Document:

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                                                                     EXHIBIT 4.5

                               APACHE CORPORATION

                      PILOT EXECUTIVE RESTRICTED STOCK PLAN

                Dated July 17, 2002, effective as of May 2, 2002

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                                TABLE OF CONTENTS

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<Caption>
                                                                                                       PAGE
                                                                                                       ----
<S>                                                                                                    <C>
Section 1 - Introduction.................................................................................1

         1.1      Establishment..........................................................................1
         1.2      Purposes...............................................................................1

Section 2 - Definitions..................................................................................1

         2.1      Definitions............................................................................1
         2.2      Headings; Gender and Number............................................................2

Section 3 - Plan Administration..........................................................................3

Section 4 - Stock Subject to the Plan....................................................................3

         4.1      Number of Shares.......................................................................3
         4.2      Other Shares of Stock..................................................................4
         4.3      Certain Adjustments....................................................................4

Section 5 - Reorganization or Liquidation................................................................4

Section 6 - Grant of Plan Units..........................................................................5

         6.1      Grants.................................................................................5
         6.2      Grant Agreements.......................................................................5

                  6.2.1    Grant Terms...................................................................5
                  6.2.2  Deferral of Vested Units........................................................5

         6.3      Termination of Employment, Death, Disability, etc......................................6
         6.4      Tax Withholding........................................................................7
         6.5      Stockholder Privileges.................................................................7

Section 7 - Change of Control............................................................................7

         7.1      General ...............................................................................7
         7.2      Limitation on Payments.................................................................7
         7.3      Definition.............................................................................8
</Table>

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<Table>
<S>                                                                                                     <C>
Section 8 - Rights of Employees, Participants............................................................8

         8.1      Employment.............................................................................8
         8.2      Non-transferability....................................................................8

Section 9 - Other Employee Benefits......................................................................9

Section 10 - Plan Amendment, Modification and Termination................................................9

Section 11 - Requirements of Law.........................................................................9

         11.1     Requirements of Law....................................................................9
         11.2     Section 16 Requirements...............................................................10
         11.3     Governing Law.........................................................................10

Section 12 - Duration of the Plan.......................................................................10
</Table>

                                       ii

<PAGE>

                               APACHE CORPORATION
                      PILOT EXECUTIVE RESTRICTED STOCK PLAN

                                    SECTION 1

                                  INTRODUCTION

1.1 Establishment. Apache Corporation, a Delaware corporation (hereinafter
referred to, together with its Affiliated Corporations (as defined below) as the
"Company" except where the context otherwise requires), hereby establishes the
Apache Corporation Pilot Executive Restricted Stock Plan (the "Plan"), effective
as of May 2, 2002.

1.2 Purposes. The primary purpose of the Plan is to focus the energies of the
Company's executive and regional officers on significantly increasing
shareholder wealth by increasing such officers' ownership of the Company's
equity. Additional purposes of the Plan include the retention of existing key
employees and as an additional inducement in the recruitment of talented
personnel in a competitive environment.

                                    SECTION 2

                                   DEFINITIONS

2.1 Definitions. The following terms shall have the meanings set forth below:

         "Affiliated Corporation" means any corporation or other entity
(including but not limited to a partnership) which is affiliated with Apache
Corporation through stock ownership or otherwise and is treated as a common
employer under the provisions of Sections 414(b) and (c) or any successor
section(s) of the Internal Revenue Code.

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

         "Committee" means the Stock Option Plan Committee of the Board or such
other committee of the Board that is empowered hereunder to administer the Plan.
The Committee shall be constituted at all times so as to permit the Plan to be
administered by "non-employee directors" (as defined in Rule 16b-3 of the
Securities Exchange Act of 1934, as amended).

                                       1

<PAGE>

         "Deferred Delivery Plan" means the Company's Deferred Delivery Plan, as
it has been or may be amended from time to time, or any successor plan.

         "Deferred Restricted Units" means investment units under the Deferred
Delivery Plan, each of which is deemed to be equivalent to one share of Stock.

         "Eligible Employees" means executive and regional officers of the
Company.

         "Fair Market Value" means the closing price of the Stock as reported on
The New York Stock Exchange, Inc. Composite Transactions Reporting System
("Composite Tape") for a particular date. If there are no Stock transactions on
such date, the Fair Market Value shall be determined as of the immediately
preceding date on which there were Stock transactions.

         "Grant" has the meaning set forth in Section 6 hereof.

         "Grant Agreement" has the meaning set forth in Section 6 hereof.

         "Grant Date" means for any Grant the date specified in the applicable
resolutions of the Committee

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

         "Participant" means an Eligible Employee designated by the Committee
from time to time during the term of the Plan to receive one or more Grants of
Plan Units under the Plan.

         "Plan Units" means investment units, each of which is deemed to be
equivalent to one share of Stock, convertible into a Deferred Stock Unit or a
share of Stock, as applicable, upon the vesting of a Grant.

         "Stock" means the $1.25 par value Common Stock of the Company.

2.2 Headings; Gender and Number. The headings contained in the Plan are for
reference purposes only and shall not affect in any way the meaning or
interpretation of the Plan. Except when otherwise indicated by the context, the
masculine gender shall also include the feminine gender, and the definition of
any term herein in the singular shall also include the plural.

                                       2

<PAGE>

                                    SECTION 3

                               PLAN ADMINISTRATION

The Plan shall be administered by the Committee. In accordance with the
provisions of the Plan, the Committee shall, in its sole discretion, adopt rules
and regulations for carrying out the purposes of the Plan, including, without
limitation, selecting the Participants from among the Eligible Employees
appointing designees or agents (who need not be members of the Committee or
employees of the Company) to assist the Committee with the administration of the
Plan, and establish such other terms and requirements as the Committee may deem
necessary or desirable and consistent with the terms of the Plan. The Committee
may correct any defect, supply any omission or reconcile any inconsistency in
the Plan, or in any Grant Agreement entered into hereunder, in the manner and to
the extent it shall deem expedient and the Committee shall be the sole and final
judge of such expediency. No member of the Committee shall be liable for any
action or determination made in good faith. The determinations, interpretations
and other actions of the Committee pursuant to the provisions of the Plan shall
be binding and conclusive for all purposes and on all persons.

