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                                                                   EXHIBIT 10.21

                              VERIDIAN CORPORATION

                            1998 STOCK INCENTIVE PLAN

                                    ARTICLE I

                                  INTRODUCTION

               1.      Purpose. The Veridian Corporation 1998 Stock Incentive
Plan (the "Plan") is intended to promote the interests of Veridian Corporation
(the "Company") and its stockholders by encouraging employees and consultants of
the Company, its Subsidiaries, as defined below, and affiliated entities and
non-employee directors of the Company to acquire or increase their equity
interest in the Company, thereby giving them an added incentive to work toward
the continued growth and success of the Company. The Board of Directors of the
Company (the "Board") also contemplates that through the Plan, the Company, its
Subsidiaries and affiliated entities will be better able to compete for the
services of the individuals needed for the continued growth and success of the
Company.

               2.      Shares Subject to the Plan. The aggregate number of
shares of Class B Common Stock, $.0001 par value per share, of the Company
("Common Stock") that may be issued under the Plan shall not exceed 1,645,922
shares; provided, however, that in the event that at any time after the
effective date of the Plan the outstanding shares of Common Stock are changed
into or exchanged for a different number or kind of shares or other securities
of the Company by reason of merger, consolidation, recapitalization,
reclassification, stock split, stock dividend, combination of shares or the
like, the aggregate number and class of securities available under the Plan
shall be ratably adjusted by the Committee (as hereinafter defined), whose
determination shall be final and binding upon the Company and all other
interested persons. In the event the number of shares to be delivered upon the
exercise or payment of any Award (as defined below) granted under the Plan is
reduced for any reason whatsoever or in the event any Award granted under the
Plan can no longer under any circumstances be exercised or paid, the number of
shares no longer subject to such Award shall thereupon be released from such
Award and shall thereafter be available under the Plan for the grant of
additional Awards. Shares issued pursuant to the Plan (i) may be treasury
shares, authorized but unissued shares or, if applicable, shares acquired in the
open market and (ii) shall be fully paid and nonassessable.

               3.      Administration of the Plan. The Plan shall be
administered by a committee (the "Committee") of two or more directors of the
Company appointed by the Board. Subject to the provisions of the Plan, the
Committee shall interpret the Plan and all Awards under the Plan, shall make
such rules as it deems necessary for the proper administration of the Plan,
shall make all other determinations necessary or advisable for the
administration of the Plan and shall correct any defect or supply any omission
or reconcile any inconsistency in the Plan or in any Award under the Plan in the
manner and to the extent that the Committee deems desirable to effectuate the
Plan. Any action

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taken or determination made by the Committee pursuant to this and the other
paragraphs of the Plan shall be conclusive on all parties. The act or
determination of a majority of the Committee shall be deemed to be the act or
determination of the Committee.

               4.      Amendment and Discontinuance of the Plan. The Board may
amend, suspend or terminate the Plan; provided, however, that each such
amendment of the Plan (a) extending the period within which options, Restricted
Stock, Phantom Stock, Performance Units, Bonus Stock or Other Stock-Based Awards
(collectively, "Awards") may be made under the Plan, (b) increasing the number
of shares of Common Stock to be awarded under the Plan, except as provided in
Article I, Paragraph 2, (c) reducing the option exercise prices per share
provided in the Plan, or (d) changing the class of persons to whom Awards may be
made under the Plan shall, in each case, be subject to approval by the Board;
provided further, however, that no amendment, suspension or termination of the
Plan may without the consent of the holder of an Award, terminate such Award or
adversely affect such person's rights in any material respect.

               5.      Granting of Awards to Employees/Consultants. The
Committee shall have the authority to grant, prior to the expiration date of the
Plan, to such employees, including officers, and consultants of the Company and
its Subsidiaries and affiliated entities as may be selected by it
("Participants") on the terms and conditions hereinafter set forth in the Plan.
In selecting employees or consultants to receive Awards, including the type and
size of the Award, the Committee may consider any factors that it may consider
relevant.

               6.      Granting of Options to Non-Employee Directors. Options
granted to Non-Employee Directors, as defined in Article IV, shall be
nonqualified options to purchase, on the terms and conditions hereinafter set
forth in Article IV, shares of Common Stock. Non-Employee Directors shall not be
eligible to receive any other Awards under the Plan.

               7.      Plan Mergers; Amendment; and Term of Plan. The Plan, as
set forth herein, is an amendment and restatement of the Calspan SRL Corporation
1995 Stock Incentive Plan, and a merger of the Veda International, Inc. Stock
Option Plan (the "Veda Plan") into the Plan. This amendment and restatement of
the Plan, including the merger of the Veda Plan into the Plan, shall be
effective upon the date of its approval by the Board. Except with respect to
Awards then outstanding, if not sooner terminated under the provisions of
Article I, Paragraph 4, the Plan shall terminate upon, and no further Awards
shall be made, after the tenth anniversary of the date the Plan was adopted by
the Board.

               8.      Leave of Absence. If a person is on military, sick leave
or other bona fide leave of absence, such person shall be considered an
"employee" for purposes of an outstanding Award during the period of such leave
provided it does not exceed 90 days, or, if longer, so long as the person's
right to reemployment is guaranteed either by statute or by contract. If the
period of leave exceeds 90 days, the employment relationship shall be deemed to
have terminated on the 91st day of such leave, unless the person's right to
reemployment is guaranteed by statute or contract.

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               9.      Definition of the Terms "Change of Control" and "IPO".
The term "Change of Control" shall be inoperative prior to the date of an IPO.
As used in the Plan, a "Change of Control" shall be deemed to have occurred
upon, and shall mean (a) the acquisition by any individual, entity or group
(within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange
Act of 1934, as amended (the "Act")) (a "Person") of beneficial ownership
(within the meaning of Rule 13d-3 promulgated under the Act) of twenty-five
percent (25%) or more of either (i) the then outstanding shares of Common Stock
of the Company (the "Outstanding Company Common Stock") or (ii) the combined
voting power of the then outstanding voting securities of the Company entitled
to vote generally in the election of directors (the "Outstanding Company Voting
Securities"); provided, however, that the following acquisitions shall not
constitute a Change of Control: (A) any acquisition directly from the Company
(excluding an acquisition by virtue of the exercise of a conversion privilege),
(B) any acquisition by the Company, (C) any acquisition by any employee benefit
plan(s) (or related trust(s)) sponsored or maintained by the Company or any
corporation controlled by the Company or (D) any acquisition by any corporation
pursuant to a reorganization, merger or consolidation, if, immediately following
such reorganization, merger or consolidation, the conditions described in clause
(i), (ii) and (iii) of clause (b) of this Paragraph 9 are satisfied; or (b) the
approval by the stockholders of the Company of a reorganization, merger or
consolidation, in each case, unless immediately following such reorganization,
merger or consolidation (i) more than 60% of, respectively, the then outstanding
shares of common stock of the corporation resulting from such reorganization,
merger or consolidation and the combined voting power of the then outstanding
voting securities of such corporation entitled to vote generally in the election
of directors is then beneficially owned, directly or indirectly, by all or
substantially all of the individuals and entities who were the beneficial
owners, respectively, of the Outstanding Company Common Stock and Outstanding
Company Voting Securities immediately prior to such reorganization, merger or
consolidation in substantially the same proportions as their ownership,
immediately prior to such reorganization, merger or consolidation, of the
Outstanding Company Common Stock and Outstanding Company Voting Securities, as
the case may be, (ii) no Person (excluding the Company, any employee benefit
plan(s) (or related trust(s)) of the Company and/or its Subsidiaries or such
corporation resulting from such reorganization, merger or consolidation and any
Person beneficially owning, immediately prior to such reorganization, merger or
consolidation, directly or indirectly, twenty-five percent (25%) or more of the
Outstanding Company Common Stock or Outstanding Company Voting Securities, as
the case may be) beneficially owns, directly or indirectly, twenty-five percent
(25%) or more of, respectively, the then outstanding shares of common stock of
the corporation resulting from such reorganization, merger or consolidation or
the combined voting power of the then outstanding voting securities of such
corporation entitled to vote generally in the election of directors and (iii) at
least a majority of the members of the board of directors of the corporation
resulting from such reorganization, merger or consolidation were members of the
Incumbent Board (as defined below) at the time of the execution of the initial
agreement providing for such reorganization, merger or consolidation. The
"Incumbent Board" shall mean individuals who, as of the date of the IPO,
constitute the Board; provided, however, that any individual becoming a director
subsequent to such date whose election, or nomination for election by the
Company's stockholders, was approved by a vote of at least a majority of the
directors then comprising the Incumbent Board shall be considered as though such
individual were a

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member of the Incumbent Board, but excluding, for this purpose, any such
individual whose initial assumption of office occurs as a result of either (1)
an actual or threatened election contest (as such terms are used in Rule 14a-11
of Regulation 14A promulgated under the Act), or an actual or threatened
solicitation of proxies or consents by or on behalf of a Person other than the
Board or (2) a plan or agreement to replace a majority of the members of the
Board then comprising the Incumbent Board.

