Document:

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                                                                    Exhibit 10.5

THIRD AMENDMENT TO LEASE

 AGREEMENT made as of the 28TH day of December, 2000, between INTERNATIONAL
BUSINESS MACHINES CORPORATION, a New York corporation, having its principal
office at New Orchard Road, Armonk, New York 10504 (hereinafter referred to as
"Landlord") and LEXMARK INTERNATIONAL, INC. a Delaware corporation, having an
office at 55 Railroad Avenue, P.O. Box 2868, Greenwich, Connecticut 06836
(hereinafter referred to as "Tenant"),

W I T N E S S E T H

 WHEREAS, the Landlord and the Tenant entered into an Amended and Restated Lease
dated January 1, 1991 as amended by Second Amendment dated January 1,
1994(hereinafter collectively called the "Lease"), covering space (the "Leased
Premises") in the building designated as Buildings 030/031 (hereinafter referred
to as the "Buildings") which Buildings are known by the name and street address
of 6300 Diagonal Highway, Buildings 030/031, situated on a plot of land located
in the City and County of Boulder, Colorado; and

 WHEREAS, the Tenant desires to extend the lease.

 NOW, THEREFORE, in consideration of the foregoing and for other good and
valuable consideration and of the mutual agreements hereinafter set forth, it is
hereby mutually agreed as follows:

1. The Tenant hereby exercises the Second Extended Term of the Lease with the
Landlord for a period of five (5) years commencing June 1, 2001 and expiring May
31, 2006.

2. (a) Section 3.02 of the Lease, entitled "Extended Term Rent", is hereby
amended to provide that the annual rent due under the Second Extended Term shall
remain the same as the First Extended Term for 200,464 net rentable square feet
at One million seven hundred twenty-five thousand Dollars ($1,725,000.00) for
the period from June 1, 2001 through March 31, 2003. The annual rent from April
1, 2003 through May 31, 2006 shall be increased from One million seven hundred
twenty-five thousand 00/100 Dollars ($1,725,000.00) to One million eight hundred
sixty-one thousand, one hundred eighty-four and 16/100 Dollars ($1,861,184.16),
and the monthly rent shall be increased from One hundred forty-three thousand,
seven hundred fifty 00/100 Dollars ($143,750.00) to One hundred fifty-five
thousand, ninety-eight 68/100 Dollars ($155,098.68).

(b) Effective April 1, 2003 through May 31, 2006 the annual rent for the 47,844
net rentable square foot addition shall be reduced from Seven hundred fifty-four
thousand, four hundred forty 00/100 Dollars ($754,440.00) to Three hundred ten
thousand, nine hundred eighty-six 00/100 Dollars ($310,986.00) and the monthly
rent shall be reduced from Sixty two thousand,

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eight hundred seventy 00/100 Dollars ($62,870.00) to Twenty five thousand, nine
hundred fifteen 50/100 Dollars ($25,915.50).

4. Except as herein modified, the Lease shall continue in full force and effect
without change.

IN WITNESS WHEREOF, this instrument has been executed by the duly authorized
representatives of the parties hereto as of the day and year first above
written.

      LANDLORD:

      INTERNATIONAL BUSINESS MACHINES
      CORPORATION

      By:    /s/ Jeff Miller
          ----------------------------------

      Title: Senior Program Manager
             -------------------------------

        TENANT:

      LEXMARK INTERNATIONAL, INC.

      By:    /s/ David L. Goodnight
          ----------------------------------

      Title: Vice President and Controller
             -------------------------------<PAGE>

                                                                   Exhibit 10.14

                              LEXMARK HOLDING, INC.
                      STOCK OPTION PLAN FOR SENIOR MANAGERS
                      -------------------------------------

                               Section 1. Purpose
                               ------------------

         The purpose of this Lexmark Holding, Inc. Stock Option Plan for
Managers is to foster and promote the long-term financial success of Holding and
the Company and to increase materially stockholder value by (a) motivating
superior performance by participants in the Plan, (b) providing participants in
the Plan with an ownership interest in Holding and (c) enabling the Company to
attract and retain the services of an outstanding management team upon whose
judgment, interest and special effort the successful conduct of its operations
is largely dependent.

                             Section 2. Definitions
                             ----------------------

         2.1. DEFINITIONS. Whenever used herein, the following terms shall have
the respective meanings set forth below:

         (a)      "Alternative Option" has the meaning given in Section 8.2.

