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                                                                    EXHIBIT 10.5

                                    [LOGO]

                                   M O D U S

                                   M E D I A

                           I N T E R N A T I O N A L

                           Management Incentive Plan
                           Effective January 1, 2000

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                        Modus Media International, Inc.
                        Management Incentive Plan (MIP)
                                 Plan Document
                           Effective January 1, 2000

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                               TABLE OF CONTENTS
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     Section                                                Page
     --------                                               ----
<S>                                                         <C>
     I.   Purpose                                             3.

     II.  Effective Date of Plan                              3.

     III. Eligibility                                         3.

     IV.  MIP Target Payouts                                  3.

     V.   Measurement                                         3.

     VI.  Transition Issues                                   4.

     VII. Administration                                      4.

     Plan Exhibits
     -------------

     A.   Plan Components                                     6.

     B.   MBO Process Overview                                9.

     C.   Certificate of Acknowledgement                     13.

     D.   Participant Notification Sheet                     14.

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                           Modus Media International
                        Management Incentive Plan (MIP)
                                 Plan Document
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I.   Purpose
     -------
     The objective of the Management Incentive Plan (MIP) is to recognize and to
     reward the achievement of financial, business and individual performance
     goals that are essential to the success of Modus Media. It is also designed
     to measure and to reward how effectively we demonstrate and embrace our
     values. This program, in conjunction with base salary, is designed to offer
     designated employees of Modus Media International Holdings, Inc. and/or its
     subsidiaries (the "Company") total cash compensation opportunities that are
     fully competitive with market levels.

II.  Effective Date of Plan
     ----------------------
     The effective date for implementation of the Plan shall be January 1, 2000.
     A Plan year is equivalent to a calendar year. The Plan may be modified or
     terminated at any time by the Chief Executive Officer of the Company,
     without notice or consent of the Participants.

III. Eligibility
     -----------
     Certain designated employees whose role and responsibilities are deemed by
     executive management to be critical to operations and who have direct
     responsibility for achieving the financial results of the Company, are
     eligible for participation in the Management Incentive Plan. Participation
     Tiers, Target Percentage, Plan Components and Component Weightings are
     defined by the position.

     Proposed participation in the MIP Plan for new Participants, those joining
     the plan after January 1, 2000, must be approved by the CEO or the SVP,
     Human Resources of the Company. All Participants will be notified of
     eligibility in writing and provided a copy of the MIP document as well as
     individual MIP components and targets, as shown in Exhibit D. As a
     condition to participating in the MIP, Participants will be required to
     execute a written acknowledgement, in the form attached hereto as Exhibit
     C, that they have read and understand the MIP. Properly executed forms
     should be returned to the Director of Compensation in the Westwood Office.

IV.  MIP Target Payout
     -----------------
     Eligible employees will be assigned a target payout for the MIP, expressed
     as a percentage of total base salary, set forth in Exhibit D. This
     percentage represents the potential dollar award that will be earned at
     100% achievement of goals for all Plan components. The target payout
     percentage will vary according to the Participant's position. Actual plan
     payments will vary based on performance.

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V.   Measurement
     -----------
     The Management Incentive Plan consists of four components for those
     participants in Tiers I-X, and three components for those participants in
     Tiers XI and XII. The Participant will be assigned a target payout for each
     component, expressed as a percentage of base salary, to be used to
     calculate an amount (i.e. 10 % of $50,000 base salary equals $5,000). The
     weightings of the components and the resultant target percentages will vary
     according to the Participant's position. Plan components are set forth in
     Exhibit A and the MBO process is set forth in Exhibit B.

VI.  Transition Issues
     -----------------
     A Participant in the Plan must be actively employed by the Company through
     payment dates to receive any payout on plan components. Since the annual
     components are calculated on base salary as of December 31 of the plan
     year, payouts for annual components will be pro-rated for those eligible
     Participants who join the plan during the year, prior to October 1.
     Employees who transfer out of an eligible position during the year into a
     non-eligible position in the Company, but who are still employed as of the
     payment date, will be considered for an award based on the number of weeks
     in the eligible position and earnings accrued during those weeks as a ratio
     to the full year.

