Document:

sec document

                                                                   Exhibit 10.62

After recording please return:

Mayer, Brown, Rowe & Maw LLP
1675 Broadway
New York, New York  10019
Attention:  Ronald S. Brody, Esq.

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                          MORTGAGE, SECURITY AGREEMENT,
                         ASSIGNMENT OF LEASES AND RENTS,
                               AND FIXTURE FILING

                                     made by

                      MONTICELLO RACEWAY MANAGEMENT, INC.,

                                   Mortgagor,

                                       to

                              THE BANK OF NEW YORK,

                   as Trustee and Collateral Agent, Mortgagee

THIS INSTRUMENT  AFFECTS REAL AND PERSONAL PROPERTY SITUATED IN THE STATE OF NEW
YORK, COUNTY OF SULLIVAN,  KNOWN BY THE STREET ADDRESS OF ST. REGIS TRUST PARCEL
(232 ACRES MORE OR LESS)  MONTICELLO,  NEW YORK.
THIS MORTGAGE  CONSTITUTES A FINANCING  STATEMENT FILED AS A FIXTURE FILING, AND
IS TO BE FILED AND INDEXED IN THE REAL ESTATE  RECORDS AND ALSO TO BE INDEXED IN
THE  INDEX  OF  FINANCING  STATEMENTS  (FIXTURE  FILINGS)  UNDER  THE  NAMES  OF
MORTGAGOR,  AS "DEBTOR," AND MORTGAGEE, AS "SECURED PARTY." SEE GRANTING CLAUSES
AND SECTION 18 OF THIS INSTRUMENT FOR DESCRIPTION OF FIXTURES AND OTHER DETAILS.
THIS  MORTGAGE  DOES NOT  COVER  REAL  PROPERTY  PRINCIPALLY  IMPROVED  OR TO BE
IMPROVED BY ONE OR MORE STRUCTURES CONTAINING IN THE AGGREGATE NOT MORE THAN SIX
RESIDENTIAL  DWELLING UNITS EACH HAVING THEIR OWN SEPARATE  COOKING  FACILITIES.
THE "MAXIMUM  PRINCIPAL  AMOUNT"  SECURED BY THIS MORTGAGE IS  $65,000,000  (SEE
SECTION 33 FOR THE MAXIMUM TOTAL AMOUNT THAT THIS MORTGAGE SECURES). Dated as of
March 22, 2006

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                                TABLE OF CONTENTS

                                                                            PAGE

Background....................................................................1
Granting Clauses..............................................................2
Terms and Conditions..........................................................4

    1.   Warranty of Title....................................................4
    2.   Payment of Obligations...............................................5
    3.   Requirements.........................................................5
    4.   Payment of Taxes and Other Impositions...............................5
    5.   Insurance............................................................6
    6.   Restrictions on Liens and Encumbrances...............................7
    7.   Due on Sale and Other Transfer Restrictions..........................7
    8.   Casualty; Condemnation/Eminent Domain................................7
    9.   Leases...............................................................8
    10.  Repair...............................................................8
    11.  Further Assurances...................................................8
    12.  Mortgagee's Right to Perform.........................................8
    13.  Events of Default....................................................8
    14.  Remedies.............................................................8
    15.  Right of Mortgagee to Credit Sale...................................10
    16.  Appointment of Receiver.............................................10
    17.  Extension, Release, etc.............................................10
    18.  Security Agreement under Uniform Commercial Code....................11
    19.  Future Advances.....................................................12
    20.  Assignment of Rents.................................................12
    21.  Additional Rights...................................................13
    22.  Mortgagor's Indemnities.............................................13
    23.  No Liability of Mortgagee...........................................13
    24.  Notices.............................................................14
    25.  No Oral Modification................................................14
    26.  Partial Invalidity..................................................14
    27.  Mortgagor's Waiver of Rights........................................14
    28.  Remedies Not Exclusive..............................................15
    29.  Multiple Security...................................................15
    30.  Successors and Assigns..............................................16
    31.  No Waivers, etc.....................................................17
    32.  Governing Law, etc..................................................17
    33.  Certain Definitions.................................................17
    34.  Maximum Amount of Indebtedness......................................17
    35.  Last Dollars Secured; Priority......................................18
    36.  Release.............................................................18
    37.  Inconsistency with Indenture........................................18
    38.  Indenture...........................................................18
    39.  No Merger of Estates................................................18
    40.  No Partnership......................................................18
    41.  Limitation of Amount................................................19

                                      -i-

    42.  Future Assignments..................................................19
    43.  Lien Law............................................................19
    44.  Statutory Interpretation............................................19
    45.  Power of Sale.......................................................19
    46.  Multiple Parcels....................................................19
    47.  Headings............................................................20
    48.  Defense of Claims...................................................20
    49.  Exculpation Provisions..............................................20
    50.  Definitions.........................................................20
    51.  Incorporation by Reference..........................................21
    52.  Intercreditor Agreement.............................................21

                          MORTGAGE, SECURITY AGREEMENT,
               ASSIGNMENT OF LEASES AND RENTS, AND FIXTURE FILING

          THIS MORTGAGE, SECURITY AGREEMENT, ASSIGNMENT OF LEASES AND RENTS, AND
FIXTURE  FILING,  dated  as of  March  22,  2006 is made by  MONTICELLO  RACEWAY
MANAGEMENT,  INC., a New York corporation (the "MORTGAGOR"),  with an address at
c/o Monticello Raceway,  Route 17B,  Monticello,  New York 12701, to THE BANK OF
NEW YORK, a New York banking corporation, as Collateral Agent (in such capacity,
the "MORTGAGEE"), with an address at 101 Barclay Street - 8W, New York, New York
10286,  Attn.:  Corporate  Trust  Administration.  References to this "MORTGAGE"
shall mean this instrument and any and all renewals, modifications,  amendments,
supplements,   extensions,   consolidations,    substitutions,   spreaders   and
replacements of this instrument.

                                   BACKGROUND

     A.   Mortgagor is a party to the Indenture, dated as of July 23, 2004 (as
amended, supplemented or otherwise modified from time to time, the "INDENTURE"),
among the Mortgagor, as the Issuer, the Guarantors named therein (each, a
"SUBSIDIARY GUARANTOR" and collectively together with the Company, the "CREDIT
PARTIES") and THE BANK OF NEW YORK, as Trustee (in such capacity, the "TRUSTEE")
and as Collateral Agent.

     B.   Pursuant to the terms of the Indenture, the Mortgagor is issuing SIXTY
FIVE MILLION AND NO DOLLARS ($65,000,000) aggregate principal amount of 5 1/2%
Senior Notes due 2014 (the "NOTES"), which will be guaranteed on a senior basis,
in part, by each of the Credit Parties. The terms of the Indenture are
incorporated by reference in this Mortgage as if the terms thereof were fully
set forth herein. Capitalized terms not otherwise defined herein shall have the
meanings ascribed thereto in the Indenture. References in this Mortgage to the
"OVERDUE RATE" shall mean the applicable interest rate pursuant to the Indenture
for any overdue payment.

     C.   The Mortgagor is the owner of the fee simple estate in the parcel(s)
of real property described on EXHIBIT A attached hereto (the "OWNED LAND") and
owns, leases or otherwise has the right to use all of the buildings,
improvements, structures, and fixtures now or subsequently located on the Owned
Land (the "IMPROVEMENTS"; the Owned Land and the Improvements being collectively
referred to as the "REAL ESTATE").

     D.   As an inducement to the Trustee to enter into the Indenture and the
Initial Purchaser to purchase the Notes, the Mortgagor is executing and
delivering this Mortgage to the Mortgagee. References herein to the "SECURED
PARTIES" shall mean the collective reference to the Mortgagee, the Trustee, each
Holder and any holder of the Obligations (as hereinafter defined), and their
respective successors, endorsees, transferees and assigns.

                                GRANTING CLAUSES

          For good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Mortgagor agrees that to secure the payment

and performance of all obligations and liabilities of the Mortgagor and the
Credit Parties which may arise under or in connection with the Collateral
Agreements, in each case whether on account of reimbursement obligations, for
fees, indemnities, costs, expenses or otherwise (including, without limitation,
all fees and disbursements of counsel to the Mortgagee or to any Secured Party
that are required to be paid by the Mortgagee pursuant to the terms of this
Mortgage or any other Collateral Agreement) (collectively, the "OBLIGATIONS");

THE MORTGAGOR HEREBY GRANTS TO THE MORTGAGEE A LIEN UPON AND A SECURITY INTEREST
IN, AND HEREBY MORTGAGES AND WARRANTS, GRANTS, ASSIGNS, TRANSFERS AND SETS OVER
UNTO THE MORTGAGEE FOR THE USE AND BENEFIT OF THE MORTGAGEE, AS COLLATERAL
AGENT:

          (a)  the Owned Land;

          (b)  all right, title and interest the Mortgagor now has or may
     hereafter acquire in and to the Improvements or any part thereof (whether
     owned in fee by the Mortgagor or held pursuant to any Lease or otherwise)
     and all the estate, right, title, claim or demand whatsoever of the
     Mortgagor, in possession or expectancy, in and to the Real Estate or any
     part thereof;

          (c)  all right, title and interest of the Mortgagor in, to and under
     all easements, rights of way, licenses, operating agreements, abutting
     strips and gores of land, streets, ways, alleys, passages, sewer rights,
     waters, water courses, water and flowage rights, development rights, air
     rights, mineral and soil rights, plants, standing and fallen timber, and
     all estates, rights, titles, interests, privileges, licenses, tenements,
     hereditaments and appurtenances belonging, relating or appertaining to the
     Real Estate, and any reversions, remainders, rents, issues, profits and
     revenue thereof and all land lying in the bed of any street, road or
     avenue, in front of or adjoining the Real Estate to the center line
     thereof;

          (d)  all of the fixtures, chattels, business machines, machinery,
     apparatus, equipment, furnishings, fittings, appliances and articles of
     personal property of every kind and nature whatsoever, and all
     appurtenances and additions thereto and substitutions or replacements
     thereof (together with, in each case, attachments, components, parts and
     accessories) currently owned or subsequently acquired by the Mortgagor and
     now or subsequently attached to, or contained in or used or usable in any
     way in connection with any operation or letting of the Real Estate,
     including but without limiting the generality of the foregoing, all
     screens, awnings, shades, blinds, curtains, draperies, artwork, carpets,
     rugs, storm doors and windows, furniture and furnishings, heating,
     electrical, and mechanical equipment, lighting, switchboards, plumbing,
     ventilating, air conditioning and air-cooling apparatus, refrigerating, and
     incinerating equipment, escalators, elevators, loading and unloading
     equipment and systems, stoves, ranges, laundry equipment, cleaning systems
     (including window cleaning apparatus), telephones, communication systems
     (including satellite dishes and antennae), televisions, computers,
     sprinkler systems and other fire prevention and extinguishing apparatus and
     materials, security systems, motors, engines, machinery, pipes, pumps,
     tanks, conduits, appliances, fittings and fixtures of every kind and
     description (all of the foregoing in this paragraph (d) being referred to
     as the "EQUIPMENT");

                                       2

          (e)  all right, title and interest of the Mortgagor in and to all
     substitutes and replacements of, and all additions and improvements to, the
     Real Estate and the Equipment, subsequently acquired by or released to the
     Mortgagor or constructed, assembled or placed by the Mortgagor on the Real
     Estate, immediately upon such acquisition, release, construction,
     assembling or placement, including, without limitation, any and all
     building materials whether stored at the Real Estate or offsite, and, in
     each such case, without any further deed, conveyance, assignment or other
     act by the Mortgagor;

          (f)  all right, title and interest of the Mortgagor in, to and under
     all leases, subleases, underlettings, concession agreements, management
     agreements, licenses and other agreements relating to the use or occupancy
     of the Real Estate or the Equipment or any part thereof, now existing or
     subsequently entered into by the Mortgagor and whether written or oral and
     all guarantees of any of the foregoing (collectively, as any of the
     foregoing may be amended, restated, extended, renewed or modified from time
     to time, the "LEASES"), and all rights of the Mortgagor in respect of cash
     and securities deposited thereunder and the right to receive and collect
     the revenues, income, rents, issues and profits thereof, together with all
     other rents, royalties, issues, profits, revenue, income and other benefits
     arising from the use and enjoyment of the Mortgaged Property (as defined
     below) (collectively, the "RENTS");

          (g)  all unearned premiums under insurance policies now or
     subsequently obtained by the Mortgagor relating to the Real Estate or
     Equipment and the Mortgagor's interest in and to all proceeds of any such
     insurance policies (including title insurance policies) including the right
     to collect and receive such proceeds, subject to the provisions relating to
     insurance generally set forth below; and all awards and other compensation,
     including the interest payable thereon and the right to collect and receive
     the same, made to the present or any subsequent owner of the Real Estate or
     Equipment for the taking by eminent domain, condemnation or otherwise, of
     all or any part of the Real Estate or any easement or other right therein;

          (h)  to the extent not expressly prohibited under the applicable
     contract, consent, license or other item unless the appropriate consent has
     been obtained, all right, title and interest of the Mortgagor in and to (i)
     all contracts from time to time executed by the Mortgagor or any manager or
     agent on its behalf relating to the ownership, construction, maintenance,
     repair, operation, occupancy, sale or financing of the Real Estate or
     Equipment or any part thereof and all agreements and options relating to
     the purchase or lease of any portion of the Real Estate, together with the
     right to exercise such options and all leases of Equipment, (ii) all
     consents, licenses, building permits, certificates of occupancy and other
     governmental approvals relating to construction, completion, occupancy, use
     or operation of the Real Estate or any part thereof, and (iii) all
     drawings, plans, specifications and similar or related items relating to
     the Real Estate; and

          (i)  all proceeds, both cash and noncash, of the foregoing;

                                       3

          (All of the foregoing property and rights and interests now owned or
held or subsequently acquired by the Mortgagor and described in the foregoing
clauses (a) through (c) are collectively referred to as the "PREMISES", and
those described in the foregoing clauses (a) through (i) are collectively
referred to as the "MORTGAGED PROPERTY").

          TO HAVE AND TO HOLD the Mortgaged Property and the rights and
privileges hereby mortgaged unto the Mortgagee, its successors and assigns for
the uses and purposes set forth, until the Obligations are discharged in
accordance with Section 12.01 of the Indenture, PROVIDED, HOWEVER, that the
condition of this Mortgage is such that if the Obligations are so discharged,
then the estate hereby granted shall cease, terminate and become void, but shall
otherwise remain in full force and effect. Notwithstanding anything to the
contrary contained herein, the Lien of this Mortgage shall be released in
compliance with the terms of the Indenture.

          This Mortgage covers advances, in the aggregate amount of the
obligations secured hereby, made by the Secured Parties for the benefit of the
Mortgagor.

                              TERMS AND CONDITIONS

          The Mortgagor further represents, warrants, covenants and agrees with
the Mortgagee and the Secured Parties as follows:

     1.   WARRANTY OF TITLE. The Mortgagor warrants that it has good and
marketable record title in fee simple to the Real Estate, and good title to the
rest of the Mortgaged Property, subject only to the matters that are set forth
in Schedule B of the title insurance policy or policies being issued to the
Mortgagee to insure the lien of this Mortgage and any other Permitted Liens (as
defined in the Indenture). The Mortgagor shall warrant, defend and preserve such
title and the lien of this Mortgage against all claims of all persons and
entities (not including the holders of the Permitted Liens). The Mortgagor
represents and warrants that it has the power and lawful authority to grant,
bargain, sell, assign, transfer, mortgage and convey a mortgage lien and
security interest in all of the Mortgaged Property to the Mortgagee in the
manner and form herein provided and without obtaining the authorization,
approval, consent or waiver of any grantor, lessor, sublessor, governmental
authority or other Person whomsoever.