                                    SECTION 4

                            STOCK SUBJECT TO THE PLAN

4.1 Number of Shares. Subject to Sections 4.3 and Section 6.1 hereof, up to two
hundred thousand (200,000) shares of Stock are authorized for issuance under the
Plan upon conversion of any Plan Units in accordance with the Plan's terms and
subject to such restrictions or other provisions as the Committee may from time
to time deem necessary. Shares of Stock which may be issued pursuant to the
conversion of any Plan Units or related Deferred Restricted Units awarded
hereunder shall be applied to reduce the maximum number of shares of Stock
remaining available for use under the Plan. The Company shall at all times
during the term of the Plan and while any Plan Units or related Deferred
Restricted Units are outstanding retain as authorized and unissued Stock and/or
Stock in the Company's treasury, at least the number of shares from time to time
required under the provisions of the Plan, or otherwise assure itself of its
ability to perform its obligations hereunder.

                                       3

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4.2 Other Shares of Stock. Any shares of Stock that are subject to issuance upon
conversion of a Plan Unit or related Deferred Restricted Unit which expires, is
forfeited, is cancelled, or for any reason is terminated, and any shares of
Stock that for any other reason are not issued to a Participant or are forfeited
shall automatically become available for use under the Plan.

4.3 Certain Adjustments. If the Company shall at any time increase or decrease
the number of its outstanding shares of Stock (other than by way of issuing
Stock in a public or private offering for cash or property) or change in any way
the rights and privileges of such shares by means of a dividend or any other
distribution upon such shares payable in Stock, or through a split, subdivision,
consolidation, combination, reclassification or recapitalization involving the
Stock or a subscription for shares of Stock that has the effect of diluting the
Company's capital (hereinafter a "capital restructuring"), then for purposes of
determining the entitlement to payments under Section 6, the number of shares of
Stock authorized for issuance under this Section 4, shall be equitably and
proportionally adjusted to take into account any capital restructuring. Any
adjustment under this Section shall be made by the Committee, whose
determination with regard thereto, including whether any adjustment is needed,
shall be final and binding upon all parties.

                                    SECTION 5

                          REORGANIZATION OR LIQUIDATION

In the event that the Company is merged or consolidated with another corporation
and the Company is not the surviving corporation, or if all or substantially all
of the assets or more than 20 percent of the outstanding voting stock of the
Company is acquired by any other corporation, business entity or person, or in
case of a reorganization (other than a reorganization under the United States
Bankruptcy Code) or liquidation of the Company, and if the provisions of Section
7 hereof do not apply, the Committee, or the board of directors of any
corporation assuming the obligations of the Company, shall, as to the Plan and
outstanding Plan Units either (i) make appropriate provision for the adoption
and continuation of the Plan by the acquiring or successor corporation and for
the protection of any holders of such outstanding Plan Units by the substitution
on an equitable basis of appropriate stock of the Company or of the merged,
consolidated or otherwise reorganized corporation which will be issuable with
respect to the Stock, provided that no additional benefits shall be conferred
upon the Participants holding such Plan Units as a result of such substitution,
or (ii) provide that all Plan Units shall become immediately vested and
convertible into shares of Stock.

                                       4

<PAGE>

                                    SECTION 6

                               GRANT OF PLAN UNITS

6.1 Grants. From time to time each Participant may be awarded one or more grants
(each, a "Grant") of Plan Units under this Plan by the Committee. Each Grant
shall be composed of a number of Plan Units as may be determined by the
Committee in its sole discretion. Each Grant awarded by the Committee shall be
evidenced by a written agreement entered into by the Company and the Participant
to whom the Grant is awarded (the "Grant Agreement"), which shall contain the
terms and conditions set out in this Section 6 (which may be modified in any
manner as the Committee shall determine in its sole discretion), as well as such
other terms and conditions as the Committee may consider appropriate.

6.2 Grant Agreements. Each Grant Agreement entered into by the Company and each
Participant shall contain at least the following terms and conditions. In the
event of any inconsistency between the provisions of the Plan and any Grant
Agreement, the provisions of the Plan shall govern.

         6.2.1 Grant Terms. Each Grant Agreement shall evidence the Grant of
Plan Units and conditionally entitle the Participant to receive the indicated
Plan Units which shall vest, subject to Section 6.2.2 below, based on the
following schedule:

                First Anniversary of the Grant Date         25%
                Second Anniversary of the Grant Date        25%
                Third Anniversary of the Grant Date         25%
                Fourth Anniversary of the Grant Date        25%

         6.2.2 Deferral of Vested Units. Upon vesting in accordance with Section
6.2.1 above, such Plan Units shall automatically convert into Deferred
Restricted Units and be deferred into the Deferred Delivery Plan. The
Participant shall have the right to make any elections with respect to such
Deferred Restricted Units as are permitted pursuant to the terms of the Deferred
Delivery Plan (including elections as to distributions from the Deferred
Delivery Plan); provided, however, that the initial deferral period for the
Deferred Restricted Units into which Plan Units convert shall be five (5) years.
A Participant shall also have the right with respect to any Deferred Restricted
Units into which Plan Units have converted to elect to (a) defer such Deferred
Restricted Units for one additional period of five (5) years or until the
Participant's termination of employment with the Company or (b) to receive
distributions pursuant to the Deferred Delivery Plan, provided, however, that
such election must be made at least one year prior to the

                                       5

<PAGE>

termination of any initial deferral period for such Deferred Restricted Units.
All deferral periods, including the initial five (5) year deferral period, shall
terminate on the termination of the Participants employment with the Company
regardless of the length of time provided for such deferral period.

6.3 Termination of Employment, Death, Disability, etc. Except as set forth
below, each Grant Agreement shall state that each Grant, the Plan Units received
thereunder and the right to receive any shares of Stock or Deferred Restricted
Units, thereunder upon vesting of the Plan Units shall be subject to the
condition that the Participant has remained an Eligible Employee from the
initial award of a Grant until the applicable vesting date as follows:

         (a) If the employment of the Participant is terminated by the Company
for cause, all Plan Units, vested and unvested, and any Deferred Restricted
Units into which vested Plan Units have been converted shall thereafter be void
and forfeited for all purposes.

