Document:

Exhibit 10.29

                           NONRECOURSE PROMISSORY NOTE

$600,000.00                                                   New York, New York

                                                       Dated as of July 20, 2001

      FOR VALUE RECEIVED,  the undersigned,  JOHN BARBOUR  ("Borrower"),  hereby
unconditionally  promises to pay to the order of  TOYSRUS.COM,  INC., a Delaware
corporation (the "Company"), in lawful money of the United States of America and
in  immediately  available  funds,  the  principal  sum of Six Hundred  Thousand
Dollars  ($600,000.00)  ("Principal") with interest thereon from the date hereof
on the unpaid Principal as specified herein.  Interest shall be due and payable,
without notice, on the entire unpaid balance of Principal on each anniversary of
the date  hereof.  The  interest  rate on this note  shall be an annual  rate of
interest  equal to 7%.  Interest shall be computed on the basis of a year of 365
days and the actual  number of days  elapsed.  Interest  not paid when due shall
earn  interest  at the rate  specified  above.  The  entire  unpaid  balance  of
Principal and interest  hereunder shall be immediately due and payable,  without
notice,  on the earlier to occur of (i) the date  occurring  six (6) years after
the date of this Promissory  Note, (ii) the date of termination of employment of
Borrower with the Company for any reason whatsoever,  or (iii) the occurrence of
an Event of Default (as hereafter defined).

      If (a) Borrower fails to make any payment of Principal or interest on this
Promissory Note when due (provided  Borrower is provided with notice of any such
failure  and  provided  with ten days to cure  same),  (b) a court of  competent
jurisdiction  enters a  judgment,  decree or order for  relief in respect of the
Borrower  in an  involuntary  case or  proceeding  under  any  federal  or

<PAGE>

state  bankruptcy  law,  which shall (i)  approve as  properly  filed a petition
seeking reorganization, arrangement, adjustment or composition in respect of the
Borrower,  (ii) appoint a custodian,  receiver,  trustee,  liquidator or similar
official for the Borrower or for substantially all of his property or assets, or
(iii) order the  winding-up or  liquidation  of its affairs,  and such judgment,
decree or order shall  remain  unstayed and in effect for a period of sixty (60)
consecutive  days, (c) Borrower attempts to sell,  transfer,  assign or encumber
the  Pledged  Shares (as  hereafter  defined)  (d)  Borrower  files a  voluntary
petition  seeking relief under any federal or state bankruptcy law, (e) Borrower
breaches any provision of the Pledge Agreement (as hereafter  defined) or of the
employment  agreement between Borrower and the Company dated as of July 17, 1999
or (f) Borrower expressly repudiates his obligations hereunder,  then all unpaid
Principal  and all accrued and unpaid  interest  on this  Promissory  Note shall
become and be immediately due and payable. The occurrence of any event described
in clauses (a) through (f) above shall be referred to as an "Event of Default".

      The Borrower  shall have the right to prepay all or any part of the unpaid
Principal amount of this Promissory Note with interest thereon, without premium,
at any time prior to the maturity hereof.

      This  Promissory  Note is a  nonrecourse  note and is secured  solely by a
pledge of shares of Common Stock of the Company (the "Pledged  Shares") pursuant
to a Pledge Agreement ("Pledge Agreement") of even date herewith, the provisions
of which are incorporated  herein by reference and form a part hereof.  Borrower
shall be liable upon the indebtedness evidenced by this Promissory Note, for all
sums to accrue or to become payable thereon and for performance of any covenants
contained  in this  Promissory  Note or in any of the related  documents  to the
extent,  but only to the extent,  of the Company's  security for the same, which
consists of all

                                      -2-
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properties,  rights,  estates and interests covered by the Pledge Agreement.  No
attachment, execution or other writ or process shall be sought, issued or levied
upon any  assets,  properties  or funds of Borrower  other than the  properties,
rights, estates and interests described in the Pledge Agreement. In the event of
foreclosure  of such  title,  liens or  security  interests,  no judgment of any
deficiency upon such indebtedness,  sums and amounts shall be sought or obtained
by the Company against Borrower.

