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                                                                   EXHIBIT 10.18

                          NEWFIELD EXPLORATION COMPANY

                2000 NON-EMPLOYEE DIRECTOR RESTRICTED STOCK PLAN

                             I. PURPOSE OF THE PLAN

         The NEWFIELD EXPLORATION COMPANY 2000 NON-EMPLOYEE DIRECTOR RESTRICTED
STOCK PLAN (the "PLAN") is intended to promote the interests of Newfield
Exploration Company, a Delaware corporation (the "COMPANY"), by enhancing the
ability of the Company to attract and retain the services of individuals as
directors of the Company who are essential for the growth and profitability of
the Company.

                                 II. DEFINITIONS

         Unless the context otherwise indicates, the following definitions shall
apply to the Plan:

         (a)      "BOARD" shall mean the Board of Directors of the Company.

         (b)      "COMMITTEE" shall mean the Committee of the Board appointed
                  pursuant to Paragraph III of the Plan.

         (c)      "EXCHANGE ACT" shall mean the Securities Exchange Act of 1934,
                  as amended.

         (d)      "FAIR MARKET VALUE" shall mean as of any specified date, the
                  closing price of the Stock on the New York Stock Exchange (or,
                  if the Stock is not then listed on such exchange, such other
                  national securities exchange on which the Stock is then
                  listed) on that date, or if no prices are reported on that
                  date, on the last preceding date on which such prices of the
                  Stock are reported.

         (e)      "FORFEITURE RESTRICTIONS" shall mean the conditions applicable
                  to shares of Stock granted under the Plan, including the
                  prohibitions against sale or other disposition of shares of
                  Stock granted under the Plan and the corresponding obligation
                  of the Non-Employee Director to forfeit his/her ownership of
                  or right to such shares and to surrender such shares to the
                  Company in the event the Non-Employee Director fails to
                  satisfy such conditions.

         (f)      "NON-EMPLOYEE DIRECTOR" shall mean a director of the Company
                  who is not otherwise an employee of the Company or any of its
                  Subsidiaries.

         (g)      "RESTRICTED SHARES" shall mean shares of Stock granted under
                  the Plan which are subject to Forfeiture Restrictions.

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         (h)      "RULE 16B-3" shall mean Rule 16b-3 promulgated by the
                  Securities and Exchange Commission under the Exchange Act or
                  any successor rule or regulation thereto as in effect from
                  time to time.

         (i)      "STOCK" shall mean the Common Stock, par value $.01 per share,
                  of the Company and may consist of authorized but unissued
                  shares of the Company or previously issued shares reacquired
                  and held by the Company or any of its Subsidiaries.

         (j)      "SUBSIDIARY" shall mean any subsidiary corporation as defined
                  in section 424(f) of the Internal Revenue Code of 1986, as
                  amended.

         (k)      "TOTAL AND PERMANENT DISABILITY" shall mean the inability to
                  perform duties and services as a director of the Company by
                  reason of a medically determined physical or mental impairment
                  supported by medical evidence which in the opinion of the
                  Committee can be expected to result in death or which can be
                  expected to last for a continuous period of not less than
                  twelve (12) months.

                         III. ADMINISTRATION OF THE PLAN

         The Plan shall be administered by a Committee which shall be appointed
by and serve at the pleasure of the Board and consist of at least two members.
Members of the Committee shall be "disinterested persons" within the meaning of
Rule 16b-3. The Committee is authorized to interpret the Plan and may from time
to time adopt such rules, regulations, forms and agreements, consistent with the
provisions of the Plan, as it may deem advisable to carry out the Plan.

                    IV. ELIGIBILITY OF NON-EMPLOYEE DIRECTORS

         Shares of Stock shall be issued under Paragraph VI of the Plan only to
individuals who are Non-Employee Directors. Shares of Stock may not be granted
to a Non-Employee Director if such director has been an employee of the Company
or any of its Subsidiaries for any part of the calendar year preceding the
calendar year in which such grant is to be made.

                          V. SHARES SUBJECT TO THE PLAN

         The aggregate number of shares of Stock that may be issued under the
Plan may not exceed 50,000 shares. Any of such shares which remain unissued at
the termination of the Plan shall cease to be subject to the Plan. If shares
issued under Paragraph VI of the Plan are forfeited to the Company, such shares
shall again become available for issuance under the Plan to the extent
permissible under Rule 16b-3. The aggregate number of shares that may be issued
under the Plan shall be adjusted to reflect a change in capitalization of the
Company, such as stock dividends or stock splits. Until termination of the Plan,
the Company shall make available at all times a sufficient number of shares to
meet the requirements of the Plan.

