result
     of incapacity due to physical or mental illness, such Participant is, or is
     reasonably  likely to become,  unable to perform his or her duties for more
     than six (6) consecutive  months or six (6) months in the aggregate  during
     any twelve (12) month period.

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

          "Fair Market Value" means, on any given date, the closing price of the
     shares of Common Stock, as reported on the New York Stock Exchange for such
     date or such national securities exchange as may be designated by the Board
     or, if Common Stock was not traded on such date, on the next  preceding day
     on which Common Stock was traded.

          "Incentive  Stock  Option" means a Stock Option which is an "incentive
     stock option"  within the meaning of Section 422 of the Code and designated
     by the Committee as an Incentive Stock Option in an Award Agreement.

          "Nonqualified  Stock  Option"  means a Stock  Option  which  is not an
     Incentive Stock Option.

          "Parent" means any corporation which is a "parent  corporation" within
     the meaning of Section 424(e) of the Code with respect to the Company.

          "Participant"  means an  Eligible  Employee  to whom an Award has been
     granted under the Plan.

          "Performance  Share  Award"  means a  conditional  Award of  shares of
     Common Stock granted to an Eligible Employee pursuant to Section 9 hereof.

          "Person"  means any  person,  entity or "group"  within the meaning of
     Section 13(d)(3) or Section 14(d)(2) of the Exchange Act.

          "Restricted  Stock  Award"  means an Award of shares  of Common  Stock
     granted to an Eligible Employee pursuant to Section 8 hereof.

          "Retirement"  means retirement from active employment with the Company
     and its  Subsidiaries  on or after the  attainment of age 55, or such other
     retirement  date as may be approved by the  Committee  for  purposes of the
     Plan and specified in the applicable Award Agreement, but shall not include
     the termination of the directorship of a nonemployee director.

          "Stock  Option"  means an Award to  purchase  shares of  Common  Stock
     granted to an Eligible Employee pursuant to Section 7 hereof.

          "Subsidiary" means any corporation which is a "subsidiary corporation"
     within  the  meaning  of  Section  424(f) of the Code with  respect  to the
     Company.

          "Ten Percent  Shareholder" means an Eligible Employee who, at the time
     an Incentive  Stock Option is to be granted to him or her, owns (within the
     meaning of Section  422(b)(6) of the Code,) stock  possessing more than ten
     percent (10%) of the total Combined Voting Power of all classes of stock of
     the Company, or of a Parent or a Subsidiary.

          "Window  Period" means the ten (10) business day period in each fiscal
     quarter of the Company commencing on the third (3rd) business day following
     the release for publication of the Company's  quarterly or annual sales and
     earnings for the next preceding fiscal quarter or year, as the case may be,
     and  ending on the  twelfth  (12th)  business  day  following  such date of
     release.

     3. Administration of the Plan.

          (a) The Plan shall be  administered  by the Committee,  which shall be
     comprised  of no fewer than two members of the Board who shall be appointed
     from time to time by the Board. Members of the Committee shall serve at the
     pleasure  of the Board and the Board may from time to time  remove  members
     from, or add members to, the Committee. All determinations of the Committee
     at a meeting shall be made by a majority of the members in attendance.  Any
     decision or determination  reduced to writing and signed by all the members
     shall be fully as effective as if it had been made by a majority  vote at a
     meeting  duly  called  and  held.  No  member  of the  Committee  shall  be
     personally liable for any action,  determination or interpretation  made in
     good faith with respect to the Plan, and all members of the Committee shall
     be  indemnified  by the  Company to the  fullest  extent  permitted  by the
     certificate  of  incorporation  or  by-laws of the  Company  or  applicable
     Delaware   law  with  respect  to  any  such   action,   determination   or
     interpretation.

          (b) Within the  limitations  described  herein,  the  Committee  shall
     administer the Plan,  select the Eligible  Employees to whom Awards will be
     granted, determine the number and type of Awards to be granted to each such
     Eligible  Employee,  determine the terms and conditions  applicable to each
     Award (which need not be identical),  make any amendment or modification to
     any Award  Agreement  consistent with the terms of the Plan, and interpret,
     construe and implement the provisions of the Plan. The Committee shall have
     the authority to adopt rules and  regulations  for  administering  the Plan
     which shall not be  inconsistent  with the terms of the Plan.  Decisions of
     the Committee  shall be binding on the Company,  on all Eligible  Employees
     and Participants and all other persons having any interest in the Plan. The
     Company  shall effect the  granting of Awards under the Plan in  accordance
     with the determinations made by the Committee,  which shall be evidenced by
     an Award Agreement.

          (c) The  Committee  shall have the  authority  to adopt such rules and
     regulations  and to add such terms,  conditions and sub-schemes to the Plan
     as it deems  necessary or desirable to permit or facilitate the granting of
     Awards under the Plan to, or obtain  favorable tax treatment for,  Eligible
     Employees  resident  for tax purposes in  jurisdictions  outside the United
     States; provided, however, that any such rule, regulation,  term, condition
     or sub-scheme shall not be inconsistent with the terms of the Plan.