      If one or more of the  provisions  hereof  shall be declared or held to be
invalid,  illegal,  or  unenforceable  in any respect in any  jurisdiction,  the
validity,  legality and enforceability of the remaining  provisions hereof shall
not in any way be  affected  or impaired  thereby  and any such  declaration  or
holding shall not invalidate or render unenforceable such provision in any other
jurisdiction. All references in this Promissory Note to Borrower and the Company
shall be deemed to  include,  as  applicable,  a reference  to their  respective
successors and assigns.  The provisions of this Promissory Note shall be binding
upon and shall  inure to the benefit of the  successors  and assigns of Borrower
and Company.

      Any notice  relating to this Promissory Note shall be in writing and shall
be deemed to be effective if given and received in the manner expressly provided
in the Pledge Agreement.

      In case this  Promissory  Note shall become  mutilated  or defaced,  or be
destroyed,  lost or stolen, the Borrower shall execute and deliver a new note of
like principal  amount in exchange and substitution for the mutilated or defaced
note, or in lieu of and in substitution for the destroyed,  lost or stolen note.
In the case of a mutilated or defaced  note,  the Company shall  surrender  such
Promissory  Note to the Borrower.  In the case of any destroyed,  lost or stolen
note, the Company shall furnish to the Borrower  evidence to its satisfaction of
the destruction, loss or theft of such note.

                                      -3-
<PAGE>

      Borrower hereby waives presentment for payment, demand, protest, notice of
protest and notice of dishonor or nonpayment of this Promissory Note.

      This Promissory Note shall be governed by and construed in accordance with
the  laws of the  State of New  York  without  regard  to any  conflict  of laws
provisions.

      Each of  Borrower  and  Company  irrevocably  consents  and submits to the
non-exclusive jurisdiction of the Courts of the State of New York and the United
States  District  Court for the  Southern  District  of New York and  waives any
objection  based on venue or forum non  conveniens  with  respect  to any action
instituted  therein  arising  under  this  Promissory  Note or the  transactions
related  hereto,  in each case whether now existing or  hereafter  arising,  and
whether in  contract,  tort,  equity or  otherwise,  and agrees that any dispute
arising out of the  relationship  between Borrower and Company or the conduct of
such persons in connection with this Promissory Note or otherwise shall be heard
only in the courts described  above.  Each of Borrower and each Company confirms
that the foregoing waivers are informed and freely made.

      IN WITNESS WHEREOF,  the undersigned has signed,  dated and delivered this
note as of the date and year first above written.

                                                   /s/ John Barbour
                                              ---------------------------
                                                     John Barbour

                                      -4-Exhibit 10.30

                                TOYS "R" US, INC.
                              AMENDED AND RESTATED
                         1995 EMPLOYEE STOCK OPTION PLAN

      The following is the complete text of the Plan, as amended and restated as
of June 30, 2000.

                                    ARTICLE 1

                            ESTABLISHMENT AND PURPOSE

      1.1  Establishment  and  Effective  Date.  Toys "R" Us,  Inc.,  a Delaware
corporation (the "Company"),  hereby establishes a stock option plan to be known
as the Toys "R" Us, Inc. 1995 Employee Stock Option Plan (the "Plan").  The Plan
shall become effective as of April 27, 1995.

      1.2  Purpose.  The  purpose  of the Plan is to  encourage  and  enable all
eligible  employees  (subject to such  requirements  as may be prescribed by the
Management  Compensation  and Stock Option  Committee (the  "Committee")) of the
Company and its  subsidiaries  to acquire a proprietary  interest in the Company
through the  ownership of the Company's  common stock,  par value $.10 per share
("Common Stock").  Such ownership will provide such employees with a more direct
stake in the future welfare of the Company and encourage them to remain with the
Company and its  subsidiaries.  It is also expected that the Plan will encourage
qualified  persons  to seek  and  accept  employment  with the  Company  and its
subsidiaries.

                                    ARTICLE 2

                                     AWARDS

      2.1 Form of  Awards.  Awards  under the Plan may be granted in the form of
stock options  ("Options")  that are not intended to qualify as incentive  stock
options under Section 422 of the Internal Revenue Code.