     2.   PAYMENT OF OBLIGATIONS. The Mortgagor shall pay and perform the
Obligations at the times and places and in the manner specified in the
Collateral Agreements.

     3.   REQUIREMENTS. The Mortgagor shall promptly comply with all laws,
ordinances, judgments, decrees, injunctions, writs and orders of any court,
arbitrator or governmental agency or authority, and all rules, regulations,
orders, interpretations, directives, licenses and permits, applicable to the
Mortgaged Property, and all covenants, restrictions and conditions now or later
of record which may be applicable to any of the Mortgaged Property, or to the
use, manner of use, occupancy, possession, operation, maintenance, alteration,
repair or reconstruction of any of the Mortgaged Property. The Mortgagor shall
not commit, nor permit or suffer to occur, any material waste with respect to
the Mortgaged Property.

     4.   PAYMENT OF TAXES AND OTHER IMPOSITIONS. (a) Promptly when due or prior
to the date on which any fine, penalty, interest or cost may be added thereto or
imposed, the Mortgagor shall pay and discharge all taxes, charges and
assessments of every kind and nature, all charges for any easement or agreement

                                       4

maintained for the benefit of any of the Real Estate, all general and special
assessments, levies, permits, inspection and license fees, all water and sewer
rents and charges, vault taxes and all other public charges even if unforeseen
or extraordinary, imposed upon or assessed against or which may become a lien on
any of the Real Estate, or arising in respect of the occupancy, use or
possession thereof, together with any penalties or interest on any of the
foregoing (all of the foregoing are collectively referred to herein as the
"IMPOSITIONS"), except where (i) the validity or amount thereof is being
contested in good faith by appropriate proceedings, which the Mortgagee
determines suspends the obligation to pay the Imposition and that non-payment
thereof will not result in forfeiture, sale, loss or diminution of any interest
of the Mortgagee in the Mortgaged Property and (ii) the Mortgagor has set aside
on its books adequate reserves with respect thereto in accordance with GAAP,
which reserves shall include reasonable additional sums to cover possible
interest, costs, and penalties; PROVIDED, HOWEVER, that the Mortgagor shall
promptly cause to be paid any amount adjudged by a court of competent
jurisdiction to be due, with all interest, costs and penalties thereon, promptly
after such judgment becomes final (and, subject to the Mortgagee's rights and
remedies during an Event of Default and subject to any provisions set forth in
the Collateral Agreements to the contrary, the Mortgagee shall make any sum
deposited in such reserve available for such payment); and provided, further,
that, in all events, Impositions, interest costs and penalties shall be paid
prior to the date any writ or order is issued under which the Mortgaged Property
may be sold, lost or forfeited. Upon request by the Mortgagee, the Mortgagor
shall deliver to the Mortgagee evidence reasonably acceptable to the Mortgagee
showing the payment of any such Imposition. If by law any Imposition, at the
Mortgagor's option, may without penalty or premium be paid in installments
(whether or not interest shall accrue on the unpaid balance of such Imposition),
the Mortgagor may elect to pay such Imposition in such installments and shall be
responsible for the payment of such installments with interest, if any.

          (b)  Nothing herein shall affect any right or remedy of the Mortgagee
under this Mortgage or otherwise, without notice or demand to the Mortgagor, to
pay any Imposition after the date such Imposition shall have become due, and add
to the Obligations the amount so paid, together with interest from the time of
payment at the Overdue Rate. Any sums paid by the Mortgagee in discharge of any
Impositions shall be (i) a lien on the Premises secured hereby prior to any
right or title to, interest in, or claim upon the Premises subordinate to the
lien of this Mortgage, and (ii) payable on demand by the Mortgagor to the
Mortgagee together with interest at the Overdue Rate as set forth above.

          (c)  As of the date hereof, the Mortgagor represents and warrants that
the Mortgagor (i) has filed all federal, state, commonwealth, county, municipal
and city income and other material tax returns required to have been filed by it
and has paid all taxes and other impositions which have become due or pursuant
to any assessments or charges received by it, (ii) does not know of any basis
for any additional assessment or charge in respect of any such taxes or other
Impositions, and (iii) has paid in full all sums owing or claimed for labor,
material, supplies, personal property (whether or not forming an Improvement
hereunder) and services of every kind and character used, furnished or installed
in or on the Mortgaged Property that are now due and owing and no claim for same
exists or will be permitted to be created, except such claims as may arise in
the ordinary course of business and that are not yet past due.

                                       5

     5.   INSURANCE. (a) The Mortgagor promptly shall comply with and conform in
all material respects to (i) all provisions of each such insurance policy, and
(ii) all requirements of the insurers applicable to the Mortgagor or to any of
the Mortgaged Property or to the use, manner of use, occupancy, possession,
operation, maintenance, alteration or repair of any of the Mortgaged Property.
The Mortgagor shall not use or permit the use of the Mortgaged Property in any
manner which would permit any insurer to cancel any insurance policy or void
coverage required to be maintained by this Mortgage.

          (b)  In the event of foreclosure of this Mortgage or other transfer of
title to the Mortgaged Property, all right, title and interest of the Mortgagor
in and to any insurance policies then in force shall pass to the purchaser or
grantee.

     6.   RESTRICTIONS ON LIENS AND ENCUMBRANCES. Except for the Permitted
Liens, the Mortgagor shall not further mortgage, nor otherwise encumber the
Mortgaged Property nor create or suffer to exist any lien, charge or encumbrance
on the Mortgaged Property, or any part thereof, whether superior or subordinate
to the lien of this Mortgage and whether recourse or non-recourse.

     7.   DUE ON SALE AND OTHER TRANSFER RESTRICTIONS. Except as expressly
permitted in the Collateral Agreements, the Mortgagor shall not sell, transfer,
convey or assign all or any portion of, or any interest in, the Mortgaged
Property.

     8.   CASUALTY; CONDEMNATION/EMINENT DOMAIN. Immediately upon obtaining
knowledge of any casualty or the institution of any proceedings for the
condemnation of the Mortgaged Property, or any material portion thereof, the
Mortgagor will notify the Mortgagee of the pendency of such proceedings. In all
events, the Mortgagor hereby covenants and agrees to promptly commence and to
diligently prosecute the restoration of the Mortgaged Property upon the
occurrence of any casualty loss affecting the Mortgaged Property, without regard
to the availability of any proceeds or award. Notwithstanding any damage to,
destruction or loss of or other casualty with respect to any of the Mortgaged
Property, the Mortgagor shall continue to pay the Obligations at the time and in
the manner provided for in the Indenture and the other Collateral Agreements,
until the Obligations have been paid in full. If the Mortgaged Property is sold,
through foreclosure or otherwise, prior to the receipt by the Mortgagee of such
insurance proceeds, the Mortgagee shall have the right, whether or not a
deficiency judgment on any Collateral Agreement shall have been sought,
recovered or denied, to receive such insurance proceeds, or a portion thereof
sufficient to pay the then unpaid Obligations, whichever is less.

     9.   LEASES. Except as expressly permitted under the Indenture, the
Mortgagor shall not (a) execute an assignment or pledge of any Lease relating to
all or any portion of the Mortgaged Property other than in favor of the
Mortgagee, (b) execute or permit to exist any Lease of any of the Mortgaged
Property, or (c) mortgage, pledge, assign, hypothecate, amend, modify, or
otherwise encumber or transfer any Lease or any interest in any Lease.

     10.  FURTHER ASSURANCES. To further assure the Mortgagee's rights under
this Mortgage, the Mortgagor agrees promptly upon demand of the Mortgagee to do
any act or execute and deliver, record and/or file any additional documents
(including, but not limited to, security agreements on any personalty included
or to be included in the Mortgaged Property and a separate assignment of each

                                       6

Lease in recordable form) as may be reasonably required by the Mortgagee to
confirm the lien of this Mortgage and all other rights or benefits conferred on
the Mortgagee by this Mortgage.

     11.  MORTGAGEE'S RIGHT TO PERFORM. If an Event of Default has occurred and
is continuing, the Mortgagee, without waiving or releasing the Mortgagor from
any obligation or default under this Mortgage, may, pay or perform the same, and
the amount or cost thereof, with interest at the Overdue Rate, shall immediately
upon written demand be due from the Mortgagor to the Mortgagee and the same
shall be secured by this Mortgage and shall be a lien on the Mortgaged Property
prior to any right, title to, interest in, or claim upon the Mortgaged Property
attaching subsequent to the lien of this Mortgage. No payment or advance of
money by the Mortgagee under this Section shall be deemed or construed to cure
the Mortgagor's default or waive any right or remedy of the Mortgagee.

     12.  EVENTS OF DEFAULT. The occurrence of an Event of Default under any of
the Collateral Agreements shall constitute an Event of Default hereunder.

     13.  REMEDIES. (a) Upon the occurrence and during the continuance of any
Event of Default, the Mortgagee may immediately take such action, without notice
or demand, under the Collateral Agreements and otherwise as it deems advisable
to protect and enforce its rights against the Mortgagor and in and to the
Mortgaged Property, including, but not limited to, the following actions, each
of which may be pursued concurrently or otherwise, at such time and in such
manner as the Mortgagee may determine, in its sole discretion, without impairing
or otherwise affecting the other rights and remedies of the Mortgagee:

               (i)  The Mortgagee may, to the extent permitted by applicable
          law, (A) institute and maintain an action of mortgage foreclosure
          against all or any part of the Mortgaged Property, (B) institute and
          maintain an action on the Indenture or any other Collateral Agreement,
          or (C) take such other action at law or in equity for the enforcement
          of this Mortgage or any of the Collateral Agreements as the law may
          allow. The Mortgagee may proceed in any such action to final judgment
          and execution thereon for all sums due hereunder, together with
          interest thereon at the Overdue Rate and all costs of suit, including,
          without limitation, reasonable attorneys' fees and disbursements.
          Interest at the Overdue Rate shall be due on any judgment obtained by
          the Mortgagee from the date of judgment until actual payment is made
          of the full amount of the judgment; and

               (ii) The Mortgagee may personally, or by its agents, attorneys
          and employees and without regard to the adequacy or inadequacy of the
          Mortgaged Property or any other collateral as security for the
          Obligations enter into and upon the Mortgaged Property and each and
          every part thereof and exclude the Mortgagor and its agents and
          employees therefrom without liability for trespass, damage or
          otherwise (the Mortgagor hereby agreeing to surrender possession of
          the Mortgaged Property to the Mortgagee upon demand at any such time)
          and use, operate, manage, maintain and control the Mortgaged Property
          and every part thereof. Following such entry and taking of possession,
          the Mortgagee shall be entitled, without limitation, (A) to lease all
          or any part or parts of the Mortgaged Property for such periods of

                                       7

          time and upon such conditions as the Mortgagee may, in its discretion,
          deem proper, (B) to enforce, cancel or modify any Lease and (C)
          generally to execute, do and perform any other act, deed, matter or
          thing concerning the Mortgaged Property as the Mortgagee shall deem
          appropriate as fully as the Mortgagor might do.

          (b)  In case of a foreclosure sale, the Real Estate may be sold, at
the Mortgagee's election, in one parcel or in more than one parcel and the
Mortgagee is specifically empowered (without being required to do so, and in its
sole and absolute discretion) to cause successive sales of portions of the
Mortgaged Property to be held.

          (c)  In the event of any breach of any of the covenants, agreements,
terms or conditions contained in this Mortgage, the Mortgagee shall be entitled
to enjoin such breach and obtain specific performance of any covenant,
agreement, term or condition and the Mortgagee shall have the right to invoke
any equitable right or remedy as though other remedies were not provided for in
this Mortgage.

          (d)  It is agreed that if an Event of Default shall occur and be
continuing, any and all proceeds of the Mortgaged Property received by the
Mortgagee shall be held by the Mortgagee for the benefit of the Secured Parties
as collateral security for the Obligations (whether matured or unmatured), and
shall be applied in payment of the Obligations in the order set forth in Section
6.10 of the Indenture.

     14.  RIGHT OF MORTGAGEE TO CREDIT SALE. Upon the occurrence of any sale
made under this Mortgage, by virtue of judicial proceedings or of a judgment or
decree of foreclosure and sale, the Mortgagee may bid for and acquire the
Mortgaged Property or any part thereof. In lieu of paying cash therefor, the
Mortgagee may make settlement for the purchase price by crediting upon the
Obligations or other sums secured by this Mortgage, the net sales price after
deducting therefrom the expenses of sale and the cost of the action and any
other sums which the Mortgagee is authorized to deduct under this Mortgage. In
such event, this Mortgage, the Indenture and the other Collateral Agreements
evidencing expenditures secured hereby may be presented to the person or persons
conducting the sale in order that the amount so used or applied may be credited
upon the Obligations as having been paid.

     15.  APPOINTMENT OF RECEIVER. If an Event of Default shall have occurred
and be continuing, the Mortgagee as a matter of right and without notice to the
Mortgagor, unless otherwise required by applicable law, and without regard to
the adequacy or inadequacy of the Mortgaged Property or any other collateral or
the interest of the Mortgagor therein as security for the Obligations, shall
have the right to apply to any court having jurisdiction to appoint a receiver
or receivers or other manager of the Mortgaged Property, without requiring the
posting of a surety bond, and without reference to the adequacy or inadequacy of
the value of the Mortgaged Property or the solvency or insolvency of the
Mortgagor or any other party obligated for payment of all or any part of the
Obligations, and whether or not waste has occurred with respect to the Mortgaged
Property, and the Mortgagor hereby irrevocably consents to such appointment and
waives notice of any application therefor (except as may be required by law).
Any such receiver or receivers or manager shall have all the usual powers and
duties of receivers in like or similar cases and all the powers and duties of
the Mortgagee in case of entry as provided in this Mortgage, including, without

                                       8

limitation and to the extent permitted by law, the right to enter into leases of
all or any part of the Mortgaged Property, and shall continue as such and
exercise all such powers until the date of confirmation of sale of the Mortgaged
Property unless such receivership is sooner terminated.

     16.  EXTENSION, RELEASE, ETC. (a) Without affecting the lien or charge of
this Mortgage upon any portion of the Mortgaged Property not then or theretofore
released as security for the full amount of the Obligations, the Mortgagee may,
from time to time and without notice, agree to (i) release any person liable for
the indebtedness borrowed or guaranteed under the Collateral Agreements, (ii)
extend the maturity or alter any of the terms of the indebtedness borrowed or
guaranteed under the Collateral Agreements or any other guaranty thereof, (iii)
grant other indulgences, (iv) release or reconvey, or cause to be released or
reconveyed at any time at the Mortgagee's option any parcel, portion or all of
the Mortgaged Property, (v) take or release any other or additional security for
any obligation herein mentioned, or (vi) make compositions or other arrangements
with debtors in relation thereto.

          (b)  No recovery of any judgment by the Mortgagee and no levy of an
execution under any judgment upon the Mortgaged Property or upon any other
property of the Mortgagor shall affect the lien of this Mortgage or any liens,
rights, powers or remedies of the Mortgagee hereunder, and such liens, rights,
powers and remedies shall continue unimpaired.

          (c)  If the Mortgagee shall have the right to foreclose this Mortgage
or to direct a power of sale, the Mortgagor authorizes the Mortgagee at its
option to foreclose the lien of this Mortgage (or direct the sale of the
Mortgaged Property, as the case may be) subject to the rights of any tenants of
the Mortgaged Property. The failure to make any such tenants parties defendant
to any such foreclosure proceeding and to foreclose their rights, or to provide
notice to such tenants as required in any statutory procedure governing a sale
of the Mortgaged Property, or to terminate such tenant's rights in such sale
will not be asserted by the Mortgagor as a defense to any proceeding instituted
by the Mortgagee to collect the Obligations or to foreclose the lien of this
Mortgage.

