Document:

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                                                                   Exhibit 10.18

                                                                October 24, 1997

                                  PEARSON INC.

                     SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

     Pearson Inc. establishes, as of January 1, 1997, the Pearson Inc.
Supplemental Executive Retirement Plan (the "Plan") for the purpose of providing
benefits for certain executives selected by the Board of Directors of Pearson
Inc. in excess of those benefits that would be provided to these executives
under the qualified plans maintained by Pearson Inc. and its affiliated
companies.

     This Plan is intended to benefit only employees that are included in a
select group of management or highly compensated employees.

ARTICLE 1. - DEFINITIONS

All the terms used in this Plan shall have the same meaning as used in the
Pearson Inc. Pension Plan except as follows:

1.1.   ADOPTING EMPLOYER. The Company and any other company listed on Schedule
       A. A company shall be included as an Adopting Employer with respect to
       the period on and after its adoption date specified in Schedule A.

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1.3.  APPLICABLE DB PLAN. The Qualified DB Plan in which a Participant
      participates. In the case of a Participant that does not participate in a
      Qualified DB Plan his Applicable DB Plan shall be deemed to be the
      Pearson Plan.

1.4.  AVERAGE ANNUAL COMPENSATION. The Participant's average annual SERP
      Compensation for the last five consecutive years ending with or within
      the year in which the Participant has a Termination of Employment. In the
      case of a Participant who is employed for less than five Plan Years, his
      Average Annual Compensation shall be based on his entire period of
      service.

1.5.  BENEFITS COMMITTEE. The committee appointed by the Company to administer
      the Plan under Article 8. If the Company does not appoint a committee the
      Plan shall be administered by the Company.

1.6.  BENEFIT SERVICE. The number of years of service credited under this Plan
      for purposes of Article 3 equal to the sum of: (a) the number of years of
      a Participant's benefit accrual service determined under the Applicable
      DB Plan and (b) any additional service for benefit accrual purposes
      wanted to the Participant by the Board.

1.7.  COMPANY. Pearson Inc. and any successor thereto by merger, consolidation
      or otherwise.

1.8.  DEFINED CONTRIBUTION PLAN. A qualified defined contribution plan (or plan
      component) maintained by the Company or an Affiliated Company. For
      purposes of this Plan a Defined Contribution Plan shall not include a
      plan (or plan component) to the extent that is subject to Section 401(k)
      or 401(m) of the Code.

1.9.  EMPLOYEE. An employee of the Company or any other Adopting Employer.

1.10. GATT Factors. The following actuarial factors: (a) an interest rate equal
      to the annual rate of interest on 30-year Treasury securities for the
      month of September immediately preceding the

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      Plan Year in which the Participant's Annuity Starting Date occurs and
      (b) a mortality rate based on the unisex table derived from the 1983
      Group Annuity Mortality Table by taking the arithmetic average of male
      and female mortality rates, or any other table prescribed by the
      Secretary of Treasury as the applicable mortality table under Section
      417(e)(3) of the Code.

1.11. PARTICIPANT. A Restoration Plan Participant or a Supplemental Plan
      Partcipant.

1.12. PEARSON PLAN. The Pearson Inc. Pension Plan, or any successor plan
      thereto.

1.13. PLAN. The Pearson Inc. Supplemental Executive Retirement Plan.

1.14. PLAN YEAR. A calendar year.

1.15. PRIMARY INSURANCE BENEFIT. The primary insurance benefit payable under
      the Social Security Act upon a Participant's attainment of age 65. In the
      event that a Participant elects under Article 5 to receive his
      distribution prior to his attainment of age 65, then the primary insurance
      benefit shall be calculated by imputing wages for the period of time from
      the date of such distribution forward to the Participant's attainment of
      age 65. Computation of the primary insurance benefit may, in the
      discretion of the Benefits Committee, reflect an assumption as to
      earnings history prior to employment by the Company or an Affiliated
      Company. Amounts payable under social insurance programs of foreign
      countries may, in the discretion of the Benefits Committee, be treated as
      if paid under the U.S. Social Security System.

1.16. QUALIFIED BENEFIT. The benefit determined under (a) or (b) as set forth
      below:

      (a) In the case of a Participant who is a participant in a Qualified DB
      Plan, the Participant's Qualified DB Benefit.

      (b) In the case of a Participant who does not participate in a Qualified
      DB Plan then (1) solely for purposes of Section 3.2(a) his Qualified
      Benefit shall be a Qualified DB Benefit determined

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      as though he were a participant in the Pearson Plan, but based on SERP
      Compensation and (2) for all other purposes of this Plan (including, but
      not limited to Sections 3.2(b), 3.3(a)(2)(B) and 3.3(b)(2)(B)), his
      Qualified Benefit shall be his Qualified DC Benefit.

1.17. QUALIFIED DB BENEFIT. The Participant's benefit under the Qualified DB
      Plan in which he participates. Subject to the following sentence, the
      amount of a Qualified DB Benefit shall be determined based on the form and
      timing of the distribution elected under Article 5 (regardless of the form
      and timing which he actually elects under the Qualified DB Plan) using the
      actuarial factors specified in the Qualified DB Plan. In the case of
      benefits attributable to a Qualified DB Plan other than the Pearson Plan
      that are distributed in the form of a single cash distribution, the
      present value of that benefit shall be determined based on GATT Factors.

