Document:

EXHIBIT 10.1

                              CONSULTING AGREEMENT

     CONSULTING  AGREEMENT,  dated as of the 19th day of November,  2004 between
Circle Group Holdings,  Inc. 1011 Campus Drive,  Mundelein,  IL 60060 (hereafter
the "Company"), and Stavros N. Papageorgiou, 41-45 Kifissias Ave. Marousi Greece
151 23 (hereinafter the "Consultant").

                                    RECITALS

     WHEREAS,  the Company desires to engage  Consultant to perform services for
the Company,  and Consultant desires to perform such services,  on the terms and
conditions herein after set forth; and

     WHEREAS,  the  Company  herein  agrees to  compensate  Consultant  for such
services;

     NOW THEREFORE,  in consideration of the mutual promises  contained  herein,
the parties hereto agree as follows:

                                    AGREEMENT

     1. EXCLUSIVE AGENCY & SERVICES.  The Company hereby appoints  Consultant as
its exclusive agent in Greece whereas  Consultant wishes to provide Company with
consulting  services,  which  services  include,  but  are  not  limited  to the
following:  (a) assisting the Company with distribution and sale of its products
in Greece;  (b)  assisting  the Company with public  relations of the Company in
Greece; (c) assisting the Company in developing a manufacturing plant in Greece;
(d) introducing  the Company to Sanyo for possible  investment by Sanyo into the
Company  and  possible   assistance   by  Sanyo  in  the   distribution   and/or
manufacturing  of  the  Company's  products;  (e)  introducing  the  Company  to
investors for the purpose  becoming  familiar with Circle Group Holdings  stock;
and (f) assisting the Company in evaluating and  structuring  potential  mergers
and/or  acquisitions with companies  headquartered in Greece. The services to be
provided by the Consultant shall be performed from time to time upon the request
of the Company and/or at the suggestion of the Consultant.

     2. NO MANAGEMENT POWERS. The Consultant shall have no authority to bind the
Company to any agreement or in any manner without the prior written approval and
direction  of the Board of  Directors  or the  Chief  Executive  Officer  of the
Company.

     3. COMPENSATION.

Upon signing of this  agreement,  the Company shall grant warrants to Consultant
to  purchase  500,000  shares  of rule 144  common-stock  at 80 cents  per share
exercisable for two years. In exchange, Consultant shall use his best efforts to
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          (1)  secure  distribution and sale of the Company's products in Greece
               on terms acceptable to the Company;

          (2)  securing a manufacturing  plant in Greece on terms  acceptable to
               the Company;

          (3)  arranging  an  investment  by  Sanyo  into the  Company  on terms
               acceptable to the Company;

          (4)  providing merger and/or acquisition opportunities for the Company
               on terms acceptable to the Company;

After  exercised,   the  shares  underlying  the  warrants  shall  carry  demand
registration  rights  at any time  after  April 15,  2005.  The  formal  warrant
agreement  fully executed by the Company shall be provided to Consultant in hard
copy within five (5) days from the date this agreement is executed detailing the
terms as specified above.

<PAGE>

     4. STOCK. The Consultant  shall purchase  1,750,000 shares of the Company's
rule 144 common stock in a private sale for $1,575,000  (USD).  Payment shall be
made by wire transfer to be executed by  Consultant's  bank on or before January
5, 2005, as per wiring  instructions  shown on signature  page. The shares shall
carry demand registration rights at any time after April 15, 2005. Additionally,
the Company shall grant warrants to Consultant to purchase  1,750,000  shares of
rule 144  common-stock at 90 cents per share,  exercisable for two years.  After
exercised,  the shares  underlying the warrants shall carry demand  registration
rights at any time after April 15,  2005.  The formal  warrant  agreement  fully
executed by the Company shall be provided to Consultant in hard copy within five
(5) days  from the date  this  agreement  is  executed  detailing  the  terms as
specified above.

     5.  TERM.  This  Agreement  shall  be for a term  of two  years  commencing
November 19, 2004 and ending November 18, 2006. The parties may extend or modify
the term of this Agreement in writing signed by both parties.

     6. CANCELLATION.  This Agreement shall be cancelable for non-performance by
either party upon 30 days written notice.  All  compensation  paid to Consultant
prior  to  the  time  of  any  termination  is  non-refundable  but  subject  to
performance by Consultant as specified herein Point 1 of this agreement.

     7. INDEPENDENT CONTRACTOR.  Consultant is, and shall remain, an independent
contractor  and shall not be an employee  of the  Company.  Consultant  shall be
responsible for all employee taxes, workman's compensation and taxes and filings
with regard to its  employees.  The Company  shall not  withhold  any taxes from
consultant fees paid pursuant to this agreement.

     8.  CONFIDENTIAL  INFORMATION.  Consultant  covenants  and  agrees  not  to
disclose,  directly or  indirectly,  at any time either  during the term of this
Agreement or within  twenty four (24) months  subsequent to the  termination  of
this  Agreement to anyone not an employee of the Company,  and not to use at any
time  either  during  employment  or  within  two (2)  years  subsequent  to the
termination of employment,  except in the course of employment with the Company,
any  proprietary  or  confidential  information of the Company or of any parties
dealing with the Company unless he shall first secure the consent of the Company
in  writing or unless he shall  involuntarily  be  required  to do so by a court
having  competent  jurisdiction  after  notice to the  Company.  The Company and
Consultant  hereby  acknowledge that: (a) the duration  limitation  imposed with
respect to said secret and confidential information are reasonable;  and (b) the
restrictions  stated hereinabove are reasonably  necessary for the protection of
the Company's legitimate proprietary interests.

     9. ARBITRATION. Any controversy or claim arising out of or relating to this
Agreement,  or the breach thereof, shall be settled by arbitration in accordance
with the Commercial  Arbitration Rules of the American  Arbitration  Association
and  judgment  on  the  award  rendered  may be  entered  in  any  court  having
jurisdiction  thereof.  Such arbitration shall be mandatory and exclusively held
in the County and State of the  Defendant in any action  brought by either party
in this agreement,  and the cost thereof,  including reasonable attorneys' fees,
shall be borne by the losing party or in such  proportions as the arbitrator may
decide.

     Notwithstanding  anything  else  contained  herein  to  the  contrary,  the
Consultant  acknowledges  that his violation of  paragraphs 7 of this  Agreement
would  result in  irreparable  damages to the Company and that an award of money
damages  in  an   arbitration   proceeding   would  be  an  inadequate   remedy.
Consequently,  the Company will have the right,  in addition to any other rights
it may have to commence arbitration proceedings,  to obtain injunctive relief to
restrain any breach or threatened  breach or otherwise to  specifically  enforce
paragraphs  7 of this  Agreement,  and the Company will not be obligated to post
bond or other security in seeking such relief.

     If any legal action or  proceeding,  other than  arbitration  in accordance
with the rules of the  American  Arbitration  Association  as  described in this
Section 8, is brought by either the Consultant or the

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<PAGE>

Company in order to enforce a  provision  of this  Agreement,  the  unsuccessful
party in such action or proceeding,  whether or not such action or proceeding is
settled or prosecuted to final  judgment,  shall pay all of the attorneys'  fees
and costs incurred by the prevailing party.

     10. ENTIRE  AGREEMENT.  This  Agreement  constitutes  the entire  agreement
between  the  parties  with  regards to the matters  discussed  herein.  It also
supersedes  any and all other  agreements or contracts,  either oral or written,
between the parties with respect to the subject matter hereof.

     11. AMENDMENT. The terms and conditions of this Agreement may be amended at
any time by mutual agreement of the parties,  provided that before any amendment
shall  be  valid or  effective  it shall  have  been  approved  by the  Board of
Directors  of the  Company  and reduced to writing and signed by the Company and
the Consultant.

     12. SEVER  ABILITY.  The invalidity or  unenforceability  of any particular
provision  of this  Agreement  shall not affect its other  provisions,  and this
Agreement shall be construed in all respects as if such invalid or unenforceable
provision had been omitted.

     13. WAIVER.  No waiver by either party of a breach of any provision of this
Agreement shall operate as or be construed to be a waiver of any other breach of
that provision or of any breach of any other  provision of this  Agreement.  The
failure of a party to insist upon strict adherence to any term of this Agreement
on one or more occasions  shall not be considered a waiver or deprive that party
of the right  thereafter  to insist  upon strict  adherence  to that term or any
other term of this Agreement. Any waiver must be in writing.

     14. NO  ASSIGNMENTS.  This  Agreement  is  personal  to each of the parties
hereto,  and  neither  party  may  assign  nor  delegate  any of its  rights  or
obligations  hereunder  without first obtaining the written consent of the other
party.

     15.  GOVERNING LAW. This Agreement and any claim resulting there from shall
be exclusively brought, governed by and construed in accordance with the laws of
the  Defendant in the event any claim is brought under this  agreement,  without
giving effect to the conflict of laws.

     16.  FACSIMILE & COUNTERPART  COPIES.  All duly executed  facsimile  copies
signed jointly or in counterparts are fully binding under any and all applicable
laws.

     IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the
date first above written.