          (d)  Unless expressly provided otherwise, in the event that ownership
of this Mortgage and title to the Mortgaged Property or any estate therein shall
become vested in the same person or entity, this Mortgage shall not merge in
such title but shall continue as a valid lien on the Mortgaged Property for the
amount secured hereby.

     17.  SECURITY AGREEMENT UNDER UNIFORM COMMERCIAL CODE. (a) It is the
intention of the parties hereto that this Mortgage shall constitute a Security
Agreement within the meaning of the UCC (as defined in the Uniform Commercial
Code of the State of New York (the "UCC"). If an Event of Default shall occur
and be continuing under this Mortgage, then in addition to having any other
right or remedy available at law or in equity, the Mortgagee shall have the
option of either (i) proceeding under the Code and exercising such rights and
remedies as may be provided to a secured party by the Code with respect to all
or any portion of the Mortgaged Property which is personal property (including,
without limitation, taking possession of and selling such property) or (ii)
treating such property as real property and proceeding with respect to both the
real and personal property constituting the Mortgaged Property in accordance
with the Mortgagee's rights, powers and remedies with respect to the real
property (in which event the default provisions of the Code shall not apply). If
the Mortgagee shall elect to proceed under the Code, then ten days' notice of

                                       9

sale of the personal property shall be deemed reasonable notice and the
reasonable expenses of retaking, holding, preparing for sale, selling and the
like incurred by the Mortgagee shall include, but not be limited to, attorneys'
fees and legal expenses. At the Mortgagee's request, the Mortgagor shall
assemble the personal property and make it available to the Mortgagee at a place
designated by the Mortgagee which is reasonably convenient to both parties.

          (b)  The Mortgagor and the Mortgagee agree, to the extent permitted by
law, that: (i) all of the goods described within the definition of the word
"Equipment" are or are to become fixtures on the Real Estate; (ii) this Mortgage
upon recording or registration in the real estate records of the proper office
shall constitute a financing statement filed as a "fixture filing" within the
meaning of Sections 9a-334 and 9a-502 of the Code; (iii) the Mortgagor is the
record owner of the Owned Land; and (iv) the addresses of the Mortgagor and the
Mortgagee are as set forth on the first page of this Mortgage.

          (c)  The information provided in this paragraph is provided in order
that this Mortgage shall comply with the requirements of applicable law for a
mortgage instrument to be filed as a financing statement. The Mortgagor is the
"Debtor" and its name and mailing address are set forth hereinabove. The
"Secured Party" is the Mortgagee and its name and mailing address from which
information concerning the security interest granted herein may be obtained are
as set forth hereinabove. A statement describing the portion of the Mortgaged
Property comprising of goods or other personal property that may now be or
hereafter become fixtures hereby secured is set forth in the description of the
Mortgaged Property contained herein. The Mortgagor is the record owner of the
Mortgaged Property.

          (d)  After written request, Mortgagor shall file all financing
statements necessary to perfect the Mortgagee's lien thereon. Additionally,
Mortgagor authorizes Mortgagee to file financing statements describing the
Mortgaged Property on the Mortgagors behalf; provided that the Mortgagee shall
not be responsible for the filing of any financing or continuation statement.

     18.  FUTURE ADVANCES. The lien of this Mortgage with respect to any future
advances and/or obligations up to a maximum of $65,000,000, modifications,
extensions, and renewals referred to herein and made from time to time shall
have the same priority to which this Mortgage otherwise would be entitled as of
the date this Mortgage is executed and recorded without regard to the fact that
any such future advance, obligation, modification, extension, or renewal may
occur after this Mortgage is executed.

     19.  ASSIGNMENT OF RENTS. (a) The Mortgagor hereby assigns to the Mortgagee
the Rents as further security for the payment of and performance of the
Obligations, and the Mortgagor grants to the Mortgagee the right to enter the
Mortgaged Property for the purpose of collecting the same and to let the
Mortgaged Property or any part thereof, and to apply the Rents on account of the
Obligations. The foregoing assignment and grant is present, irrevocable and
absolute and shall continue in effect until the Obligations are fully paid and
performed, but the Mortgagee hereby grants the Mortgagor a revocable license to
collect, receive, use and retain the Rents until the occurrence of an Event of
Default; such license to collect, receive, use and retain the Rents shall be
immediately and automatically revoked by the Mortgagee without the necessity of
any action of the Mortgagee upon the occurrence and during the continuance of
any Event of Default; in the event such license is revoked, the Mortgagor shall
pay over to the Mortgagee, or to any receiver appointed to collect the Rents,

                                       10

any lease security deposits, and shall pay monthly in advance to the Mortgagee,
or to any such receiver, the fair and reasonable rental value as determined by
the Mortgagee for the use and occupancy of such part of the Mortgaged Property
as may be in the possession of the Mortgagor or any affiliate of the Mortgagor,
and upon default in any such payment the Mortgagor and any such affiliate will
vacate and surrender the possession of the Mortgaged Property to the Mortgagee
or to such receiver, and in default thereof may be evicted by summary
proceedings or otherwise. The Mortgagor shall not accept prepayments of
installments of Rent to become due for a period of more than one month in
advance (except for security deposits and estimated payments of percentage rent,
if any).

          (b)  The Mortgagor has not affirmatively done any act which would
prevent the Mortgagee from, or limit the Mortgagee in, acting under any of the
provisions of the foregoing assignment.

          (c)  Except for any matter disclosed in the Collateral Agreements, no
action has been brought or, so far as is known to the Mortgagor, is threatened,
which would interfere in any way with the right of the Mortgagor to execute the
foregoing assignment and perform all of the Mortgagor's obligations contained in
this Section and in the Leases.

     20.  ADDITIONAL RIGHTS. The holder of any subordinate lien or subordinate
mortgage on the Mortgaged Property shall have no right to terminate any Lease
whether or not such Lease is subordinate to this Mortgage nor shall the
Mortgagor consent to any holder of any subordinate lien or subordinate mortgage
joining any tenant under any Lease in any action to foreclose the lien or
modify, interfere with, disturb or terminate the rights of any tenant under any
Lease. By recordation of this Mortgage all subordinate lienholders and the
mortgagees and beneficiaries under subordinate mortgages are subject to and
notified of this provision, and any action taken by any such lienholder or
beneficiary contrary to this provision shall be null and void. Upon the
occurrence and during the continuance of any Event of Default, the Mortgagee
may, in its sole discretion and without regard to the adequacy of its security
under this Mortgage, apply all or any part of any amounts on deposit with the
Mortgagee under this Mortgage against all or any part of the Obligations. Any
such application shall not be construed to cure or waive any Default or Event of
Default or invalidate any act taken by the Mortgagee on account of such Default
or Event of Default.

     21.  MORTGAGOR'S INDEMNITIES. The Mortgagor agrees to protect, indemnify
and hold harmless the Mortgagee and each Secured Party (collectively, the
"INDEMNITEES") from and against any and all losses which the Mortgagee or any
such Indemnitee may incur under or by reason of the assignment of Leases and
Rents, or for any action taken by the Mortgagee or any Lender or Indemnitee
hereunder, or by reason or in defense of any and all claims and demands
whatsoever which may be asserted against the Mortgagee or any such Indemnitee
arising out of the Leases, including, without limitation, any claim by any third
Person for credit on account of Rents paid to and received by the Mortgagor, but
not delivered to the Mortgagee or its agents, representatives or employees, for
any period under any Lease more than one (1) month in advance of the due date
thereof. In the event that the Mortgagee or any of the Secured Parties incurs

                                       11

any losses covered by the indemnity set forth in this Section, the amount
thereof, including reasonable attorneys' fees, with interest thereon at the
Overdue Rate, shall be payable by the Mortgagor to the Mortgagee within ten (10)
days after demand therefor, and shall be secured hereby and by all other
security for the payment and performance of the Obligations, including, without
limitation, the lien and security interest of this Mortgage. The liabilities of
the Mortgagor as set forth in this Section shall survive the termination of this
Mortgage and the repayment of the Obligations.

     22.  NO LIABILITY OF MORTGAGEE. Neither the acceptance nor the exercise of
the rights and remedies hereunder nor any other action on the part of Mortgagee
or any Person exercising Mortgagee's rights hereunder shall be construed to: (a)
be an assumption by Mortgagee or any such Person or to otherwise make Mortgagee
or such Person liable or responsible for the performance of any of the
obligations of Mortgagor under or with respect to the Leases or for any Rent,
security deposit or other amount delivered to Mortgagor, provided that Mortgagee
or any such Person exercising the rights of Mortgagee shall be accountable for
any Rents, security deposits or other amounts actually received by Mortgagee or
such Person, as the case may be; or (b) obligate Mortgagee or any such Person to
take any action under or with respect to the Leases or with respect to the
Mortgaged Property, to incur any expense or perform or discharge any duty or
obligation under or with respect to the Leases or with respect to the Mortgaged
Property, to appear in or defend any action or proceeding relating to the Leases
or the Mortgaged Property, to constitute Mortgagee as a mortgagee-in-possession
(unless Mortgagee actually enters and takes possession of the Mortgaged
Property), or to be liable in any way for any injury or damage to Persons or
property sustained by any Person in or about the Mortgaged Property, other than
to the extent caused by the willful misconduct or gross negligence of Mortgagee
or any Person exercising the rights of Mortgagee hereunder.

     23.  NOTICES. All notices, requests, demands and other communications
hereunder shall be given in accordance with the provisions of the Collateral
Agreements to the Mortgagor and to the Mortgagee as specified therein.

     24.  NO ORAL MODIFICATION. This Mortgage may not be amended, supplemented
or otherwise modified except in accordance with the provisions of the Collateral
Agreements. Any agreement made by the Mortgagor and the Mortgagee after the date
of this Mortgage relating to this Mortgage shall be superior to the rights of
the holder of any intervening or subordinate lien or encumbrance.

     25.  PARTIAL INVALIDITY. In the event any one or more of the provisions
contained in this Mortgage shall for any reason be held to be invalid, illegal
or unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect any other provision hereof, but each shall be construed as if
such invalid, illegal or unenforceable provision had never been included.
Notwithstanding to the contrary anything contained in this Mortgage or in any
provisions of any Collateral Agreement, the obligations of the Mortgagor and of
any other obligor under any Collateral Agreements shall be subject to the
limitation that the Mortgagee shall not charge, take or receive, nor shall the
Mortgagor or any other obligor be obligated to pay to the Mortgagee, any amounts
constituting interest in excess of the maximum rate permitted by law to be
charged by the Mortgagee.

                                       12

     26.  MORTGAGOR'S WAIVER OF RIGHTS. (a) The Mortgagor hereby voluntarily and
knowingly releases and waives any and all rights to retain possession of the
Mortgaged Property after the occurrence of an Event of Default hereunder and any
and all rights of redemption from sale under any order or decree of foreclosure
(whether full or partial), pursuant to rights, if any, therein granted, as
allowed under any applicable law, on its own behalf, on behalf of all persons
claiming or having an interest (direct or indirectly) by, through or under each
constituent of the Mortgagor and on behalf of each and every person acquiring
any interest in the Mortgaged Property subsequent to the date hereof, it being
the intent hereof that any and all such rights or redemption of each constituent
of the Mortgagor and all such other persons are and shall be deemed to be hereby
waived to the fullest extent permitted by applicable law or replacement statute.
Each constituent of the Mortgagor shall not invoke or utilize any such law or
laws or otherwise hinder, delay, or impede the execution of any right, power, or
remedy herein or otherwise granted or delegated to the Mortgagee, but shall
permit the execution of every such right, power, and remedy as though no such
law or laws had been made or enacted.

          (b)  To the fullest extent permitted by law, the Mortgagor waives the
benefit of all laws now existing or that may subsequently be enacted providing
for (i) any appraisement before sale of any portion of the Mortgaged Property,
(ii) any extension of the time for the enforcement of the collection of the
Obligations or the creation or extension of a period of redemption from any sale
made in collecting such debt and (iii) exemption of the Mortgaged Property from
attachment, levy or sale under execution or exemption from civil process. To the
full extent the Mortgagor may do so, the Mortgagor agrees that the Mortgagor
will not at any time insist upon, plead, claim or take the benefit or advantage
of any law now or hereafter in force providing for any appraisement, valuation,
stay, exemption, extension or redemption, or requiring foreclosure of this
Mortgage before exercising any other remedy granted hereunder and the Mortgagor,
for the Mortgagor and its successors and assigns, and for any and all persons
ever claiming any interest in the Mortgaged Property, to the extent permitted by
law, hereby waives and releases all rights of redemption, valuation,
appraisement, stay of execution, notice of election to mature (except as
expressly provided in the Collateral Agreements) or declare due the whole of the
secured indebtedness and marshalling in the event of exercise by the Mortgagee
of the foreclosure rights, power of sale, or other rights hereby created.

     27.  REMEDIES NOT EXCLUSIVE. The Mortgagee shall be entitled to enforce
payment and performance of the Obligations and to exercise all rights and powers
under this Mortgage or under any of the other Collateral Agreements or other
agreement or any laws now or hereafter in force, notwithstanding some or all of
the Obligations may now or hereafter be otherwise secured, whether by deed of
trust, mortgage, security agreement, pledge, lien, assignment or otherwise.
Neither the acceptance of this Mortgage nor its enforcement, shall prejudice or
in any manner affect the Mortgagee's rights to realize upon or enforce any other
security now or hereafter held by the Mortgagee, it being agreed that the
Mortgagee shall be entitled to enforce this Mortgage and any other security now
or hereafter held by the Mortgagee in such order and manner as the Mortgagee may
determine in its absolute discretion. No remedy herein conferred upon or
reserved to the Mortgagee is intended to be exclusive of any other remedy herein
or by law provided or permitted, but each shall be cumulative and shall be in
addition to every other remedy given hereunder or now or hereafter existing at
law or in equity or by statute. Every power or remedy given by any of the
Collateral Agreements to the Mortgagee or to which either may otherwise be

                                       13

entitled, may be exercised, concurrently or independently, from time to time and
as often as may be deemed expedient by the Mortgagee, as the case may be. In no
event shall the Mortgagee, in the exercise of the remedies provided in this
Mortgage (including, without limitation, in connection with the assignment of
Rents to the Mortgagee, or the appointment of a receiver and the entry of such
receiver on to all or any part of the Mortgaged Property), be deemed a
"mortgagee in possession," and the Mortgagee shall not in any way be made liable
for any act, either of commission or omission, in connection with the exercise
of such remedies.

