Document:

EX-10.1

RAIT INVESTMENT TRUST

2005 EQUITY COMPENSATION PLAN

(Amended and Restated, As of May 18, 2005)

ARTICLE I

GENERAL

1.01 Purpose. The purposes of this Plan are to: (1) closely associate the interests of the
management and trustees of the Company with the shareholders of RAIT by reinforcing the
relationship between compensation and shareholder gains; (2) provide senior management and trustees
of the Company with an equity ownership in RAIT commensurate with RAIT’s performance, as reflected
in increased shareholder value; (3) maintain competitive compensation levels; and (4) provide an
incentive to senior management and trustees for continuous employment or service with the Company.

1.02 Definitions. In this Plan, the following definitions shall apply:

(a) “Affiliate” means any person or entity which directly, or indirectly through one or
more intermediaries, controls, is controlled by, or is under common control with RAIT.

(b) “Board” means the Board of Trustees of RAIT.

(c) “Change of Control” means the first to occur of any of the following events:

(i) Any “person” (as such term is used in sections 13(d) and 14(d) of the Exchange Act)
becomes a “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of securities of RAIT representing more than 50% of the voting power of the then
outstanding securities of RAIT; provided that a Change of Control shall not be deemed to
occur as a result of a transaction in which RAIT becomes a subsidiary of another real estate
investment trust and in which the shareholders of RAIT, immediately prior to the transaction,
will beneficially own, immediately after the transaction, shares entitling such shareholders
to more than 50% of all votes to which all shareholders of the parent entity would be
entitled in the election of trustees (without consideration of the rights of any class of
 shares to elect trustees by a separate class vote);

(ii) The consummation of (A) a merger or consolidation of RAIT with another real estate
investment trust where the shareholders of RAIT, immediately prior to the merger or
consolidation, will not beneficially own, immediately after the merger or consolidation,
 shares entitling such shareholders to more than 50% of all votes to which all shareholders of
the surviving real estate investment trust would be entitled in the election of trustees
(without consideration of the rights of any class of shares to elect trustees by a separate
class vote), (ii) a sale or other disposition of all or substantially all of the assets of
RAIT, or (iii) a liquidation or dissolution of RAIT; or

(iii) After the date this amended and restated Plan is approved by the shareholders of
RAIT, trustees are elected such that a majority of the members of the Board shall have been
members of the Board for less than two years, unless the election or nomination for election
of each new trustee who was not a trustee at the beginning of such two-year period was
approved by a vote of at least two-thirds of the trustees then still in office who were
trustees at the beginning of such period.

(d) “Code” means the Internal Revenue Code of 1986, as amended.

(e) “Committee” means the Compensation Committee of the Board or its successor, or such
other committee that the Board has delegated with authority to administer the Plan, subject to
any limitations imposed by RAIT’s bylaws and charter and applicable laws, rules and regulations.
Notwithstanding the foregoing, the “Committee” may be the Board, to the extent that the Board
has retained authority to administer the Plan with respect to all or any specific Grants and the
Board may ratify any Grants it deems necessary or appropriate.

(f) “Common Shares” means common shares of beneficial interest, par value $0.01, of RAIT.

(g) “Company” means RAIT, any Parent, any Subsidiary, and any Affiliate.

(h) “Consultant” means consultants and advisors who perform services for the Company, but
does not mean any consultant or advisor who (i) does not render bona fide services to the
Company, (ii) performs services that are in connection with the offer and sale of securities in
a capital-raising transaction, and (iii) directly or indirectly promotes or maintains a market
for RAIT’s securities.

(i) “Date of Grant” means the date a Grant is effective; provided, however, that no
retroactive Grants will be made.

(j) “Dividend Equivalent” means an amount determined by multiplying the number of Common
Shares or Units subject to a Grant by the per-share cash dividend, or the per-share fair market
value (as determined by the Committee) of any dividend in consideration other than cash, paid by
RAIT on its Common Shares on a dividend payment date.

(k) “Effective Date” means May 18, 2005. The Plan initially became effective on December 5,
1997.

(l) “Employee” means an employee of the Company (including any officer or trustee who is an
employee).

(m) “Exchange Act” means the Securities Exchange Act of 1934, as amended.

(n) “Fair Market Value” means (x) the closing price on the Date of Grant or on the next
business day, if such Date of Grant is not a business day, of a Common Share reported on the New
York Stock Exchange (or any other exchange on which the Common Shares are listed or, if
applicable, the Nasdaq National Market), or (y) if the Common Shares are not principally traded
on such exchange or market, the mean between the last reported “bid” and “asked” prices of
Common Shares on the relevant date, as reported on Nasdaq or, if not so reported, as reported by
the National Daily Quotation Bureau, Inc. or as reported in a customary financial reporting
service, as applicable, and as the Committee determines. If the Common Shares are not publicly
traded or, if publicly traded, are not subject to reported transactions or “bid” or “asked”
quotations as set forth above, the Fair Market Value per Common Share shall be as determined by
the Committee. In no event shall the Fair Market Value of any Common Share be less than its par
value.

(o) “Grant” means an Option, SAR, Unit, Share Award, Dividend Equivalent or Other
Share-Based Award granted under the Plan.

(p) “Grant Agreement” means the written agreement that sets forth the terms and conditions
of a Grant, including any amendments thereto.

(q) “Non-Employee Trustee” means a member of the Board, or member of the board of trustees
of a Subsidiary, who is not an employee of the Company.

(r) “Incentive Stock Option” means an option that is intended to meet the requirements of
section 422 of the Code, as described in Article II.

(s) “Nonqualified Option” means a stock option that is not intended to meet the
requirements of section 422 of the Code, as described in Article II.

(t) “Option” means an Incentive Stock Option or Nonqualified Option to purchase Common
Shares at an Option Price for a specified period of time.

(u) “Option Price” means the purchase price per Common Share deliverable upon the exercise
of a Option.

(v) “Other Share-Based Award” means any Grant based on, measured by or payable in Common
Shares (other than Grants described in Articles II, III, IV, V, and VI), as described in Article
VII.

(w) “Parent” means a “parent corporation,” as defined in section 424(e) of the Code, of
RAIT.

(x) “Participant” means an Employee, Non-Employee Trustee or Consultant designated by the
Committee to receive a Grant under the Plan.

(y) “Phantom Share Plan” means the RAIT Investment Trust Phantom Share Plan.

(z) “Plan” means this RAIT Investment Trust 2005 Equity Compensation Plan (formerly known
as the RAIT Investment Trust 1997 Stock Option Plan).

(aa) “RAIT” means RAIT Investment Trust, a Maryland real estate investment trust.

(bb) “SAR” means an award of a share appreciation right, as described in Article III.

(cc) “Share Award” means an award of Common Shares, as described in Article V.

(dd) “Subsidiary” means a “subsidiary corporation,” as defined in section 424(f) of the
Code, of RAIT.

(ee) “Ten Percent Shareholder” means a person who on the date the Option is granted owns
ten percent (10%) or more of the total combined voting power of RAIT and its Parent or
Subsidiaries, taking into account the attribution rules contained in section 424(d) of the Code.

(ff) “Unit” means an award of a phantom unit, representing one or more Common Shares, as
described in Article IV.

1.03 Administration.

(a) The Plan shall be administered and interpreted by the Committee. Ministerial functions
relating to the Plan may be performed by Employees designated with such authority by the Committee.

(b) The Committee shall have the authority, in its sole discretion and from time to time to:

(i) designate the Employees, Non-Employee Trustees and Consultants who are eligible to
participate in the Plan;

(ii) make Grants provided in the Plan in such form and amount as the Committee shall
determine;

(iii) impose such limitations, restrictions and conditions upon any such Grant as the
Committee shall deem appropriate; and

(iv) interpret the Plan and any Grant, adopt, amend and rescind rules and regulations
relating to the Plan and any Grant, and make all other determinations and take all other actions
necessary or advisable for the implementation and administration of the Plan.

(c) The Committee shall have full power and express discretionary authority to administer and
interpret the Plan, to make factual determinations and to adopt or amend such rules, regulations,
agreements and instruments for implementing the Plan and for the conduct of its business as it
deems necessary or advisable, in its sole discretion. The Committee’s interpretations of the Plan
and all determinations made by the Committee pursuant to the powers vested in it hereunder shall be
conclusive and binding on all persons who have any interest in the Plan or in any Grants awarded
hereunder. All powers of the Committee shall be executed in its sole discretion, in the best
interest of RAIT, not as a fiduciary, and in keeping with the objectives of the Plan and need not
be uniform as to similarly situated individuals. No member of the Committee shall be liable for any
action taken or decision made in good faith relating to the Plan or any Grant thereunder.

1.04 Eligibility for Participation. Participants in the Plan shall be selected by the
Committee from the Employees of the Company. In addition, Non-Employee Trustees and Consultants who
have contributed to the success of the Company shall be eligible to participate in the Plan. In
making this selection and in determining the form of Grant and number of Common Shares or other
rights subject to the Grant, the Committee shall consider any factors deemed relevant, including
the individual’s functions, responsibilities, value of services to the Company and past and
potential contributions to the Company’s profitability and sound growth.

1.05 Grants. Grants under the Plan may be in the form of any one or more of the following:
(i) Options, (ii) SARs, (iii) Units, (iv) Share Awards, (v) Dividend Equivalents, and (vi) Other
Share-Based Awards. All Grants shall be subject to the terms and conditions set forth herein and to
such other terms and conditions consistent with the Plan as the Committee deems appropriate and as
are specified in writing by the Committee in separate guidelines or to the Participant in the Grant
Agreement or an amendment to the guidelines or Grant Agreement. The Committee shall approve the
form and provisions of each Grant Agreement. Grants under a particular Article of the Plan need not
be uniform as among Participants. All Grants shall be made conditional upon the Participant’s
acknowledgment, in writing or by acceptance of the Grant, that all decisions and determinations of
the Committee shall be final and binding on the Participant, his or her beneficiaries, and any
other person having or claiming an interest under such Grant. Notwithstanding any provision of the
Plan to the contrary, the Committee may make Grants that are contingent on, and subject to,
shareholder approval of the Plan or an amendment to the Plan.

1.06 Aggregate Limitation on Awards.

(a) Shares which may be issued under the Plan shall be Common Shares. The maximum number of
Common Shares which may be issued under the Plan shall be 2,500,000 Common Shares, subject to
adjustment as described in Section 10.10 below. The Common Shares may be authorized but unissued
Common Shares or reacquired Common Shares, including Common Shares purchased by RAIT on the open
market for purposes of the Plan. Grants paid in cash shall not count against the foregoing Common
Share limit.