         (b) If the Participant voluntarily leaves the employment of the
Company, or if the employment of the Participant is terminated by the Company
other than for cause, the Participant shall be entitled to receive the shares of
Stock issueable or Deferred Restricted Units credited to the Participant's
account in the Deferred Delivery Plan on account of vested Plan Units in
accordance with Section 5 or 6.2.2. Such Participant shall not be entitled to
any shares of Stock issueable or Deferred Restricted Units credited on account
of Plan Units that were not vested prior to the effective date of such
Participant's leaving the employment of the Company. If the Participant dies
before receiving all of the Stock or Deferred Restricted Units to which he or
she is entitled under this Section 6.3(b), such Stock or Deferred Restricted
Units shall be issued to those entitled under the Participant's will or by the
laws of descent and distribution.

         (c) If the Participant becomes disabled (as determined pursuant to the
Company's Long-Term Disability Plan or any successor plan), while still employed
by the Company, the Participant shall be entitled to receive the shares of Stock
issueable or Deferred Restricted Units credited to the Participant's account in
the Deferred Delivery Plan on account of vested Plan Units in accordance with
Section 5 or 6.2.2. Such Participant shall not be entitled to any shares of
Stock issueable or Deferred Restricted Units credited on account of Plan Units
that were not vested prior to the date such Participant's became disabled. If
the Participant dies before receiving all of the Stock or Deferred Restricted
Units to which he or she is entitled under this Section 6.3(c), such Stock or
Deferred Restricted Units shall be issued to those entitled under the
Participant's will or by the laws of descent and distribution.

                                       6

<PAGE>

         (d) If a Participant dies while still employed by the Company, all
unvested Plan Units shall automatically vest and convert into the right to
receive Stock, without conversion into Deferred Restricted Units and deferral
into the Deferred Delivery Plan, and the shares of Stock or Deferred Restricted
Units issueable for vested Plan Units (including those vested pursuant to this
Section 6.3(d)) will be issued in accordance with Section 5 or 6.2.2 and shall
be made to those entitled under the Participant's will or by the laws of descent
and distribution.

6.4 Tax Withholding. Each Grant Agreement shall provide that, upon issuance of
shares of Stock upon conversion of any Plan Units or related Deferred Restricted
Units, the Participant shall make appropriate arrangements with the Company to
provide for the amount of minimum tax withholding required by Sections 3102 and
3402 or any successor section(s) of the Internal Revenue Code and applicable
state and local income and other tax laws.

6.5 Stockholder Privileges. No Participant shall have any rights as a
stockholder with respect to any shares of Stock into which a Plan Unit is
convertible until the Participant becomes the holder of record of such Stock.

                                    SECTION 7

                                CHANGE OF CONTROL

7.1 In General. In the event of a change in control of the Company, as defined
in Section 7.3 hereof, all unvested Plan Units shall automatically vest and
convert into the right to receive Stock (issueable in one lump sum immediately
after such conversion), without conversion into Deferred Restricted Units and
deferral into the Deferred Delivery Plan, without further action by the
Committee or the Board.

7.2 Limitation on Payments. If the provisions of this Section 7 would result in
the receipt by any Participant of a payment within the meaning of Section 280G
or any successor section(s) of the Internal Revenue Code, and the regulations
promulgated thereunder, and if the receipt of such payment by any Participant
would, in the opinion of independent tax counsel of recognized standing selected
by the Company, result in the payment by such Participant of any excise tax
provided for in Sections 280G and 4999 or any successor section(s) of the
Internal Revenue Code, then the amount of such payment shall be reduced to the
extent required, in the opinion of independent tax counsel, to prevent the
imposition of such excise tax; provided, however, that the Committee, in its
sole discretion, may authorize the payment of all or any portion of the amount
of such reduction to the Participant.

                                       7

<PAGE>

7.3 Definition. For purposes of the Plan, a "change of control" shall mean any
of the events specified in the Company's Income Continuance Plan or any
successor plan which constitute a change of control within the meaning of such
plan.

                                    SECTION 8

                        RIGHTS OF EMPLOYEES, PARTICIPANTS

8.1 Employment. Neither anything contained in the Plan or any Grant Agreement
nor the granting of any Plan Units under the Plan shall confer upon any
Participant any right with respect to the continuation of his or her employment
by the Company or any Affiliated Corporation, or interfere in any way with the
right of the Company or any Affiliated Corporation, at any time to terminate
such employment or to increase or decrease the level of the Participant's
compensation from the level in existence at the time of the award of Plan Units.

8.2 Non-transferability. No right or interest of any Participant in a Plan Unit
granted pursuant to the Plan shall be assignable or transferable during the
lifetime of the Participant, either voluntarily or involuntarily, or subjected
to any lien, directly or indirectly, by operation of law, or otherwise,
including execution, levy, garnishment, attachment, pledge or bankruptcy. In the
event of a Participant's death, a Participant's rights and interests in any Plan
Unit shall, to the extent provided in Section 6.3 hereof, be transferable by
testamentary will or the laws of descent and distribution, and payment of any
entitlements due under the Plan shall be made to the Participant's legal
representatives, heirs or legatees. If, in the opinion of the Committee, a
person entitled to payments or to exercise rights with respect to the Plan is
disabled from caring for his or her affairs because of mental condition,
physical condition or age, payment due such person may be made to, and such
rights shall be exercised by, such person's guardian, conservator or other legal
personal representative upon furnishing the Committee with evidence satisfactory
to the Committee of such status.

                                       8

<PAGE>

                                    SECTION 9

                             OTHER EMPLOYEE BENEFITS

The amount of any income deemed to be received by a Participant as a result of
the payment upon conversion of a Plan Unit shall not constitute "earnings" or
"compensation" with respect to which any other employee benefits of such
Participant are determined, including without limitation benefits under any
pension, profit sharing, life insurance or salary continuation plan.

                                   SECTION 10

                  PLAN AMENDMENT, MODIFICATION AND TERMINATION

The Committee or the Board may at any time terminate and, from time to time, may
amend or modify the Plan. No amendment, modification or termination of the Plan
shall in any manner adversely affect any Plan Unit theretofore awarded under the
Plan, without the consent of the Participant holding such Plan Unit.

The Committee shall have the authority to adopt such modifications, procedures
and subplans as may be necessary or desirable to comply with the provisions of
the laws (including, but not limited to, tax laws and regulations) of countries
other than the United States in which the Company may operate, so as to assure
the viability of the benefits of the Plan to Participants employed in such
countries.

