Document:

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                                                                  EXHIBIT 10.12

           EMPLOYMENT AGREEMENT, DATED AS OF DECEMBER 16, 1996 BY AND
             BETWEEN COMMEMORATIVE BRANDS, INC. AND CHARLYN A. COOK

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                              EMPLOYMENT AGREEMENT

         This Employment Agreement ("Agreement") is entered into as of this 16th
day of December, 1996, by and between COMMEMORATIVE BRANDS, INC. and any
successors thereto (collectively referred to as the "Company") and CHARLYN A.
COOK ("Executive").

         The parties hereby agree as follows:

1. EMPLOYMENT. Executive will serve the Company in an executive capacity in such
office as from time to time shall be determined by the Board of Directors of the
Company, and will perform, faithfully and diligently, the services and functions
performed and will carry out the functions of her office and furnish her best
advice, information, judgment and knowledge with respect to the business of the
Company. Executive agrees to perform such duties as hereinabove described and to
devote full-time attention and energy to the business of the Company. Executive
will not, during the term of employment under this Agreement, engage in any
other business activity if such business activity would impair Executive's
ability to carry out her duties under this Agreement.

2. TERM. This Agreement shall be effective upon consummation of the acquisition
by the Company of substantially all of the assets and businesses of CJC
Holdings, Inc. and L.G. Balfour Company, Inc. on December 16, 1996 and shall
thereafter terminate on December 15, 1999; provided that the term of this
Agreement shall be extended automatically for an additional year on December 15,
1999, and each anniversary of December 15, 1999, unless at least 60 days prior
to December 15, 1999, or such anniversary date, the Company shall give notice to
Executive that the termination date shall not be so extended.

3. COMPENSATION AND OTHER BENEFITS.

         3.1 SALARY. The salary compensation to be paid by the Company to
Executive and which Executive agrees to accept from the Company for services
performed and to be performed by Executive hereunder shall be an annual gross
amount, before applicable withholding and other payroll deductions, of $160,000,
payable in equal bi-weekly installments of $6,153.85, subject to such changes as
the Board of Directors of the Company may, in its sole discretion, from time to
time determine.

         3.2 BENEFITS. Executive shall be entitled to participate in such
employee benefit programs, plans and policies (including incentive bonus plans
and incentive stock option plans) as are maintained by the Company and as may be
established for the employees of the Company from time to time on the same basis
as other executive employees are entitled thereto. It is understood that the
establishment, termination or change in any such Executive employee benefit
programs, plans or policies shall be at the instance of the Company in the
exercise of its sole discretion, from time to time, and any such termination or
change in such program, plan or policy will not affect this Agreement so long as
Executive is treated on the same basis as other executive employees
participating in such program, plan or policy, as the case may be. Upon
termination of employment under this Agreement, without regard to the manner in
which the termination was brought about, Executive's rights in such employee
benefit programs, plans or policies shall be governed solely by the terms of the
program, plan or policy itself and not this

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Agreement. Executive shall be entitled to an annual paid vacation in accordance
with the Company's personnel policy for her years of service completed as an
employee of the Company and the Company's predecessors.

4. WORKING FACILITIES. During the term of her employment under this Agreement,
Executive shall be furnished with a private office, stenographic services and
such other facilities and services as are commensurate with her position with
the Company and adequate for the performance of her duties under this Agreement.

5. EXPENSES. During the term of her employment under this Agreement, Executive
is authorized to incur reasonable out-of-pocket expenses for the discharge of
her duties hereunder and the promotion of business of the Company, including
expenses for entertainment, travel and related items. The Company shall
reimburse Executive for all such expenses upon presentation by Executive from
time to time of itemized accounts of expenditures incurred in accordance with
customary Company policies.

6. TERMINATION. Executive's employment under this Agreement may be terminated
with or without cause or reason by either Company or Executive upon the
following terms and conditions.

         6.1 TERMINATION BY COMPANY FOR CAUSE. If any of the following events or
circumstances occur, the Company may terminate Executive's employment under this
Agreement at any time during or at the end of the term of this Agreement for any
of the following causes (each a "Cause").

         (i)      Executive's conviction of a felony;

         (ii)     Executive's intentional failure to observe or perform material
                  provisions of this Agreement required to be observed or
                  performed by her; or

         (iii)    Executive's intentional substantial wrongful damage to
                  property of the Company.

         Upon payment by the Company to Executive of all salary payable, accrued
and unused vacation, and any accrued bonus to the date of such termination, the
Company shall have no further liability to Executive for compensation in
accordance herewith, and Executive will not be entitled to receive the
Termination Payment or Termination Benefits (as such terms are defined below)
except aforesaid vacation and any accrued bonus.

6.2 TERMINATION BY COMPANY WITHOUT CAUSE. In the event of the termination of
Executive's employment under this Agreement by the Company at any time during or
at the end of the term of this Agreement without Cause as defined in Paragraph
6.1 above, Executive will be entitled to receive 39 bi-weekly payments equal to
the average of her bi-weekly compensation in effect within the two years
preceding the termination (including, for these purposes, average bi-weekly
compensation of Executive from the Company's predecessors) ("Termination
Payments"), less legally required withholdings. In addition to the Termination
Payments, Executive will be entitled to elect the continuation of health
benefits under COBRA and the Company will pay the COBRA premiums for an 18-month
period, beginning on the date that

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Executive's health coverage ceases due to her termination, accrued but unused
vacation, and any accrued bonus ("Termination Benefits"). If Executive obtains
employment while she is entitled to receive the Termination Payments and the
Termination Benefits, each Termination Payment shall be reduced by the amount of
her average bi-weekly compensation to be received in connection with her new
employment and the payment of the Termination Benefits shall cease upon
Executive becoming covered under the new employer's health coverage plan at no
cost to Executive. The combination of the Termination Payments and the
Termination Benefits constitute the sole amount to which Executive is entitled
if termination is without Cause.