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         VI. ISSUANCE OF RESTRICTED SHARES AND FORFEITURE RESTRICTIONS

         (a)      ANNUAL ISSUANCE OF RESTRICTED SHARES. Subject to the
                  limitation of the number of shares of Stock set forth in
                  Paragraph V, (i) as of the date of the annual meeting of the
                  stockholders of the Company in each year that the Plan is in
                  effect as provided in Paragraph VIII hereof, each Non-Employee
                  Director who is in office immediately after such meeting shall
                  receive, without the exercise of the discretion of any person
                  or persons, a number of Restricted Shares determined by
                  dividing (y) $30,000 by (z) the Fair Market Value on the date
                  of the annual meeting of stockholders, rounded down to the
                  nearest whole number, subject to the terms set forth below,
                  and (ii) each Non-Employee Director who is appointed to the
                  Board by the Board for the first time after the 2000 annual
                  meeting of stockholders (and not in connection with an annual
                  meeting of stockholders) shall receive, without the exercise
                  of the discretion of any persons or person, a number of
                  Restricted Shares determined by dividing (y) $30,000 by (z)
                  the Fair Market Value on the effective date of his/her
                  appointment as a director, rounded down to the nearest whole
                  number, effective as of his/her date of appointment as a
                  director, subject to the terms set forth below. Any nominee
                  Non-Employee Director may make an irrevocable written
                  election in advance of election or appointment to the Board
                  not to receive a grant of Restricted Shares pursuant to this
                  Paragraph VI(a).

         (b)      FORFEITURE RESTRICTIONS AND OTHER TERMS AND CONDITIONS. The
                  following provisions are applicable to the Restricted Shares
                  issued pursuant to Paragraph VI(a):

                  (i)      The shares of Stock issued to a Non-Employee Director
                           pursuant to this Plan shall not be sold, assigned,
                           pledged, or otherwise transferred to the extent then
                           subject to the Forfeiture Restrictions.

                  (ii)     The Forfeiture Restrictions shall lapse as to each
                           grant of shares of Stock issued to a Non-Employee
                           Director pursuant to this Plan on the day before the
                           date of the first annual meeting of stockholders
                           following the date of issuance of such Restricted
                           Shares, provided that the lapse conditions described
                           below have been satisfied.

                  (iii)    The Forfeiture Restrictions shall lapse as of a given
                           date with respect to the applicable number of shares
                           of Stock only if the Non-Employee Director has
                           remained a Non-Employee Director of the Company
                           continuously from the date of issuance of the
                           Restricted Shares through such lapse date, provided,
                           however, that if a Non-Employee Director terminates
                           as a director by reason of death or Total and
                           Permanent Disability, the Forfeiture Restrictions on
                           all Restricted Shares issued pursuant to this Plan to
                           such Non-Employee Director shall lapse as of the
                           date of his termination as a director. To the extent
                           that the lapse conditions are not satisfied as of a
                           given lapse date, the Non-Employee Director shall for
                           no consideration forfeit and surrender to the

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                           Company all of the shares of Restricted Shares which
                           are then subject to Forfeiture Restrictions.
                           Unrestricted shares of Stock, evidenced in such
                           manner as the Committee shall deem appropriate, shall
                           be issued to the holder of Restricted Shares promptly
                           after the applicable restrictions have lapsed or
                           otherwise been satisfied.

                  (iv)     Any Restricted Shares shall be evidenced by issuance
                           of a stock certificate which shall be registered in
                           the name of the Non-Employee Director and shall bear
                           an appropriate legend referring to the terms,
                           conditions and restrictions applicable to such
                           Restricted Shares. The Non-Employee Director shall
                           not be entitled to delivery of the stock certificate
                           until the Forfeiture Restrictions have lapsed, and
                           the Company shall retain custody of the stock
                           certificate until the Forfeiture Restrictions have
                           lapsed.

                  (v)      In the event that the number of shares of Stock
                           available for grants under the Plan is insufficient
                           to make all grants provided for in this Paragraph VI
                           hereby made on the applicable date, then all
                           Non-Employee Directors who are entitled to a grant on
                           such date shall share ratably in the number of shares
                           of Stock then available, if any, for grant under the
                           Plan, shall have no right to receive a grant with
                           respect to the deficiencies in the number of
                           available shares of Stock and the grants under this
                           Paragraph VI shall thereafter terminate.

                  (vi)     It is intended that the Plan meet the requirements of
                           Rule 16b-3 and that any Non-Employee Director who is
                           eligible to receive a grant of Restricted Shares or
                           to whom a grant of Restricted Shares is made pursuant
                           to this Paragraph VI will not for such reason cease
                           to be a "disinterested person" within the meaning of
                           Rule 16b-3 with respect to the Plan and other
                           stock-related plans of the Company.

