Document:

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                                                                    EXHIBIT 10.1

                                  SYNTEL, INC.

              AMENDED AND RESTATED STOCK OPTION AND INCENTIVE PLAN

                            (EFFECTIVE JUNE 1, 2006)

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                                TABLE OF CONTENTS

                                                                            PAGE
                                                                            ----

I. GENERAL PROVISIONS......................................................
  1.1     ESTABLISHMENT....................................................
  1.2     PURPOSE..........................................................
  1.3     PLAN DURATION....................................................
  1.4     DEFINITIONS......................................................
  1.5     ADMINISTRATION...................................................
  1.6     PARTICIPANTS.....................................................
  1.7     STOCK............................................................
  1.8     REPRICING........................................................
II. STOCK OPTIONS..........................................................
  2.1     GRANT OF OPTIONS.................................................
  2.2     INCENTIVE STOCK OPTIONS..........................................
  2.3     OPTION PRICE.....................................................
  2.4     PAYMENT FOR OPTION SHARES........................................
III. STOCK APPRECIATION RIGHTS.............................................
  3.1     GRANT OF STOCK APPRECIATION RIGHTS...............................
  3.2     EXERCISE PRICE...................................................
  3.3     EXERCISE OF STOCK APPRECIATION RIGHTS............................
  3.4     STOCK APPRECIATION RIGHT PAYMENT.................................
  3.5     MAXIMUM STOCK APPRECIATION RIGHT AMOUNT PER SHARE................

IV. RESTRICTED STOCK AND UNITS.............................................
  4.1     GRANT OF RESTRICTED STOCK AND RESTRICTED STOCK UNITS.............
  4.2     RESTRICTED STOCK AGREEMENT.......................................
  4.3     TRANSFERABILITY..................................................
  4.4     OTHER RESTRICTIONS...............................................
  4.5     VOTING RIGHTS....................................................
  4.6     DIVIDENDS AND DIVIDEND EQUIVALENTS...............................
  4.7     SETTLEMENT OF RESTRICTED STOCK UNITS.............................

V. PERFORMANCE AWARDS......................................................
  5.1     GRANT OF PERFORMANCE AWARDS......................................
  5.2     TERMS OF PERFORMANCE AWARDS......................................
VI. ANNUAL INCENTIVE AWARDS................................................
  6.1     GRANT OF ANNUAL INCENTIVE AWARDS.................................
  6.2     PAYMENT OF ANNUAL INCENTIVE AWARDS...............................
VII. CODE SECTION 162(m) PERFORMANCE MEASURE AWARDS........................
  7.1     AWARDS GRANTED UNDER CODE SECTION 162(m).........................
  7.2     ATTAINMENT OF CODE SECTION 162(m) GOALS..........................
  7.3     INDIVIDUAL PARTICIPANT LIMITATIONS...............................
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VIII. TERMINATION OF EMPLOYMENT OR SERVICES................................
  8.1     OPTIONS AND STOCK APPRECIATION RIGHTS............................
  8.2     RESTRICTED STOCK AND RESTRICTED STOCK UNITS......................
  8.3     PERFORMANCE AWARDS...............................................
  8.4     ANNUAL INCENTIVE AWARDS..........................................
  8.5     OTHER PROVISIONS.................................................
IX. ADJUSTMENTS AND CHANGE IN CONTROL......................................
  9.1     ADJUSTMENTS......................................................
  9.2     CHANGE IN CONTROL................................................
X. MISCELLANEOUS...........................................................
  10.1    PARTIAL EXERCISE/FRACTIONAL SHARES...............................
  10.2    RIGHTS PRIOR TO ISSUANCE OF SHARES...............................
  10.3    NON-ASSIGNABILITY; CERTIFICATE LEGEND; REMOVAL...................
  10.4    SECURITIES LAWS..................................................
  10.5    FOREIGN LAW RESTRICTIONS.........................................
  10.6    WITHHOLDING TAXES................................................
  10.7    TERMINATION AND AMENDMENT........................................
  10.8    CODE SECTION 409A................................................
  10.9    EFFECT ON EMPLOYMENT OR SERVICES.................................
  10.10   USE OF PROCEEDS..................................................
  10.11   SEVERABILITY.....................................................
  10.12   BENEFICIARY DESIGNATION..........................................
  10.13   UNFUNDED OBLIGATION..............................................
  10.14   APPROVAL OF PLAN.................................................
  10.15   GOVERNING LAW....................................................

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                                  SYNTEL, INC.
              AMENDED AND RESTATED STOCK OPTION AND INCENTIVE PLAN
                            (EFFECTIVE JUNE 1, 2006)

                              I. GENERAL PROVISIONS

     1.1 ESTABLISHMENT.  On April 17, 2006 the Board of Directors ("Board") of
Syntel, Inc. ("Corporation") adopted the Syntel, Inc. 2006 Stock Option and
Incentive Plan ("Plan"), subject to the approval of shareholders at the
Corporation's annual meeting of shareholders on June 1, 2006. The Plan amends
and restates the 1997 Stock Option and Incentive Plan that was approved by the
shareholders on April 1, 1997.

     1.2 PURPOSE.   The purpose of the Plan is to (a) promote the best interests
of the Corporation and its shareholders by encouraging Employees and Non-
Employee Directors of the Corporation and its Subsidiaries to acquire an
ownership interest in the Corporation by granting stock-based Awards, thus
aligning their interests with those of shareholders, and (b) enhance the ability
of the Corporation to attract, motivate and retain qualified Employees and Non-
Employee Directors. It is the further purpose of the Plan to authorize certain
Awards that will constitute performance based compensation, as described in Code
Section 162(m) and Treasury regulations promulgated thereunder.

     1.3 PLAN DURATION.  Subject to shareholder approval, the Plan shall become
effective on June 1, 2006 and shall continue in effect until its termination by
the Board; provided, however, that no new Awards may be granted on or after May
31, 2016.

     1.4 DEFINITIONS.   As used in this Plan, the following terms have the
meaning described below:

          (A) "AGREEMENT" means the written document that sets forth the terms
     of a Participant's Award.

          (B) "ANNUAL INCENTIVE AWARD" means an Award that is granted in
     accordance with Article VI.

          (C) "AWARD" means any form of Option, Stock Appreciation Right,
     Restricted Stock, Restricted Stock Unit, Performance Award, Annual
     Incentive Award or other incentive award granted under the Plan.

          (D) "BOARD" means the Board of Directors of the Corporation.

          (E) "CHANGE IN CONTROL" for purposes other than Code Section 409A
     means the occurrence of any of the following events: (i) the acquisition of
     ownership by a person, firm or corporation, or a group acting in concert,
     of fifty-one percent, or more, of the outstanding Common Stock of the
     Corporation in a single transaction or a series of related transactions
     within a one-year period; (ii) a sale of all or substantially all of the
     assets of the Corporation to any person, firm or corporation; or (iii) a
     merger or similar transaction between the Corporation and another entity if
     shareholders of the Corporation do not won a majority of the voting stock
     of the corporation surviving the transaction and a majority in value of the
     total outstanding stock of such surviving corporation after the
     transaction; provided however, that any such event involving any of the
     current shareholders of the Corporation as of the date of adoption of this
     Plan by the Board (or any entity at any time controlled by any such
     shareholder or shareholders) shall not be included within the meaning of
     "Change in Control."

          (F) "CHANGE IN CONTROL" for Code Section 409A purposes, means the
     occurrence of any of the following events:

               (i) If any one person, or more than one person acting as a group
          (as defined in Code Section 409A and IRS guidance issued thereunder),
          acquires ownership of Common Stock of the Corporation that, together
          with stock held by such person or group, constitutes more than fifty
          (50) percent of the total fair market value or total voting power of
          the Common Stock of the Corporation. However, if any one person or
          more than one person acting as a group, is considered to own more than
          fifty (50) percent of the total fair market value or total voting
          power of the Common Stock of the Corporation, the acquisition of
          additional stock by the same person or persons is not considered to
          cause a Change in Control, or to cause a change in the effective
          control of the Corporation (within the meaning of Code Section 409A
          and IRS guidance issued thereunder). An increase in the percentage of
          Common Stock owned by any one person, or persons acting as a group, as
          a result of a transaction in which the Corporation acquires its stock
          in

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          exchange for property shall be treated as an acquisition of stock for
          purposes of this Section. This paragraph applies only when there is a
          transfer of stock of the Corporation (or issuance of stock of the
          Corporation) and stock in such Corporation remains outstanding after
          the transaction.

               (ii) If any one person, or more than one person acting as a group
          (as determined in accordance with Code Section 409A and IRS guidance
          thereunder), acquires (or has acquired during the 12-month period
          ending on the date of the most recent acquisition by such person or
          persons) ownership of Common Stock of the Corporation possessing
          thirty-five (35) percent or more of the total voting power of the
          Common Stock of the Corporation; or

               (iii) If a majority of members on the Corporation's Board is
          replaced during any 12-month period by Directors whose appointment or
          election is not endorsed by a majority of the members of the
          Corporation's Board prior to the date of the appointment or election
          (provided that for purposes of this paragraph, the term Corporation
          refers solely to the "relevant" Corporation, as defined in Code
          Section 409A and IRS guidance issued thereunder), for which no other
          Corporation is a majority shareholder.

               (iv) If there is a change in the ownership of a substantial
          portion of the Corporation's assets, which shall occur on the date
          that any one person, or more than one person acting as a group (within
          the meaning of Code Section 409A and IRS guidance issued thereunder)
          acquires (or has acquired during the 12-month period ending on the
          date of the most recent acquisition by such person or persons) assets
          from the Corporation that have a total gross fair market value equal
          to or more than forty (40) percent of the total gross fair market
          value of all of the assets of the Corporation immediately prior to
          such acquisition or acquisitions. For this purpose, gross fair market
          value means the value of the assets of the Corporation, or the value
          of the assets being disposed of, determined without regard to any
          liabilities associated with such assets.

          (G) "CHANGE IN POSITION" means, with respect to any Participant; 9i)
     such Participant's involuntary termination of employment; or (ii) a
     significant reduction in such Participant's duties, responsibilities,
     compensation and/or fringe benefits, or the assignment to such participant
     of duties inconsistent with his position (all as in effect immediately
     prior to a Change in Control), whether or not such Participant voluntarily
     terminates employment as a result thereof.

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

          (I) "COMMITTEE" means the Compensation Committee of the Board, or any
     other committee or sub-committee of the Board, designated by the Board from
     time to time, comprised solely of two or more Directors who are "Non-
     Employee Directors," as defined in Rule 16b-3 of the Exchange Act, "Outside
     Directors" as defined in Code Section 162(m) and Treasury regulations
     thereunder, and "Independent Directors" for purposes of the rules and
     regulations of the Stock Exchange. The failure of a Committee member to
     qualify under any of these requirements shall not invalidate any Award made
     by the Committee, if the Award is otherwise validly made under the Plan.
     The members of the Committee shall be appointed by, and may be changed at
     any time and from time to time, at the discretion of the Board.