     28.  MULTIPLE SECURITY. If (a) the Premises shall consist of one or more
parcels, whether or not contiguous and whether or not located in the same
county, or (b) in addition to this Mortgage, the Mortgagee shall now or
hereafter hold or be the beneficiary of one or more additional mortgages, liens,
deeds of trust or other security (directly or indirectly) for the Obligations
upon other property in the State in which the Premises are located (whether or
not such property is owned by the Mortgagor or by others) or (c) both the
circumstances described in clauses (a) and (b) shall be true, then to the
fullest extent permitted by law, the Mortgagee may, at its election, commence or
consolidate in a single foreclosure action all foreclosure proceedings against
all such collateral securing the Obligations (including the Mortgaged Property),
which action may be brought or consolidated in the courts of, or sale conducted
in, any county in which any of such collateral is located. The Mortgagor
acknowledges that the right to maintain a consolidated foreclosure action is a
specific inducement to the Mortgagee to extend the indebtedness borrowed
pursuant to or guaranteed by the Collateral Agreements, and the Mortgagor
expressly and irrevocably waives any objections to the commencement or
consolidation of the foreclosure proceedings in a single action and any
objections to the laying of venue or based on the grounds of forum non
conveniens which it may now or hereafter have. The Mortgagor further agrees that
if the Mortgagee shall be prosecuting one or more foreclosure or other
proceedings against a portion of the Mortgaged Property or against any
collateral other than the Mortgaged Property, which collateral directly or
indirectly secures the Obligations, or if the Mortgagee shall have obtained a
judgment of foreclosure and sale or similar judgment against such collateral,
then, whether or not such proceedings are being maintained or judgments were
obtained in or outside the State in which the Premises are located, the
Mortgagee may commence or continue any foreclosure proceedings and exercise its
other remedies granted in this Mortgage against all or any part of the Mortgaged
Property and the Mortgagor waives any objections to the commencement or
continuation of a foreclosure of this Mortgage or exercise of any other remedies
hereunder based on such other proceedings or judgments, and waives any right to
seek to dismiss, stay, remove, transfer or consolidate either any action under
this Mortgage or such other proceedings on such basis. Neither the commencement
nor continuation of proceedings to foreclose this Mortgage, nor the exercise of
any other rights hereunder nor the recovery of any judgment by the Mortgagee in
any such proceedings or the occurrence of any sale in any such proceedings shall
prejudice, limit or preclude the Mortgagee's right to commence or continue one
or more foreclosure or other proceedings or obtain a judgment against any other
collateral (either in or outside the State in which the Premises are located)
which directly or indirectly secures the Obligations, and the Mortgagor
expressly waives any objections to the commencement of, continuation of, or
entry of a judgment in such other sales or proceedings or exercise of any
remedies in such sales or proceedings based upon any action or judgment
connected to this Mortgage, and the Mortgagor also waives any right to seek to

                                       14

dismiss, stay, remove, transfer or consolidate either such other sales or
proceedings or any sale or action under this Mortgage on such basis. It is
expressly understood and agreed that to the fullest extent permitted by law, the
Mortgagee may, at its election, cause the sale of all collateral which is the
subject of a single foreclosure action at either a single sale or at multiple
sales conducted simultaneously and take such other measures as are appropriate
in order to effect the agreement of the parties to dispose of and administer all
collateral securing the Obligations (directly or indirectly) in the most
economical and least time-consuming manner.

     29.  SUCCESSORS AND ASSIGNS. All covenants of the Mortgagor contained in
this Mortgage are imposed solely and exclusively for the benefit of the
Mortgagee, and its successors and assigns, and no other person or entity shall
have standing to require compliance with such covenants or be deemed, under any
circumstances, to be a beneficiary of such covenants, any or all of which may be
freely waived in whole or in part by the Mortgagee at any time if in the sole
discretion of Mortgagee such a waiver is deemed advisable. All such covenants of
the Mortgagor shall run with the land and bind the Mortgagor, the successors and
assigns of the Mortgagor (and each of them) and all subsequent owners,
encumbrances and tenants of the Mortgaged Property, and shall inure to the
benefit of the Mortgagee and its successors and assigns. The word "Mortgagor"
shall be construed as if it read "Mortgagors" whenever the sense of this
Mortgage so requires and if there shall be more than one Mortgagor, the
obligations of the Mortgagors shall be joint and several.

     30.  NO WAIVERS, ETC. Any failure by the Mortgagee to insist upon the
strict performance by the Mortgagor of any of the terms and provisions of this
Mortgage shall not be deemed to be a waiver of any of the terms and provisions
hereof, and the Mortgagee, notwithstanding any such failure, shall have the
right thereafter to insist upon the strict performance by the Mortgagor of any
and all of the terms and provisions of this Mortgage to be performed by the
Mortgagor. The Mortgagee may release, regardless of consideration and without
the necessity for any notice to or consent by the holder of any subordinate lien
on the Mortgaged Property, any part of the security held for the obligations
secured by this Mortgage without, as to the remainder of the security, in any
way impairing or affecting the lien of this Mortgage or the priority of such
lien over any subordinate lien or deed of trust.

     31.  GOVERNING LAW, ETC. This Mortgage shall be governed by and construed
and interpreted in accordance with the laws of the State of New York.

     32.  CERTAIN DEFINITIONS. Unless the context clearly indicates a contrary
intent or unless otherwise specifically provided herein, words used in this
Mortgage shall be used interchangeably in singular or plural form and the word
"Mortgagor" shall mean "each Mortgagor or any subsequent owner or owners of the
Mortgaged Property or any part thereof or interest therein," the word
"Mortgagee" shall mean "Mortgagee or any successor agent for the Secured
Parties," the word "person" shall include any individual, corporation,
partnership, limited liability company, trust, unincorporated association,
government, governmental authority, or other entity, and the words "Mortgaged
Property" shall include any portion of the Mortgaged Property or interest
therein. Whenever the context may require, any pronouns used herein shall
include the corresponding masculine, feminine or neuter forms, and the singular
form of nouns and pronouns shall include the plural and vice versa. The captions

                                       15

in this Mortgage are for convenience or reference only and in no way limit or
amplify the provisions hereof.

     33.  MAXIMUM AMOUNT OF INDEBTEDNESS. Notwithstanding anything to the
contrary in this Mortgage, the maximum aggregate principal amount of
indebtedness that is, or under any contingency may be, secured by this Mortgage,
either at execution or any time thereafter (the "SECURED AMOUNT"), is
$65,000,000.00, plus amounts that Mortgagee expends under this Mortgage to the
extent that any such amounts shall constitute payment of (i) taxes, charges or
assessments that may be imposed by law upon the Mortgaged Property, (ii)
premiums on insurance policies covering the Mortgaged Property; (iii) expenses
incurred in upholding the lien of this Mortgage, including the expenses of any
litigation to prosecute or defend the rights and lien created by this Mortgage;
or (iv) any amount, cost or charge to which Mortgagee becomes subrogated, upon
payment, whether under recognized principles of law or equity, or under express
statutory authority; THEN, and in each such event, such amounts or costs,
together with interest thereon, shall be added to the indebtedness secured
hereby and shall be secured by this Mortgage.

     34.  LAST DOLLARS SECURED; PRIORITY. This Mortgage secures only a portion
of the indebtedness owing or which may become owing by the Mortgagor to the
Secured Parties. The parties agree that any payments or repayments of such
indebtedness shall be and be deemed to be applied first to the portion of the
indebtedness that is not secured hereby, it being the parties' intent that the
portion of the indebtedness last remaining unpaid shall be secured hereby. If at
any time this Mortgage shall secure less than all of the principal amount of the
Obligations, it is expressly agreed that any repayments of the principal amount
of the Obligations shall not reduce the amount of the lien of this Mortgage
until the lien amount shall equal the principal amount of the Obligations
outstanding.

     35.  RELEASE. If any of the Mortgaged Property shall be sold, transferred
or otherwise disposed of by any Mortgagor in a transaction permitted by, and in
accordance with, the Collateral Agreements, then the Mortgagee, at the request
and sole expense of such Mortgagor, shall execute and deliver to such Mortgagor
all releases or other documents reasonably necessary or desirable for the
release of the Liens created hereby on such Mortgaged Property. The Mortgagor
shall deliver to the Mortgagee, at least ten (10) Business Days prior to the
date of the proposed release, a written request for release identifying the sale
or other disposition in reasonable detail, including the price thereof and any
expenses in connection therewith, together with a certification by the Mortgagor
stating that such transaction is in compliance with, and permitted by, the
Indenture and the other Collateral Agreements.

     36.  INCONSISTENCY WITH INDENTURE. In the event of any conflict between the
terms of this Mortgage and the terms of the Indenture and/or the other
Collateral Agreements, the terms of the Indenture, first and the other
Collateral Agreements, second, shall govern and control.

     37.  INDENTURE. Mortgagor has received a copy of and is fully familiar with
the terms and provisions of the Indenture and the other Collateral Agreements.
All representations and warranties made by Mortgagor in the Indenture and the
other Collateral Agreements are incorporated herein by reference and are hereby

                                       16

made by Mortgagor as to itself and the Mortgaged Property as though such
representations and warranties were set forth at length herein as the
representations and warranties of Mortgagor.

     38.  NO MERGER OF ESTATES. So long as any part of the Obligations remain
unpaid, unperformed or undercharged, the fee, easement and leasehold estates to
the Mortgaged Property shall not merge but rather shall remain separate and
distinct, notwithstanding the union of such estates either in the Mortgagor, the
Mortgagee, any lessee, any third-party purchaser or otherwise.

     39.  NO PARTNERSHIP. Nothing contained in this Mortgage is intended to, or
shall be construed to, create to any extent and in any manner whatsoever any
partnership, joint venture, or association between the Mortgagor and the
Mortgagee, or in any way make the Mortgagee a co-principal with the Mortgagor
with reference to the Mortgaged Property, and any inferences to the contrary are
hereby expressly negated.

     40.  LIMITATION OF AMOUNT. Notwithstanding the foregoing, the maximum
principal amount of indebtedness that may be secured by this Mortgage is the
Maximum Principal Amount as set forth on the cover of this Mortgage, and the
maximum total amount that may be secured by this Mortgage is limited as set
forth in SECTION 33.

     41.  FUTURE ASSIGNMENTS. If Mortgagor obtains mortgage financing secured by
the Mortgaged Property and the proceeds of such new mortgage financing are
applied to repay the Obligations in full, then in place of delivering a
discharge, satisfaction, or release of this Mortgage, the Mortgagee shall at
Mortgagor's request, deliver to the new lender an assignment of this Mortgage,
all in form reasonably satisfactory to Mortgagee. Effective upon Mortgagee's
assignment of this Mortgage, the Mortgagee shall be released from any remaining
obligations and liabilities under the Indenture and Collateral Agreements.

     42.  LIEN LAW. This Mortgage is made subject to the trust fund provisions
of Section 13 of the New York Lien Law. Mortgagor covenants that it shall
receive all monies and advances secured by this Mortgage and shall hold the
right to receive such advances as a trust fund to be applied first for the
purpose of paying the cost of improvement before using any part of the same for
any other purpose.

     43.  STATUTORY INTERPRETATION. The covenants and conditions in this
Mortgage shall be construed as affording to Mortgagee rights additional to, and
not exclusive of, the rights conferred under the provisions of New York Real
Property Law Sections 254, 271 and 272; provided Mortgagor shall have received
notice required under the Indenture. The following provisions of New York Real
Property Law Section 254 shall, however, not apply to this Mortgage and the
rights and obligations of the parties to this Mortgage: (1) subsection "4,"
covering the use and application of casualty or flood insurance proceeds; and
(2) the portion of subsection "4-a" that begins with the word "however" and
continues to the end of the paragraph. Any inconsistency between this Mortgage
and Real Property Law Section 254, 271 or 272 shall be resolved in favor of this
Mortgage.

     44.  POWER OF SALE. If an Event of Default has occurred and is continuing,
then without limiting any other rights or remedies of Mortgagee, Mortgagee may,
either with or without entry or taking possession of the Mortgaged Property as

                                       17

provided in this Mortgage or otherwise, personally or by its agents or
attorneys, and without prejudice to the right to bring an action for foreclosure
of this Mortgage, sell the Mortgaged Property or any part of it pursuant to any
procedures provided by applicable law, including the procedures set forth in New
York Real Property Actions and Proceedings Law Article 14 (and any amendments or
substitute statutes in regard thereto), and all estate, right, title, interest,
claim, and demand therein, and right of redemption thereof, at one or more sales
as an entirety, or in parcels, and at such time and place upon such terms and
after such notice thereof as may be required or permitted by applicable law.

     45.  MULTIPLE PARCELS. If the Mortgaged Property consists of multiple
parcels, then in any sale of the Mortgaged Property pursuant to Mortgagee's
exercise of its remedies after an Event of Default (including any judicial
foreclosure sale under Real Property Actions and Proceedings Law Article 14),
the multiple parcels shall be sold at one time and in a single sale, except to
the extent that Mortgagee, in its sole absolute discretion, determines to sell
any one or more of the parcel(s) separately. Any such separate sales may be made
in whatever order Mortgagee determines in its sole and absolute discretion.
Mortgagee may, in its sole and absolute discretion, cause the entire Mortgaged
Property to be offered for sale as a single auction lot and may also cause bids
to be solicited for individual parcels of the Mortgaged Property as separate
auction lots in any order, but shall be under no obligation to proceed in either
manner or the other. Mortgagor acknowledges that if Mortgagee sells multiple
parcels individually, no fair value or deficiency hearing shall be required
after each sale.

     46.  HEADINGS. The Section headings herein are inserted for convenience of
reference only and shall in no way alter, modify or define, or be used in
construing, the text of such Sections.

     47.  DEFENSE OF CLAIMS. The Mortgagor shall promptly notify the Mortgagee
in writing of the commencement of any legal proceedings affecting the
Mortgagor's title to the Mortgaged Property or the Mortgagee's Lien on or
security interest in the Mortgaged Property, or any part thereof, and shall take
all such action, employing attorneys agreeable to the Mortgagee, as may be
necessary to preserve the Mortgagor's and the Mortgagee's rights affected
thereby. If the Mortgagor fails or refuses to adequately or vigorously, in the
sole judgment of the Mortgagee, defend the Mortgagor's or the Mortgagee's rights
to the Mortgaged Property, the Mortgagee may take such action on behalf of and
in the name of the Mortgagor and at the Mortgagor's expense. All costs, expenses
and attorneys' fees incurred by the Mortgagee (or its agents) pursuant to this
Section or in connection with the defense by the Mortgagee of any claims,
demands or litigation relating to the Mortgagor, the Mortgaged Property or the
transactions contemplated in this Mortgage shall be paid by the Mortgagor upon
written demand, plus interest thereon from the date of the advance by the
Mortgagee until reimbursement of the Mortgagee at the Overdue Rate.

     48.  EXCULPATION PROVISIONS. EACH OF THE PARTIES HERETO SPECIFICALLY AGREES
THAT IT HAS A DUTY TO READ THIS MORTGAGE; AND AGREES THAT IT IS CHARGED WITH
NOTICE AND KNOWLEDGE OF THE TERMS OF THIS MORTGAGE; THAT IT HAS IN FACT READ
THIS MORTGAGE AND IS FULLY INFORMED AND HAS FULL NOTICE AND KNOWLEDGE OF THE
TERMS, CONDITIONS AND EFFECTS OF THIS MORTGAGE; THAT IT HAS BEEN REPRESENTED BY

                                       18

INDEPENDENT LEGAL COUNSEL OF ITS CHOICE THROUGHOUT THE NEGOTIATIONS PRECEDING
ITS EXECUTION OF THIS MORTGAGE AND HAS RECEIVED THE ADVICE OF ITS ATTORNEY IN
ENTERING INTO THIS MORTGAGE.

     49.  DEFINITIONS. Any capitalized term used in this Mortgage and not
otherwise defined herein shall have the meaning assigned to such term in the
Collateral Agreements.

     50.  INCORPORATION BY REFERENCE. In connection with its appointment and
acting hereunder, Mortgagee is entitled to all rights, privileges, benefits,
protections, immunities and indemnities provided to it as trustee under the
Indenture.

             [NO FURTHER TEXT ON THIS PAGE; SIGNATURE PAGE FOLLOWS.]

                                       19

          IN WITNESS WHEREOF, this Mortgage has been duly executed by Mortgagor
and its corporate seal has been duly affixed hereto.

                                      MONTICELLO RACEWAY
                                      MANAGEMENT, INC.,
                                      a New York corporation

                                      By: /s/ David P. Hanlon
                                         ---------------------------
                                         Name:  David P. Hanlon
                                         Title: President

This Mortgage Was Prepared By
And When Recorded Return to:

Mayer, Brown, Rowe & Maw LLP
1675 Broadway
New York, New York  10019
Attention:  Ronald S. Brody, Esq.