Company: Circle Group Holdings, Inc.         Consultant: Stavros N. Papageorgiou

By /s/ GREGORY J. HALPERN                    By /s/ STAVROS N. PAPAGEORGIOU
   -------------------------                    -------------------------------
Gregory J. Halpern, President                       Stavros N. Papageorgiou
& Chief Executive Officer

                         Recipient's Wiring Instructions

Bank name:        _____________________       Bank Address: 2000 S. Lake Street,
Account Name:     _____________________       Mundelein, Illinois 60060, USA
Account Number:   _____________________       Bank Contact:___________________
ABA #             _____________________       Bank Telephone:_________________

                                       3<PAGE>

                                                                    EXHIBIT 10.1

                     THE 2004 STOCK OPTION, RESTRICTED STOCK

                          AND DEFERRED STOCK UNIT PLAN

                      OF LEAP WIRELESS INTERNATIONAL, INC.

         Leap Wireless International, Inc., a Delaware corporation, has adopted
the 2004 Stock Option, Restricted Stock and Deferred Stock Unit Plan of Leap
Wireless International, Inc. (the "Plan"), effective December 30, 2004 (the
"Effective Date"), for the benefit of eligible Employees (as defined below),
Independent Directors (as defined below) and Consultants (as defined below).

         On April 13, 2003, the Company and its subsidiaries filed voluntary
petitions for relief under chapter 11 of Title 11 of the United States Code in
the U.S. Bankruptcy Court, Southern District of California (the "Bankruptcy
Court") (Chapter 11 Case Nos.: 03-3470-A11 through 03-3535-Al1). The Bankruptcy
Court confirmed the Fifth Amended Joint Plan of Reorganization dated as of July
30, 2003, as amended (the "Plan of Reorganization"), for the Company and its
subsidiaries on October 22, 2003, and the Plan of Reorganization became
effective on August 16, 2004. Section 5.07 of the Plan of Reorganization
provides that, after the effective date of the Plan of Reorganization, the
Company may adopt a new incentive plan for the grant to officers, employees and
directors of the Company and its subsidiaries of options to acquire shares of
Common Stock (as defined below). This Plan was adopted by the Board of Directors
of the Company after the effective date of the Plan of Reorganization in
furtherance of Section 5.07 thereof.

         The purposes of the Plan are as follows:

         (1) To provide an additional incentive for key Employees, Consultants
and Independent Directors (as such terms are defined below) to further the
growth, development and financial success of the Company by personally
benefiting through the ownership of Company stock and/or rights which recognize
such growth, development and financial success.

         (2) To enable the Company to obtain and retain the services of key
Employees, Consultants and Independent Directors considered essential to the
long-range success of the Company by offering them an opportunity to own stock
in the Company which will reflect the growth, development and financial success
of the Company.

                                   ARTICLE I.

                                   DEFINITIONS

         Wherever the following terms are used in the Plan they shall have the
meanings specified below, unless the context clearly indicates otherwise. The
singular pronoun shall include the plural where the context so indicates.

<PAGE>

         1.1. "Administrator" shall mean the entity that conducts the general
administration of the Plan as provided herein. With reference to the
administration of the Plan with respect to Options granted to Independent
Directors, the term "Administrator" shall refer to the Board. With reference to
the administration of the Plan with respect to any other Award, the term
"Administrator" shall refer to the Committee unless the Board has elected to
exercise any of the rights and duties of the Committee under the Plan generally
as provided in Section 9.2.

         1.2. "Award" shall mean an Option, a Restricted Stock award or a
Deferred Stock Unit award granted or awarded under the Plan.

         1.3. "Award Agreement" shall mean a written agreement executed by an
authorized officer of the Company and the Holder which shall contain such terms
and conditions with respect to an Award as the Administrator shall determine,
consistent with the Plan.

         1.4. "Award Limit" shall mean 1,500,000 shares of Common Stock, as
adjusted pursuant to Section 10.3.

         1.5. "Board" shall mean the Board of Directors of the Company.

         1.6. "Change in Control" shall mean the occurrence of any of the
following events, if such event occurs on or after the Effective Date:

                  (a) the occurrence of clauses (I) and (II), where clause (I)
is: the acquisition, directly or indirectly, by any "person" or "group" (as
those terms are defined in Sections 3(a)(9), 13(d), and 14(d) of the Exchange
Act and the rules thereunder) of "beneficial ownership" (as determined pursuant
to Rule 13d-3 under the Exchange Act) of securities entitled to vote generally
in the election of directors ("voting securities") of the Company that represent
thirty-five percent (35%) or more of the combined voting power of the Company's
then outstanding voting securities, other than

                           (i) an acquisition by a trustee or other fiduciary
         holding securities under any employee benefit plan (or related trust)
         sponsored or maintained by the Company or any person controlled by the
         Company or by any employee benefit plan (or related trust) sponsored or
         maintained by the Company or any person controlled by the Company, or

                           (ii) an acquisition of voting securities, directly or
         indirectly by the Company, or

                           (iii) an acquisition of voting securities pursuant to
         a transaction described in subsection (c) below that would not be a
         Change in Control under subsection (c), or

                           (iv) an acquisition of voting securities, directly or
         indirectly, by a person who or group which beneficially owns, as of the
         Effective Date, voting securities of the Company that represent five
         percent (5%) or more of the combined voting power of the Company's
         outstanding voting securities on such Effective Date;

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<PAGE>

provided, however, that, notwithstanding the foregoing, an acquisition of the
Company's securities by the Company which causes the Company's voting securities
beneficially owned by a person or group to represent thirty-five percent (35%)
or more of the combined voting power of the Company's then outstanding voting
securities shall not constitute an "acquisition" by any person or group for
purposes of this clause (I); provided further, that if a person or group shall
become the beneficial owner of thirty-five percent (35%) or more of the combined
voting power of the Company's then outstanding voting securities by reason of
share acquisitions by the Company as described above and shall, after such share
acquisitions by the Company, become the beneficial owner of any additional
voting securities of the Company, then such acquisition shall constitute an
acquisition for purposes of clause (I); and

clause (II) is the circumstance of individuals who, as of the Effective Date,
constitute the Board (the "Incumbent Board") ceasing for any reason to
constitute at least a majority of the Board; provided, however, that any
individual becoming a Director subsequent to the Effective Date whose
appointment, election, or nomination for election by the Company's shareholders
was approved by a vote of at least a majority of the Directors then comprising
the Incumbent Board shall be considered as though such individual were a member
of the Incumbent Board, but excluding, for this purpose, any such individual
whose initial assumption of office as a Director occurs as a result of an actual
or threatened election contest with respect to the election or removal of
Directors or other actual or threatened solicitation of proxies or consents by
or on behalf of a person other than the Board.

Notwithstanding the foregoing, clause (II) shall not apply, and the occurrence
of clause (I) shall be sufficient to constitute a Change in Control if the
acquisition described in clause (I) is by a Strategic Investor; provided,
however, that clause (II) shall nonetheless apply if the Strategic Investor
enters into a standstill agreement with the Company (for the duration of such
agreement). For purposes of this subsection (a),"Strategic Investor" shall mean
any buyer of or investor in of voting securities of the Company whose primary
business is not financial investing;

                  (b) the consummation by the Company (whether directly
involving the Company or indirectly involving the Company through one or more
subsidiaries or intermediaries) of: (i) a merger, consolidation, reorganization,
or business combination or (ii) a sale or other disposition of all or
substantially all of the Company's assets, other than a transaction

                           (I) which results in the Company's voting securities
         outstanding immediately before the transaction continuing to represent
         (either by remaining outstanding or by being converted into voting
         securities of the Company or the person that, as a result of the
         transaction, controls, directly or indirectly, the Company or owns,
         directly or indirectly, all or substantially all of the Company's
         assets or otherwise succeeds to the business of the Company (the
         Company or such person, the "Company Successor Entity")), directly or
         indirectly, more than fifty percent (50%) of the combined voting power
         of the Company Successor Entity's outstanding voting securities
         immediately after the transaction, and

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<PAGE>

                           (II) after which more than fifty percent (50%) of the
         members of the board of directors of the Company Successor Entity were
         members of the Incumbent Board at the time of the Board's approval of
         the agreement providing for the transaction or other action of the
         Board approving the transaction, and

                           (III) after which no person or group beneficially
         owns voting securities representing thirty-five percent (35%) or more
         of the combined voting power of the Company Successor Entity; provided,
         however, that no person or group shall be treated for purposes of this
         clause (III) as beneficially owning thirty-five percent (35%) or more
         of the combined voting power of the Company Successor Entity solely as
         a result of the voting power held in the Company by such person or
         group prior to the consummation of the transaction;

                  (c) a liquidation or dissolution of the Company;

                  (d) the acquisition, directly or indirectly, by any "person"
or "group" (as those terms are defined in Sections 3(a)(9), 13(d), and 14(d) of
the Exchange Act and the rules thereunder) of "beneficial ownership" (as
determined pursuant to Rule l3d-3 under the Exchange Act) of securities entitled
to vote generally in the election of directors ("voting securities") of Cricket
Communications, Inc. ("Cricket")that represent fifty percent (50%) or more of
the combined voting power of Cricket's then outstanding voting securities, other
than

                           (i) an acquisition of Cricket's voting securities,
         directly or indirectly, by the Company or any person controlled by the
         Company, or

                           (ii) an acquisition of Cricket's voting securities
         pursuant to a transaction described in subsection (e) below that would
         not be a Change in Control under subsection (e); or

                  (e) the consummation by Cricket (whether directly involving
Cricket or indirectly involving Cricket through one or more subsidiaries or
intermediaries) of (i) a merger, consolidation, reorganization, or business
combination or (ii) a sale or other disposition of all or substantially all of
Cricket's assets, other than a transaction which results in Cricket's voting
securities outstanding immediately before the transaction continuing to
represent (either by remaining outstanding or by being converted into voting
securities of Cricket or the person that, as a result of the transaction,
controls, directly or indirectly, Cricket or owns, directly or indirectly, all
or substantially all of Cricket's assets or otherwise succeeds to the business
of Cricket (Cricket or such person, the "Cricket Successor Entity ")),directly
or indirectly, more than fifty percent (50%) of the combined voting power of the
Cricket Successor Entity's outstanding voting securities immediately after the
transaction.