         6.3 TERMINATION BY EXECUTIVE WITHOUT GOOD REASON. Executive may
terminate her employment under this Agreement without Good Reason as defined in
Paragraph 6.4 below upon the giving of 90 days written notice of termination. In
the event of such termination, the Company may elect to pay Executive six months
of compensation including unused accrued vacation and any accrued bonus in lieu
of 90 days notice, in which event Executive's services to the Company will be
terminated immediately. No Termination Payments or Termination Benefits other
than as set forth in Section 6.3 shall be payable upon Executive's termination
of this Agreement without Good Reason.

         6.4 TERMINATION BY EXECUTIVE WITH GOOD REASON. Executive may terminate
her employment under this Agreement for Good Reason. For purposes of this
Agreement, "Good Reason" shall mean:

         (i)      Without Executive's consent, the assignment to Executive of
                  substantial duties inconsistent with Executive's then-current
                  position, duties, responsibilities and status with the
                  Company, or any removal of Executive from her titles and
                  offices, except in connection with the termination of
                  Executive's employment under this Agreement by Company or as a
                  result of Executive's death or permanent disability (as
                  defined in the Company's or Executive's disability insurance
                  policies);

         (ii)     The Company requiring Executive to relocate anywhere other
                  than Austin, Texas, except for required travel on the
                  Company's business to an extent substantially consistent with
                  Executive's business travel obligations, or, in the event
                  Executive consents to such relocation out of Austin, Texas,
                  the failure by the Company to pay or reimburse Executive for
                  all reasonable moving expenses incurred by Executive relating
                  to a change of Executive's principal residence in connection
                  with such relocation and to indemnify Executive against any
                  loss (defined as the difference between the actual bona fide
                  sale price of such residence and the fair market value of such
                  residence as determined by a member of the Society of Real
                  Estate Appraisers designated by Executive and satisfactory to
                  the Company) realized in the sale of Executive's principal
                  residence in connection with any such change in residence; or

         (iii)    A decrease in Executive's salary from the salary in effect
                  upon the date hereof that is inconsistent with or not
                  commensurate with Executive's then current position with the
                  Company.

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         In the event of termination under this Section 6.4, the Company shall
pay to Executive the same Termination Payments and Termination Benefits to which
Executive would have been entitled had she been terminated by the Company
without Cause.

         6.5 DEATH OR PERMANENT DISABILITY. Executive's employment under this
Agreement shall terminate upon Executive's death or permanent disability (as
defined in the Company's or Executive's disability insurance policies). Other
than accrued but unused vacation and any accrued but unpaid bonus, no
Termination Payments or Termination Benefits shall be payable upon Executive's
death or permanent disability.

         6.6 RELEASE AGREEMENT. The Termination Payments and Termination
Benefits pursuant to Section 6 are contingent upon Executive executing a Release
Agreement after termination, a copy of which is attached to this Agreement. It
is understood that Executive may preserve all rights and causes of action in the
event of termination by the Company and evidence of release of same will only be
by execution of said Release Agreement after termination.

7. CONFIDENTIALITY. During and after the term of employment under this
Agreement, Executive agrees that she shall not, without the express written
consent of Company, directly or indirectly communicate or divulge to, or use for
her own benefit or for the benefit of any other person, firm, association or
corporation, any of Company's trade secrets, proprietary data or other
confidential information, which trade secrets, proprietary data or other
confidential information were communicated to or otherwise learned or acquired
by Executive during her employment relationship with Company ("Confidential
Information"), except that Executive may disclose such matters to the extent
that disclosure is required (a) at Company's direction or (b) by a court or
other governmental agency of competent jurisdiction. As long as such matters
remain trade secrets, proprietary data or other confidential information,
Executive shall not use such trade secrets, proprietary data or other
confidential information in any way or in any capacity other than as expressly
consented to by Company.

8.       COVENANT NOT TO COMPETE OR SOLICIT.

         8.1 Executive agrees to refrain for one year after the termination of
her employment under this Agreement for any reason, without written permission
of the Company, from becoming involved in any way, within the boundaries of the
United States, in the business of manufacturing, designing, servicing or
selling, the type of jewelry or fine paper or other scholastic, licensed sports,
insignia, recognition or affinity products manufactured or sold (or then
contemplated to be manufactured or sold) by the Company, its divisions,
subsidiaries and/or other affiliated entities, including but not limited to, as
an employee, consultant, independent representative, partner or proprietor.

         8.2 Executive also agrees to refrain during her employment under this
Agreement, and in the event of the termination of her employment under this
Agreement for any reason, for one year thereafter, without written permission
from the Company, from diverting, taking, soliciting and/or accepting on her own
behalf or on the behalf of another person, firm, or company, the scholastic
licensed sports, insignia, recognition or affinity business of any customer of
the Company, its divisions, subsidiaries and/or affiliated entities, or any
potential customer of the Company, its divisions, subsidiaries and/or affiliated
entities whose identity

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became known to Executive through her employment by the Company and to which the
Company has made a written business proposal or provided written pricing
information before the termination of Executive's employment under this
Agreement.

8.3 Executive also agrees to refrain during her employment under this Agreement,
and in the event of the termination of her employment under this Agreement for
any reason for a period of one year thereafter, from inducing or attempting to
influence any employee or independent representative of the Company, its
divisions, subsidiaries, and/or affiliated entities to terminate his or her
employment or association with the Company or such other entity.

