Document:

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                                  EXHIBIT 10.5

                  Letter agreement dated August 9, 2002, among
         U.S. Philips Corporation, Koninklijke Philips Electronics N.V.
                         and Metatec International, Inc.

                                 August 9, 2002

Mr. Gary Qualmann, CFO
Metatec International, Inc.
7001 Metatec Boulevard
Dublin, OH 43017

Re:      Comprehensive CD Disc License Agreement;
            DVD Video Disc and DVD ROM Disc Patent License Agreement
               License Agreement For The Use Of AC-3 Technology In The
               Manufacture of DVD Video Discs

Dear Mr. Qualmann:

         U.S. Philips Corporation ("USPC") and Metatec International, Inc.
("METATEC") hereby confirm the following agreement ("Workout Agreement")
regarding the Comprehensive CD Disc License Agreement ("CD Disc Agreement"), the
DVD Video Disc and DVD ROM Disc Patent License Agreement ("DVD Disc Agreement"),
and the License Agreement For The Use Of AC-3 Technology In The Manufacture of
DVD Video Discs ("AC-3 Agreement").

         1. Under Art. 5.04 of the CD Disc Agreement, Art. 4.03 of the DVD Disc
Agreement, and Art. 3.02 of the AC-3 Agreement, METATEC is required to provide
USPC with royalty reports thirty days after the end of each calendar quarter and
to make royalty payments thirty days after the end of each calendar quarter on
all Licensed Product sold during the preceding calendar quarter. Under the CD
Disc Agreement, METATEC made only a partial payment of $300,000 toward the
royalty payment of $672,290.82 for the third quarter of 2000, and failed to make
royalty payments for the fourth calendar quarter of 2000, all four calendar
quarters of the year 2001, and the first two calendar quarters of 2002.
Similarly, under the DVD Disc Agreement and the AC-3 Agreement, METATEC failed
to make royalty payments for the fourth calendar quarter of 2000, all four
calendar quarters of the year 2001, and the first two calendar quarters of 2002.
METATEC has asked USPC (i) to forbear on the remedies available to USPC under
such CD Disc Agreement, DVD Disc Agreement, and AC-3 Agreement (including
termination of each of these Agreements and commencement of legal action for
immediate payment) and (ii) to re-structure payment for the unpaid royalties due
and owing ("Arrears").

         2. METATEC has provided USPC with an accounting of Arrears under the CD
Disc Agreement, the DVD Disc Agreement and the AC-3 Agreement and represents and
warrants that these amounts as of July 31, 2002 equals Three Million, Four
Hundred and Sixty Nine Thousand, Seven Hundred and Two U.S. Dollars
($3,469,702)("Arrears Amount"). METATEC shall pay USPC the Arrears Amount with
interest at 6%/annum calculated from July 31, 2002 in installments as set forth
in the attached payment schedule labelled "ARREARS PAYMENT SCHEDULE - METATEC -
AUGUST 9, 2002".

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         3. Upon execution of this Workout Agreement, METATEC shall execute and
deliver a Promissory Note according to the Payment Schedule listed under Article
2, as attached hereto.

         4. Metatec shall, concurrently with execution of this Workout
Agreement, execute the current version of Philips' CD Disc License Agreement,
DVD Video Disc and DVD ROM Disc Patent License Agreement, the License Agreement
For The Use Of AC-3 Tecnology In The Manufacture of DVD Video Discs, and the
MPEG Audio Patent License Agreement (collectively the "New Agreements").
         Execution of the New Agreements is required under the CD and DVD Disc
Compliance Programs announced by Philips. METATEC shall be entitled to the
Compliance Rates Under the New Agreements, provided that METATEC is in full
compliance with all terms of such New Agreements, and this Workout Agreement.

         5. Upon execution of this Agreement, Metatec shall deliver an escrow
agreement in which an estimated royalty payment for the New Agreements, in an
amount no less than $150,000, is held in escrow for the benefit of Koninklijke
Philips Electronics NV of The Netherlands ("Philips"). Such funds shall be
immediately payable to Philips if any of the amounts under such New Agreements
or this Workout Agreement is not made when due.

