Document:

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                                                                   EXHIBIT 10.32

                          CONCORD COMMUNICATIONS, INC.

           MANAGEMENT AGREEMENT BETWEEN THE COMPANY AND JOHN HAMILTON

May 6, 2002

Mr. John Hamilton
400 Nickerson Road
Marlboro, MA 01752

Dear John:

The purpose of this letter agreement is to memorialize the terms and conditions
under which your employment with Concord Communications, Inc. ("Concord") will
terminate. In consideration for Concord agreeing to these terms and conditions,
you agree to execute this letter agreement on or before May 28, 2002. By signing
and returning this letter agreement to Concord, you agree to the terms and
conditions set forth in the numbered paragraphs below, including the release of
claims set forth in paragraph 3. Therefore, you are advised to consult with your
attorney before signing this letter and you may take up to twenty one (21) days
to do so. If you sign this letter, you may change your mind and revoke your
agreement during the seven (7) day period after you have signed it. If you do
not so revoke, this letter will become a legally binding agreement between you
and the Company upon the expiration of the seven (7) day revocation period.

If you choose not to sign this letter by May 28, 2002 or revoke this letter
agreement as described above, your employment will terminate on May 28, 2002 and
you will not receive any benefits from the Company after that date. You will,
however, receive payment on that date for any unused vacation time accrued
through the termination date. Also, regardless of signing this letter, you may
elect to continue receiving group medical/dental insurance pursuant to the
federal "COBRA" law, 29 U.S.C. ss. 1161 ET SEQ. All premium costs shall be paid
by you on a monthly basis for as long as, and to the extent that, you remain
eligible for COBRA continuation. You should consult the COBRA materials to be
provided by the Company for details regarding these benefits. If you choose not
to sign this letter agreement, or revoke this letter agreement in the next seven
days, all other benefits, including life insurance and long-term disability,
will cease upon your termination date.The following numbered paragraphs set
forth the terms and conditions which will apply if you timely sign and return
this letter agreement and do not revoke it within the seven (7) day period:

1.       TERMINATION DATE - Your effective date of termination from the Company
         is November 6, 2002 (the "Termination Date"). From the date of this
         letter agreement until the termination date, you will be employed by
         Concord under the position title of Consultant. Effective on the date
         of this letter, you will no longer be an officer of Concord. Your stock
         options will continue to vest until the Termination Date. You agree
         that you will take no action that will cause Concord, any of its
         subsidiaries or officers or directors to be legally bound. In addition,
         you will make yourself available should Concord deem your testimony
         necessary or advisable in connection with any pending or threatened
         litigation.

2.       DESCRIPTION OF SEVERANCE BENEFITS - The severance benefits paid to you
         if you timely sign and return this letter are described in Attachment A
         to this letter agreement.

3.       RELEASE - In  consideration  for Concord agreeing to the terms of this
         letter agreement (and providing the benefits contained in Attachment
         A), which includes payment of benefits which you acknowledge you would
         not otherwise be entitled to receive, you hereby fully, forever,
         irrevocably and unconditionally releases, remises and discharges the
         Company, its officers, directors, stockholders, corporate affiliates,
         and subsidiaries, agents and employees from any and all claims,
         charges, complaints, demands, actions, causes of action, suits,
         rights, debts, sums of money, costs, accounts, reckonings, covenants,
         contracts, agreements, promises, doings, omissions, damages,
         executions,

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         obligations, liabilities, and expenses (including attorneys' fees and
         costs), of every kind and nature which you ever had or now have
         against the Company, its officers, directors, stockholders, corporate
         affiliates, subsidiaries and parent companies, agents and employees
         arising out of your employment with or separation from the Company
         including, but not limited to, all employment discrimination claims
         under Title VII of the Civil Rights Act of 1964, 42 U.S.C.ss.2000e ET
         SEQ., the Age Discrimination in Employment Act, 29 U.S.C.,ss.621 ET
         SEQ., the Americans With Disabilities Act of 1990, 42 U.S.C.,ss.12101
         ET SEQ., and the Massachusetts Fair Employment Practices Act, M.G.L.
         c.151B,ss.1 ET SEQ., all as amended, and all claims arising out of the
         Fair Credit Reporting Act, 15 U.S.C.ss.1681 ET SEQ., the Employee
         Retirement Income Security Act of 1974 ("ERISA"), 29 U.S.C.ss.1001 ET
         SEQ., the Massachusetts Civil Rights Act, M.G.L. c.12ss.ss.11H and
         11I, the Massachusetts Equal Rights Act, M.G.L. c.93ss.102 and M.G.L.
         c.214,ss.1C, the Massachusetts Labor and Industries Act, M.G.L. c.
         149,ss.1 ET SEQ., and the Massachusetts Privacy Act, M.G.L.
         c.214,ss.1B, all as amended, and all common law claims including, but
         not limited to, actions in tort, defamation and breach of contract,
         and any claim or damage arising out of your employment with or
         separation from the Company (including a claim for retaliation) under
         any common law theory or any federal, state or local ordinance not
         expressly referenced above.