1.18. QUALIFIED DB PLAN. A Defined Benefit Plan which is listed on Schedule B.

1.19. QUALIFIED DC BENEFIT. The benefit amount attributable to a Participant's
      account balance under the Defined Contribution Plan in which he
      participates. Subject to the following sentence, the amount of a Qualified
      DC Benefit shall be determined based on the form and timing of the
      distribution elected under Article 5 (regardless of the form and timing
      which he actually elects under the Defined Contribution Plan) using the
      actuarial factors specified in the Pearson Plan. In the case of a benefit
      in the form of a single cash distribution, the amount of the Qualified DC
      Benefit shall be equal to the value of the Participant's account balance
      under the Defined Contribution Plan as of the Valuation Date immediately
      following the Participant's Annuity Starting Date.

1.20. RESTORATION BENEFIT. The benefit provided under Section 3.2 of this Plan.

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1.21. RESTORATION PLAN PARTICIPANT. An Employee who is not a Supplemental Plan
      Participant and who is designated as a Restoration Plan Participant by the
      Board. Such Participant shall only be eligible to receive the Restoration
      Benefit under Section 3.2.

1.22. SERP BENEFIT. The benefit specified under Section 3.1 of the Plan.

1.23. SERP COMPENSATION. An Employee's compensation as defined under the
      Applicable DB Plan but determined as follows: (a) without regard to the
      limits under Section 401(a)(17) of the Code that would otherwise apply,
      and (b) including bonus mounts up to 50% of the Employee's base salary on
      a basis consistent with similar bonus inclusion determinations under such
      Applicable DB Plans.

1.24. SUPPLEMENTAL BENEFIT. The benefits provided under Section 3.3 of the Plan.
      A Supplemental Plan Participant shall be eligible to receive the
      Supplemental Benefit determined under either Section 3.3(a) (the "Section
      3.3(a) Supplemental Benefit") or under Section 3.3(b) (the "Section 3.3(b)
      Supplemental Benefit") as designated by the Board at the time a
      Participant becomes a Supplemental Plan Participant.

1.25. SUPPLEMENTAL PLAN PARTICIPANT. An Employee who is designated as a
      Supplemental Plan Participant by the Board. A Supplemental Plan
      Participant shall be eligible to receive a Restoration Benefit under
      Section 3.2. In addition, a Supplemental Plan Participant shall be
      eligible to receive a Supplemental Benefit.

1.26. SURVIVOR BENEFIT. The benefit payable under Article 6 to a Participant's
      Beneficiary under Article 7.

1.27. TERMINATION OF EMPLOYMENT. A Participant's termination of employment for
      any reason with the Company and all Affiliated Companies.

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1.28. VESTED INTEREST. The nonforfeitable portion of a Participant's SERP
      Benefit determined under Article 4.

1.29. VESTING SERVICE. The number of years of service credited under this Plan
      for purposes of Article 4 equal to sum of: (a) the number of years of a
      Participant's vesting service under the Applicable DB Plan and (b) any
      additional service for vesting purposes granted to the Participant by the
      Board.

ARTICLE 2. - ELIGIBILITY

2.1.  RESTORATION PLAN PARTICIPANT. An Employee shall become eligible to
      receive Restoration Benefits under Section 3.2 of the Plan upon being
      designated as a Restoration Plan Participant by the Board.

2.2.  SUPPLEMENTAL PLAN PARTICIPANT. An Employee shall become eligible to
      receive Restoration Benefits under Section 3.2 and Supplemental Benefits
      under Section 3.3 of the Plan upon being designated as a Supplemental Plan
      Participant by the Board. At the time an Employee is designated as a
      Supplemental Plan Participant, the Board shall specify whether he is
      eligible for the Section 3.3(a) Supplemental Benefit or the Section 3.3(b)
      Supplemental Benefit.

ARTICLE 3. - SERP BENEFIT

3.1   SERP BENEFIT. A Participant's SERP Benefit shall be equal to the sum of:
      (a) his Restoration Benefit; and (b) in the case of a Supplemental Plan
      Participant, his Supplemental Benefit.

3.2.  RESTORATION BENEFIT. A Participant shall be entitled to receive a
      Restoration Benefit equal in amount to the excess of: (a) the amount of
      the Qualified Benefit the Participant would have

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      received if his benefit were determined based on Benefit Service and
      without regard to the limitations imposed by Sections 401(a)(17) or 415 of
      the Code, over (b) the amount of the Participant's Qualified Benefit.'

3.3.  SUPPLEMENTAL SERP BENEFITS. A Supplemental Plan Participant shall be
      entitled to receive either a Section 3.3(a) Supplemental Benefit or a
      Section 3.3(b) Supplemental Benefit as described in paragraphs (a) and (b)
      below:

            (a) SECTION 3.3(a) SUPPLEMENTAL BENEFIT. A Section 3.3(a)
      Supplemental Benefit shall be equal to the difference between (1) and
     (2) as described below.

                  (1) The product of (A) the excess of: (i) 1.33% of the
            participant's Average Annual Compensation; over (ii) 3.33% of his
            Primary Insurance Benefit; and (B) the number of years, not in
            excess of 30, of the Participant's Benefit Service; over

                  (2) The sum of the amount of: (A) the Participant's
            Restoration Benefit; and (B) the Participant's Qualified Benefit.

            (b) SECTION 3.3(b) SUPPLEMENTAL BENEFIT. A Section 3.3(b)
      Supplemental Benefit shall be equal to the difference between (1) and
      (2) as described below:

                  (1) the product of (A) the excess of: (i) 2% of the
            Participant's Average Annual Compensation; over (ii) and 3.33% of
            his Primary Insurance Benefit; and (B) the number of years not in
            excess of 30 of the Participant's Benefit Service; over

                  (2) The sum of the amount of the: (A) Participant's
            Restoration Benefit and (B) the Participant's Qualified Benefit.

