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                                                                   EXHIBIT 10.14

                            INDEMNIFICATION AGREEMENT

         This Indemnification Agreement (the "Agreement") is made as of
_________________, by and between Oil States International, Inc., a Delaware
corporation (the "Company"), and _________________ (the "Indemnitee").

                                    AGREEMENT

         In consideration of the mutual promises made in this Agreement, and for
other good and valuable consideration, receipt of which is hereby acknowledged,
the Company and Indemnitee hereby agree as follows:

         1.       INDEMNIFICATION.

                  (a) THIRD PARTY PROCEEDINGS. The Company shall indemnify
         Indemnitee if Indemnitee is or was a party or is threatened to be made
         a party to any threatened, pending or completed action, suit or
         proceeding, whether civil, criminal, administrative or investigative
         (other than an action by or in the right of the Company) by reason of
         the fact that Indemnitee is or was a director, officer, employee or
         agent of the Company, or any subsidiary of the Company, by reason of
         any action or inaction on the part of Indemnitee while an officer or
         director or by reason of the fact that Indemnitee is or was serving at
         the request of the Company as a director, officer, employee or agent of
         another corporation, partnership, joint venture, trust or other
         enterprise, against expenses (including attorneys' fees), judgments,
         fines and amounts paid in settlement (if such settlement is approved in
         advance by the Company, which approval shall not be unreasonably
         withheld) actually and reasonably incurred by Indemnitee in connection
         with such action, suit or proceeding if Indemnitee acted in good faith
         and in a manner Indemnitee reasonably believed to be in or not opposed
         to the best interests of the Company, and, with respect to any criminal
         action or proceeding, had no reasonable cause to believe Indemnitee's
         conduct was unlawful. The termination of any action, suit or proceeding
         by judgment, order, settlement, conviction, or upon a plea of nolo
         contendere or its equivalent, shall not, of itself, create a
         presumption that Indemnitee did not act in good faith and in a manner
         which Indemnitee reasonably believed to be in or not opposed to the
         best interests of the Company, or, with respect to any criminal action
         or proceeding, that Indemnitee had reasonable cause to believe that
         Indemnitee's conduct was unlawful.

                  (b) PROCEEDINGS BY OR IN THE RIGHT OF THE COMPANY. The Company
         shall indemnify Indemnitee if Indemnitee was or is a party or is
         threatened to be made a party to any threatened, pending or completed
         action or proceeding by or in the right of the Company or any
         subsidiary of the Company to procure a judgment in its favor by reason
         of the fact that Indemnitee is or was a director, officer, employee or
         agent of the Company, or any subsidiary of the Company, by reason of
         any action or inaction on the part of Indemnitee while an officer or
         director or by reason of the fact that Indemnitee is or was serving at
         the request of the Company as a director, officer, employee or agent of
         another corporation, partnership, joint venture, trust or other
         enterprise, against expenses (including

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         attorneys' fees) and, to the fullest extent permitted by law, amounts
         paid in settlement (if such settlement is approved in advance by the
         Company, which approval shall not be unreasonably withheld), in each
         case to the extent actually and reasonably incurred by Indemnitee in
         connection with the defense or settlement of such action or suit if
         Indemnitee acted in good faith and in a manner Indemnitee reasonably
         believed to be in or not opposed to the best interests of the Company
         and its stockholders, except that no indemnification shall be made in
         respect of any claim, issue or matter as to which Indemnitee shall have
         been finally adjudicated by court order or judgment to be liable to the
         Company in the performance of Indemnitee's duty to the Company and its
         stockholders unless and only to the extent that the court in which such
         action or proceeding is or was pending shall determine upon application
         that, in view of all the circumstances of the case, Indemnitee is
         fairly and reasonably entitled to indemnity for such expenses which
         such court shall deem proper.

                  (c) MANDATORY PAYMENT OF EXPENSES. To the extent that
         Indemnitee has been successful on the merits or otherwise in defense of
         any action, suit or proceeding referred to in Section 1(a) or Section
         1(b) or the defense of any claim, issue or matter therein, Indemnitee
         shall be indemnified against expenses (including attorneys' fees)
         actually and reasonably incurred by Indemnitee in connection therewith.

         2. NO EMPLOYMENT RIGHTS. Nothing contained in this Agreement is
intended to create in Indemnitee any right to continued employment.

         3. EXPENSES; INDEMNIFICATION PROCEDURE.

                  (a) ADVANCEMENT OF EXPENSES. The Company shall advance all
         expenses incurred by Indemnitee in connection with the investigation,
         defense, settlement or appeal of any civil or criminal action, suit or
         proceeding referred to in Section l(a) or Section 1(b) hereof
         (including amounts actually paid in settlement of any such action, suit
         or proceeding). Indemnitee hereby undertakes to repay such amounts
         advanced only if, and to the extent that, it shall ultimately be
         determined that Indemnitee is not entitled to be indemnified by the
         Company as authorized hereby.

                  (b) NOTICE COOPERATION BY INDEMNITEE. Indemnitee shall, as a
         condition precedent to his or her right to be indemnified under this
         Agreement, give the Company notice in writing as soon as practicable of
         any claim made against Indemnitee for which indemnification will or
         could be sought under this Agreement. Notice to the Company shall be
         directed to the Chief Executive Officer of the Company (unless the
         Indemnitee is then the Chief Executive Officer, in which event then to
         the Chief Financial Officer of the Company) and shall be given in
         accordance with the provisions of Section 12(d) below. In addition,
         Indemnitee shall give the Company such information and cooperation as
         it may reasonably require and as shall be within Indemnitee's power.

                  (c) PROCEDURE. Any indemnification and advances provided for
         in Section 1 and this Section 3 shall be made no later than twenty (20)
         days after receipt of the written request of Indemnitee. If a claim
         under this Agreement, under any statute, or under any provision of the
         Company's Certificate of Incorporation or Bylaws providing for

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         indemnification, is not paid in full by the Company within twenty (20)
         days after a written request for payment thereof has first been
         received by the Company, Indemnitee may, but need not, at any time
         thereafter bring an action against the Company to recover the unpaid
         amount of the claim and, subject to Section 11 of this Agreement,
         Indemnitee shall also be entitled to be paid for the expenses
         (including attorneys' fees) of bringing such action. It shall be a
         defense to any such action (other than an action brought to enforce a
         claim for expenses incurred in connection with any action, suit or
         proceeding in advance of its final disposition) that Indemnitee has not
         met the standards of conduct which make it permissible under applicable
         law for the Company to indemnify Indemnitee for the amount claimed, but
         the burden of proving such defense shall be on the Company and
         Indemnitee shall be entitled to receive interim payments of expenses
         pursuant to Section 3(a) unless and until such defense may be finally
         adjudicated by court order or judgment from which no further right of
         appeal exists. It is the parties' intention that if the Company
         contests Indemnitee's right to indemnification, the question of
         Indemnitee's right to indemnification shall be for the court to decide,
         and neither the failure of the Company (including its Board of
         Directors, any committee or subgroup of the Board of Directors,
         independent legal counsel, or its stockholders) to have made a
         determination that indemnification of Indemnitee is proper in the
         circumstances because Indemnitee has met the applicable standard of
         conduct required by applicable law, nor an actual determination by the
         Company (including its Board of Directors, any committee or subgroup of
         the Board of Directors, independent legal counsel, or its stockholders)
         that Indemnitee has not met such applicable standard of conduct, shall
         create a presumption that Indemnitee has or has not met the applicable
         standard of conduct.

