Document:

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                                                                   EXHIBIT 10.24

                        TOTAL RENAL CARE HOLDINGS, INC.

                          FIRST AMENDED AND RESTATED
                         1997 EQUITY COMPENSATION PLAN

     1.   Purpose.  The purpose of the Amended and Restated Total Renal Care
Holdings, Inc. 1997 Equity Compensation Plan (this "Plan") is to promote the
interests of Total Renal Care Holdings, Inc. (the "Company") and its
stockholders by enabling the Company to offer Participants an opportunity to
acquire an equity interest in the Company so as to better attract, retain, and
reward employees, directors, and other persons providing services to the Company
and, accordingly, to strengthen the mutuality of interests between Participants
and the Company's stockholders by providing Participants with a proprietary
interest in pursuing the Company's long-term growth and financial success.

     2.   Definitions.  For purposes of this Plan, the following terms shall
have the meanings set forth below.

          (a) "Award" means an Option granted under this Plan or Restricted
Stock issued under this Plan.

          (b) "Board" means the Board of Directors of the Company.

          (c) "Code" means the Internal Revenue Code of 1986, as amended, and
the applicable regulations thereunder.  Reference to any specific section of the
Code shall be deemed to be a reference to any successor provision.

          (d) "Committee" means the committee appointed by the Board, if any, to
administer this Plan as permitted by Section 4 below or, if no such committee is
appointed, the Board.

          (e) "Common Stock" means the common stock of Total Renal Care
Holdings, Inc. or any security issued in substitution, exchange, or in lieu
thereof.

          (f) "Company" means Total Renal Care Holdings, Inc., a Delaware
corporation, or any successor corporation.  Except where the context indicates
otherwise, the term "Company" shall include the Subsidiaries of Total Renal Care
Holdings, Inc.

          (g) "Incentive Stock Option" means an option to purchase Common Stock
that is an incentive stock option under Section 422 of the Code.

          (h) "1995 Plan" means the Company's 1995 Equity Incentive Plan.
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          (i) "Non-Qualified Stock Option" means any Option that is not an
Incentive Stock Option.

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

          (k) "Participant" means a person who has been granted an Option or
Restricted Stock.

          (l) "Plan" means this 1997 Equity Compensation Plan of the Company, as
it may be amended from time to time.

          (m) "Restricted Stock" means shares of Common Stock issued pursuant to
this Plan that are subject to contractual restrictions.

          (n) "Spill-Over Shares" means (i) 66,526 shares of Common Stock which
remained available for issuance under the 1995 Plan on the date this Plan was
approved by the Company's stockholders, and (ii) shares of Common Stock which
would otherwise have become available for issuance under the 1995 Plan due to
the expiration or termination of options granted under the 1995 Plan prior to
stockholder approval of the 1997 Plan.

          (o) "Subsidiary" means any corporation (other than the Company) in an
unbroken chain of corporations beginning with the Company if each of the
corporations (other than the last corporation in the unbroken chain) owns stock
possessing fifty percent (50%) or more of the total combined voting power of all
classes of stock in one of the other corporations in the chain, as determined in
accordance with the rules of Section 424(f) of the Code.

     3.   Eligibility.  All employees, directors, and other persons providing
bona fide services (other than persons only providing services in connection
with the offering or sale of securities in a capital raising transaction) to the
Company or any Subsidiary are eligible to receive Awards under this Plan;
provided, however, that Incentive Stock Options may only be granted to employees
of the Company or any Subsidiary.  In the event that the Company acquires
another entity, the Committee may authorize the issuance of Awards ("Substitute
Awards") to employees, directors and other persons in substitution of stock
options or restricted stock grants previously granted to such employees,
directors and other persons in connection with their performance of services for
the acquired entity upon such terms and conditions as the Committee shall
determine, taking into account the limitations of Code Section 424(a) in the
case of any Substitute Award that is intended to be an Incentive Stock Option.

     4.   Administration.  This Plan shall be administered by the Board or by a
committee consisting of two or more members of the Board appointed by the Board
to administer this Plan. The Committee is authorized to interpret this Plan and
to adopt rules and procedures relating to the administration of this Plan.  All
actions of the committee in connection with the interpretation and
administration of this Plan shall be binding upon all parties.  Subject to the
limitations set

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forth below, the Committee is expressly authorized to make such modifications to
this plan and the Awards granted hereunder as are necessary to effectuate the
intent of this Plan as a result of any changes in the tax, accounting, or
securities laws treatment of Participants and the Plan. The Committee may
delegate its responsibilities to others under such conditions and limitations as
it may prescribe.

     5.   Effective Date of this Plan.  This Plan shall be effective as of July
1, 1997.  This Plan may be terminated by the Board at any time.  Unless earlier
terminated by the Board, this Plan shall terminate as of the close of business
on the day prior to the tenth anniversary of the effective date of this Plan.
The foregoing notwithstanding, no termination of this Plan shall adversely
affect the rights of any Participant with respect to any Award outstanding as of
the time of such termination.