               As used in the Plan, an "IPO" means the first underwritten
offering after the date hereof, whether primary or secondary, of Common Stock,
options, warrants or securities convertible into or exchangeable for shares of,
or rights to acquire shares of, Common Stock which is registered pursuant to an
effective registration statement filed by the Company under the Securities Act
of 1933, as amended and sold to an underwriter in a firm commitment underwriting
for reoffering to the public (other than (i) a registration statement filed on
Form S-4 (or any successor form), (ii) a registration statement filed on Form
S-8 (or any successor form), or any other applicable form with respect to the
issuance of Common Stock, or securities convertible into, or exchangeable for,
Common Stock or rights to acquire Common Stock or such securities, issued or to
be issued or granted to directors, officers or employees of the Company, and
(iii) any registration statement relating to an offering of debt securities of
the Company convertible or exchangeable into Common Stock).

                                   ARTICLE II

                           NONQUALIFIED STOCK OPTIONS

               1.      Eligible Employees/Consultants. All employees, including
officers (whether or not they are directors), and consultants of the Company,
its Subsidiaries (within the meaning of Section 424(f) of the Code) and
affiliated entities shall be eligible to receive nonqualified options under this
Article II.

               2.      Calculation of Exercise Price. Prior to an IPO the
exercise price to be paid for each share of Common Stock deliverable upon
exercise of each nonqualified option granted under Article II shall not be less
than the FMV Per Share (as defined below) on the date of grant of such option.
The exercise price for each nonqualified option granted under Article II shall
be subject to adjustment as provided in Article II, Paragraph 3(e).

               The "FMV Per Share" of the Common Stock as of any particular date
shall be determined by any fair and reasonable means determined by the
Committee, which may include, if the Common Stock is listed for trading on a
national stock exchange, the closing sales price quoted on such exchange as
published in The Wall Street Journal reports for the date of the grant, or if no
trade of the Common Stock shall have been reported for such date, the closing
sales price quoted on such exchange which is published in The Wall Street
Journal reports for the next day prior thereto on which a trade of the Common
Stock was so reported, or if the shares are not so listed or admitted to
trading, the closing sales price as reported by the Nasdaq Stock Market, or
through a similar

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organization if Nasdaq is no longer reporting such information, on such grant
date. If shares of the Common Stock are not listed or admitted to trading on any
exchange or the Nasdaq Stock Market or any similar organization, the FMV Per
Share shall be determined by the Committee in good faith using any fair and
reasonable means selected in its discretion.

               3.      Terms and Conditions of Options. Nonqualified options
shall be in such form as the Committee may from time to time approve, shall be
subject to the following terms and conditions and may contain such additional
terms and conditions, not inconsistent with this Article II, as the Committee
shall deem desirable:

                       (a)      Option Period and Conditions and Limitations on
        Exercise. No nonqualified option shall be exercisable later than the
        date which is ten years after the date of grant (the "Nonqualified
        Option Expiration Date"). To the extent not prohibited by other
        provisions of the Plan, each nonqualified option shall be exercisable at
        such time or times as the Committee in its discretion may determine at
        the time such option is granted.

                       (b)      Termination of Employment and Death. For
        purposes of this Article II, a Participant's employment shall be deemed
        to have terminated at the close of business on the day on which he is no
        longer for any reason whatsoever (including his death) employed by the
        Company, a Subsidiary or an affiliated entity of the Company. Unless the
        option agreement specifically provides otherwise, if a Participant's
        employment is terminated for any reason whatsoever (including his
        death), (1) each vested nonqualified option granted to him (determined
        as of his termination of employment date) shall wholly and completely
        terminate as follows:

                             (i)     At the time the Participant's employment
               is terminated, if termination occurs within the six-month period
               following the date of grant; or

                             (ii)    At the time the Participant's employment
               is terminated, if his employment is terminated because he is
               discharged for Cause (as defined below); or

                             (iii)   At the expiration of a period of one year
               after the Participant's death (but in no event later than the
               Nonqualified Option Expiration Date), if the Participant's
               employment is terminated after the six-month period following the
               date of grant by reason of his death. To the extent exercisable
               at death, a nonqualified option may be exercised by the
               Participant's estate or by the person or persons who acquire the
               right to exercise his option by bequest or inheritance with
               respect to any or all of the shares remaining subject to his
               option at the time of his death; or

                             (iv)    At the expiration of a period of three
               years after the Participant's employment is terminated, if the
               Participant's employment is terminated after the six-month
               period following the date of grant because of

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               Retirement or Disability (as such terms are defined below) (but
               in no event later than the Nonqualified Option Expiration Date);
               or

                             (v)     At the expiration of a period of three
               months after the Participant's employment is terminated (but in
               no event later than the Nonqualified Option Expiration Date), if
               the Participant's employment is terminated after the six-month
               period following the date of grant for any reason other than his
               death, Retirement, Disability or for Cause; or

                             (vi)    Notwithstanding the above, with respect to
               all options outstanding at the date of a Change of Control, if
               the Participant's employment is terminated within the one-year
               period following such Change of Control other than for Cause, at
               the expiration of the first anniversary of the Participant's date
               of termination, unless subparagraph (iii), (iv) or (v) provides a
               longer period for the exercise of such options (but in no event
               later than the Nonqualified Option Expiration Date); and

        (2) all nonvested nonqualified options granted to him (determined as of
        his termination of employment date) shall immediately terminate on such
        date of termination of employment.

        As used in this Plan the term "Retirement" means the termination of a
        Participant's employment with the Company, its Subsidiaries and
        affiliated entities (i) on or after reaching age 65 or (ii) on or after
        reaching age 55 with the consent of the Board, for reasons other than
        death, Disability or for Cause; the term "Disability" shall mean a
        Participant is suffering from a mental or physical disability, which, in
        the opinion of the Board, prevents the Participant from performing his
        regular duties and is expected to be of long continued duration or to
        result in death; the term "Employment" includes any period in which the
        Participant is a consultant to the Company, a Subsidiary or an
        affiliated entity; and the term "Cause" means (A) the willful commission
        by a Participant of a criminal or other act that causes or is likely to
        cause substantial economic damage to the Company, a Subsidiary or an
        affiliate of the Company or substantial injury to the business
        reputation of the Company, a Subsidiary or affiliate of the Company; (B)
        the commission by a Participant of an act of fraud in the performance of
        such Participant's duties on behalf of the Company, a Subsidiary or
        affiliate of the Company; or (C) the continuing willful failure of a
        Participant to perform the duties of such Participant to the Company, a
        Subsidiary or an affiliate of the Company (other than such failure
        resulting from the Participant's incapacity due to physical or mental
        illness) after written notice thereof (specifying the particulars
        thereof in reasonable detail) and a reasonable opportunity to be heard
        and cure such failure are given to the Participant by the Committee. For
        purposes of the Plan, no act, or failure to act, on the Participant's
        part shall be considered "willful" unless done or omitted to be done by
        the Participant not in good faith and without reasonable belief that the
        Participant's action or omission was in the best interest of the
        Company, the Subsidiary or the affiliate of the Company, as the case may
        be.