The benefit amounts under Section 3.3(a)(1) and 3.3(b)(1) shall be determined
as a benefit payable in the form and at the time elected under Article 5
based on the actuarial factors specified in the

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Participant's Applicable DB Plan, except that in the case of distribution in
the form of a lump sum the amounts under Section 3.3(a)(1) and 3.3(b)(1) shall
be converted to a lump sum based on GATT Factors.

ARTICLE 4. - VESTING

      A Participant's SERP Benefit shall become nonforfeitable upon the
earliest of (a) his being credited with five years of Vesting Service (b) his
attainment of age 65 if he is an employee on or after that date, (c) his
incurrence of a Permanent Disability while an employee, of (d) his death while
an employee. [Could vest upon change in control, but would require an
appropriate definition] [Also could include a forfeiture if employee terminates
for cause].

ARTICLE 5. - FORM AND TIMING OF DISTRIBUTION

5.1.  FORM OF DISTRIBUTION. A Participant may elect to receive distribution of
      his Vested Interest in one of the annuity forms described in the
      Applicable DB Plan or in the form of a single cash distribution
      immediately following his Termination of Employment.

5.2.  TIMING OF DISTRIBUTION. Distribution of a Participant's Vested Interest
      shall commence as of the date elected by the Participant. A Participant
      shall be entitled to elect to receive distributions of his Vested Interest
      as of any date on which he would be eligible to receive such distribution
      under the Applicable DB Plan, but in no event shall the distribution
      commence after a Participant's Normal Retirement Date (or, if later, his
      Termination of Employment). In addition, a Participant shall be entitled
      to elect to receive a single cash

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      distribution immediately following his Termination of Employment (whether
      or not such option was available under the Applicable DB Plan).

5.3.  ELECTION OF FORM AND TIMING OF DISTRIBUTION. A Participant's election
      regarding the form and timing of his distribution shall be made upon his
      becoming a Participant and such election may be changed at any time that
      is at least one year prior to the Participant's Annuity Starting Date. In
      the event that a Participant changes his election within the one year
      prior to his Annuity Starting Date, then such change will not be valid and
      his prior election will control. In the event that a Participant has not
      elected a distribution, his benefit will be distributed in the form of an
      immediate lump sum distribution.

ARTICLE 6. - SURVIVOR BENEFITS

6.1   SURVIVOR BENEFIT. If a married Participant with a Vested Interest dies
      before he starts to receive his SERP Benefit, then his Beneficiary shall
      be entitled to receive a Survivor Benefit. The Survivor Benefit shall be
      equal to the survivor annuity that the Participant's Beneficiary would
      have received under this Plan, if the Participant had a Termination of
      Employment on the day before his death (or, if earlier, his actual
      Termination of Employment) and elected to receive payment of his Vested
      Interest in the form of a Qualified Joint and Survivor Annuity as of the
      date of his death or, if later, the date on which he would first have
      been eligible to receive a distribution under the Applicable DB Plan if
      he had survived. [Alternative approach: The Survivor Benefit shall be the
      amount that the Participant would have received if he had terminated
      employment voluntarily on

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      the day prior to his death and elected an immediate lump sum distribution
      of his SERP benefit.]

6.2   DISTRIBUTION OF SURVIVOR BENEFIT. Distribution of a Survivor Benefit
      shall commence as soon as practicable after a Participant's death. Payment
      of this Survivor Benefit shall be as follows: (a) if the Beneficiary is
      the Participant's spouse, a life annuity for the spouse's life unless the
      spouse elects at least one year prior to the Participant's death to
      receive such benefit as a single cash distribution, and (b) if the
      Beneficiary is not the Participant's Spouse, a single cash distribution.

      If the Survivor Benefit is paid in the form of an annuity and if it
      commences before the date the Participant would have been eligible for a
      benefit distribution under the Applicable DB Plan it shall be adjusted so
      that the Survivor Benefit is the actuarial equivalent of a single life
      annuity payable for the spouse's life commencing on the date the
      Participant would have been eligible to receive his distribution under
      such plan, using the appropriate actuarial equivalence basis under such
      plan.

      If the Survivor Benefit is paid as a lump sum, this benefit shall be
      computed based on the actuarial factors applicable for determining the
      present value of a Qualified Benefit under Section 3.2(a).

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ARTICLE 7.- BENEFICIARY DESIGNATION

7.1   BENEFICIARY DESIGNATION. Each Participant shall have the right, at any
      time, to designate any person or persons as his Beneficiary or
      Beneficiaries (both principal as well as contingent) to whom payment under
      this Plan shall be paid in the event of his death prior to complete
      distribution of the benefits due to him under the Plan. Any Beneficiary
      designation may be changed by a Participant by the written filing of such
      change on a form prescribed by the Company. The filing of a new
      Beneficiary designation form will cancel all Beneficiary designations
      previously filed.

7.2.  NO BENEFICIARY DESIGNATION. If a Participant fails to designate a
      Beneficiary as provided above, or if all designated Beneficiaries
      predecease the Participant, then the Participant's designated Beneficiary
      shall be deemed to be the persons surviving him in the first of the
      following classes in which there is a survivor on a per stripes basis:

      (a) The surviving spouse;

      (b) The Participant's children; or

      (c) The Participant's personal representative (executor or administrator).

