Document:

Exhibit 4.3

                       RESTRICTED STOCK PURCHASE AGREEMENT

         This Restricted Stock Purchase Agreement (the "Agreement") is made as
of this 30th day of July, 2001, by and between WOW ENTERTAINMENT, INC., a
Delaware corporation with its principal place of business at Bank One Tower, 111
Monument Circle, Suite 4600, Indianapolis, Indiana 46204 (the "Company"), and
ANTHONY W. SUTTON, whose address is 7146 Tuliptree Trail, Indianapolis, Indiana
46256 (the "Employee").

         WHEREAS, the following facts are true:

         1. The Employee has this date executed an employment agreement (the
"Employment Agreement") with CornerStone Wireless Services Incorporated, an
Indiana corporation, which is a wholly-owned subsidiary of the Company
(hereinafter "CornerStone"). A copy of the Employment Agreement is attached
hereto and made a part hereof by reference as Exhibit A.

         2. In connection with the Employee's employment by CornerStone, the
Company has agreed to issue and sell to Employee a total of 2,000,000 shares of
its voting common stock (the "Common Stock"), par value $.01 per share, subject
to the terms and conditions of this Agreement.

         NOW, THEREFORE, in consideration of the promises and the mutual
covenants of the parties contained herein, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
Company and the Employee hereby agree as follows:

         1. Purchase and Sale of Shares. The Company hereby issues and sells to
the Employee, and the Employee hereby purchases from the Company, 2,000,000
shares of Common Stock of the Company (hereinafter the "Shares") for the
aggregate purchase price of $300,000 (for a purchase price per Share of $.15)
(the aggregate purchase price for the Shares sometimes referred to as the
"Purchase Price" and the Purchase Price per Share sometimes referred to as the
"Per Share Purchase Price"). Employee has paid the Purchase Price for the Shares
in the manner described in Section 2 below. The parties acknowledge that the
market value of each Share as of the date of execution of this Agreement is
$.15.

         As of the date hereof, all Shares are Unvested Shares as defined below
in this Section 1. Except if and to the extent such Shares become Vested Shares
as defined below in this Section 1, the Shares shall be unvested and shall be
subject to the terms and conditions of this Agreement applicable to Unvested
Shares, including without limitation restrictions on transfer and obligations of
the Company to repurchase such Unvested Shares in certain events. (Any Shares
which are at any time vested under the terms of this Agreement are sometimes
referred to herein as "Vested Shares."

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Any Shares that are not vested at any time in accordance with this Agreement are
sometimes referred to herein as "Unvested Shares.") Company has this date issued
one or more certificates for the Shares registered in the name of the Employee
with a restrictive legend on each such certificate as described in Section 8 of
this Agreement.

         2. Payment for Shares; Security for Note. Employee has paid the
Purchase Price to the Company by executing and delivering to the Company on the
date hereof a Recourse Promissory Note for the amount of the Purchase Price (the
"Note"), a copy of which is attached hereto and made a part hereof by reference
as Exhibit B. To secure the performance of his obligations under the Note, the
Employee has also executed and delivered to the Company on the date hereof a
Stock Pledge Agreement (the "Pledge Agreement"), a copy of which is attached
hereto and made a part hereof by reference as Exhibit C. Under the terms of the
Pledge Agreement, the Employee has pledged the Shares and certain other
collateral in respect of the Shares to the Company as security for the
performance of the obligations of the Employee under the Note. Employee
represents to the Company that he is acquiring the Shares for the purpose of
investment and not with a view to the distribution or sale thereof.

         3. Restrictions on Unvested Shares. So long as Shares shall remain
Unvested Shares, such Shares may not be sold, assigned, transferred, pledged or
otherwise encumbered by the Employee or any successor or assignee thereof,
whether voluntarily or by operation of law, and such Unvested Shares shall be
subject to repurchase by the Company in accordance with Section 6 below.

         4. Vesting of Shares. Subject to the provisions of this Agreement, the
Unvested Shares shall become Vested Shares in accordance with the following
vesting schedule when, as, and if CornerStone shall achieve one or more of the
following cumulative financial results on or before October 31, 2006
(hereinafter the "Expiration Date"):

     Number of Shares                   Vesting Date
         Vested                         ------------
         ------

     500,000 Shares                     30 days after the end of the first
                                        calendar quarter as of which Cumulative
                                        EBITDA shall equal or exceed $0.

     An Additional 500,000 Shares       30 days after the end of the first
                                        calendar quarter as of which Cumulative
                                        EBITDA shall equal or exceed $500,000.

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     An Additional 500,000 Shares       30 days after the end of the first
                                        calendar quarter as of which Cumulative
                                        EBITDA shall equal or exceed $1,000,000.

     An Additional 500,000 Shares       30 days after the end of the first
                                        calendar quarter as of which Cumulative
                                        EBITDA shall equal or exceed $2,000,000.

Any vesting date provided above may be extended by the Company to the date as of
which an unaudited statement of operations for the applicable calendar quarter
is completed, and the Company shall use commercially reasonable efforts to
complete such unaudited statement of operations as soon as practicable after the
end of the calendar quarter.

Vesting of Shares as provided above shall expire on the Expiration Date, or such
earlier date as provided in Section 5 below.

         For purposes of this Agreement, "EBITDA" for any one or more period(s)
shall mean earnings before interest, taxes, depreciation and amortization of
CornerStone for such period(s), expressed as a positive or negative number, as
determined by the Company in accordance with generally accepted accounting
principles. "Cumulative EBITDA" as of any calendar quarter shall mean the sum of
EBITDA for each complete fiscal year of CornerStone prior to the fiscal year in
which such calendar quarter occurs, and EBITDA for the current fiscal year to
and including such calendar quarter. (The fiscal year of the Company and
CornerStone extends from September 1 of a calendar year to and including August
31 of the next succeeding calendar year, except that the initial fiscal year of
CornerStone shall commence on July ____, 2001, and extend to and including
August 31, 2001.) The determination of EBITDA for any fiscal year of CornerStone
shall be made by the Company in accordance with the audited statement of
operations of CornerStone for such fiscal year, or if there is no such audited
statement of operations of CornerStone for such fiscal year, in accordance with
the unaudited statement of operations of CornerStone for such fiscal year. The
determination of EBITDA for any period other than a fiscal year shall be made by
the Company in accordance with the unaudited statements of operations of
CornerStone for calendar quarters included within such period. For purposes of
this Agreement, a calendar quarter shall mean a period of three (3) calendar
months ending on February 28 (or February 29 if applicable), May 31, August 31,
or November 30, as applicable. Any determinations of EBITDA by the Company for
any period(s) shall be conclusive, and shall be final and binding on the
parties.

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  The Company shall notify the Employee promptly when any Shares become Vested
Shares, and shall promptly issue one or more certificates for such Vested Shares
to the Employee as provided in Section 8 below.

         5. Termination of Vesting in Certain Events. Notwithstanding the
provisions of Section 4, vesting of Shares in accordance with Section 4 shall
expire prior to the Expiration Date on the earlier to occur of the following:

                  (a)      A Change of Control of CornerStone;

                  (b)      Termination by CornerStone or the Employee of the
                           employment of the Employee with CornerStone for any
                           reason or for no reason, including the death or
                           permanent disability of Employee, as determined by
                           the Company.

                  Notwithstanding the foregoing, in the event of a "Company
Termination Without Cause" or an "Employee Termination for Cause" under the
terms of the Employment Agreement, the expiration of vesting shall occur on the
earliest to occur of (i) a Change of Control of CornerStone; (ii) one (1) year
subsequent to the termination of the employment of Employee incident to such
Company Termination Without Cause or Employee Termination for Cause, as
applicable; or (iii) the Expiration Date.

                  In the event that vesting shall expire under this Section due
to a Change of Control of CornerStone, the number of Vested Shares to which the
Employee shall be entitled as of the date on which the Change of Control shall
become effective shall be the number of Vested Shares to which the Employee
shall otherwise be entitled under Section 4 of this Agreement as of the
effective date of the Change of Control of CornerStone.

                  For purposes of this Agreement, a Change of Control of
CornerStone shall be deemed to have occurred in either of the following events,
except where an acquirer of any beneficial ownership of CornerStone or its
assets otherwise described in subsections (x) and (y) below shall assume in
writing the Company's obligations under this Agreement:

                  (x) Acquisition by any individual, entity, or group (an
         "Entity"), including any "persons" within the meaning of Section
         13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934 (the
         "Exchange Act"), of beneficial ownership (within the meaning of Rule
         13d-3 promulgated under the Exchange Act) of greater than fifty percent
         (50%) of either (i) the then outstanding shares of Common Stock of
         CornerStone or (ii) the combined voting power of the then outstanding
         securities of CornerStone entitled to vote generally in the election of
         directors; excluding, however, any acquisitions of any such interests
         by the Company or any one or more of John F. Fisbeck, Carter M.
         Fortune, or any affiliates of John F. Fisbeck or Carter M. Fortune, as
         such term is defined in the Exchange Act (hereinafter "Affiliates"); or

<PAGE>

              (y) Acquisition by any Entity, as defined in (a) above, of all or
         substantially all of the operating assets of CornerStone; excluding
         however any such acquisition by the Company or any one or more of John
         F. Fisbeck, Carter M. Fortune, or any Affiliates thereof.

         On the earlier of the Expiration Date or a date eighteen (18) months
after Shares become Vested Shares under this Agreement, Employee shall prepay a
portion of the outstanding principal balance of the Note equal to the number of
such Vested Shares times the Per Share Purchase Price, together with the accrued
interest allocable to such prepaid principal amount prorated on a daily basis to
the date of such payment.

         6. Repurchase of Unvested Shares by the Company. Upon the expiration of
vesting under Sections 4 or 5 above, as applicable, Employee, or his personal
representative, shall sell, and the Company shall purchase, all Unvested Shares
at a price per Share equal to the lesser of the Per Share Purchase Price or the
fair market value per Share of the Unvested Shares as of such date, as
determined by the Company. Such sale and purchase shall take place at the
principal office of the Company within thirty (30) days subsequent to the
effective date of expiration of vesting under this Agreement; provided, however,
that if the Company is prohibited from repurchasing Unvested Shares pursuant to
Section 160 of the Delaware General Corporation Law as amended from time to time
(or any successor provision) then the time period within which such closing
shall occur shall be extended until twenty (20) days after the Company is first
not so prohibited. At such closing, the Employee or his personal representative
shall transfer all such Unvested Shares to the Company. Any amounts payable to
the Employee for the Unvested Shares shall first be applied to pay or prepay, as
applicable, the unpaid balance of the Note, with any such amounts applied first
to attorneys' fees and costs (if any), then to accrued interest under the Note,
and then to the principal balance of the Note. The balance of the purchase
price, if any, due by the Company in connection with a repurchase of Unvested
Shares under this Section shall then be paid to the Employee or his personal
representative by wire transfer to one or more accounts designated by Employee
or his personal representative. The balance of the Note, if any, due by the
Employee subsequent to the repurchase of Unvested Shares shall be paid by
Employee to the Company at closing by wire transfer to one or more accounts
designated by the Company.

                  Employee has this date executed and delivered to the Company a
stock power in blank with respect to the Shares, and hereby further authorizes
the Company and its authorized officers to execute on his behalf any and all
documents and to perform on his behalf any and all other actions which may be
required in connection with the transactions described in this Section 6.

         7. Effect of Vesting. Subject to the provisions of this Section, the
Employee may own and dispose of Vested Shares without restriction. However, any
Vested Shares shall remain subject to the restrictions under the Pledge
Agreement until and unless Employee shall pay or prepay the portion of the Note
allocable to such Vested Shares in accordance with Section 5 above. In addition,
any transfer or assignment of the Vested

<PAGE>

Shares shall remain subject to the provisions of the Securities Act of 1933, as
amended (the "Securities Act"), and any rules and regulations thereunder, and of
any applicable state securities laws. Without limitation of the above, Employee
represents that any sales of Shares at a time when Employee may be deemed an
"affiliate" of the Company for purposes of the Securities Act shall be made in
accordance with the requirements of Rule 144 under the Securities Act (or any
successor rule) applicable to sales of Shares registered under the Securities
Act by an "affiliate" or in a transaction otherwise exempt from the registration
requirements of the Securities Act and as to which the Company shall have
received an opinion of counsel satisfactory to it confirming such exemption.

         8. Certificates for Shares. The Company shall issue one or more
certificates with respect to the Unvested Shares in the name of Employee and
shall hold such certificates on deposit for the account of the Employee until
and except to the extent that such Unvested Shares shall become Vested Shares.
Each such certificate for the Unvested Shares shall bear the following legend:

                  The Shares represented by this Certificate are subject to
                  restrictions set forth in a certain Restricted Stock Purchase
                  Agreement dated July 30, 2001, entered into by and between WOW
                  Entertainment, Inc. and Anthony W. Sutton, a copy of which
                  Agreement is available for inspection at the offices of the
                  Company or will be made available upon request.

                  Upon vesting of Shares in accordance with this Agreement, the
Company shall exchange the previously issued certificates in respect of the
Unvested Shares which have become vested for a new certificate or certificates
in respect of the Vested Shares that shall not bear the legend described above
in this Section applicable to Unvested Shares. Notwithstanding any other
provisions of this Section 8, however, any certificates for Shares shall at the
option of the Company bear a legend satisfactory to the Company relating to
compliance with requirements under the Securities Act and other applicable
federal and state securities laws, and shall at the option of the Company also
bear a legend satisfactory to the Company relating to any applicable
restrictions under the Pledge Agreement.