         6. In view of USPC's forbearance in not immediately enforcing its
rights under the CD Disc Agreement and in agreeing to the payment schedule set
forth in paragraph 2, METATEC further agrees that:

                  (a) METATEC shall not contest the Arrears Amount and interest
         thereon;

                  (b) METATEC stipulates that with respect to the payments due
         under this Workout Agreement, the Licensed Patents under the CD Disc
         Agreement, the DVD Disc Agreement, and the AC-3 agreement are valid and
         infringed by the Licensed Products manufactured by METATEC during the
         Arrears period, and METATEC shall not contest the validity or
         infringement of the Licensed Patents with respect to the Arrears Amount
         (provided, however, that nothing herein shall prevent METATEC from
         contesting the Licensed Patents with respect to sales of Licensed
         Products after the full and timely payment of all monies payable under
         paragraph 2;

                  (c) If METATEC (i) fails to make any of the payments for
         Arrears as of the due date specified or (ii) if METATEC fails to timely
         provide any of the quarterly royalty reports or timely make any of the
         quarterly royalty payments due thereon as specified in the New
         Agreements to be executed by METATEC, and METATEC fails to cure such
         error within ten (10) business days of written notice by USPC or
         Koninklijke Philips Electronics NV, then:

                           (i) the entire remaining unpaid balance of the
                  Arrears Amount shall immediately become due and payable;
                           (ii) USPC shall be entitled to injunctive relief as
                  well as or confession of judgement for the entire unpaid
                  portion of the Arrears Amount; and
                           (iii) USPC shall be entitled to an award of
                  reasonable counsel fees and costs for enforcement of this
                  Workout Agreement.

         7. METATEC and USPC shall treat the contents of this Workout Agreement
as confidential information and shall not disclose it to third parties, except
as may be necessary by either USPC or METATEC to enforce its rights hereunder in
a governmental body or court of law. METATEC may

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also disclose the contents of this Workout Agreement to a financial institution
(and its advisors, accountants and bankers) as necessary to secure financing or
to a prospective buyer (and its advisors, accountants and bankers) of METATEC as
part of a due diligence investigation, provided that (i) USPC is informed in
advance of such disclosure, and (ii) a suitable confidentiality agreement is
executed between METATEC and the intended recipient of the confidential
information sufficient to protect the information hereunder from disclosure to
other parties and USPC is provided with a copy of the confidentiality agreement
before the disclosure of any contents of this Workout Agreement.

         8. In addition to the other remedies set forth in this Workout
Agreement, USPC shall have the option to terminate this Workout Agreement in the
event METATEC breaches any term hereof by providing written notice to METATEC
and METATEC fails to cure such breach within ten (10) days of written notice by
USPC. In the event this termination option is exercised by USPC, METATEC shall
be entitled to credit for payments made hereunder, but all other rights,
remedies and defenses of USPC shall be preserved. USPC shall have the right to
immediately assert claims (and take whatever legal action it deems appropriate)
against METATEC for the full amounts due (as opposed to the compromised amounts
set forth herein), less credits to METATEC for payments made hereunder.

         9. METATEC forever releases and discharges USPC, its agents, servants,
employees, directors, officers, lawyers, branches, parent, affiliates,
subsidiaries, successors and assigns and all person, firms, corporations and
organizations acting on USPC's behalf (collectively, the "USPC Released
Entities") of and from any and all losses, damages, claims, demands,
liabilities, obligations, actions and causes of action, of any nature whatsoever
in law or in equity, contribution or indemnity, which the METATEC may have or
claim to have against USPC or any one or more of the USPC Released Entities, as
of March 1, 2000, of every nature and kind whatsoever, on account of or in any
way touching, concerning, arising out of, founded upon or relating to i) the
License Agreement, ii) the obligations of USPC under the License Agreement or
otherwise, iii) this Workout Agreement, iv) enforcement or negotiations of this
Workout Agreement or the License Agreement, v) the dealings of the parties to
this Workout Agreement, and vi) anything else whatsoever.

         10. USPC shall maintain its right of audit under the license agreements
and should any such audit reveal facts which are materially different than those
represented by METATEC to USPC in negotiating this Workout Agreement, USPC shall
have the right to enforce the license agreement and seek any additional monies
which may be due and owing under such agreements and discovered as a result of
such audit.

         Please acknowledge METATEC's approval and acceptance to the foregoing
by completing the signature block below.