7.3   EFFECT OF PAYMENT. The payment to the deemed Beneficiary under Section
      6.2 shall completely' discharge the Employer's obligations under this
      Plan.

ARTICLE 8. - ADMINISTRATION

8.1   ADMINISTRATION. The Plan shall be administered by the Benefits Committee
      appointed by the Board. The Benefits Committee shall have full
      discretionary authority to determine all questions arising in connection
      with the Plan, including its interpretation and the

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      determination of eligibility for benefits, and may adopt procedural rules
      and may employ and rely upon such legal counsel, actuaries, accountants
      and agents as it may deem advisable to assist in the administration of the
      Plan. Subject to Section 7.2, decisions of the Benefits Committee shall be
      final, conclusive and binding on all persons including Participants, their
      Beneficiaries, and the Company. A member of the Benefits Committee who is
      also a Participant in the Plan must abstain from voting on any matter
      relating specifically to his own benefits (but not benefits in general)
      under the Plan. The Benefits Committee may appoint one or more agents to
      assist in plan administration.

8.2.  CLAIMS PROCEDURE.

      (a) CLAIM FOR BENEFITS. Any claim for benefits under this Plan shall be
      made in writing to the Benefits Committee. If a claim for benefits is
      wholly or partially denied, the Benefits Committee shall so notify the
      Participant or Beneficiary within 90 days after receipt of the claim. The
      notice of denial shall be written in a manner calculated to be understood
      by the Participant or Beneficiary and shall contain (1) the specific
      reason or reasons for denial of the claim, (2) specific references to the
      pertinent Plan provisions upon which the denial is based, (3) a
      description of any additional material or information necessary to perfect
      the claim together with an explanation of why such material or information
      is necessary and (4) an explanation of the claims review procedure.

      (b) REVIEW OF CLAIM. Within 60 days after the receipt by the Participant
      or Beneficiary of notice of denial of a claim under paragraph (a) (or at
      such later time as may be reasonable in view of the nature of the benefit
      subject to the claim and other circumstances), the Participant or
      Beneficiary may (1) file a request with the Benefits Committee that it
      conduct a full and fair

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      review of the denial of the claim, (2) review pertinent documents and (3)
      submit questions and comments to the Benefits Committee in writing.

      (c) DECISION AFTER REVIEW. Within 60 days after the receipt of a request
      for review under Paragraph (b), the Benefits Committee shall deliver to
      the Participant or Beneficiary a written decision with respect to the
      claim, except that if there are special circumstances (such as the need to
      hold a hearing) which require more time for processing the 60-day period
      shall be extended to 120 days upon notice to the Participant or
      Beneficiary to that effect. The decision shall be written in a manner
      calculated to be understood by the Participant or Beneficiary and shall
      (1) include the specific reason or reasons for the decision and (2)
      contain a specific reference to the pertinent Plan provisions upon which
      the decision is based.

8.3   INDEMNIFICATION. The members of the Benefits Committee and its agents
      shall be indemnified and held harmless by the Company against and from any
      and all loss, cost, liability, or expense that may be imposed upon or
      incurred by them in connection with or resulting from any claim, action,
      suit, or proceeding to which they may be a party or in which they may be
      involved by reason of any action taken or failure to act under this Plan
      and against and from any and all amounts paid by them in settlement (with
      the Company's written approval) or paid by them in satisfaction of a
      judgment in any action suit, or proceeding. The foregoing shall not be
      applicable to any person if the loss, cost, liability or expense is due to
      such person's gross negligence or willful misconduct.

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ARTICLE 9.- AMENDMENT AND TERMINATION OF PLAN

The Company may at any time amend or terminate the Plan in whole or in part;
provided, however, that no amendment or termination shall be effective to
decrease or restrict any amount credited to a Participant's Accounts at the
time of such amendment or termination.

ARTICLE 10.- MISCELLANEOUS

10.1  UNSECURED GENERAL CREDITOR. Participants and their Beneficiaries shall
      have no legal or equitable rights, interest or claims in any property or
      assets of the Company establish or accumulate to aid in providing plan
      benefits. The Company's contractual obligation under the Plan shall be
      merely that of an unfunded and unsecured promise of the Company to pay
      money in the future. Benefits shall be reflected on the accounting records
      of the Company. Nothing contained in this Plan, and no action taken
      pursuant to its provisions, shall create or be construed to create a trust
      or a fiduciary relationship of any kind between the Company and a
      Participant or any other person.

10.2. NONASSIGNABILITY. Neither a Participant nor any other person shall have
      any right to commute, sell, assign, transfer, pledge, anticipate, mortgage
      or otherwise encumber, transfer, hypothecate or convey in advance of
      actual receipt the amounts, if any, payable hereunder, or any part
      thereof, which are, and all rights to which are, expressly declared to be
      unassignable and non-transferable. No part of the amounts payable shall,
      prior to actual payment, be subject to seizure or sequestration for the
      payment of any debts, judgments, alimony or separate maintenance owed by a
      Participant or any other person,

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      nor be transferable by operation of law in the event of a Participant's or
      any other person's bankruptcy or insolvency.

10.3  NOT A CONTRACT OF SERVICE. The terms and conditions of this Plan shall
      not be deemed to constitute a contract of service between the Company and
      the Participant, and the Participant (or his Beneficiary) shall have no
      rights against the Company except as may otherwise be specifically
      provided herein. Moreover, nothing in this Plan shall be deemed to give a
      Participant the right to be retained in the employment of the Company.