         9. Voting; Cash Dividends. Except as otherwise provided in this
Agreement or under the Pledge Agreement, the Employee, as owner of Shares
(including but not limited to Unvested Shares) shall have all the rights of a
shareholder of the Company, including but not limited to the right to receive
all cash dividends paid with respect to the Shares and the right to vote the
Shares.

         10. Adjustments for Changes in Capitalization of the Company and
Distributions with Respect to Shares. In event of any change in the outstanding
shares of common stock of the Company subsequent to the date hereof by reason of
any reorganization, recapitalization, stock split, reverse stock split, stock
dividend, combination or exchange of shares, merger, consolidation, or any
change in the corporate structure of the Company or in the shares of Common
Stock, the number and class of Shares covered by this Agreement shall be
appropriately adjusted by the Company to reflect any such change, or the
securities

<PAGE>

issued in any such transaction, the determination by the Company of which shall
be conclusive. If the Company shall pay a stock dividend or declare a stock
split or reverse stock split, or otherwise distribute securities of the Company
to the holders of its Common Stock, the number of shares of stock or other
securities of the Company issued with respect to the Shares then subject to the
restrictions contained in this Agreement shall be added to (or, if applicable,
substituted for) the Shares subject to this Agreement. If the Company shall
distribute to its shareholders securities of another corporation, the securities
of such other corporation shall be deemed as part of the Shares with respect to
which they are distributed for purposes of this Agreement.

         11. No Assurance of Employment. Nothing in this Agreement shall be
deemed to create any obligation of the Employee to continue in the service of
CornerStone or the Company, or any obligation of CornerStone or the Company to
continue the employment of Employee.

         12. Tax Liabilities of Employee. Upon vesting of Shares (or at such
earlier time as an election is made by the Employee under Section 83(b) of the
Internal Revenue Code of 1986, as amended, or any successor provision thereto,
to include the value of the Shares in taxable income), the Company and
CornerStone shall have the right to require the Employee or other person
receiving the Shares to pay the Company or CornerStone the amount of any taxes
which it is required to withhold with respect to the Shares or, in lieu thereof,
to retain, or sell without notice, a sufficient number of the Shares to cover
the amount required to be withheld. The Company and CornerStone shall have the
right to deduct from all dividends paid on the Shares the amount of any taxes
which the Company or CornerStone or any Affiliate is required to withhold with
respect to such dividend payments.

         13. Notices. Any notices provided for in this Agreement shall be given
in writing and shall be deemed served when delivered personally to the person or
entity for whom intended or two (2) days after deposit in the United States
Mail, Certified Mail, Return Receipt Requested, addressed to the person or
entity for whom intended. The address of the Company shall be its principal
place of business, and the address for the Employee shall be the address first
indicated above or the last known address of the Employee in the records of
CornerStone. Either party may change his or its address for the purpose of
notice hereunder by written notice to the other party in the manner provided in
this Section.

         14. Assignment. The Company may assign in whole or in part to any
person or entity any of its rights or obligations under this Agreement. The
Employee may not assign to any person or entity any of his rights or obligations
hereunder.

         15. Successors and Assigns. This Agreement shall inure to the benefit
of the Company, its successors and assigns, and shall be binding upon the
Employee, his administrator, executor, personal representative, successors,
heirs, and permitted assigns.

         16. Entire Agreement; Waivers. This Agreement constitutes the entire
agreement of the parties regarding the subject matter hereof. No amendment or

<PAGE>

modification of this Agreement shall be valid unless it is in writing and signed
by the Company and the Employee. Any waiver by one party of a breach of any
provision of this Agreement shall not operate or be construed as a waiver of any
subsequent breach of the same or any other provision by the other party.

         17. Severability. The invalidity of any provision of the Agreement
shall not in any way affect the validity of any other provisions hereof, and
each and every provision of this Agreement shall be enforceable regardless of
the invalidity, if any, of any other provision hereof.

         18. Prevailing Party. In any suit or proceeding brought or instituted
by any party to this Agreement to enforce or interpret any of the provisions of
this Agreement or on account of any damages or loss sustained by such party by
reason of breach or violation by the other party of any of the terms or
provisions of this Agreement, the prevailing party will be entitled to recover
all expenses and costs incurred, including reasonable attorneys' fees and costs,
including expenses, fees and costs incurred in connection with any appeal and/or
collection efforts.

         19. Governing Law. This Agreement shall be construed in accordance
with the laws of the State of Indiana, without regard to conflict of laws
issues.

         20. Actions of Company. All acts and determinations of the Company
under this Agreement shall be subject to prior approval of the Board of
Directors of the Company and shall be implemented by one or more of the
directors, employees or agents of the Company other than Employee, and Employee
may not take any action or make any determination on behalf of the Company under
this Agreement.

         21. Counterparts; Facsimile Signatures. This Agreement may be executed
in two or more counterparts, each of which shall be deemed an original, but all
of which together shall constitute one and the same instrument. Delivery by a
party of executed counterparts of this Agreement by facsimile shall constitute
execution and delivery of such counterpart by such party to the same extent as
if such counterpart were originally executed and delivered by such party.

         IN WITNESS WHEREOF, this Agreement has been executed as of the date
first above written.

                                       WOW ENTERTAINMENT, INC.

                                       By: /s/ Douglas E. May
                                           ------------------------------------
                                       Its: CFO, VP Finance, Corp. Sec.
                                            -----------------------------------

                                                       "Company"

                                       /s/ Anthony W. Sutton
                                       ---------------------------------------
                                       ANTHONY W. SUTTON

                                                        "Employee"

<PAGE>

                                    Exhibit A

                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT ("Agreement"), made this 30th day of July,
2001, by and between CORNERSTONE WIRELESS SERVICES INCORPORATED, an Indiana
corporation (the "Company") and ANTHONY W. SUTTON ("Employee").

         WHEREAS, the following facts are true:

         1. The Company is engaged in the business of providing design services
(including architectural and engineering services) in connection with the
development and expansion of wireless transmission towers and other facilities
for the wireless telecommunications industry within the United States. The
Company is a wholly-owed subsidiary of WOW Entertainment, Inc., a Delaware
corporation ("WOW Entertainment").

         2. Company wishes to employ Employee, and Employee wishes to accept
employment with the Company, on the terms and conditions contained herein;

         NOW, THEREFORE, in consideration of the mutual promises and covenants
hereinafter contained, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

         1. Employment. Employee shall serve as Vice President of Sales of the
Company, or in such other capacities as the Board of Directors of the Company
may determine from time to time, subject to the terms and conditions hereinafter
set forth. Employee agrees that he will perform the duties assigned to him by
the Board of Directors of the Company, as set forth on Exhibit A hereto, on a
full-time basis and at the direction of the Board of Directors and the President
and Chief Executive Officer of the Company. Employee will render to the Board of
Directors and the President and Chief Executive Officer of the Company, upon
their reasonable request, reports and accountings of the status and progress of
any work he is performing. Employee shall be required to do such traveling as
may reasonably be necessary to perform his duties and responsibilities
hereunder, but Employee shall be based at the Company's office in Indianapolis,
Indiana, unless he otherwise agrees.

         2. Term. The initial term (the "Initial Term") of this Agreement shall
begin on the date hereof and shall expire on the third (3rd) anniversary of the
date hereof. At the end of the Initial Term or any Renewal Term (as defined
below), this Agreement automatically shall renew for a maximum of three (3)
successive one (1) year periods (each a "Renewal Term") unless either the
Employee or Company shall elect to terminate this Agreement in writing no later
than sixty (60) days prior to the end of the Initial Term or a Renewal Term, as
the case may be.

<PAGE>

         3. Compensation.

                  (a) Base Salary. For services rendered by Employee under this
Agreement during the Initial Term hereof, Employee shall be entitled to receive
a base annual salary in the amount of One Hundred Twenty-Five Thousand Dollars
($125,000.00), payable in accordance with the Company's customary payroll
procedures ("Base Salary"). For any Renewal Terms, the amount of base annual
salary to be received by Employee shall be as agreed by Employee and the
Company, but shall be at least equal to the Base Salary.

                  (b) Operating Bonuses. In addition to the Base Salary as
provided above, Employee shall also be entitled to receive a bonus for each
fiscal year of the Company (currently September 1 of a calendar year to and
including August 31 of the succeeding year) (a "Fiscal Year") during the Initial
Term and any Renewal Terms of this Agreement, if any, in which EBITDA of the
Company (expressed as a positive or negative number) shall be greater than zero
(0). The bonus, if any, payable to Employee for each such Fiscal Year shall
equal two percent (2%) of the positive EBITDA of the Company for such Fiscal
Year. However, subsequent to the calendar quarter in which Cumulative EBITDA of
the Company shall first equal or exceed Five Million Dollars ($5,000,000), the
bonus, if any, payable to Employee with respect to periods thereafter (including
a portion of any Fiscal Year) shall equal one percent (1%) of the positive
EBITDA of the Company for such periods. For purposes of this Agreement, the
first Fiscal Year under this Agreement (the "Initial Fiscal Year") shall be
deemed to extend from the date of execution of this Agreement to and including
August 31, 2002.

                  The bonus payable to Employee for any Fiscal Year shall be
paid to Employee on or before a date sixty (60) days subsequent to the end of
such Fiscal Year.

                  For purposes of this Agreement, "EBITDA" for each Fiscal Year
shall mean earnings before interest, taxes, depreciation, and amortization of
the Company for such Fiscal Year, expressed as a positive or negative number, as
determined by the Company in accordance with generally accepted accounting
principles. Such determination shall be based on the audited statement of
operations of the Company applicable for the Fiscal Year (or if there is no
audited statement of operations of the Company for such Fiscal Year, then based
on the unaudited statement of operations of the Company for such Fiscal Year),
and the determination by the Company of EBITDA for each Fiscal Year shall be
conclusive, and shall be final and binding on the parties. For purposes of this
Agreement, Cumulative EBITDA as of the end of any Fiscal Year shall mean the sum
of EBITDA for such Fiscal Year and for each prior Fiscal Year. The determination
of Cumulative EBITDA shall be made by the Company, and its determination shall
be final and binding on the parties. For purposes of this Agreement, a calendar
quarter shall mean a period of three (3) calendar months ending February 28 (or
February 29, as applicable), May 31, August 31, or November 30, as applicable.
Any determination of EBITDA by the Company for any such periods shall be
conclusive, and shall be final and binding on the parties.

                  (c) Restricted Stock Purchase Agreement. WOW Entertainment and
the Employee have executed this date a Restricted Stock Purchase Agreement, in
the form

<PAGE>

attached hereto and made a part hereof by reference as Exhibit B, with respect
to two million (2,000,000) shares of common stock of WOW Entertainment issued to
Employee. Employee's entitlement to benefits under such Restricted Stock
Purchase Agreement shall be determined solely under the terms of such Restricted
Stock Purchase Agreement.

                  (d) Special Bonus In the Event of Change of Control
Transaction. In the event of a Change of Control Transaction, Employee shall be
entitled to a special change of control bonus in an amount equal to five percent
(5%) of the excess of the total consideration payable by the acquiring person or
entity (the "Acquirer") in connection with the Change of Control Transaction,
net of transaction expenses, over the amount of the total investment by WOW
Entertainment in the Company as of the effective date of such Change of Control
Transaction. Such total investment shall include all equity of WOW Entertainment
in the Company at the effective date of such Change of Control Transaction,
together with all indebtedness and intercompany accounts payable of the Company
to WOW Entertainment as of the effective date of such Change of Control
Transaction. The determination of such bonus shall be made by the Company, and
shall be conclusive, final, and binding on the parties. Any such bonus shall be
paid within thirty (30) days subsequent to the closing of such Change of Control
Transaction.

                  For purposes of this Agreement, a "Change of Control
Transaction" shall mean one of the following:

                    (i)  Acquisition by any individual, entity, or group (an
                         "Entity"), including any "persons" within the meaning
                         of Section 13(d)(3) or 14(d)(2) of the Securities
                         Exchange Act of 1934 (the "Exchange Act"), of
                         beneficial ownership (within the meaning of Rule
                         13(d)-3 promulgated under the Exchange Act) of greater
                         than fifty percent (50%) of either (A) the then
                         outstanding shares of common stock of the Company or
                         (B) the combined voting power of the then outstanding
                         securities of the Company entitled to vote generally in
                         the election of directors; excluding, however, any
                         acquisitions of any interest by the Company or WOW
                         Entertainment or any one or more of John F. Fisbeck,
                         Carter M. Fortune, or any Affiliates of John F. Fisbeck
                         or Carter M. Fortune, as such term is defined in the
                         Exchange Act (hereinafter "Affiliates"); or

                    (ii) Acquisition by any Entity, as defined in (i) above, of
                         all or substantially all of the operating assets of the
                         Company; excluding, however, any such acquisition by
                         the Company or WOW Entertainment or any one or more of
                         John F. Fisbeck, Carter M. Fortune, or any Affiliates
                         thereof.