8.4 Executive further agrees that the covenants in Sections 8.1 and 8.2 are made
to protect the legitimate business interests of the Company, including interests
in the Company's "Confidential Information," as defined in Section 7 of this
Agreement, and not to restrict her mobility or to prevent her from utilizing her
skills. Executive understands as a part of these covenants that the Company
intends to exercise whatever legal recourse against her for any breach of this
Agreement and in particular for breach of these covenants.

9. CONTROLLING LAW AND PERFORMABILITY. The execution, validity, interpretation
and performance of this Agreement will be governed by the law of the State of
Texas.

10. SEPARABILITY. If any provision of this Agreement is rendered or declared
illegal or unenforceable, all other provisions of this Agreement will remain in
full force and effect.

11. NOTICES. Any notice required or permitted to be given under this Agreement
shall be sufficient if in writing and if sent by certified mail (return receipt
requested) addressed as follows:

If to Executive:           Charlyn A. Cook
                           1115 Elm Street
                           Austin, TX  78703

If to the Company:         Chief Executive Officer
                           Commemorative Brands, Inc.
                           7211 Circle S Road
                           Austin, TX  78745

12. ASSIGNMENT. The rights and obligations of the Company under this Agreement
shall inure to the benefit of and be binding upon its successors and assigns.
The rights and obligations of Executive under this Agreement are of a personal
nature and shall neither be transferred or assigned in whole or in part by
Executive.

13. NON-WAIVER. No waiver of or failure to assert any claim, right, benefit or
remedy hereunder shall operate as a waiver of any other claim, right, benefit or
remedy of the Company or Executive.

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14. REVIEW AND CONSULTATION. Executive acknowledges that she has had a
reasonable time to review and consider this Agreement and has been given the
opportunity to consult with an attorney.

15. ENTIRE AGREEMENT AND AMENDMENTS. This Agreement contains the entire
agreement of Executive and the Company relating to the matters contained in this
Agreement and supersedes all prior agreements and understandings, oral or
written, between Executive and the Company with respect to the subject matter in
this Agreement. This Agreement may be changed only by an agreement in writing by
Executive and the Company.

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IN WITNESS WHEREOF, the parties have executed this Agreement on the date and
year first above written.

                             COMMEMORATIVE BRANDS, INC.

                             By:      /S/ JEFFREY H. BRENNAN
                                      -----------------------------
                                      Name:    Jeffrey H. Brennan
                                      Title:   Chief Executive Officer

                              EXECUTIVE

                                    /S/ CHARLYN A. COOK

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                                                                   EXHIBIT 10.13
         AMERICAN ACHIEVEMENT CORPORATION 2000 STOCK OPTION PLAN (f/k/a
           COMMEMORATIVE BRANDS HOLDING CORP. 2000 STOCK OPTION PLAN)

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                       COMMEMORATIVE BRANDS HOLDING CORP.
                             2000 STOCK OPTION PLAN

          1.  PURPOSE. The purpose of the Commemorative Brands Holding Corp.
2000 Stock Option Plan (the "Plan") is to motivate and retain key employees and
directors who are responsible for the attainment of the primary long-term
performance goals of Commemorative Brands Holding Corp. (the "Corporation"). The
Plan is designed to increase the ability of the Corporation and its Subsidiaries
to attract and retain individuals of exceptional ability and to give them a
proprietary interest in the success of the Corporation and such Subsidiaries.
This Plan is subject to approval by the Corporation's stockholders.

          2.  DEFINITIONS. When used herein, the following terms shall have the
following meanings:

          "Administrator" means the Board or any other duly established
committee or subcommittee of the Board

          "Affiliate" means, as to the Corporation or any other specified
Person, (i) any Person directly or indirectly controlling, controlled by or
under direct or indirect common control with the Corporation (or other specified
Person), or employed by the Corporation (or other specified Person), and (ii)
any Person, directly or indirectly, beneficially owning at least 10% of any
class of outstanding capital stock or other evidence of beneficial interest of
the Corporation or such other Person; PROVIDED, HOWEVER, that no individual
stockholder shall by reason of holding such securities be an Affiliate of the
Corporation or any of its Subsidiaries for purposes of this Plan.

          "Board" means the Board of Directors of the Corporation.

          "Cause" means, with respect to a Participant, a finding by the
Administrator based upon reasonable evidence presented in writing to the
Participant that the Participant engaged in: (a) a criminal act involving moral
turpitude, or any criminal act or willful misconduct which in either case is
inconsistent with such Participant's employment responsibilities or contractual
relationship with the Corporation or any Subsidiary thereof, (b) continued
nonperformance of such Participant's duties, (c) repeated acts of
insubordination, (d) acts of dishonesty resulting or intending to result in
personal gain or enrichment at the expense of the Corporation or any Subsidiary
thereof, or (e) conduct not conforming to standards of good citizenship or good
moral character or which is potentially detrimental to the Corporation's or its
Subsidiaries' business, reputation, character or standing; PROVIDED, that if
such Participant is subject to an employment agreement with the Corporation or
any Subsidiary thereof which provides for a definition of cause or substantial
cause or the like, then "Cause" shall have the meaning set forth in such
employment agreement.