(b) For administrative purposes, when the Committee makes a Grant payable in Common Shares,
the Committee shall reserve Common Shares equal to the maximum number of Common Shares that may be
payable under the Grant. If and to the extent Options or SARs granted under the Plan terminate,
expire, or are canceled, forfeited, exchanged or surrendered without having been exercised or if
any Share Awards, Units, Dividend Equivalents or Other Share-Based Awards are forfeited or
terminated, or otherwise not paid in full, the Common Shares subject to such Grants which have not
been issued shall again be available for purposes of the Plan. Common Shares surrendered in payment
of the Option Price of an Option or withheld for purposes of satisfying the Company’s minimum tax
withholding obligations with respect to Grants under the Plan shall again be available for issuance
or transfer under the Plan. To the extent that any Grants are paid in cash, and not in Common
Shares, any Common Shares previously reserved for issuance or transfer pursuant to such Grants
shall again be available for issuance or transfer under the Plan.

(c) All Grants under the Plan, other than Dividend Equivalents, shall be expressed in Common
Shares. The maximum aggregate number of Common Shares with respect to which all Grants, other than
Dividend Equivalents, may be made under the Plan to any individual during any calendar year shall
be 500,000 Common Shares, subject to adjustment as described in Section 10.10 below. The maximum
aggregate number of Common Shares with respect to which all Grants, other than Options, SARs and
Dividend Equivalents, that may be made under the Plan to any individual in any calendar year shall
be 250,000 Common Shares, subject to adjustment as described in Section 10.10 below. A Participant
may not accrue Dividend Equivalents during any calendar year in excess of $1,000,000. The
individual limits of this subsection (c) shall apply without regard to whether the Grants are to be
paid in Common Shares or in cash. All cash payments (other than Dividend Equivalents) shall equal
the Fair Market Value of the Common Shares to which the cash payment relates.

1.07 Effective Date and Term of Plan.

(a) This amended and restatement of the Plan is effective as of the Effective Date, subject to
approval by RAIT’s shareholders.

(b) No Grants shall be made under the Plan after the day immediately preceding the tenth
anniversary of the Effective Date, provided, however, that the Plan and all Grants made under the
Plan prior to such date shall remain in effect until such Grants have been satisfied or terminated
in accordance with the Plan and the terms of such Grants.

ARTICLE II

OPTIONS

2.01 Award of Options. The Committee may from time to time, and subject to the provisions of
the Plan and such other terms and conditions as the Committee may prescribe, grant to any
Participant in the Plan Options.

2.02 Option Agreements. The Grant of an Option shall be evidenced by a written Grant
Agreement, executed by RAIT and the holder of the Option, stating the number of Common Shares
subject to the Option, the type of Option, and the terms and conditions of the Option.

2.03 Type of Option and Price.

(a) The Committee may grant Incentive Stock Options or Nonqualified Options or a combination
of Incentive Stock Options and Nonqualified Options. Incentive Stock Options may only be granted to
Employees of RAIT or its Parent or Subsidiaries. Nonqualified Options may be granted to Employees,
Non-Employee Trustees and Consultants.

(b) The Option Price shall be determined by the Committee and shall not be less than 100% of
the Fair Market Value of a Common Share on the Date of Grant of the Option; provided, however, that
an Incentive Stock Option may not be granted to an Employee who, at the Date of Grant, is a Ten
Percent Shareholder, unless the Option Price is not less than 110% of the Fair Market Value of the
Common Shares subject to the Option on the Date of Grant.

2.04 Term and Exercise.

(a) The Committee shall determine the term of each Option. The term shall not exceed ten years
from the Date of Grant. However, an Incentive Stock Option that is granted to an Employee who, at
the Date of Grant, is a Ten Percent Shareholder, may not have a term that exceeds five years from
the Date of Grant. No Option shall be exercisable after the expiration of its term.

(b) Each Option shall be fully exercisable from and after the date(s) prescribed by the
Committee in the Grant Agreement for the Option, subject to such terms and conditions set forth in
the Grant Agreement. The Committee may accelerate the exercisability of any or all outstanding
Options at any time for any reason. The Committee may also provide in the Grant Agreement that the
Participant may elect to exercise all or part of the Option before it otherwise has become
exercisable. Any Common Shares so purchased shall be restricted Common Shares and shall be subject
to a repurchase right in favor of RAIT during a specified restriction period and shall have such
other terms and conditions as determined by the Committee.

2.05 Manner of Exercise. A Participant may exercise an Option that has become exercisable,
in whole or in part, by delivering a notice of exercise to RAIT or its designated agent. The
Participant shall pay the Option Price and any withholding taxes for the Option (i) in cash or by
certified check, (ii) with the approval of the Committee, by delivering Common Shares owned by the
Participant and having a Fair Market Value on the date of exercise equal to the Option Price or by
attestation (on a form prescribed by the Committee) to ownership of Common Shares having an
aggregate Fair Market Value on the date of exercise equal to the Option Price, (iii) subject to
approval of the Committee or its designee, in cash, on the T+3 settlement date that occurs after
the exercise date specified in the notice of exercise, provided that the Participant exercises the
Option through an irrevocable agreement with a registered broker and the payment is made in
accordance with procedures permitted by Regulation T of the Federal Reserve Board and such
procedures do not violate applicable law, or (iv) by such other method as the Committee may
approve, to the extent permitted by applicable law. Common Shares used to exercise an Option shall
have been held by the Participant for the requisite period of time to avoid adverse accounting
consequences to RAIT with respect to the Option. Payment for the Common Shares pursuant to the
Option, and any required withholding taxes, must be received by the time specified by the Committee
depending on the type of payment being made.

2.06 Termination of Employment or Service. Except as otherwise provided in the Grant
Agreement or in this Section 2.06, an Option may only be exercised while the Participant is
employed by, or providing service to, the Company.

(a) Unless the Committee determines otherwise, upon the death of the Participant, any
Option exercisable on the date of death may be exercised by the optionee’s estate, or by a
person who acquires the right to exercise such Option by bequest or inheritance or by reason of
the death of the Participant, provided that such exercise occurs within the earlier of (i) the
one year period after the Participant’s termination of employment or service or (ii) the
remaining effective term of the Option. The provisions of this subsection shall apply
notwithstanding the fact that the Participant’s employment may have terminated prior to death,
but only to the extent of any rights exercisable on the date of death.

(b) Unless the Committee determines otherwise, upon termination of the Participant’s
employment or service by reason of retirement or permanent disability (as each is determined by
the Committee), the Participant may, within the earlier of (i) the six month period after the
Participant’s termination of employment or service or (ii) the remaining effective term of the
Option, exercise any Options to the extent such Options are exercisable at the time of the
Participant’s termination of employment or service; provided, however, that if the Option is an
Incentive Stock Option, if the termination of employment is on account of retirement, the Option
may only be exercised as an Incentive Stock Option within 3 months after the Participant’s
termination of employment and if the Incentive Stock Option is exercised after the end of such 3
month period, the Option will be exercised as a Nonqualified Option.

(c) Unless the Committee determines otherwise, if the Participant has a termination of
employment or service for any reason other than in subsection (a) or (b), all Options held by
the Participant shall terminate upon the termination of the Participant’s employment or service.

2.07 Reload Options. In the event that Common Shares are used to exercise an Option, the
terms the Grant Agreement for such Option may provide for a Grant of additional Options, or the
Committee may grant additional Options, to purchase a number of Common Shares equal to the number
of whole Common Shares used to exercise the Option and the number of whole Common Shares, if any,
withheld in payment of any taxes. Such Options shall be granted with an Option Price equal to the
Fair Market Value of the Common Shares on the Date of Grant of such additional Options, or at such
other Exercise Price as the Committee may establish, provided, that the Option Price shall not be
less than the Fair Market Value of the Common Shares on the Date of Grant of such additional, and
the additional Option shall not have a term longer than the unexpired term of the exercised Option
and shall have such other terms as the Committee shall determine.

2.08 Limits on Incentive Stock Options. Each Incentive Stock Option shall provide that if
the aggregate Fair Market Value on the Date of Grant with respect to which Incentive Stock Options
are exercisable for the first time by a Participant during any calendar year, under the Plan or any
other stock option plan of RAIT or a Parent or Subsidiary, exceeds $100,000, then the Option, as to
the excess, shall be treated as a Nonqualified Option.

ARTICLE III

SARSS

3.01 Award of SARs. The Committee may from time to time, and subject to the provisions of
the Plan and such other terms and conditions as the Committee may prescribe, grant to any
Participant in the Plan SARs. Each SAR shall represent the right of the Participant to receive,
upon settlement of the SAR, as determined by the Committee, in its sole discretion, Common Shares
or cash equal to the amount by which the Fair Market Value of a Common Share on the date of
exercise of the SAR exceeds the base amount of the SAR as described below in Section 3.04.

3.02 SAR Agreements. The Grant of an SAR shall be evidenced by a written Grant Agreement,
executed by RAIT and the holder of a SAR, and shall specify the number of SARs to be granted, the
base amount, the vesting and other restrictions applicable to SARs, and the period during which
SARs will remain exercisable.

3.03 Terms. The Committee shall determine the terms and conditions of SARs and may grant
SARs separately from or in tandem with any Option (for all or a portion of the applicable Option).
Tandem SARs may be granted either at the time the Option is granted or any time thereafter while
the Option remains outstanding; provided, however, that in the case of an Incentive Stock Option,
SARs may be granted only at the time of the grant of the Incentive Stock Option.

3.04 Base Amount. The Committee shall establish the base amount of the SAR at the time the
SAR is granted, but such base amount shall not be less than the Fair Market Value of the
corresponding Common Shares on the Date of Grant.

3.05 Payment With Respect to SARs. The Committee shall determine whether the appreciation in
an SAR shall be paid in the form of cash, in Common Shares, or in a combination of the two, in such
proportion as the Committee deems appropriate. For purposes of calculating the number of Common
Shares to be received, Common Shares shall be valued at its Fair Market Value on the date of
exercise of the SAR. If Common Shares are to be received upon exercise of an SAR, cash shall be
delivered in lieu of any fractional share.

3.06 Termination of Employment or Service. The Committee shall determine in the Grant
Agreement under what circumstances a Participant may retain SARs after termination of the
Participant’s employment or service, and the circumstances under which SARs may be forfeited.

ARTICLE IV

UNITS

4.01 Award of Units. The Committee may from time to time, and subject to the provisions of
the Plan and such other terms and conditions as the Committee may prescribe, grant to any
Participant in the Plan Units. Each Unit shall represent the right of the Participant to receive,
as determined by the Committee, in its sole discretion, a Common Share or an amount based on the
value of a Common Share. All Units shall be credited to accounts on RAIT’s records for purposes of
the Plan.