                  (d) NOTICE TO INSURERS. If, at the time of the receipt of a
         notice of a claim pursuant to Section 3(b) hereof, the Company has
         director and officer liability insurance in effect, the Company shall
         give prompt notice of the commencement of such proceeding to the
         insurers in accordance with the procedures set forth in the respective
         policies. The Company shall thereafter take all necessary or desirable
         action to cause such insurers to pay, on behalf of the Indemnitee, all
         amounts payable as a result of such proceeding in accordance with the
         terms of such policies.

                  (e) SELECTION OF COUNSEL. In the event the Company shall be
         obligated under Section 3(a) hereof to pay the expenses of any
         proceeding against Indemnitee, the Company, if appropriate, shall be
         entitled to assume the defense of such proceeding, with counsel
         approved by Indemnitee, upon the delivery to Indemnitee of written
         notice of its election so to do. After delivery of such notice,
         approval of such counsel by Indemnitee and the retention of such
         counsel by the Company, the Company will not be liable to Indemnitee
         under this Agreement for any fees of counsel subsequently incurred by
         Indemnitee with respect to the same proceeding, provided that (i)
         Indemnitee shall have the right to employ counsel in any such
         proceeding at Indemnitee's expense; and (ii) if (A) the employment of
         counsel by Indemnitee has been previously authorized by the Company,
         (B) Indemnitee shall have reasonably concluded that there may be a
         conflict of interest between the Company and Indemnitee in the conduct
         of any such defense or (C) the Company shall not, in fact, have
         employed counsel to assume the defense of such proceeding, then the
         fees and expenses of Indemnitee's counsel shall be at the expense of
         the Company.

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         4. ADDITIONAL INDEMNIFICATION RIGHTS; NONEXCLUSIVITY.

                  (a) SCOPE. Notwithstanding any other provision of this
         Agreement, the Company hereby agrees to indemnify the Indemnitee to the
         fullest extent permitted by law, notwithstanding that such
         indemnification is not specifically authorized by the other provisions
         of this Agreement, the Company's Certificate of Incorporation, the
         Company's Bylaws or by statute. In the event of any change, after the
         date of this Agreement, in any applicable law, statute, or rule which
         expands the right of a Delaware corporation to indemnify a member of
         its board of directors or an officer, such changes shall be deemed to
         be within the purview of Indemnitee's rights and the Company's
         obligations under this Agreement. In the event of any change in any
         applicable law, statute or rule which narrows the right of a Delaware
         corporation to indemnify a member of its board of directors or an
         officer, such changes, to the extent not otherwise required by such
         law, statute or rule to be applied to this Agreement shall have no
         effect on this Agreement or the parties' rights and obligations
         hereunder.

                  (b) NONEXCLUSIVITY. The indemnification provided by this
         Agreement shall not be deemed exclusive of any rights to which
         Indemnitee may be entitled under the Company's Certificate of
         Incorporation, its Bylaws, any agreement, any vote of stockholders or
         disinterested members of the Company's Board of Directors, the General
         Corporation Law of the State of Delaware, or otherwise, both as to
         action in Indemnitee's official capacity and as to action in another
         capacity while holding such office. The indemnification provided under
         this Agreement shall continue as to Indemnitee for any action taken or
         not taken while serving in an indemnified capacity even though he or
         she may have ceased to serve in any such capacity at the time of any
         action, suit or other covered proceeding.

         5. PARTIAL INDEMNIFICATION. If Indemnitee is entitled under any
provision of this Agreement to indemnification by the Company for some or a
portion of the expenses, judgments, fines or penalties actually or reasonably
incurred in the investigation, defense, appeal or settlement of any civil or
criminal action, suit or proceeding, but not, however, for the total amount
thereof, the Company shall nevertheless indemnify Indemnitee for the portion of
such expenses, judgments, fines or penalties to which Indemnitee is entitled.

         6. MUTUAL ACKNOWLEDGMENT. Both the Company and Indemnitee acknowledge
that in certain instances, Federal law or public policy may override applicable
state law and prohibit the Company from indemnifying its directors and officers
under this Agreement or otherwise. For example, the Company and Indemnitee
acknowledge that the Securities and Exchange Commission (the "SEC") has taken
the position that indemnification is not permissible for liabilities arising
under certain federal securities laws, and federal legislation prohibits
indemnification for certain ERISA violations. Indemnitee understands and
acknowledges that the Company has undertaken or may be required in the future to
undertake with the SEC to submit the question of indemnification to a court in
certain circumstances for a determination of the Company's right under public
policy to indemnify Indemnitee.

         7. OFFICER AND DIRECTOR LIABILITY INSURANCE. The Company shall, from
time to time, make the good faith determination whether or not it is practicable
for the Company to

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obtain and maintain a policy or policies of insurance with reputable insurance
companies providing the officers and directors of the Company with coverage for
losses from wrongful acts, or to ensure the Company's performance of its
indemnification obligations under this Agreement. Among other considerations,
the Company will weigh the costs of obtaining such insurance coverage against
the protection afforded by such coverage. In all policies of director and
officer liability insurance, Indemnitee shall be named as an insured in such a
manner as to provide Indemnitee the same rights and benefits as are accorded to
the most favorably insured of the Company's directors, if Indemnitee is a
director; or of the Company's officers, if Indemnitee is not a director of the
Company but is an officer; or of the Company's key employees, if Indemnitee is
not an officer or director but is a key employee. Notwithstanding the foregoing,
the Company shall have no obligation to obtain or maintain such insurance if the
Company determines in good faith that such insurance is not reasonably
available, if the premium costs for such insurance are disproportionate to the
amount of coverage provided, if the coverage provided by such insurance is
limited by exclusions so as to provide an insufficient benefit, or if Indemnitee
is covered by similar insurance maintained by a parent or subsidiary of the
Company.

         8. SEVERABILITY. Nothing in this Agreement is intended to require or
shall be construed as requiring the Company to do or fail to do any act in
violation of applicable law. The Company's inability, pursuant to court order,
to perform its obligations under this Agreement shall not constitute a breach of
this Agreement. The provisions of this Agreement shall be severable as provided
in this Section 8. If this Agreement or any portion hereof shall be invalidated
on any ground by any court of competent jurisdiction, then the Company shall
nevertheless indemnify Indemnitee to the full extent permitted by any applicable
portion of this Agreement that shall not have been invalidated, and the balance
of this Agreement not so invalidated shall be enforceable in accordance with its
terms.