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          "Change in Control" means, at any time prior to the consummation of an
Initial Public Offering: (i) the sale of all or substantially all of the
business and/or assets of the Corporation or any Subsidiary with whom a
Participant is employed at the time in question to a Person or entity that is
not a Subsidiary or other Affiliate of the Corporation or CHP, or (ii) the
merger or consolidation or other reorganization of the Corporation or any
Subsidiary with whom a Participant is employed at the time in question with or
into one or more entities that are not Subsidiaries or other Affiliates of the
Corporation or CHP, respectively, which results in less than 50% of the
outstanding equity interests of the surviving or resulting entity immediately
after the reorganization being owned, directly or indirectly, by the holders (or
Affiliates of the holders) of equity interests of the Corporation or such
Subsidiary immediately before such reorganization or (iii) approval by the
stockholders of the Corporation of the dissolution or liquidation of the
Corporation; provided, however, that the occurrence of one of the foregoing
events shall not constitute a Change in Control if, following such event, CHP
maintains the ability, directly or indirectly, to elect a majority of the Board
of Directors of the Corporation or Subsidiary, as the case may be.

          "CHP" means Castle Harlan Partners III, L.P., Castle Harlan Partners
II, L.P., and their Affiliates, including Castle Harlan, Inc. ("CHI") and
related accounts or funds managed by CHI or an Affiliate of CHI.

          "Code" means the Internal Revenue Code of 1986, as amended, or any
successor statute thereto.

          "Common Stock" means the Common Stock, par value $0.01 per share, of
the Corporation.

          "Corporation" means Commemorative Brands Holding Corp., a Delaware
corporation.

          "Disability" has the meaning set forth in Section 22(e)(3) of the
Code, as determined by the Administrator.

          "EBITDA" means, for any period, the amount equal to: (a) the net
income (or net loss) of the Corporation and its Subsidiaries during such period
after deduction of all expenses, taxes and other charges, determined in
accordance with generally accepted accounting principles, after eliminating
therefrom all extraordinary items of income and expense PLUS (b) any provision
for (or less any benefit from) income or franchise taxes included in the
determination of (a) above; PLUS (c) depreciation, depletion and amortization;
PLUS (d) the expenses of the Corporation and its Subsidiaries charged to income
for interest on indebtedness (including the current portion thereof), determined
in accordance with generally accepted accounting principles.

          "Exchange Act" means the Securities Exchange Act of 1934, as amended,
and the rules and regulations promulgated thereunder.

          "Fair Market Value" means, on any day, with respect to Common Stock
which is (a) listed on a United States securities exchange, the last sales price
of such stock on such day on

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the largest United States securities exchange on which such stock shall have
traded on such day, or if such day is not a day on which a United States
securities exchange is open for trading, on the immediately preceding day on
which such securities exchange was open; (b) not listed on a United States
securities exchange but is included in The NASDAQ Stock Market System (including
the NASDAQ National Market), the last sales price on such system of such stock
on such day, or if such day is not a trading day, on the immediately preceding
trading day; or (c) neither listed on a United States securities exchange nor
included in The NASDAQ Stock Market System, the fair market value of such stock
as determined from time to time by the Administrator in good faith in its sole
discretion.

          "Fully-Diluted Shares of Common Stock" shall mean giving effect,
without duplication, to (i) all shares of Common Stock outstanding at the time
of determination plus (ii) all shares of Common Stock issuable upon conversion
of any convertible securities or the exercise of any option, warrant or similar
right outstanding at the time of determination, whether or not then presently
exercisable.

          "Good Reason" means, with respect to a Participant, (a) a reduction in
base salary, bonus or any agreed upon benefit provided under any employment
agreement with the Participant without the Participant's consent; PROVIDED, that
the Corporation (or any Subsidiary with whom the Participant is employed) may at
any time or from time to time amend, modify, suspend or terminate any bonus,
incentive compensation or other benefit plans or programs provided to the
Participant for any reason and without the Participant's consent if such
modification, suspension or termination is consistent for similarly situated
employees; or (b) a material adverse change in the Participant's
responsibilities or position or the duties, resources, personnel, reporting
responsibilities, or support assigned to the Participant without such
Participant's prior consent; PROVIDED, that if such Participant is subject to an
employment agreement with the Corporation or any Subsidiary thereof which
provides for a definition of good reason, then "Good Reason" shall have the
meaning set forth in such employment agreement.

          "Incentive Stock Option" means an Option that is designated by the
Administrator as an incentive stock option and qualifies as such within the
meaning of Section 422 of the Code and is granted by the Administrator to a
Participant.

          "Initial Public Offering" means a public offering of Common Stock
pursuant to a registration statement filed with, and declared effective by, the
Securities and Exchange Commission other than on Forms S-4 or S-8 (or successors
thereto), upon the consummation of which the shares so registered are listed on
a United States securities exchange or included in The NASDAQ Stock Market
System.

          "Key Employee" means an employee who owns more than 10% of the total
combined voting power of all classes of stock of the Corporation, determined at
the time an Option is granted.

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          "Multiplier" means the number, determined in accordance with the
provisions of Section 12 hereof, which is multiplied by EBITDA for the
applicable calendar year in order to calculate Purchase Price for purposes of
Section 12 hereof.

          "Non-qualified Stock Option" means an Option, which is not an
Incentive Stock Option, granted by the Administrator to a Participant.

          "Option" means a right granted under the Plan to a Participant to
purchase a stated number of shares of Common Stock as an Incentive Stock Option
or Non-qualified Stock Option.

          "Participant" means an employee or director of the Corporation or any
Subsidiary thereof who is selected to participate in the Plan in accordance with
Section 4.

          "Person" means any individual, partnership, firm, trust, corporation
or other similar entity. When two or more Persons act as a partnership, limited
partnership, syndicate or other group for the purpose of acquiring, holding or
disposing of securities of the Corporation, such partnership, limited
partnership, syndicate or group shall be deemed a "Person."

          "Plan" means the Commemorative Brands Holding Corp. 2000 Stock Option
Plan.