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                      (c)       Manner of Exercise. In order to exercise a
        nonqualified option, the person or persons entitled to exercise it shall
        deliver to the Company payment in full for the shares being purchased,
        together with any required withholding tax. The payment of the exercise
        price for each option granted hereunder shall either be (i) in cash or
        by check payable and acceptable to the Company, (ii) with the consent of
        the Committee, by tendering to the Company shares of Common Stock owned
        by the person for more than six months having an aggregate FMV Per Share
        as of the date of exercise and tender that is not greater than the full
        exercise price for the shares with respect to which the option is being
        exercised and by paying any remaining amount of the exercise price as
        provided in (i) above, or (iii) following an IPO and subject to such
        instructions as the Committee may specify, at the person's written
        request the Company may deliver certificates for the shares of Common
        Stock for which the option is being exercised to a broker for sale on
        behalf of the person, provided that the person has irrevocably
        instructed such broker to remit directly to the Company on the person's
        behalf the full amount of the exercise price from the proceeds of such
        sale. In the event that the person elects to make payment as allowed
        under clause (ii) above, the Committee may, upon confirming that the
        optionee owns the number of additional shares being tendered, authorize
        the issuance of a new certificate for the number of shares being
        acquired pursuant to the exercise of the option less the number of
        shares being tendered upon the exercise and return to the person (or not
        require surrender of) the certificate for the shares being tendered upon
        the exercise. If the Committee so requires, such person or persons shall
        also deliver a written representation that all shares being purchased
        are being acquired for investment and not with a view to, or for resale
        in connection with, any distribution of such shares.

                      (d)       Options not Transferable. Except as provided
        below, no nonqualified option granted hereunder shall be transferable
        otherwise than by will or by the laws of descent and distribution or
        pursuant to a qualified domestic relations order and, during the
        lifetime of the Participant to whom any such option is granted, it shall
        be exercisable only by the Participant. Any attempt to transfer, assign,
        pledge, hypothecate or otherwise dispose of, or to subject to execution,
        attachment or similar process, any nonqualified option granted
        hereunder, or any right thereunder, contrary to the provisions hereof,
        shall be void and ineffective, shall give no right to the purported
        transferee, and shall, at the sole discretion of the Committee, result
        in forfeiture of the option with respect to the shares involved in such
        attempt. To the extent provided by the Committee with respect to a
        specific option, the Participant may transfer all or part of such option
        to immediate family members or related family trusts or partnerships or
        similar entities, on such terms and conditions as the Committee may
        impose.

                      (e)       Adjustment of Options. In the event that at any
        time after the effective date of the Plan the outstanding shares of
        Common Stock are changed into or exchanged for a different number or
        kind of shares or other securities of the Company by reason of merger,
        consolidation, recapitalization, reclassification, stock split, stock
        dividend, combination of shares or the like, the Committee shall make an
        appropriate and equitable adjustment in the

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        number and kind of shares as to which all outstanding nonqualified
        options granted, or portions thereof then unexercised, shall be
        exercisable, to the end that after such event the shares subject to the
        Plan and each Participant's proportionate interest shall be maintained
        as before the occurrence of such event. Such adjustment in an
        outstanding nonqualified option shall be made without change in the
        total price applicable to the option or the unexercised portion of the
        option (except for any change in the aggregate price resulting from
        rounding-off of share quantities or prices) and with any necessary
        corresponding adjustment in exercise price per share. Any such
        adjustment made by the Committee shall be final and binding upon all
        Participants, the Company, and all other interested persons.

                      (f)       Listing and Registration of Shares. Each
        nonqualified option shall be subject to the requirement that if at any
        time the Committee determines, in its discretion, that the listing,
        registration, or qualification of the shares subject to such option
        under any securities exchange or under any state or federal law, or the
        consent or approval of any governmental regulatory body, is necessary or
        desirable as a condition of, or in connection with, the issue or
        purchase of shares thereunder, such option may not be exercised in whole
        or in part unless such listing, registration, qualification, consent or
        approval shall have been effected or obtained and the same shall have
        been free of any conditions not acceptable to the Committee.

                      (g)       Reload Options. An option may, in the discretion
        of the Committee, include a reload stock option right which shall
        entitle the Participant, upon (i) the exercise of such original option
        prior to the Participant's termination of employment and (ii) payment of
        the appropriate exercise price in shares of Common Stock that have been
        owned by such Participant for at least six months prior to the date of
        exercise, to receive a new option (the "Reload Option") to purchase, at
        the FMV Per Share on the date of the exercise of the original option,
        the number of shares of Common Stock equal to the number of whole shares
        delivered by the Participant in payment of the exercise price of the
        original option. Such Reload Option shall be subject to the same terms
        and conditions, including expiration date, and shall be exercisable at
        the same time or times as the original option with respect to which it
        is granted.

               4.      Amendment. The Committee may, with the consent of the
person or persons entitled to exercise any outstanding nonqualified option,
amend such nonqualified option; provided, however, that any such amendment
increasing the number of shares of Common Stock subject to such option (except
as provided in Article II, Paragraph 3(e)) or reducing the exercise price per
share of such option (except as provided in Article II, Paragraph 3(e)) shall in
each case be subject to approval by the stockholders of the Company. The
Committee may at any time or from time to time, in its discretion, in the case
of any nonqualified option which is not then immediately exercisable in full,
accelerate the time or times at which such option may be exercised to any
earlier time or times. The Committee, in its absolute discretion, may grant to
holders of outstanding nonqualified options, in exchange for the surrender and
cancellation of such options, new options having exercise prices

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lower (or higher) than the exercise price provided in the options so surrendered
and canceled and containing such other terms and conditions as the Committee may
deem appropriate.

               5.      Acceleration upon a Change of Control or IPO.
Notwithstanding any provision in the Plan or in any document or instrument
evidencing a nonqualified option granted hereunder to the contrary, upon the
occurrence of a Change of Control or an IPO, each nonqualified option previously
granted hereunder which is not then immediately exercisable in full shall be
immediately exercisable in full upon such event.

               6.      Other Provisions.

                       (a)      The person or persons entitled to exercise, or
        who have exercised, a nonqualified option shall not be entitled to any
        rights as a stockholder of the Company with respect to any shares
        subject to such option until he shall have become the holder of record
        of such shares.

                       (b)      No nonqualified option granted hereunder shall
        be construed as limiting any right which the Company, any Subsidiary or
        affiliated entity of the Company may have to terminate at any time, with
        or without cause, the employment of any person to whom such option has
        been granted.

                       (c)      Notwithstanding any provision of the Plan or the
        terms of any nonqualified option, the Company shall not be required to
        issue any shares hereunder if such issuance would, in the judgment of
        the Committee, constitute a violation of any state or federal law or of
        the rules or regulations of any governmental regulatory body.

                                   ARTICLE III

                             INCENTIVE STOCK OPTIONS

                             [INTENTIONALLY DELETED]

                                   ARTICLE IV

                       NON-EMPLOYEE DIRECTOR STOCK OPTIONS

               1.     Eligible Directors.  Persons who are members of the Board
but who are neither employees nor consultants of the Company, its Subsidiaries
or affiliated entities ("Non-Employee Directors") shall be eligible to receive
nonqualified options under, and solely under, this Article IV.

               2.      Grant of Options to Non-Employee Directors. The Committee
shall have the authority to grant, prior to the expiration of the Plan, to those
Non-Employee Directors as may be

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selected by it nonqualified options to purchase shares of Common Stock on the
terms and conditions hereinafter set forth in this Article IV. In determining
the number of shares to be subject to any such option, the Committee may
consider such facts as it may consider relevant.

               3.      [Intentionally Deleted]

               4.      Calculation of Exercise Price. The exercise price to be
paid for each share of Common Stock deliverable upon exercise of each option
granted under this Article IV shall be equal to the FMV Per Share price on the
date of the grant of such option. The exercise price for each option granted
under Article IV shall be subject to adjustment as provided in Article IV,
Paragraph 5(e).

               5.      Terms and Conditions of Options.  Options granted under
this Article IV shall be subject to the following terms and conditions:

                       (a)      Option Period and Conditions and Limitations on
        Exercise. Each option granted under this Article IV shall be exercisable
        from time to time, in whole or in part, at any time after six months
        from the date of grant and prior to the date which is ten years after
        the date of grant (the "Option Expiration Date").

