Document:

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                                                                   Exhibit 10.58

                             OFFICER'S CERTIFICATE

     I, the undersigned, do hereby certify and represent that:

     1. I am the duly elected Executive VP, Senior Business and Finance Officer
of deCODE genetics, Inc., a Delaware Corporation.

     2. Pursuant to Rule 306(a) of Regulation S-T, the following exhibit 10.58
to deCODE genetics, Inc.'s Annual Report on Form 10-K is a fair and accurate
English translation of a document prepared in the Icelandic language.

     IN WITNESS WHEREOF, I have signed this Officer's Certificate in my
capacity as Executive VP, Senior Business and Finance Officer of deCODE
genetics, Inc. on this 14 day of March, 2001.

                                        By:   /s/ Hannes P. Smarason
                                              --------------------------------
                                        Name: Hannes P. Smarason

                                        Title: Executive VP, Senior Business
                                               and Finance Officer

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                                                                   Exhibit 10.58

                   Contract on the Processing of Clinical Data
                 and their Transfer to a Health Sector Database
                                     between
                       The [ Name of Health Institution ]
                        hereinafter referred to as [HI],
                                       and
  Islensk erfoagreining ehf., State Reg. No. 691295-3549, Lynghals 1, Reykjavik
                hereinafter referred to as ISLENSK ERFOAGREINING;

Whereas the Minister for Health issued to Islensk erfoagreining ehf., on
22 January 2000, an Operating Licence for the Creation and Operation of a
Health Sector Database, on the basis of Act No. 139/1998, on a Health
Sector Database;

Whereas Act No. 139/1998 and the Operating Licence provide that the holder of
the Operating Licence is permitted to take delivery of data processed from
medical files for transfer to a Health Sector Database subject to the approval
of health institutions or self-employed health service workers;

Whereas the Operating Licence provides that before the commencement of transfer
of data into the Health Sector Database, the Licensee shall enter into written
contracts with the health institutions in question or self-employed health
service workers on access to information from medical records and the handling
of such information;

Whereas the [Health Institution] and Islensk erfoagreining ehf. have engaged in
negotiations and arrived at an agreement, as set out in this Contract, on the
access of Islensk erfoagreining ehf. to data from medical files in the custody
of the [Health Institution], the procedural arrangements for the processing of
such data for transfer to the Health Sector Database, and their subsequent
transfer to the Health Sector Database; The [Health Institution] and Islensk
erfoagreining ehf. hereby enter into the following

                                    Contract:
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1.    Definitions

      1.1.  All terms defined in Section 2.1. of the Operating Licence of
            Islensk erfoagreining shall have the same meaning herein, wherever
            they appear.

2.    Categories of clinical data to be processed and prepared for transfer to
      the Health Sector Database pursuant to this Contract

      2.1.  [HI] will, during the Contract Period, prepare for transfer and
            subsequently transfer to the Health Sector Database the clinical
            data specified in Annex 1 hereto and determined pursuant to Section
            3.3. hereof.

      2.2.  Islensk erfoagreining may, during the Contract Period, request that
            [HI] process and prepare for transfer to the Health Sector Database
            all the clinical data specified at any time in Annex B to the
            Operating Licence of Islensk erfoagreining, regardless of whether
            they are specified in Annex 1 hereto.

      2.3.  Annex 1A to this Contract specifies clinical data which, in addition
            to the clinical data specified in Annex B to the Operating Licence
            of Islensk erfoagreining, shall be recorded in an electronic
            clinical records file pursuant to the General Specifications for
            Clinical Records Systems in Annex A to the Islensk erfoagreining
            Operating Licence ("Supplementary Clinical Data"). [HI] agrees, for
            its part, to process and prepare for transfer to the Health Sector
            Database the Supplementary Clinical Data pursuant to Annex 1A at the
            request of Islensk erfoagreining, provided that approval has been
            obtained from the Data Protection Commission and the Monitoring
            Committee.

      2.4.  Islensk erfoagreining may, during the Contract Period, request that
            [HI] process and prepare for transfer to the Health Sector Database
            other data than those specified in Annex B to the Operating Licence
            of Islensk erfoagreining and Annex 1A hereto. In addition to the
            approval of [HI], the transfer of such data to the Health Sector
            Database shall, as applicable, be subject to the approval of the
            Data Protection Commission and the Monitoring Committee.

3.    Assessment of Classification and Volume of Clinical Data, Condition and
      Integrity

      3.1.  [HI] shall immediately on the effect of this Contract perform an
            assessment of the clinical data recorded by [HI] or in the custody
            of [HI]. The assessment shall be in the form attached hereto in
            Annex 2. The assessment shall specify the clinical data available
            and recorded, their condition, the form in which they are recorded
            and whether any clinical data require special processing in order to
            prepare them and subsequently transfer them to the Health Sector
            Database. As regards the cost of the assessment, reference is made
            to Section 12.2 hereof.

            The assessment shall also specify the clinical data recorded and
            processed by [HI] on the effective date of this Contract, the
            methods of recording and processing and the form in which the
            clinical data are recorded. Furthermore, the assessment shall
            outline any future plans of [HI] for new/altered recording of
            clinical data. An attempt shall be made to conclude [HI]'s
            assessment pursuant to this Section no later than two months
            following the date of signature of this Contract.

      3.2.  The Contracting Parties shall co-operate on the assessment of the
            quality and integrity of the clinical data of [HI], the cost and
            benefits of processing, taking into account the condition and
            usefulness of clinical data in connection
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            with this Contract. Should the parties see reason to do so, they may
            each appoint one party to work on the above projects.

      3.3.  Following the assessment and evaluation by the parties pursuant to
            the above, Islensk erfoagreining shall decide what clinical data
            [HI] pursuant to Annex 1 hereto shall be processed and prepared for
            transfer and subsequently transferred to the Health Sector Database
            pursuant to this Contract. As regards the stages of processing
            clinical data, reference is made to Article 5 hereof.

4.    Organisation of the processing of clinical data for transfer to the Health
      Sector Database

      4.1.  Processing of clinical data pursuant to this Contract shall take
            place on the premises of [HI] and in such places as activities of
            [HI] are conducted.

      4.2.  [HI] is responsible for the observation of legislation and
            regulations in the processing of clinical data for transfer to the
            Health Sector Database.

      4.3.  [HI] guarantees that all processing of clinical data for transfer to
            the Health Sector Database will be performed, or its performance
            managed, by qualified health-care personnel of the [HI].

      4.4.  [HI] shall provide Islensk erfoagreining with information on which
            employees of [HI] are directly involved in transferring clinical
            data to the Health Sector Database. Islensk erfoagreining shall
            ensure that such employees are not involved in the operation of the
            Health Sector Database.

      4.5.  [HI] and Islensk erfoagreining will jointly organise regular courses
            and training for the employees of [HI] on the processing of data for
            transfer to the Health Sector Database in order to ensure the
            quality and integrity of clinical data.

      4.6.  In the event that it proves necessary to label and amend clinical
            data, [HI] will perform this work in consultation with Islensk
            erfoagreining and in accordance with the rules and procedures
            specified in Annex 3 hereto.

      4.7.  The arrangements and implementation of the processing of clinical
            data and their preparation for transfer to the Health Sector
            Database are divided into four stages, as further specified in
            Article 5 hereof.

5.    Stages in the Processing of Clinical Data and their Transfer to a Health
      Sector Database

      5.1.  Stage 1: older clinical data in machine-readable form

            5.1.1. The first stage covers clinical data in machine-readable
                  form, recorded and preserved by the [HI] on the effective date
                  of this Contract.

            5.1.2. [HI] undertakes to process and prepare for transfer to the
                  Health Sector Database, pursuant to Stage 1, the classes of
                  clinical data specified in Annex 1 hereto, subject, however,
                  to Section 3.3. The intention is to process clinical data
                  dating back to 1986, cf. Section 4.6 in the Operating Licence
                  of Islensk erfoagreining, with due consideration to usefulness
                  and cost.

      5.2.  Stage 2: clinical data recorded on documents and paper

            5.2.1. Stage 2 covers clinical data recorded on documents and paper.

            5.2.2. [HI] undertakes to process clinical data available on paper
                  and documents in [HI] and prepare them for transfer to the
                  Health Sector
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                  Database. Classes of clinical data to be processed for
                  transfer to the Health Sector Database in stage 2 are
                  specified in Annex 1 hereto, subject, however to Section 3.3.

      5.3.  Stage 3: Processing of clinical data using medical filing systems
            used by [HI] in its activities on the effective date of this
            Contract.

            5.3.1. Stage 3 covers processing of clinical data using medical
                  filing systems used by [HI] in its activities on the effective
                  date of this Contract.

            5.3.2. [HI] and Islensk erfoagreining shall in joint consultation
                  conduct an assessment of the medical filing systems used by
                  [HI] in its recording and processing of clinical data.

            5.3.3. The assessment shall cover all the principal disadvantages of
                  the current medical filing systems and the impact they have or
                  may have on the processing of the clinical data subject to
                  processing under this Contract. The parties may decide to make
                  temporary improvements in the current medical file systems, if
                  both agree that this is necessary, in order to make it
                  possible to process clinical data under Stage 3.

            5.3.4. [HI] undertakes to process and prepare for transfer to the
                  Health Sector Database, pursuant to Stage 3, the classes of
                  clinical data specified in Annex 1 hereto, subject, however,
                  to Section 3.3.

      5.4.  Stage 4: Processing of clinical data using the Integrated Health
            Institution Clinical Records System

            5.4.1. An agreement has been reached to the effect that [HI] will
                  take into use an Integrated Clinical Records System, as
                  further detailed in Article 8 hereof. After [HI] has taken
                  such a clinical records system into use, [HI] clinical data
                  will recorded and processed based on the structure of the
                  electronic Clinical Records Systems based on the general
                  specifications of the Ministry of Health and Social Security.
                  Coded and other numerical data defined in Annex B to the
                  Operating Licence of Islensk erfoagreining, "Transfer of Data
                  to the to the Health Sector Database", shall be transferred
                  from the electronic clinical records systems to the Health
                  Sector Database through the Encryption Agency of the Data
                  Protection Commission.

      5.5.  Transfer of Clinical Data from Independent Systems

            5.5.1. On the date of effect of this Contract, or at any time during
                  its term of effect, there may be in existence at [HI]
                  independent systems created for scientific research and other
                  activities not directly related to patient services and/or
                  independent systems set up for experimental or development
                  purposes. Should Islensk erfoagreining request that [HI]
                  transfer clinical data from such systems to the Health Sector
                  Database, [HI] will accede to such request, assuming there are
                  no reasonable grounds for refusal in specific cases, provided
                  that an agreement has been reached between Islensk
                  erfoagreining and the originators and owners of such systems,
                  to the extent that such originators and owners are not [HI]
                  itself, and provided also that approval has been obtained from
                  the Data Protection Commission and the Monitoring Committee,
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                  as applicable. Work on preparations for such transfer shall
                  then be integrated into project stages pursuant to the above,
                  as applicable.

