Document:

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                                                                   Exhibit 10.12

                                               As of May 18, 2001

Mr. Ulysses S. Knotts, III
470 Montwicke Chase
Atlanta, GA 30327

                           Re:   Separation Agreement
                                 --------------------

Dear Uly:

                  This letter shall constitute a separation agreement (this
"Agreement"), by and between Answerthink, Inc., a Florida corporation
("Answerthink"), and you with respect to the termination of your employment with
Answerthink and the other matters set forth herein. In consideration of the
mutual promises contained herein, and for other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, Answerthink and you
(sometimes hereafter referred to collectively as the "Parties") hereby agree as
follows:

1.       Termination Without Cause.

         (a)      Effective at the close of business on September May 18, 2001
                  (the "Effective Date"), your employment with Answerthink shall
                  be deemed to have been terminated without cause, and you agree
                  that you will have no right to nor will you have any
                  expectation of further employment with Answerthink or any of
                  its affiliates after the Effective Date. You represent and
                  warrant that after the Effective Date you will not take any
                  action to legally bind or obligate Answerthink.

         (b)      You further agree that once all of the payments referred
                  to in Section 2 of this Agreement have been made you shall
                  have been paid all amounts in the nature compensation of
                  any kind due and owing to you, whether pursuant to that
                  certain Senior Management Agreement dated as of April 23,
                  1997 by and between you and Answerthink (the "Senior
                  Management Agreement"), or that certain Employment Agreement
                  dated as of June 2, 1998 by and between you and Answerthink
                  (the "Employment Agreement") which amended and restated the
                  employment related provisions of the Senior Management
                  Agreement, or otherwise, including all wages, salary,
                  commissions, bonuses, incentive payments, profit sharing
                  payments, expense reimbursements, leave, severance pay, stock
                  options or other securities or other benefits, in respect of
                  your employment services for and on behalf of Answerthink. You
                  further agree that the payments

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                  referred to in Section 2 of this Agreement, in addition to
                  compensating you fully for all services rendered by you to
                  Answerthink and its affiliates to date, include consideration
                  for your promises contained in this Agreement.

         (c)      Following the Effective Date, Answerthink will cooperate with
                  you regarding COBRA and your 401-K account so that you will be
                  able to avail yourself of the full benefits to which you are
                  entitled under applicable law.

2.       Payment.

         (a)      Answerthink agrees that on or before the next scheduled
                  payroll payment date following the Effective Date it will pay
                  you (less appropriate income and employment tax withholdings),
                  to the extent not previously paid to you, any unpaid salary
                  for your employment services by and on behalf of Answerthink
                  through the Effective Date. In addition, Answerthink shall
                  reimburse you for any business expenses incurred by you during
                  your employment with Answerthink that has not yet been
                  reimbursed to you.

         (b)      Answerthink agrees that, unless you have violated the terms of
                  this Agreement or the Employment Agreement, Answerthink will
                  pay you THREE HUNDRED SEVEN THOUSAND SIX HUNDRED NINETY TWO
                  AND 32/100 DOLLARS ($307,692.32USD) (less appropriate income
                  and employment tax withholding) in sixteen semi-monthly
                  installments in the amount of NINETEEN THOUSAND TWO HUNDRED
                  THIRTY AND 77/100 DOLLARS ($19,230.77USD) (less appropriate
                  income and employment tax withholding) in accordance with the
                  regular Answerthink payroll cycle. Subject to the terms of
                  this Agreement, Answerthink will commence payment of such
                  installments on the first Answerthink regular payroll date
                  following the Effective Date. In the event of your death prior
                  to the final installment of such payments, any remaining
                  payments will be made to your estate. You hereby agree to
                  waive any right that you may have to any additional severance
                  payments contained in Section 9 of the Employment Agreement or
                  otherwise.

3.       Non-Disclosure of This Agreement. Each of the Parties hereto, for the
         benefit of the other Party hereto, hereby agrees that from and after
         the date of such Party's execution and delivery of this Agreement, each
         such Party will not, directly or indirectly, provide to any person or
         entity any information that concerns or relates to the negotiation of
         or circumstances leading to the execution of this Agreement or to the
         terms and conditions hereof, except to (i) the extent that such
         disclosure is specifically required by applicable law or legal process;
         (ii) such Party's tax advisors as may be necessary for the preparation
         of tax returns or other similar reports required by law, (iii) such
         Party's attorneys as may be necessary to secure advice concerning the
         interpretation of this Agreement or to this Agreement in connection
         with the enforcement of; or (iv) members of your immediate family. Each
         Party agrees that prior to disclosing such information under parts
         (ii), (iii) or (iv) of this Section 3, such Party will inform the
         recipients that they are bound by the

                                      -2-

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         limitations of this Section 3 and such disclosure will only be
         permitted if the recipient agrees to be bound by such limitations. Each
         Party further agrees that any disclosure of such information by any
         such recipients not in accordance with this Section 3 shall be deemed
         to be a disclosure by the disclosing Party in breach of this Agreement.
         Answerthink agrees not to provide to any third party (which term, for
         purposes hereof, shall not include Answerthink and its affiliates and
         their respective officers, directors, employees, securityholders and
         professional advisors) the terms of this Agreement or any information
         that concerns or relates to the negotiation of or circumstances leading
         to the execution of this Agreement unless Answerthink determines in
         good faith that it is specifically required to do so by applicable law
         or legal process.

