Document:

<PAGE>   1

                                                                  EXHIBIT 10 (k)
                                                                  --------------

                        COMPUTER TASK GROUP, INCORPORATED
                        ---------------------------------

              NONQUALIFIED KEY EMPLOYEE DEFERRED COMPENSATION PLAN
              ----------------------------------------------------

I

 .1       DEFINITIONS, BACKGROUND, PURPOSE AND EFFECTIVE DATE
         ---------------------------------------------------

         DEFINITIONS. For purposes of the Plan, the following terms shall
have the definitions stated below unless the context clearly indicates
otherwise:

                  (a)         "BOARD" means the Board of Directors of Computer
                           Task Group, Incorporated.

                  (b)         "CHAIRMAN" means the Chairman and Chief Executive
                           Officer of the Corporation.

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

                  (d)         "COMMITTEE" means the Compensation Committee of
                           the Board.

                  (e)         "COMPENSATION" means base salary and bonus
                           compensation actually earned by a Participant in a
                           calendar year, including any compensation deferred
                           by a Participant under the Corporation's plan
                           qualified under 401(k) Plan and including any
                           Elective Deferrals under this Plan from base
                           salary and bonus compensation, and excluding,
                           without limitation, (i) any amounts paid to a
                           Participant under any other qualified or
                           nonqualified compensation plan, including without
                           limitation any amounts paid pursuant to a stock
                           option or other stock plan and (ii) any noncash
                           compensation such as relocation expenses, advances
                           on salary and travel advances.

                  (f)         "CORPORATION" means Computer Task Group,
                           Incorporated.

                  (g)         "CORPORATION CONTRIBUTION ACCOUNT" means a
                           sub-account of the Deferred Compensation Account
                           comprised of Corporation Contributions credited
                           thereto and earnings thereon.

                  (h)         "CORPORATION STOCK" means shares of common stock,
                           $.01 par value, issued by the Corporation, or any
                           successor securities thereto.

                  (i)         "DEFERRED COMPENSATION ACCOUNT" means the account
                           maintained for each Participant to which are
                           credited all amounts allocated thereto in
                           accordance with this Plan, and adjusted for
                           earnings thereon.

                  (j)         "EMPLOYEE CONTRIBUTION ACCOUNT" means a
                           sub-account of the Deferred Compensation Account
                           comprised of the Employee Contributions allocated
                           to such account and earnings thereon.

                  (k)         "ERISA" means the Employee Retirement Income
                           Security Act of 1974, as amended.

                  (l)         "PARTICIPANT" means an employee selected to
                           participate in the Plan pursuant to Section 2.1.

                  (m)        "PLAN" means the Computer Task Group, Incorporated
                           Nonqualified Key Employee Deferred Compensation
                           Plan as initially

                                                                              66
<PAGE>   2

                           approved by the Committee on February 2, 1995 and
                           as it shall be amended from time to time.

                  (n)         "PLAN ADMINISTRATOR" means the Committee.

                  (o)         "PLAN YEAR" means the calendar year, unless
                           otherwise determined by the Committee. The first
                           Plan Year shall commence on January 1, 1995.

                  (p)         "RABBI TRUST" means a trust agreement, if
                           established, entered into by and between the
                           Corporation and any trustee, to provide certain
                           benefits under the Plan.

                  (q)         "401(k) PLAN" means the Computer Task Group,
                           Incorporated 401(k) Retirement Plan.

                  (r)         "SEPARATION FROM SERVICE" means an employee's
                           termination of employment for any reason, such
                           that the employee is not employed by the
                           Corporation or any company in an affiliated group
                           for tax purposes with the Corporation.

                  (s)         "YEAR OF PARTICIPATION" means a Plan Year during
                           which the Participant is a Participant for the
                           entire Plan Year. Notwithstanding the preceding
                           sentence, each employee who is selected as a
                           Participant at the commencement of the Plan shall
                           be deemed a Participant beginning on January 1,
                           1995 for this purpose. Any other employee selected
                           as a Participant shall become a Participant on
                           January 1 of the Plan Year immediately following
                           the employee's selection.

 .2   Background and Purpose of the Plan. The purpose of the Plan is to
establish an unfunded plan to provide Corporation-provided deferred
compensation commensurate with the performance of the Corporation for a
select group of highly compensated employees to retain the services of
certain of such employees and to provide an additional elective opportunity
for certain of such employees to defer a portion of their compensation, in
all events upon such terms as shall be established by the Committee.

 .3   Effective Date. Except as otherwise provided, the effective date of the
Plan is January 1, 1995.

II

                                  PARTICIPATION
                                  -------------

 .1   ELIGIBILITY FOR PARTICIPATION. An employee of the Corporation shall be
eligible to participate in the Plan if, with respect to the ability to make
Elective Contributions pursuant to Section 3.1 and/or to be awarded
Corporation Contributions pursuant to Section 3.2, the employee is
recommended by the Chairman to participate in the Plan and such
recommendation is approved by the Committee, in its sole discretion.

 .2   CESSATION OF ELIGIBILITY. With respect to any Plan Year, a Participant
shall continue to be eligible to elect to defer Compensation pursuant to
Section 3.1 and/or to receive an award of Corporation Contributions pursuant
to Section 3.2 if the Participant's eligibility is not terminated (with
respect to the Plan Year no later than 90 days after the beginning of such
Plan Year) by recommendation of the Chairman and approval of such
recommendation by the Committee, and if the Participant remains in the employ
of the Corporation for the entire Plan Year.

                                                                          67
<PAGE>   3

III

                                  CONTRIBUTIONS
                                  -------------

 .1   EMPLOYEE CONTRIBUTIONS. With respect to any Plan Year commencing after
December 31, 1994, a Participant may irrevocably elect prior to December 1 of
the Plan Year preceding such Plan Year (except with respect to the Plan Year
ending December 31, 1995, prior to June 16, 1995) to defer all or a part of
his or her Compensation in a certain dollar amount or percentage not to
exceed that permitted by the Committee ("Employee Contributions"). The
Committee shall credit the Participant's Employee Contribution Account with
an amount equal to such Employee Contributions at such times and in such
amounts as would otherwise have been paid or made available to such
Participant. The elections described in this subsection shall be made by such
time and using such forms as the Plan Administrator shall provide.

 .2   CORPORATION CONTRIBUTIONS. With respect to each Plan Year commencing after
December 31, 1994, a Participant eligible to receive an award of Corporation
Contributions shall be awarded an amount equal to a specified percentage of the
Participant's Compensation for the Plan Year. The percentage shall be determined
for each Plan Year based on the degree of achievement by the Corporation of
certain performance targets recommended by the Chairman and approved by the
Committee. Both the award percentages and the degree of the achievement of the
performance targets shall be determined by the Committee, in its sole discretion
at a meeting of the Committee following the close of the audit of the
Corporation by its outside accountants for the Plan Year. Such award shall be
credited to the Participant's Corporation Contribution Account as of January 1
of the Plan Year following the Plan Year for which the Corporation Contribution
is awarded, and such award may be in the form of cash or Corporation Stock at
the sole discretion of the Committee.

IV

                            ACCOUNTS AND INVESTMENTS
                            ------------------------

 .1   THE DEFERRED COMPENSATION ACCOUNT. The Committee shall maintain for each
Participant a Deferred Compensation Account to which it shall credit all
amounts allocated thereto in accordance with Sections 3.1 and 3.2. Each
Participant's Deferred Compensation Account shall be adjusted no less often
than annually, beginning January 1, 1995, to reflect the credits made to the
Deferred Compensation Account and any interest, earnings, gains and losses
thereon pursuant to Section 4.2. Such adjustments shall be made as long as
any amount remains credited to the Deferred Compensation Account. The amounts
allocated and the adjustments made shall comprise the Deferred Compensation
Account at any time.

 .2   INTEREST, EARNINGS, GAINS AND LOSSES. Amounts represented by the Deferred
Compensation Accounts of all Participants shall be credited with interest or
invested in an investment vehicle(s) (including but not limited to Corporation
Stock) in the sole discretion of the Committee. A Deferred Compensation Account
shall be credited with its share of the interest thereon or the earnings, gains
and losses of such investment vehicles for the period for which the Account is
so invested no less often than annually. Interest, earnings, gains and losses
shall accrue annually on the balance as of the first day of each Plan Year and
shall be credited annually as of the last day of the Plan Year during which such
interest, earnings, gains and losses accrued.

 .3   THE RABBI TRUST. The Committee may determine that the Corporation shall
establish a Rabbi Trust to which the Corporation shall contribute all amounts
credited to the Employee and Corporation Contribution Accounts in accordance
with Sections 3.1, 3.2, and 4.2 of the Plan.

 .4   RIGHTS AS GENERAL CREDITOR. Unless the Corporation establishes the Rabbi
Trust, a Deferred Compensation Account does not constitute a trust fund or
escrow. A Participant's interest in the Deferred Compensation Account and in the
Rabbi Trust, if established, is limited to the right to receive payments as
provided under the Plan and the Rabbi Trust, if any, and the Participant's
position is that of a general unsecured creditor of the Corporation with respect
to the entire Deferred Compensation Account, i.e., the Corporation
Contributions, Employee Contributions, and interest, earnings, gains and losses
thereon.

                                                                            68
<PAGE>   4

 .5   VESTING IN EMPLOYEE CONTRIBUTION ACCOUNT. Except as otherwise provided in
this Article, a Participant shall at all times have a 100% nonforfeitable
right to the value of his or her Employee Contribution Account.

 .6   VESTING IN CORPORATION CONTRIBUTION ACCOUNT. Except as otherwise provided
in this Article,

         (a)         A Participant who first becomes a Participant in the Plan
                  in 1995 shall have a 100% nonforfeitable right to the value
                  of the Participant's Corporation Contribution Account on
                  January 1, 2003, and, in the case of any other Participant,
                  such Participant shall have a 100% nonforfeitable right to
                  the value of the Participant's Corporation Contribution
                  Account on the January 1 following eight full calendar
                  years after the Participant first becomes a Participant in
                  the Plan, and no Participant shall have any right to any
                  amount in such Account prior to such respective date.

         (b)         Notwithstanding subsection (a), prior to January 1, 2003,
                  in the case of a Participant who first becomes a
                  Participant in the Plan in 1995, or, prior to the January
                  1 following eight full calendar years after the
                  Participant first becomes a Participant in the Plan, in
                  the case of a Participant who first becomes a Participant
                  in the Plan after 1995, if a Participant incurs a
                  Separation from Service (i) involuntarily and without
                  Cause, (ii) due to death, disability (as hereafter
                  defined), or retirement at age 65 or later, or (iii) if
                  there is a Change of Control, as defined in Section 4.8,
                  such Participant shall have a nonforfeitable right in a
                  portion of the Participant's Corporation Contribution
                  Account equal to 12.5% times the Participant's Years of
                  Participation.

         (c)         Notwithstanding subsections (a) or (b), if a Participant
                  incurs a Separation from Service for Cause, the
                  Participant shall forfeit all amounts in the Participant's
                  Corporation Contribution Account.

