Document:

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                                                                   EXHIBIT 10.25
                                                                           -----

                               OPERATING AGREEMENT

         THIS AGREEMENT, dated as of May 12, 2000 (the "Effective Date"), is
made by and between UnitedAuto Group, Inc., a Delaware corporation, with offices
at 13400 West Outer Drive, Suite B-36, Detroit Michigan 48239 ("UAG"), Penske
Automotive Group, Inc., a Delaware corporation with offices at 3534 North Peck
Road, El Monte, CA 91731 ("PAG" and collectively with UAG, "P/UAG") and
CarsDirect.com, Inc., a Delaware corporation, with offices at 10567 Jefferson
Blvd., Culver City, CA 90232 ("CarsDirect"). CarsDirect and the P/UAG shall be
collectively referred to herein as the "Parties."

                                   BACKGROUND

         WHEREAS PAG and UAG are leading automotive retailers with more than one
hundred (100) automotive franchises;

         WHEREAS CarsDirect is the national leader in online car-buying via its
website currently located at the URL http://www.carsdirect.com (the "CarsDirect
Site");

         WHEREAS the Company and each of UAG, PAG, HAC II, Inc. and Penske
Corporation are concurrently entering into consulting agreements (the
"Consulting Agreement").

         WHEREAS the Company, Penske Internet Capital Group, L.L.C., UAG, HAC
II, Inc. and PAG are concurrently entering into a Series D Preferred Stock
Purchase and Warrant Agreement (the "Investment Agreement"); and

         WHEREAS CarsDirect and PAG and UAG wish severally (except as set forth
in the Warrant Agreement) to establish a strategic relationship for purposes
other than the raising of capital pursuant to which PAG and UAG will each supply
Automobiles to CarsDirect and CarsDirect will Source Automobiles from PAG and
UAG, subject to the terms and conditions further defined herein.

                                    AGREEMENT

         NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereby agree as
follows:

1.       DEFINITIONS.

         As used herein, the following terms have the following defined
meanings:

         "AFFILIATE" means, with respect to a party, any Person Controlling,
Controlled by or under common Control with such party.

         "AUTOMOBILE" means any new motor vehicle under 10,000 pounds gross
vehicle weight designed for use on public roadways, including but not limited
to, standard passenger cars, sport utility vehicles, vans, minivans and light
trucks.

         "AUTOMOBILE MANUFACTURER" means the original equipment manufacturers of
Automobiles (e.g. Ford Motor Corporation, General Motors Corporation, etc.),
including their distributors and Affiliates.
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         "AUTOMOBILE PURCHASE" means the purchase or lease of a Sourced
Automobile by a CarsDirect customer. For the purposes of this Agreement, an
Automobile Purchase shall be deemed consummated upon delivery of the purchased
Automobile to the applicable CarsDirect customer and the confirmation of such
delivery (and acceptance thereof) by CarsDirect in accordance with its standard
practices.

         "AVAILABLE" means shown in the new Automobile inventory or incoming
inventory of the applicable P/UAG Dealer(s) in effect at the time of the
Sourcing Request and unsold or unleased and in existence at the time of the
Sourcing Request.

         "CARSDIRECT COMPETITOR" means any existing or future online or web site
service which enables individuals or entities to initiate, process, engage and
consummate the purchase of an Automobile, including, but not limited to,
AutoNation Direct, Autobytel Direct, CarOrder, Greenlight and Drive-off by a
retail or commercial customer utilizing a Direct Transaction Business Model
unless such entity shall completely cease to engage in such activity.

         "CARSDIRECT WEB SITES" means, collectively, all Web Sites maintained by
or on behalf of CarsDirect and its wholly owned subsidiaries.

         "CHANGE OF CONTROL" means the transfer of Control of a Party from the
Person or Persons who hold such Control on the Effective Date.

         "CONTROL, CONTROLLING, CONTROLLED" means possessing, directly or
indirectly, the power to direct or cause the direction of the management and
policies of any entity, whether through ownership of voting securities, by
contract or otherwise.

         "DIRECT TRANSACTION BUSINESS MODEL" means the method of doing business
for an Automobile purchase in the United States of America over the Internet in
which a consumer configures a new Automobile, receives an up-front price (as
distinct from "MSRP" or invoice price) for the configured Automobile and
substantially facilitates the transaction in some manner.

         "DMA" means the area of responsibility set forth in the applicable
dealer agreement provided that the PAG, as to PAG dealers, and UAG, as to UAG
dealers, and CarsDirect may mutually agree upon any expansion of the DMA.

         "IMMEDIATELY AVAILABLE" means shown in the new Automobile inventory of
the applicable P/UAG Dealer(s) and in existence at the time of the Sourcing
Request.

         "PENSKE AUTO CENTERS" means Penske Auto Centers, Inc., a Delaware
corporation.

         "PERSON" means any natural person, corporation, partnership, limited
liability company or other entity. "PRICING" means the price at which CarsDirect
Sources Automobiles from P/UAG Dealers.

         "P/UAG DEALER" means a P/UAG owned or managed dealer, including
Acquired Dealerships (as defined in Section 2.3).

         "P/UAG INVENTORY" means the new Automobiles Available from the
applicable P/UAG Dealer(s).

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         "P/UAG INVENTORY DATA" means Automobile inventory data to a detailed
option and trim level from P/UAG's Dealers and factory locator system, including
the information described in Section 6.1.1.

         "SOURCE" means CarsDirect's acquisition of an Automobile from a P/UAG
Dealer subject to the criteria specified in this Agreement, including Pricing
and the criteria set forth on Exhibit A , Exhibit B-1 and Exhibit B-2 attached
hereto.

         "SOURCING REQUEST" means the request by CarsDirect of a P/UAG Dealer to
effect a Sourcing Transaction.

         "SOURCING TRANSACTION" means a transaction by which CarsDirect acquires
an Automobile from a P/UAG Dealer subject to the criteria specified in this
Agreement, including Pricing and the criteria set forth on Exhibit A , Exhibit
B-1 and Exhibit B-2 attached hereto.

         "THIRD PARTY SOURCING TRANSACTION" means a transaction by which
CarsDirect acquires an Automobile from a franchised Automobile dealer other than
a P/UAG Dealer as a result of uncompetitive response to a Sourcing Request or
uncompetitive Pricing from a P/UAG Dealer.

         "WEB SITE" means any point of presence maintained on the Internet or on
any other public commercial data network, excluding television or radio
broadcast commercials. With respect to any Web site maintained on the World Wide
Web, such Web site includes all HTML pages (or similar unit of information
presented in any relevant data protocol) that either (a) are identified by the
same second-level domain or by the same equivalent level identifier in any
relevant address scheme, or (b) contain branding, graphics, navigation or other
characteristics such that a user reasonably would conclude that the pages are
part of an integrated information or service offering.

2.       SOURCING ARRANGEMENT.

         2.1 P/UAG'S OBLIGATION TO SOURCE. Subject to Sections 2.2 and 2.3
below, during the Term (i) CarsDirect shall provide Sourcing Requests to P/UAG
Dealers who are then P/UAG Dealers and (ii) PAG and UAG shall severally cause
their respective dealers to enter into a Sourcing Transaction with CarsDirect in
connection with such Sourcing Requests, provided that (i) the Automobiles
applicable to such Sourcing Requests are Available or are accessible by such
dealers by way of factory order or dealer trade and (ii) CarsDirect is not in
material breach of this Agreement (as provided in Section 10.2). P/UAG shall
notify CarsDirect of any acquisitions or dispositions of dealerships by P/UAG.

         2.2 PRICING TERMS. The Parties shall confer once per week during the
Term to negotiate regional Pricing and shall agree to such Pricing by 6 p.m.
(Pacific time) of each Monday during the Term (or by another process mutually
agreed upon by the Parties). CarsDirect shall be under no obligation (except as
provided in Section 2.3 below) to Source Automobiles at the negotiated Pricing.

2.3 FIRST OPPORTUNITY TO SOURCE. With respect to Automobiles for which
CarsDirect has agreed to Pricing as negotiated between the Parties pursuant to
Section 2.2 above, CarsDirect will offer any P/UAG Dealer of like make that is
located within the same DMA of a CarsDirect customer that has ordered an
Automobile through CarsDirect, the first opportunity to Source such Automobile
to CarsDirect, subject to written agreements between CarsDirect and third
parties in effect prior to the Effective Date and provided that PAG, UAG and
such P/UAG Dealer are in compliance with the terms and conditions of this
Agreement. In the event that P/UAG acquires one or more franchised Automobile
dealerships during the Term ("Acquired Dealerships"), CarsDirect shall provide
such dealerships the first priority to Source (as described in this Section 2.3)
subject to any written agreements between CarsDirect and any third party that
are effective prior to the consummation of any such acquisition.

                                      -3-

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         2.4 FINANCE, INSURANCE AND AFTER MARKET PRODUCTS. Neither P/UAG nor any
P/UAG Dealer shall, prior to the acceptance of delivery of the Automobile by the
CarsDirect Customer, solicit or cause such customer to unwind the Automobile
Purchase including any commitment by such customer to purchase any retail
finance, lease or other after-market Automobile product or service offered to
that customer through CarsDirect.