4.       Confidential Information; Noncompetition and Nonsolicitation. You agree
         that Sections 7 and 10 of the Employment Agreement relating to
         confidential information, noncompetition and nonsolicitation continue
         in full force and effect in accordance with the terms thereof and are
         not modified by the terms of this Agreement.

5.       Return of Information. You further agree to cooperate fully with
         Answerthink in returning to Answerthink the originals and all copies of
         all files, materials, documents or other property relating to the
         business and affairs of Answerthink and its affiliates. You may retain
         only personal correspondence relating to the duties and
         responsibilities of your employment.

6.       No Adverse Comment. You agree to coordinate with Answerthink's Chief
         Executive Officer any requests for employment references from
         Answerthink which in all cases will be limited to employment dates and
         titles held. Each Party hereto agrees that such Party will not make any
         disparaging statements, whether written, oral or electronically
         transmitted regarding the other Party and its affiliates and in the
         case of Answerthink its business and affairs, employees, agents,
         officers, directors and securityholders.

7.       Breach or Violation. Each party agrees that in the event of a violation
         of the provisions of this Agreement by such Party, in addition to any
         damages allowed by law, the other Party hereto shall be entitled to
         injunctive relief. In the event of a judicial determination that any
         restriction contained in this Agreement is unreasonable, you and
         Answerthink agree that the court may modify such restriction to make it
         reasonable or eliminate such restriction prior to granting any
         injunctive relief.

8.       Certain Additional Representations. Each of the Parties represents and
         warrants to the other Party that in executing this Agreement such party
         does not rely and has not relied upon any representation or statement
         made by the other Party or the Party's agents, representatives or
         attorneys with regard to the subject matter, basis or effect of this
         Agreement or otherwise.

9.       Other Agreements.

         (a)      Reference is made to that certain Restricted Securities
                  Agreement dated as of April 23, 1997, among you, Golder,
                  Thoma, Cressey, Rauner Fund V, L.P., a Delaware Limited
                  Partnership ("GTCR V"), Gator Associates, Ltd., A Florida

                                      -3-

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                  limited partnership, MG Capital Partners II, L.P., a Delaware
                  limited partnership, and Tara Ventures, Ltd., a British Virgin
                  Islands corporation (the "Restricted Securities Agreement").
                  Answerthink hereby acknowledges and confirms that all shares
                  of Answerthink common stock covered by the Restricted
                  Securities Agreement and all shares of Answerthink common
                  stock covered by sections 1 through 6 of the Senior Management
                  Agreement are fully vested.

         (b)      You further agree and acknowledge that, other than those
                  grants noted below, no stock options have been granted to you
                  as of the Effective Date, and that you claim no right to any
                  option to purchase Answerthink stock, common or preferred,
                  from Answerthink.

Grant Date                Number of Options
----------                -----------------

March 31, 1999            5,000

January 31, 2000          10,000

                           Remainder of page intentionally left blank.

                                      -4-

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10.      Releases.

         (a)      In consideration of the consideration paid to you hereunder,
                  you hereby release Answerthink, its predecessors, successors
                  present and former affiliates, subsidiaries, parents, related
                  entities, officers, directors, members, managers, assigns,
                  insurers, representatives, employees, agents, attorneys, and
                  each of them, from any and all claims, demands, charges,
                  complaints, liabilities, obligations, indemnities, promises,
                  agreements, contracts, covenants, controversies, damages,
                  actions, causes of action, suits, rights, demands, costs,
                  losses, liens, debts and expenses, of whatever kind or nature
                  in law, equity or otherwise, which you now possess, have
                  possessed, or may in the future possess, against any of them,
                  or to which you are or claim to be entitled, whether known or
                  unknown, suspected or unsuspected, committed or omitted prior
                  to the date of this Agreement arising from, or relating to,
                  your employment with Answerthink, the termination of your
                  employment with Answerthink, the Restricted Securities
                  Agreement, the Employment Agreement and any matters related
                  thereto or any other transactions, occurrences, acts or
                  omissions or any loss, damages or injury whatsoever, known or
                  unknown, suspected or unsuspected, resulting from any act or
                  omission by or on the part of any of the releasees ("Knotts
                  Released Claims"). The Knotts Released Claims include, but are
                  not limited to, any action arising out of any foreign,
                  federal, state or local constitution, statute, ordinance,
                  regulation, or common law, including, but not limited to,
                  those arising under the Age Discrimination In Employment Act,
                  as amended, Title VII of the Civil Rights Act of 1964, as
                  amended, The Equal Pay Act, The Americans With Disabilities
                  Act, The Family and Medical Leave Act, The Employee Retirement
                  Income Security Act, the Worker Adjustment and Retraining
                  Notification Act, and the provisions of any other laws
                  regulating wages, hours and working conditions, any other
                  foreign, federal, state or local laws prohibiting employment
                  discrimination or otherwise regulating employment, any claim
                  or claims for discrimination, failure to prevent
                  discrimination, retaliation, failure to prevent retaliation,
                  harassment, failure to prevent harassment, assault, battery,
                  misrepresentation, fraud, deceit, invasion of privacy, breach
                  of contract, breach of collective bargaining agreement, breach
                  of quasi-contract, breach of implied contract, an accounting,
                  wrongful or constructive discharge, breach of the covenant of
                  good faith and fair dealing, libel, slander, negligent or
                  intentional infliction of emotional distress, violation of
                  public policy, negligent supervision, negligent retention,
                  negligence, interference with business opportunity or with
                  contracts, and any claim or claims for severance pay, bonus or
                  similar benefit, sick leave, pension, retirement, retirement
                  bonus, holiday pay, life insurance, health or medical
                  insurance, reimbursement of health or medical costs, worker's
                  compensation or disability.  However, this release does not
                  cover any obligations by Answerthink to make payments to you
                  hereunder.