         (d)         For purposes of this Plan, Separation from Service due to
                  disability shall mean separation from service due to a
                  physical or mental condition which prevents the
                  Participant from engaging in any gainful occupation in
                  which the Participant might reasonably be expected to
                  engage, with due regard for the Participant's education,
                  training, experience, and prior economic status. The
                  determination shall be made on medical evidence by a
                  licensed physician assigned by the Committee. Separation
                  from Service due to disability shall exclude disabilities
                  arising from:

                           (i) intentionally self-inflicted injury or
                  intentionally self-induced sickness,

                           (ii) a proven unlawful act or enterprise on the
                  part of the Participant, or

                           (iii) military service where the Participant is
                  eligible to receive a government military disability
                  pension. In all cases, the Committee shall make the final
                  determination whether a Participant has incurred a
                  Separation from Service due to disability for purposes of
                  this Plan.

         (e)         For purposes of this Plan, Separation from Service for
                  Cause shall mean termination of employment due to:

                           (i)                Embezzlement from the Corporation
                           (ii)               Theft from the Corporation
                           (iii)              Defrauding the Corporation
                           (iv)               Drug addiction
                           (v)                Habitual intoxication

                                                                             69
<PAGE>   5

                           (vi) Use or disclosure of Corporation or client
                  confidential or proprietary information

                           (vii) Engaging in activities or businesses which
                  are substantially in competition with the Corporation

                           (viii) Any other action, activity or course of
                  conduct which is substantially detrimental to the
                  Corporation's business or business reputation

                           (ix) Violation of the provision of the terms of any
                  nondisclosure and nonsolicitation, noncompetition, or other
                  contractual agreement between the Participant and the
                  Corporation.

 .7       PAYMENT OF BENEFITS.

         (a)         COMMENCEMENT. Except as otherwise provided in this Section
                  and subject to the vesting provisions of Section 4.6, if
                  the Participant does not make an election in the time and
                  manner specified in (c), the vested value of a
                  Participant's Deferred Compensation Account shall be paid
                  under the Plan as soon as practicable on or after the
                  Participant's Separation from Service but in any event not
                  later than 90 days after such Separation from Service. In
                  the case of a Change of Control, as defined in Section
                  4.8, the vested value of a Participant's Deferred
                  Compensation Account shall be paid in cash immediately
                  following such Change of Control.

         (b)         Normal Form of Payment. Except as otherwise provided in
                  this Section and subject to the vesting provisions of
                  Section 4.6, if the Participant does not make an election
                  in the time and manner specified in (c), benefits payable
                  under the Plan (i.e. vested benefits) shall be paid in the
                  form of a single lump sum payment and shall, with respect
                  to the Employee Contribution Account, be in the form of
                  cash, and with respect to the Corporation Contribution
                  Account, be in the form of cash, Corporation Stock, or a
                  combination of cash and such Corporation Stock, to be
                  determined in the sole discretion of the Committee. Shares
                  of Corporation Stock used to satisfy the obligation of the
                  Corporation under this Plan shall be valued at their fair
                  market value. For purposes of this Plan, fair market value
                  means as of any date the average of the highest and lowest
                  reported sales prices on such date (or if such date is not
                  a trading day, then the most recent prior date which is a
                  trading day) of a share of Corporation Stock as reported
                  on the composite tape, or similar reporting system, for
                  issues listed on the New York Stock Exchange (or, if the
                  Corporation Stock is no longer traded on the New York
                  Stock Exchange, on such other national securities exchange
                  on which the Corporation Stock is listed or national
                  securities or central market system upon which
                  transactions in Corporation Stock are reported, as either
                  shall be designated by the Committee for the purposes
                  hereof) or if sales of Corporation Stock are not reported
                  in any manner specified above, the average of the high bid
                  and low asked quotations on such date (or if such date is
                  not a trading day, then on the most recent prior date
                  which is a trading day) in the over-the-counter market as
                  reported by the National Association of Securities
                  Dealers' Automated System or, if not so reported, by
                  National Quotation Bureau, Incorporated or similar
                  organization selected by the Committee.

         (c)         ELECTION OF FORM OF PAYMENT. Notwithstanding (a) and (b),
                  the Participant may elect any future date or event with
                  respect to the time at which payment of the Employee
                  Contribution Account will be made, subject to the approval
                  of the Committee, in its sole discretion, and provided
                  that such written election is filed with the Committee at
                  the same time and with respect to the Compensation that is
                  deferred for the same period pursuant to Section 3.1, i.e.
                  prior to the calendar year for which the Compensation is
                  deferred (except with respect to the Plan Year ending
                  December 31, 1995,

                                                                          70
<PAGE>   6

                  prior to June 16, 1995). However, in no event shall such
                  payment be later than 90 days after the Participant's
                  Separation from Service, or, if earlier, immediately
                  following a Change of Control.

         (D)          UNFORESEEABLE EMERGENCY. In the case of an unforeseeable
                  emergency, as defined below, a Participant may submit a
                  written request to the Committee for (1) a distribution of
                  all or a part of his or her Employee Contribution Account
                  and, if fully vested, all or a part of his or her
                  Corporation Contribution Account prior to the date
                  benefits otherwise would be payable, or (2) an
                  acceleration of the payment of installment payments that
                  have already begun. Withdrawals or acceleration because of
                  an unforeseeable emergency shall be permitted only to the
                  extent reasonably necessary to satisfy the emergency. An
                  unforeseeable emergency is a severe financial hardship
                  resulting from extraordinary and unforeseeable
                  circumstances arising as a result of one or more recent
                  events beyond the control of the Participant. The need to
                  send the Participant's child to college or the desire to
                  purchase a residence will not be considered unforeseeable
                  emergencies. Withdrawals or acceleration will not be
                  permitted to the extent such emergency is or may be
                  relieved: (1) through reimbursement or compensation by
                  insurance or otherwise, or (2) by liquidation of the
                  Participant's assets, to the extent the liquidation of
                  such assets would not itself cause severe financial
                  hardship.

         (e)          Notwithstanding any other provision of the Plan, a
                  Participant shall forfeit all future benefits payable from
                  his or her Corporation Contribution Account under the Plan
                  if the Committee determines the Participant to be engaged
                  in any of the following activities:

                           (i) Use or disclosure of Corporation or client
                  confidential or proprietary information

                           (ii) Engaging in activities or businesses which
                  are substantially in competition with the Corporation

                           (iii) Any other action, activity or course of
                  conduct which is substantially detrimental to the
                  Corporation's business or business reputation

                           (iv) Violation of the provision of the terms of
                  any nondisclosure and nonsolicitation, noncompetition, or
                  other contractual agreement between the Member and the
                  Corporation.

 .8       Change of Control. A Change of Control shall be deemed to have
         occurred if:

         (a)          any Person, which shall mean a "person" as such term is
                  used in Sections 13(d) and 24(d) of the Securities
                  Exchange Act of 1934, as amended (the "Exchange Act")
                  (other than the Corporation, any trustee or other
                  fiduciary holding securities under an employee benefit
                  plan of the Corporation, or any company owned, directly or
                  indirectly, by the stockholders of the Corporation in
                  substantially the same proportions as their ownership of
                  stock of the Corporation), is or becomes the "beneficial
                  owner" (as defined in Rule 13d-3 under the Exchange Act),
                  directly or indirectly, of securities of the Corporation
                  representing 30% or more of the combined voting power of
                  the Corporation's then outstanding voting securities;

         (b)          during any period of 24 consecutive months, individuals
                  who at the beginning of such period constitute the Board,
                  and any new director whose election by the Board, or whose
                  nomination for election by the

                                                                          71
<PAGE>   7

                  Corporation's stockholders, was approved by a vote of at
                  least two-thirds (2/3) of the directors (other than in
                  connection with a contested election) before the beginning
                  of the period cease, for any reason, to constitute at
                  least a majority thereof;

         (c)          the stockholders of the Corporation approve (1) a plan of
                  complete liquidation of the Corporation or (2) the sale or
                  disposition by the Corporation of all or substantially all
                  of the Corporation's assets unless the acquirer of the
                  assets or its directors shall meet the conditions for a
                  merger or consolidation in subparagraphs (d)(i) or
                  (d)(ii); or

         (d)          the stockholders of the Corporation approve a merger or
                  consolidation of the Corporation with any other company
                  other than:

                           (i) such a merger or consolidation which would
                  result in the voting securities of the Corporation
                  outstanding immediately prior thereto continuing to
                  represent (either by remaining outstanding or by being
                  converted into voting securities of the surviving entity)
                  more than 70% of the combined voting power of the
                  Corporation's or such surviving entity's outstanding
                  voting securities immediately after such merger or
                  consolidation; or

                           (ii) such a merger or consolidation which would
                  result in the directors of the Corporation who were
                  directors immediately prior thereto continuing to
                  constitute more than 50% of the directors of the surviving
                  entity immediately after such merger or consolidation.

      In this paragraph (d), "surviving entity" shall mean only an entity
in which all of the Corporation's stockholders immediately before such
merger or consolidation become stockholders by the terms of such merger or
consolidation, and the phrase "directors of the Corporation who were
directors immediately prior thereto" shall include only individuals who were
directors of the Corporation at the beginning of the 24 consecutive month
period preceding the date of such merger or consolidation, or who were new
directors (other than any director nominated in connection with a contested
election or designated by a Person who has entered into an agreement with
the Corporation to effect a transaction described in paragraph (a), (b),
(d)(i) or (d)(ii) of this Section) whose election by the Board, or whose
nomination for election by the Corporation's stockholders, was approved by a
vote of at least two-thirds (2/3) of the directors before the beginning of
such period.

 .9    DEATH BENEFITS. If a Participant dies after he or she becomes entitled to
a benefit under Section 4.6 and before payment to the Participant has been
made under Section 4.7, the balance of the Participant's benefit shall be
paid to his or her Beneficiary in the form of a single lump sum cash payment
as soon as practicable after the death of the Participant. "Beneficiary"
shall mean any one or more persons, corporations or trusts, or any
combination thereof, last designated by the Participant to receive the death
benefits provided under the Plan. Each Participant may designate the
Beneficiary for the benefits provided on his or her death under the Plan.
Such designation may be changed from time to time. All designations shall be
made on forms provided by and filed with the Plan Administrator. If the
Committee, in its sole discretion, determines that there is not a valid
designation, the Beneficiary shall be the executor or administrator of the
Participant's estate.

 .10   SET-OFF. Notwithstanding any other provision of this Plan, any amounts
payable to the Participant or any beneficiary under this Plan may be used by
the Corporation to set off any indebtedness owed to the Corporation by such
Participant or beneficiary for any reason.

                                                                        72
<PAGE>   8

V

                      AMENDMENT, SUSPENSION, OR TERMINATION
                      -------------------------------------

 .1    AMENDMENT, SUSPENSION, OR TERMINATION. The Committee may amend, suspend
or terminate the Plan, in whole or in part, at any time and from time to
time by resolution adopted at a regular or special meeting of the Committee,
and only in such manner.