              VII. SHARES RECEIVED IN REORGANIZATION OR STOCK SPLIT

         The prohibitions of Paragraph VI shall not apply to the transfer of
Restricted Shares pursuant to a plan of reorganization of the Company, but the
stock or securities received in exchange therefor, and any Stock received as a
result of a stock split or stock dividend with respect to Restricted Shares,
shall also become Restricted Shares subject to the Forfeiture Restrictions and
provisions governing the lapsing of such Forfeiture Restrictions applicable to
the original shares granted to the Non-Employee Director for all purposes of
the Plan and the certificates representing such additional shares shall be
legended to show such restrictions. Notwithstanding the foregoing, if (i) the
Company shall not be the surviving entity in any merger or consolidation (or
survives only as a subsidiary of an entity other than a previously wholly-owned
subsidiary of the Company), (ii) the Company sells, leases or exchanges or
agrees to sell, lease or exchange all or substantially all of its assets to any
other person or entity (other than a wholly-owned subsidiary of the Company), or
(iii) the Company is to be dissolved and liquidated, then effective as of the
effective date of such merger, consolidation, dissolution and liquidation, or
sale, all Forfeiture Restrictions on all Restricted Shares shall lapse.

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                               VIII. TERM OF PLAN

         The Plan shall be effective upon the date of its adoption by the Board,
provided the Plan is subsequently approved by the stockholders of the Company
within 12 months thereafter. Unless sooner terminated under the provisions of
Paragraph XI, no shares shall be issued under Paragraph VI after the expiration
of ten years from the effective date of the Plan.

                            IX. RIGHTS AS STOCKHOLDER

         Upon issuance of Restricted Shares to a Non-Employee Director, except
with respect to the Forfeiture Restrictions, such Non-Employee Director shall
have all the rights of a stockholder of the Company with respect to such
Restricted Shares, including the right to vote such Restricted Shares and to
receive all dividends or other distributions paid with respect to such
Restricted Shares.

                               X. WITHHOLDING TAX

         To the extent the issuance of shares of Stock or the lapse of
Forfeiture Restrictions results in the receipt of compensation by a Non-Employee
Director, the Company (or the employing Subsidiary) is authorized to withhold
from any other cash compensation then or thereafter payable to such Non-Employee
Director any tax required to be withheld by reason of the receipt of
compensation resulting from the issuance of shares or the lapse of Forfeiture
Restrictions.

         Alternatively, a Non-Employee Director may authorize the Company to
retain or withhold sufficient shares of Stock otherwise receivable by the
Non-Employee Director from the Company with respect to Restricted Shares or may
deliver to the Company sufficient shares of Stock to enable the Company to
satisfy any such withholding requirement.

                      XI. AMENDMENT OR TERMINATION OF PLAN

         The Board in its discretion may terminate the Plan at any time with
respect to any shares of Stock which have not theretofore been issued. The Board
shall have the right to alter or amend the Plan or any part thereof from time to
time; provided that no change may be made which would impair the rights of a
Non-Employee Director to whom Restricted Shares have theretofore been issued
without the consent of such Non-Employee Director; and provided, further that
the Board may not make any alteration or amendment that would materially
increase the benefits accruing to participants under the Plan, increase the
aggregate number of shares of Stock that may be issued under the Plan (other
than an increase reflecting a stock dividend, stock split or similar
recapitalization of the Company), change the class of individuals eligible to
receive Stock under the Plan, or extend the maximum period during which
Restricted Shares may be granted under the Plan, without the approval of the
stockholders of the Company. Notwithstanding the foregoing, the Plan

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shall not be amended more than once every six months other than to comport with
changes in the Internal Revenue Code of 1986, as amended, and the Employee
Retirement Income Security Act of 1974, as amended, or the regulations issued
thereunder.

                           XII. GOVERNMENT REGULATIONS

         Notwithstanding any provisions hereof to the contrary, the obligations
of the Company to deliver shares of Stock under the Plan shall be subject to all
applicable laws, rules and regulations and to such approvals by any governmental
agencies or national securities exchanges on which the Stock is traded.

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                                                                  EXHIBIT 10.19

                          NEWFIELD EXPLORATION COMPANY
                        2001 EMPLOYEE STOCK PURCHASE PLAN

         1. PURPOSE. The NEWFIELD EXPLORATION COMPANY 2001 EMPLOYEE STOCK
PURCHASE PLAN (the "Plan") is intended to provide an incentive for employees of
NEWFIELD EXPLORATION COMPANY (the "Company") and certain of its subsidiaries to
acquire or increase a proprietary interest in the Company through the purchase
of shares of the Company's common stock. The Plan is intended to qualify as an
"employee stock purchase plan" under Section 423 of the Internal Revenue Code of
1986, as amended (the "Code"). The provisions of the Plan shall be construed in
a manner consistent with the requirements of that section of the Code.