         2.5 SERVICE LEVEL. P/UAG shall cause each P/UAG Dealer to comply with
the Service Level Criteria set forth on Exhibit A attached hereto, as well as
the terms and conditions set forth in CarsDirect's standard Priority Supplier
Network Membership Agreement and CarsDirect's Vehicle Commitment Form, as in
effect from time to time, the current versions of which are attached hereto as
Exhibit B-1 and Exhibit B-2, respectively. Any changes to the Priority Supplier
Network Membership Agreement or the CarsDirect's Vehicle Commitment Form after
the Effective Date which materially affect P/UAG's rights and obligations under
those agreements shall be subject to mutual agreement of the Parties. In the
event that a specific P/UAG Dealer fails to comply with the provisions contained
in Exhibit A or Exhibit B attached hereto, CarsDirect shall be under no
obligation to provide such noncompliant P/UAG Dealer the limited first
opportunity to Source Automobiles as described in Section 2.3 above.

          2.6    DELIVERY. CarsDirect and P/UAG shall develop mutually agreed
                 upon Automobile delivery procedures in connection with
                 Automobile Purchases consistent with applicable laws,
                 Automobile Manufacturer policies and the terms of the P/UAG
                 Dealers' franchise agreements, including the allocation of
                 costs in connection with such delivery. P/UAG shall bear all
                 costs associated with such deliveries which are the
                 responsibility of P/UAG pursuant to the previous sentence.

          2.7    PAYMENT TERMS. Payment terms for Sourcing Transactions shall
                 be seven (7) days gross pay. Provided, however, in the event
                 that CarsDirect consistently and repeatedly fails to pay the
                 applicable P/UAG Dealers the Pricing in connection with
                 Sourcing Transactions within seven (7) calendar days of the
                 consummation of such Sourcing Transactions, CarsDirect shall
                 be required to pay to the applicable P/UAG Dealer the Pricing,
                 including documented and verified outstanding amounts owed by
                 CarsDirect (by wire transfer) upon the consummation of each
                 Sourcing Transaction.

3.       SYSTEMS INTEGRATION.

         3.1 AUTOMATED TRANSACTION SYSTEMS. P/UAG and the P/UAG Dealers shall
each deliver to CarsDirect in a standard format reasonably acceptable to
CarsDirect (the "Standard Format"), the data and information specified in
Section 6.1 below. In connection with the development and operation of the
Standard Format, the Parties shall collaborate to develop systems necessary to
extract data or information owned or controlled by P/UAG and the P/UAG Dealers
(the "Data") to a centralized data warehouse, conforming to a standardized
protocol (the "P/UAG Data Aggregation"). P/UAG shall bear all costs in
connection with and shall be otherwise responsible for the P/UAG Data
Aggregation effort. All costs in connection with transmitting the Data to
CarsDirect shall be borne by CarsDirect. In addition, CarsDirect shall have the
right, but not the obligation, to permit dealers other than the P/UAG Dealers to
deliver such data and information to CarsDirect in the Standard Format.

                                      -4-
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         CarsDirect shall create at its expense, with the cooperation of P/UAG,
systems (e.g. real-time inventory, order transmission and acceptance, delivery
confirmation) to create fully automated Sourcing Transactions and Automobile
Purchases (the "Transaction Systems"). CarsDirect shall be the exclusive owner
of any such Transaction Systems, provided, however, nothing herein shall be
construed to restrict, impair or deprive P/UAG of any rights or proprietary
interests in technology or products that existed prior to and independent of the
development of the Transaction Systems. Upon request from P/UAG, CarsDirect will
enter into a mutually acceptable, royalty-free licensing agreement for the term
hereof granting a limited, non-exclusive, non-transferable, non-sublicensable
license to P/UAG and their dealers of the Transaction System solely to enable
P/UAG and their dealers to perform this Agreement more efficiently.

         3.2 WEB SITE DEVELOPMENT ASSISTANCE. CarsDirect, if requested by P/UAG,
will enter into a mutually acceptable, royalty-free license agreement for the
limited, non-exclusive, non-transferable, non-sublicensable license to P/UAG and
their dealers of the text, graphics, pictures, data (including descriptions of
Automobile specifications and standard Automobile equipment, and Automobile
options, MSRP, invoice and Manufacturer option prices) of a substance and form
similar to that which CarsDirect generally licenses to third parties
(collectively, the "Content"). CarsDirect shall make the Content available to
P/UAG in standard html format. The content shall also be associated with a set
of access pages. CarsDirect shall supply to P/UAG updated releases of the
Content on approximately a monthly basis during the Term. At such time as
CarsDirect develops, and generally makes available to third parties, modular
components of the Content CarsDirect will make the same available to P/UAG. Upon
the reasonable request of P/UAG, CarsDirect will provide up to eighty (80) hours
of qualified consulting services to assist in the utilization of the Content.
Thereafter, CarsDirect shall provide such services to P/UAG at a level of up to
two (2) people (FTE) at industry standard rates (currently $20,000 per month).

         3.3 ORDER PROCESSING PROCEDURES. The Parties agree to develop and
implement, within thirty (30) days of the Effective Date, Automobile delivery
procedures and a standard process that will be followed by CarsDirect and P/UAG
Dealers to expedite Sourcing Transactions and Automobile acceptances and
delivery confirmations. The Parties agree to exercise best efforts to enhance
and modify those procedures and standard processes during the term of this
Agreement to further expedite and automate the various functions.

4.       ADDITIONAL PROGRAM DEVELOPMENT.

         During the Term CarsDirect shall use reasonable efforts to develop an
Automobile trade in program. CarsDirect will explore the opportunities for P/UAG
to participate and/or invest in such program. Until such Automobile trade-in
program is developed and implemented, the P/UAG Dealer handling a Sourcing
Transaction shall have the first opportunity to negotiate the trade-in
applicable to the Sourcing Transaction, subject to the terms of written
agreements between CarsDirect and third parties and entered into prior to the
Effective Date.

5.       PENSKE AUTO CENTER SERVICES.

         Upon the request of CarsDirect and to the extent permissible by
applicable laws and written agreements to which P/UAG or Penske Auto Centers are
a party to prior to the date of such request by CarsDirect, P/UAG will cause
Penske Auto Centers to negotiate with CarsDirect for the provision of temporary
Automobile storage facilities, Automobile inspection, reconditioning and
delivery services at the Penske Auto Centers' facilities. CarsDirect and the
Penske Auto Centers shall negotiate in good faith the pricing and other terms
applicable to the services described in this Section 5.

                                      -5-

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6.       DATA.

         6.1 P/UAG DATA. During the Term P/UAG will provide the following data
to CarsDirect in an electronic format and in a delivery method mutually
acceptable to the Parties.

             6.1.1  INVENTORY DATA. P/UAG shall provide to CarsDirect, daily
batch information updates regarding the Automobile make, model, trim, options,
transmission, interior color, exterior color, engine specifications, vehicle
identification number, stock number (optional), MSRP, invoice price, year and
dealer name and address with respect to each Automobile contained in the P/UAG
Inventory. P/UAG shall use best efforts to provide to CarsDirect the information
contained in this Section 6.1.1 on a continuous, real-time basis. P/UAG will
provide to CarsDirect a glossary of defined abbreviations so that CarsDirect
identify the options offered by the Automobile Manufacturers.

             6.1.2  LIMITATIONS. The information to be provided pursuant to
this Section 6.1 shall be subject to applicable law, and PAG's and UAG's Privacy
Policies, as may be modified from time to time. Provided further, CarsDirect
shall not have the right to sell, share, give away, or otherwise redistribute
the information provided pursuant to this Section 6.1 (either alone or in
combination with any other data, information or report) to any third party
without prior written permission from PAG or UAG, as the case may be.

         6.2 CARSDIRECT DATA. During the Term CarsDirect shall provide the
following data to P/UAG in an electronic format and in a delivery method
reasonably acceptable to P/UAG.

             6.2.1  AUTOMOBILE TRANSACTION DATA. CarsDirect shall provide
to PAG's Vice President and General Manager and UAG's Vice President and General
Manager factual information about Third Party Sourcing Transactions for the sole
purpose of enabling P/UAG Dealers to meet bonafide competition to maximize
Automobile Purchases. The factual information described in the immediately
preceding sentence shall not be identifiable to any third party franchised
dealer. .

             6.2.2. LIMITATIONS. The information to be provided pursuant to
this Section 6.2 shall be subject to applicable law, and CarsDirect's Privacy
Policy, as may be modified from time to time. Provided further, neither P/UAG
nor any P/UAG Dealer shall have the right to sell, share, give away, or
otherwise redistribute the information provided pursuant to this Section 6.2
(either alone or in combination with any other data, information or report) to
any third party without prior written permission from CarsDirect.

  7.     WARRANT.

         In consideration for UAG entering into this Agreement and performing
its obligations hereunder, CarsDirect shall execute and deliver to UAG warrant
agreement(s) for the exercise of an aggregate of 2,190,000 shares of
CarsDirect's Series D Preferred Stock (the " UAG Warrant Agreements"). In
consideration for PAG entering into this Agreement and performing its
obligations hereunder, CarsDirect shall execute and deliver to PAG warrant
agreement(s) for the exercise of an aggregate of 1,460,000 shares of
CarsDirect's Series D Preferred Stock (the "PAG Warrant Agreements" and
collectively with the PAG warrant Agreements, the "Warrant Agreement").
The Warrant Agreement shall be in a form and substance as attached hereto as
Exhibit C.

                                      -6-
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  8.     EXCLUSIVITY.