                       (b)      Termination of Directorship and Death. For
        purposes of Article IV, a Non-Employee Director's directorship shall be
        deemed to have terminated at the close of business on the day on which
        he ceases to be a member of the Board for any reason whatsoever
        (including his death). If a Non-Employee Director's directorship is
        terminated for any reason whatsoever (including his death), each option
        granted to him under Article IV and all of his rights thereunder shall
        wholly and completely terminate:

                                (i)    At the time the Non-Employee Director's
               directorship is terminated if termination occurs within the
               six-month period following the date of grant; or

                                (ii)   At the time the Non-Employee Director's
               directorship is terminated if his directorship is terminated as a
               result of his removal from the Board for Cause (other than
               Disability or in accordance with the provisions of the Company's
               Bylaws regarding automatic termination of directors' terms of
               office); or

                                (iii)   At the expiration of a period of one
               year after the Non-Employee Director's death (but in no event
               later than the Option Expiration Date) if the Non-Employee
               Director's directorship is terminated after the six-month period
               following the date of grant by reason of his death. To the extent
               exercisable at death, an option granted under Article IV may be
               exercised by the Non-Employee Director's estate or by the person
               or persons who acquire the right to exercise his

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               option by bequest or inheritance with respect to any or all of
               the shares remaining subject to his option at the time of his
               death; or

                                (iv)    At the expiration of a period of three
               years after the Non-Employee Director's directorship is
               terminated if such person's directorship is terminated after the
               six-month period following the date of grant as a result of such
               person's resignation or removal from the Board because of
               disability or in accordance with the provisions of the Company's
               Bylaws regarding automatic termination of directors' terms of
               office (but in no event later than the Option Expiration Date);
               or

                                (v)     At the expiration of a period of three
               months after the Non-Employee Director's directorship is
               terminated (but in no event later than the Option Expiration
               Date) if the Non-Employee Director's directorship is terminated
               after the six-month period following the date of grant for any
               reason other than the reasons specified in Article IV, Paragraphs
               5(b)(ii) through 5(b)(iv).

                      (c)       Manner of Exercise. In order to exercise an
        option granted under Article IV, the person or persons entitled to
        exercise it shall deliver to the Company payment in full for the shares
        being purchased. The payment of the exercise price for each option
        granted under Article IV shall either be in (i) in cash or by check
        payable and acceptable to the Company, or (ii) with the consent of the
        Committee, by tendering to the Company shares of Common Stock owned by
        the person for more than six months having an aggregate FMV Per Share as
        of the date of exercise and tender that is not greater than the full
        exercise price for the shares with respect to which the option is being
        exercised and by paying any remaining amount of the exercise price as
        provided in (i) above. In the event that the person elects to make
        payment as allowed under clause (ii) above, the Company may, upon
        confirming that the person owns the number of additional shares being
        tendered, authorize the issuance of a new certificate for the number of
        shares being acquired pursuant to the exercise of the option less the
        number of shares being tendered upon the exercise and return to the
        person (or not require surrender of) the certificate for the shares
        being tendered upon the exercise. If the Company so requires, such
        person or persons shall also deliver a written representation that all
        shares being purchased are being acquired for investment and not with a
        view to, or for resale in connection with, any distribution of such
        shares.

                      (d)       Options Not Transferable. Except as provided
        below, no option granted under Article IV shall be transferable
        otherwise than by will or by the laws of descent and distribution and,
        during the lifetime of the Non-Employee Director to whom any such option
        is granted, it shall be exercisable only by such Non-Employee Director.
        Any attempt to transfer, assign, pledge, hypothecate or otherwise
        dispose of, or to subject to execution, attachment or similar process,
        any option granted under Article IV, or any right thereunder, contrary
        to the provisions hereof, shall be void and ineffective and shall give
        no right to the purported transferee. To the extent provided by the
        Committee with respect to a

                                      -11-

<PAGE>

        specific option, the Non-Employee Director may transfer all or part of
        such option to immediate family members or related family trusts or
        partnerships or similar entities, on such terms and conditions as the
        Committee may impose.

                       (e)      Adjustment of Shares. The shares with respect
        to which options may be granted pursuant to Article IV are shares of
        Common Stock as presently constituted, but if, and whenever, prior to
        the expiration of an option theretofore granted, the Company shall
        effect a subdivision or consolidation of shares of Common Stock or the
        payment of a stock dividend on Common Stock without receipt of
        consideration by the Company, the number of shares of Common Stock with
        respect to which such option may thereafter be exercised (i) in the
        event of an increase in the number of outstanding shares be
        proportionately increased, and the purchase price per share shall be
        proportionately reduced, and (ii) in the event of a reduction in the
        number of outstanding shares shall be proportionately reduced, and the
        purchase price per share shall be proportionately increased. If the
        Company recapitalizes or otherwise changes its capital structure,
        thereafter upon any exercise of an option theretofore granted the
        optionee shall be entitled to purchase under such option, in lieu of the
        number of class of shares of Common Stock as to which such option shall
        then be exercisable, the number and class of shares of stock and
        securities to which the optionee would have been entitled pursuant to
        the terms of the recapitalization if, immediately prior to such
        recapitalization, the optionee had been the holder of record of the
        number of shares of Common Stock as to which such option is then
        exercisable. Any adjustment provided for in the preceding provisions of
        this Paragraph 5(e) shall be subject to any required stockholder action.

                       (f)      Listing and Registration of Shares. Each option
        granted under Article IV shall be subject to the requirement that if at
        any time the Company determines, in its discretion, that the listing,
        registration, or qualification of the shares subject to such option
        under any securities exchange or under any state or federal law, or the
        consent or approval of any governmental regulatory body, is necessary or
        desirable as a condition of, or in connection with, the issue or
        purchase of shares thereunder, such option may not be exercised in whole
        or in part unless such listing, registration, qualification, consent or
        approval shall have been effected or obtained and the same shall have
        been free of any conditions not acceptable to the Company.

               6.      Acceleration upon a Change of Control or IPO.
Notwithstanding any provision in the Plan or in any document or instrument
evidencing an option granted under this Article IV to the contrary, upon the
occurrence of a Change of Control or an IPO, each option granted under this
Article IV which is not then immediately exercisable in full shall be
immediately exercisable in full upon such event.

               7.     Other Provisions.

                                      -12-
<PAGE>

                       (a)      The person or persons entitled to exercise, or
        who have exercised , an option granted under Article IV shall not be
        entitled to any rights as a stockholder of the Company with respect to
        any shares subject to such option until he shall have become the holder
        of record of such shares.

                       (b)      No option granted under Article IV shall be
        construed as limiting any right which either the stockholders of the
        Company or the Board may have to remove at any time, with or without
        cause, any person to whom such option has been granted from the Board.

                       (c)      Notwithstanding any provision of the Plan or the
        terms of any option granted under Article IV, the Company shall not be
        required to issue any shares hereunder if such issuance would, in the
        judgment of the Committee, constitute a violation of any state or
        federal law or of the rule or regulations of any governmental regulatory
        body.

                                    ARTICLE V

              RESTRICTED STOCK, PHANTOM STOCK AND PERFORMANCE UNITS

               1.      Eligible Persons. All employees, including officers
(whether or not they are directors), and consultants of the Company, its
Subsidiaries and affiliated entities shall be eligible to receive awards of
Restricted Stock, Phantom Stock and/or Performance Units (as hereinafter
defined) under this Article V.

               2.      Terms and Conditions of Awards. Awards granted under this
Article to a Participant shall be (i) with respect to Restricted Stock, shares
of Common Stock, (ii) with respect to Phantom Stock, a phantom share of Common
Stock, and (iii) with respect to a Performance Unit, a unit with a value of
$100, which, if earned, shall be payable in shares of Common Stock, cash or any
combination thereof as determined by the Committee. These Awards shall be
subject to the following terms and conditions and may contain such additional
terms and conditions, not inconsistent with Article V, as the Committee shall
deem desirable:

                       (a)      Restricted Period and Vesting. Subject to
        Article V, Paragraphs 3 and 4, no shares of Restricted Stock, Phantom
        Stock or Performance Units shall be subject to becoming vested; i.e.,
        earned and nonforfeitable, earlier than the date which is six months
        from the date of grant nor later than the date which is ten years after
        the date of grant (the "Restricted Period"). To the extent not
        prohibited by other provisions of the Plan, each share of Restricted
        Stock and Phantom Stock and each Performance Unit shall become vested
        upon (i) the achievement of such performance goals (Company, Subsidiary
        and/or individual) over such Restricted Period, or (ii) at the end of
        the Restricted Period without regard to the achievement of any
        performance goals, as the Committee, in its discretion, may determine on
        the grant of such Award.

