Document:

OMEGA HEALTHCARE INVESTORS, INC.

                            2000 STOCK INCENTIVE PLAN

<PAGE>

                        OMEGA HEALTHCARE INVESTORS, INC.

                            2000 STOCK INCENTIVE PLAN

                                TABLE OF CONTENTS

                                                                           PAGE

SECTION I.  DEFINITIONS........................................................1

   1.1   DEFINITIONS...........................................................1
         -----------

SECTION 2  THE STOCK INCENTIVE PLAN............................................5

   2.1   PURPOSE OF THE PLAN...................................................5
         -------------------
   2.2   STOCK SUBJECT TO THE PLAN.............................................5
         -------------------------
   2.3   ADMINISTRATION OF THE PLAN............................................5
         --------------------------
   2.4   ELIGIBILITY AND LIMITS................................................5
         ----------------------
   2.5   NON-EMPLOYEE DIRECTOR STOCK OPTION GRANTS.............................6
         -----------------------------------------

SECTION 3  TERMS OF STOCK INCENTIVES...........................................6

   3.1   TERMS AND CONDITIONS OF ALL STOCK INCENTIVES..........................6
         --------------------------------------------
   3.2   TERMS AND CONDITIONS OF OPTIONS.......................................7
         -------------------------------
         (A)      OPTION PRICE.................................................7
                  ------------
         (B)      OPTION TERM..................................................8
                  -----------
         (C)      PAYMENT......................................................8
                  -------
         (D)      CONDITIONS TO THE EXERCISE OF AN OPTION......................8
                  ---------------------------------------
         (E)      TERMINATION OF INCENTIVE STOCK OPTION........................8
                  -------------------------------------
         (F)      SPECIAL PROVISIONS FOR CERTAIN SUBSTITUTE OPTIONS............9
                  -------------------------------------------------
   3.3   TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS.....................9
         -------------------------------------------------
         (A)      SETTLEMENT...................................................9
                  ----------
         (B)      CONDITIONS TO EXERCISE.......................................9
                  ----------------------
   3.4   TERMS AND CONDITIONS OF STOCK AWARDS.................................10
         ------------------------------------
   3.5   TERMS AND CONDITIONS OF DIVIDEND EQUIVALENT RIGHTS...................10
         --------------------------------------------------
         (A)      PAYMENT.....................................................10
                  -------
         (B)      CONDITIONS TO PAYMENT.......................................10
                  ---------------------
   3.6   TERMS AND CONDITIONS OF PERFORMANCE UNIT AWARDS......................10
         -----------------------------------------------
         (A)      PAYMENT.....................................................10
                  -------
         (B)      CONDITIONS TO PAYMENT.......................................11
                  ---------------------
   3.7   TERMS AND CONDITIONS OF PHANTOM SHARES...............................11
         --------------------------------------
         (A)      PAYMENT.....................................................11
                  -------
         (B)      CONDITIONS TO PAYMENT.......................................11
                  ---------------------
   3.8   TREATMENT OF AWARDS UPON TERMINATION OF EMPLOYMENT...................11
         --------------------------------------------------

SECTION 4  RESTRICTIONS ON STOCK..............................................11

   4.1   ESCROW OF SHARES.....................................................11
         ----------------
   4.2   RESTRICTIONS ON TRANSFER.............................................12
         ------------------------

SECTION 5  GENERAL PROVISIONS.................................................12

   5.1   WITHHOLDING..........................................................12
         -----------
   5.2   CHANGES IN CAPITALIZATION; MERGER; LIQUIDATION.......................13
         ----------------------------------------------
   5.3   CASH AWARDS..........................................................14
         -----------
   5.4   COMPLIANCE WITH CODE.................................................14
         --------------------
   5.5   RIGHT TO TERMINATE EMPLOYMENT........................................14
         -----------------------------
   5.6   NON-ALIENATION OF BENEFITS...........................................14
         --------------------------
   5.7   RESTRICTIONS ON DELIVERY AND SALE OF SHARES; LEGENDS.................14
         ----------------------------------------------------
   5.8   LISTING AND LEGAL COMPLIANCE.........................................14
         ----------------------------
   5.9   TERMINATION AND AMENDMENT OF THE PLAN................................15
         -------------------------------------
   5.10    STOCKHOLDER APPROVAL...............................................15
           --------------------
   5.11    CHOICE OF LAW......................................................15
           -------------
   5.12    EFFECTIVE DATE OF PLAN.............................................15
           ----------------------

<PAGE>

                        OMEGA HEALTHCARE INVESTORS, INC.

                            2000 STOCK INCENTIVE PLAN

                             SECTION I. DEFINITIONS

     1.1  DEFINITIONS.  Whenever  used  herein,  the  masculine  pronoun will be
          deemed to include  the  feminine,  and the  singular  to  include  the
          plural,  unless  the  context  clearly  indicates  otherwise,  and the
          following  capitalized  words and  phrases  are used  herein  with the
          meaning thereafter ascribed:

               (a) "AFFILIATE" means:

                    (1) Any Subsidiary or Parent,

                    (2)  An  entity  that   directly  or  through  one  or  more
                         intermediaries  controls, is controlled by, or is under
                         common  control with the Company,  as determined by the
                         Company, or

                    (3)  Any entity in which the Company has such a  significant
                         interest  that the  Company  determines  it  should  be
                         deemed  an  "Affiliate",  as  determined  in  the  sole
                         discretion of the Company.

               (b)  "BOARD OF  DIRECTORS"  means the board of  directors  of the
                    Company.

               (c)  "CODE" means the Internal Revenue Code of 1986, as amended.

               (d)  "COMMITTEE" means the Compensation Committee of the Board of
                    Directors.

               (e)  "COMPANY" means Omega Healthcare Investors, Inc., a Maryland
                    corporation.

               (f)  "DISABILITY" has the same meaning as provided in the
                    long-term  disability  plan  or  policy  maintained  or,  if
                    applicable,  most recently maintained, by the Company or, if
                    applicable,   any   Affiliate   of  the   Company   for  the
                    Participant.  If no long-term  disability plan or policy was
                    ever  maintained  on  behalf of the  Participant  or, if the
                    determination  of Disability  relates to an Incentive  Stock
                    Option,  Disability  means that condition  described in Code
                    Section 22(e)(3), as amended from time to time. In the event
                    of a dispute,  the  determination of Disability will be made
                    by the  Committee  and  will be  supported  by  advice  of a
                    physician  competent  in the area to which  such  Disability
                    relates.