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

         (c)      "C&D Fund" means the Clayton & Dubilier Private Equity Fund IV
                  Limited Partnership, a Connecticut limited partnership, and
                  any successor investment vehicle managed by Clayton &
                  Dubilier, Inc.

         (d)      "Cause" means (i) the willful failure by the Participant to
                  perform substantially his duties as an employee of the Company
                  or any Subsidiary (other than due to physical or mental
                  illness) after reasonable notice to the Participant of such
                  failure, (ii) the Participant's engaging in serious misconduct
                  that is injurious to Holding, the Company or any Subsidiary,
                  (iii) the Participant's having been convicted of, or entered a
                  plea of NOLO CONTENDERE to, a crime that constitutes a felony
                  or (iv) the breach by the Participant of any written convenant
                  or agreement with Holding, the Company or any Subsidiary not
                  to disclose any information pertaining to Holding, the Company
                  or any Subsidiary or not to compete or interfere with Holding,
                  the Company or any Subsidiary.

         (e)      "Change in Control" means the first to occur of the following
                  events after the Effective Date:

                           (i)      the acquisition by any person, entity or
                                    "group" (as defined in Section 13(d) of the
                                    Securities Exchange Act of 1934, as
                                    amended), other than Holding, the Company,
                                    the Subsidiaries, any employee benefit plan
                                    of Holding, the Company or the Subsidiaries,
                                    or the C&D Fund, of 50% or more of the
                                    combined voting power of Holding's or the
                                    Company's then outstanding voting
                                    securities;

                           (ii)     the merger or consolidation of Holding or
                                    the Company, as a result of which persons
                                    who were stockholders of Holding or the
                                    Company, as the case may be, immediately
                                    prior to such merger or consolidation, do
                                    not, immediately thereafter, own, directly
                                    or indirectly, more than 50% of the combined
                                    voting power entitled to vote generally in
                                    the election of directors of the merged or
                                    consolidated company;

                           (iii)    the liquidation or dissolution of Holding or
                                    the Company; and

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                           (iv)     the sale of all or substantially all of the
                                    assets of Holding or the Company to one or
                                    more persons or entities that are not,
                                    immediately prior to such sale, affiliates
                                    of Holding or the Company.

         (f)      "Change in Control Price" means the price per share of Common
                  Stock offered in conjunction with any transaction resulting in
                  a Change in Control (as determined in good faith by the Board
                  if any part of the offered price is payable other than in
                  cash).

         (g)      "Code" means the United States Internal Revenue Code of 1986,
                  as amended from time to time.

         (h)      "Committee" means the Compensation and Pension Committee of
                  the Board (or such other committee of the Board which shall
                  have jurisdiction over the compensation of officers). If at
                  any time no Committee shall be in office, the Board shall
                  perform the functions of the Committee.

         (i)      "Common Stock" means the Class A Common Stock, par value $.01
                  per share, of Holding.

         (j)      "Company" means Lexmark International, Inc., a Delaware
                  corporation, and any successor thereto.

         (k)      "Early Retirement" means a termination of employment by a
                  Participant before normal retirement age (as defined in the
                  retirement plan sponsored by Holding, the Company or any
                  Subsidiary, whichever employs such Participant).

         (l)      "Effective Date" means March 27, 1991.

         (m)      "Employee" means any employee of Holding, the Company or any
                  Subsidiary that is classified by such employer as a manager,
                  or any other employee of Holding, the Company or any
                  Subsidiary holding a similar position as the Committee may
                  designate.

         (n)      "Fair Market Value" means, as of any date, the fair market
                  value on such date per share of Common Stock as determined in
                  good faith by the Board (or, if the authority to make such
                  determination has been specifically delegated by the Board to
                  the Committee, the Committee).

         (o)      "Grant Date" means, with respect to any Option, the date on
                  which such Option is granted pursuant to the Plan.

         (p)      "Holding" means Lexmark Holding, Inc., a Delaware corporation,
                  and any successor thereto.

         (q)      "Incentive Stock Option" means any Option intended to be and
                  designated as an "Incentive Stock Option" within the meaning
                  of Section 422A of the Code.

         (r)      "Involuntary Termination" means a termination by the New
                  Employer for any reason.

         (s)      "New Employer" means the Participant's employer, or the parent
                  or a subsidiary of such employer, immediately following a
                  Change in Control.