     (d) Any act that the  Committee  is  authorized  to perform  hereunder  may
instead be performed by the Board at its discretion,  and to the extent that the
Board so acts,  references in the Plan to the Committee shall refer to the Board
as  applicable.  In addition,  the Committee in its  discretion may delegate its
authority to grant Awards pursuant to Section 3(b) to an officer or committee of
officers, subject to specific limits and guidelines established by the Committee
at the time of such delegation. In addition, the Committee in its discretion may
delegate  its  authority  to an officer or  committee of officers to amend Award
Agreements  for  purposes of  delaying  the start of the period  during  which a
Participant  may  exercise his or her Stock  Options  following  termination  of
employment if the Participant is in possession of material nonpublic information
regarding the Company at the time of his or her termination of employment.

     4.  Duration of Plan.  The Plan shall remain in effect until  terminated by
the Board of Directors and  thereafter  until all Awards  granted under the Plan
are  satisfied  by the issuance of shares of Common Stock or the payment of cash
or are  terminated  under the  terms of the Plan or under  the  Award  Agreement
entered  into  in  connection  with  the  grant  thereof.   Notwithstanding  the
foregoing,  no Awards may be granted under the Plan after the tenth  anniversary
of the Effective Date (as hereinafter defined).

     5.  Shares of Stock  Subject  to the Plan.  Subject  to the  provisions  of
Section 13(b)  (relating to adjustment  for changes in capital  stock) there are
reserved for issuance under the Plan an aggregate of 7,197,045  shares of Common
Stock,  less the number of shares that may be reserved  for  issuance  under the
Company's  Retirement  Savings  Plan or under  any  broad-based  employee  stock
purchase plan (the "Plan  Maximum").  Such shares may be authorized but unissued
or treasury shares.

     Stock underlying  outstanding  Stock Options,  Restricted Stock Awards,  or
Performance  Share Awards will reduce the Plan Maximum while such Stock Options,
Restricted Stock Awards,  or Performance  Share Awards are  outstanding.  Shares
underlying  expired,  canceled or  forfeited  Stock  Options,  Restricted  Stock
Awards,  or  Performance  Share Awards shall be added back to the Plan  Maximum.
When the exercise price of Stock Options is paid by delivery of shares of Common
Stock of the Company,  or if the Committee  approves the  withholding  of shares
from a distribution in payment of the exercise price,  the Plan Maximum shall be
reduced by the net (rather than the gross) number of shares  issued  pursuant to
such  exercise,  regardless of the number of shares  surrendered  or withheld in
payment.  If the Committee  approves the payment of cash to an optionee equal to
the  difference  between the fair market value and the  exercise  price of stock
subject to a Stock Option,  or if a Performance Share Award is paid in cash, the
Plan  Maximum  shall be  increased by the number of shares with respect to which
such payment is applicable.  Restricted  Stock issued  pursuant to the Plan will
reduce the Plan Maximum while  outstanding  even while subject to  restrictions.
Shares of  Restricted  Stock  shall be added  back to the Plan  Maximum  if such
Restricted  Stock  is  forfeited  or is  returned  to the  Company  as part of a
restructuring of benefits granted pursuant to the Plan.

     6.  Maximum  Number  of  Shares  per  Eligible  Employee.  To  satisfy  the
requirements  under  Section  162(m) of the Code,  no  Eligible  Employee  whose
Performance Award the Committee  reasonably  believes will be subject to Section
162(m) of the Code  shall  receive a grant of Awards  with  respect to more than
325,000 shares of Common Stock in any Plan year.

     7.  Eligible  Employees.   Awards  may  be  granted  by  the  Committee  to
individuals   ("Eligible  Employees")  who  are  either  directors  or  salaried
employees of the Company or a Subsidiary  with  potential to  contribute  to the
future success of the Company or its Subsidiaries.  Awards shall not be affected
by any change of duties or  positions  so long as the holder  continues to be an
employee or director of the Company or of a Subsidiary.

     8. Stock Options.  Stock Options  granted under the Plan may be in the form
of Incentive Stock Options or Nonqualified Stock Options.  Stock Options granted
under the Plan 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 Committee shall deem appropriate:

          (a) Award  Agreement.  Stock  Options  shall be  evidenced by an Award
     Agreement  in such form and  containing  such terms and  conditions  as the
     Committee deems  appropriate and which are not inconsistent  with the terms
     of the Plan.

          (b) Terms of Stock Options Generally. Subject to the terms of the Plan
     and the  applicable  Award  Agreement,  each Stock Option shall entitle the
     Participant to whom such Stock Option was granted to purchase, upon payment
     of the  relevant  exercise  price,  the  number of  shares of Common  Stock
     specified in the Award Agreement.

          (c)  Exercise  Price.  The  Exercise  Price per share of Common  Stock
     purchasable  under a Stock Option shall be  determined  by the Committee at
     the time of grant and set forth in the Award Agreement.