     Plan Participants who are on a leave of absence greater than 30 days during
     a plan year will have their payment pro-rated for actual time worked.

     Employees hired or promoted for the first time into bonus eligible
     positions after October 1 will not be eligible to participate in any
     component of the Plan for that plan year.

     Retroactive pay adjustments will not be applied. Payments will be at the
     base salary in effect at the end of each calendar quarter for quarterly
     components and as of December 31 for annual components.

     All Plan Participants will have their MIP payment calculations performed in
     their local currency.

VII. Administration
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     The adoption of this Plan shall not be deemed to give any employee the
     right to be retained in the employ of the Company or to interfere with the
     right of the Company to discharge any employee at any time, nor shall it be
     deemed to give the Company the right to require any employee to remain in
     its employ. This plan supercedes any incentive provisions detailed in a
     Management Contract.

     The financial targets assigned and recognized as goals on any of the
     performance factors may be revised or otherwise modified by the executive
     management of the Company at any time, to account for any material change
     in the business or the Company. Any such revisions or modifications will be
     made in writing to all Participants as soon as possible after the need for
     such change is determined.

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     A Participant's right to receive payment of an award under the Plan shall
     be no greater than the right of an unsecured general creditor of the
     Company. All awards under the Plan 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 awards.

     The Company reserves the right to amend, terminate and modify this plan at
     its discretion, with or without notice to the participants.

     All matters of plan interpretation should be directed to the SVP, Human
     Resources, and will be resolved at his/her discretion subject to the
     approval of the CEO.
     The Plan shall be governed by and construed in accordance with the laws of
     the Commonwealth of Massachusetts.

     Approvals:

     __________________________________________
     Michael Dudich
     Senior Vice President Human Resources

     __________________________________________
     Terence Leahy
     Chief Executive Officer

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                                                                               5<PAGE>

                                                                   Exhibit 10.6

                               MODUS MEDIA, INC.

                       2000 EMPLOYEE STOCK PURCHASE PLAN

     The purpose of this Plan is to provide eligible employees of Modus Media,
Inc. (the "Company") and certain of its subsidiaries with opportunities to
purchase shares of the Company's common stock, $.01 par value (the "Common
Stock").  Two million five hundred thousand (2,500,000) shares of Common Stock
in the aggregate have been approved for this purpose.  This Plan is intended to
qualify as an "employee stock purchase plan" as defined in Section 423 of the
Internal Revenue Code of 1986, as amended (the "Code"), and the regulations
promulgated thereunder, and shall be interpreted consistent therewith.

     1.  Administration. The Plan will be administered by the Company's Board of
         --------------
Directors (the "Board") or by a Committee appointed by the Board (the
"Committee"). The Board or the Committee has authority to make rules and
regulations for the administration of the Plan and its interpretation and
decisions with regard thereto shall be final and conclusive.

     2.  Eligibility.  All employees of the Company, including Directors who are
         -----------
employees, and all employees of any subsidiary of the Company (as defined in
Section 424(f) of the Code) designated by the Board or the Committee from time
to time (a "Designated Subsidiary"), are eligible to participate in any one or
more of the offerings of Options (as defined in Section 9) to purchase Common
Stock under the Plan provided that:

         (a) they are customarily employed by the Company or a Designated
     Subsidiary for more than 20 hours a week and for more than five months in a
     calendar year; and

         (b) they have been employed by the Company or a Designated Subsidiary
     for at least six months prior to enrolling in the Plan; and

         (c) they are employees of the Company or a Designated Subsidiary on the
     first day of the applicable Plan Period (as defined below).

     No employee may be granted an option hereunder if such employee,
immediately after the option is granted, owns 5% or more of the total combined
voting power or value of the stock of the Company or any subsidiary.  For
purposes of the preceding sentence, the attribution rules of Section 424(d) of
the Code shall apply in determining the stock ownership of an employee, and all
stock which the employee has a contractual right to purchase shall be treated as
stock owned by the employee.