         (t)      "Non-Qualified Stock Option" means any Option that is not an
                  Incentive Stock Option.

         (u)      "Option" means the right granted pursuant to the Plan to
                  purchase one share of Common Stock at a price determined in
                  accordance with Section 6.2.

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         (v)      "Option Agreement" means an agreement between the Company and
                  the Participant embodying the terms of any Options granted
                  hereunder.

         (w)      "Participant" means any Employee designated by the Committee
                  to participate in the Plan.

         (x)      "Permanent Disability" means a physical or mental disability
                  or infirmity of a Participant, as defined in any disability
                  plan sponsored by Holding, the Company or any Subsidiary,
                  whichever employs such Participant, or, if no such plan is
                  sponsored by Participant's employer, the Lexmark Long Term
                  Disability Plan.

         (y)      "Plan" means this Lexmark Holding, Inc. Stock Option Plan for
                  Senior Managers.

         (z)      "Public Offering" means the first day as of which sales of
                  Common Stock are made to the public in the United States
                  pursuant to an underwritten public offering of the Common
                  Stock.

         (aa)     "Retirement" means a Participant's retirement at or after
                  normal retirement age under the terms of the retirement plan
                  sponsored by Holding, the Company or any Subsidiary, whichever
                  employs such Participant.

         (bb)     "Special Registration" means the later of (i) the time at
                  which a registration statement under the Securities Act of
                  1933, as amended, covering any offer to sell and sales of
                  Common Stock issued upon exercise of Options granted pursuant
                  to the Plan, becomes effective and (ii) the third anniversary
                  of the Effective Date. Each of Holding and the Company shall
                  use commercially reasonable efforts to effect such Special
                  Registration as soon as audited historical statements required
                  to be included in such registration statement are available
                  for inclusion therein, but in any event not before the third
                  anniversary of the Effective Date.

         (cc)     "Special Termination" has the meaning given in Section 7.1.

         (dd)     "Subsidiary" means any corporation a majority of whose
                  outstanding voting securities is owned, directly or
                  indirectly, by the Company or Holding.

         2.2 GENDER AND NUMBER. Except when otherwise indicated by the context,
words in the masculine gender used in the Plan shall include the feminine
gender, the singular shall include the plural, and the plural shall include the
singular.

                    Section 3. Eligibility and Participation
                    ----------------------------------------

         Participants in the Plan shall be those Employees selected by the
Committee to participate in the Plan. The selection of an Employee as a
Participant shall neither entitle such Employee to nor disqualify such Employee
from participation in any other award or incentive plan.

                       Section 4. Powers of the Committee
                       ----------------------------------

         4.1. POWER TO GRANT. The Committee shall determine the Participants to
whom Options shall be granted and the terms and conditions of any and all
Options granted to Participants.

         4.2 ADMINISTRATION. The Committee shall be responsible for the
administration of the Plan. Any authority exercised by the Committee under the
Plan shall be exercised by the Committee under the Plan shall be exercised by
the Committee in its sole discretion. Subject to the terms of the Plan, the
Committee, by majority action thereof, is authorized to prescribe, amend and
rescind rules and regulations

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relating to the administration of the Plan, to provide for conditions and
assurances deemed necessary or advisable to protect the interests of Holding and
the Company, and to make all other determinations necessary or advisable for the
administration and interpretation of the Plan in order to carry out its
provisions and purposes. Determinations, interpretations or other actions made
or taken by the Committee pursuant to the provisions of the Plan shall be final,
binding and conclusive for all purposes and upon all persons.

                       Section 5. Options Subject to Plan
                       ----------------------------------

         5.1 NUMBER. Subject to the provisions of Sections 5.2 and 5.3, the
maximum number of Options (and the maximum number of shares of Common Stock
subject to Options) granted under the Plan may not exceed 235,000. The shares of
Common Stock to be delivered upon the exercise of Options granted under the Plan
may consist, in whole or in part, of treasury Common Stock or authorized but
unissued Common Stock, not reserved for any purpose.

         5.2 CANCELLED, TERMINATED, OR FORFEITED OPTIONS. Any Option which for
any reason is cancelled, terminated or otherwise forfeited, in whole or in part,
without having been exercised, shall again be available for grant under the
Plan.