         9. EXCEPTIONS. Any other provision herein to the contrary
notwithstanding, the Company shall not be obligated pursuant to the terms of
this Agreement:

                  (a) CLAIMS INITIATED BY INDEMNITEE. To indemnify or advance
         expenses to Indemnitee with respect to proceedings or claims initiated
         or brought voluntarily by Indemnitee and not by way of defense, except
         with respect to proceedings brought to establish or enforce a right to
         indemnification under this Agreement or any other statute or law or
         otherwise as required under Section 145 of the Delaware General
         Corporation Law, but such indemnification or advancement of expenses
         may be provided by the Company in specific cases if the Board of
         Directors finds it to be appropriate;

                  (b) LACK OF GOOD FAITH. To indemnify Indemnitee for any
         expenses incurred by Indemnitee with respect to any proceeding
         instituted by Indemnitee to enforce or interpret this Agreement, if a
         court of competent jurisdiction determines that each of the material
         assertions made by Indemnitee in such proceeding was not made in good
         faith or was frivolous;

                  (c) INSURED CLAIMS. To indemnify Indemnitee for expenses or
         liabilities of any type whatsoever (including, but not limited to,
         judgments, fines, ERISA excise taxes or penalties, and amounts paid in
         settlement) to the extent such expenses or liabilities have been

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         paid directly to Indemnitee by an insurance carrier under a policy of
         officers' and directors' liability insurance maintained by the Company;
         or

                  (d) CLAIMS UNDER SECTION 16(B). To indemnify Indemnitee for
         expenses or the payment of profits arising from the purchase and sale
         by Indemnitee of securities in violation of Section 16(b) of the
         Securities Exchange Act of 1934, as amended, or any similar successor
         statute.

         10. CONSTRUCTION OF CERTAIN PHRASES.

                  (a) For purposes of this Agreement, references to the
         "Company" shall include, in addition to the resulting corporation, any
         constituent corporation (including any constituent of a constituent)
         absorbed in a consolidation or merger which, if its separate existence
         had continued, would have had power and authority to indemnify its
         directors, officers, and employees or agents, so that if Indemnitee is
         or was a director, officer, employee or agent of such constituent
         corporation, or is or was serving at the request of such constituent
         corporation as a director, officer, employee or agent of another
         corporation, partnership, joint venture, trust or other enterprise,
         Indemnitee shall stand in the same position under the provisions of
         this Agreement with respect to the resulting or surviving corporation
         as Indemnitee would have with respect to such constituent corporation
         if its separate existence had continued.

                  (b) For purposes of this Agreement, references to "other
         enterprises" shall include employee benefit plans; references to
         "fines" shall include any excise taxes assessed on Indemnitee with
         respect to an employee benefit plan; and references to "serving at the
         request of the Company" shall include any service as a director,
         officer, employee or agent of the Company which imposes duties on, or
         involves services by, such director, officer, employee or agent with
         respect to an employee benefit plan, its participants, or
         beneficiaries; and if Indemnitee acted in good faith and in a manner
         Indemnitee reasonably believed to be in the interest of the
         participants and beneficiaries of an employee benefit plan, Indemnitee
         shall be deemed to have acted in a manner "not opposed to the best
         interests of the Company" as referred to in this Agreement.

         11. ATTORNEYS' FEES. In the event that any action is instituted by
Indemnitee under this Agreement to enforce or interpret any of the terms hereof,
Indemnitee shall be entitled to be paid all court costs and expenses, including
reasonable attorneys' fees, incurred by Indemnitee with respect to such action,
unless as a part of such action, the court of competent jurisdiction determines
that each of the material assertions made by Indemnitee as a basis for such
action were not made in good faith or were frivolous. In the event of an action
instituted by or in the name of the Company under this Agreement or to enforce
or interpret any of the terms of this Agreement, Indemnitee shall be entitled to
be paid all court costs and expenses, including attorneys' fees, incurred by
Indemnitee in defense of such action (including with respect to Indemnitee's
counterclaims and cross-claims made in such action), unless as a part of such
action the court determines that each of Indemnitee's material defenses to such
action were made in bad faith or were frivolous.

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         12. MISCELLANEOUS.

                  (a) GOVERNING LAW. This Agreement and all acts and
         transactions pursuant hereto and the rights and obligations of the
         parties hereto shall be governed, construed and interpreted in
         accordance with the laws of the State of Delaware, without giving
         effect to principles of conflict of law.

                  (b) ENTIRE AGREEMENT; ENFORCEMENT OF RIGHTS. This Agreement
         sets forth the entire agreement and understanding of the parties
         relating to the subject matter herein and merges all prior discussions
         between them. No modification of or amendment to this Agreement, nor
         any waiver of any rights under this Agreement, shall be effective
         unless in writing signed by the parties to this Agreement. The failure
         by either party to enforce any rights under this Agreement shall not be
         construed as a waiver of any rights of such party.

                  (c) CONSTRUCTION. This Agreement is the result of negotiations
         between and has been reviewed by each of the parties hereto and their
         respective counsel, if any; accordingly, this Agreement shall be deemed
         to be the product of all of the parties hereto, and no ambiguity shall
         be construed in favor of or against any one of the parties hereto.

                  (d) NOTICES. Any notice, demand or request required or
         permitted to be given under this Agreement shall be in writing and
         shall be deemed sufficient when delivered personally or sent by
         telegram or forty-eight (48) hours after being deposited in the U.S.
         mail, as certified or registered mail, with postage prepaid, and
         addressed to the party to be notified at such party's address as set
         forth below or as subsequently modified by written notice.

                  (e) COUNTERPARTS. This Agreement may be executed in two or
         more counterparts, each of which shall be deemed an original and all of
         which together shall constitute one instrument.

                  (f) SUCCESSORS AND ASSIGNS. This Agreement shall be binding
         upon the Company and its successors and assigns, and inure to the
         benefit of Indemnitee and Indemnitee's heirs, legal representatives and
         assigns.

                  (g) SUBROGATION. In the event of payment under this Agreement,
         the Company shall be subrogated to the extent of such payment to all of
         the rights of recovery of Indemnitee, who shall execute all documents
         required and shall do all acts that may be necessary to secure such
         rights and to enable the Company to effectively bring suit to enforce
         such rights.

                            [Signature Page Follows]

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         The parties hereto have executed this Agreement as of the day and year
set forth on the first page of this Agreement.

                                        OIL STATES INTERNATIONAL, INC.

                                        By:
                                           -------------------------------------
                                        Name:
                                             -----------------------------------
                                        Title:
                                              ----------------------------------

                                        Address: Three Allen Center
                                                 333 Clay Street, Suite 3460
                                                 Houston, Texas 77002

AGREED TO AND ACCEPTED:

Indemnitee:
            ----------------------------

----------------------------------------
             (Signature)

Address:

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                                                                     EXHIBIT 3.5
             MediChem Life Sciences, Inc. 2000 Stock Incentive Plan
             ------------------------------------------------------

Article 1.     Establishment, Objectives and Duration
               --------------------------------------

       1.1 Establishment of the Plan. MediChem Life Sciences, Inc., a Delaware
corporation, has adopted this "MediChem Life Sciences, Inc. 2000 Stock Incentive
Plan."  Capitalized terms used herein will have the meanings given to them in
Article 2. The Plan permits the grant of Nonqualified Stock Options, Incentive
Stock Options, Stock Appreciation Rights, Restricted Stock, and Performance
Shares. In addition, the Plan provides the opportunity for the deferral of the
payment of salary, bonuses and other forms of incentive compensation.

       1.2 Objectives of the Plan. The Plan's objectives are to optimize the
profitability and growth of the Company through long-term incentives that are
consistent with the Company's objectives and that link Participants' interests
to those of the Company's stockholders; to provide Participants with an
incentive for excellence in individual performance; to promote teamwork among
Participants; and to give the Company a significant advantage in attracting and
retaining officers, key employees and directors.