 .2    NO REDUCTION. No amendment, suspension or termination shall operate to
adversely affect the benefit otherwise available to a Participant under the
Plan determined as if the Participant had ceased being a Participant on or
before the effective date of such amendment, suspension, or termination. The
value of a Participant's Deferred Compensation Account, if any, determined
as of the effective date of such amendment, suspension or termination shall
continue to be adjusted for investment results as provided in Sections 4.1
and 4.2 until paid. Any benefit determined as of such date shall continue to
be payable as provided in Sections 4.6 through 4.8.

VI

                           ADMINISTRATION OF THE PLAN
                           --------------------------

 .1    NAMED FIDUCIARY. The named fiduciary of the Plan is the Committee.

 .2    ADMINISTRATION BY COMMITTEE. The general administration of this Plan, as
well as construction and interpretation thereof, shall be the responsibility
of the Committee, the number and members of which shall be designated and
appointed from time to time by, and shall serve at the pleasure of the
Board. Any such member of the Committee may resign by notice in writing
filed with the Secretary of the Committee. Vacancies shall be filled
promptly by the Board. The Corporation shall pay any and all expenses
incurred in the administration of the Plan.

 .3    DELEGATION. The Board may designate one of the members of the Committee
as Chairman and may appoint a Secretary who need not be a member of the
Committee and may be a Participant in the Plan. The Secretary shall keep
minutes of the Committee's proceedings and all data, records and documents
relating to the Committee's administration of the Plan. The Committee may
appoint from its number such subcommittees with such powers as the Committee
shall determine and may authorize one or more members of the Committee or
any agent to execute or deliver any instrument or make any payment on behalf
of the Committee.

 .4    MAJORITY VOTE. All resolutions or other actions taken by the Committee
shall be by vote of a majority of those present at a meeting at which a
majority of the members are present, or in writing by all the members at the
time in office if they act without a meeting.

 .5    EXCLUSIVE RIGHT TO INTERPRET PLAN. Subject to the Plan, the Committee
shall, from time to time, establish rules, forms and procedures for the
administration of the Plan. Except as herein otherwise expressly provided,
the Committee shall have the exclusive right to interpret the Plan and to
decide any and all matters arising thereunder or in connection with the
administration of the Plan. The decisions, actions and records of the
Committee shall be conclusive and binding upon the Corporation and all
persons having or claiming to have any right or interest in or under the
Plan.

 .6    RELIANCE. The members of the Committee and the officers and directors of
the Company shall be entitled to rely on all certificates and reports made
by any duly appointed accountants, and on all opinions given by any duly
appointed legal counsel, which legal counsel may be counsel for the
Corporation.

 .7    INDEMNIFICATION. No member of the Committee shall be liable for any act
or omission of any other member of the Committee, nor for any act or
omission on his or her own part. The Corporation shall indemnify and save
harmless each member of the Committee against any and all expenses and
liabilities arising out of his membership on the Committee. Expenses against
which a member of the Committee shall be indemnified hereunder shall
include, without limitation, the amount of any settlement or judgment,
costs, counsel fees, and related charges reasonably incurred in connection
with a claim asserted, or a proceeding brought or settlement thereof. The
foregoing right of indemnification shall be in

                                                                           73
<PAGE>   9

addition to any other rights to which any such member on the Committee may
be entitled as a matter of law

 .8    ADDITIONAL POWERS. In addition to the powers specified above, the
Committee shall have the power to compute and certify under the Plan the
amount and kind of benefits from time to time payable to Participants and
their beneficiaries and to authorize all disbursements for such purposes.

 .9    INFORMATION. To enable the Committee to perform its functions, the
Corporation shall supply full and timely information to the Committee on all
matters relating to the compensation of all Participants, their retirement,
death or other termination of employment, and such other pertinent facts as
the Committee may require.

VII

                               GENERAL PROVISIONS
                               ------------------

 .1    FUNDING. The Plan and the Rabbi Trust, if established, constitute an
unfunded arrangement and shall have the status as an unfunded plan
maintained for the purpose of providing deferred compensation for a select
group of management or highly compensated employees for purposes of Title 1
of ERISA. The plan is not intended to be the principal source of retirement
income for the Participants or the Participants' beneficiaries.

 .2    NONASSIGNABILITY. The interests of any person under the Plan (other than
the Corporation) shall not be subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge, attachment or encumbrance,
or to the claims of creditors of such person, and any attempt to effectuate
any such actions shall be void.

 .3    INTEREST OF PARTICIPANT. Except as provided in the Rabbi Trust, if any, a
Participant and the Participant's beneficiaries, in respect of the
Participant's Deferred Compensation Account, and any benefit to be paid
under the Plan, shall be and remain simply a creditor of the Corporation in
the same manner as any other creditor having a general claim, if and when
the Participant's or beneficiaries' rights to receive payments shall mature
and become payable. Except as provided in the Rabbi Trust, if any, at no
time shall the Participant be deemed to have any right, title or interest,
legal or equitable, in any asset of the Corporation, including, but not
limited to any investments held.

 .4    LEAVES OF ABSENCE. The Committee may, in its sole discretion, permit the
Participant to take a leave of absence for a period not to exceed one year.
During such leave, the Participant will still be considered to be in the
continuous employment of this Corporation for all purposes of this Plan.

 .5    WITHHOLDING. The Corporation shall have the right to deduct or withhold
from the benefits paid under the Plan (or from other amounts payable to the
Participant, if necessary) all taxes which may be required to be deducted or
withheld under any provision of law (including, but not limited to, Social
Security payments, income tax withholding and any other deduction or
withholding required by law) now in effect or which may become effective any
time during the term of the Plan.

 .6    EXCLUSIVITY OF PLAN. The Plan is intended solely for the purpose of
providing deferred compensation to the Participants to the mutual advantage
of the parties. Nothing contained in the Plan shall in any way affect or
interfere with the right of a Participant to participate in any other
benefit plan in which he or she may be entitled to participate.

 .7    NO RIGHT TO CONTINUED SERVICE. Neither the Plan nor any agreements signed
in relationship to the Plan, either singly or collectively, shall obligate
the Corporation in any way to continue the employment of a Participant with
the Corporation or prohibit the Corporation from terminating a Participant's
employment. Nor does this Plan or the Plan Participation Agreement prohibit
or restrict the right of a Participant to terminate employment with the
Corporation. Termination of a Participant's employment with the Corporation,
whether by action of the Corporation or by the Participant, shall
immediately terminate the Participant's future participation in the Plan.
All further obligations of either party shall be determined under the
provisions of this Plan according to the nature of the termination. The
Corporation is an at will employer.

                                                                           74
<PAGE>   10

 .8    NOTICE. Each notice and other communication to be given pursuant to the
Plan shall be in writing and shall be deemed given only when (a) delivered
by hand, (b) transmitted by telex or telecopier (provided that a copy is
sent at approximately the same time by registered or certified mail, return
receipt requested), (c) received by the addressee, if sent by registered or
certified mail, return receipt requested, or by Express Mail, Federal
Express or other overnight delivery service, to the Corporation at its
principal office and to a Participant at the last known address of such
Participant (or to such other address or telecopier number as a party may
specify by notice given to the other party pursuant to this Section).

 .9    CLAIMS PROCEDURES. If a Participant or the Participant's Designated
Beneficiary does not receive benefits to which he or she believes he or she
is entitled, such person may file a claim in writing with the Committee. The
Committee shall establish a claims procedure under which:

         (a)         the Committee shall be required to provide adequate notice
                  in writing to the Participant or the Designated
                  Beneficiary whose claim for benefits has been denied,
                  setting forth specific reasons for such denial, written in
                  a manner calculated to be understood by the Participant or
                  the Designated Beneficiary; and

         (b)         the Committee shall afford a reasonable opportunity to the
                  Participant or the Designated Beneficiary whose claim for
                  benefits has been denied for a full and fair review by the
                  Committee of the decision denying the claim.

 .10    NEW YORK LAW CONTROLLING. The Plan shall be construed in accordance with
the laws of the State of New York. Any and all controversies arising under
or relating to this Plan shall be adjudicated in a court of competent
jurisdiction located in the State of New York, and the Participant hereby
consents to jurisdiction in the State of New York for purposes of said legal
action.

 .11    SEVERABILITY. Every provision of the Plan is intended to be severable.
If any provision of the Plan is illegal or invalid for any reason
whatsoever, the illegality or invalidity of that provision shall not affect
the validity or legality of the remainder of the Plan, and the Plan shall be
construed and enforced as if the illegal or invalid provision had never been
made part of the Plan.

 .12    BINDING ON SUCCESSORS. The Plan shall be binding upon the Participants
and the Corporation, their heirs, successors, legal representatives and
assigns.

 .13    DISCRETIONARY NATURE OF PLAN. Participation in and determination of
amounts of benefits under the Plan shall be determined in the sole
discretion of the Committee. No employee shall have any right to receive
benefits under the Plan for any reason (including but not limited to, length
of service, performance, receipt of benefits in prior periods, and awards to
other individuals) other than as determined by the Committee acting in its
sole discretion.

 .14    TITLES. Titles to the Articles and Sections of this of this Plan are
included for convenience only and shall not control the meaning or
interpretation of any provision of this Plan.

                                                                           75<PAGE>   1

                                                              EXHIBIT 10 (n)
                                                              ----------

                        COMPUTER TASK GROUP, INCORPORATED

                             2000 EQUITY AWARD PLAN

1.     THE PLAN

1.1    PURPOSE. The purpose of this Plan is to promote the success of the
Company and the interests of its stockholders by attracting, motivating,
retaining and rewarding key employees, including officers, whether or not
directors, of the Company with awards and incentives for high levels of
individual performance and improved financial performance of the Company and
to attract, motivate and retain experienced and knowledgeable independent
directors. "CORPORATION" means Computer Task Group, Incorporated and
"COMPANY" means the Corporation and its Subsidiaries, collectively. These
terms and other capitalized terms are defined in Section 1.2.

1.2    DEFINITIONS.

"AWARD" means an award of any Option, Stock Appreciation Right, Restricted
Stock, Stock Bonus, performance share award, dividend equivalent or deferred
payment right or other right or security that would constitute a "derivative
security" under Rule 16a-1(c) of the Exchange Act, or any combination thereof,
whether alternative or cumulative, authorized by and granted under this Plan.

"AWARD AGREEMENT" means any writing setting forth the terms of an Award that has
been authorized by the Committee.

"AWARD DATE" means the date upon which the Committee took the action granting an
Award or such later date as the Committee designates as the Award Date at the
time of the Award.

"AWARD PERIOD" means the period beginning on an Award Date and ending on the
expiration date of such Award.

"BENEFICIARY" means the person, persons, trust or trusts designated by a
Participant or, in the absence of a designation, entitled by will or the laws of
descent and distribution, to receive the benefits specified in the Award
Agreement and under this Plan if the Participant dies, and means the
Participant's executor or administrator if no other Beneficiary is designated
and able to act under the circumstances.