                                        Very truly yours,

                                        Brian J. Wieghaus
                                        Regional Manager,
                                        Optical Licensing - North America

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Metatec International, Inc.             Koninklijke Philips Electronics NV

By:  /s/ Gary W. Qualmann               By:   /s/ B. Mache
    -----------------------------           --------------------------------
         Gary W. Qualmann                      Bernd Mache

Title:   Chief Financial Officer        Title:  Chief Financial Officer
      ---------------------------             ------------------------------
Date:    August 9, 2002                 Date:   August 13, 2002
      ---------------------------             ------------------------------

U.S. Philips Corporation

By:   /s/ Michael Marion
    ----------------------------
Title:  Authorized Signatory
           Date:   August 13, 2002
                 -----------------------<PAGE>
                                                                    Exhibit 10.1

        This Amendment and Restatement to the Genesee & Wyoming Inc. 1996 Stock
Option Plan was authorized, approved and adopted by the Board of Directors of
the Company on April 5, 2002 and approved and ratified by the stockholders of
the Company on May 23, 2002.

                                         /s/  Mark W. Hastings
                                         ----------------------------------
                                          Mark W. Hastings, Secretary

                          AMENDMENT AND RESTATEMENT OF
                                       THE
                             GENESEE & WYOMING INC.
                             1996 STOCK OPTION PLAN

         WHEREAS, Genesee & Wyoming Inc., a Delaware corporation (the
"Company"), has established the Genesee & Wyoming Inc. 1996 Stock Option Plan,
as heretofore amended (the "Plan"); and

        WHEREAS, deeming it appropriate and advisable so to do, and pursuant to
Section 19 of the Plan, the Board of Directors of the Company has authorized,
approved and adopted the further amendments to the Plan to increase the total
number of shares available for options grants from 2,362,500 to 3,112,500;

        NOW, THEREFORE, the Plan is hereby amended and restated, effective April
5, 2002, as set forth below; provided, however, that if the stockholders of the
Company fail to approve and ratify this Amendment and Restatement at the next
Annual Meeting of Stockholders of the Company, then this Amendment shall be null
and void and of no effect:

        The Plan is hereby amended and restated to read in its entirety as set
forth below:

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                              AMENDED AND RESTATED

                             GENESEE & WYOMING INC.

                             1996 STOCK OPTION PLAN

1.      PURPOSE.

        The Genesee & Wyoming Inc. 1996 Stock Option Plan (the "Plan"),
effective June 24, 1996 and subsequently amended, is designed to create an
incentive for executive and other employees of Genesee & Wyoming Inc., a
Delaware corporation (the "Company"), and its subsidiaries, to remain in the
employ of the Company and its subsidiaries and to contribute to their success by
providing the opportunity for stock ownership. The Company may grant under the
Plan both incentive stock options within the meaning of Section 422 of the
Internal Revenue Code of 1986, as amended (the "Code") ("Incentive Stock
Options") and stock options that do not qualify for treatment as Incentive Stock
Options ("Nonstatutory Stock Options"). Unless expressly provided to the
contrary, all references herein to "Options" include both Incentive Stock
Options and Nonstatutory Stock Options.

2.      ADMINISTRATION.

         (a) The Plan shall be administered by a committee (the "Stock Option
Committee") which shall be comprised of two or more members of the Board of
Directors of the Company.

         (b) Each member of the Stock Option Committee shall be a "Non-Employee
Director" of the Company within the meaning of Rule 16b-3 promulgated under the
Securities Exchange Act of 1934, as amended (the "Exchange Act").

         (c) Subject to the express provisions of the Plan, the Stock Option
Committee shall have the authority, in its discretion and without limitation:

              (i) to determine the individuals to whom Options are granted,
whether an Option is intended to be an Incentive Stock Option or a Nonstatutory
Stock Option, the times when such individuals shall be granted Options, the
number of shares to be subject to each Option, the term of each Option, the date
when each Option shall become exercisable, whether an Option shall be
exercisable in whole or in part in installments, the number of shares to be
subject to each installment, the date each installment shall become exercisable,
the term of each installment, and the option price of each Option;

              (ii) to accelerate the date of exercise of any Option or any
installment thereof (irrespective of any vesting schedule that may have been
part of the grant of such Option);

              (iii) to modify unilaterally the terms of any Option grant or
Option exercise (irrespective of the provisions of any stock option agreement)
so as to avoid variable accounting treatment under Accounting Principles Board
Opinion No. 25 or any Financial Accounting Standards Board interpretation; and

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              (iv) to make all other determinations necessary or advisable for
administering the Plan.

