Document:

<PAGE>

                                                                   Exhibit 10(b)

                              AMENDED AND RESTATED
                         DEFERRED COMPENSATION PLAN FOR
                       OUTSIDE DIRECTORS OF TIDEWATER INC.
                          (Effective November 21, 2002)

                                    ARTICLE I

                                     PURPOSE

     The purpose of the Amended and Restated Deferred Compensation Plan for
Outside Directors of Tidewater Inc. (the "Plan") is to provide for the deferral
of annual retainer fees, Board meeting attendance fees, Board Committee meeting
attendance fees (hereinafter referred to in the aggregate as "Compensation")
paid by Tidewater Inc. (the "Company") to members of the Company's Board of
Directors (the "Board").

                                   ARTICLE II

                                 ADMINISTRATION

     The Plan will be administered by the Company's Employee Benefits Committee
(the "Committee"). The Committee will have the sole authority to interpret the
Plan, to prescribe, amend and rescind rules and regulations relating to the
Plan, and in general, to make all other determinations and take all actions, not
otherwise required herein to be taken by the Board or a committee thereof,
necessary or advisable for the administration of the Plan. All decisions of the
Committee concerning the administration, construction, and interpretation of the
Plan shall be final, conclusive and binding upon all parties and interests.

                                   ARTICLE III

                                  PARTICIPANTS

     Participation in the Plan is limited to members of the Board who are not
full-time employees of the Company or a subsidiary who elect to defer
Compensation as provided herein (hereinafter referred to individually as the
"Director" and collectively as the "Directors"). Upon termination of membership
on the Board, deferral of Compensation under the Plan shall cease and
distribution of Compensation not previously commenced shall commence, as
provided in Article VIII hereof.

                                   ARTICLE IV

                             COMPENSATION ELECTIONS

     IV.1 PAYMENT ELECTION. For each calendar year of the Company, any eligible
Director may elect to receive Compensation distributed in (i) cash payments made
in the customary manner; or (ii) deferred payments as hereinafter provided.

                                       -1-

<PAGE>

                                                                   Exhibit 10(b)

     IV.2 TIME AND METHOD OF ELECTION. In order for an election to be effective
for any given calendar year, the Director must deliver a signed election form to
the Committee no later than December 31 of the year preceding the year for which
the election is to take effect. In the case of a person who is elected or
appointed to the Board during the calendar year in which the deferral election
is to take effect, the signed deferral election form must be delivered to the
Committee no later than the first Board meeting attended by the Director
following such election or appointment. A deferral election must be made on the
forms attached hereto as Exhibits "A" and "B," whichever is applicable,
available upon request from the Committee. Executed election forms are to be
forwarded to the attention of the Committee or a person designated by the
Committee to receive them (the "Representative").

     IV.3 IRREVOCABILITY OF ELECTION. Upon receipt of the signed election form
by the Committee or its Representative, the election to defer Compensation shall
become irrevocable as to the year for which it is effective.

     IV.4 FORM OF DEFERRED COMPENSATION. Each Director who began participating
in the Plan prior to November 21, 2002, and who elects to defer Compensation
must further elect to either: (i) have the Company allocate to such Director
units in the form of hypothetical units of the Company's common stock (the
"Stock Units"); (ii) have the Company allocate to such Director units
("Investment Fund Units") in the form of hypothetical units in one or more
investment funds or investment vehicles made available to Directors from time to
time through the Plan (the "Investment Funds") or (iii) have the Company
allocate to such Director a combination of Stock Units and Investment Fund
Units. For each Director electing to defer Compensation who begins participating
in the Plan on or after November 21, 2002, the Company shall allocate only
Investment Fund Units to such Director and Stock Units shall not be available as
a hypothetical investment through the Plan. Notwithstanding the foregoing
provisions of this Section 4.4 or any other provision of the Plan, upon the
occurrence of a Change of Control (as defined in Section 8.7(b)), all Stock
Units credited to a Director's account immediately prior to the Change of
Control shall be immediately and automatically converted to a dollar amount
equal to the product of the number of such Stock Units times the higher of (i)
the Fair Market Value (as defined in Section 5.1) of the Company's common stock
as of the day of the Change of Control, and (ii) the highest per share price
paid for shares of the Company's common stock (or the equivalent value) in the
transaction constituting the Change of Control. The resulting dollar amount
shall, upon the occurrence of the Change of Control, be deemed immediately
transferred out of the Director's Stock Unit account and invested in the
Investment Fund that is a money market account or other interest-earning fund
made available to Directors through the Plan. Such dollar amount shall
subsequently be administered in accordance with the Plan's provisions as
Investment Fund Units (or as additional Investment Fund Units, as the case may
be).

     IV.5 EFFECT OF NO ELECTION. If a written election form for a calendar year
is not received by the Committee or its Representative at the time and in the
manner provided in Section 4.2 above, Compensation to which the Director becomes
entitled for that calendar year shall be distributed in the form of customary
cash payments.

     IV.6 DEFERRAL AMOUNT. A Director may elect to defer payment of up to 100%
of Compensation during a year, in 25% increments, until the expiration of the
Deferral Period, as defined in Section 8.1 hereof.

                                       -2-

<PAGE>

                                                                   Exhibit 10(b)

     IV.7 REVISION TO DEFERRAL ALLOCATION. If a Director who began participating
in the Plan prior to November 21, 2002, elects to discontinue his allocation to
his Stock Unit account for all or a portion of a given Plan year, he may not,
thereafter, elect to defer Compensation in the form of Stock Units.

                                    ARTICLE V

                                   STOCK UNITS

     V.1  STOCK UNITS. For each Director electing to defer Compensation in the
form of Stock Units in accordance with Section 4.4, the Company shall credit to
such Director's account as of the date of payment (the "Crediting Date") of such
Compensation that number of Stock Units equal to the number of shares of the
Company's common stock (including fractions) that could be purchased with the
amount of the Compensation that such Director elected to defer in the form of
Stock Units at the Fair Market Value of the Company's common stock on such
Crediting Date. The term "Fair Market Value" shall mean, for purposes of
determining the number of Stock Units credited to a Director's account, the
closing sale price for a share of the Company's common stock on the consolidated
reporting system for New York Stock Exchange issues on the trading day preceding
the Crediting Date and, for purposes of determining the value of a Stock Unit
for a distribution under Section 8.3, upon termination of the Plan or in the
event of a Change of Control of the Company (as defined in Section 8.7(b)), the
average of the closing quotations for the Company's common stock based on
composite transactions for New York Stock Exchange listed issues for the ten
trading days preceding the applicable date.

     V.2  DIVIDENDS. The Company shall credit to each Directors's account as of
the Crediting Date the number of Stock Units equal to the number of shares of
the Company's common stock (including fractions) that could be purchased at the
Fair Market Value of the Company's common stock on such Crediting Date, with the
dividends such Director would have received if he had been the owner of the
number of shares of the Company's common stock equal to the number of Stock
Units (excluding fractions) in his account on the date normal customary
dividends would have been paid. After a Director has terminated service on the
Board, dividends shall continue to be credited to such Director's Stock Unit
account until all Compensation deferred in the form of Stock Units has been
distributed pursuant to Article VIII hereof.

     V.3  ADJUSTMENT IN STOCK UNITS. The total number of Stock Units credited to
each Director's account shall be appropriately adjusted from time to time, as
determined by the Committee, for any increase or decrease in the number of
outstanding shares of the Company's common stock resulting from a subdivision or
combination of shares of common stock, a dividend payment in common stock, a
reclassification of common stock, a merger or consolidation, or for any other
change in the capital structure or shares of common stock. The determination of
the Committee shall be final, conclusive and binding upon all parties.