          (d) Option  Term.  The term of each Stock Option shall be fixed by the
     Committee and set forth in the Award Agreement;  provided,  however, that a
     Stock  Option shall not be  exercisable  after the  expiration  of ten (10)
     years  after the date the Stock  Option is  granted  (five (5) years in the
     case of an Incentive Stock Option granted to a Ten Percent Shareholder).

          (e)  Exercisability.  A Stock Option shall be exercisable at such time
     or times and subject to such terms and conditions as shall be determined by
     the  Committee.  The  Committee  may provide  that Stock  Options  shall be
     exercisable  in whole or in part based upon length of service or attainment
     of specified performance criteria.  The Committee,  in its sole discretion,
     may provide for the acceleration of vesting of a Stock Option,  in whole or
     in part, based on such factors or criteria (including specified performance
     criteria) as the Committee may determine.

          (f) Method of Exercise.  A Stock Option 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.  Such  notice  shall be  accompanied  by
     payment in full of the  exercise  price  either by cash,  certified or bank
     check, note or other instrument acceptable to the Committee.  Except as set
     forth in Section 8(i) hereof,  as  determined  by the Committee in its sole
     discretion,  payment of the  exercise  price may also be made in full or in
     part in shares of Common Stock with a Fair Market Value  (determined  as of
     the date of  exercise  of such Stock  Option  and,  where  such  shares are
     withheld (as described  below),  net of the applicable  exercise  price) at
     least equal to such full or partial  payment.  Common Stock used to pay the
     exercise price may be shares that are already owned by the Participant,  or
     the Company may withhold  shares of Common Stock that would  otherwise have
     been received by the Participant upon exercise of the Stock Option.  In its
     discretion,  the Committee may also permit any  Participant  to exercise an
     Option through a "cashless exercise" procedure involving a broker or dealer
     approved by the Committee,  provided that the  Participant has delivered an
     irrevocable  notice of exercise (the  "Notice") to the broker or dealer and
     such broker or dealer agrees:  (A) to sell immediately the number of shares
     of Common Stock specified in the Notice to be acquired upon exercise of the
     Option in the ordinary  course of its business,  (B) to pay promptly to the
     Company the aggregate  exercise price (plus the amount necessary to satisfy
     any applicable tax liability) and (C) to pay to the Participant the balance
     of the proceeds of the sale of such shares over the amount determined under
     clause  (B)  of  this  sentence,  less  applicable  commissions  and  fees;
     provided,  however,  that the Committee  may modify the  provisions of this
     sentence to the extent  necessary  to conform the exercise of the Option to
     Regulation T under the Exchange Act. The manner in which the exercise price
     may  be  paid  may  be  subject  to  certain  conditions  specified  by the
     Committee. If requested by the Committee, the Participant shall deliver the
     Award  Agreement  evidencing an exercised  Stock Option to the Secretary of
     the  Company,  who shall  endorse  thereon a notation of such  exercise and
     return such Award  Agreement to the Participant  exercising the Option.  No
     fractional  shares (or cash in lieu thereof)  shall be issued upon exercise
     of a Stock  Option  and the  number of shares  that may be  purchased  upon
     exercise shall be rounded to the nearest number of whole shares.

          (g) Rights as  Shareholder.  A  Participant  shall have no rights as a
     shareholder  with  respect  to any  shares of Common  Stock  issuable  upon
     exercise of a Stock Option until a certificate or  certificates  evidencing
     the shares of Common Stock shall have been issued to the  Participant  and,
     subject  to  Sections  13(b) and  13(c),  no  adjustment  shall be made for
     dividends  or  distributions  or other  rights in  respect of any share for
     which the record date is prior to the date on which the  Participant  shall
     become the holder of record thereof.

          (h)  Special  Rule  for  Incentive  Stock  Options.  With  respect  to
     Incentive  Stock Options  granted  under the Plan,  if the  aggregate  Fair
     Market  Value  (determined  as of the date the  Incentive  Stock  Option is
     granted)  of the number of shares  with  respect to which  Incentive  Stock
     Options  are  exercisable  for the first time by a  Participant  during any
     calendar  year  under all plans of the  Company  or a Parent or  Subsidiary
     exceeds One Hundred Thousand Dollars  ($100,000) or such other limit as may
     be required by the Code, such Incentive Stock Options shall be treated,  to
     the extent of such excess,  as  Nonqualified  Stock  Options.  No Incentive
     Stock  Option  shall be granted to any person who is not an employee at the
     time of grant.