                                   SECTION 11

                               REQUIREMENTS OF LAW

11.1 Requirements of Law. The issuance of shares of Stock pursuant to the Plan
shall be subject to all applicable laws, rules and regulations, including
applicable federal and state securities laws. The Company may require a
Participant, as a condition of receiving payment upon conversion of a Plan Unit,
to give written assurances in substance and form satisfactory to the Company and
its counsel to such effect as the Company deems necessary or appropriate in
order to comply with federal and applicable state securities laws.

                                       9

<PAGE>

11.2 Section 16 Requirements. If a Participant is an officer or director of the
Company within the meaning of Section 16, Grants awarded hereunder shall be
subject to all conditions required under Rule 16b-3, or any successor rule(s)
promulgated under the Securities Exchange Act of 1934, as amended, to qualify
the Plan Units for any exemption from the provisions of Section 16 available
under such Rule. Such conditions are hereby incorporated herein by reference and
shall be set forth in the agreement with the Participant, which describes the
Grant.

11.3 Governing Law. The Plan and all Grant Agreements hereunder shall be
construed in accordance with and governed by the laws of the State of Texas.

                                   SECTION 12

                              DURATION OF THE PLAN

The Plan shall terminate at such time as may be determined by the Committee, and
no Plan Units shall be awarded after such termination. If not sooner terminated
under the preceding sentence, the Plan shall fully cease and expire at midnight
on May 1, 2012. Plan Units which remain outstanding at the time of the Plan
termination shall continue in accordance with the Grant Agreement pertaining to
such Plan Units.

Dated: July 17, 2002

                                                APACHE CORPORATION

ATTEST:

/s/ Cheri L. Peper                          By: /s/ Jeffrey M. Bender
-------------------------------                 -------------------------------
Cheri L. Peper                                  Jeffrey M. Bender
Corporate Secretary                             Vice President

                                       10<PAGE>
                                                                   EXHIBIT 10.01

                               2002 INCENTIVE PLAN
                                       OF
                         OCEANEERING INTERNATIONAL, INC.

         1. Plan. This 2002 Incentive Plan of Oceaneering International, Inc.
(the "Plan") was adopted by Oceaneering International, Inc. (the "Company") to
reward certain corporate officers and key employees of the Company and certain
independent consultants by enabling them to acquire shares of common stock of
the Company and/or through the provision of cash payments.

         2. Objectives. This Plan is designed to attract and retain key
employees of the Company and its Subsidiaries, to attract and retain qualified
directors of the Company, to attract and retain consultants and other
independent contractors, to encourage the sense of proprietorship of such
employees, directors and independent contractors and to stimulate the active
interest of such persons in the development and financial success of the Company
and its Subsidiaries. These objectives are to be accomplished by making Awards
under this Plan and thereby providing Participants with a proprietary interest
in the growth and performance of the Company and its Subsidiaries.

         3. Definitions. As used herein, the terms set forth below shall have
the following respective meanings:

         "Annual Director Award Date" means the first business day of the month
next succeeding the date upon which the annual meeting of stockholders of the
Company is held in such year.

         "Authorized Officer" means the Chairman of the Board or the Chief
Executive Officer of the Company (or any other senior officer of the Company to
whom either of them shall delegate the authority to execute any Award
Agreement).

         "Award" means the grant of any Option, SAR, Stock Award or Cash Award,
whether granted singly, in combination or in tandem, to a Participant pursuant
to such applicable terms, conditions and limitations as the Committee may
establish in order to fulfill the objectives of the Plan.

         "Award Agreement" means any written agreement between the Company and a
Participant setting forth the terms, conditions and limitations applicable to an
Award.

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

         "Cash Award" means an award denominated in cash.

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

         "Committee" means the Compensation Committee of the Board or such other
committee of the Board as is designated by the Board to administer the Plan.

                                       1
<PAGE>

         "Common Stock" means the Common Stock, par value $0.25 per share, of
the Company.

         "Company" means Oceaneering International, Inc., a Delaware
corporation.

         "Director" means an individual serving as a member of the Board.

         "Dividend Equivalents" means, with respect to shares of Restricted
Stock that are to be issued at the end of the Restriction Period, an amount
equal to all dividends and other distributions (or the economic equivalent
thereof) that are payable to stockholders of record during the Restriction
Period on a like number of shares of Common Stock.

         "Employee" means an employee of the Company or any of its Subsidiaries
and an individual who has agreed to become an employee of the Company or any of
its Subsidiaries and actually becomes such an employee within the following six
months.

         "Exchange Act" means the Securities Exchange Act of 1934, as amended
from time to time.

         "Fair Market Value" of a share of Common Stock means, as of a
particular date, (i) if shares of Common Stock are listed on a national
securities exchange, the mean between the highest and lowest sales price per
share of Common Stock on the consolidated transaction reporting system for the
principal national securities exchange on which shares of Common Stock are
listed on that date, or, if there shall have been no such sale so reported on
that date, on the last preceding date on which such a sale was so reported, or,
at the discretion of the Committee, the price prevailing on the exchange at the
time of exercise, (ii) if shares of Common Stock are not so listed but are
quoted on the Nasdaq National Market, the mean between the highest and lowest
sales price per share of Common Stock reported by the Nasdaq National Market on
that date, or, if there shall have been no such sale so reported on that date,
on the last preceding date on which such a sale was so reported, (iii) if the
Common Stock is not so listed or quoted, the mean between the closing bid and
asked price on that date, or, if there are no quotations available for such
date, on the last preceding date on which such quotations shall be available, as
reported by the Nasdaq Stock Market, or, if not reported by the Nasdaq Stock
Market, by the National Quotation Bureau Incorporated or (iv) if shares of
Common Stock are not publicly traded, the most recent value determined by an
independent appraiser appointed by the Company for such purpose.

         "Incentive Option" means an Option that is intended to comply with the
requirements set forth in Section 422 of the Code.

         "Independent Contractor" means a person providing services to the
Company or any of its Subsidiaries, except an Employee or Nonemployee Director,
who is eligible to receive such Awards as could be made to an Employee, other
than Incentive Options.