4.       NON-DISCLOSURE AND NON-COMPETITION - You acknowledge your obligation to
         keep confidential all non-public information concerning the Company
         which you acquired during the course of your employment with the
         Company, as stated more fully in the non-disclosure agreement you
         executed at the inception of your employment which remains in full
         force and effect. You further acknowledge and reaffirm your obligations
         under the non-competition agreement you previously executed for the
         benefit of the Company at the inception of your employment which also
         remains in full force and effect (see attached).

5.       RETURN OF COMPANY PROPERTY - You confirm that you have returned to the
         Company all keys, files, records (and copies thereof), equipment and
         other Company-owned property in your possession (see attachment A). You
         further agree to leave intact all electronic Company documents,
         including those which you developed or help develop during your
         employment.

6.       NON-DISPARAGEMENT - You understand and agree that as a condition for
         payment to you of the consideration herein described, you shall not
         make any false, disparaging or derogatory statements to any media
         outlet, industry group, financial institution or current or former
         employee, consultant, client or customer of the Company regarding the
         Company or any of its directors, officers, employees, agents or
         representatives or about the Company's business affairs and financial
         condition.

7.       AMENDMENT - This letter agreement shall be binding upon the parties and
         may not be modified in any manner, except by an instrument in writing
         of concurrent or subsequent date signed by duly authorized
         representatives of the parties hereto. This letter agreement is binding
         upon and shall inure to the benefit of the parties and their respective
         agents, assigns, heirs, executors, successors and administrators.

8.       WAIVER OF RIGHTS - No delay or omission by the Company in exercising
         any right under this letter agreement shall operate as a waiver of that
         or any other right. A waiver or consent given by the Company on any one
         occasion shall be effective only in that instance and shall not be
         construed as a bar or waiver of any right on any other occasion.

9.       VALIDITY - Should any provision of this letter agreement be declared or
         be determined by any court of competent jurisdiction to be illegal or
         invalid, the validity of the remaining parts, terms or provisions shall
         not be affected thereby and said illegal or invalid part, term or
         provision shall be deemed not to be a part of this letter agreement.

10.      CONFIDENTIALITY - To the extent permitted by law, you understand and
         agree that as a condition for payment to you of the severance benefits
         herein described, the terms and contents of this letter agreement, and
         the contents of the negotiations and discussions resulting in this
         letter agreement, shall be maintained as confidential by you and your
         agents and representatives and shall not be disclosed to any third
         party except to the extent required by federal or state law or as
         otherwise agreed to in writing by the Company.

11.      NATURE OF AGREEMENT - You understand and agree that this letter
         agreement is a severance agreement and does not constitute an admission
         of liability or wrongdoing on the part of the Company.

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12.      ACKNOWLEDGMENTS - You acknowledge that you have been given at least
         twenty one (21) days to consider this letter agreement, including
         Attachment A, and that the Company advised you to consult with an
         attorney of your own choosing prior to signing this letter agreement.
         You understand that you may revoke this letter agreement by giving
         written notice received by the VP, Human Resources, for a period of
         seven (7) days after you sign this letter agreement, and the letter
         agreement shall not be effective or enforceable until the expiration of
         this seven (7) day revocation period.

13.      VOLUNTARY ASSENT - You affirm that no other promises or agreements of
         any kind have been made to or with you by any person or entity
         whatsoever to cause you to sign this letter agreement, and that you
         fully understand the meaning and intent of this letter agreement. You
         state and represent that you have had an opportunity to fully discuss
         and review the terms of this letter agreement, including Attachment A,
         with an attorney. You further state and represent that you have
         carefully read this letter agreement, including Attachment A,
         understand the contents herein, freely and voluntarily assent to all of
         the terms and conditions hereof, and sign your name of your own free
         act.

14.      APPLICABLE LAW - This agreement shall be interpreted and construed by
         the laws of the Commonwealth of Massachusetts, without regard to
         conflict of laws provisions. You hereby irrevocably submit to and
         acknowledge and recognize the jurisdiction of the courts of the
         Commonwealth of Massachusetts, or if appropriate, a federal court
         located in Massachusetts (which courts, for purposes of this agreement,
         are the only courts of competent jurisdiction), over any suit, action
         or other proceeding arising out of, under or in connection with this
         letter agreement or the subject matter hereof.

15.      ENTIRE AGREEMENT - This letter agreement, including Attachment A,
         contains and constitutes the entire understanding and agreement between
         the parties hereto with respect to your severance benefits and the
         settlement of claims against the Company and cancels all previous oral
         and written negotiations, agreements, commitments, writings in
         connection therewith.

If you have any questions about the matters covered in this letter, please call
Melissa Cruz.
                                        Sincerely,

                                        By: /s/ Melissa Cruz
                                            ------------------------------------
                                            Melissa Cruz
                                            Executive Vice President and CFO

I hereby agree to the terms and conditions set forth above and in Attachment A.
I have been given at least twenty one (21) days to consider this letter
agreement (including Attachment A) and I have chosen to execute this on the date
below. I intend that this letter agreement will become a binding agreement
between me and the Company if I do not revoke my acceptance in seven (7) days.