                  (e) Termination of Entitlement to Bonus. The eligibility of
Employee for any bonus payable under Sections 3(b) or 3(d) above shall terminate
immediately in the

<PAGE>

event of a termination by either the Company or the Employee of Employee's
employment with the Company for any reason, or for no reason, including the
death or permanent disability of the Employee, as determined by the Company.

                  Notwithstanding the foregoing, in the event that the
employment of Employee shall be terminated due to a Company Termination Without
Cause pursuant to this Agreement or by Employee due to an Employee Termination
for Cause pursuant to this Agreement, Employee shall remain entitled to bonuses
in accordance with Section 3(b) and Section 3(d) as follows:

                    (i)  Employee shall remain entitled to bonus under Section
                         3(b) for the Fiscal Year within which the Company
                         Termination Without Cause or Employee Termination for
                         Cause shall occur as if such employment continued to
                         and including a date twelve (12) months subsequent to
                         the effective date of the Company Termination Without
                         Cause or Employee Termination for Cause. The bonus, if
                         any, under Section 3(b) for the Fiscal Year in which
                         the Company Termination Without Cause or Employee
                         Termination for Cause become effective shall be
                         computed and paid for such Fiscal Year as provided in
                         Section 3(b). The bonus under Section 3(b) for the
                         portion of such twelve (12) month period extending
                         beyond the end of such Fiscal Year shall be equal to
                         the product of the bonus which would otherwise be
                         payable to Employee for the next succeeding Fiscal Year
                         if he were employed, determined as provided under
                         Section 3(b) above, times a fraction, the numerator of
                         which is the number of days from the end of the Fiscal
                         Year in which the Company Termination Without Cause or
                         Employee Termination for Cause becomes effective to and
                         including the expiration of the twelve (12) month
                         period subsequent to the effective date of the Company
                         Termination Without Cause or Employee Termination for
                         Cause, and the denominator of which is 365. The bonus,
                         if any, described under this Section 3(e)(i) shall be
                         determined by the Company, and its determination shall
                         be final and binding on the parties. Any bonus
                         allocable to the Fiscal Year next succeeding the Fiscal
                         Year in which the Company Termination Without Cause or
                         Employee Termination for Cause becomes effective shall
                         be paid to Employee on or before a date sixty (60) days
                         subsequent to the end of such next succeeding Fiscal
                         Year.

                    (ii) Employee shall remain entitled to any bonus payable
                         under Section 3(d) with respect to any Change of
                         Control Transaction which closes within a period of six
                         (6) months subsequent to the Company Termination
                         Without Cause or the Employee Termination With Cause,
                         as applicable.

<PAGE>

                  (f) Tax Withholding. Any and all compensation, including
bonuses, paid by the Company to Employee pursuant to this Section 3 shall be
paid to Employee after deduction or withholding of applicable federal, state,
and local taxes and contributions.

         4. Benefits; Expenses. Subject to Employee's compliance with applicable
eligibility and underwriting standards, Employee shall be entitled to such
benefits, including but not limited to life and other insurance coverages,
medical insurance, vacation, and other fringe benefits, as may be provided by
WOW Entertainment or the Company from time to time to other key employees of WOW
Entertainment or the Company who exercise comparable management functions.
During the term of this Agreement, the Company, Company shall pay or reimburse
Employee for all reasonable travel and business expenses incurred or paid by
Employee in the performance of his duties hereunder which are incurred by
Employee, in accordance with policies and procedures of the Company in effect
from time to time.

         5. Confidential Information; Trade Secrets. Employee agrees that all
Confidential Information and Trade Secrets received or developed by Employee as
of the date hereof, or subsequently obtained by the Employee in his performance
of his duties for Company are confidential to and are and will remain the sole
and exclusive property of Company, and to the extent applicable, any such
information developed by Employee shall be deemed "works made for hire" under
the U.S. Copyright laws. To the extent that such Confidential Information or
Trade Secrets shall not constitute "works made for hire," Employee hereby
assigns and transfers to the Company all right, title, and interest in and to
such Confidential Information and Trade Secrets. For a period of five (5) years
following termination of this Agreement, Employee will hold such Confidential
Information in trust and strictest confidence, and will not use, reproduce,
distribute, disclose or otherwise disseminate the Confidential Information,
except to the extent necessary to perform the duties assigned to Employee by
Company. The confidentiality requirements and use restrictions contained in this
Section 5 shall survive for the period specified herein but shall not apply to
any information that becomes publicly available through no action of Employee.

                  For purposes of this Agreement, "Confidential Information"
means information owned by the Company and/or any business entity related to
Company and related directly to the business of Company or such business entity
related to Company, which (1) derives economic value, actual or potential, from
not being generally known to or readily ascertainable by proper means by other
persons who can obtain economic value from its disclosure or use; and (2) is the
subject of efforts that are reasonable under the circumstances to maintain its
secrecy. Confidential Information includes "Trade Secrets", which includes
information that meets the foregoing criteria and includes, without limitation,
technical and nontechnical data, formulas, patterns, compilations, programs,
devices, methods, techniques, drawings, processes, financial data, financial
plans, product plans, pricing information, marketing information and lists of
actual or potential acquisition

<PAGE>

candidates, potential sites for development and suppliers. Confidential
Information also includes information which has been disclosed to Company (or a
business entity related to Company) by a third party and which Company (or a
business entity related to Company) is obligated to treat as confidential.

                  All records, notes, files, memoranda, reports, marketing
information, price lists, supplier lists and information, documents, and all
copies thereof, equipment, and apparatus and like items relating directly to the
business of Company (and/or a business entity related to Company), Confidential
Information or Trade Secrets which shall be prepared by Employee in the
performance of his duties for Company or which shall be disclosed to or which
shall come into the possession of Employee through his performance of his duties
hereunder shall be and remain the sole and exclusive property of Company.
Employee agrees that, upon the termination of his employment with Company, or at
any other time upon request, he will promptly deliver to Company the originals
and all copies of any of the foregoing that are in his possession, custody or
control, and any other property belonging to Company (and/or a business entity
related to Company).

         6. Agreement Not to Compete - Competing Businesses. Employee hereby
acknowledges that Company is in the business of providing design services
(including without limitation architectural and engineering services) in
connection with the development and expansion of wireless transmission towers
and other facilities for the wireless telecommunications industry, and that the
Company may subsequently during the term of this Agreement engage in other lines
of business from time to time (any one or more of such businesses in which the
Company may engage during the term of this Agreement shall be referred to from
time to time as the "Company Business" and any one or more services provided by
the Company in connection with such businesses shall be referred to as
"Competing Services"). Employee covenants and agrees that during his employment
by the Company and for a period of two (2) years after the termination thereof
by either party for any reason or for no reason, he will not, within the
geographical area consisting of the states of Indiana and other states within
the United States in which the Company shall have engaged in the Company
Business at any time within a two (2) year period prior to the termination of
such employment, without the prior written consent of Company, for his own
account or jointly with another or others, directly or indirectly, for or on
behalf of any individual, partnership, corporation, limited liability company or
other legal entity, as principal, agent, independent contractor or otherwise,
own, engage in, conduct, control, operate, manage, be employed by, consult with,
or otherwise participate in, a business engaging directly or indirectly in the
same or substantially similar business as the Company Business or providing
Competing Services ("Competing Business").

         7.        Agreement Not to Compete - Customers; Employees.

                  (a) Employee covenants and agrees that during his employment
by Company and for a period of two (2) years following the termination by either
party, for any reason, or for no reason, of such employment, he will not,
without the prior written consent of Company, either directly or indirectly on
his own behalf or in the service or on behalf of others (i) provide or offer to
provide (or assist or manage others in providing) any

<PAGE>

Competing Services to any persons or entities who are or have been direct or
indirect customers or prospects of the Company in connection with the Company
Business at any time during any portion of the period of two (2) years
immediately preceding the termination of Employee's employment with Company or
(ii) interfere with any contractual arrangement or agreements between Company
(or an Affiliate of Company) and any other person or entity. Notwithstanding the
foregoing, Employee may subsequent to his employment by Company, without
violating the provisions of Section 7(a)(i) above, engage in providing services,
which would otherwise constitute Competing Services solely as a full-time (and
not temporary) employee of a company (for example, Voicestream, Verizon)
directly engaged in providing wireless telecommunications services to its direct
customers, provided that such services are provided exclusively to and for such
company.

                  (b) Employee covenants and agrees that for a period of two (2)
years following the termination, for any reason, of his employment with the
Company, he will not, either directly or indirectly, on his own behalf or in the
service of or on behalf of others, solicit, divert, or hire away to a Competing
Business, any person employed by Company (or any Affiliate thereof), or
otherwise induce or influence any person to discontinue employment with Company
(or any Affiliate thereof), whether such person is a full-time or temporary
employee of Company (or any Affiliate thereof) and whether such employment is
pursuant to a written agreement or such employment is for a predetermined period
or is at will.

         8.       Remedies.

                   (a) It is understood and agreed by and between Employee and
  Company that the provisions of Sections 5, 6, 7 and this Section 8 are
  essential elements of this Agreement and are necessary to protect Company's
  legitimate business interests. Employee acknowledges and agrees that, by
  virtue of the special knowledge of Company's (and/or its Affiliates') affairs,
  business, clients, customers, Confidential Information, Trade Secrets, and
  operations that he will have as a consequence of being employed by the Company
  pursuant hereto, and the special and unique management services to be rendered
  by him under this Agreement, irreparable loss and damage will be suffered by
  Company (or its Affiliates) if Employee should breach or violate any of the
  covenants and agreements contained in Sections 5, 6, and 7 which cannot be
  adequately compensated in an action at law (it being impossible to measure in
  money the damages that the Company (or its Affiliates) will suffer by reason
  of such breach or violation). Employee further acknowledges and agrees that
  each of such covenants and agreements is reasonable in duration, scope and
  effect on Employee, is not unduly restrictive of Employee's rights as an
  individual and is reasonably necessary to protect and preserve the Company
  Business and is a material inducement to Company to enter into this Agreement
  and to pay Employee the compensation set forth herein and in the Restricted
  Stock Purchase Agreement. Employee, therefore, agrees and consents that, in
  addition to any other remedies available to it, Company shall be entitled to
  specific performance, injunctive, and other equitable relief (without being
  required to post any bond or other security) to prevent or restrain a breach
  or contemplated breach by Employee of any of the covenants or agreements
  contained in Sections 5, 6 and 7. If a court should hold that the duration
  and/or scope (geographic or

<PAGE>

  otherwise) of the covenants and/or agreements contained in Sections 5, 6
  and 7 hereof are unreasonable, then, to the extent permitted by law, the
  court may prescribe a duration and/or scope (geographic or otherwise) that
  is reasonable and the parties agree to accept such determination, subject
  to their rights of appeal. In addition, Company shall be entitled to
  terminate this Agreement or suspend the payment of any and all compensation
  (including but not limited to bonuses) to which Employee may be otherwise
  entitled hereunder during the period in which Employee is in breach of or
  has violated any of the covenants and agreements contained in Sections 5,
  6, and 7 hereof. Nothing herein shall be construed as prohibiting the
  Company from pursuing any other remedies available to it for such breach or
  threatened breach, including recovery of damages from Employee.
  Notwithstanding anything in this Agreement which could be interpreted to
  the contrary, the rights of the Company (or its Affiliates) under this
  Agreement to protect its Confidential Information, business records, and
  other proprietary interests are in addition to, and not in lieu of, all
  other rights Company (or its Affiliates) may have at law or in equity to
  protect its Confidential Information, business records, and other
  proprietary interests.

                  (b) The existence of any claim, demand, action or cause of
action of Employee against Company, whether predicated upon this Agreement or
otherwise, shall not constitute a defense to the enforcement by Company of any
of the covenants contained in Sections 5, 6, and 7 hereof.

                  (c) Nothing contained in this Agreement shall limit, abridge
or modify the rights of the parties under applicable laws relating to the
protection of intellectual property, including but not limited to patents,
trademarks, copyrights, and trade secrets.

                  (d) If Employee shall be in violation of any of the covenants
and agreements set forth in Sections 5, 6 and 7 hereof, then the time limitation
thereof shall be extended for a period of time equal to the period of time
during which such breach or breaches occur. If (i) Company seeks injunctive
relief from such breach in any court, and (ii) if Company is ultimately
successful in proving such breach and is granted such injunctive relief, or if a
settlement is reached between Company and Employee which settlement provides
Company a remedy or remedies substantially the same as the injunctive relief
sought by Company, then such covenants and agreements shall be extended for a
period of time equal to the pendency of such injunction and/or settlement
proceedings, including all appeals.