6.    Start of Processing of Clinical Data at [HI] for Transfer to the Health
      Sector Database Pursuant to this Contract

      6.1.  It is the understanding of the parties that processing of clinical
            data pursuant to Stage 1 will begin following assessment of clinical
            data pursuant to Article 3 and following a decision pursuant to
            Section 3.3.

      6.2.  It is understood that processing of clinical data pursuant to Stage
            2 will begin following assessment of clinical data pursuant to
            Article 3 and following a decision pursuant to Section 3.3.

      6.3.  It is understood that processing of clinical data pursuant to Stage
            3 will begin when approval has been obtained for the transfer of
            clinical data processed under this Contract to the Health Sector
            Database and that such processing will continue until processing
            pursuant to Stage 4 begins.

      6.4.  It is understood that processing of clinical data and their transfer
            to the Health Sector Database pursuant to Stage 4 will begin when
            [HI] takes into use a clinical records system meeting the general
            specifications of the Ministry of Health and Social Security for
            clinical records systems.

7.    Arrangements for the transfer of clinical data to the Health Sector
      Database

      7.1.  Preparations for the transfer of clinical data to the Health Sector
            Database will take place under the management and on the
            responsibility of [HI] pursuant to the provisions hereof. Personal
            identifiers will be encrypted one way at [HI]. Clinical data shall
            be transferred in encrypted form to the Data Protection Commission
            Encryption Agency.

      7.2.  [HI] will perform and take responsibility for the transfer of
            clinical data pursuant to this Contract from the [HI] to the Data
            Protection Commission Encryption Agency. [HI] shall observe the
            terms of the Data Protection Commission.

      7.3.  Islensk erfoagreining will supply software and hardware for the
            encryption and transfer of clinical data from [HI] to the Data
            Protection Commission Encryption Agency.

      7.4.  The frequency and details of the transfer of clinical data processed
            for transferring and subsequent transfer to the Health Sector
            Database to the Data Protection Commission Encryption Agency shall
            be subject to further agreement between the parties.

8.    Integrated Clinical Records System

      8.1.  Pursuant to the provisions of the Operating Licence of the company
            and the further provisions of this Article 8, Islensk erfoagreining
            will co-operate with [HI] on installing at [HI] a clinical records
            system conforming to the General Specifications for Clinical Records
            Systems of the Ministry of Health and Social Security, as current at
            any time, and other conditions of the Operating Licence, as well as
            the special requirements of Islensk erfoagreining regarding the
            recording and processing of clinical data for transfer and their
            subsequent transfer to the Health Sector Database. With the
            integrated clinical records system, the recording and processing of
            clinical data at [HI] will be standardised in all the data recording
            systems used by the [HI] at any
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            time to record clinical data in its activities. "Data recording
            systems" refers to computer software used by health sector personnel
            to record clinical data in the course of their work. An integrated
            clinical records system consists of data recording systems,
            communications systems capable of retrieving and providing access to
            clinical data from individual data recording systems, and a user
            interface that displays clinical data provided by the communications
            system. The integrated clinical records systems shall be capable of
            sending and receiving clinical data over the Icelandic Health
            Network currently in preparation by the Health Authorities.

      8.2.  In the course of the installation of the integrated clinical records
            system at [HI] it will be determined to what extent it is possible,
            and feasible, for both contracting parties to continue to use the
            data recording systems being used by [HI] for the recording of
            clinical data on the effective date of this Contract. The parties
            shall jointly conduct an assessment of the data recording systems in
            question and the contracts concluded with their proprietors.

      8.3.  Following the joint assessment pursuant to Section 8.2, and, as
            applicable, following negotiations with the proprietors of the
            systems in question, the parties shall make a decision on what data
            recording systems will continue in use as part of the integrated
            clinical records system of [HI], and what data recording systems
            will be discontinued. In arriving at decisions in this respect,
            account shall be taken of the experience of [HI] of the data
            recording systems in question, the future prospects of the systems
            in the light of other available options, their usefulness in
            processing clinical data for the Health Sector Database, and the
            reasonable interests of Islensk erfoagreining in achieving
            co-ordination and minimising the costs of the methods and solutions
            of taking into use the integrated clinical records systems selected
            by individual health institutions and self-employed health service
            workers with whom Islensk erfoagreining contracts for the processing
            of clinical data for transfer to the Health Sector Database and
            their subsequent transfer.

      8.4.  In the event of a decision, following assessment pursuant to Section
            8.2, to discontinue the user of a data recording system in use at
            [HI], or if there is a need to add a new data recording system,
            Islensk erfoagreining shall, in consultation with [HI] and with due
            consideration to the special needs of both parties, create, have
            created, or purchase such a data recording system and supply it to
            [HI]. Islensk erfoagreining shall, in the same way, create, have
            created or purchase and supply to [HI] communications systems and
            user interfaces for the integrated clinical records system.

      8.5.  [HI] shall be a formal contracting party vis-a-vis the owners of the
            proprietary rights to the data recording systems to be used pursuant
            to this Contract in the recording and processing of clinical data,
            and vis-a-vis the owners of communications systems and user
            interfaces for the integrated clinical records system. All such
            contracts and amendments to them shall be subject to the consent of
            Islensk erfoagreining. Payments of licence fees shall be subject to
            Section 12.1.

      8.6.  After the integrated clinical records system has been taken into use
            at [HI], the participation of Islensk erfoagreining in the cost of
            the renewal of data
<PAGE>   8
            recording systems, communications systems and user interface, and
            the installation of additional systems shall be subject to the prior
            approval of Islensk erfoagreining. The same applies to costs of
            updating or increasing the capacity of data recording systems,
            communications systems or user interface for the integrated clinical
            records system. The creation of new systems shall be subject to the
            provisions of Section 8.4.

      8.7.  In the event that a data recording system, communications system or
            user interface used by [HI] as part of the integrated clinical
            records system has become inefficient, e.g. for technical,
            professional or financial reasons, Islensk erfoagreining and [HI]
            shall jointly decide whether a request should be made to the owner
            of the proprietary rights to the system for amendments to the
            contract or whether the contract should be terminated. Both Islensk
            erfoagreining and [HI] may take the initiative as regards the review
            of a contract with the owner of the proprietary rights to such
            system pursuant to the above.

9.    Development Projects

      9.1.  Islensk erfoagreining and [HI] will explore the potential for
            co-operation during the term of this contract as regards development
            projects relating to the creation and utilisation of clinical
            records systems or other related projects. The parties shall enter
            into separate contracts on each such project.

10.   The Share of Islensk Erfoagreining in Payments to [HI] in Respect of
      Third-Party Access Granted by [HI] to the Clinical Records System

      10.1. In the event that [HI] or employees of [HI], alone or in
            co-operation with other parties, use the clinical records system set
            up at [HI] pursuant to Article 8 for research, and [HI] receives
            payments from a third party in respect of the research, Islensk
            erfoagreining shall be entitled to a share of such third-party
            payments or their value (e.g. if payments take the form of
            instruments or other equipment) following deduction of direct costs
            of [HI] of the research in question. The share of Islensk
            erfoagreining shall be 35%, unless the parties hereto agree
            otherwise in individual cases. [HI] shall immediately inform Islensk
            erfoagreining of any events giving rise to payments to [HI] pursuant
            to the above. Payment of shares to Islensk erfoagreining shall be
            made within 10 days of receipt by [HI] of individual third-party
            payments. Islensk erfoagreining shall be entitled to have a
            chartered accountant appointed by Islensk erfoagreining verify that
            payments to Islensk erfoagreining in compliance with the above
            provisions. The accountant shall be entitled, for this purpose, to
            examine the payment clauses of contracts made by [HI] with third
            parties regarding the above, as well as accounting documents and
            other documents of [HI] as necessary at his discretion.

11.   Confidentiality

      11.1. The contracting parties and their employees shall keep in confidence
            everything of which they may become aware in the course of their
            work regarding the activities of each other. The confidentiality
            shall remain in effect following the end of the Contract.

      11.2. The contracting parties declare that they and their employees will
            treat information regarding this contract and its implementation as
            confidential,
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            subject to the obligation of [HI] to provide information under the
            Information Act.

12.   Payments of Islensk Erfoagreining for Processing of Clinical Data Pursuant
      to this Contract

      12.1. Islensk erfoagreining will pay the cost of creating an integrated
            clinical records system, cf. Article 8, and new version thereof, and
            [HI] will refund license fees in respect of licence contracts with
            the owners of the proprietary rights.

      12.2. Islensk erfoagreining will pay the cost of assessment pursuant to
            Article 3, including wage costs and other costs of [HI].

      12.3. Islensk erfoagreining will pay the wage costs and operating costs of
            [HI] resulting from the processing of clinical data for transfer to
            the Health Sector Database. This cost shall be specified in a
            separate cost and time schedule prepared jointly by the parties
            hereto when the assessment pursuant to Article 3 has been carried
            out and the decision of Islensk erfoagreining pursuant to Section
            3.3 on the processing of clinical data for transfer to the Health
            Sector Database has been made. The schedule shall describe the
            project stages and set out the project schedule, and estimate the
            human resources required and other costs for each stage, cf. Article
            5. The schedule shall furthermore estimate the cost of teaching and
            training health care employees in the recording and processing of
            clinical data. In the event of part-time employment of an [HI]
            employee, who is also engaged in other work, the proportion of work
            shall be determined in the preparation of the cost estimate. [HI]
            guarantees that the project schedule will be observed. The cost and
            time schedule shall be subjected to review once every six months.
            Islensk erfoagreining may suspend payment for work which is
            demonstrably not performed pursuant to the schedule, provide that
            there is no reasonable justification for such deviation. [HI] may
            halt the transfer of clinical data pursuant to this Contract to the
            Encryption Agency if Islensk erfoagreining does not effect payments
            pursuant to this contract.

      12.4. Islensk erfoagreining will supply [HI] with and pay [HI]'s costs of
            special hardware and/or software necessary to enable processing of
            clinical data for transfer to the Health Sector Database pursuant to
            stages 1 and 2. Islensk erfoagreining will also pay the cost of
            software and hardware for the encryption and transfer of clinical
            data from [HI] to the Data Protection Commission Encryption Agency
            which Islensk erfoagreining supplies to [HI] pursuant to Section
            7.3. Furthermore, Islensk erfoagreining will pay all
            telecommunications cost relating to the transfer of clinical data
            from [HI] to the Data Protection Commission Encryption Agency.