/s/ John F. Hamilton                    Date 5/6/02
-----------------------------           --------------------------------------

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                                  ATTACHMENT A

         Termination of employment with Concord Communications, Inc. (the
"Company") will be effective November 6, 2002. Your final paycheck will be paid
on November 15, 2002. Concord will pay you for the period from May 6, 2002 to
November 6, 2002 at an annualized base salary rate of $190,000, provided however
that this base salary rate will increase to $210,000 (annualized) on July 1,
2002. In addition, Concord Communications, Inc. will pay your severance as
described in the paragraph entitled "Severance" below, payable with the normal
payroll cycle. You will receive commissions at your normal commission rate for
the period up to May 6, 2002. You will receive no commissions or payment of any
kind after May 6, 2002 except as expressly described in the letter agreement or
this attachment.

SEVERANCE. Effective on the Termination Date (November 6, 2002), Concord will
pay to you your regular base salary (annualized at $210,000) until such time as
you have accepted employment; provided that such amounts will in no event be
less than one month's base salary, nor more than six (6) months' base salary.
You agree to notify Concord immediately upon acceptance of employment. All
amounts will be payable on the normal payroll cycle. Please note that, in order
to receive the severance, the attached Release must be signed. Any payments made
to you under this paragraph are subject to applicable, if any, federal, state
and local withholding, payroll and other taxes. Provided that you sign the
letter agreement and the release included in that document, you will receive the
medical, dental and other benefits normally provided to Concord employees from
the date of this letter until the termination of your payments from Concord.

Please be advised that all property of the Company must be returned to Concord
immediately including, without limitation, all computer equipment, computer
accessories, client database, demonstration software, business cards, software
programs, keys, credit cards, customer lists, price lists, promotional
materials, files, reports, data memoranda, sales brochures, telephone charge
cards, manuals, diskettes, business or marketing plans, and reports, which you
are holding or using or which are under your control. Please contact Tom Hopkins
at 508-303-4365 to make arrangements to return all materials and equipment.

Please submit any outstanding expense reports for approval by May 31,2002. All
expense reports will be processed immediately and reimbursement checks, if
required, will be mailed directly to your residence. If expense reports are not
submitted by that time, they may not be approved and processed timely.

Contingent upon signing the attached release, your medical insurances (if
applicable) will continue through the severance period. You will receive
separate notification of your eligibility for COBRA insurance continuation.

Please contact Dan Williams no later than 60 days from the termination date
regarding your stock options, if applicable. Please contact Cara Leger no later
than 60 days from your termination date regarding your 401(k) plan, if
applicable.

In addition, please be informed that your obligations under the Employee
Confidentiality Agreement, which you signed on your first date of employment,
shall survive the termination of your employment regardless of the manner of
such termination and shall be binding upon your heirs, assigns, personal
representatives, executors, and administrators.

                                       41<PAGE>
                                                                     EXHIBIT 4.3

                                 PRESSTEK, INC.

                       2002 EMPLOYEE STOCK PURCHASE PLAN

ARTICLE 1 -- PURPOSE.

     This 2002 Employee Stock Purchase Plan (the "Plan") is intended to
encourage stock ownership by all eligible employees of Presstek, Inc. (the
"Company"), a Delaware corporation, and its participating subsidiaries (as
defined in Article 18) so that they may share in the growth of the Company by
acquiring or increasing their proprietary interest in the Company. The Plan is
designed to encourage eligible employees to remain in the employ of the Company
and its participating subsidiaries. The Plan is intended to constitute an
"employee stock purchase plan" within the meaning of Section 423(b) of the
Internal Revenue Code of 1986, as amended (the "Code").

ARTICLE 2 -- ADMINISTRATION OF THE PLAN.

     The Plan may be administered by a committee appointed by the Board of
Directors of the Company (the "Committee"). The Committee shall consist of not
less than two members of the Company's Board of Directors. The Board of
Directors may from time to time remove members from, or add members to, the
Committee. Vacancies on the Committee, howsoever caused, shall be filled by the
Board of Directors. The Committee may select one of its members as Chairman, and
shall hold meetings at such times and places as it may determine. Acts by a
majority of the Committee, or acts reduced to or approved in writing by a
majority of the members of the Committee, shall be the valid acts of the
Committee.

     The interpretation and construction by the Committee of any provisions of
the Plan or of any option granted under it shall be final, unless otherwise
determined by the Board of Directors. The Committee may from time to time adopt
such rules and regulations for carrying out the Plan as it may deem best,
provided that any such rules and regulations shall be applied on a uniform basis
to all employees under the Plan. No member of the Board of Directors or the
Committee shall be liable for any action or determination made in good faith
with respect to the Plan or any option granted under it.

     In the event the Board of Directors fails to appoint or refrains from
appointing a Committee, the Board of Directors shall have all power and
authority to administer the Plan. In such event, the word "Committee" wherever
used herein shall be deemed to mean the Board of Directors.