                                 ACKNOWLEDGMENTS

STATE OF NEW YORK    )
                     ): ss.
COUNTY OF SULLIVAN   )

On the 20th day of March, in the year 2006, before me, the undersigned,
personally appeared David P. Hanlon, personally known to me or proved to me on
the basis of satisfactory evidence to be the individual whose name is subscribed
to the within instrument and acknowledged to me that he executed the same in his
capacity, and that by his signature on the instrument, the individual, or the
person upon behalf of which the individual acted, executed the instrument.

Witness My Hand and Official Seal.

/s/ Donna J. Bradbury
----------------------------------
Signature

My Commission expires on September 3, 2009
                         -----------------

                                       21

                                    EXHIBIT A
                                       to
                                    Mortgage

                          DESCRIPTION OF THE OWNED LAND

                                 (see attached)Exhibit 10.1 2001 Stock Incentive Plan

    
      

    

                                                                                        Exhibit
      10.1

     

    
 

    GENERAL
      MARITIME CORPORATION

    2001
      STOCK INCENTIVE PLAN

    (As
      amended and restated, effective March 30, 2006)

    

    ARTICLE
      I

    General

     

    1.1 Purpose

     

    The
      General Maritime Corporation 2001 Stock Incentive Plan (the “Plan”) is designed
      to provide certain key persons, on whose initiative and efforts the successful
      conduct of the business of General Maritime Corporation, a Marshall Islands
      Company (known as General Maritime Shipholdings, Ltd., prior to its initial
      public offering) (the “Company”) depends, and who are responsible for the
      management, growth and protection of the business of the Company, with
      incentives to: (a) enter into and remain in the service of the Company, a
      Company subsidiary or a Company joint venture, (b) acquire a proprietary
      interest in the success of the Company, (c) maximize their performance and
      (d)
      enhance the long-term performance of the Company (whether directly or indirectly
      through enhancing the long-term performance of a Company subsidiary or a Company
      joint venture). The Plan is also designed to provide certain “performance-based”
compensation to these key persons.

     

    1.2 Administration

     

    (a) Administration
      by Committee; Constitution of Committee.
      The
      Plan shall be administered by the Compensation Committee of the Board of
      Directors of the Company (the “Board”) or such other committee or subcommittee
      as the Board may designate or as shall be formed by the abstention or recusal
      of
      a non-Qualified Member (as defined below) of such committee (the “Committee”).
      The members of the Committee shall be appointed by, and serve at the pleasure
      of, the Board. While it is intended that at all times that the Committee acts
      in
      connection with the Plan, the Committee shall consist solely of Qualified
      Members, the number of whom shall not be less than two, the fact that the
      Committee is not so comprised will not invalidate any grant hereunder that
      otherwise satisfies the terms of the Plan. For purposes of the foregoing, a
      “Qualified Member” is both a “non-employee director” within the meaning of Rule
      16b-3 (“Rule 16b-3”) promulgated under the Securities Exchange Act of 1934 (the
“1934 Act”) and an “outside director” within the meaning of section 162(m) of
      the Internal Revenue Code of 1986 (the “Code”). If the Committee does not exist,
      or for any other reason determined by the Board, the Board may take any action
      under the Plan that would otherwise be the responsibility of the
      Committee.

     

    (b) Committee’s
      Authority.
      The
      Committee shall have the authority (i) to exercise all of the powers granted
      to
      it under the Plan, (ii) to construe, interpret and implement the Plan and
      any Grant Certificates executed pursuant to Section 2.1, (iii) to
      prescribe, amend and rescind rules and regulations relating to the Plan,
      including rules governing its own operations, (iv) to make all determinations
      necessary or advisable in administering the Plan, (v) to correct any defect,
      supply any omission and reconcile any inconsistency in the Plan, and (vi) to
      amend the Plan to reflect changes in applicable law.

     

    (c) Committee
      Action.
      Actions
      of the Committee shall be taken by the vote of a majority of its members. Any
      action may be taken by a written instrument signed by a majority of the
      Committee members, and action so taken shall be fully as effective as if it
      had
      been taken by a vote at a meeting. Except to the extent prohibited by applicable
      law or the applicable rules of a stock exchange, the Committee may allocate
      all
      or any portion of its responsibilities and powers to any one or more of its
      members and may delegate all or any part of its responsibilities to any person
      or persons selected by it, and may revoke any such allocation or delegation
      at
      any time.

     

    (d) Determinations
      Final.
      The
      determination of the Committee on all matters relating to the Plan or any Grant
      Certificate shall be final, binding and conclusive.

     

    (e) Limit
      on Committee Members’ Liability.
      No
      member of the Committee shall be liable for any action or determination made
      in
      good faith with respect to the Plan or any award thereunder.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    1.3 Persons
      Eligible for Awards

     

    The
      persons eligible to receive awards under the Plan are those officers, directors,
      and executive, managerial, professional or administrative employees of, and
      consultants to, the Company, its subsidiaries and its joint ventures
      (collectively, “key persons”) as the Committee in its sole discretion shall
      select. The Committee may from time to time in its sole discretion determine
      that any key person shall be ineligible to receive awards under the
      Plan.

     

    1.4 Types
      of Awards Under Plan

     

    Awards
      may be made under the Plan in the form of (a) incentive stock options, (b)
      non-qualified stock options, (c) stock appreciation rights, (d) dividend
      equivalent rights, (e) restricted stock, (f) unrestricted stock, and (g)
      performance shares, all as more fully set forth in Article II. The term “award”
means any of the foregoing. No incentive stock option may be granted to a person
      who is not an employee of the Company on the date of grant.

     

    1.5 Shares
      Available for Awards

     

    (a) Aggregate
      Number Available; Certificate Legends.
      The
      total number of shares of common stock of the Company (“Common Stock”) with
      respect to which awards may be granted pursuant to the Plan shall not exceed
      4.4
      million shares. Shares issued pursuant to the Plan may be authorized but
      unissued Common Stock, authorized and issued Common Stock held in the Company’s
      treasury or Common Stock acquired by the Company for the purposes of the Plan.
      The Committee may direct that any stock certificate evidencing shares issued
      pursuant to the Plan shall bear a legend setting forth such restrictions on
      transferability as may apply to such shares. 

     

    (b) Adjustment
      Upon Changes in Common Stock.
      Upon
      certain changes in Common Stock, the number of shares of Common Stock available
      for issuance with respect to awards that may be granted under the Plan pursuant
      to Section 1.5(a), shall be adjusted pursuant to Section 3.7(a).

     

    (c) Certain
      Shares to Become Available Again.
      The
      following shares of Common Stock shall again become available for awards under
      the Plan: any shares that are subject to an award under the Plan and that remain
      unissued upon the cancellation or termination of such award for any reason
      whatsoever; any shares of restricted stock forfeited pursuant to Section 2.7(f),
      provided that any dividends paid on such shares are also forfeited pursuant
      to
      such Section 2.7(f); and any shares in respect of which a stock appreciation
      right or performance share award is settled for cash. 

     

    (d) Individual
      Limit.
      Except
      for the limits set forth in this Section 1.5(d) and in Section 2.2(h), no
      provision of this Plan shall be deemed to limit the number or value of shares
      with respect to which the Committee may make awards to any eligible person.
      Subject to adjustment as provided in Section 3.7(a), the total number of shares
      of Common Stock with respect to which awards may be granted to any one employee
      of the Company or a subsidiary during any one calendar year shall not exceed
      750,000 shares. Stock options and stock appreciation rights granted and
      subsequently canceled or deemed to be canceled in the same calendar year count
      against the limit for that year even after their cancellation. 

     

    1.6 Definitions
      of Certain Terms

     

    (a) The
“Fair
      Market Value” of a share of Common Stock on any day shall be the closing price
      on the New York Stock Exchange as reported for such day in The
      Wall Street Journal or,
      if no
      such price is reported for such day, the average of the high bid and low asked
      price of Common Stock as reported for such day. If no quotation is made for
      the
      applicable day, the Fair Market Value of a share of Common Stock on such day
      shall be determined in the manner set forth in the preceding sentence using
      quotations for the next preceding day for which there were quotations, provided
      that such quotations shall have been made within the ten (10) business days
      preceding the applicable day. Notwithstanding the foregoing, if deemed necessary
      or appropriate by the Committee, the Fair Market Value of a share of Common
      Stock on any day shall be determined by the Committee. In no event shall the
      Fair Market Value of any share of Common Stock be less than its par
      value.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (b) The
      term
“incentive stock option” means an option that is intended to qualify for special
      federal income tax treatment pursuant to sections 421 and 422 of the Code as
      now
      constituted or subsequently amended, or pursuant to a successor provision of
      the
      Code, and which is so designated in the applicable Grant Certificate. Any option
      that is not specifically designated as an incentive stock option shall under
      no
      circumstances be considered an incentive stock option. Any option that is not
      an
      incentive stock option is referred to herein as a “non-qualified stock
      option.”

     

    (c) Except
      for purposes of Section 2.5(f), a grantee shall be deemed to have a
“termination of employment” upon (i) the date the grantee ceases to be employed
      by, or to provide consulting services for, the Company, any Company subsidiary
      or Company joint venture, or any corporation (or any of its subsidiaries) which
      assumes the grantee’s award in a transaction to which section 424(a) of the Code
      applies; (ii) the date the grantee ceases to be a Board member; or (iii) in
      the
      case of a grantee who is, at the time of reference, both an employee or
      consultant and a Board member, the later of the dates determined pursuant to
      subparagraphs (i) and (ii) above. For purposes of clause (i) above, a grantee
      who continues his employment or consulting relationship with: (A) a Company
      subsidiary subsequent to its sale by the Company, or (B) a Company joint venture
      subsequent to the Company’s sale of its interests in such joint venture, shall
      have a termination of employment upon the date of such sale. The Committee
      may
      in its discretion determine whether any leave of absence constitutes a
      termination of employment for purposes of the Plan and the impact, if any,
      of
      any such leave of absence on awards theretofore made under the Plan. Such
      determinations of the Committee shall be final, binding and conclusive. A person
      whose status changes from consultant, employee, or member of the Board to any
      other of such positions without interruption shall not be considered to have
      had
      a termination of employment by reason of such change. For purposes of Section
      2.5(f) a grantee shall have a “termination of employment” when the grantee
      ceases to be a common law employee of the Company or a parent or subsidiary
      of
      the Company. 

     

    (d) The
      terms
“parent corporation” and “subsidiary corporation” shall have the meanings given
      them in section 424(e) and (f) of the Code, respectively.

     

    (e) The
      term
“employment” shall be deemed to mean an employee’s employment with, or a
      consultant’s provision of services to, the Company, any Company subsidiary or
      any Company joint venture and each Board member’s service as a Board
      member.

     

    (f) The
      term
“cause” in connection with a termination of employment by reason of a dismissal
      for cause shall mean:

     

    (i)
      to
      the extent that there is an employment, severance or other agreement governing
      the relationship between the grantee and the Company, a Company subsidiary
      or a
      Company joint venture, which agreement contains a definition of “cause,” cause
      shall consist of those acts or omissions that would constitute “cause” under
      such agreement; and otherwise,

     

    (ii)
      the
      grantee’s termination of employment by the Company or an affiliate on account of
      any one or more of the following:

     

    (A)
      any
      failure by the grantee substantially to perform the grantee’s employment
      duties;

     

    (B)
      any
      excessive unauthorized absenteeism by the grantee;

     

    (C)
      any
      refusal by the grantee to obey the lawful orders of the Board or any other
      person or committee to whom the grantee reports;

     

    (D)
      any
      act or omission by the grantee that is or may be injurious to the Company,
      monetarily or otherwise;

     

    (E)
      any
      act by the grantee that is inconsistent with the best interests of the
      Company;

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
 

    (F)
      the
      grantee’s material violation of any of the Company’s policies, including,
      without limitation, those policies relating to discrimination or sexual
      harassment;

     

    (G)
      the
      grantee’s unauthorized (a) removal from the premises of the Company or an
      affiliate of any document (in any medium or form) relating to the Company or
      an
      affiliate or the customers or clients of the Company or an affiliate or (b)
      disclosure to any person or entity of any of the Company’s, or its affiliate’s,
      confidential or proprietary information;

     

    (H)
      the
      grantee’s commission of any felony, or any other crime involving moral
      turpitude; and

     

    (I)
      the
      grantee’s commission of any act involving dishonesty or fraud.

     

    Notwithstanding
      the foregoing, in determining whether a termination of employment by reason
      of a
      dismissal for cause has occurred pursuant to Section 1.6(f)(ii) for the purposes
      of Section 3.8(b)(iii), reference shall be made solely to subsections (C),
      (F),
      (G), (H), and (I) of Section 1.6 (f)(ii).

     

    Any
      rights the Company may have hereunder in respect of the events giving rise
      to
      cause shall be in addition to the rights the Company may have under any other
      agreement with a grantee or at law or in equity. Any determination of whether
      a
      grantee’s employment is (or is deemed to have been) terminated for cause shall
      be made by the Committee in its discretion, which determination shall be final,
      binding and conclusive on all parties. If, subsequent to a grantee’s voluntary
      termination of employment or involuntary termination of employment without
      cause, it is discovered that the grantee’s employment could have been terminated
      for cause, the Committee may deem such grantee’s employment to have been
      terminated for cause. A grantee’s termination of employment for cause shall be
      effective as of the date of the occurrence of the event giving rise to cause,
      regardless of when the determination of cause is made.

     

    ARTICLE
      II

    Awards
      Under The Plan

     

    2.1 Agreements
      Evidencing Awards

     

    Each
      award granted under the Plan (except an award of unrestricted stock) shall
      be
      evidenced by a written certificate (“Grant Certificate”) which shall contain
      such provisions as the Committee may in its sole discretion deem necessary
      or
      desirable. By accepting an award pursuant to the Plan, a grantee thereby agrees
      that the award shall be subject to all of the terms and provisions of the Plan
      and the applicable Grant Certificate.

     

    2.2 Grant
      of Stock Options, Stock Appreciation Rights and Dividend Equivalent
      Rights

     

    (a) Stock
      Option Grants.
      The
      Committee may grant incentive stock options and non-qualified stock options
      (collectively, “options”) to purchase shares of Common Stock from the Company,
      to such key persons, and in such amounts and subject to such vesting and
      forfeiture provisions and other terms and conditions, as the Committee shall
      determine in its sole discretion, subject to the provisions of the
      Plan.

     

    (b) Stock
      Appreciation Right Grants; Types of Stock Appreciation Rights.
      The
      Committee may grant stock appreciation rights to such key persons, and in such
      amounts and subject to such vesting and forfeiture provisions and other terms
      and conditions, as the Committee shall determine in its sole discretion, subject
      to the provisions of the Plan. The terms of a stock appreciation right may
      provide that it shall be automatically exercised for a cash payment upon the
      happening of a specified event that is outside the control of the grantee,
      and
      that it shall not be otherwise exercisable. Stock appreciation rights may be
      granted in connection with all or any part of, or independently of, any option
      granted under the Plan. A stock appreciation right granted in connection with
      a
      non-qualified stock option may be granted at or after the time of grant of
      such
      option. A stock appreciation right granted in connection with an incentive
      stock
      option may be granted only at the time of grant of such option.

     

    (c) Nature
      of Stock Appreciation Rights.
      The
      grantee of a stock appreciation right shall have the right, subject to the
      terms
      of the Plan and the applicable Grant Certificate, to receive from the Company
      an
      amount

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
 

    equal
      to
      (i) the excess of the Fair Market Value of a share of Common Stock on the date
      of exercise of the stock appreciation right over the Fair Market Value of a
      share of Common Stock on the date of grant (or over the option exercise price
      if
      the stock appreciation right is granted in connection with an option),
      multiplied by (ii) the number of shares with respect to which the stock
      appreciation right is exercised. Payment upon exercise of a stock appreciation
      right shall be in cash or in shares of Common Stock (valued at their Fair Market
      Value on the date of exercise of the stock appreciation right) or both, all
      as
      the Committee shall determine in its sole discretion. Upon the exercise of
      a
      stock appreciation right granted in connection with an option, the number of
      shares subject to the option shall be reduced by the number of shares with
      respect to which the stock appreciation right is exercised. Upon the exercise
      of
      an option in connection with which a stock appreciation right has been granted,
      the number of shares subject to the stock appreciation right shall be reduced
      by
      the number of shares with respect to which the option is exercised.