10.4. MERGER, CONSOLIDATION OR ACQUISITION. In the event of a merger,
      consolidation or acquisition where the Company is not the surviving
      corporation, unless the successor or acquiring corporation shall elect to
      continue and carry on the Plan, this Plan shall terminate and no
      additional benefits shall accrue. Unpaid benefits which have been accrued
      up to the date of the merger, consolidation or acquisition shall be paid
      as scheduled unless the successor or acquiring corporation elects to
      accelerate payment.

10.5  PROTECTIVE PROVISIONS. A Participant (or Beneficiary) will cooperate
      with the Company by furnishing any and all information requested by the
      Company, in order to facilitate the payment of benefits hereunder.

10.6. TAX WITHHOLDING. The Company may withhold from a payment any federal,
      state or local taxes required by law to be withheld with respect to such
      payments and such sums as the Company may reasonably estimate as necessary
      to cover any taxes for which the Company may be liable and which may be
      assessed with regard to such payment.

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10.7  APPLICABLE LAW. The Plan, and any Participation Agreement related thereto,
      shall be governed by the laws of the State of New York without regard to
      the principles of conflicts of law.

10.8. SEPARABILITY. If any provision of this Plan is held invalid or
      unenforceable, to the extent necessary to effectuate the purposes of this
      Plan, its invalidity or unenforceability shall not affect any other
      provisions of the Plan and the Plan shall be construed and enforced as if
      such provisions had not been included therein.

10.9  USAGE. Whenever applicable, the masculine gender, when used in the Plan,
      shall include the feminine or neuter gender, and the singular shall
      include the plural.

      IN WITNESS WHEREOF, the Company has caused this instrument to be executed
      by its duly authorized officers in a number of copies, each of which shall
      be deemed an original but all of which shall constitute one and the same
      instrument, this _________ day of ________________, ____, but effective
      as of the first day of January, 1998.

                                          PEARSON INC.

                                          By ___________________________________

ATTEST: __________________________

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                                   SCHEDUIE A

                           LIST OF ADOPTING EMPLOYERS

           NAME OF ADOPTING EMPLOYER          ADOPTION DATE
           -------------------------          -------------
                  PEARSON INC.               JANUARY 1, 1997

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                                   SCHEDULE B

                               QUALIFIED DB PLANS

THE PEARSON INC. PENSION PLAN

ADDISON-WESLEY PUBLISHING COMPANY, INC. RETIREMENT PLAN<PAGE>
                                                             EXHIBIT NO. 10.7(a)

  Confidential Materials omitted and filed separately with the Securities and
                Exchange Commission. Asterisks denote omissions.

          SAPIENT CORPORATION 1H 2001 PERFORMANCE INCENTIVE BONUS PLAN

A.   PURPOSE

Sapient Directors, Vice Presidents, executive officers, Client Relations people
and Integrated Strategy (IS) people receive cash compensation for their
contributions to Sapient in two components:

     1.   Base Salary
     2.   Performance Incentive (PI)

The purpose of the 1H Sapient 2001 Performance Incentive Bonus Plan (the Plan)
focuses specifically on PI, which is intended to reward eligible participants
for specific Sapient outcome performance as outlined in this Plan. The
objectives of this Plan are:

     -    To align all members of the leadership team of Sapient around the same
          business objectives
     -    Reward teamwork and joint accountability

CONFIDENTIALITY: This Plan contains highly confidential information on revenue
matters and other Sapient business information. This Plan may not be shared with
anyone inside or outside of Sapient, and each Plan participant is required to
keep this Plan and its contents confidential at all times.

B.   PLAN PERIOD

The Plan is effective January 1, 2001 through June 30, 2001 (the Plan Period).
PI will be paid once for the Plan Period.

C.   ELIGIBILITY

You are eligible to participate in the Sapient 2001 PI Compensation Plan if you
are a Director, Executive Vice President, Senior Vice President, Vice President,
Executive Officer, Client Relations person or IS person employed by Sapient in a
covered role (Plan participants) within the Plan Period. Plan participants must
be employed in an eligible role and qualified under the Plan on the day payouts
are made to be paid any PI. If a Plan participant ceases to be eligible and
qualified under the Plan on or before the day payouts are made, then he or she
will not receive any PI for the Plan Period.

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     1. QUALIFICATION FOR PARTICIPATION: A Director, Executive Vice President,
     Senior Vice President, Vice President, Executive Officer, Client Relations
     person or IS person (including non-Director and non-Vice President
     positions) is a qualified Plan participant if that individual has been
     assigned to the Sapient role described in Section I, is in compliance with
     Sapient policies and the terms of this Plan, has received a satisfactory
     rating at his or her last performance review, has not left the Plan and, in
     the case of Client Relations people who have individualized revenue
     targets, has signed and returned to the Business Unit Leader, or
     appropriate Vice President both originals of this Plan and Section J.