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

"CHANGE IN CONTROL EVENT" means any of the following:

         (a)      Approval by the stockholders of the Corporation of the
                  dissolution or liquidation of the Corporation;

         (b)      Approval by the stockholders of the Corporation of an
                  agreement to merge or consolidate, or otherwise
                  reorganize, with or into one or more entities that are not
                  Subsidiaries or other affiliates, as a result of which
                  less than 50% of the outstanding voting securities of the
                  surviving or resulting entity immediately after the
                  reorganization are, or will be, owned, directly or
                  indirectly, by stockholders of the Corporation immediately
                  before such reorganization (assuming for purposes of such
                  determination that there is no change in the record
                  ownership of the Corporation's securities from the record
                  date for such approval until such reorganization and that
                  such record owners hold no securities of the other parties
                  to such reorganization), but including in such
                  determination any securities of the other parties to such
                  reorganization held by affiliates of the Corporation);

         (c)      Approval by the stockholders of the Corporation of the
                  sale of substantially all of the Corporation's business
                  and/or assets to a person or entity that is not a
                  Subsidiary or other affiliate; or;

                                                                           76
<PAGE>   2

         (d)      Any "PERSON" (as such term is used in Sections 13(d) and
                  14(d) of the Exchange Act but excluding any person
                  described in and satisfying the conditions of Rule
                  13d-1(b)(1) thereunder), OTHER THAN the Corporation, any
                  subsidiary of the Corporation, any employee benefit plan
                  of the Corporation or of any of its subsidiaries or any
                  Person holding common shares of the Corporation for or
                  pursuant to the terms of any such employee benefit plan,
                  becomes the beneficial owner (as defined in Rule 13d-3
                  under the Exchange Act), directly or indirectly, of
                  securities of the Corporation representing more than 20%
                  of the combined voting power of the Corporation's then
                  outstanding securities entitled to then vote generally in
                  the election of directors of the Corporation; or

         (e)      During any period not longer than two consecutive years,
                  individuals who at the beginning of such period constituted
                  the Board cease to constitute at least a majority thereof,
                  unless the election, or the nomination for election by the
                  Corporation's stockholders, of each new Board member was
                  approved by a vote of at least three-fourths of the Board
                  members then still in office who were Board members at the
                  beginning of such period (including for these purposes, new
                  members whose election or nomination was so approved).

"CODE" means the Internal Revenue Code of 1986, as amended from time to time.

"COMMISSION" means the Securities and Exchange Commission.

"COMMITTEE" means the Board or a committee appointed by the Board to administer
this Plan, which committee will be comprised only of two or more directors or
such greater number of directors as may be required under applicable law, each
of whom, in respect of any decision at a time when the Participant affected by
the decision may be subject to Section 162(m) of the Code, will be
Disinterested.

"COMMON STOCK" means the Common Stock of the Corporation and such other
securities or property as may become the subject of Awards, or become subject to
Awards, pursuant to an adjustment made under Section 6.2 of this Plan.

"COMPANY" means, collectively, the Corporation and its Subsidiaries.

"CORPORATION" means Computer Task Group, Incorporated, a New York corporation,
and its successors.

"DISINTERESTED" means a disinterested director or an "outside director" within
the meaning of any mandatory legal or regulatory requirements, including Section
162(m) of the Code.

"ELIGIBLE EMPLOYEE" means an officer (whether or not a director) or key employee
of the Company.

"ELIGIBLE PERSON" means an Eligible Employee, or any Other Eligible Person, as
determined by the Committee.

"ERISA" means the Employee Retirement Income Security Act of 1974, as amended.

"EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended from time
to time.

"FAIR MARKET VALUE" on any date means (a) if the stock is listed or admitted to
trade on a national securities exchange, the closing price of the stock on the
Composite Tape, as published in The Wall Street Journal, of the principal
national securities exchange on which the stock is so listed or admitted to
trade, on such date, or, if there is no trading of the stock on such date, then
the closing price of the stock as quoted on such Composite Tape on the next
preceding date on which there was trading in such shares; (b) if the stock is
not listed or admitted to trade on a national securities exchange, the last
price for the stock on such date, as furnished by the National Association of
Securities Dealers, Inc. ("NASD") through the NASDAQ National Market Reporting
System or a similar organization if the NASD is no longer reporting such
information; (c) if the stock is not listed or admitted to trade on a national
securities exchange and is not reported on the National Market Reporting System,
the mean between the bid and asked price for the stock on such date, as
furnished by the NASD or a similar organization; or (d) if the stock is not
listed or admitted to trade on a national securities exchange, is not reported
on the National

                                                                           77
<PAGE>   3

Market Reporting System and if bid and asked prices for the stock are not
furnished by the NASD or a similar organization, the value as established by
the Committee at such time for purposes of this Plan.

"INCENTIVE STOCK OPTION" means an Option that is designated and intended as an
incentive stock option within the meaning of Section 422 of the Code, the award
of which contains such provisions (including but not limited to the receipt of
stockholder approval of this Plan, if the award is made prior to such approval)
and is made under such circumstances and to such persons as may be necessary to
comply with that section.

"NONQUALIFIED STOCK OPTION" means an Option that is designated as a Nonqualified
Stock Option and will include any Option intended as an Incentive Stock Option
that fails to meet the applicable legal requirements thereof. Any Option granted
hereunder that is not designated as an incentive stock option will be deemed to
be designated a nonqualified stock option under this Plan and not an incentive
stock option under the Code.

"NON-EMPLOYEE DIRECTOR" means a member of the Board of Directors of the
Corporation who is not an employee of the Company.

"NON-EMPLOYEE DIRECTOR PARTICIPANT" means a Non-Employee Director who holds an
outstanding Award under the provisions of this Plan.

"OPTION" means an option to purchase Common Stock granted under this Plan. The
Committee will designate any Option granted to an Eligible Person as a
Nonqualified Stock Option or an Incentive Stock Option.

"OTHER ELIGIBLE PERSON" means any Non-Employee Director or any individual
consultant or advisor who or (to the extent provided in the next sentence) agent
who renders or has rendered bona fide services (other than services in
connection with the offering or sale of securities of the Company in a capital
raising transaction) to the Company, and who is selected to participate in this
Plan by the Committee. A non-employee agent providing bona fide services to the
Company (other than as an eligible advisor or consultant) may also be selected
as an Other Eligible Person if such agent's participation in this Plan would not
adversely affect (a) the Corporation's eligibility to use Form S-8 to register
under the Securities Act of 1933, as amended, the offering of shares issuable
under this Plan by the Company or (b) the Corporation's compliance with any
other applicable laws.

"PARTICIPANT" means an Eligible Person who has been granted an Award under this
Plan.

"PERFORMANCE SHARE AWARD" means an Award of a right to receive shares of Common
Stock under Section 5.1, or to receive shares of Common Stock or other
compensation (including cash) under Section 5.2, the issuance or payment of
which is contingent upon, among other conditions, the attainment of performance
objectives specified by the Committee.

"PERSONAL REPRESENTATIVE" means the person or persons who, upon the disability
or incompetence of a Participant, has acquired on behalf of the Participant, by
legal proceeding or otherwise, the power to exercise the rights or receive
benefits under this Plan by virtue of having become the legal representative of
the Participant.

"PLAN" means this Equity Award Plan, as amended from time to time.

"QDRO" means a qualified domestic relations order.

"RESTRICTED SHARES" or "RESTRICTED STOCK" means shares of Common Stock awarded
to a Participant under this Plan, subject to payment of such consideration, if
any, and such conditions on vesting (which may include, among others, the
passage of time, specified performance objectives or other factors) and such
transfer and other restrictions as are established in or pursuant to this Plan
and the related Award Agreement, for so long as such shares remain unvested
under the terms of the applicable Award Agreement.

                                                                           78
<PAGE>   4

"RETIREMENT" means retirement with the consent of the Company or, from active
service as an employee or officer of the Company on or after attaining age 55
with ten or more years of service or age 65.

"RULE 16b-3" means Rule 16b-3 as promulgated by the Commission pursuant to the
Exchange Act, as amended from time to time, but subject to any applicable
transition rules.

"SECTION 16 PERSON" means a person subject to Section 16(a) of the Exchange Act.

"SECURITIES ACT" means the Securities Act of 1933, as amended from time to time.

"STOCK APPRECIATION RIGHT" means a right authorized under this Plan to receive a
number of shares of Common Stock or an amount of cash, or a combination of
shares and cash, the aggregate amount or value of which is determined by
reference to a change in the Fair Market Value of the Common Stock.

"STOCK BONUS" means an Award of shares of Common Stock granted under this Plan
for no consideration other than past services and without restriction other than
such transfer or other restrictions as the Committee may deem advisable to
assure compliance with law.

"SUBSIDIARY" means any corporation or other entity a majority of whose
outstanding voting stock or voting power is beneficially owned directly or
indirectly by the Corporation.

"TOTAL DISABILITY" means a disability where Participant is unable to effectively
engage in the material activities required for Participant's position with the
Company by reason of any medically determinable physical or mental impairment
that can be expected to result in death or that has lasted or can be expected to
last for a period of 90 consecutive days or for shorter periods aggregating 180
days in any consecutive 12 month period.

1.3      ADMINISTRATION AND AUTHORIZATION; POWER AND PROCEDURE.

         1.3.1 COMMITTEE. This Plan will be administered by and all Awards to
Eligible Persons will be authorized by the Committee. Action of the Committee
with respect to the administration of this Plan will be taken pursuant to a
majority vote or by written consent of its members.

         1.3.2 PLAN AWARDS; INTERPRETATION; POWERS OF COMMITTEE. Subject to
the express provisions of this Plan, the Committee will have the authority
to:

         (a)      determine the particular Eligible Person who will receive
                  Awards;

         (b)      grant Awards to Eligible Persons, determine the price at
                  which securities will be offered or awarded and the amount of
                  securities to be offered or awarded to any of such persons,
                  and determine the other specific terms and conditions of such
                  Awards consistent with the express limits of this Plan, and
                  establish the installments (if any) in which such Awards will
                  become exercisable or will vest, or determine that no delayed
                  exercisability or vesting is required, and establish the
                  events of termination or reversion of such Awards;

         (c)      approve the forms of Award Agreements (which need not be
                  identical either as to type of Award or among Participants);

         (d)      construe and interpret this Plan and any agreements defining
                  the rights and obligations of the Company and Participants
                  under this Plan, further define the terms used in this Plan,
                  and prescribe, amend and rescind rules and regulations
                  relating to the administration of this Plan;

         (e)      cancel, modify, or waive the Corporation's rights with respect
                  to, or modify, discontinue, suspend, or terminate any or all
                  outstanding Awards held by Eligible Persons, subject to any
                  required consent under Section 6.6 and provided, however, that
                  in no event shall the foregoing result in, without the prior
                  approval of the Corporation's shareholders, the

                                                                           79
<PAGE>   5

                  repricing of options through cancellation or regrant or
                  otherwise lowering of the exercise price of an outstanding
                  Award;

         (f)      accelerate or extend the exercisability or extend the term of
                  any or all such outstanding Awards within the maximum
                  ten-year term of Awards under Section 1.7; and

         (g)      make all other determinations and take such other action as
                  contemplated by this Plan or as may be necessary or advisable
                  for the administration of this Plan and the effectuation of
                  its purposes.