          (i) Payment  Alternatives  for Section 16 Persons.  Persons subject to
     Section 16 of the Exchange Act shall have the unfettered right (but not the
     obligation)  to pay the  exercise  price  in full or in part in  shares  of
     Common  Stock  with a Fair  Market  Value  (determined  as of the  date  of
     exercise of such Stock  Option  and,  where such  shares are  withheld  (as
     described below),  net of the applicable  exercise price) at least equal to
     such full or partial  payment.  Common Stock used to pay the exercise price
     may be shares that are already owned by the  Participant  who is subject to
     Section 16 of the Exchange  Act, or such  Participant  shall have the right
     but not the  obligation to direct the Company to withhold  shares of Common
     Stock that would  otherwise  have been  received by such  Participant  upon
     exercise of the Stock Option.  It is the intent of this  provision that the
     transactions  described in this  subsection  qualify for the exemption from
     short-swing  profit liability under Section 16 of the Exchange Act pursuant
     to the  "disposition  to the issuer"  exemption  set forth at Rule 16b-3(e)
     promulgated under Section 16 of the Exchange Act.

     9. Restricted Stock Awards.  Restricted Stock Awards granted under the Plan
shall be subject to the following  terms and  conditions  and shall contain such
additional  terms  and  conditions,  not  inconsistent  with  the  Plan,  as the
Committee shall deem appropriate:

          (a) Award Agreement.  Restricted Stock Awards shall be evidenced by an
     Award  Agreement in such form and containing such  restrictions,  terms and
     conditions  as  the  Committee   deems   appropriate   and  which  are  not
     inconsistent  with the terms of the Plan,  including,  without  limitation,
     restrictions on the sale, assignment, transfer or other disposition of such
     shares and provisions requiring that a Participant forfeit such shares upon
     a termination of employment or directorship for specified  reasons within a
     specified period of time.

          (b) Terms of  Restricted  Stock  Awards  Generally.  Restricted  Stock
     Awards may be granted under the Plan in such form as the Committee may from
     time to  time  approve.  Restricted  Stock  Awards  may be  granted  for no
     consideration  or such  consideration  as the Committee deems  appropriate.
     Restricted Stock Awards may be granted alone or in addition to other Awards
     under the Plan.  Subject  to the terms of the  Plan,  the  Committee  shall
     determine the number of shares of Common Stock  subject to each  Restricted
     Stock  Award  granted  to a  Participant,  and  the  Committee  may  impose
     different  terms and  conditions on any particular  Restricted  Stock Award
     granted to any Participant.  Each Participant  receiving a Restricted Stock
     Award  shall be issued a  certificate  or  certificates  in respect of such
     shares of  Common  Stock at the time of grant.  Such  certificate  shall be
     registered in the name of such  Participant,  and shall bear an appropriate
     legend referring to the terms,  conditions and  restrictions  applicable to
     such Award.  The Committee may require that the certificate or certificates
     evidencing  such  shares  be held  in  custody  by the  Company  until  the
     restrictions  thereon  shall have lapsed,  and that,  as a condition of any
     Restricted Stock Award, the Participant shall have delivered a stock power,
     endorsed in blank, relating to the Common Stock covered by such Award.

          (c) Restriction Period. Restricted Stock Awards shall provide that, in
     order for a  Participant  to vest in such  Awards,  such  Participant  must
     remain  in  the   employment  or   directorship   of  the  Company  or  its
     Subsidiaries,  subject to such exceptions as the Committee may determine in
     its sole  discretion for specified  reasons for a period  commencing on the
     date of the Award and ending on such  later date or dates as the  Committee
     may designate at the time of the Award and set forth in the Award Agreement
     (the "Restriction  Period").  During the Restriction  Period, a Participant
     may not sell, assign,  transfer,  pledge,  encumber or otherwise dispose of
     shares of  Common  Stock  received  under a  Restricted  Stock  Award.  The
     Committee,   in  its  sole  discretion,   may  provide  for  the  lapse  of
     restrictions in installments during the Restriction Period and may waive or
     accelerate such  restrictions in whole or in part, based on such factors or
     criteria,  including specified  performance  criteria, as the Committee may
     determine.  Upon expiration of the applicable  Restriction Period (or lapse
     of restrictions  during the Restriction  Period),  the Participant shall be
     vested in the Restricted Stock Award, or applicable portion thereof.

          (d)  Rights  as  Shareholder.  Except  as  otherwise  provided  by the
     Committee in its sole discretion, a Participant shall have, with respect to
     the shares of Common Stock received under a Restricted  Stock Award, all of
     the rights of a shareholder of the Company, including the right to vote the
     shares and the right to receive any cash dividends.  Stock dividends issued
     with respect to shares covered by a Restricted Stock Award shall be treated
     as additional  shares under the Restricted Stock Award and shall be subject
     to the same  restrictions  and other terms and conditions that apply to the
     shares with respect to which such dividends are issued.

     10.  Performance  Share Awards.  Performance Share Awards granted under the
Plan shall be subject to the following  terms and  conditions  and shall contain
such additional  terms and conditions,  not  inconsistent  with the Plan, as the
Committee shall deem appropriate:

          (a) Award Agreement. Performance Share Awards shall be evidenced by an
     Award  Agreement in such form and  containing  such terms and conditions as
     the Committee  deems  appropriate and which are not  inconsistent  with the
     terms of the Plan.  Each  Award  Agreement  shall  set forth the  number of
     shares of Common Stock to be received by a Participant upon satisfaction of
     certain specified  performance criteria and subject to such other terms and
     conditions as the Committee deems appropriate.