         "Option" means a right to purchase a specified number of shares of
Common Stock at a specified price.

         "Nonqualified Option" means an Option that is not intended to comply
with the requirements set forth in Section 422 of the Code.

                                       2
<PAGE>

         "Participant" means an Employee, Director or Independent Contractor to
whom an Award has been made under this Plan.

         "Performance Award" means an award made pursuant to this Plan to a
Participant who is an Employee or Independent Contractor, which Award is subject
to the attainment of one or more Performance Goals.

         "Performance Goal" means a standard established by the Committee, to
determine in whole or in part whether a Performance Award shall be earned.

         "Restricted Stock" means any Common Stock that is restricted or subject
to forfeiture provisions.

         "Restriction Period" means a period of time beginning as of the date
upon which an Award of Restricted Stock is made pursuant to this Plan and ending
as of the date upon which the Common Stock subject to such Award is no longer
restricted or subject to forfeiture provisions.

         "SAR" means a right to receive a payment, in cash or Common Stock,
equal to the excess of the Fair Market Value or other specified valuation of a
specified number of shares of Common Stock on the date the right is exercised
over a specified strike price, in each case, as determined by the Committee.

         "Stock Award" means an award in the form of shares of Common Stock or
units denominated in shares of Common Stock.

         "Subsidiary" means (i) in the case of a corporation, any corporation of
which the Company directly or indirectly owns shares representing more than 50%
of the combined voting power of the shares of all classes or series of capital
stock of such corporation which have the right to vote generally on matters
submitted to a vote of the stockholders of such corporation and (ii) in the case
of a partnership or other business entity not organized as a corporation, any
such business entity of which the Company directly or indirectly owns more than
50% of the voting, capital or profits interests (whether in the form of
partnership interests, membership interests or otherwise).

         4. Eligibility.

         (a) Employees. Key Employees eligible for Awards under this Plan are
         those who hold positions of responsibility and whose performance, in
         the judgment of the Committee, can have a significant effect on the
         success of the Company and its Subsidiaries.

         (b) Directors. Directors eligible for Director Awards under this Plan
         are those who are not employees of the Company or any of its
         Subsidiaries ("Nonemployee Directors").

                                       3
<PAGE>

         (c) Independent Contractors. Independent Contractors eligible for
         Awards under this Plan are those Independent Contractors providing
         services to, or who will provide services to, the Company or any of its
         Subsidiaries.

         5. Common Stock Available for Awards. Subject to the provisions of
paragraph 15 hereof, there shall be available for Awards under this Plan granted
wholly or partly in Common Stock (including rights or options that may be
exercised for or settled in Common Stock) an aggregate of 1,325,000 shares of
Common Stock. No more than 975,000 shares of Common Stock shall be available
under this Plan for Incentive Options. No more than 350,000 shares of Common
Stock shall be available under this Plan for Awards other than Options or SARs.
Shares of Common Stock awarded pursuant to the 1996 Incentive Plan, the 1999
Incentive Plan or the 2000 Non-Executive Incentive Plan (the "Prior Plans")
which are cancelled, terminated, forfeited, expire unexercised, are settled in
cash in lieu of Common Stock, or are exchanged for a consideration that does not
involve Common Stock will immediately become available for Awards under this
Plan. Effective as of March 28, 2002, no further awards shall be made under the
Prior Plans. Additionally, the number of shares of Common Stock that are the
subject of Awards under this Plan, that are forfeited or terminated, expire
unexercised, are settled in cash in lieu of Common Stock or in a manner such
that all or some of the shares covered by an Award are not issued to a
Participant or are exchanged for Awards that do not involve Common Stock, shall
again immediately become available for Awards hereunder. The Committee may from
time to time adopt and observe such procedures concerning the counting of shares
against the Plan maximum as it may deem appropriate. The Board and the
appropriate officers of the Company shall from time to time take whatever
actions are necessary to file any required documents with governmental
authorities, stock exchanges and transaction reporting systems to ensure that
shares of Common Stock are available for issuance pursuant to Awards . 6.
Administration.

         6. Administration.

         (a) Authority of the Committee. This Plan shall be administered by the
         Committee. Subject to the provisions hereof, the Committee shall have
         full and exclusive power and authority to administer this Plan and to
         take all actions that are specifically contemplated hereby or are
         necessary or appropriate in connection with the administration hereof.
         The Committee shall also have full and exclusive power to interpret
         this Plan and to adopt such rules, regulations and guidelines for
         carrying out this Plan as it may deem necessary or proper, all of which
         powers shall be exercised in the best interests of the Company and in
         keeping with the objectives of this Plan. Subject to paragraph 6(c)
         hereof, the Committee may, in its discretion, provide for the extension
         of the exercisability of an Award, accelerate the vesting or
         exercisability of an Award, eliminate or make less restrictive any
         restrictions contained in an Award, waive any restriction or other
         provision of this Plan or an Award or otherwise amend or modify an
         Award in any manner that is (i) not adverse to the Participant to whom
         such Award was granted, (ii) consented to by such Participant or (iii)
         authorized by paragraph 15(c) hereof; provided, however, that no such
         action shall permit the term of any Option to be greater than five
         years from the applicable grant date. The Committee may make an Award
         to an individual who it expects to become an employee of the Company or
         any of its Subsidiaries within the

                                       4
<PAGE>

         next six months, with such Award being subject to the individual's
         actually becoming an employee within such time period, and subject to
         such other terms and conditions as may be established by the Committee.
         The Committee may correct any defect or supply any omission or
         reconcile any inconsistency in this Plan or in any Award in the manner
         and to the extent the Committee deems necessary or desirable to further
         the Plan purposes. Any decision of the Committee in the interpretation
         and administration of this Plan shall lie within its sole and absolute
         discretion and shall be final, conclusive and binding on all parties
         concerned.

         (b) Indemnity. No member of the Committee or officer of the Company to
         whom the Committee has delegated authority in accordance with the
         provisions of paragraph 7 of this Plan shall be liable for anything
         done or omitted to be done by him or her, by any member of the
         Committee or by any officer of the Company in connection with the
         performance of any duties under this Plan, except for his or her own
         willful misconduct or as expressly provided by statute.