         5.3 ADJUSTMENT IN CAPITALIZATION. The number and class of Options (and
the number of shares of Common Stock available for issuance upon exercise of
such Options) granted under the Plan, and the number, class and exercise price
of any outstanding Options (and the number of shares of Common Stock subject to
outstanding Options) may be adjusted by the Board, in its sole discretion, if it
shall deem such an adjustment to be necessary or appropriate to reflect any
Common Stock dividend, stock split or share combination or any recapitalization,
merger, consolidation, exchange of shares, liquidation or dissolution of
Holding.

                           Section 6. Terms of Options
                           ---------------------------

         6.1 GRANT OF OPTIONS. Options granted under the Plan may be of two
types: (a) Incentive Stock Options and (b) Non-Qualified Stock Options. Options
may be granted to Participants at such time or times as shall be determined by
the Committee. The Committee shall have complete discretion in determining the
number of Options, if any, and the type of Options to be granted to a
Participant. Without limiting the foregoing, it is anticipated that, prior to
the Special Registration, each Participant will be granted two Non-Qualified
Stock Options for each Incentive Stock Option granted to such Participant. It is
also anticipated that the exercise of any Non-Qualified options granted to a
Participant prior to the Special Registration shall be conditioned upon such
Participant's exercise of any Incentive Stock Options held by him within 90 days
after the Special Registration, and if such Participant fails to exercise such
Incentive Stock Options before the end of such 90-day period, such Incentive
Stock Options and (except as otherwise provided in Section 7.1) such
Non-Qualified Stock Options shall terminate and be cancelled as of the last day
of such 90-day period. Each Option granted to a Participant shall be evidenced
by an Option Agreement that shall specify the type of Option, the exercise price
at which a share of Common Stock may be purchased pursuant to such Option, the
duration of such Option and such other terms consistent with the Plan as the
Committee shall determine, including customary representations, warranties and
covenants with respect to securities law matters. Unless otherwise determined by
the Committee at the Grant Date, such Option Agreement shall also state that the
holder thereof is entitled to the benefits of and bound by the obligations set
forth in the Registration and Participation Agreement, dated as of March 27,
1991, among Holding and certain stockholders of Holding, to the extent set forth
therein.

         6.2 EXERCISE PRICE. The exercise price per share of Common Stock to be
purchased upon exercise of an Option shall be determined by the Committee but
shall not be less than the Fair Market Value on the Grant Date.

         6.3 EXERCISE OF OPTIONS. Unless otherwise determined by the Committee
at the Grant Date, 100% of any Incentive Stock Options granted to a Participant
prior to the Special Registration shall become immediately exercisable at the
time of the Special Registration and shall remain exercisable only for a

                                       4
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period of 90 days after the Special Registration. Unless otherwise determined by
the Committee at the Grant Date, 20% of any Non-Qualified Stock Options granted
to a Participant at any time, and 20% of any Incentive Stock Options granted to
a Participant on or after the Special Registration, shall become exercisable on
each of the first five anniversaries of the Grant Date of such Options, provided
that, notwithstanding any other provision of the Plan, no Options shall be
exercised prior to the Special Registration and (except as otherwise provided in
Section 7.1) no Non-Qualified Stock Options shall be exercisable unless any
corresponding Incentive Stock Options shall have been exercised as contemplated
by the fifth sentence of Section 6.1. Notwithstanding any other provision of the
Plan, each Option shall terminate and shall not be exercisable on or after the
tenth anniversary of the Grant Date of such Option.

         6.4 PAYMENT. The Committee shall establish procedures governing the
exercise of Options, which procedures shall generally require that written
notice of the exercise thereof be given and that the exercise price thereof be
paid in full in cash or cash equivalents, including by personal check, at the
time of exercise. If so determined by the Committee in its sole discretion at or
after the Grant Date, the exercise price of any Options exercised after there
has been a Public Offering may be paid in full or in part in the form of shares
of Common Stock already owned by the Participant, based on the Fair Market Value
of such Common Stock on the date of exercise (or at such other time as may be
determined by the Committee). As soon as practicable after receipt of a written
exercise notice on or after the Special Registration and payment in full of the
exercise price of any exercisable Options, Holding shall deliver to the
Participant a certificate or certificates representing the shares of Common
Stock acquired upon the exercise thereof.

         6.5 INCENTIVE STOCK OPTIONS. Anything in the Plan to the contrary
notwithstanding, no provision of this Plan relating to Incentive Stock Options
shall be interpreted, amended or altered, nor shall any discretion or authority
granted under the Plan be exercised, so as to disqualify the Plan under Section
422A of the Code or, without the consent of the Participants affected, to
disqualify any Incentive Stock Option under such Section 422A.