     6.   Shares Subject to this Plan.  The aggregate number of shares of Common
Stock which may be issued pursuant to this Plan shall be equal to the sum of (i)
7,166,667 shares plus (ii) up to 833,333 Spill-Over Shares from the 1995 Plan.
This aggregate number may be adjusted from time to time as set forth in Section
11 below.  Subject to adjustments as provided in Section 11 below, the maximum
number of shares of Common Stock which may be issuable pursuant to Awards
granted during any calendar year to any Participant is 833,333 shares.  Upon the
expiration or termination of any Option granted under this Plan which shall not
have been exercised in full, the shares of Common Stock remaining unissued under
such Option shall again become available for granting under the Plan.  Upon the
repurchase or forfeiture of any shares of Restricted Stock issued hereunder,
such repurchased shares of Common Stock shall again become available for
issuance under this Plan.

     7.   Form of Options.  Options shall be granted under this Plan on such
terms and in such form as the Committee may approve, which shall not be
inconsistent with the provisions of this Plan, and which need not be the same
for each such grant.  Options may be either Nonqualified Stock Options or
Incentive Stock Options.  The terms and conditions of each Option shall include,
in addition to such other terms and conditions as may be established by the
Committee, (i) the per share exercise price of such Option, (ii) the termination
date of such Option, which shall not be later than ten years after the date of
grant, and (iii) the effect on such Option of the termination of the
Participant's employment.  Any Option which is intended, as evidenced by its
designation, as an Incentive Stock Option shall be made subject to such terms
and conditions as may be required for such Option to qualify as an Incentive
Stock Option under the Code.  Incentive Stock Options granted under this Plan
shall also include as a requirement that the Participant receiving such
Incentive Stock Option notify the Company if he or she disposes of Common Stock
acquired pursuant to the exercise thereof prior to the expiration of the holding
period prescribed in Section 422(a)(1) of the Code.  Any Option which is
intended to constitute "qualified performance-based compensation" as such term
is defined in the regulations promulgated under Section 162(m) of the Code shall
be granted in such manner and made subject to such terms and conditions as may
be required for such Option to so qualify as "qualified performance-based
compensation."

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     8.   Restricted Stock.  The Committee may issue Restricted Stock upon such
terms, restrictions and conditions as it may deem appropriate, which need not be
the same for each grant.  Restricted Stock may be issued for such consideration
as the Committee may determine; provided, however, that in no case shall shares
of Restricted Stock be issued for less than the minimum consideration required
by law, if any.  Effective for Awards granted after May 1, 1999, no more than
five percent (5%) of the total number of shares subject to Awards granted on or
after that date may be in the form of Restricted Stock.

     9.   Modification of Awards.  The Committee may modify any outstanding
Award as it deems appropriate.  Such authority shall include, without
limitation, the right to decrease the exercise price of any Option, accelerate
the right to exercise any Option and modify any restrictions with respect to any
Restricted Stock; provided, however, that no modification may be made to any
Award that would adversely affect the rights of the Participant with respect to
any outstanding Award without such Participant's consent.  In the event that the
Board amends the terms of an Option so that it no longer qualifies as an
Incentive Stock Option, the limitations imposed upon the Option under the Code
and the Plan by virtue of it (formerly) qualifying as an Incentive Stock Option
shall no longer apply, to the extent specified in the amendment.  Whether a
modification of an existing Incentive Stock Option will be treated as an
issuance of a new Incentive Stock Option will be determined in accordance with
the rules of Code Section 424(h).

     10.  Transfer Restrictions.  During the lifetime of the Participant,
Options granted to such Participant under this Plan are exercisable only by the
Participant and are not assignable or transferable, except by will or the laws
of descent and distribution.  Shares of Restricted Stock shall be subject to
such restrictions on transferability as may be imposed by the Committee.

     11.  Adjustments.  In the event of any stock split, reverse stock split,
stock dividend, recapitalization, combination, reclassification, reorganization,
merger, combination, consolidation, exchange of Common Stock or spinoff or other
distribution of Company assets to stockholders (other than normal cash
dividends), the Committee may, in such manner and to such extent, if any, as it
deems appropriate and equitable, authorize such adjustments with respect to: (i)
the aggregate number and kind of shares for which Awards may be granted under
this Plan; (ii) the number and kind of shares covered by outstanding Awards; and
(iii) the per share exercise price of outstanding Options and the per share
repurchase price of outstanding Restricted Stock. In connection with any merger
or consolidation of the Company with or into another entity in which the Company
is not the surviving corporation or as a result of which the Common Stock ceases
or will cease to be publicly traded, the Committee may, but shall not be
required to, authorize the termination of all outstanding Options upon the
consummation of such merger or consolidation, provided that, as a condition to
such termination, all restrictions on the exercisability of such Options (i.e.,
vesting provisions) shall be eliminated and the holders thereof shall be given
at least 20 days prior to such termination to exercise such Options without
regard to any such restrictions.