     2. LEAVING THE PLAN: If a Plan participant's employment with Sapient ends,
     voluntarily or involuntarily, for any reason, he or she is no longer a Plan
     participant as of the effective date that employment ends. Examples of
     reasons for the end of employment include resignation, death, layoff,
     long-term disability or discharge. Other events may also result in the end
     of employment. In the event that employment ends prior to the date payouts
     are made for the Plan Period and an individual has received a PI draw for
     the Plan Period, then the individual is responsible for repayment of the PI
     draw to Sapient within 30 days after the end of employment. (For more
     information on draws, see below under "How the Plan Works" in Section D.)
     Any amount due may be deducted from the individual's compensation, salary,
     vacation pay, severance (if any) and any other amounts as may be paid by
     Sapient to the individual. A Plan participant also leaves the Plan if he or
     she changes to a Sapient role or job that is not eligible under this Plan.
     If a person remains employed by Sapient but moves to a role that is not
     eligible under this Plan, then PI targets and metrics will be pro-rates
     based on the time in the eligible role for the relevant part of the Plan
     Period. In the event of a switch to a role not eligible under the Plan, all
     draws will cease effective immediately upon the change in role unless draws
     are permitted under the new PI plan chosen. In the event that the
     individual has received a PI draw in excess of his or her actual PI as
     calculated for the partial period, then the individual is responsible for
     repayment of the excess to Sapient within 60 days after the day payouts are
     made or Sapient notifies the individual of the excess draws, and any such
     excess may be deducted from the individual's compensation.

     If a Plan participant remains on this Plan for the entire Plan Period but
     during that fiscal year switches to a different role also covered by this
     Plan, then that Plan participant will be paid using the metrics for each
     role and pro-rated for the time served in each role.

     3. LEAVES OF ABSENCE AND SHORT-TERM DISABILITY: Plan participants who are
     paid on leave (i.e., personal day, company-approved vacation, paid military
     duty, jury duty or bereavement) continue to participate in the Plan and to
     receive payments under this Plan.

     If a Plan participant goes on short-term disability leave, that person
     ceases to participate in the Plan on the last day of the completed time
     period prior to when

                                       2
<PAGE>

     short-term disability begins. Any draws received prior to the start of
     short term disability may be retained by the individual. All PI draws cease
     as of the date the employee goes on short-term disability, because
     short-term disability payments are calculated based on amounts that include
     the prior year's PI payments whether or not the employee was on the Plan.

     If a Plan participant goes on unpaid leave (i.e., Family and Medical leave,
     unpaid military duty or other personal leave) more than 30 days, then he or
     she is considered to have left the Plan as of the time period last
     completed through the 31st day of unpaid leave. When a Plan participant
     returns to work after unpaid leave, he or she reenters the Plan under
     transition terms to be determined by the Business Unit Leader or applicable
     Vice President.

D.   MEASUREMENT AREAS AND HOW THE PLAN WORKS

     The key measurement areas of this Plan are:

     1.   Revenue (Company, Business Unit, Individual)
     2.   Operating Margin
     3.   Client Satisfaction
     4.   People - Turnover
     5.   Individual Practice Contribution

HOW THE PLAN WORKS

     1.   Your PI targeted amount (Target PI) is determined based on your role
          and level within Sapient. You may be permitted, at the discretion of
          the Director of Compensation or Vice President of People Strategy, to
          take a draw of up to 50% of your Target PI.

     2.   You can positively or negatively affect your Target PI based on the
          level of achievement of your goals (as stated in Section J) for
          Revenue, Client Satisfaction, People-Turnover and Individual Practice
          Contribution. The result of the calculation of these four metrics is
          referred to as your "Weighted Metric PI."

     3.   Your Weighted Metric PI will then be increased or decreased based on a
          combination of Sapient's Operating Margin and Revenue attainment
          relative to the period's targets.

     4.   Any additional amounts of PI above draws taken will be paid to
          employees within 75 days of the close of the Plan Period.

Depending on role (see matrix in Section I) each Plan participant will be
assigned a Target PI. Also, depending on role, each participant will be measured
on the results at different levels within Sapient. For example, some people may
be measured on Sapient-wide results, while others may be measured at the
Business Unit level, geographic level or individual level.

The following are the descriptions for the specific measures to be used to
determine PI under this Plan.

                                       3
<PAGE>

     -    STEP 1: DETERMINING YOUR TARGET PI: Each person will have a
          pre-determined Target PI. Your Target PI is established by your
          Business Unit Leader or the Vice President or Executive Officer
          responsible for your Discipline, Business Unit or role. During
          Sapient' compensation cycles your Target PI is subject to change.

     -    STEP 2: DETERMINING YOUR PI BASED ON THE WEIGHTED METRICS: You can
          affect your PI amount based on the following metrics, achievement
          against targets and your role. Please refer to the spreadsheet
          attached as Section J for more information on your specific metrics
          under the Plan.

          CLIENT SATISFACTION

          The Client Satisfaction metric is based on the time-weighted average
          of all Client Satisfaction scores pertaining to either your clients,
          your projects, your industry or Sapient overall (depending on your
          role and as stated in your attached spreadsheet). Client Satisfaction
          scores will be weighed by the length of the project in calculating
          averages. If you do not have any Client Satisfaction scores entered by
          the end of the payout period, you will be paid at the overall company
          average for this metric. Your Client Satisfaction factor will be
          calculated based on the following:

         CLIENT SATISFACTION:    Achievement of Client Satisfaction above or
                                 below target levels will adjust this metric
                                 either upward or downward. The scores will be
                                 pro-rated between Threshold, Target and
                                 Stretch, as provided in the table below. This
                                 factor will be weighted in your overall PI
                                 determination depending on your role and the
                                 level of emphasis (see Section I).