                                       -3-

<PAGE>

                                                                   Exhibit 10(b)

     V.4  TRANSFERS AND REALLOCATIONS. Transfers of amounts and reallocation of
account balances between a Stock Unit account and an Investment Fund Unit
account will not be permitted.

                                   ARTICLE VI

                              INVESTMENT FUND UNITS

     VI.1 INVESTMENT FUND UNITS. The Committee shall determine from time to time
the Investment Funds that will be available as hypothetical investments for
Directors and each Director may choose the Investment Fund or Funds to be used
as the deemed investments for his deferred Compensation. If no Investment Fund
is selected by the Director, deferred Compensation shall be deemed invested in
the Investment Fund that is a money market account. The Company shall credit to
such Director's account as soon after the Crediting Date as may be
administratively practicable the number of Investment Fund Units that could be
purchased with the amount of Compensation such Director elected to defer as
Investment Fund Units in accordance with Sections 4.1 and 4.2 hereof. The
Committee may change or discontinue at any time any Investment Fund available
under the Plan in its discretion; provided, however, that each affected Director
shall be given the opportunity to redirect the allocation of his account deemed
invested in discontinued Investment Fund Units among the other Investment Funds
offered, including any replacement fund.

     VI.2 TRANSFERS AND REALLOCATIONS. Subject to the rules established by the
Committee, a Director may transfer or reallocate amounts credited to his
Investment Fund Unit account among the various Investment Funds. A transfer or
reallocation will take effect as soon as administratively practicable following
the date on which the Committee or Representative receives notice of the change.
The Committee may, in its discretion, further restrict transfers or
reallocations by the Directors into or out of Investment Funds or specify
minimum or maximum amounts that may be transferred or reallocated by Directors.

     VI.3 ADJUSTMENT OF INVESTMENT UNIT ACCOUNTS. The Investment Unit accounts
shall be adjusted as of the close of each day during which the New York Stock
Exchange is open to engage in stock transactions ("Business Day") to reflect
increases or decreases in the value of such deemed investments.

                                   ARTICLE VII

                     COMPANY LIABILITY AND DIRECTOR'S RIGHTS

     Directors and their beneficiaries by virtue of participating in the Plan
have only an unsecured right to receive benefits from the Company as general
creditors of the Company. The Plan constitutes a mere promise to make payments
in the future. The adoption of the Plan and any setting aside of amounts by the
Company with which to discharge its obligations hereunder shall not be deemed to
create a trust for the benefit of Directors or their beneficiaries; legal and
equitable title to any funds so set aside shall remain in the Company, and any
recipient of benefits hereunder shall have no security or other interest in such
funds. Any and all funds so set aside shall remain subject

                                       -4-

<PAGE>

                                                                   Exhibit 10(b)

to the claims of the general creditors of the Company, present and future, and
no payment shall be made under the Plan unless the Company is then solvent. This
provision shall not require the Company to set aside any funds, but the Company
may set aside such funds if it chooses to do so. Notwithstanding the foregoing
provisions of this Article VII and any other provision of the Plan, an amount
equal to all deferred Compensation may be deposited into a trust (any such
trust, and successor thereto, being hereinafter called the "Trust") established
by the Company for the purpose of assuring payment of the Company's obligations
under the Plan. The Trust shall be subject to the claims of the general
creditors of the Company in the event of the Company's bankruptcy or insolvency.
Notwithstanding any establishment of the Trust, the Company shall remain
responsible for the payment of any amounts so payable which are not so paid by
the Trust.

                                  ARTICLE VIII

                         TIME AND METHOD OF DISTRIBUTION

         VIII.1 ELECTION FOR DISTRIBUTION. Directors may elect to defer
Compensation until (i) termination of Board service with the Company or, with
respect to Compensation that would otherwise have been paid, if not deferred, in
the calendar year in which termination of Board service occurs, the first
Business Day of the following calendar year; or (ii) the date specified in the
deferral election form executed by the Director (the "Deferral Date"), which
must be at least two years following the date Compensation would be paid, if it
were not deferred. The period during which Compensation is deferred is referred
to herein as the "Deferral Period." If the Director specifies a Deferral Date,
the Deferral Period will end on the Deferral Date, regardless of termination of
Board service, except that the Deferral Period shall always end upon the death
of the Director.

         VIII.2 TIMING OF DISTRIBUTION. As soon as practicable after the
expiration of the Deferral Period, all amounts credited to a Director shall be
distributed to him (or his designated beneficiary) in cash in a single lump-sum
payment, unless the Director has elected to receive the annual installment
payments over not less than two nor more than ten years. An election to receive
the distribution in installments must be made at least 13 months prior to the
end of the Deferral Period and may be made at the time of the deferral election
or at a later time on the form provided as Exhibit "C." A change to a deferral
election or form of distribution election hereunder will be permitted, but no
such change will be effective for a period of at least 13 months following the
date that the Committee is notified of such change. If payment in the form of
annual installment payments is elected, the second and remaining annual
installment payments, if any, shall be payable on the successive anniversary
dates of the first payment. If a Director who has deferred Compensation under
the Plan dies while a member of the Board, or after commencing to receive a
distribution under this Article, then any remaining payments shall be payable to
the Director's designated beneficiary as directed by the Director on Exhibit
"D."

         VIII.3 MANNER OF DISTRIBUTION - STOCK UNITS. For those Directors
electing to defer Compensation as Stock Units, distribution shall be as follows:
(i) for lump sum distributions, the amount of cash distributed shall be equal to
the number of Stock Units credited to a Director's account as of the payment
date multiplied by the Fair Market Value of the Company's common stock
(determined as described in Section 5.1 hereof) on the date on which such
payment is made; or (ii)

                                       -5-

<PAGE>

                                                                   Exhibit 10(b)

for annual installment distributions, the amount of each installment shall be
the numerator (equal to one) divided by the denominator (this being the total
number of remaining installment payments) multiplied by the Fair Market Value of
the Company's common stock as of the date on which such installment is paid.

         VIII.4 MANNER OF DISTRIBUTION -- INVESTMENT FUND UNITS. For those
Directors electing to defer Compensation as Investment Fund Units, distribution
shall be as follows: (i) for lump sum distributions, the amount of cash
distributed shall be equal to the value of the Investment Fund Units credited to
a Director's account as of the Business Day preceding the payment date; or (ii)
for annual installment distributions, the amount of each installment shall be
the numerator (equal to 1) divided by the denominator (this being the total
number of remaining installment payments) multiplied by the value of the
Investment Fund Units on the Business Day preceding the date on which such
installment is paid.

         VIII.5 DISTRIBUTION DUE TO HARDSHIP. A Director may request a
distribution due to Hardship by submitting a written request to the Committee
accompanied by evidence to demonstrate that the circumstances being experienced
qualify as a Hardship. The Committee shall have the authority to require such
evidence as it deems necessary to determine if a distribution is warranted. If
an application for a distribution due to a Hardship is approved, the
distribution is limited to an amount sufficient to meet the emergency. The
allowed distribution shall be payable in a method determined by the Committee as
soon as possible after approval of such distribution. A Director who has
commenced receiving installment payments under the Plan may request acceleration
of such payments in the event of a Hardship. The Committee may permit
accelerated payments to the extent such accelerated payment does not exceed the
amount necessary to meet the emergency. An allowed Hardship distribution or an
acceleration of payment of any amount deemed invested in Stock Units must also
be approved in advance by the Compensation Committee of the Board of Directors.

         "Hardship" means a severe financial hardship to the Director resulting
from a sudden and unexpected illness or accident of the Director or of a
dependent of the Director, loss of the Director's property due to casualty, or
other similar extraordinary and unforeseeable circumstances arising as a result
of events beyond the control of the Director. The circumstances that will
constitute a Hardship would depend upon the facts of each case, but, in any
case, payment may not be made in the event that such Hardship is or may be
relieved:

                  (1) through reimbursement or compensation by insurance or
         otherwise,

                  (2) by liquidation of the Director's assets, to the extent
         that liquidation of such assets would not itself cause severe financial
         hardship; or

                  (3) by cessation of deferrals of Compensation under the Plan.