     

    (d) Option
      Exercise Price.
      Each
      Grant Certificate with respect to an option shall set forth the amount (the
      “option exercise price”) payable by the grantee to the Company upon exercise of
      the option evidenced thereby. The option exercise price per share shall be
      determined by the Committee in its sole discretion; provided, however, that
      the
      option exercise price of an option shall be at least 100% of the Fair Market
      Value of a share of Common Stock on the date the option is granted, and provided
      further that in no event shall the option exercise price be less than the par
      value of a share of Common Stock.

     

    (e) Exercise
      Period.
      Each
      Grant Certificate with respect to an option or stock appreciation right shall
      set forth the periods during which the award evidenced thereby shall be
      exercisable, whether in whole or in part. Such periods shall be determined
      by
      the Committee in its sole discretion; provided, however, that no incentive
      stock
      option (or a stock appreciation right granted in connection with an incentive
      stock option) shall be exercisable more than 10 years after the date of grant.
      (See the default exercise period provided for under Sections 2.3(a) and
      (b).)

     

    (f) Reload
      Options.
      The
      Committee may in its sole discretion include in any Grant Certificate with
      respect to an option (the “original option”) a provision that an additional
      option (the “reload option”) shall be granted to any grantee who, pursuant to
      Section 2.3(e)(ii), delivers shares of Common Stock in partial or full payment
      of the exercise price of the original option. The reload option shall be for
      a
      number of shares of Common Stock equal to the number thus delivered, shall
      have
      an exercise price equal to the Fair Market Value of a share of Common Stock
      on
      the date of exercise of the original option, and shall have an expiration date
      no later than the expiration date of the original option. In the event that
      a
      Grant Certificate provides for the grant of a reload option, such Agreement
      shall also provide that the exercise price of the original option be no less
      than the Fair Market Value of a share of Common Stock on its date of grant,
      and
      that any shares that are delivered pursuant to Section 2.3(e)(ii) in payment
      of
      such exercise price shall have been held for at least six months.

     

    (g) Dividend
      Equivalent Rights.
      The
      Committee may in its sole discretion include in any Grant Certificate with
      respect to an option, stock appreciation right or performance shares, a dividend
      equivalent right entitling the grantee to receive amounts equal to the ordinary
      dividends that would be paid, during the time such award is outstanding and
      unexercised, on the shares of Common Stock covered by such award if such shares
      were then outstanding. In the event such a provision is included in a Grant
      Certificate, the Committee shall determine whether such payments shall be made
      in cash or in shares of Common Stock, whether they shall be conditioned upon
      the
      exercise of the award to which they relate, the time or times at which they
      shall be made, and such other vesting and forfeiture provisions and other terms
      and conditions as the Committee shall deem appropriate. Notwithstanding the
      foregoing, no dividend equivalent rights shall be conditioned on the exercise
      of
      any option or stock appreciation right if and to the extent that such dividend
      equivalent right would cause the compensation represented by such option or
      stock appreciation right not to constitute performance-based compensation under
      section 162(m) of the Code and no dividend equivalent right shall be granted
      if
      and to the extent that it would cause the grantee to be subject to tax under
      section 409A of the Code.

     

    (h) Incentive
      Stock Option Limitation: Exercisability.
      To the
      extent that the aggregate Fair Market Value (determined as of the time the
      option is granted) of the stock with respect to which incentive stock options
      are first exercisable by any employee during any calendar year shall exceed
      $100,000, or such other amount as may be specified from time to time under
      section 422 of the Code, such options shall be treated as non-qualified stock
      options.

     

    
      
        
        

      

      
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    (i) Incentive
      Stock Option Limitation: 10% Owners.
      Notwithstanding the provisions of paragraphs (d) and (e) of this Section 2.2,
      an
      incentive stock option may not be granted under the Plan to an individual who,
      at the time the option is granted, owns stock possessing more than 10% of the
      total combined voting power of all classes of stock of his employer corporation
      or of its parent or subsidiary corporations (as such ownership may be determined
      for purposes of section 422(b) (6) of the Code) unless (i) at the time such
      incentive stock option is granted the option exercise price is at least 110%
      of
      the Fair Market Value of the shares subject thereto and (ii) the incentive
      stock
      option by its terms is not exercisable after the expiration of 5 years from
      the
      date it is granted.

     

    2.3 Exercise
      of Options and Stock Appreciation Rights

     

    Subject
      to the other provisions of this Article II, each option or stock appreciation
      right granted under the Plan shall be exercisable as follows:

     

    (a) Beginning
      of Exercise Period.
      Unless
      the applicable Grant Certificate otherwise provides, an option or stock
      appreciation right shall become exercisable in four equal installments of 25%
      of
      the shares subject to such option or stock appreciation right; one installment
      shall become exercisable on each successive anniversary of the date of
      grant.

     

    (b) End
      of
      Exercise Period.
      Unless
      the applicable Grant Certificate otherwise provides, once an installment becomes
      exercisable, it shall remain exercisable until the earlier of (i) the tenth
      anniversary of the date of grant of the award or (ii) the expiration,
      cancellation or termination of the award.

     

    (c) Timing
      and Extent of Exercise.
      Unless
      the applicable Grant Certificate otherwise provides, an option or stock
      appreciation right may be exercised from time to time as to all or part of
      the
      shares as to which such award is then exercisable. A stock appreciation right
      granted in connection with an option may be exercised at any time when, and
      to
      the same extent that, the related option may be exercised.

     

    (d) Notice
      of Exercise.
      An
      option or stock appreciation right shall be exercised by the filing of a written
      notice with the Company or the Company’s designated exchange agent (the
“exchange agent”), on such form and in such manner as the Committee shall in its
      sole discretion prescribe.

     

    (e) Payment
      of Exercise Price.
      Any
      written notice of exercise of an option shall be accompanied by payment for
      the
      shares being purchased. Such payment shall be made: (i) by certified or official
      bank check (or the equivalent thereof acceptable to the Company or its exchange
      agent) for the full option exercise price; or (ii) with the consent of the
      Committee, by delivery of shares of Common Stock having a Fair Market Value
      (determined as of the exercise date) equal to all or part of the option exercise
      price and a certified or official bank check (or the equivalent thereof
      acceptable to the Company or its exchange agent) for any remaining portion
      of
      the full option exercise price; or (iii) at the discretion of the Committee
      and
      to the extent permitted by law, by such other provision, consistent with the
      terms of the Plan, as the Committee may from time to time prescribe (whether
      directly or indirectly through the exchange agent).

     

    (f) Delivery
      of Certificates Upon Exercise.
      Promptly after receiving payment of the full option exercise price, or after
      receiving notice of the exercise of a stock appreciation right for which payment
      will be made partly or entirely in shares, the Company or its exchange agent
      shall, subject to the provisions of Section 3.2, deliver to the grantee or
      to
      such other person as may then have the right to exercise the award, a
      certificate or certificates for the shares of Common Stock for which the award
      has been exercised. If the method of payment employed upon option exercise
      so
      requires, and if applicable law permits, an optionee may direct the Company,
      or
      its exchange agent as the case may be, to deliver the stock certificate(s)
      to
      the optionee’s stockbroker.

     

    (g) No
      Stockholder Rights.
      No
      grantee of an option or stock appreciation right (or other person having the
      right to exercise such award) shall have any of the rights of a stockholder
      of
      the Company with respect to shares subject to such award until the issuance
      of a
      stock certificate to such person for such shares. Except as otherwise provided
      in Section 1.5(b), no adjustment shall be made for dividends, distributions
      or
      other rights (whether ordinary or extraordinary, and whether in cash, securities
      or other property) for which the record date is prior to the date such stock
      certificate is issued.

     

    
      
        
        

      

      
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    2.4 Compensation
      in Lieu of Exercise of an Option

     

    Upon
      written application of the grantee of an option, the Committee may in its sole
      discretion determine to substitute, for the exercise of such option,
      compensation to the grantee not in excess of the difference between the option
      exercise price and the Fair Market Value of the shares covered by such written
      application on the date of such application. Such compensation may be in cash,
      in shares of Common Stock, or both, and the payment thereof may be subject
      to
      conditions, all as the Committee shall determine in its sole discretion. In
      the
      event compensation is substituted pursuant to this Section 2.4 for the exercise,
      in whole or in part, of an option, the number of shares subject to the option
      shall be reduced by the number of shares for which such compensation is
      substituted.

     

    2.5 Termination
      of Employment; Death Subsequent to a Termination of
      Employment

     

    (a) General
      Rule.
      Except
      to the extent otherwise provided in paragraphs (b), (c), (d) or (e) of this
      Section 2.5 or Section 3.8(b)(iii), a grantee who incurs a termination of
      employment may exercise any outstanding option or stock appreciation right
      on
      the following terms and conditions: (i) exercise may be made only to the extent
      that the grantee was entitled to exercise the award on the termination of
      employment date; and (ii) exercise must occur within three months after
      termination of employment but in no event after the original expiration date
      of
      the award.

     

    (b) Dismissal
      for Cause; Resignation.
      If a
      grantee incurs a termination of employment as the result of a dismissal for
      cause or resignation without the Company’s prior consent, all options and stock
      appreciation rights not theretofore exercised shall terminate upon the grantee’s
      termination of employment. 

     

    (c) Retirement.
      If a
      grantee incurs a termination of employment as the result of his retirement,
      then
      any outstanding option or stock appreciation right shall be exercisable on
      the
      following terms and conditions: (i) exercise may be made only to the extent
      that
      the grantee was entitled to exercise the award on the termination of employment
      date; and (ii) exercise must occur by the earlier of (A) the third anniversary
      of such termination of employment, or (B) the original expiration date of the
      award. For this purpose “retirement” shall mean a grantee’s termination of
      employment, under circumstances other than those described in paragraph (b)
      above, on or after: (x) his 65th birthday, (y) the date on which he has attained
      age 60 and completed at least five years of service with the Company (using
      any
      method of calculation the Committee deems appropriate) or (z) if approved by
      the
      Committee, on or after he has completed at least 20 years of
      service.

     

    (d) Disability.
      If a
      grantee incurs a termination of employment by reason of a disability (as defined
      below), then any outstanding option or stock appreciation right shall be
      exercisable on the following terms and conditions: (i) exercise may be made
      only
      to the extent that the grantee was entitled to exercise the award on such
      termination of employment; and (ii) exercise must occur by the earlier of (A)
      the first anniversary of the grantee’s termination of employment, or (B) the
      original expiration date of the award. For this purpose “disability” shall mean:
      (x) except in connection with an incentive stock option, any physical or mental
      condition that would qualify a grantee for a disability benefit under the
      long-term disability plan maintained by the Company or, if there is no such
      plan, a physical or mental condition that prevents the grantee from performing
      the essential functions of the grantee’s position (with or without reasonable
      accommodation) for a period of six consecutive months and (y) in connection
      with
      an incentive stock option, a disability described in section 422(c)(6) of the
      Code. The existence of a disability shall be determined by the Committee in
      its
      absolute discretion.

     

    (e) Death.
      

     

    (i) Termination
      of Employment as a Result of Grantee’s Death.
      If a
      grantee incurs a termination of employment as the result of his death, then
      any
      outstanding option or stock appreciation right shall be exercisable on the
      following terms and conditions: (A) exercise may be made only to the extent
      that
      the grantee was entitled to exercise the award on such termination of
      employment; and (B) exercise must occur by the earlier of (1) the first
      anniversary of the grantee’s termination of employment, or (2) the original
      expiration date of the award.

     

    
      
        
        

      

      
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    (ii) Death
      Subsequent to a Termination of Employment.
      If a
      grantee dies subsequent to incurring a termination of employment but prior
      to
      the expiration of the exercise period with respect to a stock option or a stock
      appreciation right (as provided by paragraphs (a), (c), or (d) above), then
      the
      award shall remain exercisable until the earlier to occur of (A) the first
      anniversary of the grantee’s date of death or (B) the original expiration date
      of the award. 

     

    (iii) Restrictions
      on Exercise Following Death.
      Any
      such exercise of an award following a grantee’s death shall be made only by the
      grantee’s executor or administrator or other duly appointed representative
      reasonably acceptable to the Committee, unless the grantee’s will specifically
      disposes of such award, in which case such exercise shall be made only by the
      recipient of such specific disposition. If a grantee’s personal representative
      or the recipient of a specific disposition under the grantee’s will shall be
      entitled to exercise any award pursuant to the preceding sentence, such
      representative or recipient shall be bound by all the terms and conditions
      of
      the Plan and the applicable Grant Certificate which would have applied to the
      grantee including, without limitation, the provisions of Sections 3.2 and 3.8
      hereof.

     

    (f) Special
      Rules for Incentive Stock Options.
      No
      option that remains exercisable for more than three months following a grantee’s
      termination of employment for any reason other than death or disability (unless
      death occurs within the three months or within the one year following
      termination of employment for disability), or for more than one year following
      a
      grantee’s termination of employment as the result of his becoming disabled, may
      be treated as an incentive stock option.

     

    (g) Committee
      Discretion.
      The
      Committee, in the applicable Grant Certificate, may waive or modify the
      application of the foregoing provisions of this Section 2.5.

     

    2.6 Transferability
      of Options and Stock Appreciation Rights

     

    Except
      as
      otherwise provided in an applicable Grant Certificate evidencing an option
      or
      stock appreciation right, during the lifetime of a grantee, each option or
      stock
      appreciation right granted to a grantee shall be exercisable only by the grantee
      and no option or stock appreciation right shall be assignable or transferable
      otherwise than by will or by the laws of descent and distribution. The Committee
      may, in any applicable Grant Certificate evidencing an option (other than an
      incentive stock option to the extent inconsistent with the requirements of
      section 422 of the Code applicable to incentive stock options), permit a grantee
      to transfer all or some of the options to (A) the grantee’s spouse, children or
      grandchildren (“Immediate Family Members”), (B) a trust or trusts for the
      exclusive benefit of such Immediate Family Members, or (C) other parties
      approved by the Committee in its absolute discretion. Following any such
      transfer, any transferred options shall continue to be subject to the same
      terms
      and conditions as were applicable immediately prior to the
      transfer.

     

    2.7 Grant
      of Restricted Stock

     

    (a) Restricted
      Stock Grants.
      The
      Committee may grant restricted shares of Common Stock to such key persons,
      in
      such amounts, and subject to such vesting and forfeiture provisions and other
      terms and conditions as the Committee shall determine in its sole discretion,
      subject to the provisions of the Plan. Restricted stock awards may be made
      independently of or in connection with any other award under the Plan. A grantee
      of a restricted stock award shall have no rights with respect to such award
      unless such grantee accepts the award within such period as the Committee shall
      specify by accepting delivery of a restricted stock agreement in such form
      as
      the Committee shall determine and, in the event the restricted shares are newly
      issued by the Company, makes payment to the Company or its exchange agent as
      required by the Committee and in accordance with the Marshall Islands Business
      Corporations Act.