ARTICLE 3 -- ELIGIBLE EMPLOYEES.

     All employees of the Company or any of its participating subsidiaries whose
customary employment is more than 20 hours per week and for more than five
months in any calendar year shall be eligible to receive options under the Plan
to purchase common stock of the Company, and all eligible employees shall have
the same rights and privileges hereunder. Persons who are eligible employees on
the first business day of any Payment Period (as defined in Article 5) shall
receive their options as of such day. Persons who become eligible employees
after any date on which options are granted under the Plan shall be granted
options on the first day of the next succeeding Payment Period on which options
are granted to eligible employees under the Plan. In no event, however, may an
employee be granted an option if such employee, immediately after the option was
granted, would be treated as owning stock possessing five percent or more of the
total combined voting power or value of all classes of stock of the Company or
of any parent corporation or subsidiary corporation, as the terms "parent
corporation" and "subsidiary corporation" are defined in Section 424(e) and (f)
of the Code. For purposes of determining stock ownership under this paragraph,
the rules of Section 424(d) of the Code shall apply, and stock which the
employee may purchase under outstanding options shall be treated as stock owned
by the employee.

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ARTICLE 4 -- STOCK SUBJECT TO THE PLAN.

     The stock subject to the options under the Plan shall be shares of the
Company's authorized but unissued common stock, par value $.01 per share (the
"Common Stock"), or shares of Common Stock reacquired by the Company, including
shares purchased in the open market. The aggregate number of shares of Common
Stock which may be issued pursuant to the Plan is 950,000 shares, subject to
adjustment as provided in Article 12. If any option granted under the Plan shall
expire or terminate for any reason without having been exercised in full or
shall cease for any reason to be exercisable in whole or in part, the
unpurchased shares subject thereto shall again be available under the Plan.

ARTICLE 5 -- PAYMENT PERIOD AND STOCK OPTIONS.

     The first Payment Period during which payroll deductions will be
accumulated under the Plan shall commence on October 1, 2002. The first Payment
Period shall end on December 31, 2002. For the remainder of the duration of the
Plan, Payment Periods shall consist of the three-month periods commencing on
January 1, April 1, July 1 and October 1 of each calendar year and ending on
March 31, June 30, September 30 and December 31 of each calendar year,
respectively.

     Four (4) times each year, on the first business day of each Payment Period,
the Company will grant to each eligible employee who is then a participant in
the Plan an option to purchase on the last day of such Payment Period, at the
Option Price hereinafter provided for, a maximum of 750 shares, on condition
that such employee remains eligible to participate in the Plan throughout the
remainder of such Payment Period. The participant shall be entitled to exercise
the option so granted only to the extent of the participant's accumulated
payroll deductions on the last day of such Payment Period. If the participant's
accumulated payroll deductions on the last day of the Payment Period would
enable the participant to purchase more than 750 shares but for the 750-share
limitation, the excess of the amount of the accumulated payroll deductions over
the aggregate purchase price of the 750 shares shall be promptly refunded to the
participant by the Company, without interest. The Option Price per share for
each Payment Period shall be the lesser of (i) 85% of the average market price
of the Common Stock on the first business day of the Payment Period or (ii) 85%
of the average market price of the Common Stock on the last business day of the
Payment Period, in either event rounded up to the nearest cent. The foregoing
limitation on the number of shares subject to option and the Option Price shall
be subject to adjustment as provided in Article 12.

     For purposes of the Plan, the term "average market price" on any date means
(i) the average (on that date) of the high and low prices of the Common Stock on
the principal national securities exchange on which the Common Stock is traded,
if the Common Stock is then traded on a national securities exchange; or (ii)
the last reported sale price (on that date) of the Common Stock on the NASDAQ
National Market, if the Common Stock is not then traded on a national securities
exchange; or (iii) the average of the closing bid and asked prices last quoted
(on that date) by an established quotation service for over-the-counter
securities, if the Common Stock is not reported on the NASDAQ National Market;
or (iv) if the Common Stock is not publicly traded, the fair market value of the
Common Stock as determined by the Committee after taking into consideration all
factors which it deems appropriate, including, without limitation, recent sale
and offer prices of the Common Stock in private transactions negotiated at arm's
length.

     For purposes of the Plan, the term "business day" means a day on which
there is trading on the NASDAQ National Market or the aforementioned national
securities exchange, whichever is applicable pursuant to the preceding
paragraph; and if neither is applicable, a day that is not a Saturday, Sunday or
legal holiday in the State of New Hampshire.

     No employee shall be granted an option which permits the employee's right
to purchase stock under the Plan, and under all other Section 423(b) employee
stock purchase plans of the Company and any parent or subsidiary corporations,
to accrue at a rate which exceeds $25,000 of fair market value of such stock
(determined on the date or dates that options on such stock were granted) for
each calendar year in which such option is outstanding at any time. The purpose
of the limitation in the preceding sentence is to comply with Section 423(b)(8)
of the Code. If the participant's accumulated payroll deductions on the last day
of the Payment Period would otherwise enable the participant to purchase Common
Stock in excess of the
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Section 423(b)(8) limitation described in this paragraph, the excess of the
amount of the accumulated payroll deductions over the aggregate purchase price
of the shares actually purchased shall be promptly refunded to the participant
by the Company, without interest.