     3. Offerings. The Company will make one or more offerings ("Offerings") to
        ---------
employees to purchase stock under this Plan. Offerings will begin each June 1st
and December 1st or the first business day thereafter (the "Offering
Commencement Dates"). Each Offering Commencement Date will begin a six month
period (a "Plan Period") during which payroll deductions will be made and held
for the purchase of Common Stock at the end of the Plan Period. The Board or the
Committee may, at its discretion, choose a different Plan Period of twelve (12)
months or less for subsequent Offerings. Notwithstanding anything to the
contrary, the first Plan Period shall begin on the date that is thirty (30) days
after the first date that the Common Stock is publicly traded following the

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Company's initial public offering ("IPO"), or the first business day thereafter,
and shall end on May 31, 2000.

     4. Participation. An employee eligible on the Offering Commencement Date
        -------------
of any Offering may participate in such Offering by completing and forwarding a
payroll deduction authorization form to the employee's appropriate payroll
office at least ___ days prior to the applicable Offering Commencement Date. The
form will authorize a regular payroll deduction from the Compensation received
by the employee during the Plan Period. Unless an employee files a new form or
withdraws from the Plan, his deductions and purchases will continue at the same
rate for future Offerings under the Plan as long as the Plan remains in effect.
The term "Compensation" means the amount of money reportable on the employee's
Federal Income Tax Withholding Statement, excluding overtime, shift premium,
incentive or bonus awards, allowances and reimbursements for expenses such as
relocation allowances for travel expenses, income or gains on the exercise of
Company stock options or stock appreciation rights, and similar items, whether
or not shown on the employee's Federal Income Tax Withholding Statement, but
including, in the case of salespersons, sales commissions to the extent
determined by the Board or the Committee.

     5. Deductions. The Company will maintain payroll deduction accounts for
        ----------
all participating employees. With respect to any Offering made under this Plan,
an employee may authorize a payroll deduction in any dollar amount up to a
maximum of 10% of the Compensation he or she receives during the Plan Period or
such shorter period during which deductions from payroll are made. Payroll
deductions may be at the rate of 1%, 2%, 3%, 4%, 5%, 6%, 7%, 8%, 9% or 10% of
Compensation with any change in compensation during the Plan Period to result in
an automatic corresponding change in the dollar amount withheld.

     No employee may be granted an Option (as defined in Section 9) which
permits his rights to purchase Common Stock under this Plan and any other
employee stock purchase plan (as defined in Section 423(b) of the Code) of the
Company and its subsidiaries, to accrue at a rate which exceeds $25,000 of the
fair market value of such Common Stock (determined at the Offering Commencement
Date of the Plan Period) for each calendar year in which the Option is
outstanding at any time.

     6. Deduction Changes. An employee may decrease or discontinue his payroll
        -----------------
deduction once during any Plan Period, by filing a new payroll deduction
authorization form. However, an employee may not increase his payroll deduction
during a Plan Period. If an employee elects to discontinue his payroll
deductions during a Plan Period, but does not elect to withdraw his funds
pursuant to Section 8 hereof, funds deducted prior to his election to
discontinue will be applied to the purchase of Common Stock on the Exercise Date
(as defined below).

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     7. Interest. Interest will not be paid on any employee accounts, except to
        --------
the extent that the Board or the Committee, in its sole discretion, elects to
credit employee accounts with interest at such per annum rate as it may from
time to time determine.

     8. Withdrawal of Funds. An employee may at any time prior to the close of
        -------------------
business on the last business day in a Plan Period and for any reason
permanently draw out the balance accumulated in the employee's account and
thereby withdraw from participation in an Offering. Partial withdrawals are not
permitted. The employee may not begin participation again during the remainder
of the Plan Period. The employee may participate in any subsequent Offering in
accordance with terms and conditions established by the Board or the Committee.

     9. Purchase of Shares. On the Offering Commencement Date of each Plan
        ------------------
Period, the Company will grant to each eligible employee who is then a
participant in the Plan an option ("Option") to purchase on the last business
day of such Plan Period (the "Exercise Date"), at the Option Price hereinafter
provided for, the largest number of whole shares of Common Stock of the Company
as does not exceed the number of shares determined by multiplying $2,083 by the
number of full months in the Offering Period and dividing the result by the
closing price (as defined below) on the Offering Commencement Date of such Plan
Period.