         (b)      In consideration of this Agreement and other good and valuable
                  consideration, the receipt and adequacy of which are hereby
                  acknowledged, Answerthink, for itself and on behalf of its
                  subsidiaries and affiliates, hereby releases you, your
                  successors, assigns, insurers, representatives, employees,
                  agents, attorneys, heirs,

                                      -5-

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                  administrators, executors, and each of them, from any and all
                  claims, demands, charges, complaints, liabilities,
                  obligations, indemnities, promises, agreements, contracts,
                  covenants, controversies, damages, actions, causes of action,
                  suits, rights, demands, costs, losses, liens, debts and
                  expenses, of whatever kind or nature in law, equity or
                  otherwise, which it now possesses, has possessed, or may in
                  the future possess, against any of them, or to which it is or
                  claims to be entitled, whether known or unknown, suspected or
                  unsuspected, committed or omitted prior to the date of this
                  Agreement arising from, or relating to, your employment by
                  Answerthink, the termination of your employment with
                  Answerthink, the Restricted Securities Agreement, the
                  Employment Agreement and any matters related thereto, or any
                  other transactions, occurrences, acts or omissions or any
                  loss, damages or injury whatsoever, known or unknown,
                  suspected or unsuspected, resulting from any act or omission
                  by or on the part of any of the releasees  (the "Answerthink
                  Released Claims"). The Answerthink Released Claims include,
                  but are not limited to, any action arising out of any foreign,
                  federal, state or local constitution, statute, ordinance,
                  regulation, or common law, including, but not limited to
                  claims of misrepresentation, fraud, deceit, breach of
                  contract, breach of quasi-contract, breach of implied
                  contract, breach of the covenant of good faith and fair
                  dealing, negligence, interference with business opportunity or
                  with contracts, and inducing breach of contract. However, this
                  release does not cover your obligations to comply with
                  sections 7 and 10 of the Employment Agreement.

         (c)      Each of you and Answerthink recognizes that, except as limited
                  herein, this is a full and final release of any and all claims
                  which they, their heirs, successors and assigns have made, or
                  could have made, against one another, arising from the
                  Answerthink Released Claims and the Knotts Released Claims, as
                  applicable.

         (d)      You warrant to Answerthink that you have not assigned or
                  transferred any of the Knotts Released Claims. Answerthink
                  represents and warrants to you that it has not assigned or
                  transferred any of the Answerthink Related Claims.

         (e)      You acknowledge and understand that you have twenty-one (21)
                  days after the foregoing date within which to consider this
                  Agreement, including the Knotts Released Claims, before
                  signing it. You understand that you have been given the
                  opportunity to and you have in fact consulted with legal
                  counsel of your own choosing and that if you sign this
                  Agreement prior to the twenty-first day, you do so on a purely
                  voluntary basis.

         (f)      You further understand that for a period of seven (7) days
                  after you sign this Agreement, which includes this the Knotts
                  Released Claims, that you may revoke or cancel it by written
                  notification to Answerthink and by returning any sums paid to
                  you under this Agreement, and that this Agreement, including
                  the Release of Claims in this Section 10, will not become
                  effective or enforceable until that seven-day period has
                  passed.

                                      -6-

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11.      Entire Agreement. This Agreement contains the entire understanding and
         agreement the Parties relating to the subject matter of this Agreement
         and it supersedes any and all prior and/or contemporaneous
         understandings and agreements with respect to such subject matter, all
         of which are merged herein. This Agreement may not be altered or
         amended except by an instrument in writing signed by both of the
         Parties hereto.

12.      No Admission. The Parties agree that nothing contained in this
         Agreement shall constitute or be treated as an admission or
         acknowledgment of any liability or wrongdoing by either Party to the
         other Party hereto and such Party's affiliates.

13.      Governing Law. This Agreement shall be governed by, and construed in
         accordance with, the laws of the State of Florida, without regard to
         its conflicts or choice of law principles. The Parties agree that the
         exclusive venue for the resolution of any disputes arising out of or
         relating to the Agreement shall be the state courts of the State of
         Florida and the federal courts of the United States of America located
         in Miami-Dade County, Florida, and each of the Parties hereby consents
         to the jurisdiction of said courts with respect to any such disputes.
         The Parties further acknowledge that they have each participated in the
         preparation of this Agreement with legal counsel chosen by such Party
         and that this Agreement shall be construed and interpreted without any
         presumption against either Party.

