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                                                                    Exhibit 10.1

                              AMENDED AND RESTATED
                            PRICE LEGACY CORPORATION
                      2001 STOCK OPTION AND INCENTIVE PLAN

                       (ORIGINALLY ADOPTED APRIL 12, 2001;
                 AMENDED AND RESTATED AS OF SEPTEMBER 20, 2001)

         Price Legacy Corporation (formerly Price Enterprises, Inc.), a Maryland
corporation, adopted the Price Enterprises, Inc. 2001 Stock Option and Incentive
Plan, effective April 12, 2001, for the benefit of its eligible Employees,
Consultants and Directors, subject to approval of the Plan by the Company's
stockholders. The date on which Options first became issuable under the Plan was
September 18, 2001. The Plan has been amended and restated as of September 20,
2001 and renamed the Amended and Restated Price Legacy Corporation 2001 Stock
Option and Incentive Plan (the "Plan").

         The purposes of the Plan are as follows:

         (1) To provide an additional incentive for Directors, key Employees and
Consultants (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
Directors, key Employees and Consultants considered essential to the long range
success of the Company by offering them an opportunity to own stock in the
Company and/or rights 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.

         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 assumed the
authority for administration of the Plan generally as provided in Section 10.1.

         1.2.  "AWARD" shall mean an Option, a Restricted Stock award, a
Performance Award, a Dividend Equivalents award, a Deferred Stock award, a Stock
Payment award or a Stock Appreciation Right which may be awarded or granted
under the Plan (collectively, "Awards").

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         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 1,000,000 shares of Common Stock, as
adjusted pursuant to Section 11.3; PROVIDED, HOWEVER, that solely with respect
to Performance Awards granted pursuant to Section 8.2(b), Award Limit shall mean
$1,000,000.

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

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

         1.7.  "COMMITTEE" shall mean the Compensation Committee of the Board,
or another committee or subcommittee of the Board, appointed as provided in
Section 10.1.

         1.8.  "COMMON STOCK" shall mean the common stock of the Company, par
value $0.0001 per share.

         1.9.  "COMPANY" shall mean Price Legacy Corporation, a Maryland
corporation.

         1.10. "CONSULTANT" shall mean any consultant or adviser if:

               (a) The consultant or adviser renders bona fide services to
         the Company;

               (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 to render such services.

         1.11. "DEFERRED STOCK" shall mean Common Stock awarded under Article
VIII of the Plan.

         1.12. "DIRECTOR" shall mean a member of the Board.

         1.13. "DIVIDEND EQUIVALENT" shall mean a right to receive the
equivalent value (in cash or Common Stock) of dividends paid on Common Stock,
awarded under Article VIII of the Plan.

         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.

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         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 Common Stock is not publicly traded on an exchange and not quoted on
Nasdaq or a successor 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 or awarded 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
designated as an Incentive Stock Option by the Administrator.

         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. "PERFORMANCE AWARD" shall mean a cash bonus, stock bonus or other
performance or incentive award that is paid in cash, Common Stock or a
combination of both, awarded under Article VIII of the Plan.

         1.24. "PERFORMANCE CRITERIA" shall mean the following business criteria
with respect to the Company, any Subsidiary or any division or operating unit:
(a) net income, (b) pre-tax income, (c) operating income, (d) cash flow, (e)
earnings per share, (f) return on equity, (g) return on invested capital or
assets, (h) cost reductions or savings, (i) funds from operations, (j)
appreciation in the fair market value of Common Stock, and (k) earnings before
any one or more of the following items: interest, taxes, depreciation or
amortization.

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         1.25. "PLAN" shall mean this Amended and Restated Price Legacy
Corporation 2001 Stock Option and Incentive Plan.

         1.26. "RESTRICTED STOCK" shall mean Common Stock awarded under Article
VII of the Plan.

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

         1.28. "SECTION 162(M) PARTICIPANT" shall mean any key Employee
designated by the Administrator as a key Employee whose compensation for the
fiscal year in which the key Employee is so designated or a future fiscal year
may be subject to the limit on deductible compensation imposed by Section 162(m)
of the Code.

         1.29. "SECURITIES ACT" shall mean the Securities Act of 1933, as
amended.

         1.30. "STOCK APPRECIATION RIGHT" shall mean a stock appreciation right
granted under Article IX of the Plan.

         1.31. "STOCK PAYMENT" shall mean (a) a payment in the form of shares of
Common Stock, or (b) an option or other right to purchase shares of Common
Stock, as part of a deferred compensation arrangement, made in lieu of all or
any portion of the compensation, including without limitation, salary, bonuses
and commissions, that would otherwise become payable to a key Employee or
Consultant in cash, awarded under Article VIII of the Plan.

         1.32. "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.

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

         1.34. "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 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 discharge for good cause, and all
questions of whether a particular leave of absence constitutes a Termination of
Consultancy. Notwithstanding any other provision of the Plan, the Company or any
Subsidiary has an absolute and unrestricted right to terminate a

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Consultant's service at any time for any reason whatsoever, with or without
cause, except to the extent expressly provided otherwise in writing.

         1.35. "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, failure
to be elected, death or retirement. The Board, in its sole and absolute
discretion, shall determine the effect of all matters and questions relating to
Termination of Directorship with respect to Independent Directors.

         1.36. "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 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,
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.

               (a) The shares of stock subject to Awards shall be the
         Company's Common Stock. Subject to adjustment as provided in Section
         11.3, the aggregate number of such shares which may be issued upon
         exercise of such Options or rights or upon any such Awards under the
         Plan shall not exceed 3,000,000 (the "Aggregate Limit"). The shares of
         Common Stock issuable upon exercise of such Options or rights or upon
         any such awards may be either previously authorized but unissued shares
         or treasury shares.

               (b) The Aggregate Limit shall automatically increase on
         January 1 of each calendar year during the term of the Plan, commencing
         on January 1, 2002, by an amount equal to 10% of the Aggregate Limit in
         effect for

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         the immediately preceding calendar year; PROVIDED, HOWEVER, that in no
         event shall the Aggregate Limit exceed 5,000,000.

               (c) The maximum number of shares 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 subject to Options which are canceled
         continue to be counted against the Award Limit.

         2.2.  ADD-BACK OF OPTIONS AND OTHER RIGHTS. If any Option, or other
right to acquire shares of Common Stock under any other Award under the Plan,
expires or is canceled without having been fully exercised, or is exercised in
whole or in part for cash as permitted by the Plan, the number of shares subject
to such Option or other right but as to which such Option or other right was not
exercised prior to its expiration, cancellation or exercise may again be
optioned, granted or awarded hereunder, subject to the limitations of Section
2.1. Furthermore, any shares subject to Awards which are adjusted pursuant to
Section 11.3 and become exercisable with respect to shares of stock of another
corporation shall be considered cancelled and may again be optioned, 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 price thereof
or tax withholding thereon, may again be optioned, granted or awarded 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 optioned, 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 Awards intended to qualify as
performance-based compensation as described in Section 162(m)(4)(C) of the Code
shall contain such terms and conditions as may be necessary to meet the
applicable provisions of Section 162(m) of the Code. 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.

         3.2.  PROVISIONS APPLICABLE TO SECTION 162(M) PARTICIPANTS.

               (a) The Committee, in its discretion, may determine whether an
         Award is to qualify as performance-based compensation as described in
         Section 162(m)(4)(C) of the Code.

               (b) Notwithstanding anything in the Plan to the contrary, the
         Committee may grant any Award to a Section 162(m) Participant,
         including

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         Restricted Stock the restrictions with respect to which lapse upon the
         attainment of performance goals which are related to one or more of the
         Performance Criteria and any performance or incentive award described
         in Article VIII that vests or becomes exercisable or payable upon the
         attainment of performance goals which are related to one or more of the
         Performance Criteria.