         The need to send a Director's child to college or the desire to
purchase a home shall not be a Hardship.

                                       -6-

<PAGE>

                                                                   Exhibit 10(b)

         VIII.6 DESIGNATION OF BENEFICIARY. Any Director who elects to defer any
or all of his Compensation shall have the right to designate a beneficiary, or
beneficiaries who are to receive distribution of those payments if the Director
dies before the distribution as elected under this Article is made. Any
beneficiary designation, or change in the beneficiary designation, shall be made
in writing by completing and furnishing to the Committee or its Representative
the appropriate form attached hereto as Exhibit "D." The last designation of
beneficiary received by the Committee or its Representative shall be controlling
over any testamentary or purported disposition by the Director, provided that no
designation, or change of designation thereof shall be effective unless received
by the Committee prior to the death of the Director. If there is no designated
beneficiary living at the time distribution of any Compensation is to be made,
or if any designation of beneficiary shall be ineffective for any reason, then
the Compensation shall be paid to the estate of the Director.

         VIII.7 CHANGE OF CONTROL

                (a) Distribution upon a Change of Control. Notwithstanding the
         fact that the Deferral Period may not have ended and notwithstanding a
         prior election by a Director to have deferred Compensation distributed
         in installments, if, prior to a Change of Control, a Director shall
         have elected in a form and manner reasonably satisfactory to the
         Company that his Investment Fund Unit account (including, without
         limitation, deferred Compensation, interest, dividends and earnings
         thereon, and any amount attributable to Stock Units that were
         automatically converted upon the occurrence of the Change of Control)
         shall be distributed to the Director in a lump sum upon a Change of
         Control, such amount shall be so paid.

                (b) Definition of Change of Control. As used in the Plan,
         'Change of Control' shall mean:

                    (i)  the acquisition by any `Person' (as defined in Section
                8.7(c) hereof) of `Beneficial Ownership' (as defined in Section
                8.7(c) hereof) of 30% or more of the outstanding Shares of the
                Company's Common Stock, $0.10 par value per share (the `Common
                Stock') or 30% or more of the combined voting power of the
                Company's then outstanding securities; provided, however, that
                for purposes of this subsection 8.7(b)(i), the following shall
                not constitute a Change of Control:

                         (A) any acquisition (other than a 'Business
                    Combination' (as defined in Section 8.7(b)(iii) - hereof)
                    which constitutes a Change of Control under Section
                    8.7(b)(iii) hereof) of Common Stock directly from the
                    Company,

                         (B) any acquisition of Common Stock by the Company or
                    its subsidiaries,

                         (C) any acquisition of Common Stock by any employee
                    benefit plan (or related trust) sponsored or maintained by
                    the Company or any corporation controlled by the Company, or

                                       -7-

<PAGE>

                                                                   Exhibit 10(b)

                                 (D) any acquisition of Common Stock by any
                           corporation pursuant to a Business Combination which
                           does not constitute a Change of Control under Section
                           8.7(b)(iii) hereof; or

                           (ii)  individuals who, as of the effective date of
                  this amendment to the Plan, constitute the Board (the
                  'Incumbent Board') cease for any reason to constitute at least
                  a majority of the Board; provided, however, that any
                  individual becoming a director subsequent to the effective
                  date of this amendment to the Plan whose election, or
                  nomination for election by the Company's shareholders, was
                  approved by a vote of at least a majority of the directors
                  then comprising the Incumbent Board shall be considered a
                  member of the Incumbent Board, unless such individual's
                  initial assumption of office occurs as a result of an actual
                  or threatened election contest with respect to the election or
                  removal of directors or other actual or threatened
                  solicitation of proxies or consents by or on behalf of a
                  Person other than the Incumbent Board; or

                           (iii) consummation of a reorganization, merger or
                  consolidation (including a merger or consolidation of the
                  Company or any direct or indirect subsidiary of the Company),
                  or sale or other disposition of all or substantially all of
                  the assets of the Company (a `Business Combination'), in each
                  case, unless, immediately following such Business Combination,

                                 (A) the individuals and entities who were the
                           Beneficial Owners of the Company's outstanding Common
                           Stock and the Company's voting securities entitled to
                           vote generally in the election of directors
                           immediately prior to such Business Combination have
                           direct or indirect Beneficial Ownership,
                           respectively, of more than 50% of the then
                           outstanding shares of common stock, and more than 50%
                           of the combined voting power of the then outstanding
                           voting securities entitled to vote generally in the
                           election of directors, of the Post-Transaction
                           Corporation (as defined in Section 8.7(c) hereof),
                           and

                                 (B) except to the extent that such ownership
                           existed prior to the Business Combination, no Person
                           (excluding the Post-Transaction Corporation and any
                           employee benefit plan or related trust of either the
                           Company, the Post-Transaction Corporation or any
                           subsidiary of either corporation) Beneficially Owns,
                           directly or indirectly, 30% or more of the then
                           outstanding shares of common stock of the corporation
                           resulting from such Business Combination or 30% or
                           more of the combined voting power of the then
                           outstanding voting securities of such corporation,
                           and

                                 (C) at least a majority of the members of the
                           board of directors of the Post-Transaction
                           Corporation were members of the Incumbent Board at

                                       -8-

<PAGE>

                                                                   Exhibit 10(b)
               the time of the execution of the initial agreement, or of the
               action of the Board, providing for such Business Combination; or

               (iv)   approval by the shareholders of the Company of a complete
          liquidation or dissolution of the Company.

          (c)  Other Definitions. As used in Section 8.7(b) hereof, the
     following words or terms shall have the meanings indicated:

               (i)    Affiliate: `Affiliate' (and variants thereof) shall mean a
          Person that controls, or is controlled by, or is under common control
          with, another specified Person, either directly or indirectly.

               (ii)   Beneficial Owner: `Beneficial Owner' (and variants
          thereof), with respect to a security, shall mean a Person who,
          directly or indirectly (through any contract, understanding,
          relationship or otherwise), has or shares (i) the power to vote, or
          direct the voting of, the security, and/or (ii) the power to dispose
          of, or to direct the disposition of, the security.

               (iii)  Person: `Person' shall mean a natural person or company,
          and shall also mean the group or syndicate created when two or more
          Persons act as a syndicate or other group (including, without
          limitation, a partnership or limited partnership) for the purpose of
          acquiring, holding, or disposing of a security, except that `Person'
          shall not include an underwriter temporarily holding a security
          pursuant to an offering of the security.

               (iv)   Post-Transaction Corporation: Unless a Change of Control
          includes a Business Combination (as defined in Section 8.7(b)(iii)
          hereof), `Post-Transaction Corporation' shall mean the Company after
          the Change of Control. If a Change of Control includes a Business
          Combination, `Post-Transaction Corporation' shall mean the corporation
          resulting from the Business Combination unless, as a result of such
          Business Combination, an ultimate parent corporation controls the
          Company or all or substantially all of the Company's assets either
          directly or indirectly, in which case, `Post-Transaction Corporation'
          shall mean such ultimate parent corporation."

                                   ARTICLE IX

                            REQUESTS FOR DISTRIBUTION

     IX.1 REQUESTS UNDER THE PLAN. A Director, or any other person or entity
claiming on behalf of a Director, may present a written request to the Committee
or its Representative for distribution of any amounts due or alleged to be due
under the Plan. Within (30) days following receipt of the request, the Committee
shall advise the Director or other person or entity in writing of the amounts
payable and the method of distribution of such amounts.