         (d) The Stock Option Committee shall act by majority vote. The decision
of the Stock Option Committee on any question concerning or involving the
interpretation or administration of the Plan shall, as between the Company and
Option holders, be final and conclusive. The Stock Option Committee may consult
with counsel, who may be counsel for the Company, and shall not incur any
liability for any action taken in good faith in reliance upon the advice of
counsel.

3.      ELIGIBILITY.

         (a) Participants in the Plan shall be selected by the Stock Option
Committee from among the full-time employees of the Company, including those who
are also directors or officers thereof. An employee on leave of absence may be
considered as still in the employ of the Company for purposes of eligibility for
participation in the Plan. All references in this Plan to employees of the
Company shall include employees of any parent or subsidiary of the Company, as
those terms are defined in Section 424 of the Code.

         (b) The right of the Company to terminate the employment of a Plan
participant at any time, with or without cause, shall in no way be restricted by
the existence of the Plan, any Option granted hereunder, or any stock option
agreement relating thereto.

4.      NUMBER OF SHARES.

        Subject to the provisions of Section 5, the total number of shares of
the Company's Class A Common Stock, par value $.01 per share (the "Class A
Common Stock"), which may be issued under Options granted pursuant to the Plan
shall not exceed 3,112,500 shares. Shares subject to the Plan may be either
authorized but unissued shares or shares that were once issued and subsequently
reacquired by the Company. If any Option is surrendered before exercise, or
lapses without exercise, or for any other reason ceases to be exercisable, the
shares reserved therefor shall continue to be available for the grant of Options
under the Plan. The Plan shall terminate on June 23, 2006, or the earlier
dissolution of the Company, and no Option shall be granted after such date.

5.      ADJUSTMENT PROVISIONS.

        In the event that:

         (a) in connection with a merger or consolidation of the Company or a
sale by the Company of all or a part of its assets, the outstanding shares of
Class A Common Stock are exchanged for a different number or class of shares of
stock or other securities of the Company, or for shares of the stock or other
securities of any other entity; or

         (b) new, different or additional shares or other securities of the
Company or of another entity are received by the holders of Class A Common
Stock, whether by way of recapitalization or otherwise; or

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         (c) any dividend in the form of stock is made to the holders of Class A
Common Stock, or any stock split or reverse split pertaining to Class A Common
Stock is effected;

then the Stock Option Committee shall make the appropriate adjustment to:

             (i) the number and kind of shares or other securities that may be
issued upon exercise of Options yet to be granted;

             (ii) the option price per share to be paid upon exercise of each
outstanding Option; and

             (iii) the number and kind of shares or other securities covered by
each outstanding Option.

6.      INCENTIVE STOCK OPTIONS.

         (a) The aggregate fair market value (determined as of the Grant Date of
the Option) of the shares with respect to which Incentive Stock Options are
exercisable for the first time by a grantee during any calendar year (under all
plans of the Company and any parent and subsidiaries of the Company) shall not
exceed $100,000.

         (b) If any Incentive Stock Option is for any reason disqualified as an
incentive stock option within the meaning of Section 422 of the Code, it shall
instead remain in full force and effect, in accordance with its terms, as a
Nonstatutory Stock Option.

7.      OPTION PRICE.

         (a) For purposes of the Plan, the term "Grant Date" shall mean either
(i) the date on which the grant of an Option is duly authorized by the Stock
Option Committee, or (ii) the later date specified in the authorizing
resolutions of the Stock Option Committee as the date on which the Option is
granted. The option price at which an Option shall be exercisable shall be at
least the fair market value per share of the Class A Common Stock on the Grant
Date of such Option. However, if an Incentive Stock Option is granted to any
person who would, after the grant of such Option, be deemed to own stock
possessing more than 10 percent of the total combined voting power of all
classes of stock of the Company, or of any parent or subsidiary of the Company
(a "Ten Percent Stockholder"), the option price shall be not less than 110
percent of the fair market value per share of the Class A Common Stock on the
Grant Date of such Option.