      12.5. [HI] and the employees of [HI] may, at no separate cost, submit
            queries to the Health Sector Database for their own research
            conducted by themselves. Such queries shall be subject to normal
            rules on queries to the Health Sector Database. The above permission
            of [HI] and [HI] employees does not extend to queries made for third
            parties or in respect of scientific research or other projects
            conducted in co-operation with third parties which pay [HI] or [HI]
            employees for their roles in the research. Such queries and payments
            for them
<PAGE>   10
            to Islensk erfoagreining shall be treated as third-party queries to
            the Health Sector Database. Islensk erfoagreining shall be entitled
            to receive from [HI] or the employees of [HI] who submit queries to
            the Health Sector Database based on the above provision satisfactory
            information on the nature of and the parties responsible for the
            scientific research in question in order to clarify whether the
            query falls under the said provision. Islensk erfoagreining may
            refuse a request of [HI] or employees of [HI] for processing of a
            query without special payment if Islensk erfoagreining has
            reasonable grounds for believing that the provisions of this Article
            are being violated.

13.   Term of Effect of the Contract

      13.1. This contract shall take effect on its confirmation by the
            Monitoring Committee, cf. Article 19, as of its date of signature.
            The Contract shall remain in effect while Islensk erfoagreining is
            in possession of an operating licence pursuant to law for the
            creation and operation of a Health Sector Database.

      13.2. If [HI] is merged with another health institution, or its activities
            or scope of activities are changed, with the result that the basis
            for this Contract is altered, Islensk erfoagreining may request a
            review of its terms.

      13.3. In entering into this Contract, the parties recognise that it is
            impractical to make provisions for every contingency which may arise
            during the effective term of the Contract. The parties declare it to
            be their intention that the Contract shall be operated between them
            with fairness.

      13.4. Should however the occurrence of events, including fundamental
            changes in the arrangement or implementation of health services at
            [HI], or in the basis for operation of the Health Sector Database,
            beyond the control of the parties, and not reasonably foreseeable by
            the parties on entering into this Contract, and if such events have
            the effect that the premises of either party for entering into the
            Contract are fundamentally altered with the result that the
            unchanged operation of the Contract would cause unfairness to that
            party, the parties will meet and in good faith negotiate and use
            their best endeavours to agree upon an amendment to this agreement
            to counteract such unfairness. In the event that the parties are
            unable to agree as to the existence of such unfairness or reactions
            to such unfairness, either party may refer the dispute to
            arbitration pursuant to Article 17 hereof. Notwithstanding the
            foregoing, neither party may invoke the provisions of this Section
            13.4 prior to 22 January 2006, or more than one time during the term
            of the original Operating Licence of Islensk erfoagreining, or more
            than one time during the term of an extended or new Operating
            Licence for Islensk erfoagreining.

14.   End of the contract

      14.1. At the end of this Contract, [HI] is entitled, against reasonable
            remuneration, to a licence to software owned by Islensk
            erfoagreining and custom made for [HI] for the recording and
            processing of clinical data. The licence shall cover the right to
            further development of such software for use in the activities of
            [HI]. All such additions and improvements shall be delivered to
            Islensk erfoagreining as they come into existence. Islensk
            erfoagreining will be the
<PAGE>   11
            owner of all such additions and improvements with unlimited rights
            of utilisation and disposal.

15.   Contracting

      15.1. The contracting parties may contract with other parties to perform
            work on their behalf on individual components of this Contract with
            the prior approval of the Monitoring Committee and/or the Data
            Protection Commission, where the component in question requires the
            consent of those parties. If the parties employ another party to
            perform its contractual obligations hereunder, they shall guarantee
            the work of such party to the other party pursuant to the provisions
            hereof.

16.   Operation of the Contract

      16.1. [HI] and Islensk erfoagreining shall hold regular progress meetings
            on the operation of this Contract. A record of minutes shall be kept
            of proceedings of meetings and the parties shall have equal access
            to the minutes.

17.   Settlement of Disputes

      17.1. In the event of any dispute regarding the interpretation of this
            Contract, and if no agreement can be reached between the parties on
            the issue in dispute, an arbitration tribunal composed of three
            arbitrators, one nominated by each party and a third nominated by
            the District Court of Reykjavik, shall resolve the dispute. In other
            respects, the arbitration and arbitration proceedings shall be
            governed by Act No. 53/1989 on Contractual Arbitration.

      17.2. Notwithstanding the provisions of Section 17.1, a contracting party
            who believes that a quick settlement is needed may submit the
            dispute to an arbitrator agreed by both contracting parties on the
            signature of this Contract or subsequently selected as his
            replacement. The arbitrator shall submit an interim decision
            regarding the dispute within 7 days of the submission of the
            dispute. The decision shall be based only on documents submitted
            before the said deadline and before the arbitrator accepts the
            dispute for decision. The arbitrator shall decide which party shall
            bear the cost of his work and the amount of the cost. In other
            respects, the work of the arbitrator and rules of procedure shall be
            governed by Act No. 53/1989 on Contractual Arbitration. The decision
            of the arbitrator can be submitted to arbitration pursuant to
            Section 17.1, provided that this is done within 14 days from the
            delivery of his decision.
<PAGE>   12
18.   Miscellaneous Provisions

      18.1. [HI] shall take regular backup copies of clinical data recorded in
            its data recording systems. The frequency and arrangements of such
            backing up shall be in accordance with accepted practice.

19.   Approval of the Monitoring Committee

      19.1. This Contract is concluded subject to the approval of the Monitoring
            Committee.

                          [Place of signature], [Date]

    For the [Health Institution]         For Islensk erfoagreining ehf.

   ------------------------------        ------------------------------
                                             Kari Stefansson, CEO.Exhibit 10.8

                            AMENDED AND RESTATED

                              COMMSCOPE, INC.

                       1997 LONG-TERM INCENTIVE PLAN

                   (as amended through December 14, 2000)

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                             TABLE OF CONTENTS
                                                                       Page

1. Establishment, Purpose and Effective Date.............................1

         (a) Establishment...............................................1

         (b) Purpose.....................................................1

         (c) Effective Date..............................................1

2. Definitions...........................................................1

3. Scope of the Plan.....................................................6

         (a) Number of Shares Available Under the Plan...................6

         (b) Reduction in the Available Shares in Connection
             with Award Grants...........................................7

         (c) Effect of the Expiration or Termination of Awards...........7

4. Administration........................................................8

         (a) Committee Administration....................................8

         (b) Board Reservation and Delegation............................8

         (c) Committee Authority.........................................8

         (d) Committee Determinations Final..............................9

5. Eligibility...........................................................9

6. Conditions to Grants..................................................11

         (a) General Conditions..........................................11

         (b) Grant of Options and Option Price...........................11

         (c) Grant of Incentive Stock Options............................12

         (d) Grant of Shares of Restricted Stock.........................13

         (e) Grant of Performance Units and Performance Shares...........15

         (f) Grant of Phantom Stock......................................16

         (g) Grant of Director's Shares..................................17

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         (h) Tandem Awards...............................................17

7. Non-transferability...................................................17

8. Exercise..............................................................17

         (a) Exercise of Options.........................................17

         (b) Exercise of Performance Units...............................18

         (c) Payment of Performance Shares...............................19

         (d) Payment of Phantom Stock Awards.............................20

         (e) Exercise, Cancellation, Expiration or Forfeiture of
             Tandem Awards...............................................20

9. Spin-off and Substitute Options.......................................20

10. Effect of Certain Transactions.......................................20

11. Mandatory Withholding Taxes..........................................20

12. Termination of Employment............................................21

13. Securities Law Matters...............................................21

14. No Funding Required..................................................22

15. No Employment Rights.................................................22

16. Rights as a Stockholder..............................................22

17. Nature of Payments...................................................22

18. Non-Uniform Determinations...........................................22

19. Adjustments..........................................................23

20. Amendment of the Plan................................................23

21. Termination of the Plan..............................................23

22. No Illegal Transactions..............................................24

23. Governing Law........................................................24

24. Severability.........................................................24

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          1.   Establishment, Purpose and Effective Date.

               (a)  Establishment.   The  Company  hereby  establishes  the
Amended and Restated CommScope,  Inc. 1997 Long-Term Incentive Plan (as set
forth herein and from time to time amended, the "Plan").

               (b) Purpose. The primary purpose of the Plan is to provide a
means  by  which  key  employees  and  directors  of the  Company  and  its
Subsidiaries   can   acquire  and   maintain   stock   ownership,   thereby
strengthening  their  commitment  to the  success  of the  Company  and its
Subsidiaries  and their  desire to remain  employed  by the Company and its
Subsidiaries, focusing their attention on managing the Company as an equity
owner,   and  aligning   their   interests  with  those  of  the  Company's
stockholders. The Plan also is intended to attract and retain key employees
and  to  provide  such  employees  with  additional  incentive  and  reward
opportunities  designed to encourage them to enhance the profitable  growth
of the Company and its Subsidiaries.

               (c) Effective Date. The Plan shall become effective upon its
adoption by the Board.

          2.   Definitions.

          As used in the Plan,  terms defined  parenthetically  immediately
after  their  use  shall  have the  respective  meanings  provided  by such
definitions and the terms set forth below shall have the following meanings
(such  meanings to be equally  applicable  to both the  singular and plural
forms of the terms defined):

               (a)  "Award"  means  Options,  shares of  restricted  Stock,
                    performance  units,  performance  shares or  Director's
                    Shares granted under the Plan.

               (b)  "Award  Agreement" means the written agreement by which
                    an Award is evidenced.

               (c)  "Beneficial    Owner,"    "Beneficially    Owned"   and
                    "Beneficially   Owning"   shall   have   the   meanings
                    applicable under Rule 13d-3  promulgated under the 1934
                    Act.

               (d)  "Board" means the board of directors of the Company.

               (e)  "Change  in  Capitalization"   means  any  increase  or
                    reduction  in the  number of  shares  of Stock,  or any
                    change in the shares of Stock or  exchange of shares of
                    Stock for a different number or kind of shares or other
                    securities by reason of a stock dividend, extraordinary
                    dividend,  stock  split,  reverse  stock  split,  share
                    combination,    reclassification,     recapitalization,
                    merger,     consolidation,      spin-off,     split-up,
                    reorganization,   issuance   of   warrants

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                    or rights, liquidation, exchange of shares, repurchase
                    of shares, change in corporate structure, or similar
                    event, of or by the Company.