For purposes of subsection (a) above, the calculation of voting power shall be
made as if the date of the acquisition were a record date for a vote of the
Company's shareholders, and for purposes of subsection (b) above, the
calculation of voting power shall be made as if the date of the consummation of
the transaction were a record date for a vote of the Company's shareholders. For
purposes of subsection (d) above, the calculation of voting power shall be made
as if the date of the acquisition were a record date for a vote of Cricket's
shareholders, and for purposes of

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<PAGE>

subsection (e) above, the calculation of voting power shall be made as if the
date of the consummation of the transaction were a record date for a vote of
Cricket's shareholders.

         1.7. "Code" shall mean the Internal Revenue Code of 1986, as amended.

         1.8. "Committee" shall mean the Compensation Committee of the Board, or
another committee or subcommittee of the Board, appointed as provided in Section
9.1.

         1.9. "Common Stock" shall mean the common stock of the Company, par
value $.0001 per share.

         1.10. "Company" shall mean Leap Wireless International, Inc., a
Delaware corporation.

         1.11. "Consultant" shall mean any consultant or adviser if (a) the
consultant or adviser renders bona fide services to the Company or a subsidiary;
(b) the services rendered by the consultant or adviser are not in connection
with the offer or sale of securities in a capital-raising transaction and do not
directly or indirectly promote or maintain a market for the Company's
securities; and (c) the consultant or adviser is a natural person who has
contracted directly with the Company or a subsidiary to render such services.

         1.12. "Deferred Stock Unit" shall mean a deferred stock unit award
awarded under Article VIII of the Plan.

         1.13. "Director" shall mean a member of the Board.

         1.14. "DRO" shall mean a domestic relations order as defined by the
Code or Title I of the Employee Retirement Income Security Act of 1974, as
amended, or the rules thereunder.

         1.15. "Employee" shall mean any officer or other employee (as defined
in accordance with Section 3401(c) of the Code) of the Company, or of any
corporation which is a Subsidiary.

         1.16. "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended.

         1.17. "Fair Market Value" of a share of Common Stock as of a given date
shall be: (a) the closing price of a share of Common Stock on the principal
exchange on which shares of Common Stock are then trading, if any (or as
reported on any composite index which includes such principal exchange), on the
trading day previous to such date, or if shares were not traded on the trading
day previous to such date, then on the next preceding date on which a trade
occurred, or (b) if Common Stock is not traded on an exchange but is quoted on
Nasdaq or a successor quotation system, the mean between the closing
representative bid and asked prices for the Common Stock on the trading day
previous to such date as reported by Nasdaq or such successor quotation system,
or (c) if the Common Stock is not publicly traded on an exchange and not quoted
on Nasdaq or a successor quotation system, but is quoted on another automated
quotation system, the mean between the closing representative bid and asked
prices for the

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Common Stock on the trading day previous to such date as reported by such
automated quotation system, or (d) if Common Stock is not publicly traded on an
exchange, and not quoted on Nasdaq or a successor quotation system or another
automated quotation system, the Fair Market Value of a share of Common Stock as
established by the Administrator acting in good faith.

         1.18. "Holder" shall mean a person who has been granted an Award.

         1.19. "Incentive Stock Option" shall mean an option which conforms to
the applicable provisions of Section 422 of the Code and which is designated as
an Incentive Stock Option by the Administrator.

         1.20. "Independent Director" shall mean a member of the Board who is
not an Employee of the Company.

         1.21. "Non-Qualified Stock Option" shall mean an Option which is not an
Incentive Stock Option.

         1.22. "Option" shall mean a stock option granted under Article IV of
the Plan. An Option granted under the Plan shall, as determined by the
Administrator, be either a Non-Qualified Stock Option or an Incentive Stock
Option; provided, however, that Options granted to Independent Directors and
Consultants shall be Non-Qualified Stock Options.

         1.23. "Parent" shall mean any corporation in an unbroken chain of
corporations ending with the Company if each of the corporations other than the
last corporation in the unbroken chain then owns stock possessing fifty percent
(50%) or more of the total combined voting power of all classes of stock in one
of the other corporations in such chain.

         1.24. "Plan" shall mean the 2004 Stock Option, Restricted Stock and
Deferred Stock Unit Plan of Leap Wireless International, Inc.

         1.25. "Restricted Stock" shall mean shares of Common Stock awarded
under Article VII of the Plan.

         1.26. "Rule 16b-3" shall mean Rule 16b-3 promulgated under the Exchange
Act, as such Rule may be amended from time to time.

         1.27. "Securities Act" shall mean the Securities Act of 1933, as
amended.

         1.28. "Subsidiary" shall mean any corporation in an unbroken chain of
corporations beginning with the Company if each of the corporations other than
the last corporation in the unbroken chain then owns stock possessing fifty
percent (50%) or more of the total combined voting power of all classes of stock
in one of the other corporations in such chain.

         1.29. "Substitute Award" shall mean an Option granted under this Plan
upon the assumption of, or in substitution for, outstanding equity awards
previously granted by a company or other entity in connection with a corporate
transaction, such as a merger, combination, consolidation or acquisition of
property or stock; provided, however, that in no event shall the

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term "Substitute Award" be construed to refer to an award made in connection
with the cancellation and repricing of an Option.

         1.30. "Termination of Consultancy" shall mean the time when the
engagement of a Holder as a Consultant to the Company or a Subsidiary is
terminated for any reason, with or without cause, including, but not by way of
limitation, by resignation, discharge, death, disability or retirement, but
excluding terminations where there is a simultaneous commencement of employment
with the Company or any Subsidiary. The Administrator, in its absolute
discretion, shall determine the effect of all matters and questions relating to
Termination of Consultancy, including, but not by way of limitation, the
question of whether a Termination of Consultancy resulted from a termination for
cause, and all questions of whether a particular leave of absence constitutes a
Termination of Consultancy.

         1.31. "Termination of Directorship" shall mean the time when a Holder
who is an Independent Director ceases to be a Director for any reason,
including, but not by way of limitation, a termination by resignation, removal,
failure to be elected or reelected, death, disability or retirement. The
Administrator, in its absolute discretion, shall determine the effect of all
matters and questions relating to Termination of Directorship, including, but
not by way of limitation, the question of whether a Termination of Directorship
resulted from a termination for cause, and all questions of whether a particular
leave of absence constitutes a Termination of Directorship.

         1.32. "Termination of Employment" shall mean the time when the
employee-employer relationship between a Holder and the Company or any
Subsidiary is terminated for any reason, with or without cause, including, but
not by way of limitation, a termination by resignation, discharge, death,
disability or retirement; but excluding (a) terminations where there is a
simultaneous reemployment or continuing employment of a Holder by the Company or
any Subsidiary, (b) at the discretion of the Administrator, terminations which
result in a temporary severance of the employee-employer relationship, and (c)
at the discretion of the Administrator, terminations which are followed by the
simultaneous establishment of a consulting or directorship relationship by the
Company or a Subsidiary with the former employee. The Administrator, in its
absolute discretion, shall determine the effect of all matters and questions
relating to Termination of Employment, including, but not by way of limitation,
the question of whether a Termination of Employment resulted from a discharge
for cause, and all questions of whether a particular leave of absence
constitutes a Termination of Employment; provided, however, that, with respect
to Incentive Stock Options, unless otherwise determined by the Administrator in
its discretion, a leave of absence, change in status from an employee to an
independent contractor or other change in the employee-employer relationship
shall constitute a Termination of Employment if, and to the extent that, such
leave of absence, change in status or other change interrupts employment for the
purposes of Section 422(a)(2) of the Code and the then applicable regulations
and revenue rulings under said Section.

                                  ARTICLE II.

                             SHARES SUBJECT TO PLAN

         2.1. Shares Subject to Plan.

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                  (a) The shares of stock subject to Awards shall be Common
Stock, subject to adjustment as provided in Section 10.3. Subject to adjustment
as provided in Section 10.3, the aggregate number of such shares which may be
issued with respect to Awards granted under the Plan shall not exceed 4,800,000.
The shares of Common Stock issuable with respect to such Awards may be either
previously authorized but unissued shares or treasury shares.

                  (b) Following the date the Plan is approved by the
stockholders of the Company, subject to adjustment as provided in Section 10.3,
the maximum number of shares of Common Stock which may be subject to Awards
granted under the Plan to any individual in any calendar year shall not exceed
the Award Limit. To the extent required by Section 162(m) of the Code, shares of
Common Stock subject to Awards which expire, terminate or are canceled continue
to be counted against the Award Limit.