         1.3.3 BINDING DETERMINATIONS. Any action taken by, or inaction of, the
Corporation, any Subsidiary, the Board or the Committee relating or pursuant to
this Plan will be within the absolute discretion of that entity or body and will
be conclusive and binding upon all persons. No member of the Board or Committee,
or officer of the Corporation or any Subsidiary, will be liable for any such
action or inaction of the entity or body, of another person or, except in
circumstances involving bad faith, of himself or herself. Subject only to
compliance with the express provisions hereof, the Board and Committee may act
in their absolute discretion in matters within their authority related to this
Plan.

         1.3.4 RELIANCE ON EXPERTS. In making any determination or in taking or
not taking any action under this Plan, the Committee or the Board, as the case
may be, may obtain and may rely upon the advice of experts, including
professional advisors to the Corporation. No director, officer or agent of the
Company will be liable for any such action or determination taken or made or
omitted in good faith.

         1.3.5 DELEGATION. The Committee may delegate ministerial,
non-discretionary functions to individuals who are officers or employees of the
Company.

         1.3.6 CANCELLATION AND RECISSION OF AWARDS.

         (a) Unless the Award Agreement specifies otherwise, the Committee may
cancel, rescind, suspend, withhold or otherwise limit or restrict any unexpired,
unexercised, unpaid or deferred Awards at any time if the Participant is not in
compliance with all applicable provisions of the Award Agreement and the Plan,
or if the Participant engages in any "Detrimental Activity." For purposes of
this Section 1.3.6 "Detrimental Activity" shall include: (1) the rendering of
services for any organization or engaging directly or indirectly in any business
which is or becomes competitive with the Company, or which organization or
business, or the rendering of services to such organization or business, is or
becomes otherwise prejudicial to or in conflict with the interests of the
Company; (2) the disclosure to anyone outside the Company, or the use in other
than the Company's business, without prior written authorization from the
Company, of any confidential information or material, as defined in any Company
agreement regarding confidential information and intellectual property, relating
to the business of the Company, acquired by the Participant either during or
after employment with the Company; (3) the failure or refusal to disclose
promptly and to assign to the Company, pursuant to any Company agreement
regarding confidential information and intellectual property, all right, title
and interest in any invention or idea, patentable or not, made or conceived by
the Participant during employment by the Company, relating in any manner to the
actual or anticipated business, research or development work of the Company or
the failure or refusal to do anything reasonably necessary to enable the Company
to secure a patent where appropriate in the United States and in other
countries; (4) activity that results in termination of the Participant's
employment for cause; (5) a violation of any rules, policies, procedures or
guidelines of the Company; (6) any attempt directly or indirectly to induce any
employee of the Company to be employed or perform services elsewhere or any
attempt directly or indirectly to solicit the trade or business of any current
or prospective customer, supplier or partner of the Company; (7) the Participant
being convicted of, or entering a guilty plea with respect to, a crime, whether
or not connected with the Company; or (8) any other conduct or act determined to
be injurious, detrimental or prejudicial to any substantial interest of the
Company.

         (b) Upon exercise, payment or delivery pursuant to an Award, the
Participant shall certify in a manner acceptable to the Company that he or she
is in compliance with the terms and conditions of the Plan. If a Participant
fails to comply with the provisions of paragraphs (a)(1)-(8) of this Section
1.3.6 prior to, or during the 12 months after, any exercise, payment or delivery
pursuant to an Award, the Committee may rescind the exercise, payment or
delivery within two years thereafter. In the event of any such rescission, the
Participant shall pay to the Company the amount of any gain realized or payment
received as a result of the rescinded exercise, payment or delivery, in the
manner and on the terms and conditions

                                                                           80
<PAGE>   6

that the Committee may require, and the Company shall may set-off against the
amount of any such gain any amount owed to the Participant by the Company.

1.4   PARTICIPATION. Awards may be granted by the Committee only to those
persons that the Committee determines to be Eligible Persons. An Eligible
Person who has been granted an Award may, if otherwise eligible, be granted
additional Awards if the Committee so determines.

1.5   SHARES AVAILABLE FOR AWARDS; SHARE LIMITS.

       1.5.1 SHARES AVAILABLE. Subject to the provisions of Section 6.2, the
capital stock that may be delivered under this Plan will be shares of the
Corporation's authorized but unissued Common Stock and any shares of its
Common Stock held as treasury shares. The shares may be delivered for any
lawful consideration.

       1.5.2 SHARE LIMITS. The maximum number of shares of Common Stock that
may be delivered pursuant to Awards granted to Eligible Persons under this
Plan will not exceed 2,000,000 shares (the "SHARE LIMIT"). The maximum number
of shares subject to those options and Stock Appreciation Rights that are
granted during any calendar year to any individual will be limited to 225,000
and the maximum individual limit on the number of shares in the aggregate
subject to all Awards that during any calendar year are granted under this
Plan will be 500,000. The maximum number of shares that may be granted as
options shall not exceed 2,000,000. The maximum number of shares subject to
those options and Stock Appreciation Rights that may be granted to
Non-Employee Directors will not exceed 750,000 shares. Each of the foregoing
numerical limits will be subject to adjustment as contemplated by this Section
1.5.2 and by Section 6.2.

1.5.3  SHARE RESERVATION; REPLENISHMENT AND REISSUE OF UNVESTED AWARDS. No
Award may be granted under this Plan unless, on the date of grant, the sum of
(a) the maximum number of shares issuable at any time pursuant to such Award,
plus (b) the number of shares that have previously been issued pursuant to
Awards granted under this Plan, other than reacquired shares available for
reissue consistent with any applicable legal limitations, plus (c) the maximum
number of shares that may be issued at any time after such date of grant
pursuant to Awards that are outstanding on such date, does not exceed the
Share Limit. Shares that are subject to or underlie Awards that expire or for
any reason are cancelled or terminated, are forfeited, fail to vest, or for
any other reason are not paid or delivered under this Plan, as well as
reacquired shares, will again, except to the extent prohibited by law, be
available for subsequent Awards under the Plan. Except as limited by law, if
an Award is or may be settled only in cash, such Award need not be counted
against any of the limits under this Section 1.5.3.

1.6    GRANT OF AWARDS. Subject to the express provisions of this Plan, the
Committee will determine the number of shares of Common Stock subject to each
Award, the price (if any) to be paid for the shares or the Award and, in the
case of performance share awards, in addition to matters addressed in Section
1.3.2, the specific objectives, goals and performance criteria (such as an
increase in sales, market value, earnings or book value over a base period, the
years of service before vesting, the relevant job classification or level of
responsibility or other factors) that further define the terms of the
performance share award. Each Award will be evidenced by an Award Agreement
signed by the Corporation and, if required by the Committee, by the Participant.
Notwithstanding the foregoing, in the event an Award is made to a Non-Employee
Director under this Plan, the terms and conditions of said Award as contemplated
by this paragraph 1.6 shall be made by the Board of Directors of the
Corporation.

1.7    AWARD PERIOD. Each Award and all executory rights or obligations under
the related Award Agreement will expire on such date (if any) as determined
by the Committee, but in the case of Incentive Stock Options not later than ten
(10) years after the Award Date.

1.8    LIMITATIONS ON EXERCISE AND VESTING OF AWARDS.

       1.8.1 PROVISIONS FOR EXERCISE. Subject to the provisions of Section
6.2.2, the Committee shall establish the installments (if any) in which Awards
will become exercisable or will vest, or determine that no delayed
exercisability or vesting is required. Notwithstanding the foregoing, an Award
shall be immediately exercisable or vest upon the death, Total Disability or
Retirement of a Participant.

                                                                           81
<PAGE>   7

         1.8.2 PROCEDURE. Any exercisable Award will be deemed to be exercised
when the Corporation receives written notice of such exercise from the
Participant, together with any required payment made in accordance with Section
2.2.2.

         1.8.3 FRACTIONAL SHARES/MINIMUM ISSUE. Fractional share interests will
be disregarded, but may be accumulated. The Committee, however, may determine in
the case of Eligible Persons that cash, other securities, or other property will
be paid or transferred in lieu of any fractional share interests. No fewer than
100 shares may be purchased on exercise of any Award at one time unless the
number purchased is the total number at the time available for purchase under
the Award.

1.9      NO TRANSFERABILITY; LIMITED EXCEPTION TO TRANSFER RESTRICTIONS.

         1.9.1 LIMIT ON EXERCISE AND TRANSFER. Unless otherwise expressly
provided in (or pursuant to) this Section 1.9, by applicable law and by the
Award Agreement, as the same may be amended, (a) all Awards are non-transferable
and will not be subject in any manner to sale, transfer, anticipation,
alienation, assignment, pledge, encumbrance or charge; Awards will be exercised
only by the Participant; and (b) amounts payable or shares issuable pursuant to
an Award will be delivered only to (or for the account of) the Participant.

         1.9.2 EXCEPTIONS. The Committee may permit Awards to be exercised by
and paid only to certain persons or entities related to the Participant pursuant
to such conditions and procedures as the Committee may establish. Any permitted
transfer will be subject to the condition that the Committee receive evidence
satisfactory to it that the transfer is being made for estate and/or tax
planning purposes and without consideration (other than nominal consideration).
ISOs and Restricted Stock Awards, however, will be subject to any and all
additional transfer restrictions under the Code.

       1.9.3 FURTHER EXCEPTIONS TO LIMITS ON TRANSFER. The exercise and
transfer restrictions in Section 1.9.1 will not apply to:

         (a)      transfers to the Corporation,

         (b)      the designation of a beneficiary to receive benefits if the
                  Participant dies or, if the Participant has died, transfers to
                  or exercise by the Participant's beneficiary, or, in the
                  absence of a validly designated beneficiary, transfers by will
                  or the laws of descent and distribution,

         (c)      transfers pursuant to a QDRO order if approved or ratified
                  by the Committee,

         (d)      if the Participant has suffered a disability, permitted
                  transfers or exercises on behalf of the Participant by the
                  Participant's legal representative, or

         (e)      the authorization by the Committee of "cashless exercise"
                  procedures with third parties who provide financing for the
                  purpose of (or who otherwise facilitate) the exercise of
                  Awards consistent with applicable laws and the express
                  authorization of the Committee.

2.    OPTIONS

2.1   GRANTS. One or more Options may be granted under this Section to any
Eligible Person. Each Option granted will be designated in the applicable
Award Agreement, by the Committee as either an Incentive Stock Option, subject
to Section 2.3, or a Non-Qualified Stock Option.

2.2   OPTION PRICE.

      2.2.1 PRICING LIMITS. The purchase price per share of the Common Stock
covered by each Option will be determined by the Committee at the time of the
Award, but in the case of Incentive Stock Options will not be less than 100%
(110% in the case of a Participant described in Section 2.4) of the Fair
Market Value of the Common Stock on the date of grant and in all cases will
not be less than the par value thereof.