                                      -9-

<PAGE>

                                                                   Exhibit 10(b)
     IX.2 REVIEW OF REQUESTS.  If a request for distribution  under the Plan is
not approved, the Committee shall set forth in writing in a manner calculated to
be understood by the Director or other person or entity: (i) the specific reason
or reasons for the action taken; (ii) specific reference to the pertinent
provisions of the Plan upon which the action was taken; (iii) a description of
any additional material or information necessary to have the request approved
and an explanation of why such material or information is necessary; and (iv) an
explanation of the Committee's review procedure. The Committee shall afford the
Director or other person or entity a reasonable opportunity for a full and fair
review by the Committee of its action taken if requested to do so within thirty
(30) days after receipt of the written statement of the Committee's action.

                                    ARTICLE X

                                  MISCELLANEOUS

     X.1 EFFECTIVE DATE. This Plan, as amended and restated, shall be effective
November 21, 2002, and shall continue until further amended or terminated by the
Board.

     X.2  EFFECT OF THE PLAN. The establishment and continuance of the Plan by
the Company shall not constitute a contract of service between the Company and
any Director, and shall not be deemed to be consideration for, inducement to, or
a condition of service of any person. The deferral of any Compensation pursuant
to the provisions of the Plan shall not limit the rights of the shareholders or
Directors of the Company to remove a Director as permitted by the Certificate of
Incorporation, By-Laws or applicable laws. No trust or other fiduciary
relationships shall be created or deemed to arise from any deferrals under the
Plan.

     X.3  PROHIBITION AGAINST ASSIGNMENT. The right of any Director (or his
designated beneficiary) to receive any payment or installment under the Plan
shall not be subject in any manner to attachment or other legal process or
proceedings for discharge of the debts of the Director or beneficiary, and any
such payment or installment shall not be subject to anticipation, alienation,
sale, transfer, assignment, pledge, mortgage or encumbrance.

     X.4  AMENDMENT AND TERMINATION. (i) The Board intends to continue the Plan
indefinitely but reserves the right to modify the Plan from time to time, or to
repeal the Plan entirely, or to direct the permanent discontinuances or
temporary suspension of payments under the Plan; provided that no such
modification, repeal, discontinuance or suspension shall affect or otherwise
deprive the Directors of any payments to which they may be entitled under the
Plan at the time thereof; (ii) No amendment or termination of this Plan shall,
without the consent of the participants under the Plan or beneficiaries
thereunder change the amount of deferred Compensation owed such person under the
Plan; and (iii) Upon any termination of the Plan, each Director (or, if no
longer living, the Director's beneficiary) entitled to or receiving payments
hereunder shall be promptly paid in a cash lump sum all deferred Compensation
(together with interest and/or dividends thereon) owed to the Director and
accounted for in the Director's Stock Unit or Investment Fund Unit account.
Amounts owed and Fair Market Value shall be determined as of the effective date
of such termination.

                                      -10-

<PAGE>

                                                                   Exhibit 10(b)
     X.5 GOVERNING LAW. Except to the extent preempted or superseded by the
federal laws of the United States of America, the laws of the State of Louisiana
will govern the Plan.

     X.6 NOTICES. All notices, reports, statements, distributions or payments
given, made, delivered or transmitted to a Director or his designated
beneficiary shall be deemed to be duly given, made, delivered or transmitted
when mailed, by first class mail, postage prepaid, addressed to the Director or
beneficiary at the address appearing on the books of the Committee. Written
directions, notices, and other communciations to the Company, the Committee or
its Representative, shall be deemed to be duly given, made or delivered when
received by the Committee or its Representative at such location as may from
time to time be specified.

                                      -11-

<PAGE>

                                                                   Exhibit 10(b)
     X.7 GENDER AND NUMBER. Whenever appropriate in the Plan, the masculine
gender shall be construed to include the feminine, and the feminine gender shall
be construed to include the masculine. Words in the singular shall be construed
to include the plural, and the plural to include the singular.

     Executed effective the 21st day of November, 2002.

                                 Tidewater Inc.

                                 By:  /s/ J. Keith Lousteau
                                      ------------------------------------------
                                               J. Keith Lousteau
                                      Senior Vice President, Treasurer
                                         and Chief Financial Officer

Attest:

By:  /s/ Michael L. Goldblatt
     ---------------------------
     Michael L. Goldblatt
     Assistant Secretary

                                      D-1Exhibit 10.2

                              DIANON SYSTEMS, INC.
                            1996 STOCK INCENTIVE PLAN

SECTION 1.  Purposes

     The purposes of the Dianon Systems, Inc. 1996 Stock Incentive Plan
(the "Plan") are (i) to enable Dianon Systems, Inc. (the "Company") and its
Related Companies (as defined below) to attract, retain and reward employees
and strengthen the existing mutuality of interests between such employees and
the Company's stockholders by offering such employees an equity interest in
the Company, and (ii) to enable the Company to pay part of the compensation of
its Outside Directors (as defined in Section 5.2) in the form of equity of the
Company, thereby increasing such directors' proprietary interests in the
Company. For purposes of the Plan, a "Related Company" means any corporation,
partnership, joint venture or other entity in which the Company owns, directly
or indirectly, at least a 20% beneficial ownership interest.

SECTION 2.  Types of Awards

     2.1    Awards under the Plan may be in the form of (i) Stock Options;
(ii) Stock Appreciation Rights; (iii) Restricted Stock; (iv) Deferred
Stock; (v) Bonus Stock; (vi) Loans; and/or (vii) Tax Offset Payments. One or
more types of awards may be granted, which may be independent or granted
in tandem. If two awards are granted in tandem, the award holder may exercise
(or otherwise receive the benefit of) one award only to the extent he or she
relinquishes the tandem award.

     2.2    Outside Directors shall receive Stock Options, Limited Stock
Appreciation Rights and Stock Grants as provided in Section 15. In addition,
Outside Directors may be granted awards in one or more of the forms set forth
in Section 2.1.

SECTION 3.  Administration

     3.1    The Plan shall be administered (i) by the Compensation Committee
of the Company's Board of Directors (the "Board") or such other committee of
directors as the Board shall designate (the "Committee"), with respect to
awards to persons other than Outside Directors, and (ii) by the Board with
respect to awards to Outside Directors (except as provided in Section 4.4).
The Committee shall consist of not less than two directors each of whom is an
Outside Director. The members of the Committee shall serve at the pleasure of
the Board.

     3.2    For purposes of this Plan the term "Granting Authority" shall mean
(i) the Board of Directors with respect to awards to Outside Directors (except
as provided in Section 4.4), and (ii) the Committee with respect to all other
awards. The Granting Authority shall have the following authority with respect
to awards under the Plan within its jurisdiction:  to grant such awards to
persons eligible to receive them under the Plan; to adopt, alter and repeal
such administrative rules, guidelines and practices governing the Plan as it
shall deem advisable; to interpret the terms and provisions of the Plan and
any award granted by it under the Plan; and to otherwise supervise the
administration of the Plan. In particular, and without limiting its authority
and powers, the Granting Authority shall have the authority with respect to
the awards within its jurisdiction:

     (a)    to determine whether and to what extent any award or combination
            of awards will be granted hereunder, including whether any awards
            will be granted in tandem with each other;

     (b)    to select the eligible persons to whom awards will be granted;

     (c)    to determine the number of shares of the common stock of the
            Company (the "Stock") to be covered by each award granted
            hereunder subject to the limitations contained herein;

     (d)    to determine the terms and conditions of any award granted
            hereunder, including, but not limited to, any vesting or other
            restrictions based on such performance objectives (the
            "Performance Objectives") and such other factors as the Granting
            Authority may establish, and to determine whether the Performance
            Objectives and other terms and conditions of the award are
            satisfied;