4.02 Unit Agreements. The Grant of a Unit shall be evidenced by a written Grant Agreement,
executed by RAIT and the holder of a Unit, and shall specify the number of Units to be granted, the
vesting date, the redemption date, and the other terms and conditions of the Unit.

4.03 Terms. The Committee may grant Units that are payable if specified performance goals or
other conditions are met, or under other circumstances. Units may be redeemed at the end of a
specified performance period or other period, or redemption may be deferred to a date authorized by
the Committee.

4.04 Redemption With Respect to Units. Redemptions with respect to Units shall be made in
cash, in Common Shares, or in a combination of the two, as determined by the Committee.

4.05 Termination of Employment or Service. The Committee shall determine in the Grant
Agreement under what circumstances a Participant may retain Units after termination of the
Participant’s employment or service, and the circumstances under which Units may be forfeited.

ARTICLE V

SHARE AWARDS

5.01 Award of Share Awards. The Committee may from time to time, and subject to the
provisions of the Plan and such other terms and conditions as the Committee may prescribe, issue or
transfer to any Participant in the Plan Share Awards. Each Share Award shall represent the right of
the Participant to receive a Common Share if certain conditions are met.

5.02 Share Award Agreements. The Grant of a Share Award shall be evidenced by a written
Grant Agreement, executed by RAIT and the holder of a Share Award, and shall specify the number of
Common Shares to be granted pursuant to the Share Award, when the restrictions, if any, will lapse,
and the other terms and conditions of the Share Award.

5.03 Terms. Common Shares issued or transferred pursuant to Share Awards may be issued or
transferred for consideration or for no consideration, and subject to restrictions or no
restrictions, as determined by the Committee. The Committee may, but shall not be required to,
establish conditions under which restrictions on Share Awards shall lapse over a period of time or
according to such other criteria as the Committee deems appropriate, including, without limitation,
restrictions based upon the achievement of specific performance goals. The period of time during
which the Share Awards will remain subject to restrictions will be designated in the Grant
Agreement as the “Restriction Period.”

5.04 Termination of Employment or Service. The Committee shall determine in the Grant
Agreement under what circumstances a Participant may retain Share Awards after termination of the
Participant’s employment or service, and the circumstances under which Share Awards may be
forfeited.

5.05 Restrictions on Transfer and Legend on Share Certificate. During the Restriction Period,
a Participant may not sell, assign, transfer, pledge or otherwise dispose of the Common Shares
subject to the Share Award. Each certificate for a Common Share of a Share Award, or electronic
book entry equivalent, for a Common Share of a Share Award shall contain a legend giving
appropriate notice of the restrictions in the Grant. The Participant shall be entitled to have the
legend removed from the share certificate covering the Common Shares subject to restrictions when
all restrictions on such Common Shares have lapsed. The Committee may determine that RAIT will not
issue certificates for Share Awards until all restrictions on such shares have lapsed, or that RAIT
will retain possession of certificates for Common Shares of Share Awards until all restrictions on
such shares have lapsed.

5.06 Right to Vote and to Receive Dividends. The Committee shall determine to what extent,
and under what conditions, the Participant shall have the right to vote Common Shares of a Share
Award and to receive any dividends or other distributions paid on such Common Shares during the
Restriction Period. The Committee may determine that a Participant’s entitlement to dividends or
other distributions with respect to a Share Award shall be subject to achievement of performance
goals or other conditions.

ARTICLE VI

DIVIDEND EQUIVALENTS

6.01 General Requirements. When the Committee makes a Grant under the Plan, the Committee
may grant Dividend Equivalents in connection with such Grants, under such terms and conditions as
the Committee deems appropriate under this Article VI. Dividend Equivalents may be paid to
Participants currently or may be deferred, as determined by the Committee. All Dividend Equivalents
that are not paid currently shall be credited to accounts on RAIT’s records for purposes of the
Plan. Dividend Equivalents may be accrued as a cash obligation, or may be converted to Units for
the Participant, as determined by the Committee. Unless otherwise specified in the Grant Agreement,
deferred Dividend Equivalents will not accrue interest. The Committee may provide that Dividend
Equivalents shall be payable based on the achievement of specific performance goals.

6.02 Payment with Respect to Dividend Equivalents. Dividend Equivalents may be payable in
cash or Common Shares or in a combination of the two, as determined by the Committee.

ARTICLE VII

OTHER SHARE-BASED AWARDS

The Committee may grant Other Share-Based Awards, which are awards that are based on, measured
by or payable in Common Shares to any Participant, on such terms and conditions as the Committee
shall determine. Other Share-Based Awards may be awarded subject to the achievement of performance
goals or other conditions and may be payable in cash, Common Shares or any combination of the
foregoing, as the Committee shall determine in the Grant Agreement. Common Shares to be issued
under the Phantom Share Plan to participants in the Phantom Share Plan shall be issued under the
Plan pursuant to this Article VII.

ARTICLE VIII

QUALIFIED PERFORMANCE-BASED COMPENSATION

8.01 Designation as Qualified Performance-Based Compensation. The Committee may determine
that Units, Share Awards, Dividend Equivalents or Other Share-Based Awards granted to an Employee
shall be considered “qualified performance-based compensation” under section 162(m) of the Code.
The provisions of this Article VIII shall apply to any such Grants that are to be considered
“qualified performance-based compensation” under section 162(m) of the Code. To the extent that
Grants of Units, Share Awards, Dividend Equivalents or Other Share-Based Awards designated as
“qualified performance-based compensation” under section 162(m) of the Code are made, no such Grant
may be made as an alternative to another Grant that is not designated as “qualified performance
based compensation” but instead must be separate and apart from all other Grants made.

8.02 Performance Goals. When Units, Share Awards, Dividend Equivalents or Other Share-Based
Awards that are to be considered “qualified performance-based compensation” are granted, the
Committee shall establish in writing (i) the objective performance goals that must be met, (ii) the
period during which performance will be measured, (iii) the maximum amounts that may be paid if the
performance goals are met, and (iv) any other conditions that the Committee deems appropriate and
consistent with the Plan and the requirements of section 162(m) of the Code for “qualified
performance-based compensation.” The performance goals shall satisfy the requirements for
“qualified performance-based compensation,” including the requirement that the achievement of the
goals be substantially uncertain at the time they are established and that the performance goals be
established in such a way that a third party with knowledge of the relevant facts could determine
whether and to what extent the performance goals have been met. The Committee shall not have
discretion to increase the amount of compensation that is payable upon achievement of the
designated performance goals, but the Committee may reduce the amount of compensation that is
payable upon achievement of the designated performance goals.

8.03 Criteria Used for Objective Performance Goals. The Committee shall use objectively
determinable performance goals based on one or more of the following criteria: Common Share price,
earnings per Common Share, net earnings, operating earnings, return on assets, shareholder return,
return on equity, growth in assets, unit volume, sales, market share, or strategic business
criteria consisting of one or more objectives based on meeting specific revenue goals, market
penetration goals, geographic business expansion goals, cost targets or goals relating to
acquisitions or divestitures. The performance goals may relate to the Participant’s business unit
or the performance of RAIT, a Subsidiary, a Parent, or Affiliate or RAIT and its Parent,
Subsidiaries and Affiliates as a whole, or any combination of the foregoing. Performance goals need
not be uniform as among Participants.

8.04 Timing of Establishment of Goals. The Committee shall establish the performance goals
in writing either before the beginning of the performance period or during a period ending no later
than the earlier of (i) 90 days after the beginning of the performance period or (ii) the date on
which 25% of the performance period has been completed, or such other date as may be required or
permitted under applicable regulations under section 162(m) of the Code.

8.05 Certification of Results. The Committee shall certify and announce the results for the
performance period to all Participants after RAIT announces RAIT’s financial results for the
performance period. The Committee shall determine the amount, if any, to be paid pursuant to each
Grant based on the achievement of the performance goals and the terms of each Grant Letter.

8.06 Death, Disability or Other Circumstances. The Committee may provide in the Grant
Agreement that Grants shall be payable, in whole or in part, in the event of the Participant’s
death or disability, a Change of Control or under other circumstances consistent with the Treasury
regulations and rulings under section 162(m) of the Code.

8.07 Shareholder Approval for “Qualified Performance Based Compensation”. If Units, Share
Awards, Dividend Equivalents or Other Share-Based Awards are granted as “qualified
performance-based compensation” under this Article VIII, the Plan must be reapproved by RAIT’s
shareholders no later than the first shareholders meeting that occurs in the fifth year following
the year in which the shareholders previously approved the provisions of Article VIII, if
additional Grants are to be made under Article VIII and if required by section 162(m) of the Code
or the regulations thereunder.

ARTICLE IX

CONSEQUENCES OF A CHANGE OF CONTROL

9.01 Assumption of Grants. Upon a Change of Control where RAIT is not the surviving entity
(or survives only as a subsidiary of another entity), unless the Committee determines otherwise,
all outstanding Options and SARs that are not exercised shall be assumed, or replaced with
comparable options or rights, by the surviving entity (or a parent or subsidiary of the surviving
entity), and other outstanding Grants shall be converted to similar grants of the surviving entity
(or a parent or subsidiary of the surviving entity).

9.02 Other Alternatives. Notwithstanding the foregoing, in the event of a Change of Control,
the Committee may take any of the following actions with respect to any or all outstanding Grants:
the Committee may (i) determine that outstanding Options and SARs shall accelerate and become
exercisable, in whole or in part, upon the Change of Control or upon such other event as the
Committee determines, (ii) determine that the restrictions and conditions on outstanding Share
Awards shall lapse, in whole or in part, upon the Change of Control or upon such other event as the
Committee determines, (iii) determine that Participants holding Units shall receive a redemption in
settlement of such Units and that Dividend Equivalents and Other Share-Based Awards shall become
fully payable in cash or Common Shares in amounts determined by the Committee, (iv) require that
Participants surrender their outstanding Options and SARs in exchange for a payment by RAIT, in
cash or Common Shares as determined by the Committee, in an amount equal to the amount by which the
then Fair Market Value of the Common Shares subject to the Participant’s unexercised Options and
SARs exceeds the Option Price of the Options or the base amount of SARs, as applicable, or (v)
after giving Participants an opportunity to exercise their outstanding Options and SARs, terminate
any or all unexercised Options and SARs at such time as the Committee deems appropriate. Such
surrender, termination or settlement shall take place as of the date of the Change of Control or
such other date as the Committee may specify. The Committee shall have no obligation to take any of
the foregoing actions, and, in the absence of any such actions, outstanding Grants shall continue
in effect according to their terms (subject to any assumption pursuant to subsection (a)).