         2. DEFINITIONS. Where the following words and phrases are used in the
Plan, they shall have the respective meanings set forth below, unless the
context clearly indicates to the contrary:

                  (a) "Board" means the Board of Directors of the Company.

                  (b) "Code" means the Internal Revenue Code of 1986, as
         amended.

                  (c) "Committee" means a committee appointed from time to time
         by the Board to administer the Plan as provided in paragraph 3.

                  (d) "Company" means Newfield Exploration Company.

                  (e) "Date of Exercise" means the last day of each Option
         Period.

                  (f) "Date of Grant" means January 1, 2001, and, thereafter,
         the first day of each successive July and January.

                  (g) "Eligible Compensation" means regular straight-time
         earnings or base salary, determined before giving effect to any salary
         reduction agreement pursuant to (i) a qualified cash or deferred
         arrangement (within the meaning of Section 401(k) of the Code) or (ii)
         a cafeteria plan (within the meaning of Section 125 of the Code).
         Eligible Compensation shall not include management incentives,
         overtime, bonuses, commissions, severance pay, incentive pay, shift
         premium differentials, extended work-week premiums, pay in lieu of
         vacation, reimbursements, or any other special or incentive payments
         excluded by the Committee in its discretion (applied in a uniform
         basis).

                  (h) "Eligible Employee" means, with respect to each Date of
         Grant, each employee of the Company or a Participating Company who, as
         of such Date of Grant, is regularly scheduled to work more than 20
         hours per week and more than five months in any calendar year.

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

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                  (j) "Option Period" means the six month period beginning on
         each Date of Grant.

                  (k) "Option Price" shall have the meaning assigned to such
         term in paragraph 8(b).

                  (l) "Participating Company" means any present or future parent
         or subsidiary corporation of the Company that participates in the Plan
         pursuant to paragraph 4.

                  (m) "Plan" means this Newfield Exploration Company 2001
         Employee Stock Purchase Plan, as amended from time to time.

                  (n) "Stock" means the shares of the Company's common stock,
         par value $.01 per share.

         3. ADMINISTRATION OF THE PLAN. The Plan shall be administered by the
Committee, the members of which shall be appointed from time to time by the
Board. Each member of the Committee shall serve for a term commencing on a date
specified by the Board and continuing until he dies, resigns, or is removed from
office by the Board. Subject to the provisions of the Plan, the Committee shall
interpret the Plan and all options granted under the Plan, make such rules as it
deems necessary for the proper administration of the Plan, and make all other
determinations necessary or advisable for the administration of the Plan. In
addition, the Committee shall correct any defect or supply any omission or
reconcile any inconsistency in the Plan, or in any option granted under the
Plan, in the manner and to the extent that the Committee deems desirable to
carry the Plan or any option into effect. The Committee shall, in its sole
discretion, make such decisions or determinations and take such actions, and all
such decisions, determinations and actions taken or made by the Committee
pursuant to this and the other paragraphs of the Plan shall be conclusive on all
parties. The Committee shall not be liable for any decision, determination or
action taken in good faith in connection with the administration of the Plan.
The Committee shall have the authority to delegate routine day-to-day
administration of the Plan to such officers and employees of the Company as the
Committee deems appropriate.

         4. PARTICIPATING COMPANIES. The Committee may designate any present or
future parent or subsidiary corporation of the Company that is eligible by law
to participate in the Plan as a Participating Company by written instrument
delivered to the designated Participating Company. Such written instrument shall
specify the effective date of such designation and shall become, as to such
designated Participating Company and persons in its employment, a part of the
Plan. The terms of the Plan may be modified as applied to the Participating
Company only to the extent permitted under Section 423 of the Code. Transfer of
employment among the Company and Participating Companies (and among any other
parent or subsidiary corporation of the Company) shall not be considered a
termination of employment hereunder. Any Participating Company may, by
appropriate action of its Board of Directors, terminate its participation in the
Plan. Moreover, the Committee may, in its discretion, terminate a Participating
Company's Plan participation at any time.

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         5. ELIGIBILITY. Subject to the provisions hereof, all Eligible
Employees as of a Date of Grant shall be eligible to participate in the Plan
with respect to options granted under the Plan as of such date.

         6. STOCK SUBJECT TO THE PLAN. Subject to the provisions of paragraph
13, the aggregate number of shares which may be sold pursuant to options granted
under the Plan shall not exceed 200,000 shares of the authorized Stock, which
shares may be unissued shares or reacquired shares, including shares bought on
the market or otherwise for purposes of the Plan. Should any option granted
under the Plan expire or terminate prior to its exercise in full, the shares
theretofore subject to such option may again be subject to an option granted
under the Plan. Any shares that are not subject to outstanding options upon the
termination of the Plan shall cease to be subject to the Plan.