               (g)  "DIVIDEND EQUIVALENT RIGHTS" means certain rights to receive
                    cash    payments    as    described    in    Section    3.5.

               (h)  "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
                    amended from time to time.

               (i)  "FAIR MARKET VALUE" with regard to a date means:

                    (1)  the price at which  Stock  shall have been sold on that
                         date or the last  trading  date  prior to that  date as
                         reported by the national  securities  exchange selected
                         by the  Committee on which the shares of Stock are then
                         actively  traded or, if applicable,  as reported by the
                         NASDAQ Stock Market.

                    (2)  if  such  market  information  is  not  published  on a
                         regular   basis,    the   price   of   Stock   in   the
                         over-the-counter  market  on  that  date  or  the  last
                         business  day  prior to that  date as  reported  by the
                         NASDAQ  Stock  Market  or,  if  not so  reported,  by a
                         generally accepted reporting service.

                    (3)  if Stock is not publicly traded,  as determined in good
                         faith by the  Committee  with due  consideration  being
                         given to (i) the most recent  independent  appraisal of
                         the Company,  if such appraisal is not more than twelve
                         months old and (ii) the valuation  methodology  used in
                         any such appraisal.

         For purposes of Paragraphs  (1),  (2), or (3) above,  the Committee may
         use the closing  price as of the  applicable  date,  the average of the
         high and low prices as of the  applicable  date or for a period certain
         ending on such date, the price  determined at the time the  transaction
         is processed,  the tender offer price for shares of Stock, or any other
         method which the Committee  determines is reasonably  indicative of the
         fair market value.

               (j)  "INCENTIVE  STOCK  OPTION"  means an incentive  stock option
                    within the  meaning of Section 422 of the  Internal  Revenue
                    Code.

               (k)  "OPTION" means a Non-Qualified  Stock Option or an Incentive
                    Stock Option.

               (l)  "OVER  10%  OWNER"  means an  individual  who at the time an
                    Incentive Stock Option is granted owns Stock possessing more
                    than 10% of the total  combined  voting power of the Company
                    or one of  its  Subsidiaries,  determined  by  applying  the
                    attribution rules of Code Section 424(d).

               (m)  "NON-QUALIFIED  STOCK  OPTION"  means a stock option that is
                    not an Incentive Stock Option.

               (n)  "PARENT" means any  corporation  (other than the Company) in
                    an unbroken  chain of  corporations  ending with the Company
                    if, with respect to Incentive Stock Options,  at the time of
                    the granting of the Option,  each of the corporations  other
                    than the Company  owns stock  possessing  50% or more of the
                    total  combined  voting power of all classes of stock in one
                    of the other  corporations  in such  chain.  A Parent  shall
                    include any entity  other than a  corporation  to the extent
                    permissible  under Section 424(f) or regulations and rulings
                    thereunder.

               (o)  "PARTICIPANT"  means  an  individual  who  receives  a Stock
                    Incentive hereunder.

               (p)  "PERFORMANCE   GOALS"  means  the   measurable   performance
                    objectives,  if  any,  established  by the  Committee  for a
                    Performance Period that are to be achieved with respect to a
                    Stock  Incentive  granted to a  Participant  under the Plan.
                    Performance  Goals may be described in terms of Company-wide
                    objectives  or in terms of  objectives  that are  related to
                    performance  of  the  division,  Affiliate,   department  or
                    function  within the  Company or an  Affiliate  in which the
                    Participant  receiving the Stock Incentive is employed or on
                    which the Participant's efforts have the most influence. The
                    achievement  of the  Performance  Goals  established  by the
                    Committee  for any  Performance  Period  will be  determined
                    without  regard to the effect on such  Performance  Goals of
                    any  acquisition or disposition by the Company of a trade or
                    business,  or of substantially  all of the assets of a trade
                    or  business,  during the  Performance  Period  and  without
                    regard  to  any  change  in  accounting   standards  by  the
                    Financial   Accounting  Standards  Board  or  any  successor
                    entity.  The Performance  Goals established by the Committee
                    for any  Performance  Period  under the Plan will consist of
                    one or more of the following:

                    (i)  earnings per share and/or  growth in earnings per share
                         in relation to target objectives,  excluding the effect
                         of extraordinary or nonrecurring items;

                    (ii) operating  cash flow and/or  growth in  operating  cash
                         flow in  relation  to  target  objectives;

                    (iii) cash available in relation to target objectives;

                    (iv) net income  and/or  growth in net income in relation to
                         target    objectives,    excluding    the   effect   of
                         extraordinary or nonrecurring items;

                    (v)  revenue  and/or growth in revenue in relation to target
                         objectives;

                    (vi) total shareholder  return (measured as the total of the
                         appreciation  of and  dividends  declared on the Common
                         Stock) in relation to target  objectives;

                    (vii)return  on  invested  capital  in  relation  to  target
                         objectives;

                    (viii) return on  shareholder  equity in  relation to target
                         objectives;

                    (ix) return on assets in relation to target objectives;  and

                    (x)  return on common  book  equity  in  relation  to target
                         objectives

         If the  Committee  determines  that,  as a result  of a  change  in the
         business,  operations,  corporate structure or capital structure of the
         Company,  or the manner in which the Company conducts its business,  or
         any other events or circumstances,  the Performance Goals are no longer
         suitable,  the Committee may in its discretion  modify such Performance
         Goals or the related minimum acceptable level of achievement,  in whole
         or in part, with respect to a period as the Committee deems appropriate
         and equitable, except where such action would result in the loss of the
         otherwise  available  exemption of the Stock  Incentive  under  Section
         162(m) of the  Code.  In such  case,  the  Committee  will not make any
         modification of the Performance  Goals or minimum  acceptable  level of
         achievement.

          (q)  "PERFORMANCE PERIOD" means, with respect to a Stock Incentive,  a
               period of time within  which the  Performance  Goals  relating to
               such Stock Incentive are to be measured.  The Performance  Period
               will be  established  by the  Committee  at the  time  the  Stock
               Incentive is granted.

          (r)  "PERFORMANCE  UNIT AWARD" refers to a  performance  unit award as
               described in Section 3.6.

          (s)  "PHANTOM SHARES" refers to the rights described in Section 3.7.

          (t)  "PLAN"  means the Omega  Healthcare  Investors,  Inc.  2000 Stock
               Incentive Plan.

          (u)  "STOCK" means Company's common stock.