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     12.  Amendment of this Plan.  The Board may amend this Plan at any time;
provided, however, that no such amendment may adversely affect the rights of any
Participant with respect to any outstanding Award without the Participant's
consent.

     13.  Tax Withholding.  The Company shall have the right to take such
actions as may be necessary to satisfy its tax withholding obligations arising
because of the operation of this Plan.

     14.  No Additional Rights.  Neither the adoption of this Plan nor the
granting of any Option or the issuance of any Restricted Stock shall (i) affect
or restrict in any way the power of the Company to undertake any corporate
action otherwise permitted under applicable law, (ii) confer upon any
Participant the right to continue performing services for the Company, or (iii)
interfere in any way with the right of the Company to terminate the services of
any Participant at any time, with or without cause, subject to such other
contractual obligations which may exist.  No Participant shall have any rights
as a shareholder with respect to any shares covered by an Option granted to the
Participant until the date a certificate for such shares has been issued to the
Participant following the exercise of the Option.

     15.  Securities Law Restrictions.  No shares of Common Stock shall be
issued under this Plan unless the Committee shall be satisfied that the issuance
will be in compliance with applicable federal and state securities laws, as well
as the requirements of any stock exchange on which the Common Stock is traded.
The Committee may require certain investment or other representations and
undertakings by the person exercising an Option or purchasing Restricted Stock
in order to comply with applicable law.  Certificates for shares of Common Stock
delivered under this Plan may be subject to such restrictions as the Committee
may deem advisable.  The Committee may cause a legend to be placed on the
certificates to refer to these restrictions.

     16.  Indemnification.  To the maximum extent permitted by law, the Company
shall indemnify each member of the Committee and each other member of the Board,
as well as any other employee of the Company with duties under this Plan,
against expenses (including any amount paid in settlement, provided such
settlement is approved by the Company) reasonably incurred by the individual in
connection with any claim against the individual by reason of the performance of
the individual's duties as a member of the Committee, unless the losses are due
to the individual's gross negligence or lack of good faith; provided, however,
that the Company shall be entitled to control the defense of any such claim and
shall be entitled to engage counsel for such defense; and provided further, that
if more than one member of the Committee or such other employee is subject to
such claim, or if the Company or other parties entitled to indemnification by
the Company are also subject to such claim, the Company, if applicable, and all
such parties shall be represented by a single counsel selected by the Company
and no member or other party shall be entitled to be represented by separate
counsel at the Company's expense unless counsel selected by the Company advises
the Company in writing that such counsel cannot represent such member or other
party under applicable rules of professional responsibility.

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     17.  Governing Law.  This Plan and all actions taken thereunder shall be
governed by and construed in accordance with the laws of the State of Delaware.

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                                                                   EXHIBIT 10.25

                          FIRST AMENDED AND RESTATED
                        TOTAL RENAL CARE HOLDINGS, INC.

                          SPECIAL PURPOSE OPTION PLAN
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     1.   Purpose.  This Special Purpose Option Plan (the "Plan") is created to
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provide for the issuance of Adjusted Options, as such term is defined in that
certain Agreement and Plan of Merger (the "Merger Agreement") dated November 18,
1997, by and among Total Renal Care Holdings, Inc., a Delaware corporation (the
"Company"), Nevada Acquisition Corp., a Delaware corporation and wholly-owned
subsidiary of the Company, and Renal Treatment Centers, Inc., a Delaware
corporation ("RTC"), in substitution for the outstanding options under RTC's
Amended and Restated 1990 Stock Plan and RTC's Equity Incentive Plan for Outside
Directors as required by the Merger Agreement.  The Adjusted Options are
intended to provide the current and former officers, directors and employees of
RTC and its subsidiaries with opportunities to purchase stock in the Company
pursuant to options granted hereunder which qualify as "incentive stock options"
under Section 422(b) of the Internal Revenue Code of 1986 (the "Code") ("ISO" or
"ISOs") and options granted hereunder which do not qualify as ISOs ("Non-
Qualified Option" or "Non-Qualified Options").  The Plan may also provide such
directors, officers, and employees with awards of stock in the Company
("Awards") and with opportunities to make direct purchases of stock in the
Company ("Purchases").  Both ISOs and Non-Qualified Options are referred to
hereinafter individually as an "Option" and collectively as "Options".  Options,
Awards and authorizations to make Purchases are referred to hereinafter
collectively as "Stock Rights".  As used herein, the terms "parent" and
"subsidiary" mean "parent corporation" and "subsidiary corporation,"
respectively, as those terms are defined in Section 425 of the Code.