         2.2. Add-Back of Options and Other Rights. If any Award expires,
terminates or is canceled without having been fully exercised, the number of
shares subject to such Award but as to which such Award was not exercised prior
to its expiration, termination or cancellation may again be optioned hereunder,
subject to the limitations of Section 2.1. If any shares of Restricted Stock are
surrendered by the Holder or repurchased by the Company pursuant to Section 7.4
or 7.5 hereof, such shares may again be granted or awarded hereunder, subject to
the limitations of Section 2.1. Furthermore, any shares subject to Awards which
are adjusted pursuant to Section 10.3 and become exercisable with respect to
shares of stock of another corporation shall be considered cancelled for
purposes of this Section 2.2 and may again be granted or awarded hereunder,
subject to the limitations of Section 2.1. Shares of Common Stock which are
delivered by the Holder or withheld by the Company upon the exercise of any
Award under the Plan, in payment of the exercise or purchase price thereof, or
tax withholding thereon, may again be granted or awarded hereunder, subject to
the limitations of Section 2.1. Notwithstanding the provisions of this Section
2.2, no shares of Common Stock may again be optioned, granted or awarded if such
action would cause an Incentive Stock Option to fail to qualify as an incentive
stock option under Section 422 of the Code.

                                  ARTICLE III.

                               GRANTING OF AWARDS

         3.1. Award Agreement. Each Award shall be evidenced by an Award
Agreement. Award Agreements evidencing Incentive Stock Options shall contain
such terms and conditions as may be necessary to meet the applicable provisions
of Section 422 of the Code. The Administrator may, in its discretion, include
such further provisions and limitations in any Award Agreement at the time of
the grant of such Award which are not inconsistent with the terms of the Plan.

         3.2. Limitations Applicable to Section 16 Persons. Notwithstanding any
other provision of the Plan, the Plan, and any Award granted to any individual
who is then subject to Section 16 of the Exchange Act, shall be subject to any
additional limitations set forth in any applicable exemptive rule under Section
16 of the Exchange Act (including any amendment to Rule 16b-3 of the Exchange
Act) that are requirements for the application of such exemptive

                                       8
<PAGE>

rule. To the extent permitted by applicable law, the Plan and Awards granted
hereunder shall be deemed amended to the extent necessary to conform to such
applicable exemptive rule.

         3.3. At-Will Employment. Nothing in the Plan or in any Award Agreement
hereunder shall confer upon any Holder any right to continue in the employ of
the Company or any Subsidiary or shall interfere with or restrict in any way the
rights of the Company and any Subsidiary, which are hereby expressly reserved,
to discharge any Holder at any time for any reason whatsoever or no reason, with
or without cause, except to the extent expressly provided otherwise in a written
employment agreement between the Holder and the Company or any Subsidiary.

                                  ARTICLE IV.

                  GRANTING OF OPTIONS TO EMPLOYEES, CONSULTANTS
                            AND INDEPENDENT DIRECTORS

         4.1. Eligibility. Any Employee or Consultant selected by the
Administrator pursuant to Section 4.3(a)(i) shall be eligible to be granted an
Option; provided that any Option granted under the Plan shall be a Non-Qualified
Stock Option unless the applicable Award Agreement specifically provides that
such Option is an Incentive Stock Option. No Incentive Stock Option shall be
granted to any person who is not an Employee. Each Independent Director of the
Company shall be eligible to be granted Options at the times and in the manner
set forth in Section 4.4.

         4.2. Disqualification for Stock Ownership. No Employee may be granted
an Incentive Stock Option under the Plan if such person, at the time the
Incentive Stock Option is granted, owns stock possessing more than ten percent
(10%) of the total combined voting power of all classes of stock of the Company
or any then existing Subsidiary or parent corporation (within the meaning of
Section 424(e) of the Code) unless such Incentive Stock Option conforms to the
applicable provisions of Section 422 of the Code.

         4.3. Granting of Options to Employees and Consultants.

                  (a) The Administrator shall from time to time, in its absolute
discretion, and subject to applicable limitations of the Plan:

                           (i) Determine which Employees are key Employees and
         select from among the key Employees or Consultants (including Employees
         or Consultants who have previously received Awards under the Plan) such
         of them as in its opinion should be granted Options;

                           (ii) Determine the number of shares to be subject to
         such Options granted to the selected key Employees or Consultants;

                           (iii) Subject to Section 4.1, determine whether such
         Options are to be Incentive Stock Options or Non-Qualified Stock
         Options; and

                                       9
<PAGE>

                           (iv) Subject to Articles V and VI, determine the
         terms and conditions of such Options, consistent with the Plan
         (including, without limitation, the exercise price per share, vesting,
         exercisability and term of the Option, the manner in which the exercise
         price shall be paid, the terms and conditions under which the Option
         may be exercised prior to vesting for restricted shares of Common
         Stock, the transfer, escrow, repurchase and other restrictions
         applicable to such restricted shares of Common Stock, and the extent to
         which an election under Section 83(b) of the Code may be made with
         respect to such restricted shares of Common Stock).

                  (b) Upon the selection of a key Employee or Consultant to be
granted an Option, the Administrator shall instruct the Secretary of the Company
to issue the Option and may impose such conditions on the grant of the Option as
it deems appropriate.

         4.4. Granting of Options to Independent Directors. The Board shall from
time to time, in its absolute discretion, and subject to applicable limitations
of the Plan:

                  (a) Select from among the Independent Directors (including
Independent Directors who have previously received Options under the Plan) such
of them as in its opinion should be granted Options;

                  (b) Subject to the Award Limit, determine the number of shares
to be subject to such Options granted to the selected Independent Directors; and

                  (c) Subject to the provisions of Articles V and VI, determine
the terms and conditions of such Options, consistent with the Plan.

                                   ARTICLE V.

                                TERMS OF OPTIONS

         5.1. Option Price. The price per share of the shares subject to each
Option granted to Employees and Consultants shall be set by the Administrator;
provided, however, that such price shall be no less than the par value of a
share of Common Stock, unless otherwise permitted by applicable state law, and:

                  (a) In the case of Incentive Stock Options, such price shall
not be less than one hundred percent (100%) of the Fair Market Value of a share
of Common Stock on the date the Option is granted (or the date the Option is
modified, extended or renewed for purposes of Section 424(h) of the Code); and

                  (b) In the case of Incentive Stock Options granted to an
Employee then owning (within the meaning of Section 424(d) of the Code) more
than ten percent (10%) of the total combined voting power of all classes of
stock of the Company or any Subsidiary or parent corporation thereof (within the
meaning of Section 424(e) of the Code), such price shall not be less than one
hundred ten percent (110%) of the Fair Market Value of a share of Common Stock
on the date the Option is granted (or the date the Option is modified, extended
or renewed for purposes of Section 424(h) of the Code).

                                       10
<PAGE>

         5.2. Option Term. The term of an Option granted to an Employee or
Consultant shall be set by the Administrator in its discretion; provided,
however, that, in the case of an Incentive Stock Option, the term shall not be
more than ten (10) years from the date the Incentive Stock Option is granted, or
five years from the date the Incentive Stock Option is granted if the Incentive
Stock Option is granted to an Employee then owning (within the meaning of
Section 424(d) of the Code) more than ten percent (10%) of the total combined
voting power of all classes of stock of the Company or any Subsidiary or parent
corporation thereof (within the meaning of Section 424(e) of the Code).

         5.3. Option Vesting.

                  (a) The period during which the right to exercise, in whole or
in part, an Option granted to an Employee or a Consultant vests in the Holder
shall be set by the Administrator and the Administrator may determine that an
Option may not be exercised in whole or in part for a specified period after it
is granted. At any time after grant of an Option, the Administrator may, in its
sole and absolute discretion and subject to whatever terms and conditions it
selects, accelerate the period during which an Option granted to an Employee or
Consultant vests.

                  (b) No portion of an Option granted to an Employee or
Consultant which is unexercisable at Termination of Employment or Termination of
Consultancy, as applicable, shall thereafter become exercisable, except as may
be otherwise provided by the Administrator either in the Award Agreement or by
action of the Administrator following the grant of the Option.

         5.4. Terms of Options Granted to Independent Directors.

                  (a) The price per share of the shares of Common Stock subject
to each Option granted to an Independent Director shall equal one hundred
percent (100%) of the Fair Market Value of a share of Common Stock on the date
the Option is granted.

                  (b) The period during which the right to exercise, in whole or
in part, an Option granted to an Independent Director vests in the Holder shall
be set by the Administrator and the Administrator may determine that an Option
may not be exercised in whole or in part for a specified period after it is
granted. At any time after grant of an Option, the Administrator may, in its
sole and absolute discretion and subject to whatever terms and conditions it
selects, accelerate the period during which an Option granted to an Independent
Director vests.

                  (c) No portion of an Option granted to an Independent Director
which is unexercisable at Termination of Directorship, shall thereafter become
exercisable, except as may be otherwise provided by the Administrator either in
the Award Agreement or by action of the Administrator following the grant of the
Option.

         5.5. Substitute Awards. Notwithstanding any of the foregoing provisions
of this Article V to the contrary, in the case of an Option that is a Substitute
Award, the price per share of the shares subject to such Option may be less than
the Fair Market Value per share on the date of grant, provided, that the excess
of: (a) the aggregate Fair Market Value (as of the

                                       11
<PAGE>

date such Substitute Award is granted) of the shares subject to the Substitute
Award; over (b) the aggregate exercise price thereof, does not exceed the excess
of: (c) the aggregate fair market value (as of the time immediately preceding
the transaction giving rise to the Substitute Award, such fair market value to
be determined by the Administrator) of the shares of the predecessor entity that
were subject to the grant assumed or substituted for by the Company; over (d)
the aggregate exercise price of such shares.

                                   ARTICLE VI.

                               EXERCISE OF OPTIONS

         6.1. Partial Exercise. An exercisable Option may be exercised in whole
or in part. However, an Option shall not be exercisable with respect to
fractional shares and the Administrator may require that, by the terms of the
Option, a partial exercise be with respect to a minimum number of shares.