                                 The chart below shows the Assigned Percentage
                                 based on achievement against target:

                  -------------------------------------------------------------
                  CLIENT SATISFACTION GOALS  ACTUAL SCORE   ASSIGNED PERCENTAGE

                  -------------------------------------------------------------
                                             Below [**]     [**]%
                  -------------------------------------------------------------
                  THRESHOLD                  [**]           [**]%
                  -------------------------------------------------------------
                                             [**]           [**]%
                  -------------------------------------------------------------
                                             [**]           [**]%
                  -------------------------------------------------------------
                                             [**]           [**]%
                  -------------------------------------------------------------
                                             [**]           [**]%
                  -------------------------------------------------------------
                                             [**]           [**]%
                  -------------------------------------------------------------
                  TARGET                     [**]           [**]%
                  -------------------------------------------------------------
                                             [**]           [**]%
                  -------------------------------------------------------------
                  STRETCH                    [**]           [**]%
                  -------------------------------------------------------------

                                       4
<PAGE>

         PEOPLE-TURNOVER

         The People-Turnover metric is based on the voluntary turnover in your
         geography or Sapient-wide (depending on your role and as stated in your
         attached spreadsheet), your People-Turnover factor will be calculated
         based on the following:

         PEOPLE-TURNOVER:   Achievement of People-Turnover below or above target
                            levels will adjust this metric either upward or
                            downward. The goal will be pro-rated between
                            Threshold, Target and Stretch, as provided in the
                            table below. This factor will be weighted in your
                            overall PI determination depending on your role and
                            the level of emphasis (see Section I).

                            The chart below shows the Assigned Percentage based
                            on achievement against target:

                       ---------------------------------------------------------
                         TURNOVER GOALS   ACTUAL PERCENTAGE  ASSIGNED PERCENTAGE
                       ---------------------------------------------------------
                                          [**]% and above    [**]%
                       ---------------------------------------------------------
                        THRESHOLD         [**]%              [**]%
                       ---------------------------------------------------------
                                          [**]%              [**]%
                       ---------------------------------------------------------
                                          [**]%              [**]%
                       ---------------------------------------------------------
                                          [**]%              [**]%
                       ---------------------------------------------------------
                                          [**]%              [**]%
                       ---------------------------------------------------------
                                          [**]%              [**]%
                       ---------------------------------------------------------
                        TARGET            [**]%              [**]%
                       ---------------------------------------------------------
                                          [**]%              [**]%
                       ---------------------------------------------------------
                        STRETCH           [**]%-[**]         [**]%
                       ---------------------------------------------------------

         REVENUE

         Revenue will be calculated based on the achievement of industry and/or
         Sapient-wide goals in Q2. Revenue is based on cash fees for services
         for actual work performed by Sapient on projects for clients, unless no
         binding commitment letter, contract or PO has been signed and work has
         been going on for more than 30 days, in which event such revenue will
         not be included in the calculation. Sales made and/or services provided
         that determine targets and qualify for PI calculation include sales of
         Sapient services that are in accordance with established terms and
         rates in effect at the applicable times during the Plan Period. The
         average exchange rate for the relevant period will be used for
         conversions of non-U.S. currencies. Revenue included in the calculation
         may not necessarily match revenue recorded on the financial statements.
         Should an acquisition occur in 2000 and financials consolidated, these
         numbers will be adjusted to reflect the revenue after the acquisition.
         Sapient reserves the right to change the revenue plans based on changes
         in circumstances.

                                       5
<PAGE>

         TARGET:              Will be determined on an industry and/or
                              Sapient-wide basis for Q2 and will be provided to
                              you by the person responsible for communicating
                              this Plan.

         INDUSTRY REVENUE
         THRESHOLD:           Achievement of revenue above or below revenue
                              targeted levels will affect your Industry Revenue
                              metric either upward or downward. For Industry
                              Revenues, the Performance Percentage equals Actual
                              Industry Revenue Achieved divided by Industry
                              Target Revenue. If the Performance Percentage
                              achievement is less than [**]%, the factor for
                              this metric will be 0%.

         INDIVIDUAL  REVENUE
         THRESHOLD:           Achievement of revenue above or below revenue
                              targeted levels will affect your Individual
                              Revenue metric either upward or downward. For
                              Individual Revenue, the Performance Percentage
                              equals Actual Individual Revenue Achieved divided
                              by Individual Target Revenue. If the Performance
                              Percentage achievement is less than [**]%, the
                              factor for this metric will be 0%.

         INDIVIDUAL PRACTICE CONTRIBUTION

         Your manager will have input on determining the level of achievement of
         your practice contribution goals and the difficulty of attaining your
         goals in comparison to others in your area. Based on this
         determination, you will be eligible for a discretionary level of
         payment against achievement of your goals. Goals are predefined and
         must be approved by the participant's Industry/Discipline/Team Leader
         or Vice President. Additionally, Plan participants must receive a
         satisfactory rating at their last performance review in order to
         qualify for participation in this Plan.

         INDIVIDUAL PRACTICE CONTRIBUTIONS

               ----------------------------------------------------------------
               INDIVIDUAL PRACTICE    ACHIEVEMENT           ASSIGNED PERCENTAGE
               CONTRIBUTION GOAL
               ----------------------------------------------------------------
               ----------------------------------------------------------------
               THRESHOLD              Minimally meets       [**]%-[**]%
                                      expectations
               ----------------------------------------------------------------
                                      Partially meets       [**]%-[**]%
                                      expectation
               ----------------------------------------------------------------
                                      Meets expectations    [**]%-[**]%
               ----------------------------------------------------------------

                                       6
<PAGE>

                   -------------------------------------------------------------
                   TARGET              EXCEEDS EXPECTATIONS  [**]%-[**]%
                   -------------------------------------------------------------
                   STRETCH             Dramatically Exceeds  [**]%-[**]%
                                       Expectations
                   -------------------------------------------------------------

          When Assigned Percentages have been determined for achievement under
          each of the four metrics, the Assigned Percentages are then applied
          against the PI Targets for each metric to determine each person's
          Weighted Metric PI. See Step 2 in the Example in Section H. A note on
          rounding: average Client Satisfaction scores and the People-Turnover
          metric will be rounded to two decimal places, with anything equal to
          or above a value of 5 in the third decimal place being rounded up. For
          revenue, whole dollar amounts will be used and rounded in the same
          manner. For Individual Practice Contribution, actual achievement will
          be a whole number.