         6.6 CERTAIN SALES OF COMMON STOCK. To the extent permitted by
applicable law, and in the sole discretion of the Board, prior to the Special
Registration Holding may offer and sell shares of Common Stock to one or more
Participants employed and residing outside the United States with the
consideration for such shares to be paid in cash or by delivery of a promissory
note of the Participant purchasing such shares. Shares of Common Stock to be
sold to any such Participant in any such transaction are intended to be sold in
lieu of Incentive Stock Options that might otherwise have been granted to such
Participant hereunder, and it is anticipated that two Non-Qualified Stock
Options will be granted to each such Participant for each share of Common Stock
so purchased.

                      Section 7. Termination of Employment
                      ------------------------------------

         7.1 TERMINATION OF EMPLOYMENT PRIOR TO SPECIAL REGISTRATION.

         (a)      Special Termination. Unless otherwise determined by the
                  Committee at the Grant Date, in the event that a Participant's
                  employment with Holding, the Company and the Subsidiaries
                  terminates prior to the Special Registration by reason of such
                  Participant's death, Permanent Disability or Retirement (each
                  a "Special Termination"), (i) 100% of any Non-Qualified Stock
                  Options held by such Participant shall vest and become
                  exercisable at any time on or after the Special Registration
                  and (ii) any Incentive Stock Options held by such Participant
                  shall terminate and be cancelled immediately upon such
                  termination of employment.

         (b)      Other Termination of Employment. Unless otherwise determined
                  by the Committee at or after the Grant Date, in the event that
                  a Participant's employment with Holding, the Company and the
                  Subsidiaries is terminated prior to the Special Registration
                  for any reason other than a Special Termination, any Options
                  held by such Participant shall terminate and be cancelled
                  immediately upon such termination of employment.

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         7.2 TERMINATION OF EMPLOYMENT ON OR AFTER SPECIAL REGISTRATION.

         (a)      SPECIAL TERMINATION. Unless otherwise determined by the
                  Committee at the Grant Date, in the event that a Participant's
                  employment with Holding, the Company and the Subsidiaries
                  terminates on or after the Special Registration by reason of a
                  Special Termination, 100% of any Options then held by such
                  Participant shall become immediately exercisable, subject to
                  the fifth sentence of Section 6.1.

         (b)      TERMINATION FOR CAUSE. Unless otherwise determined by the
                  Committee at the Grant Date, in the event that a Participant's
                  employment with Holding, the Company or any Subsidiary is
                  terminated for Cause on or after the Special Registration, any
                  Options then held by such Participant shall terminate and be
                  cancelled immediately upon such termination of employment.

         (c)      OTHER TERMINATION OF EMPLOYMENT. Unless otherwise determined
                  by the Committee at or after the Grant Date, in the event that
                  a Participant's employment with Holding, the Company and the
                  Subsidiaries terminates on or after the Special Registration
                  for any reason other than (i) a Special Termination or (ii)
                  for Cause, any Options held by such Participant and then
                  exercisable shall remain exercisable (subject to the fifth
                  sentence of Section 6.1), but any other Options held by such
                  Participant shall terminate and be cancelled immediately upon
                  such termination of employment.

         7.3. CERTAIN RIGHTS UPON TERMINATION OF EMPLOYMENT PRIOR TO PUBLIC
OFFERING. Unless otherwise determined by the Committee at the Grant Date, the
Committee shall provide in each or any Option Agreement governing Options
granted hereunder that prior to the Public Offering (a) Holding or the Company
and the C&D Fund shall have successive rights to purchase any vested Options
from the Participant upon the termination of his employment, provided that if
such Participant's employment is terminated prior to the Special Registration,
such repurchase shall be delayed until the Special Registration, and (b) the
Participant may put his vested Options to Holding for purchase upon the
termination of the Participant's employment (i) due to a Special Termination
(but not upon the Early Retirement of such Participant) or (ii) by Holding, the
Company or any Subsidiary not for Cause, provided in each case that if such
Participant's employment is terminated prior to the Special Registration, such
put shall be delayed until the Special Registration. Any purchase or sale as
contemplated by the preceding sentence shall be for a purchase price per Option
equal to the excess, if any, of (x) the Fair Market Value on the date of
termination over (y) the exercise price per share of Common Stock pursuant to
such Option, and upon such other terms and conditions as may be set forth in the
Option Agreement. The foregoing right of a Participant to require Holding to
repurchase any exercisable Options shall be subject to the Company having the
ability to do so under the terms of its financing arrangements and Delaware law.