               (f)  "Change of Control" means, any of the following:

                    (i)  the   acquisition  by  any  Person  of  Beneficial
               Ownership  of Voting  Securities  which,  when  added to the
               Voting  Securities then  Beneficially  Owned by such Person,
               would result in such Person  Beneficially Owning 33% or more
               of  the  combined   Voting  Power  of  the  Company's   then
               outstanding Voting Securities;  provided,  however, that for
               purposes of this paragraph (i), a Person shall not be deemed
               to have made an  acquisition  of Voting  Securities  if such
               Person:  (1)  acquires  Voting  Securities  as a result of a
               stock split, stock dividend or other corporate restructuring
               in  which  all  stockholders  of the  class  of such  Voting
               Securities are treated on a pro rata basis; (2) acquires the
               Voting Securities directly from the Company; (3) becomes the
               Beneficial Owner of 33% or more of the combined Voting Power
               of the Company's then outstanding  Voting  Securities solely
               as a result of the  acquisition of Voting  Securities by the
               Company or any Subsidiary  which,  by reducing the number of
               Voting  Securities  outstanding,  increases the proportional
               number of shares Beneficially Owned by such Person, provided
               that if (x) a Person would own at least such percentage as a
               result of the  acquisition  by the Company or any Subsidiary
               and  (y)  after  such  acquisition  by  the  Company  or any
               Subsidiary,  such Person acquires Voting Securities, then an
               acquisition of Voting Securities shall have occurred; (4) is
               the Company or any  corporation  or other  Person of which a
               majority  of its voting  power or its equity  securities  or
               equity  interest  is owned  directly  or  indirectly  by the
               Company (a  "Controlled  Entity");  or (5)  acquires  Voting
               Securities in connection  with a  "Non-Control  Transaction"
               (as defined in paragraph (iii) below); or

                    (ii) the individuals who, as of the Effective Date, are
               members of the Board (the  "Incumbent  Board") cease for any
               reason  to  constitute  at least  two-thirds  of the  Board;
               provided,  however,  that if either the  election of any new
               director or the  nomination for election of any new director
               by the Company's  stockholders  was approved by a vote of at
               least  two-thirds  of the  Incumbent  Board  prior  to  such
               election  or   nomination,   such  new  director   shall  be
               considered  as a member  of the  Incumbent  Board;  provided
               further,  however,  that no individual shall be considered a
               member of the Incumbent Board if such  individual  initially
               assumed office as a result of either an actual or threatened
               "Election  Contest" (as described in Rule 14a-11 promulgated
               under   the  1934  Act)  or  other   actual  or   threatened
               solicitation  of  proxies or  consents  by or on behalf of a
               Person other than the Board (a "Proxy Contest") including by
               reason of any  agreement  intended  to avoid or  settle  any
               Election Contest or Proxy Contest; or

                    (iii) approval by stockholders of the Company of:

                         (A)  a  merger,  consolidation  or  reorganization
                    involving  the  Company  (a  "Business   Combination"),
                    unless

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                              (1)   the   stockholders   of  the   Company,
                         immediately before the Business Combination,  own,
                         directly or indirectly  immediately  following the
                         Business  Combination,  at least a majority of the
                         combined  voting power of the  outstanding  voting
                         securities of the  corporation  resulting from the
                         Business Combination (the "Surviving Corporation")
                         in  substantially  the  same  proportion  as their
                         ownership  of the  Voting  Securities  immediately
                         before the Business Combination, and

                              (2) the  individuals  who were members of the
                         Incumbent Board immediately prior to the execution
                         of  the  agreement   providing  for  the  Business
                         Combination  constitute at least a majority of the
                         members of the Board of Directors of the Surviving
                         Corporation, and

                              (3) no Person  (other than the Company or any
                         Controlled  Entity,  a trustee or other  fiduciary
                         holding  securities  under  one or  more  employee
                         benefit  plans  or  arrangements   (or  any  trust
                         forming a part thereof) maintained by the Company,
                         the  Surviving   Corporation   or  any  Controlled
                         Entity,  or any Person who,  immediately  prior to
                         the Business Combination, had Beneficial Ownership
                         of 33% or  more  of the  then  outstanding  Voting
                         Securities)  has  Beneficial  Ownership  of 33% or
                         more of the combined voting power of the Surviving
                         Corporation's  then outstanding  voting securities
                         (a Business Combination  satisfying the conditions
                         of clauses (1),  (2) and (3) of this  subparagraph
                         (A)  shall  be  referred  to  as  a   "Non-Control
                         Transaction");

                         (B) a complete  liquidation  or dissolution of the
                    Company; or

                         (C)  the  sale  or  other  disposition  of  all or
                    substantially  all of the assets of the Company  (other
                    than a transfer to a Controlled Entity).

          Notwithstanding  the foregoing,  a Change of Control shall not be
deemed to occur solely because 33% or more of the then  outstanding  Voting
Securities  is  Beneficially  Owned by (x) a  trustee  or  other  fiduciary
holding securities under one or more employee benefit plans or arrangements
(or any trust  forming a part  thereof)  maintained  by the  Company or any
Controlled  Entity or (y) any corporation  which,  immediately prior to its
acquisition  of such  interest,  is owned  directly  or  indirectly  by the
stockholders  of the Company in the same  proportion as their  ownership of
stock in the Company immediately prior to such acquisition.

               (g)  "Committee"  means the committee of the Board appointed
                    pursuant to Article 4.

               (h)  "Company"   means    CommScope,    Inc.,   a   Delaware
                    corporation.

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               (i)  "Director's  Shares"  means the shares of Stock awarded
                    to a  nonemployee  director of the Company  pursuant to
                    Article 6(h).

               (j)  "Disability"  means  a  mental  or  physical  condition
                    which,  in the  opinion  of the  Committee,  renders  a
                    Grantee  unable  or  incompetent  to carry  out the job
                    responsibilities  which such Grantee held or the duties
                    to which  such  Grantee  was  assigned  at the time the
                    disability  was  incurred,  and which is expected to be
                    permanent or for an indefinite duration.

               (k)  "Effective  Date"  means  the  date  that  the  Plan is
                    adopted by the Board.

               (l)  "Fair  Market  Value" of any security of the Company or
                    any other issuer means, as of any applicable date:

                    (i) if the  security  is listed for  trading on the New
               York Stock Exchange,  the closing price, regular way, of the
               security  as  reported  on  the  New  York  Stock   Exchange
               Composite  Tape, or if no such reported sale of the security
               shall have occurred on such date, on the next preceding date
               on which there was such a reported sale, or

                    (ii) if the security is not so listed, but is listed on
               another  national  securities  exchange  or  authorized  for
               quotation on the National  Association of Securities Dealers
               Inc.'s NASDAQ  National  Market System  ("NASDAQ/NMS"),  the
               closing price, regular way, of the security on such exchange
               or  NASDAQ/NMS,  as the case may be, or if no such  reported
               sale of the security  shall have  occurred on such date,  on
               the next  preceding  date on which there was such a reported
               sale, or

                    (iii) if the  security  is not listed for  trading on a
               national  securities exchange or authorized for quotation on
               NASDAQ/NMS,  the average of the closing bid and asked prices
               as  reported  by  the  National  Association  of  Securities
               Dealers Automated Quotation System ("NASDAQ") or, if no such
               prices  shall have been so  reported  for such date,  on the
               next  preceding date for which such prices were so reported,
               or

                    (iv) if the  security  is not listed  for  trading on a
               national  securities  exchange  or  is  not  authorized  for
               quotation on NASDAQ/NMS or NASDAQ,  the fair market value of
               the security as determined in good faith by the Committee.

               (m)  "Grant  Date"  means  the  date of  grant  of an  Award
                    determined in accordance with Article 6.

               (n)  "Grantee"  means an individual  who has been granted an
                    Award.

               (o)  "Incentive Stock Option" means an Option satisfying the
                    requirements  of Section  422 of the  Internal  Revenue
                    Code and  designated  by the  Committee as an Incentive
                    Stock Option.

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<PAGE>

               (p)  "Internal Revenue Code" means the Internal Revenue Code
                    of  1986,  as  amended,  and  regulations  and  rulings
                    thereunder.  References to a particular  Section of the
                    Internal  Revenue  Code  shall  include  references  to
                    successor provisions.

               (q)  "Measuring Period" has the meaning specified in Article
                    6(f)(ii)(B).

               (r)  "Minimum  Consideration"  means  the $.0l par value per
                    share  of  Stock  or  such  larger  amount   determined
                    pursuant  to  resolution  of the  Board  to be  capital
                    within  the  meaning  of  Section  154 of the  Delaware
                    General Corporation Law.

               (s)  "1934 Act" means the  Securities  Exchange Act of 1934,
                    as amended.

               (t)  "Nonqualified  Stock  Option"  means an Option which is
                    not  an  Incentive   Stock  Option  or  other  type  of
                    statutory stock option under the Internal Revenue Code.

               (u)  "Option"  means an option to purchase  Stock granted or
                    issued  under  the  Plan,   including   Substitute  and
                    Spin-off Options.

               (v)  "Option  Price" means the per share  purchase  price of
                    (i) Stock subject to an Option or (ii) restricted Stock
                    subject to an Option.

               (w)  "Performance-Based  Compensation"  means any  Option or
                    Award that is intended to constitute "performance based
                    compensation"    within   the    meaning   of   Section
                    162(m)(4)(C)   of  the   Code   and   the   regulations
                    promulgated thereunder.

               (x)  "Performance  Percentage" has the meaning  specified in
                    Article 6(f)(ii)(C).

               (y)  "Person"  means a person within the meaning of Sections
                    13(d) and 14(d) of the 1934 Act.

               (z)  "Plan" has the meaning set forth in Article 1(a).

               (aa) "SEC" means the Securities and Exchange Commission.

               (bb) "Section  16  Grantee"   means  a  person   subject  to
                    potential  liability with respect to equity  securities
                    of the Company under Section 16(b) of the 1934 Act.

               (cc) "Spin-off  Option" means an Option that has been issued
                    under this Plan to certain  named  persons  pursuant to
                    the  Employee  Benefits  Allocation  Agreement  between
                    General Semiconductor, Inc. ("GS"), CommScope, Inc. and
                    the Company, dated June 25, 1997, as amended, modified,
                    or otherwise supplemented (the "Benefits Agreement").

                                    -5-
<PAGE>

               (dd) "Stock" means common  stock,  par value $.01 per share,
                    of the Company.

               (ee) "Subsidiary" means (i) except as provided in subsection
                    (ii)  below,  any  corporation  which  is a  subsidiary
                    corporation within the meaning of Section 424(f) of the
                    Code with respect to the Company,  and (ii) in relation
                    to the  eligibility to receive  Options or Awards other
                    than Incentive  Stock Options,  any entity,  whether or
                    not  incorporated,  in which the  Company  directly  or
                    indirectly owns either (A) Voting Securities possessing
                    at least 50% of the Voting Power of such entity, or (B)
                    if such entity  does not issue  Voting  Securities,  at
                    least 50% of the ownership interests in such entity.