         7. GRANT OF OPTIONS.

                  (a) IN GENERAL. Commencing on January 1, 2001, and continuing
while the Plan remains in force, the Company shall, on each Date of Grant, grant
an option under the Plan to purchase shares of Stock to each Eligible Employee
as of such Date of Grant who elects to participate in the Plan; provided,
however, that no option shall be granted to an Eligible Employee if such
individual, immediately after the option is granted, owns stock possessing five
percent or more of the total combined voting power or value of all classes of
stock of the Company or of its parent or subsidiary corporations (within the
meaning of Sections 423(b)(3) and 424(d) of the Code). Except as provided in
paragraph 13, the term of each option shall be for six months, which shall begin
on a Date of Grant and end on the last day of such six-month period. Subject to
subparagraph 7(d), the number of shares of Stock subject to an option for a
participant shall be equal to the quotient of (i) the aggregate payroll
deductions withheld on behalf of such participant during the Option Period in
accordance with subparagraph 7(b), divided by (ii) the Option Price of the Stock
applicable to the option, rounded down to the nearest whole share; provided,
however, that the maximum number of shares of Stock that may be subject to any
option for a participant may not exceed 3,000 (subject to adjustment as provided
in paragraph 13).

                  (b) ELECTION TO PARTICIPATE; PAYROLL DEDUCTION AUTHORIZATION.
An Eligible Employee may participate in the Plan only by means of payroll
deduction. Except as provided in subparagraph 7(f), each Eligible Employee who
elects to participate in the Plan shall deliver to the Company, within the time
period prescribed by the Committee, a written payroll deduction authorization in
a form prepared by the Company whereby he gives notice of his election to
participate in the Plan as of the next following Date of Grant, and whereby he
designates a stated percentage of his Eligible Compensation to be deducted from
his compensation for each pay period and paid into the Plan for his account. The
designated percentage may not be less than 2% nor exceed 10%.

                  (c) CHANGES IN PAYROLL AUTHORIZATION. The payroll deduction
authorization referred to in subparagraph 7(b) may be reduced at any time during
the Option Period by the employee giving written notice to the Company that his
payroll deductions with respect to such Option Period shall thereafter be
reduced to a specific percentage (not less than 2%) of his Eligible
Compensation. Such reduction shall be irrevocable.

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                  (d) $25,000 LIMITATION. No employee shall be granted an option
under the Plan which permits his rights to purchase Stock under the Plan and
under all other employee stock purchase plans of the Company and its parent and
subsidiary corporations to accrue at a rate which exceeds $25,000 of fair market
value of Stock (determined at the time such option is granted) for each calendar
year in which such option is outstanding at any time (within the meaning of
Section 423(b)(8) of the Code). Any payroll deductions in excess of the amount
specified in the foregoing sentence shall be returned to the participant as soon
as administratively feasible after the next following Date of Exercise.

                  (e) LEAVES OF ABSENCE. During a paid leave of absence approved
by the Company and meeting the requirements of Treasury Regulation Section
1.421-7(h)(2), a participant's elected payroll deductions shall continue. A
participant may not contribute to the Plan during an unpaid leave of absence. If
a participant takes an unpaid leave of absence that is approved by the Company
and meets the requirements of Treasury Regulation Section 1.421-7(h)(2), then
such participant's payroll deductions for such Option Period that were made
prior to such leave may remain in the Plan and be used to purchase Stock under
the Plan on the Date of Exercise relating to such Option Period. If a
participant takes a leave of absence that is not described in the first or third
sentence of this subparagraph 7(e), then he shall be considered to have
terminated his employment for purposes of the Plan and withdrawn from the Plan
pursuant to the provisions of paragraph 9 hereof. Further, notwithstanding the
preceding provisions of this subparagraph 7(e), if a participant takes a leave
of absence that is described in the first or third sentence of this subparagraph
7(e) and such leave of absence exceeds 90 days, then he shall be considered to
have withdrawn from the Plan pursuant to the provisions of paragraph 9 hereof
and terminated his employment for purposes of the Plan on the 91st day of such
leave of absence.

                  (f) CONTINUING ELECTION. Subject to the limitation set forth
in subparagraph 7(d), a participant (i) who has elected to participate in the
Plan pursuant to subparagraph 7(b) as of a Date of Grant and (ii) who takes no
action to change or revoke such election as of the next following Date of Grant
and/or as of any subsequent Date of Grant prior to any such respective Date of
Grant shall be deemed to have made the same election, including the same
attendant payroll deduction authorization, for such next following and/or
subsequent Date(s) of Grant as was in effect immediately prior to such
respective Date of Grant. Payroll deductions that are limited by subparagraph
7(d) shall recommence at the rate provided in such participant's payroll
deduction authorization at the beginning of the first Option Period that is
scheduled to end in the following calendar year, unless the participant changes
the amount of his payroll deduction authorization pursuant to paragraph 7,
withdraws from the Plan as provided in paragraph 9, or is terminated from
participation in the Plan as provided in paragraph 10.