         6.2. Manner of Exercise. All or a portion of an exercisable Option
shall be deemed exercised upon delivery of all of the following to the Secretary
of the Company (or the Company office designated by the Secretary of the
Company):

                  (a) A written notice complying with the applicable rules
established by the Administrator stating that the Option, or a portion thereof,
is exercised. The notice shall be signed by the Holder or other person then
entitled to exercise the Option or such portion of the Option;

                  (b) Such representations and documents as the Administrator,
in its absolute discretion, deems necessary or advisable to effect compliance
with all applicable provisions of the Securities Act and any other federal or
state securities laws or regulations. The Administrator may, in its absolute
discretion, also take whatever additional actions it deems appropriate to effect
such compliance including, without limitation, placing legends on share
certificates and issuing stop-transfer notices to agents and registrars;

                  (c) In the event that the Option shall be exercised pursuant
to Section 9.1 by any person or persons other than the Holder, appropriate proof
of the right of such person or persons to exercise the Option; and

                  (d) Full cash payment to the Secretary of the Company for the
shares with respect to which the Option, or portion thereof, is exercised.
However, the Administrator may, in its discretion, (i) allow payment, in whole
or in part, through the delivery of shares of Common Stock which have been owned
by the Holder for at least six months, duly endorsed for transfer to the Company
with a Fair Market Value on the date of delivery equal to the aggregate exercise
price of the Option or exercised portion thereof; (ii) allow payment, in whole
or in part, through the surrender of shares of Common Stock then issuable upon
exercise of the Option having a Fair Market Value on the date of Option exercise
equal to the aggregate exercise price of the Option or exercised portion
thereof; (iii) allow payment, in whole or in part, through the delivery of a
notice that the Holder has placed a market sell order with a broker with respect
to shares of Common Stock then issuable upon exercise of the Option, and that
the broker has been

                                       12
<PAGE>

directed to pay a sufficient portion of the net proceeds of the sale to the
Company in satisfaction of the Option exercise price, provided that payment of
such proceeds is then made to the Company upon settlement of such sale; or (iv)
allow payment through any combination of the consideration provided in the
foregoing subparagraphs (i), (ii) and (iii). Payment in the manner prescribed by
the preceding sentences shall not be permitted to the extent that the
Administrator determines that payment in such manner may result in an extension
or maintenance of credit, an arrangement for the extension of credit, or a
renewal of an extension of credit in the form of a personal loan to or for any
Director or executive officer of the Company that is prohibited by Section 13(k)
of the Exchange Act or other applicable law.

         6.3. Conditions to Issuance of Stock Certificates. The Company shall
not be required to issue or deliver any certificate or certificates for shares
of stock purchased upon the exercise of any Option or portion thereof prior to
fulfillment of all of the following conditions:

                  (a) The admission of such shares to listing on all stock
exchanges on which such class of stock is then listed;

                  (b) The completion of any registration or other qualification
of such shares under any state or federal law, or under the rulings or
regulations of the Securities and Exchange Commission or any other governmental
regulatory body which the Administrator shall, in its absolute discretion, deem
necessary or advisable;

                  (c) The obtaining of any approval or other clearance from any
state or federal governmental agency which the Administrator shall, in its
absolute discretion, determine to be necessary or advisable;

                  (d) The lapse of such reasonable period of time following the
exercise of the Option as the Administrator may establish from time to time for
reasons of administrative convenience; and

                  (e) The receipt by the Company of full payment for such
shares, including payment of any applicable withholding tax, which in the
discretion of the Administrator may be in the form of consideration used by the
Holder to pay for such shares under Section 6.2(d), subject to Section 10.4.

         6.4. Rights as Stockholders. Holders shall not be, nor have any of the
rights or privileges of, stockholders of the Company in respect of any shares
purchasable upon the exercise of any part of an Option unless and until
certificates representing such shares have been issued by the Company to such
Holders.

         6.5. Exercise Ownership and Transfer Restrictions. The Administrator,
in its absolute discretion, may impose such restrictions on the exercise of an
Option and the ownership and transferability of the shares purchasable upon the
exercise of an Option as it deems appropriate. Any such restriction shall be set
forth in the respective Award Agreement and may be referred to on the
certificates evidencing such shares.

         6.6. Limitations on Exercise of Options Granted to Employees and
Consultants. Unless otherwise provided by the Administrator in the Award
Agreement, no

                                       13
<PAGE>

Option granted to an Employee or Consultant may be exercised to any extent by
anyone after the first to occur of the following events:

                  (a) The expiration of twelve (12) months from the date of the
Holder's death;

                  (b) The expiration of twelve (12) months from the date of the
Holder's Termination of Employment or Termination of Consultancy, as applicable,
by reason of his or her permanent and total disability (within the meaning of
Section 22(e)(3) of the Code);

                  (c) The expiration of three months from the date of the
Holder's Termination of Employment or Termination of Consultancy, as applicable,
for any reason other than such Holder's Termination of Employment by the Company
for "Cause" (as defined in the Holder's employment agreement with the Company in
effect on the grant date of the Option, or, if the Holder does not have an
employment agreement with the Company or the Holder's employment agreement does
not include a definition of "Cause", as defined in the Award Agreement), death
or permanent and total disability, unless the Holder dies within said
three-month period;

                  (d) The Holder's Termination of Employment or Consultancy by
the Company for "Cause" as defined in the Holder's employment agreement with the
Company in effect on the grant date of the Option, or, if the Holder does not
have an employment agreement with the Company or the Holder's employment
agreement does not include a definition of "Cause", as defined in the Award
Agreement; or

                  (e) The expiration of ten (10) years from the date the Option
was granted.

         6.7. Limitations on Exercise of Options Granted to Independent
Directors. Except as otherwise provided in the Award Agreement, no Option
granted to an Independent Director may be exercised to any extent by anyone
after the first to occur of the following events:

                  (a) The expiration of twelve (12) months from the date of the
Holder's death;

                  (b) The expiration of twelve (12) months from the date of the
Holder's Termination of Directorship by reason of his or her permanent and total
disability (within the meaning of Section 22(e)(3) of the Code);

                  (c) The expiration of three months from the date of the
Holder's Termination of Directorship for any reason other than such Holder's
Termination of Directorship for cause, death or permanent and total disability,
unless the Holder dies within said three-month period;

                  (d) The Holder's Termination of Directorship for cause; or

                                       14
<PAGE>

                  (e) The expiration of ten (10) years from the date the Option
was granted.

         6.8. Additional Limitations on Exercise of Options. Holders may be
required to comply with any timing or other restrictions with respect to the
settlement or exercise of an Option, including a window-period limitation, as
may be imposed in the discretion of the Administrator.

                                  ARTICLE VII.

             AWARDING OF RESTRICTED STOCK TO EMPLOYEES, CONSULTANTS
                            AND INDEPENDENT DIRECTORS

         7.1. Eligibility. Subject to the Award Limit, shares of Restricted
Stock may be awarded to any Employee whom the Administrator determines is a key
Employee, any Independent Director or any Consultant who the Administrator
determines should receive such an Award.

         7.2. Award of Restricted Stock.

                  (a) The Administrator may from time to time, in its absolute
discretion:

                           (i) Determine which Employees are key Employees and
         select from among the key Employees, Independent Directors or
         Consultants (including Employees, Independent Directors or Consultants
         who have previously received Awards under the Plan) such of them as in
         its opinion should be awarded Restricted Stock; and

                           (ii) Determine the terms and conditions applicable to
         such Restricted Stock, consistent with the Plan.

                  (b) The Administrator shall establish the purchase price, if
any, and form of payment for Restricted Stock; provided, however, that such
purchase price shall be no less than the par value of the Common Stock to be
purchased, unless otherwise permitted by applicable state law. In all cases,
legal consideration shall be required for each issuance of Restricted Stock.

                  (c) Upon the selection of a key Employee, Independent Director
or Consultant to be awarded Restricted Stock, the Administrator shall instruct
the Secretary of the Company to issue such Restricted Stock and may impose such
conditions on the issuance of such Restricted Stock, as it deems appropriate.

         7.3. Rights as Stockholders. Subject to Section 7.4, upon delivery of
the shares of Restricted Stock to the escrow holder pursuant to Section 7.6, the
Holder shall have, unless otherwise provided by the Administrator, all the
rights of a stockholder with respect to said shares, subject to the restrictions
in his or her Award Agreement, including the right to receive all dividends and
other distributions paid or made with respect to the shares; provided,

                                       15
<PAGE>

however, that, in the discretion of the Administrator, any extraordinary
distributions with respect to the Common Stock shall be subject to the
restrictions set forth in Section 7.4.

         7.4. Restriction. All shares of Restricted Stock issued under the Plan
(including any shares received by Holders thereof with respect to shares of
Restricted Stock as a result of stock dividends, stock splits or any other form
of recapitalization) shall, in the terms of each individual Award Agreement, be
subject to such restrictions as the Administrator shall provide, which
restrictions may include, without limitation, restrictions concerning voting
rights and transferability and restrictions based on duration of employment or
consultancy with the Company, Company performance and individual performance;
provided, however, by action taken after the shares of Restricted Stock are
issued, the Administrator may, in its sole and absolute discretion and subject
to whatever terms and conditions it determines, remove any or all of the
restrictions imposed by the terms of the Award Agreement. Shares of Restricted
Stock may not be sold or encumbered until all restrictions are terminated or
expire. Except as otherwise provided in the Award Agreement, if no consideration
was paid by the Holder upon issuance, a Holder's rights in unvested Shares of
Restricted Stock shall lapse, and such shares of Restricted Stock shall be
surrendered to the Company without consideration, upon Termination of
Employment, Termination of Consultancy or Termination of Directorship, as
applicable.