         (b) For purposes of the Plan, the fair market value per share of the
Class A Common Stock on any date ("Fair Market Value") shall be the closing
price of the Class A Common Stock on the principal national securities exchange
on which the Class A Common Stock is then listed or admitted to trading, and the
closing price shall be the last reported sale price regular way on such date
(or, if no sale takes place on such date, the last reported sale price regular
way on the next preceding date on which such sale took place), as reported by
such exchange. If the Class A Common Stock is not then so listed or admitted to
trading on a national securities exchange, then Fair Market Value shall be the
closing price (the last reported sale price regular way) of the Class A Common
Stock in the over-the-counter market as reported by the National Association of
Securities Dealers Automated Quotation System ("NASDAQ"), if the closing price
of the Class

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A Common Stock is then reported by NASDAQ. If the Class A Common Stock closing
price is not then reported by NASDAQ, then Fair Market Value shall be the mean
between the representative closing bid and closing asked prices of the Class A
Common Stock in the over-the-counter market as reported by NASDAQ. If the Class
A Common Stock bid and asked prices are not then reported by NASDAQ, then Fair
Market Value shall be the quote furnished by any member of the National
Association of Securities Dealers, Inc. selected from time to time by the
Company for that purpose. If no member of the National Association of Securities
Dealers, Inc. then furnishes quotes with respect to the Class A Common Stock,
then Fair Market Value shall be determined by resolution of the Company's Board
of Directors. Notwithstanding the foregoing provisions of this Section 7(b), if
the Board of Directors shall at any time determine that it is impracticable to
apply the foregoing methods of determining Fair Market Value, then the Board of
Directors is hereby empowered to adopt any other reasonable method for such
purpose.

8.      TERM OF OPTIONS.

        Subject to the provisions of Section 18, the term of each Option shall
be determined by the Stock Option Committee, but in no event shall an Option be
exercisable, either in whole or in part, after the expiration of ten years from
the Grant Date of such Option. Notwithstanding the foregoing, an Incentive Stock
Option granted to a Ten Percent Stockholder shall not be exercisable, either in
whole or in part, after the expiration of five years from the Grant Date of such
Option. The Stock Option Committee and an Option holder may at any time by
mutual agreement terminate any Option held by such Option holder.

9.      STOCK OPTION AGREEMENTS.

        Each Option shall be evidenced by a written agreement which sets forth:
(a) the number of shares subject to the Option; (b) the option price; (c) the
vesting schedule of the Option or a statement that the Option is immediately
exercisable in full; (d) the expiration date of the Option; (e) the method of
payment on exercise of the Option; (f) whether the Option is intended to be an
Incentive Stock Option or a Nonstatutory Stock Option; and (g) such additional
provisions, not inconsistent with the Plan, as the Stock Option Committee may
prescribe.

10.     EXERCISE OF OPTIONS.

         (a) Each Option, or any installment thereof, shall be exercised,
whether in whole or in part, by giving written notice to the Company at its
principal office, specifying the number of shares of Class A Common Stock being
purchased and the purchase price being paid, and accompanied by payment in full
of the purchase price.

         (b) An Option holder shall pay for the shares subject to the Option by
one or any combination of the following methods, as determined by the Stock
Option Committee on the Grant Date of the Option: (i) in cash, or (ii) by
delivery of shares of Class A Common Stock already owned by the Option holder
and held by the Option holder for any holding period required by law or
regulation. Any shares of Class A Common Stock that are so delivered to pay the
option price shall be valued at Fair Market Value on the date of such Option
exercise.

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         (c) The exercise of an Option shall be conditioned upon the Option
holder making arrangements satisfactory to the Stock Option Committee for the
payment to the Company of the amount of all taxes required by any governmental
authority to be withheld and paid over by the Company to the governmental
authority on account of the exercise. The payment of such withholding taxes to
the Company shall be made by one or any combination of the following methods, as
determined by the Stock Option Committee on the Grant Date of the Option: (i) in
cash, or (ii) by the Company withholding such taxes from any other compensation
owed to the Option holder by the Company or any of its subsidiaries.

11.     NON-ASSIGNMENT.

        Each Option by its terms shall provide that it is not transferable by
the grantee other than by will or the laws of descent and distribution, and that
during the lifetime of the grantee, it is exercisable only by him; except that a
Nonstatutory Stock Option may be transferred during the lifetime of a grantee,
and may be exercised by the transferee in accordance with the express terms of
such Nonstatutory Stock Option and the stock option agreement applicable
thereto, but only if and to the extent that such transfer is permitted by the
Stock Option Committee, in its discretion, pursuant to the express terms of a
stock option agreement and subject to any terms and conditions which the Stock
Option Committee may impose thereon; provided, however, that Nonstatutory Stock
Options that are transferable may be granted only on terms that do not preclude
other grants of Options under the Plan that are exempt under Rule 16b-3
promulgated under the Exchange Act. A transferee or other person claiming any
rights under the Plan shall be subject to all of the terms and conditions of the
Plan and of the stock option agreement applicable to such transferee's
transferor (except as otherwise determined by the Stock Option Committee) and to
any additional terms and conditions which the Stock Option Committee may deem
appropriate.