     2.   Administration of the Plan.
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          A.  Board or Committee Administration.  The Plan shall be administered
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     by the Board of Directors of the Company (the "Board").  The Board may
     appoint a Stock Plan Committee (the "Committee") of two or more directors
     to administer the Plan. A director of the Company shall be eligible to
     serve on the Committee only if he or she qualifies as a "non-employee
     director" for purposes of Rule 16b-3 under the Securities Exchange Act of
     1934.  In addition, each member of the Committee shall be an "Outside
     director" within the meaning of Section 162(m) of the Code.  Hereinafter,
     all references in this Plan to the "Committee" shall mean the Board if no
     Committee has been appointed.  Subject to the terms of the Plan, the
     Committee shall have the authority to (i) determine the employees of the
     Company and  any present or future subsidiaries of the Company
     (collectively, "Related Corporations") (from among the class of employees
     eligible under paragraph 3 to receive ISOs) to whom ISOs may be granted,
     and to determine (from among the class of individuals and entities eligible
     under paragraph 3 to receive Non-Qualified Options and Awards and to make
     Purchases) to whom Non-Qualified Options, Awards and authorizations to make
     Purchases may be granted; (ii) determine the time or times at which Options
     or Awards may be granted or Purchases
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     made; (iii) determine the option price of shares subject to each Option,
     which price shall not be less than the minimum price specified in paragraph
     6, and the purchase price of shares subject to each Purchase; (iv)
     determine whether each Option granted shall be an ISO or a Non-Qualified
     Option; (v) determine (subject to paragraph 7) the time or times when each
     Option shall become exercisable and the duration of the exercise period;
     (vi) determine whether restrictions such as repurchase options are to be
     imposed on shares subject to Options, Awards and Purchases and the nature
     of such restrictions, if any; and (vii) interpret the Plan and prescribe
     and rescind rules and regulations relating to it. If the Committee
     determines to issue a Non-Qualified Option, it shall take whatever actions
     it deems necessary, under Section 422 of the Code and the regulations
     promulgated thereunder, to ensure that such Option is not treated as an
     ISO. The interpretation and construction by the Committee of any provisions
     of the Plan or of any Stock Right granted under it shall be final unless
     otherwise determined by the Board or except as may be specified in the
     instrument evidencing the grant of a stock right. The Committee may from
     time to time adopt such rules and regulations for carrying out the Plan as
     it may deem best. No member of the Board or the Committee shall be liable
     for any action or determination made in good faith with respect to the Plan
     or any Stock Right granted under it.

          B.  Committee Actions.  The Committee may select one of its members as
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     its chairman, and shall hold meetings at such time and places as it may
     determine.  Acts by a majority of the Committee, or acts reduced to or
     approved in writing by a majority of the members of the Committee, shall be
     the valid acts of the Committee.  From time to time the Board may increase
     the size of the Committee and appoint additional members thereof, remove
     members (with or without cause) and appoint new members in substitution
     therefor, fill vacancies however caused, or remove all members of the
     Committee and thereafter directly administer the Plan.

     3.   Eligible Employees and Others. ISOs may be granted to any employee of
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the Company or any Related Corporation.  Those officers and directors of the
Company who are not employees may not be granted ISOs under the Plan.  Non-
Qualified Options, Awards and authorizations to make Purchases may be granted to
any employee, officer or director (whether or not also an employee) or
consultant of the Company or any Related Corporation.  The Committee may take
into consideration a recipient's individual circumstances in determining whether
to grant an ISO, a Non-Qualified Option, an Award or an authorization to make a
Purchase.  Granting of any Stock Right to any individual or entity shall neither
entitle that individual or entity to, nor disqualify him from, participation in
any other grant of Stock Rights.

     4.   Stock.  The stock subject to Options, Awards and Purchases shall be
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authorized but unissued shares of Common Stock of the Company, par value $0.00l
per share (the "Common Stock"), or shares of Common Stock reacquired by the
Company in any manner. The aggregate number of shares which may be issued
pursuant to the Plan is 3,239,979, subject to adjustment as provided in
paragraph 13.  Moreover, for the period commencing on January 1,

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1994 until December 17, 1999, no employee shall be granted options for more than
500,000 shares pursuant to this Plan. Any such shares may be issued as ISOs,
Non-Qualified Options or Awards, or to persons or entities making Purchases, so
long as the number of shares so issued does not exceed such number, as adjusted.
If any Option granted under the Plan shall expire or terminate for any reason
without having been exercised in full or shall cease for any reason to be
exercisable in whole or in part, or if the Company shall reacquire any unvested
shares issued pursuant to Awards or Purchases, the unpurchased shares subject to
such Options and any unvested shares so reacquired by the Company shall again be
available for grants of Stock Rights under the Plan.

     5.   Granting of Stock Rights. Stock Rights may be granted under the Plan
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at any time on or after September 28, 1990 and prior to December 17, 1999.  The
date of grant of a Stock Right under the Plan will be the date specified by the
Committee at the time it grants the Stock Right; provided, however, that such
date shall not be prior to the date on which the Committee acts to approve the
grant.  The Committee shall have the right, with the consent of the optionee, to
convert an ISO granted under the Plan to a Non-Qualified Option pursuant to
paragraph 16.