ARTICLE X

MISCELLANEOUS

10.01 General Restriction. Each Grant under the Plan shall be subject to the requirement
that, if at any time the Committee shall determine that (i) the listing, registration or
qualification of the Common Shares subject or related thereto upon any securities exchange or under
any state or Federal law, (ii) the consent or approval of any government regulatory body, or (iii)
an agreement by the recipient of a Grant with respect to the disposition of Common Shares, is
necessary or desirable as a condition of, or in connection with, the granting of such Grant or the
issue or purchase of Common Shares thereunder, such Grant may not be consummated in whole or in
part unless such listing, registration, qualification, consent, approval or agreement shall have
been effected or obtained free of any conditions not acceptable to the Committee.

10.02 Repricing. Notwithstanding anything in the Plan to the contrary, the Committee may not
reprice Options, nor may the Committee amend the Plan to permit repricing of Options, unless the
shareholders of the Company provide prior approval for such repricing.

10.03 Non-Assignability. No Grant under the Plan shall be assignable or transferable by the
recipient thereof, except by will or by the laws of descent and distribution. During the life of
the recipient, such Grant shall be exercisable only by such person or by such person’s guardian or
legal representative. Notwithstanding the foregoing, the Committee may provide in a Grant
Agreement, or amend an otherwise outstanding Grant Agreement to provide, that a Participant may
transfer Nonqualified Options to family members of the Participant, one or more trusts in which
family members of the Participant have more than 50% of the beneficial interest, foundations in
which family members of the Participant (or the Participant) control the management of assets, or
any other entity in which family members of the Participant (or the Participant) own more than 50%
of the voting interests, consistent with applicable securities laws, according to such terms as the
Committee may determine; provided that the Participant receives no consideration for the transfer
of a Nonqualified Option and the transferred Nonqualified Option shall continue to be subject to
the same terms and conditions as were applicable to the Nonqualified Option immediately before the
transfer.

10.04 Withholding Taxes. Whenever RAIT proposes or is required to issue or transfer Common
Shares under the Plan, the Company shall have the right to require the Participant to remit to the
Company an amount sufficient to satisfy any Federal, state and/or local withholding tax
requirements prior to the delivery of any certificate or certificates for such shares. The Company
may also deduct from the payment of cash payable pursuant to a Grant or other wages paid by the
Company to the Participant the amount of any withholding taxes due with respect to such Grants.
Alternatively, if the Committee so permits, a Participant may elect to satisfy the Company’s tax
withholding obligation with respect to Grants paid in Common Shares by having shares withheld at
the time such Grants become taxable, up to an amount that does not exceed the Participant’s minimum
applicable withholding tax rate for federal (including FICA), state and local tax liabilities. In
addition, with respect to any required tax withholding amount that exceeds the minimum applicable
withholding tax rate, the Committee may permit a Participant to satisfy such withholding obligation
with respect to such excess amount by providing that the Participant may elect to deliver to RAIT
the Common Shares owned by the Participant that have been held by the Participant for the requisite
period of time to avoid adverse accounting consequences to RAIT. The elections described in this
Section 10.04 must be in a form and manner prescribed by the Committee and may be subject to the
prior approval of the Committee. For withholding tax purposes, the Common Shares shall be valued on
the date the withholding obligation is incurred.

10.05 Employment or Service.

(a) Nothing in the Plan or in any Grant Agreement entered into pursuant to the Plan shall
confer upon any Participant the right to continue in the employment or service of the Company or
effect any right which the Company may have to terminate the employment or service of such
Participant.

(b) The terms “employ” or “employment” shall, where the context requires, be deemed to include
the hiring, continuation or termination of the services of any Consultant participating in the
Plan.

10.06 Non-Uniform Determinations. The Committee’s determinations under the Plan (including
without limitation determinations of the persons to receive Grants, the form, amount and timing of
such Grants, the terms and provisions of such Grants and the Grant Agreements evidencing same) need
not be uniform and may be made by it selectively among persons who receive, or are eligible to
receive, Grants under the Plan, whether or not such persons are similarly situated.

10.07 Rights as a Shareholder. The recipient of any Grant under the Plan shall have no
rights as a shareholder with respect thereto unless and until certificates for Common Shares are
issued to him.

10.08 Leaves of Absence. The Committee shall be entitled to make such rules, regulations and
determinations as it deems appropriate under the Plan in respect of any leave of absence taken by
the recipient of any Grant. Without limiting the generality of the foregoing, the Committee shall
be entitled to determine (i) whether or not any such leave of absence shall constitute a
termination of employment or service within the meaning of the Plan and (ii) the impact, if any, of
any such leave of absence on Grants under the Plan theretofore made to any recipient who takes such
leave of absence.

10.09 Newly Eligible Persons. The Committee shall be entitled to make such rules,
regulations, determinations and Grants as it deems appropriate in respect of any person who becomes
eligible to participate in the Plan or any portion thereof after the commencement of a Grant or
incentive period.

10.10 Adjustments. In the event of any change in the number or kind of outstanding Common
Shares by reason of a share dividend or distribution, recapitalization, merger, consolidation,
split-up, combination, exchange of shares or the like, or by reason of any other extraordinary or
unusual event affecting the outstanding Common Shares as a class without RAIT’s receipt of
consideration, the Committee may appropriately adjust the maximum number of Common Shares which may
be issued under the Plan, the maximum number of Common Shares for which any individual may receive
pursuant to Grants in any year, the number of Common Shares subject to outstanding Grants, the kind
of shares to be issued or transferred under the Plan, and the price per Common Share or the
applicable market value of such Grants; provided, however, that any fractional Common Shares
resulting from such adjustment shall be eliminated. Any adjustments determined by the Committee
shall be final, binding and conclusive.

10.11 Amendment of the Plan.

(a) The Committee may amend or terminate this Plan at any time; provided, however, that the
Committee shall not amend the Plan without shareholder approval if such approval is required in
order to comply with the Code or applicable laws, or to comply with applicable stock exchange
requirements. The Committee may also condition or modify Grants under this Plan in response to
changes in securities, tax or other laws or rules, regulations or regulatory interpretations
thereof applicable to this Plan or to comply with the rules or requirements of any stock exchange
or automated quotation system (including the Nasdaq Stock Market) on which the Common Shares are
listed or quoted.

(b) The Committee may at any time and from time to time terminate or modify or amend the Plan
in any respect, except that without shareholder approval the Committee may not (i) increase the
maximum number of Common Shares which may be issued under the Plan (other than increases pursuant
to Section 10.10), (ii) extend the maximum period during which any Grant may be granted or
exercised, or (iii) extend the term of the Plan. The termination or any modification or amendment
of the Plan, except as provided in subsection (a), shall not without the consent of a Participant,
adversely affect his or her rights under a Grant previously awarded to him or her.

10.12 Deferrals. The Committee may permit or require a Participant to defer receipt of the
payment of cash or the delivery of Common Shares that would otherwise be due to the Participant in
connection with any Grant. The Committee shall establish rules and procedures for such deferrals
taking into account the terms of the Plan and section 409A of the Code.

10.13 Grants in Connection with Transactions and Otherwise. Nothing contained in this Plan
shall be construed to (i) limit the right of the Committee to make Grants under this Plan in
connection with the acquisition, by purchase, lease, merger, consolidation or otherwise, of the
business or assets of any corporation, real estate investment trust, firm or association, including
Grants to employees thereof who become Employees, or for other proper purposes, or (ii) limit the
right of RAIT to grant options or make other awards outside of this Plan. Without limiting the
foregoing, the Committee may make a Grant to an employee of another real estate investment trust
who becomes an Employee by reason of a merger, consolidation, acquisition of shares or property,
reorganization or liquidation involving RAIT in substitution for a grant made by such real estate
investment trust. The terms and conditions of the substitute Grants may vary from the terms and
conditions required by the Plan and from those of the substituted share incentives. The Committee
shall prescribe the provisions of the substitute Grants.

10.14 Compliance with Law. The Plan, the exercise of Options and the obligations of RAIT to
issue or transfer Common Shares under Grants shall be subject to all applicable laws and to
approvals by any governmental or regulatory agency as may be required. With respect to persons
subject to section 16 of the Exchange Act, it is the intent of RAIT that the Plan and all
transactions under the Plan comply with all applicable provisions of Rule 16b-3 or its successors
under the Exchange Act. In addition, it is the intent of RAIT that the Plan and applicable Grants
comply with the applicable provisions of sections 162(m) and 422 of the Code and any deferrals
under the Plan comply with section 409A of the Code. To the extent that any legal requirement of
section 16 of the Exchange Act or sections 162(m), 409A or 422 of the Code as set forth in the Plan
ceases to be required under section 16 of the Exchange Act or sections 162(m), 409A or 422 of the
Code, that Plan provision shall cease to apply. The Committee may revoke any Grant if it is
contrary to law or modify a Grant to bring it into compliance with any valid and mandatory
government regulation. The Committee may also adopt rules regarding the withholding of taxes on
payments to Participants. The Committee may, in its sole discretion, agree to limit its authority
under this Section.

10.15 Enforceability. The Plan shall be binding upon and enforceable against RAIT and its
successors and assigns.

10.16 Funding of the Plan; Limitation on Rights. This Plan shall be unfunded. Neither RAIT
or any other Company shall be required to establish any special or separate fund or to make any
other segregation of assets to assure the payment of any Grants under this Plan. Nothing contained
in the Plan and no action taken pursuant hereto shall create or be construed to create a fiduciary
relationship between RAIT or any other Company and any Participant or any other person. No
Participant or any other person shall under any circumstances acquire any property interest in any
specific assets of RAIT or any other Company. To the extent that any person acquires a right to
receive payment from RAIT hereunder, such right shall be no greater than the right of any unsecured
general creditor of RAIT.

10.17 Rights of Participants. Nothing in this Plan shall entitle any Employee, Non-Employee
Trustee, Consultant or other person to any claim or right to receive a Grant under this Plan.

10.18 No Fractional Common Shares. No fractional Common Shares shall be issued or delivered
pursuant to the Plan or any Grant. The Committee shall determine whether cash, other awards or
other property shall be issued or paid in lieu of such fractional shares or whether such fractional
shares or any rights thereto shall be forfeited or otherwise eliminated.