         7.5. Repurchase of Restricted Stock. The Administrator may provide in
the terms of each individual Award Agreement that the Company shall have the
right to repurchase from the Holder the shares of Restricted Stock then subject
to restrictions under the Award Agreement immediately upon a Termination of
Employment, Termination of Consultancy or Termination of Directorship, as
applicable, at a cash price per share equal to the price paid by the Holder for
such Restricted Stock.

         7.6. Escrow. The Secretary of the Company or such other escrow holder
as the Administrator may appoint shall retain physical custody of each
certificate representing shares of Restricted Stock until all of the
restrictions imposed under the Award Agreement with respect to the shares
evidenced by such certificate expire or shall have been removed.

         7.7. Legend. In order to enforce the restrictions imposed upon shares
of Restricted Stock hereunder, the Administrator shall cause a legend or legends
to be placed on certificates representing all shares of Restricted Stock that
are still subject to restrictions under Award Agreements, which legend or
legends shall make appropriate reference to the conditions imposed thereby.

         7.8. Code Section 83(b) Election. If a Holder makes an election under
Section 83(b) of the Code, or any successor section thereto, to be taxed with
respect to the Restricted Stock as of the date of transfer of the shares of
Restricted Stock rather than as of the date or dates upon which the Holder would
otherwise be taxable under Section 83(a) of the Code, the Holder shall deliver a
copy of such election to the Company immediately after filing such election with
the Internal Revenue Service.

         7.9. Conditions to Issuance of Shares of Common Stock. The Company
shall not be required to issue or deliver any certificate or certificates for
shares of Restricted Stock prior to fulfillment of all of the conditions set
forth in Section 6.3.

                                       16
<PAGE>

                                 ARTICLE VIII.

   AWARDING OF DEFERRED STOCK UNITS TO EMPLOYEES, CONSULTANTS AND INDEPENDENT
                                    DIRECTORS

         8.1. Eligibility.

         Subject to the Award Limit, Deferred Stock Unit awards may be awarded
to any Employee whom the Administrator determines is a key Employee, any
Independent Director or any Consultant who the Administrator determines should
receive such an Award. A Deferred Stock Unit shall represent the right to
receive shares of Common Stock in accordance with this Article VIII.

         8.2. Awards of Deferred Stock Units.

                  (a) The Administrator may from time to time, in its absolute
discretion:

                           (i) Determine which Employees are key Employees and
         select from among the key Employees, Independent Directors or
         Consultants (including Employees, Independent Directors or Consultants
         who have previously received Awards under the Plan) such of them as in
         its opinion should be awarded Deferred Stock Unit awards;

                           (ii) Subject to the Award Limit, determine the number
         of Deferred Stock Units to be awarded; and

                           (iii) Determine the terms and conditions applicable
         to such Deferred Stock Unit award, consistent with the Plan.

                  (b) The Administrator shall establish the purchase price, if
any, and form of payment for Deferred Stock Unit awards; provided, however, that
such purchase price shall be no less than the par value of the Common Stock to
be purchased, unless otherwise permitted by applicable state law. In all cases,
legal consideration shall be required for each issuance of shares of Common
Stock pursuant to Deferred Stock Units.

                  (c) The Administrator shall determine the terms regarding the
issuance of shares of Common Stock issuable pursuant to a Deferred Stock Unit
award and may provide that such terms are subject to an election by the
Employee, Independent Director or Consultant to whom such Award is to be or has
been awarded in accordance with Section 8.5. The issuance of the shares of
Common Stock issuable pursuant to a Deferred Stock Unit award shall be not
earlier than one of the following events:

                           (i) a date or dates specified under the terms of the
         Award,

                           (ii) the Termination of Consultancy, Termination of
         Directorship or Termination of Employment of such Employee, Independent
         Director or Consultant,

                                       17
<PAGE>

                           (iii) an Unforeseeable Emergency of such Employee,
         Independent Director or Consultant, or

                           (iv) a Change of Control;

provided, however, in the case of an Employee, Independent Director or
Consultant who is a "key employee" as defined in Code Section 416(i) (determined
without regard to paragraph (5) thereof) of the Company, the issuance of the
shares of Common Stock issuable pursuant to Termination of Consultancy,
Termination of Directorship or Termination of Employment shall not be made
before the date which is six (6) months after the date of such Termination of
Consultancy, Termination of Directorship or Termination of Employment.

                  (d) For purposes of Sections 8.2 and 8.5, the "Unforeseeable
Emergency" of an Employee, Independent Director or Consultant shall mean a
severe financial hardship to such Employee, Independent Director or Consultant
resulting from: (i) an illness or accident of such Employee, Independent
Director or Consultant, or the spouse or a dependent (as defined in Code Section
152(a)) of such Employee, Independent Director or Consultant, (ii) the loss of
such Employee's, Independent Director's or Consultant's property due to
casualty, or (iii) other similar extraordinary and unforeseeable circumstances
arising as a result of events beyond the control of such Employee, Independent
Director or Consultant.

                  (e) Shares of Common Stock shall be issuable pursuant to a
Deferred Stock Unit award upon the Unforeseeable Emergency of an Employee,
Independent Director or Consultant only if, as determined under Regulations of
the Secretary of the Treasury, the amounts to be distributed through the
issuance of shares of Common Stock pursuant to such Deferred Stock Unit Award
with respect to such Unforeseeable Emergency do not exceed the amounts necessary
to satisfy such Unforeseeable Emergency, plus amounts necessary to pay taxes
reasonably anticipated as a result of the distribution, after taking into
account the extent to which such Unforeseeable Emergency is or may be relieved
through reimbursement or compensation by insurance or otherwise, or by
liquidation of the assets of such Employee Independent Director or Consultant
(to the extent the liquidation of such assets would not itself cause severe
financial hardship).

         8.3. Issuance of Common Stock; Rights as Stockholder. Shares of Common
Stock underlying a Deferred Stock Unit award will not be issued until the
Deferred Stock Unit award has vested, pursuant to a vesting schedule or
performance goals set by the Administrator, and such shares of Common Stock
become issuable pursuant to the terms of the Deferred Stock Unit award. Unless
otherwise provided by the Administrator, a Holder of a Deferred Stock Unit award
shall have no rights as a Company stockholder with respect to the shares of
Common Stock underlying such Deferred Stock Unit award until such time as the
Award has vested and the Shares of Common Stock underlying the Award have been
issued pursuant to the Deferred Stock Unit award.

         8.4. Form of Payment. Payment of the amount determined under Section
8.2(b) above shall be in cash, in Common Stock or a combination of both, as
determined by the Administrator.

                                       18
<PAGE>

         8.5. Deferred Distributions.

                  (a) The Administrator may provide for the deferral of the
issuance of the shares of Common Stock issuable pursuant to a Deferred Stock
Unit award at the election of the Employee, Director or Consultant to whom the
Award is to be or has been awarded in accordance with this Section.

                  (b)      (i) Subject to paragraph (ii), any election of an
Employee, Independent Director or Consultant to defer the issuance of the shares
of Common Stock issuable pursuant to a Deferred Stock Unit award shall be made
not later than the close of the taxable year preceding the first taxable year in
which such Employee, Independent Director or Consultant performs services for
such Deferred Stock Unit award.

                           (ii) In the case of the first year in which an
         Employee, Independent Director or Consultant becomes eligible to
         participate in the Plan, any election of such Employee, Independent
         Director or Consultant to defer the issuance of the shares of Common
         Stock issuable pursuant to a Deferred Stock Unit award may be made with
         respect to services to be performed subsequent to the election within
         thirty (30) days after the date such Employee, Independent Director or
         Consultant becomes eligible to participate in the Plan.

                  (c) An Employee, Independent Director or Consultant may elect,
under such terms as the Administrator shall determine in its sole discretion, to
receive the shares of Common Stock issuable pursuant to a Deferred Stock Unit
award upon one or more of the following events:

                           (i) a date specified in such election,

                           (ii) the Termination of Consultancy, Termination of
         Directorship or Termination of Employment of such Employee, Independent
         Director or Consultant,

                           (iii) an Unforeseeable Emergency of such Employee,
         Independent Director or Consultant; or

                           (iv) a Change in Control;

provided, however, in the case of an Employee, Independent Director or
Consultant who is a "key employee" as defined in Code Section 416(i) (determined
without regard to paragraph (5) thereof) of the Company, the issuance of the
shares of Common Stock issuable pursuant to Termination of Consultancy,
Termination of Directorship or Termination of Employment shall not be made
before the date which is six (6) months after the date of such Termination of
Consultancy, Termination of Directorship or Termination of Employment.

                  (d) A deferral election made by an Employee, Independent
Director or Consultant with respect to a Deferred Stock Unit award shall be
irrevocable and shall not be amended, modified or terminated by such Employee,
Independent Director or Consultant.

                                       19
<PAGE>

         8.6. Prohibition on Acceleration of Distributions. The terms regarding
the issuance of the shares of Common Stock issuable pursuant to a Deferred Stock
Unit award shall not be amended, modified or terminated in any manner, which
permits the acceleration of the time or schedule of such issuance of shares of
Common Stock.

         8.7. Unfunded Obligations. Deferred Stock Units are unfunded and
unsecured obligations of the Company, and nothing contained in the Plan or in
any Award Agreement shall be construed as providing for assets to be held in
trust or escrow or any other form of segregation of the assets of the Company
for the benefit of the Holder of such Deferred Stock Units or any other person.