               (c) To the extent necessary to comply with the performance-based
         compensation requirements of Section 162(m)(4)(C) of the Code, with
         respect to any Award granted under Articles VII and VIII which may be
         granted to one or more Section 162(m) Participants, no later than
         ninety (90) days following the commencement of any fiscal year in
         question or any other designated fiscal period or period of service (or
         such other time as may be required or permitted by Section 162(m) of
         the Code), the Committee shall, in writing, (i) designate one or more
         Section 162(m) Participants, (ii) select the Performance Criteria
         applicable to the fiscal year or other designated fiscal period or
         period of service, (iii) establish the various performance targets, in
         terms of an objective formula or standard, and amounts of such Awards,
         as applicable, which may be earned for such fiscal year or other
         designated fiscal period or period of service, and (iv) specify the
         relationship between Performance Criteria and the performance targets
         and the amounts of such Awards, as applicable, to be earned by each
         Section 162(m) Participant for such fiscal year or other designated
         fiscal period or period of service. Following the completion of each
         fiscal year or other designated fiscal period or period of service, the
         Committee shall certify in writing whether the applicable performance
         targets have been achieved for such fiscal year or other designated
         fiscal period or period of service. In determining the amount earned by
         a Section 162(m) Participant, the Committee shall have the right to
         reduce (but not to increase) the amount payable at a given level of
         performance to take into account additional factors that the Committee
         may deem relevant to the assessment of individual or corporate
         performance for the fiscal year or other designated fiscal period or
         period of service.

               (d) Furthermore, notwithstanding any other provision of the
         Plan, any Award which is granted to a Section 162(m) Participant and is
         intended to qualify as performance-based compensation as described in
         Section 162(m)(4)(C) of the Code shall be subject to any additional
         limitations set forth in Section 162(m) of the Code (including any
         amendment to Section 162(m) of the Code) or any regulations or rulings
         issued thereunder that are requirements for qualification as
         performance-based compensation as described in Section 162(m)(4)(C) of
         the Code, and the Plan shall be deemed amended to the extent necessary
         to conform to such requirements.

         3.3.  LIMITATIONS APPLICABLE TO SECTION 16 PERSONS. Notwithstanding any
other provision of the Plan, the Plan, and any Award granted or awarded 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

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exemptive rule. 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 applicable exemptive rule.

         3.4.  CONSIDERATION. In consideration of the granting of an Award under
the Plan, the Holder shall agree, in the Award Agreement, to remain in the
employ of (or to consult for or to serve as an Independent Director of, as
applicable) the Company or any Subsidiary for a period of at least one year (or
such shorter period as may be fixed in the Award Agreement or by action of the
Administrator following grant of the Award) after the Award is granted (or, in
the case of an Independent Director, until the next annual meeting of
stockholders of the Company).

         3.5.  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,
or as a Consultant for, the Company or any Subsidiary, or as a director of the
Company, 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, with or without cause, except
to the extent expressly provided otherwise in a written employment agreement
between the Holder and the Company and any Subsidiary.

                                  ARTICLE IV.

                        GRANTING OF OPTIONS TO EMPLOYEES
                            AND INDEPENDENT DIRECTORS

         4.1.  ELIGIBILITY. Any Employee or Consultant selected by the Committee
pursuant to Section 4.4(a)(i) shall be eligible to be granted an Option. Each
Independent Director of the Company shall be eligible to be granted Options at
the times and in the manner set forth in Section 4.5.

         4.2.  DISQUALIFICATION FOR STOCK OWNERSHIP. No person 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 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 422 of
the Code) unless such Incentive Stock Option conforms to the applicable
provisions of Section 422 of the Code.

         4.3.  QUALIFICATION OF INCENTIVE STOCK OPTIONS. No Incentive Stock
Option shall be granted to any person who is not an Employee.

         4.4.  GRANTING OF OPTIONS TO EMPLOYEES AND CONSULTANTS.

               (a) The Committee 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

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           Employees or Consultants who have previously received Awards under
           the Plan) such of them as in its opinion should be granted Options;

                  (ii)   Subject to the Award Limit, determine the number of
           shares to be subject to such Options granted to the selected key
           Employees or Consultants;

                  (iii)  Subject to Section 4.3, determine whether such Options
           are to be Incentive Stock Options or Non-Qualified Stock Options and
           whether such Options are to qualify as performance-based compensation
           as described in Section 162(m)(4)(C) of the Code; and

                  (iv)   Determine the terms and conditions of such Options,
           consistent with the Plan; PROVIDED, HOWEVER, that the terms and
           conditions of Options intended to qualify as performance-based
           compensation as described in Section 162(m)(4)(C) of the Code shall
           include, but not be limited to, such terms and conditions as may be
           necessary to meet the applicable provisions of Section 162(m) of the
           Code.

               (b) Upon the selection of a key Employee or Consultant to be
         granted an Option, the Committee 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.

               (c) Any Incentive Stock Option granted under the Plan may be
         modified by the Committee, with the consent of the Holder, to
         disqualify such Option from treatment as an "incentive stock option"
         under Section 422 of the Code.

         4.5.  GRANTING OF OPTIONS TO INDEPENDENT DIRECTORS.

               (a) Each Independent Director who is elected or reelected to
         the Board at the 2001 annual meeting of the Company's stockholders
         shall be granted an Option to purchase 10,000 shares of Common Stock
         (subject to adjustment as provided in Section 11.3 of the Plan). Each
         other person who becomes an Independent Director during the term of the
         Plan shall be granted an Option to purchase 10,000 shares of Common
         Stock (subject to adjustment as provided in Section 11.3) on the date
         such Independent Director is first elected or appointed to the Board.

               (b) Commencing with each annual meeting of the Company's
         stockholders subsequent to the 2001 annual meeting of the Company's
         stockholders, each Independent Director who is reelected to the Board
         during the term of the Plan shall receive an Option to purchase 5,000
         shares of Common Stock (subject to adjustment as provided in Section
         11.3).

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         4.6.  OPTIONS IN LIEU OF CASH COMPENSATION. Options may be granted
under the Plan to Employees and Consultants in lieu of cash bonuses which would
otherwise be payable to such Employees and Consultants and to Independent
Directors in lieu of directors' fees which would otherwise be payable to such
Independent Directors, pursuant to such policies which may be adopted by the
Administrator from time to time.

                                   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 no less than 85% of the
Fair Market Value of a share of Common Stock on the date the Option is granted
and:

               (a) In the case of Options intended to qualify as
         performance-based compensation as described in Section 162(m)(4)(C) of
         the Code, such price shall not be less than 100% of the Fair Market
         Value of a share of Common Stock on the date the Option is granted;

               (b) In the case of Incentive Stock Options such price shall
         not be less than 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);

               (c) In the case of Incentive Stock Options granted to an
         individual then owning (within the meaning of Section 424(d) of the
         Code) more than 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 422 of the Code), such price shall not
         be less than 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).

         5.2.  OPTION TERM. The term of an Option granted to an Employee or
Consultant shall be set by the Committee in its discretion; PROVIDED, HOWEVER,
that, in the case of Incentive Stock Options, the term shall not be more than 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 individual then owning (within the meaning of Section 424(d) of
the Code) more than 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 422 of the Code). Except as limited by requirements of
Section 422 of the Code and regulations and rulings thereunder applicable to
Incentive Stock Options, the Committee may extend the term of any outstanding
Option in connection with any Termination of Employment or Termination of
Consultancy of the Holder, or amend any other term or condition of such Option
relating to such a termination.

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         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 Committee and the Committee 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
         Committee 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 Committee
         either in the Award Agreement or by action of the Committee following
         the grant of the Option.