         9.       Termination.

                  (a) This Agreement may be terminated immediately by Company
for "cause" upon notice of termination served personally or in accordance with
Section 14 hereof, such "cause" being specified in the notice. As used herein,
"cause" shall mean fraud, dishonesty, gross negligence, willful misconduct or an
act of moral turpitude, or engaging in activities prohibited by Sections 5, 6,
or 7 hereof or any other material breach of this Agreement, provided such other
material breach is not substantially cured by Employee within thirty (30) days
of the receipt of notice of such breach from Company. "Cause" shall also include
the death of Employee and any other failure of Employee for any reason to

<PAGE>

perform the essential duties of his position for a period of sixty (60) days or
more. In addition to the above, any termination by the Company under this
Agreement for any reason or for no reason (including but not limited to any
termination otherwise described in Section 2 or Section 9(c)) shall be deemed to
be a termination for "cause" if, at the effective date of such termination, the
total investment of WOW Entertainment in the Company, including all equity of
WOW Entertainment in the Company together with all indebtedness and
inter-company accounts payable of the Company to WOW Entertainment as of such
date but excluding any such investments made by WOW Entertainment in the Company
on or before such date for the purpose of acquiring other business entities or
operations or establishing new branches, shall exceed $400,000. All such
determinations of the total investment of WOW Entertainment in the Company from
time to time shall be made by the Company, and its determinations shall be final
and binding on the parties. Any termination of the employment of Employee under
or described in this Section 9(a) shall be referred to herein as a "Company
Termination for Cause."

                  (b) This Agreement may be terminated by Employee in the event
of a material breach hereof by the Company, including but not limited to
nonpayment of any amounts hereunder, which is not substantially cured by the
Company within thirty (30) days of receipt of notice of such breach from
Employee. Termination of the employment under this Section 9(b) shall be
referred to herein as an "Employee Termination for Cause."

                  (c) Without limitation of the above, either the Company or the
Employee may terminate this Agreement for any other reason or for no reason upon
the expiration of sixty (60) days after written notice thereof to the other
party. Except as provided under Section 9(a) above, termination by the Company
under this Section 9(c) or under Section 2 shall be referred to herein as a
"Company Termination Without Cause." A termination by the Employee under this
Section 9(c) or under Section 2 shall be referred to herein as an "Employee
Termination Without Cause."

                  (d) In the event of any termination of the employment of
Employee, Employee shall be entitled to receive Base Salary to and including the
effective date of such termination; provided, however, that in the event of an
Employee Termination for Cause or a Company Termination Without Cause, if and
only if at the effective date of such Employee Termination for Cause or a
Company Termination Without Cause the Company shall have Cumulative EBITDA in
excess of 0, Employee shall be entitled to payment of Base Salary for a period
extending for six (6) months subsequent to the effective date of any such
termination and to payment of bonuses in accordance with Section 3(e). For
purposes of this Section 9(d), Cumulative EBITDA shall have the same meaning as
provided in and shall be determined by the Company in accordance with Section
3(b), except that Cumulative EBITDA shall also include EBITDA (expressed as a
positive or negative number) for the period subsequent to the end of the prior
Fiscal Year, if any, to the end of the calendar month immediately prior to the
Employee Termination for Cause or Company Termination Without Cause, as
determined by the Company. Such determination of the Company shall be final and
binding on the parties. Employee shall have no remedies against the Company and
WOW Entertainment with respect to a termination of employment, except as
specifically provided in this Agreement.

<PAGE>

         10. Successors and Assigns. This Agreement may not be assigned by
Employee. This Agreement may be assigned by the Company and shall be binding
upon the successors and assigns of Company.

         11. Severability. In the event any provision of this Agreement shall be
held void and unenforceable, the unaffected portion hereof shall remain in full
force and effect and this Agreement shall be deemed amended to excuse the
provisions held void and unenforceable and shall continue in full force and
effect, as amended.

         12. Governing Law; Jurisdiction; Venue. The validity and construction
of this Agreement shall be governed by the laws of the State of Indiana, without
regard to conflicts of law principles. The parties agree that, with respect to
any legal action arising out of the transactions contemplated by this Agreement,
they consent to personal and subject matter jurisdiction in the United States
federal courts or state courts located in Indiana, and that venue shall be had
solely in such courts.

         13. Prevailing Party. In any suit or proceeding brought or instituted
by any party to this Agreement to enforce or interpret any of the provisions of
this Agreement or on account of any damages or loss sustained by such party by
reason of breach or violation by the other party of any of the terms or
provisions of this Agreement, the prevailing party will be entitled to recover
all expenses and costs incurred, including reasonable attorneys' fees and costs,
including expenses, fees and costs incurred in connection with any appeal and/or
collection efforts

         14. Notices. All notices, demands or communications required or
permitted under this Agreement will be in writing and delivered by hand or
mailed by certified mail, return receipt requested, postage and registration or
certification charges prepaid, or by nationally recognized overnight courier
service, to the party entitled thereto at the addresses set forth below, or such
other party(ies) or address(es) as a party specifies by written notice to the
other parties from time to time, and shall be deemed delivered or served at the
date of delivery by said courier service or two (2) days after deposit of said
notice, demand or communication in the U.S. mail. Except as noted above in
Section 12 with respect to service of process on Employee, each notice to
Company and Employee shall be addressed, until notice of change as aforesaid, as
follows:

                  If to Company:  CornerStone Wireless Services Incorporated.
                                  6809 Corporate Drive
                                  Indianapolis, Inc. 46278
                                  Attn: Chief Executive Officer

                  If to Employee: Anthony W. Sutton
                                  7146 Tuliptree Trail
                                  Indianapolis, IN  46256

<PAGE>

Either party may provide to the other party any notice of a change of address in
accordance with the above provisions.

         15. Entire Agreement and Amendment. This Agreement constitutes the
entire agreement of the parties hereto with respect to the subject matter hereof
and supersedes all prior discussions, understandings and agreements among the
parties hereto. Any such prior agreements shall, from and after the effective
date hereof, be null and void. This Agreement may not be changed orally, but
only by an agreement in writing signed by the party against whom enforcement of
any waiver, change, modification, extension or discharge is sought.

         16. Waiver. The waiver by one party of a breach of any provision of
this Agreement by the other party shall not operate or be construed as a waiver
of any subsequent breach of the same or any other provision by the other party.

         17. Survival. The agreements and covenants set forth in this Agreement
shall survive and continue until all obligations set forth herein shall have
been performed and satisfied.

         18. Actions of Company. All acts and determinations of the Company
under this Agreement shall be subject to prior approval of the Board of
Directors of the Company, and shall be implemented by one or more directors,
employees, or agents of the Company other than Employee; and Employee may not
take any action or make any determination on behalf of the Company under this
Agreement.

         19. Counterparts; Facsimile Signatures. This Agreement may be executed
in two or more counterparts, each of which shall be deemed an original, but all
of which together shall constitute one and the same instrument. Delivery by a
party of executed counterparts of this Agreement by facsimile shall constitute
execution and delivery of such counterpart by such party to the same extent as
if such counterpart were originally executed and delivered by such party.

           IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed as of the date hereinbefore set forth.

                                       CORNERSTONE WIRELESS
                                       SERVICES INCORPORATED

                                       By: /s/ Douglas E. May
                                           ------------------------------------
                                       Title: CFO, VP of Finance, Corp. Sec.
                                              ---------------------------------

                                                        "Company"

                                       /s/ Anthony W. Sutton
                                       ----------------------------------------
                                       ANTHONY W. SUTTON

                                                        "Employee"

<PAGE>

                                    EXHIBIT A
                                    ---------

                                     Duties

         Such duties as are consistent with the position of Vice President of
Sales, as determined by the Board of Directors of the Company, or such other
office or capacity as the Board of Directors of the Company shall determine from
time to time.

<PAGE>

                                    Exhibit B
                                    ---------

                            RECOURSE PROMISSORY NOTE

$300,000 Indianapolis, Indiana
                                                                  July 30, 2001

         FOR VALUE RECEIVED, the undersigned, ANTHONY W. SUTTON ("Maker"),
promises to pay to WOW ENTERTAINMENT, INC. ("Payee") at Bank One Tower, 111
Monument Circle, Suite 4600, Indianapolis, Indiana 46204, or such other place as
Payee may from time to time designate to Maker in writing, the principal sum of
Three Hundred Thousand Dollars ($300,000.00), together with interest on the
outstanding principal balance existing from time to time from the date hereof at
the rate of six percent (6%) per annum, with payment of principal and interest
to be made as hereinafter provided.

         1. Maturity. This Note shall mature and be payable in full on October
31, 2006 (the "Maturity Date").

         2. Payment of Principal and Interest. Accrued interest shall be paid
annually on each anniversary date of the execution of this Note prior to the
Maturity Date, unless such day is a Saturday, Sunday or a public holiday or the
equivalent for banks generally under the laws of the State of Indiana, in which
case accrued interest shall be paid on the next succeeding day which is not a
Saturday, Sunday or a public holiday or the equivalent for banks generally under
the laws of the State of Indiana. The balance of principal and any unpaid
interest shall be paid on the Maturity Date. Time is of the essence of this
Note.

         3. Prepayments. Subject to the provisions hereof, Maker may prepay the
principal amount hereunder in whole or in part at any time without penalty,
together with interest accrued on any such prepaid amount to and including the
date of such prepayment. In addition, Maker shall prepay such portions of the
principal amount of this Note from time to time, together with interest accrued
on any such prepaid amount to and including the date of each such prepayment, as
and when such prepayments may be required under the terms of the Restricted
Stock Purchase Agreement, as described below.

         4. Restricted Stock Purchase Agreement and Pledge Agreement. This Note
is made in payment for certain stock of Payee being purchased by Maker from
Payee pursuant to a Restricted Stock Purchase Agreement of even date by and
between Maker and Payee (the "Restricted Stock Purchase Agreement"). The
obligations of Maker under this Note and any extensions or renewals hereof are
secured by a pledge of certain shares of Payee owned by Maker in accordance with
a Stock Pledge Agreement of even date by and between Maker and Payee (the
"Pledge Agreement"). Reference is made to both the Restricted Stock Purchase
Agreement and the Pledge Agreement herein for other rights as to defaults and
acceleration.

<PAGE>

         5. Default and Acceleration. Upon the occurrence of (i) a default by
Maker hereunder, or a default by Maker under the Restricted Stock Purchase
Agreement or under the Pledge Agreement and (ii) the expiration of ten (10)
days' written notice from Payee to Maker specifying the nature of such default
and the failure of Maker to cure such default within such ten (10) day period,
the entire principal sum outstanding hereunder, together with all accrued
interest thereon, shall, at the option of the Payee, become immediately due and
payable without notice, and said indebtedness may be collected and the security
interest under the Pledge Agreement may be foreclosed or otherwise realized
upon. No delay on the part of the Payee in exercising said option shall operate
as a waiver, or preclude exercise of such option during the existence of such
default or upon the occasion of a later default. All payments under this Note
shall be without relief from valuation and appraisement laws.

         6. Enforcement Costs. Maker agrees to pay immediately upon demand all
costs and expenses of Payee, including reasonable attorneys' fees, (i) if, after
a default and opportunity to cure as provided in Section 5, this Note is placed
in the hands of an attorney or attorneys for collection, (ii) if Payee finds it
necessary or desirable following a default and opportunity to cure as provided
in Section 6 to secure the services or advice of one or more attorneys with
regard to collection of this Note against Maker, or for protection of its rights
under this Note or the Pledge Agreement, or (iii) if Payee seeks to have the
property subject to the Pledge Agreement, or any part thereof, abandoned by any
estate in bankruptcy, or attempts to have any stay or injunction prohibiting the
enforcement or collection of the Note or prohibiting the enforcement of the
Pledge Agreement lifted by any bankruptcy or other court, and any subsequent
proceedings or appeals from any order or judgment entered in any such
proceeding.

         7. Waivers. The Payee, at its option, may make extensions of the time
for the payment of the indebtedness, or reduce the payments thereon, release any
collateral securing such indebtedness, or accept a renewal note or notes
therefor, all without notice, and Maker and endorsers hereby consent to any such
extensions, reductions or renewals, all without notice, and agree that any such
action shall not release them from any liability hereunder. Maker and endorsers
jointly and severally waive presentment for payment, notice of dishonor, notice
of nonpayment of this Note, and diligence in the collection thereof as
conditions of liability under this instrument.

         8. Other Provisions. This Note shall be deemed to be a contract made
under the laws of the State of Indiana, and for all purposes shall be construed
in accordance with and governed by the laws of such state without regard to
conflicts of laws principles. The terms and provisions of this Note shall be
binding upon and inure to the benefit of Maker and Payee and their respective
successors in interest and assigns. Maker shall not assign his obligations under
this Note without the prior written consent of Payee.

         Executed as of July 30, 2001.

                                       /s/ Anthony W. Sutton
                                       -----------------------------------
                                       Anthony W. Sutton
                                                      "Maker"

<PAGE>

                                    Exhibit C
                                    ---------

                             STOCK PLEDGE AGREEMENT
                             ----------------------

         Anthony W. Sutton (the "Pledgor"), hereby delivers, sets over, and
pledges to WOW Entertainment, Inc., a Delaware corporation (the "Pledgee"), and
grants to the Pledgee a security interest in the following:

         (a)      Eight Hundred Seventy-Five Thousand (875,000) shares of common
                  stock of Pledgee, represented by Certificates Nos. ___ and ___
                  (collectively, the "Pledged Stock");

         (b)      All certificates representing the Pledged Stock and all cash,
                  securities, dividends, distributions, interest and other
                  property at any time and from time to time received,
                  receivable or otherwise distributed in respect of or in
                  exchange for any or all of the Pledged Stock; and

         (c)      All additional shares of common stock, debt obligations or
                  securities of Pledgee at any time acquired by the Pledgor and
                  the certificates representing such additional shares, debt
                  obligations or securities and all cash, securities, dividends
                  or other property at any time and from time to time received,
                  receivable or otherwise distributed in respect of or in
                  exchange for all or any of such shares, debt obligations or
                  securities;

(collectively, the "Collateral") to secure the undertakings of the Pledgor
herein for the prompt and complete performance of the Obligations of the Pledgor
to the Pledgee under that certain Recourse Promissory Note of even date herewith
made by the Pledgor in favor of the Pledgee (as the same may be amended from
time to time, the "Note") and under that certain Restricted Stock Purchase
Agreement of even date herewith by and between Pledgor and Pledgee (as the same
may be amended from time to time, the "Restricted Stock Purchase Agreement"). As
used herein, the term "Obligations" shall mean the obligations of the Pledgor to
pay the amounts due to the Pledgee or any lawful holder of the Note or assignee
of the Restricted Stock Purchase Agreement.