       1.3 Effective Date and Term of the Plan. The Plan will be effective
October 31, 2000. The Board may make Awards and issue Shares under the Plan at
any time after the Effective Date and before the termination of the Plan. No
Option that is intended to be an Incentive Stock Option may be granted under the
Plan until the Company's stockholders approve the Plan. If such stockholder
approval is not obtained within 12 months after the Board's adoption of the
Plan, then no Options may be granted under the Plan that are intended to be
Incentive Stock Option. The Plan will terminate upon the earliest of (i) the
tenth anniversary of the Effective Date, (ii) the tenth anniversary of the date
the Company's stockholders approve the Plan, or (iii) the date on which the
Company terminates the Plan in accordance with Article 13. Upon such Plan
termination, all Awards outstanding under the Plan will continue to have full
force and effect in accordance with the terms of the Award Agreement evidencing
such Award.

Article 2.     Definitions
               -----------

        Whenever used in the Plan, the following terms have the meanings set
forth below, and when the meaning is intended, the initial letter of the word
will be capitalized:

        "Advisor" means a consultant, advisor or other independent service
provider to any of the Company Parties, or an individual who is not an Employee
but is an employee of one of the Company Parties.

        "Affiliate" means any corporation that is a parent or subsidiary
corporation (as Code Sections 424(e) and (f) define those terms) with respect to
the Company.

        "Award" means, individually or collectively, a grant under this Plan to
a Participant of Nonqualified Stock Options, Incentive Stock Options, Stock
Appreciation Rights, Restricted Stock, or Performance Shares.

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        "Award Agreement" means an agreement entered into by the Company and a
Participant setting forth the terms and provisions applicable to an Award or
Awards granted to the Participant.

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

        "Cause" will have the meaning set forth in any employment, consulting,
or other agreement between any of the Company Parties and the Participant. If
there is no employment, consulting, or other agreement between any of the
Company Parties and the Participant, or if such agreement does not define
"Cause," then "Cause" will mean the Participant's (i) conviction or plea of nolo
contendere to a felony or crime involving an act of moral turpitude, dishonesty
or misfeasance; or (ii) engaging in gross misconduct, dishonesty, or fraud that
is materially or demonstrably injurious to any of the Company Parties.

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

        "Committee" means, as specified in Article 3, the Compensation Committee
of the Board or such other committee as may be appointed by the Board to
administer the Plan.

        "Common Stock" means the Company's Common Stock, par value $0.01 per
share.

        "Company" means MediChem Life Sciences, Inc., a Delaware corporation,
and any successor thereto as provided in Article 15.

        "Company Parties" means, collectively and without duplication, the
Company and any of its Affiliates.

        "Designated Beneficiary" means the Person or Persons the Participant
designates (who may be designated contingently or successively) from time to
time on a signed form prescribed by the Board, filed with the Company during the
Participant's lifetime, as the beneficiary of any amounts or benefits the
Participant owns or is to receive under the Plan. Each beneficiary designation
will revoke all prior designations by the same Participant. If the Participant
has not designated a beneficiary under the Plan, or if the Participant's
Designated Beneficiary is not living on the relevant date hereunder, the Company
will treat the Participant's estate as the Designated Beneficiary.

        "Director" means any individual who is a member of the Board of
Directors.

        "Disability" will have the meaning set forth in any employment,
consulting, or other agreement between any of the Company Parties and the
Participant. If there is no employment, consulting, or other agreement between
any of the Company Parties and the Participant, or if such agreement does not
define "Disability," then "Disability" will mean (i) any permanent physical or
mental incapacity or disability rendering the Participant unable or unfit to
perform effectively the duties and obligations of the Participant's Service, or
(ii) any illness, accident, injury, physical or mental incapacity or other
disability, which condition has rendered the Participant unable or unfit to
perform effectively the duties and obligations of the Participant's

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Service for a period of at least 90 days in any 12-consecutive month period, in
either case, as determined in the Board's good faith judgment.

        "Effective Date" means October 31, 2000.

        "Employee" means a person employed by the Company or an Affiliate in a
common law employee-employer relationship.

        "Exchange Act" means the Securities Exchange Act of 1934, as amended
from time to time, or any successor act thereto.

        "Exercise Price" means the price at which a Share may be purchased by a
Participant pursuant to an Option.

        "Fair Market Value" means:

              (a) the average of the high and low trading prices of the Shares
        on the New York Stock Exchange (or, if the Shares are not traded on the
        New York Stock Exchange, on any other exchange on which they are
        traded); if the Shares are not traded on any exchange, the fair market
        value of the Shares as determined by the Board or, at the discretion of
        the Board, by an independent appraiser selected by the Board; but

              (b) notwithstanding the foregoing, for Options granted in
        connection with, and as of the date of, the initial public offering of
        the Shares, the initial public offering price of the Shares.

        "Incentive Stock Option" or "ISO" means an option to purchase Shares
granted under Article 6 that is designated as an Incentive Stock Option and that
is intended to meet the requirements of Code Section 422.

        "Nonqualified Stock Option" or "NQSO" means an option to purchase Shares
granted under Article 6 that is not intended to meet the requirements of Code
Section 422.

        "Option" means an Incentive Stock Option or a Nonqualified Stock Option,
as described in Article 6.

        "Participant" means a Person whom the Committee has selected to receive
an Award under the Plan pursuant to Section 5.2, or whom has an outstanding
Award granted under the Plan.

        "Performance-Based Exception" means the performance-based exception from
the tax deductibility limitations of Code Section 162(m) and any regulations
promulgated thereunder.

        "Performance Period" means the time period during which performance
objectives must be met in order for a Participant to earn Performance Shares
granted under Article 9.

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<PAGE>

        "Performance Share" means an Award with an initial value equal to the
Fair Market Value on the date of grant that is based on the Participant's
attainment of performance objectives, as described in Article 9.

        "Person" has the meaning ascribed to that term in Section 3(a)(9) of the
Exchange Act and used in Sections 13(d) and 14(d) thereof, including a "group"
as defined in Section 13(d) thereof.

        "Plan" means the MediChem Life Sciences, Inc. 2000 Stock Incentive Plan,
as set forth in this document.

        "Restriction Period" means the period during which the transfer of
Shares of Restricted Stock is limited in some way (based on the passage of time,
the achievement of performance objectives, or the occurrence of other events as
determined by the Committee, at its discretion), and/or the Restricted Stock is
not vested.

        "Restricted Stock" means a contingent grant of stock awarded to a
Participant pursuant to Article 8.

        "Retirement" will have the meaning set forth in any employment,
consulting, or other agreement between any of the Company Parties and the
Participant. If there is no employment, consulting, or other agreement between
any of the Company Parties and the Participant, or if such agreement does not
define "Retirement," then "Retirement" will mean the normal retirement age
specified under the Company's tax-qualified retirement plan.

        "Sale of the Company" means the sale of the Company by merger,
consolidation, sale of all or substantially all of the Company's assets or sale
of at least 50% of the Company's outstanding Common Stock, except in an offering
of Common Stock to the public.

        "Securities Act" means Securities Act of 1933, as amended from time to
time, or any successor act thereto.

        "Service" means the provision of services in the capacity of (i) an
Employee, (ii) a non-employee member of the Company's Board or the board of
directors of any of the Company Parties, or (iii) a consultant or other
independent advisor to the Company or the Company Parties.

        "Shares" means the shares of the Company underlying an Award or acquired
pursuant to an Award, which generally will be shares of Common Stock; provided
that the Plan may make Awards of, or provide for conversion of Awards or Shares
into, such additional classes of shares as may be made available under the
Company's Certificate of Incorporation from time to time.