                                      -13-
<PAGE>

                       (b)      Termination of Employment and Death. For
        purposes of this Article V, a Participant's employment shall be deemed
        to have terminated at the close of business on the day on which he is no
        longer for any reason whatsoever (including his death) employed by the
        Company or a Subsidiary or an affiliated entity of the Company. Unless
        the Award Agreement specifically provides otherwise, if an employment is
        terminated for any reason whatsoever (including his death), all of his
        rights with respect to each share of Restricted Stock, Phantom Stock and
        each Performance Unit granted to him shall wholly and completely
        terminate:

                                (i)     At the time the Participant's employment
               is terminated if termination is for any reason other than
               Retirement, Disability or death; or

                                (ii)    If the Participant's employment is
               terminated due to Retirement, Disability or death, at the time of
               such termination but only with respect to that portion of the
               Award which is equal to the fraction, the numerator of which is
               the number of full calendar months remaining in the Restricted
               Period and the denominator of which is the total number of
               calendar months in the Restricted Period; provided, however, the
               remaining, nonforfeited portion of the Award shall continue to be
               subject to the terms and conditions of the Restricted Period and
               at the end of such Restricted Period shall be forfeited and/or
               paid as unrestricted stock and/or cash, as the case may be, to
               the Participant depending on the achievement of the goals for
               such Restricted Period; provided, further however, the Committee
               may, in its sole discretion, deem the terms and conditions have
               been met at the date of such termination for all or part of such
               remaining, nonforfeited portion of the Award.

                       (c)      Performance Awards not Transferable. No shares
        of Restricted Stock, Phantom Stock or Performance Units shall be
        transferable during a Restricted Period otherwise than by will or by the
        laws of descent and distribution. Any attempt to transfer, assign,
        pledge, hypothecate or otherwise dispose of, or to subject to execution,
        attachment or similar process, any shares of Restricted Stock, Phantom
        Stock or Performance Units, or any right thereunder, contrary to the
        provisions hereof, shall be void and ineffective, shall give no right to
        the purported transferee, and shall, at the sole discretion of the
        Committee, result in forfeiture of the shares of the Restricted Stock,
        Phantom Stock or Performance Units involved in such attempt.

               3.      Amendment.  The Committee may, with the consent of the
Participant awarded any outstanding Restricted Stock, Phantom Stock or
Performance Units, amend the performance objectives and/or the Restricted Period
for earning such Award.

               4.      Acceleration upon a Change of Control. Notwithstanding
any provision in Article V or in any document or instrument evidencing the
Restricted Stock, Phantom Stock or Performance Units granted hereunder to the
contrary, upon the occurrence of a Change of Control each share of Restricted
Stock, Phantom Stock and each Performance Unit previously granted under

                                      -14-

<PAGE>

Article V which is not then immediately vested in full shall be immediately
vested and payable in full upon such event with all performance goals being
deemed met at the maximum level.

               5.      Other Provisions.

                       (a)      No grant of Restricted Stock, Phantom Stock or
        Performance Units shall be construed as limiting any right which the
        Company or any Subsidiary or affiliated entity of the Company may have
        to terminate at any time, with or without cause, the employment of any
        person to whom such Award has been granted.

                       (b)      Each certificate representing Restricted Stock
        awarded under the Plan shall be registered in the name of the
        Participant and, during the Restricted Period, shall be left in deposit
        with the Company and a stock power endorsed in blank. The grantee of
        Restricted Stock shall have all the rights of a stockholder with respect
        to such shares including the right to vote and the right to receive
        dividends or other distributions paid or made with respect to such
        shares. Any certificate or certificates representing shares of
        Restricted Stock shall bear a legend similar to the following:

                      The shares represented by this certificate have been
               issued pursuant to the terms of the Veridian Corporation 1998
               Stock Incentive Plan and may not be sold, pledged, transferred,
               assigned or otherwise encumbered in any manner except as is set
               forth in the terms of such award dated __________ 19___.

                      After the satisfaction of all of the terms and conditions
        set by the Committee with respect to an Award of (i) Restricted Stock, a
        certificate, without the legend set forth above, for the number of
        shares of Common Stock that are no longer subject to such restrictions,
        terms and conditions shall be delivered to the employee, (ii) Phantom
        Stock, to the extent not paid in cash, a certificate for the number of
        shares of Common Stock equal to the number of Shares of Phantom Stock
        earned, and (iii) Performance Units, cash and/or a certificate for the
        number of shares of Common Stock equal in value to the number of
        Performance Units vested shall be delivered to the person. The remaining
        unearned shares of Restricted Stock issued with respect to such Award,
        if any, or unearned Phantom Stock or Performance Units, as the case may
        be, shall either be forfeited back to the Company or, if appropriate
        under the terms of the Award, shall continue to be subject to the
        restrictions, terms and conditions set by the Committee with respect to
        such Award.

                                   ARTICLE VI

                                   BONUS STOCK

               The Committee may, from time to time and subject to the
provisions of the Plan, grant shares of Bonus Stock to employees, including
officers (whether or not they are directors), and

                                      -15-
<PAGE>

consultants of the Company, its Subsidiaries and affiliated entities. Bonus
Stock shall be shares of Common Stock that are not subject to a Restricted
Period under Article V.

                                   ARTICLE VII

                            OTHER STOCK-BASED AWARDS

               The Committee is hereby authorized to grant to employees,
including officers (whether or not they are directors), and consultants of the
Company, its Subsidiaries and affiliated entities an "Other Stock-Based Award,"
which shall consist of a right which (i) is not an Award described in any other
Article and (ii) is denominated or payable in, valued in whole or in part by
reference to, or otherwise based on or related to, shares of Common Stock
(including, without limitation, securities convertible into shares of Common
Stock) as are deemed by the Committee to be consistent with the purposes of the
Plan. Subject to the terms of the Plan, the Committee shall determine the terms
and conditions of any such Other Stock-Based Award.

                                  ARTICLE VIII

                              WITHHOLDING FOR TAXES

               Any issuance of Common Stock pursuant to the exercise of an
option or payment of any other Award under the Plan shall not be made until
appropriate arrangements satisfactory to the Company have been made for the
payment of any tax amounts (federal, state, local or other) that may be required
to be withheld or paid by the Company with respect thereto. Such arrangements
may, at the discretion of the Committee, include allowing the person to tender
to the Company shares of Common Stock owned by the person, or to request the
Company to withhold shares of Common Stock being acquired pursuant to the Award,
whether through the exercise of an option or as a distribution pursuant to the
Award, which have an aggregate FMV Per Share as of the date of such withholding
that is not greater than the sum of all tax amounts to be withheld with respect
thereto, together with payment of any remaining portion of such tax amounts in
cash or by check payable and acceptable to the Company.

               Notwithstanding the foregoing, if on the date of an event giving
rise to a tax withholding obligation on the part of the Company the person is an
officer or individual subject to Rule 16b-3, such person may direct that such
tax withholding be effectuated by the Company withholding the necessary number
of shares of Common Stock (at the tax rate required by the Code) from such Award
payment or exercise.

                                      -16-

<PAGE>

                                   ARTICLE IX

                                  MISCELLANEOUS

        1.     No Rights to Awards. No Participant or other Person shall have
any claim to be granted any Award, there is no obligation for uniformity of
treatment of Participants, or holders or beneficiaries of Awards and the terms
and conditions of Awards need not be the same with respect to each recipient.

        2.     No Right to Employment. The grant of an Award shall not be
construed as giving a Participant the right to be retained in the employ of the
Company or any Subsidiary or affiliated entity. Further, the Company or a
Subsidiary or affiliated entity may at any time dismiss a Participant from
employment, free from any liability or any claim under the Plan, unless
otherwise expressly provided in the Plan or in any Award Agreement.

        3.     Governing Law. The validity, construction, and effect of the Plan
and any rules and regulations relating to the Plan shall be determined in
accordance with the laws of the State of Delaware and applicable federal law.

        4.     Severability. If any provision of the Plan or any Award is or
becomes or is deemed to be invalid, illegal, or unenforceable in any
jurisdiction or as to any Person or Award, or would disqualify the Plan or any
Award under any law deemed applicable by the Committee, such provision shall be
construed or deemed amended to conform to the applicable laws, or if it cannot
be construed or deemed amended without , in the determination of the Committee,
materially altering the intent of the Plan or the Award, such provision shall be
stricken as to such jurisdiction, Person or Award and the remainder of the Plan
and any such Award shall remain in full force and effect.