14.      Waiver. Neither the waiver by either party of a breach of or default
         under any of the provisions of this Agreement, nor the failure of such
         Party, on one or more occasions, to enforce any of the provisions of
         this Agreement or to exercise any right or privilege hereunder shall
         thereafter be construed as a waiver of any subsequent breach or default
         of a similar nature, or as a wavier of any provisions, rights or
         privileges hereunder. A waiver of any provision of this Agreement shall
         only be effective if evidenced by a written instrument signed by the
         Party granting any such waiver.

15.      Further Assurances. The Parties agree to take or cause to be taken
         such further actions as may be necessary or as may be reasonably
         requested by the other Party hereto in writing in order to fully
         effectuate the purposes, terms, and conditions of this Agreement.

16.      Assignment. This Agreement and the rights and obligations of the
         Parties hereunder may not be assigned by either Party without the prior
         written consent of the other Party, except that the assignment of this
         Agreement by Answerthink to any corporation which acquires a
         controlling interest in Answerthink common stock or all or
         substantially all of the assets of Answerthink pursuant to a sale of
         Answerthink's business shall constitute a permitted assignment of this
         Agreement. This Agreement shall be binding upon and inure to the
         benefit of the Parties and their respective representatives, successors
         and permitted assigns.

17.      Notice. All notices, demands, requests, or other communications which
         may be or are required to be given, served or sent by either Party to
         other Party pursuant to this Agreement or in any way relating to this
         Agreement shall be in writing and shall be effective delivery if
         hand-delivered; or if mailed by first class, registered, or certified
         mail (return receipt requested, postage prepaid) four (4) business day
         after being so

                                      -7-

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         mailed to such Party at the address set forth on the first page hereof.
         Either Party may designate by notice in writing a new address to which
         any notice, demand, request, or communication may thereafter be so
         given, served, or sent.

18.      Voluntary Agreement. You acknowledge that you have carefully read and
         fully understand this Agreement and execute it voluntarily and without
         coercion.

                  Please signify your acceptance of and agreement to the terms
and provisions contained herein by executing this Agreement in the space
provided below and returning a signed original copy to Answerthink.

                                               ANSWERTHINK, INC.

                                               By: /s/ Ted A. Fernandez
                                                  -----------------------------
                                                  Name:
                                                  Title: Chief Executive Officer

                                                Date:  May 18, 2001
                                                     --------------------------

                                                /s/ Witness
                                                -------------------------------
                                                Witness

Accepted and agreed to:

/s/ Ulysses S. Knotts, III
----------------------------------
Ulysses S. Knotts, III

Date: May 18, 2001
     -----------------------------

/s/ Witness
----------------------------------
Witness

By signing, Mr. Knotts hereby expressly waives the 21-day review period provided
for in Section 10(e).

                                      -8-<PAGE>

                                                                  EXHIBIT 10.18

                       ANSWERTHINK CONSULTING GROUP, INC.
                          EMPLOYEE STOCK PURCHASE PLAN
                         (AS AMENDED FEBRUARY 16, 2001)

The Board of Directors of Answerthink , Inc. (the "Company") has adopted this
Employee Stock Purchase Plan (the "Plan") to enable eligible employees of the
Company and its participating Affiliates (as defined below), through payroll
deductions, to purchase shares of the Company's Common Stock, par value $0.01
per share (the "Common Stock"). The Plan is for the benefit of the employees of
Answerthink, Inc. and any participating Affiliates. The Plan is intended to
benefit the Company by increasing the employees' interest in the Company's
growth and success and encouraging employees to remain in the employ of the
Company or its participating Affiliates. The Plan was amended February 16, 2001
to increase the number of shares of Common Stock reserved for issuance to
2,750,000 shares and to establish a per Offering Period limit of 400,000 shares
of Common Stock. The provisions of the Plan are set forth below:

1.       SHARES SUBJECT TO THE PLAN.

         Subject to adjustment as provided in Section 26 below, the aggregate
number of shares of Common Stock that may be made available for purchase by
participating employees under the Plan is 2,750,000. The shares issuable under
the Plan may, in the discretion of the Board of Directors of the Company (the
"Board"), be either authorized but unissued shares or treasury shares.

2.       ADMINISTRATION.

         The Plan shall be administered under the direction of the Compensation
Committee of the Board (the "Committee"). No member of the Board or the
Committee shall be liable for any action or determination made in good faith
with respect to the Plan.

3.       INTERPRETATION.

         It is intended that the Plan will meet the requirements for an
"employee stock purchase plan" under Section 423 of the Internal Revenue Code of
1986 (the "Code"), and it is to be so applied and interpreted. Subject to the
express provisions of the Plan, the Committee shall have authority to interpret
the Plan, to prescribe, amend and rescind rules relating to it, and to make all
other determinations necessary or advisable in administering the Plan, all of
which determinations will be final and binding upon all persons.