     The purchase price for each share purchased will be 85% of the closing
price of the Common Stock on (i) the first business day of such Plan Period or
(ii) the Exercise Date, whichever closing price shall be less.  Such closing
price shall be (a) the closing price on any national securities exchange on
which the Common Stock is listed, (b) the closing price of the Common Stock on
the Nasdaq National Market or (c) the average of the closing bid and asked
prices in the over-the-counter-market, whichever is applicable, as published in
The Wall Street Journal.  If no sales of Common Stock were made on such a day,
-----------------------
the price of the Common Stock for purposes of clauses (a) and (b) above shall be
the reported price for the next preceding day on which sales were made.

     Each employee who continues to be a participant in the Plan on the Exercise
Date shall be deemed to have exercised his Option at the Option Price on such
date and shall be deemed to have purchased from the Company the number of full
shares of Common Stock reserved for the purpose of the Plan that his accumulated
payroll deductions on such date will pay for, but not in excess of the maximum
number determined in the manner set forth above.

     Any balance remaining in an employee's payroll deduction account at the end
of a Plan Period will be automatically refunded to the employee, except that any
balance which is less than the purchase price of one share of Common Stock will
be carried forward into the employee's payroll deduction account for the
following Offering, unless the employee elects not to participate in the
following Offering under the Plan, in which case the balance in the employee's
account shall be refunded.

     10. Issuance of Certificates. Certificates representing shares of Common
         ------------------------
Stock purchased under the Plan may be issued only in the name of the employee,
in the name of the employee and another person of legal age as joint tenants
with rights of survivorship, or (in the Company's sole discretion) in the

                                      -3-

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name of a brokerage firm, bank or other nominee holder designated by the
employee. The Company may, in its sole discretion and in compliance with
applicable laws, authorize the use of book entry registration of shares in lieu
of issuing stock certificates.

     11. Rights on Retirement, Death or Termination of Employment. In the event
         --------------------------------------------------------
of a participating employee's termination of employment prior to the last
business day of a Plan Period, no payroll deduction shall be taken from any pay
due and owing to an employee and the balance in the employee's account shall be
paid to the employee or, in the event of the employee's death, (a) to a
beneficiary previously designated in a revocable notice signed by the employee
(with any spousal consent required under state law) or (b) in the absence of
such a designated beneficiary, to the executor or administrator of the
employee's estate or (c) if no such executor or administrator has been appointed
to the knowledge of the Company, to such other person(s) as the Company may, in
its discretion, designate. If, prior to the last business day of the Plan
Period, the Designated Subsidiary by which an employee is employed shall cease
to be a subsidiary of the Company, or if the employee is transferred to a
subsidiary of the Company that is not a Designated Subsidiary, the employee
shall be deemed to have terminated employment for the purposes of this Plan.

     12. Optionees Not Stockholders. Neither the granting of an Option to an
         --------------------------
employee nor the deductions from his pay shall constitute such employee a
stockholder of the shares of Common Stock covered by an Option under this Plan
until such shares have been purchased by and issued to him.

     13. Rights Not Transferable. Rights under this Plan are not transferable
         -----------------------
by a participating employee other than by will or the laws of descent and
distribution, and are exercisable during the employee's lifetime only by the
employee .

     14. Application of Funds. All funds received or held by the Company under
         --------------------
this Plan may be combined with other corporate funds and may be used for any
corporate purpose.

     15. Adjustment in Case of Changes Affecting Common Stock. In the event of
         ----------------------------------------------------
a subdivision of outstanding shares of Common Stock, or the payment of a
dividend in Common Stock, the number of shares approved for this Plan, and the
share limitation set forth in Section 9, shall be increased proportionately, and
such other adjustment shall be made as may be deemed equitable by the Board or
the Committee. In the event of any other change affecting the Common Stock, such
adjustment shall be made as may be deemed equitable by the Board or the
Committee to give proper effect to such event.