          (J) "COMMON STOCK" means shares of the Corporation's authorized common
     stock.

          (K) "CORPORATION" means Syntel, Inc., a Michigan corporation.

          (L) "DIRECTOR" means an individual who has been elected or appointed
     to serve as a Director of the Corporation.

          (M) "DISABILITY" means total and permanent disability, as defined in
     Code Section 22(e); provided, however, that for purposes of a Code Section
     409A distribution event, "disability" shall be defined under Code Section
     409A and IRS guidance issued thereunder.

          (N) "DIVIDEND EQUIVALENT" means a credit, made at the discretion of
     the Committee or as otherwise provided by the Plan, to the account of a
     Participant in an amount equal to the cash dividend paid on one share

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     of Common Stock for each share of Common Stock represented by an Award held
     by such Participant. Dividend Equivalents shall not be paid on Option or
     Stock Appreciation Right Awards.

          (O) "EMPLOYEE" means an individual who has an "employment
     relationship" with the Corporation or a Subsidiary, as defined in Treasury
     Regulation 1.421-7(h), and the term "employment" means employment with the
     Corporation, or a Subsidiary of the Corporation.

          (P) "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
     amended from time to time, and any successor thereto.

          (Q) "FAIR MARKET VALUE" means for purposes of determining the value of
     Common Stock on the Grant Date, the Stock Exchange closing price of the
     Corporation's Common Stock as reported in The Wall Street Journal (or as
     otherwise reported by such Stock Exchange) for the Grant Date. In the event
     that there are no Common Stock transactions on such date, the Fair Market
     Value shall be determined as of the immediately preceding date on which
     there were Common Stock transactions. Unless otherwise specified in the
     Plan, "Fair Market Value" for purposes of determining the value of Common
     Stock on the date of exercise means the closing price of the Common Stock
     on the Stock Exchange for the last date preceding the exercise on which
     there were Common Stock transactions.

          (R) "GRANT DATE" means the date on which the Committee authorizes an
     Award, or such later date as shall be designated by the Committee.

          (S) "INCENTIVE STOCK OPTION" means an Option that is intended to meet
     the requirements of Section 422 of the Code.

          (T) "NONQUALIFIED STOCK OPTION" means an Option that is not an
     Incentive Stock Option.

          (U) "OPTION" means either an Incentive Stock Option or a Nonqualified
     Stock Option.

          (V) "PARTICIPANT" means an Employee (including an Employee who is a
     Director) or Non-Employee Director, who is designated by the Committee to
     participate in the Plan.

          (W) "PERFORMANCE AWARD" means any Award of Performance Shares or
     Performance Units granted pursuant to Article V.

          (X) "PERFORMANCE MEASURES" means the measures of performance of the
     Corporation and its Subsidiaries used to determine a Participant's
     entitlement to an Award under the Plan. Such performance measures shall
     have the same meanings as used in the Corporation's financial statements,
     or, if such terms are not used in the Corporation's financial statements,
     they shall have the meaning applied pursuant to generally accepted
     accounting principles, or as used generally in the Corporation's industry.
     Performance Measures shall be calculated with respect to the Corporation
     and each Subsidiary consolidated therewith for financial reporting purposes
     or such division or other business unit as may be selected by the
     Committee. For purposes of the Plan, the Performance Measures shall be
     calculated in accordance with generally accepted accounting principles,
     but, unless otherwise determined by the Committee, prior to the accrual or
     payment of any Award under this Plan for the same performance period and
     excluding the effect (whether positive or negative) of any change in
     accounting standards or any extraordinary, unusual or nonrecurring item, as
     determined by the Committee, occurring after the establishment of the
     performance goals. Performance Measures shall be one or more of the
     following, or a combination of any of the following, on an absolute or peer
     group comparison, as determined by the Committee:

       - earnings (as measured by net income, operating income, operating income
         before interest, EBIT, EBITA, EBITDA, pre-tax income, or cash earnings,
         or earnings as adjusted by excluding one or more components of
         earnings, including each of the above on a per share and/or segment
         basis);

       - sales/net sales;

       - return on net sales (as measured by net income, operating income,
         operating income before interest, EBIT, EBITA, EBITDA, pre-tax income,
         operating cash flow or cash earnings as a percentage of net sales);

       - sales growth;

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       - cash flow;

       - operating cash flow;

       - free cash flow;

       - discounted cash flow;

       - working capital;

       - market capitalization;

       - cash return on investment -- CRI;

       - return on capital;

       - return on cost of capital;

       - shareholder value;

       - return on equity;

       - total shareholder return;

       - return on investment;

       - economic value added;

       - return on assets/net assets;

       - stock trading multiples (as measured vs. investment, net income,
         operating income, operating income before interest, EBIT, EBITA,
         EBITDA, pre-tax income, cash earnings or operating cash flow);

       - stock price;

       - attainment of strategic or operational initiatives.

          (Y) "PERFORMANCE SHARE" means any grant pursuant to Article V and
     Section 5.2(b)(i).

          (Z) "PERFORMANCE UNIT" means any grant pursuant to Article V and
     Section 5.2(b)(ii).

          (AA) "PLAN" means the Amended and Restated Stock Option and Incentive
     Plan, the terms of which are set forth herein, and any amendments thereto.

          (BB) "RESTRICTION PERIOD" means the period of time during which a
     Participant's Restricted Stock or Restricted Stock Unit is subject to
     restrictions and is nontransferable.

          (CC) "RESTRICTED STOCK" means Common Stock granted pursuant to Article
     IV that is subject to a Restriction Period.

          (DD) "RESTRICTED STOCK UNIT" means a right granted pursuant to Article
     IV to receive Restricted Stock or an equivalent value in cash.

          (EE) "RETIREMENT" means termination of employment on or after
     attainment of age 65.

          (FF) "SECURITIES ACT" means the Securities Act of 1933, as amended.

          (GG) "STOCK APPRECIATION RIGHT" means the right to receive a cash or
     Common Stock payment from the Corporation, in accordance with Article III
     of the Plan.

          (HH) "STOCK EXCHANGE" means the principal national securities exchange
     on which the Common Stock is listed for trading, or, if the Common Stock is
     not listed for trading on a national securities exchange, such other
     recognized trading market or quotation system upon which the largest number
     of shares of Common Stock has been traded in the aggregate during the last
     20 days before a Grant Date, or date on which an Option is exercised,
     whichever is applicable.

          (II) "SUBSIDIARY" means a corporation or other entity defined in Code
     Section 424(f).

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          (JJ) "SUBSTITUTE AWARDS" shall mean Awards granted or shares issued by
     the Corporation in assumption of, or in substitution or exchange for,
     awards previously granted, or the right or obligation to make future
     awards, by a company acquired by the Corporation or any Subsidiary or with
     which the Corporation or any Subsidiary combines.

          (KK) "VESTED" or "VESTING" means the extent to which an Award granted
     or issued hereunder has become exercisable or any applicable Restriction
     Period has terminated in accordance with the Plan and the terms of any
     respective Agreement pursuant to which such Award was granted or issued.

     1.5 ADMINISTRATION.

     (A) The Plan shall be administered by the Committee. The Committee shall
interpret the Plan, prescribe, amend, and rescind rules and regulations relating
to the Plan, and make all other determinations necessary or advisable for its
administration. The decision of the Committee on any question concerning the
interpretation of the Plan or its administration with respect to any Award
granted under the Plan shall be final and binding upon all Participants. No
member of the Committee shall be liable for any action or determination made in
good faith with respect to the Plan or any Award hereunder.

     (B) In addition to any other powers set forth in the Plan and subject to
the provisions of the Plan, but, in the case of Awards designated as Awards
under Code Section 162(m), subject to the requirements of Code Section 162(m),
the Committee shall have the full and final power and authority, in its
discretion to:

          (i) amend, modify, or cancel any Award, or to waive any restrictions
     or conditions applicable to any Award or any shares acquired pursuant
     thereto;

          (ii) subject to Code Section 409A, accelerate, continue, or defer the
     exercisability or Vesting of any Award or any shares acquired pursuant
     thereto;

          (iii) authorize, in conjunction with any applicable deferred
     compensation plan of the Corporation, that the receipt of cash or Common
     Stock subject to any Award under this Plan may be deferred under the terms
     and conditions of such deferred compensation plan;

          (iv) determine the terms and conditions of Awards granted to
     Participants; and

          (v) establish such other Awards, besides those specifically enumerated
     in the Plan, which the Committee determines are consistent with the Plan's
     purposes.

     1.6 PARTICIPANTS.   Participants in the Plan shall be such Employees
(including Employees who are Directors) and Non-Employee Directors of the
Corporation and its Subsidiaries as the Committee in its sole discretion may
select from time to time. The Committee may grant Awards to an individual upon
the condition that the individual become an Employee or Non-Employee Director of
the Corporation or of a Subsidiary, provided that the Award shall be deemed to
be granted only on the date that the individual becomes an Employee or Non-
Employee Director, as applicable.

     1.7 STOCK.

     (A) The Corporation has reserved eight million (8,000,000) shares of the
Corporation's Common Stock for issuance pursuant to stock-based Award (all of
which may be granted as Incentive Stock Options under the Plan). All provisions
in this Section 1.7 shall be adjusted, as applicable, in accordance with Article
IX.

     (B) If any shares subject to an Award are forfeited, cancelled, expire or
otherwise terminate without issuance of such shares, or any Award is settled for
cash or otherwise does not result in the issuance of all or a portion of the
shares subject to such Award, the shares shall, to the extent of such
forfeiture, cancellation, expiration, termination, cash settlement or non-
issuance, again be available for Awards under the Plan.

     (C) In the event that (i) any Option or other Award granted hereunder is
exercised through the tendering of shares or by the withholding of shares by the
Corporation, or (ii) withholding tax liabilities arising from such Option or
other Award are satisfied by the tendering of shares or by the withholding of
shares by the Corporation, then only the number of shares issued net of the
shares tendered or withheld shall be counted for purposes of determining the
maximum number of shares available for issuance under the Plan.

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     (D) Substitute Awards shall not reduce the shares reserved for issuance
under the Plan or authorized for grant to a Participant in any fiscal year.
Additionally, in the event that a company acquired by the Corporation or any
Subsidiary or with which the Corporation or any Subsidiary combines has shares
available under a pre-existing plan approved by shareholders and not adopted in
contemplation of such acquisition or combination, the shares available for grant
pursuant to the terms of such pre-existing plan (as adjusted, to the extent
appropriate, using the exchange ratio or other adjustment or valuation ratio or
formula used in such acquisition or combination to determine the consideration
payable to the holders of common stock of the entities party to such acquisition
or combination) may be used for Awards under the Plan and shall not reduce the
Shares authorized for issuance under the Plan; provided that Awards using such
available shares shall not be made after the date awards or grants could have
been made under the terms of the pre-existing plan, absent the acquisition or
combination, and shall only be made to individuals who were not Employees or
Directors or an affiliate of the Corporation or its Subsidiaries prior to such
acquisition or combination.