         For the twenty-four (24) month period commencing on the Effective Date,
neither P/UAG nor any P/UAG Dealer shall sell, lease, transfer or otherwise
directly supply Automobiles or P/UAG Inventory Data to any of the following
entities for so long as they engage in the Direct Transaction Business Model:
Driveoff; AutoNationDirect; Greenlight; CarOrder; AutobytelDirect and Microsoft
Corporation and its Affiliates (such exclusivity restrictions with respect to
Microsoft Corporation shall only be applicable if Microsoft Corporation (or any
of its Affiliates) engages in, promotes or facilitates the Direct Transaction
Business Model either alone or in conjunction with any third party); provided,
however, P/UAG and their dealers may sell or lease Automobiles pursuant to a
corporate purchase or employee compensation program or purchase or otherwise
obtain software from Microsoft or its Affiliates.

         Notwithstanding the foregoing, the exclusivity restrictions contained
in this Section 8 shall be inapplicable (a) with respect to P/UAG and the P/UAG
Dealers during periods that the CarsDirect Site is unavailable to the general
public for a period in excess of three (3) consecutive days as a result of
system failure within the reasonable control of CarsDirect (b) with respect to
Acquired Dealerships who become P/UAG Dealers after the Effective Date if such
dealerships are subject to pre-existing, written agreements which conflict with
the exclusivity restrictions contained in this Section 8 (but only to the extent
that such agreements expressly prohibit compliance with the provisions of this
Section 8) or (c) with respect to P/UAG and the P/UAG Dealers if CarsDirect
fails to expend a minimum of $5 million in customer acquisition costs during
each of two (2) consecutive calendar quarters (d) if CarsDirect is otherwise not
transacting business generally or (e) if a Change of Control has occurred with
respect to CarsDirect following the Effective Date other than in connection with
a Qualified Initial Public Offering as such term is defined under that certain
Amended and Restated Investor Rights Agreement dated October 27. 1999.

9.       RELATIONSHIP MANAGEMENT.

         9.1  P/UAG CORPORATE ENDORSEMENT. During such times as the
"exclusivity" provisions contained in Section 8 above are applicable to P/UAG,
P/UAG agrees to endorse CarsDirect to its P/UAG Dealers as P/UAG's preferred and
exclusive Direct Transaction Business Model customer. In addition, the Parties
agree to jointly publish an article in each issue of P/UAG's newsletter
regarding the Parties' relationship and successes.

10.      TERM AND TERMINATION.

         10.1 TERM. This Agreement shall be effective as of the Effective Date
and shall continue through December 31, 2004, unless terminated earlier as
provided in this Article 10.

         10.2 TERMINATION FOR BREACH. Either Party may terminate this Agreement
upon not less than thirty (30) days' prior written notice to the other Party of
any material breach hereof or of the Consulting Agreement, the Investment
Agreement and the Warrant Agreement by such other Party or its Affiliates
provided that such other Party or its Affiliates, as the case may be, has not
cured such material breach within such thirty (30) day period. PAG or UAG may
terminate this Agreement if CarsDirect consistently and repeatedly fails to pay
the applicable P/UAG Dealers the Pricing in connection with Sourcing
Transactions within seven (7) calendar days of the consummation of such Sourcing
Transactions for reasons other than inadvertence.

                                      -7-

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         10.3 TERMINATION FOR BANKRUPTCY AND RELATED EVENTS. In the event a
Party files a voluntary petition in bankruptcy court, or makes an assignment for
benefit of creditors, or is voluntarily or involuntarily adjudicated a bankrupt,
or has a receiver appointed for its business, or becomes insolvent, the other
party may elect to immediately terminate this Agreement.

         10.4 EFFECT OF EXPIRATION OR TERMINATION. Upon termination or
expiration of this Agreement for any reason, all rights and obligations of the
Parties under this Agreement shall be extinguished, except that all payment
obligations accrued prior to the date of termination hereunder, and the rights
and obligations of the parties under Sections 6.1.2, 6.2.2, 11.3, 11.4 and 12
shall survive such termination or expiration.

11.      WARRANTIES, INDEMNIFICATION AND LIMITATION OF LIABILITY.

         11.1     WARRANTIES BY BOTH PARTIES.

         Each Party represents and warrants to the other that:

         a) it has the full corporate right, power and authority to enter into
            this Agreement and to perform the acts required of it hereunder;

         b) its execution of this Agreement and performance of its
            obligations hereunder, do not and will not violate any agreement
            to which it is a party or by which it is bound; and

         c) when executed and delivered, this Agreement will constitute the
            legal, valid and binding obligation of such Party, enforceable
            against it in accordance with its terms; and

         11.2     WARRANTIES BY P/UAG.

         PAG and UAG severally represent and warrant to CarsDirect that:

         a) it has full and sufficient rights to grant to CarsDirect the rights
            granted hereunder with respect to access to and use of the P/UAG
            Inventory Data as contemplated herein without the necessity of
            payment to any third party, and it has used and shall use
            commercially reasonable efforts to ensure the accuracy and integrity
            of such data; and

         b) The P/UAG Inventory Data, nor CarsDirect's use of the same in any
            manner contemplated hereunder, shall infringe upon or violate the
            intellectual property rights of any third party.

         c) It has full power and authority to and shall cause each P/UAG
            Dealer to abide by the terms of this Agreement.

                                      -8-
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         11.3 INDEMNIFICATION. Each Party (the "Indemnifying Party") will
defend, indemnify and hold harmless the other parties (the "Indemnified Party"),
and the respective directors, officers, employees and agents of the Indemnified
Party, from and against any and all claims, costs, losses, damages, judgments
and expenses (including reasonable attorneys' fees) arising out of or in
connection with any third-party claim alleging any breach of such party's
representations or warranties or covenants set forth in this Agreement. In
addition, PAG and UAG shall severally defend, indemnify and hold harmless
CarsDirect, its directors, officers, employees and agents from and against any
and all claims, costs, losses, damages, judgments and expenses including
reasonable attorneys' fees ("Costs") asserted by a CarsDirect customer arising
out of or in connection with any Delivery if due to the fault or negligence of
such Party; provided, however, this sentence shall not be interpreted to vary
the obligations of the Parties as set forth in the Priority Supplier Network
Membership Agreement or the Vehicle Commitment Form, as such may be mutually
agreed and in effect from time to time. The Indemnified Party agrees that the
Indemnifying Party shall have sole and exclusive control over the defense and
settlement of any such third party claim. However, the Indemnifying Party shall
not acquiesce to any judgment or enter into any settlement that adversely
affects the Indemnified Party's rights or interests without prior written
consent (such consent shall not be unreasonably withheld or delayed) of the
Indemnified Party. The Indemnified Party shall provide reasonably prompt notice
to the Indemnifying Party of any such claim of which it becomes aware and shall
(a) at the Indemnifying Party's expense, provide reasonable cooperation to the
Indemnifying Party in connection with the defense or settlement of any such
claim, and (b) at the Indemnified Party's expense, be entitled to participate in
the defense of any such claim.

         11.4 EXCLUSION OF DAMAGES; DISCLAIMER.

              11.4.1 EXCLUSION OF DAMAGES. UNDER NO CIRCUMSTANCES SHALL ANY
         PARTY BE LIABLE TO THE OTHER PARTY FOR INDIRECT, INCIDENTAL,
         CONSEQUENTIAL, SPECIAL OR EXEMPLARY DAMAGES (EVEN IF THAT PARTY HAS
         BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES), ARISING FROM ANY
         PROVISION OF THIS AGREEMENT, SUCH AS, BUT NOT LIMITED TO, LOSS OF
         REVENUE OR ANTICIPATED PROFITS OR LOST BUSINESS.

              11.4.2 NO ADDITIONAL WARRANTIES. EXCEPT AS SET FORTH IN THIS
         AGREEMENT, NO PARTY MAKES, AND EACH PARTY HEREBY SPECIFICALLY
         DISCLAIMS, ANY REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED
         (INCLUDING ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A
         PARTICULAR PURPOSE AND IMPLIED WARRANTIES ARISING FROM COURSE OF
         DEALING OR COURSE OF PERFORMANCE).

12.      CONFIDENTIALITY.

         12.1 DEFINITION OF CONFIDENTIAL INFORMATION. As used in this Agreement,
the term "Confidential Information" refers to: (a) the terms and conditions of
this Agreement; (b) each party's and with respect to PAG and UAG, the P/UAG
Dealers' trade secrets, business plans, strategies, methods and/or practices;
(c) any and all information relating to CarsDirect customers, in the case of
CarsDirect; and (d) other information relating to either party that is not
generally known to the public, including, but not limited to, information about
either party's personnel, products, customers, marketing strategies, services or
future business plans.

                                      -9-
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         12.2 RESTRICTIONS APPLICABLE TO CONFIDENTIAL INFORMATION. During the
Term and for a period of eighteen (18) months thereafter, or longer to the
extent a party's Confidential Information maintains its status as a "trade
secret" under applicable law each party (the "Receiving Party") will maintain in
confidence all Confidential Information of the other party (the "Disclosing
Party"). Each party agrees to use commercially reasonable efforts to protect the
Confidential Information of the other party, and in any event, to take
precautions at least as great as those taken to protect its own confidential
information of a similar nature. Each party agrees to use the Confidential
Information of the Disclosing Party solely for fulfilling the Receiving Party's
obligations under this Agreement and to disclose such Confidential Information
only to those of its employees, outside counsel, auditors, and financial
advisors with a need to know who are under a similar obligation of
confidentiality and restricted use with respect to such Confidential
Information. Provided further it shall not be a breach of this Agreement if this
Agreement is filed or its terms are disclosed as required in connection with a
registration statement or report filed with the Securities and Exchange
Commission pursuant to the Securities Act of 1933, as amended or the Securities
Exchange Act of 1934, as amended and the regulations promulgated thereunder, as
applicable, provided that the party making such filing or disclosures consults
with the other party prior to any such filing or disclosure.