12.     DEATH OF GRANTEE.

        In the event that a grantee shall die:

         (i) while he is an employee of the Company, or within three months
after termination of such employment (or within such other period after
termination of employment as may be determined by the Stock Option Committee and
set forth in the applicable stock option agreement); and

         (ii) prior to the complete exercise of Options granted to him under the
Plan;

then any such remaining Options with exercise periods outstanding may be
exercised, in whole or in part, within one year after the date of the grantee's
death (or within such other period after the grantee's death as may be
determined by the Stock Option Committee and set forth in the applicable stock
option agreement) and then only:

              (a) by the grantee's estate, by such person(s) to whom the
grantee's rights hereunder shall have passed under his will or the laws of
descent and distribution, or by a transferor contemplated by Section 11;

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<PAGE>

              (b) to the extent that the grantee was entitled to exercise the
Option on the date of his death, and subject to all of the conditions on
exercise imposed hereby; and

              (c) prior to the expiration of the term of the Option.

13.     TERMINATION OF EMPLOYMENT.

         (a) During the lifetime of a grantee, an Option shall be exercisable
only while he is an employee of the Company and has been an employee
continuously since the Grant Date of the Option, or within three months after
the date on which he ceases to be such an employee for any reason (or within
such other period after termination of his employment as may be determined by
the Stock Option Committee and set forth in the applicable stock option
agreement); provided, however, that in the case of a grantee who is permanently
and totally disabled (within the meaning of Section 22(e)(3) of the Code), such
three-month period shall instead be one year (or such other period as may be
determined by the Stock Option Committee and set forth in the applicable stock
option agreement).

         (b) Any Option that is exercisable after termination of employment, as
provided by Section 13(a), shall be exercisable only to the extent that the
grantee would have been entitled to exercise the Option on the date of
termination of employment; and further, no Option shall be exercisable after the
expiration of the term thereof.

         (c) For purposes of this Section 13, an employment relationship shall
be treated as continuing during the period when a grantee is on military duty,
sick leave or other bona fide leave of absence if the period of such leave does
not exceed 90 days or, if longer, so long as a statute or contract guarantees
the grantee's right to re-employment with the Company. When the period of leave
exceeds 90 days and the individual's right to re-employment is not so
guaranteed, the employment relationship shall be deemed to have terminated on
the 91st day of such leave.

14.     ADDITIONAL REQUIREMENTS.

         Each grant of an Option under the Plan, and (unless a Registration
Statement with respect thereto shall then be effective under the Securities Act
of 1933, as amended (the "Securities Act")) each issuance of shares of Class A
Common Stock upon exercise of an Option, shall be conditioned upon the Company's
prior receipt of representations of investment intent, in form and content
satisfactory to counsel for the Company, of the Option holder that such Option
and such shares are being acquired by such holder solely for investment and not
with a view to, or for sale in connection with, any distribution thereof, nor
with any present intention of selling, transferring or disposing of the same.
Any shares of Class A Common Stock acquired by the holder upon exercise of the
Option may not thereafter be offered for sale, sold or otherwise transferred
unless (a) a Registration Statement with respect thereto shall then be effective
under the Securities Act, and the Company shall have been furnished with proof
satisfactory to it that such holder has complied with applicable state
securities laws, or (b) the Company shall have received an opinion of counsel in
form and substance satisfactory to counsel for the Company that the proposed
offer for sale, sale or transfer is exempt from the registration requirements of
the Securities Act and may otherwise be transferred in compliance with the
Securities Act and in compliance with any other applicable law, including all
applicable state securities laws; and the

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Company may withhold transfer, registration and delivery of such securities
until one of the foregoing conditions shall have been met.

15.     LISTING AND REGISTRATION.

        The Company, in its discretion, may postpone the issuance and delivery
of shares upon any exercise of an Option until completion of such stock exchange
listing, or registration or other qualification of such shares under any state
or federal law, rule or regulation, as the Company may consider appropriate; and
may require any person exercising an Option to make such representations and
furnish such information as it considers appropriate in connection with the
issuance of the shares in compliance with applicable law, including without
limitation federal or state laws regulating the sale or issuance of securities.
Notwithstanding the foregoing, the Company shall be under no obligation
whatsoever to list, register or otherwise qualify any shares subject to Options
under the Plan.