               (ff) "Substitute  Option"  means  an  Option  that  has been
                    issued under this Plan to certain  persons  pursuant to
                    the Benefits Agreement.

               (gg) "10%  Owner"  means a person who owns stock  (including
                    stock  treated  as owned  under  Section  424(d) of the
                    Internal  Revenue Code) possessing more than 10% of the
                    Voting Power of the Company.

               (hh) "Termination  of  Employment"  occurs  the first day on
                    which  an  individual  is  for  any  reason  no  longer
                    employed by the Company or any of its Subsidiaries,  or
                    with respect to an  individual  who is an employee of a
                    Subsidiary,  the  first  day on which  the  Company  no
                    longer owns Voting  Securities  possessing at least 50%
                    of the Voting Power of such Subsidiary.

               (ii) "Voting  Power" means the combined  voting power of the
                    then outstanding Voting Securities.

               (jj) "Voting  Securities" means, with respect to the Company
                    or any Subsidiary, any securities issued by the Company
                    or  such  Subsidiary,   respectively,  which  generally
                    entitle the holder  thereof to vote for the election of
                    directors of the Company.

          3.   Scope of the Plan.

               (a) Number of Shares  Available  Under the Plan. The maximum
number of shares of Stock that may be made the  subject  of Awards  granted
under the Plan is  6,600,000  plus the  number of shares of Stock  that are
covered by Substitute  Options and Spin-off Options (or the number and kind
of shares of Stock or other  securities  to which such  shares of Stock are
adjusted upon a Change in Capitalization pursuant to Article 18); provided,
however,  that in the aggregate,  not more than 200,000 shares of Stock may
be made the subject of Awards  other than  Options.  The maximum  number of
shares of Stock that may be the subject of Options  (other than  Substitute
Options and Spin-off Options) and Awards granted to any individual pursuant
to the Plan in any three (3) calendar  year period may not exceed  500,000.
The maximum  dollar  amount of cash or the Fair Market  Value of Stock that
any  individual  may receive in any calendar year in respect of performance
units denominated in dollars may not exceed  $1,000,000.  The

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Company  shall reserve for the purpose of the Plan,  out of its  authorized
but  unissued  shares  of  Stock  or out of  shares  held in the  Company's
treasury,  or  partly  out of  each,  such  number  of  shares  as shall be
determined  by the Board.  The Board shall have the  authority to cause the
Company  to  purchase  from  time to time  shares  of  Stock  to be held as
treasury shares and used for or in connection with Awards.  The issuance of
Substitute  Options  and  Spin-off  Options  shall not  reduce  the  shares
available for grants under the Plan or to a Grantee in any calendar year.

               (b)  Reduction in the Available  Shares in  Connection  with
Award  Grants.  Upon the grant of an Award,  the  number of shares of Stock
available  under  Article 3(a) for the granting of further  Awards shall be
reduced as follows:

                    (i)  Performance  Units  Denominated  in  Dollars.   In
               connection  with  the  granting  of  each  performance  unit
               denominated  in  dollars,  the  number  of  shares  of Stock
               available  under  Article  3(a) for the  granting of further
               Awards  shall be reduced by the  quotient  of (x) the dollar
               amount  represented by the  performance  unit divided by (y)
               the  Fair  Market  Value  of a share  of  Stock  on the date
               immediately  preceding  the  Grant  Date of the  performance
               unit.

                    (ii) Other Awards.  In connection  with the granting of
               each Award,  other than a performance  unit  denominated  in
               dollars,  the  number  of shares  of Stock  available  under
               Article  3(a) for the  granting of further  Awards  shall be
               reduced by a number of shares  equal to the number of shares
               of Stock  in  respect  of which  the  Award  is  granted  or
               denominated;   provided,  however,  that  if  any  Award  is
               exercised by tendering  shares of Stock,  either actually or
               by attestation, to the Company as full or partial payment of
               the exercise  price,  the maximum  number of shares of Stock
               available  under  Section  3(a)  shall be  increased  by the
               number of shares of Stock so tendered.

          Notwithstanding  the  foregoing,  where  two or more  Awards  are
granted  with  respect to the same shares of Stock,  such  shares  shall be
taken into account only once for purposes of this Article 3(b).

               (c) Effect of the Expiration or  Termination  of Awards.  If
and to the extent an Option or Award  (including a  Substitute  Option or a
Spin-off  Option)  expires,  terminates  or is  canceled,  settled  in cash
(including the settlement of tax  withholding  obligations  using shares of
Stock) or forfeited for any reason  without  having been  exercised in full
(including,  without  limitation,  a cancellation  of an Option pursuant to
Article  4(c)(vi)),  the  shares  of Stock  associated  with  the  expired,
terminated,  canceled,  settled or  forfeited  portion of the Award (to the
extent  the  number of shares  available  for the  granting  of Awards  was
reduced  pursuant to Article 3(b)) shall again become  available for Awards
under the Plan.

          4.   Administration.

               (a) Committee  Administration.  Subject to Article 4(b), the
Plan shall be  administered  by the  Committee,  which shall consist of not
less than two  "non-employee  directors"  within the meaning of Rule 16b-3,
and  to  the  extent  necessary  for  any  Award  intended

                                    -7-
<PAGE>

to qualify as Performance-Based  Compensation to so qualify, each member of
the Committee shall be an "outside  director" within the meaning of Section
162(m) of the Internal Revenue Code.

               (b) Board Reservation and Delegation.  The Board may, in its
discretion,  reserve to itself or exercise any or all of the  authority and
responsibility of the Committee hereunder.  It may also delegate to another
committee of the Board any or all of the  authority and  responsibility  of
the  Committee  with  respect to Awards to Grantees  who are not Section 16
Grantees at the time any such  delegated  authority  or  responsibility  is
exercised.  Such other  committee may consist of one or more  directors who
may, but need not be, officers or employees of the Company or of any of its
Subsidiaries.  To the extent  that the Board has  reserved  to  itself,  or
exercised the authority and  responsibility of the Committee,  or delegated
the authority and  responsibility of the Committee to such other committee,
all  references  to the  Committee  in the Plan shall be to the Board or to
such other committee.

               (c) Committee  Authority.  The Committee shall have full and
final authority,  in its discretion,  but subject to the express provisions
of the Plan, as follows:

                    (i) to grant Awards,

                    (ii) to determine  (A) when Awards may be granted,  and
               (B) whether or not specific  Awards shall be identified with
               other  specific  Awards,  and if so,  whether  they shall be
               exercisable  cumulatively  with, or  alternatively  to, such
               other specific Awards,

                    (iii) to issue Substitute Options and Spin-off Options,

                    (iv)  to   interpret   the   Plan   and  to  make   all
               determinations necessary or advisable for the administration
               of the Plan,

                    (v)  to  prescribe,   amend,   and  rescind  rules  and
               regulations  relating  to  the  Plan,   including,   without
               limitation,  rules with  respect to the  exercisability  and
               nonforfeitability   of  Awards  upon  the   Termination   of
               Employment of a Grantee,

                    (vi) to determine the terms and provisions of the Award
               Agreements,  which  need  not be  identical  and,  with  the
               consent of the Grantee,  to modify any such Award  Agreement
               at any time,

                    (vii) to  cancel,  with  the  consent  of the  Grantee,
               outstanding Awards,

                    (viii) to  accelerate  the  exercisability  of,  and to
               accelerate  or  waive  any or all  of the  restrictions  and
               conditions applicable to, any Award,

                    (ix) to  make  such  adjustments  or  modifications  to
               Awards to Grantees  working outside the United States as are
               necessary and advisable to fulfill the purposes of the Plan,

                                    -8-
<PAGE>

                    (x)  to   authorize   any   action   of  or  make   any
               determination  by the  Company as the  Committee  shall deem
               necessary or advisable  for carrying out the purposes of the
               Plan, and

                    (xi)   to   impose    such    additional    conditions,
               restrictions,  and limitations  upon the grant,  exercise or
               retention  of  Awards  as  the  Committee  may,   before  or
               concurrently  with  the  grant  thereof,  deem  appropriate,
               including,   without  limitation,   requiring   simultaneous
               exercise of related  identified  Awards,  and  limiting  the
               percentage  of  Awards  which  may  from  time  to  time  be
               exercised by a Grantee.

               (d) Committee Determinations Final. The determination of the
Committee on all matters  relating to the Plan or any Award Agreement shall
be conclusive and final. No member of the Committee shall be liable for any
action or determination  made in good faith with respect to the Plan or any
Award.

          5.   Eligibility.

          Awards may be granted to any  employee  of the  Company or any of
its  Subsidiaries,  and  Nonqualified  Stock  Options  may  be  granted  to
nonemployee  directors of the Company pursuant to Article  6(b)(ii)(B).  In
selecting  the  individuals  to whom Awards may be  granted,  as well as in
determining  the number of shares of Stock  subject to, and the other terms
and  conditions  applicable to, each Award,  the Committee  shall take into
consideration  such factors as it deems  relevant in promoting the purposes
of the Plan. In addition,  Nonqualified Stock Options will be automatically
granted to  nonemployee  directors of the Company,  as set forth in Article
6(b)(ii)(A),   and  Director's  Shares  will  be  automatically  issued  to
nonemployee directors of the Company pursuant to Article 6(g).

                                    -9-
<PAGE>

          6.   Conditions to Grants.

(a)      General Conditions.

                    (i) The  Grant  Date of an  Award  shall be the date on
               which the  Committee  grants the Award or such later date as
               specified in advance by the Committee.

                    (ii) The term of each Award (subject to Article 6I with
               respect to Incentive Stock Options) shall be a period of not
               more than ten years from the Grant Date and shall be subject
               to  earlier   termination  as  provided  herein  or  in  the
               applicable  Award  Agreement;  provided,  however,  that the
               Committee   may  provide  that  an  Option  (other  than  an
               Incentive  Stock Option) may, upon the death of the Grantee,
               be exercised  for up to one year  following  the date of the
               Grantee's death even if such period extends beyond ten years
               from the date the Option is granted.

                    (iii) A Grantee may, if otherwise eligible,  be granted
               additional Awards in any combination.

                    (iv) The  Committee  may grant  Awards  with  terms and
               conditions which differ among the Grantees  thereof.  To the
               extent not set forth in the Plan,  the terms and  conditions
               of each Award shall be set forth in an Award Agreement.

               (b) Grant of Options and Option Price. The Committee may, in
its discretion, and shall as provided in Article 6(b)(ii), grant Options as
follows:

                    (i) Employee Options.  Options to acquire  unrestricted
               Stock or  restricted  Stock may be granted  to any  employee
               eligible  under Article 5 to receive  Awards.  No later than
               the Grant Date of any Option,  the Committee shall determine
               the Option  Price  which  shall not be less than 100% of the
               Fair Market Value of the Stock on the Grant Date.