     

    (b) Issuance
      of Stock Certificate(s).
      Promptly after a grantee accepts a restricted stock award, the Company or its
      exchange agent shall issue to the grantee a stock certificate or stock
      certificates for the shares of Common Stock covered by the award or shall
      establish an account evidencing ownership of the stock in uncertificated form.
      Upon the issuance of such stock certificate(s), or establishment of such
      account, the grantee shall have the rights of a stockholder with respect to
      the
      restricted stock, subject to: (i) the nontransferability restrictions and
      forfeiture provision described in paragraphs (d) and (e) of this Section 2.7;
      (ii) in the Committee’s discretion, to a requirement that any dividends paid on
      such shares shall be held in escrow until all restrictions on such
      shares have lapsed; and (iii) any other restrictions and conditions contained
      in
      the applicable restricted stock agreement.

     

    
      
        
        

      

      
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    (c) Custody
      of Stock Certificate(s).
      Unless
      the Committee shall otherwise determine, any stock certificates issued
      evidencing shares of restricted stock shall remain in the possession of the
      Company or another custodian designated by the Company until such shares are
      free of any restrictions specified in the applicable restricted stock agreement.
      The Committee may direct that such stock certificate(s) bear a legend setting
      forth the applicable restrictions on transferability.

     

    (d) Nontransferability.
      Shares
      of restricted stock may not be sold, assigned, transferred, pledged or otherwise
      encumbered or disposed of except as otherwise specifically provided in this
      Plan
      or the applicable restricted stock agreement. Subject to Section 2.7(e), the
      Committee at the time of grant shall specify the date or dates (which may depend
      upon or be related to the attainment of performance goals and other conditions)
      on which the nontransferability of the restricted stock shall
      lapse.

     

    (e) Minimum
      Vesting Periods.
      To the
      extent that vesting of restricted stock is based on the grantee’s continued
      employment (or other service) with the Company for a specified period, the
      shares of restricted stock shall not vest in full until the third anniversary
      of
      the grant date, provided, however, that in each calendar year the Committee
      may
      grant up to 76,597 restricted shares (subject to adjustment as provided in
      Section 3.7(a)) with shorter vesting periods to (i) non-employee directors
      in
      lieu of director fees, and (ii) new employees or consultants in connection
      with
      their commencing employment or other service.

     

    (f) Consequence
      of Termination of Employment.
      A
      grantee’s termination of employment for any reason (including death) shall cause
      the immediate forfeiture of all shares of restricted stock that have not yet
      vested prior to, and do not vest on account of, such termination of employment.
      All dividends paid on such shares also shall be forfeited, whether by
      termination of any escrow arrangement under which such dividends are held,
      by
      the grantee’s repayment of dividends he received directly, or otherwise, unless
      the Board or the Committee determines otherwise with respect to dividends paid
      in respect of shares of restricted stock granted on or after December 21,
      2005.

     

    2.8 Grant
      of Unrestricted Stock

     

    The
      Committee may grant (or sell at a purchase price at least equal to par value)
      shares of Common Stock free of restrictions under the Plan, to such key persons
      and in such amounts and subject to such forfeiture provisions as the Committee
      shall determine in its sole discretion. Shares may be thus granted or sold
      in
      respect of past services or other valid consideration.

     

    2.9 Grant
      of Performance Shares

     

    (a) Performance
      Share Grants.
      The
      Committee may grant performance share awards to such key persons, and in such
      amounts and subject to such vesting and forfeiture provisions and other terms
      and conditions, as the Committee shall in its sole discretion determine, subject
      to the provisions of the Plan. Such an award shall entitle the grantee to
      acquire shares of Common Stock, or to be paid the value thereof in cash, as
      the
      Committee shall determine, if specified performance goals are met. Performance
      shares may be awarded independently of, or in connection with, any other award
      under the Plan. A grantee shall have no rights with respect to a performance
      share award unless such grantee accepts the award by accepting delivery of
      a
      Grant Certificate at such time and in such form as the Committee shall
      determine.

     

    (b) Stockholder
      Rights.
      The
      grantee of a performance share award will have the rights of a stockholder
      only
      as to shares for which a stock certificate has been issued pursuant to the
      award
      and not with respect to any other shares subject to the award.

     

    (c) Consequence
      of Termination of Employment.
      Except
      as may otherwise be provided by the Committee at any time prior to a grantee’s
      termination of employment, the rights of a grantee of a performance share
      award shall automatically terminate upon the grantee’s termination of employment
      by the Company and its subsidiaries for any reason (including
      death).

     

    
      
        
        

      

      
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    (d) Exercise
      Procedures; Automatic Exercise.
      At the
      discretion of the Committee, the applicable Grant Certificate may set out the
      procedures to be followed in exercising a performance share award or it may
      provide that such exercise shall be made automatically after satisfaction of
      the
      applicable performance goals.

     

    (e) Tandem
      Grants; Effect on Exercise.
      Except
      as otherwise specified by the Committee, (i) a performance share award granted
      in tandem with an option may be exercised only while the option is exercisable,
      (ii) the exercise of a performance share award granted in tandem with any other
      award shall reduce the number of shares subject to such other award in the
      manner specified in the applicable Grant Certificate, and (iii) the exercise
      of
      any award granted in tandem with a performance share award shall reduce the
      number of shares subject to the latter in the manner specified in the applicable
      Grant Certificate.

     

    (f) Nontransferability.
      Performance shares may not be sold, assigned, transferred, pledged or otherwise
      encumbered or disposed of except as otherwise specifically provided in this
      Plan
      or the applicable Grant Certificate. The Committee at the time of grant shall
      specify the date or dates (which may depend upon or be related to the attainment
      of performance goals and other conditions) on which the nontransferability
      of
      the performance shares shall lapse.

     

    ARTICLE
      III

    Miscellaneous

     

    3.1 Amendment
      of the Plan; Modification of Awards

     

    (a) Amendment
      of the Plan.
      The
      Board may from time to time suspend, discontinue, revise or amend the Plan
      in
      any respect whatsoever, except that no such amendment shall materially impair
      any rights or materially increase any obligations under any award theretofore
      made under the Plan without the consent of the grantee (or, upon the grantee’s
      death, the person having the right to exercise the award). For purposes of
      this
      Section 3.1, any action of the Board or the Committee that in any way alters
      or
      affects the tax treatment of any award or that in the sole discretion of the
      Board is necessary to prevent the grantee from being subject to tax with respect
      to an award under section 409A of the Code shall not be considered to materially
      impair any rights of any grantee.

     

    (b) Stockholder
      Approval Requirement.
      Stockholder approval shall be required with respect to any amendment to the
      Plan
      (i) that increases the aggregate number of shares which may be issued pursuant
      to incentive stock options or changes the class of employees eligible to receive
      such options; (ii) that materially increases the benefits under the Plan to
      persons whose transactions in Common Stock are subject to section 16(b) of
      the
      1934 Act or increases the benefits under the Plan to someone who is, or who
      is
      anticipated to be a “162(m) covered employee” (as defined in Section 3.9(a)(i)),
      materially increases the number of shares which may be issued to such persons,
      or materially modifies the eligibility requirements affecting such persons;
      or
      (iii) to the extent required by law or stock exchange rules.

     

    (c) Modification
      of Awards.
      The
      Committee may cancel any award under the Plan. Subject to the limitations in
      this Section 3.1(c), the Committee also may amend any outstanding Grant
      Certificate, including, without limitation, by amendment which would: (i)
      accelerate the time or times at which the award becomes unrestricted or may
      be
      exercised; (ii) waive or amend any goals, restrictions or conditions set forth
      in the Agreement; or (iii) waive or amend the operation of Section 2.5 with
      respect to the termination of the award upon termination of employment. Any
      such
      cancellation or amendment (other than an amendment pursuant to Sections 3.7
      or
      3.8(b)) that materially impairs the rights or materially increases the
      obligations of a grantee under an outstanding award shall be made only with
      the
      consent of the grantee (or, upon the grantee’s death, the person having the
      right to exercise the award). The Committee shall not amend any award and
      outstanding Grant Certificate to make such award more favorable to the recipient
      except in connection with a Change in Control (as defined in Section 3.8),
      the
      recipient's death, disability, or termination of employment or other
      relationship with the Company, error or ambiguity in the Grant Certificate,
      or
      similar circumstances. Under no circumstances may the Committee
      modify an award in a manner that would cause the grantee to be subject to tax
      under section 409A of the Code.

     

    
      
        
        

      

      
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    3.2 Consent
      Requirement

     

    (a) No
      Plan Action without Required Consent.
      If the
      Committee shall at any time determine that any Consent (as hereinafter defined)
      is necessary or desirable as a condition of, or in connection with, the granting
      of any award under the Plan, the issuance or purchase of shares or other rights
      thereunder, or the taking of any other action thereunder (each such action
      being
      hereinafter referred to as a “Plan Action”), then such Plan Action shall not be
      taken, in whole or in part, unless and until such Consent shall have been
      effected or obtained to the full satisfaction of the Committee.

     

    (b) Consent
      Defined.
      The
      term “Consent” as used herein with respect to any Plan Action means (i) any and
      all listings, registrations or qualifications in respect thereof upon any
      securities exchange or under any federal, state or local law, rule or
      regulation, (ii) any and all written agreements and representations by the
      grantee with respect to the disposition of shares, or with respect to any other
      matter, which the Committee shall deem necessary or desirable to comply with
      the
      terms of any such listing, registration or qualification or to obtain an
      exemption from the requirement that any such listing, qualification or
      registration be made and (iii) any and all consents, clearances and approvals
      in
      respect of a Plan Action by any governmental or other regulatory
      bodies.

     

    3.3 Nonassignability

     

    Except
      as
      provided in Sections 2.5(e), 2.6, 2.7(d) and 2.9(f): (a) no award or right
      granted to any person under the Plan or under any Grant Certificate shall be
      assignable or transferable other than by will or by the laws of descent and
      distribution; and (b) all rights granted under the Plan or any Grant Certificate
      shall be exercisable during the life of the grantee only by the grantee or
      the
      grantee’s legal representative.

     

    3.4 Requirement
      of Notification of Election Under Section 83(b) of the
      Code

     

    If
      any
      grantee shall, in connection with the acquisition of shares of Common Stock
      under the Plan, make the election permitted under section 83(b) of the Code
      (i.e., an election to include in gross income in the year of transfer the
      amounts specified in section 83(b) ), such grantee shall notify the Company
      of
      such election within 10 days of filing notice of the election with the Internal
      Revenue Service, in addition to any filing and notification required pursuant
      to
      regulations issued under the authority of Code section 83(b).

     

    3.5 Requirement
      of Notification Upon Disqualifying Disposition Under Section 421(b) of the
      Code

     

    The
      grantee of an incentive stock option shall notify the Company of any disposition
      of shares of Common Stock issued pursuant to the exercise of such option under
      the circumstances described in section 421(b) of the Code (relating to certain
      disqualifying dispositions), within 10 days of such disposition.

     

    3.6 Withholding
      Taxes

     

    (a) With
      Respect to Cash Payments.
      Whenever cash is to be paid pursuant to an award under the Plan, the Company
      shall be entitled to deduct therefrom an amount sufficient in its opinion to
      satisfy all federal, state and other governmental tax withholding requirements
      related to such payment.

     

    (b) With
      Respect to Delivery of Common Stock.
      Whenever shares of Common Stock are to be delivered pursuant to an award under
      the Plan, the Company shall be entitled to require as a condition of delivery
      that the grantee remit to the Company an amount sufficient in the opinion of
      the
      Company to satisfy all federal, state and other governmental tax withholding
      requirements related thereto. With the approval of the Committee, which the
      Committee shall have sole discretion whether or not to give, the grantee may
      satisfy the foregoing condition by electing to have the Company withhold from
      delivery shares having a value equal to the amount of tax to be withheld. Such
      shares shall be valued at their Fair Market Value as of the date on which the
      amount of tax to be withheld is determined. Fractional share amounts shall
      be
      settled in cash. Such a withholding election may be made with respect to all
      or
      any portion of the shares to be delivered pursuant to an
      award. 

     

    
      
        
        

      

      
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    3.7 Adjustment
      Upon Changes in Common Stock

     

    (a) Shares
      Available for Grants.
      In the
      event of any change in the number of shares of Common Stock outstanding by
      reason of any stock dividend or split, reverse stock split, recapitalization,
      merger, consolidation, combination or exchange of shares or similar corporate
      change, the maximum number of shares of Common Stock with respect to which
      the
      Committee may grant awards under Article II hereof, as described in Section
      1.5(a), the individual annual limit described in Section 1.5(d) and the annual
      limit set forth in Section 2.7(e), shall be appropriately adjusted by the
      Committee. In the event of any change in the number of shares of Common Stock
      outstanding by reason of any other event or transaction, the Committee may,
      but
      need not, make such adjustments in the number and class of shares of Common
      Stock with respect to which awards may be: (i) granted under Article II hereof
      and (ii) granted to any one employee of the Company or a subsidiary during
      any
      one calendar year, in each case as the Committee may deem appropriate, unless
      such adjustment would cause any award that would otherwise qualify as
      performance based compensation with respect to a “162(m) covered employee” (as
      defined in Section 3.9(a)(i)), to cease to so qualify.

     

    (b) Outstanding
      Restricted Stock and Performance Shares.
      Unless
      the Committee in its absolute discretion otherwise determines, any securities
      or
      other property (including dividends paid in cash) received by a grantee with
      respect to a share of restricted stock which has not vested as of the date
      of
      such event, as a result of any dividend, stock split, reverse stock split,
      recapitalization, merger, consolidation, combination, exchange of shares or
      otherwise will not vest until such share of restricted stock vests, and shall
      be
      promptly deposited with the Company or other custodian designated pursuant
      to
      Section 2.7(c) hereof.

     

    The
      Committee may, in its absolute discretion, adjust any grant of shares of
      restricted stock (with respect to which such shares have not yet been issued
      as
      of the date of the occurrence of any of the following events) or any grant
      of
      performance shares, to reflect any dividend, stock split, reverse stock split,
      recapitalization, merger, consolidation, combination, exchange of shares or
      similar corporate change as the Committee may deem appropriate to prevent the
      enlargement or dilution of rights of grantees.

     

    (c) Outstanding
      Options, Stock Appreciation Rights and Dividend Equivalent Rights — Increase or
      Decrease in Issued Shares Without Consideration.
      Subject
      to any required action by the stockholders of the Company, in the event of
      any
      increase or decrease in the number of issued shares of Common Stock resulting
      from a subdivision or consolidation of shares of Common Stock or the payment
      of
      a stock dividend (but only on the shares of Common Stock), or any other increase
      or decrease in the number of such shares effected without receipt of
      consideration by the Company, the Committee shall proportionally adjust the
      number of shares of Common Stock subject to each outstanding option and stock
      appreciation right, and the exercise price-per-share of Common Stock of each
      such option and stock appreciation right and the number of any related dividend
      equivalent rights.

     

    (d) Outstanding
      Options, Stock Appreciation Rights and Dividend Equivalent Rights — Certain
      Mergers.
      Subject
      to any required action by the stockholders of the Company, in the event that
      the
      Company shall be the surviving corporation in any merger or consolidation
      (except a merger or consolidation as a result of which the holders of shares
      of
      Common Stock receive securities of another corporation), each option, stock
      appreciation right and dividend equivalent right outstanding on the date of
      such
      merger or consolidation shall pertain to and apply to the securities which
      a
      holder of the number of shares of Common Stock subject to such option, stock
      appreciation right or dividend equivalent right would have received in such
      merger or consolidation.