        5.     Other Laws. The Committee may refuse to issue or transfer any
shares or other consideration under an Award if, acting in its sole discretion,
it determines that the issuance of transfer or such shares or such other
consideration might violate any applicable law.

        6.     Outstanding Awards. All previously granted Awards under the Plan
and the Veda Plan that are outstanding immediately prior to the effective date
of the Plan, which includes the merger of the Veda Plan into the Plan, shall
thereafter be subject to the terms of the Plan as hereby amended and restated,
except to the extent the terms hereof would (i) cause any such outstanding
incentive stock option to cease to qualify as such or (ii) materially adversely
affect the Participant's rights under such Award.

        7.     Substitute Awards. Awards may be granted from time to time in
substitution for similar awards held by employees of other corporations who
become employees of the Company or a Subsidiary as the result of a merger or
consolidation of such employee's employing corporation with the Company or any
Subsidiary, or the acquisition by the Company or any Subsidiary of the assets of
such employee's employing corporation, or the acquisition by the Company or any
Subsidiary of the

                                      -17-

<PAGE>

stock of such employee's employing corporation. The terms and conditions of
substitute Awards granted may vary from the terms and conditions set forth in
the Plan to the extent the Committee deems it appropriate.

                                      -18-<PAGE>
                                                                   EXHIBIT 10.22

                              VERIDIAN CORPORATION

                            2000 STOCK INCENTIVE PLAN
                            (AS AMENDED AND RESTATED)

                                    ARTICLE I
                                  INTRODUCTION

         1.1      PURPOSE. The Veridian Corporation 2000 Stock Incentive Plan
(the "Plan") is intended to promote the interests of Veridian Corporation (the
"Company") and its stockholders by encouraging employees and consultants of the
Company or its Affiliates (as defined below) and Non-Employee Directors (as
defined below) to acquire or increase their equity interests in the Company,
thereby giving them an added incentive to work toward the continued growth and
success of the Company. The Board of Directors of the Company (the "Board") also
contemplates that through the Plan, the Company and its Affiliates will be
better able to compete for the services of the individuals needed for the
continued growth and success of the Company.

         1.2      SHARES SUBJECT TO THE PLAN. The aggregate number of shares of
Class B Common Stock, $.0001 par value per share, of the Company ("Common
Stock") that may be issued under the Plan shall not exceed 3,100,000 shares;
provided, however, that in the event that at any time after the effective date
of the Plan the outstanding shares of Common Stock are changed into or exchanged
for a different number or kind of shares or other securities of the Company by
reason of a merger, consolidation, recapitalization, reclassification, stock
split, stock dividend, combination of shares or the like, the aggregate number
and class of securities available under the Plan shall be ratably adjusted by
the Committee (as defined below), whose determination shall be final and binding
upon the Company and all other interested persons. In the event the number of
shares to be delivered upon the exercise or payment of any Award (as defined
below) granted under the Plan is reduced for any reason whatsoever or in the
event any Award granted under the Plan can no longer under any circumstances be
exercised or paid, the number of shares no longer subject to such Award shall
thereupon be released from such Award and shall thereafter be available under
the Plan for the grant of additional Awards. Shares issued pursuant to the Plan
(i) may be treasury shares, authorized but unissued shares or, if applicable,
shares acquired in the open market and (ii) shall be fully paid and
nonassessable.

         1.3.     ADMINISTRATION OF THE PLAN. The Plan shall be administered by
the Committee. Subject to the provisions of the Plan, the Committee shall
interpret the Plan and all Awards under the Plan, shall make such rules as it
deems necessary for the proper administration of the Plan, shall make all other
determinations necessary or advisable for the administration of the Plan and
shall correct any defect or supply any omission or reconcile any inconsistency
in the Plan or in any Award under the Plan in the manner and to the extent that
the Committee deems desirable to effectuate the Plan. Any action taken or
determination made by the Committee pursuant to this and the other paragraphs of
the Plan shall be conclusive on all parties. The act or

<PAGE>

determination of a majority of the Committee shall be deemed to be the act or
determination of the Committee.

         1.4      AMENDMENT AND DISCONTINUANCE OF THE PLAN. The Board may amend,
suspend or terminate the Plan; provided, however, no amendment, suspension or
termination of the Plan may without the consent of the holder of an Option,
Purchased Stock, Restricted Stock, Phantom Stock, Performance Unit, Bonus Stock
or Other Stock-Based Award, terminate such Award or adversely affect such
person's rights with respect to such Award in any material respect.

         1.5      GRANTING OF AWARDS TO PARTICIPANTS. The Committee shall have
the authority to grant, prior to the expiration date of the Plan, Awards to such
Employees, Consultants and Non-Employee Directors as may be selected by it on
the terms and conditions hereinafter set forth in the Plan. In selecting the
persons to receive Awards, including the type and size of the Award, the
Committee may consider any factors that it may consider relevant.

         1.6      GRANTING OF OPTIONS TO NON-EMPLOYEE DIRECTORS. Non-Employee
Directors, as defined in Article IV, shall not be eligible to receive any Awards
under the Plan other than Options to purchase shares of Common Stock on the
terms and conditions hereinafter set forth in Article IV.

         1.7      AMENDMENT AND TERM OF PLAN. The Plan was originally known as
the Calspan SRL Corporation 1995 Stock Incentive Plan. The Veda International,
Inc. Stock Option Plan (the "Veda Plan") was merged into the Plan in 1998. This
amendment and restatement of the Plan shall be effective upon the date of its
approval by the Board (the "Effective Date"). The provisions of the Plan are
applicable to all Awards (as hereinafter defined) granted after the Effective
Date. Except with respect to Awards then outstanding, if not sooner terminated
under the provisions of Article I, Paragraph 4, the Plan shall terminate upon,
and no further Awards shall be made, after the tenth anniversary of the
Effective Date.

         1.8      LEAVE OF ABSENCE. If a person is on military, sick leave or
other bona fide leave of absence, such person shall be considered an "employee"
for purposes of an outstanding Award during the period of such leave provided it
does not exceed 90 days, or, if longer, so long as the person's right to
reemployment is guaranteed either by statute or by contract. If the period of
leave exceeds 90 days, the employment relationship shall be deemed to have
terminated on the 91st day of such leave, unless the person's right to
reemployment is guaranteed by statute or contract.

<PAGE>

         1.9      DEFINITIONS.

         As used in the Plan, the following terms shall have the meanings set
forth below:

         "1933 Act" means the Securities Act of 1933, as amended.

         "1934 Act" means the Securities Exchange Act of 1934, as amended.

         "Affiliate" means (i) any entity in which the Company, directly or
indirectly, owns 10% or more of the combined voting power, as determined by the
Committee, (ii) any "parent corporation" of the Company (as defined in Section
424(e) of the Code) and (iii) any "subsidiary corporation" of any such parent
corporation (as defined in Section 424(f) of the Code) thereof.

         "Awards" means, collectively, Options, Purchased Stock, Restricted
Stock, Phantom Stock, Performance Units, Bonus Stock or Other Stock-Based
Awards.

         "Cause" means (i) the willful commission by a Participant of a criminal
or other act that causes or is likely to cause substantial economic damage to
the Company or an Affiliate or substantial injury to the business reputation of
the Company or Affiliate; (ii) the commission by a Participant of an act of
fraud in the performance of such Participant's duties on behalf of the Company
or an Affiliate; or (iii) the continuing willful failure of a Participant to
perform the duties of such Participant to the Company or an Affiliate (other
than such failure resulting from the Participant's incapacity due to physical or
mental illness) after written notice thereof (specifying the particulars thereof
in reasonable detail) and a reasonable opportunity to be heard and cure such
failure are given to the Participant by the Committee. For purposes of the Plan,
no act, or failure to act, on the Participant's part shall be considered
"willful" unless done or omitted to be done by the Participant not in good faith
and without reasonable belief that the Participant's action or omission was in
the best interest of the Company or an Affiliate, as the case may be.