          (b) Terms of Performance  Share Awards  Generally.  Performance  Share
     Awards may be granted under the Plan in such form as the Committee may from
     time to time  approve.  Performance  Share  Awards  may be  granted  for no
     consideration  or such  consideration  as the Committee deems  appropriate.
     Performance  Share  Awards may be  granted  alone or in  addition  to other
     Awards  under the Plan.  Subject  to the terms of the Plan,  the  Committee
     shall  determine  the  number of shares of  Common  Stock  subject  to each
     Performance Share Award granted to a Participant.

          (c) Performance Goals. Performance Share Awards shall provide that, in
     order for a  Participant  to be entitled to receive  shares of Common Stock
     under such Award,  the Company and/or the Participant  must achieve certain
     specified   performance  goals  ("Performance  Goals")  over  a  designated
     performance  period  ("Performance  Period").  The  Performance  Goals  and
     Performance  Period  shall  be  established  by the  Committee  in its sole
     discretion.  The Committee shall  establish the Performance  Goals for each
     Performance   Period  before,   or  as  soon  as  practicable   after,  the
     commencement of the Performance  Period. In setting  Performance Goals, the
     Committee  may use such  measures as net  earnings,  operating  earnings or
     income,  absolute and/or relative return on equity or assets,  earnings per
     share,  cash  flow,  pretax  profits,   earnings  growth,  revenue  growth,
     comparison to peer  companies,  any  combination of the foregoing,  or such
     other measure or measures of performance,  including individual measures of
     performance, in such manner as it deems appropriate.  Prior to the end of a
     Performance  Period,  with respect to any Participant the  deductibility of
     whose  Performance  Award  will  not,  in  the  reasonable  belief  of  the
     Committee,  be subject to Section 162(m) of the Code, the Committee may, in
     its discretion,  adjust the  performance  objectives to reflect a Change in
     Capitalization  (as  hereinafter  defined)  or any  other  event  which may
     materially  affect  the  performance  of the  Company,  a  Subsidiary  or a
     division, including, but not limited to, market conditions or a significant
     acquisition or  disposition  of assets or other property by the Company,  a
     Subsidiary   or  a  division.   With  respect  to  any   Participant,   the
     deductibility of whose  Performance  Award may, in the reasonable belief of
     the  Committee,  be subject to Section  162(m) of the Code,  the  Committee
     shall not be entitled to exercise the  discretion  conferred upon it in the
     preceding  sentence  to the  extent  the  existence  or  exercise  of  such
     discretion would result in a loss of tax  deductibility  under such Section
     162(m) of the  Code.  The  extent to which a  Participant  is  entitled  to
     payment of a Performance  Share Award at the end of the Performance  Period
     shall be determined by the Committee, in its sole discretion,  based on the
     Committee's  determination of whether the Performance  Goals established by
     the  Committee  in the granting of such  Performance  Share Award have been
     met.

          (d) Payment of Awards.  Payment in settlement  of a Performance  Share
     Award shall be made as soon as practicable  following the conclusion of the
     respective Performance Period, or at such other time as the Committee shall
     determine, in shares of Common Stock.

          (e)  Rights  as  Shareholder.  Except  as  otherwise  provided  by the
     Committee in the applicable  Award Agreement,  a Participant  shall have no
     rights as a shareholder  with respect to a Performance  Share Award until a
     certificate  or  certificates  evidencing  the shares of Common Stock shall
     have  been  issued  to the  Participant  following  the  conclusion  of the
     Performance Period, and, subject to Sections 13(b) and 13(c), no adjustment
     shall be made for dividends or  distributions or other rights in respect of
     any  share  for  which  the  record  date is prior to the date on which the
     Participant shall become the holder of record thereof.