               (c) To the extent that the aggregate Fair Market Value of
         stock with respect to which "incentive stock options" (within the
         meaning of Section 422 of the Code, but without regard to Section
         422(d) of the Code) are exercisable for the first time by a Holder
         during any calendar year (under the Plan and all other incentive stock
         option plans of the Company and any parent or subsidiary corporation,
         within the meaning of Section 422 of the Code) of the Company, exceeds
         $100,000, such Options shall be treated as Non-Qualified Stock Options
         to the extent required by Section 422 of the Code. The rule set forth
         in the preceding sentence shall be applied by taking Options into
         account in the order in which they were granted. For purposes of this
         Section 5.3(c), the Fair Market Value of stock shall be determined as
         of the time the Option with respect to such stock is granted.

         5.4.  TERMS OF OPTIONS GRANTED TO INDEPENDENT DIRECTORS. The price per
share of the shares subject to each Option granted to an Independent Director
shall equal 100% of the Fair Market Value of a share of Common Stock on the date
the Option is granted. Options granted to Independent Directors shall be 100%
vested and immediately exercisable on the date the Option is granted. Subject to
Section 6.6, the term of each Option granted to an Independent Director shall be
10 years from the date the Option is granted.

         5.5.  SUBSTITUTE AWARDS. Notwithstanding 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 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:

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               (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 Committee) 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 his or her office:

               (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 11.1 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
         a delay in payment up to 30 days from the date the Option, or portion
         thereof, is exercised; (ii) 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;
         (iii) allow payment, in whole or in part, through the surrender of
         shares of Common Stock

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<Page>

         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; (iv) allow payment, in whole
         or in part, through the delivery of property of any kind which
         constitutes good and valuable consideration; (v) allow payment, in
         whole or in part, through the delivery of a full recourse promissory
         note bearing interest (at no less than such rate as shall then preclude
         the imputation of interest under the Code) and payable upon such terms
         as may be prescribed by the Administrator; (vi) 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 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 (vii) allow payment through any combination
         of the consideration provided in the foregoing subparagraphs (ii),
         (iii), (iv), (v) and (vi). In the case of a promissory note, the
         Administrator may also prescribe the form of such note and the security
         to be given for such note. The Option may not be exercised, however, by
         delivery of a promissory note or by a loan from the Company when or
         where such loan or other extension of credit is prohibited by 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).

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         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.  OWNERSHIP AND TRANSFER RESTRICTIONS. The Administrator, in its
absolute discretion, may impose such restrictions on 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. The Holder shall give the Company prompt notice of any disposition of
shares of Common Stock acquired by exercise of an Incentive Stock Option within
(a) two years from the date of granting (including the date the Option is
modified, extended or renewed for purposes of Section 424(h) of the Code) such
Option to such Holder, or (b) one year after the transfer of such shares to such
Holder.

         6.6.  LIMITATIONS ON EXERCISE OF OPTIONS GRANTED TO INDEPENDENT
DIRECTORS. Unless otherwise specified by the Board in the Award Agreement
evidencing the Option, 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 12 months from the date of the Holder's
         death;

               (b) The expiration of 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 death or his or her permanent and total disability, unless the
         Holder dies within said three-month period; or

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

         6.7.  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.

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<Page>

                                  ARTICLE VII.

                            AWARD OF RESTRICTED STOCK

         7.1.  ELIGIBILITY. Subject to the Award Limit, Restricted Stock may be
awarded to any Employee who the Committee determines is a key Employee or any
Consultant who the Committee determines should receive such an Award.

         7.2.  AWARD OF RESTRICTED STOCK.

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

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

                  (ii)    Determine the purchase price, if any, and other terms
         and conditions applicable to such Restricted Stock, consistent with the
         Plan.

               (b) The Committee 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 or Consultant to be
         awarded Restricted Stock, the Committee 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 Committee, 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, HOWEVER, that
in the discretion of the Committee, 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 Committee shall provide, which restrictions
may include, without limitation, restrictions concerning voting rights

                                       15

<Page>

and transferability and restrictions based on duration of employment or
consultancy with the Company, Company performance and individual performance;
PROVIDED, HOWEVER, that except with respect to shares of Restricted Stock
granted to Section 162(m) Participants, by action taken after the Restricted
Stock is issued, the Committee may, on such terms and conditions as it may
determine to be appropriate, remove any or all of the restrictions imposed by
the terms of the Award Agreement. Restricted Stock may not be sold or encumbered
until all restrictions are terminated or expire. If no consideration was paid by
the Holder upon issuance, a Holder's rights in unvested Restricted Stock shall
lapse, and such Restricted Stock shall be surrendered to the Company without
consideration, upon Termination of Employment or, if applicable, upon
Termination of Consultancy with the Company; PROVIDED, HOWEVER, that the
Committee in its sole and absolute discretion may provide that such rights shall
not lapse in the event of a Termination of Employment following a "change of
control or ownership" (within the meaning of Treasury Regulation Section
1.162-27(e)(2)(v) or any successor regulation thereto) of the Company or because
of the Holder's death or disability; PROVIDED, FURTHER, except with respect to
shares of Restricted Stock granted to Section 162(m) Participants, the Committee
in its sole and absolute discretion may provide that no such lapse or surrender
shall occur in the event of a Termination of Employment, or a Termination of
Consultancy, without cause or following any change in control of the Company or
because of the Holder's retirement, or otherwise.

         7.5.  REPURCHASE OF RESTRICTED STOCK. The Committee shall provide in
the terms of each individual Award Agreement that the Company shall have the
right to repurchase from the Holder the Restricted Stock then subject to
restrictions under the Award Agreement immediately upon a Termination of
Employment or, if applicable, upon a Termination of Consultancy between the
Holder and the Company, at a cash price per share equal to the price paid by the
Holder for such Restricted Stock; PROVIDED, HOWEVER, that the Committee in its
sole and absolute discretion may provide that no such right of repurchase shall
exist in the event of a Termination of Employment following a "change of
ownership or control" (within the meaning of Treasury Regulation Section
1.162-27(e)(2)(v) or any successor regulation thereto) of the Company or because
of the Holder's death or disability; PROVIDED, FURTHER, that, except with
respect to shares of Restricted Stock granted to Section 162(m) Participants,
the Committee in its sole and absolute discretion may provide that no such right
of repurchase shall exist in the event of a Termination of Employment without
cause or following any change in control of the Company or because of the
Holder's retirement, or otherwise.

         7.6.  ESCROW. The Secretary of the Company or such other escrow holder
as the Committee may appoint shall retain physical custody of each certificate
representing 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 Committee 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.

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<Page>

         7.8.  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 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. Notwithstanding the foregoing, the Administrator, in
its sole discretion, may provide in the Award Agreement underlying an award of
Restricted Stock that the Holder shall be unable to make an 83(b) election with
respect to the Restricted Stock, in which case the Holder shall be restricted
from making an 83(b) election with respect to such Restricted Stock.

                                 ARTICLE VIII.

                    PERFORMANCE AWARDS, DIVIDEND EQUIVALENTS,
                         DEFERRED STOCK, STOCK PAYMENTS

         8.1.  ELIGIBILITY. Subject to the Award Limit, one or more Performance
Awards, Dividend Equivalents, awards of Deferred Stock and/or Stock Payments may
be granted to any Employee whom the Committee determines is a key Employee or
any Consultant whom the Committee determines should receive such an Award.

         8.2.  PERFORMANCE AWARDS.

               (a) Any key Employee or Consultant selected by the Committee
         may be granted one or more Performance Awards. The value of such
         Performance Awards may be linked to any one or more of the Performance
         Criteria or other specific performance criteria determined appropriate
         by the Committee, in each case on a specified date or dates or over any
         period or periods determined by the Committee. In making such
         determinations, the Committee shall consider (among such other factors
         as it deems relevant in light of the specific type of award) the
         contributions, responsibilities and other compensation of the
         particular key Employee or Consultant.