<PAGE>

"Change of Control" shall be deemed to have occurred upon, and means:

                  (i)      prior to an IPO, (A) the acquisition by any
individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2)
of the Securities Exchange Act of 1934, as amended (the "1934 Act")) (a
"Person") of beneficial ownership (within the meaning of Rule 13d-3 promulgated
under the 1934 Act) of eighty percent (80%) or more of either (1) the then
outstanding shares of Common Stock of the Company (the "Outstanding Company
Common Stock") or (2) the combined voting power of the then outstanding voting
securities of the Company entitled to vote generally in the election of
directors (the "Outstanding Company Voting Securities"); provided, however, that
the following acquisitions shall not constitute a Change of Control: (I) any
acquisition directly from the Company (excluding an acquisition by virtue of the
exercise of a conversion privilege), (II) any acquisition by the Company, (III)
any acquisition by any employee benefit plan(s) (or related trust(s)) sponsored
or maintained by the Company or any corporation controlled by the Company or
(IV) any acquisition by any corporation pursuant to a reorganization, merger or
consolidation, if, immediately following such reorganization, merger or
consolidation, the conditions described in clause (1), (2) and (3) of clause (B)
of this Paragraph 1.9(b)(i) are satisfied; (B) the approval by the stockholders
of the Company of a reorganization, merger or consolidation, in each case,
unless immediately following such reorganization, merger or consolidation (1)
more than eighty percent (80%) of, respectively, the then outstanding shares of
common stock of the corporation resulting from such reorganization, merger or
consolidation and the combined voting power of the then outstanding voting
securities of such corporation entitled to vote generally in the election of
directors is then beneficially owned, directly or indirectly, by all or
substantially all of the individuals and entities who were the beneficial
owners, respectively, of the Outstanding Company Common Stock and Outstanding
Company Voting Securities immediately prior to such reorganization, merger or
consolidation in substantially the same proportions as their ownership,
immediately prior to such reorganization, merger or consolidation, of the
Outstanding Company Common Stock and Outstanding Company Voting Securities, as
the case may be, (2) no Person (excluding the Company, any employee benefit
plan(s) (or related trust(s)) of the Company and/or its Subsidiaries or such
corporation resulting from such reorganization, merger or consolidation and any
Person beneficially owning, immediately prior to such reorganization, merger or
consolidation, directly or indirectly, eighty percent (80%) or more of the
Outstanding Company Common Stock or Outstanding Company Voting Securities, as
the case may be) beneficially owns, directly or indirectly, eighty percent (80%)
or more of, respectively, the then outstanding shares of common stock of the
corporation resulting from such reorganization, merger or consolidation or the
combined voting power of the then outstanding voting securities of such
corporation entitled to vote generally in the election of directors and (3) at
least a majority of the members of the board of directors of the corporation
resulting from such reorganization, merger or consolidation were members of the
Incumbent Board (as defined below) at the time of the execution of the initial
agreement providing for such reorganization, merger or consolidation, (C) the
sale, lease, transfer, conveyance or other disposition for cash or marketable
securities in one or a series of related transactions, of all or substantially
all of the assets of the Company and its subsidiaries, taken as a whole, or (D)
the adoption of a plan relating to the liquidation or dissolution of the
Company; and

<PAGE>

                  (ii)     after an IPO, (A) the acquisition by any Person of
beneficial ownership (within the meaning of Rule 13d-3 promulgated under the
1934 Act) of twenty-five percent (25%) or more of either (1) the Outstanding
Company Common Stock or (2) the Outstanding Company Voting Securities);
provided, however, that the following acquisitions shall not constitute a Change
of Control: (I) any acquisition directly from the Company (excluding an
acquisition by virtue of the exercise of a conversion privilege), (II) any
acquisition by the Company, (III) any acquisition by any employee benefit
plan(s) (or related trust(s)) sponsored or maintained by the Company or any
corporation controlled by the Company or (IV) any acquisition by any corporation
pursuant to a reorganization, merger or consolidation, if, immediately following
such reorganization, merger or consolidation, the conditions described in clause
(1), (2) and (3) of clause (B) of this Paragraph 1.9(b)(ii) are satisfied; or
(B) the approval by the stockholders of the Company of a reorganization, merger
or consolidation, in each case, unless immediately following such
reorganization, merger or consolidation (1) more than 60% of, respectively, the
then outstanding shares of common stock of the corporation resulting from such
reorganization, merger or consolidation and the combined voting power of the
then outstanding voting securities of such corporation entitled to vote
generally in the election of directors is then beneficially owned, directly or
indirectly, by all or substantially all of the individuals and entities who were
the beneficial owners, respectively, of the Outstanding Company Common Stock and
Outstanding Company Voting Securities immediately prior to such reorganization,
merger or consolidation in substantially the same proportions as their
ownership, immediately prior to such reorganization, merger or consolidation, of
the Outstanding Company Common Stock and Outstanding Company Voting Securities,
as the case may be, (2) no Person (excluding the Company, any employee benefit
plan(s) (or related trust(s)) of the Company and/or its Subsidiaries or such
corporation resulting from such reorganization, merger or consolidation and any
Person beneficially owning, immediately prior to such reorganization, merger or
consolidation, directly or indirectly, twenty-five percent (25%) or more of the
Outstanding Company Common Stock or Outstanding Company Voting Securities, as
the case may be) beneficially owns, directly or indirectly, twenty-five percent
(25%) or more of, respectively, the then outstanding shares of common stock of
the corporation resulting from such reorganization, merger or consolidation or
the combined voting power of the then outstanding voting securities of such
corporation entitled to vote generally in the election of directors and (3) at
least a majority of the members of the board of directors of the corporation
resulting from such reorganization, merger or consolidation were members of the
Incumbent Board at the time of the execution of the initial agreement providing
for such reorganization, merger or consolidation.

         "Code" means the Internal Revenue Code of 1986, as amended from time to
time, and the rules and regulations thereunder.

         "Committee" means the committee appointed by the Board to administer
the Plan or, if none, the Board.

<PAGE>

         "Consultant" means any individual, other than a Director or an
Employee, who renders consulting or advisory services to the Company or an
Affiliate, including, for example, an advisory director.

         "Disability" means a Participant is suffering from a mental or physical
disability, which, in the opinion of the Board, prevents the Participant from
performing his regular duties and is expected to be of long continued duration
or to result in death.

         "Employee" means any employee of the Company or an Affiliate.

         "employment" includes any period in which the Participant is a paid
consultant to the Company or an Affiliate.

         "FMV Per Share" of the Common Stock as of any particular date shall be
determined by any fair and reasonable means determined by the Committee, which
may include, if the Common Stock is listed for trading on a national stock
exchange, the closing sales price quoted on such exchange as published in The
Wall Street Journal (or other reporting service approved by the Committee)
reports for the date of the grant, or if no trade of the Common Stock shall have
been reported for such date, the closing sales price quoted on such exchange
which is published in The Wall Street Journal (or other reporting service
approved by the Committee) reports for the next day prior thereto on which a
trade of the Common Stock was so reported, or if the shares are not so listed or
admitted to trading, the closing sales price as reported by the Nasdaq Stock
Market, or through a similar organization if Nasdaq is no longer reporting such
information, on such grant date. If shares of the Common Stock are not listed or
admitted to trading on any exchange or the Nasdaq Stock Market or any similar
organization, the FMV Per Share shall be determined by the Committee in good
faith using any fair and reasonable means selected in its discretion.

         "Incumbent Board" means the individuals who, as of any date of
determination, constitute the Board; provided, however, that any individual
becoming a director subsequent to such date whose election, or nomination for
election by the Company's stockholders, was approved by a vote of at least a
majority of the directors then comprising the Incumbent Board shall be
considered as though such individual were a member of the Incumbent Board, but
excluding, for this purpose, any such individual whose initial assumption of
office occurs as a result of either (1) an actual or threatened election contest
(as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the
1934 Act), or an actual or threatened solicitation of proxies or consents by or
on behalf of a Person other than the Board or (2) a plan or agreement to replace
a majority of the members of the Board then comprising the Incumbent Board.

<PAGE>

         "IPO" means the first underwritten offering after the date hereof, of
Common Stock which is registered pursuant to an effective registration statement
filed by the Company under the 1933 Act, and sold to an underwriter in a firm
commitment underwriting for reoffering to the public or, if applicable, the
expiration of any underwriter's lock-up agreement entered into with respect to
the IPO (and covering any Common Stock subject to an Award) in which the
aggregate offering price to the public of all such Common Stock is more than
$100 million. Notwithstanding the foregoing, an IPO shall not include (i) a
registration statement filed on Form S-4 (or any successor form), (ii) a
registration statement filed on Form S-8 (or any successor form), or any other
applicable form with respect to the issuance of Common Stock, or securities
convertible into, or exchangeable for, Common Stock or rights to acquire Common
Stock or such securities, issued or to be issued or granted to directors,
officers or employees of the Company, and (iii) any registration statement
relating to an offering of debt securities of the Company convertible or
exchangeable into Common Stock).