         1. Delivery of the Pledged Stock. Concurrently herewith, and subject to
the terms and conditions of this Pledge Agreement, the Pledgor shall deliver to
the Pledgee the original share certificates and all other instruments or
documents evidencing the Pledged Stock (the "Stock Certificates"), together with
appropriate stock powers, endorsements and other appropriate instruments of
assignment endorsed in blank.

         2. Voting; Dividends; Distributions. Until and unless an uncured
default exists under the Note or the Restricted Stock Purchase Agreement, the
Pledgor shall be entitled to: (i) vote the Pledged Stock, in person or by proxy,
at any annual or special meetings of the shareholders of the Issuer on any issue
which may properly come before the meetings;(ii) give consents, waivers and
ratifications relative to the Collateral; and (iii) receive all payments under,
or cash dividends

<PAGE>

distributed in respect of, the Collateral; provided, however, that any and all
such payments or cash dividends may be retained by Pledgee at its option as
additional security for the Obligations and deemed to constitute a portion of
the Collateral with respect to which they were distributed.

         3. Rights of Pledgee. Pledgee may, while there exists an uncured
Default, resort to the Collateral for the payment of any of the Obligations,
whether or not it shall have resorted to any other property or shall have
proceeded against any party primarily or secondarily liable on any of the
Obligations.

         4. Covenants. The Pledgor covenants and agrees that from and after the
date hereof and until the Obligations are fully paid and performed:

                  (a) without the prior written consent of the Pledgee and
         except as otherwise set forth herein, the Pledgor shall not sell,
         assign, transfer, exchange or otherwise dispose of, or grant any option
         with respect to, the Collateral; nor shall it create, incur or permit
         to exist any lien with respect to any of the Collateral, or any
         interest therein, except for the lien provided under this Pledge
         Agreement, and the Pledgor shall take any action necessary to remove
         any such lien;

                  (b) from time to time the Pledgor shall, at the Pledgor's
         expense, duly and promptly execute any and all further instruments and
         documents and take such further action as the Pledgee may reasonably
         deem desirable to obtain the full benefits of this Pledge Agreement,
         including, without limitation, the filing of any financing or
         continuation statements under any Uniform Commercial Code, and the
         Pledgor also hereby authorizes Pledgee to file any such financing
         statement or continuation statement on its behalf to the extent
         permitted by applicable law; and

                  (c) Pledgor shall deliver any and all Collateral to Pledgee in
         addition to the Stock Certificates, together with appropriate stock
         powers, endorsements, and other appropriate instruments of assignment
         endorsed in blank.

         5. Power of Attorney. The Pledgor hereby constitutes and appoints the
Pledgee or any agent thereof, with full power of substitution, as its true and
lawful attorney-in-fact with full power and authority in the place and stead of
the Pledgor and in the name of the Pledgor or in the Pledgee's name, from time
to time in the Pledgee's discretion, for the purpose of carrying out the terms
of this Pledge Agreement, to take any and all appropriate action and to execute
any and all documents and instruments which may be necessary or desirable to
accomplish the purposes of this Pledge Agreement.

         6. Default; Remedies. While there exists an uncured default under the
Note, the Pledgee may at its option: (i) appropriate and apply toward the
payment of the Obligations, and in such order of application as the Pledgee may
from time to time elect, the Collateral or any proceeds thereof; (ii) cause the
Collateral to be registered in the name of the Pledgee or its nominee or cause
new certificates evidencing the Collateral to be issued; (iii) sell, lease,
assign, give options to

<PAGE>

purchase or sell or otherwise dispose of and deliver the Collateral, or any part
thereof, in one or more parcels at public or private sale or sales, at any
exchange, broker's board or at any of the Pledgee's offices or elsewhere upon
such terms and conditions as the Pledgee may deem advisable and to be
commercially reasonable and at such price as it may deem best, for cash or on
credit or for future delivery without assumption of any credit risk, with the
right of the Pledgee upon any such sale or sales, public or private, to purchase
the whole or any part of the Collateral so sold; or (iv) exercise such other
rights and remedies as may be available to the Pledgee under the Indiana Uniform
Commercial Code or other applicable law. The Pledgee shall apply the net
proceeds of any such collection, recovery, receipt, appropriation, realization
or sale to the payment in whole or in part of the Obligations. Pledgee shall
give the Pledgor at least thirty (30) days prior notification of intended
disposition of the Collateral.

         7. Waiver; Amendment. No delay on the part of the Pledgee in the
exercise of any right or remedy shall operate as a waiver thereof, and no single
or partial exercise by the Pledgee of any right or remedy shall preclude other
or further exercise thereof or the exercise of any other right or remedy. None
of the terms or provisions of this Pledge Agreement may be waived, altered,
modified or amended except by an instrument in writing, duly executed by the
Pledgor and the Pledgee.

         8. Termination. Upon payment in full of all Obligations, the
Collateral, along with any necessary assignments and termination statements,
shall promptly be distributed to Pledgor or Pledgee, as applicable under the
Restricted Stock Purchase Agreement, and this Pledge Agreement shall be deemed
terminated. Without limitation of the above, to the extent that Pledgor shall
make full payment for any one or more Vested Shares (as defined in the
Restricted Stock Purchase Agreement), including without limitation any accrued
interest applicable thereto, Pledgee shall promptly release such Vested Shares
from the liens and restrictions of this Pledge Agreement.

         9. Successors and Assigns. This Pledge Agreement shall be binding upon
the Pledgor and its successors and permitted assigns. This Pledge Agreement
shall inure to the benefit of the Pledgee and its successors and assigns.

         10. General. This Pledge Agreement shall be governed by the laws of the
State of Indiana, notwithstanding conflicts of law principles. Wherever possible
each provision of this Pledge Agreement shall be interpreted in such manner as
to be effective and valid under applicable law, but if any provision of this
Pledge Agreement shall be prohibited by or invalid under any such law, such
provision shall be ineffective to the extent of such prohibition or invalidity,
without invalidating the remainder of such provision or the remaining provisions
of this Pledge Agreement. Section headings are for ease of reference only and
shall not govern the interpretation of any provisions hereof.

<PAGE>

         IN WITNESS WHEREOF, the Pledgor and the Pledgee have duly executed this
Pledge Agreement effective as of the 30th day of July, 2001.

                                       By: /s/ Anthony W. Sutton
                                           --------------------------------
                                           Anthony W. Sutton

                                                    "Pledgor"

                                       WOW ENTERTAINMENT, INC.

                                       By: /s/ Douglas E. May
                                           --------------------------------

                                       Printed: Douglas E. May

                                       Title: CFO, VP of Finance, Corp.Sec.
                                              -----------------------------

                                                    "Pledgee"<PAGE>

                                                                     Exhibit 4.2
                                                                     -----------

                           RIVERSTONE NETWORKS, INC.
                           2000 EQUITY INCENTIVE PLAN
                             (Amended and Restated)

1. Purpose

   The purpose of this Equity Incentive Plan (the "Plan") is to advance the
interests of Riverstone Networks, Inc. (the "Company") and its subsidiaries and
affiliates by enhancing their ability to attract and retain employees and other
individuals or entities who are in a position to make significant contributions
to the success of the Company and its subsidiaries through awards based on the
Company's common stock, $.01 par value ("Stock"), and cash incentives.

   The Plan is intended to accomplish these goals by enabling the Company to
grant awards ("Awards") in the form of Options, Stock Appreciation Rights,
Restricted Stock or Unrestricted Stock Awards, Deferred Stock Awards,
Performance Awards, Other Stock-Based Awards or loans or supplemental grants,
or combinations thereof, all as more fully described below.

2. Administration

   Unless otherwise determined by the Board of Directors of the Company (the
"Board"), the Plan will be administered by a committee of the Board designated
for such purpose (the "Committee"). During such period as the Plan is
administered by the Board rather than by a committee of the Board, all
references herein to "Committee" shall be deemed to refer to the Board.

   The Committee shall consist of at least two directors. A majority of the
members of the Committee shall constitute a quorum, and all determinations of
the Committee shall be made by a majority of its members. Any determination of
the Committee under the Plan may be made without notice or meeting of the
Committee by a writing signed by a majority of the Committee members. During
such times as the Stock is registered under the Securities Exchange Act of
1934, as amended (the "1934 Act"), at least two members of the Committee shall
be "non-employee directors" within the meaning of Rule 16b-3 promulgated under
the 1934 Act and "outside directors" within the meaning of Section
162(m)(4)(C)(i) of the Internal Revenue Code of 1986, as amended (the "Code")
(the "Outside Directors"). If any member of the Committee is not an Outside
Director, a sub-committee (the "Sub-Committee") consisting solely of the
Outside Directors shall administer the Plan in connection with Awards to
"officers" of the Company within the meaning of Section 16(b) of the 1934 Act
or with respect to any Award intended to be exempt under Section 162(m) of the
Code. Any references to the Committee in this Plan shall also mean the Sub-
Committee.

   The Committee will have authority, not inconsistent with the express
provisions of the Plan and in addition to other authority granted under the
Plan, to: (a) grant Awards at such time or times as it may choose; (b)
determine the size of each Award, including the number of shares of Stock
subject to the Award; (c) determine the type or types of each Award; (d)
determine the terms and conditions of each Award; (e) waive compliance by a
holder of an Award with any obligations to be performed by such holder under an
Award and waive any terms or conditions of an Award; (f) amend or cancel an
existing Award in whole or in part (and if an award is canceled, grant another
Award in its place on such terms and conditions as the Committee shall
specify), except that the Committee may not, without the consent of the holder
of an Award, take any action under this clause with respect to such Award if
such action would adversely affect the rights of such holder; (g) prescribe the
form or forms of any instruments to be used under the Plan, including any
written notices and elections required of Participants (as defined in Section
5), and change such forms from time to time; (h) adopt, amend and rescind rules
and regulations for the administration of the Plan; and (i) interpret the Plan
and decide any questions and settle all controversies and disputes that may
arise in connection with the Plan. Such determinations and actions of the
Committee, and all other determinations and actions of the Committee made

                                       1
<PAGE>

or taken under authority granted by any provision of the Plan, will be
conclusive and will bind all parties. Nothing in this paragraph shall be
construed as limiting the power of the Committee to make adjustments under
Sections 7.3 or 8.6.

   The Committee may delegate to one or more senior officers of the Company who
are also directors of the Company its duties under the Plan subject to such
conditions and limitations as the Committee may prescribe, except that only the
Committee may designate and make grants to Participants (i) who are subject to
Section 16 of the 1934 Act or any successor statute, including, without
limitation, decisions on timing, amount and pricing of Awards, or (ii) who at
the time of grant are (or are expected to be) "covered employees" within the
meaning of Section 162(m)(3) of the Code.

   Notwithstanding the foregoing, prior to the earlier of the date on which the
Company becomes a separate public company for purposes of Section 162(m) of the
Code or the date on which the Committee consists of at least two "outside
directors" (within the meaning of Section 162(m)(4)(C)(i) of the Code), a
committee of "outside directors" (as so defined) of Cabletron Systems, Inc.
("Cabletron") shall act upon all Awards intended to qualify for the
performance-based compensation exception under Section 162(m) of the Code.

3. Effective Date and Term of Plan

   The Plan has been approved by the Board and by Cabletron as sole stockholder
of the Company. No Award may be granted under the Plan after May 14, 2010, but
Awards previously granted may extend beyond that date.

4. Shares Subject to the Plan

   (a) Number of Shares. Subject to adjustment as provided in Section 8.6, the
aggregate number of shares of Stock that may be delivered under the Plan will
be 50,000,000, subject to the automatic share increases described in paragraph
(d) of this Section 4. If any Award requiring exercise by the Participant for
delivery of Stock terminates without having been exercised in full, or if any
Award payable in Stock or cash is satisfied in cash rather than Stock, the
number of shares of Stock as to which such Award was not exercised or for which
cash was substituted will be available for future grants.

   (b) Shares to be Delivered. Stock delivered under the Plan may be either
authorized but unissued Stock or previously issued Stock acquired by the
Company and held in treasury. No fractional shares of Stock will be delivered
under the Plan.

   (c) Special Limitations. No Participant may be granted Options or Stock
Appreciation Rights in any calendar year with respect to more than (in the case
of each such type of award) 8,500,000 shares of Stock or, if less, the total
number of shares of Stock then available for awards under the Plan.