     11. Termination of Employment.

          (a) Disability or  Retirement.  Except as may otherwise be provided by
     the  Committee in its sole  discretion  at the time of grant or  subsequent
     thereto,   if  a   Participant's   employment  with  the  Company  and  its
     Subsidiaries  terminates  by reason  of  Retirement  or if a  Participant's
     employment (or, with respect to a nonemployee  director,  his directorship)
     terminates  by  reason of  Disability,  (i) any  Stock  Option  held by the
     Participant  may thereafter be exercised,  to the extent it was exercisable
     on the date of termination, for a period (the "Exercise Period") of one (1)
     year from the date of such Disability or Retirement or until the expiration
     of the stated term of the Stock Option, whichever period is shorter, and to
     the extent not  exercisable on the date of  termination,  such Stock Option
     shall be forfeited;  provided,  however,  that if a Participant  terminates
     employment by reason of Retirement and such Participant  holds an Incentive
     Stock Option, the Exercise Period shall not exceed the shorter of three (3)
     months from the date of Retirement  and the remainder of the stated term of
     such  Incentive  Stock  Option;  provided  further,  however,  that  if the
     Participant dies during the Exercise Period,  any unexercised  Stock Option
     held by such  Participant  may thereafter be exercised to the extent it was
     exercisable  on  the  date  of  Disability  or  Retirement,  by  the  legal
     representative  or beneficiary of the Participant,  for a period of one (1)
     year from the date of such death or until the expiration of the stated term
     of such Stock  Option,  whichever  period is shorter (or, in the case of an
     Incentive Stock Option, for a period equal to the remainder of the Exercise
     Period), and (ii) if such termination is prior to the end of the applicable
     Restriction   Period  (with  respect  to  a  Restricted   Stock  Award)  or
     Performance  Period (with respect to a Performance Share Award), the number
     of shares of Common Stock  subject to such Award which have not been earned
     as of  the  date  of  Disability  or  Retirement  shall  be  forfeited.  In
     determining  whether to exercise its discretion under the first sentence of
     this Section 11(a) with respect to an Incentive  Stock Option the Committee
     may consider the provisions of Section 422 of the Code.

          (b) Death. Except as may otherwise be provided by the Committee in its
     sole  discretion  at  the  time  of  grant  or  subsequent  thereto,  if  a
     Participant's   employment  or  directorship   with  the  Company  and  its
     Subsidiaries  terminates  by reason of death,  (i) any Stock Option held by
     the  Participant  may  thereafter  be  exercised,  to  the  extent  it  was
     exercisable  on  the  date  of  death,  by  the  legal   representative  or
     beneficiary of the Participant,  for a period of one (1) year from the date
     of the  Participant's  death or until the  expiration of the stated term of
     such  Stock  Option,  whichever  period is  shorter,  and to the extent not
     exercisable on the date of death,  such Stock Option shall be forfeited and
     (ii) if such termination is prior to the end of the applicable  Restriction
     Period (with  respect to a Restricted  Stock Award) or  Performance  Period
     (with respect to a Performance Share Award), the number of shares of Common
     Stock  subject to such Award  which have not been  earned as of the date of
     death shall be forfeited.

          (c) Other Terminations.  Unless the Committee  determines otherwise in
     its  sole  discretion  at the time of grant  or  subsequent  thereto,  if a
     Participant's   employment  or  directorship   with  the  Company  and  its
     Subsidiaries  terminates  for any reason  other than death,  Disability  or
     Retirement,  (i) any Stock Option held by the Participant may thereafter be
     exercised, to the extent it was exercisable on the date of termination, for
     a period of sixty (60) days from the date of such  termination or until the
     expiration  of the stated term of such Stock  Option,  whichever  period is
     shorter, and to the extent not exercisable on the date of termination, such
     Stock Option shall be forfeited,  and (ii) if such  termination is prior to
     the end of the applicable  Restriction Period (with respect to a Restricted
     Stock Award) or  Performance  Period (with respect to a  Performance  Share
     Award),  the number of shares of Common  Stock  subject to such Award which
     have not been earned as of the date of such termination shall be forfeited.
     In determining  whether to exercise its discretion under the first sentence
     of this  Section  10(c) with  respect to an  Incentive  Stock  Option,  the
     Committee may consider the provisions of Section 422 of the Code.

     12.  Non-transferability  of Awards. No Awards under the Plan or any rights
or interests therein may be sold,  transferred,  assigned,  pledged or otherwise
encumbered   or  disposed  of  except  by  will  or  the  laws  of  descent  and
distribution;  provided,  however, that with respect to any Award that is not an
Incentive Stock Option, the foregoing restrictions shall not apply to the extent
determined by the Committee in its sole  discretion at the time of grant and set
forth in the applicable Award Agreement;  provided further,  however, that if so
determined by the Committee, a Participant may, in the manner established by the
Committee,  designate a  beneficiary  to exercise the rights of the  Participant
with respect to any Award upon the death of the Participant. During the lifetime
of a Participant,  Stock Options shall be  exercisable  only by, and payments in
settlement of Awards shall be payable only to, the Participant.

     13. Recapitalization or Reorganization.

          (a) The  existence of the Plan,  the Award  Agreements  and the Awards
     granted  hereunder  shall not  affect or  restrict  in any way the right or
     power  of the  Company  or the  shareholders  of the  Company  to  make  or
     authorize any adjustment, recapitalization,  reorganization or other change
     in  the  Company's  capital  structure  or  its  business,  any  merger  or
     consolidation of the Company, any issue of stock or of options, warrants or
     rights  to  purchase  stock or of  bonds,  debentures,  preferred  or prior
     preference  stocks  whose rights are superior to or affect the Common Stock
     or the rights thereof or which are  convertible  into or  exchangeable  for
     Common Stock, or the dissolution or liquidation of the Company, or any sale
     or  transfer  of all or any part of its  assets or  business,  or any other
     corporate act or proceeding, whether of a similar character or otherwise.