     (e)    to determine the treatment of awards upon an award holder's
            retirement, disability, death, termination for cause or other
            termination of employment or service with the Company or Related
            Company;

     (f)    to determine pursuant to a formula or otherwise the fair market
            value of the Stock on a given date; provided, however, that if the
            Granting Authority fails to make such a determination, fair market
            value of the Stock on a given date shall be the closing sale price
            on a given date, or if no such sale of Stock occurs on such date,
            the weighted average of the closing sale prices on the nearest
            trading dates before and after such date;

     (g)    to determine that amounts equal to the amount of any dividends
            declared with respect to the number of shares covered by an award
            (i)  will be paid to the award holder currently or (ii)  will be
            deferred and deemed to be reinvested or (iii) will otherwise be
            credited to the award holder, or that the award holder has no
            rights with respect to such dividends;

     (h)    to determine whether, to what extent, and under what circumstances
            Stock and other amounts payable with respect to an award will be
            deferred either automatically or at the election of an award
            holder, including providing for and determining the amount (if any)
            of deemed earnings on any deferred amount during any deferral
            period;

     (i)    to provide that the shares of Stock received as a result of an
            award shall be subject to a right of first refusal, pursuant to
            which the award holder shall be required to offer to the Company
            any shares that the award holder wishes to sell, subject to such
            terms and conditions as the Granting Authority may specify;

     (j)    to amend the terms of any award (including those granted under
            Section 15), prospectively or retroactively; provided, however,
            that no amendment shall impair the rights of the award holder
            without his or her written consent; and

     (k)    to substitute new Stock Options for previously granted Stock
            Options, or for options granted under other plans or agreements,
            in each case including previously granted options having higher
            option prices.

     3.3    The Committee shall have the right to designate awards as
"Performance Awards." Awards so designated shall be granted and administered
in a manner designed to preserve the deductibility of the compensation
resulting from such awards in accordance with Section 162(m) of the Internal
Revenue Code (the "Code"). The grant or vesting of a Performance Award shall
be subject to the achievement of Performance Objectives established by the
Committee based on one or more of the following criteria, in each case applied
to the Company on a consolidated basis and/or to a business unit and which the
Committee may use as an absolute measure, as a measure of improvement relative
to prior performance, or as a measure of comparable performance relative to a
peer group of companies:  sales, operating profits, operating profits before
interest expense and taxes, net earnings, earnings per share, return on
equity, return on assets, return on invested capital, total shareholder
return, cash flow, debt to equity ratio, market share, stock price, economic
value added, and market value added.
     The Performance Objectives for a particular Performance Award relative
to a particular fiscal year shall be established by the Committee in writing
no later than 90 days after the beginning of such year. The Committee's
determination as to the achievement of Performance Objectives  relating to a
Performance Award shall be made in writing. The Committee shall have
discretion to modify the Performance Objectives or vesting conditions of a
Performance Award only to the extent that the  exercise of such discretion
would not cause the Performance Award to fail to qualify as "performance-
based compensation" within the meaning of Section 162(m) of the Code.

     3.4    All  determinations made by the Granting Authority pursuant to the
provisions of the Plan shall be final and binding on all persons, including
the Company and Plan participants.

     3.5    The Committee may from time to time delegate to one or more
officers of the Company any or all of its authorities granted hereunder
except with respect to awards granted to persons subject to Section 16 of
the Securities Exchange Act of 1934 or Performance Awards. The Committee
shall specify the maximum number of shares that the officer or officers to
whom such authority is delegated may award.

SECTION 4.  Stock Subject to Plan

     4.1    The total number of shares of Stock which may be issued under the
Plan shall be 700,000, of which 630,000 shall be used for awards to employees
and 70,000 shall be used for awards to Outside Directors (all subject to
adjustment as provided below). Such shares may consist of authorized but
unissued shares or treasury shares. The exercise of a Stock Appreciation Right
for cash or the payment of any other award in cash shall not count against
this share limit.

     4.2    To the extent a Stock Option terminates without having been
exercised, or an award terminates without the award holder having received
payment of the award, or shares awarded are forfeited, the shares subject to
such award shall again be available for distribution in connection with future
awards under the Plan. Shares of Stock equal in number to the shares
surrendered in payment of the option price, and shares of Stock which are
withheld in order to satisfy federal, state or local tax liability, shall not
count against the above limit, and shall again be available for grants under
the Plan.

     4.3    No employee  shall be granted Stock Options, Stock Appreciation
Rights, Restricted Stock, Deferred Stock, and/or Bonus Stock, or any
combination of the foregoing with respect to more than 300,000 shares of
Stock in any fiscal year (subject to adjustment as provided in Section 4.4).
No employee shall be granted a Tax Offset Payment in any fiscal year with
respect to more than the number of shares of Stock covered by awards granted
to such employee in such fiscal year.

     4.4    In the event of any merger, reorganization, consolidation, sale
of substantially all assets, recapitalization, Stock dividend, Stock split,
spin-off, split-up,  split-off, distribution of assets or other change in
corporate structure affecting the Stock, a substitution or adjustment, as may
be determined to be appropriate by the Committee in its sole discretion, shall
be made in the aggregate number of shares reserved for issuance under the
Plan, the number of shares as to which awards may be granted to any individual
in any calendar year, the number and type of shares subject to outstanding
awards and the amounts to be paid by award holders or the Company, as the case
may be, with respect to outstanding awards; provided, however, that no such
adjustment shall increase the aggregate value of any outstanding award. In the
event any change described in this Section 4.4 occurs, the Committee shall
make appropriate adjustment in the awards previously granted and to be granted
to Outside Directors under the Plan; provided that no such adjustment shall
increase the aggregate value of any outstanding award.

SECTION 5.  Eligibility

     5.1    Employees of the Company or a Related Company, including employees
who are officers and/or directors of the Company, are eligible to be granted
awards under the Plan, other than under Section 15. Employees shall be
selected for participation in the Plan from time to time by the Committee, in
its sole discretion, from among those eligible.

     5.2    Awards under Section 15 of the Plan shall be made solely to
Outside Directors, which term shall mean any director of the Company other
than one who is an employee of the Company or a Related Company. The Board, in
its discretion, may also grant other awards under the Plan in one or more of
the forms set forth in Section 2.1 to one or more Outside Directors.

SECTION 6.  Stock Options

     6.1    The Stock Options awarded under the Plan may be of two types:
(i) Incentive Stock Options within the meaning of Section 422 of the Code or
any successor provision thereto (which may only be granted to employees); and
(ii) Non-Qualified Stock Options. To the extent that any Stock Option does not
qualify as an Incentive Stock Option, it shall constitute a Non-Qualified
Stock Option.

     6.2    Subject to the following provisions, Stock Options awarded under
the Plan shall be in such form and shall have such terms and conditions as the
Granting Authority may determine:

     (a)    Option Price. The option price per share of Stock purchasable under
            a Stock Option shall be determined by the Granting Authority, and
            may be less than the fair market value of the Stock on the date of
            the award of the Stock Option.

     (b)    Option Term. The term of each Stock Option shall be fixed by the
            Granting Authority.

     (c)    Exercisability. Stock Options shall be exercisable at such time or
            times and subject to such terms and conditions as shall be
            determined by the Granting Authority. The Granting Authority may
            waive such exercise provisions or accelerate the exercisability of
            the Stock Option at any time in whole or in part.