                    (ii) Nonemployee Director Options.

                         (A). Automatic Grants.  Nonqualified Stock Options
                    with  respect to 20,000  shares of  unrestricted  Stock
                    shall be granted to each  nonemployee  director  of the
                    Company  upon his or her initial  election to the Board
                    and every three years  thereafter on the anniversary of
                    such  nonemployee  director's  initial  election to the
                    Board  as  long as such  nonemployee  director  is then
                    still serving on the Board.

                                    -10-
<PAGE>

                         (B).  Discretionary  Grants.   Nonqualified  Stock
                    Options to acquire unrestricted or restricted stock may
                    be granted to nonemployee directors of the Company from
                    time to time.

                         (C). Terms Applicable to all Nonemployee  Director
                    Options.  Each  Nonqualified  Stock Option granted to a
                    nonemployee director will be granted at an Option Price
                    equal to 100% of the Fair Market  Value of the Stock on
                    the Grant Date, will become exercisable with respect to
                    one-third  of the  underlying  shares  on  each  of the
                    first,  second  and  third  anniversaries  of the Grant
                    Date,  and  will  have  a  term  of  ten  years.  If  a
                    nonemployee  director  ceases to serve as a director of
                    the  Company  for any reason,  any  Nonqualified  Stock
                    Option  granted to such  nonemployee  director shall be
                    exercisable  during its  remaining  term, to the extent
                    that such Nonqualified  Stock Option was exercisable on
                    the  date  such  nonemployee  director  ceased  to be a
                    director.

               (c) Grant of  Incentive  Stock  Options.  At the time of the
grant of any Option,  the Committee may designate that such Option shall be
an Incentive  Stock Option.  Any Option  designated  as an Incentive  Stock
Option:

                    (i)  shall  have an  Option  Price of (A) not less than
               100% of the Fair Market Value of the Stock on the Grant Date
               or (B) in the case of a 10% Owner, not less than 110% of the
               Fair Market Value of the Stock on the Grant Date;

                    (ii) shall have a term of not more than ten years (five
               years,  in the case of a 10% Owner) from the Grant Date, and
               shall be subject to earlier  termination as provided  herein
               or in the applicable Award Agreement;

                    (iii)  shall,  if,  with  respect  to  any  grant,  the
               aggregate  Fair  Market  Value of Stock  (determined  on the
               Grant Date) of all Incentive Stock Options granted under the
               Plan and "incentive  stock  options"  (within the meaning of
               Section  422 of the Code)  granted  under  any  other  stock
               option  plan of the  Grantee's  employer  or any  parent  or
               subsidiary thereof (in either case determined without regard
               to this  Article  6(c)) are  exercisable  for the first time
               during any  calendar  year exceeds  $100,000,  be treated as
               Nonqualified  Stock  Options.  For purposes of the foregoing
               sentence,  Incentive  Stock  Options  shall  be  treated  as
               Nonqualified  Stock Options  according to the order in which
               they  were  granted  such  that  the most  recently  granted
               Incentive  Stock Options are first  treated as  Nonqualified
               Stock Options.

                    (iv) shall be granted within ten years from the earlier
               of the date the Plan is adopted by the Board or the date the
               Plan is approved by the stockholders of the Company; and

                                    -11-
<PAGE>

                    (v) shall  require the Grantee to notify the  Committee
               of any  disposition  of any  Stock  issued  pursuant  to the
               exercise   of  the   Incentive   Stock   Option   under  the
               circumstances  described  in Section  421(b) of the Internal
               Revenue   Code    (relating    to   certain    disqualifying
               dispositions), within ten days of such disposition.

               (d) Grant of Shares of Restricted Stock.

                    (i) The Committee may, in its discretion,  grant shares
               of restricted Stock to any employee eligible under Article 5
               to receive Awards.

                    (ii)  Before  the  grant of any  shares  of  restricted
               Stock, the Committee shall determine, in its discretion:

                         (A) whether the certificates for such shares shall
                    be  delivered to the Grantee or held  (together  with a
                    stock power executed in blank by the Grantee) in escrow
                    by the  Secretary  of the  Company  until  such  shares
                    become nonforfeitable or are forfeited;

                         (B) the per share  purchase  price of such shares,
                    which  may be  zero;  provided,  however,  that the per
                    share  purchase  price of all such  shares  (other than
                    treasury  shares)  shall not be less  than the  Minimum
                    Consideration for each such share;

                         (C) the restrictions  applicable to such grant and
                    the   time  or  times   upon   which   any   applicable
                    restrictions  on  the  restricted  Stock  shall  lapse;
                    provided, however, that except in the case of shares of
                    restricted  Stock issued in full or partial  settlement
                    of another  Award or other earned  compensation,  or in
                    the event of the Grantee's  termination  of employment,
                    as  determined  by the  Committee  and set  forth in an
                    Award  Agreement,  such  restrictions  shall  not lapse
                    prior to the third anniversary of the Grant Date of the
                    restricted Stock; and

                         (D)   whether   the  payment  to  the  Grantee  of
                    dividends, or a specified portion thereof,  declared or
                    paid on such  shares by the  Company  shall be deferred
                    until the lapsing of the restrictions imposed upon such
                    shares and shall be held by the Company for the account
                    of  the  Grantee,   whether  such  dividends  shall  be
                    reinvested in additional shares of restricted Stock (to
                    the  extent  shares  are  available  under  Article  3)
                    subject  to the same  restrictions  and other  terms as
                    apply  to  the  shares  with   respect  to  which  such
                    dividends  are issued or otherwise  reinvested in Stock
                    or held in escrow, whether interest will be credited to
                    the  account  of  the  Grantee   with  respect  to  any
                    dividends  which are not  reinvested  in  restricted or
                    unrestricted  Stock,  and whether  any Stock  dividends
                    issued  with  respect  to the  restricted  Stock  to be
                    granted  shall  be  treated  as  additional  shares  of
                    restricted Stock.

                                    -12-
<PAGE>

                    (iii)  Payment of the  purchase  price (if greater than
               zero) for shares of  restricted  Stock shall be made in full
               by the  Grantee  before the  delivery of such shares and, in
               any  event,  no later than ten days after the Grant Date for
               such shares.  Such payment may be made, as determined by the
               Committee in its  discretion,  in any one or any combination
               of the following:

                         (A) cash; or

                         (B)  with the  prior  approval  of the  Committee,
                    shares of restricted or unrestricted Stock owned by the
                    Grantee  prior to such  grant  and  valued  at its Fair
                    Market Value on the business day immediately  preceding
                    the date of payment;

               provided, however, that, in the case of payment in shares of
               restricted or unrestricted  Stock, if the purchase price for
               restricted  Stock  ("New  Restricted  Stock")  is paid  with
               shares of restricted  Stock ("Old  Restricted  Stock"),  the
               restrictions applicable to the New Restricted Stock shall be
               the same as if the Grantee  had paid for the New  Restricted
               Stock in cash unless, in the judgment of the Committee,  the
               Old  Restricted  Stock  was  subject  to a  greater  risk of
               forfeiture,  in  which  case  a  number  of  shares  of  New
               Restricted  Stock  equal  to the  number  of  shares  of Old
               Restricted  Stock  tendered  in payment  for New  Restricted
               Stock shall be subject to the same  restrictions  as the Old
               Restricted  Stock,   determined   immediately   before  such
               payment.

                    (iv) The Committee may, but need not,  provide that all
               or any  portion of a  Grantee's  Award of  restricted  Stock
               shall be forfeited:

                         (A)  except as  otherwise  specified  in the Award
                    Agreement, upon the Grantee's Termination of Employment
                    within a specified time period after the Grant Date; or

                         (B) if the Company or the Grantee does not achieve
                    specified  performance  goals  within a specified  time
                    period  after the Grant Date and  before the  Grantee's
                    Termination of Employment; or

                         (C)   upon   failure   to   satisfy   such   other
                    restrictions  as the Committee may specify in the Award
                    Agreement.

                    (v) If a share of restricted Stock is forfeited, then:

                         (A) the  Grantee  shall be deemed  to have  resold
                    such share of  restricted  Stock to the  Company at the
                    lesser of (1) the  purchase  price paid by the  Grantee
                    (such purchase price shall be deemed to be zero dollars
                    ($0) if no  purchase  price  was  paid) or (2) the Fair
                    Market  Value  of a share  of Stock on the date of such
                    forfeiture;

                                    -13-
<PAGE>

                         (B)  the  Company  shall  pay to the  Grantee  the
                    amount determined under clause (A) of this sentence, if
                    not zero, as soon as is  administratively  practicable,
                    but in any case within 90 days after forfeiture; and

                         (C) such share of restricted  Stock shall cease to
                    be  outstanding,  and  shall no  longer  confer  on the
                    Grantee  thereof  any  rights as a  stockholder  of the
                    Company,  from  and  after  the  date of the  Company's
                    tender of the payment  specified  in clause (B) of this
                    sentence, whether or not such tender is accepted by the
                    Grantee,  or the date the restricted Stock is forfeited
                    if no purchase price was paid for the restricted Stock.

                    (vi)  Any  share  of  restricted  Stock  shall  bear an
               appropriate   legend   specifying   that   such   share   is
               non-transferable  and subject to the  restrictions set forth
               in the  Plan  and the  Award  Agreement.  If any  shares  of
               restricted  Stock become  nonforfeitable,  the Company shall
               cause  certificates for such shares to be issued or reissued
               without such legend and  delivered to the Grantee or, at the
               request  of the  Grantee,  shall  cause  such  shares  to be
               credited to a brokerage account specified by the Grantee.

               (e) Grant of Performance Units and Performance Shares.

                    (i)  The  Committee  may,  in  its  discretion,   grant
               performance  units or  performance  shares  to any  employee
               eligible under Article 5 to receive Awards.

                    (ii)  Before  the  grant  of any  performance  unit  or
               performance share, the Committee shall:

                         (A) designate a period,  of not less than one year
                    nor more than five years,  for the  measurement  of the
                    extent to which  performance  goals are  attained  (the
                    "Measuring Period");

                         (B) determine performance goals applicable to such
                    grant;  provided,  however,  that the performance goals
                    with respect to a Measuring Period shall be established
                    in writing by the  Committee  by the earlier of (x) the
                    date on which a quarter  of the  Measuring  Period  has
                    elapsed or (y) the date which is ninety (90) days after
                    the  commencement of the Measuring  Period,  and in any
                    event while the performance relating to the performance
                    goals remain substantially uncertain; and

                         (C)  assign  a  "Performance  Percentage"  to each
                    level of  attainment  of  performance  goals during the
                    Measuring  Period,  with the  percentage  applicable to
                    minimum  attainment  being  zero  percent  (0%) and the
                    percentage  applicable  to  optimum  attainment  to  be
                    determined by the Committee from time to time.