         8. EXERCISE OF OPTIONS.

                  (a) GENERAL STATEMENT. Subject to the limitation set forth in
subparagraph 7(d), each participant in the Plan automatically and without any
act on his part shall be deemed to have exercised his option on each Date of
Exercise to the extent his unused payroll deductions under the Plan are
sufficient to purchase at the Option Price whole shares of Stock subject to his
option and to the extent the issuance of Stock to such participant upon such
exercise is lawful. Any amount relating to such option that remains in his
account representing a fractional share shall be applied

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to the purchase of shares of Stock during the next Option Period as if such
participant had contributed such amount by payroll deduction to the Plan during
such period for the option that relates to such period. If the total number of
shares for which options are exercised on any date of exercise exceeds the
maximum number of shares remaining to be sold under the Plan, the Company shall
make a pro rata allocation of the shares of stock available for delivery and
distribution in as nearly a uniform manner as shall be practicable and as it
shall determine to be equitable, and the balance of the payroll deductions
credited to the account of each participant under the Plan shall be refunded to
him promptly.

                  (b) "OPTION PRICE" DEFINED. The term "Option Price" shall mean
the per share price of Stock to be paid by each participant on each exercise of
his option, which price shall be equal to 85% of the fair market value of the
Stock on the Date of Exercise or on the Date of Grant, whichever amount is less.
For all purposes under the Plan, the fair market value of a share of Stock on a
particular date shall be equal to the mean of the reported high and low sales
prices of the Stock on the New York Stock Exchange composite tape on that date,
or if no prices are reported on that date, on the last preceding date on which
such prices of the Stock are so reported. If the Stock is traded over the
counter at the time a determination of its fair market value is required to be
made hereunder, its fair market value shall be deemed to be equal to the average
between the reported high and low or closing bid and asked prices of Stock on
the most recent date on which Stock was publicly traded. In the event Stock is
not publicly traded at the time a determination of its value is required to be
made hereunder, the determination of its fair market value shall be made by the
Committee in such manner as it deems appropriate.

                  (c) DELIVERY OF SHARE CERTIFICATES. The Company shall deliver
to each optionee a certificate issued in his name for the number of shares of
Stock with respect to which his option was exercised and for which he has paid
the Option Price. The certificate shall be delivered as soon as practicable
following the date of exercise. If the Company is required to obtain from any
U.S. commission or agency authority to issue any such shares, the Company shall
seek to obtain such authority. Inability of the Company to obtain from any
commission or agency (whether U.S. or foreign) authority which counsel for the
Company deems necessary for the lawful issuance of any such shares shall relieve
the Company from liability to any participant in the Plan except to return to
him the amount of his payroll deductions under the Plan which would have
otherwise been used upon exercise of the relevant option.

         9. WITHDRAWAL FROM THE PLAN.

                  (a) GENERAL STATEMENT. Any participant may withdraw in whole
from the Plan at any time prior to the Date of Exercise relating to a particular
Option Period. Partial withdrawals shall not be permitted. A participant who
wishes to withdraw from the Plan must timely deliver to the Company a notice of
withdrawal in a form prepared by the Company. The Company, promptly following
the time when the notice of withdrawal is delivered, shall refund to the
participant the amount of his payroll deductions under the Plan which have not
yet been otherwise returned to him or used upon exercise of options; and
thereupon, automatically and without any further act on his part, his payroll
deduction authorization and his interest in unexercised options under the Plan
shall terminate.

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                  (b) ELIGIBILITY FOLLOWING WITHDRAWAL. A participant who
withdraws from the Plan shall be eligible to participate again in the Plan upon
expiration of the Option Period during which he withdrew (provided that he is
otherwise eligible to participate in the Plan at such time).

         10. TERMINATION OF EMPLOYMENT.

                  (a) GENERAL STATEMENT. Except as provided in subparagraph
10(b), if the employment of a participant terminates for any reason whatsoever,
then his participation in the Plan automatically and without any act on his part
shall terminate as of the date of the termination of his employment. The Company
shall promptly refund to him the amount of his payroll deductions under the Plan
which have not yet been otherwise returned to him or used upon exercise of
options, and thereupon his interest in unexercised options under the Plan shall
terminate.