     1.8 REPRICING.   Without the affirmative vote of holders of a majority of
the shares of Common Stock cast in person or by proxy at a meeting of the
shareholders of the Corporation at which a quorum representing a majority of all
outstanding shares is present or represented by proxy, neither the Board nor the
Committee shall approve a program providing for either (a) the cancellation of
outstanding Options and/or Stock Appreciation Rights and the grant in
substitution therefore of any new Awards under the Plan having a lower exercise
price than the Fair Market Value of the underlying Common Stock on the original
Grant Date, or (b) the amendment of outstanding Options and/or Stock
Appreciation Rights to reduce the exercise price thereof below the Fair Market
Value of the underlying Common Stock on the original Grant Date. This Section
shall not be construed to apply to "issuing or assuming a stock option in a
transaction to which section 424(a) applies," within the meaning of Section 424
of the Code.

                                II. STOCK OPTIONS

     2.1 GRANT OF OPTIONS.   The Committee, at any time and from time to time,
subject to the terms and conditions of the Plan, may grant Options to such
Participants and for such number of shares of Common Stock as it shall
designate. Any Participant may hold more than one Option under the Plan and any
other plan of the Corporation or Subsidiary. The Committee shall determine the
general terms and conditions of exercise, which shall be set forth in a
Participant's Agreement. No Option granted hereunder may be exercised after the
tenth anniversary of the Grant Date. The Committee may designate any Option
granted as either an Incentive Stock Option or a Nonqualified Stock Option, or
the Committee may designate a portion of an Option as an Incentive Stock Option
or a Nonqualified Stock Option. Unless otherwise provided in a Participant's
Agreement, Options are intended to satisfy the requirements of Code Section
162(m) and the regulations promulgated thereunder, to the extent applicable.

     2.2 INCENTIVE STOCK OPTIONS.   Any Option intended to constitute an
Incentive Stock Option shall comply with the requirements of this Section 2.2.
An Incentive Stock Option only may be granted to an Employee. No Incentive Stock
Option shall be granted with an exercise price below the Fair Market Value of
Common Stock on the Grant Date nor with an exercise term that extends beyond ten
(10) years from the Grant Date. An Incentive Stock Option shall not be granted
to any Participant who owns (within the meaning of Code Section 424(d)) stock of
the Corporation or any Subsidiary possessing more than 10% of the total combined
voting power of all classes of stock of the Corporation or a Subsidiary unless,
at the Grant Date, the exercise price for the Option is at least 110% of the
Fair Market Value of the shares subject to the Option and the Option, by its
terms, is not exercisable more than five (5) years after the Grant Date. The
aggregate Fair Market Value of the underlying Common Stock (determined at the
Grant Date) as to which Incentive Stock Options granted under the Plan
(including a plan of a Subsidiary) may first be exercised by a Participant in
any one calendar year shall not exceed $100,000. To the extent that an Option
intended to constitute an Incentive Stock Option shall violate the foregoing
$100,000 limitation (or any other limitation set forth in Code Section 422), the
portion of the Option that exceeds the $100,000 limitation (or violates any
other Code Section 422 limitation) shall be deemed to constitute a Nonqualified
Stock Option.

     2.3 OPTION PRICE.   The Committee shall determine the per share exercise
price for each Option granted under the Plan. No Option may be granted with an
exercise price below 100% of the Fair Market Value of Common Stock on the Grant
Date.

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     2.4 PAYMENT FOR OPTION SHARES.

     (A) The purchase price for shares of Common Stock to be acquired upon
exercise of an Option granted hereunder shall be paid in full in cash or by
personal check, bank draft or money order at the time of exercise; provided,
however, that in lieu of such form of payment, and if permitted in a
Participant's Agreement, payment may be made by (i) delivery to the Corporation
of outstanding shares of Common Stock that have been held at least six (6)
months, on such terms and conditions as may be specified in the Participant's
Agreement; (ii) by delivery to the Corporation of a properly executed exercise
notice, acceptable to the Corporation, together with irrevocable instructions to
the Participant's broker to deliver to the Corporation sufficient cash to pay
the exercise price and any applicable income and employment withholding taxes,
in accordance with a written agreement between the Corporation and the brokerage
firm; (iii) delivery of other consideration approved by the Committee having a
Fair Market Value on the exercise date equal to the total purchase price; (iv)
other means determined by the Committee; or (v) any combination of the
foregoing. Shares of Common Stock surrendered upon exercise shall be valued at
the Stock Exchange closing price for the Corporation's Common Stock on the day
prior to exercise, and the shares shall be surrendered to the Corporation.

     (B) Notwithstanding the foregoing, an Option may not be exercised by
delivery to or withholding by the Corporation of shares of Common Stock to the
extent that such delivery or withholding (i) would constitute a violation of the
provisions of any law or regulation (including the Sarbanes-Oxley Act of 2002),
or (ii) if there is a substantial likelihood that the use of such form of
payment would result in adverse accounting treatment to the Corporation under
generally accepted accounting principles. Until a Participant has been issued a
certificate or certificates for the shares of Common Stock so purchased (or the
book entry representing such shares has been made and such shares have been
deposited with the appropriate registered book-entry custodian), he or she shall
possess no rights as a record holder with respect to any such shares.

                         III. STOCK APPRECIATION RIGHTS

     3.1 GRANT OF STOCK APPRECIATION RIGHTS.   Stock Appreciation Rights may be
granted, held and exercised in such form and upon such general terms and
conditions as determined by the Committee on an individual basis. A Stock
Appreciation Right may be granted to a Participant with respect to such number
of shares of Common Stock of the Corporation as the Committee may determine.
Unless otherwise provided in a Participant's Agreement, Stock Appreciation
Rights are intended to satisfy the requirements of Code Section 162(m) and the
regulations promulgated thereunder, to the extent applicable. No Stock
Appreciation Right shall be granted with an exercise term that extends beyond
ten (10) years from the Grant Date.

     3.2 EXERCISE PRICE.   The Committee shall determine the per share exercise
price for each Stock Appreciation Right granted under the Plan; provided,
however, that the exercise price of a Stock Appreciation Right shall not be less
than 100% of the Fair Market Value of the shares of Common Stock covered by the
Stock Appreciation Right on the Grant Date.

     3.3 EXERCISE OF STOCK APPRECIATION RIGHTS.   A Stock Appreciation Right
shall be deemed exercised upon receipt by the Corporation of written notice of
exercise from the Participant. The Committee shall specify in a Participant's
Agreement whether payment shall be made in cash or shares of Common Stock, or
any combination thereof.

     3.4 STOCK APPRECIATION RIGHT PAYMENT.  Upon exercise of a Stock
Appreciation Right, a Participant shall be entitled to payment from the
Corporation, in cash, shares, or partly in each (as determined by the Committee
in accordance with any applicable terms of the Agreement), of an amount equal to
the difference between (i) the aggregate Fair Market Value on the exercise date
for the specified number of shares being exercised, and (ii) the aggregate
exercise price for the specified number of shares being exercised.

     3.5 MAXIMUM STOCK APPRECIATION RIGHT AMOUNT PER SHARE.   The Committee may,
at its sole discretion, establish (at the time of grant) a maximum amount per
share which shall be payable upon the exercise of a Stock Appreciation Right,
expressed as a dollar amount.

<PAGE>

                         IV. RESTRICTED STOCK AND UNITS

     4.1 GRANT OF RESTRICTED STOCK AND RESTRICTED STOCK UNITS.   Subject to the
terms and conditions of the Plan, the Committee, at any time and from time to
time, may grant shares of Restricted Stock and Restricted Stock Units under the
Plan to such Participants and in such amounts as it shall determine.

     4.2 RESTRICTED STOCK AGREEMENT.   Each grant of Restricted Stock or
Restricted Stock Units shall be evidenced by an Agreement that shall specify the
terms of the restrictions, including the Restriction Period, or periods, the
number of Common Stock shares subject to the grant, or units, the purchase price
for the shares of Restricted Stock, if any, the form of consideration that may
be used to pay the purchase price of the Restricted Stock, including those
specified in Section 2.4, and such other general terms and conditions, including
performance goals, as the Committee shall determine.

     4.3 TRANSFERABILITY.   Except as provided in this Article IV and Section
10.3 of the Plan, the shares of Common Stock subject to an Award of Restricted
Stock or Restricted Stock Units granted hereunder may not be transferred,
pledged, assigned, or otherwise alienated or hypothecated until the termination
of the applicable Restriction Period or for such period of time as shall be
established by the Committee and specified in the applicable Agreement, or upon
the earlier satisfaction of other conditions as specified by the Committee in
its sole discretion and as set forth in the applicable Agreement.

     4.4 OTHER RESTRICTIONS.   The Committee shall impose such other
restrictions on any shares of Common Stock subject to an Award of Restricted
Stock or Restricted Stock Units under the Plan as it may deem advisable
including, without limitation, restrictions under applicable Federal or State
securities laws, and the issuance of a legended certificate of Common Stock
representing such shares to give appropriate notice of such restrictions. The
Committee shall have the discretion to waive the applicable Restriction Period
with respect to all or any part of the Common Stock subject to an Award of
Restricted Stock or Restricted Stock Units that has not been granted under Code
Section 162(m).

     4.5 VOTING RIGHTS.   During the Restriction Period, Participants holding
shares of Common Stock subject to a Restricted Stock Award may exercise full
voting rights with respect to the Restricted Stock.

     4.6 DIVIDENDS AND DIVIDEND EQUIVALENTS.

     (A) Except as set forth below or in a Participant's Agreement, during the
Restriction Period, a Participant shall be entitled to receive all dividends and
other distributions paid with respect to shares of Common Stock subject to an
Award of Restricted Stock. If any dividends or distributions are paid in shares
of Common Stock during the Restriction Period applicable to an Award of
Restricted Stock, the dividend or other distribution shares shall be subject to
the same restrictions on transferability as the shares of Common Stock with
respect to which they were paid.

     (B) The Committee, in its discretion, may provide in the Agreement
evidencing any Restricted Stock Unit that the Participant shall be entitled to
receive Dividend Equivalents with respect to the payment of cash dividends on
Common Stock having a record date prior to the date on which Restricted Stock
Units held by such Participant are settled. Such Dividend Equivalents, if any,
shall be paid by crediting the Participant with additional whole Restricted
Stock Units as of the date of payment of such cash dividends on Common Stock.
The number of additional Restricted Stock Units (rounded to the nearest whole
number) to be so credited shall be determined by dividing (i) the amount of cash
dividends paid on such date with respect to the number of shares of Common Stock
represented by the Restricted Stock Units previously credited to the
Participant, by (ii) the Fair Market Value per share of Common Stock on such
date. Such additional Restricted Stock Units shall be subject to the same terms
and conditions and shall be settled in the same manner and at the same time (or
as soon thereafter as practicable) as the Restricted Stock Units originally
subject to the Restricted Stock Unit. In the event of a dividend or distribution
paid in shares of Common Stock or any other adjustment made upon a change in the
capital structure of the Corporation as described in Article IX, appropriate
adjustments shall be made in the Participant's Restricted Stock Unit so that it
represents the right to receive upon settlement any and all new, substituted or
additional securities or other property (other than normal cash dividends) to
which the Participant would be entitled by reason of the shares of Common Stock
issuable upon settlement of the Restricted Stock Unit, and all such new,
substituted or additional securities or other property shall be immediately
subject to the same restrictions as are applicable to the Restricted Stock Unit.