ARTICLE 6 -- EXERCISE OF OPTION.

     Each eligible employee who continues to be a participant in the Plan on the
last day of a Payment Period shall be deemed to have exercised his or her option
on such date and shall be deemed to have purchased from the Company such number
of full shares of Common Stock reserved for the purpose of the Plan as the
participant's accumulated payroll deductions on such date will pay for at the
Option Price, subject to the 750-share limit of the option and the Section
423(b)(8) limitation described in Article 5. If the individual is not a
participant on the last day of a Payment Period, then he or she shall not be
entitled to exercise his or her option. Only full shares of Common Stock may be
purchased under the Plan. Unused payroll deductions remaining in a participant's
account at the end of a Payment Period by reason of the inability to purchase a
fractional share shall be carried forward to the next Payment Period.

ARTICLE 7 -- AUTHORIZATION FOR ENTERING THE PLAN.

     An employee may elect to enter the Plan by filling out, executing
(including by electronic or other means) and delivering to the Company or its
representative an authorization:

          A.  Stating the percentage to be deducted regularly from the
     employee's pay;

          B.  Authorizing the purchase of stock for the employee in each Payment
     Period in accordance with the terms of the Plan; and

          C.  Specifying the exact name or names in which stock purchased for
     the employee is to be issued as provided under Article 11 hereof.

     Such authorization must be received by the Company or its representative at
least ten days before the first day of the next succeeding Payment Period and
shall take effect only if the employee is an eligible employee on the first
business day of such Payment Period.

     Unless a participant files a new authorization or withdraws from the Plan,
the deductions and purchases under the authorization the participant has on file
under the Plan will continue from one Payment Period to succeeding Payment
Periods as long as the Plan remains in effect.

     The Company will accumulate and hold for each participant's account the
amounts deducted from his or her pay. No interest will be paid on these amounts.

ARTICLE 8 -- MAXIMUM AMOUNT OF PAYROLL DEDUCTIONS.

     An employee may authorize payroll deductions in an amount (expressed as a
whole percentage) not less than one percent (1%) but not more than ten percent
(10%) of the employee's total compensation, including base pay or salary and any
overtime, bonuses or commissions.

ARTICLE 9 -- CHANGE IN PAYROLL DEDUCTIONS.

     Deductions may not be increased or decreased during a Payment Period.
However, a participant may withdraw in full from the Plan.

ARTICLE 10 -- WITHDRAWAL FROM THE PLAN.

     A participant may withdraw from the Plan (in whole but not in part) at any
time prior to the last day of a Payment Period by delivering a withdrawal notice
to the Company or its representative.

     To re-enter the Plan, an employee who has previously withdrawn must file a
new authorization at least ten days before the first day of the next Payment
Period in which he or she wishes to participate. The

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employee's re-entry into the Plan becomes effective at the beginning of such
Payment Period, provided that he or she is an eligible employee on the first
business day of the Payment Period.

ARTICLE 11 -- ISSUANCE OF STOCK.

     Certificates for stock issued to participants shall be delivered as soon as
practicable after each Payment Period by the Company's transfer agent.

     Stock purchased under the Plan shall be issued only in the name of the
participant, or if the participant's authorization so specifies, in the name of
the participant and another person of legal age as joint tenants with rights of
survivorship.

ARTICLE 12 -- ADJUSTMENTS.

     Upon the happening of any of the following described events, a
participant's rights under options granted under the Plan shall be adjusted as
hereinafter provided:

          A.  In the event that the shares of Common Stock shall be subdivided
     or combined into a greater or smaller number of shares or if, upon a
     reorganization, split-up, liquidation, recapitalization or the like of the
     Company, the shares of Common Stock shall be exchanged for other securities
     of the Company, each participant shall be entitled, subject to the
     conditions herein stated, to purchase such number of shares of Common Stock
     or amount of other securities of the Company as were exchangeable for the
     number of shares of Common Stock that such participant would have been
     entitled to purchase except for such action, and appropriate adjustments
     shall be made in the purchase price per share to reflect such subdivision,
     combination or exchange; and

          B.  In the event the Company shall issue any of its shares as a stock
     dividend upon or with respect to the shares of stock of the class which
     shall at the time be subject to option hereunder, each participant upon
     exercising such an option shall be entitled to receive (for the purchase
     price paid upon such exercise) the shares as to which the participant is
     exercising his or her option and, in addition thereto (at no additional
     cost), such number of shares of the class or classes in which such stock
     dividend or dividends were declared or paid, and such amount of cash in
     lieu of fractional shares, as is equal to the number of shares thereof and
     the amount of cash in lieu of fractional shares, respectively, which the
     participant would have received if the participant had been the holder of
     the shares as to which the participant is exercising his or her option at
     all times between the date of the granting of such option and the date of
     its exercise.