          (b)  Notwithstanding any provision of the Plan or any Award Agreement,
     in the event of any change in the  outstanding  Common Stock by reason of a
     stock dividend,  recapitalization,  reorganization,  merger, consolidation,
     stock   split,   combination   or   exchange   of  shares  (a   "Change  in
     Capitalization"),  (i) such  proportionate  adjustments as may be necessary
     (in the form determined by the Committee in its sole discretion) to reflect
     such change shall be made to prevent  dilution or enlargement of the rights
     of Participants  under the Plan with respect to (a) the aggregate number of
     shares of Common Stock for which  Awards in respect  thereof may be granted
     under the Plan,  (b) the  aggregate  number of shares of Common Stock which
     are subject to Awards hereunder  without the approval of the Board pursuant
     to Section 5 hereof,  (c) the number of shares of Common  Stock  covered by
     each  outstanding  Award,  and (d) the  exercise or Award prices in respect
     thereof and (ii) the Committee may make such other adjustments,  consistent
     with the foregoing, as it deems appropriate in its sole discretion.

          (c) Upon the  occurrence of a merger of, or  consolidation  involving,
     the  Company in which the Common  Stock is  converted  into  securities  of
     another  corporation or into cash, or any other transaction that results in
     the Common Stock no longer being publicly traded, at the sole discretion of
     the Committee,  and on such terms and  conditions as it deems  appropriate,
     the Committee may provide either by the terms of an Award granted under the
     Plan or by a resolution  adopted prior to the occurrence of such event that
     upon such event, such Award shall be assumed by the successor  corporation,
     or a Parent or Subsidiary thereof, or shall be substituted for by a similar
     Award,  covering  the stock of the  successor  corporation,  or a Parent or
     Subsidiary thereof, with appropriate  adjustments as to the number and kind
     of shares and exercise or Award prices.

     14.  Change in  Control.  In the event of a Change in Control and except as
the Committee (as constituted  immediately  prior to such Change in Control) may
otherwise  determine  in  its  sole  discretion,  (i)  all  Stock  Options  then
outstanding  shall  become  fully  exercisable  as of the date of the  Change in
Control,  whether or not then exercisable,  (ii) all restrictions and conditions
of all Restricted  Stock Awards then  outstanding  shall lapse as of the date of
the Change in Control and (iii) all Performance  Share Awards shall be deemed to
have been fully earned as of the date of the Change in Control.

     15.  Amendment of the Plan. The Board may at any time and from time to time
terminate, modify, or amend the Plan in any respect, except that no termination,
modification or amendment  shall be effective  without  shareholder  approval if
such approval is required to comply with any law,  regulation or stock  exchange
rule. No  termination  or amendment of the Plan shall,  without the consent of a
Participant  to whom any Awards shall  previously  have been granted,  adversely
affect his or her rights under such Awards.

     16. Miscellaneous.

          (a) Tax Withholding.  (i) The Company and its Subsidiaries  shall have
     the right to deduct from any cash  payment made under the Plan any federal,
     state or local taxes of any kind  required to be withheld  with  respect to
     such payment.  It shall be a condition to the  obligation of the Company to
     deliver  shares of Common  Stock  pursuant to any Award under the Plan that
     the  recipient  of such  Award  pay to the  Company  such  amount as may be
     required by the Company for the purpose of satisfying any liability for any
     such  withholding  taxes.  Any Award granted under the Plan may require the
     Company, or permit the recipient of such Award to elect, in accordance with
     any applicable  rules  established by the Committee,  to withhold or to pay
     all or a part of the amount of such  withholding  taxes in shares of Common
     Stock, provided, however, that regardless of whether set forth in the Award
     Agreement,  any person subject to Section 16 of the Exchange Act shall have
     the  unfettered  right but not the  obligation  to direct  and  compel  the
     Company to withhold,  or to accept from such person,  such number of shares
     of Common Stock valued at the Fair Market Value on the date of such payment
     as is necessary to pay, in whole or in part, such person's  withholding tax
     obligation.  Except for elections made by persons  subject to Section 16 of
     the Exchange Act,  elections by all other Participants may be denied by the
     Committee  in its  sole  discretion,  or may be  made  subject  to  certain
     conditions  specified by the Committee.  Neither the Board of Directors nor
     the Committee  shall have any  discretion  with respect to the elections by
     persons  subject  to  Section  16 of the  Exchange  Act in order  that such
     transactions  shall  qualify  for the  exemption  from  short-swing  profit
     liability  pursuant to the "disposition to the issuer"  exemption set forth
     at Rule 16b-3(e) promulgated under Section 16 of the Exchange Act.

               (ii) The applicable Award Agreement for an Incentive Stock Option
          shall provide that if a Participant  makes a  disposition,  within the
          meaning of Section 424(c) of the Code and the regulations  promulgated
          thereunder,  of any share of Common Stock  issued to such  Participant
          pursuant to the exercise of an Incentive  Stock Option  within the two
          (2)-year  period  commencing on the day after the date of the grant or
          within the one (1)-year period commencing on the day after the date of
          transfer of such share of Common Stock to the Participant  pursuant to
          such exercise,  the  Participant  shall,  within ten (10) days of such
          disposition, notify the Company thereof, by delivery of written notice
          to the Company at its principal executive office.