      2.2 Maximum Shares  Available.  The maximum  aggregate number of shares of
Common  Stock  available  for award  under  the Plan is  15,000,000  subject  to
adjustment pursuant to Article 8 hereof.  Shares of Common Stock issued pursuant
to the Plan may be either  authorized  but  unissued  shares  or  issued  shares
reacquired  by the  Company.  In the event  that  prior to the end of the period
during  which  Options  may be  granted  under  the  Plan,  any  Option  expires
unexercised or is terminated,  surrendered or cancelled  without being exercised
in whole for any reason, the shares of Common Stock covered by such Option shall
be available for subsequent  awards of Options under the Plan upon such terms as
the Committee may  determine.  In addition,  shares of Common Stock  withheld in
payment of taxes  relating to Options,  and the number of shares of Common Stock
equal to the number of shares  surrendered  in payment of the exercise  price of
Options or taxes relating to Options,  shall be available for subsequent  awards
of Options under the Plan upon such terms as the Committee  may  determine.

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<PAGE>

      2.3 Return of Prior Awards.  As a condition to any subsequent  award,  the
Committee  shall have the right,  at its  discretion,  to require  employees  to
return to the Company Options  previously granted under the Plan. Subject to the
provisions of the Plan,  such new Option shall be upon such terms and conditions
as are specified by the Committee at the time the new award is granted.

                                    ARTICLE 3

                                 ADMINISTRATION

      3.1  Committee.  Awards  shall  be  determined,  and  the  Plan  shall  be
administered by, the Committee.

      3.2 Powers of  Committee.  Subject to the express  provisions of the Plan,
the  Committee  shall have the power and  authority  (i) to grant Options and to
determine  the purchase  price of the Common Stock  covered by each Option,  the
term of each Option,  the number of shares of Common Stock to be covered by each
Option and any performance  objectives or vesting  standards  applicable to each
Option;  and (ii) to determine the  employees to whom,  and the time or times at
which, Options shall be granted.

      3.3  Delegation.  The Committee may delegate to one or more of its members
or to any  other  person  or  persons  such  ministerial  duties  as it may deem
advisable. The Committee may also delegate to the Chief Executive Officer of the
Company the authority,  subject to such terms as the Committee shall  determine,
to perform any and all functions as the Committee may  determine.  The Committee
may also  employ  attorneys,  consultants,  accountants  or  other  professional
advisors and shall be entitled to rely upon the advice,  opinions or  valuations
of any such advisors.

      3.4 Interpretations. The Committee shall have sole discretionary authority
to interpret the terms of the Plan, to adopt and revise rules,  regulations  and
policies to  administer  the Plan and to make any other  factual  determinations
which it believes to be  necessary or advisable  for the  administration  of the
Plan.  All actions  taken and  interpretations  and  determinations  made by the
Committee  in good  faith  shall be final  and  binding  upon the  Company,  all
employees  who have  received  awards  under the Plan and all  other  interested
persons.

      3.5 Liability;  Indemnification. No member of the Committee, nor the Chief
Executive Officer, or any person to whom ministerial duties have been delegated,
shall be personally liable for any action,  interpretation or determination made
with respect to the Plan or Options granted  thereunder,  and each member of the
Committee  and the  Chief  Executive  Officer  shall  be fully  indemnified  and
protected by the Company with respect to any  liability he or she may incur with
respect  to any such  action,  interpretation  or  determination,  to the extent
permitted  by  applicable  law  and  to the  extent  provided  in the  Company's
Certificate of Incorporation  and Bylaws, as amended from time to time, or under
any agreement between such member, the Chief Executive Officer and the Company.

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<PAGE>

                                    ARTICLE 4

                                   ELIGIBILITY

      Options  may be  granted  to all  employees  of the  Company or any of its
subsidiaries  other than Executive Officers (who are subject to Section 16(b) of
the  Securities  Exchange  Act of  1934)  of the  Company.  In  determining  the
employees  to whom  Options  shall be  granted  and the  number  of shares to be
covered by each Option,  the Committee shall take into account the nature of the
services rendered by such employees,  their present and potential  contributions
to the success of the Company and its subsidiaries and such other factors as the
Committee in its sole discretion shall deem relevant.

      As used  herein,  the term  "subsidiary"  shall mean any present or future
corporation, partnership or joint venture in which the Company owns, directly or
indirectly, 40% or more of the economic interests.

                                    ARTICLE 5

                                  STOCK OPTIONS

      5.1  Grant of  Options.  Options  may be  granted  under  the Plan for the
purchase of shares of Common  Stock.  Options  shall be granted in such form and
upon such terms and  conditions,  including  the  satisfaction  of  corporate or
individual performance objectives and other vesting standards,  as the Committee
shall from time to time determine.