4.       ELIGIBLE EMPLOYEES.

         Any employee of the Company or any of its participating Affiliates may
participate in the Plan, except the following, who are ineligible to
participate: (a) an employee who has been employed by the Company or any of its
participating Affiliates for less than three months as of the beginning of an
Offering Period (as defined in Section 7 below); (b) an employee whose customary
employment is for less than five months in any calendar year; (c) an employee
whose customary employment is 20 hours or less per week; and (d) an employee
who, after exercising his or her rights to purchase shares under the Plan, would
own shares of Common Stock (including shares that may be acquired under any
outstanding options) representing five percent or more of the total combined
voting power of all classes of stock of the Company. The term

<PAGE>

"participating Affiliate" means any company or other trade or business that is a
subsidiary of the Company (determined in accordance with the principles of
Sections 424(e) and (f) of the Code and the regulations thereunder). The Board
may at any time in its sole discretion, if it deems it advisable to do so,
terminate the participation of the employees of a particular participating
Affiliate.

5.       PARTICIPATION IN THE PLAN.

         An eligible employee may become a participating employee in the Plan by
completing an election to participate in the Plan on a form provided by the
Company and submitting that form to the Payroll Department of the Company. The
form will authorize payroll deductions (as provided in Section 6 below) and
authorize the purchase of shares of Common Stock for the employee's account in
accordance with the terms of the Plan. Enrollment will become effective upon the
first day of the first Offering Period.

6.       OFFERINGS.

         At the time an eligible employee submits his or her election to
participate in the Plan (as provided in Section 5 above), the employee shall
elect to have deductions made from his or her pay subject to a maximum of
fifteen percent (15%) of total compensation, on each pay day following his or
her enrollment in the Plan, and for as long as he or she shall participate in
the Plan. The deductions will be credited to the participating employee's
account under the Plan. An employee may not during any Offering Period change
his or her percentage of payroll deduction for that Offering Period, nor may an
employee withdraw any contributed funds, other than in accordance with Sections
14 through 20 below.

7.       OFFERING PERIODS.

         The Offering Periods shall be determined by the Committee. The first
Offering Period under the Plan shall commence on the date determined by the
Committee.

8.       RIGHTS TO PURCHASE COMMON STOCK; PURCHASE PRICE.

         Rights to purchase shares of Common Stock will be deemed granted to
participating employees as of the first trading day of each Offering Period. The
purchase price of each share of Common Stock (the "Purchase Price") shall be
determined by the Committee; provided, however, the Purchase Price shall not be
                             --------  -------
less than the lesser of 85 percent of the fair market value of the Common Stock
(i) on the first trading day of the Offering Period or (ii) on the last trading
day of such Offering Period; provided, further, that in no event shall the
                             -----------------
Purchase Price be less than the par value of the Common Stock. For purposes of
the Plan, "fair market value" means the value of each share of Common Stock
subject to the Plan on a given date determined as follows: if on such date the
shares of Common Stock are listed on an established national or regional stock
exchange, are admitted to quotation on The Nasdaq Stock Market, or are publicly
traded on an established securities market, the fair market value of the shares
of Common Stock shall be the closing price of the shares of Common Stock on such
exchange or in such market (the highest such closing price if there is more than
one such exchange or market) on such date or, if such date is not a trading day,
on the trading day immediately preceding such date (or if there is no such
reported closing price, the fair market value shall be the mean between the
highest bid and lowest asked prices or between the high and low sale prices on
such trading day) or, if no sale of the shares of Common Stock is reported for
such trading day, on the next preceding day on which any sale shall have been
reported. If the shares of Common Stock are

                                     -2-

<PAGE>

not listed on such an exchange, quoted on such System or traded on such a
market, fair market value shall be determined by the Board in good faith.

9.       TIMING OF PURCHASE; PURCHASE LIMITATION.

         Unless a participating employee has given prior written notice
terminating such employee's participation in the Plan, or the employee's
participation in the Plan has otherwise been terminated as provided in Sections
15 through 20 below, such employee will be deemed to have exercised
automatically his or her right to purchase Common Stock on the last trading day
of the Offering Period (except as provided in Section 14 below) for the number
of shares of Common Stock which the accumulated funds in the employee's account
at that time will purchase at the Purchase Price, subject to the participation
adjustment provided for in Section 13 below and subject to adjustment under
Section 26 below. Notwithstanding any other provision of the Plan, no employee
may purchase in any one calendar year under the Plan and all other "employee
stock purchase plans" of the Company and its participating Affiliates shares of
Common Stock having an aggregate fair market value in excess of $25,000,
determined as of the first trading date of the Offering Period as to shares
purchased during such period. Effective upon the last trading day of the
Offering Period, a participating employee will become a stockholder with respect
to the shares purchased during such period, and will thereupon have all
dividend, voting and other ownership rights incident thereto. Notwithstanding
the foregoing, no shares shall be sold pursuant to the Plan unless the Plan is
approved by the Company's stockholders in accordance with Section 25 below.
Notwithstanding anything to the contrary in this Plan, no more than 400,000
shares shall be available for purchase by participating employees (in the
aggregate) pursuant to the Plan during any six month Offering Period.