               (b) Without limiting Section 8.2(a), the Committee may grant
         Performance Awards to any 162(m) Participant in the form of a cash
         bonus payable upon the attainment of objective performance goals which
         are established by the Committee and relate to one or more of the
         Performance Criteria, in each case on a specified date or dates or over
         any period or periods determined by the Committee. Any such bonuses
         paid to 162(m) Participants shall be based upon objectively
         determinable bonus formulas established in accordance with the
         provisions of Section 3.2. The maximum amount of any Performance Award
         payable to a 162(m) Participant under this Section 8.2(b) shall not
         exceed the Award Limit with respect to any calendar year.

         8.3.  DIVIDEND EQUIVALENTS.

               (a) Any key Employee or Consultant selected by the Committee
         may be granted Dividend Equivalents based on the dividends declared

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<Page>

         on Common Stock, to be credited as of dividend payment dates, during
         the period between the date a Stock Appreciation Right, Deferred Stock
         or Performance Award is granted, and the date such Stock Appreciation
         Right, Deferred Stock or Performance Award is exercised, vests or
         expires, as determined by the Committee. Such Dividend Equivalents
         shall be converted to cash or additional shares of Common Stock by such
         formula and at such time and subject to such limitations as may be
         determined by the Committee.

               (b) Any Holder of an Option who is an Employee or Consultant
         selected by the Committee may be granted Dividend Equivalents based on
         the dividends declared on Common Stock, to be credited as of dividend
         payment dates, during the period between the date an Option is granted,
         and the date such Option is exercised, vests or expires, as determined
         by the Committee. Such Dividend Equivalents shall be converted to cash
         or additional shares of Common Stock by such formula and at such time
         and subject to such limitations as may be determined by the Committee.

               (c) Any Holder of an Option who is an Independent Director
         selected by the Board may be granted Dividend Equivalents based on the
         dividends declared on Common Stock, to be credited as of dividend
         payment dates, during the period between the date an Option is granted
         and the date such Option is exercised, vests or expires, as determined
         by the Board. Such Dividend Equivalents shall be converted to cash or
         additional shares of Common Stock by such formula and at such time and
         subject to such limitations as may be determined by the Board.

               (d) Dividend Equivalents granted with respect to Options
         intended to be qualified performance-based compensation for purposes of
         Section 162(m) of the Code shall be payable, with respect to
         pre-exercise periods, regardless of whether such Option is subsequently
         exercised.

         8.4.  STOCK PAYMENTS. Any key Employee or Consultant selected by the
Committee may receive Stock Payments in the manner determined from time to time
by the Committee. The number of shares shall be determined by the Committee and
may be based upon the Performance Criteria or other specific performance
criteria determined appropriate by the Committee, determined on the date such
Stock Payment is made or on any date thereafter.

         8.5.  DEFERRED STOCK. Any key Employee or Consultant selected by the
Committee may be granted an award of Deferred Stock in the manner determined
from time to time by the Committee. The number of shares of Deferred Stock shall
be determined by the Committee and may be linked to the Performance Criteria or
other specific performance criteria determined to be appropriate by the
Committee, in each case on a specified date or dates or over any period or
periods determined by the Committee. Common Stock underlying a Deferred Stock
award will not be issued until the Deferred Stock award has vested, pursuant to
a vesting schedule or performance criteria set by the Committee. Unless
otherwise provided by the Committee, a Holder of Deferred Stock shall have no
rights as a Company stockholder with

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<Page>

respect to such Deferred Stock until such time as the Award has vested and the
Common Stock underlying the Award has been issued.

         8.6.  TERM. The term of a Performance Award, Dividend Equivalent, award
of Deferred Stock and/or Stock Payment shall be set by the Committee in its
discretion.

         8.7.  EXERCISE OR PURCHASE PRICE. The Committee may establish the
exercise or purchase price of a Performance Award, shares of Deferred Stock or
shares received as a Stock Payment; PROVIDED, HOWEVER, that such price shall not
be less than the par value of a share of Common Stock, unless otherwise
permitted by applicable state law.

         8.8.  EXERCISE UPON TERMINATION OF EMPLOYMENT, TERMINATION OF
CONSULTANCY OR TERMINATION OF DIRECTORSHIP. A Performance Award, Dividend
Equivalent, award of Deferred Stock and/or Stock Payment is exercisable or
payable only while the Holder is an Employee, Consultant or Independent
Director, as applicable; PROVIDED, HOWEVER, that the Administrator in its sole
and absolute discretion may provide that the Performance Award, Dividend
Equivalent, award of Deferred Stock and/or Stock Payment may be exercised or
paid subsequent to a Termination of Employment following a "change of control or
ownership" (within the meaning of Section 1.162-27(e)(2)(v) or any successor
regulation thereto) of the Company; PROVIDED, FURTHER, that except with respect
to Performance Awards granted to Section 162(m) Participants, the Administrator
in its sole and absolute discretion may provide that Performance Awards may be
exercised or paid following a Termination of Employment, or a Termination of
Consultancy, without cause, or following a change in control of the Company, or
because of the Holder's retirement, death or disability, or otherwise.

         8.9.  FORM OF PAYMENT. Payment of the amount determined under Section
8.2 or 8.3 above shall be in cash, in Common Stock or a combination of both, as
determined by the Committee. To the extent any payment under this Article VIII
is effected in Common Stock, it shall be made subject to satisfaction of all
provisions of Section 6.3.

                                  ARTICLE IX.

                            STOCK APPRECIATION RIGHTS

         9.1.  GRANT OF STOCK APPRECIATION RIGHTS. A Stock Appreciation Right
may be granted to any key Employee or Consultant selected by the Committee. A
Stock Appreciation Right may be granted (a) in connection and simultaneously
with the grant of an Option, (b) with respect to a previously granted Option, or
(c) independent of an Option. A Stock Appreciation Right shall be subject to
such terms and conditions not inconsistent with the Plan as the Committee shall
impose and shall be evidenced by an Award Agreement.

         9.2.  COUPLED STOCK APPRECIATION RIGHTS.

               (a) A Coupled Stock Appreciation Right ("CSAR") shall be
         related to a particular Option and shall be exercisable only when and
         to the extent the related Option is exercisable.

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<Page>

               (b) A CSAR may be granted to the Holder for no more than the
         number of shares subject to the simultaneously or previously granted
         Option to which it is coupled.

               (c) A CSAR shall entitle the Holder (or other person entitled
         to exercise the Option pursuant to the Plan) to surrender to the
         Company unexercised a portion of the Option to which the CSAR relates
         (to the extent then exercisable pursuant to its terms) and to receive
         from the Company in exchange therefor an amount determined by
         multiplying the difference obtained by subtracting the Option exercise
         price from the Fair Market Value of a share of Common Stock on the date
         of exercise of the CSAR by the number of shares of Common Stock with
         respect to which the CSAR shall have been exercised, subject to any
         limitations the Committee may impose.

         9.3.  INDEPENDENT STOCK APPRECIATION RIGHTS.

               (a) An Independent Stock Appreciation Right ("ISAR") shall be
         unrelated to any Option and shall have a term set by the Committee. An
         ISAR shall be exercisable in such installments as the Committee may
         determine. An ISAR shall cover such number of shares of Common Stock as
         the Committee may determine. The exercise price per share of Common
         Stock subject to each ISAR shall be set by the Committee. An ISAR is
         exercisable only while the Holder is an Employee or Consultant;
         PROVIDED, that the Committee may determine that the ISAR may be
         exercised subsequent to Termination of Employment, or Termination of
         Consultancy, without cause, or following a change in control of the
         Company, or because of the Holder's retirement, death or disability, or
         otherwise.

               (b) An ISAR shall entitle the Holder (or other person entitled
         to exercise the ISAR pursuant to the Plan) to exercise all or a
         specified portion of the ISAR (to the extent then exercisable pursuant
         to its terms) and to receive from the Company an amount determined by
         multiplying the difference obtained by subtracting the exercise price
         per share of the ISAR from the Fair Market Value of a share of Common
         Stock on the date of exercise of the ISAR by the number of shares of
         Common Stock with respect to which the ISAR shall have been exercised,
         subject to any limitations the Committee may impose.