     (d)    Method of Exercise. Stock Options may be exercised in whole or in
            part at any time during the option period by giving written notice
            of exercise to the Company specifying the number of shares to be
            purchased, accompanied by payment of the purchase price. Payment
            of the purchase price shall be made in such manner as the Granting
            Authority may provide in the award, which may include cash
            (including cash equivalents), delivery of shares of Stock already
            owned by the optionee or subject to awards hereunder, "cashless
            exercise", any other manner permitted by law determined by the
            Granting Authority, or any combination of the foregoing. If the
            Granting Authority determines that a Stock Option may be exercised
            using shares of Restricted Stock, then unless the Granting
            Authority provides otherwise, the shares received upon the
            exercise of a Stock Option which are paid for using Restricted
            Stock shall be restricted in accordance with the original terms of
            the Restricted Stock award.

     (e)    No Stockholder Rights. An optionee shall have neither rights to
            dividends or other rights of a stockholder with respect to shares
            subject to a Stock Option until the optionee has given written
            notice of exercise and has paid for such shares.

     (f)    Surrender Rights. The Granting Authority may provide that options
            may be surrendered for cash upon any terms and conditions set by
            the Granting Authority.

     (g)    Non-transferability. Unless otherwise provided by the Granting
            Authority, (i) Stock Options shall not be transferable by the
            optionee other than by will or by the laws of descent and
            distribution, and (ii) during the optionee's lifetime, all Stock
            Options shall be exercisable only by the optionee or by his or her
            guardian or legal representative.

     (h)    Termination of Service. Following the termination of an optionee's
            service with the Company or a Related Company, the Stock Option
            shall be exercisable to the extent determined by the Granting
            Authority. The Granting Authority may provide different
            post-termination exercise provisions with respect to termination
            of service for different reasons. The Granting Authority may
            provide that, notwithstanding the option term fixed pursuant to
            Section 6.2(b), a Stock Option which is outstanding on the date of
            an optionee's death shall remain outstanding for an additional
            period after the date of such death.

      6.3   Notwithstanding the provisions of Section 6.2, no Incentive Stock
Option shall (i) have an option price which is less than 100% of the fair
market value of the Stock on the date of the award of the Incentive Stock
Option, (ii) be exercisable more than ten years after the date such Incentive
Stock Option is awarded, or (iii) be awarded more than ten years after the
effective date of the Plan specified in Section 19. No Incentive Stock Option
granted to an employee who owns more than 10% of the total combined voting
power of all classes of stock of the Company or any of its parent or
subsidiary corporations, as defined in Section 424 of the Code, shall (A) have
an option price which is less than 110% of the fair market value of the Stock
on the date of award of the Incentive Stock Option or (B) be exercisable more
than five years after the date such Incentive Stock Option is awarded.

SECTION 7.  Stock Appreciation Rights

     7.1    A Stock Appreciation Right shall entitle the holder thereof to
receive payment of an amount, in cash, shares of Stock or a combination
thereof, as determined by the Granting Authority, equal in value to the
excess of the fair market value of the number of shares of Stock as to which
the award is granted on the date of exercise over an amount specified by the
Granting Authority. Any such award shall be in such form and shall have such
terms and conditions as the Granting Authority may determine. The grant shall
specify the number of shares of Stock as to which the Stock Appreciation Right
is granted.

     7.2    The Granting Authority may provide that a Stock Appreciation
Right may be exercised only within the 60-day period following occurrence of a
Change of Control (as defined in Section 17.2) (such Stock Appreciation Right
being referred to herein as a Limited Stock Appreciation Right). The Granting
Authority may also provide that in the event of a Change of Control the amount
to be paid upon exercise of a Stock Appreciation Right shall be based on the
Change of Control Price (as defined in Section 17.3).

SECTION 8.  Restricted Stock

     Subject to the following provisions, all awards of Restricted Stock shall
be in such form and shall have such terms and conditions as the Granting
Authority may determine:

     (a)    The Restricted Stock award shall specify the number of shares of
            Restricted Stock to be awarded, the price, if any, to be paid by
            the recipient of the Restricted Stock and the date or dates on
            which, or the conditions upon the satisfaction of which, the
            Restricted Stock will vest. The grant and/or the vesting of
            Restricted Stock may be conditioned upon the completion of a
            specified period of service with the Company or a Related Company,
            upon the attainment of specified Performance Objectives or upon
            such other criteria as the Granting Authority may determine.

     (b)    Stock certificates representing the Restricted Stock awarded under
            the Plan shall be registered in the award holder's name, but the
            Granting Authority may direct that such certificates be held by
            the Company on behalf of the award holder. Except as may be
            permitted by the Granting Authority, no share of Restricted Stock
            may be sold, transferred, assigned, pledged or otherwise encumbered
            by the award holder until such share has vested in accordance with
            the terms of the Restricted Stock award. At the time Restricted
            Stock vests, a certificate for such vested shares shall be
            delivered to the award holder (or his or her designated
            beneficiary in the event of death), free of all restrictions.

     (c)    The Granting Authority may provide that the award holder shall
            have the right to vote or receive dividends on Restricted Stock.
            Unless the Granting Authority provides otherwise, Stock received
            as a dividend on, or in connection with a stock split of,
            Restricted Stock shall be subject to the same restrictions as the
            Restricted Stock.

     (d)    Except as may be provided by the Granting Authority, in the event
            of an award holder's termination of service before all of his or
            her Restricted Stock has vested, or in the event any conditions to
            the vesting of Restricted Stock have not been satisfied prior to
            any deadline for the satisfaction of such conditions set forth in
            the award, the shares of Restricted Stock which have not vested
            shall be forfeited, and the Granting Authority may provide that
            (i) any purchase price paid by the award holder shall be returned
            to the award holder or (ii) a cash payment equal to the Restricted
            Stock's fair market value on the date of forfeiture, if lower,
            shall be paid to the award holder.

     (e)    The Granting Authority may waive, in whole or in part, any or all
            of the conditions to receipt of, or restrictions with respect to,
            any or all of the award holder's Restricted Stock, other than
            Performance Awards whose vesting was made subject to satisfaction
            of one or more Performance Objectives (except that the Committee
            may waive conditions or restrictions with respect to Performance
            Awards if such waiver would not cause the Performance Award to
            fail to qualify as "performance-based compensation" within the
            meaning of Section 162(m) of the Code).

SECTION 9.  Deferred Stock Awards

     Subject to the following provisions, all awards of Deferred Stock shall
be in such form and shall have such terms and conditions as the Granting
Authority may determine:

     (a)    The Deferred Stock award shall specify the number of shares of
            Deferred Stock to be awarded and the duration of the period (the
            "Deferral Period") during which, and the conditions under which,
            receipt of the Stock will be deferred. The Granting Authority may
            condition the grant or vesting of Deferred Stock, or receipt of
            Stock or cash at the end of the Deferral Period, upon the
            attainment of specified Performance Objectives or such other
            criteria as the Granting Authority may determine.

     (b)    Except as may be provided by the Granting Authority, Deferred
            Stock awards may not be sold, assigned, transferred, pledged or
            otherwise encumbered during the Deferral Period.

     (c)    At the expiration of the Deferral Period, the award holder (or his
            or her designated beneficiary in the event of death) shall receive
            (i) certificates for the number of shares of Stock equal to the
            number of shares covered by the Deferred Stock award, (ii) cash
            equal to the fair market value of such Stock, or (iii) a
            combination of shares and cash, as the Granting Authority may
            determine.

     (d)    Except as may be provided by the Granting Authority, in the event
            of an award holder's termination of service before the Deferred
            Stock has vested, his or her Deferred Stock award shall be
            forfeited.

     (e)    The Granting Authority may waive, in whole or in part, any or all
            of the conditions to receipt of, or restrictions with respect to,
            Stock or cash under a Deferred Stock award, other than with
            respect to Performance Awards (except that the Committee may waive
            conditions or restrictions with respect to Performance Awards if
            such waiver would not cause the Performance Award to fail to
            qualify as "performance-based compensation" within the meaning of
            Section 162(m) of the Code).