         (c) Prohibition on Repricing of Awards. No Award may be repriced,
         replaced, regranted through cancellation or modified without
         shareholder approval (except in connection with a change in the
         Company's capitalization), if the effect would be to reduce the
         exercise price for the shares underlying such Award.

         7. Delegation of Authority. The Committee may delegate to the Chief
Executive Officer and to other senior officers of the Company its duties under
this Plan pursuant to such conditions or limitations as the Committee may
establish.

         8. Awards. (a) Except as otherwise provided in paragraph 9 hereof
pertaining to Awards to Directors, the Committee shall determine the type or
types of Awards to be made under this Plan and shall designate from time to time
the Participants who are to be the recipients of such Awards. Each Award may be
embodied in an Award Agreement, which shall contain such terms, conditions and
limitations as shall be determined by the Committee in its sole discretion and
shall be signed by the Participant to whom the Award is made and by an
Authorized Officer for and on behalf of the Company. Awards may consist of those
listed in this paragraph 8(a) hereof and may be granted singly, in combination
or in tandem. Awards may also be made in combination or in tandem with, in
replacement of, or as alternatives to, grants or rights under this Plan or any
other plan of the Company or any of its Subsidiaries, including the plan of any
acquired entity; provided that, except as contemplated in paragraph 15 hereof,
no Option may be issued in exchange for the cancellation of an Option with a
higher exercise price nor may the exercise price of any Option be reduced. All
or part of an Award may be subject to conditions established by the Committee,
which may include, but are not limited to, continuous service with the Company
and its Subsidiaries, achievement of specific business objectives, increases in
specified indices, attainment of specified growth rates and other comparable
measurements of performance. Upon the termination of employment by a Participant
who is an Employee, any unexercised, deferred, unvested or unpaid Awards shall
be treated as set forth in the applicable Award Agreement.

                                       5
<PAGE>

                  (i) Option. An Award may be in the form of an Option. An
         Option awarded pursuant to this Plan may consist of an Incentive Option
         or a Nonqualified Option. The price at which shares of Common Stock may
         be purchased upon the exercise of an Option shall be not less than the
         Fair Market Value of the Common Stock on the date of grant. The term of
         an Option shall not exceed five years from the date of grant. Subject
         to the foregoing provisions, the terms, conditions and limitations
         applicable to any Options awarded pursuant to this Plan, including the
         term of any Options and the date or dates upon which they become
         exercisable, shall be determined by the Committee.

                  (ii) Stock Appreciation Right. An Award may be in the form of
         a SAR. The strike price for a SAR shall not be less than the Fair
         Market Value of the Common Stock on the date on which the SAR is
         granted. The term of a SAR shall not exceed five years from the date of
         grant. Subject to the foregoing limitations, the terms, conditions and
         limitations applicable to any SARs awarded pursuant to this Plan,
         including the term of any SARs and the date or dates upon which they
         become exercisable, shall be determined by the Committee.

                  (iii) Stock Award. An Award may be in the form of a Stock
         Award. The terms, conditions and limitations applicable to any Stock
         Awards granted pursuant to this Plan shall be determined by the
         Committee.

                  (iv) Cash Award. An Award may be in the form of a Cash Award.
         The terms, conditions and limitations applicable to any Cash Awards
         granted pursuant to this Plan shall be determined by the Committee.

                  (v) Performance Award. Without limiting the type or number of
         Awards that may be made under the other provisions of this Plan, an
         Award may be in the form of a Performance Award. A Performance Award
         shall be paid, vested or otherwise deliverable solely on account of the
         attainment of one or more pre-established, objective Performance Goals
         established by the Committee prior to the earlier to occur of (x) 90
         days after the commencement of the period of service to which the
         Performance Goal relates and (y) the lapse of 25% of the period of
         service (as scheduled in good faith at the time the goal is
         established), and in any event while the outcome is substantially
         uncertain. A Performance Goal is objective if a third party having
         knowledge of the relevant facts could determine whether the goal is
         met. Such a Performance Goal may be based on one or more business
         criteria that apply to the individual, one or more business units of
         the Company, or the Company as a whole, and may include one or more of
         the following: revenues, income from operations, net income, stock
         price, market share, earnings per share, return on equity, assets or
         invested capital, economic value added, market value added, decrease in
         costs or achievement of balance sheet, income statement or cash flow
         objectives. Unless otherwise stated, such a Performance Goal need not
         be based upon an increase or positive result under a particular
         business criterion and could include, for example, maintaining the
         status quo or limiting economic losses (measured, in each case, by
         reference to specific business criteria). In interpreting Plan
         provisions applicable to Performance Goals and Performance Awards, it
         is the intent of the Plan to conform with the standards of Section
         162(m) of the Code and Treasury

                                       6
<PAGE>

         Regulation Section 1.162-27(e)(2)(i), and the Committee in establishing
         such goals and interpreting the Plan shall be guided by such
         provisions. Prior to the payment of any compensation based on the
         achievement of Performance Goals, the Committee must certify in writing
         that applicable Performance Goals and any of the material terms thereof
         were, in fact, satisfied. Subject to the foregoing provisions, the
         terms, conditions and limitations applicable to any Performance Awards
         made pursuant to this Plan shall be determined by the Committee.

                  (b) Notwithstanding anything to the contrary contained in this
         Plan, the following limitations shall apply to any Awards made
         hereunder:

                           (i) no Participant may be granted, during any
                  one-year period, Awards consisting of Options or SARs that are
                  exercisable for more than 300,000 shares of Common Stock;

                           (ii) no Participant may be granted, during any
                  one-year period, Stock Awards covering or relating to more
                  than 300,000 shares of Common Stock (the limitation set forth
                  in this clause (ii), together with the limitation set forth in
                  clause (i) above, being hereinafter collectively referred to
                  as the "Stock Based Awards Limitations"); and

                           (iii) no Participant may be granted Awards consisting
                  of cash or in any other form permitted under this Plan (other
                  than Awards consisting of Options or SARs or otherwise
                  consisting of shares of Common Stock or units denominated in
                  such shares) in respect of any one-year period having a value
                  determined on the date of grant in excess of $3,000,000.

                  (c) The Committee shall have the sole responsibility and
         authority to determine the type or types of Awards to an Independent
         Contractor to be made under this Plan and may make any such Awards as
         could be made to an Employee, other than Incentive Options; provided
         that the limitations described in paragraph 8(b) hereof shall be
         inapplicable to Awards to an Independent Contractor.