10.      ISSUANCE OF STOCK CERTIFICATES.

         On the last trading day of the Offering Period, a participating
employee will be credited with the number of shares of Common Stock purchased
for his or her account under the Plan during such Offering Period. Shares
purchased under the Plan will be held in the custody of an agent (the "Agent")
appointed by the Board of Directors. The Agent may hold the shares purchased
under the Plan in stock certificates in nominee names and may commingle shares
held in its custody in a single account or stock certificate without
identification as to individual participating employees. A participating
employee may, at any time following his or her purchase of shares under the
Plan, by written notice instruct the Agent to have all or part of such shares
reissued in the participating employee's own name and have the stock certificate
delivered to the employee.

11.      WITHHOLDING OF TAXES.

         To the extent that a participating employee realizes ordinary income in
connection with a sale or other transfer of any shares of Common Stock purchased
under the Plan, the Company may withhold amounts needed to cover such taxes from
any payments otherwise due and owing to the participating employee or from
shares that would otherwise be issued to the participating employee hereunder.
Any participating employee who sells or otherwise transfers shares purchased
under the Plan within two years after the beginning of the Offering Period in
which the shares were purchased must within 30 days of such transfer notify the
Payroll Department of the Company in writing of such transfer.

                                     -3-

<PAGE>

12.      ACCOUNT STATEMENTS.

         The Company will cause the Agent to deliver to each participating
employee a statement for each Offering Period during which the employee
purchases Common Stock under the Plan, reflecting the amount of payroll
deductions during the Offering Period, the number of shares purchased for the
employee's account, the price per share of the shares purchased for the
employee's account and the number of shares held for the employee's account at
the end of the Offering Period.

13.      PARTICIPATION ADJUSTMENT.

         If in any Offering Period the number of unsold shares that may be made
available for purchase under the Plan pursuant to Section 1 above is
insufficient to permit exercise of all rights deemed exercised by all
participating employees pursuant to Section 9 above, a participation adjustment
will be made, and the number of shares purchasable by all participating
employees will be reduced proportionately. Any funds then remaining in a
participating employee's account after such exercise will be refunded to the
employee.

14.      CHANGES IN ELECTIONS TO PURCHASE.

         (a) A participating employee may, at any time prior to the last trading
day of the Offering Period, by written notice to the Company, direct the Company
to cease payroll deductions (or, if the payment for shares is being made through
periodic cash payments, notify the Company that such payments will be
terminated), in accordance with the following alternatives:

                  (i) The employee's option to purchase shall be reduced to the
number of shares which may be purchased, as of the last day of the Offering
Period, with the amount then credited to the employee's account; or

                  (ii) Withdraw the amount in such employee's account and
terminate such employee's option to purchase.

         (b) Any participating employee may increase or decrease his or her
payroll deduction or periodic cash payments, to take effect on the first day of
the next Offering Period, by delivering to the Company a new form regarding
election to participate in the Plan under Section 5 above.

15.      VOLUNTARY TERMINATION OF EMPLOYMENT OR DISCHARGE.

         In the event a participating employee voluntarily leaves the employ of
the Company or a participating Affiliate, otherwise than by retirement under a
plan of the Company or a participating Affiliate, or is discharged for cause
prior to the last day of the Offering Period, the amount in the employee's
account will be distributed and the employee's option to purchase will
terminate.

16.      RETIREMENT OR SEVERANCE.

         In the event a participating employee who has an option to purchase
shares leaves the employ of the Company or a participating Affiliate because of
retirement under a plan of the Company or a participating Affiliate, or because
of termination of the employee's employment

                                     -4-

<PAGE>

by the Company or a participating Affiliate for any reason except discharge for
cause, the participating employee may elect, within 10 days after the date of
such retirement or termination, one of the following alternatives:

         (a) The employee's option to purchase shall be reduced to the number of
shares which may be purchased, as of the last day of the Offering Period, with
the amount then credited to the employee's account; or

         (b) Withdraw the amount in such employee's account and terminate such
employee's option to purchase.

         In the event the participating employee does not make an election
within the aforesaid 10-day period, he or she will be deemed to have elected
subsection 16(b) above.

17.      LAY-OFF, AUTHORIZED LEAVE OR ABSENCE OR DISABILITY.

         Payroll deductions for shares for which a participating employee has an
option to purchase may be suspended during any period of absence of the employee
from work due to lay-off, authorized leave of absence or disability or, if the
employee so elects, periodic payments for such shares may continue to be made in
cash.

         If such employee returns to active service prior to the last day of the
Offering Period, the employee's payroll deductions will be resumed and if said
employee did not make periodic cash payments during the employee's period of
absence, the employee shall, by written notice to the Company's Payroll
Department within 10 days after the employee's return to active service, but not
later than the last day of the Offering Period, elect:

         (a)      To make up any deficiency in the employee's account resulting
from a suspension of payroll deductions by an immediate cash payment;

         (b) Not to make up such deficiency, in which event the number of shares
to be purchased by the employee shall be reduced to the number of whole shares
which may be purchased with the amount, if any, then credited to the employee's
account plus the aggregate amount, if any, of all payroll deductions to be made
thereafter; or

         (c)      Withdraw the amount in the employee's account and terminate
the employee's option to purchase.