        "Stock Appreciation Right" or "SAR" means an Award, granted alone or in
connection with a related Option, designated as an SAR pursuant to the terms of
Article 7.

                                      -4-
<PAGE>

Article 3.     Administration
               --------------

       3.1 Plan Administration. The Plan will be administered by the
Compensation Committee of the Board, or by any other Committee appointed by the
Board, which Committee (unless otherwise determined by the Board) will satisfy
the "outside director" provisions of Code Section 162(m), or any successor
regulation or provision. The members of the Committee will be appointed from
time to time by, and serve at the discretion of, the Board of Directors. The
Committee will act by a majority of its members at the time in office and
eligible to vote on any particular matter, and Committee action may be taken
either by a vote at a meeting or in writing without a meeting.

       3.2 Authority of the Committee. Except as limited by law and subject to
the provisions of this Plan, the Committee will have full power to: select
eligible persons to participate in the Plan; determine the sizes and types of
Awards; determine the class of the Company's Shares to which an Award relates;
determine the terms and conditions of Awards in a manner consistent with the
Plan; construe and interpret the Plan and any agreement or instrument entered
into under the Plan; establish, amend or waive rules and regulations for the
Plan's administration; and (subject to the provisions of Article 13) amend the
terms and conditions of any outstanding Award to the extent they are within the
discretion of the Committee as provided in the Plan. Further, the Committee
will make all other determinations that may be necessary or advisable to
administer the Plan. As permitted by law and consistent with Section 3.1, the
Committee may delegate some or all of its authority under the Plan.

       3.3 Decisions Binding. All determinations and decisions made by the
Committee pursuant to the provisions of the Plan will be final, conclusive and
binding on all persons, including, without limitation, the Company, its Board of
Directors, its stockholders, all Affiliates, Participants and their estates and
beneficiaries.

Article 4.     Shares Subject to the Plan and Maximum Awards
               ---------------------------------------------

       4.1 Number of Shares Available for Awards. Subject to adjustment as
provided below and in Section 4.3, the maximum number of Shares that may be
issued or transferred to Participants under the Plan will be 2,500,000; provided
that, beginning January 1, 2001, and effective each January 1 thereafter, the
maximum number of Shares that may be issued or transferred to Participants under
the Plan will increased by an amount equal to two and one-half percent (2.5%) of
the number of Company Shares then outstanding (on a fully-diluted basis,
counting all Shares subject to Awards under this Plan as outstanding).
Notwithstanding the foregoing, the maximum number of shares that may be issued
or transferred to Participants as Incentive Stock Options is 500,000, and the
maximum number of shares that may be issued or transferred to Participants under
Restricted Stock is 500,000. The maximum number of Shares and Share equivalent
units that may be granted during any calendar year to any one Participant under
all types of awards available under the Plan is 500,000 (on an aggregate basis);
the foregoing limit will apply whether the awards are paid in Shares or in cash.
All limits described in this Section 4.1 are subject to adjustment as provided
in Section 4.3

                                      -5-
<PAGE>

        4.2  Lapsed Awards.  If any Award granted under this Plan is canceled,
terminates, expires or lapses for any reason, any Shares subject to the Award
will again be available for the grant of an Award under the Plan.

        4.3  Adjustments in Authorized Shares.

             (a)  If the Shares, as currently constituted, are changed into or
        exchanged for a different number or kind of shares of stock or other
        securities of the Company or of another corporation (whether because of
        merger, consolidation, recapitalization, reclassification, split,
        reverse split, combination of shares, or otherwise) or if the number of
        Shares is increased through the payment of a stock dividend, then the
        Committee will substitute for or add to each Share previously
        appropriated, later subject to, or which may become subject to, an
        Award, the number and kind of shares of stock or other securities into
        which each outstanding Share was changed for which each such Share was
        exchanged, or to which each such Share is entitled, as the case may be.
        The Committee, in its sole discretion, also may amend outstanding Awards
        as to price and other terms, to the extent necessary to reflect the
        events described above. If there is any other change in the number or
        kind of the outstanding Shares, of any stock or other securities into
        which the outstanding Shares have been changed, or for which they have
        been exchanged, the Committee, in its sole discretion, may adjust any
        Award already granted or which may be afterward granted.

             (b)  Fractional Shares resulting from any adjustment in Awards
        pursuant to this Section may be settled in cash or otherwise as the
        Committee determines. The Company will give notice of any adjustment to
        each Participant who holds an Award that has been adjusted and the
        adjustment (whether or not such notice is given) will be effective and
        binding for all Plan purposes.

Article 5.   Eligibility and Participation
             -----------------------------

        5.1  Eligibility.  The following persons are eligible to receive Awards
under this Plan:

             (a)  any Employee;

             (b)  any Advisor; and

             (c)  any non-employee member of the Company's Board or the board
        of directors of any of the Company Parties.

        No Employee, Advisor, Director or Participant will have the right to
receive an Award under this Plan, or, having received any Award, to receive a
future Award.

        5.2  Actual Participation.  The Committee will determine, within the
limits set forth below, those eligible persons to whom it will grant Awards.
Each eligible person whom the Board has selected to receive an Award will become
a Participant in the Plan upon execution of an Award Agreement.

                                      -6-
<PAGE>

Article 6.   Stock Options
             -------------

        6.1  Grant of Options.  Subject to the terms and provisions of the Plan,
the Committee may grant Options to any Employee, Advisor or non-Employee
Director in the number, and upon the terms, and at any time and from time to
time, as the Committee determines.

        6.2  Award Agreement.  Each Option grant will be evidenced by an Award
Agreement that specifies the duration of the Option, the number of Shares to
which the Option pertains, the class of the Company's Common Stock to which the
Option pertains, the manner, time, and rate of exercise and/or vesting of the
Option, and such other provisions as the Committee determines.  The Award
Agreement will also specify whether the Option is intended to be an ISO or an
NQSO, and whether reload options will be granted.

        6.3  Exercise Price.  Each Option grant and Award Agreement will specify
the Exercise Price for each Share subject to an Option, which will be at least
one hundred percent (100%) of the Share's Fair Market Value on the date the
Option is granted.  If the Option is an ISO and the Employee to whom the Option
is granted is a Ten Percent Owner of the Company or an Affiliate, the Exercise
Price for each Share subject to an Option will be at least one hundred ten
percent (110%) of the Share's Fair Market Value on the date the Option is
granted.

        6.4  Duration of Options.  Each Option will expire at the time
determined by the Committee at the time of grant and specified in the Award
Agreement, but no later than the tenth anniversary of the date of its grant.

        If the Option is an ISO and the Employee to whom the Option is granted
is a Ten Percent Owner of the Company or an Affiliate, the Option will expire
upon the earlier of (i) the time specified by the Committee in the Award
Agreement, or (ii) the fifth anniversary of the date of grant.

        6.5  Dividend Equivalents.  The Committee may, but shall not be required
to, grant payments in connection with Options that are equivalent to dividends
declared and paid on the Shares underlying the Options.  Such dividend
equivalent payments may be made in cash or in Shares, upon such terms as the
Committee, in its sole discretion, deems appropriate.