     Upon the happening of any of the foregoing events, the class and aggregate
number of shares set forth in Article 4 hereof which are subject to options
which have been or may be granted under the Plan and the limitations set forth
in the second paragraph of Article 5 shall also be appropriately adjusted to
reflect the events specified in paragraphs A and B above. Notwithstanding the
foregoing, any adjustments made pursuant to paragraphs A or B shall be made only
after the Committee, based on advice of counsel for the Company, determines
whether such adjustments would constitute a "modification" (as that term is
defined in Section 424 of the Code). If the Committee determines that such
adjustments would constitute a modification, it may refrain from making such
adjustments.

     If the Company is to be consolidated with or acquired by another entity in
a merger, a sale of all or substantially all of the Company's assets or
otherwise (an "Acquisition"), the Committee or the board of directors of any
entity assuming the obligations of the Company hereunder (the "Successor Board")
shall, with respect to options then outstanding under the Plan, either (i) make
appropriate provision for the continuation of such options by arranging for the
substitution on an equitable basis for the shares then subject to such options
either (a) the consideration payable with respect to the outstanding shares of
the Common Stock in connection with the Acquisition, (b) shares of stock of the
successor corporation, or a parent or subsidiary of such corporation, or (c)
such other securities as the Successor Board deems appropriate, the fair market
value of which shall not materially exceed the fair market value of the shares
of Common Stock subject to such options immediately preceding the Acquisition;
(ii) terminate each participant's options in

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exchange for a cash payment equal to the excess of (a) the fair market value on
the date of the Acquisition, of the number of shares of Common Stock that the
participant's accumulated payroll deductions as of the date of the Acquisition
could purchase, at an option price determined with reference only to the first
business day of the applicable Payment Period and subject to the 750-share, Code
Section 423(b)(8) and fractional-share limitations on the amount of stock a
participant would be entitled to purchase, over (b) the result of multiplying
such number of shares by such option price; or (iii) make such other equitable
adjustments as the Committee or the Successor Board may deem appropriate after
review of all relevant factors including, without limitation, circumstances
surrounding the Acquisition.

     The Committee or Successor Board shall determine the adjustments to be made
under this Article 12, and its determination shall be conclusive.

ARTICLE 13 -- COMPANY'S RIGHT OF REPURCHASE.

     A. If any of the events specified in Article 13(B) below occur, then, with
respect to shares of Common Stock acquired by a participant upon the exercise of
an option granted under this Plan, the Company shall have the right, but not the
obligation, for a period of forty five (45) days after the Company receives
actual knowledge of the event, but in any event not later than one (1) year
after the participant ceases to be an employee (the "Repurchase Period"), to
repurchase from the participant, or his or her legal representative, as the case
may be, all or a portion of the shares of Common Stock acquired by such
participant under this Plan, regardless of whether such participant is then
still an employee of the Company (the "Repurchase Option"). The Repurchase
Option shall be exercised by the Company by giving the participant, or his or
her legal representative, written notice of its intention to exercise the
Repurchase Option on or before the last day of the Repurchase Period. The
Company may exercise its Repurchase Option by tendering to the participant, or
his or her legal representative, or delivering to an escrow account for the
benefit of the participant, or his or legal representative, an amount equal to
the Option Price, subject to adjustment as provided in Article 12, for each
share of Common Stock to be repurchased by the Company hereunder. Upon timely
exercise of the Repurchase Option in the manner provided in this Article 13(A),
the participant, or his or her legal representative, shall deliver to the
Company the stock certificate or certificates representing the shares purchased
by the participant under this Plan and to be repurchased by the Company
hereunder, duly endorsed and free and clear of any and all liens, charges and
encumbrances. If the participant shall fail to deliver such stock certificate or
certificates, the Company shall be entitled to instruct its transfer agent to
take such action as may be necessary to remove the requisite number of shares of
Common Stock registered in the name of the participant from the books and
records of the Company. The Repurchase Option and any right of the Company to
payment pursuant to Article 13(C) hereof shall be a right of the Company in
addition to any and all other rights of the Company and remedies available to
the Company, whether at law or in equity.

     B. The Company shall have the Repurchase Option in the event that any of
the following events shall occur:

          (i) gross misconduct by the participant which results in loss, damage
     or injury to the Company, its goodwill, business or reputation or that of
     any participating subsidiary;

          (ii) the commission of an act of embezzlement, fraud or breach of
     fiduciary duty which results in loss, damage or injury to the Company, its
     goodwill, business or reputation or that of any participating subsidiary;

          (iii) the unauthorized disclosure or misappropriation of any trade
     secret or confidential information of the Company or any participating
     subsidiary or any third party who has a business relationship with the
     Company or any participating subsidiary;

          (iv) the commission of an act which induces any customer or
     prospective customer of the Company or any participating subsidiary to
     breach a contract with the Company or any participating subsidiary or to
     decline to do business with the Company or any participating subsidiary;

          (v) the conviction of the participant of a felony which materially
     interferes with such participant's ability to perform his or her services
     for the Company or any participating subsidiary or which results in