   (d) Automatic Share Increase. The number of shares of Stock available for
issuance under the Plan shall automatically increase on the first day of our
fiscal year, beginning with fiscal year 2003 and continuing through fiscal year
2006, by a number of shares equal to five percent (5%) of the total number of
shares of Stock outstanding on the last trading day of the immediately
preceding fiscal year, but in no event shall any such annual increase exceed
10,000,000 shares.

5. Eligibility and Participation

   Each key employee of the Company or any of its subsidiaries or affiliates
(an "Employee") and each other individual or entity (other than employees of
the Company or any of its subsidiaries or affiliates, but including, without
limitation, directors of the Company or any of its subsidiaries or affiliates
and employees of or other providers of services to Cabletron Systems, Inc. or
any of its subsidiaries) who, in the opinion of the Committee, is in a position
to make a significant contribution to the success of the Company or its
subsidiaries

                                       2
<PAGE>

will be eligible to receive Awards under the Plan (each such Employee, other
individual or entity receiving an Award, a "Participant"). Without limiting the
foregoing, Participants may also include (i) individuals who have accepted an
offer of employment from the Company or its subsidiaries or affiliates and who
the Company or its subsidiaries or affiliates reasonably believe will be key
employees upon commencing such employment (each a "New Hire"), and (ii)
individuals (whether or not described in the first sentence of this Section)
who, at the time of a spin-off of the Company (as described in Section 9) from
Cabletron, are holding options to acquire stock of Cabletron.

6. Types of Awards

6.1. Options

   (a) Nature of Options. An option ("Option") is an Award giving the recipient
the right on exercise thereof to purchase Stock. Both "incentive stock options"
as defined in Section 422(b) of the Code (any Option intended to qualify as an
incentive stock option being hereinafter referred to as an "ISO") and Options
that are not ISOs may be granted under the Plan. ISOs shall be awarded only to
individuals who are employed by the Company or by a parent or subsidiary
corporation as those terms are defined in Section 424 of the Code. Each Option
awarded under the Plan shall be a non-ISO unless it is expressly designated as
an ISO at time of grant.

   (b) Exercise Price. The exercise price of an Option will be determined by
the Committee subject to the following:

     (1) The exercise price of an ISO or an Option intended to qualify as
  performance based compensation under Section 162(m) of the Code shall not
  be less than 100% of the fair market value of the Stock subject to the
  Option, determined as of the time the Option is granted.

     (2) In no case may the exercise price paid for Stock which is part of an
  original issue of authorized Stock be less than the par value per share of
  the Stock.

   (c) Duration of Options. The latest date on which an Option may be exercised
will be the tenth anniversary of the day immediately preceding the date the
Option was granted, or such earlier date as may have been specified by the
Committee at the time the Option was granted.

   (d) Exercise of Options. An Option will become exercisable at such time or
times, and on such conditions, as the Committee may specify. The Committee may
at any time and from time to time accelerate the time at which all or any part
of the Option may be exercised. Except as otherwise determined by the
Committee, there shall be added to any period taken into account in determining
the vesting or exercisability of an Option periods during which a Participant
who is an Employee is on an unpaid leave of absence (or other unpaid absence)
from the Company. For example, if a portion of an Option would otherwise vest
and/or become exercisable on the first anniversary of the date of grant
assuming that the Participant continues in employment and if, during the one-
year period immediately following the date of grant, the Participant is given
and takes an unpaid three-month leave of absence, the portion of the Option
that would otherwise have vested and/or become exercisable on the first
anniversary of the date of grant will vest and/or become exercisable on the
date which follows such anniversary by three months, assuming continued
employment by the Participant and except as otherwise determined by the
Committee, and subsequent vesting/exercisability dates will similarly be moved
back by three months. Any exercise of an Option must be in writing, signed by
the proper person and delivered or mailed to the Company, accompanied by (1)
any documents required by the Committee and (2) payment in full in accordance
with paragraph (e) below for the number of shares for which the Option is
exercised.

   (e) Payment for Stock. Stock purchased on exercise of an Option must be paid
for as follows: (1) in cash or by check (acceptable to the Company in
accordance with guidelines established for this purpose), bank draft or money
order payable to the order of the Company; or (2) if so permitted by the
Committee, (i) by delivery of shares of Stock which have been held for at least
six months (unless the Committee approves a shorter

                                       3
<PAGE>

period) and which have a fair market value equal to the exercise price, (ii) by
delivery of a full recourse promissory note of the Participant to the Company
containing such terms as are specified by the Committee, (iii) by delivery of
an unconditional and irrevocable undertaking by a broker to deliver promptly to
the Company sufficient funds to pay the exercise price, or (iv) by any
combination of the foregoing permissible forms of payment.

6.2. Stock Appreciation Rights.

   (a) Nature of Stock Appreciation Rights. A Stock Appreciation Right ("Stock
Appreciation Right") is an Award entitling the holder on exercise to receive an
amount in cash or Stock or a combination thereof (such form to be determined by
the Committee) determined in whole or in part by reference to appreciation,
from and after the date of grant, in the fair market value of a share of Stock.
Stock Appreciation Rights may be based solely on appreciation in the fair
market value of Stock or on a comparison of such appreciation with some other
measure of market growth such as (but not limited to) appreciation in a
recognized market index. The date as of which such appreciation or other
measure is determined shall be the exercise date unless another date is
specified by the Committee.

   (b) Grant of Stock Appreciation Rights. Stock Appreciation Rights may be
granted in tandem with, or independently of, Options granted under the Plan.

     (1) Rules Applicable to Tandem Awards. When Stock Appreciation Rights
  are granted in tandem with Options: (A) the Stock Appreciation Right will
  be exercisable only at such time or times, and to the extent, that the
  related Option is exercisable and will be exercisable in accordance with
  the procedure required for exercise of the related Option; (B) the Stock
  Appreciation Right will terminate and no longer be exercisable upon the
  termination or exercise of the related Option, except that a Stock
  Appreciation Right granted with respect to fewer than the full number of
  shares covered by an Option will not be reduced until the number of shares
  as to which the related Option has been exercised or has terminated exceeds
  the number of shares not covered by the Stock Appreciation Right; (C) the
  Option will terminate and no longer be exercisable upon the exercise of the
  related Stock Appreciation Right; and (D) the Stock Appreciation Right will
  be transferable only with the related Option.

     (2) Exercise of Independent Stock Appreciation Rights. A Stock
  Appreciation Right not granted in tandem with an Option will become
  exercisable at such time or times, and on such conditions, as the Committee
  may specify. Except as otherwise determined by the Committee, there shall
  be added to any period taken into account in determining the vesting or
  exercisability of a Stock Appreciation Right periods during which a
  Participant who is an Employee is on an unpaid leave of absence (or other
  unpaid absence) from the Company. The Committee may at any time accelerate
  the time at which all or any part of the Stock Appreciation Right may be
  exercised.

   Any exercise of an independent Stock Appreciation Right must be in writing,
signed by the proper person and delivered or mailed to the Company, accompanied
by any other documents required by the Committee.

6.3. Restricted and Unrestricted Stock.

   (a) Grant of Restricted Stock. Subject to the terms and provisions of the
Plan, the Committee may grant shares of Stock in such amounts and upon such
terms and conditions as the Committee shall determine subject to the
restrictions described below ("Restricted Stock").

   (b) Restricted Stock Agreement. The Committee may require, as a condition to
an Award, that a recipient of a Restricted Stock Award enter into a Restricted
Stock Award Agreement, setting forth the terms and conditions of the Award. In
lieu of a Restricted Stock Award Agreement, the Committee may provide the terms
and conditions of an Award in a notice to the Participant of the Award, in the
resolution approving the Award, or in such other manner as it deems
appropriate. Any stock certificate representing the Restricted Stock shall bear
an appropriate legend to reflect the applicable restrictions.

                                       4
<PAGE>

   (c) Transferability and Other Restrictions. Except as otherwise provided in
this Section 6.3, the shares of Restricted Stock granted herein may not be
sold, transferred, pledged, assigned, or otherwise alienated or hypothecated
until the end of the applicable period or periods established by the Committee
and the satisfaction of any other conditions or restrictions established by the
Committee (such period during which a share of Restricted Stock is subject to
such restrictions and conditions is referred to as the "Restricted Period").
Except as the Committee may otherwise determine under Sections 7.1 or 7.2, if a
Participant dies or suffers a Status Change (as defined in Section 7.2) for any
reason during the Restricted Period, the Company may purchase the shares of
Restricted Stock subject to such restrictions and conditions for the amount of
cash paid by the Participant for such shares; provided, that if no cash was
paid by the Participant such shares of Restricted Stock shall be automatically
forfeited to the Company.

   During the Restricted Period with respect to any shares of Restricted Stock,
the Company shall have the right to retain in the Company's possession the
certificate or certificates representing such shares.

   (d) Removal of Restrictions. Except as otherwise provided in this Section
6.3, a share of Restricted Stock covered by a Restricted Stock Award shall
become free from restrictions under the Plan upon completion of the Restricted
Period, including the passage of any applicable period of time and satisfaction
of any conditions to vesting. Except as otherwise determined by the Committee,
there shall be added to any Restricted Period required to be satisfied in
determining the vesting or exercisability of an Award of Restricted Stock
periods during which a Participant who is an Employee is on an unpaid leave of
absence (or other unpaid absence) from the Company. The Committee shall have
the right at any time, in its sole discretion, immediately to waive all or any
part of the restrictions and conditions with regard to all or any part of the
shares held by any Participant.

   (e) Voting Rights, Dividends and Other Distributions. During the Restricted
Period, Participants holding shares of Restricted Stock granted hereunder may
exercise full voting rights and shall receive all regular cash dividends paid
with respect to such shares. Except as the Committee shall otherwise determine,
any other cash dividends and other distributions paid to Participants with
respect to shares of Restricted Stock, including any dividends and
distributions paid in shares, shall be subject to the same restrictions and
conditions as the shares of Restricted Stock with respect to which they were
paid.

   (f) Other Awards Settled with Restricted Stock. The Committee may, at the
time any Award described in this Section 6 is granted, provide that any or all
of the Stock delivered pursuant to the Award will be Restricted Stock.

   (g) Unrestricted Stock. Subject to the terms and provisions of the Plan, the
Committee may grant shares of Stock free of restrictions under the Plan
("Unrestricted Stock") in such amounts and upon such terms and conditions as
the Committee shall determine.

6.4. Deferred Stock.

   A Deferred Stock Award is an unfunded and unsecured promise by the Company
to deliver shares of Stock in the future ("Deferred Stock"). Delivery of the
Stock will take place at such time or times, and on such conditions, as the
Committee may specify. The Committee may at any time accelerate the time at
which delivery of all or any part of the Stock will take place. At the time any
Award described in this Section 6 is granted, the Committee may provide that
any or all of the Stock delivered pursuant to the Award will be Deferred Stock.

6.5. Performance Awards.

   The Committee may, at the time an Award described in Sections 6.1, 6.2, 6.3,
6.4 or 6.7 is granted, impose the additional condition that performance goals
must be met prior to the Participant's realization of any vesting, payment or
benefit under the Award. In addition, the Committee may make awards entitling
the Participant to

                                       5
<PAGE>

receive an amount in cash upon attainment of specified performance goals (a
"Cash Incentive"). Any Award or Cash Incentive made subject to performance
goals as described in the preceding two sentences shall be a "Performance
Award" subject to the provisions of this Section 6.5 in addition to any other
applicable provisions of the Plan or the Award. Performance Awards may consist
of Cash Incentives or Awards that are intended to qualify for the performance-
based compensation exception under Section 162(m) of the Code, other than
Options or Stock Appreciation Rights intended to qualify for such exception by
reason of the special rules under Section 162(m) of the Code applicable to
stock options and stock appreciation rights granted at an exercise price not
less than fair market value on the date of grant, ("Qualified Performance
Awards") or Cash Incentives or Awards that either are not intended so to
qualify or are Options or Stock Appreciation Rights intended to qualify for
such exception by reason of the special rules under Section 162(m) of the Code
applicable to stock options and stock appreciation rights granted at an
exercise price not less than fair market value on the date of grant ("Other
Performance Awards"). The Committee will determine the performance measures,
the period or periods during which performance is to be measured and all other
terms and conditions applicable to the Performance Award. The performance
measures to which a Performance Award is subject may be related to personal
performance, corporate performance, departmental performance or any other
category of performance established by the Committee. In the case of a
Qualified Performance Award, payment under the Award or of the Cash Incentive
must be conditioned on the satisfaction of one or more "qualified performance
measures" preestablished by the Committee in accordance with the rules under
Section 162(m) of the Code and on certification (within the meaning of the
rules under Section 162(m) of the Code) by the Committee that such measure or
measures have been met or exceeded. For purposes of the preceding sentence, a
qualified performance measure is an objectively determinable measure of
performance based on any one or more of the following (on a consolidated,
divisional, subsidiary, line of business or geographical basis or in
combinations thereof): (i) sales; revenues; assets; expenses; earnings before
or after deduction for all or any portion of interest, taxes, depreciation or
amortization, whether or not on a continuing operations or an aggregate or per
share basis; return on equity, investment, capital or assets; inventory level
or turns; one or more operating ratios; borrowing levels, leverage ratios or
credit rating; market share; capital expenditures; cash flow; stock price;
stockholder return; or any combination of the foregoing; or (ii) acquisitions
and divestitures (in whole or in part); joint ventures and strategic alliances;
spin-offs, split-ups and the like; reorganizations; recapitalizations,
restructurings, financings (issuance of debt or equity) and refinancings;
transactions that would constitute a change of control; or any combination of
the foregoing. A qualified performance measure and targets with respect thereto
determined by the Committee need not be based upon an increase, a positive or
improved result or avoidance of loss. The maximum number of shares of Stock
subject to Performance Awards (other than Cash Incentives) awarded to any
Participant in any three-calendar-year period shall be 5,000,000 shares. The
maximum amount payable under Cash Incentives to any Participant for any year
shall be $5,000,000.