          (b) Loans.  On such terms and  conditions  as shall be approved by the
     Committee,  the  Company  may  directly  or  indirectly  lend  money  to  a
     Participant  to  accomplish  the purposes of the Plan,  including to assist
     such  Participant  to acquire or carry shares of Common Stock acquired upon
     the exercise of Stock Options granted hereunder, and the Committee may also
     separately  lend money to any  Participant to pay taxes with respect to any
     of the transactions contemplated by the Plan.

          (c) No  Right  to  Grants  or  Employment.  No  Eligible  Employee  or
     Participant shall have any claim or right to receive grants of Awards under
     the  Plan.  Nothing  in the Plan or in any Award or Award  Agreement  shall
     confer  upon any  employee of the  Company or any  Subsidiary  any right to
     continued  employment with the Company or any  Subsidiary,  as the case may
     be, or  interfere  in any way with the right of the Company or a Subsidiary
     to terminate the  employment  of any of its employees at any time,  with or
     without cause.

          (d) Unfunded  Plan.  The Plan shall be unfunded and the Company  shall
     not be required to segregate any assets that may at any time be represented
     by Awards under the Plan.  Any  liability of the Company to any person with
     respect  to any  Award  under  the  Plan  shall be  based  solely  upon any
     contractual  obligations that may be effected pursuant to the Plan. No such
     obligation  of the Company  shall be deemed to be secured by any pledge of,
     or other encumbrance on, any property of the Company.

          (e) Other Employee Benefit Plans.  Payments  received by a Participant
     under any Award made  pursuant to the  provisions  of the Plan shall not be
     included in, nor have any effect on, the  determination  of benefits  under
     any other  employee  benefit  plan or similar  arrangement  provided by the
     Company.

          (f)  Securities  Law  Restrictions.  The  Committee  may require  each
     Eligible  Employee  purchasing or acquiring shares of Common Stock pursuant
     to a Stock  Option or other Award under the Plan to  represent to and agree
     with the Company in writing that such  Eligible  Employee is acquiring  the
     shares for investment and not with a view to the distribution  thereof. All
     certificates  for shares of Common Stock  delivered under the Plan shall be
     subject  to  such  stock-transfer  orders  and  other  restrictions  as the
     Committee  may deem  advisable  under  the  rules,  regulations,  and other
     requirements of the Securities and Exchange Commission,  the New York Stock
     Exchange or any other stock  exchange  upon which the Common  Stock is then
     listed,  and any  applicable  federal  or  state  securities  law,  and the
     Committee may cause a legend or legends to be put on any such  certificates
     to make  appropriate  reference to such  restrictions.  No shares of Common
     Stock shall be issued  hereunder  unless the Company shall have  determined
     that such issuance is in compliance with, or pursuant to an exemption from,
     all applicable federal and state securities laws.

          (g) Compliance with Rule 16b-3.  Notwithstanding anything contained in
     the Plan or any Award Agreement to the contrary, if the consummation of any
     Award under the Plan would result in the possible  imposition  of liability
     on a  Participant  pursuant  to  Section  16(b) of the  Exchange  Act,  the
     Committee  shall have the right, in its sole  discretion,  but shall not be
     obligated,  to defer such transaction to the extent necessary to avoid such
     liability, but in no event for a period in excess of 180 days.

          (h) Deductibility Under Code Section 162(m).  Awards granted under the
     Plan to Eligible Employees which the Committee  reasonably  believes may be
     subject to Section 162(m) of the Code shall not be exercisable, and payment
     under the Plan in connection  with such an Award shall not be made,  unless
     and until the Committee has  determined  in its sole  discretion  that such
     exercise  or payment  would no longer be  subject to Section  162(m) of the
     Code.

          (i) Award Agreement.  Each Eligible Employee  receiving an Award under
     the Plan shall enter into an Award  Agreement  in a form  specified  by the
     Committee  agreeing to the terms and conditions of the Award and such other
     matters as the Committee shall, in its sole discretion,  determine.  In the
     event of any conflict or inconsistency  between the Plan and any such Award
     Agreement,  the  Plan  shall  govern,  and the  Award  Agreement  shall  be
     interpreted to minimize or eliminate any such conflict or inconsistency.

          (j) Costs of Plan.  The costs and expenses of  administering  the Plan
     shall be borne by the Company.

          (k) Governing  Law.  Except as to matters of federal law, the Plan and
     all  actions  taken  thereunder  shall  be  governed  by and  construed  in
     accordance with the laws of the State of Delaware  without giving effect to
     conflicts of law principles.

          (l) Effective  Date. The Plan as amended and restated  herein shall be
     effective on August 3, 2000 (the "Effective Date").

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