         9. Awards to Directors. Each Nonemployee Director of the Company shall
be granted Director Awards in accordance with this paragraph 9 and subject to
the applicable terms, conditions and limitations set forth in this Plan and the
applicable Award Agreement. Notwithstanding anything to the contrary contained
herein, Awards to Directors shall not be made in any year in which a sufficient
number of shares of Common Stock are not available to make such Awards under
this Plan.

                  On or after the effective date of his or her first appointment
or election to the Board of Directors, a Nonemployee Director shall
automatically be granted an Option that provides for the purchase of 10,000
shares of Common Stock. In addition, on each Annual Director Award Date, each
Nonemployee Director shall automatically be granted an Option that provides for
the purchase of 10,000 shares of Common Stock. Each Option granted to a Director
shall have a term of five years from the date of grant, notwithstanding any
earlier termination of

                                       7
<PAGE>

the status of the holder as a Nonemployee Director. The purchase price of each
share of Common Stock subject to an Option granted to a Director shall be equal
to the Fair Market Value of the Common Stock on the date of grant. No Option
granted to a Director may be issued in exchange for the cancellation of an
Option with a higher exercise price, nor may the exercise price of any Option
granted to a Director be reduced. All Options granted to a Director shall become
fully exercisable six months following the date of grant. All Options granted to
a Director that have not previously become exercisable shall be forfeited if the
Nonemployee Director resigns as a Director without the consent of a majority of
the other Directors.

                  Any Award of Options granted to a Director shall be embodied
in an Award Agreement, which shall contain the terms, conditions and limitations
set forth above and shall be signed by the Participant to whom the Options are
granted and by an Authorized Officer for and on behalf of the Company.

         10. Award Payment; Dividends; Substitution.

         (a) General. Payment of Awards may be made in the form of cash or
         Common Stock, or a combination thereof, and may include such
         restrictions as the Committee shall determine, including, in the case
         of Common Stock, restrictions on transfer and forfeiture provisions. If
         payment of an Award is made in the form of Restricted Stock, the
         applicable Award Agreement relating to such shares shall specify
         whether they are to be issued at the beginning or end of the
         Restriction Period. In the event that shares of Restricted Stock are to
         be issued at the beginning of the Restriction Period, the certificates
         evidencing such shares (to the extent that such shares are so
         evidenced) shall contain appropriate legends and restrictions that
         describe the terms and conditions of the restrictions applicable
         thereto. In the event that shares of Restricted Stock are to be issued
         at the end of the Restricted Period, the right to receive such shares
         shall be evidenced by book entry registration or in such other manner
         as the Committee may determine.

         (b) Deferral. With the approval of the Committee, amounts payable in
         respect of Awards may be deferred and paid either in the form of
         installments or as a lump-sum payment. The Committee may permit
         selected Participants to elect to defer payments of some or all types
         of Awards in accordance with procedures established by the Committee.
         Any deferred payment of an Award, whether elected by the Participant or
         specified by the Award Agreement or by the Committee, may be forfeited
         if and to the extent that the Award Agreement so provides.

         (c) Dividends and Interest. Rights to dividends or Dividend Equivalents
         may be extended to and made part of any Award consisting of shares of
         Common Stock or units denominated in shares of Common Stock, subject to
         such terms, conditions and restrictions as the Committee may establish.
         The Committee may also establish rules and procedures for the crediting
         of interest on deferred cash payments and Dividend Equivalents for
         Awards consisting of shares of Common Stock or units denominated in
         shares of Common Stock.

                                       8
<PAGE>

         11. Stock Option Exercise. The price at which shares of Common Stock
may be purchased under an Option shall be paid in full at the time of exercise
in cash or, if elected by the Participant, the Participant may purchase such
shares by means of tendering Common Stock or surrendering another Award,
including Restricted Stock, valued at Fair Market Value on the date of exercise,
or any combination thereof. The Committee shall determine acceptable methods for
Participants to tender Common Stock or other Awards; provided that any Common
Stock that is or was the subject of an Award may be so tendered only if it has
been held by the Participant for six months. The Committee may provide for
procedures to permit the exercise or purchase of such Awards by use of the
proceeds to be received from the sale of Common Stock issuable pursuant to an
Award. Unless otherwise provided in the applicable Award Agreement, in the event
shares of Restricted Stock are tendered as consideration for the exercise of an
Option, a number of the shares issued upon the exercise of the Option, equal to
the number of shares of Restricted Stock used as consideration therefor, shall
be subject to the same restrictions as the Restricted Stock so submitted as well
as any additional restrictions that may be imposed by the Committee.

         12. Taxes. The Company shall have the right to deduct applicable taxes
from any Award payment and withhold, at the time of delivery or vesting of cash
or shares of Common Stock under this Plan, an appropriate amount of cash or
number of shares of Common Stock or a combination thereof for payment of taxes
required by law or to take such other action as may be necessary in the opinion
of the Company to satisfy all obligations for withholding of such taxes. The
Committee may also permit withholding to be satisfied by the transfer to the
Company of shares of Common Stock theretofore owned by the holder of the Award
with respect to which withholding is required. If shares of Common Stock are
used to satisfy tax withholding, such shares shall be valued based on the Fair
Market Value when the tax withholding is required to be made. The Committee may
provide for loans, on either a short-term or demand basis, from the Company to a
Participant to permit the payment of taxes required by law.

         13. Amendment, Modification, Suspension or Termination. The Board may
amend, modify, suspend or terminate this Plan for the purpose of meeting or
addressing any changes in legal requirements or for any other purpose permitted
by law, except that (i) no amendment or alteration that would adversely affect
the rights of any Participant under any Award previously granted to such
Participant shall be made without the consent of such Participant and (ii) no
amendment or alteration shall be effective prior to its approval by the
stockholders of the Company to the extent stockholder approval is otherwise
required by applicable legal requirements.

         14. Assignability. Unless otherwise determined by the Committee and
provided in the Award Agreement, no Award or any other benefit under this Plan
shall be assignable or otherwise transferable. Any attempted assignment of an
Award or any other benefit under this Plan in violation of this paragraph 14
shall be null and void.