SECTION 10. Bonus Stock

     The Granting Authority may award Bonus Stock subject to such terms and
conditions as the Granting Authority shall determine. The grant of Bonus Stock
may be conditioned upon the attainment of specified Performance Objectives or
upon such other criteria as the Granting Authority may determine. The Granting
Authority may waive such conditions in whole or in part other than with
respect to Performance Awards (except that the Committee may waive conditions
or restrictions with respect to Performance Awards if such waiver would not
cause the Performance Award to fail to qualify as "performance-based
compensation" within the meaning of Section 162(m) of the Code). The Granting
Authority shall also have the right to eliminate or reduce the amount of Bonus
Stock otherwise payable under an award. Unless otherwise specified by the
Granting Authority, no money shall be paid by the recipient for the Bonus
Stock. Alternatively, the Granting Authority may offer the award holder the
opportunity to purchase Bonus Stock at a discount from its fair market value.
The Bonus Stock award shall be satisfied by the delivery of the designated
number of shares of Stock which are not subject to restriction.

SECTION 11. Loans

     The Granting Authority may provide that the Company shall make, or
arrange for, a loan or loans with respect to the exercise of any Stock Option
awarded under the Plan, with respect to the payment of the purchase price, if
any, of any Restricted Stock awarded hereunder or with respect to any taxes
arising from an award hereunder; provided, however, that the Company shall not
loan more than the sum of (i) the excess of the purchase or exercise price of
an award over the par value of any shares of Stock awarded plus (ii) the
amount of any taxes arising from such award. The Granting Authority shall have
full authority to decide whether a loan will be made hereunder and to
determine the amount, term and provisions of any such loan, including the
interest rate to be charged, whether the loan will be with or without recourse
against the borrower, any security for the loan, the terms on which the loan
is to be repaid and the conditions, if any, under which the loan may be
forgiven.

SECTION 12. Tax Offset Payments

     The Granting Authority may provide for a Tax Offset Payment by the
Company with respect to one or more awards granted under the Plan. The Tax
Offset Payment shall be in an amount specified by the Granting Authority,
which shall not exceed the amount necessary to pay the federal, state, local
and other taxes payable with respect to the applicable award and the receipt
of the Tax Offset Payment, assuming that the award holder is taxed at the
maximum  tax rate applicable to such income. The Tax Offset Payment shall be
paid solely in cash.

SECTION 13. Election to Defer Awards

     The Granting  Authority may permit an employee or Outside Director to
elect to defer receipt of an award (other than an award  pursuant to Section
15) for a specified period or until a specified  event,  upon such terms as
are determined by the Granting Authority.

SECTION 14. Tax Withholding

     14.1   Each employee shall, no later than the date as of which the value
of an award first becomes includible in such person's  gross income for
applicable tax purposes, pay to the Company, or make arrangements satisfactory
to the Committee regarding payment of, any federal, state, local or other
taxes of any kind required by law to be withheld with respect to the award.
The obligations of the Company under the Plan shall be conditional on such
payment or arrangements, and the Company (and, where applicable, any Related
Company), shall, to the extent permitted by law, have the right to deduct any
such taxes from any payment of any kind otherwise due to the employee.

     14.2   To the extent permitted by the Committee, and subject to such
terms and conditions as the Committee may provide, an employee may elect to
have the withholding tax obligation, or any additional tax obligation with
respect to any awards hereunder, satisfied by (i) having the Company withhold
shares of Stock otherwise deliverable to such person with respect to the award
or (ii) delivering to the Company shares of unrestricted Stock. Alternatively,
the Committee may require that a portion of the shares of Stock otherwise
deliverable be applied to satisfy the withholding tax obligations with respect
to the award.

SECTION 15. Automatic Stock Options, Limited Stock Appreciation Rights and
Stock Grants for Outside Directors

     15.1   Outside Directors shall be granted Stock Options as follows:

     (a)    Initial Grant. Each person who is an Outside Director on the date
            of adoption of the Plan by the Board shall be granted on such date
            a Stock Option to purchase the number of whole shares of Stock
            obtained by dividing $5,000 by the closing sales price of the
            Stock on the date of grant. Each person who becomes an Outside
            Director after such date shall be granted, on the first trading
            day coincident with or immediately following the effective date of
            his or her election as an Outside Director, a Stock Option to
            purchase the number of whole shares of Stock obtained by dividing
            $5,000 by the closing sales price of the Stock on the date of
            grant.

     (b)    Quarterly Grants. On the first trading day of each calendar
            quarter beginning with October 1, 1995, each Outside Director then
            serving on the Board and who has served for all or a portion of
            the previous calendar quarter shall be granted a Stock Option to
            purchase the number of whole shares of Stock obtained by dividing
            $5,000 by the closing sales price of the Stock on the date of
            grant.

     (c)    For purposes of this Section 15.1, the term trading day shall mean
            a day on which the Stock is traded on a national securities
            exchange, on the Nasdaq National Market, or in the over-the-
            counter market.

     (d)    Notwithstanding the foregoing, if on any date on which Stock
            Options are to be granted under this Section 15.1 the remaining
            shares available for issuance to Outside Directors under the Plan
            are insufficient to enable each Outside Director to receive a
            Stock Option to purchase the applicable number of shares of Stock
            set forth above, each Outside Director who is entitled to be
            granted a Stock Option pursuant to this Section 15.1 on such date
            shall be granted a Stock Option to purchase his or her pro rata
            portion of such remaining shares.

     15.2   Stock Options granted under this Section 15 shall be Non-Qualified
Stock Options, and shall have the following terms and conditions:

     (a)    Option Price. The option price per share of Stock purchasable under
            the Stock Option shall be equal to the closing sales price of the
            Stock on the date the Stock Option is granted.

     (b)    Term of Option. The term of the Stock Option shall be ten years
            from the date of grant, subject to earlier termination in the
            event of termination of service as a director, as set forth in
            paragraphs (e) and (f) below.

     (c)    Exercisability. Subject to paragraphs (e) and (f) below, each
            Stock Option shall vest with respect to 10% of the underlying
            shares on the date which is three months after the date of grant,
            and an additional 10% at the end of each three-month period
            thereafter, provided that the optionee is a director of the
            Company on such date. The minimum number of shares with respect to
            which a Stock Option may be exercised is the lesser of 100 shares
            or the number of shares then subject to the Stock Option.

     (d)    Method of Exercise. The Stock Options may be exercised in whole or
            in part at any time during the option period by giving written
            notice of exercise to the Company specifying the number of shares
            to be purchased, accompanied by payment of the purchase price.
            Payment of the purchase price shall be made in cash (including
            cash equivalents) or by delivery of shares of Stock already owned
            by the optionee for at least six months, or by any combination of
            the foregoing. Shares delivered upon payment of the exercise price
            shall be valued at the average of the high and low sale price of
            the Stock on the date of exercise (or, if the Stock is not traded
            on such date, at the weighted average of the high and low prices
            on the nearest trading dates before and after such date).

     (e)    Termination of Service as Director. If an optionee's service as a
            director is terminated for any reason, such director's Stock
            Options may be exercised for five years following such termination
            of service (but not beyond the Option term), but only to the
            extent such Options were vested on the date of termination of
            service.

     (f)    Change of Control. Notwithstanding any other provision of the
            Plan, upon the occurrence of a Change of Control (as defined in
            Section 17.2), all Stock Options outstanding at the time of such
            Change of Control shall become immediately vested and exercisable
            and shall remain exercisable for five years after the director's
            termination of service (but not beyond the option term).

     (g)    Non-transferability. No Stock Option shall be transferable by the
            optionee other than by will or by the laws of descent and
            distribution. During an optionee's lifetime, all Stock Options
            shall be exercisable only by the optionee or by his or her
            guardian or legal representative.