         9.4.  PAYMENT AND LIMITATIONS ON EXERCISE.

               (a) Payment of the amounts determined under Section 9.2(c) and
         9.3(b) above shall be in cash, in Common Stock (based on its Fair
         Market Value as of the date the Stock Appreciation Right is exercised)
         or a combination of both, as determined by the Committee. To the extent
         such payment is effected in Common Stock it shall be made subject to
         satisfaction of all provisions of Section 6.3 above pertaining to
         Options.

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<Page>

               (b) Holders of Stock Appreciation Rights may be required to
         comply with any timing or other restrictions with respect to the
         settlement or exercise of a Stock Appreciation Right, including a
         window-period limitation, as may be imposed in the discretion of the
         Committee.

                                   ARTICLE X.

                                 ADMINISTRATION

         10.1. COMPENSATION 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, each of whom is
both a "non-employee director" as defined by Rule 16b-3 and an "outside
director" for purposes of Section 162(m) of the Code. 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.

         10.2. 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 and 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. Any such grant or award under the Plan
need not be the same with respect to each Holder. Any such interpretations and
rules with respect to Incentive Stock Options shall be consistent with the
provisions of Section 422 of the Code. 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 except with respect to matters which under Rule 16b-3
or Section 162(m) of the Code, or any regulations or rules issued thereunder,
are required to be determined in the sole discretion of the Committee.
Notwithstanding the foregoing, the full Board, acting by a majority of its
members in office, shall conduct the general administration of the Plan with
respect to Options and Dividend Equivalents granted to Independent Directors.

         10.3. 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.

         10.4. 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

                                       21

<Page>

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.

         10.5. DELEGATION OF AUTHORITY TO GRANT AWARDS. The Committee 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
Committee 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, (b) who are Section 162(m) Participants, or (c) who are
officers of the Company who are delegated authority by the Committee 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 10.5 shall serve in such capacity at the pleasure of the
Committee.

                                  ARTICLE XI.

                            MISCELLANEOUS PROVISIONS

         11.1. NOT TRANSFERABLE.

               (a) No Award under the Plan may be sold, pledged, assigned or
         transferred in any manner other than by will or the laws of descent and
         distribution or, subject to the consent of the Administrator, pursuant
         to a DRO, unless and until such Award has been exercised, or the shares
         underlying such Award have been issued, and all restrictions applicable
         to such shares have lapsed. No Award or interest or right therein shall
         be liable for the debts, contracts or engagements of the Holder or his
         or her successors in interest or 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 the
         preceding sentence.

               (b) During the lifetime of the Holder, only he or she may
         exercise an Option or other Award (or any portion thereof) granted to
         him or her under the Plan, unless it has been disposed of with the
         consent of the Administrator pursuant to a DRO. After the death of the
         Holder, any exercisable portion of an Option or other Award may, prior
         to the time when such portion becomes unexercisable under the Plan or
         the applicable Award Agreement, be exercised by his or her personal
         representative or by any person empowered to do

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<Page>

         so under the deceased Holder's will or under the then applicable laws
         of descent and distribution.

         11.2. AMENDMENT, SUSPENSION OR TERMINATION OF THE PLAN. Except as
otherwise provided in this Section 11.2, the Plan may be wholly or partially
amended or otherwise modified, suspended or terminated at any time or from time
to time by the Administrator. However, without approval of the Company's
stockholders given within 12 months before or after the action by the
Administrator, no action of the Administrator may, except as provided in Section
11.3, increase the limits imposed in Section 2.1 on the maximum number of shares
which may be issued under the Plan upon the exercise of any Incentive Stock
Options. 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 Incentive Stock Option be
granted under the Plan after the first to occur of the following events:

               (a) The expiration of 10 years from the date the Plan is first
         adopted by the Board; or

               (b) The expiration of 10 years from the date the Plan is
         approved by the Company's stockholders under Section 11.4.

         11.3. CHANGES IN COMMON STOCK OR ASSETS OF THE COMPANY, ACQUISITION OR
LIQUIDATION OF THE COMPANY AND OTHER CORPORATE EVENTS.

               (a) Subject to Section 11.3(d), in the event that the
         Administrator determines 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, in the Administrator's sole discretion, affects
         the Common Stock such that an adjustment is determined by the
         Administrator to be 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, in such manner as it may deem equitable, adjust
         any or all of:

                  (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 adjustments of the Award Limit);

                                       23

<Page>

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

                  (iii)  The grant or exercise price with respect to any Award.

               (b) Subject to the terms and conditions of the respective
         Award Agreements and Sections 11.3(d), in the event of any transaction
         or event described in Section 11.3(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 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 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 any such Award
           for an amount of cash equal to the amount that could have been
           attained upon the exercise of such Award or realization of the
           Holder's rights had such Award been currently exercisable or payable
           or fully vested or the replacement of such Award with other rights or
           property selected by the Administrator in its sole discretion;

                  (ii)   To provide that the Award cannot vest, be exercised or
           become payable after such event;

                  (iii)  To provide that such Award shall be exercisable as to
           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 be assumed by the successor
           or survivor corporation, or a parent or subsidiary thereof, or shall
           be substituted for by similar options, rights or awards covering the
           stock of the successor or survivor corporation, or a parent or
           subsidiary thereof, with appropriate adjustments as to the number and
           kind of shares and prices; and

                  (v)    To make adjustments in the number and type of shares of
           Common Stock (or other securities or property) subject to outstanding
           Awards, and in the number and kind of outstanding Restricted Stock or
           Deferred Stock and/or in the terms and conditions of (including the
           grant or exercise price), and the criteria included in, outstanding

                                       24

<Page>

           options, rights and awards and options, rights and awards which may
           be granted in the future.

                  (vi)   To provide that, for a specified period of time prior
           to such event, the restrictions imposed under an Award Agreement upon
           some or all shares of Restricted Stock or Deferred Stock may be
           terminated, and, in the case of Restricted Stock, some or all shares
           of such Restricted Stock may cease to be subject to repurchase under
           Section 7.5 or forfeiture under Section 7.4 after such event.

               (c) Subject to Sections 11.3(d), 3.2 and 3.3, the Administrator
         may, in its discretion, include such further provisions and limitations
         in any Award, agreement or certificate, as it may deem equitable and in
         the best interests of the Company.

               (d) With respect to Awards which are granted to Section 162(m)
         Participants and are intended to qualify as performance-based
         compensation under Section 162(m)(4)(C), no adjustment or action
         described in this Section 11.3 or in any other provision of the Plan
         shall be authorized to the extent that such adjustment or action would
         cause such Award to fail to so qualify under Section 162(m)(4)(C), or
         any successor provisions thereto. No adjustment or action described in
         this Section 11.3 or in any other provision of the Plan shall be
         authorized to the extent that such adjustment or action would cause the
         Plan to violate Section 422(b)(1) of the Code. Furthermore, 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) Notwithstanding the foregoing, in the event that the
         Company becomes a party to a transaction that is intended to qualify
         for "pooling of interests" accounting treatment and, but for one or
         more of the provisions of this Plan or any Award Agreement would so
         qualify, then this Plan and any Award Agreement shall be interpreted so
         as to preserve such accounting treatment, and to the extent that any
         provision of the Plan or any Award Agreement would disqualify the
         transaction from pooling of interests accounting treatment (including,
         if applicable, an entire Award Agreement), then such provision shall be
         null and void. All determinations to be made in connection with the
         preceding sentence shall be made by the independent accounting firm
         whose opinion with respect to "pooling of interests" treatment is
         required as a condition to the Company's consummation of such
         transaction.

               (f) 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 shareholders of the Company to
         make or authorize any

                                       25

<Page>

         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.