          (v)  "STOCK  APPRECIATION  RIGHT"  means  a stock  appreciation  right
               described in Section 3.3.

          (w)  "STOCK AWARD" means a stock award described in Section 3.4.

          (x)  "STOCK  INCENTIVE  AGREEMENT"  means  an  agreement  between  the
               Company and a Participant  or other  documentation  evidencing an
               award of a Stock Incentive.

          (y)  "STOCK INCENTIVE PROGRAM" means a written program  established by
               the  Committee,  pursuant to which Stock  Incentives  are awarded
               under the Plan under uniform terms,  conditions and  restrictions
               set forth in such written program.

          (z)  "STOCK  INCENTIVES"  means,  collectively,   Dividend  Equivalent
               Rights,  Incentive  Stock Options,  Non-Qualified  Stock Options,
               Phantom Shares,  Stock  Appreciation  Rights and Stock Awards and
               Performance Unit Awards.

          (aa) "SUBSIDIARY" means any corporation (other than the Company) in an
               unbroken chain of corporations  beginning with the Company if, at
               the time of the granting of the Option,  each of the corporations
               other than the last  corporation in the unbroken chain owns stock
               possessing 50% or more of the total combined  voting power of all
               classes of stock in one of the other corporations in the chain. A
               "Subsidiary" shall include any entity other than a corporation to
               the extent  permissible  under Section  424(f) or  regulations or
               rulings thereunder.

          (bb) "TERMINATION   OF  EMPLOYMENT"   means  the  termination  of  the
               employee-employer  relationship  between  a  Participant  and the
               Company and its  Affiliates,  regardless of whether  severance or
               similar  payments  are made to the  Participant  for any  reason,
               including,  but  not by  way  of  limitation,  a  termination  by
               resignation,  discharge,  death,  Disability or  retirement.  The
               Committee will, in its absolute discretion,  determine the effect
               of  all  matters  and  questions  relating  to a  Termination  of
               Employment, including, but not by way of limitation, the question
               of  whether  a leave of  absence  constitutes  a  Termination  of
               Employment.

                       SECTION 2 THE STOCK INCENTIVE PLAN

     2.1  PURPOSE OF THE PLAN. The Plan is intended to (a) provide  incentive to
          officers,  key employee,  directors and consultants of the Company and
          its Affiliates to stimulate their efforts toward the continued success
          of the Company and to operate and manage the business in a manner that
          will  provide  for  the  long-term  growth  and  profitability  of the
          Company;  (b) encourage  stock  ownership by officers,  key employees,
          directors and  consultants by providing them with a means to acquire a
          proprietary  interest in the Company,  acquire shares of Stock,  or to
          receive  compensation which is based upon appreciation in the value of
          Stock;  and (c) provide a means of obtaining,  rewarding and retaining
          officers, key personnel, directors, and consultants.

     2.2  STOCK SUBJECT TO THE PLAN.  Subject to  adjustment in accordance  with
          Section 5.2, three million five hundred thousand (3,500,000) shares of
          Stock (the "Maximum Plan Shares") are hereby reserved  exclusively for
          issuance upon exercise or payment  pursuant to Stock  Incentives.  The
          shares of Stock  attributable to the nonvested,  unpaid,  unexercised,
          unconverted or otherwise unsettled portion of any Stock Incentive that
          is  forfeited or  cancelled  or expires or  terminates  for any reason
          without  becoming  vested,  paid,  exercised,  converted  or otherwise
          settled in full will again be available for purposes of the Plan.

     2.3  ADMINISTRATION OF THE PLAN. The Plan is administered by the Committee.
          The  Committee has full  authority in its  discretion to determine the
          officers,  key employees,  directors and consultants of the Company or
          its Affiliates to whom Stock  Incentives will be granted and the terms
          and provisions of Stock  Incentives,  subject to the Plan.  Subject to
          the  provisions of the Plan,  the  Committee  has full and  conclusive
          authority to interpret the Plan; to prescribe, amend and rescind rules
          and  regulations  relating  to the Plan;  to  determine  the terms and
          provisions of the respective  Stock  Incentive  Agreements and to make
          all  other  determinations  necessary  or  advisable  for  the  proper
          administration of the Plan. The Committee's  determinations  under the
          Plan  need  not be  uniform  and may be made by it  selectively  among
          persons who receive, or are eligible to receive, awards under the Plan
          (whether or not such persons are similarly situated).  The Committee's
          decisions are final and binding on all Participants.

     2.4  ELIGIBILITY  AND  LIMITS.  Stock  Incentives  may be  granted  only to
          officers,  and  key  employees,  directors,  and  consultants  of  the
          Company, or any Affiliate of the Company;  provided,  however, that an
          Incentive  Stock  Option  may only be granted  to an  employee  of the
          Company or any Subsidiary. In the case of Incentive Stock Options, the
          aggregate  Fair Market Value  (determined  as at the date an Incentive
          Stock Option is granted) of stock with respect to which stock  options
          intended  to  meet  the   requirements  of  Code  Section  422  become
          exercisable  for the first time by an  individual  during any calendar
          year  under  all plans of the  Company  and its  Subsidiaries  may not
          exceed $100,000; provided further, that if the limitation is exceeded,
          the  Incentive  Stock  Option(s)  which  cause  the  limitation  to be
          exceeded will be treated as Non-Qualified Stock Option(s).

     2.5  NON-EMPLOYEE  DIRECTOR  STOCK OPTION  GRANTS.  A  Non-Qualified  Stock
          Option  with  respect to 10,000  shares of stock shall be made to each
          non-employee director upon his election as a non-employee director. An
          additional  Non-qualified  Stock  Option  grant with  respect to 1,000
          shares  shall be made to each  non-employee  director on or after each
          anniversary  of the  initial  grant.  Each Stock  Option  granted to a
          non-employee  director  will vest with  respect to 1/3 of the grant on
          the first  anniversary of the grant, with respect to an additional 1/3
          of the grant on the second  anniversary of the grant, and with respect
          to the final 1/3 on the third anniversary of the grant;  provided that
          a  optionee  will  cease  to vest  when he or she  ceases  to  provide
          services to the Company as an Employee, Consultant, or director.

         Non-employee  directors  are not eligible  for further  grants of Stock
Options.