         12.3 EXCLUSIONS. The foregoing restrictions shall not apply to any
information that: (a) was rightfully known by the Receiving Party prior to
disclosure thereof by the other party; (b) was in or entered the public domain
through no fault of the Receiving Party; (c) is disclosed to the Receiving Party
by a third party legally entitled to make such disclosure without violation of
any obligation of confidentiality; (d) is required to be disclosed by applicable
laws or regulations (but in such event, only to the extent required to be
disclosed as determined by the Receiving Party's counsel); or (e) is
independently developed by the Receiving Party without reference to any
Confidential Information of the other party.

         12.4 RETURN OF CONFIDENTIAL INFORMATION; INJUNCTIVE RELIEF. Upon
request of the other party, or in any event upon any termination or expiration
of the Term, each party shall return to the other all materials, in any medium,
which contain, embody, reflect or reference all or any part of any Confidential
Information of the other party. Each party acknowledges that breach of this
Article by it would result in irreparable harm to the other party, for which
money damages would be an insufficient remedy, and therefore that the other
party shall be entitled to seek injunctive relief to enforce the provisions of
this Article 12.

         12.5 OWNERSHIP OF CUSTOMER DATA. All Confidential Information provided
to P/UAG by CarsDirect relating to a CarsDirect customer shall be owned and
retained solely by CarsDirect.

13.      GENERAL PROVISIONS.

         13.1 INDEPENDENT CONTRACTORS. CarsDirect, PAG and UAG are independent
contractors under this Agreement, and nothing herein shall be construed to
create a partnership, joint venture, franchise or agency relationship between
them. No Party shall have any right, power or authority to enter into any
agreement for, or on behalf of, or incur any obligation or liability, or to
otherwise bind the other Parties.

         13.2 ASSIGNMENT. No party may assign this Agreement or any of its
rights or delegate any of its duties under this Agreement without the prior
written consent of the other party; except that either party may, without the
other party's consent, assign this Agreement or any of its rights or delegate
any of

                                      -10-
<PAGE>   11

its duties under this Agreement: (a) to any Affiliate of such party, or (b) to
any purchaser of all or substantially all of such party's assets or to any
successor by way of merger, consolidation or similar transaction, provided that,
in the event of an assignment by P/UAG hereunder, such assignee is not a
CarsDirect Competitor. However, the assigning Party shall not be relieved of its
obligations to the other Parties pursuant to this Agreement. Subject to the
foregoing, this Agreement will be binding upon, enforceable by, and inure to the
benefit of the parties and their respective successors and assigns.

         13.3 NON-WAIVER. No waiver of any breach of any provision of this
Agreement shall constitute a waiver of any prior, concurrent or subsequent
breach of the same or any other provisions hereof, and no waiver shall be
effective unless made in writing and signed by an authorized representative of
the waiving party.

         13.4 PUBLICITY. CarsDirect and P/UAG may individually or jointly
prepare and issue mutually agreed upon press releases concerning the existence
of this Agreement and the terms hereof. The timing of any such press releases
shall be mutually agreed by CarsDirect and P/UAG. Otherwise, no public
statements concerning the existence or terms of this Agreement shall be made or
released by a party to any medium except with the prior approval of the other
party or as required by applicable law. Except as may be required by applicable
securities laws, for a period of sixty (60) days after the Effective Date,
CarsDirect agrees to refrain from publicly announcing an Automobile sourcing
agreement with a national Automobile dealer group similar to that contemplated
by this Agreement.

         13.5 FORCE MAJEURE. Neither party shall be deemed to be in default of
or to have breached any provision of this Agreement as a result of any delay,
failure in performance or interruption of service, resulting directly or
indirectly from acts of God, acts of civil or military authorities, civil
disturbances, wars, strikes or other labor disputes, fires, transportation
contingencies, interruptions in telecommunications or Internet services or
network provider services, failure of equipment and/or software, other
catastrophes or any other occurrences which are beyond such party's reasonable
control.

         13.6 AUDIT RIGHTS. During the Term, each party shall maintain accurate
records with respect to such party's obligations under this Agreement. Each
party, at its expense, and upon ten (10) days' advance notice to the other
party, shall have the right, not more than once per year, to examine the other
party's directly relevant records in order to verify, in the case of P/UAG,
P/UAG's compliance with the terms and conditions of Sections 2.1, 2.4, 2.5,
6.1.1, and 6.2.2, and in the case of CarsDirect, CarsDirect's compliance with
the terms and conditions of Section 2.1, 2.3, 6.1.2, and 6.2.1 . Any such
examination shall be conducted in a manner that does not interfere with the
ordinary business operations of the other party. In the event that such
examination reveals that a party has knowingly breached a material obligation of
this Agreement, then, in addition to such other remedies as the auditing party
may have, the breaching party will reimburse the auditing party for the actual
costs of such examination.

         13.7 NOTICES. Any notice or other communication required or permitted
to be given hereunder shall be given in writing by hand, by certified mail,
return receipt requested, postage pre-paid, or by recognized overnight delivery
service, all delivery charges pre-paid, and addressed to the individual signing
this Agreement on behalf of the applicable party at its address specified in the
opening paragraph of the Agreement and shall be deemed effective upon receipt. A
party may from time to time change the individual to receive notices or its
address by giving the other party notice of the change in accordance with this
Section. In addition, copies of any notices sent to P/UAG or CarsDirect shall
also be sent to the following addresses, respectively:

                                      -11-
<PAGE>   12

         UnitedAuto Group, Inc.                      CarsDirect.com, Inc.
         13400 West Outer Drive                      10567 Jefferson Boulevard
         Suite B-26                                  Culver City, CA 90232
         Detroit, MI 48239                           Fax:  (310) 280-4264
         Fax: (313) 592-7340                         Attention:  General Counsel
         Attention:  General Counsel

         Penske Automotive Group, Inc.
         3534 North Peck Road
         El Monte, CA  91731
         Fax:  (626) 580-6009
         Attention:  President

         With copy to:

              Executive Vice President and General Counsel, Penske Corporation
13400 West Outer Drive Detroit, MI 48329

         13.8  ENTIRE AGREEMENT; AMENDMENT. This Agreement (including the
Exhibits hereto), the Warrant Agreement, the Investment Agreement, the
Consulting Agreement and any ancillary documents in connection with the Sourcing
Transactions contain the entire understanding of the parties hereto with respect
to the transactions and matters contemplated hereby, supersede all previous
agreements or negotiations between P/UAG and CarsDirect concerning the subject
matter hereof, and cannot be amended except by a writing signed by the
applicable parties.

         13.9  GOVERNING LAW. This Agreement shall be governed by, and construed
in accordance with, the laws of the State of Delaware without reference to its
choice of law rules.

         13.10 HEADINGS. All headings contained in this Agreement are inserted
for convenience only and are not intended to affect the meaning or
interpretation of this Agreement or any clause.

         13.11 THIRD PARTY BENEFICIARIES. This Agreement is not intended and
shall not be construed to confer upon or to give any third party any rights or
remedies.

         13.12 SEVERABILITY. In the event any provision of this Agreement shall
for any reason be held to be invalid, illegal or unenforceable in any respect,
the remaining provisions shall remain in full force and effect. If any provision
of this Agreement shall, for any reason, be determined by a court of competent
jurisdiction to be excessively broad or unreasonable as to scope or subject,
such provision shall be enforced to the extent necessary to be reasonable under
the circumstances and consistent with applicable law while reflecting as closely
as possible the intent of the parties as expressed herein.

         13.13 GOOD FAITH. The Parties agree to perform each of their respective
obligations, covenants and agreements provided herein in good faith.

         13.14 COUNTERPARTS. This Agreement may be executed in counterparts,
each of which will be deemed an original, and all of which together constitute
one and the same instrument.

                                      -12-

<PAGE>   13

         IN WITNESS WHEREOF, the parties have duly executed and delivered this
Agreement as of the Effective Date.

CARSDIRECT.COM, INC.                       UNITED AUTOGROUP, INC.

By (signature)                             By (signature)
-------------------------------            -------------------------------------
Name                                       Name
-------------------------------            -------------------------------------
Title                                      Title
-------------------------------            -------------------------------------

PENSKE AUTOMOTIVE GROUP, INC.

By (signature)
-------------------------------
Name
-------------------------------
Title
-------------------------------

                                      -13-<PAGE>   1
                                                                  EXHIBIT 10.a

                                MASCO CORPORATION
                       1991 LONG TERM STOCK INCENTIVE PLAN
                       (Amended and Restated May 17, 2000)

SECTION 1.  PURPOSES

     The purposes of the 1991 Long Term Stock Incentive Plan (the "Plan") are to
encourage selected employees of and consultants to Masco Corporation (the
"Company") and its Affiliates to acquire a proprietary interest in the Company
in order to create an increased incentive to contribute to the Company's future
success and prosperity, and enhance the ability of the Company and its
Affiliates to attract and retain exceptionally qualified individuals upon whom
the sustained progress, growth and profitability of the Company depend, thus
enhancing the value of the Company for the benefit of its stockholders.

SECTION 2.  DEFINITIONS

     As used in the Plan, the following terms shall have the meanings set forth
below:

     (a) "Affiliate" shall mean any entity in which the Company's direct or
indirect equity interest is at least twenty percent, and any other entity in
which the Company has a significant direct or indirect equity interest, whether
more or less than twenty percent, as determined by the Committee.