        6.6  Exercise of Options.  Options will be vested and exercisable at
such times and be subject to such restrictions and conditions as the Committee
in each instance approves, which need not be the same for each Award or for each
Participant, and sets forth in the Award Agreement.

        6.7  Payment.  The holder of an Option may exercise the Option only by
delivering a written notice of exercise to the Company setting forth the number
of Shares  as to which the Option is to be exercised, together with full payment
at the Exercise Price for the Shares as to which the Option is exercised and any
withholding tax relating to the exercise of the Option.

        The Exercise Price per share of Common Stock with respect to each Option
exercise shall be payable in United States dollars, in cash by check made
payable to the Company.  If the

                                      -7-
<PAGE>

Common Stock is registered under Section 12(g) of the Securities Act, the
Participant also may pay the exercise price in one of the following forms:

          (a) in shares of Common Stock the Participant has held for a period
     sufficient to avoid a charge to the Company's earnings for financial
     reporting purposes, with such shares to be valued at the Fair Market Value
     on the date of exercise;

          (b) through a special sale and remittance procedure pursuant to which
     the Participant concurrently provides irrevocable written instructions to
     (i) a Company-designated brokerage firm to effect the immediate sale of the
     purchased shares and remit to the Company, out of the sale proceeds
     available on the settlement date, sufficient funds to cover the aggregate
     exercise price payable for the purchased shares plus all applicable
     Federal, state and local income and employment taxes required to be
     withheld by the Company by reason of such exercise, and (ii) the Company to
     deliver the certificates for the purchased shares directly to such
     brokerage firm in order to complete the sale.

Cashless exercise must meet the requirements of the Federal Reserve Board's
Regulation T and any applicable securities law restrictions.

     The Company will issue, in the name of the Participant (or, if applicable,
the legatee(s), executor(s), personal representative(s), or distributee(s) of a
deceased Participant), stock certificates representing the total number of
shares of Option Stock issuable pursuant to the exercise of any Option as soon
as reasonably practicable after such exercise.

     6.8  Restrictions on Share Transferability.  The Committee may impose such
restrictions on any Shares acquired through exercise of an Option as it deems
necessary or advisable, including, without limitation, restrictions under
applicable federal securities laws, under the requirements of any stock exchange
or market upon which the Shares are then listed and/or traded, and under any
blue sky or state securities laws applicable to the Shares.

     6.9  Termination of Service.  Each Option Award Agreement will set forth
the extent to which the Participant has the right to exercise the Option after
his or her termination of Service.  These terms will be determined by the
Committee in its sole discretion, need not be uniform among all Options, and may
reflect, among other things, distinctions based on the reasons for termination
of Service.

     6.10 Nontransferability of Options.  Except as otherwise provided in a
Participant's Award Agreement, no Option granted under the Plan may be sold,
transferred, pledged, assigned, or otherwise alienated or hypothecated, other
than by will or by the laws of descent and distribution.  Further, except as
otherwise provided in a Participant's Award Agreement, all Options will be
exercisable during the Participant's lifetime only by the Participant or his or
her guardian or legal representative.  The Committee may, in its discretion,
require a Participant's guardian or legal representative to supply it with the
evidence the Committee deems necessary to establish the authority of the
guardian or legal representative to act on behalf of the Participant.

                                      -8-
<PAGE>

        6.11  Reload Options. The Committee may provide for reload options in
the Award Agreement evidencing an Option. Any reload feature will be subject to
the following requirements:

              (a) it must not be added to an already outstanding Option, but
     must be part of the Option as originally granted;

              (b) the reload must be automatic, not subject to the discretion of
     the Committee or anyone else;

              (c) it must have an Exercise Price at least equal to the Fair
     Market Value of a Share at the time of reload;

              (d) it may be granted with respect only to previously-owned Shares
     used to pay the Exercise Price of the original Option, and only if the
     Participant has owned the Shares used to pay the Exercise Price for at
     least six months

              (e) the Award Agreement that contains the reload feature must not
     permit multiple reloads (i.e., no reload Options may be granted on Shares
     acquired through reload Options) and must subject any Option granted on
     reload to a vesting period of at least six months; and

              (f) it must limit the duration of reload Options, by providing
     that an Option granted on reload expires at the same time as the initial
     Option would have.

        6.12  Limitation on Grant of Incentive Stock Options. The Committee may
grant Incentive Stock Options only to Employees. The Committee will not grant an
Option under this Plan as an incentive stock option if it would cause the
aggregate fair market value of stock with respect to which incentive options are
exercisable by the Participant for the first time during a calendar year (under
all plans of the Company and its Affiliates) to exceed $100,000.

Article 7.    Stock Appreciation Rights
              -------------------------

        7.1   Grant of SARs. Subject to the terms and conditions of the Plan,
the Committee may grant SARs to Employees, Advisors and/or non-employee
Directors at any time and from time to time, as it determines. Within the limits
of Article 4, the Committee will have sole discretion to determine the number of
SARs granted to any Employee, Advisor and/or non-employee Director and,
consistent with the provisions of the Plan, to determine the terms and
conditions pertaining to SARs. The grant price of an SAR will equal the Fair
Market Value of a Share on the date of grant of the SAR, and will be specified
in the Award Agreement.

        7.2   Exercise of SARs. SARs may be exercised upon whatever terms and
conditions the Committee, in its sole discretion, imposes and sets forth in the
Award Agreement.

        7.3   Award Agreement.  Each SAR grant will be evidenced by an Award
Agreement that specifies the grant price, the term of the SAR and such other
provisions as the  Committee determines.

                                      -9-
<PAGE>

        7.4   Term of SARs. The term of an SAR will be determined by the
Committee, in its sole discretion and set forth in the Award Agreement, but may
not exceed ten years.

        7.5   Payment of SAR Amount. Upon exercise of an SAR, a Participant will
be entitled to receive payment from the Company in an amount determined by
multiplying:

              (a) the excess (or some portion of the excess as determined at the
        time of the grant by the Committee and specified in the Award Agreement)
        if any, of the Fair Market Value on the date of exercise of the SAR over
        the grant price specified in the Award Agreement; by

              (b) the number of Shares as to which the SAR is exercised.

        At the discretion of the Participant, the payment upon SAR exercise may
be made in cash, in Shares of equivalent Fair Market Value or in some
combination of the two.

        7.6   Termination of Service. Each SAR Award Agreement will set forth
the extent to which the Participant has the right to exercise the SAR after his
or her termination of Service. These terms will be determined by the Committee
in its sole discretion, need not be uniform among all SARs issued under the
Plan, and may reflect, among other things, distinctions based on the reasons for
termination of Service.

        7.7   Nontransferability of SARs.  Except as otherwise provided in a
Participant's Award Agreement, no SAR may be sold, transferred, pledged,
assigned, or otherwise alienated or hypothecated, other than by will or by the
laws of descent and distribution.  Further, except as otherwise provided in a
Participant's Award Agreement, all SARs will be exercisable during the
Participant's lifetime only by the Participant or the Participant's guardian or
legal representative.  The Committee may, in its discretion, require a
Participant's guardian or legal representative to supply it with evidence the
Committee deems necessary to establish the authority of the guardian or legal
representative to act on behalf of the Participant.

Article 8.    Restricted Stock
              ----------------

        8.1   Grant of Restricted Stock. Subject to the terms and provisions of
the Plan, the Committee may, at any time and from time to time, grant Restricted
Stock to Employees, Advisors, and/or non-employee Directors, in such amounts as
the Committee determines.