                       SECTION 3 TERMS OF STOCK INCENTIVES

     3.1  TERMS AND CONDITIONS OF ALL STOCK INCENTIVES.

          (a)  The number of shares of Stock as to which a Stock  Incentive  may
               be  granted  will be  determined  by the  Committee  in its  sole
               discretion,  subject to the  provisions  of Section 2.2 as to the
               total  number of shares  available  for grants under the Plan and
               subject to the limits on Options and Stock Appreciation Rights in
               the  following  sentence.  On such date as  required  by  Section
               162(m)   of  the  Code  and  the   regulations   thereunder   for
               compensation  to  be  treated  as  qualified   performance  based
               compensation,  the maximum number of shares of Stock with respect
               to which  Options  or Stock  Appreciation  Rights  may be granted
               during  any one  year  period  to any  employee  may  not  exceed
               1,100,000. If, after grant, an Option is cancelled, the cancelled
               Option shall continue to be counted against the maximum number of
               shares  for  which  options  may be  granted  to an  employee  as
               described in this  Section  3.1.  If,  after grant,  the exercise
               price of an Option is reduced or the base amount on which a Stock
               Appreciation  Right is  calculated  is reduced,  the  transaction
               shall be treated as the  cancellation  of the Option or the Stock
               Appreciation Right, as applicable,  and the grant of a new Option
               or Stock Appreciation Right, as applicable. If an Option or Stock
               Appreciation  Right is deemed to be cancelled as described in the
               preceding  sentence,  the Option or Stock Appreciation Right that
               is deemed to be  canceled  and the  Option or Stock  Appreciation
               Right that is deemed to be granted shall both be counted  against
               the  maximum   number  of  shares  for  which  Options  or  Stock
               Appreciation Rights may be granted to an employee as described in
               this Section 3.1.

          (b)  Each  Stock  Incentive  will  either  be  evidenced  by  a  Stock
               Incentive  Agreement  in such  form and  containing  such  terms,
               conditions and  restrictions as the Committee may determine to be
               appropriate, including without limitation, Performance Goals that
               must be  achieved  as a  condition  to  vesting or payment of the
               Stock  Incentive,  or be made  subject  to the  terms  of a Stock
               Incentive   Program,   containing  such  terms,   conditions  and
               restrictions  as the Committee  may determine to be  appropriate,
               including  without  limitation,  Performance  Goals  that must be
               achieved  as a  condition  to  vesting  or  payment  of the Stock
               Incentive.  Each Stock  Incentive  Agreement  or Stock  Incentive
               Program is  subject  to the terms of the Plan and any  provisions
               contained in the Stock  Incentive  Agreement  or Stock  Incentive
               Program that are inconsistent with the Plan are null and void.

          (c)  The date a Stock  Incentive  is granted will be the date on which
               the Committee has approved the terms and  conditions of the Stock
               Incentive and has determined the recipient of the Stock Incentive
               and the number of shares covered by the Stock Incentive,  and has
               taken all such other  actions  necessary to complete the grant of
               the Stock Incentive.

          (d)  Any Stock  Incentive may be granted in connection with all or any
               portion  of  a  previously  or  contemporaneously  granted  Stock
               Incentive.  Exercise or vesting of a Stock  Incentive  granted in
               connection  with another Stock Incentive may result in a pro rata
               surrender or  cancellation  of any related  Stock  Incentive,  as
               specified in the applicable  Stock  Incentive  Agreement or Stock
               Incentive Program.

          (e)  Stock  Incentives are not  transferable  or assignable  except by
               will  or  by  the  laws  of  descent  and  distribution  and  are
               exercisable,  during  the  Participant's  lifetime,  only  by the
               Participant;   or  in  the  event  of  the   Disability   of  the
               Participant,  by the legal representative of the Participant;  or
               in  the  event  of  death  of  the  Participant,   by  the  legal
               representative  of  the  Participant's  estate  or  if  no  legal
               representative  has been appointed,  by the successor in interest
               determined under the Participant's will; provided,  however, that
               the Committee may waive any of the  provisions of this Section or
               provide otherwise as to any Stock Incentives other than Incentive
               Stock Options.

     3.2  TERMS AND  CONDITIONS OF OPTIONS.  Each Option  granted under the Plan
          must be  evidenced  by a Stock  Incentive  Agreement.  At the time any
          Option is granted,  the Committee will determine whether the Option is
          to be an  Incentive  Stock  Option  described in Code Section 422 or a
          Non-Qualified  Stock Option, and the Option must be clearly identified
          as to its status as an Incentive Stock Option or a Non-Qualified Stock
          Option.  Incentive  Stock  Options may only be granted to employees of
          the Company or any Subsidiary.  At the time any Incentive Stock Option
          granted under the Plan is  exercised,  the Company will be entitled to
          legend the  certificates  representing  the shares of Stock  purchased
          pursuant to the Option to clearly  identify them as  representing  the
          shares  purchased upon the exercise of an Incentive  Stock Option.  An
          Incentive  Stock Option may only be granted within ten (10) years from
          the  earlier  of the date  the  Plan is  adopted  or  approved  by the
          Company's stockholders.

          (a)  OPTION PRICE.  Subject to  adjustment in accordance  with Section
               5.2 and the other  provisions  of this  Section 3.2, the exercise
               price (the "Exercise Price") per share of Stock purchasable under
               any Option must be as set forth in the applicable Stock Incentive
               Agreement,  but in no event may it be less  than the Fair  Market
               Value  on the date the  Option  is  granted  with  respect  to an
               Incentive  Stock  Option.  With  respect  to  each  grant  of  an
               Incentive Stock Option to a Participant who is an Over 10% Owner,
               the  Exercise  Price may not be less than 110% of the Fair Market
               Value on the date the Option is granted.

          (b)  OPTION TERM. Any Incentive  Stock Option granted to a Participant
               who is not an  Over  10%  Owner  is  not  exercisable  after  the
               expiration  of ten  (10)  years  after  the date  the  Option  is
               granted.  Any Incentive Stock Option granted to an Over 10% Owner
               is not  exercisable  after the expiration of five (5) years after
               the date the  Option is  granted.  The term of any  Non-Qualified
               Stock  Option  must  be as  specified  in  the  applicable  Stock
               Incentive Agreement.