          "Purchase Price" means an amount equal to (i) EBITDA for the
immediately preceding calendar year, times the applicable Multiplier, minus the
sum of (x) the amount of the Corporation's consolidated debt (determined in
accordance with generally accepted accounting principles as set forth on the
Corporation's most recently prepared internal financial statements) and accrued
interest, and (y) the liquidation preference plus accrued and unpaid dividends
on the Corporation's and any of its Subsidiaries' preferred stock, divided by
(ii) the number of Fully-Diluted Shares of Common Stock

          "Subsidiary" means a corporation or other entity of which the
Corporation possesses, directly or indirectly, the power to (i) vote fifty
percent (50%) or more of the securities having ordinary voting power for the
election of directors of such corporation or other entity, or (ii) direct or
cause the direction of the management and policies of such corporation or other
entity, whether through the ownership of voting securities, by contract or
otherwise.

          3.   ADMINISTRATION. The Plan shall be administered by the
Administrator. Subject to the provisions of the Plan, the
Administrator shall have the authority to:

          (a)  select the Participants;

          (b)  determine the number of shares of Common Stock covered by any
               Option granted to a Participant; PROVIDED, HOWEVER, that no
               Option shall be granted after the expiration of the period of ten
               (10) years from the effective date of this Plan, as specified in
               Section 21 hereof;

          (c)  determine whether each Option shall be an Incentive Stock Option
               or a Non-qualified Stock Option; and

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          (d)  establish from time to time regulations for the administration of
               the Plan, interpret the Plan, delegate in writing administrative
               matters to committees of the Board or to other persons, and make
               such other determinations and take such other action, as it deems
               necessary or advisable for the administration of the Plan.

          All decisions, actions and interpretations of the Administrator shall
be final, conclusive and binding upon all parties.

          4.   PARTICIPATION. Participants in the Plan shall be limited to those
employees and directors of the Corporation or any Subsidiary thereof who have
been notified in writing by the Administrator that they have been selected to
participate in the Plan. A member of the Board who is not an employee of the
Corporation shall not be eligible for the grant of an Incentive Stock Option.

          5.   SHARES SUBJECT TO THE PLAN. Options may be granted by the
Administrator to Participants from time to time to purchase not more than an
aggregate of 122,985 shares of Common Stock (subject to adjustment as provided
in Section 7(i)) (the "Maximum Amount"), all of which shares of Common Stock
shall be reserved for Options granted under the Plan. The shares issued upon the
exercise of Options granted under the Plan may be authorized and unissued
shares, shares held in the treasury of the Corporation, or, if applicable,
shares purchased on the open market by the Corporation (at such time or times
and in such manner as it may determine). The Corporation shall be under no
obligation to acquire Common Stock for distribution to Participants before
payment in shares of Common Stock is due. If any Option granted under the Plan
shall be canceled or shall expire without the shares covered by such Option
being purchased by the applicable Participant thereunder, new Options may
thereafter be granted covering such shares.

          6.   GRANTING OPTIONS. The Administrator may grant Options under the
Plan to any Participant, exercisable for such number of shares of Common Stock
as the Administrator shall designate, subject to the provisions of Section 7.

          7.   TERMS AND CONDITIONS OF OPTIONS. Each Option granted under the
Plan shall be evidenced by a written agreement, in form approved by the
Administrator and executed by the President or Chief Financial Officer of the
Corporation, which shall be subject to the following express terms and
conditions and to such other terms and conditions as the Administrator may deem
appropriate:

          (a)  OPTION PERIOD. Each Option agreement shall specify that the
               Option thereunder is granted for a period of ten years, or such
               shorter period as the Administrator may determine, from the date
               of grant and shall provide that the Option shall expire on such
               ten year anniversary, or shorter period, as the case may be
               (unless earlier exercised or terminated pursuant to its terms);
               PROVIDED, HOWEVER, that any Incentive Stock Option granted to a
               Key Employee shall specify that the Incentive Stock Option is
               granted for a

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               period of five (5) years from the date of grant and shall expire
               on such five (5) year anniversary.

          (b)  OPTION PRICE. The Option price per share shall be the Fair Market
               Value at the time the Option is granted or, with respect to a
               Non-qualified Stock Option, such lower price as the Administrator
               shall determine; PROVIDED, HOWEVER, that the Option price per
               share for any Incentive Stock Option granted to a Key Employee
               shall equal 110% of the Fair Market Value at the time the
               Incentive Stock Option is granted.

          (c)  EXERCISE OF OPTION. Subject to Sections 7(f) and 8,

               (i)  Options granted hereunder shall become exercisable such that
                    on the first anniversary of the date of grant the amount
                    exercisable shall be 25% and on each of the second, third
                    and fourth anniversaries of the date of grant the amount
                    exercisable shall cumulatively increase by 25%, as set forth
                    in the following schedule:

<Table>
<Caption>
                     Years from                                     Amount
                     Date of Grant                                Exercisable
                     -------------                                -----------
                     <S>                                              <C>
                     One...............................................25%
                     Two...............................................50%
                     Three.............................................75%
                     Four.............................................100%
</Table>

               (ii) Notwithstanding the foregoing schedule, the Administrator
                    may grant Options that become exercisable in accordance with
                    such other vesting schedule and upon such terms and
                    conditions as the Administrator shall determine, as set
                    forth in the Option agreement between the Corporation and
                    the Participant, and all Options are subject to the
                    Administrator's authority to accelerate such vesting
                    schedule.

          (d)  LIMITATION ON AMOUNT OF INCENTIVE STOCK OPTIONS GRANTED. To the
               extent that the aggregate Fair Market Value of stock with respect
               to which Incentive Stock Options are exercisable for the first
               time by any Participant during any calendar year (whether under
               the terms of the Plan or any other stock option plan of the
               Corporation or of its parent or any Subsidiary corporation)
               exceeds $100,000, such Options shall be treated as Non-qualified
               Stock Options. Fair Market Value shall be determined as of the
               time the Option with respect to such stock is granted.