        8.2   Deferral of Compensation into Restricted Stock. Subject to the
terms and provisions of the Plan, the Committee may, at any time and from time
to time, allow (or require, as to bonuses) selected Employees or non-employee
Directors to defer the payment of any portion of their fees, salary and/or
annual bonuses pursuant to this section. A Participant's deferral under this
section will be credited to the Participant in the form of Shares of Restricted
Stock. The Committee will establish rules and procedures for the deferrals, as
it deems appropriate.

        In consideration for forgoing compensation, the dollar amount deferred
by an Employee or non-employee Director may be increased by twenty-five percent
(or such lesser percentage as

                                     -10-
<PAGE>

the Committee may determine) for purposes of determining the number of Shares of
Restricted Stock to grant the Participant. If a Participant's compensation is
deferred under this Section 8.2, he or she will be credited, as of the date
specified in the Award Agreement, with a number of shares of Restricted Stock
equal to the amount of the deferral (increased as described above) divided by
the Fair Market Value on that date.

     8.3  Award Agreement.  Each Restricted Stock grant will be evidenced by an
Award Agreement that specifies the Restriction Periods, the number of Shares
granted, and such other provisions as the Committee determines.

     8.4  Nontransferability.  The Restricted Stock granted herein may not be
sold, transferred, pledged, assigned, or otherwise alienated or hypothecated,
other than by will or by the laws of descent and distributions, until the end of
the applicable Restriction Period as specified in the Award Agreement, or upon
earlier satisfaction of any other conditions specified by the Committee in its
sole discretion and set forth in the Award Agreement.  All rights with respect
to Restricted Stock will be available during the Participant's lifetime only to
the Participant or the Participant's guardian or legal representative.  The
Committee may, in its discretion, require a Participant's guardian or legal
representative to supply it with evidence the Committee deems necessary to
establish the authority of the guardian or legal representative to act on behalf
of the Participant.

     8.5  Other Restrictions.  The Committee may impose such other conditions
and/or restrictions on any Restricted Stock as it deems advisable and sets forth
in the applicable Award Agreement including, without limitation, restrictions
based upon the achievement of specific performance objectives (Company-wide,
business unit, and/or individual), time-based restrictions on vesting following
the attainment of the performance objectives, and/or restrictions under
applicable federal or state securities laws.  The Committee may provide that
restrictions established under this Section 8.5 as to any given Award will lapse
all at once or in installments.

     The Company may retain the certificates representing Shares of Restricted
Stock in its possession until all conditions and/or restrictions applicable to
the Shares have been satisfied.

     8.6  Payment of Awards.  Except as otherwise provided in this Article 8,
Shares covered by each Restricted Stock grant will become freely transferable by
the Participant after the last day of the applicable Restriction Period.

     8.7  Voting Rights.  The applicable Award Agreement may specify that,
during the Restriction Period, Participants holding Shares of Restricted Stock
may exercise full voting rights with respect to those Shares.

     8.8  Dividends and Other Distributions. The applicable Award Agreement may
specify that, during the Restriction Period, Participants awarded Shares of
Restricted Stock thereunder will be credited with regular cash dividends paid on
those Shares.  Dividends may be paid currently, accrued as contingent cash
obligations, or converted into additional Shares of Restricted Stock, upon such
terms as the Committee establishes and sets forth in the Award Agreement.

                                      -11-
<PAGE>

        The Committee may specify in the applicable Award Agreement, any
restrictions it deems advisable to the crediting and payment of dividends and
other distributions. Without limiting the generality of the preceding sentence,
if the grant or vesting of Restricted Stock is designed to qualify for the
Performance-Based Exception, the Committee may apply any restrictions it deems
appropriate to the payment of dividends declared with respect to the Restricted
Stock, so that the dividends and/or the Restricted Stock continue to be eligible
for the Performance-Based Exception.

        8.9  Termination of Service.  Each Award Agreement will set forth the
extent to which the Participant has the right to retain unvested Restricted
Stock after his or her termination of Service. These terms will be determined by
the Committee in its sole discretion, need not be uniform among all Awards of
Restricted Stock, and may reflect, among other things, distinctions based on the
reasons for termination of Service.

Article 9.   Performance Shares
             ------------------

        9.1  Grant of Performance Shares.  Subject to the terms of the Plan, the
Committee may grant Performance Shares to Participants in such amounts and upon
such terms, and at any time and from time to time, as the Committee determines
and sets forth in an Award Agreement.

        9.2  Value of Performance Shares.  Each Performance Share will have an
initial value equal to the Fair Market Value on the date of grant. The Committee
will set performance objectives in its discretion that, depending on
the extent to which they are met, will determine the number and/or value of
Performance Shares that will be paid out to the Participant. For purposes of
this Article 9, the time period during which the performance objectives must be
met will be called a "Performance Period" and will be set by the Committee in
                      ------------------
its discretion and set forth in an Award Agreement.

        9.3  Earning of Performance Shares.  Subject to the terms of this Plan,
after the applicable Performance Period has ended, the holder of Performance
Shares will be entitled to receive payout on the number and value of Performance
Shares earned by the Participant over the Performance Period, to be determined
as a function of the extent to which the corresponding performance objectives
have been achieved.

        9.4  Award Agreement. Each grant of Performance Shares will be evidenced
by an Award Agreement specifying the material terms and conditions of the Award
including the form of payment of earned Performance Shares, the class of Common
Stock to which the Award pertains, and such other provisions as the Committee
determines.

        9.5  Form and Timing of Payment of Performance Shares. Payment of earned
Performance Shares will be made as soon as practicable after the close of the
applicable Performance Period, in a manner determined by the Committee in its
sole discretion and set forth in an Award Agreement. The Committee will pay
earned Performance Shares in the form of cash, in Shares, or in a combination of
cash and Shares, as specified in the Award Agreement. Performance Shares may be
paid subject to any restrictions deemed appropriate by the Committee.

                                     - 12 -
<PAGE>

     9.6    Termination of Service Due to Death or Disability.  Unless
determined otherwise by the Committee and set forth in the Participant's Award
Agreement, if a Participant's Service is terminated by reason of death or
Disability during a Performance Period, the Participant will receive a prorated
payout of the Performance Shares, as specified by the Committee in its
discretion in the Award Agreement. Payment of earned Performance Shares will be
made at a time specified by the Committee in its sole discretion and set forth
in the Participant's Award Agreement.

     9.7    Termination of Service for Other Reasons.  If a Participant's
Service terminates during a Performance Period for any reason other than death
or Disability, the Participant will forfeit all Performance Shares to the
Company, unless the Participant's Award Agreement provides otherwise.

     9.8    Nontransferability.  Except as otherwise provided in a Participant's
Award Agreement, Performance Shares may not be sold, transferred, pledged,
assigned or otherwise alienated or hypothecated, other than by will or by the
laws of descent and distribution. Further, except as otherwise provided in a
Participant's Award Agreement, a Participant's rights under the Plan will be
exercisable during the Participant's lifetime only by the Participant or
Participant's guardian or legal representative. The Committee may, in its
discretion, require a Participant's guardian or legal representative to supply
it with evidence the Committee deems necessary to establish the authority of the
guardian or legal representative to act on behalf of the Participant.