          (c)  PAYMENT.  Payment for all shares of Stock  purchased  pursuant to
               exercise  of an  Option  will  be  made  in any  form  or  manner
               authorized by the Committee in the Stock  Incentive  Agreement or
               by amendment thereto,  including, but not limited to, cash or, if
               the Stock Incentive Agreement provides:

               (i)  by  delivery  to the  Company of a number of shares of Stock
                    which  have been  owned by the  holder  for at least six (6)
                    months  prior to the date of  exercise  having an  aggregate
                    Fair  Market  Value of not  less  than  the  product  of the
                    Exercise  Price  multiplied  by the  number  of  shares  the
                    Participant  intends to purchase upon exercise of the Option
                    on the date of delivery;

               (ii) in a cashless exercise through a broker; or

               (iii)by having a number of  shares  of Stock  withheld,  the Fair
                    Market  Value  of  which  as of  the  date  of  exercise  is
                    sufficient to satisfy the Exercise Price.

         In its  discretion,  the  Committee  also may authorize (at the time an
         Option is  granted  or  thereafter)  Company  financing  to assist  the
         Participant as to payment of the Exercise Price on such terms as may be
         offered by the Committee in its discretion. Payment must be made at the
         time that the Option or any part  thereof is  exercised,  and no shares
         may be issued or  delivered  upon  exercise  of an  option  until  full
         payment has been made by the Participant.  The holder of an Option,  as
         such, has none of the rights of a stockholder.

          (d)  CONDITIONS  TO THE  EXERCISE OF AN OPTION.  Each  Option  granted
               under the Plan is  exercisable  by the  Participant  or any other
               designated  person, at such time or times, or upon the occurrence
               of such event or events,  and in such  amounts,  as the Committee
               specifies in the Stock Incentive  Agreement;  provided,  however,
               that subsequent to the grant of an Option, the Committee,  at any
               time before complete  termination of such Option,  may accelerate
               the time or times at which such Option may be  exercised in whole
               or in part,  including,  without  limitation,  upon a  Change  in
               Control  as  defined  in the Stock  Incentive  Agreement  and may
               permit the Participant or any other designated person to exercise
               the  Option,  or any  portion  thereof,  for  all or  part of the
               remaining Option term, notwithstanding any provision of the Stock
               Incentive Agreement to the contrary.

          (e)  TERMINATION  OF  INCENTIVE  STOCK  OPTION.  With  respect  to  an
               Incentive Stock Option, in the event of Termination of Employment
               of a  Participant,  the  Option or  portion  thereof  held by the
               Participant  which is  unexercised  will expire,  terminate,  and
               become  unexercisable  no later than the  expiration of three (3)
               months after the date of  Termination  of  Employment;  provided,
               however,  that  in the  case of a  holder  whose  Termination  of
               Employment  is due to death or  Disability,  one (1) year will be
               substituted  for such three (3) month period;  provided,  further
               that such time limits may be exceeded by the Committee  under the
               terms of the grant,  in which case,  the  Incentive  Stock Option
               will be a Non-Qualified  Option if it is exercised after the time
               limits  that  would  otherwise   apply.   For  purposes  of  this
               Subsection (e), Termination of Employment of the Participant will
               not be deemed to have occurred if the  Participant is employed by
               another  corporation  (or a parent or subsidiary  corporation  of
               such other  corporation)  which has assumed the  Incentive  Stock
               Option of the  Participant in a transaction to which Code Section
               424(a) is applicable.

          (f)  SPECIAL    PROVISIONS    FOR    CERTAIN    SUBSTITUTE    OPTIONS.
               Notwithstanding anything to the contrary in this Section 3.2, any
               Option issued in substitution for an option  previously issued by
               another entity,  which  substitution  occurs in connection with a
               transaction  to which  Code  Section  424(a) is  applicable,  may
               provide for an exercise  price  computed in accordance  with such
               Code Section and the regulations  thereunder and may contain such
               other terms and  conditions  as the  Committee  may  prescribe to
               cause such substitute Option to contain as nearly as possible the
               same terms and conditions  (including the applicable  vesting and
               termination  provisions)  as those  contained  in the  previously
               issued option being replaced thereby.

     3.3  TERMS  AND  CONDITIONS  OF  STOCK  APPRECIATION   RIGHTS.  Each  Stock
          Appreciation Right granted under the Plan must be evidenced by a Stock
          Incentive   Agreement.   A  Stock   Appreciation  Right  entitles  the
          Participant  to receive the excess of (1) the Fair  Market  Value of a
          specified or determinable number of shares of the Stock at the time of
          payment or exercise over (2) a specified or determinable  price which,
          in the case of a Stock  Appreciation  Right granted in connection with
          an Option,  may not be less than the Exercise Price for that number of
          shares subject to that Option. A Stock  Appreciation  Right granted in
          connection  with a Stock Incentive may only be exercised to the extent
          that the  related  Stock  Incentive  has not been  exercised,  paid or
          otherwise settled.

          (a)  SETTLEMENT.  Upon settlement of a Stock  Appreciation  Right, the
               Company must pay to the Participant  the  appreciation in cash or
               shares of Stock (valued at the aggregate Fair Market Value on the
               date of payment or exercise)  as provided in the Stock  Incentive
               Agreement or, in the absence of such provision,  as the Committee
               may determine.

          (b)  CONDITIONS  TO EXERCISE.  Each Stock  Appreciation  Right granted
               under the Plan is  exercisable  or payable at such time or times,
               or upon  the  occurrence  of such  event or  events,  and in such
               amounts,  as  the  Committee  specifies  in the  Stock  Incentive
               Agreement;  provided,  however, that subsequent to the grant of a
               Stock  Appreciation  Right,  the  Committee,  at any time  before
               complete  termination  of  such  Stock  Appreciation  Right,  may
               accelerate  the time or times at which  such  Stock  Appreciation
               Right may be exercised or paid in whole or in part.

     3.4  TERMS AND  CONDITIONS OF STOCK  AWARDS.  The number of shares of Stock
          subject  to a Stock  Award  and  restrictions  or  conditions  on such
          shares,  if  any,  will  be  as  the  Committee  determines,  and  the
          certificate for such shares will bear evidence of any  restrictions or
          conditions.  Subsequent  to the date of the grant of the Stock  Award,
          the  Committee  has  the  power  to  permit,  in  its  discretion,  an
          acceleration  of the  expiration of an applicable  restriction  period
          with  respect  to  any  part  or  all  of  the  shares  awarded  to  a
          Participant.  The  Committee  may  require  a cash  payment  from  the
          Participant  in an amount no greater  than the  aggregate  Fair Market
          Value of the shares of Stock  awarded  determined at the date of grant
          in exchange  for the grant of a Stock Award or may grant a Stock Award
          without the requirement of a cash payment.