10.19 Governing Law. The validity, construction, interpretation and effect of the Plan and
Grant Agreements issued under the Plan shall be governed and construed by and determined in
accordance with the laws of State of Maryland, without giving effect to the conflict of laws
provisions thereof.EXHIBIT 10.1

                              AMENDED AND RESTATED
                         1993 EQUITY PARTICIPATION PLAN
                            of TRIARC COMPANIES, INC.
                         (as amended through 5/19/2005)

1.       Purpose

     The purpose of the Amended and Restated 1993 Equity Participation Plan (the
"Plan") of Triarc Companies, Inc. (the "Company") is to promote the interests of
the  Company  and its  stockholders  by (i)  securing  for the  Company  and its
stockholders the benefits of the additional  incentive inherent in the ownership
of the capital stock of the Company (the "Capital Stock") by selected  officers,
directors  ("Directors")  and key  employees  of,  and key  consultants  to, the
Company and its  subsidiaries who are important to the success and growth of the
business of the Company and its  subsidiaries  and (ii) assisting the Company to
secure and retain the services of such  persons.  The Plan provides for granting
such persons (a) options ("Options") for the purchase of shares of Capital Stock
(the  "Shares"),  (b) tandem stock  appreciation  rights ("SARs") and (c) Shares
which are both  restricted  as to  transferability  and subject to a substantial
risk of forfeiture ("Restricted Shares").

2.       Administration

     The Plan shall be administered by a Committee (the "Committee")  consisting
of two or more  Directors  appointed  by the Board of  Directors of the Company.
Except as provided in Section 11 below,  no member of the Committee shall be, or
within one year before having become a member thereof shall have been granted or
awarded  pursuant  to the Plan or any other  plan of the  Company  or any of its
subsidiaries or affiliates, Options, SARs or Restricted Shares of the Company or
any of its  subsidiaries  or  affiliates.  The members of the  Committee  may be
changed  at any time and from  time to time in the  discretion  of the  Board of
Directors of the Company.  Subject to the limitations and conditions hereinafter
set forth,  the Committee  shall have authority to grant Options  hereunder,  to
determine  the number of Shares for which each  Option  shall be granted and the
Option price or prices,  to determine any conditions  pertaining to the exercise
or to the vesting of each Option,  to grant tandem SARs in  connection  with any
Option either at the time of the Option grant or  thereafter,  to make awards of
Restricted  Shares,  to determine the number of Restricted Shares to be granted,
and to establish in its discretion the restrictions to which any such Restricted
Shares  shall be subject.  The  Committee  shall have full power to construe and
interpret  the Plan  and any Plan  agreement  executed  pursuant  to the Plan to
establish  and  amend  rules for its  administration,  and to  establish  in its
discretion  terms and conditions  applicable to the exercise of Options and SARs
and the grant of Restricted  Shares.  The  determination of the Committee on all
matters  relating  to the Plan or any Plan  agreement  shall be  conclusive.  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 hereunder.

3.       Shares Subject to the Plan

     The Shares to be  transferred  or sold  pursuant to the grant of Restricted
Shares or the  exercise  of  Options  or SARs  granted  under the Plan  shall be
authorized  Shares,  and may be issued Shares reacquired by the Company and held
in its  treasury  or may be  authorized  but  unissued  Shares.  Subject  to the
provisions  of  Section 19 hereof  (relating  to  adjustments  in the number and
classes or series of Capital  Stock to be delivered  pursuant to the Plan),  the
maximum  aggregate number of Shares to be granted as Restricted  Shares or to be
delivered on the exercise of Options shall be 10,000,000 shares of the Company's
Class A Common  Stock,  par value $0.10 per share (the "Class A Common  Stock"),
and 20,000,000 shares of the Company's Class B Common Stock, par value $0.10 per
share ("Class B Common Stock") (collectively "Common Stock").

     If an Option  expires or  terminates  for any reason during the term of the
Plan and prior to the  exercise in full of such  Option or the  related  SAR, if
any,  or if  Restricted  Shares are  forfeited  as provided in the grant of such
Shares,  the number of Shares previously subject to but not delivered under such
Option,  related SAR or grant of  Restricted  Shares shall be available  for the
grant of Options, SARs or Restricted Shares thereafter;  provided, however, that
the grantee (or the grantee's  beneficiary)  has not enjoyed any of the benefits
of stock  ownership  (other than voting rights or dividends that are forfeited).
An Option that  terminates  upon the exercise of a tandem SAR shall be deemed to
have been  exercised  at the time of the  exercise of such  tandem SAR,  and the
Shares subject thereto shall not be available for further grants under the Plan.

4.       Eligibility

     Options,  SARs or  Restricted  Shares may be  granted  from time to time to
selected  officers and key employees of, key consultants to, and, subject to the
provisions of Section 2 hereof,  Directors (including non-employee Directors) of
the Company or any  consolidated  subsidiary,  as defined in this  Section 4. In
addition,  Options  and SARs  shall be  granted  automatically  to  non-employee
Directors  as provided in Section 11 hereof.  From time to time,  the  Committee
shall designate from such eligible officers, employees and consultants those who
will be granted Options, SARs or Restricted Shares, and in connection therewith,
the  number of Shares to be  covered  by each  grant of  Options  or  Restricted
Shares.  Persons  granted  Options  or  SARs  are  referred  to  hereinafter  as
"optionees," and persons granted  restricted  Shares are referred to hereinafter
as  "grantees."  Nothing  in the  Plan,  or in any  grant  of  Options,  SARs or
Restricted  Shares pursuant to the Plan, shall confer on any person any right to
continue in the employ of the Company or any of its subsidiaries, nor in any way
interfere with the right of the Company or any of its  subsidiaries to terminate
the person's employment at any time.

     The term "subsidiary" shall mean, at the time of reference, any corporation
organized  or  acquired  (other  than  the  Company)  in an  unbroken  chain  of
corporations  beginning  with the Company if, at the time of the granting of the
Option,  each of the  corporations  (including  the Company) other than the last
corporation in the unbroken chain owns stock possessing 50% or more of the total
combined  voting power of all classes of stock in one of the other  corporations
in such chain.  The term  "affiliate"  shall mean any person or entity which, at
the  time  of  reference,   directly,   or   indirectly   through  one  or  more
intermediaries, controls, is controlled by, or is under common control with, the
Company.  Notwithstanding any other provision of the Plan to the contrary, in no
event may the aggregate number of shares of Class A Common Stock with respect to
which  Options  and SARs are  granted  under the Plan to any  individual  exceed
5,000,000 during the term of the Plan.

                     PROVISIONS RELATING TO OPTIONS AND SARs
                     ---------------------------------------

5.       Character of Options

     Options granted hereunder shall not be incentive stock Options as such term
is defined in Section 422 of the Internal  Revenue Code of 1986, as amended from
time to time (the "Code").  Options granted  hereunder shall be  "non-qualified"
stock options subject to the provisions of Section 83 of the Code.

     If an Option granted under the Plan (other than an Option granted  pursuant
to Section 11 of the Plan) is exercised by an optionee,  then, at the discretion
of the  Committee,  the  optionee  may receive a  replacement  or reload  Option
hereunder to purchase a number of Shares equal to the number of Shares  utilized
to pay the exercise price and/or withholding taxes on the Option exercise,  with
an exercise  price equal to the "fair market  value" (as defined in Section 7 of
the Plan) of a Share on the date such  replacement  or reload Option is granted,
and,  unless  the  Committee  determines  otherwise,  with all  other  terms and
conditions  (including  the  date or  dates on which  the  Option  shall  become
exercisable and the term of the Option) identical to the terms and conditions of
the Option with respect to which the reload Option is granted. No replacement or
reload Option shall be granted in respect of the exercise of any Option  granted
pursuant to Section 11 of the Plan.

6.       Stock Option Agreement

     Each Option  granted under the Plan,  whether or not  accompanied  by SARs,
shall be evidenced by a written stock Option agreement,  which shall be executed
by the Company and by the person to whom the Option is  granted.  The  agreement
shall  contain such terms and  provisions,  not  inconsistent  with the Plan, as
shall be determined by the Committee.

7.       Option Exercise Price

     The  price per  Share to be paid by the  optionee  on the date an Option is
exercised  shall not be less than 50  percent  of the fair  market  value of one
Share on the date the Option is granted.

     For  purposes  of this  Plan,  the  "fair  market  value" as of any date in
respect of any Shares of Class A Common  Stock shall mean either (i) the closing
price per share of Class A Common  Stock on such date or (ii) the average of the
high and low sales  prices of a share of Class A Common  Stock on such date,  as
determined  by the  Committee in its sole  discretion.  The closing price on any
such date shall be (a) as reported on the  composite  transactions  tape for the
principal  exchange  on which the Class A Common  Stock is listed or admitted to
trading (the "Composite  Tape"),  or if the Class A Common Stock is not reported
on the Composite  Tape or if the Composite Tape is not in use, the last reported
sales price regular way on the principal national  securities  exchange on which
the Class A Common Stock shall be listed or admitted to trading  (which shall be
the national securities exchange on which the greatest number of shares of Class
A Common Stock has been traded during the 30 consecutive trading days commencing
45  trading  days  before  such  date),  or,  in  either  case,  if  there is no
transaction  on any such date,  the average of the closing bid and asked  prices
regular  way on such date,  or (b) if the Class A Common  Stock is not listed on
any national  securities  exchange but is quoted in the Nasdaq  National  Market
(the "Nasdaq") on a last sale basis,  the average between the high bid price and
low ask price  reported on such date, or, if there is no such sale on that date,
then on the last  preceding  date on which a sale was  reported.  If on any such
date the Class A Common Stock is not listed by or quoted on any such exchange or
the Nasdaq,  the fair market value of any Shares of Class A Common Stock on such
date shall be determined by the Committee in its sole discretion.

     For  purposes  of this  Plan,  the  "fair  market  value" as of any date in
respect of any Shares of Class B Common  Stock shall mean either (i) the closing
price per share of Class B Common  Stock on such date or (ii) the average of the
high and low sales  prices of a share of Class B Common  Stock on such date,  as
determined  by the  Committee in its sole  discretion.  The closing price on any
such date shall be (a) as reported on the  composite  transactions  tape for the
principal  exchange  on which the Class B Common  Stock is listed or admitted to
trading  (the "Class B Composite  Tape"),  or if the Class B Common Stock is not
reported on the Class B Composite  Tape or if the Class B Composite  Tape is not
in use, the last  reported  sales price  regular way on the  principal  national
securities  exchange  on which  the  Class B Common  Stock  shall be  listed  or
admitted to trading  (which shall be the national  securities  exchange on which
the greatest number of shares of Class B Common Stock has been traded during the
30 consecutive trading days commencing 45 trading days before such date), or, in
either case,  if there is no  transaction  on any such date,  the average of the
closing bid and asked  prices  regular  way on such date,  or (b) if the Class B
Common Stock is not listed on any national  securities exchange but is quoted in
the Nasdaq on a last sale basis,  the average between the high bid price and low
ask price reported on such date, or, if there is no such sale on that date, then
on the last preceding date on which a sale was reported. If on any such date the
Class B Common  Stock is not  listed by or quoted  on any such  exchange  or the
Nasdaq, the fair market value of any Shares of Class B Common Stock on such date
shall be determined by the Committee in its sole discretion.