      5.2 Option Price.  The purchase price per share under each Option shall be
specified  by the  Committee,  but in no event  shall it be less than 90% of the
Market Price on the date the Option is granted. In no case,  however,  shall the
purchase  price per share of an Option be less than the par value of the  Common
Stock ($.10).

      The "Market  Price" of the Common Stock on any day shall be  determined as
follows:  (i) if the Common Stock is listed on a national securities exchange or
quoted through the NASDAQ  National  Market System,  the Market Price on any day
shall be the average of the high and low  reported  Consolidated  Trading  sales
prices,  or if no such sale is made on such day,  the average of the closing bid
and asked prices reported on the Consolidated Trading listing for such day; (ii)
if the Common Stock is quoted on the NASOAQ  inter-dealer  quotation system, the
Market Price on any day shall be the average of the representative bid and asked
prices at the close of business  for such day;  or (iii) if the Common  Stock is
not listed on a national stock exchange or quoted on NASDAQ, the Market Price on
any day shall be the  average of the high bid and low asked  prices  reported by
the National Quotation Bureau, Inc. for such day.

      5.3 Exercise  and  Payment.  Options may be exercised in whole or in part.
Common Stock purchased upon exercise of Options shall be paid for in full at the
time of purchase.  Such payment  shall be made in cash or, in the  discretion of
the  Committee,  through  delivery of shares of Common Stock or a combination of
cash and Common Stock,  in accordance  with  procedures to be established by the
Committee.  Any shares so delivered shall be valued at their Market Price on the
date of exercise.

      5.4 Term. The term of each Option granted hereunder shall be determined by
the Committee.

      5.5 Rights as a  Stockholder.  A recipient of Options shall have no rights
as a

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<PAGE>

stockholder  with respect to any shares issuable or  transferable  upon exercise
thereof  until  the  date a  stock  certificate  is  issued  to  such  recipient
representing such shares. Except as otherwise expressly provided in the Plan, no
adjustment shall be made for cash dividends or other rights for which the record
date is prior to the date such stock certificate is issued.

      5.6  General  Restrictions.  Each Option  granted  under the Plan shall be
subject to the requirement  that, at any time the Board shall determine,  in its
discretion,  that the  listing,  registration  or  qualification  of the  shares
issuable or transferable  upon exercise thereof upon any securities  exchange or
under any state or federal  law, or the consent or approval of any  governmental
regulatory  body,  is necessary or desirable as a condition of, or in connection
with, the granting of such Option or the issue,  transfer, or purchase of shares
thereunder,  such  Option may not be  exercised  in whole or in part unless such
listing,  registration,  qualification,  consent,  or  approval  shall have been
effected or obtained free of any conditions not acceptable to the Board.

      The Board or the  Committee  may, in  connection  with the granting of any
Option, require the individual to whom the Option is to be granted to enter into
an  agreement  with the Company  stating  that as a condition  precedent to each
exercise  of the  Option,  in whole or in part,  such  individual  shall if then
required by the Company  represent to the Company in writing that such  exercise
is for  investment  only and not with a view to  distribution,  and also setting
forth  such  other  terms  and  conditions  as the  Board or the  Committee  may
prescribe.

                                    ARTICLE 6

                          NONTRANSFERABILITY OF OPTIONS

      No Option may be transferred,  assigned,  pledged or hypothecated (whether
by operation of law or otherwise),  except as provided by will or the applicable
laws of descent and  distribution,  and no Option shall be subject to execution,
attachment or similar  process.  Any  attempted  assignment,  transfer,  pledge,
hypothecation  or other  disposition  of an Option  not  specifically  permitted
herein shall be null and void and without effect.  An Option may be exercised by
the  recipient  only during his or her  lifetime,  or following his or her death
pursuant to Section 7.4 hereof

      Notwithstanding  anything to the contrary in the preceding paragraph,  the
Committee may, in its sole discretion,  cause the written agreement  relating to
any Options granted  hereunder to provide that the recipient of such Options may
transfer  any  such  Options  other  than  by will or the  laws of  descent  and
distribution in any manner authorized under applicable law.

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<PAGE>

                                    ARTICLE 7

             EFFECT OF TERMINATION OF EMPLOYMENT, RELOCATION EVENT,
                         DISABILITY, RETIREMENT OR DEATH

      7.1 General Rule.  Except as expressly  determined by the Committee in its
sole  discretion,  no Option shall be  exercisable  after 30 days  following the
recipient's  termination of employment with the Company or a subsidiary,  unless
such  termination of employment  occurs by reason of (i) a Relocation  Event (as
defined in Section  7.2),  (ii)  Retirement  (as defined in Section 7.3) or(iii)
death.