     3.5  TERMS  AND  CONDITIONS  OF  DIVIDEND  EQUIVALENT  RIGHTS.  A  Dividend
          Equivalent Right entitles the Participant to receive payments from the
          Company in an amount  determined  by reference  to any cash  dividends
          paid on a specified number of shares of Stock to Company  stockholders
          of record during the period such rights are  effective.  The Committee
          may impose such restrictions and conditions on any Dividend Equivalent
          Right as the Committee in its discretion  shall  determine,  including
          the date any such right shall  terminate  and may reserve the right to
          terminate, amend or suspend any such right at any time.

          (a)  PAYMENT. Payment in respect of a Dividend Equivalent Right may be
               made by the  Company  in cash or shares of Stock  (valued at Fair
               Market  Value as of the date  payment is owed) as provided in the
               Stock Incentive Agreement or Stock Incentive Program,  or, in the
               absence of such provision, as the Committee may determine.

          (b)  CONDITIONS  TO PAYMENT.  Each Dividend  Equivalent  Right granted
               under the Plan is  payable  at such  time or  times,  or upon the
               occurrence of such event or events,  and in such amounts,  as the
               Committee  specifies in the applicable Stock Incentive  Agreement
               or Stock Incentive Program; provided, however, that subsequent to
               the grant of a Dividend  Equivalent Right, the Committee,  at any
               time before  complete  termination  of such  Dividend  Equivalent
               Right,  may  accelerate  the time or times at which such Dividend
               Equivalent Right may be paid in whole or in part.

     3.6  TERMS AND CONDITIONS OF PERFORMANCE  UNIT AWARDS.  A Performance  Unit
          Award shall entitle the Participant to receive,  at a specified future
          date, payment of an amount equal to all or a portion of the value of a
          specified  or  determinable  number  of  units  (stated  in terms of a
          designated  or  determinable  dollar  amount per unit)  granted by the
          Committee.  At the time of the grant, the Committee must determine the
          base value of each unit,  the number of units subject to a Performance
          Unit Award, and the Performance  Goals applicable to the determination
          of the  ultimate  payment  value of the  Performance  Unit Award.  The
          Committee may provide for an alternate  base value for each unit under
          certain specified conditions.

          (a)  PAYMENT.  Payment in respect of  Performance  Unit  Awards may be
               made by the  Company  in cash or shares of Stock  (valued at Fair
               Market  Value as of the date  payment is owed) as provided in the
               applicable Stock Incentive  Agreement or Stock Incentive  Program
               or,  in the  absence  of such  provision,  as the  Committee  may
               determine.

          (b)  CONDITIONS TO PAYMENT.  Each Performance Unit Award granted under
               the Plan  shall be  payable  at such time or  times,  or upon the
               occurrence of such event or events,  and in such amounts,  as the
               Committee  shall  specify  in  the  applicable   Stock  Incentive
               Agreement or Stock Incentive  Program;  provided,  however,  that
               subsequent  to  the  grant  of  a  Performance  Unit  Award,  the
               Committee,  at any  time  before  complete  termination  of  such
               Performance Unit Award, may accelerate the time or times at which
               such Performance Unit Award may be paid in whole or in part.

     3.7  TERMS AND CONDITIONS OF PHANTOM  SHARES.  Phantom Shares shall entitle
          the Participant to receive,  at a specified future date, payment of an
          amount  equal  to all or a  portion  of the  Fair  Market  Value  of a
          specified number of shares of Stock at the end of a specified  period.
          At the time of the grant,  the  Committee  will  determine the factors
          which  will  govern  the  portion of the  phantom  shares so  payable,
          including,  at  the  discretion  of  the  Committee,  any  performance
          criteria  that must be satisfied  as a condition  to payment.  Phantom
          Share awards  containing  performance  criteria may be  designated  as
          performance share awards.

          (a)  PAYMENT.  Payment in respect of Phantom Shares may be made by the
               Company in cash or shares of Stock  (valued at Fair Market  Value
               as of the date  payment is owed) as  provided  in the  applicable
               Stock Incentive Agreement or Stock Incentive Program,  or, in the
               absence of such provision, as the Committee may determine.

          (b)  CONDITIONS TO PAYMENT.  Each Phantom Share granted under the Plan
               is payable at such time or times,  or upon the occurrence of such
               event or events, and in such amounts, as the Committee specify in
               the  applicable  Stock  Incentive  Agreement  or Stock  Incentive
               Program;  provided,  however,  that  subsequent to the grant of a
               Phantom  Share,  the  Committee,  at  any  time  before  complete
               termination  of such Phantom  Share,  may  accelerate the time or
               times  at which  such  Phantom  Share  may be paid in whole or in
               part.

     3.8  TREATMENT  OF  AWARDS  UPON  TERMINATION  OF  EMPLOYMENT.   Except  as
          otherwise  provided by Plan Section 3.2(e),  any award under this Plan
          to a Participant  who has  experienced a Termination of Employment may
          be  cancelled,  accelerated,  paid or  continued,  as  provided in the
          applicable Stock Incentive  Agreement or Stock Incentive Program,  or,
          in the absence of such provision, as the Committee may determine.  The
          portion of any award  exercisable in the event of  continuation or the
          amount of any payment  due under a continued  award may be adjusted by
          the Committee to reflect the Participant's  period of service from the
          date of grant  through the date of the  Participant's  Termination  of
          Employment  or such other  factors  as the  Committee  determines  are
          relevant to its decision to continue the award.

                         SECTION 4 RESTRICTIONS ON STOCK

     4.1  ESCROW OF SHARES.  Any  certificates  representing the shares of Stock
          issued under the Plan will be issued in the  Participant's  name, but,
          if the applicable Stock Incentive Agreement or Stock Incentive Program
          so  provides,  the  shares  of  Stock  will  be  held  by a  custodian
          designated by the Committee (the  "Custodian").  Each applicable Stock
          Incentive  Agreement or Stock Incentive Program providing for transfer
          of shares of Stock to the Custodian  must appoint the Custodian as the
          attorney-in-fact  for the  Participant  for the term  specified in the
          applicable Stock Incentive Agreement or Stock Incentive Program,  with
          full power and authority in the Participant's name, place and stead to
          transfer, assign and convey to the Company any shares of Stock held by
          the Custodian for such  Participant,  if the Participant  forfeits the
          shares under the terms of the applicable Stock Incentive  Agreement or
          Stock  Incentive  Program.  During the period that the Custodian holds
          the shares subject to this Section, the Participant is entitled to all
          rights, except as provided in the applicable Stock Incentive Agreement
          or Stock Incentive Program, applicable to shares of Stock not so held.
          Any dividends  declared on shares of Stock held by the Custodian  must
          provide in the applicable Stock Incentive Agreement or Stock Incentive
          Program,   to  be  paid  directly  to  the   Participant  or,  in  the
          alternative,  be retained by the Custodian or by the Company until the
          expiration of the term  specified in the  applicable  Stock  Incentive
          Agreement  or Stock  Incentive  Program  and shall then be  delivered,
          together  with  any  proceeds,   with  the  shares  of  Stock  to  the
          Participant or to the Company, as applicable.