     (h)    Shareholder Rights. The holder of a Stock Option shall, as such,
            have none of the rights of a shareholder.

     15.3   Limited Stock Appreciation Rights in Tandem with Options. Each
Stock Option granted to an Outside Director under this Section 15 shall be
granted in tandem with a Limited Stock Appreciation Right which may be
exercised only within the 60-day period following a Change of Control. Upon
exercise of the Limited Stock Appreciation Right, the holder shall receive,
for each share with respect to which the Limited Stock Appreciation Right is
exercised, an amount equal in value to the excess of the Change of Control
Price (as defined in Section 17.3) over the exercise price of the related
Stock Option. The Limited Stock Appreciation Right shall be payable solely in
cash, and shall be paid within 30 days of the exercise of the Limited Stock
Appreciation Right.

     15.4   Quarterly Stock Grants. On the first trading day of each calendar
quarter beginning with the first calendar quarter after the date of
shareholder approval of the Plan, each Outside Director then serving on the
Board and who has served for all or a portion of the previous calendar quarter
shall be granted the number of whole shares of Stock obtained by dividing
$2,000 by the closing sales price of the Stock on the date of grant.
Notwithstanding the foregoing, if on any date on which shares are to be
granted pursuant to this Section 15.4 the remaining shares reserved for
issuance to Outside Directors under the Plan are insufficient to enable each
Outside Director to receive the applicable number of shares of Stock set forth
above, each Outside Director who is entitled to be granted shares pursuant to
this Section 15.4 shall be granted his or her pro rata portion of such
remaining shares. All shares granted under this Section 15.4 shall be fully
vested and non-forfeitable at the time of grant.

SECTION 16. Amendments and Termination

     The Board may discontinue the Plan at any time and may amend it from time
to time. No amendment or discontinuation of the Plan shall adversely affect
any award previously granted without the award holder's written consent. To
the extent required in order to satisfy Rule 16b-3 under the Securities
Exchange Act of 1934 ("Rule  16b-3") (or any successor rule), the provisions
of Section 15 shall not be amended more than once every six months, other than
to comport with changes in the Code, the Employee Retirement Income Security
Act, or the rules thereunder. Amendments may be made without stockholder
approval except as required to satisfy Rule 16b-3, Section 162(m) of the Code,
or other NASDAQ, stock exchange, or regulatory requirements.

SECTION 17. Change of Control

     17.1   In the event of a Change of Control, unless otherwise determined
by the Granting Authority at the time of grant or by amendment (with the award
holder's consent) of such grant:

     (a)    all outstanding Stock Options and all outstanding Stock
            Appreciation Rights (including Limited Stock Appreciation Rights)
            awarded under the Plan shall become fully exercisable and vested;

     (b)    the restrictions and deferral limitations applicable to any
            outstanding Restricted Stock and Deferred Stock awards under the
            Plan shall lapse and such shares and awards shall be deemed fully
            vested; and

     (c)    to the extent the cash payment of any award is based on the fair
            market value of Stock, such fair market value shall be the Change
            of Control Price.

     17.2   A "Change of Control" shall be deemed to occur on:

     (a)    the date that any person or group deemed a person under Sections
            3(a)(9) and 13(d)(3) of the Securities Exchange Act of 1934 (other
            than the Company and its subsidiaries as determined immediately
            prior to that date) has become the beneficial owner, directly or
            indirectly (with beneficial ownership determined as provided in
            rule 13d-3, or any successor rule, under the Securities Exchange
            Act of 1934) of securities of the Company representing 25% or more
            of the total combined voting power of all classes of stock of the
            Company having the right under ordinary circumstances to vote at
            an election of the Board, unless such person has acquired 80% or
            more of such securities directly from the Company;

     (b)    the date on which one-third or more of the members  of the Board
            shall consist of persons other than Current Directors (for these
            purposes a "Current Director" shall mean any member of the Board
            on July 27, 1995 and any member of the Board whose nomination or
            election has been approved by a majority of the Current Directors
            then on the Board);

     (c)    the date of approval by the stockholders of the Company of an
            agreement providing for the merger or consolidation of the Company
            with another corporation where (i) the stockholders of the
            Company, immediately prior to the merger or consolidation, would
            not beneficially own, immediately after the merger or
            consolidation, shares entitling such stockholders to 50% or more
            of all votes (without consideration of the rights of any class of
            stock to elect directors by a separate class vote) to which all
            stockholders of the corporation issuing cash or securities in the
            merger or consolidation would be entitled in the election of
            directors, or (ii) where the members of the Board, immediately
            prior to the merger or consolidation, would not, immediately after
            the merger or consolidation, constitute a majority of the board of
            directors of the corporation issuing cash or securities in the
            merger; or

     (d)    the date of approval by the stockholders of the Company of an
            agreement providing for the sale or other disposition of all or
            substantially all of the assets of the Company.

     17.3   "Change of Control Price" means the highest price per share paid
in any transaction reported in the Nasdaq National Market or on any national
securities exchange where the Stock is traded, or paid or offered in any
transaction related to a Change of Control at any time during the 90-day
period ending with the Change of Control. Notwithstanding the foregoing
sentence, in the case of Stock Appreciation Rights granted in tandem with
Incentive Stock Options, the Change of Control Price shall be the highest
price paid on the date on which the Stock Appreciation Right is exercised.

SECTION 18. General Provisions

     18.1   Each award under the Plan shall be subject to the requirement
that, if at any time the Granting Authority shall determine that (i) the
listing, registration or qualification of the Stock subject or related thereto
upon any securities exchange or under any state or federal law, or (ii) the
consent or approval of any government regulatory body or (iii) an agreement by
the recipient of an award with respect to the disposition of Stock is
necessary or desirable (in connection with any requirement or interpretation
of any federal or state securities law, rule or regulation) as a condition of,
or in connection with, the granting of such award or the issuance, purchase or
delivery of Stock thereunder, such award shall not be granted or exercised, in
whole or in part, unless such listing, registration, qualification, consent,
approval or agreement shall have been effected or obtained free of any
conditions not acceptable to the Granting Authority.

     18.2   Nothing set forth in this Plan shall prevent the Board from
adopting other or additional compensation arrangements. Neither the adoption
of the Plan nor any award hereunder shall confer upon any employee of the
Company, or of a Related Company, any right to continued employment, and no
award shall confer upon any Outside Director any right to continued service as
a director.

     18.3   Determinations by the Granting Authority under the Plan relating
to the form, amount, and terms and conditions of awards need not be uniform,
and may be made selectively among persons who receive or are eligible to
receive awards under the Plan, whether or not such persons are similarly
situated.

      18.4  No member of the Board or the Committee, nor any officer or
employee of the Company acting on behalf of the Board or the Committee, shall
be personally liable for any action, determination or interpretation taken or
made with respect to the Plan, and all members of the Board or the Committee
and all officers or employees of the Company acting on their behalf shall, to
the extent permitted by law, be fully indemnified and protected by the Company
in respect of any such action, determination or interpretation.

SECTION 19. Effective Date of Plan

     The provisions of the Plan with respect to formula grants to Outside
Directors (as currently set forth in Section 15) were adopted and shall be
effective on July 27, 1995, and the provisions of the Plan with respect to
grants to employees were adopted and shall be effective on April 10, 1996, in
each case subject to approval by the Company's stockholders at the 1996 Annual
Meeting of Stockholders. The provisions of the Plan with respect to
discretionary grants to Outside Directors were adopted on September 6, 1996
and shall become effective on the date of approval by the Company's
stockholders at the 1996 Annual Meeting of Stockholders.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00046-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00046-of-00352.parquet"}]]