      Options  shall not be affected by any change of  employment so long as the
recipient  continues to be employed by either the Company or a  subsidiary.  The
Committee may, in its sole discretion,  cause any Option to be forfeited upon an
employee's  termination of employment if the employee was terminated for one (or
more) of the following reasons: (i) the employee's conviction, or plea of guilty
or nolo contendere to the commission of a felony, (ii) the employee's commission
of any fraud, misappropriation or misconduct which causes demonstrable injury to
the  Company  or a  subsidiary,  (iii)  an act  of  dishonesty  by the  employee
resulting  or intended to result,  directly or  indirectly,  in gain or personal
enrichment at the expense of the Company or a subsidiary, (iv) any breach of the
employee's  fiduciary duties to the Company as an employee or officer,  or (v) a
violation  by the  employee  of the Toys "R" Us  Ethics  Agreement  or any other
serious violation of a Company policy. It shall be within the sole discretion of
the Committee to determine whether the employee's termination was for one of the
foregoing  reasons,  and the  decision  of the  Committee  shall  be  final  and
conclusive.

      7.2  Relocation  Event.  Options  granted  to  an  employee  shall  remain
outstanding after termination of such employee's  employment with the Company or
a  subsidiary,  if such  termination  solely  occurs by reason of a  "Relocation
Event,"  which shall be deemed to occur if (i) husband and wife are both current
employees  of the  Company,  (ii) the  Company  transfers  one  spouse  to a new
location,  (iii) the Company is unable to offer the other spouse a position that
is  substantially  comparable  to his or her  current  position,  and  (iv) as a
result,  the other  spouse's  employment  with the Company is terminated and the
other spouse, as recipient, holds outstanding Options.

      In case of a Relocation  Event, the Options held by a terminated  employee
shall be  exercisable  for a period  equal to the lesser of (i) the period  such
Options would be exercisable  absent the termination of such employee,  and (ii)
the period such Options would be exercisable if granted to the spouse continuing
in the Company's employ on the date originally granted to the terminated spouse.

      7.3 Disability or Retirement.  Except as expressly  provided  otherwise in
the written  agreement  relating to any Option  granted  under the Plan,  in the
event of the  Disability or  Retirement  of a recipient of Options,  the Options
which are held by such  recipient on the date of such  Disability or Retirement,
whether or not otherwise  exercisable on such date,  shall be exercisable at any
time until the expiration date of the Options.

      "Disability"  shall mean any termination of employment with the Company or
a subsidiary  because of a long-term or total  disability,  as determined by the
Committee  in its sole  discretion.  "Retirement"  shall mean a  termination  of
employment with the Company or a subsidiary either (i) on a voluntary basis by a
recipient  who is at  least  55  years  of age and who has at  least 10 years of
service  with the Company or a  subsidiary  or (ii)  otherwise  with the

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<PAGE>

written  consent of the  Committee in its sole  discretion.  The decision of the
Committee shall be final and conclusive.

      7.4 Death.  In the event of the death of a recipient  of Options  while an
employee  of the  Company  or any  subsidiary,  Options  which  are held by such
employee at the date of death, whether or not otherwise  exercisable on the date
of death, shall be exercisable by the beneficiary designated by the employee for
such purpose (the  "Designated  Beneficiary")  or if no  Designated  Beneficiary
shall  be  appointed  or if the  Designated  Beneficiary  shall  predecease  the
employee, by the employee's personal  representatives,  heirs or legatees at any
time within  three (3) years from the date of death,  at which time such Options
shall terminate.

      In  the  event  of  the  death  of a  recipient  of  Options  following  a
termination of employment due to Retirement or Disability,  if such death occurs
before the Options are  exercised,  the Options which are held by such recipient
on the date of termination of employment,  whether or not otherwise  exercisable
on such date, shall be exercisable by such recipient's  Designated  Beneficiary,
or if no  Designated  Beneficiary  shall  be  appointed  or  if  the  Designated
Beneficiary  shall  predecease  such  recipient,  by such  recipient's  personal
representatives,  heirs  or  legatees  to the  same  extent  such  Options  were
exercisable by the recipient following such termination of employment.