     4.2  RESTRICTIONS ON TRANSFER.  The Participant  does not have the right to
          make or permit to exist any  disposition of the shares of Stock issued
          pursuant to the Plan except as provided in the Plan or the  applicable
          Stock Incentive Agreement or Stock Incentive Program.  Any disposition
          of the shares of Stock  issued under the Plan by the  Participant  not
          made in accordance  with the Plan or the  applicable  Stock  Incentive
          Agreement or Stock  Incentive  Program will be void.  The Company will
          not recognize, or have the duty to recognize, any disposition not made
          in  accordance  with  the  Plan  and the  applicable  Stock  Incentive
          Agreement or Stock  Incentive  Program,  and the shares so transferred
          will  continue  to be  bound  by the  Plan  and the  applicable  Stock
          Incentive Agreement or Stock Incentive Program.

                          SECTION 5 GENERAL PROVISIONS

     5.1  WITHHOLDING. The Company must deduct from all cash distributions under
          the Plan any taxes required to be withheld by federal,  state or local
          government.  Whenever the Company  proposes or is required to issue or
          transfer  shares of Stock  under the Plan or upon the  vesting  of any
          Stock  Award,  the Company has the right to require the  recipient  to
          remit to the  Company an amount  sufficient  to satisfy  any  federal,
          state and local tax withholding  requirements prior to the delivery of
          any certificate or certificates for such shares or the vesting of such
          Stock Award. A Participant may pay the withholding obligation in cash,
          or, if the applicable  Stock  Incentive  Agreement or Stock  Incentive
          Program provides, a Participant may elect to have the number of shares
          of Stock he is to  receive  reduced  by,  or with  respect  to a Stock
          Award, tender back to the Company, the smallest number of whole shares
          of Stock which, when multiplied by the Fair Market Value of the shares
          of Stock determined as of the Tax Date (defined below),  is sufficient
          to satisfy federal,  state and local, if any,  withholding  obligation
          arising from exercise or payment of a Stock  Incentive (a "Withholding
          Election"). A Participant may make a Withholding Election only if both
          of the following conditions are met:

          (a)  The Withholding  Election must be made on or prior to the date on
               which the amount of tax  required to be  withheld  is  determined
               (the "Tax Date") by  executing  and  delivering  to the Company a
               properly  completed notice of Withholding  Election as prescribed
               by the Committee; and

          (b)  Any Withholding  Election made will be irrevocable  except on six
               months advance written notice delivered to the Company;  however,
               the Committee may in its sole  discretion  disapprove and give no
               effect to the Withholding Election.

     5.2  CHANGES IN CAPITALIZATION; MERGER; LIQUIDATION.

          (a)  The number of shares of Stock  reserved for the grant of Options,
               Dividend  Equivalent  Rights,  Performance  Unit Awards,  Phantom
               Shares, Stock Appreciation Rights and Stock Awards; the number of
               shares  of Stock  reserved  for  issuance  upon the  exercise  or
               payment,  as applicable,  of each  outstanding  Option,  Dividend
               Equivalent Right,  Phantom Share and Stock Appreciation Right and
               upon vesting or grant,  as applicable,  of each Stock Award;  the
               Exercise  Price  of each  outstanding  Option  and the  specified
               number  of  shares of Stock to which  each  outstanding  Dividend
               Equivalent  Right,  Phantom  Share and Stock  Appreciation  Right
               pertains  must be  proportionately  adjusted  for any increase or
               decrease in the number of issued shares of Stock resulting from a
               subdivision  or  combination  of shares or the payment of a stock
               dividend in shares of Stock to holders of  outstanding  shares of
               Stock or any other  increase  or decrease in the number of shares
               of Stock outstanding effected without receipt of consideration by
               the Company.

          (b)  In  the  event  of  a  merger,   consolidation,   reorganization,
               extraordinary  dividend,  spin-off,  sale of substantially all of
               the Company's  assets,  other change in capital  structure of the
               Company, tender offer for shares of Stock, or a change in control
               of the  Company (as defined by the  Committee  in the  applicable
               Stock   Incentive   Agreement)   the   Committee  may  make  such
               adjustments  with respect to awards and take such other action as
               it  deems  necessary  or  appropriate  to  reflect  such  merger,
               consolidation, reorganization or tender offer, including, without
               limitation,  the substitution of new awards, or the adjustment of
               outstanding  awards,  the acceleration of awards,  the removal of
               restrictions  on  outstanding   awards,  or  the  termination  of
               outstanding  awards in exchange for the cash value  determined in
               good faith by the Committee of the vested and/or unvested portion
               of the award.  Any  adjustment  pursuant to this  Section 5.2 may
               provide,  in the  Committee's  discretion,  for  the  elimination
               without  payment  therefor  of any  fractional  shares that might
               otherwise  become subject to any Stock  Incentive,  but except as
               set forth in this  Section may not  otherwise  diminish  the then
               value of the Stock Incentive.

          (c)  The  existence  of the  Plan  and the  Stock  Incentives  granted
               pursuant  to the Plan  must not  affect  in any way the  right or
               power  of the  Company  to  make  or  authorize  any  adjustment,
               reclassification,  reorganization  or other change in its capital
               or  business  structure,  any  merger  or  consolidation  of  the
               Company,   any  issue  of  debt  or  equity   securities   having
               preferences or priorities as to the Stock or the rights  thereof,
               the  dissolution  or  liquidation  of the  Company,  any  sale or
               transfer  of all or any part of its  business  or assets,  or any
               other corporate act or proceeding.

     5.3  CASH AWARDS.  The  Committee  may, at any time and in its  discretion,
          grant to any holder of a Stock Incentive the right to receive, at such
          times  and in such  amounts  as  determined  by the  Committee  in its
          discretion,  a cash amount which is intended to reimburse  such person
          for all or a portion  of the  federal,  state and local  income  taxes
          imposed upon such person as a consequence  of the receipt of the Stock
          Incentive or the exercise of rights thereunder.