                                       9
<PAGE>

         15. Adjustments.

         (a) The existence of outstanding Awards shall not affect in any manner
         the right or power of the Company or its stockholders to make or
         authorize any or all adjustments, recapitalizations, reorganizations or
         other changes in the capital stock of the Company or its business or
         any merger or consolidation of the Company, or any issue of bonds,
         debentures, preferred or prior preference stock (whether or not such
         issue is prior to, on a parity with or junior to the Common Stock) or
         the dissolution or liquidation of the Company, or any sale or transfer
         of all or any part of its assets or business, or any other corporate
         act or proceeding of any kind, whether or not of a character similar to
         that of the acts or proceedings enumerated above.

         (b) In the event of any subdivision or consolidation of outstanding
         shares of Common Stock, declaration of a dividend payable in shares of
         Common Stock or other stock split, then (i) the number of shares of
         Common Stock reserved under this Plan, (ii) the number of shares of
         Common Stock covered by outstanding Awards in the form of Common Stock
         or units denominated in Common Stock, (iii) the exercise or other price
         in respect of such Awards, (iv) the Stock Based Award Limitations
         described in paragraph 8(b) hereof, (v) the number of shares of Common
         Stock covered by Awards to Directors automatically granted pursuant to
         paragraph 9 hereof and (vi) the appropriate Fair Market Value and other
         price determinations for such Awards shall each be proportionately
         adjusted by the Board to reflect such transaction. In the event of any
         other recapitalization or capital reorganization of the Company, any
         consolidation or merger of the Company with another corporation or
         entity, the adoption by the Company of any plan of exchange affecting
         the Common Stock or any distribution to holders of Common Stock of
         securities or property (other than normal cash dividends or dividends
         payable in Common Stock), the Board shall make appropriate adjustments
         to (i) the number of shares of Common Stock covered by Awards in the
         form of Common Stock or units denominated in Common Stock, (ii) the
         exercise or other price in respect of such Awards, (iii) the
         appropriate Fair Market Value and other price determinations for such
         Awards, (iv) the number of shares of Common Stock covered by Awards to
         Directors automatically granted pursuant to paragraph 9 hereof and (v)
         the Stock Based Award Limitations described in paragraph 8(b) hereof,
         to give effect to such transaction shall each be proportionately
         adjusted by the Board to reflect such transaction; provided that such
         adjustments shall only be such as are necessary to maintain the
         proportionate interest of the holders of the Awards and preserve,
         without exceeding, the value of such Awards. In the event of a
         corporate merger, consolidation, acquisition of property or stock,
         separation, reorganization or liquidation, the Board shall be
         authorized to issue or assume Awards by means of substitution of new
         Awards, as appropriate, for previously issued Awards or to assume
         previously issued Awards as part of such adjustment.

                                       10
<PAGE>

         (c) In the event of a corporate merger, consolidation, acquisition of
         property or stock, separation, reorganization or liquidation, the Board
         may make such adjustments to Awards or other provisions for the
         disposition of Awards as it deems equitable, and shall be authorized,
         in its discretion, (i) to provide for the substitution of a new Award
         or other arrangement (which, if applicable, may be exercisable for such
         property or stock as the Board determines) for an Award or the
         assumption of the Award, regardless of whether in a transaction to
         which Section 424(a) of the Code applies, (ii) to provide, prior to the
         transaction, for the acceleration of the vesting and exercisability of,
         or lapse of restrictions with respect to, the Award and, if the
         transaction is a cash merger, provide for the termination of any
         portion of the Award that remains unexercised at the time of such
         transaction or (iii) to provide for the acceleration of the vesting and
         exercisability of an Award and the cancellation thereof in exchange for
         such payment as shall be mutually agreeable to the Participant and the
         Board.

         16. Restrictions. No Common Stock or other form of payment shall be
issued with respect to any Award unless the Company shall be satisfied based on
the advice of its counsel that such issuance will be in compliance with
applicable federal and state securities laws. Certificates evidencing shares of
Common Stock delivered under this Plan (to the extent that such shares are so
evidenced) may be subject to such stop transfer orders and other restrictions as
the Committee may deem advisable under the rules, regulations and other
requirements of the Securities and Exchange Commission, any securities exchange
or transaction reporting system upon which the Common Stock is then listed or to
which it is admitted for quotation and any applicable federal or state
securities law. The Committee may cause a legend or legends to be placed upon
such certificates (if any) to make appropriate reference to such restrictions.

         17. Unfunded Plan. Insofar as it provides for Awards of cash, Common
Stock or rights thereto, this Plan shall be unfunded. Although bookkeeping
accounts may be established with respect to Participants who are entitled to
cash, Common Stock or rights thereto under this Plan, any such accounts shall be
used merely as a bookkeeping convenience. The Company shall not be required to
segregate any assets that may at any time be represented by cash, Common Stock
or rights thereto, nor shall this Plan be construed as providing for such
segregation, nor shall the Company, the Board or the Committee be deemed to be a
trustee of any cash, Common Stock or rights thereto to be granted under this
Plan. Any liability or obligation of the Company to any Participant with respect
to an Award of cash, Common Stock or rights thereto under this Plan shall be
based solely upon any contractual obligations that may be created by this Plan
and any Award Agreement, and no such liability or obligation of the Company
shall be deemed to be secured by any pledge or other encumbrance on any property
of the Company. Neither the Company nor the Board nor the Committee shall be
required to give any security or bond for the performance of any obligation that
may be created by this Plan.

         18. Governing Law. This Plan and all determinations made and actions
taken pursuant hereto, to the extent not otherwise governed by mandatory
provisions of the Code or the securities laws of the United States, shall be
governed by and construed in accordance with the laws of the State of Delaware.

                                       11
<PAGE>

         19. Effectiveness. This Plan shall be effective as of March 28, 2002
(the "Effective Date"), as approved by the Board of Directors of the Company.
Notwithstanding the foregoing, the adoption of this Plan is expressly
conditioned upon the approval by the holders of a majority of shares of Common
Stock present, or represented, and entitled to vote at a meeting of the Company
Stockholders held on or before December 31, 2002. If the Stockholders of the
Company should fail to so approve this Plan prior to such date, this Plan shall
terminate and cease to be of any further force or effect, and all grants of
Awards hereunder shall be null and void.

                                       12

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