     (b) "Award" shall mean any Option, Stock Appreciation Right, Restricted
Stock, Restricted Stock Unit, Performance Award, Dividend Equivalent or Other
Stock-Based Award granted under the Plan.

     (c) "Award Agreement" shall mean any written agreement, contract or other
instrument or document evidencing any Award granted under the Plan.

     (d) "Code" shall mean the Internal Revenue Code of 1986, as amended from
time to time.

     (e) "Committee" shall mean a committee of the Company's directors
designated by the Board of Directors to administer the Plan and composed of not
less than two directors, each of whom is a "non-employee director" within the
meaning of Rule 16b-3.

     (f) "Dividend Equivalent" shall mean any right granted under Section 6(e)
of the Plan.

     (g) "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended.

     (h) "Incentive Stock Option" shall mean an Option granted under Section
6(a) of the Plan that is intended to meet the requirements of Section 422 of the
Code, or any successor provision thereto.

     (i) "Non-Qualified Stock Option" shall mean an Option granted under Section
6(a) of the Plan that is not intended to be an Incentive Stock Option.

     (j) "Option" shall mean an Incentive Stock Option or a Non-Qualified Stock
Option.

     (k) "Other Stock-Based Award" shall mean any right granted under Section
6(f) of the Plan.

     (l) "Participant" shall mean an employee of or consultant to the Company or
any Affiliate or a director of the Company designated to be granted an Award
under the Plan.

     (m) "Performance Award" shall mean any right granted under Section 6(d) of
the Plan.

     (n) "Prior Plans" shall mean the Company's 1988 Restricted Stock Incentive
Plan and 1988 Stock Option Plan.

<PAGE>   2

     (o) "Restricted Period" shall mean the period of time during which Awards
of Restricted Stock or Restricted Stock Units are subject to restrictions.

     (p) "Restricted Stock" shall mean any Share granted under Section 6(c) of
the Plan.

     (q) "Restricted Stock Unit" shall mean any right granted under Section 6(c)
of the Plan that is denominated in Shares.

     (r) "Rule 16b-3" shall mean Rule 16b-3 promulgated by the Securities and
Exchange Commission under the Exchange Act, or any successor rule or regulation.

     (s) "Section 16" shall mean Section 16 of the Exchange Act, the rules and
regulations promulgated by the Securities and Exchange Commission thereunder, or
any successor provision, rule or regulation.

     (t) "Shares" shall mean the Company's common stock, par value $1.00 per
share, and such other securities or property as may become the subject of
Awards, or become subject to Awards, pursuant to an adjustment made under
Section 4(c) of the Plan.

     (u) "Stock Appreciation Right" shall mean any right granted under Section
6(b) of the Plan.

SECTION 3.  ADMINISTRATION

     The Committee shall administer the Plan, and subject to the terms of the
Plan and applicable law, the Committee's authority shall include without
limitation the power to:

              (i) designate Participants;

              (ii) determine the types of Awards to be granted;

              (iii) determine the number of Shares to be covered by Awards and
         any payments, rights or other matters to be calculated in connection
         therewith;

              (iv) determine the terms and conditions of Awards and amend the
         terms and conditions of outstanding Awards;

              (v) determine how, whether, to what extent, and under what
         circumstances Awards may be settled or exercised in cash, Shares, other
         securities, other Awards or other property, or canceled, forfeited or
         suspended;

              (vi) determine how, whether, to what extent, and under what
         circumstances cash, Shares, other securities, other Awards, other
         property and other amounts payable with respect to an Award shall be
         deferred either automatically or at the election of the holder thereof
         or of the Committee;

              (vii) determine the methods or procedures for establishing the
         fair market value of any property (including, without limitation, any
         Shares or other securities) transferred, exchanged, given or received
         with respect to the Plan or any Award;

              (viii) prescribe and amend the forms of Award Agreements and other
         instruments required under or advisable with respect to the Plan;

              (ix) designate Options granted to key employees of the Company or
         its subsidiaries as Incentive Stock Options;

              (x) interpret and administer the Plan, Award Agreements, Awards
         and any contract, document, instrument or agreement relating thereto;

                                       -2-
<PAGE>   3

              (xi) establish, amend, suspend or waive such rules and regulations
         and appoint such agents as it shall deem appropriate for the
         administration of the Plan;

              (xii) decide all questions and settle all controversies and
         disputes which may arise in connection with the Plan, Award Agreements
         and Awards;

              (xiii) delegate to directors of the Company the authority to
         designate Participants and grant Awards, and to amend Awards granted to
         Participants;

              (xiv) make any other determination and take any other action that
         the Committee deems necessary or desirable for the interpretation,
         application and administration of the Plan, Award Agreements and
         Awards.

     All designations, determinations, interpretations and other decisions under
or with respect to the Plan, Award Agreements or any Award shall be within the
sole discretion of the Committee, may be made at any time and shall be final,
conclusive and binding upon all persons, including the Company, Affiliates,
Participants, beneficiaries of Awards and stockholders of the Company.

SECTION 4.  SHARES AVAILABLE FOR AWARDS

     (a) Shares Available.  Subject to adjustment as provided in Section 4(c):

         The maximum number of Shares available for issuance in respect of
Awards made under the Plan on or after May 17, 2000 shall be 20,000,000 Shares
plus up to an additional 20,000,000 Shares to the extent Shares are acquired by
the Company, including Shares purchased in the open market, on or after May 17,
2000 in connection with awards made under the Plan, provided, however, that in
the event (i) an Award in respect of Shares under the Plan or the Prior Plans is
settled for cash or expires or is terminated unexercised as to any Shares
covered thereby, (ii) any Award under the Plan or the Prior Plans in respect of
shares is cancelled or forfeited for any reason without the delivery of Shares,
(iii) any Option or other Award granted is exercised through the surrender of
Shares, or (iv) tax obligations are satisfied through the surrender or
withholding of Shares, the number of Shares available for issuance in respect of
Awards under the Plan shall be increased by the number of Shares not delivered
in connection with any such Award or so surrendered or withheld. Not more than
20,000,000 shares may be awarded as incentive stock options on or after May 17,
2000. Subject to the foregoing, Shares may be made available from the authorized
but unissued Shares of the Company or from Shares reacquired by the Company,
including but not limited to Shares purchased in the open market.

     (b) Individual Stock-Based Awards. Subject to adjustment as provided in
Section 4(c), no Participant may receive Options or Stock Appreciation Rights
under the Plan in any calendar year that relate to more than 4,000,000 Shares in
the aggregate; provided, however, that such number may be increased with respect
to any Participant by any Shares available for grant to such Participant in
accordance with this Paragraph 4(b) in any prior years that were not granted in
such prior year beginning on or after January 1, 2000. No provision of this
Paragraph 4(b) shall be construed as limiting the amount of any other
stock-based or cash-based Award which may be granted to any Participant.

     (c) Adjustments. Upon the occurrence of any dividend or other distribution
(whether in the form of cash, Shares, other securities or other property),
change in the capital or shares of capital stock, recapitalization, stock split,
reverse stock split, reorganization, merger, consolidation, split-up, spin-off,
combination, repurchase, or exchange of Shares or other securities of the
Company, issuance of warrants or other rights to purchase Shares or other
securities of the Company or extraordinary transaction or event which affects
the Shares, then the Committee shall have the authority to make such adjustment,
if any, in such manner as it deems appropriate, in (i) the number and type of
Shares (or other securities or property) which thereafter may be made the
subject of Awards, (ii) outstanding Awards including without limitation the
number and type of Shares (or other securities or property) subject thereto, and
(iii) the grant, purchase or exercise price with respect to outstanding Awards
and, if deemed appropriate, make provision for cash

                                       -3-
<PAGE>   4

payments to the holders of outstanding Awards; provided, however, that the
number of Shares subject to any Award denominated in Shares shall always be a
whole number.

SECTION 5.  ELIGIBILITY

     Any employee of or consultant to the Company or any Affiliate, or any
director of the Company, is eligible to be designated a Participant.

SECTION 6.  AWARDS

     (a) Options.  The Committee is authorized to grant Options to Participants.

              (i) Committee Determinations.  Subject to the terms of the Plan,
         the Committee shall determine:

                  (A) the purchase price per Share under each Option, provided,
              however, that such price shall be not less than 100% of the fair
              market value of the Shares underlying such Option on the date of
              grant;

                  (B) the term of each Option; and

                  (C) the time or times at which an Option may be exercised, in
              whole or in part, the method or methods by which and the form or
              forms (including, without limitation, cash, Shares, other Awards
              or other property, or any combination thereof, having a fair
              market value on the exercise date equal to the relevant exercise
              price) in which payment of the exercise price with respect thereto
              may be made or deemed to have been made. The terms of any
              Incentive Stock Option granted under the Plan shall comply in all
              respects with the provisions of Section 422 of the Code, or any
              successor provision thereto, and any regulations promulgated
              thereunder.

         Subject to the terms of the Plan, the Committee may impose such
conditions or restrictions on any Option as it deems appropriate.

              (ii) Other Terms.  Unless otherwise determined by the Committee:

                  (A) A Participant electing to exercise an Option shall give
              written notice to the Company, as may be specified by the
              Committee, of exercise of the Option and the number of Shares
              elected for exercise, such notice to be accompanied by such
              instruments or documents as may be required by the Committee, and
              shall tender the purchase price of the Shares elected for
              exercise.

                  (B) At the time of exercise of an Option payment in full in
              cash or in Shares (that have been held by the Participant for at
              least six months) or any combination thereof, at the option of the
              Participant, shall be made for all Shares then being purchased.