          (e)  PAYMENT OF OPTION PRICE UPON EXERCISE. The option price of the
               shares as to which an Option shall be exercised shall be paid to
               the Corporation at the time of exercise at the option of the
               Participant either (a) in cash or by

                                      -7-
<Page>

               check, bank draft or money order payment to the Corporation, (b)
               by delivering Common Stock of the Corporation already owned by
               the Participant and having a total Fair Market Value on the date
               of such delivery equal to the option price, (c) to the extent
               authorized by the Administrator, through the written election of
               the Participant to have shares of Common Stock withheld by the
               Corporation from the shares otherwise to be received, with such
               withheld shares having an aggregate Fair Market Value on the date
               of exercise equal to the option price, or (d) by any combination
               of the above methods of payment.

                                      -8-
<Page>

          (f)  TERMINATION OF EMPLOYMENT.

               (i)   If the employment of a Participant terminates on account of
               death or Disability, the Options granted to such Participant that
               are exercisable as of the date of termination of employment may
               be so exercised within six months after termination of
               employment, or such longer period as the Administrator may
               determine, and shall then terminate; PROVIDED, HOWEVER, that any
               Incentive Stock Options shall no longer be treated as Incentive
               Stock Options unless exercised within three months of the
               Participant's termination of employment for a reason other than
               Disability or death or 12 months of the Participant's termination
               of employment on account of Disability.

               (ii)  If the employment of a Participant is terminated for Cause
               or without Good Reason, all Options that have been granted to
               such Participant shall terminate and be forfeited as of the date
               of termination of employment.

               (iii) If the employment of a Participant terminates for any other
               reason, the Options granted to such Participant that are
               exercisable as of the date of termination of employment may be so
               exercised within three months after termination of employment, or
               such longer period as the Administrator may determine, and shall
               then terminate.

               (iv)  In no event may such Options be exercised after the
               expiration date of such Options as established in accordance with
               Section 7(a).

               (v)   All Options that have been granted to a Participant which
               are not exercisable as of the date of the Participant's
               termination of employment shall terminate as of such date.

          (g)  TRANSFERABILITY OF OPTIONS. No Option granted under the Plan and
               no right arising under such Option shall be transferable other
               than by will or by the laws of descent and distribution. During
               the lifetime of the Participant an Option shall be exercisable
               only by such Participant. Any Option exercisable at the date of
               the Participant's death and transferred by will or by the laws of
               descent and distribution shall be exercisable in accordance with
               the terms of such Option by the executor or administrator, as the
               case may be, of the Participant's estate for a period of six
               months after the date of the Participant's death, or such longer
               period as the Administrator may determine, and shall then
               terminate; PROVIDED, HOWEVER, that in no event may such Options
               be exercised after the expiration date of such Options as
               established in accordance with Section 7(a). All Options not
               exercisable at the date of the Participant's death shall
               terminate as of such date.

                                   -9-
<Page>

          (h)  INVESTMENT REPRESENTATION. Each Option agreement may contain an
               undertaking that, upon demand by the Administrator for such a
               representation, the Participant (or any person acting under
               Section 7(g)) shall deliver to the Administrator at the time of
               any exercise of an Option a written representation that the
               shares of Common Stock to be acquired upon such exercise are to
               be acquired for such Participant's own account and not with a
               view to, or for resale in connection with, any distribution. Upon
               such demand, delivery of such representation prior to the
               delivery of any shares issued upon exercise of an Option shall be
               a condition precedent to the right of the Participant or such
               other Person to purchase any shares.

          (i)  ADJUSTMENTS IN EVENT OF CHANGE IN COMMON STOCK. In the event of
               any change in the Common Stock by reason of any stock dividend,
               recapitalization, reorganization, merger, consolidation,
               split-up, combination or exchange of shares, or of any similar
               change affecting the Common Stock, the number and kind of shares
               which thereafter may be optioned and sold under the Plan and the
               number and kind of shares subject to Option in outstanding Option
               agreements and the purchase price per share thereof shall be
               appropriately adjusted consistent with such change in such manner
               as the Board may deem equitable to prevent substantial dilution
               or enlargement of the rights granted to, or available for,
               participants in the Plan. Without limiting the generality of the
               foregoing, if the Common Stock is recapitalized into multiple
               classes of common stock, the kind of shares subject to Option
               shall be those common shares intended for broad general ownership
               rather than any class of special super-voting or other control
               stock.

          (j)  PARTICIPANTS TO HAVE NO RIGHTS AS STOCKHOLDERS. No Participant
               shall have any rights as a stockholder with respect to any shares
               subject to such Participant's Option prior to the date on which
               such Participant is recorded as the holder of such shares on the
               records of the Corporation.

          (k)  PLAN AND OPTION NOT TO CONFER RIGHTS WITH RESPECT TO CONTINUANCE
               OF EMPLOYMENT. Neither the Plan nor any action taken thereunder
               shall be construed as giving any employee the right to be
               retained in the employ of the Corporation or any Subsidiary
               thereof, nor shall it interfere in any way with the right of the
               Corporation or any such Subsidiary to terminate any Participant's
               employment at any time with or without Cause.

          (l)  OTHER OPTION PROVISIONS. The form of option agreement authorized
               by the Plan may contain such other provisions, consistent with
               this Plan, as the Administrator may, from time to time,
               determine.