                                    -14-
<PAGE>

                    (iii) The performance  goals  applicable to performance
               units or performance  shares shall, in the discretion of the
               Committee,  be based on stock  price,  earnings  per  share,
               operating  income,  return on equity or  assets,  cash flow,
               EBITDA or any combination of the foregoing. Such performance
               goals may be absolute or relative (to prior  performance  or
               to the performance of one or more other entities or external
               indices)  and may be  expressed  in terms  of a  progression
               within a  specified  range.  At the time of the  granting of
               performance  units  or  performance  shares,  or at any time
               thereafter,  in either  case to the extent  permitted  under
               Section  162(m) of the Code and the  regulations  thereunder
               without adversely affecting the treatment of the performance
               unit or performance share as Performance-Based Compensation,
               the   Committee   may   provide  for  the  manner  in  which
               performance will be measured  against the performance  goals
               (or may adjust the performance  goals) to reflect the impact
               of  specified  corporate   transactions,   special  charges,
               foreign currency effects,  accounting or tax law changes and
               other extraordinary or nonrecurring events.

                    (iv)  Prior  to the  vesting,  payment,  settlement  or
               lapsing of any restrictions  with respect to any performance
               unit or  performance  share that is intended  to  constitute
               Performance-Based  Compensation  made  to a  Grantee  who is
               subject to Section 162(m) of the Code,  the Committee  shall
               certify in writing  that the  applicable  performance  goals
               have been satisfied.

                    (v) Unless  otherwise  expressly stated in the relevant
               Award Agreement, each performance unit and performance share
               granted  under the Plan is intended to be  Performance-Based
               Compensation   and  the   Committee   shall   interpret  and
               administer the applicable provisions of the Plan in a manner
               consistent therewith.  Any provisions inconsistent with such
               treatment  shall be  inoperative  and  shall  not  adversely
               affect the  treatment of  performance  units or  performance
               shares granted hereunder as Performance-Based  Compensation.
               The  Committee   shall  not  be  entitled  to  exercise  any
               discretion  otherwise  authorized  hereunder with respect to
               such performance unit or performance share if the ability to
               exercise such  discretion or the exercise of such discretion
               itself  would cause the  compensation  attributable  to such
               performance unit or performance  share to fail to qualify as
               Performance-Based Compensation.

               (f)  Grant of  Phantom  Stock.  The  Committee  may,  in its
discretion,  grant shares of phantom  stock to any employee who is eligible
under Article 5 to receive  Awards.  Such phantom stock shall be subject to
the terms and conditions  established by the Committee and set forth in the
applicable Award Agreement.

               (g)  Grant of  Director's  Shares.  There  shall be  granted
Director's Shares with respect to 1,000 shares of Stock to each nonemployee
director  of the  Company  upon his or her  initial  election to the Board.
Director's Shares shall be fully vested and transferable upon issuance.

                                    -15-
<PAGE>

               (h) Tandem Awards.  The Committee may grant and identify any
Award with any other Award granted under the Plan ("Tandem  Award"),  other
than a  Substitute  Option or a Spin-off  Option,  on terms and  conditions
determined by the Committee.

          7.   Non-transferability.

          Unless  set forth in the  applicable  Award  Agreement,  no Award
(other than an Award of restricted  Stock) granted  hereunder  shall by its
terms be assignable or  transferable  except by will or the laws of descent
and distribution or, in the case of an Option other than an Incentive Stock
Option,  pursuant to a domestic relations order (within the meaning of Rule
16a-12  promulgated  under the  Exchange  Act).  An Option may be exercised
during the lifetime of a Grantee only by the Grantee or his or her guardian
or legal representatives.  Notwithstanding the foregoing, the Committee may
set  forth  in the  Award  Agreement  evidencing  an Award  (other  than an
Incentive Stock Option) at the time of grant or thereafter,  that the Award
may be transferred to members of the Grantee's  immediate family, to trusts
solely for the benefit of such immediate family members and to partnerships
in which such family members  and/or trusts are the only partners,  and for
purposes of this Plan, a  transferee  of an Award shall be deemed to be the
Grantee.  For this purpose,  immediate  family means the Grantee's  spouse,
parents,  children,  stepchildren and grandchildren and the spouses of such
parents,  children,  stepchildren and grandchildren.  The terms of an Award
shall be final,  binding and conclusive upon the beneficiaries,  executors,
administrators,  heirs  and  successors  of  the  Grantee.  Each  share  of
restricted  Stock  shall  be  non-transferable  until  such  share  becomes
nonforfeitable.

          8.   Exercise.

               (a) Exercise of Options.  Subject to Articles 4(c)(vii),  12
and 13 and such terms and  conditions  as the  Committee  may impose,  each
Option shall be  exercisable  in one or more  installments  commencing  not
earlier  than the  first  anniversary  of the  Grant  Date of such  Option;
provided, however, that all Options held by each Grantee shall become fully
(100%) exercisable upon the occurrence of a Change of Control regardless of
whether the acceleration of the  exercisability of such Options would cause
such Options to lose their  eligibility  for  treatment as Incentive  Stock
Options.  Notwithstanding the foregoing,  Options may not be exercised by a
Grantee for twelve months following a hardship distribution to the Grantee,
to the  extent  such  exercise  is  prohibited  under  Treasury  Regulation
ss.1.401(k)-1(d)(2)(iv)(B)(4).  Each Option  shall be exercised by delivery
to the Company of written notice of intent to purchase a specific number of
shares of Stock  subject to the Option.  The Option  Price of any shares of
Stock as to which an Option shall be exercised shall be paid in full at the
time of the  exercise.  Payment may be made, as determined by the Committee
in its discretion with respect to Options granted to eligible employees and
in all cases  with  respect to Options  granted  to  nonemployee  directors
pursuant  to  Article  6(b)(ii),  in  any  one or  any  combination  of the
following:

                    (i) cash,

                    (ii) shares of  unrestricted  Stock held by the Grantee
               for at least six  months  (or such  lesser  period as may be
               permitted  by the  Committee)  prior to the

                                    -16-
<PAGE>

               exercise of the Option,  and valued at its Fair Market Value
               on the last business day  immediately  preceding the date of
               exercise, or

                    (iii)  through  simultaneous  sale  through a broker of
               shares  of  unrestricted  Stock  acquired  on  exercise,  as
               permitted under Regulation T of the Federal Reserve Board.

          Shares of unrestricted Stock acquired by a Grantee on exercise of
an Option  shall be  delivered  to the  Grantee  or, at the  request of the
Grantee, shall be credited directly to a brokerage account specified by the
Grantee.

               (b) Exercise of Performance Units.

                    (i) Subject to Articles  4(c)(vii),  12 and 13 and such
               terms and conditions as the Committee may impose, and unless
               otherwise  provided in the applicable Award  Agreement,  if,
               with respect to any  performance  unit,  the  Committee  has
               determined  in  accordance  with Article  6(f)(iv)  that the
               minimum  performance  goals  have been  achieved  during the
               applicable  Measuring  Period,  then such  performance  unit
               shall  be  deemed  exercised  on the  date on which it first
               becomes exercisable.

                    (ii) The benefit for each  performance  unit  exercised
               shall be an amount equal to the product of

                         (A) the Unit Value (as defined below),  multiplied
                    by

                         (B) the Performance Percentage attained during the
                    Measuring Period for such performance unit.

                    (iii) The Unit  Value  shall be,  as  specified  by the
               Committee,

                         (A) a dollar amount,

                         (B) an amount  equal to the Fair Market Value of a
                    share of Stock on the Grant Date,

                         (C) an amount  equal to the Fair Market Value of a
                    share of Stock on the exercise date of the  performance
                    unit, plus, if so provided in the Award  Agreement,  an
                    amount ("Dividend Equivalent Amount") equal to the Fair
                    Market  Value of the  number of  shares  of Stock  that
                    would have been  purchased if each  dividend  paid on a
                    share of Stock on or  after  the  Grant  Date and on or
                    before the  exercise  date were  invested  in shares of
                    Stock at a  purchase  price  equal  to its Fair  Market
                    Value on the respective dividend payment date, or

                         (D) an amount  equal to the Fair Market Value of a
                    share of Stock on the exercise date of the  performance
                    unit (plus, if so specified in

                                    -17-
<PAGE>

                    the Award  Agreement,  a Dividend  Equivalent  Amount),
                    reduced by the Fair Market Value of a share of Stock on
                    the Grant Date of the performance unit.

                    (iv) The benefit  upon the  exercise  of a  performance
               unit  shall  be  payable  as  soon  as  is  administratively
               practicable  (but in any  event  within  90 days)  after the
               later of (A) the date the Grantee is deemed to exercise such
               performance  unit, or (B) the date (or dates in the event of
               installment  payments) as provided in the  applicable  Award
               Agreement.  Such  benefit  shall be payable in cash,  except
               that the Committee, with respect to any particular exercise,
               may, in its  discretion,  pay  benefits  wholly or partly in
               Stock  delivered  to the  Grantee or credited to a brokerage
               account  specified by the  Grantee.  The number of shares of
               Stock payable in lieu of cash shall be determined by valuing
               the Stock at its Fair Market  Value on the business day next
               preceding the date such benefit is to be paid.

               (c)  Payment of  Performance  Shares.  Subject  to  Articles
4(c)(vii),  12 and 13 and such terms and  conditions  as the  Committee may
impose, and unless otherwise provided in the applicable Award Agreement, if
the Committee has determined in accordance  with Article  6(f)(iv) that the
minimum  performance  goals with respect to an Award of performance  shares
have been achieved during the applicable Measuring Period, then the Company
shall pay to the Grantee of such Award (or, at the request of the  Grantee,
deliver to a brokerage  account  specified by the Grantee)  shares of Stock
equal  in  number  to the  product  of the  number  of  performance  shares
specified in the applicable  Award Agreement  multiplied by the Performance
Percentage achieved during such Measuring Period, except to the extent that
the  Committee in its  discretion  determines  that cash be paid in lieu of
some or all of such shares of Stock.  The amount of cash payable in lieu of
a share of Stock  shall be  determined  by  valuing  such share at its Fair
Market Value on the business day next preceding the date such cash is to be
paid.  Payments  pursuant  to this  Article  8(d)  shall be made as soon as
administratively  practicable  (but in any event  within 90 days) after the
end of the applicable Measuring Period. Any performance shares with respect
to which the  performance  goals have not been  achieved  by the end of the
applicable Measuring Period shall expire.