      7.5 Leave of Absence.  In the case of an employee on an approved  leave of
absence, the Options and Stock Appreciation Rights of such employee shall not be
affected unless such leave is longer than six months. The date of exercisability
of  any  Options  or  Stock  Appreciation   Rights  of  an  employee  which  are
unexercisable  at the beginning of an approved  leave of absence  lasting longer
than six  months  shall be  postponed  for a period  equal to the length of such
leave of absence but not beyond the term of the  Options and Stock  Appreciation
Rights.   Notwithstanding  the  foregoing,   the  Committee  may,  in  its  sole
discretion, waive in writing any such postponement of the date of exercisability
of any Options of Stock Appreciation Rights due to a leave of absence.

                                    ARTICLE 8

                    ADJUSTMENT UPON CHANGES IN CAPITALIZATION

      Notwithstanding any other provision of the Plan, the Committee may: (i) at
any time, make or provide for such  adjustments to the Plan or to the number and
class  of  shares  available  thereunder  or (ii) at the  time of  grant  of any
Options,  provide for such  adjustments  to such Options as the Committee  shall
deem  appropriate  to prevent  dilution  or  enlargement  of rights,  including,
without limitation,  adjustments in the event of stock dividends,  stock splits,
recapitalizations, mergers, consolidations, combinations or exchanges of shares,
separations, spin-offs, reorganizations, liquidations and the like.

                                    ARTICLE 9

                            AMENDMENT AND TERMINATION

      The Board may suspend, terminate, modify or amend the Plan at any time and
from time to time.  Any Plan  amendment  shall  become  effective  upon the date
stated  therein,  and shall be  binding  on the  Company,  except  as  otherwise
provided in such  amendment.  If the Plan

                                       6
<PAGE>

is terminated,  the terms of the Plan shall,  notwithstanding  such termination,
continue to apply to awards  granted prior to such  termination.  No suspension,
termination,  modification or amendment of the Plan may,  without the consent of
the employee to whom an award shall  theretofore  have been  granted,  adversely
affect the rights of such employee under such award.

                                   ARTICLE 10

                                WRITTEN AGREEMENT

      Each award of Options shall be evidenced by a written agreement containing
such restrictions,  terms and conditions,  if any, as the Committee may require.
In the event of any conflict between a written agreement and the Plan, the terms
of the Plan shall govern.

                                   ARTICLE 11

                                CHANGE OF CONTROL

      11.1 Vesting of Options.  All unvested  Options shall vest  immediately on
the date of a Change of Control (as defined below),  unless,  in connection with
such transaction, (i) such Options are to remain outstanding,  (ii) such Options
are assumed by the surviving  corporation or its parent,  or (iii) the surviving
corporation or its parent substitutes  options and awards with substantially the
same terms for such Options.

      A  "Change  of  Control"   shall   mean:   (a)  the   consummation   of  a
reorganization,  merger or consolidation or sale or other  disposition of all or
substantially  all of the assets of the Company (a "Business  Combination"),  in
each case, unless,  immediately  following such Business Combination each of the
following would be correct:  (i) all or substantially all of the individuals and
entities  who were  the  beneficial  owners,  respectively,  of the  outstanding
Company common stock and outstanding Company voting securities immediately prior
to such Business Combination beneficially own, directly or indirectly, more than
60% of,  respectively,  the then  outstanding  shares  of  common  stock and the
combined voting power of the then outstanding voting securities entitled to vote
generally  in the  election  of  directors,  as the case may be,  of the  person
resulting  from such Business  Combination  (including,  without  limitation,  a
person  which  as a  result  of such  transaction  owns  the  Company  or all or
substantially all of the Company's assets either directly or through one or more
subsidiaries)  in  substantially   the  same  proportions  as  their  ownership,
immediately prior to such Business Combination of the outstanding Company common
stock and outstanding Company voting securities, as the case may be, and (ii) no
person  (excluding (A) any employee benefit plan (or related trust) sponsored or
maintained by the Company or any subsidiary of the Company,  or such corporation
resulting from such Business  Combination or any Affiliate of such  corporation,
or (B) any entity in which such person has a material  equity  interest,  or any
"Affiliate"  (as  defined  in Rule 405  under  the  Securities  Act of 1933,  as
amended) of such entity) beneficially owns, directly or indirectly,  25% or more
of, respectively, the then outstanding shares of common stock of the corporation
resulting from such Business  Combination,  or the combined  voting power of the
then outstanding voting securities of such corporation except to the extent that
such ownership existed prior to the Business  Combination,  and (iii) at least a
majority of the members of the board of directors of the  corporation  resulting
from such  Business  Combination  were  members  of the Board at the time of the
execution of the initial agreement, or of the action of the Board,

                                       7
<PAGE>

providing for such Business Combination;  or (b) approval by the stockholders of
the Company of a complete liquidation or dissolution of the Company.