                          Section 8. Change in Control
                          ----------------------------

         8.1. ACCELERATED VESTING AND PAYMENT. Unless the Committee shall
otherwise determine in the manner set forth in Section 8.2, in the event of a
Change in Control, each Option shall be cancelled in exchange for a payment in
cash of an amount equal to the excess, if any, of the Change in Control Price
over the exercise price for such Option.

         8.2. ALTERNATIVE OPTIONS. Notwithstanding Section 8.1, no cancellation,
acceleration or exercisability, vesting or cash settlement or other payment
shall occur with respect to any Option if the Committee reasonably determines in
good faith, prior to the occurrence of a Change in Control, that such Option
shall be honored or assumed, or new rights substituted therefor (such honored,
assumed or substituted Option being hereinafter referred to as an "Alternative
Option") by the New Employer, provided that any such Alternative Option must:

                                       6
<PAGE>

         (a)      provide the Participant that held such Option with rights and
                  entitlements substantially equivalent to or better than the
                  rights, terms and conditions applicable under such Option,
                  including, but not limited to, an identical or better exercise
                  and vesting schedule, identical or better timing and methods
                  of payment and, if the Alternative Options or the securities
                  underlying them are not publicly traded identical or better
                  rights to put Options to Holding;

         (b)      have substantially equivalent economic value to such Option
                  (determined at the time of the Change in Control); and

         (c)      have terms and conditions which provide that in the event such
                  Participant suffers an Involuntary Termination within two
                  years following a Change in Control:

                           (i)      any conditions on such Participant's rights
                                    under, or any restrictions on transfer or
                                    exercisability applicable to, each such
                                    Alternative Option shall be waived or shall
                                    lapse, as the case may be; or

                           (ii)     such Participant shall have the right to
                                    surrender such Alternative Option within 30
                                    days following such termination in exchange
                                    for a payment in cash equal to the excess of
                                    the Fair Market Value of the Common Stock
                                    subject to the Alternative Option over the
                                    price, if any, that such Participant would
                                    be required to pay to exercise such
                                    Alternative Option.

         Section 9. Amendment, Modification, and Termination of the Plan
         ---------------------------------------------------------------

         The Board at any time may terminate or suspend the Plan, and from time
to time may amend or modify the Plan. No amendment, modification, termination or
suspension of the Plan shall in any manner adversely affect any Option
theretofore granted under the Plan, without the consent of the Participant
holding such Option. Shareholder approval of any such amendment, modification,
termination or suspension shall be obtained to the extent mandated by applicable
law, or if otherwise deemed appropriate by the Committee.

                      Section 10. Miscellaneous Provisions
                      ------------------------------------

         10.1 NONTRANSFERABILITY OF AWARDS. No Options granted under the Plan
may be sold, transferred, pledged, assigned, encumbered or otherwise alienated
or hypothecated, other than by will or by the laws of descent and distribution
and provided that the deceased Participant's beneficiary or the representative
of his estate acknowledges and agrees in writing, in a form reasonably
acceptable to Holding, to be bound by the provisions of the Plan (including the
purchase rights described in Section 7.3) and the Option Agreement covering such
Options as if such beneficiary or estate were the Participant. All rights with
respect to Options granted to a Participant under the Plan shall be exercisable
during his lifetime by such Participant only. Following a Participant's death,
all rights with respect to Options that were exercisable at the time of such
Participant's death and have not terminated shall be exercised by his designated
beneficiary or by his estate.

         10.2 BENEFICIARY DESIGNATION. Each Participant under the Plan may from
time to time name any beneficiary or beneficiaries (who may be named
contingently or successively) by whom any right under the Plan is to be
exercised in case of his death. Each designation will revoke all prior
designations by the same Participant, shall be in a form reasonably prescribed
by the Committee, and will be effective only when filed by the Participant in
writing with the Committee during his lifetime.