         11.4. APPROVAL OF PLAN BY STOCKHOLDERS. The Plan will be submitted for
the approval of the Company's stockholders within 12 months after the date of
the Board's initial adoption of the Plan. Awards may be granted or awarded prior
to such stockholder approval, provided that such Awards shall not be exercisable
nor shall such Awards vest prior to the time when the Plan is approved by the
stockholders, and provided further that if such approval has not been obtained
at the end of said twelve-month period, all Awards previously granted or awarded
under the Plan shall thereupon be canceled and become null and void. In
addition, if the Board determines that Awards other than Options or Stock
Appreciation Rights which may be granted to Section 162(m) Participants should
continue to be eligible to qualify as performance-based compensation under
Section 162(m)(4)(C) of the Code, the Performance Criteria must be disclosed to
and approved by the Company's stockholders no later than the first stockholder
meeting that occurs in the fifth year following the year in which the Company's
stockholders previously approved the Performance Criteria.

         11.5. 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. 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
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.

         11.6. LOANS. The Committee may, in its discretion, extend one or more
loans to key Employees in connection with the exercise or receipt of an Award
granted or awarded under the Plan, or the issuance of Restricted Stock or
Deferred Stock awarded under the Plan. The terms and conditions of any such loan
shall be set by the Committee.

                                       26

<Page>

         11.7. FORFEITURE PROVISIONS. Pursuant to its general authority to
determine the terms and conditions applicable to Awards under the Plan, the
Administrator shall have the right to provide, in the terms of Awards made under
the Plan, or to require a Holder to agree by separate written instrument, that
(a)(i) any proceeds, gains or other economic benefit actually or constructively
received by the Holder upon any receipt or exercise of the Award, or upon the
receipt or resale of any Common Stock underlying the Award, must be paid to the
Company, and (ii) the Award shall terminate and any unexercised portion of the
Award (whether or not vested) shall be forfeited, if (b)(i) a Termination of
Employment, Termination of Consultancy or Termination of Directorship occurs
prior to a specified date, or within a specified time period following receipt
or exercise of the Award, or (ii) the Holder at any time, or during a specified
time period, engages in any activity in competition with the Company, or which
is inimical, contrary or harmful to the interests of the Company, as further
defined by the Administrator or (iii) the Holder incurs a Termination of
Employment, Termination of Consultancy or Termination of Directorship for cause.

         11.8. EFFECT OF PLAN UPON OPTIONS AND 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, Directors or Consultants 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.

         11.9. 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.

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

         11.11. GOVERNING LAW. The Plan and any agreements hereunder shall be
administered, interpreted and enforced under the internal laws of the State of
Maryland without regard to conflicts of laws thereof.

                                       27

<Page>

                                      * * *

         I hereby certify that the Plan was previously approved by the
stockholders of Price Legacy Corporation as of September 11, 2001, and the
amended and restated Plan was duly adopted by the Board of Directors of Price
Legacy Corporation as of September 20, 2001.

         Executed on this ____ day of _______________________.

                                         ________________________________
                                                    Secretary

                                       28<Page>

                                                                    Exhibit 10.2

                        INCENTIVE STOCK OPTION AGREEMENT

         THIS AGREEMENT, dated _______________, 2001 ("Effective Date"), is made
by and between Price Legacy Corporation, a Maryland corporation hereinafter
referred to as "Company," and _______________________, hereinafter referred to
as "Optionee":

         WHEREAS, the Company wishes to afford the Optionee the opportunity to
purchase shares of its $0.0001 par value Common Stock;

         WHEREAS, the Company wishes to carry out the Plan (the terms of which
are hereby incorporated by reference and made a part of this Agreement); and

         WHEREAS, the Committee, appointed to administer the Plan, has
determined that it would be to the advantage and best interest of the Company
and its stockholders to grant the Incentive Stock Option provided for herein to
the Optionee as an inducement to enter into or remain in the service of the
Company or its Subsidiaries and as an incentive for increased efforts during
such service, and has advised the Company thereof and instructed the undersigned
officers to issue said Option.

         NOW, THEREFORE, in consideration of the mutual covenants herein
contained and other good and valuable consideration, receipt of which is hereby
acknowledged, the parties hereto do hereby agree as follows:

                                    ARTICLE 1.
                                   DEFINITIONS

         Whenever the following terms are used in this Agreement, they shall
have the meaning specified below unless the context clearly indicates to the
contrary. The masculine pronoun shall include the feminine and neuter, and the
singular the plural, where the context so indicates. All capitalized terms used
herein without definition shall have the meanings ascribed to such terms in the
Plan.

         ARTICLE 1.1 CHANGE IN CONTROL.

                (a) any Person (as defined below) is or becomes the Beneficial
Owner (as defined below), directly or indirectly, of securities of the Company
representing fifty percent (50%) or more of the combined voting power of the
Company's then outstanding securities. For purposes of this Agreement, (A) the
term "Person" is used as such term is used in Sections 13(d) and 14(d) of the
Exchange Act; provided, however, that the term shall not include the Company,
any trustee or other fiduciary holding securities under an employee benefit plan
of the Company, and any corporation owned, directly or indirectly, by the
stockholders of the Company, in substantially the same proportions as their
ownership of stock of the Company, and (B) the term

<Page>

"Beneficial Owner" shall have the meaning given to such term in Rule 13d-3 under
the Exchange Act;

                (b) during any period of two (2) consecutive years (not
including any period prior to the execution of this Agreement), individuals who
at the beginning of such period constitute the Board, and any new director
(other than a director designated by a person who has entered into an agreement
with the Company to effect a transaction described in Sections 2(a), (c) or (d))
whose election by the Board or nomination for election by the Company's
stockholders was approved by a vote of at least a majority of the directors then
still in office who either were directors at the beginning of the period or
whose election or nomination for election was previously so approved
(hereinafter referred to as "Continuing Directors"), cease for any reason to
constitute at least a majority thereof;

                (c) the Company consummates a merger or consolidation of the
Company with any other corporation (or other entity), other than a merger or
consolidation which would result in the voting securities of the Company
outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting securities of the
surviving entity) more than 50% of the combined voting power of the voting
securities of the Company or such surviving entity outstanding immediately after
such merger or consolidation; or

                (d) complete liquidation of the Company or a sale or disposition
by the Company of all or substantially all of the Company's assets.

         ARTICLE 1.2 INCENTIVE STOCK OPTION. "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.

         ARTICLE 1.3 OPTION. "Option" shall mean the incentive stock option to
purchase Common Stock of the Company granted under this Agreement.

         ARTICLE 1.4 PLAN. "Plan" shall mean the Amended and Restated Price
Legacy Corporation 2001 Stock Option and Incentive Plan.

         ARTICLE 1.5 SECRETARY. "Secretary" shall mean the Secretary of the
Company.

                                   ARTICLE 2.
                                 GRANT OF OPTION

         ARTICLE 2.1 GRANT OF OPTION. In consideration of the Optionee's
agreement to provide services to the Company or its Subsidiaries, and for other
good and valuable consideration, on the date hereof the Company irrevocably
grants to the Optionee the option to purchase any part or all of an aggregate of
____________ shares of its $0.0001 par value Common Stock upon the terms and
conditions set forth in this Agreement.

<Page>

         ARTICLE 2.2 PURCHASE PRICE. The purchase price of the shares of stock
covered by the Option shall be $ per share without commission or other charge;
PROVIDED, HOWEVER, that the price per share of the shares subject to the Option
shall not be less than the greater of (i) 100% of the Fair Market Value of a
share of Common Stock on the Effective Date, or (ii) 110% of the Fair Market
Value of a share of Common Stock on the Effective Date in the case of an
Optionee then owning (within the meaning of Section 424(d) of the Code) more
than 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 422 of the Code).

         ARTICLE 2.3 CONSIDERATION TO COMPANY. In consideration of the granting
of this Option by the Company, the Optionee agrees to render faithful and
efficient services to the Company or a Subsidiary, with such duties and
responsibilities as the Company shall from time to time prescribe, for a period
of at least one (1) year from the date this Option is granted. Nothing in this
Agreement or in the Plan shall confer upon the Optionee 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 its Subsidiaries, which are hereby
expressly reserved, to discharge the Optionee at any time for any reason
whatsoever, with or without cause.