         A participating employee on lay-off, authorized leave of absence or
disability on the last day of the Offering Period shall deliver written notice
to his or her employer on or before the last day of the Offering Period,
electing one of the alternatives provided in the foregoing clauses (a), (b) and
(c) of this Section 17. If any employee fails to deliver such written notice
within 10 days after the employee's return to active service or by the last day
of the Offering Period, whichever is earlier, the employee shall be deemed to
have elected subsection 17(c) above.

         If the period of a participating employee's lay-off, authorized leave
of absence or disability shall terminate on or before the last day of the
Offering Period, and the employee shall not resume active employment with the
Company or a participating Affiliate, the employee shall receive a distribution
in accordance with the provisions of Section 16 of this Plan.

                                     -5-

<PAGE>

18.      DEATH.

         In the event of the death of a participating employee while the
employee's option to purchase shares is in effect, the legal representatives of
such employee may, within three months after the employee's death (but no later
than the last day of the Offering Period) by written notice to the Company or
participating Affiliate, elect one of the following alternatives:

         (a) The employee's option to purchase shall be reduced to the number of
shares which may be purchased, as of the last day of the Offering Period, with
the amount then credited to the employee's account; or

         (b) Withdraw the amount in such employee's account and terminate such
employee's option to purchase.

         In the event the legal representatives of such employee fail to deliver
such written notice to the Company or participating Affiliate within the
prescribed period, the election to purchase shares shall terminate and the
amount, then credited to the employee's account shall be paid to such legal
representatives.

19.      FAILURE TO MAKE PERIODIC CASH PAYMENTS.

         Under any of the circumstances contemplated by this Plan, where the
purchase of shares is to be made through periodic cash payments in lieu of
payroll deductions, the failure to make any such payments shall reduce, to the
extent of the deficiency in such payments, the number of shares purchasable
under this Plan.

20.      TERMINATION OF PARTICIPATION.

         A participating employee will be refunded all moneys in his or her
account, and his or her participation in the Plan will be terminated if either
(a) the Board elects to terminate the Plan as provided in Section 25 below, or
(b) the employee ceases to be eligible to participate in the Plan under Section
4 above. As soon as practicable following termination of an employee's
participation in the Plan, the Company will deliver to the employee a check
representing the amount in the employee's account and a stock certificate
representing the number of whole shares held in the employee's account. Once
terminated, participation may not be reinstated for the then current Offering
Period, but, if otherwise eligible, the employee may elect to participate in any
subsequent Offering Period.

21.      ASSIGNMENT.

         No participating employee may assign his or her rights to purchase
shares of Common Stock under the Plan, whether voluntarily, by operation of law
or otherwise. Any payment of cash or issuance of shares of Common Stock under
the Plan may be made only to the participating employee (or, in the event of the
employee's death, to the employee's estate). Once a stock certificate has been
issued to the employee or for his or her account, such certificate may be
assigned the same as any other stock certificate.

22.      APPLICATION OF FUNDS.

                                     -6-

<PAGE>

         All funds received or held by the Company under the Plan may be used
for any corporate purpose until applied to the purchase of Common Stock and/or
refunded to participating employees. Participating employees' accounts will not
be segregated.

23.      NO RIGHT TO CONTINUED EMPLOYMENT.

         Neither the Plan nor any right to purchase Common Stock under the Plan
confers upon any employee any right to continued employment with the Company or
any of its participating Affiliates, nor will an employee's participation in the
Plan restrict or interfere in any way with the right of the Company or any of
its participating Affiliates to terminate the employee's employment at any time.

24.      AMENDMENT OF PLAN.

         The Board may, at any time, amend the Plan in any respect (including an
increase in the percentage specified in Section 8 above used in calculating the
Purchase Price); provided, however, that without approval of the stockholders of
                 --------  -------
the Company no amendment shall be made (a) increasing the number of shares
specified in Section 1 above that may be made available for purchase under the
Plan (except as provided in Section 26 below), (b) changing the eligibility
requirements for participating in the Plan, or (c) impairing the vested rights
of participating employees.

25.      EFFECTIVE DATE; TERM AND TERMINATION OF THE PLAN.

         The Plan shall be effective as of the date of adoption by the Board,
which date is set forth below, subject to approval of the Plan by a majority of
the votes present and entitled to vote at a duly held meeting of the
shareholders of the Company at which a quorum representing a majority of all
outstanding voting stock is present, either in person or by proxy; provided,
                                                                   --------
however, that upon approval of the Plan by the shareholders of the Company as
-------
set forth above, all rights to purchase shares granted under the Plan on or
after the effective date shall be fully effective as if the shareholders of the
Company had approved the Plan on the effective date. If the shareholders fail to
approve the Plan on or before one year after the effective date, the Plan shall
terminate, any rights to purchase shares granted hereunder shall be null and
void and of no effect, and all contributed funds shall be refunded to
participating employees. The Board may terminate the Plan at any time and for
any reason or for no reason, provided that such termination shall not impair any
rights of participating employees that have vested at the time of termination.
In any event, the Plan shall, without further action of the Board, terminate ten
(10) years after the date of adoption of the Plan by the Board or, if earlier,
at such time as all shares of Common Stock that may be made available for
purchase under the Plan pursuant to Section 1 above have been issued.

26.      EFFECT OF CHANGES IN CAPITALIZATION.

         (a)      CHANGES IN STOCK.