                                                                           82
<PAGE>   8

         2.2.2 PAYMENT PROVISIONS. The purchase price of any shares purchased on
exercise of an Option granted under this Section will be paid in full at the
time of each purchase in one or a combination of the following methods: (a) in
cash or by electronic funds transfer; (b) by certified or cashier's check
payable to the order of the Corporation; (c) if authorized by the Committee or
specified in the applicable Award Agreement, by a promissory note of the
Participant, provided that an amount equal to not less than the par value of the
shares is paid in cash; (d) by notice and third party payment in such manner as
may be authorized by the Committee; or (e) by the delivery of shares of Common
Stock of the Corporation already owned by the Participant, but the Committee may
in its absolute discretion limit the Participant's ability to exercise an Award
by delivering such shares, and any shares delivered that were initially acquired
upon exercise of a stock option must have been owned by the Participant at least
six months as of the date of delivery. Shares of Common Stock used to satisfy
the exercise price of an Option will be valued at their Fair Market Value on the
date of exercise. In addition to the payment methods described above, the
Committee may provide that the Option can be exercised and payment made by
delivering a properly executed exercise notice together with irrevocable
instructions to a broker to promptly deliver to the Corporation the amount of
sale proceeds necessary to pay the exercise price and, unless otherwise
prohibited by the Committee or applicable law, any applicable tax withholding
under Section 6.5. The Corporation will not be obligated to deliver certificates
for the shares unless and until it receives full payment of the exercise price
therefor and any related withholding obligations have been satisfied.

2.3      LIMITATIONS ON GRANT AND TERMS OF INCENTIVE STOCK OPTIONS.

         2.3.1 $100,000 LIMIT. To the extent that the aggregate "FAIR MARKET
VALUE" of stock with respect to which incentive stock options first become
exercisable by a Participant in any calendar year exceeds $100,000, taking into
account both Common Stock subject to Incentive Stock Options under this Plan and
stock subject to incentive stock options under all other plans of the Company or
any parent corporation, such options will be treated as Nonqualified Stock
Options. For this purpose, the "FAIR MARKET VALUE" of the stock subject to
options will be determined as of the date the options were awarded. In reducing
the number of options treated as incentive stock options to meet the $100,000
limit, the most recently granted options will be reduced first. To the extent a
reduction of simultaneously granted options is necessary to meet the $100,000
limit, the Committee may, in the manner and to the extent permitted by law,
designate which shares of Common Stock are to be treated as shares acquired
pursuant to the exercise of an Incentive Stock Option.

         2.3.2 OPTION PERIOD. Each Option and all rights thereunder will
expire no later than 10 years after the Award Date.

         2.3.3 OTHER CODE LIMITS. Incentive Stock Options may only be granted to
Eligible Employees of the Corporation or a Subsidiary that satisfies the other
eligibility requirements of the Code. There will be imposed in any Award
Agreement relating to Incentive Stock Options such other terms and conditions as
from time to time are required in order that the Option be an "incentive stock
option" as that term is defined in Section 422 of the Code.

2.4      LIMITS ON 10% HOLDERS. No Incentive Stock Option may be granted to any
person who, at the time the Option is granted, owns (or is deemed to own under
Section 424(d) of the Code) shares of outstanding Common Stock possessing more
than 10% of the total combined voting power of all classes of stock of the
Corporation, unless the exercise price of such Option is at least 110% of the
Fair Market Value of the stock subject to the Option and such Option by its
terms is not exercisable after the expiration of five years from the date such
Option is granted.

2.5      OPTION CANCELLATION AND REGRANT/WAIVER OF RESTRICTIONS. Subject to
Section 1.3 and Section 6.6 and the specific limitations on Awards contained
in this Plan, the Committee from time to time may authorize, generally or in
specific cases only, for the benefit of any Eligible Person any adjustment in
the vesting schedule, the number of shares subject to, the restrictions upon
or the term of, an Award granted under this Section by cancellation of an
outstanding Award and a subsequent regranting of an Award, by amendment, by
substitution of an outstanding Award, by waiver or by other legally valid
means. Such amendment or other action may result in a greater or lesser
number of shares

                                                                           83
<PAGE>   9

subject to the Award, or provide for a longer or shorter vesting or exercise
period. In no event shall the foregoing result in, without the prior approval
of the Corporation's shareholders, the repricing of options through
cancellation or regrant or otherwise lowering of the exercise price of an
outstanding Award.

                                                                           84
<PAGE>   10

2.6    EFFECTS OF TERMINATION OF EMPLOYMENT; TERMINATION OF SUBSIDIARY
       STATUS; DISCRETIONARY PROVISIONS.

       2.6.1 OPTIONS - RESIGNATION OR DISMISSAL. If the Participant's
employment by (or other service specified in the Award Agreement to) the
Company terminates for any reason (the date of such termination being
referred to as the "SEVERANCE DATE") other than Retirement, Total Disability
or death, or "FOR CAUSE" (as determined in the discretion of the Committee),
the Participant will have, unless otherwise provided in the Award Agreement
and subject to earlier termination pursuant to or as contemplated by Section
1.3, 1.7 or 6.2, three months after the Severance Date to exercise any Option
to the extent it has become exercisable on the Severance Date. In other
cases, the Option, to the extent not exercisable on the Severance Date, will
terminate.

       2.6.2 OPTIONS - DEATH OR DISABILITY. If the Participant's employment
by (or specified service to) the Company terminates as a result of Total
Disability or death, the Participant, Participant's Personal Representative
or the Participant's Beneficiary, as the case may be, will have, unless
otherwise provided in the Award Agreement and subject to earlier termination
pursuant to or as contemplated by Section 1.7 or 6.2, until 12 months after
the Severance Date to exercise any Option to the extent it will have become
exercisable by the Severance Date. Any Option to the extent not exercisable
on the Severance Date will terminate.

       2.6.3 OPTIONS - RETIREMENT. If the Participant's employment by (or
specified service to) the Company terminates as a result of Retirement, the
Participant, Participant's Personal Representative or the Participant's
Beneficiary, as the case may be, will have, unless otherwise provided in the
Award Agreement and subject to earlier termination pursuant to or as
contemplated by Section 1.7 or 6.2, until 12 months after the Severance Date
to exercise any Nonqualified Stock Option (three months after the Severance
Date in the case of an Incentive Stock Option) to the extent it will have
become exercisable by the Severance Date. The Option, to the extent not
exercisable on the Severance Date, will terminate.

       2.6.4 CERTAIN SARS. Any SAR granted concurrently or in tandem with an
Option will have the same post-termination provisions and exercisability
periods as the Option to which it relates, unless the Committee otherwise
provides.

       2.6.5 OTHER AWARDS. The Committee will establish in respect of each
other Award granted hereunder the Participant's rights and benefits (if any)
if the Participant's employment is terminated and in so doing may make
distinctions based upon the cause of termination and the nature of the Award.

       2.6.6 COMMITTEE DISCRETION. Notwithstanding the foregoing provisions
of this Section 2.6, in the event of, or in anticipation of, a termination of
employment with the Company for any reason, other than discharge for cause,
the Committee may increase the portion of the Participant's Award available
to the Participant, or Participant's Beneficiary or Personal Representative,
as the case may be, or, subject to the provisions of Section 1.6, extend the
exercisability period upon such terms as the Committee determines and
expressly sets forth in or by amendment to the Award Agreement.

2.7    OPTIONS AND RIGHTS IN SUBSTITUTION FOR STOCK OPTIONS GRANTED BY OTHER
CORPORATIONS. Options and Stock Appreciation Rights may be granted to
Eligible Persons under this Plan in substitution for employee stock options
granted by other entities to persons who are or who will become Eligible
Persons in respect of the Company, in connection with a distribution, merger
or reorganization by or with the granting entity or an affiliated entity, or
the acquisition by the Company, directly or indirectly, of all or a
substantial part of the stock or assets of the employing entity.

3.     STOCK APPRECIATION RIGHTS (INCLUDING LIMITED STOCK APPRECIATION
       RIGHTS)

3.1    GRANTS. The Committee may grant to any Eligible Person Stock
Appreciation Rights either concurrently with the grant of another Award or
in respect of an outstanding Award, in whole or in part, or independently of
any other Award. Any Stock Appreciation Right granted in connection with an
Incentive Stock Option will contain such terms as may be required to comply
with the provisions of Section 422 of the Code and the regulations
promulgated thereunder, unless the holder otherwise agrees.

                                                                           85
<PAGE>   11

3.2    EXERCISE OF STOCK APPRECIATION RIGHTS.

       3.2.1 EXERCISABILITY. Unless the Award Agreement or the Committee
otherwise provides, a Stock Appreciation Right related to another Award will
be exercisable at such time or times, and to the extent, that the related
Award will be exercisable.

       3.2.2 EFFECT ON AVAILABLE SHARES. To the extent that a Stock
Appreciation Right is exercised, only the actual number of delivered shares
of Common Stock will be charged against the maximum amount of Common Stock
that may be delivered pursuant to Awards under this Plan. The number of
shares subject to the Stock Appreciation Right and the related Option of the
Participant will, however, be reduced by the number of underlying shares as
to which the exercise related, unless the Award Agreement otherwise
provides.

       3.2.3 STAND-ALONE SARS. A Stock Appreciation Right granted
independently of any other Award will be exercisable pursuant to the terms
of the Award Agreement but in no event earlier than six months after the
Award Date, except in the case of death or Total Disability.

       3.2.4 PROPORTIONATE REDUCTION. If an SAR extends to less than all the
shares covered by the related Award and if a portion of the related Award is
thereafter exercised, the number of shares subject to the unexercised SAR
shall be reduced only if and to the extent that the remaining number of
shares covered by such related Award is less than the remaining number of
shares subject to such SAR.

3.3    PAYMENT.

       3.3.1 AMOUNT. Unless the Committee otherwise provides, upon exercise
of a Stock Appreciation Right and the attendant surrender of an exercisable
portion of any related Award, the Participant will be entitled to receive
subject to Section 6.5 payment of an amount determined by multiplying

       (a)    the difference obtained by subtracting the exercise price per
              share of Common Stock under the related Award (if applicable)
              or the initial share value specified in the Award from the
              Fair Market Value of a share of Common Stock on the date of
              exercise of the Stock Appreciation Right, by

       (b)    the number of shares with respect to which the Stock
              Appreciation Right has been exercised.

       3.3.2 FORM OF PAYMENT. The Committee, in its sole discretion, will
determine the form in which payment will be made of the amount determined
under Section 3.3.1 above, either solely in cash, solely in shares of Common
Stock (valued at Fair Market Value on the date of exercise of the Stock
Appreciation Right), or partly in such shares and partly in cash, but the
Committee will have determined that such exercise and payment are consistent
with applicable law. If the Committee permits the Participant to elect to
receive cash or shares (or a combination thereof) on such exercise, any such
election will be subject to such conditions as the Committee may impose.