16.     RIGHTS AS A STOCKHOLDER.

        No Option holder shall have any rights as a stockholder with respect to
the shares of Class A Common Stock purchased by him pursuant to the exercise of
an Option until the date of the issuance to him of a stock certificate
representing such shares. No adjustment shall be made for dividends or for
distributions of any other kind with respect to shares for which the record date
is prior to the date of the issuance to the Option holder of a certificate for
the shares.

17.     EFFECT OF ACQUISITION, REORGANIZATION OR LIQUIDATION.

        Notwithstanding any provision to the contrary in this Plan or in any
agreement evidencing Options granted hereunder, all Options with exercise
periods then currently outstanding shall become immediately exercisable in full
and remain exercisable until their expiration in accordance with their
respective terms upon the occurrence of either of the following events:

         (a) the first purchase of shares pursuant to a tender or exchange offer
which is intended to effect the acquisition of more than 50% of the voting power
of the Company (other than a tender or exchange offer made by the Company); or

         (b) approval by the Company's stockholders of: (i) a merger or
consolidation of the Company with or into another corporation (other than a
merger or consolidation in which the Company is the surviving corporation and
which does not result in any reclassification or reorganization of the shares),
(ii) a sale or disposition of all or substantially all of the Company's assets,
or (iii) a plan of complete liquidation or dissolution of the Company.

18.     CONDITIONAL OPTIONS.

        Prior to approval and ratification of the Plan by the stockholders of
the Company, the Stock Option Committee may grant "Conditional Options" under
the Plan. In addition, in the event that any amendment to the Plan requires
approval and ratification by the stockholders, then prior to such approval and
ratification the Stock Option Committee may grant Conditional Options under the
Plan. Conditional Options may be granted under the Plan only under the following
conditions: (a) a Conditional Option shall be clearly identified as a
Conditional

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<PAGE>

Option; (b) the grant of a Conditional Option shall be expressly
conditioned upon the approval and ratification of the Plan (or of the amendment
to the Plan, as the case may be) by the stockholders of the Company; (c) such
stockholder approval and ratification shall occur no later than the Annual
Meeting of Stockholders of the Company next following the effective date of the
Plan (or of the amendment to the Plan, as the case may be); and (d)
notwithstanding any other provision of the Plan, no holder of a Conditional
Option shall have any right to exercise such Option prior to such approval and
ratification of the Plan (or of the amendment to the Plan, as the case may be)
by the stockholders. Notwithstanding any other provision of the Plan, prior to
approval and ratification of the Plan (or of the amendment to the Plan, as the
case may be) by the stockholders of the Company, no holder of a Conditional
Option shall have any right to sell, assign, transfer, pledge or encumber the
Conditional Option, or the shares underlying the Conditional Option, except by
will or the laws of descent and distribution. If the stockholders of the Company
fail to approve and ratify the Plan (or the amendment to the Plan, as the case
may be) at such Annual Meeting of Stockholders, then all Conditional Options
granted hereunder conditioned upon such approval and ratification shall be
automatically cancelled and shall immediately become null and void.

19.     AMENDMENT OF PLAN.

        The Plan may be amended at any time by the Board of Directors, provided
that (except for amendments made pursuant to Section 5) no amendment made
without the approval and ratification of the stockholders of the Company shall
increase the total number of shares which may be issued under Options granted
pursuant to the Plan, reduce the minimum option price, extend the latest date
upon which Options may be granted or shall be exercisable, change the class of
employees eligible to be granted Options, or otherwise materially increase the
benefits accruing to participants under the Plan.

20.     NO RESERVATION OF SHARES.

        The Company shall be under no obligation to reserve shares of Class A
Common Stock or other securities to satisfy the exercise of Options. The grant
of Options hereunder shall not be construed as constituting the establishment of
a trust of such shares, and no particular shares shall be identified as optioned
or reserved for issuance hereunder. The Company shall have complied with the
terms of the Plan if, at the time of its delivery of shares upon the exercise of
any Option, it has a sufficient number of shares authorized and unissued, or
issued and held in its treasury, which may then be delivered under the Plan,
irrespective of the date on which such shares were authorized.