<PAGE>

     4.7 SETTLEMENT OF RESTRICTED STOCK UNITS.   If a Restricted Stock Unit is
payable in Common Stock, the Corporation shall issue to a Participant on the
date on which Restricted Stock Units subject to the Participant's Restricted
Stock Unit Vest or on such other date determined by the Committee, in its
discretion, and set forth in the Agreement, one (1) share of Common Stock and/or
any other new, substituted or additional securities or other property pursuant
to an adjustment described in Section 9.1 for each Restricted Stock Unit then
becoming Vested or otherwise to be settled on such date, subject to the
withholding of applicable taxes.

                              V. PERFORMANCE AWARDS

     5.1 GRANT OF PERFORMANCE AWARDS.   The Committee, at its discretion, may
grant Performance Awards to Participants and may determine, on an individual or
group basis, the performance goals to be attained pursuant to each Performance
Award.

     5.2 TERMS OF PERFORMANCE AWARDS.

     (A) Performance Awards shall consist of rights to receive cash, Common
Stock, other property or a combination of each, if designated performance goals
are achieved. The terms of a Participant's Performance Award shall be set forth
in a Participant's Agreement. Each Agreement shall specify the performance
goals, which may include the Performance Measures, applicable to a particular
Participant or group of Participants, the period over which the targeted goals
are to be attained, the payment schedule if the goals are attained, and any
other general terms as the Committee shall determine and conditions applicable
to an individual Performance Award. The Committee, at its discretion, may waive
all or part of the conditions, goals and restrictions applicable to the receipt
of full or partial payment of a Performance Award that has not been granted
pursuant to Code Section 162(m).

     (B) Performance Awards may be granted as Performance Shares or Performance
Units, at the discretion of the Committee.

          (i) In the case of Performance Shares, the Participant shall receive a
     legended certificate of Common Stock, restricted from transfer prior to the
     satisfaction of the designated performance goals and restrictions, as
     determined by the Committee and specified in the Participant's Agreement.
     Prior to satisfaction of the performance goals and restrictions, the
     Participant shall be entitled to vote the Performance Shares. Further, any
     dividends paid on such shares during the performance period automatically
     shall be reinvested on behalf of the Participant in additional Performance
     Shares under the Plan, and such additional shares shall be subject to the
     same performance goals and restrictions as the other shares under the
     Performance Share Award.

          (ii) In the case of Performance Units, the Participant shall receive
     an Agreement from the Committee that specifies the performance goals and
     restrictions that must be satisfied before the Corporation shall issue the
     payment, which may be cash, a designated number of shares of Common Stock,
     other property, or a combination thereof.

                           VI. ANNUAL INCENTIVE AWARDS

     6.1 GRANT OF ANNUAL INCENTIVE AWARDS.

     (A) The Committee, at its discretion, may grant Annual Incentive Awards to
such Participants as it may designate from time to time. The terms of a
Participant's Annual Incentive Award shall be set forth in the Participant's
individual Agreement. Each Agreement shall specify such general terms and
conditions as the Committee shall determine.

     (B) The determination of Annual Incentive Awards for a given year may be
based upon the attainment of specified levels of Corporation or Subsidiary
performance as measured by pre-established, objective performance criteria
determined at the discretion of the Committee, including any or all of the
Performance Measures.

     (C) The Committee shall (i) select those Participants who shall be eligible
to receive an Annual Incentive Award, (ii) determine the performance period,
(iii) determine target levels of performance, and (iv) determine the level of
Annual Incentive Award to be paid to each selected Participant upon the
achievement of each performance level. The Committee generally shall make the
foregoing determinations prior to the commencement of services to

<PAGE>

which an Annual Incentive Award relates (or within the permissible time-period
established under Code Section 162(m)), to the extent applicable, and while the
outcome of the performance goals and targets is uncertain.

     6.2 PAYMENT OF ANNUAL INCENTIVE AWARDS.

     (A) Annual Incentive Awards shall be paid in cash, shares of Common Stock
or other property, at the discretion of the Committee. Payments shall be made
within thirty (30) days following a determination by the Committee that the
performance targets were attained and within two and a half (2 1/2) months after
the later of the end of the fiscal or calendar year in which the Annual
Incentive Award is earned.

     (B) The amount of an Annual Incentive Award to be paid upon the attainment
of each targeted level of performance shall equal a percentage of a
Participant's base salary for the fiscal year, a fixed dollar amount, or such
other formula, as determined by the Committee.

               VII. CODE SECTION 162(M) PERFORMANCE MEASURE AWARDS

     7.1 AWARDS GRANTED UNDER CODE SECTION 162(M).  The Committee, at its
discretion, may designate that a Restricted Stock, Restricted Stock Unit,
Performance Share, Performance Unit or Annual Incentive Award shall be granted
pursuant to Code Section 162(m). Such an Award must comply with the following
additional requirements, which shall control over any other provision that
pertains to such Award under Articles IV, V and VI.

     (A) Each Code Section 162(m) Award shall be based upon the attainment of
specified levels of pre-established, objective Performance Measures that are
intended to satisfy the performance based compensation requirements of Code
Section 162(m) and the regulations promulgated thereunder. Further, at the
discretion of the Committee, an Award also may be subject to goals and
restrictions in addition to the Performance Measures.

     (B) For each Code Section 162(m) Award, the Committee shall (i) select the
Participant who shall be eligible to receive a Code Section 162(m) Award, (ii)
determine the applicable performance period, (iii) determine the target levels
of the Corporation or Subsidiary Performance Measures, and (iv) determine the
number of shares of Common Stock or cash or other property (or combination
thereof) subject to an Award to be paid to each selected Participant. The
Committee shall make the foregoing determinations prior to the commencement of
services to which an Award relates (or within the permissible time period
established under Code Section 162(m)) and while the outcome of the performance
goals and targets is uncertain.

     7.2 ATTAINMENT OF CODE SECTION 162(M) GOALS.

     (A) After each performance period, the Committee shall certify, in writing:
(i) if the Corporation has attained the performance targets, and (ii) the number
of shares pursuant to the Award that are to become freely transferable, if
applicable, or the cash or other property payable under the Award. The Committee
shall have no discretion to waive all or part of the conditions, goals and
restrictions applicable to the receipt of full or partial payment of an Award
except in the case of the death or Disability of a Participant.

     (B) Notwithstanding the foregoing, the Committee may, in its discretion,
reduce any Award based on such factors as may be determined by the Committee,
including, without limitation, a determination by the Committee that such a
reduction is appropriate in light of pay practices of competitors, or the
performance of the Corporation, a Subsidiary or a Participant relative to the
performance of competitors, or performance with respect to the Corporation's
strategic business goals.

     7.3 INDIVIDUAL PARTICIPANT LIMITATIONS.   Subject to adjustment as provided
in Section 9.1, no Participant in any one fiscal year of the Corporation may be
granted (a) Options or Stock Appreciation Rights with respect to more than one
hundred thousand (100,000) shares of Common Stock; (b) Restricted Stock or
Restricted Stock Units that are denominated in shares of Common Stock with
respect to more than twenty-five thousand (25,000) shares; and (c) Performance
Awards that are denominated in shares of Common Stock with respect to more than
twenty-five thousand (25,000) shares. The maximum dollar value payable to any
Participant in any one fiscal year of the Corporation with respect to an Annual
Incentive Award is the lesser of two (2) times the Participant's base salary for
the year or $1,000,000. If an Award is cancelled, the cancelled Award shall
continue to be counted towards the applicable limitations.

<PAGE>

                   VIII. TERMINATION OF EMPLOYMENT OR SERVICES

     8.1 OPTIONS AND STOCK APPRECIATION RIGHTS.

     (A) If, prior to the date when an Option or Stock Appreciation Right first
becomes Vested, a Participant terminates employment or services for any reason
(other than is provided in Section 9.2(a) following a Change in Control), the
Participant's right to exercise the Option or Stock Appreciation Right shall
terminate and all rights thereunder shall cease, unless provided otherwise in a
Participant's Agreement.

     (B) If, on or after the date when an Option or Stock Appreciation Right
first becomes Vested, a Participant terminates employment or services for any
reason other than death or Disability, the Participant shall have the right,
within the earlier of (i) the expiration of the Option or Stock Appreciation
Right, and (ii) three (3) months after termination of employment or services, as
applicable, to exercise the Option or Stock Appreciation Right to the extent
that it was exercisable and unexercised on the date of the Participant's
termination of employment or services, subject to any other limitation on the
exercise of the Option or Stock Appreciation Right in effect on the date of
exercise. The Committee may designate in a Participant's Agreement that an
Option or Stock Appreciation Right shall terminate at an earlier or later time
than set forth above.

     (C) If, on or after the date when an Option or Stock Appreciation Right
first becomes Vested, a Participant terminates employment or services due to
death while an Option or Stock Appreciation Right is still exercisable, the
person or persons to whom the Option or Stock Appreciation Right shall have been
transferred by will or the laws of descent and distribution, shall have the
right within the exercise period specified in the Participant's Agreement to
exercise the Option or Stock Appreciation Right to the extent that it was
exercisable and unexercised on the Participant's date of death, subject to any
other limitation on exercise in effect on the date of exercise. Provided,
however, that the beneficial tax treatment of an Incentive Stock Option may be
forfeited if the Option is exercised more than one (1) year after a
Participant's date of death.

     (D) If, on or after the date when an Option or Stock Appreciation Right
first becomes Vested, a Participant terminates employment or services due to
Disability, the Participant shall have the right, within the exercise period
specified in the Participant's Agreement, to exercise the Option or Stock
Appreciation Right to the extent that it was exercisable and unexercised on the
date of the Participant's termination of employment or services due to
Disability, subject to any other limitation on the exercise of the Option or
Stock Appreciation Right in effect on the date of exercise. If the Participant
dies after termination of employment or services, as applicable, while the
Option or Stock Appreciation Right is still exercisable, the Option or Stock
Appreciation Right shall be exercisable in accordance with the terms of
paragraph (c), above.

     (E) The Committee, at the time of a Participant's termination of employment
or services, may accelerate a Participant's right to exercise an Option or,
subject to Code Section 409A, may extend an Option term.

     (F) Shares subject to Options and Stock Appreciation Rights that are not
exercised in accordance with the provisions of (a) through (e) above shall
expire and be forfeited by the Participant as of their expiration date and shall
become available for new Awards under the Plan as of such date.