                  (C) The Company shall not be obligated to issue any Shares
              unless and until:

                           (I) if the class of Shares at the time is listed upon
                  any stock exchange, the Shares to be issued have been listed,
                  or authorized to be added to the list upon official notice of
                  issuance, upon such exchange, and

                           (II) in the opinion of the Company's counsel there
                  has been compliance with applicable law in connection with the
                  issuance and delivery of Shares and such issuance shall have
                  been approved by the Company's counsel.

                                      -4-
<PAGE>   5

         Without limiting the generality of the foregoing, the Company may
require from the Participant such investment representation or such agreement,
if any, as the Company's counsel may consider necessary in order to comply with
the Securities Act of 1933 as then in effect, and may require that the
Participant agree that any sale of the Shares will be made only in such manner
as shall be in accordance with law and that the Participant will notify the
Company of any intent to make any disposition of the Shares whether by sale,
gift or otherwise. The Participant shall take any action reasonably requested by
the Company in such connection. A Participant shall have the rights of a
stockholder only as and when Shares have been actually issued to the Participant
pursuant to the Plan.

                  (D) If the employment of or consulting arrangement with a
              Participant terminates for any reason (including termination by
              reason of the fact that an entity is no longer an Affiliate) other
              than the Participant's death, the Participant may thereafter
              exercise the Option as provided below, except that the Committee
              may terminate the unexercised portion of the Option concurrently
              with or at any time following termination of the employment or
              consulting arrangement (including termination of employment upon a
              change of status from employee to consultant) if it shall
              determine that the Participant has engaged in any activity
              detrimental to the interests of the Company or an Affiliate. If
              such termination is voluntary on the part of the Participant, the
              Option may be exercised only within ten days after the date of
              termination. If such termination is involuntary on the part of the
              Participant, if an employee retires on or after normal retirement
              date or if the employment or consulting relationship is terminated
              by reason of permanent and total disability, the Option may be
              exercised within three months after the date of termination or
              retirement. For purposes of this Paragraph (D), a Participant's
              employment or consulting arrangement shall not be considered
              terminated (i) in the case of approved sick leave or other bona
              fide leave of absence (not to exceed one year), (ii) in the case
              of a transfer of employment or the consulting arrangement among
              the Company and Affiliates, or (iii) by virtue of a change of
              status from employee to consultant or from consultant to employee,
              except as provided above.

                  (E) If a Participant dies at a time when entitled to exercise
              an Option, then at any time or times within one year after death
              such Option may be exercised, as to all or any of the Shares which
              the Participant was entitled to purchase immediately prior to
              death. The Company may decline to deliver Shares to a designated
              beneficiary until it receives indemnity against claims of third
              parties satisfactory to the Company. Except as so exercised such
              Option shall expire at the end of such period.

                  (F) An Option may be exercised only if and to the extent such
              Option was exercisable at the date of termination of employment or
              the consulting arrangement, and an Option may not be exercised at
              a time when the Option would not have been exercisable had the
              employment or consulting arrangement continued.

              (iii) Restoration Options. The Committee may grant a Participant
         the right to receive a restoration Option with respect to an Option or
         any other stock option granted by the Company. Unless the Committee
         shall otherwise determine, a restoration Option shall provide that the
         underlying option must be exercised while the Participant is an
         employee of or consultant to the Company or an Affiliate and the number
         of Shares which are subject to a restoration Option shall not exceed
         the number of whole Shares exchanged in payment for the exercise of the
         original option.

     (b) Stock Appreciation Rights. The Committee is authorized to grant Stock
Appreciation Rights to Participants. Subject to the terms of the Plan, a Stock
Appreciation Right granted under the Plan shall confer on the holder thereof a
right to receive, upon exercise thereof, the excess of (i) the fair market value
of one Share on the date of exercise or, if the Committee shall so determine in
the case of any such right other than one related to any Incentive Stock Option,
at any time during a specified period before or after the date of exercise over
(ii) the grant price of the right as specified by the Committee. Subject to the
terms of the Plan, the Committee shall determine the grant price, term, methods
of exercise and settlement and

                                      -5-
<PAGE>   6

any other terms and conditions of any Stock Appreciation Right and may impose
such conditions or restrictions on the exercise of any Stock Appreciation Right
as it may deem appropriate.

     (c)  Restricted Stock and Restricted Stock Units.

              (i) Issuance. The Committee is authorized to grant to Participants
         Awards of Restricted Stock, which shall consist of Shares, and
         Restricted Stock Units which shall give the Participant the right to
         receive cash, other securities, other Awards or other property, in each
         case subject to the termination of the Restricted Period determined by
         the Committee.

              (ii) Restrictions. The Restricted Period may differ among
         Participants and may have different expiration dates with respect to
         portions of Shares covered by the same Award. Subject to the terms of
         the Plan, Awards of Restricted Stock and Restricted Stock Units shall
         have such restrictions as the Committee may impose (including, without
         limitation, limitations on the right to vote Restricted Stock or the
         right to receive any dividend or other right or property), which
         restrictions may lapse separately or in combination at such time or
         times, in installments or otherwise. Unless the Committee shall
         otherwise determine, any Shares or other securities distributed with
         respect to Restricted Stock or which a Participant is otherwise
         entitled to receive by reason of such Shares shall be subject to the
         restrictions contained in the applicable Award Agreement. Subject to
         the aforementioned restrictions and the provisions of the Plan,
         Participants shall have all of the rights of a stockholder with respect
         to Shares of Restricted Stock.

              (iii) Registration. Restricted Stock granted under the Plan may be
         evidenced in such manner as the Committee may deem appropriate,
         including, without limitation, book-entry registration or issuance of
         stock certificates.

              (iv) Forfeiture.  Except as otherwise determined by the Committee:

                  (A) If the employment of or consulting arrangement with a
              Participant terminates for any reason (including termination by
              reason of the fact that any entity is no longer an Affiliate),
              other than the Participant's death or permanent and total
              disability or, in the case of an employee, retirement on or after
              normal retirement date, all Shares of Restricted Stock theretofore
              awarded to the Participant which are still subject to restrictions
              shall upon such termination of employment or the consulting
              relationship be forfeited and transferred back to the Company.
              Notwithstanding the foregoing or Paragraph (C) below, if a
              Participant continues to hold an Award of Restricted Stock
              following termination of the employment or consulting arrangement
              (including retirement and termination of employment upon a change
              of status from employee to consultant), the Shares of Restricted
              Stock which remain subject to restrictions shall nonetheless be
              forfeited and transferred back to the Company if the Committee at
              any time thereafter determines that the Participant has engaged in
              any activity detrimental to the interests of the Company or an
              Affiliate. For purposes of this Paragraph (A), a Participant's
              employment or consulting arrangement shall not be considered
              terminated (i) in the case of approved sick leave or other bona
              fide leave of absence (not to exceed one year), (ii) in the case
              of a transfer of employment or the consulting arrangement among
              the Company and Affiliates, or (iii) by virtue of a change of
              status from employee to consultant or from consultant to employee,
              except as provided above.

                  (B) If a Participant ceases to be employed or retained by the
              Company or an Affiliate by reason of death or permanent and total
              disability or if following retirement a Participant continues to
              have rights under an Award of Restricted Stock and thereafter
              dies, the restrictions contained in the Award shall lapse with
              respect to such Restricted Stock.

                  (C) If an employee ceases to be employed by the Company or an
              Affiliate by reason of retirement on or after normal retirement
              date, the restrictions contained in the Award of Restricted Stock
              shall continue to lapse in the same manner as though employment
              had not terminated.

<PAGE>   7

                  (D) At the expiration of the Restricted Period as to Shares
              covered by an Award of Restricted Stock, the Company shall deliver
              the Shares as to which the Restricted Period has expired, as
              follows:

                      (1) if an assignment to a trust has been made in
                  accordance with Section 6(g)(iv)(B)(2)(c), to such trust; or

                      (2) if the Restricted Period has expired by reason of
                  death and a beneficiary has been designated in form approved
                  by the Company, to the beneficiary so designated; or

                      (3) in all other cases, to the Participant or the legal
                  representative of the Participant's estate.

     (d) Performance Awards. The Committee is authorized to grant Performance
Awards to Participants. Subject to the terms of the Plan, a Performance Award
granted under the Plan (i) may be denominated or payable in cash, Shares
(including, without limitation, Restricted Stock), other securities, other
Awards, or other property and (ii) shall confer on the holder thereof rights
valued as determined by the Committee and payable to, or exercisable by, the
holder of the Performance Award, in whole or in part, upon the achievement of
such performance goals during such performance periods as the Committee shall
establish. Subject to the terms of the Plan, the performance goals to be
achieved during any performance period, the length of any performance period,
the amount of any Performance Award granted, the amount of any payment or
transfer to be made pursuant to any Performance Award and other terms and
conditions shall be determined by the Committee.

      (e) Dividend Equivalents. The Committee is authorized to grant to
Participants Awards under which the holders thereof shall be entitled to receive
payments equivalent to dividends or interest with respect to a number of Shares
determined by the Committee, and the Committee may provide that such amounts (if
any) shall be deemed to have been reinvested in additional Shares or otherwise
reinvested. Subject to the terms of the Plan, such Awards may have such terms
and conditions as the Committee shall determine.