8.       Option Term

     The period after which Options  granted under the Plan may not be exercised
shall be determined by the Committee  with respect to each Option  granted,  but
may not  exceed  fifteen  years  from the date on which the  Option is  granted,
subject to the third paragraph of Section 9 hereof.

9.       Exercise of Options

     The time or times at which or during which  Options or SARs  granted  under
the Plan may be exercised,  and any conditions pertaining to such exercise or to
the vesting in the optionee of the right to exercise  Options or SARs,  shall be
determined by the Committee in its sole  discretion.  Subsequent to the grant of
an Option which is not  immediately  exercisable in full, the Committee,  at any
time before  complete  termination of such Option,  may accelerate or extend the
time or times at which such Option and the related SAR, if any, may be exercised
in whole or in part.

     Except as provided in this  paragraph,  no Option or SAR granted  under the
Plan shall be  assignable  or otherwise  transferable  by the  optionee,  either
voluntarily  or  involuntarily,  except  by will  or the  laws  of  descent  and
distribution  and an Option or SAR shall be  exercisable  during the  optionee's
lifetime  only by the  optionee.  The  Committee  may in the  applicable  Option
agreement  or at any time  thereafter  in an  amendment  to an Option  agreement
provide  that  Options  granted  hereunder  may be  transferred  with or without
consideration by the Optionee,  subject to such rules as the Committee may adopt
to preserve the purposes of the Plan, (i) pursuant to a domestic relations order
or (ii) to one or more of:

               (x)  the optionee's spouse, children or grandchildren (including
                    adopted children, stepchildren and grandchildren)
                    (collectively,  the "Immediate Family");

               (y)  a trust solely for the benefit of the optionee and/or his or
                    her Immediate Family;

               (z)  a partnership or limited liability  company, the partners or
                    members of which are limited to the optionee and his or her
                    Immediate Family; or

               (aa) any other person or entity authorized by the Committee.

     (each transferee  is  hereinafter  referred  to  as  a  "Permitted
     Transferee"); provided,  however,  that the optionee gives the Committee
     advance written notice describing the terms and conditions of the proposed
     transfer and the Committee  notifies  the  optionee  in writing  that such
     a transfer  would comply with the requirements of the Plan, any applicable
     Option agreement and any amendments thereto.

     The terms and conditions of any Option  transferred in accordance  with the
immediately  preceding sentence shall apply to the Permitted  Transferee and any
reference in the Plan or in an Option  agreement or any amendment  thereto to an
optionee or grantee shall be deemed to refer to the Permitted Transferee, except
that (a)  Permitted  Transferees  shall not be entitled to transfer any Options,
other  than by will or the  laws of  descent  and  distribution;  (b)  Permitted
Transferees  shall not be entitled to exercise any  transferred  Options  unless
there  shall be in  effect  a  registration  statement  on an  appropriate  form
covering  the shares to be acquired  pursuant to the  exercise of such Option if
the  Committee  determines  that such a  registration  statement is necessary or
appropriate;  (c) the  Committee or the Company shall not be required to provide
any notice to a  Permitted  Transferee,  whether or not such  notice is or would
otherwise  have  been  required  to be given to the  optionee  under the Plan or
otherwise;  and (d) the events of  termination of employment by, or services to,
the Company  under  clause (b) of the third  paragraph  of Section 9 and Section
11.1,  as the case may be,  hereof shall  continue to be applied with respect to
the original  optionee,  following which the Options shall be exercisable by the
Permitted  Transferee  only to the extent,  and for the  periods,  specified  in
Section 9 and Section 11.1, as the case may be.

     The  unexercised  portion of any Option or SAR granted under the Plan shall
automatically  and without notice terminate and become null and void at the time
of the earliest to occur of the following:

     (a)  the expiration of the period of time  determined by the Committee upon
          the grant of such Option;  provided  that such period shall not exceed
          fifteen years from the date on which such Option was granted;

     (b)  the  termination of the optionee's  employment by, or services to, the
          Company and its  subsidiaries  if such  termination  constitutes or is
          attributable  to  a  breach  by  the  optionee  of  an  employment  or
          consulting  agreement with the Company or any of its subsidiaries,  or
          if the optionee is discharged or if his or her services are terminated
          for cause; or

     (c)  the  expiration of such period of time or the occurrence of such event
          as the  Committee  in its  discretion  may provide  upon the  granting
          thereof.

     The Committee and the Board of Directors  shall have the right to determine
what  constitutes  cause for discharge or termination  of services,  whether the
optionee has been discharged or his or her services terminated for cause and the
date of such discharge or termination of services, and such determination of the
Committee or the Board of Directors shall be final and conclusive.

     In the  event  of the  death  of an  optionee,  Options  or  SARs,  if any,
exercisable  by the  optionee  at the time of his or her death may be  exercised
within one year  thereafter  by the  person or  persons  to whom the  optionee's
rights  under  the  Options  or  SARs,  if  any,  shall  pass  by will or by the
applicable law of descent and distribution.  However, in no event may any Option
or SAR be exercised by anyone after the earlier of (a) the final date upon which
the  optionee  could  have  exercised  it  had  the  optionee  continued  in the
employment  of the  Company or its  subsidiaries  to such date,  or (b) one year
after the optionee's death.

     An Option may be  exercised  only by a notice in writing  complying  in all
respects with the applicable  stock Option  agreement.  Such notice may instruct
the  Company  to  deliver  Shares  due upon the  exercise  of the  Option to any
registered  broker or dealer  approved by the Company (an "approved  broker") in
lieu of delivery to the optionee.  Such instructions shall designate the account
into which the Shares are to be deposited.  The optionee may tender such notice,
properly  executed by the optionee,  together with the  aforementioned  delivery
instructions,  to an approved  broker.  The  purchase  price of the Shares as to
which an Option is exercised shall be paid in cash or by check,  except that the
Committee may, in its discretion,  allow such payment to be made by surrender of
unrestricted Shares (at their fair market value on the date of exercise),  or by
a combination of cash, check and unrestricted Shares.

     Payment in accordance with Section 9 may be deemed to be satisfied,  if and
to the extent provided in the applicable  Option  agreement,  by delivery to the
Company of an assignment of a sufficient amount of the proceeds from the sale of
Shares  acquired  upon  exercise  to pay for  all of the  Shares  acquired  upon
exercise and an  authorization to the broker or selling agent to pay that amount
to the Company,  which sale shall be made at the grantee's direction at the time
of exercise,  provided  that the Committee may require the grantee to furnish an
opinion of counsel  acceptable to the Committee to the effect that such delivery
would not result in the grantee  incurring any liability under Section 16 of the
Securities  Exchange Act of 1934, as amended,  and does not require the consent,
clearance or approval of any  governmental  or regulatory  body  (including  any
securities exchange or similar self-regulatory  organization).  Wherever in this
Plan or any Option  agreement an optionee is permitted to pay the exercise price
of an Option  or taxes  relating  to the  exercise  of an  Option by  delivering
Shares,  the optionee may, subject to procedures  satisfactory to the Committee,
satisfy such delivery requirement by presenting proof of beneficial ownership of
such  Shares,  in which case the  Company  shall  treat the Option as  exercised
without further payment and shall withhold such number of Shares from the Shares
acquired by the  exercise of the Option (or if the Option is paid in cash,  cash
in an  amount  equal to the fair  market  value  of such  shares  on the date of
exercise).

     The obligation of the Company to deliver Shares upon such exercise shall be
subject to all applicable laws, rules and regulations,  and to such approvals by
governmental agencies as may be deemed appropriate by the Committee,  including,
among  others,  such steps as counsel for the Company  shall deem  necessary  or
appropriate  to comply with  requirements  of  relevant  securities  laws.  Such
obligation  shall also be subject to the condition that the Shares  reserved for
issuance  upon the  exercise of Options  granted  under the Plan shall have been
duly listed on any  national  securities  exchange  which then  constitutes  the
principal trading market for the Shares.

10.      Stock Appreciation Rights

     The  Committee  may in its  discretion  grant SARs in  connection  with any
Option, either at the time the Option is granted or at any time thereafter while
the Option remains outstanding, to any person who at that time is eligible to be
granted  an  Option.  The  number of SARs  granted  to a person  which  shall be
exercisable  during  any given  period of time  shall not  exceed  the number of
Shares which he or she may purchase  upon the exercise of the related  Option or
Options during such period of time.  Upon the exercise of an Option  pursuant to
the Plan,  the SARs  relating  to the  Shares  covered  by such  exercise  shall
terminate. Upon the exercise of SARs pursuant to the Plan, the related Option to
the extent of an equal number of Shares shall terminate.

     Upon an optionee's exercise of some or all of his or her SARs, the optionee
shall  receive in  settlement  of such SARs an amount  equal to the value of the
stock appreciation for the number of SARs exercised,  payable in cash, Shares or
a combination  thereof,  as determined in the sole  discretion of the Committee.
The stock  appreciation for an SAR is the difference between (I) the fair market
value of the  underlying  Share on the date of the exercise of such SAR and (ii)
the Option price specified for the related Option. At the time of such exercise,
the  optionee  shall  have the right to elect the  portion  of the  amount to be
received  that shall  consist  of cash and the  portion  that  shall  consist of
Shares,  which, for purposes of calculating the number of Shares to be received,
shall be valued at their fair market  value on the date of the  exercise of such
SARs. The Committee in its sole discretion shall have the right to disapprove an
optionee's  election to receive cash in full or partial  settlement  of the SARs
exercised,  and to require the Shares to be delivered in lieu of cash. If Shares
are to be received  upon  exercise of an SAR, cash shall be delivered in lieu of
any fractional share.

     An SAR shall be  exercisable  only  during  the  period  determined  by the
Committee,  which  period shall be within the period when the Option to which it
is related is exercisable.