     

    (e) Outstanding
      Options, Stock Appreciation Rights and Dividend Equivalent Rights — Certain
      Other Transactions.
      In the
      event of (i) a dissolution or liquidation of the Company, (ii) a sale of all
      or
      substantially all of the Company’s assets, (iii) a merger or consolidation
      involving the Company in which the Company is not the surviving corporation
      or
      (iv) a merger or consolidation involving the Company in which the Company is
      the
      surviving corporation but the holders of shares of Common Stock receive
      securities of another corporation and/or other property, including cash, the
      Committee shall, in its absolute discretion, have the power to:

     

    
      
        
        

      

      
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    (A)
      cancel, effective immediately prior to the occurrence of such event, each option
      and stock appreciation right (including each dividend equivalent right related
      thereto) outstanding immediately prior to such event (whether or not then
      exercisable), and, in full consideration of such cancellation, pay to the
      grantee to whom such option or stock appreciation right was granted an amount
      in
      cash, for each share of Common Stock subject to such option or stock
      appreciation right, respectively, equal to the excess of (x) the value, as
      determined by the Committee in its absolute discretion, of the property
      (including cash) received by the holder of a share of Common Stock as a result
      of such event over (y) the exercise price of such option or stock appreciation
      right; or

     

    (B)
      provide for the exchange of each option and stock appreciation right (including
      any related dividend equivalent right) outstanding immediately prior to such
      event (whether or not then exercisable) for an option on or stock appreciation
      right and dividend equivalent right with respect to, as appropriate, some or
      all
      of the property which a holder of the number of shares of Common Stock subject
      to such option or stock appreciation right would have received and, incident
      thereto, make an equitable adjustment as determined by the Committee in its
      absolute discretion in the exercise price of the option or stock appreciation
      right, or the number of shares or amount of property subject to the option,
      stock appreciation right or dividend equivalent right or, if appropriate,
      provide for a cash payment to the grantee to whom such option or stock
      appreciation right was granted in partial consideration for the exchange of
      the
      option or stock appreciation right.

     

    (f) Outstanding
      Options, Stock Appreciation Rights and Dividend Equivalent Rights — Other
      Changes.
      In the
      event of any change in the capitalization of the Company or a corporate change
      other than those specifically referred to in Sections 3.7(c), (d) or (e) hereof,
      the Committee may, in its absolute discretion, make such adjustments in the
      number and class of shares subject to options, stock appreciation rights and
      dividend equivalent rights outstanding on the date on which such change occurs
      and in the per-share exercise price of each such option and stock appreciation
      right as the Committee may consider appropriate to prevent dilution or
      enlargement of rights. In addition, if and to the extent the Committee
      determines it is appropriate, the Committee may elect to cancel each option
      and
      stock appreciation right (including each dividend equivalent right related
      thereto) outstanding immediately prior to such event (whether or not then
      exercisable), and, in full consideration of such cancellation, pay to the
      grantee to whom such option or stock appreciation right was granted an amount
      in
      cash, for each share of Common Stock subject to such option or stock
      appreciation right, respectively, equal to the excess of (i) the Fair Market
      Value of Common Stock on the date of such cancellation over (ii) the exercise
      price of such option or stock appreciation right.

     

    (g) No
      Other Rights.
      Except
      as expressly provided in the Plan, no grantee shall have any rights by reason
      of
      any subdivision or consolidation of shares of stock of any class, the payment
      of
      any dividend, any increase or decrease in the number of shares of stock of
      any
      class or any dissolution, liquidation, merger or consolidation of the Company
      or
      any other corporation. Except as expressly provided in the Plan, no issuance
      by
      the Company of shares of stock of any class, or securities convertible into
      shares of stock of any class, shall affect, and no adjustment by reason thereof
      shall be made with respect to, the number of shares of Common Stock subject
      to
      an award or the exercise price of any option or stock appreciation
      right.

     

    3.8 Change
      in Control

     

    (a) Change
      in Control Defined.
      For
      purposes of this Section 3.8, “Change in Control” shall mean the occurrence of
      any of the following:

     

    (i) any
      “person” (as such term is used in Sections 3(a)(9) and 13(d) of the Securities
      Exchange Act of 1934, as amended (the “Exchange Act”)) or “group” (within the
      meaning of Section 13(d)(3) of the Exchange Act), other than Peter C.
      Georgiopoulos or entities which he directly or indirectly controls (as defined
      in Rule 12b-2 under the Exchange Act), acquiring “beneficial ownership” (as
      defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of fifty
      percent (50%) or more of the aggregate voting power of the capital stock
      ordinarily entitled to elect directors of the Company;

     

    (ii) the
      sale
      of all or substantially all of the Company’s assets in one or more related
      transactions to a “person” (as such term is used in Sections 3(a)(9) and 13(d)
      of the Exchange Act) other than such a sale (x) to a subsidiary of the Company
      which does not involve a change in the equity holdings of the Company or (y)
      to
      Peter C. Georgiopoulos or entities which he directly or indirectly controls;
      or

     

    
      
        
        

      

      
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    (iii) any
      merger, consolidation, reorganization or similar event of the Company, as a
      result of which the holders of the voting stock of the Company immediately
      prior
      to such merger, consolidation, reorganization or similar event do not directly
      or indirectly hold at least fifty-one percent (51%) of the aggregate voting
      power of the capital stock of the surviving entity;

     

    (iv) a
      majority of the members of the Board of Directors are no longer Continuing
      Directors; as used herein, a “Continuing Director” means any member of the Board
      of Directors who was a member of such Board of Directors on the date hereof;
      provided that any person becoming a director subsequent to such date whose
      election or nomination for election was supported by a majority of the directors
      who then comprised the Continuing Directors shall be considered to be a
      Continuing Director; or

     

    (v) the
      Company adopts any plan of liquidation or dissolution providing for the
      distribution of all or substantially all of its assets. 

     

    (b) Effect
      of a Change in Control.
      Unless
      the Committee provides otherwise in a Grant Certificate, upon the occurrence
      of
      a Change in Control, notwithstanding any other provision of this
      Plan:

     

    (i) any
      award
      then outstanding shall become fully vested and any award in the form of an
      option or stock appreciation right shall be immediately
      exercisable;

     

    (ii) to
      the
      extent permitted by law, the Committee may, in its sole discretion, amend any
      Grant Certificate in such manner as it deems appropriate;

     

    (iii) a
      grantee
      who incurs a termination of employment for any reason, other than a dismissal
      for cause, concurrent with or within one year following the Change in Control
      may exercise any outstanding option or stock appreciation right, but only to
      the
      extent that the grantee was entitled to exercise the award on his termination
      of
      employment date, until the earlier of (A) the original expiration date of the
      award and (B) the later of (x) the date provided for under the terms of Section
      2.5 without reference to this Section 3.8(b)(iii) and (y) the first anniversary
      of the grantee’s termination of employment.

     

    (c) Miscellaneous.
      Whenever deemed appropriate by the Committee, any action referred to in
      paragraph (b) (ii) of this Section 3.8 may be made conditional upon the
      consummation of the applicable Change in Control transaction.

     

    3.9 Limitations
      Imposed by Section 162(m)

     

    (a) Qualified
      Performance-Based Compensation.
      To the
      extent the Committee determines it is desirable to grant an award to an
      individual it anticipates might be a “162(m) covered employee” (as defined
      below), with respect to which award the compensation realized by the grantee
      will or may not otherwise be deductible by operation of section 162(m) of the
      Code, the Committee may, as part of its effort to have such an award treated
      as
“qualified performance-based compensation” within the meaning of Code section
      162(m), make the vesting of the award subject to the attainment of one or more
      pre-established objective performance goals.

     

    (i)
      An
      individual is a “162(m) covered employee” if, as of the last day of the
      Company’s taxable year for which the compensation related to an award would
      otherwise be deductible (without regard to section 162(m)), he or she is (A)
      the
      chief executive officer of the Company (or is acting in such capacity) or (B)
      one of the four highest compensated officers of the Company other than the
      chief
      executive officer. Whether an individual is described in either clause (A)
      or
      (B) above shall be determined in accordance with applicable regulations under
      section 162(m) of the Code.

     

    
      
        
        

      

      
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    (ii)
      If
      the Committee has determined to grant an award to an individual it anticipates
      might be a 162(m) covered employee pursuant to this Section 3.9(a), then prior
      to the earlier to occur of (A) the first day after 25% of each period of service
      to which the performance goal relates has elapsed and (B) the ninety first
      (91st) day of such period and, in either case, while the performance outcome
      remains substantially uncertain, the Committee shall set one or more objective
      performance goals for each such 162(m) covered person for such period. Such
      goals shall be expressed in terms of (A) one or more corporate or divisional
      earnings-based measures (which may be based on net income, operating income,
      cash flow, residual income or any combination thereof) and/or (B) one or more
      corporate or divisional sales-based measures. Each such goal may be expressed
      on
      an absolute and/or relative basis, may employ comparisons with past performance
      of the Company (including one or more divisions) and/or the current or past
      performance of other companies, and in the case of earnings-based measures,
      may
      employ comparisons to capital, stockholders’ equity and shares outstanding. The
      terms of the award shall state an objective formula or standard for computing
      the amount of compensation payable, and shall preclude discretion to increase
      the amount of compensation payable, if the goal is attained.

     

    (iii)
      Except as otherwise provided herein, the measures used in performance goals
      set
      under the Plan shall be determined in accordance with generally accepted
      accounting principles (“GAAP”) and in a manner consistent with the methods used
      in the Company’s regular reports on Forms 10-K and 10-Q, without regard to any
      of the following unless otherwise determined by the Committee consistent with
      the requirements of section 162(m)(4)(C) and the regulations thereunder: (A)
      all
      items of gain, loss or expense for the period that are related to special,
      unusual or nonrecurring items, events or circumstances affecting the Company
      or
      the financial statements of the Company; (B) all items of gain, loss or expense
      for the period that are related to (x) the disposal of a business or
      discontinued operations or (y) the operations of any business acquired by the
      Company during the period; and (C) all items of gain, loss or expense for the
      period that are related to changes in accounting principles or to changes in
      applicable law or regulations.

     

    (b) Nonqualified
      Deferred Compensation.
      Notwithstanding any other provision hereunder, prior to a Change in Control,
      if
      and to the extent that the Committee determines the Company’s federal tax
      deduction in respect of an award may be limited as a result of section 162(m)
      of
      the Code, the Committee may take the following actions:

     

    (i)
      With
      respect to options, stock appreciation rights or dividend equivalent rights,
      the
      Committee may delay the exercise or payment, as the case may be, in respect
      of
      such options, stock appreciation rights or dividend equivalent rights until
      a
      date that is within 30 days after the earlier to occur of (A) the date that
      compensation paid to the grantee no longer is subject to the deduction
      limitation under section 162(m) of the Code and (B) the occurrence of a Change
      in Control. In the event that a grantee exercises an option, stock appreciation
      right or would receive a payment in respect of a dividend equivalent right
      at a
      time when the grantee is a 162(m) covered employee, and the Committee determines
      to delay the exercise or payment, as the case may be, in respect of any such
      award, the Committee shall credit cash or, in the case of an amount payable
      in
      Common Stock, the Fair Market Value of the Common Stock, payable to the grantee
      to a book account. The grantee shall have no rights in respect of such book
      account and the amount credited thereto shall not be transferable by the grantee
      other than by will or laws of descent and distribution. The Committee may credit
      additional amounts to such book account as it may determine in its sole
      discretion. Any book account created hereunder shall represent only an unfunded,
      unsecured promise by the Company to pay the amount credited thereto to the
      grantee in the future.

     

    (ii)
      With
      respect to restricted stock, unrestricted stock or performance shares, the
      Committee may require the grantee to surrender to the Committee any certificates
      with respect to restricted stock and unrestricted stock and agreements with
      respect to performance shares, in order to cancel the awards of such restricted
      stock, unrestricted stock and performance shares (and any related dividend
      equivalent rights). In exchange for such cancellation, the Committee shall
      credit to a book account a cash amount equal to the Fair Market Value of the
      shares of Common Stock subject to such awards. The amount credited to the book
      account shall be paid to the grantee within 30 days after the earlier to occur
      of (A) the date that compensation paid to the grantee no longer is subject
      to
      the deduction limitation under section 162(m) of the Code and (B) the occurrence
      of a Change in Control. The grantee shall have no

     

    
      
        
        

      

      
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    rights
      in
      respect of such book account and the amount credited thereto shall not be
      transferable by the grantee other than by will or laws of descent and
      distribution. The Committee may credit additional amounts to such book account
      as it may determine in its sole discretion. Any book account created hereunder
      shall represent only an unfunded, unsecured promise by the Company to pay the
      amount credited thereto to the grantee in the future.

     

    3.10 Right
      of Discharge Reserved

     

    Nothing
      in the Plan or in any Grant Certificate shall confer upon any grantee the right
      to continue his employment or affect any right which the Company may have to
      terminate such employment.

     

    3.11 Nature
      of Payments

     

    (a) Consideration
      for Services Performed.
      Any and
      all grants of awards and issuances of shares of Common Stock under the Plan
      shall be in consideration of services performed for the Company by the
      grantee.

     

    (b) Not
      Taken into Account for Benefits.
      All
      such grants and issuances shall constitute a special incentive payment to the
      grantee and shall not be taken into account in computing the amount of salary
      or
      compensation of the grantee for the purpose of determining any benefits under
      any pension, retirement, profit-sharing, bonus, life insurance or other benefit
      plan of the Company or under any agreement between the Company and the grantee,
      unless such plan or agreement specifically otherwise provides.

     

    3.12 Non-Uniform
      Determinations

     

    The
      Committee’s determinations under the Plan need not be uniform and may be made by
      it selectively among persons who receive, or who are eligible to receive, awards
      under the Plan (whether or not such persons are similarly situated). Without
      limiting the generality of the foregoing, the Committee shall be entitled,
      among
      other things, to make non-uniform and selective determinations, and to enter
      into non-uniform and selective Grant Certificates, as to (a) the persons to
      receive awards under the Plan, (b) the terms and provisions of awards under
      the
      Plan, and (c) the treatment of leaves of absence pursuant to Section
      1.6(c).

     

    3.13 Other
      Payments or Awards

     

    Nothing
      contained in the Plan shall be deemed in any way to limit or restrict the
      Company from making any award or payment to any person under any other plan,
      arrangement or understanding, whether now existing or hereafter in
      effect.

     

    3.14 Headings

     

    Any
      section, subsection, paragraph or other subdivision headings contained herein
      are for the purpose of convenience only and are not intended to expand, limit
      or
      otherwise define the contents of such subdivisions.

     

    3.15 Effective
      Date and Term of Plan

     

    (a) Adoption;
      Stockholder Approval.
      The
      Plan was adopted by the Board on June 10, 2001 and approved by the Company’s
      stockholders on June 12, 2001. The Plan was amended and restated on December
      12,
      2002. The Board increased the number of shares available under the Plan from
      2,900,000 to 4,400,000 on September 14, 2004 and approved the further amendment
      and restatement of the Plan on April 25, 2005, subject to approval by the
      Company’s stockholders.

     

    (b) Termination
      of Plan.
      Unless
      sooner terminated by the Board or pursuant to Paragraph (a) above, the
      provisions of the Plan respecting the grant of incentive stock options shall
      terminate on June 10, 2011 with respect to the initial 2,900,000 shares
      authorized under the Plan and on September 14, 2014 with respect to the
      additional 1,500,000 shares authorized on September 14, 2004. No incentive
      stock
      option awards shall be made under the Plan after such dates. All such awards
      made under the Plan prior to its termination shall remain in effect until
      such awards have been satisfied or terminated in accordance with the terms
      and
      provisions of the Plan and the applicable Grant
      Certificates.

     

    
      
        
        

      

      
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    3.16 Restriction
      on Issuance of Stock Pursuant to Awards

     

    The
      Company shall not permit any shares of Common Stock to be issued pursuant to
      Awards granted under the Plan unless such shares of Common Stock are fully
      paid
      and non-assessable under applicable law.

     

    3.17 Governing
      Law

     

    Except
      to the extent preempted by any applicable federal law, the Plan will be
      construed and administered in accordance with the laws of the State of New
      York,
      without giving effect to principles of conflict of laws.

    

     

     

     

     

     

    17

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