21.     APPLICATION OF PROCEEDS.

        The proceeds of the sale of shares of Class A Common Stock by the
Company under the Plan will constitute general funds of the Company and may be
used by the Company for any purpose.

22.     CHOICE OF LAW.

        The validity, interpretation and administration of the Plan and of any
rules, regulations, determinations or decisions made hereunder, and the rights
of any and all persons having or

                                       9
<PAGE>

claiming to have any interest herein or hereunder, shall be determined
exclusively in accordance with the laws of the State of Delaware (without regard
to the choice of law provisions of such laws).

23.     RULE 16b-3 QUALIFICATION.

        Some or all of the Options granted under the Plan are intended to
qualify under Rule 16b-3 promulgated under the Exchange Act.

24.     PER PERSON LIMITATIONS.

        In each calendar year, no one participant in the Plan shall be granted
Options under the Plan with respect to more than 450,000 shares of Class A
Common Stock (subject to adjustment pursuant to Section 5).

25.     IN GENERAL.

         (a) As used herein, the masculine pronoun shall include the feminine
and the neuter, as appropriate to the context.

         (b) As used herein, the term "Section" shall mean the appropriate
Section of the Plan.

26.     CANCELLATION AND RESCISSION OF AWARDS.

         (a) The Stock Option Committee shall have the authority, in its
discretion and without limitation, to include in such agreements evidencing
Options as it determines appropriate a provision that permits the Company to (i)
cancel all unexercised Options granted to an Option grantee who enters into
Competition (as hereinafter defined), and (ii) rescind the exercise of any
Options exercised by an Option grantee (or his permitted transferee) within six
months before the date that such Option grantee enters into Competition, if (x)
the Option grantee voluntarily terminates his or her employment with the
Company, or (y) the Company terminates the Option grantee's employment because
the Option grantee has cooperated with a competitor of the Company contrary to
the best interests of the Company.

         (b) As used herein, the term "Competition" means the Option grantee's
participation, whether as employee, consultant, investor or otherwise, directly
or indirectly in any business which is or becomes competitive with the business
of the Company or any of its affiliates. For the purpose of determining whether
an Option grantee has engaged in Competition, or has cooperated with a
competitor of the Company contrary to the best interests of the Company, the
judgment of the chief executive officer of the Company shall prevail. For an
Option grantee whose employment with the Company has terminated, the judgment of
the chief executive officer shall be based on that person's position and
responsibilities while employed by the Company, his or her post-employment
responsibilities and position with the other business, the extent of past,
current and potential competition or conflict between the Company and the other
business, the effect on the Company's customers, suppliers and competitors, and
such other considerations as are deemed relevant by the chief executive officer
given the applicable facts and circumstances.

                                       10
<PAGE>

         (c) In the event that the chief executive officer so determines that an
Option grantee has engaged in Competition, or has cooperated with a competitor
of the Company contrary to the best interests of the Company, the Company shall
have the discretion to cancel all unexercised Options granted to the Option
grantee and to rescind all Options exercised within six months before the date
that the Option grantee entered into Competition (or so cooperated with a
competitor). In the case of cancellation of an unexercised Option, the
cancellation shall be effective upon the giving of written notification of
cancellation to the Option grantee, which notice shall be given within the
period during which such Option would, by its terms, otherwise be exercisable.
In the case of rescission, the Company shall notify the Option grantee in
writing of any such rescission within six months after the date of termination
of employment with the Company. Within ten days after receiving such notice from
the Company, the Option grantee (or his permitted transferee) shall pay to the
Company the amount of any gain realized or payment received as a result of the
rescinded exercise. Such payment shall be made either in cash or by returning to
the Company the number of shares of Class A Common Stock that the Option grantee
(or his permitted transferee) received in connection with the rescinded
exercise.

         (d) The written agreement evidencing the Options to be subject to the
provisions of this Section 26 shall also include a covenant that during the term
of the Option grantee's employment with the Company and for six months following
termination of such employment, the Option grantee shall not engage in
Competition. Such provision shall also state that the Company will be entitled
to bring an action at law or equity to enforce the terms of such covenant.

         (e) Notwithstanding any other provision hereof to the contrary, a
retired Option grantee will not be deemed to be engaged in Competition if he or
she purchases as an investment or otherwise, stock or other securities of a
competitor business so long as such business is listed upon a recognized
securities exchange or traded over-the-counter, and such investment does not
represent a greater than five percent equity interest in the business.

                                    * * * * *

                                       11

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