         10.3 NO GUARANTEE OF EMPLOYMENT OR PARTICIPATION. Nothing in the Plan
or in any Option Agreement shall interfere with or limit in any way the right of
Holding, the Company or any Subsidiary to

                                       7
<PAGE>

terminate any Participant's employment at any time, or confer upon any
Participant any right to continue in the employ of Holding, the Company or any
Subsidiary. No Employee shall have a right to be selected as a Participant or,
having been so selected, to receive any Options. No Employee shall have any
accrued or other rights in respect of the Plan, Options or the Common Stock
other than those rights explicitly granted under the Plan.

         10.4 TAX WITHHOLDING. The Company or any Subsidiary employing a
Participant shall have the power to withhold, or to require such Participant to
remit to the Company or such Subsidiary, subject to such other arrangements as
the Committee may set forth in the Option Agreement to which such Participant is
a party, an amount sufficient to satisfy all federal, state, local and foreign
withholding tax requirements in respect of any Option granted under the Plan.

         10.5 INDEMNIFICATION. Each person who is or shall have been a member of
the Committee or of the Board shall be indemnified and held harmless by the
Company and Holding to the fullest extent permitted by law from and against any
and all losses, costs, liabilities and expenses (including any related
attorneys' fees) in connection with, based upon or arising or resulting from any
claim, action, suit or proceeding to which he may be made a party or in which he
may be involved by reason of any action taken or failure to act under the Plan
and from and against any and all amounts paid by him in settlement thereof, with
the Company's approval, or paid by him in satisfaction of any judgment in any
such action, suit or proceeding against him, PROVIDED that he shall give the
Company an opportunity, at its own expense, to defend the same before he
undertakes to defend it on his own behalf. The foregoing right of
indemnification shall not be exclusive and shall be independent of any other
rights of indemnification to which such persons may be entitled under Holding's
or the Company's Certificate of Incorporation or By-laws, by contract, as a
matter of law, or otherwise.

         10.6 NO LIMITATION ON COMPENSATION. Nothing in the Plan shall be
construed to limit the right of Holding, the Company or any Subsidiary to
establish other plans or to pay compensation to its employees, in cash or
property, in a manner that is not expressly authorized under the Plan.

         10.7 REQUIREMENTS OF LAW. The granting of Options and the issuance of
shares of Common Stock pursuant to such Options, and any purchases or sales
pursuant to Section 7.3, shall be subject to all applicable laws, rules and
regulations, and to such approvals by any governmental agencies or national
securities exchanges as may be required. No Options shall be granted under the
Plan and no shares of Common Stock shall be issued upon exercise of any Options
granted under the Plan, and no Options shall be purchased or sold pursuant to
Section 7.3, (a) if such grant or exercise would result in a violation of
applicable law, including the federal securities laws and any applicable state
securities laws, or (b) unless an order shall have been issued by the Securities
and Exchange Commission pursuant to Section 12(h) of the Securities Exchange Act
of 1934, as amended, exempting Holding from the registration requirements of
Section 12(g) of such Act with respect to the Options.

         10.8 FREEDOM OF ACTION. Subject to Section 9, nothing in the Plan or
any Option Agreement shall be construed as limiting or preventing Holding, the
Company or any Subsidiary from taking any action that it deems appropriate or in
its best interest.

         10.9 TERM OF PLAN. The Plan shall be effective as of the Effective
Date. The Plan shall continue in effect, unless sooner terminated pursuant to
Section 9, until the tenth anniversary of the Effective Date. The provisions of
the Plan, however, shall continue thereafter to govern all outstanding Options
theretofore granted.

         10.10 CERTAIN MATERIAL INFORMATION. Holding will deliver to each
Participant that holds any Options, within a reasonable time prior to the time
that he terminates his employment with Holding, the Company and the
Subsidiaries, all information with respect to such Options that is material to
the decision whether to terminate employment, provided that Holding shall not be
required to deliver to any such Participant any confidential or non-public
information unless such Participant agrees to sign an appropriate
confidentiality agreement. Such information shall not be required to be
delivered at such times as Holding

                                       8
<PAGE>

is a reporting Company under the Securities Exchange Act of 1934, as amended, or
following the expiration of the order referred to in Section 10.7.

         10.11 NO VOTING RIGHTS. Except as otherwise required by law, no
Participant holding any Options granted under the Plan shall have any right, in
respect of such Options, to vote on any matters submitted to Holding's
stockholders until such time as the shares of Common Stock issuable upon
exercise of such Options have been so issued.

         10.12 GOVERNING LAW. The Plan, and all agreements hereunder, shall be
construed in accordance with and governed by the laws of the State of Delaware.

                                       9

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