11.      Automatic Grants to Non-Employee Directors;
         Elective Purchase of Shares

      11.1     Automatic Grants to Non-Employee Directors

     Notwithstanding  any other  provision of the Plan, each Director who is not
then an employee of the Company or any subsidiary  shall be granted on the later
of (I) the date of his initial election or appointment to the Board of Directors
and  (ii)  the  date of  adoption  of the  Plan by the  Board  of  Directors,  a
nonqualified Option to purchase 15,000 Shares and, in connection therewith, SARs
for the same number of Shares.  On the date of each subsequent annual meeting of
stockholders  of the  Company  at which a  Director  is  reelected,  he shall be
granted a  nonqualified  Option to purchase  3,000  Shares  and,  in  connection
therewith,  SARs for the same number of Shares.  Each such  Option  shall have a
term of ten years,  subject to the  provisions of this Section 11.1 below.  Each
such Option shall become  exercisable to the extent of one-half  thereof on each
of the two immediately succeeding  anniversaries of the date of grant. The price
per Share to be paid by the holder of such an Option shall equal the fair market
value of one Share on the date the Option is granted.  The purchase price of the
Shares as to which such an Option is exercised  shall be paid in cash, by check,
by the  delivery of  unrestricted  Shares held by the  Director for at least six
months,  through the cashless  exercise  program  described in Section 9, or any
combination thereof, at the Director's election.  SARs issued under this Section
11.1 shall be  exercisable  for Shares.  Any  Director  holding  Options or SARs
granted  under  this  Section  11.1 who is a member of the  Committee  shall not
participate  in any action of the Committee with respect to any claim or dispute
involving such Director's Options.

     Subject to the provisions of the applicable Plan agreement, the unexercised
portion of any such Option shall  automatically and without notice terminate and
become null and void at the time of the earliest to occur of the following:

     (a)  the  expiration  of ten years from the date on which  such  Option was
          granted;

     (b)  if the optionee's  service is terminated for "cause",  the termination
          of the  optionee's  service to the Company and its  subsidiaries.  For
          purposes of this Section 11,  "cause,"  shall mean that the optionee's
          service is terminated (i) on account of fraud,  embezzlement  or other
          unlawful or tortious conduct,  whether or not involving or against the
          Company  or any  affiliate,  (ii) for  violation  of a  policy  of the
          Company  or any  affiliate,  (iii) for  serious  and  willful  acts or
          misconduct detrimental to the business or reputation of the Company or
          any  affiliate  or (iv) for "cause" or any like term as defined in any
          written contract between the Company and the optionee;

     (c)  if the  optionee's  service  terminates  for  reasons  other  than  as
          provided  in  subsection  (b) or (d) of this  Section  11.1,  (i) with
          respect  to the  portion  of  such  optionee's  Option  that  was  not
          exercisable immediately prior to such termination,  the termination of
          the optionee's  service to the Company and its  subsidiaries  and (ii)
          with respect to the portion that was exercisable  immediately prior to
          such  termination,  90 days after the  termination  of the  optionee's
          service to the Company and its subsidiaries, subject to subsection (a)
          of this Section 11.1; and

     (d)  if the optionee's service terminates by reason of his death, or if the
          optionee's  service  terminates in the manner  described in subsection
          (c) of this  Section  11.1 and he dies within such period for exercise
          provided  for  therein,  (i)  with  respect  to the  portion  of  such
          optionee's  Option that was not exercisable  immediately prior to such
          termination,  the death of the  optionee  and (ii) with respect to the
          portion  that was  exercisable  immediately  prior to such  optionee's
          death,  one year after the  optionee's  death (and such portion of the
          Option shall be exercisable for the period described in clause (ii) by
          the person to whom such Option passes under such  optionee's will (or,
          if  applicable,  pursuant  to the laws of descent  and  distribution),
          subject to subsection (a) of this Section 11.1.

     To the  extent  necessary  to  comply  with  Rule  16b-3 of the  Securities
Exchange Act of 1934 (the "Act") as in effect from time to time or any successor
rule thereafter ("Rule 16b-3"), the provisions of this Section 11.1 shall not be
amended  more than once every six months  other than to comport  with changes in
the Code, the Employee  Retirement  Income Security Act of 1974, as amended,  or
the rules thereunder.

11.2     Elective Purchase of Shares

     In  addition  to any other  benefit to which any  Director  may be entitled
under the terms of the Plan,  a Director  shall be permitted to elect to receive
all or any portion of the annual  retainer  fees and/or  board of  directors  or
committee  meeting  attendance  fees,  if any  (collectively,  the "Fees")  that
otherwise would be payable in cash to such Director,  in Shares rather than cash
in accordance with the provisions of this Section 11.2.

     Any  Director may elect to receive all or any portion of his or her Fees in
Shares rather than cash by delivering a written election (an "Election  Notice,"
the election  set forth  therein  being  referred to as the  "Election")  to the
Secretary  of the  Company.  An Election  shall  continue in effect  until it is
revoked by delivery  to the  Secretary  of the  Company of a written  revocation
notice (a  "Revocation") or modified by delivery to the Secretary of the Company
of a new Election  Notice.  Any Election or  Revocation  under this Section 11.2
shall be effective with respect to Fees that  otherwise  would be paid after the
later of (x) with respect to an Initial Election (as defined below), the date of
receipt by the Secretary of the Company of the Election Notice or, if later, the
date specified in such Election  Notice,  and (y) with respect to any Revocation
or any  Election  other than an Initial  Election,  six months after the date of
receipt by the Secretary of the Company of such  Revocation or Election  Notice.
There shall be no limit on the number of  Elections or  Revocations  that may be
made a Director. A Director who does not elect that all or a portion of his Fees
be paid in Shares shall  receive his Fees in cash on the date that such Fees are
otherwise due. Any Shares payable under this Section 11.2 shall be issued to the
Director on the same date that the Fees would have been paid in cash. The number
of Shares to be issued to a Director  who makes an Election  under this  Section
11.2 shall be determined by dividing:

     (i)  the amount of the  Director's  Fees for which he has made an  Election
          under this Section 11.2, by

     (ii) the  average of the fair  market  value of the  Shares (as  defined in
          Section 7 of the Plan) for the twenty (20)  consecutive  trading  days
          immediately preceding the date as of which the Fees otherwise would be
          payable. Only full Shares shall be issued pursuant to this Section. If
          the formula set forth above would result in a Director  receiving  any
          fractional Share, then, in lieu of such fractional Share, the Director
          shall be paid cash.

     For purposes of this Section 11.2 an "Initial  Election"  means an Election
received by the  Secretary  of the  Company  from a Director on a date not later
than the  later  of (a) ten days  following  the  date on  which  the  Company's
shareholders  shall have approved the addition to the Plan of this Section 11.2,
and (b) ten days after a Director is first elected a director of the Company.

                    PROVISIONS RELATING TO RESTRICTED SHARES
                    ----------------------------------------

12.      Granting of Restricted Shares

     The Committee may grant Restricted  Shares to eligible persons at any time.
In  granting  Restricted  Shares,  the  Committee  shall  determine  in its sole
discretion   the   period  or  periods   during   which  the   restrictions   on
transferability  applicable  to such  Shares  will be in force (the  "Restricted
Period"). The Restricted Period may be the same for all such Shares granted at a
particular  time or to any one  grantee  or may be  different  with  respect  to
different  grantees or with respect to various of the Shares granted to the same
grantee, all as determined by the Committee in its sole discretion.

     Each grant of  Restricted  Shares  under the Plan shall be  evidenced by an
agreement  which  shall be executed by the Company and by the person to whom the
Restricted  Shares are  granted.  The  agreement  shall  contain  such terms and
provisions,  not  inconsistent  with the  Plan,  as shall be  determined  by the
Committee.

13.      Restrictions on Transferability

     During the Restricted Period applicable to each grant of Restricted Shares,
such Shares may not be sold, assigned,  transferred or otherwise disposed of, or
mortgaged,  pledged or otherwise encumbered.  Furthermore,  a grantee's eventual
right, if any, to such Shares may not be assigned or transferred  except by will
or  by  the  laws  of  descent  and   distribution.   The  restrictions  on  the
transferability  of Restricted Shares imposed by this section are referred to in
this Plan as the "Transferability Restrictions."

14.      Determination of Vesting Restrictions

     With  respect to each  grant of  Restricted  Shares,  the  Committee  shall
determine in its sole discretion the restrictions on vesting which will apply to
the Shares for the Restricted Period, which restrictions as initially determined
and as they may be modified pursuant to the Plan, are referred to hereinafter as
the "Vesting Restrictions." By way of illustration but not by way of limitation,
any such determination of Vesting  Restrictions by the Committee may provide (a)
that the grantee  will not be  entitled  to any such Shares  unless he or she is
still employed by the Company or its  subsidiaries  at the end of the Restricted
Period; (b) that the grantee will become vested in such Shares according to such
schedule as the Committee may determine; (c) that the grantee will become vested
in such  Shares at the end of or during  the  Restricted  Period  based upon the
achievement (in such manner as the Committee may determine) of such  performance
standards  as the  Committee  may  determine;  (d) that the grantee  will become
vested in such Shares in any  combination  of the  foregoing or under such other
terms and conditions as the Committee in its sole discretion may determine;  and
(e) how any such Vesting  Restrictions will be applied,  modified or accelerated
in the  case  of  the  grantee's  death,  total  and  permanent  disability  (as
determined by the Committee) or retirement.

     The performance standards, if any, set by the Committee for any grantee may
be  individual   performance   standards  applicable  to  the  grantee,  may  be
performance  standards  for  the  Company  or the  division,  business  unit  or
subsidiary by which the grantee is employed,  may be  performance  standards set
for the grantee under any other plan  providing for incentive  compensation  for
the grantee, or may be any combination of such standards.  Performance standards
set at the time of the grant of any Restricted Shares may be revised at any time
prior to the beginning of the last year of the  Restricted  Period,  but only to
take into account  significant  changes in  circumstances  as  determined by the
Committee in its sole discretion.

     If the  Committee  deems the  Vesting  Restrictions  inappropriate  for any
grantee,  it may  approve the award and  delivery to such  grantee of all or any
portion of the Restricted Shares then held in escrow pursuant to Section 15. Any
Restricted  Shares so awarded and delivered to a grantee shall be delivered free
and clear of the Transferability Restrictions.