     6.   Minimum Option Price; ISO Limitations.
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          A.  Price for Non-Qualified Options.  The exercise price per share
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     specified in the agreement relating to each Non-Qualified Option granted
     under the Plan shall in no event be less than the lesser of (i) the book
     value per share of Common Stock as of the end of the fiscal year of the
     Company immediately preceding the date of such grant, or (ii) fifty percent
     (50%) of the fair market value per share of Common Stock on the date of
     such grant.

          B.   Price for ISOs.  The exercise price per share specified in the
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     agreement relating to each ISO granted under the Plan shall not be less
     than the fair market value per share of Common Stock on the date of such
     grant.  In the case of an ISO to be granted to an employee owning stock
     possessing more than ten percent (10%) of the total combined voting power
     of all classes of stock of the Company or any Related Corporation, the
     price per share specified in the agreement relating to such ISO shall not
     be less than one hundred ten percent (110%) of the fair market value per
     share of Common Stock on the date of grant.

          C.  $100,000 Annual Limitation on ISOs.  Each eligible employee may be
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     granted ISOs only to the extent that, in the aggregate under this Plan and
     all incentive stock option plans of the Company and any Related
     Corporation, such ISOs do not become exercisable for the first time by such
     employee during any calendar year in a manner which would entitle the
     employee to purchase more than $100,000 in fair market value (determined at
     the time the ISOs were granted) of Common Stock in that year.  Any options
     granted to an employee in excess of such amount will be granted as Non-
     Qualified Options.

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          D.  Determination of Fair Market Value.  If, at the time an Option is
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     granted under the Plan, the Company's Common Stock is publicly traded,
     "fair market value" shall be determined on the date such Option is granted
     (or the first preceding business day for which the prices or quotes are
     available, if the date of grant is not a business day) and shall mean (i)
     the closing price (on that date) or the average of the high and low prices
     (on that date) of the Common Stock on the principal national securities
     exchange on which the Common Stock is traded, if the Common Stock is then
     traded on a national securities exchange; or (ii) the last reported sale
     price (on that date) of the Common Stock on the NASDAQ National Market
     List, if the Common Stock is not then traded on a national securities
     exchange; or (iii) the closing bid price (or average of bid prices) last
     quoted (on that date) by an established quotation service for over-the-
     counter securities, if the Common Stock is not reported on the NASDAQ
     National Market List.  However, if the Common Stock is not publicly traded
     at the time an Option is granted under the Plan, "fair market value" shall
     be deemed to be the fair value of the Common Stock as determined by the
     Committee after taking into consideration all factors which it deems
     appropriate, including, without limitation, recent sale and offer prices of
     the Common Stock in private transactions negotiated at arm's length.

     7.   Option Duration.  Subject to earlier termination as provided in
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paragraphs 9 and 10, each option shall expire on the date specified by the
Committee, but not more than (i) ten years and one day from the date of grant in
the case of Non-Qualified Options, (ii) ten years from the date of grant in the
case of ISOs generally, and (iii) five years from the date of grant in the case
of ISOs granted to an employee owning stock possessing more than ten percent
(10%) of the total combined voting power of all classes of stock of the Company
or any Related Corporation.  Subject to earlier termination as provided in
paragraphs 9 and 10, the term of each ISO shall be the term set forth in the
original instrument granting such ISO, except with respect to any part of such
ISO that is converted into a Non-Qualified Option pursuant to paragraph 16.

     8.   Exercise of Option.  Subject to the provisions of paragraphs 9 through
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12, each Option granted under the Plan shall be exercisable as follows:

          A.  Vesting.  The Option shall either be fully exercisable on the date
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     of grant or shall become exercisable thereafter in such installments as the
     Committee may specify.  The Committee may also establish certain
     conditions, including, without limitation, performance criteria with
     respect to the Company and/or the optionee, which must be satisfied before
     an option may be exercised.

          B.  Full Vesting of Installments.  Once an installment becomes
              ----------------------------
     exercisable it shall remain exercisable until expiration or termination of
     the Option, unless otherwise specified by the Committee.

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          C.  Partial Exercise.  Each Option or installment may be exercised at
              ----------------
     any time or from time to time, in whole or in part, for up to the total
     number of shares with respect to which it is then exercisable.

          D.  Acceleration of Vesting.  The Committee shall have the right to
              -----------------------
     accelerate the date of exercise of any installment of any option, upon such
     circumstances and subject to such terms and conditions as the Committee
     deems appropriate; provided that the Committee shall not, without the
     consent of an optionee, accelerate the exercise date of any installment of
     any option granted to any employee as an ISO (and not previously converted
     into a Non-Qualified Option pursuant to paragraph 16) if such acceleration
     would violate the annual vesting limitation contained in Section 422(d) of
     the Code, as described in paragraph 6(C).