     (f) Other Stock-Based Awards. The Committee is authorized to grant to
Participants such other Awards that are denominated or payable in, valued in
whole or in part by reference to or otherwise based on or related to Shares
(including, without limitation, securities convertible into Shares), as are
deemed by the Committee to be consistent with the purposes of the Plan,
provided, however, that such grants to persons who are subject to Section 16
must comply with the provisions of Rule 16b-3. Subject to the terms of the Plan,
the Committee shall determine the terms and conditions of such Awards. Shares or
other securities delivered pursuant to a purchase right granted under this
Section 6(f) shall be purchased for such consideration, which may be paid by
such method or methods and in such form or forms, including, without limitation,
cash, Shares, other securities, other Awards or other property or any
combination thereof, as the Committee shall determine.

     (g)  General.

         (i) No Cash Consideration for Awards. Awards may be granted for no cash
     consideration or for such minimal cash consideration as may be required by
     applicable law.

         (ii) Awards May Be Granted Separately or Together. Awards may, in the
     discretion of the Committee, be granted either alone or in addition to, in
     tandem with or in substitution for any other Award or any award granted
     under any other plan of the Company or any Affiliate. Awards granted in
     addition to or in tandem with other Awards or in addition to or in tandem
     with awards granted under another plan of the Company or any Affiliate, may
     be granted either at the same time as or at a different time from the grant
     of such other Awards or awards.

                                       -7-
<PAGE>   8

         (iii) Forms of Payment Under Awards. Subject to the terms of the Plan
     and of any applicable Award Agreement, payments or transfers to be made by
     the Company or an Affiliate upon the grant, exercise, or payment of an
     Award may be made in such form or forms as the Committee shall determine,
     including, without limitation, cash, Shares, other securities, other
     Awards, or other property, or any combination thereof, and may be made in a
     single payment or transfer, in installments, or on a deferred basis, in
     each case in accordance with rules and procedures established by the
     Committee. Such rules and procedures may include, without limitation,
     provisions for the payment or crediting of reasonable interest on
     installment or deferred payments or the grant or crediting of Dividend
     Equivalents in respect of installment or deferred payments.

         (iv) Limits on Transfer of Awards.

                  (A) Except as the Committee may otherwise determine, no Award
              or right under any Award may be sold, encumbered, pledged,
              alienated, attached, assigned or transferred in any manner and any
              attempt to do any of the foregoing shall be void and unenforceable
              against the Company.

                  (B) Notwithstanding the provisions of Paragraph (A) above:

                      (1) An Option may be transferred:

                           (a) to a beneficiary designated by the Participant in
                      writing on a form approved by the Committee;

                           (b) by will or the applicable laws of descent and
                      distribution to the personal representative, executor or
                      administrator of the Participant's estate; or

                           (c) to a revocable grantor trust established by the
                      Participant for the sole benefit of the Participant during
                      the Participant's life, and under the terms of which the
                      Participant is and remains the sole trustee until death or
                      physical or mental incapacity. Such assignment shall be
                      effected by a written instrument in form and content
                      satisfactory to the Committee, and the Participant shall
                      deliver to the Committee a true copy of the agreement or
                      other document evidencing such trust. If in the judgment
                      of the Committee the trust to which a Participant may
                      attempt to assign rights under such an Award does not meet
                      the criteria of a trust to which an assignment is
                      permitted by the terms hereof, or if after assignment,
                      because of amendment, by force of law or any other reason
                      such trust no longer meets such criteria, such attempted
                      assignment shall be void and may be disregarded by the
                      Committee and the Company and all rights to any such
                      Options shall revert to and remain solely in the
                      Participant. Notwithstanding a qualified assignment, the
                      Participant, and not the trust to which rights under such
                      an Option may be as signed, for the purpose of determining
                      compensation arising by reason of the Option shall
                      continue to be considered an employee or consultant, as
                      the case may be, of the Company or an Affiliate, but such
                      trust and the Participant shall be bound by all of the
                      terms and conditions of the Award Agreement and this Plan.
                      Shares issued in the name of and delivered to such trust
                      shall be conclusively considered issuance and delivery to
                      the Participant.

                      (2) A Participant may assign or transfer rights under an
              Award of Restricted Stock or Restricted Stock Units:

                           (a) to a beneficiary designated by the Participant in
                  writing on a form approved by the Committee;

                           (b) by will or the applicable laws of descent and
                  distribution to the personal representative, executor or
                  administrator of the Participant's estate; or

                                      -8-
<PAGE>   9

                           (c) to a revocable grantor trust established by the
                   Participant for the sole benefit of the Participant during
                   the Participant's life, and under the terms of which the
                   Participant is and remains the sole trustee until death or
                   physical or mental incapacity. Such assignment shall be
                   effected by a written instrument in form and content
                   satisfactory to the Committee, and the Participant shall
                   deliver to the Committee a true copy of the agreement or
                   other document evidencing such trust. If in the judgment of
                   the Committee the trust to which a Participant may attempt to
                   assign rights under such an Award does not meet the criteria
                   of a trust to which an assignment is permitted by the terms
                   hereof, or if after assignment, because of amendment, by
                   force of law or any other reason such trust no longer meets
                   such criteria, such attempted assignment shall be void and
                   may be disregarded by the Committee and the Company and all
                   rights to any such Awards shall revert to and remain solely
                   in the Participant. Notwithstanding a qualified assignment,
                   the Participant, and not the trust to which rights under such
                   an Award may be assigned, for the purpose of determining
                   compensation arising by reason of the Award shall continue to
                   be considered an employee or consultant, as the case may be,
                   of the Company or an Affiliate, but such trust and the
                   Participant shall be bound by all of the terms and conditions
                   of the Award Agreement and this Plan. Shares issued in the
                   name of and delivered to such trust shall be conclusively
                   considered issuance and delivery to the Participant.

                   (3) The Committee shall not permit directors or officers of
              the Company for purposes of Section 16 to transfer or assign
              Awards except as permitted under Rule 16b-3.

              (C) The Committee, the Company and its officers, agents and
         employees may rely upon any beneficiary designation, assignment or
         other instrument of transfer, copies of trust agreements and any other
         documents delivered to them by or on behalf of the Participant which
         they believe genuine and any action taken by them in reliance thereon
         shall be conclusive and binding upon the Participant, the personal
         representatives of the Participant's estate and all persons asserting a
         claim based on an Award. The delivery by a Participant of a beneficiary
         designation, or an assignment of rights under an Award as permitted
         hereunder, shall constitute the Participant's irrevocable undertaking
         to hold the Committee, the Company and its officers, agents and
         employees harmless against claims, including any cost or expense
         incurred in defending against claims, of any person (including the
         Participant) which may be asserted or alleged to be based on an Award
         subject to a beneficiary designation or an assignment. In addition, the
         Company may decline to deliver Shares to a beneficiary until it
         receives indemnity against claims of third parties satisfactory to the
         Company.

      (v) Share Certificates. All certificates for Shares or other securities
delivered under the Plan pursuant to any Award or the exercise thereof shall be
subject to such stop transfer orders and other restrictions as the Committee may
deem advisable under the Plan or the rules, regulations and other requirements
of the Securities and Exchange Commission, any stock exchange upon which such
Shares or other securities are then listed and any applicable Federal or state
securities laws, and the Committee may cause a legend or legends to be put on
any such certificates to make appropriate reference to such restrictions.

     (vi) Change in Control.

              (A) Notwithstanding any of the provisions of this Plan or
         instruments evidencing Awards granted hereunder, upon a Change in
         Control of the Company (as hereinafter defined) the vesting of all
         rights of Participants under outstanding Awards shall be accelerated
         and all restrictions thereon shall terminate in order that Participants
         may fully realize the benefits thereunder. Such acceleration shall
         include, without limitation, the immediate exercisability in full of
         all Options and the termination of restrictions on Restricted Stock and
         Restricted Stock Units. Further, in addition to the Committee's
         authority set forth in Section 4(c), the Committee, as constituted
         before such Change in Control, is authorized, and has sole discretion,
         as to any Award, either at the time such Award is made hereunder or any
         time thereafter, to take any one or more of the following actions: (i)
         provide for the purchase of any such Award, upon the Participant's
         request,

                                      -9-
<PAGE>   10

         for an amount of cash equal to the amount that could have been attained
         upon the exercise of such Award or realization of the Participant's
         rights had such Award been currently exercisable or payable; (ii) make
         such adjustment to any such Award then outstanding as the Committee
         deems appropriate to reflect such Change in Control; and (iii) cause
         any such Award then outstanding to be assumed, or new rights
         substituted therefor, by the acquiring or surviving corporation after
         such Change in Control.

              (B) With respect to any Award granted hereunder prior to December
         6, 1995, a Change in Control shall occur if:

                  (1) any "person" or "group of persons" as such terms are used
              in Sections 13(d) and 14(d) of the Exchange Act, other than
              pursuant to a transaction or agreement previously approved by the
              Board of Directors of the Company, directly or indirectly
              purchases or otherwise becomes the "beneficial owner" (as defined
              in Rule 13d-3 under the Exchange Act) or has the right to acquire
              such beneficial ownership (whether or not such right is
              exercisable immediately, with the passage of time, or subject to
              any condition) of voting securities representing 25 percent or
              more of the combined voting power of all outstanding voting
              securities of the Company; or

                  (2) during any period of twenty-four consecutive calendar
              months, the individuals who at the beginning of such period
              constitute the Company's Board of Directors, and any new directors
              whose election by such Board or nomination for election by
              stockholders was approved by a vote of at least two-thirds of the
              members of such Board who were either directors on such Board at
              the beginning of the period or whose election or nomination for
              election as directors was previously so approved, for any reason
              cease to constitute at least a majority of the members thereof.