15.      Manner of Holding and Delivering Restricted Shares

     Each  certificate  issued for Restricted  Shares granted  hereunder will be
registered in the name of the grantee and will be deposited  with the Company or
its designee in an escrow account accompanied by a stock power executed in blank
by the grantee  covering  such  Shares.  The  certificates  for such Shares will
remain  in escrow  until the  earlier  of the end of the  applicable  Restricted
Period,  or, if the  Committee  has  provided  for  earlier  termination  of the
Transferability  Restrictions  following a grantee's death,  total and permanent
disability,   retirement  or  earlier  vesting  of  such  Shares,  such  earlier
termination  of  the   Transferability   Restrictions.   At  whichever  time  is
applicable, the certificates representing the number of such Shares to which the
grantee is then  entitled  will be  released  from escrow and  delivered  to the
grantee free and clear of the Transferability Restrictions, provided that in the
case of a grantee who is not  entitled to receive the full number of such Shares
evidenced by the  certificates  then being  released from escrow  because of the
application of the Vesting  Restrictions,  such certificates will be returned to
the Company and canceled, and a new certificate representing the Shares, if any,
to which the grantee is entitled pursuant to the Vesting  Restrictions,  will be
issued  and  delivered  to the  grantee,  free and clear of the  Transferability
Restrictions  (and, if applicable,  a new  certificate  will also be issued back
into escrow,  accompanied by a new stock power executed in blank by the grantee,
covering  the  Shares  to  which  the  grantee  is not yet  entitled  due to the
application of the Vesting Restrictions).

16.      Transfer in the Event of Death, Disability or Retirement

     Notwithstanding  a  grantee's  death,  total and  permanent  disability  or
retirement,  the  certificates  for his or her Restricted  Shares will remain in
escrow  and the  Transferability  Restrictions  will  continue  to apply to such
Shares  unless the  Committee  determines  otherwise.  Upon the  release of such
Shares  from escrow and the  termination  of the  Transferability  Restrictions,
either  upon  any  such  determination  by the  Committee  or at the  end of the
applicable  Restricted Period, as the case may be, the portion of such grantee's
Restricted Shares to which he or she is entitled,  determined pursuant to his or
her  applicable  Vesting  Restrictions,  will be awarded  and  delivered  to the
grantee or to the person or persons to whom the grantee's rights, if any, to the
Shares shall pass by will or by the applicable law of descent and  distribution,
as the case may be. However,  the Committee may in its sole discretion award and
deliver all or any greater portion of the Restricted  Shares to any such grantee
or to such person or persons.

17.      Limitations on Obligation to Deliver Shares

     The Company  shall not be obligated to deliver any  Restricted  Shares free
and clear of the  Transferability  Restrictions  until the Company has satisfied
itself that such delivery  complies with all laws and  regulations  by which the
Company is bound.

                               GENERAL PROVISIONS
                               ------------------

18.      Shareholder Rights

     Except for the Transferability Restrictions, a grantee of Restricted Shares
shall have the rights of a holder of the Shares,  including the right to receive
dividends  paid on such  Shares and the right to vote such Shares at meetings of
shareholders of the Company.  However,  no optionee shall have any of the rights
of a  shareholder  with  respect  to any  Shares  unless and until he or she has
exercised  his or her Option  with  respect to such Shares and has paid the full
purchase price therefor.

19.      Changes in Shares

     In the  event of (i) any  split,  reverse  split,  combination  of  shares,
reclassification,   recapitalization   or  similar  event  (including,   without
limitation,  any  extraordinary  dividends payable in cash and any spin-off of a
subsidiary)  which  involves,  affects  or is made  with  regard to any class or
series of Capital  Stock  which may be  delivered  pursuant  to the Plan  ("Plan
Shares"),  (ii) any dividend or distribution on Plan Shares payable in stock, or
(iii) a merger,  consolidation or other reorganization as a result of which Plan
Shares shall be  increased,  reduced or otherwise  changed or affected,  then in
each such event the Committee  shall, to the extent it deems it to be consistent
with such event and  necessary  or  equitable  to carry out the  purposes of the
Plan, appropriately adjust (a) the maximum number of shares of Capital Stock and
the classes or series of such Capital  Stock which may be delivered  pursuant to
the Plan, (b) the number of shares of Capital Stock and the classes or series of
Capital  Stock  subject to  outstanding  Options or SARs or grants of Restricted
Shares,  (c) the  Option  price  per  share  of all  Capital  Stock  subject  to
outstanding  Options, (d) any performance based Vesting Restrictions in any Plan
agreement  that are based on stock  price and (e) any  other  provisions  of the
Plan;  provided,  however,  that (I) any  adjustments  made in  accordance  with
clauses (b) and (c) shall make any such outstanding  Option or SAR, as nearly as
practicable,  equivalent to such Option or SAR, as the case may be,  immediately
prior to such change and (II) no such  adjustment  shall give any  optionee  any
additional benefits under any outstanding Option.

20.      Reorganization

     In the  event  that the  Company  is merged or  consolidated  with  another
corporation,  or in the event that all or substantially all of the assets of the
Company are acquired by another corporation, or in the event of a reorganization
or liquidation of the Company (each such event being hereinafter  referred to as
a  "Reorganization  Event")  or in the event that the Board of  Directors  shall
propose that the Company enter into a Reorganization  Event,  then the Committee
may in its discretion take any or all of the following  actions:  (I) by written
notice to each  optionee,  provide  that his or her Options  will be  terminated
unless  exercised  within  thirty days (or such longer  period as the  Committee
shall determine in its sole  discretion)  after the date of such notice (without
acceleration of the  exercisability of such Options);  and (ii) advance the date
or dates upon which any or all  outstanding  Options shall be exercisable or the
Vesting  Restrictions or Restricted  Period  applicable to any Restricted Shares
shall lapse.

     Whenever  deemed  appropriate by the Committee,  any action  referred to in
subparagraph  (a) above may be made  conditional  upon the  consummation  of the
applicable  Reorganization  Event. The provisions of this Section 20 shall apply
notwithstanding any other provision of the Plan.

21.      Change of Control

     Notwithstanding  anything  in  the  Plan  to the  contrary,  upon  (I)  the
acquisition  by any person of 50% or more of the  combined  voting  power of the
Company's  outstanding  securities entitled to vote generally in the election of
directors,  or (ii) a majority of the directors of the Company being individuals
who are not  nominated by the Board of Directors (a "Change of  Control"),  then
any  outstanding  Options granted under the Plan to officers or directors of the
Company shall be fully and immediately  exercisable and any Vesting Restrictions
applicable  to any  Restricted  Shares held by an officer of the  Company  shall
lapse  and such  Restricted  Shares  shall be  delivered  free and  clear of all
Transferability  Restrictions.  The  acquisition  of any portion of the combined
voting  power of the Company by DWG  Acquisition  Group,  L.P.,  Nelson Peltz or
Peter May or by any person  affiliated  with such persons (or the acquisition or
disposition  by any person or persons who  receive  any award  under  Section 11
hereof) shall in no event constitute a Change of Control.

22.      Withholding Taxes

     Whenever under the Plan shares of Common Stock are to be delivered pursuant
to an award,  the  Committee  may  require as a condition  of delivery  that the
optionee or grantee remit an amount sufficient to satisfy all federal, state and
other governmental holding tax requirements related thereto. Whenever cash is to
be paid  under  the  Plan  (whether  upon the  exercise  of an SAR,  payment  of
dividends or otherwise),  the Company may, as a condition of its payment, deduct
therefrom,  or from any salary or other  payments due to the grantee,  an amount
sufficient to satisfy all federal, state and other governmental  withholding tax
requirements  related  thereto or to the  delivery of any shares of Common Stock
under the Plan.  Notwithstanding  any provision of the Plan to the contrary,  in
connection with the transfer of an Option to a Permitted  Transferee pursuant to
Section 9 of the Plan,  the  optionee  shall remain  liable for any  withholding
taxes  required to be withheld upon the exercise of such Option by the Permitted
Transferee.

     Without  limiting  the  generality  of the  foregoing,  (I) an  optionee or
grantee  may  elect  to  satisfy  all  or  part  of  the  foregoing  withholding
requirements  by delivery of  unrestricted  shares of Common  Stock owned by the
optionee  or  grantee  for at least  six  months  (or such  other  period as the
Committee may determine)  having a fair market value  (determined as of the date
of such delivery by the optionee or grantee)  equal to all or part of the amount
to be so withheld,  provided that the  Committee may require,  as a condition of
accepting  any such  delivery,  the optionee or grantee to furnish an opinion of
counsel  acceptable to the Committee to the effect that such delivery  would not
result in the optionee or grantee incurring any liability under Section 16(b) of
the Act;  and (ii) the  Committee  may  permit any such  delivery  to be made by
withholding  shares of Common Stock from the Shares otherwise  issuable pursuant
to the award giving rise to the tax  withholding  obligation (in which event the
date of  delivery  shall  be  deemed  the  date  such  award  was  exercised  or
delivered).

23.      Amendment and Discontinuance

     The Board of Directors may alter,  suspend,  or discontinue  the Plan, but,
except as provided in Section 19, may not,  without the  approval of the holders
of a majority of the Class A Common  Stock,  make any  alteration  or  amendment
hereto which operates (a) to materially  increase the number of Shares which are
available for the grant of Options,  SARs and Restricted  Shares under the Plan,
(b) to extend the term during which Options may be granted under the Plan or the
maximum Option period  provided in Section 8, (c) to decrease the minimum Option
price provided in Section 7, (d) to materially  increase the rights of optionees
with respect to SARs in a manner which would not comply with Rule 16b-3,  (e) to
amend  Section 11 in a manner which would not comply with Rule 16b-3,  or (f) to
materially  modify the  requirements as to eligibility for  participation in the
Plan, or (g) as otherwise required to comply with Rule
16b-3.

24.      Governing Laws

     The Plan shall be applied and construed in  accordance  with an governed by
the law of the State of Delaware, to the extent such law is not superseded by or
inconsistent with Federal law.

25.      Effective Date and Duration of Plan

     The Plan shall become effective on April 24, 1993, the date of its adoption
by the Board of Directors;  subject, however, to the approval of the Plan by the
holders of a majority of the Class A Common  Stock  outstanding  and entitled to
vote  generally in the election of directors on or prior to April 24, 1994.  The
term during which Options,  SARs and Restricted  Shares may be granted under the
Plan shall expire on April 24, 1998.

26.      Amendments to Agreements

     Notwithstanding any other provision of the Plan, the Board of Directors, or
any authorized  committee thereof,  may amend the terms of any agreement entered
into in connection  with any award granted  pursuant to the Plan,  provided that
the terms of such amendment are not inconsistent with the terms of the Plan.

27.      Deferral

     The Committee, in its sole discretion, may establish procedures whereby one
or more  optionees  selected by the  Committee may elect to defer the receipt of
Shares upon the exercise of Options (which are not incentive  stock options) for
a specified period and/or until the occurrence of a specified event.

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