6.6. Loans and Supplemental Grants.

   (a) Loans. The Company may make a full recourse loan to a Participant,
either at the time of or after the grant to him or her of any Award. Such a
loan may be made in connection with either the purchase of Stock under the
Award or the payment of any federal income tax in respect of income recognized
as a result of the Award. The Committee will have full authority to decide
whether to make such a loan and to determine the amount, terms and conditions
of the loan, including the interest rate (which may be zero), whether the loan
is to be secured or unsecured, the terms on which the loan is to be repaid and
the conditions, if any, under which it may be forgiven. However, no loan may
have a term (including extensions) exceeding ten years in duration.

   (b) Cash Grants. In connection with any Award, the Committee may at the time
such Award is made or at a later date provide for and make a cash payment to
the Participant not to exceed an amount equal to (a) the amount of any federal,
state and local income tax on ordinary income for which the Participant will be
liable with respect to the Award, plus (b) an additional amount on a grossed-up
basis necessary to make him or her whole after tax, discharging all the
Participant's income tax liabilities arising from all payments under this
Section 6, all based on such reasonable estimates of applicable tax rates as
the Committee may determine.

                                       6
<PAGE>

6.7. Other Stock-Based Awards.

   (a) Nature of Awards. The Committee may grant other Awards under which Stock
is or may in the future be acquired ("Other Stock-Based Awards"). Such Awards
may include, without limitation, debt securities convertible into or
exchangeable for shares of Stock upon such conditions, including attainment of
performance goals, as the Committee shall determine. Such convertible or
exchangeable securities may have such terms and conditions as the Committee may
determine at the time of grant. However, no convertible or exchangeable debt
shall be issued unless the Committee shall have provided (by Company right of
repurchase, right to require conversion or exchange, or other means deemed
appropriate by the Committee) a means of avoiding any right of the holders of
such debt to prevent a Company transaction by reason of covenants in such debt.

   (b) Purchase Price; Form of Payment. The Committee may determine the
consideration, if any, payable upon the issuance or exercise of an Other Stock-
Based Award. The Committee may permit payment by certified check or bank check
or other instrument acceptable to the Committee or by surrender of other shares
of Stock (excluding shares then subject to restrictions under the Plan).

   (c) Forfeiture of Awards; Repurchase of Stock; Acceleration or Waiver of
Restrictions. The Committee may determine the conditions under which an Other
Stock-Based Award shall be forfeited or, in the case of an Award involving a
payment by the recipient, the conditions under which the Company may or must
repurchase such Award or related Stock. At any time the Committee may in its
sole discretion accelerate, waive or amend any or all of the limitations or
conditions imposed under any Other Stock-Based Award.

7. Events Affecting Outstanding Awards

7.1. Death.

   Except as the Committee may otherwise determine, if a Participant dies the
following will apply:

     (a) All Options and Stock Appreciation Rights held by the Participant
  immediately prior to death, whether or not otherwise exercisable, may be
  exercised by the Participant's executor or administrator or the person or
  persons to whom the Option or Stock Appreciation Right is transferred by
  will or the applicable laws of descent and distribution, at any time within
  the one year period ending with the first anniversary of the Participant's
  death (or such shorter or longer period as the Committee may determine),
  and shall thereupon terminate. In no event, however, shall an Option or
  Stock Appreciation Right (i) be or become exercisable pursuant to this
  subsection prior to the date (upon or following a spin-off of the Company),
  if any, specified with respect to other exercises of the Option or Stock
  Appreciation Right pursuant to Section 9(a)(i), or (ii) remain exercisable
  beyond the latest date on which it could have been exercised without regard
  to this Section 7.

     (b) All Restricted Stock held by the Participant must be transferred to
  the Company (and, in the event the certificates representing such
  Restricted Stock are held by the Company, such Restricted Stock will be so
  transferred without any further action by the Participant) in accordance
  with Section 6.3(c).

     (c) Any payment or benefit under a Deferred Stock Award, Performance
  Award or Other Stock-Based Award to which the Participant was not
  irrevocably entitled prior to death will be forfeited and the Award
  canceled as of the time of death.

7.2. Termination of Service (Other Than By Death).

   If (i) a Participant who is an Employee ceases to be an Employee for any
reason other than death, (ii) there is a termination (other than by reason of
death or satisfactory completion of the project or service as determined by the
Committee) of the consulting, service or similar relationship in respect of
which a non-Employee Participant was granted an Award hereunder or (iii) a New
Hire's offer of employment is terminated prior to the New Hire commencing
employment with the Company or the New Hire does not commence his or her
employment with the Company within two months after receipt of an Award
hereunder (such termination of the employment or other relationship being
hereinafter referred to as a "Status Change"), then, except as the Committee
may otherwise determine, the following will apply:

                                       7
<PAGE>

     (a) All Options and Stock Appreciation Rights held by the Participant
  that were not exercisable immediately prior to the Status Change shall
  terminate at the time of the Status Change. Any Options or Stock
  Appreciation Rights that were exercisable immediately prior to the Status
  Change will continue to be exercisable for a period of ninety (90) days and
  shall thereupon terminate, unless the Award provides by its terms for
  immediate termination in the event of a Status Change or unless the Status
  Change results from a discharge for cause which in the opinion of the
  Committee casts such discredit on the Participant as to justify immediate
  termination of the Award. In no event, however, shall an Option or Stock
  Appreciation Right remain exercisable beyond the latest date on which it
  could have been exercised without regard to this Section 7. For purposes of
  this Section, in the case of a Participant who is an Employee, a Status
  Change shall not be deemed to have resulted by reason of (i) a sick leave
  or other bona fide leave of absence approved for purposes of the Plan by
  the Committee, so long as the Employee's right to reemployment is
  guaranteed either by statute or by contract, or (ii) a transfer of
  employment between the Company and a subsidiary or between subsidiaries, or
  to the employment of a corporation (or a parent or subsidiary corporation
  of such corporation) issuing or assuming an option in a transaction to
  which Section 424(a) of the Code applies.

     (b) All Restricted Stock held by the Participant at the time of the
  Status Change must be transferred to the Company (and, in the event the
  certificates representing such Restricted Stock are held by the Company,
  such Restricted Stock will be so transferred without any further action by
  the Participant) in accordance with Section 6.3(c) above.

     (c) Any payment or benefit under a Deferred Stock Award, Performance
  Award or Other Stock-Based Award to which the Participant was not
  irrevocably entitled prior to the Status Change will be forfeited and the
  Award canceled as of the date of such Status Change.

7.3. Certain Corporate Transactions.

   Except as otherwise provided by the Committee, in the event of a
consolidation or merger in which the Company is not the surviving corporation
or which results (or that is part of a series of related transactions that
results) in the acquisition of substantially all the Company's outstanding
Stock by a single person or entity or by a group of persons or entities acting
in concert, or in the event of the sale or transfer of substantially all the
Company's assets or a dissolution or liquidation of the Company (a "covered
transaction"), the following rules shall apply:

     (a) Subject to paragraph (b) below, all outstanding Awards requiring
  exercise will cease to be exercisable, and all other Awards to the extent
  not fully vested (including Awards subject to conditions not yet satisfied
  or determined) will be forfeited, as of the effective time of the covered
  transaction; provided, that the Committee may in its sole discretion, on or
  prior to the effective date of the covered transaction, (1) make any
  outstanding Option and Stock Appreciation Right exercisable in full, (2)
  remove the restrictions from any Restricted Stock, (3) cause the Company to
  make any payment and provide any benefit under any Deferred Stock Award or
  Performance Award or (4) remove any performance or other conditions or
  restrictions on any Award; or

     (b) With respect to an outstanding Award held by a Participant who,
  following the covered transaction, will be employed by or otherwise
  providing services to an entity which is a surviving or acquiring entity in
  the covered transaction or an affiliate of such an entity, the Committee
  may at or prior to the effective time of the covered transaction and in
  lieu of the action described in paragraph (a) above, arrange to have such
  surviving or acquiring entity or affiliate assume any Award held by such
  Participant outstanding hereunder or grant a replacement award which, in
  the judgment of the Committee, is substantially equivalent to any Award
  being replaced.

The Committee may also grant Awards under the Plan in substitution for awards
held by directors, employees, consultants or advisors of another company who
concurrently become directors, employees, consultants or advisors of the
Company or a subsidiary of the Company as the result of a merger or
consolidation of that other

                                       8
<PAGE>

company with the Company or a subsidiary of the Company, or as the result of
the acquisition by the Company or a subsidiary of the Company of property or
stock of that other company. Awards granted under the preceding sentence may be
granted on such terms and conditions as the Committee considers appropriate in
the circumstances.

8. General Provisions

8.1. Documentation of Awards.

   Awards will be evidenced by such written instruments, if any, as may be
prescribed by the Committee from time to time. Such instruments may be in the
form of agreements to be executed by both the Participant and the Company, or
certificates, letters or similar instruments, which need not be executed by the
Participant but acceptance of which will evidence agreement to the terms
thereof.

8.2. Rights as a Stockholder; Dividend Equivalents.

   Except as specifically provided by the Plan, the receipt of an Award will
not give a Participant rights as a stockholder; the Participant will obtain
such rights, subject to any limitations imposed by the Plan or the instrument
evidencing the Award, only upon the issuance of Stock. However, the Committee
may, on such conditions as it deems appropriate, provide that a Participant
will receive a benefit in lieu of cash dividends that would have been payable
on any or all Stock subject to the Participant's Award had such Stock been
outstanding. Without limitation, the Committee may provide for payment to the
Participant of amounts representing such dividends, either currently or in the
future, or for the investment of such amounts on behalf of the Participant.

8.3. Conditions on Delivery of Stock.

   The Company will not be obligated to deliver any shares of Stock pursuant to
the Plan or to remove restrictions from shares previously delivered under the
Plan (a) until all conditions of the Award have been satisfied or removed, (b)
until, in the opinion of the Company's counsel, all applicable federal and
state laws and regulation have been complied with, (c) if the outstanding Stock
is at the time listed on any stock exchange or The Nasdaq National Market,
until the shares to be delivered have been listed or authorized to be listed on
such exchange or market upon official notice of issuance, and (d) until all
other legal matters in connection with the issuance and delivery of such shares
have been approved by the Company's counsel. If the sale of Stock has not been
registered under the Securities Act of 1933, as amended, the Company may
require, as a condition to exercise of the Award, such representations or
agreements as counsel for the Company may consider appropriate to avoid
violation of such Act and may require that the certificates evidencing such
Stock bear an appropriate legend restricting transfer.

   If an Award is exercised by the Participant's legal representative, the
Company will be under no obligation to deliver Stock pursuant to such exercise
until the Company is satisfied as to the authority of such representative.

8.4. Tax Withholding.

   The Company will withhold from any cash payment made pursuant to an Award an
amount sufficient to satisfy all federal, state and local withholding tax
requirements (the "withholding requirements").

   In the case of an Award pursuant to which Stock may be delivered, the
Committee will have the right to require that the Participant or other
appropriate person remit to the Company an amount sufficient to satisfy the
withholding requirements, or make other arrangements satisfactory to the
Committee with regard to such requirements, prior to the delivery of any Stock
or removal of restrictions thereon. If and to the extent that such withholding
is required, the Committee may permit the Participant or such other person to
elect at such time

                                       9
<PAGE>

and in such manner as the Committee provides to have the Company hold back from
the shares to be delivered, or to deliver to the Company, Stock having a value
calculated to satisfy the withholding requirement, but not in excess of the
minimum required to satisfy such withholding requirements. The Committee may
make such share withholding mandatory with respect to any Award at the time
such Award is made to a Participant.

   If at the time an ISO is exercised the Committee determines that the Company
could be liable for withholding requirements with respect to the exercise or
with respect to a disposition of the Stock received upon exercise, the
Committee may require as a condition of exercise that the person exercising the
ISO agree (a) to provide for withholding under the preceding paragraph of this
Section 8.4, if the Committee determines that a withholding responsibility may
arise in connection with the exercise, (b) to inform the Company promptly of
any disposition (within the meaning of Section 424(c) of the Code) of Stock
received upon exercise and (c) to give such security as the Committee deems
adequate to meet the potential liability of the Company for other withholding
requirements and to augment such security from time to time in any amount
reasonably deemed necessary by the Committee to preserve the adequacy of such
security.

8.5. Transferability of Awards.

   Unless otherwise permitted by the Committee, no Award (other than an Award
in the form of an outright transfer of cash or Unrestricted Stock) may be
transferred other than by will or by the laws of descent and distribution.