               (d) Payment of Phantom Stock  Awards.  Upon the vesting of a
phantom  stock  Award,  the  Grantee  shall be  entitled  to receive a cash
payment in respect of each share of phantom  stock  which shall be equal to
the Fair Market Value of a share of Stock as of the date the phantom  stock
Award was granted, or such other date as determined by the Committee at the
time the phantom stock Award was granted.  The Committee may, at the time a
phantom stock Award is granted,  provide a limitation on the amount payable
in respect of each share of phantom stock.  In lieu of a cash payment,  the
Committee  may settle  phantom  stock  Awards with shares of Stock having a
Fair Market Value equal to the cash payment to which the Grantee has become
entitled.

                  (e) Exercise,  Cancellation,  Expiration or Forfeiture of
Tandem Awards. Upon the exercise, cancellation,  expiration,  forfeiture or
payment in respect of any Award which is  identified  with any Tandem Award
pursuant to Article 6(i), the Tandem Award shall

                                    -18-
<PAGE>

automatically terminate to the extent of the number of shares in respect of
which the Award is so  exercised,  cancelled,  expired,  forfeited or paid,
unless  otherwise  provided  by the  Committee  at the time of grant of the
Tandem Award or thereafter.

          9.   Spin-off and Substitute Options.

          Spin-off  Options and  Substitute  Options  shall be issued under
this Plan  pursuant  to and in  accordance  with the terms of the  Benefits
Agreement. Spin-off Options and Substitute Options shall be governed by the
terms of the Plan to the extent that the terms of the Plan do not  conflict
with the  terms of the  agreements  evidencing  the  Spin-off  Options  and
Substitute Options.

          10.  Effect of Certain Transactions.

          With respect to any Award which relates to Stock, in the event of
(i) the  liquidation  or  dissolution  of the  Company  or (ii) a merger or
consolidation  of the  Company (a  "Transaction"),  the Plan and the Awards
issued  hereunder  shall  continue  in  effect  in  accordance  with  their
respective  terms and each Grantee  shall be entitled to receive in respect
of each share of Stock subject to any outstanding Awards, upon the vesting,
payment or exercise of the Award (as the case may be),  the same number and
kind of stock, securities, cash, property, or other consideration that each
holder of a share of Stock was  entitled to receive in the  Transaction  in
respect of a share of Stock.

          11.  Mandatory Withholding Taxes.

          The Company shall have the right to deduct from any  distribution
of cash to any  Grantee  an amount  equal to the  federal,  state and local
income  taxes and other  amounts as may be  required  by law to be withheld
(the  "Withholding  Taxes") with  respect to any Award.  If a Grantee is to
experience  a  taxable  event in  connection  with the  receipt  of  shares
pursuant to an Option exercise or the vesting or payment of another type of
Award (a "Taxable  Event"),  the Grantee shall pay the Withholding Taxes to
the Company prior to the issuance,  or release from escrow,  of such shares
or payment of such Award.  Payment of the applicable  Withholding Taxes may
be made, as determined  by the Committee in its  discretion,  in any one or
any  combination  of (i) cash,  (ii) shares of restricted  or  unrestricted
Stock  owned by the Grantee  prior to the  Taxable  Event and valued at its
Fair Market  Value on the business day  immediately  preceding  the date of
exercise,  or (iii) by making a Tax  Election  (as  described  below).  For
purposes  of this  Article  11,  the  Committee  may  provide  in the Award
Agreement  at the  time of  grant,  or at any  time  thereafter,  that  the
Grantee,  in satisfaction of the obligation to pay Withholding Taxes to the
Company,  may elect to have  withheld a portion of the shares then issuable
to  him  or  her  having  an  aggregate  Fair  Market  Value  equal  to the
Withholding Taxes.

          12.  Termination of Employment.

          The Award Agreement  pertaining to each Award shall set forth the
terms  and  conditions  applicable  to such  Award  upon a  Termination  of
Employment  of the Grantee by the  Company,  a

                                    -19-
<PAGE>

Subsidiary  or an  operating  division or unit,  which,  except for Options
granted to nonemployee directors pursuant to Article 6(b)(ii),  shall be as
the Committee  may, in its  discretion,  determine at the time the Award is
granted or thereafter.

          13.  Securities Law Matters.

               (a) If the  Committee  deems it necessary to comply with the
Securities  Act of 1933,  the  Committee  may require a written  investment
intent  representation  by the Grantee and may require  that a  restrictive
legend be affixed to certificates for shares of Stock.

               (b) If,  based upon the opinion of counsel for the  Company,
the  Committee  determines  that the exercise or  nonforfeitability  of, or
delivery of benefits  pursuant to, any Award would  violate any  applicable
provision  of (i)  federal  or state  securities  law or (ii)  the  listing
requirements of any national securities exchange on which are listed any of
the Company's equity  securities,  then the Committee may postpone any such
exercise,  nonforfeitability  or  delivery,  as the  case  may be,  but the
Company   shall   use  its   best   efforts   to   cause   such   exercise,
nonforfeitability  or delivery to comply  with all such  provisions  at the
earliest practicable date.

               (c)  Notwithstanding  any provision of the Plan or any Award
Agreement  to the  contrary,  no  shares  of Stock  shall be  issued to any
Grantee in respect of any Award prior to the time a registration  statement
under the Securities Act of 1933 is effective with respect to such shares.

          14.  No Funding Required.

          Benefits  payable  under  the  Plan to any  person  shall be paid
directly  by the  Company.  The Company  shall not be required to fund,  or
otherwise  segregate  assets to be used for payment of,  benefits under the
Plan.

          15.  No Employment Rights.

          Neither the  establishment  of the Plan,  nor the granting of any
Award  shall be  construed  to (a) give any  Grantee  the  right to  remain
employed by the Company or any of its  Subsidiaries  or to any benefits not
specifically  provided by the Plan or (b) in any manner modify the right of
the Company or any of its  Subsidiaries to modify,  amend, or terminate any
of its employee benefit plans.

          16.  Rights as a Stockholder.

          A  Grantee  shall  not,  by  reason  of  any  Award  (other  than
restricted  Stock),  have any right as a  stockholder  of the Company  with
respect to the shares of Stock which may be  deliverable  upon  exercise or
payment of such Award until such shares have been delivered to him.  Shares
of restricted Stock held by a Grantee or held in escrow by the Secretary of
the Company shall confer

                                    -20-
<PAGE>

on the  Grantee  all  rights of a  stockholder  of the  Company,  except as
otherwise provided in the Plan.

          17.  Nature of Payments.

          Any and all grants,  payments of cash, or deliveries of shares of
Stock hereunder shall constitute  special incentive payments to the Grantee
and shall not be taken into  account in  computing  the amount of salary or
compensation  of the Grantee for the purposes of  determining  any pension,
retirement,  death or other  benefits  under (a) any  pension,  retirement,
profit-sharing, bonus, life insurance or other employee benefit plan of the
Company or any of its Subsidiaries or (b) any agreement between the Company
or any  Subsidiary,  on the one hand,  and the Grantee,  on the other hand,
except as such plan or agreement shall otherwise expressly provide.

          18.  Non-Uniform Determinations.

          Neither the Committee's nor the Board's  determinations under the
Plan  need  be  uniform  and  may be made  by the  Committee  or the  Board
selectively among persons who receive,  or are eligible to receive,  Awards
(whether or not such persons are similarly situated).  Without limiting the
generality of the foregoing,  the Committee shall be entitled,  among other
things,  to make  non-uniform and selective  determinations,  to enter into
non-uniform  and selective  Award  Agreements as to (a) the identity of the
Grantees,  (b) the terms and provisions of Awards, and (c) the treatment of
Terminations of Employment.

          19.  Adjustments.

          In the event of Change in Capitalization, the Committee shall, in
its sole discretion, make equitable adjustment of

               (a)  the  aggregate  number  and class of shares of Stock or
                    other stock or securities available under Article 3,

               (b)  the number and class of shares of Stock or other  stock
                    or securities  covered by an Award and to be covered by
                    Options  granted to nonemployee  directors  pursuant to
                    Article 6(b)(ii),

               (c)  the Option Price applicable to outstanding Options,

               (d)  the terms of  performance  unit and  performance  share
                    grants (to the extent  permitted  under Section 162(m))
                    of the  Code  and the  regulations  thereunder  without
                    adversely  affecting the  treatment of the  performance
                    unit  or   performance   share   as   Performance-Based
                    Compensation,

               (e)  the Fair Market  Value of Stock to be used to determine
                    the amount of the  benefit  payable  upon  exercise  of
                    performance units, performance shares or phantom stock,

                                    -21-
<PAGE>

               (f)  the  maximum  number  and  class of  shares of Stock or
                    other  securities  with  respect to which Awards may be
                    granted to any  individual  in any three  calendar year
                    period, and

               (g)  the  number  and  class  of  shares  of  Stock or other
                    securities with respect to which Director Shares are to
                    be granted under Article 6(h).

          20.  Amendment of the Plan.

          The Board may from time to time in its discretion amend or modify
the Plan without the approval of the stockholders of the Company, except as
such  stockholder  approval may be required (a) to retain  Incentive  Stock
Option  treatment  under Section 422 of the Internal  Revenue Code,  (b) to
permit  transactions  in  Stock  pursuant  to the  Plan to be  exempt  from
potential  liability  under  Section 16(b) of the 1934 Act or (c) under the
listing  requirements  of  any  securities  exchange  on  which  any of the
Company's equity securities are listed.

          21.  Termination of the Plan.

          The Plan shall  terminate on the tenth (10th)  anniversary of the
Effective  Date or at such  earlier  time as the Board may  determine.  Any
termination,  whether in whole or in part,  shall not affect any Award then
outstanding under the Plan.

          22.  No Illegal Transactions.

          The Plan and all Awards granted pursuant to it are subject to all
laws and regulations of any governmental  authority which may be applicable
thereto;  and  notwithstanding  any  provision  of the  Plan or any  Award,
Grantees  shall not be entitled to exercise  Awards or receive the benefits
thereof and the Company  shall not be obligated to deliver any Stock or pay
any benefits to a Grantee if such exercise, delivery, receipt or payment of
benefits would  constitute a violation by the Grantee or the Company of any
provision of any such law or regulation.

          23.  Governing Law.

          Except  where  preempted  by federal law, the law of the State of
Delaware shall be controlling in all matters relating to the Plan,  without
giving effect to the conflicts of law principles thereof.

          24.  Severability.

          If all or any  part  of the  Plan is  declared  by any  court  or
governmental  authority  to be unlawful or invalid,  such  unlawfulness  or
invalidity  shall  not  serve to  invalidate  any  portion  of the Plan not
declared to be  unlawful  or invalid.  Any Article or part of an Article so
declared to be unlawful or invalid  shall,  if possible,  be construed in a
manner  which will give  effect to the

                                    -22-
<PAGE>

terms of such Article or part of an Article to the fullest extent  possible
while remaining lawful and valid.

                                    -23-

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