         ARTICLE 2.4 ADJUSTMENTS IN OPTION. The Committee shall make adjustments
with respect to the Option in accordance with the provisions of Section 11.3 of
the Plan.

                                   ARTICLE 3.
                            PERIOD OF EXERCISABILITY

         ARTICLE 3.1 COMMENCEMENT OF EXERCISABILITY.

                (a) Subject to subsection (b) and Section 3.4, the Option shall
become exercisable in installments as follows:

                   (i)  *The first installment consisting of fifty percent (50%)
of the shares covered by the Option shall become exercisable and vested on the
grant date.

                   (ii) The balance shall become exercisable and vested ratably
through December 31, 2003.

                (b) No portion of the Option which is unexercisable at
Termination of Employment shall thereafter become exercisable.

         ARTICLE 3.2 DURATION OF EXERCISABILITY.

         The installments provided for in Section 3.1 are cumulative. Each such
installment which becomes exercisable pursuant to Section 3.1 shall remain
exercisable until it becomes unexercisable under Section 3.3.

<Page>

         ARTICLE 3.3 EXPIRATION OF OPTION.

         The Option may not be exercised to any extent by anyone after the first
to occur of the following events:

                (a) The expiration of ten (10) years and one day from the date
the Option was granted; or

                (b) The expiration of three (3) months from the date of the
Optionee's Termination of Employment unless such Termination of Employment
results from his death or his disability (within the meaning of Section 22(e)(3)
of the Code) provided that if the Optionee dies within said three (3) month
period, the period shall be extended to end twelve (12) months from the date of
Optionee's death; or

                (c) The expiration of twelve (12) months from the date of the
Optionee's Termination of Employment by reason of his disability (within the
meaning of Section 22(e)(3) of the Code) or death provided that if the Optionee
dies within said twelve (12) month period, the period shall be extended to end
twelve (12) months from the date of Optionee's death.

         ARTICLE 3.4 ACCELERATION OF EXERCISABILITY.

                (a) Notwithstanding Section 3.1(a), in the event of a Change in
Control, the Option shall, immediately prior to the effective date of the Change
in Control, automatically become fully exercisable for all of the shares of
Common Stock at the time subject to the Option, and may be exercised for any or
all of those shares as fully-vested shares of Common Stock.

                (b) The Committee may make such determinations and adopt such
rules and conditions as it, in its absolute discretion, deems appropriate in
connection with such acceleration of exercisability, including, but not by way
of limitation, provisions to ensure that any such acceleration and resulting
exercise shall be conditioned upon the consummation of the contemplated Change
in Control.

         ARTICLE 3.5 SPECIAL TAX CONSEQUENCES. The Optionee acknowledges that,
to the extent that the aggregate Fair Market Value of stock with respect to
which "incentive stock options" (within the meaning of Section 422 of the Code,
but without regard to Section 422(d) of the Code), including the Option, are
exercisable for the first time by the Optionee during any calendar year (under
the Plan and all other incentive stock option plans of the Company, any
Subsidiary and any parent corporation thereof (within the meaning of Section 422
of the Code)) exceeds $100,000, the Option and such other options shall be
treated as not qualifying under Section 422 of the Code but rather shall be
taxed as non-qualified stock options. The Optionee further acknowledges that the
rule set forth in the preceding sentence shall be applied by taking options into
account in the order in which they were granted. For purposes of these rules,
the Fair

<Page>

Market Value of stock shall be determined as of the time the option with respect
to such stock is granted.

                                   ARTICLE 4.
                               EXERCISE OF OPTION

         ARTICLE 4.1 PERSON ELIGIBLE TO EXERCISE. Except as provided in Section
5.2, during the lifetime of the Optionee, only he may exercise the Option or any
portion thereof. After the death of the Optionee, any exercisable portion of the
Option may, prior to the time when the Option becomes unexercisable under
Section 3.3, be exercised by his personal representative or by any person
empowered to do so under the deceased Optionee's will or under the then
applicable laws of descent and distribution.

         ARTICLE 4.2 PARTIAL EXERCISE. Any exercisable portion of the Option or
the entire Option, if then wholly exercisable, may be exercised in whole or in
part at any time prior to the time when the Option or portion thereof becomes
unexercisable under Section 3.3; provided, however, that each partial exercise
shall be for whole shares only.

         ARTICLE 4.3 MANNER OF EXERCISE. The Option, or any exercisable portion
thereof, may be exercised solely by delivery to the Secretary or his office of
all of the following prior to the time when the Option or such portion becomes
unexercisable under Section 3.3:

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

                (b) Full cash payment to the Secretary of the Company for the
shares with respect to which such Option or portion is exercised; or

                    (i)    With the consent of the Committee, (A) shares of the
Company's Common Stock owned by the Optionee 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, or (B) shares of the Company's Common Stock issuable to the
Optionee upon exercise of the Option, with a Fair Market Value on the date of
exercise of the Option or any portion thereof equal to the aggregate exercise
price of the Option or exercised portion thereof; or

                    (ii)   With the consent of the Committee, a full recourse
promissory note bearing interest (at no less than such rate as shall then
preclude the imputation of interest under the Code or successor provision) and
payable upon such terms as may be prescribed by the Committee. The Committee may
also prescribe the form of such note and the security to be given for such note.
The Option may not be exercised, however, by delivery of a promissory note or by
a loan from the Company when or where such loan or other extension of credit is
prohibited by law; or

<Page>

                    (iii)  With the consent of the Committee, property of any
kind which constitutes good and valuable consideration; or

                    (iv)   With the consent of the Committee, a notice that the
Optionee has placed a market sell order with a broker with respect to shares of
the Company's Common Stock then issuable upon exercise of the Option, 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 the Option exercise price; or

                    (v)    With the consent of the Committee, any combination of
the consideration provided in the foregoing subparagraphs (i), (ii), (iii), and
(iv); and

                (c) A bona fide written representation and agreement, in a form
satisfactory to the Committee, signed by the Optionee or other person then
entitled to exercise such Option or portion, stating that the shares of stock
are being acquired for his own account, for investment and without any present
intention of distributing or reselling said shares or any of them except as may
be permitted under the Securities Act and then applicable rules and regulations
thereunder, and that the Optionee or other person then entitled to exercise such
Option or portion will indemnify the Company against and hold it free and
harmless from any loss, damage, expense or liability resulting to the Company if
any sale or distribution of the shares by such person is contrary to the
representation and agreement referred to above. The Committee may, in its sole
discretion, take whatever additional actions it deems appropriate to insure the
observance and performance of such representation and agreement and to effect
compliance with the Securities Act and any other federal or state securities
laws or regulations. Without limiting the generality of the foregoing, the
Committee may require an opinion of counsel acceptable to it to the effect that
any subsequent transfer of shares acquired on an Option exercise does not
violate the Securities Act, and may issue stop-transfer orders covering such
shares. Share certificates evidencing stock issued on exercise of this Option
shall bear an appropriate legend referring to the provisions of this subsection
(c) and the agreements herein. The written representation and agreement referred
to in the first sentence of this subsection (c) shall, however, not be required
if the shares to be issued pursuant to such exercise have been registered under
the Securities Act, and such registration is then effective in respect of such
shares; and

                (d) Full payment to the Company (or other employer corporation)
of all amounts which, under federal, state or local tax law, it is required to
withhold upon exercise of the Option; with the consent of the Committee, (i)
shares of the Company's Common Stock owned by the Optionee, duly endorsed for
transfer, with a Fair Market Value on the date of delivery equal to the sums
required to be withheld, or (ii) shares of the Company's Common Stock issuable
to the Optionee upon exercise of the Option with a Fair Market Value on the date
of exercise of the Option or any portion thereof equal to the sums required to
be withheld, may be used to make all or part of such payment; PROVIDED, that the
number of shares of Common Stock which may be withheld with respect to the
issuance, vesting, exercise or payment of any Option (or which may be
repurchased from the Optionee of such Option within six months after

<Page>

such shares of Common Stock were acquired by the Optionee from the Company) in
order to satisfy the Optionee's federal and state income and payroll tax
liabilities with respect to the issuance, vesting, exercise or payment of the
Option 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; and

                (e) In the event the Option or portion shall be exercised
pursuant to Section 4.1 by any person or persons other than the Optionee,
appropriate proof of the right of such person or persons to exercise the Option.