8.6. Adjustments in the Event of Certain Transactions.

   (a) In the event of a stock dividend, stock split or combination of shares,
recapitalization or other change in the Company's capitalization, or other
distribution to holders of Stock other than normal cash dividends, after the
effective date of the Plan, the Committee will make any appropriate adjustments
to the maximum number of shares that may be delivered under the Plan under
Section 4(a) and to the limits described in Sections 4(c) and 6.5.

   (b) In any event referred to in paragraph (a) above, the Committee will also
make any appropriate adjustments to the number and kind of shares of Stock or
securities subject to Awards then outstanding or subsequently granted, any
exercise prices relating to Awards and any other provision of Awards affected
by such change. The Committee may also make such adjustments to take into
account material changes in law or in accounting practices or principles,
mergers, consolidations, acquisitions, dispositions or similar corporate
transactions, or any other event, if it is determined by the Committee that
adjustments are appropriate to avoid distortion in the operation of the Plan.

   (c) In the case of ISOs or Awards intended to qualify for the "performance-
based compensation" exception under Section 162(m)(4)(C) of the Code, the
adjustments described in paragraphs (a) and (b) above will be made only to the
extent consistent with continued qualification of the Option or other Award
under Sections 422 or 162(m) of the Code, as the case may be.

   (d) For the avoidance of doubt, no adjustment shall be required under this
Section 8.6 to reflect the acquisition of additional shares of Stock by
Cabletron consistent with, or undertaken to effectuate, the capitalization of
the Company assumed in determining the amount, value or exercise price of
Awards made prior to an initial public offering of the Stock.

8.7. Employment Rights, Etc.

   Neither the adoption of the Plan nor the grant of Awards will confer upon
any person any right to continued retention by the Company or any of its
subsidiaries as an Employee or otherwise, or affect in any way the right of the
Company or any of its subsidiaries to terminate an employment, service or
similar relationship at any time. Except as specifically provided by the
Committee in any particular case, the loss of

                                       10
<PAGE>

existing or potential profit in Awards granted under the Plan will not
constitute an element of damages in the event of termination of an employment,
service or similar relationship even if the termination is in violation of an
obligation of the Company or any of its subsidiaries to the Participant.

8.8. Deferral of Payments.

   The Committee may agree at any time, upon request of the Participant, to
defer the date on which any payment under an Award will be made.

8.9. Past Services as Consideration.

   Where a Participant purchases Stock under an Award for a price equal to the
par value of the Stock, the Committee may determine that such price has been
satisfied by past services rendered by the Participant.

9. Special Provisions Relating to the Reorganization of Cabletron Systems, Inc.
   and Certain of its Subsidiaries

   The provisions of this Section 9 shall apply notwithstanding any other
provision in the Plan to the contrary.

   (a) It is anticipated that following the effective date of the Plan and a
subsequent initial public offering of shares of Stock, stock of the Company
held by Cabletron, the Company's parent corporation, may be distributed (a
"spin-off") to the shareholders of Cabletron. Similar transactions may be
accomplished with respect to other subsidiaries of Cabletron. Without limiting
the generality of its authority under the Plan, the Committee may provide that
(i) Options and Stock Appreciation Rights will not be exercisable prior to the
effectiveness of a spin-off of the Company; and (ii) upon a spin-off of the
Company, Options (the "make-up Options") will be granted under the Plan to
certain persons then holding compensatory options to acquire stock of Cabletron
in recognition of the effect of such spin-off on the value of such Cabletron
options, such make-up Options to have such terms as the Committee shall have
determined in conformity with the program for option adjustments approved by
Cabletron in connection with the spin-offs of its subsidiaries.

   (b) If a Sale (as hereinafter defined) of the Company occurs, the following
provisions shall apply (I) to every Option granted to an employee of the
Company or its subsidiaries or to an employee of Cabletron or a subsidiary of
Cabletron, notwithstanding any provision of such Award to the contrary, and
(II) to every other Award to the extent provided in such other Award:

     (i) Each Award granted prior to the Sale (an "affected Award") shall be
  vested (and, in the case of an Award requiring exercise, exercisable)
  (vesting and exercisability being referred to for purposes of this
  subsection (b), without distinction, as "vesting"), immediately prior to
  the Sale, for the "applicable number of shares" as hereinafter defined. In
  the case of an affected Award requiring exercise, the Company shall give
  the holder of the Award adequate notice and opportunity to exercise any
  portion of the affected Award that becomes exercisable by reason of this
  subsection. For purposes of this paragraph (i), the term "applicable number
  of shares" means, in the case of any Award, that number of shares for which
  the Award, but for the operation of any limitation deferring scheduled
  vesting until the date of a spin-off, would have been vested by the end of
  the ten (10)-month period following the Sale had the Participant holding
  the Award immediately prior to the Sale continued in service during such
  ten (10)-month period.

     (ii) Upon consummation of the Sale, if the Sale also constitutes a
  covered transaction as defined in Section 7.3 each affected Award requiring
  exercise will cease to be exercisable, and all other affected Awards to the
  extent not fully vested will be forfeited, except as otherwise provided
  pursuant to Section 7.3. If the acquiror entity or an affiliate thereof
  assumes an affected Award, the assumed Award shall be vested from and after
  the Sale to the extent provided under paragraph (i) above and as to any
  portion that is not vested by operation of paragraph (i) above shall become
  vested from and after the Sale in

                                       11
<PAGE>

  accordance with the vesting schedule (determined without regard to any
  limitation deferring scheduled vesting until the date of a spin-off) that
  would have applied during the period beginning on the first day following
  ten (10) months after the date of the Sale, accelerated by ten (10) months.
  For the avoidance of doubt, in no event shall the assumed Award become
  vested for more than the total number of Shares subject thereto. If the
  acquiror entity or an affiliate thereof provides a substitute Award in lieu
  of assuming an affected Award, such substitute Award shall vest in the same
  manner as it would have vested had it been an assumed Award.

     (iii) For purposes of this subsection (b), a "Sale" of the Company shall
  be deemed to have occurred if:

         (A) Prior to a spin-off of the Company, Cabletron sells or
    otherwise disposes of (including without limitation by merger) all or
    substantially all of the stock of the Company that Cabletron owns, or
    the Company sells or otherwise disposes of all or substantially all of
    its assets, to an unrelated person or to one or more unrelated persons
    acting as a group. For the avoidance of doubt, none of the following
    shall constitute a Sale under the preceding sentence: (1) a spin-off;
    (2) a liquidation or merger of the Company into Cabletron or into
    another subsidiary of Cabletron; (3) any other reorganization of the
    Company or other transaction that results in Cabletron's continuing to
    own, directly or indirectly, a majority of the combined voting power of
    all outstanding shares of stock or other equity interests of the
    Company or of the entity resulting from such reorganization or other
    transaction; or (4) a disposition by Cabletron of stock of the Company,
    or by the Company of its stock, in a public offering; or

         (B) Following a spin-off of the Company:

           (1) any Person (defined for the purpose of this Section
      9(b)(iii)(B) as any individual, entity or other person, including a
      group within the meaning of Section 13(d) or 14(d)(2) of the 1934
      Act) acquires beneficial ownership (within the meaning of Rule 13d-3
      promulgated under the 1934 Act) of 30% or more of either (I) the
      then outstanding shares of common stock of the Company (the
      "Outstanding Company Common Stock") or (II) the combined voting
      power of the then outstanding voting securities of the Company
      entitled to vote generally in the election of directors (the
      "Outstanding Company Voting Securities"); provided, that for
      purposes of this subsection (B)(1) the following acquisitions shall
      not constitute a Sale: (aa) any acquisition directly from the
      Company, (bb) any acquisition by the Company, (cc) any acquisition
      by an employee benefit plan (or related trust) sponsored or
      maintained by the Company or its direct or indirect subsidiaries, or
      (dd) any Business Combination as defined at paragraph (3) below (but
      except as provided in said paragraph (3) a Business Combination may
      nevertheless constitute a Sale under said paragraph (3)); and
      provided further, that an acquisition by a Person of 30% or more but
      less than 50% of the Outstanding Company Common Stock or of the
      combined voting power of the Outstanding Company Voting Securities
      shall not constitute a Sale under this subsection (B)(1) if within
      15 days of the Board's being advised that such ownership level has
      been reached, a majority of the "Incumbent Directors" (as
      hereinafter defined) then in office adopt a resolution approving the
      acquisition of that level of securities ownership by such Person; or

           (2) Individuals who, as of the first date following the spin-
      off (the "Spin Date"), constituted the Board (the "Incumbent
      Directors") cease for any reason to constitute at least a majority
      of the Board; provided, that any individual who becomes a member of
      the Board subsequent to the Spin Date and whose election or
      nomination for election was approved by a vote of at least two-
      thirds of the Incumbent Directors shall be treated as an Incumbent
      Director unless he or she assumed office as a result of an actual or
      threatened election contest with respect to the election or removal
      of directors; or

           (3) There is consummated a reorganization, merger or
      consolidation involving the Company, or a sale or other disposition
      of all or substantially all of the assets of the Company

                                       12
<PAGE>

      (a "Business Combination"), in each case unless, following such
      Business Combination, (I) the Persons who were the beneficial
      owners, respectively, of the Outstanding Company Common Stock and of
      the combined voting power of the Outstanding Company Voting
      Securities immediately prior to the Business Combination
      beneficially own, directly or indirectly, more than 50% of,
      respectively, the then outstanding shares of common stock and the
      combined voting power of the then outstanding voting securities
      entitled to vote generally in the election of directors, as the case
      may be, of the entity resulting from such Business Combination in
      substantially the same proportions as their ownership immediately
      prior to such Business Combination of the Outstanding Company Common
      Stock and of the combined voting power of the Outstanding Company
      Voting Securities, as the case may be, (II) no Person (excluding any
      entity resulting from such Business Combination or any employee
      benefit plan (or related trust) of the Employer or of such
      corporation resulting from such Business Combination) beneficially
      owns, directly or indirectly, 30% or more of, respectively, the then
      outstanding shares of common stock of the corporation resulting from
      such Business Combination or the combined voting power of the then
      outstanding voting securities of such corporation entitled to vote
      generally in the election of directors, except to the extent that
      such ownership existed prior to the Business Combination and (III)
      at least a majority of the members of the Board resulting from such
      Business Combination were Incumbent Directors at the time of the
      execution of the initial agreement, or of the action of the Board,
      providing for such Business Combination; or

         (4) The shareholders of the Company approve a complete
      liquidation or dissolution of the Company."

   (c) In the event that Cabletron, by action of its board of directors,
determines not to pursue its current intention to cause the Company to undergo
an initial public offering or determines not to pursue its current intention to
cause the Company to undergo a spin-off from Cabletron, it may provide (any
such action to be binding under the Plan) that Options then outstanding under
the Plan ("affected Options") shall be converted into Cabletron options. In the
event of any such conversion, the converted Cabletron options shall have such
provisions as are determined by Cabletron in its sole and absolute discretion
to be necessary to preserve insofar as is practicable the incentive stock
option status of any affected Options that are incentive stock options and to
provide that (1) the aggregate amount of intrinsic value (that is, the
difference between the exercise price and the value of the underlying stock) in
the Cabletron options immediately following conversion does not exceed the
intrinsic value in the affected Options immediately before the conversion and
that (2) the ratio of the exercise price to the value of the underlying stock
is not reduced. The new Cabletron options shall have the same vesting and
exercisability provisions as the affected Options to which they relate
(determined without regard to any limitation on vesting or exercisability that
is dependent upon an initial public offering or spin-off of the Company),
subject to special rules in the event of a sale or merger of Cabletron. In the
event that the Company is not a public company at the time of the conversion
described above, the determination of the value of the Company stock shall be
made by Cabletron in its sole and absolute discretion. In the event that
Cabletron, by action of its board of directors, determines not to pursue its
current intention to cause the Company to undergo an initial public offering or
determines not to pursue its current intention to cause the Company to undergo
a spin-off from Cabletron, and if any Awards other than Options are then
outstanding ("affected non-Option Awards"), Cabletron shall provide with
respect to such affected non-Option Awards such substitute or replacement
awards, including cash awards, if any, as Cabletron in its sole and absolute
discretion may determine to be equitable under the circumstances. In the event
that Cabletron, by action of its board of directors, determines not to pursue
its current intention to cause the Company to undergo a spin-off from
Cabletron, and in connection therewith determines that the provisions of this
sentence shall apply, any vesting provisions of Options then outstanding under
the Plan shall, from and after such date as shall be specified by the board of
directors of Cabletron, be determined without regard to any limitation
deferring scheduled vesting until the date of a spin-off.

                                       13
<PAGE>

10. Effect, Amendment and Termination

   Neither adoption of the Plan nor the grant of Awards to a Participant will
affect the Company's right to grant to such Participant awards that are not
subject to the Plan, to issue to such Participant Stock as a bonus or
otherwise, or to adopt other plans or arrangements under which Stock may be
issued to Employees.

   The Committee may at any time or times amend the Plan or any outstanding
Award for any purpose which may at the time be permitted by law, or may at any
time terminate the Plan as to any further grants of Awards, provided that
(except to the extent expressly required or permitted by the Plan) no such
amendment will, without the approval of the stockholders of the Company,
effectuate a change for which stockholder approval is required in order for the
Plan to continue to qualify for the award of ISOs under Section 422 of the Code
or for the award of performance-based compensation under Section 162(m) of the
Code.

                                       14

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