     9.   Termination of Employment.  If an ISO optionee ceases to be employed
          -------------------------
by the Company and all Related Corporations other than by reason of death or
disability as defined in paragraph 10, no further installments of his ISOs shall
become exercisable, and his ISOs shall terminate after the passage of ninety
(90) days from the date of termination of his employment, but in no event later
than on their specified expiration dates, except to the extent that such ISOs
(or unexercised installments thereof) have been converted into Non-Qualified
Options pursuant to paragraph 16.  Employment shall be considered as continuing
uninterrupted during any bona fide leave of absence (such as those attributable
to illness, military obligations or governmental service) provided that the
period of such leave does not exceed 90 days or, if longer, any period during
which such optionee's right to reemployment is guaranteed by statute.  A bona
fide leave of absence with the written approval of the Committee shall not be
considered an interruption of employment under the Plan, provided that such
written approval contractually obligates the Company or any Related Corporation
to continue the employment of the optionee after the approved period of absence.
ISOs granted under the Plan shall not be affected by any change of employment
within or among the Company and Related Corporations, so long as the optionee
continues to be an employee of the Company or any Related Corporation.  Nothing
in the Plan shall be deemed to give any grantee of any Stock Right the right to
be retained in employment or other service by the Company or any Related
Corporation for any period of time.

     10.  Death; Disability.
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          A.  Death.  If an ISO optionee ceases to be employed by the Company
              -----
     and all Related Corporations by reason of his death, any ISO of his may be
     exercised, to the extent of the number of shares with respect to which he
     could have exercised it on the date of his death (or to such greater extent
     as may be specified in the instrument evidencing the grant of such ISO), by
     his estate, personal representative or beneficiary who has acquired the ISO
     by will or by the laws of descent and distribution, at any time prior to
     the earlier of the specified expiration date of the ISO or 180 days from
     the date of the optionee's death.

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          B.  Disability.  If an ISO optionee ceases to be employed by the
              ----------
     Company and all Related Corporations by reason of his disability, he shall
     have the right to exercise any ISO held by him on the date of termination
     of employment, to the extent of the number of shares with respect to which
     he could have exercised it on that date (or to such greater extent as may
     be specified in the instrument evidencing the grant of such ISO), at any
     time prior to the earlier of the specified expiration date of the ISO or
     180 days from the date of the termination of the optionee's employment.
     For the purposes of the Plan, the term "disability" shall mean "permanent
     and total disability" as defined in Section 22(e)(3) of the Code or
     successor statute.

     11.  Assignability.  No option or right to make Purchases shall be
          -------------
assignable or transferable by the optionee or grantee thereof except by will or
by the laws of descent and distribution, and during the lifetime of the optionee
or grantee, each Option or right to make Purchases shall be exercisable only by
him or his guardian.

     12.  Terms and Conditions of Options.  Options shall be evidenced by
          -------------------------------
instruments (which need not be identical) in such forms as the Committee may
from time to time approve. Such instruments shall conform to the terms and
conditions set forth in paragraphs 6 through 11 hereof and may contain such
other provisions as the Committee deems advisable which are not inconsistent
with the Plan, including restrictions applicable to shares of Common Stock
issuable upon exercise of Options.  In granting any Non-Qualified Option, the
Committee may specify that such Non-Qualified Option shall be subject to the
restrictions set forth herein with respect to ISOs, or to such other termination
and cancellation provisions as the Committee may determine.  The Committee may
from time to time confer authority and responsibility on one or more of its own
members and/or one or more officers of the Company to execute and deliver such
instruments.  The proper officers of the Company are authorized and directed to
take any and all action necessary or advisable from time to time to carry out
the terms of such instruments.

     13.  Adjustments.  Upon the occurrence of any of the following events, an
          -----------
optionee's rights with respect to Options granted to him hereunder shall be
adjusted as hereinafter provided, unless otherwise specifically provided in the
written agreement between the optionee and the Company relating to such Option:

          A.  Stock Dividends and Stock Splits.  If the shares of Common Stock
              --------------------------------
     shall be subdivided or combined into a greater or smaller number of shares
     or if the Company shall issue any shares of Common Stock as a stock
     dividend on its outstanding Common Stock, the number of shares of Common
     Stock deliverable upon the exercise of Options shall be appropriately
     increased or decreased proportionately, and appropriate adjustments shall
     be made in the purchase price per share to reflect such subdivision,
     combination or stock dividend.

          B.  Consolidations or Mergers. If the Company is to be consolidated
              -------------------------
     with or acquired by another entity in a merger, sale of all or
     substantially all of the Company's

                                       6
<PAGE>

     assets or otherwise (an "Acquisition"), the Committee or the board of
     directors of any entity assuming the obligations of the Company hereunder
     (the "Successor Board"), shall, as to outstanding Options, either (i) make
     appropriate provision for the continuation of such Options by substituting
     on an equitable basis for the shares then subject to such Options the
     consideration payable with respect to the outstanding shares of Common
     Stock in connection with the Acquisition; or (ii) upon written notice to
     the optionees, provide that all Options must be exercised, to the extent
     then exercisable (or to such greater extent as may be specified in the
     instrument evidencing the grant of the Option), within a specified number
     of days of the date of such notice, at the end of which period the Options
     shall terminate; or (iii) terminate all Options in exchange for a cash
     payment equal to the excess of the fair market value of the shares subject
     to such Options to the extent then exercisable (or to such greater extent
     as may be specified in the instrument evidencing the grant of the Option)
     over the exercise price thereof.