     8.2 RESTRICTED STOCK AND RESTRICTED STOCK UNITS.   If a Participant
terminates employment for any reason (other than is provided in Section 9.2(a)
following a Change in Control), the Participant's right to shares of Common
Stock subject to a Restricted Stock or Restricted Stock Unit Award that are
still subject to a Restriction Period automatically shall terminate and be
forfeited by the Participant (or, if the Participant was required to pay a
purchase price for the Restricted Stock, other than for the performance of
services, the Corporation shall have the option to repurchase any shares
acquired by the Participant which are still subject to the Restriction Period
for the purchase price paid by the Participant) and, subject to Section 1.6,
said shares shall be available for new Awards under the Plan as of such
termination date. Provided, however, that the Committee, in its sole discretion,
may provide in a Participant's Agreement for the continuation of a Restricted
Stock Award or Restricted Stock Unit after a Participant terminates employment
or services or may waive or, subject to Code Section 409A, change the remaining
restrictions or add additional restrictions, as it deems appropriate. The
Committee shall not waive any restrictions on a Code Section 162(m) Restricted
Stock or Restricted Stock Unit Award, but the Committee may provide in a
Participant's Code Section 162(m) Restricted Stock or Restricted Stock Unit
Agreement or otherwise that upon the Employee's termination of employment due to
(a) death, (b) Disability, or (c) involuntary termination

<PAGE>

by the Corporation without cause (as determined by the Committee) prior to the
termination of the Restriction Period, that the performance goals and
restrictions shall be deemed to have been satisfied on a pro-rata basis, so that
the number of shares that become freely transferable shall be based on the
Participant's full number of months of employment during the employment period,
and the Participant's shall forfeit the remaining shares, and the Participant's
rights to such forfeited shares shall terminate in full.

     8.3 PERFORMANCE AWARDS.   Performance Awards shall expire and be forfeited
by a Participant upon the Participant's termination of employment or services
for any reason (other than is provided in Section 9.2(a) following a Change in
Control), and, subject to Section 1.6, shall be available for new Awards under
the Plan as of such termination date. Provided, however, that the Committee, in
its discretion, may provide in a Participant's Agreement or, subject to Code
Section 409A, may provide otherwise for the continuation of a Performance Award
after a Participant terminates employment or services or may waive or change all
or part of the conditions, goals and restrictions applicable to such Performance
Award. Notwithstanding the foregoing, the Committee shall not waive any
restrictions on a Code Section 162(m) Performance Award, but the Committee may
provide in an Employee's Code Section 162(m) Performance Share Agreement or
otherwise that upon the Participant's termination of employment due to (a)
death; (b) Disability; or (c) involuntary termination by the Corporation without
cause (as determined by the Committee) prior to the attainment of the associated
performance goals and restrictions, that the performance goals and restrictions
shall be deemed to have been satisfied on a pro-rata basis, so that the number
of shares that become freely transferable shall be based on the Participant's
full number of months of employment during the employment period, and the
Participant's shall forfeit the remaining shares, and the Participant's rights
to such forfeited shares shall terminate in full.

     8.4 ANNUAL INCENTIVE AWARDS.

     (A) A Participant who has been granted an Annual Incentive Award and
terminates employment or services due to Retirement, Disability or death prior
to the end of the Corporation's fiscal year shall be entitled to a pro-rated
payment of the Annual Incentive Award, based on the number of full months of
employment or services, as applicable during the fiscal year. Any such prorated
Annual Incentive Award shall be paid at the same time as regular Annual
Incentive Awards and, in the event of the Participant's death, to the
Participant's designated beneficiary.

     (B) Except as otherwise determined by the Committee in its discretion, a
Participant who has been granted an Annual Incentive Award and resigns or is
terminated for any reason (other than Retirement, Disability or death), [before
the payment date of an Annual Incentive Award], shall forfeit the right to the
Annual Incentive Award payment for that fiscal year.

     8.5 OTHER PROVISIONS.   The transfer of an Employee from one corporation to
another among the Corporation and any of its Subsidiaries, or a leave of absence
under the leave policy of the Corporation or any of its Subsidiaries shall not
be a termination of employment for purposes of the Plan, unless a provision to
the contrary is expressly stated by the Committee in a Participant's Agreement
issued under the Plan.

                      IX. ADJUSTMENTS AND CHANGE IN CONTROL

     9.1 ADJUSTMENTS.  In the event of a merger, reorganization, consolidation,
recapitalization, dividend or distribution (whether in cash, shares or other
property), stock split, reverse stock split, spin-off or similar transaction or
other change in corporate structure affecting the Common Stock or the value
thereof, such adjustments and other substitutions shall be made to the Plan and
Awards as the Committee, in its sole discretion, deems equitable or appropriate,
including adjustments in the aggregate number, class and kind of securities that
may be delivered under the Plan and, in the aggregate or to any one Participant,
in the number, class, kind and option or exercise price of securities subject to
outstanding Awards granted under the Plan (including, if the Committee deems
appropriate, the substitution of similar options to purchase the shares of, or
other awards denominated in the shares of, another company, as the Committee may
determine to be appropriate in its sole discretion).

<PAGE>

     9.2 CHANGE IN CONTROL.

     (A) Notwithstanding anything contained herein to the contrary, in the event
of a Participant's Change in Position subsequent to a Change in Control, all of
the following shall occur: (i) any outstanding Option or Stock Appreciation
Right granted hereunder immediately shall become fully Vested and exercisable,
regardless of any installment provision applicable to such Option or Stock
Appreciation Right; (ii) the remaining Restriction Period on any Shares of
Common Stock subject to a Restricted Stock or Restricted Stock Unit Award
granted hereunder immediately shall lapse and the shares shall become fully
transferable, subject to any applicable Federal or State securities laws; (iii)
all performance goals and conditions shall be deemed to have been satisfied and
all restrictions shall lapse on any outstanding Performance Awards, which
immediately shall become payable; and (iv) for purposes of any Annual Incentive
Awards granted hereunder, the determination of whether the performance targets
and levels have been achieved shall be made as of the Change in Control and
payments due shall be immediately payable.

     (B) The Committee may, in its sole discretion and without the consent of
any Participant, determine that, upon the occurrence of a Change in Control,
each or any Option or Stock Appreciation Right outstanding immediately prior to
the Change in Control shall be cancelled in exchange for a payment with respect
to each Vested share of Common Stock subject to such cancelled Option or Stock
Appreciation Right in (i) cash, (ii) stock of the Corporation or of a
corporation or other business entity a party to the Change in Control, or (iii)
other property which, in any such case, shall be in an amount having a Fair
Market Value equal to the excess of the Fair Market Value of the consideration
to be paid per share of Common Stock in the Change in Control over the exercise
price per share under such Option or Stock Appreciation Right (the "Spread"). In
the event such determination is made by the Committee, the Spread (reduced by
applicable withholding taxes, if any) shall be paid to a Participant in respect
of the Participant's cancelled Options and Stock Appreciation Rights as soon as
practicable following the date of the Change in Control.

     (C) Notwithstanding the foregoing, but subject to Section 9.2(a), the
Committee, in its discretion, may provide in the event of a Change in Control
that the successor company shall assume or substitute for an Option, Stock
Appreciation Right, Restricted Stock, or Restricted Stock Unit payable in shares
of Common Stock, Performance Award payable in shares of Common Stock or Annual
Incentive Award payable in shares of Common Stock. For the purposes of this
Section 9.2(c), such an Option, Stock Appreciation Right, Restricted Stock,
Restricted Stock Unit, Performance Award or Annual Incentive Award shall be
considered assumed or substituted for if following the Change in Control the
Award confers the right to purchase or receive, for each share of Common Stock
subject to such Option, Stock Appreciation Right, Restricted Stock, Restricted
Stock Unit, Performance Award or Annual Incentive Award immediately prior to the
Change in Control, the consideration (whether stock, cash or other securities or
property) received in the transaction constituting a Change in Control by
holders of shares of Common Stock for each share held on the effective date of
such transaction (and if holders were offered a choice of consideration, the
type of consideration chosen by the holders of a majority of the outstanding
shares); provided, however, that if such consideration received in the
transaction constituting a Change in Control is not solely common stock of the
successor company, the Committee may, with the consent of the successor company,
provide that the consideration to be received upon the exercise or vesting of
such Option, Stock Appreciation Right, Restricted Stock, Restricted Stock Unit,
Performance Award or Annual Incentive Award, for each share of Common Stock
subject thereto, shall be solely common stock of the successor company
substantially equal in fair market value to the per share consideration received
by holders of shares of Common Stock in the transaction constituting a Change in
Control. The determination of such substantial equality of value of
consideration shall be made by the Committee in its sole discretion and its
determination shall be conclusive and binding.

                                X. MISCELLANEOUS

     10.1 PARTIAL EXERCISE/FRACTIONAL SHARES.   The Committee may permit, and
shall establish procedures for, the partial exercise of Options and Stock
Appreciation Rights granted under the Plan. No fractional shares shall be issued
in connection with the exercise of a Stock Appreciation Right or payment of a
Performance Award, Restricted Stock Award, Restricted Stock Unit, or Annual
Incentive Award, instead, the Fair Market Value of the

<PAGE>

fractional shares shall be paid in cash, or at the discretion of the Committee,
the number of shares shall be rounded down to the nearest whole number of shares
and any fractional shares shall be disregarded.

     10.2 RIGHTS PRIOR TO ISSUANCE OF SHARES.   No Participant shall have any
rights as a shareholder with respect to shares covered by an Award until the
issuance of a stock certificate for such shares (or book entry representing such
shares has been made and such shares have been deposited with the appropriate
registered book-entry custodian). No adjustment shall be made for dividends or
other rights with respect to such shares for which the record date is prior to
the date the certificate is issued except as otherwise provided in the Plan or a
Participant's Agreement or by the Committee.

     10.3 NON-ASSIGNABILITY; CERTIFICATE LEGEND; REMOVAL.

     (A) Except as described below or as otherwise determined by the Committee
in a Participant's Agreement, no Award shall be transferable by a Participant
except by will or the laws of descent and distribution, and an Option or Stock
Appreciation Right shall be exercised only by a Participant during the lifetime
of the Participant. Notwithstanding the foregoing, a Participant may assign or
transfer an Award that is not an Incentive Stock Option with the consent of the
Committee (each transferee thereof, a "Permitted Assignee"); provided that such
Permitted Assignee shall be bound by and subject to all of the terms and
conditions of the Plan and any Agreement relating to the transferred Award and
shall execute an agreement satisfactory to the Corporation evidencing such
obligations; and provided further that such Participant shall remain bound by
the terms and conditions of the Plan.