                                       5
<PAGE>

     loss, damage or injury to the Company, its goodwill, business or reputation
     or that of any participating subsidiary;

          (vi) the violation (or threatened violation) by the participant, in
     any material respect, of a non-competition, non-solicitation,
     non-disclosure or assignment of inventions covenant between the participant
     and the Company or any participating subsidiary;

          (vii) the engagement, whether directly or indirectly, by the
     participant during the period of his or her employment or for a period of
     one (1) year after the termination of his or her employment (for any
     reason), in a business or other commercial activity which is or may be
     competitive with the business being conducted by the Company or any
     participating subsidiary at the time of the participant's termination of
     employment;

          (viii) the solicitation, diversion or taking away by the participant,
     or the attempted solicitation, diversion or taking away by the participant,
     whether directly or indirectly, during the period of his or her employment
     or for a period of one (1) year after the termination of his or her
     employment (for any reason), of any of the customers, business or
     prospective customers of the Company or any participating subsidiary in
     existence at the time of the participant's termination of employment and
     with whom the participant had contact or about whom the participant gained
     confidential information during the participant's employment with the
     Company. Prospective customer shall mean any person or entity being
     solicited by the Company or any participating subsidiary at the time of the
     participant's termination of employment; or

          (ix) the solicitation, recruiting or hiring by the participant, or the
     attempted solicitation, recruiting, or hiring by the participant, whether
     directly or indirectly, during the period of his or her employment or for a
     period of one (1) year after the termination of his or her employment (for
     any reason), of any employee of the Company or any participating
     subsidiary.

     C. In the event that at the time the Company wishes to exercise its
Repurchase Option, the participant ceases to own a sufficient number of shares
of Common Stock acquired by him or her under the Plan to satisfy the Company's
Repurchase Option, in addition to performing any obligations necessary to
satisfy the Company's exercise of its Repurchase Option of those shares of
Common Stock available for repurchase, the participant shall be required to
deliver to the Company, for each share of Common Stock that is the subject of
the Repurchase Option and is not available for repurchase as it has been sold or
transferred, an aggregate cash amount, if positive, equal to the difference
between the fair market value of each share of Common Stock sold or transferred
by the participant and the Option Price for each share of Common Stock so sold
or transferred by the participant, as adjusted in Article 12. The fair market
value of each share of Common Stock sold or transferred by the participant shall
be determined as of the date of sale or transfer.

ARTICLE 14 -- NO TRANSFER OR ASSIGNMENT OF EMPLOYEE'S RIGHTS.

     Any option granted under this Plan may not be transferred or assigned by
the participant except according to the laws of descent and distribution. During
the participant's lifetime, any option granted under this Plan may be exercised
only by the participant.

ARTICLE 15 -- TERMINATION OF EMPLOYEE'S RIGHTS.

     Whenever a participant ceases to be an eligible employee because of
retirement, voluntary or involuntary termination, resignation, layoff, discharge
or for any other reason (other than death), his or her rights under the Plan
shall immediately terminate, and the Company shall promptly refund, without
interest, the entire balance of his or her payroll deduction account under the
Plan. Notwithstanding the foregoing, eligible employment shall be treated as
continuing intact while a participant is on military leave, sick leave or other
bona fide leave of absence, for up to 90 days, or for so long as the
participant's right to re-employment is guaranteed either by statute or by
contract, if longer than 90 days. Neither this Plan nor any action taken
hereunder shall be construed as giving any participant any right to be retained
in the employ of the Company or any participating subsidiary.

                                       6
<PAGE>

     If a participant's payroll deductions are interrupted by any legal process,
a withdrawal notice will be considered as having been received from the
participant on the day the interruption occurs.

ARTICLE 16 -- TERMINATION AND AMENDMENTS TO PLAN.

     Unless terminated sooner as provided below, the Plan shall terminate on
December 31, 2011. The Plan may be terminated at any time by the Company's Board
of Directors but such termination shall not affect options then outstanding
under the Plan. It will terminate in any case when all or substantially all of
the unissued shares of stock reserved for the purposes of the Plan have been
purchased. If at any time shares of stock reserved for the purpose of the Plan
remain available for purchase but not in sufficient number to satisfy all then
unfilled purchase requirements, the available shares shall be apportioned among
participants in proportion to the amount of payroll deductions accumulated on
behalf of each participant that would otherwise be used to purchase stock, and
the Plan shall terminate. Upon such termination or any other termination of the
Plan, all payroll deductions not used to purchase stock will be refunded,
without interest.

     The Committee or the Board of Directors may from time to time adopt
amendments to the Plan provided that, without the approval of the stockholders
of the Company, no amendment may (i) increase the number of shares that may be
issued under the Plan; (ii) change the class of employees eligible to receive
options under the Plan, if such action would be treated as the adoption of a new
plan for purposes of Section 423(b) of the Code; or (iii) cause Rule 16b-3 under
the Securities Exchange Act of 1934 to become inapplicable to the Plan.

ARTICLE 17 -- LIMITS ON SALE OF STOCK PURCHASED UNDER THE PLAN.