          C.  Recapitalization or Reorganization.  In the event of a
              ----------------------------------
     recapitalization or reorganization of the Company (other than a transaction
     described in subparagraph B above) pursuant to which securities of the
     Company or of another corporation are issued with respect to the
     outstanding shares of Common Stock, an optionee upon exercising an Option
     shall be entitled to receive for the purchase price paid upon such exercise
     the securities he would have received if he had exercised his Option prior
     to such recapitalization or reorganization.

          D.  Modification of ISOs.  Notwithstanding the foregoing, any
              --------------------
     adjustments made pursuant to subparagraphs A, B or C with respect to ISOs
     shall be made only after the Committee, after consulting with counsel for
     the Company, determines whether such adjustments would constitute a
     "modification" of such ISOs (as that term is defined in Section 425 of the
     Code) or would cause any adverse tax consequences for the holders of such
     ISOs.  If the Committee determines that such adjustments made with respect
     to ISOs would constitute a modification of such ISOs, it shall offer the
     holder of such ISOs the option to convert the ISOs into Non-Qualified
     Options as provided in paragraph 16 or refrain from making such
     adjustments.

          E.  Dissolution or Liquidation.  In the event of the proposed
              --------------------------
     dissolution or liquidation of the Company, each Option will terminate
     immediately prior to the consummation of such proposed action or at such
     other time and subject to such other conditions as shall be determined by
     the Committee.

          F.  Issuances of Securities.  Except as expressly provided herein, no
              -----------------------
     issuance by the Company of shares of stock of any class, or securities
     convertible into shares of stock of any class, shall affect, and no
     adjustment by reason thereof shall be made with respect to, the number or
     price of shares subject to Options.  No adjustments shall be made for
     dividends paid in cash or in property other than securities of the Company.

                                       7
<PAGE>

          G.  Fractional Shares.  No fractional shares shall be issued under the
              -----------------
     Plan and the optionee shall receive from the Company cash in lieu of such
     fractional shares.

          H.  Adjustments.  Upon the happening of any of the events described in
              -----------
     subparagraphs A, B or C above, the class and aggregate number of shares set
     forth in paragraph 4 hereof that are subject to Stock Rights which
     previously have been or subsequently may be granted under the Plan shall
     also be appropriately adjusted to reflect the events described in such
     subparagraphs.  The Committee or the Successor Board shall determine the
     specific adjustments to be made under this paragraph 13 and, subject to
     paragraph 2, its determination shall be conclusive.

     If any person or entity owning restricted Common Stock obtained by exercise
of a Stock Right made hereunder receives shares or securities or cash in
connection with a corporate transaction described in subparagraphs A, B or C
above as a result of owning such restricted Common Stock, such shares or
securities or cash shall be subject to all of the conditions and restrictions
applicable to the restricted Common Stock with respect to which such shares or
securities or cash were issued, unless otherwise determined by the Committee or
the Successor Board.

     14.  Means of Exercising Stock Rights.  A Stock Right (or any part or
          --------------------------------
installment thereof) shall be exercised by giving written notice to the Company
at its principal office address.  Such notice shall identify the Stock Right
being exercised and specify the number of shares as to which such Stock Right is
being exercised, accompanied by full payment of the purchase price therefor
either (a) in United States dollars in cash or by check, or (b) at the
discretion of the Committee, through delivery of shares of Common Stock having a
fair market value equal as of the date of the exercise to the cash exercise
price of the Stock Right, or (c) at the discretion of the Committee, by delivery
of the grantee's personal recourse note bearing interest payable not less than
annually at no less than 100% of the lowest applicable Federal rate, as defined
in Section 1274(d) of the Code, or (d) at the discretion of the Committee, by
any combination of (a), (b) and (c) above.  If the Committee exercises its
discretion to permit payment of the exercise price of an ISO by means of the
methods set forth in clauses (b), (c), or (d) of the preceding sentence, such
discretion shall be exercised in writing at the time of the grant of the ISO in
question.  The holder of a Stock Right shall not have the rights of a
shareholder with respect to the shares covered by his Stock Right until the date
of issuance of a stock certificate to him for such shares.  Except as expressly
provided above in paragraph 13 with respect to changes in capitalization and
stock dividends, no adjustment shall be made for dividends or similar rights for
which the record date is before the date such stock certificate is issued.