     (B) Each certificate representing shares of Common Stock subject to an
Award shall bear the following legend:

          The sale or other transfer of the shares of stock represented by this
          certificate, whether voluntary, involuntary or by operation of law, is
          subject to certain restrictions on transfer set forth in the Amended
          and Restated Stock Option and Incentive Plan ("Plan"), rules and
          administrative guidelines adopted pursuant to such Plan [and an
          Agreement dated           ,           ]. A copy of the Plan, such
          rules [and such Agreement] may be obtained from the General Counsel of
          Syntel, Inc.

     (C) Subject to applicable Federal and State securities laws, issued shares
of Common Stock subject to an Award shall become freely transferable by the
Participant after all applicable restrictions, limitations, performance
requirements or other conditions have terminated, expired, lapsed or been
satisfied. Once such issued shares of Common Stock are released from such
restrictions, limitations, performance requirements or other conditions, the
Participant shall be entitled to have the legend required by this Section 10.3
removed from the applicable Common Stock certificate.

     10.4 SECURITIES LAWS.

     (A) Anything to the contrary herein notwithstanding, the Corporation's
obligation to sell and deliver Common Stock pursuant to the exercise of an
Option or Stock Appreciation Right or deliver Common Stock pursuant to a
Restricted Stock Award, Restricted Stock Unit, Performance Award or Annual
Incentive Award is subject to such compliance with Federal and State laws, rules
and regulations applying to the authorization, issuance or sale of securities as
the Corporation deems necessary or advisable. The Corporation shall not be
required to sell and deliver or issue Common Stock unless and until it receives
satisfactory assurance that the issuance or transfer of such shares shall not
violate any of the provisions of the Securities Act of 1933 or the Securities
Exchange Act of 1934, or the rules and regulations of the Securities Exchange
Commission promulgated thereunder or those of the Stock Exchange or any stock
exchange on which the Common Stock may be listed, the provisions of any State
laws governing the sale of securities, or that there has been compliance with
the provisions of such acts, rules, regulations and laws.

     (B) The Committee may impose such restrictions on any shares of Common
Stock acquired pursuant to the exercise of an Option or Stock Appreciation Right
or the grant of Restricted Stock or Restricted Stock Units or the payment of a
Performance Award or Annual Incentive Award under the Plan as it may deem
advisable, including, without limitation, restrictions (i) under applicable
Federal securities laws; (ii) under the requirements of the Stock Exchange or
any other securities exchange or recognized trading market or quotation system
upon which such

<PAGE>

shares of Common Stock are then listed or traded; and (iii) under any blue sky
or State securities laws applicable to such shares.

     10.5 FOREIGN LAW RESTRICTIONS.  Anything to the contrary herein
notwithstanding, the Corporation's obligation to sell and deliver Common Stock
pursuant to the exercise of an Option or Stock Appreciation Right or deliver
Common Stock pursuant to a Restricted Stock grant, Performance Share Award or
Annual Incentive Award is subject to compliance with the laws, rules and
regulations of any foreign nation applying to the authorization, issuance or
sale of securities, providing of compensation, transfer of currencies and other
matters, as may apply to any Participant hereunder who is a resident of such
foreign nation. To the extent that it shall be impermissible under such foreign
laws for such a Participant to pay the exercise price for any Option granted
under the Plan (to the extent Vested), the Committee may treat such Participant
as being entitled instead to exercise additional Stock Appreciation Rights which
are of equivalent value to the Participant, as determined by comparing the Fair
Market Value upon exercise of the number of shares subject to the Option (to the
extent Vested), less the Option price of such shares. Further, to the extent
that it shall be impermissible under such foreign laws for the corporation to
deliver Common Stock to any such Participant pursuant to any Option, Stock
Appreciation Right, Restricted Stock Grant, Performance Award or Annual
Incentive Award granted under the Plan (to the extent Vested), the Committee may
arrange for payment to the Participant of an equivalent amount of cash in lieu
of such shares (less any amount otherwise payable by the Participant), in
accordance with all applicable Untied States and foreign currency restrictions
and regulations. To the extent that the Corporation is restricted in accordance
with such foreign laws from delivering shares of Common Stock to Participants as
would otherwise be provided for in this Plan, the Corporation shall be released
from such obligation and shall not be subject to the claims of any Participant
hereunder with respect thereto.

     10.6 WITHHOLDING TAXES.

     (A) The Corporation shall have the right to withhold from a Participant's
compensation or require a Participant to remit sufficient funds to satisfy
applicable withholding for income and employment taxes upon the exercise of an
Option or Stock Appreciation Right or the lapse of the Restriction Period on a
Restricted Stock Award, Restricted Stock Unit, or the payment of a Performance
Award or Annual Incentive Award. To satisfy the withholding obligation, a
Participant may tender previously-acquired shares of Common Stock that have been
held at least six (6) months or have shares of stock withheld from the exercise,
provided that the shares have an aggregate Fair Market Value sufficient to
satisfy in whole or in part the applicable withholding taxes. The broker
assisted exercise procedure of Section 2.4 may be utilized to satisfy the
withholding requirements related to the exercise of an Option. At no point shall
the Corporation withhold from the exercise of an Option more shares than are
necessary to meet the established tax withholding requirements of federal, state
and local obligations.

     (B) Notwithstanding the foregoing, a Participant may not use shares of
Common Stock to satisfy the withholding requirements to the extent that (i)
there is a substantial likelihood that the use of such form of payment or the
timing of such form of payment would subject the Participant to a substantial
risk of liability under Section 16 of the Exchange Act; (ii) such withholding
would constitute a violation of the provisions of any law or regulation
(including the Sarbanes-Oxley Act of 2002); or (iii) there is a substantial
likelihood that the use of such form of payment would result in adverse
accounting treatment to the Corporation under generally accepted accounting
principles.

     10.7 TERMINATION AND AMENDMENT.

     (A) The Board may terminate the Plan, or the granting of Awards under the
Plan, at any time. No new Awards shall be granted under the Plan after May 31,
2016.

     (B) The Board may amend or modify the Plan at any time and from time to
time, and the Committee may amend or modify the terms of an outstanding
Agreement at any time and from time to time, but no amendment or modification,
without the approval of the shareholders of the Corporation, shall (i)
materially increase the benefits accruing to Participants under the Plan; (ii)
increase the amount of Common Stock for which Awards may be made under the Plan,
except as permitted under Sections 1.6 and Article 9; or (iii) change the
provisions relating to the eligibility of individuals to whom Awards may be made
under the Plan. In addition, if the Corporation's Common Stock is listed on a
Stock Exchange, the Board may not amend the Plan in a manner requiring approval
of the

<PAGE>

shareholders of the Corporation under the rules of the Stock Exchange without
obtaining the approval of the shareholders.

     (C) No amendment, modification, or termination of the Plan or an
outstanding Agreement shall in any manner adversely affect any then outstanding
Award under the Plan without the consent of the Participant holding such Award,
except as set forth in any Agreement relating to the Award, or to bring the Plan
and/or an Award into compliance with the requirements of Code Section 409A or to
qualify for an exemption under Code Section 409A.

     10.8 CODE SECTION 409A.   It is intended that Awards granted under the Plan
shall be exempt from or in compliance with Code Section 409A, and the Board
reserves the right to amend the terms of the Plan, and the Committee reserves
the right to amend any outstanding Agreement if necessary either to exempt such
Award from Code Section 409A or comply with the requirements of Code Section
409A, as applicable. Further, Plan Participants who are "Specified Employees"
(as defined under Code Section 409A and IRS guidance issued thereunder), shall
be required to delay payment of an Award for six (6) months after separation
from service to the extent such Award is governed by Code Section 409A, and the
delay is required thereunder.

     10.9 EFFECT ON EMPLOYMENT OR SERVICES.   Neither the adoption of the Plan
nor the granting of any Award pursuant to the Plan shall be deemed to create any
right in any individual to be retained or continued in the employment or
services of the Corporation or a Subsidiary.

     10.10 USE OF PROCEEDS.   The proceeds received from the sale of Common
Stock pursuant to the Plan shall be used for general corporate purposes of the
Corporation.

     10.11 SEVERABILITY.   If any one or more of the provisions (or any part
thereof) of this Plan or of any Agreement issued hereunder, shall be held to be
invalid, illegal or unenforceable in any respect, such provision shall be
modified so as to make it valid, legal and enforceable, and the validity,
legality and enforceability of the remaining provisions (or any part thereof) of
the Plan or of any Agreement shall not in any way be affected or impaired
thereby. The Corporation may, without the consent of any Participant, and in a
manner determined necessary solely in the discretion of the Corporation, amend
the Plan and any outstanding Agreement as the Corporation deems necessary to
ensure the Plan and all Awards remain valid, legal or enforceable in all
respects.

     10.12 BENEFICIARY DESIGNATION.  Subject to local laws and procedures, each
Participant may file a written beneficiary designation with the Corporation
stating who is to receive any benefit under the Plan to which the Participant is
entitled in the event of such Participant's death before receipt of any or all
of a Plan benefit. Each designation shall revoke all prior designations by the
same Participant, be in a form prescribed by the Corporation, and become
effective only when filed by the Participant in writing with the Corporation
during the Participant's lifetime. If a Participant dies without an effective
beneficiary designation for a beneficiary who is living at the time of the
Participant's death, the Corporation shall pay any remaining unpaid benefits to
the Participant's legal representative.

     10.13 UNFUNDED OBLIGATION.   A Participant shall have the status of a
general unsecured creditor of the Corporation. Any amounts payable to a
Participant pursuant to the Plan shall be unfunded and unsecured obligations for
all purposes. The Corporation shall not be required to segregate any monies from
its general funds, or to create any trusts, or establish any special accounts
with respect to such obligations. The Corporation shall retain at all times
beneficial ownership of any investments, including trust investments, which the
Corporation may make to fulfill its payment obligations hereunder. Any
investments or the creation or maintenance of any trust or any Participant
account shall not create or constitute a trust or fiduciary relationship between
the Committee or the Corporation and a Participant, or otherwise create any
Vested or beneficial interest in any Participant or the Participant's creditors
in any assets of the Corporation. A Participant shall have no claim against the
Corporation for any changes in the value of any assets which may be invested or
reinvested by the Corporation with respect to the Plan.

     10.14 APPROVAL OF PLAN.   The Plan shall be subject to the approval of the
holders of at least a majority of the votes cast at a duly held meeting of
shareholders of the Corporation held within twelve (12) months after adoption of
the Plan by the Board. No Award granted under the Plan may be exercised or paid
in whole or in part unless the Plan has been approved by the shareholders as
provided herein. If not approved by shareholders within twelve

<PAGE>

(12) months after approval by the Board, the Plan and any Awards granted under
the Plan shall be null and void, with no further force or effect.

     10.15 GOVERNING LAW.  Except to the extent governed by applicable federal
law, the validity, interpretation, construction and performance of the Plan and
Agreements under the Plan, shall be governed by the laws of the State of
Michigan, without regard to its conflict of law rules.

     This Syntel, Inc. 2006 Stock Option and Incentive Plan has been executed on
behalf of the Corporation on this the 1st day of June, 2006.