              (C) Notwithstanding the provisions of subparagraph (B), with
         respect to Awards granted hereunder on or after December 6, 1995, a
         Change in Control shall occur only if the event described in this
         subparagraph (C) shall have occurred. With respect to any other Award
         granted prior thereto, a Change in Control shall occur if any of the
         events described in subparagraphs (B) or (C) shall have occurred,
         unless the holder of any such Award shall have consented to the
         application of this subparagraph (C) in lieu of the foregoing
         subparagraph (B). A Change in Control for purposes of this subparagraph
         (C) shall occur if, during any period of twenty-four consecutive
         calendar months, the individuals who at the beginning of such period
         constitute the Company's Board of Directors, and any new directors
         (other than Excluded Directors, as hereinafter defined), whose election
         by such Board or nomination for election by stockholders was approved
         by a vote of at least two-thirds of the members of such Board who were
         either directors on such Board at the beginning of the period or whose
         election or nomination for election as directors was previously so
         approved, for any reason cease to constitute at least a majority of the
         members thereof. For purposes hereof, "Excluded Directors" are
         directors whose election by the Board or approval by the Board for
         stockholder election occurred within one year of any "person" or "group
         of persons", as such terms are used in Sections 13(d) and 14(d) of the
         Exchange Act, commencing a tender offer for, or becoming the beneficial
         owner of, voting securities representing 25 percent or more of the
         combined voting power of all outstanding voting securities of the
         Company, other than pursuant to a tender offer approved by the Board
         prior to its commencement or pursuant to stock acquisitions approved by
         the Board prior to their representing 25 percent or more of such
         combined voting power.

              (D) (1) In the event that subsequent to a Change in Control it is
         determined that any payment or distribution by the Company to or for
         the benefit of a Participant, whether paid or payable or distributed or
         distributable pursuant to the terms of this Plan or otherwise, other
         than any payment pursuant to this subparagraph (D) (a "Payment"), would
         be subject to the excise tax imposed by Section 4999 of the Code or any
         interest or penalties with respect to such excise tax (such excise tax,
         together with any such interest and penalties, are hereinafter
         collectively referred to as the "Excise Tax"), then such Participant
         shall be entitled to receive from the Company, within 15 days

                                      -10-
<PAGE>   11

         following the determination described in (2) below, an additional
         payment ("Excise Tax Adjustment Payment") in an amount such that after
         payment by such Participant of all applicable Federal, state and local
         taxes (computed at the maximum marginal rates and including any
         interest or penalties imposed with respect to such taxes), including
         any Excise Tax, imposed upon the Excise Tax Adjustment Payment, such
         Participant retains an amount of the Excise Tax Adjustment Payment
         equal to the Excise Tax imposed upon the Payments.

                  (2) All determinations required to be made under this Section
         6(g)(vi)(D), including whether an Excise Tax Adjustment Payment is
         required and the amount of such Excise Tax Adjustment Payment, shall be
         made by PricewaterhouseCoopers LLP, or such other national accounting
         firm as the Company, or, subsequent to a Change in Control, the Company
         and the Participant jointly, may designate, for purposes of the Excise
         Tax, which shall provide detailed supporting calculations to the
         Company and the affected Participant within 15 business days of the
         date of the applicable Payment. Except as hereinafter provided, any
         determination by PricewaterhouseCoopers LLP, or such other national
         accounting firm, shall be binding upon the Company and the Participant.
         As a result of the uncertainty in the application of Section 4999 of
         the Code that may exist at the time of the initial determination
         hereunder, it is possible that (x) certain Excise Tax Adjustment
         Payments will not have been made by the Company which should have been
         made (an "Underpayment"), or (y) certain Excise Tax Adjustment Payments
         will have been made which should not have been made (an "Overpayment"),
         consistent with the calculations required to be made hereunder. In the
         event of an Underpayment, such Underpayment shall be promptly paid by
         the Company to or for the benefit of the affected Participant. In the
         event that the Participant discovers that an Overpayment shall have
         occurred, the amount thereof shall be promptly repaid to the Company.

                  (3) This Section 6(g)(vi)(D) shall not apply to any Award (x)
         that was granted prior to February 17, 1993 and (y) the holder of which
         is an executive officer of the Company, as determined under the
         Exchange Act.

     (vii) Cash Settlement. Notwithstanding any provision of this Plan or of any
Award Agreement to the contrary, any Award outstanding hereunder may at any time
be cancelled in the Committee's sole discretion upon payment of the value of
such Award to the holder thereof in cash or in another Award hereunder, such
value to be determined by the Committee in its sole discretion.

     (viii) Replacement Options. No outstanding option may be cancelled and
replaced with an option having a lower exercise price.

SECTION 7.  AMENDMENT AND TERMINATION

     Except to the extent prohibited by applicable law and unless otherwise
expressly provided in an Award Agreement or in the Plan:

     (a) Amendments to the Plan. The Board of Directors of the Company may amend
the Plan and the Board of Directors or the Committee may amend any outstanding
Award; provided, however, that (i) no Plan amendment shall be effective until
approved by stockholders of the Company insofar as stockholder approval thereof
is required in order for the Plan to continue to satisfy the conditions of Rule
16b-3, and (ii) without the consent of affected Participants no amendment of the
Plan or of any Award may impair the rights of Participants under outstanding
Awards, and (iii) no Option may be amended to reduce its initial exercise price
other than in connection with an event described in Section 4(c) hereof.

     (b) Waivers. The Committee may waive any conditions or rights under any
Award theretofore granted, prospectively or retroactively, without the consent
of any Participant.

                                      -11-
<PAGE>   12

     (c) Adjustments of Awards Upon the Occurrence of Certain Unusual or
Nonrecurring Events. The Committee shall be authorized to make adjustments in
the terms and conditions of, and the criteria included in, Awards in recognition
of unusual or nonrecurring events (including, without limitation, the events
described in Section 4(c) hereof) affecting the Company, any Affiliate, or the
financial statements of the Company or any Affiliate, or of changes in
applicable laws, regulations, or accounting principles, whenever the Committee
determines that such adjustments are appropriate in order to prevent dilution or
enlargement of the benefits or potential benefits to be made available under the
Plan.

     (d) Correction of Defects, Omissions, and Inconsistencies. The Committee
may correct any defect, supply any omission or reconcile any inconsistency in
the Plan or any Award in the manner and to the extent it shall deem desirable to
effectuate the Plan.

SECTION 8.  GENERAL PROVISIONS

     (a) No Rights to Awards. No Participant or other person shall have any
claim to be granted any Award under the Plan, and there is no obligation for
uniformity of treatment of Participants or holders or beneficiaries of Awards
under the Plan. The terms and conditions of Awards of the same type and the
determination of the Committee to grant a waiver or modification of any Award
and the terms and conditions thereof need not be the same with respect to each
Participant.

     (b) Withholding. The Company or any Affiliate shall be authorized to
withhold from any Award granted or any payment due or transfer made under any
Award or under the Plan the amount (in cash, Shares, other securities, other
Awards or other property) of withholding taxes due in respect of an Award, its
exercise or any payment or transfer under such Award or under the Plan and to
take such other action as may be necessary in the opinion of the Company or
Affiliate to satisfy all obligations for the payment of such taxes.

     (c) No Limit on Other Compensation Arrangements. Nothing contained in the
Plan shall prevent the Company or any Affiliate from adopting or continuing in
effect other or additional compensation arrangements, including the grant of
options and other stock-based awards, and such arrangements may be either
generally applicable or applicable only in specific cases.

     (d) No Right to Employment. The grant of an Award shall not be construed as
giving a Participant the right to be retained in the employ of the Company or
any Affiliate. Further, the Company or an Affiliate may at any time dismiss a
Participant from employment, free from any liability, or any claim under the
Plan, unless otherwise expressly provided in the Plan or in any Award Agreement
or other written agreement with the Participant.

     (e) Governing Law. The validity, construction and effect of the Plan and
any rules and regulations relating to the Plan shall be determined in accordance
with the laws of the State of Michigan and applicable Federal law.

     (f) Severability. If any provision of the Plan or any Award is or becomes
or is deemed to be invalid, illegal or unenforceable in any jurisdiction or as
to any person or Award, or would disqualify the Plan or any Award under any law
deemed applicable by the Committee, such provision shall be construed or deemed
amended to conform to applicable laws, or if it cannot be so construed or deemed
amended without, in the determination of the Committee, materially altering the
intent of the Plan or the Award, such provision shall be stricken as to such
jurisdiction, person or Award, and the remainder of the Plan and any such Award
shall remain in full force and effect.

     (g) No Trust or Fund Created. Neither the Plan nor any Award shall create
or be construed to create a trust or separate fund of any kind or a fiduciary
relationship between the Company or any Affiliate and a Participant or any other
person. To the extent that any person acquires a right to receive payments from
the Company or any Affiliate pursuant to an Award, such right shall be no
greater than the right of any unsecured general creditor of the Company or any
Affiliate.

                                      -12-
<PAGE>   13

     (h) No Fractional Shares. No fractional Shares shall be issued or delivered
pursuant to the Plan or any Award, and the Committee shall determine whether
cash, other securities, or other property shall be paid or transferred in lieu
of any fractional Shares, or whether such fractional Shares or any rights
thereto shall be cancelled, terminated or otherwise eliminated.

     (i) Headings. Headings are given to the Sections and subsections of the
Plan solely as a convenience to facilitate reference. Such headings shall not be
deemed in any way material or relevant to the construction or interpretation of
the Plan or any provision thereof.

SECTION 9.  EFFECTIVE DATE OF THE PLAN

     The Plan shall be effective as of the date of its approval by the Company's
stockholders.

                                      -13-

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