     15.  Term and Amendment of Plan.  This Plan was originally adopted by the
          --------------------------
Board and approved by the stockholders on September 28, 1990.  The Plan shall
expire at the end of the day on December 17, 1999 (except as to Options
outstanding on that date).  Subject to the provisions of paragraph 5 above,
Stock Rights may be granted under the Plan prior to the date of stockholder
approval of the Plan or any amendment thereto for which stockholder approval is

                                       8
<PAGE>

required under this paragraph 15.  The Board may terminate or amend the Plan in
any respect at any time, except that, without the approval of the stockholders
obtained within twelve months before or after the Board adopts a resolution
authorizing any of the following actions: (a) the total number of shares that
may be issued under the Plan may not be increased (except by adjustment pursuant
to paragraph 13); (b) the provisions of paragraph 3 regarding eligibility for
grants of IS0s may not be modified; (c) the provisions of paragraph 6(B)
regarding the exercise price at which shares may be offered pursuant to ISOs may
not be modified (except by adjustment pursuant to paragraph 13); (d) the
expiration date of the Plan may not be extended; (e) the benefits accruing to
participants under the Plan may not be materially increased; and (f) the
requirements as to eligibility for participation in the Plan may not be
materially modified.  In no event may action of the Board or stockholders alter
or impair the rights of a grantee, without his consent, under any Stock Right
previously granted to him.

     16.  Conversion of ISOs into Non-Qualified Options; Termination.  The
          ----------------------------------------------------------
Committee, at the written request of any optionee, may in its discretion take
such actions as may be necessary to convert such optionee's ISOs (or any
installments or portions of installments thereof) that have not been exercised
on the date of conversion into Non-Qualified Options at any time prior to the
expiration of such ISOs, regardless of whether the optionee is an employee of
the Company or a Related Corporation at the time of such conversion.  Such
actions may include, but not be limited to, extending the exercise period or
reducing the exercise price of the appropriate installments of such ISOs.  At
the time of such conversion, the Committee (with the consent of the optionee)
may impose such conditions on the exercise of the resulting Non-Qualified
Options as the Committee in its discretion may determine, provided that such
conditions shall not be inconsistent with this Plan.  Nothing in the Plan shall
be deemed to give any optionee the right to have such optionee's ISOs converted
into Non-Qualified Options, and no such conversion shall occur until and unless
the Committee takes appropriate action.  The Committee, with the consent of the
optionee, may also terminate any portion of any ISO that has not been exercised
at the time of such termination.

     17.  Application of Funds.  The proceeds received by the Company from the
          --------------------
sale of shares pursuant to Options granted and Purchases authorized under the
Plan shall be used for general corporate purposes.

     18.  Governmental Regulation.  The Company's obligation to sell and deliver
          -----------------------
shares of the Common Stock under this Plan is subject to the approval of any
governmental authority required in connection with the authorization, issuance
or sale of such shares.

     19.  Withholding of Additional Income Taxes.  Upon the exercise of a Non-
          --------------------------------------
Qualified Option, the grant of an Award, the making of a Purchase of Common
Stock for less than its fair market value, the making of a Disqualifying
Disposition (as defined in paragraph 20) or the vesting of restricted Common
Stock acquired on the exercise of a Stock Right hereunder, the Company, in
accordance with Section 3402(a) of the Code, may require the optionee, Award
recipient or purchaser to pay additional withholding taxes in respect of the
amount that is

                                       9
<PAGE>

considered compensation includible in such person's gross income. The Committee
in its discretion may condition (i) the exercise of an Option, (ii) the grant of
an Award, (iii) the making of a Purchase of Common Stock for less than its fair
market value, or (iv) the vesting of restricted Common Stock acquired by
exercising a Stock Right, on the grantee's payment of such additional
withholding taxes.

     20.  Notice to Company of Disqualifying Disposition.  Each employee who
          ----------------------------------------------
receives an ISO must agree to notify the Company in writing immediately after
the employee makes a Disqualifying Disposition of any Common Stock acquired
pursuant to the exercise of an ISO. A Disqualifying Disposition is any
disposition (including any sale) of such Common Stock before the later of (a)
two years after the date the employee was granted the ISO, or (b) one year after
the date the employee acquired Common Stock by exercising the ISO.  If the
employee has died before such stock is sold, these holding period requirements
do not apply and no Disqualifying Disposition can occur thereafter.

     21.  Governing Law; Construction.  The validity and construction of the
          ---------------------------
Plan and the instruments evidencing Stock Rights shall be governed by the laws
of the State of Delaware, or the laws of any jurisdiction in which the Company
or its successors in interest may be organized.  In construing this Plan, the
singular shall include the plural and the masculine gender shall include the
feminine and neuter, unless the context otherwise requires.

     22.  Compliance with Rule 16b-3.  The provisions of the Plan are intended
          --------------------------
to comply in all respects with the provisions of Rule 16b-3 under the Securities
Exchange Act of 1934 and any amendments thereto, and, if the Plan shall not so
comply, whether on the date of adoption or by reason of any later amendment to
or interpretation of Rule 16b-3, the provisions of the Plan shall be deemed to
be automatically amended so as to bring them into full compliance with such
rule.

                                       10

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