         8.8. Conditions to Issuance of Shares of Common Stock. The Company
shall not be required to issue or deliver any certificate or certificates for
shares of Common Stock issuable pursuant to the terms of a Deferred Stock Unit
award prior to fulfillment of all of the conditions set forth in Section 6.3.

         8.9. Limitation of Distributions. Notwithstanding the provisions of
Sections 8.2, 8.5, 10.2 and 10.3, shares of Common Stock shall be issuable
pursuant to a Deferred Stock Unit award at such times or upon such events as are
specified in Sections 8.2 and 8.5 and the terms of the Award Agreement (and
shares of Common Stock or other amounts shall be issuable or distributable with
respect to such an Award under the terms of Section 10.2 or 10.3) only to the
extent the issuance or distribution at such times or upon such events under such
terms will not cause the Award or the shares of Common Stock issuable pursuant
to the Award (or other amounts issuable or distributable) to be includable in
the gross income of the Holder under Section 409A of the Code prior to such
times or occurrence of such events, as permitted by the Code and the regulations
and other guidance thereunder (including, without limitation, Section 409A of
the Code, and the regulations and other guidance issued by the Secretary of the
Treasury thereunder).

                                   ARTICLE IX.

                                 ADMINISTRATION

         9.1. Committee. The Compensation Committee (or another committee or a
subcommittee of the Board assuming the functions of the Committee under the
Plan) shall consist solely of two or more Independent Directors appointed by and
holding office at the pleasure of the Board. Appointment of Committee members
shall be effective upon acceptance of appointment. Committee members may resign
at any time by delivering written notice to the Board. Vacancies in the
Committee may be filled by the Board.

         9.2. Duties and Powers of Committee. It shall be the duty of the
Committee to conduct the general administration of the Plan in accordance with
its provisions. The Committee shall have the power to interpret the Plan and the
Award Agreements, and to adopt such rules for the administration, interpretation
and application of the Plan as are consistent therewith, to interpret, amend or
revoke any such rules. The Committee shall also have the power to amend any
Award Agreement provided that the rights or obligations of the Holder of the
Award that is the subject of any such Award Agreement are not affected
adversely; provided, however, that

                                       20
<PAGE>

without the approval of the stockholders of the Company, neither the Committee
nor the Board shall authorize the amendment of any outstanding Option to reduce
its exercise price. Notwithstanding anything contained herein, no Option shall
be canceled and replaced with the grant of an Option having a lesser exercise
price without the approval of the stockholders of the Company. Grants of Options
under the Plan need not be the same with respect to each Holder. In its absolute
discretion, the Board may at any time and from time to time exercise any and all
rights and duties of the Committee under the Plan.

         9.3. Majority Rule; Unanimous Written Consent. The Committee shall act
by a majority of its members in attendance at a meeting at which a quorum is
present or by a memorandum or other written instrument signed by all members of
the Committee.

         9.4. Compensation; Professional Assistance; Good Faith Actions. Members
of the Committee shall receive such compensation, if any, for their services as
members as may be determined by the Board. All expenses and liabilities which
members of the Committee incur in connection with the administration of the Plan
shall be borne by the Company. The Committee may, with the approval of the
Board, employ attorneys, consultants, accountants, appraisers, brokers or other
persons. The Committee, the Company and the Company's officers and Directors
shall be entitled to rely upon the advice, opinions or valuations of any such
persons. All actions taken and all interpretations and determinations made by
the Committee or the Board in good faith shall be final and binding upon all
Holders, the Company and all other interested persons. No members of the
Committee or Board shall be personally liable for any action, determination or
interpretation made in good faith with respect to the Plan or Awards, and all
members of the Committee and the Board shall be fully protected by the Company
in respect of any such action, determination or interpretation.

         9.5. Delegation of Authority to Grant Awards. The Board may, but need
not, delegate from time to time some or all of its authority to grant Awards
under the Plan to a committee consisting of one or more members of the Committee
or of one or more officers of the Company; provided, however, that the Board may
not delegate its authority to grant Awards to individuals (a) who are subject on
the date of the grant to the reporting rules under Section 16(a) of the Exchange
Act, or (b) who are officers of the Company who are delegated authority by the
Board hereunder. Any delegation hereunder shall be subject to the restrictions
and limits that the Committee specifies at the time of such delegation of
authority and may be rescinded at any time by the Committee. At all times, any
committee appointed under this Section 9.5 shall serve in such capacity at the
pleasure of the Committee.

                                   ARTICLE X.

                            MISCELLANEOUS PROVISIONS

         10.1. Transferability of Awards.

                  (a) Except as otherwise provided in Section 10.1(b):

                           (i) No Award or interest or right therein may be
         sold, pledged, assigned or transferred in any manner other than by will
         or the laws of descent

                                       21
<PAGE>

         and distribution or, subject to the consent of the Administrator,
         pursuant to a DRO; provided, however, after the shares underlying an
         Award have been issued, and all restrictions applicable to such shares
         have terminated or lapsed, then such shares may be sold, pledged,
         assigned or transferred;

                           (ii) The interest or rights of a Holder, or his or
         her successors in interest, in an Award shall not be subject to any
         liability for the debts, contracts or engagements of the Holder or his
         or her successors in interest, and no Award or interest or right
         therein shall be subject to disposition by transfer, alienation,
         anticipation, pledge, encumbrance, assignment or any other means
         whether such disposition be voluntary or involuntary or by operation of
         law by judgment, levy, attachment, garnishment or any other legal or
         equitable proceedings (including bankruptcy), and any attempted
         disposition thereof shall be null and void and of no effect, except to
         the extent that such disposition is permitted by paragraph (i); and

                           (iii) During the lifetime of the Holder, only he or
         she may exercise an Option (or any portion thereof) granted to him or
         her under the Plan, unless it has been disposed of pursuant to a DRO or
         to a Permitted Transferee. After the death of the Holder, any
         exercisable portion of an Option may, prior to the time when such
         portion becomes unexercisable under the Plan or the applicable Award
         Agreement, be exercised by his personal representative or by any person
         empowered to do so under the deceased Holder's will or under the then
         applicable laws of descent and distribution.

                  (b) Notwithstanding Section 10.1(a), the Administrator, in its
sole discretion, may determine to permit a Holder to transfer a Non-Qualified
Stock Option to any one or more Permitted Transferees (as defined below),
subject to the following terms and conditions: (i) a Non-Qualified Stock Option
transferred to a Permitted Transferee shall not be assignable or transferable by
the Permitted Transferee other than by will or the laws of descent and
distribution; (ii) any Non-Qualified Stock Option which is transferred to a
Permitted Transferee shall continue to be subject to all the terms and
conditions of the Non-Qualified Stock Option as applicable to the original
Holder (other than the ability to further transfer the Non-Qualified Stock
Option); and (iii) the Holder and the Permitted Transferee shall execute any and
all documents requested by the Administrator, including, without limitation
documents to (A) confirm the status of the transferee as a Permitted Transferee,
(B) satisfy any requirements for an exemption for the transfer under applicable
federal and state securities laws and (C) evidence the transfer. For purposes of
this Section 10.1(b), "Permitted Transferee" shall mean, with respect to a
Holder, any child, stepchild, grandchild, parent, stepparent, grandparent,
spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law,
son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including
adoptive relationships, any person sharing the Holder's household (other than a
tenant or employee), a trust in which these persons (or the Holder) control the
management of assets, and any other entity in which these persons (or the
Holder) own more than fifty percent (50%) of the voting interests, or any other
transferee specifically approved by the Administrator after taking into account
any state or federal tax or securities laws applicable to transferable
Non-Qualified Stock Options.

                                       22
<PAGE>

         10.2. Amendment Suspension or Termination of the Plan. Except as
otherwise provided in this Section 10.2, the Plan may be wholly or partially
amended or otherwise modified, suspended or terminated at any time or from time
to time by the Board. However, without approval of the Company's stockholders
before or after the action by the Board, no action of the Board may, except as
provided in Section 10.3, increase the limits imposed in Section 2.1 on the
maximum number of shares which may be issued under the Plan, and no action of
the Board may be taken that would otherwise require approval by the Company's
stockholders as a matter of applicable law, regulation or rule. No amendment,
suspension or termination of the Plan shall, without the consent of the Holder,
alter or impair any rights or obligations under any Award theretofore granted or
awarded, unless the Award itself otherwise expressly so provides. No Awards may
be granted or awarded during any period of suspension or after termination of
the Plan, and in no event may any Award be granted under the Plan after the
expiration of ten (10) years from the date the Plan is adopted by the Board.

         10.3. Changes in Common Stock or Assets of the Company, Acquisition or
Liquidation of the Company and Other Corporate Events.

                  (a) Subject to Section 10.3(d), in the event that any dividend
or other distribution (whether in the form of cash, Common Stock, other
securities or other property), recapitalization, reclassification, stock split,
reverse stock split, reorganization, merger, consolidation, split-up, spin-off,
combination, repurchase, liquidation, dissolution, or sale, transfer, exchange
or other disposition of all or substantially all of the assets of the Company,
or exchange of Common Stock or other securities of the Company, issuance of
warrants or other rights to purchase Common Stock or other securities of the
Company, or other similar corporate transaction or event affects the Common
Stock such that an adjustment is appropriate in order to prevent dilution or
enlargement of the benefits or potential benefits intended to be made available
under the Plan or with respect to an Award, then the Administrator shall adjust
the following, as appropriate and equitable:

                           (i) The number and kind of shares of Common Stock (or
         other securities or property) with respect to which Awards may be
         granted or awarded (including, but not limited to, adjustments of the
         limitations in Section 2.1 on the maximum number and kind of shares
         which may be issued and the Award Limit);

                           (ii) The number and kind of shares of Common Stock
         (or other securities or property) subject to outstanding Awards; and

                           (iii) The exercise price with respect to any Award;

provided, however, that no such adjustment shall be made in the event of
ordinary cash dividends with respect to the Common Stock.