         ARTICLE 4.4 CONDITIONS TO ISSUANCE OF STOCK CERTIFICATES. The shares of
stock deliverable upon the exercise of the Option, or any portion thereof, may
be either previously authorized but unissued shares or issued shares which have
then been reacquired by the Company. Such shares shall be fully paid and
nonassessable. The Company shall not be required to issue or deliver any
certificate or certificates for shares of stock purchased upon the exercise of
the 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; and

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

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

                (d) The receipt by the Company of full payment for such shares,
including payment of all amounts which, under federal, state or local tax law,
the Company (or other employer corporation) is required to withhold upon
exercise of the Option; and

                (e) The lapse of such reasonable period of time following the
exercise of the Option as the Committee may from time to time establish for
reasons of administrative convenience.

         ARTICLE 4.5 RIGHTS AS STOCKHOLDER. The holder of the Option shall not
be, nor have any of the rights or privileges of, a stockholder of the Company in
respect of any shares purchasable upon the exercise of any part of the Option
unless and until certificates representing such shares shall have been issued by
the Company to such holder.

<Page>

                                   ARTICLE 5.
                                OTHER PROVISIONS

         ARTICLE 5.1 ADMINISTRATION. The Committee shall have the power to
interpret the Plan and this Agreement and to adopt such rules for the
administration, interpretation and application of the Plan as are consistent
therewith and to interpret, amend or revoke any such rules. All actions taken
and all interpretations and determinations made by the Committee in good faith
shall be final and binding upon the Optionee, the Company and all other
interested persons. No member of the Committee shall be personally liable for
any action, determination or interpretation made in good faith with respect to
the Plan or the Option. In its sole 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 and this Agreement except with respect to matters which under Rule
16b-3 or Section 162(m) of the Code, or any regulations or rules issued
thereunder, are required to be determined in the sole discretion of the
Committee.

         ARTICLE 5.2 OPTION NOT TRANSFERABLE. Neither the Option nor any
interest or right therein or part thereof shall be sold, pledged, assigned, or
transferred in any manner other than by will or the laws of descent and
distribution, unless and until such Option has been exercised, or the shares
underlying such Option have been issued, and all restrictions applicable to such
shares have lapsed. Notwithstanding the foregoing the Option may be transferred
by the Optionee, in writing and with prior written notice to the Committee, by
gift, without the receipt of any consideration, to a member of the Optionee's
immediate family, as defined in Rule 16a-1 under the Exchange Act, or to a trust
for the exclusive benefit of, or any other entity owned solely by, such members,
provided, that the Option shall continue to be subject to all of the terms and
conditions as applicable to the original Optionee, and the transferee shall
execute any and all such documents requested by the Committee in connection with
the transfer, including without limitation to evidence the transfer and to
satisfy any requirements for an exemption for the transfer under applicable
federal and state securities laws. Neither the Option nor any interest or right
therein or part thereof shall be liable for the debts, contracts or engagements
of the Optionee or his successors in interest or 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 the preceding sentence.

         ARTICLE 5.3 SHARES TO BE RESERVED. The Company shall at all times
during the term of the Option reserve and keep available such number of shares
of stock as will be sufficient to satisfy the requirements of this Agreement.

         ARTICLE 5.4 NOTICES. Any notice to be given under the terms of this
Agreement to the Company shall be addressed to the Company in care of its
Secretary, and any notice to be given to the Optionee shall be addressed to him
at the address given beneath his signature hereto. By a notice given pursuant to
this Section 5.4, either party may hereafter designate a different address

<Page>

for notices to be given to him. Any notice which is required to be given to the
Optionee shall, if the Optionee is then deceased, be given to the Optionee's
personal representative if such representative has previously informed the
Company of his status and address by written notice under this Section 5.4. Any
notice shall be deemed duly given when enclosed in a properly sealed envelope or
wrapper addressed as aforesaid, deposited (with postage prepaid) in a post
office or branch post office regularly maintained by the United States Postal
Service; provided, however, that any notice to be given by the Optionee relating
to the exercise of the Option or any portion thereof shall be deemed duly given
upon receipt by the Secretary or his office.

         ARTICLE 5.5 TITLES. Titles are provided herein for convenience only and
are not to serve as a basis for interpretation or construction of this
Agreement.

         ARTICLE 5.6 CONSTRUCTION. This Agreement shall be administered,
interpreted and enforced under the internal laws of the State of Maryland
without regard to conflicts of laws thereof.

         ARTICLE 5.7 CONFORMITY TO SECURITIES LAWS. The Optionee acknowledges
that the Plan is intended to conform to the extent necessary with all provisions
of the Securities Act and the Exchange Act and any and all regulations and rules
promulgated by the Securities and Exchange Commission thereunder, including,
without limitation, the applicable exemptive conditions of Rule 16b-3.
Notwithstanding anything herein to the contrary, the Plan shall be administered,
and the Option is granted and may be exercised, only in such a manner as to
conform to such laws, rules and regulations. To the extent permitted by
applicable law, the Plan and this Agreement shall be deemed amended to the
extent necessary to conform to such laws, rules and regulations.

         ARTICLE 5.8 AMENDMENTS. This Agreement and the Plan may be amended
without the consent of the Optionee provided that such amendment would not
impair any rights of the Optionee under this Agreement. No amendment of this
Agreement shall, without the consent of the Optionee, impair any rights of the
Optionee under this Agreement.

         ARTICLE 5.9 INVALID PROVISION. The invalidity or unenforceability of
any particular provision hereof shall not affect the other provisions hereof,
and this Agreement shall be construed in all respects as if such invalid or
unenforceable provision was omitted.

         ARTICLE 5.10 EFFECT OF OPTIONS UPON OTHER COMPENSATION PLANS. The
Option and any payments with respect thereto shall not constitute "compensation"
for purposes of any pension, welfare or other benefit plan or policy of the
Company unless provided for therein.

         ARTICLE 5.11 COUNTERPARTS. This Agreement may be executed
simultaneously in two or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same
instrument.

         ARTICLE 5.12 ASSIGNMENT. Except as otherwise provided herein, the
Company's rights and obligations hereunder may be assigned to any Company
Subsidiary or to any successor

<Page>

pursuant to a merger, consolidation or similar event. Subject to the foregoing,
this Agreement and the respective rights and obligations of the parties hereto
shall inure to the benefit of and be binding upon, the successors and assigns of
the parties.

         ARTICLE 5.13 NOTIFICATION OF DISPOSITION. The Optionee shall give
prompt notice to the Company of any disposition or other transfer of any shares
of stock acquired under this Agreement if such disposition or transfer is made
(a) within two (2) years from the Date of Grant with respect to such shares or
(b) within one (1) year after the transfer of such shares to him. Such notice
shall specify the date of such disposition or other transfer and the amount
realized, in cash, other property, assumption of indebtedness or other
consideration, by the Optionee in such disposition or other transfer.

<Page>

         IN WITNESS WHEREOF, this Agreement has been executed and delivered by
the parties hereto.

                                        PRICE LEGACY CORPORATION

                                        By:
                                           -------------------------------------

                                        Its:
                                            ------------------------------------

------------------------------
         Optionee

------------------------------

------------------------------
         Address

Optionee's Taxpayer
Identification Number:

------------------------------

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