          (m)  NOTIFICATION OF SALES OF COMMON STOCK. Any Participant who
               disposes of shares of Common Stock acquired upon the exercise of
               an Incentive Stock Option either (a) within two years from the
               date of the grant of the Incentive

                                  -10-
<Page>

               Stock Option under which the Common Stock was acquired or (b)
               within one year after the transfer of such shares of Common Stock
               to the Participant, shall notify the Corporation of such
               disposition and of the amount realized upon such disposition.

          8.   EFFECT OF CHANGE IN CONTROL. Notwithstanding the provisions of
Section 7, if there should be a Change in Control:

          (a)  the Corporation shall give each Participant written notice of
               such Change in Control as promptly as practicable prior to the
               effective date thereof; and

          (b)  all of the Options granted to a Participant not currently
               exercisable shall become exercisable immediately prior to the
               effective date of such Change in Control; PROVIDED, that all or a
               portion of such Options shall not be exercisable to the extent
               that the exercise would cause the Participant to be subject to
               taxes under Section 4999 of the Code.

          9.   NO CLAIM OR RIGHT UNDER THE PLAN. No employee shall at any time
have the right to be selected as a Participant in the Plan nor, having been
selected as a Participant and granted an Option, to be granted any additional
Options.

          10.  LISTING AND QUALIFICATION OF SHARES. The Plan, the grant and
exercise of Options thereunder, and the obligation of the Corporation to sell
and deliver shares under such Options, shall be subject to all applicable
federal and state laws, rules and regulations and to such approvals by any
government or regulatory agency as may be required. The Corporation may require
any Participant, beneficiary or legal representative to make such
representations and furnish such information as it may consider appropriate in
connection with the issuance or delivery of the shares in compliance with
applicable laws, rules and regulations. Certificates representing shares of
Common Stock acquired by the exercise of an Option may bear such legend as the
Corporation may consider appropriate under the circumstances.

          11.  STOCKHOLDERS' AGREEMENT. At the request of the Administrator,
upon the grant of any Option hereunder, the Participant shall be deemed to have
accepted, and the Option granted hereunder and the Common Stock deliverable upon
exercise of the Option shall be subject to, the provisions of any Stockholders'
Agreement of the Corporation then in effect (the "Stockholders' Agreement"). In
addition, the Corporation may, in its discretion as a condition precedent to the
grant or exercise of any Option hereunder, require that a Participant become a
party to the provisions of any such Stockholders' Agreement. Notwithstanding
anything herein to the contrary, to the extent any provision of the Plan is
inconsistent with such Stockholders' Agreement, the Stockholders' Agreement
shall govern with respect to any Participant who is or becomes a party thereto.

          12.  DISPOSITION OF SHARES. At any time prior to the consummation of
an Initial Public Offering, each share of Common Stock acquired by an exercise
of an Option granted under the Plan may be transferred, other than by will or
the laws of descent and distribution, only to the Corporation and only in
accordance with the following provisions of this Section 12. Each

                                      -11-
<Page>

certificate representing shares of Common Stock acquired by the exercise of an
Option shall bear a legend to such effect.

          (a)  CALL BY CORPORATION. The Corporation shall have the right to
               purchase from a Participant, within six (6) months following the
               termination of such employee Participant's employment by the
               Corporation or any of its Subsidiaries without Cause, the Common
               Stock acquired by the exercise of Options by such Participant for
               an amount equal to the Purchase Price where the Multiplier is
               5.5. The Corporation shall have the right to purchase from a
               Participant within six (6) months following the termination of
               such employee Participant's employment by the Corporation or any
               of its Subsidiaries for Cause, or the resignation by the
               Participant, the Common Stock acquired by such Participant, for
               an amount equal to the Purchase Price where the Multiplier is
               4.5.

          (b)  The purchase of Common Stock by the Corporation pursuant to the
               foregoing provisions of this Section 12 may, at the discretion of
               the Administrator, be paid for either (i) in cash or (ii) up to
               forty percent (40%) in cash with the balance payable under a note
               issued by the Corporation with principal payments made in four
               (4) equal annual installments and bearing interest, payable
               annually, at the rate of the greater of (A) seven percent (7%)
               per annum and (B) the lowest interest rate required to avoid
               imputed interest; provided, however, that in the event the
               foregoing provisions of this Section 12(b) conflict with any
               agreement to which the Corporation is a party, the purchase of
               Common Stock by the Corporation may be paid in such other form as
               determined in the sole discretion of the Administrator,
               including, but not limited to, through the issuance of a
               subordinated note with comparable terms as those provided in
               subsection (ii) above.

          13.  DRAG ALONG RIGHTS. Notwithstanding anything herein to the
               contrary:

          (a)  CHP shall have the right in connection with a bona fide offer (a
               "Compelled Sale Offer") by a Person not constituted within CHP (a
               "Compelled Sale Purchaser") to purchase at least 80% of the
               shares of Common Stock, preferred stock and any other equity
               securities (including, without limitation, warrants, options, and
               preferred stock) of the Corporation held by CHP (for either cash,
               securities of a class registered under Section 12 of the Exchange
               Act (or convertible into such a class of securities) or any
               combination thereof) to require each (but not less than each) of
               the Participants to sell the same percentage or all of the Common
               Stock then held by such Participants, to the Compelled Sale
               Purchaser, for the equivalent consideration per share of Common
               Stock (a "Compelled Sale Offer Price(s)") and otherwise on the
               same terms and conditions upon which CHP sells its Common Stock.