3.4    LIMITED STOCK APPRECIATION RIGHTS. The Committee may grant to any
Eligible Person Stock Appreciation Rights exercisable only upon or in
respect of a change in control or any other specified event ("LIMITED SARS")
and such Limited SARs may relate to or operate in tandem or combination with
or substitution for Options, other SARs or other Awards (or any combination
thereof), and may be payable in cash or shares based on the spread between
the base price of the SAR and a price based upon or equal to the Fair Market
Value of the Shares during a specified period or at a specified time within
a specified period before, after or including the date of such event.

4.     RESTRICTED STOCK AWARDS

4.1    GRANTS. The Committee may grant one or more Restricted Stock Awards to
any Eligible Person. Each Restricted Stock Award Agreement will specify the
number of shares of Common Stock to be issued to the Participant, the date
of such issuance, the consideration for such shares (but not less than the
minimum lawful consideration under applicable state law) that must be paid
by the Participant, the extent (if any) to which and the time (if ever) at
which the Participant will be entitled to dividends, voting

                                                                           86
<PAGE>   12

and other rights in respect of the shares prior to vesting, and the
restrictions (which may be based on performance criteria, passage of time or
other factors or any combination thereof) imposed on such shares and the
conditions of release or lapse of such restrictions. Such restrictions will
not lapse earlier than six months after the Award Date, except to the extent
the Committee may otherwise provide. Stock certificates evidencing shares of
Restricted Stock pending the lapse of the restrictions ("RESTRICTED SHARES")
will bear a legend making appropriate reference to the restrictions imposed
hereunder and will be held by the Corporation or by a third party designated
by the Committee until the restrictions on such shares have lapsed and the
shares have vested in accordance with the provisions of the Award and
Section 1.7. Upon issuance of the Restricted Stock Award, the Participant
may be required to provide such further assurance and documents as the
Committee may require to enforce the restrictions.

4.2    RESTRICTIONS.

       4.2.1 PRE-VESTING RESTRAINTS. Except as provided in Sections 4.1 and
1.9, restricted shares comprising any Restricted Stock Award may not be
sold, assigned, transferred, pledged or otherwise disposed of or encumbered,
either voluntarily or involuntarily, until the restrictions on such shares
have lapsed and the shares have become vested.

       4.2.2 DIVIDEND AND VOTING RIGHTS. Unless otherwise provided in the
applicable Award Agreement, a Participant receiving a Restricted Stock Award
will be entitled to cash dividend and voting rights for all shares issued
even though they are not vested, but such rights will terminate immediately
as to any Restricted Shares which cease to be eligible for vesting.

       4.2.3 CASH PAYMENTS. If the Participant has been paid or received
cash (including any dividends) in connection with the Restricted Stock
Award, the Award Agreement will specify whether and to what extent such cash
will be returned (with or without an earnings factor) as to any restricted
shares that cease to be eligible for vesting.

4.3    RETURN TO THE CORPORATION. Unless the Committee otherwise expressly
provides, Restricted Shares that remain subject to restrictions at the time
of termination of employment or are subject to other conditions to vesting
that have not been satisfied by the time specified in the applicable Award
Agreement will not vest and will be returned to the Corporation in such
manner and on such terms as the Committee provides.

5.     PERFORMANCE SHARE AWARDS AND STOCK BONUSES

5.1    GRANTS OF PERFORMANCE SHARE AWARDS. The Committee may grant Performance
Share Awards to Eligible Persons based upon such factors as the Committee
deems relevant in light of the specific type and terms of the award. An Award
Agreement will specify the maximum number of shares of Common Stock (if any)
subject to the Performance Share Award, the consideration (but not less than
the minimum lawful consideration) to be paid for any such shares as may be
issuable to the Participant, the duration of the Award and the conditions
upon which delivery of any shares or cash to the Participant will be based.
The amount of cash or shares or other property that may be deliverable
pursuant to such Award will be based upon the degree of attainment over a
specified period of not more than 10 years (a "PERFORMANCE CYCLE") as may be
established by the Committee of such measure(s) of the performance of the
Company (or any part thereof) or the Participant as may be established by the
Committee. The Committee may provide for full or partial credit, prior to
completion of such performance cycle or the attainment of the performance
achievement specified in the Award, in the event of the Participant's death,
Retirement, or Total Disability, a Change in Control Event or in such other
circumstances as the Committee (consistent with Section 6.10.3(b), if
applicable) may determine.

5.2    SPECIAL PERFORMANCE-BASED SHARE AWARDS. Without limiting the generality
of the foregoing, and in addition to Performance Share Awards granted under
other provisions of this Section 5, other performance-based awards within the
meaning of Section 162(m) of the Code ("PERFORMANCE-BASED AWARDS"), whether
in the form of restricted stock, performance stock, phantom stock or other
rights, the vesting of which depends on the performance of the Company on a
consolidated, segment, subsidiary or division basis with reference to
revenues, net earnings (before or after taxes or before or after taxes,
interest, depreciation, and/or amortization), cash flow, return on equity or
on assets or on net investment, or cost containment or reduction, or any
combination thereof (the business criteria) relative to preestablished
performance goals, may be granted under this Plan. The

                                                                           87
<PAGE>   13

applicable business criteria and the specific performance goals must be
approved by the Committee in advance of applicable deadlines under the Code
and while the performance relating to such goals remains substantially
uncertain. The applicable performance measurement period may be not less than
one nor more than 10 years. Performance targets may be adjusted to mitigate
the unbudgeted impact of material, unusual or nonrecurring gains and losses,
accounting changes or other extraordinary events not foreseen at the time the
targets were set. Other types of performance and non- performance awards may
also be granted under the other provisions of this Plan.

       5.2.1 ELIGIBLE CLASS. The eligible class of persons for Awards under
this Section is executive officers of the Corporation.

       5.2.2 MAXIMUM AWARD. In no event will grants in any calendar year to a
Participant under this Section 5.2 relate to shares with a value in excess of
$1 million or a cash amount of more than $1 million.

       5.2.3 COMMITTEE CERTIFICATION. Before any Performance-Based Award
under this Section 5.2 is paid, the Committee must certify that the material
terms of the Performance-Based Award were satisfied.

       5.2.4 TERMS AND CONDITIONS OF AWARDS. The Committee will have
discretion to determine the restrictions or other limitations of the
individual Awards under this Section 5.2 (including the authority to reduce
Awards, payouts or vesting or to pay no Awards, in its sole discretion, if
the Committee preserves such authority at the time of grant by language to
this effect in its authorizing resolutions or otherwise).

       5.2.5 STOCK PAYOUT FEATURES. In lieu of cash payment of an Award, the
Committee may require or allow a portion of the Award to be paid in the form
of stock, Restricted Shares or an Option.

5.3    GRANTS OF STOCK BONUSES. The Committee may grant a Stock Bonus to any
Eligible Person to reward exceptional or special services, contributions or
achievements in the manner and on such terms and conditions (including any
restrictions on such shares) as determined from time to time by the
Committee. The number of shares so awarded will be determined by the
Committee. The Award may be granted independently or in lieu of a cash bonus.

5.4    DEFERRED PAYMENTS. The Committee may authorize for the benefit of any
Eligible Person the deferral of any payment of cash or shares that may become
due or of cash otherwise payable under this Plan, and provide for accredited
benefits thereon based upon such deferment, at the election or at the request
of such Participant, subject to the other terms of this Plan. Such deferral
will be subject to such further conditions, restrictions or requirements as
the Committee may impose, subject to any then vested rights of Participants.

5.5    CASH BONUS AWARDS.

       5.5.1 PERFORMANCE GOALS. The Committee may establish a program of
annual incentive awards that are payable in cash to Eligible Persons based
upon the extent to which performance goals are met during the performance
period. The performance goals may depend upon the performance of the Company
on a consolidated, subsidiary division basis with reference to revenues, net
earnings (before or after interest, taxes, depreciation, or amortization),
cash flow, return on equity or on assets or net investment, cost containment
or reduction, or achievement of strategic goals (or any combination of such
factors). In addition, the award may depend upon the Eligible Employee's
individual performance.

       5.5.2 MAXIMUM ANNUAL AMOUNT. In no event may awards payable for any
year to any Eligible Employee exceed $1 million.

       5.5.3 PAYMENT IN RESTRICTED STOCK. In lieu of cash payment of the
awards, the Committee may require or allow a portion of the award to be paid
in the form of a Restricted Stock Award.

6.     OTHER PROVISIONS

6.1    RIGHTS OF ELIGIBLE PERSONS, PARTICIPANTS AND BENEFICIARIES.

                                                                           88
<PAGE>   14

         6.1.1 EMPLOYMENT STATUS. Status as an Eligible Person will not be
construed as a commitment that any Award will be made under this Plan to an
Eligible Person or to Eligible Persons generally.

         6.1.2 NO EMPLOYMENT CONTRACT. Nothing contained in this Plan (or in any
other documents related to this Plan or to any Award) will confer upon any
Eligible Person or other Participant any right to continue in the employ or
other service of the Company or constitute any contract or agreement of
employment or other service, nor will interfere in any way with the right of the
Company to otherwise change such person's compensation or other benefits or to
terminate the employment of such person, with or without cause, but nothing
contained in this Plan or any related document will adversely affect any
independent contractual right of such person without the Participant's consent.

         6.1.3 PLAN NOT FUNDED. Awards payable under this Plan will be payable
in shares or from the general assets of the Corporation, and (except as provided
in Section 1.4.3) no special or separate reserve, fund or deposit will be made
to assure payment of such Awards. No Participant, Beneficiary or other person
will have any right, title or interest in any fund or in any specific asset
(including shares of Common Stock, except as expressly otherwise provided) of
the Company by reason of any Award hereunder. Neither the provisions of this
Plan (or of any related documents), nor the creation or adoption of this Plan,
nor any action taken pursuant to the provisions of this Plan will create, or be
construed to create, a trust of any kind or a fiduciary relationship between the
Company and any Participant, Beneficiary or other person. To the extent that a
Participant, Beneficiary or other person acquires a right to receive payment
pursuant to any Award hereunder, such right will be no greater than the right of
any unsecured general creditor of the Company.