Article 10. Breach of Restrictive Covenants
            -------------------------------

     An Award Agreement may provide that, notwithstanding any other provision of
this Plan to the contrary, if the Participant breaches the non-compete, non-
solicitation or non-disclosure provisions of the Award Agreement, the
Participant will forfeit:

            (a)   any and all Awards granted or transferred to him or her under
     the Plan, including Awards that have become vested and exercisable;

            (b)   any and all Shares awarded or transferred to him or her under
     the Plan, including Awards as to which all other applicable restrictions
     have lapsed; and/or

            (c)   the profit the Participant has realized on the exercise of any
     Options, which is the difference between the Exercise Price of the Options
     and the applicable Fair Market Value of the Shares (the Participant may be
     required to repay such difference to the Company).

Article 11. Deferrals
            ---------

     The Committee may permit or require a Participant to defer receipt of cash
or Shares that would otherwise be due to him or her by virtue of an Option or
SAR exercise, the lapse or waiver of restrictions on Restricted Stock, or the
satisfaction of any requirements or objectives with respect to Performance
Shares. If any such deferral election is permitted or required, the Committee
will, in its sole discretion, establish rules and procedures for such deferrals.
Notwithstanding the foregoing, the Committee in its sole discretion may defer
payment of cash

                                     - 13 -
<PAGE>

or the delivery of Shares that would otherwise be due to a Participant under the
Plan if payment or delivery would result in the Company's or any Company
Parties' being unable to deduct compensation under Code Section 162(m). Deferral
of payment or delivery by the Committee may continue until the Company Party is
able to deduct the payment or delivery under the Code.

Article 12. Rights of Participants
            ----------------------

     Nothing in the Plan will interfere with or limit in any way the right of
any of the Company Parties to terminate any Participant's Service at any time,
or confer upon any Participant any right to continue in the Service of any of
the Company Parties.

Article 13. Amendment, Modification and Termination
            ---------------------------------------

     13.1   Amendment, Modification and Termination.  Subject to Section 13.2,
the Board may at any time and from time to time, alter, amend, modify or
terminate the Plan in whole or in part.  Subject to the terms and conditions of
the Plan, the Committee may modify, extend or renew outstanding Awards under the
Plan, or accept the surrender of outstanding Awards (to the extent not already
exercised) and grant new Awards in substitution of them (to the extent not
already exercised).  The Committee will not, however, modify any outstanding
Incentive Stock Option so as to specify a lower Exercise Price. Notwithstanding
the foregoing, no modification of an Award will, without the prior written
consent of the Participant, materially impair any rights or obligations under
any Award already granted under the Plan.

     13.2   Adjustment of Awards Upon the Occurrence of Certain Unusual or
Nonrecurring Events.  In recognition of unusual or nonrecurring events
(including, without limitation, the events described in Section 4.3) affecting
the Company or its financial statements, or in recognition of changes in
applicable laws, regulations, or accounting principles, and, whenever the
Committee determines that adjustments are appropriate in order to prevent
dilution or enlargement of the benefits or potential benefits intended to be
made available under the Plan, the Committee may, using reasonable care, make
adjustments in the terms and conditions of, and the criteria included in,
Awards. In case of an Award designed to qualify for the Performance-Based
Exception, the Committee will take care not to make an adjustment that would
disqualify the Award.

     13.3   Compliance with Code Section 162(m).  Awards will comply with the
requirements of Code Section 162(m), unless the Committee determines that such
compliance is not desired with respect to an Award available for grant under the
Plan. In addition, if changes are made to Code Section 162(m) to permit greater
flexibility as to any Award available under the Plan, the Committee may, subject
to this Article 15, make any adjustments it deems appropriate.

Article 14. Withholding
            -----------

     14.1   Tax Withholding.  The Company will have the power and the right to
deduct or withhold, or require a Participant to remit to the Company, an amount
(either in cash or Shares) sufficient to satisfy federal, state, and local
taxes, domestic or foreign, required by law or regulation to be withheld with
respect to any taxable event arising under this Plan. Each Award

                                     - 14 -
<PAGE>

Agreement will specify whether reload options will be granted in connection with
payment of tax withholding by tendering Shares owned by the Participant.

     14.2   Share Withholding.  With respect to withholding required upon the
exercise of Options or SARs, upon the lapse of restrictions on Restricted Stock,
or upon any other taxable event arising as a result of Awards granted hereunder,
the Company may satisfy the minimum withholding requirement for supplemental
wages, in whole or in part, by withholding Shares having a Fair Market Value
(determined on the date the Participant recognizes taxable income on the Award)
equal to the withholding tax required to be collected on the transaction.  The
Participant may elect, subject to the approval of the Committee, to deliver the
necessary funds to satisfy the withholding obligation to the Company, in which
case there will be no reduction in the Shares otherwise distributable to the
Participant.

Article 15. Successors
            ----------

     All obligations of the Company under the Plan or any Award Agreement will
be binding on any successor to the Company, whether the existence of the
successor results from a direct or indirect purchase of all or substantially all
of the Company's Shares, or a merger, consolidation, or otherwise.

Article 16. Legal Construction
            ------------------

     16.1   Number.  Except where otherwise indicated by the context, any plural
term used in this Plan includes the singular and a singular term includes the
plural.

     16.2   Severability.  If any provision of the Plan is held illegal or
invalid for any reason, the illegality or invalidity will not affect the
remaining parts of the Plan, and the Plan will be construed and enforced as if
the illegal or invalid provision had not been included.

     16.3   Requirements of Law.  The granting of Awards and the issuance of
Share and/or cash payouts under the Plan will be subject to all applicable laws,
rules, and regulations, and to any approvals by governmental agencies or
national securities exchanges as may be required.

     16.4   Securities Law Compliance.  As to  any individual who is, on the
relevant date, an officer, director or ten percent beneficial owner of any class
of the Company's equity securities that is registered pursuant to Section 12 of
the Exchange Act, all as defined under Section 16 of the Exchange Act,
transactions under this Plan are intended to comply with all applicable
conditions of Rule 16b-3 under the Exchange Act, or any successor rule.  To the
extent any provision of the Plan or action by the Committee fails to so comply,
it will be deemed null and void, to the extent permitted by law and deemed
advisable by the Committee.

     16.5   Awards to Foreign Nationals and Employees Outside the United States.
To the extent the Committee deems it necessary, appropriate or desirable to
comply with foreign law of practice and to further the purposes of this Plan,
the Committee may, without amending the Plan, (i) establish rules applicable to
Awards granted to Participants who are foreign nationals, are employed outside
the United States, or both, including rules that differ from those set forth in
this Plan, and (ii) grant Awards to such Participants in accordance with those
rules.

                                     - 15 -
<PAGE>

     16.6   Unfunded Status of the Plan.  The Plan is intended to constitute an
"unfunded" plan for incentive and deferred compensation.  With respect to any
payments or deliveries of Shares not yet made to a Participant by the Company,
the Participant's rights are no greater than those of a general creditor of the
Company.  The Committee may authorize the establishment of trusts or other
arrangements to meet the obligations created under the Plan, so long as the
arrangement does not cause the Plan to lose its legal status as an unfunded
plan.

     16.7   Governing Law.  To the extent not preempted by federal law, the Plan
and all agreements hereunder will be construed and enforced in accordance with
and governed by the laws of the State of Delaware, without giving effect to its
conflict of laws principles.

                                     - 16 -

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