     The Plan is intended to provide shares of Common Stock for investment and
not for resale. The Company does not, however, intend to restrict or influence
any employee in the conduct of his or her own affairs. An employee may,
therefore, sell stock purchased under the Plan at any time the employee chooses,
subject to compliance with any applicable federal or state securities laws, the
Company's Insider Trading Policy then in effect and subject to any restrictions
imposed under Article 22 to ensure that tax withholding obligations are
satisfied. THE EMPLOYEE ASSUMES THE RISK OF ANY MARKET FLUCTUATIONS IN THE PRICE
OF THE STOCK.

ARTICLE 18 -- PARTICIPATING SUBSIDIARIES.

     The term "participating subsidiary" shall mean any present or future
subsidiary of the Company, as that term is defined in Section 424(f) of the
Code, which is designated from time to time by the Board of Directors to
participate in the Plan. The Board of Directors shall have the power to make
such designation before or after the Plan is approved by the stockholders.

ARTICLE 19 -- OPTIONEES NOT STOCKHOLDERS.

     Neither the granting of an option to an employee nor the deductions from
his or her pay shall constitute such employee a stockholder of the shares
covered by an option until such shares have been actually purchased by the
employee.

ARTICLE 20 -- APPLICATION OF FUNDS.

     The proceeds received by the Company from the sale of Common Stock pursuant
to options granted under the Plan will be used for general corporate purposes.

ARTICLE 21 -- NOTICE TO COMPANY OF DISQUALIFYING DISPOSITION.

     By electing to participate in the Plan, each participant agrees to notify
the Company in writing immediately after the participant transfers Common Stock
acquired under the Plan, if such transfer occurs within two years after the
first business day of the Payment Period in which such Common Stock was
acquired. Each participant further agrees to provide any information about such
a transfer as may be requested

                                       7
<PAGE>

by the Company or any subsidiary corporation in order to assist it in complying
with the tax laws. Such dispositions generally are treated as "disqualifying
dispositions" under Sections 421 and 424 of the Code, which have certain tax
consequences to participants and to the Company and its participating
subsidiaries.

ARTICLE 22 -- WITHHOLDING OF ADDITIONAL TAXES.

     By electing to participate in the Plan, each participant acknowledges that
the Company and its participating subsidiaries are required to withhold taxes
with respect to the amounts deducted from the participant's compensation and
accumulated for the benefit of the participant under the Plan, and each
participant agrees that the Company and its participating subsidiaries may
deduct additional amounts from the participant's compensation, when amounts are
added to the participant's account, used to purchase Common Stock or refunded,
in order to satisfy such withholding obligations. Each participant further
acknowledges that when Common Stock is purchased under the Plan the Company and
its participating subsidiaries may be required to withhold taxes with respect to
all or a portion of the difference between the fair market value of the Common
Stock purchased and its purchase price, and each participant agrees that such
taxes may be withheld from compensation otherwise payable to such participant.
It is intended that tax withholding will be accomplished in such a manner that
the full amount of payroll deductions elected by the participant under Article 7
will be used to purchase Common Stock. However, if amounts sufficient to satisfy
applicable tax withholding obligations have not been withheld from compensation
otherwise payable to any participant, then, notwithstanding any other provision
of the Plan, the Company may withhold such taxes from the participant's
accumulated payroll deductions and apply the net amount to the purchase of
Common Stock, unless the participant pays to the Company, prior to the exercise
date, an amount sufficient to satisfy such withholding obligations. Each
participant further acknowledges that the Company and its participating
subsidiaries may be required to withhold taxes in connection with the
disposition of stock acquired under the Plan and agrees that the Company or any
participating subsidiary may take whatever action it considers appropriate to
satisfy such withholding requirements, including deducting from compensation
otherwise payable to such participant an amount sufficient to satisfy such
withholding requirements or conditioning any disposition of Common Stock by the
participant upon the payment to the Company or such subsidiary of an amount
sufficient to satisfy such withholding requirements.

ARTICLE 23 -- GOVERNMENTAL REGULATIONS.

     The Company's obligation to sell and deliver shares of Common Stock under
the Plan is subject to the approval of any governmental authority required in
connection with the authorization, issuance or sale of such shares.

     Government regulations may impose reporting or other obligations on the
Company with respect to the Plan. For example, the Company may be required to
identify shares of Common Stock issued under the Plan on its stock ownership
records and send tax information statements to employees and former employees
who transfer title to such shares.

ARTICLE 24 -- GOVERNING LAW.

     The validity and construction of the Plan shall be governed by the laws of
the State of Delaware, without giving effect to the principles of conflicts of
law thereof.

ARTICLE 25 -- APPROVAL OF BOARD OF DIRECTORS AND STOCKHOLDERS OF THE COMPANY.

     The Plan was approved and adopted by the Board of Directors on March 12,
2002, subject to final approval of the Committee. The Plan was approved and
adopted by the Committee on March 22, 2002. The Plan was approved and adopted by
the stockholders of the Company on June 14, 2002.

                                       8

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