                                        SYNTEL, INC.

                                        By:
                                            ------------------------------------
                                            Bharat Desai, President<PAGE>

                                                                    EXHIBIT 10.2

                                  SYNTEL, INC.

                AMENDED AND RESTATED EMPLOYEE STOCK PURCHASE PLAN

                            (EFFECTIVE JUNE 1, 2006)

<PAGE>

                                TABLE OF CONTENTS

                                                                            PAGE
                                                                            ----

I. GENERAL PROVISIONS......................................................
  1.1    Establishment.....................................................
  1.2    Purpose...........................................................
  1.3    Plan Duration.....................................................
  1.4    Definitions.......................................................
  1.5    Stock.............................................................
  1.6    Administration....................................................
  1.7    Participants......................................................
II. OFFER TERMS............................................................
  2.1    Offer and Purchase Period.........................................
  2.2    Option Price......................................................
  2.3    Participation.....................................................
  2.4    Participation Limitations.........................................
  2.5    Termination of Employment.........................................
  2.6    Restrictions on Transfer..........................................
III. MISCELLANEOUS.........................................................
  3.1    Non-Assignability.................................................
  3.2    Adjustments.......................................................
  3.3    Change in Control.................................................
  3.4    Termination and Amendment.........................................
  3.5    Rights Prior to Issuance of Shares................................
  3.6    Securities Laws...................................................
  3.8    Delivery of Plan..................................................
  3.9    Effect on Employment..............................................
  3.10   Certificates......................................................
  3.11   Use of Proceeds...................................................
  3.12   Approval of Plan..................................................
  3.13   Governing Law.....................................................
<PAGE>

                                  SYNTEL, INC.

                AMENDED AND RESTATED EMPLOYEE STOCK PURCHASE PLAN

                              I. GENERAL PROVISIONS

     1.1 ESTABLISHMENT.  On April 17, 2006, the Board of Directors ("Board") of
Syntel, Inc. ("Corporation") adopted the Amended and Restated Employee Stock
Purchase Plan ("Plan"), subject to approval by the shareholders of the
Corporation on June 1, 2006. The Plan amends and restates the Employee Stock
Purchase Plan that was approved by the shareholders on April 1, 1997.

     1.2 PURPOSE.   The purpose of the Plan is (i) to promote the best interests
of the Corporation and its shareholders by encouraging Employees of the
Corporation and any Subsidiaries to acquire an ownership interest in the
Corporation through the purchase of stock in the Corporation, thus aligning
their interests with those of shareholders, and (ii) to enhance the ability of
the Corporation and its Subsidiaries to attract, motivate and retain qualified
Employees. The Plan is intended to constitute an "employee stock purchase plan"
under Section 423 of the Code.

     1.3 PLAN DURATION.  Upon receipt of shareholders approval, the Plan shall
commence on June 1, 2006 and subject to earlier termination by the Board in
accordance with Section 3.4, no new Offers may be made under the Plan after May
31, 2016.

     1.4 DEFINITIONS.   As used in this Plan, the following terms have the
meaning described below:

          (A) "BOARD" means the Board of Directors of the Corporation.

          (B) "CODE" means the Internal Revenue Code of 1986, as amended from
     time to time.

          (D) "COMMITTEE" means the Compensation Committee of the Board.

          (E) "COMMON STOCK" means shares of the Corporation's Common Stock, as
     described in Section 1.4, below.

          (F) "CORPORATION" means Syntel, Inc. and, for purposes of this Plan,
     employment with the Corporation shall be deemed to include employment with
     any Subsidiary of the Corporation.

          (G) "ELECTION PERIOD" means the period of time designated by the
     Committee when an eligible Employee may elect to participate in one or more
     Purchase Periods.

          (H) "EMPLOYEE" means an individual who has an "employment
     relationship" with the Corporation or a Subsidiary, as defined in Treasury
     Regulation 1.421-7(h), and the term "employment" means employment with the
     Corporation or a Subsidiary, as applicable.

          (I) "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
     amended from time to time and any successor rule.

          (J) "FAIR MARKET VALUE" means for purposes of determining the value of
     Common Stock the Stock Exchange closing price of the Corporation's Common
     Stock as reported in The Wall Street Journal (or as otherwise reported by
     such Stock Exchange) for the Grant Date or the date of exercise of an
     option, as is applicable. In the event that there are no Common Stock
     transactions on such date, the Fair Market Value shall be determined as of
     the immediately preceding date on which there were Common Stock
     transactions.

          (K) "OFFER" means the Committee's designation of a Purchase Period
     available to eligible Employees and the terms on which an option may be
     exercised during the applicable Purchase Period.

          (L) "OPTION PRICE" means the price, determined by the Committee, at
     which Common Stock subject to an option may be purchased during a Purchase
     Period.

          (M) "PLAN" means the Amended and Restated Employee Stock Purchase
     Plan, the terms of which are set forth herein, and any amendments thereto.

<PAGE>

          (N) "PURCHASE PERIOD" means a period established by the Committee
     during which an eligible Employee may exercise options granted hereunder.

          (O) "STOCK EXCHANGE" means the principal national securities exchange
     on which the Common Stock is listed for trading, or, if the Common Stock is
     not listed for trading on a national securities exchange, such other
     recognized trading market or quotation system upon which the largest number
     of shares of Common Stock has been traded in the aggregate during the last
     20 days before the first or last day of a Purchase Period, as applicable.

          (P) "SUBSIDIARY" means any subsidiary of the Corporation, as defined
     in Code Section 424(f).

     1.5 STOCK.   The stock subject to option and purchase under the Plan shall
be the Common Stock of the Corporation, and may be either authorized and
unissued shares or shares that have been reacquired by the Corporation. The
total amount of Common Stock on which options may be granted under the Plan
shall not exceed one million five hundred thousand shares (1,500,000) shares,
subject to adjustment in accordance with Section 3.2. Shares of Common Stock
subject to any unexercised portion of a terminated, canceled or expired option
granted under the Plan may again be used for options under the Plan.

     1.6 ADMINISTRATION.   The Plan shall be administered by the Committee. The
Committee may prescribe rules and regulations from time to time for the
administration of the Plan and may decide questions which may arise with respect
to its interpretation or application. The decisions of the Committee in
interpreting the Plan shall be final, conclusive and binding on all persons,
including the Corporation, its Subsidiaries, Employees, and optionees. The
Committee, from time to time, shall grant to eligible Employees on a uniform
basis, options to purchase Common Stock pursuant to the terms and conditions of
the Plan. In the event of insufficient shares during a Purchase Period, the
Committee shall allocate the right to purchase shares to each participant in the
same proportion that such participant's total current base salary paid by the
Corporation for the Purchase Period bears to the total of such base salaries
paid by the Corporation to all participants during the same period. All excess
funds withheld, as a result of insufficient shares, shall be returned to the
participating Employees.

     1.7 PARTICIPANTS.   Except as provided in Section 2.4 below, any Employee
who has (a) completed six (6) full months of service with the Corporation, and
(b) whose customary employment is more than twenty (20) hours per week and five
(5) or more months per calendar year at the time of an Offer, is eligible to
participate in such Offer under the Plan, in accordance with the terms of the
Plan. An Employee who meets the eligibility requirements in this Section 1.6
shall be entitled to participate in the first Offer commencing after the
eligibility requirements have been satisfied.

                                 II. OFFER TERMS

     2.1 OFFER AND PURCHASE PERIOD.

     (A) The Committee shall determine the date or dates upon which one or more
Offers shall be made under the Plan. The Purchase Period pursuant to each Offer
shall be such term as the Committee shall determine prior to the commencement of
an Offer, but which in no event shall be fewer than six (6) nor more than
twenty-seven (27) months.

     (B) To participate in an Offer, an eligible Employee must submit such
enrollment forms as shall be prescribed by the Committee (which shall include a
payroll deduction authorization form) at such time and in such manner as shall
be prescribed by the Committee. The payroll deductions authorized by a
participant on a payroll deduction authorization form shall be expressed (i) as
a whole number percentage of the participant's "base compensation" for each pay
period during the Purchase Period, (ii) as a specified dollar amount to be
withheld from a participant's base compensation or bonus on one or more
designated payroll dates, or (iii) as a specified number of shares to be
purchased within the dollar and share limits set forth in the Plan. For purposes
of the Plan, a participant's "base compensation" for a pay period shall include
the participant's base compensation but shall exclude commissions, bonuses,
overtime, sick pay, severance pay, moving expenses, expense reimbursements and
allowances and other special payments and supplemental compensation. A
participant may not purchase more than 2,500 shares of

<PAGE>

Common Stock in any six (6) month Purchase Period (proportionately adjusted
upward for Purchase Periods of more than six (6) months).

     2.2 OPTION PRICE.

     (A) The Option Price at which shares of Common Stock may be purchased under
the Plan shall be determined by the Committee at the time of the Offer but in no
event shall such amount be less than the lesser of:

          (i) 85% of the Fair Market Value of a share of Common Stock on the
     date of grant of the option (first day of a Purchase Period), or

          (ii) 85% of the Fair Market Value of a share of Common Stock on the
     date the option is deemed exercised pursuant to Section 2.4(d) (last day of
     a Purchase Period).

     (B) For purposes of this Plan, the Fair Market Value per share shall be
deemed to be the closing price of Common Stock on the Stock Exchange for the
first and last days of the Purchase Period. In the event that there are no
Common Stock transactions on either date, the Fair Market Value shall be
determined as of the immediately preceding date on which there were Common Stock
transactions.

     2.3 PARTICIPATION.

     (A) An eligible Employee may elect to participate in an Offer by delivering
to the Corporation an election to participate and a payroll deduction form
within the Election Period designated by the Committee prior to the commencement
of a Purchase Period. An eligible Employee's election to participate and payroll
deduction form from the preceding Election Period automatically shall carry over
to the next Election Period unless affirmatively revoked in writing by the
Employee. An Employee who elects to participate may not authorize payroll
deductions which, in the aggregate, are more than thirty percent (30%) of the
Employee's cash compensation during the Purchase Period. For purposes of the
Plan, "cash compensation" shall mean an Employee's total cash compensation
during the Purchase Period, excluding performance, hire-on, and non-compete
bonuses and any other non-recurring special pay as determined by the Committee.
Only whole shares of Common Stock may be purchased under the Plan.

     (B) All Employees granted options under the Plan shall have the same rights
and privileges under the Plan, except that the number of shares each participant
may purchase shall depend upon his or her cash compensation and the designated
payroll deduction he or she authorizes. The maximum number of shares of Common
Stock that an eligible Employee may purchase in a Particular Purchase Period
shall be determined by the Committee and shall bear a uniform relationship to
the Employee's cash compensation, subject to rounding down for fractional
shares, as determined by the Committee.