                                      -12-
<Page>

          (b)  If CHP elects to exercise its right to compel sale pursuant to
               this Section 13, CHP shall deliver a written notice (a "Compelled
               FFF Sale Notice") of the Compelled Sale Offer to each Participant
               and the Corporation at least 10 days prior to the consummation of
               any such sale, setting forth the Compelled Sale Offer Price(s),
               the identity of the Compelled Sale Purchaser and the other terms
               and conditions thereof. Each Participant shall deliver to CHP in
               trust, not less than five business days before the proposed date
               of consummation of the Compelled Sale Offer, the duly endorsed
               certificate or certificates representing the requisite number of
               shares of Common Stock owned by such Participant, together with a
               limited power-of-attorney authorizing CHP to transfer such Common
               Stock to the Compelled Sale Purchaser pursuant to the terms of
               the Compelled Sale Offer at the Compelled Sale Offer Price(s),
               and in accordance with the provisions hereof.

          (c)  CHP shall have 90 days from the date the Compelled Sale Notice is
               received by the Participants (the "Compelled Sale Notice Date")
               to sell, and to cause the other Persons constituted within CHP to
               sell, to the Compelled Sale Purchaser at the Compelled Sale Offer
               Price(s) all of the Common Stock subject to the Compelled Sale
               Offer. Immediately after completion of any such sale pursuant to
               this Section 13, CHP shall notify the Corporation and each
               Participant of such completion and shall furnish such evidence of
               such sale (including time of completion) and the terms thereof as
               the Corporation or any Participant may reasonably request. CHP
               shall substantially concurrently with such closing also remit to
               each Participant the proceeds of such sale attributable to the
               sale of such Participant's Common Stock immediately upon receipt
               thereof. If any sale to a Compelled Sale Purchaser is not
               completed by the expiration of the 90-day period referred to in
               this Section 13(c), then, without prejudice to CHP's right to
               seek to compel a sale under this Section 13 in the future, CHP
               shall return to each Participant all certificates representing
               the shares of Common Stock of such Participant.

          (d)  No Participant required to sell Common Stock pursuant to a
               Compelled Sale Offer shall be required to make any representation
               or warranty in connection with such Compelled Sale Offer other
               than as to such Participant's ownership and authority to
               transfer, free of liens, claims and encumbrances, the Common
               Stock proposed to be sold by it.

          14.  TAXES. The Administrator may make such provisions and take such
steps as it may deem necessary or appropriate for the withholding of all
federal, state, local and other taxes required by law to be withheld by the
Corporation with respect to Options under the Plan including, but not limited to
(a) reducing the number of shares of Common Stock otherwise deliverable, based
upon their Fair Market Value on the date of exercise, to permit deduction of the
amount of any such withholding taxes from the amount otherwise payable under the
Plan, (b)

                                      -13-
<Page>

deducting the amount of any such withholding taxes from any other amount then or
thereafter payable to a Participant, or (c) requiring a Participant, beneficiary
or legal representative to pay to the Corporation the amount required to be
withheld or to execute such documents as the Administrator deems necessary or
desirable to enable the Corporation to satisfy its withholding obligations as a
condition of releasing the Common Stock.

          15.  NO LIABILITY OF BOARD MEMBERS. No member of the Board shall be
personally liable by reason of any contract or other instrument executed by such
member or on such member's behalf in such member's capacity as a member of the
Board or the Administrator nor for any mistake of judgment made in good faith,
and the Corporation shall indemnify and hold harmless each employee, officer or
director of the Corporation to whom any duty or power relating to the
administration or interpretation of the Plan may be allocated or delegated,
against any cost or expense (including counsel fees) or liability (including any
sum paid in settlement of a claim with the approval of the Board) arising out of
any act or omission to act in connection with the Plan unless arising out of
such person's own fraud or bad faith.

          16.  AMENDMENT OR TERMINATION. The Administrator may, with prospective
effect, amend, suspend, or terminate the Plan or any portion thereof; PROVIDED,
HOWEVER, that no amendment, suspension or termination of the Plan shall deprive
any Participant of any right with respect to any Option granted under the Plan
without such Participant's written consent; and PROVIDED, FURTHER, that unless
duly approved by the holders of stock entitled to vote thereon at a meeting
(which may be the annual meeting) duly called and held for such purpose, except
as provided in Section 7(i), no amendment or change shall be made to the Plan
(a) increasing the total number of shares which may be issued or transferred
under the Plan, (b) changing the exercise price specified for the shares subject
to the Options, (c) changing the maximum periods during which Options may be
exercised, (d) extending the period during which Options may be granted under
the Plan, (e) materially changing the designation of persons eligible to receive
Options under the Plan, or (f) materially increasing in any other way the
benefits accruing to Participants under the Plan.

          17.  CAPTIONS. The captions preceding the sections of the Plan have
been inserted solely as a matter of convenience and shall not in any manner
define or limit the scope or intent of any provisions of the Plan.

          18.  GOVERNING LAW. The Plan and all rights thereunder shall be
governed by and construed in accordance with the laws of the State of New York
applicable to contracts made and to be performed entirely within such State.

          19.  NON-UNIFORM DETERMINATIONS. The Administrator's determinations
under the Plan (including, without limitation, determinations of the persons to
receive Options, the form, term, provisions, amount and the timing of the grant
of such Options and of the Agreements evidencing the same) need not be uniform
and may be made by it selectively among persons who receive, or are eligible to
receive, Options under the Plan, whether or not such persons are similarly
situated.

                                      -14-
<Page>

          20.  SEVERABILITY. In the event that any provision of the Plan shall
be held illegal or invalid for any reason, such illegality or invalidity shall
not affect the remaining parts of the Plan, and the Plan shall be construed and
enforced as if the illegal or invalid provision had not been included.

          21.  EFFECTIVE DATE. The Plan shall become effective as of July 27,
2000.

                                      -15-

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