     -    STEP 3: DETERMINING YOUR ADJUSTED PI AMOUNT BASED ON SAPIENT-WIDE
          MULTIPLIERS: Your Weighted Metric PI as calculated in Step 2 above
          will then be adjusted by the Sapient-wide goals and multipliers as
          outlined below. Sapient Revenue achievement and Operating Margin will
          each be weighted by [**]% to determine you Adjusted PI Amount. When
          the Sapient Revenue and Operating Margin multipliers are applied to
          your Weighted Metric PI, the Adjusted PI Amount that results will not
          be less than [**]% of the Weighted Metric PI. For example, if your
          Weighted Metric PI amount for the First Half or the Second Half is
          $[**] and the Sapient multipliers together are less than [**]%, the
          resulting Adjusted PI Amount for the applicable time period will be
          $[**].

               SAPIENT OPERATING MARGIN: The adjustment for Operating Margin is
               based on Sapient's achievement of meeting its Operating Margin
               goals in Q2. Achievement of Operating Margin above or below
               operating margin goal levels will adjust your Target PI amount
               either upward or downward. The multiplier will be pro-rated
               between Threshold, Target, Stretch and actual achievement (if
               greater than Stretch; applied as a percentage above 100%) as
               provided in the table below.

                               -------------------------------------------------
                               OPERATING MARGIN GOAL ACHIEVEMENT      MULTIPLIER
                               -------------------------------------------------
                                                     Below [**]%      [**]%
                               -------------------------------------------------
                               THRESHOLD             [**]%-[**]%      [**]%
                               -------------------------------------------------
                                                     [**]%-[**]%      [**]%
                               -------------------------------------------------
                                                     [**]%-[**]%      [**]%
                               -------------------------------------------------
                                                     [**]%-[**]%      [**]%
                               -------------------------------------------------
                               STRETCH               [**]% and above  [**]%
                               -------------------------------------------------

                                       7
<PAGE>

               SAPIENT REVENUE: The adjustment for Revenue will be calculated
               based on the achievement of Sapient-wide goals for Q2. For
               Sapient-wide Revenues, the Performance Percentage equals Actual
               Sapient Revenue Achieved divided by Sapient Target Revenue. If
               the Performance Percentage achievement is less than [**]%, the
               multiplier for this metric will be 0%.

               The mulitpliers for Sapient Operating Margin and Sapient Revenue
               will then be applied against the Weighted Metric PI to determine
               the Adjusted PI Amount. See Step 3 in the Example in Section H
               below.

     -    STEP 4: RECEIVING YOUR ADJUSTED PI AMOUNT: Any Adjusted PI Amount
          above the draws received during the First Half and the Second Half,
          respectively, will be paid to you within 75 days of the end of the
          applicable part of the Plan Period (i.e. by September 15 for the First
          Half and March 15 of the following year for the Second Half).

          NOTE ON TAXES AND WITHHOLDINGS: All PI payments are subject to
          federal, state, local, and social security taxes and other required
          deductions.

E.   REPAYMENT OF EXCESS DRAW

In the event that the fiscal year has closed and a Plan participant has received
a PI draw in excess of his or her actual PI as calculated under this Plan, and
the Plan participant continues to be eligible for and qualified to participate
in this Plan, then the Plan participant is responsible for repayment of the
excess to Sapient within 120 days after the actual PI has been calculated. Any
amounts due to Sapient after the 120-day period will be deducted from the Plan
participant's base salary. Repayment obligations in the event an individual is
no longer eligible or qualified under the Plan are described in Section C above.

F.   DISPUTES

In the event a Plan participant wishes to dispute a payment made or omitted
under this Plan, that individual must request reconsideration in writing. The
request must be given to the Business Unit Leader or applicable Vice President
within 60 days after the date the disputed amount was or would have been paid.
The Business Unit Leader or applicable Vice President will resolve the disputed
matter, upon review of the circumstances and of the available documentation. The
decision of the Business Unit Leader or applicable Vice President as to a
dispute is final.

G.   MISCELLANEOUS

This Plan does not constitute an employment agreement nor does it create any
right to employment for any specific term or otherwise. Sapient may, at its
discretion and without notice, amend or terminate this Plan or take other
actions affecting Plan participants. The Business Unit Leader or applicable Vice
President may delegate authority under this Plan to any Sapient Executive Vice
President, Senior Vice President, Vice President, Chief Financial Officer or
Chief Executive Officer.

                                       8
<PAGE>

A Plan participant may not assign this Plan or any PI payment or right to
payment. If a provision is found invalid, illegal or unenforceable, no other
provision is affected. This Plan supercedes all prior understandings,
negotiations and agreements, whether written or oral, between the Plan
participant and Sapient as to the subject matter covered by this Plan.

                                       9

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