         If the number of outstanding shares of Common Stock is increased or
decreased or the shares of Common Stock are changed into or exchanged for a
different number or kind of shares or other securities of the Company by reason
of any recapitalization, reclassification, stock split, reverse split,
combination of shares, exchange of shares, stock dividend, or other distribution
payable in capital stock, or other increase or decrease in such shares effected
without receipt of consideration by the Company occurring after the effective
date of the Plan, the number and

                                     -7-

<PAGE>

kinds of shares that may be purchased under the Plan shall be adjusted
proportionately and accordingly by the Company. In addition, the number and kind
of shares for which rights are outstanding shall be similarly adjusted so that
the proportionate interest of a participating employee immediately following
such event shall, to the extent practicable, be the same as immediately prior to
such event. Any such adjustment in outstanding rights shall not change the
aggregate Purchase Price payable by a participating employee with respect to
shares subject to such rights, but shall include a corresponding proportionate
adjustment in the Purchase Price per share.

         (b)      REORGANIZATION IN WHICH THE COMPANY IS THE SURVIVING
                  CORPORATION.

         Subject to Subsection (c) of this Section 26, if the Company shall be
the surviving corporation in any reorganization, merger or consolidation of the
Company with one or more other corporations, all outstanding rights under the
Plan shall pertain to and apply to the securities to which a holder of the
number of shares of Common Stock subject to such rights would have been entitled
immediately following such reorganization, merger or consolidation, with a
corresponding proportionate adjustment of the Purchase Price per share so that
the aggregate Purchase Price thereafter shall be the same as the aggregate
Purchase Price of the shares subject to such rights immediately prior to such
reorganization, merger or consolidation.

         (c)      REORGANIZATION IN WHICH THE COMPANY IS NOT THE SURVIVING
                  CORPORATION OR SALE OF ASSETS OR STOCK.

         Upon any dissolution or liquidation of the Company, or upon a merger,
consolidation or reorganization of the Company with one or more other
corporations in which the Company is not the surviving corporation, or upon a
sale of all or substantially all of the assets of the Company to another
corporation, or upon any transaction (including, without limitation, a merger or
reorganization in which the Company is the surviving corporation) approved by
the Board that results in any person or entity owning more than 80 percent of
the combined voting power of all classes of stock of the Company, the Plan and
all rights outstanding hereunder shall terminate, except to the extent provision
is made in writing in connection with such transaction for the continuation of
the Plan and/or the assumption of the rights theretofore granted, or for the
substitution for such rights of new rights covering the stock of a successor
corporation, or a parent or subsidiary thereof, with appropriate adjustments as
to the number and kinds of shares and exercise prices, in which event the Plan
and rights theretofore granted shall continue in the manner and under the terms
so provided. In the event of any such termination of the Plan, the Offering
Period shall be deemed to have ended on the last trading day prior to such
termination, and in accordance with Section 10 above the rights of each
participating employee then outstanding shall be deemed to be automatically
exercised on such last trading day. The Board shall send written notice of an
event that will result in such a termination to all participating employees not
later than the time at which the Company gives notice thereof to its
stockholders.

         (d)      ADJUSTMENTS.

         Adjustments under this Section 26 related to stock or securities of the
Company shall be made by the Committee, whose determination in that respect
shall be final, binding, and conclusive.

                                     -8-

<PAGE>

         (e)      NO LIMITATIONS ON COMPANY.

         The grant of a right pursuant to the Plan shall not affect or limit in
any way the right or power of the Company to make adjustments,
reclassifications, reorganizations or changes of its capital or business
structure or to merge, consolidate, dissolve or liquidate, or to sell or
transfer all or any part of its business or assets.

27.      GOVERNMENTAL REGULATION.

         The Company's obligation to issue, sell and deliver shares of Common
Stock pursuant to the Plan is subject to such approval of any governmental
authority and any national securities exchange or other market quotation system
as may be required in connection with the authorization, issuance or sale of
such shares.

28.      STOCKHOLDER RIGHTS.

         Any dividends paid on shares held by the Company for a participating
employee's account will be transmitted to the employee. The Company will deliver
to each participating employee who purchases shares of Common Stock under the
Plan, as promptly as practicable by mail or otherwise, all notices of meetings,
proxy statements, proxies and other materials distributed by the Company to its
stockholders. Any shares of Common Stock held by the Agent for an employee's
account will be voted in accordance with the employee's duly delivered and
signed proxy instructions. There will be no charge to participating employees in
connection with such notices, proxies and other materials.

29.      RULE 16b-3.

         Transactions under this Plan are intended to comply with all applicable
conditions of Rule 16b-3 or any successor provision under the Securities
Exchange Act of 1934, as amended. If any provision of the Plan or action by the
Board fails to so comply, it shall be deemed null and void to the extent
permitted by law and deemed advisable by the Board. Moreover, in the event the
Plan does not include a provision required by Rule 16b-3 to be stated herein,
such provision (other than one relating to eligibility requirements, or the
price and amount of awards) shall be deemed automatically to be incorporated by
reference into the Plan.

30.      PAYMENT OF PLAN EXPENSES.

         The Company will bear all costs of administering and carrying out the
Plan.

                                  *    *    *

                                     -9-

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