     16. Merger. If the Company shall at any time merge or consolidate with
         ------
another corporation and the holders of the capital stock of the Company
immediately prior to such merger or consolidation continue to hold at least 80%
by voting power of the capital stock of the surviving corporation ("Continuity
of Control"), the holder of each Option then outstanding will thereafter be
entitled to receive at the next Exercise Date upon the exercise of such Option
for each share as to which such Option shall be exercised the securities or
property which a holder of

                                      -4-

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one share of the Common Stock was entitled to upon and at the time of such
merger or consolidation, and the Board or the Committee shall take such steps in
connection with such merger or consolidation as the Board or the Committee shall
deem necessary to assure that the provisions of Section 15 shall thereafter be
applicable, as nearly as reasonably may be, in relation to the said securities
or property as to which such holder of such Option might thereafter be entitled
to receive thereunder.

     In the event of a merger or consolidation of the Company with or into
another corporation which does not involve Continuity of Control, or of a sale
of all or substantially all of the assets of the Company while unexercised
Options remain outstanding under the Plan, (a) subject to the provisions of
clauses (b) and (c), after the effective date of such transaction, each holder
of an outstanding Option shall be entitled, upon exercise of such Option, to
receive in lieu of shares of Common Stock, shares of such stock or other
securities as the holders of shares of Common Stock received pursuant to the
terms of such transaction; or (b) all outstanding Options may be cancelled by
the Board or the Committee as of a date prior to the effective date of any such
transaction and all payroll deductions shall be paid out to the participating
employees; or (c) all outstanding Options may be cancelled by the Board or the
Committee as of the effective date of any such transaction, provided that notice
of such cancellation shall be given to each holder of an Option, and each holder
of an Option shall have the right to exercise such Option in full based on
payroll deductions then credited to his account as of a date determined by the
Board or the Committee, which date shall not be less than ten (10) days
preceding the effective date of such transaction.

     17. Amendment of the Plan. The Board may at any time, and from time to
         ---------------------
time, amend this Plan in any respect, except that (a) if the approval of any
such amendment by the shareholders of the Company is required by Section 423 of
the Code, such amendment shall not be effected without such approval, and (b) in
no event may any amendment be made which would cause the Plan to fail to comply
with Section 423 of the Code.

     18. Insufficient Shares. In the event that the total number of shares of
         -------------------
Common Stock specified in elections to be purchased under any Offering plus the
number of shares purchased under previous Offerings under this Plan exceeds the
maximum number of shares issuable under this Plan, the Board or the Committee
will allot the shares then available on a pro rata basis.

     19. Termination of the Plan. This Plan may be terminated at any time by
         -----------------------
the Board. Upon termination of this Plan all amounts in the accounts of
participating employees shall be promptly refunded.

     20. Governmental Regulations. The Company's obligation to sell and deliver
         ------------------------
Common Stock under this Plan is subject to listing on a national stock exchange
or quotation on the Nasdaq National Market (to the extent the Common Stock is
then so listed or quoted) and the approval of all governmental authorities
required in connection with the authorization, issuance or sale of such stock.

                                      -5-

<PAGE>

     21. Governing Law. The Plan shall be governed by Delaware law except to
         -------------
the extent that such law is preempted by federal law.

     22. Issuance of Shares. Shares may be issued upon exercise of an Option
         ------------------
from authorized but unissued Common Stock, from shares held in the treasury of
the Company, or from any other proper source.

     23. Notification upon Sale of Shares. Each employee agrees, by entering
         --------------------------------
the Plan, to promptly give the Company notice of any disposition of shares
purchased under the Plan where such disposition occurs within two years after
the date of grant of the Option pursuant to which such shares were purchased.

     24. Effective Date and Approval of Shareholders. The Plan shall take
         -------------------------------------------
effect on the first business day following the Company's initial public
offering, subject to approval by the shareholders of the Company as required by
Section 423 of the Code, which approval must occur within twelve months of the
adoption of the Plan by the Board.

                              Adopted by the Board of Directors
                              on March 1, 2000

                              Approved by the stockholders
                              on March __, 2000

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