                  (b) TERMINATION BY RETIREMENT, DEATH OR DISABILITY. If the
employment of a participant terminates after such participant has attained age
65 or due to such participant's death or permanent and total disability (within
the meaning of Section 22(e)(3) of the Code), then such participant, or such
participant's personal representative, as applicable, shall have the right to
elect either to:

                      (1) withdraw all of such participant's accumulated unused
         payroll deductions under the Plan; or

                      (2) exercise such participant's option as of his
         retirement date, his date of death, or his date of termination due to
         permanent and total disability, as applicable, for the purchase of the
         number of whole shares of Stock which the accumulated payroll
         deductions at the date of such participant's termination of employment
         will purchase at the Option Price (subject to subparagraph 7(d)), and
         receive a payment from the Company promptly after such exercise in the
         amount of such participant's payroll deductions under the Plan which
         have not yet been otherwise returned to him or used upon exercise of
         options. For purposes of this subparagraph 10(b)(2), the date of
         termination of employment will be deemed to be the Date of Exercise for
         the purpose of computing the Option Price.

The participant or, if applicable, such personal representative, must make such
election by giving written notice to the Committee within 90 days of the
participant's date of retirement, date of death, or date of termination due to
permanent and total disability, as applicable. In the event that no such written
notice of election is timely received by the Committee, the participant or
personal representative will automatically be deemed to have elected as set
forth in clause (1) above.

         11. RESTRICTION UPON ASSIGNMENT OF OPTION. An option granted under the
Plan shall not be transferable otherwise than by will or the laws of descent and
distribution. Each option shall be exercisable, during his lifetime, only by the
employee to whom granted. The Company shall not recognize and shall be under no
duty to recognize any assignment or purported assignment by an employee of his
option or of any rights under his option or under the Plan.

         12. NO RIGHTS OF SHAREHOLDER UNTIL EXERCISE OF OPTION. With respect to
shares of Stock subject to an option, an optionee shall not be deemed to be a
shareholder, and he shall not

                                      -6-

<PAGE>   7

have any of the rights or privileges of a shareholder, until such option has
been exercised and a certificate of shares has been issued to him.

         13. CHANGES IN STOCK; ADJUSTMENTS. Whenever any change is made in the
Stock, by reason of a stock dividend or by reason of subdivision, stock split,
reverse stock split, recapitalization, reorganization, combination,
reclassification of shares or other similar change, appropriate action will be
taken by the Committee to adjust accordingly the number of shares subject to the
Plan, the maximum number of shares that may be subject to any option, and the
number and Option Price of shares subject to options outstanding under the Plan.

         If the Company shall not be the surviving corporation in any merger or
consolidation (or survives only as a subsidiary of another entity), or if the
Company is to be dissolved or liquidated, then, unless a surviving corporation
assumes or substitutes new options (within the meaning of Section 424(a) of the
Code) for all options then outstanding, (i) the Date of Exercise for all options
then outstanding shall be accelerated to a date fixed by the Committee prior to
the effective date of such merger or consolidation or such dissolution or
liquidation, (ii) an employee (or his legal representative) may make a lump-sum
deposit prior to the Date of Exercise in lieu of the remaining payroll
deductions which otherwise would have been made, and (iii) upon such effective
date any unexercised options shall expire and the Company promptly shall refund
to each participant the amount of such participant's payroll deductions under
the Plan which have not yet been otherwise returned to him or used upon exercise
of options.

         14. USE OF FUNDS; NO INTEREST PAID. All funds received or held by the
Company under the Plan shall be included in the general funds of the Company
free of any trust or other restriction, and may be used for any corporate
purpose. No interest shall be paid to any participant.

         15. TERM OF THE PLAN. The Plan shall be effective January 1, 2001,
provided the Plan is approved by the shareholders of the Company within 12
months after the adoption by the Board. Notwithstanding any provision in the
Plan, no option granted under the Plan shall be exercisable prior to such
shareholder approval, and, if the shareholders of the Company do not approve the
Plan by the Date of Exercise of the first option granted hereunder, then the
Plan shall automatically terminate, no options may be exercised hereunder, and
the Company promptly shall refund to each participant the amount of such
participant's payroll deductions under the Plan; and thereupon, automatically
and without any further act on his part, his payroll deduction authorization and
his interest in unexercised options under the Plan shall terminate. Except with
respect to options then outstanding, if not sooner terminated under the
provisions of paragraph 16, the Plan shall terminate upon and no further payroll
deductions shall be made and no further options shall be granted after December
31, 2010.

         16. AMENDMENT OR TERMINATION OF THE PLAN. The Board in its discretion
may terminate the Plan at any time with respect to any Stock for which options
have not theretofore been granted. The Board shall have the right to alter or
amend the Plan or any part thereof from time to time; provided, however, that no
change in any option theretofore granted may be made that would impair the
rights of the optionee without the consent of such optionee.