6.2      ADJUSTMENTS; ACCELERATION.

         6.2.1 ADJUSTMENTS. The following provisions will apply if any
extraordinary dividend or other extraordinary distribution occurs in respect of
the Common Stock (whether in the form of cash, Common Stock, other securities,
or other property), or any reclassification, recapitalization, stock split
(including a stock split in the form of a stock dividend), reverse stock split,
reorganization, merger, combination, consolidation, split-up, spin-off,
combination, repurchase, or exchange of Common Stock or other securities of the
Corporation, or any similar, unusual or extraordinary corporate transaction (or
event in respect of the Common Stock) or a sale of substantially all the assets
of the Corporation as an entirety occurs. The Committee will, in such manner and
to such extent (if any) as it deems appropriate and equitable

         (a)      proportionately adjust any or all of (i) the number and type
                  of shares of Common Stock (or other securities) that
                  thereafter may be made the subject of Awards (including the
                  specific maximums and numbers of shares set forth elsewhere in
                  this Plan), (ii) the number, amount and type of shares of
                  Common Stock (or other securities or property) subject to any
                  or all outstanding Awards,(iii) the grant, purchase, or
                  exercise price of any or all outstanding Awards, (iv) the
                  securities, cash or other property deliverable upon exercise
                  of any outstanding Awards, or (v) the performance standards
                  appropriate to any outstanding Awards, or

         (b)      in the case of an extraordinary dividend or other
                  distribution, recapitalization, reclassification, merger,
                  reorganization, consolidation, combination, sale of assets,
                  split up, exchange, or spin off, make provision for a cash
                  payment or for the substitution or exchange of any or all
                  outstanding Awards or the cash, securities or property
                  deliverable to the holder of any or all outstanding Awards
                  based upon the distribution or consideration payable to
                  holders of the Common Stock of the Corporation upon or in
                  respect of such event. In each case, with respect to Awards
                  of Incentive Stock Options, no such adjustment will be made
                  that would cause the Plan to violate Section 424(a) of the
                  Code or any successor provisions without the written
                  consent of holders materially adversely affected thereby.
                  In any of such events, the Committee may take such action
                  sufficiently prior to such event if necessary to permit the
                  Participant to realize the benefits intended to be conveyed
                  with respect to the underlying shares in the same manner as
                  is available to stockholders generally.

                                                                           89
<PAGE>   15

         6.2.2 ACCELERATION OF AWARDS UPON CHANGE IN CONTROL. Unless prior to a
Change in Control Event the Committee determines that, upon its occurrence,
benefits under Awards will not accelerate or determines that only certain or
limited benefits under Awards will be accelerated and the extent to which they
will be accelerated, and/or establishes a different time in respect of such
Event for such acceleration, then upon the occurrence of a Change in Control
Event

         (a)      each Option and Stock Appreciation Right will become
                  immediately exercisable,

         (b)      Restricted Stock will immediately vest free of
                  restrictions, and

         (c)      the full amount of each Performance Share Award will become
                  payable to the Participant. The Committee may override the
                  limitations on acceleration in this Section 6.2.2 by
                  express provision in the Award Agreement and may accord any
                  Eligible Person a right to refuse any acceleration, whether
                  pursuant to the Award Agreement or otherwise, in such
                  circumstances as the Committee may approve. Any
                  acceleration of Awards will comply with applicable legal
                  requirements.

         6.2.3 POSSIBLE EARLY TERMINATION OF ACCELERATED AWARDS. If any Option
or other right to acquire Common Stock under this Plan (other than under Section
8) has been fully accelerated as permitted by Section 6.2.2 but is not exercised
prior to (a) a dissolution of the Corporation, or (b) an event described in
Section 6.2.1 that the Corporation does not survive, or (c) the consummation of
an event described in Section 6.1 that results in a Change of Control approved
by the Board, such Option or right will terminate, subject to any provision that
has been expressly made by the Committee for the survival, substitution,
exchange or other settlement of such Option or right.

         6.2.4 GOLDEN PARACHUTE LIMITATIONS. Unless otherwise specified in an
Award Agreement, no Award may be accelerated under this Plan to an extent or in
a manner that would not be fully deductible by the Company for federal income
tax purposes because of Section 280G of the Code, nor will any payment hereunder
be accelerated if any portion of such accelerated payment would not be
deductible by the Company because of Section 280G of the Code. If a holder would
be entitled to benefits or payments hereunder and under any other plan or
program that would constitute "parachute payments" as defined in Section 280G of
the Code, then the holder may by written notice to the Company designate the
order in which such parachute payments will be reduced or modified so that the
Company is not denied federal income tax deductions for any "parachute payments"
because of Section 280G of the Code.

6.3    EFFECT OF TERMINATION OF EMPLOYMENT. The Committee will establish in
respect of each Award granted to an Eligible Person the effect of a
termination of employment on the rights and benefits thereunder and in so
doing may make distinctions based upon the cause of termination.

6.4    COMPLIANCE WITH LAWS. This Plan, the granting and vesting of Awards under
this Plan and the offer, issuance and delivery of shares of Common Stock
and/or the payment of money under this Plan or under Awards granted hereunder
are subject to compliance with all applicable federal and state laws, rules
and regulations (including but not limited to state and federal securities
law, federal margin requirements) and to such approvals by any listing,
regulatory or governmental authority as may, in the opinion of counsel for
the Corporation, be necessary or advisable in connection therewith. Any
securities delivered under this Plan will be subject to such restrictions,
and to any restrictions the Committee may require to preserve a pooling of
interests under generally accepted accounting principles, and the person
acquiring such securities will, if requested by the Corporation, provide such
assurances and representations to the Corporation as the Corporation may deem
necessary or desirable to assure compliance with all applicable legal
requirements.

6.5    TAX WITHHOLDING.

       6.5.1 MANDATORY TAX WITHHOLDING OFFSET. Subject only to Section 6.4,
the number of shares or the payment of cash issuable or payable in respect of
an Award, will be reduced by the amount necessary to satisfy the minimum
applicable tax withholding requirements imposed on the Company or any
subsidiary in respect of such Award or event. The participant will have no
discretion as to whether

                                                                           90
<PAGE>   16

such shares or amount will or will not be withheld and offset by the Company.
Such withholding offset will be mandatory and nondiscretionary.

         6.5.2 TAX LOANS. If so provided in the Award Agreement, the Company
may, to the extent permitted by law, authorize a loan to an Eligible Person in
the amount of any taxes that the Company may be required to withhold with
respect to shares of Common Stock received (or disposed of, as the case may be)
pursuant to a transaction described in Section 6.5.1. Such a loan will be for a
term, at a rate of interest and pursuant to such other terms and conditions as
the Company, under applicable law may establish.

6.6      PLAN AMENDMENT, TERMINATION AND SUSPENSION.

         6.6.1 BOARD AUTHORIZATION. The Board may, at any time, terminate or,
from time to time, amend, modify or suspend this Plan, in whole or in part. No
Awards may be granted during any suspension of this Plan or after termination of
this Plan, but the Committee will retain jurisdiction as to Awards then
outstanding in accordance with the terms of this Plan.

         6.6.2 STOCKHOLDER APPROVAL. To the extent then required under Sections
422 and 424 of the Code, Section 505 of the New York Business Corporation Law,
or any other applicable law, or deemed necessary or advisable by the Board, any
amendment to this Plan shall be subject to shareholder approval.

         6.6.3 AMENDMENTS TO AWARDS. Without limiting any other express
authority of the Committee under but subject to the express limits of this Plan,
the Committee by agreement or resolution may waive conditions of or limitations
on Awards to Eligible Persons that the Committee in the prior exercise of its
discretion has imposed, without the consent of a Participant, and may make other
changes to the terms and conditions of Awards that do not affect in any manner
materially adverse to the Participant, the Participant's rights and benefits
under an Award. In no event shall the foregoing result in, without the prior
approval of the Corporation's shareholders, the repricing of options through the
cancellation or regrant or otherwise lowering of the exercise price of an
outstanding Award.

         6.6.4 LIMITATIONS ON AMENDMENTS TO PLAN AND AWARDS. No amendment,
suspension or termination of this Plan or change of or affecting any outstanding
Award will, without written consent of the Participant, affect in any manner
materially adverse to the Participant any rights or benefits of the Participant
or obligations of the Corporation under any Award granted under this Plan prior
to the effective date of such change. Changes contemplated by Section 6.2 will
not be deemed to constitute changes or amendments for purposes of this Section
6.6.

6.7   PRIVILEGES OF STOCK OWNERSHIP. Except as otherwise expressly authorized
by the Committee or this Plan, a Participant will not be entitled to any
privilege of stock ownership as to any shares of Common Stock not actually
delivered to and held of record by the Participant. No adjustment will be
made for dividends or other rights as a stockholder for which a record date
is prior to such date of delivery.

6.8   EFFECTIVE DATE OF THE PLAN. This Plan will be effective as of the date it
is approved by the Board, subject to stockholder approval of the shareholders
of the Corporation.

6.9   TERM OF THE PLAN. No Award will be granted under this Plan after more
than ten years after the effective date of this Plan (the "TERMINATION
DATE"). Unless otherwise expressly provided in this Plan or in an applicable
Award Agreement, any Award granted prior to the termination date may extend
beyond such date, and all authority of the Committee with respect to Awards
hereunder, including the authority to amend an Award, will continue during
any suspension of this Plan and in respect of Awards outstanding on the
termination date.

6.10     GOVERNING LAW/CONSTRUCTION/SEVERABILITY.

         6.10.1 CHOICE OF LAW. This Plan, the Awards, all documents evidencing
Awards and all other related documents will be governed by, and construed in
accordance with the laws of the state of New York.

                                                                           91
<PAGE>   17

         6.10.2 SEVERABILITY. If a court of competent jurisdiction holds any
provision invalid and unenforceable, the remaining provisions of this Plan will
continue in effect.

         6.10.3   PLAN CONSTRUCTION.

         (a)      RULE 16b-3. It is the intent of the Corporation that the
                  Awards hereunder satisfy and be interpreted in a manner that,
                  in the case of Participants who are or may be subject to
                  Section 16 of the Exchange Act, satisfies the applicable
                  requirements of Rule 16b-3 so that such persons (unless they
                  otherwise agree) will be entitled to the benefits of Rule
                  16b-3 or other exemptive rules under Section 16 of the
                  Exchange Act in respect of those transactions and will not be
                  subjected to avoidable liability thereunder. If any provision
                  of this Plan or of any Award would otherwise frustrate or
                  conflict with the intent expressed above, that provision to
                  the extent possible will be interpreted as to avoid such
                  conflict. If the conflict remains irreconcilable, the
                  Committee may disregard the provision if it concludes that to
                  do so furthers the interest of the Corporation and is
                  consistent with the purposes of this Plan as to such persons
                  in the circumstances.

         (b)      SECTION 162(m). It is the further intent of the Company that
                  Options or SARs with an exercise or base price not less than
                  Fair Market Value on the date of grant and performance awards
                  under Section 5.2 of this Plan that are granted to or held by
                  a person subject to Section 162(m) of the Code will qualify as
                  performance-based compensation under Section 162(m) of the
                  Code, and this Plan will be interpreted consistent with such
                  intent.

6.11   CAPTIONS. Captions and headings are given to the sections and subsections
of this Plan solely as a convenience to facilitate reference. Such headings
will not be deemed in any way material or relevant to the construction or
interpretation of this Plan or any provision thereof.

6.12   EFFECT OF CHANGE OF SUBSIDIARY STATUS. For purposes of this Plan and any
award hereunder, if an entity ceases to be a subsidiary a termination of
employment and service will be deemed to have occurred with respect to each
eligible person in respect of such subsidiary who does not continue as an
eligible person in respect of another entity within the company.

6.13   NON-EXCLUSIVITY OF PLAN. Nothing in this Plan will limit or be deemed to
limit the authority of the Board or the Committee to grant awards or authorize
any other compensation, with or without reference to the Common Stock, under
any other plan or authority.

                                                                             92

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00023-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00023-of-00352.parquet"}]]