     (C) Payroll deductions shall commence on the first payroll date in the
Purchase Period and shall continue until the last payroll date in the Purchase
Period. An Employee may suspend payroll deductions during a Purchase Period only
at the discretion of the Committee in the event of an unforeseen hardship;
provided, however, that payroll deductions made prior to approval of the
suspension by the Committee shall still be used to purchase Common Stock for the
Employee at the end of the Purchase Period.

     (D) A participating Employee's option shall be deemed to have been
exercised on the last business day of the Purchase Period.

     (E) As soon as practicable after the end of the Purchase Period, the
Corporation shall deliver to each Employee, certificates evidencing the shares
of Common Stock that an Employee has purchased (or a book entry representing
such shares shall be made and the shares deposited with the appropriate
registered book-entry custodian). Any amount that has been deducted representing
a fractional share shall be applied toward the purchase of option shares in the
next Purchase Period. An Employee who does not elect to participate in the
following Purchase Period shall receive a check from the Corporation for any
amount that has been deducted and represents a fractional share. Any payroll
deductions that exceed the limits set forth in Sections 2.1(b) and 2.4 shall be
returned to the participant in the amount of the excess.

     (F) The Corporation retains the right to designate an exclusive broker to
handle the Common Stock transactions under the Plan. As soon as practicable
after the end of the Purchase Period, the Corporation shall

<PAGE>

deliver to each Employee or a designated brokerage account, through a
certificate or electronic transfer, the shares of Common Stock that such
Employee has purchased. Unless otherwise determined by the Committee, any amount
that has been deducted and withheld in excess of the option price automatically
shall be paid by check to the participating Employee promptly following the end
of the Purchase Period in which withheld.

     (G) Unless otherwise determined by the Committee, no interest shall accrue
or be paid on any amounts paid by payroll deduction by any participating
Employee.

     2.4 PARTICIPATION LIMITATIONS.  Notwithstanding any other provision of the
Plan, no Employee shall be eligible to participate in an Offer under the Plan
if:

          (A) the Employee, immediately after such grant, would, in the
     aggregate, own and/or hold shares of Common Stock (including all shares
     which may be purchased under outstanding options, whether or not such
     options qualify for the special tax treatment afforded by Section 421(a) of
     the Code) equal to or exceeding five percent (5%) or more of the total
     combined voting power or value of all classes of capital stock of the
     Corporation or of its Subsidiaries; for purposes of this limitation, the
     rules of section 424(d) of the Code and the regulations promulgated
     thereunder (relating to attribution of stock ownership) shall apply; or

          (B) such grant would permit, under the rules set forth in Section 423
     of the Code and the regulations promulgated thereunder, the Employee's
     right to purchase stock under this Plan and all other Code Section 423
     employee stock purchase plans maintained by the Corporation and its
     Subsidiaries to accrue at a rate in excess of $25,000 in Fair Market Value
     of such stock (determined at the time such option is granted) for each
     calendar year in which such option is outstanding at any time.

     2.5 TERMINATION OF EMPLOYMENT.   If a participating Employee ceases to be
employed by the Corporation or a Subsidiary for any reason, including but not
limited to, voluntary or forced resignation, retirement, death, disability or
lay-off, the Corporation, within a reasonable time after notice of the
termination, shall issue a check to the former Employee (or executor,
administrator or legal representative, if applicable) in the aggregate amount of
the Employee's payroll deductions that had not been applied towards the purchase
of option shares as of the date of termination.

                               III. MISCELLANEOUS

     3.1 NON-ASSIGNABILITY.   No option shall be transferable by a participating
Employee, and an option may be exercised during a participating Employee's
lifetime only by the Employee. Upon the death of a participating Employee, his
or her executor, administrator or other legal representative shall receive a
check from the Corporation representing the aggregate amount of the deceased
Employee's payroll deductions that had not been applied towards the purchase of
option shares as of the date of death.

     3.2 ADJUSTMENTS.   In the event of a merger, reorganization, consolidation,
recapitalization, dividend or distribution (whether in cash, shares or other
property), stock split, reverse stock split, spin-off or similar transaction or
other change in corporate structure affecting the Common Stock or the value
thereof, such adjustments and other substitutions shall be made to the Plan and
Options as the Committee, in its sole discretion, deems equitable or
appropriate, including adjustments in the aggregate number, class and kind of
securities that may be delivered under the Plan and; in the aggregate or to any
one Participant, in the number, class, kind and option price of securities
subject to outstanding options under the Plan (including, if the Committee deems
appropriate, the substitution of similar options to purchase the shares of
another company, as the Committee may determine to be appropriate in its sole
discretion). Any of the foregoing adjustments may provide for the elimination of
any fractional share which might otherwise become subject to any option.

     3.3 CHANGE IN CONTROL.

     (A) After any merger of one or more corporations into the Corporation in
which the Corporation shall be the surviving corporation or any share exchange
in which the Corporation is a constituent corporation, each participant shall,
at no additional cost, be entitled upon the exercise of an option, to receive
(subject to any required action by shareholders), in lieu of the number of
shares of Common Stock for which such option shall then be exercisable, the
consideration which such participant would have been entitled to receive
pursuant to the terms of the agreement of

<PAGE>

merger or share exchange if at the time of such merger or share exchange such
participant had been a holder of record of a number of shares of Common Stock
equal to the number of shares then underlying the option. Comparable rights
shall accrue to each participating Employee in the event of successive mergers
or consolidations of the character described above.

     (B) Notwithstanding anything contained herein to the contrary, upon the
dissolution or liquidation of the Corporation or upon any merger or share
exchange in which the Corporation is not the surviving corporation (other than a
merger with a wholly-owned subsidiary of the Corporation formed for the purpose
of changing the Corporation's corporate domicile where the Plan is assumed by
the survivor), the Purchase Period for any option granted under this Plan shall
terminate as of the date of the aforementioned event, and each participant shall
be deemed to have exercised, immediately prior to such dissolution, liquidation,
merger or share exchange, his or her option to the extent payroll deductions
were made prior thereto.

     (C) The foregoing adjustments and the manner of application of the
foregoing provisions shall be determined by the Committee in its sole
discretion. Any such adjustment may provide for the elimination of any
fractional share which might otherwise become subject to an option.

     3.4 TERMINATION AND AMENDMENT.

     (A) The Board may terminate the Plan, or the granting of options under the
Plan, at any time. No option shall be granted under the Plan after May 31, 2016.

     (B) The Board may amend or modify the Plan at any time and from time to
time, but no amendment or modification shall disqualify the Plan under Section
423 of the Code or Rule 16b-3 under the Exchange Act without the approval of the
shareholders of the Corporation.

     (C) No amendment, modification, or termination of the Plan shall adversely
affect any option granted under the Plan without the consent of the Employee
holding the option.

     3.5 RIGHTS PRIOR TO ISSUANCE OF SHARES.   No participating Employee shall
have any rights as a shareholder with respect to shares covered by an option
until the issuance of a stock certificate or electronic transfer to the Employee
(or book entry representing such shares has been made and such shares have been
deposited with the appropriate registered book-entry custodian). No adjustment
shall be made for dividends or other rights with respect to such shares for
which the record date is prior to the date when the certificate is issued or the
shares electronically delivered to the Employee's brokerage account.

     3.6 SECURITIES LAWS.

     (A) Anything to the contrary herein notwithstanding, the Corporation's
obligation to sell and deliver Common Stock pursuant to the exercise of an
option is subject to such compliance with federal and state laws, rules and
regulations applying to the authorization, issuance or sale of securities as the
Corporation deems necessary or advisable. The Corporation shall not be required
to sell and deliver or issue Common Stock unless and until it receives
satisfactory assurance that the issuance or transfer of such shares shall not
violate any of the provisions of the Securities Act of 1933 or the Exchange Act,
or the rules and regulations of the Securities Exchange Commission promulgated
thereunder or those of any stock exchange on which the stock may be listed and
the provisions of any state laws governing the sale of securities, or that there
has been compliance with the provisions of such acts, rules, regulations and
laws.

     (B) The Board may impose such restrictions on any shares of Common Stock
acquired pursuant to the exercise of an option under the Plan as it may deem
advisable, including, without limitation, restrictions (i) under applicable
federal securities laws, (ii) under the requirements of a Stock Exchange or
other recognized trading market upon which such shares of Common Stock are then
listed or traded, and (iii) under any blue sky or state securities laws
applicable to such shares. No shares shall be issued until counsel for the
Corporation has determined that the Corporation has complied with all
requirements under appropriate securities laws.

     3.7 FOREIGN LAW RESTRICTIONS.  Anything to the contrary herein
notwithstanding, the Corporation's obligation to sell and deliver Common Stock
pursuant to the exercise of an option is subject to compliance with the laws,
rules and regulations of any foreign nation applying to the authorization,
issuance or sale of securities,

<PAGE>

providing of compensation, transfer of currencies and other matters, as may
apply to any participating Employee hereunder who is a resident of such foreign
nation. To the extent that it shall be impermissible under such foreign laws for
such a Participant to pay the exercise price for any option granted under the
Plan or for the Corporation to deliver Common Stock to any such Participant
pursuant to any option granted under the Plan, the Committee shall refund to
such Employee the aggregate amount of the payroll deductions made pursuant to
this Plan (to the extent such amounts have not previously been applied towards
the purchase of option shares, in accordance with all applicable United States
and foreign currency restrictions and regulations). To the extent that the
Corporation is restricted in accordance with such foreign laws from delivering
shares of Common Stock to participating Employees as would otherwise be provided
for in this Plan, the Corporation shall be released from such obligation and
shall not be subject to the claims of any Employee hereunder with respect
thereto.

     3.8 DELIVERY OF PLAN.   Each Employee who is a participant in the Plan
shall have delivered to him or her a copy of the Plan.

     3.9 EFFECT ON EMPLOYMENT.   Neither the adoption of the Plan nor the
granting of an option pursuant to it shall be deemed to create any right in any
individual to be retained or continued in the employment of the Corporation.

     3.10 CERTIFICATES.   If certificates are issued, the Corporation shall have
the right to retain such certificates representing shares of Common Stock issued
pursuant to the Plan until such time as all conditions and/or restrictions
applicable to such shares of Common Stock have been satisfied.

     3.11 USE OF PROCEEDS.   The proceeds received from the sale of Common Stock
pursuant to the Plan shall be used for general corporate purposes of the
Corporation.

     3.12 APPROVAL OF PLAN.   The Plan shall be subject to the approval of the
holders of at least a majority of the Common Stock of the Company present and
entitled to vote at a meeting of shareholders of the Company held within twelve
(12) months after adoption of the Plan by the Board. If not approved by
shareholders within such 12-month period, the Plan and any options granted
hereunder shall become void and of no effect.

     3.13 GOVERNING LAW.   This Plan shall be governed by and construed under
the laws of the State of Michigan without regard to its conflict of law
provisions.

     This Syntel, Inc. 2006 Employee Stock Purchase Plan has been executed on
behalf of the Corporation on this the 1st day of June, 2006.

                                        SYNTEL, INC.

                                        By:
                                            ------------------------------------
                                            Bharat Desai, President

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