      11.2  Officer's  Employment.  In the event the employment of an officer of
the Company is terminated  (other than for cause),  within 12 months following a
Change of Control,  all unvested  Options shall vest immediately on the later of
the  date of  termination  or the date of the  Change  of  Control  and all such
Options may be exercised until the earlier of (x) the  thirty-month  anniversary
date of the date of termination and (y) the expiration date of such Options.

                                   ARTICLE 12

                            MISCELLANEOUS PROVISIONS

      12.1  Tax  Withholding.  The  Company  shall  have the  right  to  require
employees  or  their  beneficiaries  or  legal  representatives  to remit to the
Company an amount  sufficient to satisfy his or her minimum  Federal,  state and
local  withholding  tax  requirements,  or to deduct from all payments under the
Plan amounts sufficient to satisfy the minimum withholding tax requirements. The
Committee may, in its sole discretion,  permit an employee to satisfy his or her
tax  withholding  obligation  either  by (i)  surrendering  shares  owned by the
employee or (ii) having the Company withhold from shares  otherwise  deliverable
to the employee.  Shares surrendered or withheld shall be valued at their Market
Price as of the date on which income is required to be recognized for income tax
purposes.

      12.2  Successor.  The  obligations  of the Company under the Plan shall be
binding upon any successor  Company or  organization  resulting from the merger,
consolidation  or other  reorganization  of the Company,  or upon any  successor
Company or organization succeeding to all or substantially all of the assets and
business of the Company.  In the event of any of the  foregoing,  the  Committee
may, at its discretion  prior to the consummation of the transaction and subject
to Article 9 hereof, cancel, offer to purchase,  exchange,  adjust or modify any
outstanding  awards,  at such  time and in such  manner as the  Committee  deems
appropriate and in accordance with applicable law.

      12.3 General  Creditor  Status.  Employees shall have no right,  title, or
interest  whatsoever in or to any investments  which the Company may make to aid
it in meeting its obligations under the Plan. Nothing contained in the Plan, and
no action  taken  pursuant to its  provisions,  shall  create or be construed to
create a trust of any kind, or a fiduciary  relationship between the Company and
any employee or beneficiary  or legal  representative  of such employee.  To the
extent  that any person  acquires a right to receive  payments  from the Company
under the Plan,  such right shall be no greater  than the right of an  unsecured
general creditor of the Company. All payments to be made hereunder shall be paid
from the general  funds of the Company and no special or separate  fund shall be
established and no segregation of assets shall be made to assure payment of such
amounts except as expressly set forth in the Plan.

      12.4 No  Right  to  Employment.  Nothing  in the  Plan  or in any  written
agreement  entered  into  pursuant  to Article  10 hereof,  nor the grant of any
award, shall confer upon any employee any right to continue in the employ of the
Company or a subsidiary  or to be entitled to any  remuneration  or benefits not
set forth in the Plan or such written  agreement or interfere  with or limit the
right of the Company or a subsidiary  to modify the terms of or  terminate  such
employee's employment at any time.

                                       8
<PAGE>

      12.5  Notices.  Notices  required or  permitted  to be made under the Plan
shall be  sufficiently  made if personally  delivered to the employee or sent by
regular  mail  addressed  (a) to the employee at the  employee's  address as set
forth in the books and records of the Company or its subsidiaries, or (b) to the
Company or the Committee at the principal  office of the Company  clearly marked
"Attention: Management Compensation and Stock Option Committee."

      12.6  Severability.  In the event that any  provision of the Plan shall be
held illegal or invalid for any reason,  such illegality or invalidity shall not
affect the  remaining  parts of the Plan,  and the Plan shall be  construed  and
enforced as if the illegal or invalid provision had not been included.

      12.7  Governing Law. To the extent not preempted by Federal law, the Plan,
and all agreements hereunder, shall be construed in accordance with and governed
by the laws of the State of New York.

                                       9

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