     5.4  COMPLIANCE  WITH  CODE.  All  Incentive  Stock  Options  to be granted
          hereunder  are  intended  to comply  with Code  Section  422,  and all
          provisions  of the  Plan  and  all  Incentive  Stock  Options  granted
          hereunder  must be  construed  in such  manner as to  effectuate  that
          intent.

     5.5  RIGHT TO  TERMINATE  EMPLOYMENT.  Nothing  in the Plan or in any Stock
          Incentive  confers  upon any  Participant  the right to continue as an
          employee or officer of the Company or any of its  Affiliates or affect
          the right of the Company or any of its  Affiliates  to  terminate  the
          Participant's employment or services at any time.

     5.6  NON-ALIENATION OF BENEFITS.  Other than as provided herein, no benefit
          under  the  Plan  may  be  subject  in  any  manner  to  anticipation,
          alienation, sale, transfer, assignment, pledge, encumbrance or charge;
          and any attempt to do so shall be void. No such benefit may,  prior to
          receipt by the Participant,  be in any manner liable for or subject to
          the  debts,  contracts,  liabilities,  engagements  or  torts  of  the
          Participant.

     5.7  RESTRICTIONS  ON  DELIVERY  AND SALE OF  SHARES;  LEGENDS.  Each Stock
          Incentive  is  subject  to  the  condition  that  if at any  time  the
          Committee,  in its  discretion,  shall  determine  that  the  listing,
          registration  or  qualification  of the  shares  covered by such Stock
          Incentive upon any  securities  exchange or under any state or federal
          law is necessary or desirable as a condition of or in connection  with
          the  granting of such Stock  Incentive  or the purchase or delivery of
          shares thereunder,  the delivery of any or all shares pursuant to such
          Stock  Incentive  may be  withheld  unless  and  until  such  listing,
          registration  or  qualification   shall  have  been  effected.   If  a
          registration  statement is not in effect under the  Securities  Act of
          1933 or any  applicable  state  securities  laws with  respect  to the
          shares of Stock  purchasable  or  otherwise  deliverable  under  Stock
          Incentives then outstanding, the Committee may require, as a condition
          of exercise of any Option or as a condition  to any other  delivery of
          Stock  pursuant to a Stock  Incentive,  that the  Participant or other
          recipient of a Stock Incentive represent,  in writing, that the shares
          received  pursuant  to the  Stock  Incentive  are being  acquired  for
          investment  and not with a view to  distribution  and  agree  that the
          shares  will  not be  disposed  of  except  pursuant  to an  effective
          registration  statement,  unless the  Company  shall have  received an
          opinion  of  counsel  that  such   disposition  is  exempt  from  such
          requirement  under the Securities Act of 1933 and any applicable state
          securities laws. The Company may include on certificates  representing
          shares delivered  pursuant to a Stock Incentive such legends referring
          to  the  foregoing   representations  or  restrictions  or  any  other
          applicable  restrictions on resale as the Company,  in its discretion,
          shall deem appropriate.

     5.8  LISTING AND LEGAL  COMPLIANCE.  The Committee may suspend the exercise
          or  payment  of any  Stock  Incentive  so long as it  determines  that
          securities exchange listing or registration or qualification under any
          securities  laws is required in connection  therewith and has not been
          completed on terms acceptable to the Committee.

     5.9  TERMINATION  AND AMENDMENT OF THE PLAN.  The Board of Directors at any
          time may amend or  terminate  the Plan without  stockholder  approval;
          provided,  however,  that the Board of  Directors  may  condition  any
          amendment  on the  approval  of  stockholders  of the  Company if such
          approval is necessary or advisable with respect to tax,  securities or
          other applicable  laws. No such  termination or amendment  without the
          consent of the holder of a Stock  Incentive may  adversely  affect the
          rights of the Participant under such Stock Incentive.

     5.10 STOCKHOLDER  APPROVAL.  The Plan must be submitted to the stockholders
          of the Company for their approval  within twelve (12) months before or
          after  the  adoption  of the  Plan by the  Board of  Directors  of the
          Company. If such approval is not obtained, any Stock Incentive granted
          hereunder will be void.

     5.11 CHOICE OF LAW.  The laws of the State of  Maryland  shall  govern  the
          Plan, to the extent not preempted by federal law, without reference to
          the principles of conflict of laws.

     5.12 EFFECTIVE  DATE OF  PLAN.  This  Plan  was  approved  by the  Board of
          Directors as of June 14, 2000.

                        OMEGA HEALTHCARE INVESTORS, INC.

                        By: /s/ Essel W. Bailey, Jr.
                            -------------------------------------

                     Title: President
                            -------------------------------------FIRST AMENDMENT TO
                        OMEGA HEALTHCARE INVESTORS, INC.
                            2000 STOCK INCENTIVE PLAN

         This  Amendment is made  effective  June 30, 2000, by Omega  Healthcare
Investors, Inc., a Maryland corporation (the "Company").

                                  Introduction
                                  ------------

         The Company maintains the Omega Healthcare  Investors,  Inc. 2000 Stock
Incentive  Plan pursuant to a document  approved by the Board of Directors as of
June 14, 2000 (the "Plan").  The Board of Directors has determined that it is in
the best  interest of the Company not to allow stock  options  issued  under the
Plan to be amended to reduce the exercise price and adopted a consent resolution
to that effect dated June 30, 2000.

         NOW, THEREFORE, the Plan is hereby amended, effective June 30, 2000, by
adding the following to the end of Section 3.2(a):

                  "Notwithstanding  any other provision  hereof,  and except for
         adjustments  to the  Exercise  Price as  contemplated  by  Section  5.2
         hereof,  in no  event  will  the  Exercise  Price  per  share  of Stock
         purchasable  under any Option be reduced after the date of grant of the
         Option and no Option may be canceled or  surrendered in exchange for an
         Option with a lower Exercise Price."

         Except as specifically  amended  hereby,  the Plan shall remain in full
force and effect as prior to this First Amendment.

         IN WITNESS  WHEREOF,  the Company  has  executed  this First  Amendment
effective as of June 30, 2000.

                                                   By: /s/ Susan Allene Kovach
                                                       ----------------------
                                                        Susan Allene Kovach
                                                        Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00013-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00013-of-00352.parquet"}]]