                  (b) Subject to Section 10.3(d), in the event of a Change in
Control, or any transaction or event described in Section 10.3(a), or any
unusual or nonrecurring transactions or events affecting the Company, any
affiliate of the Company, or the financial statements of the Company or any
affiliate, or of changes in applicable laws, regulations or accounting
principles, the Administrator, in its sole and absolute discretion, and on such
terms and conditions as it

                                       23
<PAGE>

deems appropriate, either by the terms of the Award or by action taken prior to
the occurrence of such transaction or event and either automatically or upon the
Holder's request, is hereby authorized to take any one or more of the following
actions whenever the Administrator determines that such action is appropriate
and equitable in order to prevent dilution or enlargement of the benefits or
potential benefits intended to be made available under the Plan or with respect
to any Award under the Plan, to facilitate such transactions or events or to
give effect to such changes in laws, regulations or principles:

                           (i) To provide for either the purchase of such Award
         for an amount of cash equal to the amount that could have been obtained
         upon the exercise, vesting or distribution of such Award, or
         realization of the Holder's rights under such Award, had such Award
         been currently and fully exercisable or distributable for all of the
         shares subject thereto and had all of the shares subject to such Award
         been currently and fully vested or distributable and had any and all
         restrictions on such shares currently and fully terminated and lapsed;

                           (ii) To provide that such Award cannot be exercised
         on or after such Change in Control, transaction or event; provided,
         however, that, immediately prior to such Change in Control, transaction
         or event, (A) any such Award shall automatically become fully vested
         and exercisable for any and all of the shares at the time subject to
         such Award and shall be exercisable for any or all of those shares as
         fully-vested shares, and (B) any and all of the restricted shares
         granted or purchased pursuant to any Award shall automatically cease to
         be subject to any and all restrictions on such shares and such
         restrictions shall terminate and lapse;

                           (iii) To provide that such Award shall be
         exercisable, vested and/or distributable as to any and all shares
         covered thereby, notwithstanding anything to the contrary in Section
         5.3 or 5.4 or the provisions of such Award;

                           (iv) To provide that such Award shall be assumed by
         the successor or survivor corporation (or a parent thereof), or shall
         be substituted for by comparable rights with respect to the capital
         stock of the successor or survivor corporation (or a parent thereof),
         with appropriate and equitable adjustments as to the number and kind of
         shares and prices;

                           (v) To make adjustments in the number and type of
         shares of Common Stock (or other securities or property) subject to
         such Award; and

                           (vi) To provide that such restrictions imposed under
         such Award upon any and all shares purchased upon exercise of the
         Award, and any and all of shares granted or awarded pursuant to the
         Award, shall terminate and lapse.

                  (c) The Company shall provide all Holders, in the event of any
Change in Control (other than a Change in Control described in Section 1.5(a) or
(b)) or any other transaction or event described in Section 10.3(b), with:

                                       24
<PAGE>

                           (i) twenty (20) days' prior written notice (or such
         lesser prior written notice as the Administrator determines, in its
         discretion, is appropriate or administratively practicable under the
         circumstances) of:

                  (A) any such Change in Control; and

                  (B) in the event of any such Change in Control or any other
         such transaction or event, the action, if any, which the Administrator
         intends to take under Section 10.3(b); provided that no notice shall be
         required under this subparagraph (B) if the Administrator does not
         intend to take any action under Section 10.3(b); and

                           (ii) an opportunity to exercise each outstanding
         Award held by such Holder, to the extent such Award is exercisable
         pursuant to the terms hereof or thereof, which exercise may be
         conditioned on the consummation of such Change in Control, transaction
         or event.

                  (d) No such adjustment or action shall be authorized to the
extent such adjustment or action would result in short-swing profits liability
under Section 16 or violate the exemptive conditions of Rule 16b-3 unless the
Administrator determines that the Award is not to comply with such exemptive
conditions. The number of shares of Common Stock subject to any Award shall
always be rounded to the next whole number.

                  (e) The existence of the Plan, the Award Agreement and the
Awards granted hereunder shall not affect or restrict in any way the right or
power of the Company or the stockholders of the Company to make or authorize any
adjustment, recapitalization, reorganization or other change in the Company's
capital structure or its business, any merger or consolidation of the Company,
any issue of stock or of options, warrants or rights to purchase stock or of
bonds, debentures, preferred or prior preference stocks whose rights are
superior to or affect the Common Stock or the rights thereof or which are
convertible into or exchangeable for 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, whether of a
similar character or otherwise.

         10.4. Tax Withholding. The Company shall be entitled to require payment
in cash or deduction from other compensation payable to each Holder of any sums
required by federal, state or local tax law to be withheld with respect to the
issuance, vesting, exercise or payment of any Award. The Administrator may in
its discretion and in satisfaction of the foregoing requirement allow such
Holder to elect to have the Company withhold shares of Common Stock otherwise
issuable under such Award (or allow the return of shares of Common Stock) having
a Fair Market Value equal to the sums required to be withheld or, to the extent
allowed by applicable laws, elect to pay such sums through the delivery of a
notice that Holder has placed a market sell order with a broker with respect to
shares of Common Stock subject to issuance, vesting, or payment under such Award
and that the broker has been directed to pay a sufficient portion of the net
proceeds of the sale to the Company in satisfaction of such tax withholding.
Notwithstanding any other provision of the Plan, the number of shares of Common
Stock which may be withheld with respect to the issuance, vesting, exercise or
payment of any

                                       25
<PAGE>

Award (or which may be repurchased from the Holder of such Award within six
months after such shares of Common Stock were acquired by the Holder from the
Company) in order to satisfy the Holder's federal and state income and payroll
tax liabilities with respect to the issuance, vesting, exercise or payment of
the Award shall be limited to the number of shares which have a Fair Market
Value on the date of withholding or repurchase equal to the aggregate amount of
such liabilities based on the minimum statutory withholding rates for federal
and state tax income and payroll tax purposes that are applicable to such
supplemental taxable income.

         10.5. Loans. The Administrator may, in its discretion, extend one or
more loans to key Employees in connection with the exercise of an Award granted
under the Plan, or the issuance of restricted Common Stock upon the exercise of
an Option. The terms and conditions of any such loan shall be set by the
Administrator. Notwithstanding the foregoing, no loan shall be made to an
Employee, Consultant or Director under this Section 10.5 to the extent such loan
shall result in an extension or maintenance of credit, an arrangement for the
extension of credit, or a renewal of an extension of credit in the form of a
personal loan to or for any Director or executive officer of the Company that is
prohibited by Section 13(k) of the Exchange Act or other applicable law. In the
event that the Administrator determines in its discretion that any loan under
this Section 10.5 may be or will become prohibited by Section 13(k) of the
Exchange Act or other applicable law, the Administrator may provide that such
loan shall be immediately due and payable in full and may take any other action
in connection with such loan as the Administrator determines in its discretion
to be necessary or appropriate for the repayment, cancellation or extinguishment
of such loan.

         10.6. Effect of Plan upon Compensation Plans. The adoption of the Plan
shall not affect any other compensation or incentive plans in effect for the
Company or any Subsidiary. Nothing in the Plan shall be construed to limit the
right of the Company (a) to establish any other forms of incentives or
compensation for Employees, Consultants or Directors of the Company or any
Subsidiary, or (b) to grant or assume options or other rights or awards
otherwise than under the Plan in connection with any proper corporate purpose
including but not by way of limitation, the grant or assumption of options in
connection with the acquisition by purchase, lease, merger, consolidation or
otherwise, of the business, stock or assets of any corporation, partnership,
limited liability company, firm or association.

         10.7. Compliance with Laws. The Plan, the granting and vesting of
Awards under the Plan and the issuance and delivery of shares of Common Stock
and the payment of money under the Plan or under Awards granted or awarded
hereunder are subject to compliance with all applicable federal and state laws,
rules and regulations (including but not limited to state and federal securities
law and federal margin requirements) and to such approvals by any listing,
regulatory or governmental authority as may, in the opinion of counsel for the
Company, be necessary or advisable in connection therewith. Any securities
delivered under the Plan shall be subject to such restrictions, and the person
acquiring such securities shall, if requested by the Company, provide such
assurances and representations to the Company as the Company may deem necessary
or desirable to assure compliance with all applicable legal requirements. To the
extent permitted by applicable law, the Plan and Awards granted or awarded
hereunder shall be deemed amended to the extent necessary to conform to such
laws, rules and regulations.

                                       26
<PAGE>

         10.8. Stockholder Approval. The Plan is effective on the date it is
approved by the Board without regard to stockholder approval. The Company may,
but is not required to, submit the Plan for stockholder approval.

         10.9. Titles. Titles are provided herein for convenience only and are
not to serve as a basis for interpretation or construction of the Plan.

         10.10. Governing Law. The Plan and any agreements hereunder shall be
administered, interpreted and enforced under the internal laws of the State of
Delaware without regard to conflicts of laws thereof.

                                       27

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