         17. SECURITIES LAWS. The Company shall not be obligated to issue any
Stock pursuant to any option granted under the Plan at any time when the offer,
issuance or sale of shares covered

                                      -7-

<PAGE>   8

by such option has not been registered under the Securities Act of 1933, as
amended, or does not comply with such other state, federal or foreign laws,
rules or regulations, or the requirements of any stock exchange upon which the
Stock may then be listed, as the Company or the Committee deems applicable and,
in the opinion of legal counsel for the Company, there is no exemption from the
requirements of such laws, rules, regulations or requirements available for the
offer, issuance and sale of such shares. Further, all Stock acquired pursuant to
the Plan shall be subject to the Company's policies concerning compliance with
securities laws and regulations, as such policies may be amended from time to
time. The terms and conditions of options granted hereunder to, and the purchase
of shares by, persons subject to Section 16 of the Exchange Act shall comply
with any applicable provisions of Rule 16b-3. As to such persons, the Plan shall
be deemed to contain, and such options shall contain, and the shares issued upon
exercise thereof shall be subject to, such additional conditions and
restrictions as may be required from time to time by Rule 16b-3 to qualify for
the maximum exemption from Section 16 of the Exchange Act with respect to Plan
transactions.

         18. NO RESTRICTION ON CORPORATE ACTION. Nothing contained in the Plan
shall be construed to prevent the Company or any subsidiary from taking any
corporate action that is deemed by the Company or such subsidiary to be
appropriate or in its best interest, whether or not such action would have an
adverse effect on the Plan or any option granted under the Plan. No employee,
beneficiary or other person shall have any claim against the Company or any
subsidiary as a result of any such action.

         19. MISCELLANEOUS PROVISIONS.

                  (a) PARENT AND SUBSIDIARY CORPORATIONS. For all purposes of
the Plan, a corporation shall be considered to be a parent or subsidiary
corporation of the Company only if such corporation is a parent or subsidiary
corporation of the Company within the meaning of Sections 424(e) and (f) of the
Code.

                  (b) NUMBER AND GENDER. Wherever appropriate herein, words used
in the singular shall be considered to include the plural and words used in the
plural shall be considered to include the singular. The masculine gender, where
appearing in the Plan, shall be deemed to include the feminine gender.

                  (c) HEADINGS. The headings and subheadings in the Plan are
included solely for convenience, and if there is any conflict between such
headings or subheadings and the text of the Plan, the text shall control.

                  (d) NOT A CONTRACT OF EMPLOYMENT. The adoption and maintenance
of the Plan shall not be deemed to be a contract between the Company or any
Participating Company and any person or to be consideration for the employment
of any person. Participation in the Plan at any given time shall not be deemed
to create the right to participate in the Plan, or any other arrangement
permitting an employee of the Company or any Participating Company to purchase
Stock at a discount, in the future. The rights and obligations under any
participant's terms of employment with the Company or any Participating Company
shall not be affected by participation in the Plan. Nothing herein contained
shall be deemed to give any person the right to be retained in the employ of the
Company or any Participating Company or to restrict the right of the Company or
any Participating Company to discharge any person at any time, nor shall the
Plan be deemed to give the

                                      -8-

<PAGE>   9
Company or any Participating Company the right to require any person to remain
in the employ of the Company or such Participating Company or to restrict any
person's right to terminate his employment at any time. The Plan shall not
afford any participant any additional right to compensation as a result of the
termination of such participant's employment for any reason whatsoever.

                  (e) COMPLIANCE WITH APPLICABLE LAWS. The Company's obligation
to offer, issue, sell or deliver Stock under the Plan is at all times subject to
all approvals of and compliance with any governmental authorities (whether
domestic or foreign) required in connection with the authorization, offer,
issuance, sale or delivery of Stock as well as all federal, state, local and
foreign laws. Without limiting the scope of the preceding sentence, and
notwithstanding any other provision in the Plan, the Company shall not be
obligated to grant options or to offer, issue, sell or deliver Stock under the
Plan to any employee who is a citizen or resident of a jurisdiction the laws of
which, for reasons of its public policy, prohibit the Company from taking any
such action with respect to such employee.

                  (f) SEVERABILITY. If any provision of the Plan shall be held
illegal or invalid for any reason, said illegality or invalidity shall not
affect the remaining provisions hereof; instead, each provision shall be fully
severable and the Plan shall be construed and enforced as if said illegal or
invalid provision had never been included herein.

                  (g) GOVERNING LAW. All provisions of the Plan shall be
construed in accordance with the laws of Delaware except to the extent preempted
by federal law.

                                      -9-

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