         "Non-Employee Director" means persons who are members of the Board but
who are neither employees nor consultants of the Company or any Affiliate.

         "Option" means an option to acquire Common Stock granted pursuant to
the provisions of the Plan.

         "Option Expiration Date" means ten years after the date of grant of an
Option.

         "Other Stock-Based Award" means an award granted pursuant to Article V
of the Plan that is not otherwise specifically provided for, the value of which
is based in whole or in part upon the value of a share of Common Stock.

         "Outstanding Company Common Stock" means, as of any date of
determination, the then outstanding shares of Common Stock of the Company.

         "Outstanding Company Voting Securities" means, as of any date of
determination, the combined voting power of the then outstanding voting
securities of the Company entitled to vote generally in the election of
directors.

         "Participant" means any Non-Employee Director, Employee or Consultant
granted an Award under the Plan.

         "Performance Unit" means an Award of a unit granted pursuant to Article
V of the Plan with a value of $100, which, if earned, shall be payable in shares
of Common Stock, cash or any combination thereof as determined by the Committee.

         "Purchased Stock" means an Award of Common Stock granted pursuant to
Article III of the Plan.

<PAGE>

         "Phantom Shares" means an Award of the right to receive Shares issued
at the end of a Restricted Period which is granted pursuant to Article V of the
Plan.

         "Restricted Period" shall mean the period established by the Committee
with respect to an Award during which the Award either remains subject to
forfeiture or is not exercisable by the Participant.

         "Restricted Stock" shall mean any share of Common Stock, prior to the
lapse of restrictions thereon, granted under Article V of the Plan.

         "Retirement" means the termination of a Participant's employment with
the Company or an Affiliate (i) on or after reaching age 65 or (ii) on or after
reaching age 55 and prior to age 65 for reasons other than death, Disability or
for Cause and with the consent of the Board.

                                   ARTICLE II
                           NONQUALIFIED STOCK OPTIONS

                  2.1      ELIGIBLE EMPLOYEES/CONSULTANTS. All employees,
including officers (whether or not they are directors), and consultants of the
Company or its Affiliates shall be eligible to receive Options under this
Article II.

                  2.2      CALCULATION OF EXERCISE PRICE. The exercise price to
be paid for each share of Common Stock deliverable upon exercise of each Option
granted under this Article II shall not be less than the FMV Per Share on the
date of grant of such Option. The exercise price for each Option granted under
Article II shall be subject to adjustment as provided in Section 2.3(e).

                  2.3      TERMS AND CONDITIONS OF OPTIONS. Options shall be in
such form as the Committee may from time to time approve, shall be subject to
the following terms and conditions and may contain such additional terms and
conditions, not inconsistent with this Article II, as the Committee shall deem
desirable:

                           (a)      Option Period and Conditions and Limitations
         on Exercise. No Option shall be exercisable later than the Option
         Expiration Date. To the extent not prohibited by other provisions of
         the Plan, each Option shall be exercisable at such time or times as the
         Committee in its discretion may determine at the time such Option is
         granted.

                           (b)      Termination of Employment and Death. For
         purposes of this Article II, a Participant's employment shall be deemed
         to have terminated at the close of business on the day on which he is
         no longer for any reason whatsoever (including his death) employed by
         the Company or an Affiliate. Unless the Option agreement specifically
         provides otherwise, if a Participant's employment is terminated for any
         reason whatsoever (including his death), (1) each vested Option granted
         to him

<PAGE>

         (determined as of his termination of employment date) shall wholly and
         completely terminate as follows:

                                    (i)      At the time the Participant's
                  employment is terminated, if termination occurs within the
                  six-month period following the date of grant; or

                                    (ii)     At the time the Participant's
                  employment is terminated, if his employment is terminated
                  because he is discharged for Cause (as defined below); or

                                    (iii)    At the expiration of a period of
                  one year after the Participant's death (but in no event later
                  than the Option Expiration Date), if the Participant's
                  employment is terminated after the six-month period following
                  the date of grant by reason of his death. To the extent
                  exercisable at death, an Option may be exercised by the
                  Participant's estate or by the person or persons who acquire
                  the right to exercise his Option by bequest or inheritance
                  with respect to any or all of the shares remaining subject to
                  his Option at the time of his death; or

                                    (iv)     At the expiration of a period of
                  three years after the Participant's employment is terminated,
                  if the Participant's employment is terminated after the
                  six-month period following the date of grant because of
                  Retirement or Disability (as such terms are defined below)
                  (but in no event later than the Option Expiration Date); or

                                    (v)      At the expiration of a period of
                  three months after the Participant's employment is terminated
                  (but in no event later than the Option Expiration Date), if
                  the Participant's employment is terminated after the six-month
                  period following the date of grant for any reason other than
                  his death, Retirement, Disability or for Cause; or

                                    (vi)     Notwithstanding the above, with
                   respect to all Options outstanding at the date of a Change of
                  Control, if the Participant's employment is terminated on or
                  within the one-year period following such Change of Control
                  other than for Cause, at the expiration of the first
                  anniversary of the Participant's date of termination, unless
                  subparagraph (iii), (iv) or (v) provides a longer period for
                  the exercise of such Options (but in no event later than the
                  Option Expiration Date); and

         (2)      all nonvested Options granted to him (determined as of his
         termination of employment date) shall immediately terminate on such
         date of termination of employment.

                           (c) Manner of Exercise. In order to exercise an
         Option, the person or persons entitled to exercise it shall deliver to
         the Company payment in full for the shares

<PAGE>

         being purchased, together with any required withholding taxes. The
         payment of the exercise price for each Option shall either be (i) in
         cash or by check payable and acceptable to the Company, (ii) with the
         consent of the Committee, by tendering to the Company shares of Common
         Stock owned by the person for more than six months having an aggregate
         FMV Per Share as of the date of exercise and tender that is not greater
         than the full exercise price for the shares with respect to which the
         Option is being exercised and by paying any remaining amount of the
         exercise price as provided in (i) above, or (iii) following an IPO and
         subject to such instructions as the Committee may specify, at the
         person's written request the Company may deliver certificates for the
         shares of Common Stock for which the Option is being exercised to a
         broker for sale on behalf of the person, provided that the person has
         irrevocably instructed such broker to remit directly to the Company on
         the person's behalf the full amount of the exercise price from the
         proceeds of such sale. In the event that the person elects to make
         payment as allowed under clause (ii) above, the Committee may, upon
         confirming that the optionee owns the number of additional shares being
         tendered, authorize the issuance of a new certificate for the number of
         shares being acquired pursuant to the exercise of the Option less the
         number of shares being tendered upon the exercise and return to the
         person (or not require surrender of) the certificate for the shares
         being tendered upon the exercise. If the Committee so requires, such
         person or persons shall also deliver a written representation that all
         shares being purchased are being acquired for investment and not with a
         view to, or for resale in connection with, any distribution of such
         shares.

                  (d)      Options not Transferable. Except as provided below,
         no Option granted hereunder shall be transferable other than by (i)
         will or by the laws of descent and distribution or (ii) pursuant to a
         qualified domestic relations order and, during the lifetime of the
         Participant to whom any such Option is granted, it shall be exercisable
         only by the Participant. Any attempt to transfer, assign, pledge,
         hypothecate or otherwise dispose of, or to subject to execution,
         attachment or similar process, any Option granted hereunder, or any
         right thereunder, contrary to the provisions hereof, shall be void and
         ineffective, shall give no right to the purported transferee, and
         shall, at the sole discretion of the Committee, result in forfeiture of
         the Option with respect to the shares involved in such attempt. To the
         extent provided by the Committee with respect to a specific Option, the
         Participant may transfer, for estate planning purposes, all or part of
         such Option to one or more immediate family members or related family
         trusts or partnerships or similar entities, on such terms and
         conditions as the Committee may impose.

                  (e)      Adjustment of Options. In the event that at any time
         after the effective date of the Plan the outstanding shares of Common
         Stock are changed into or exchanged for a different number or kind of
         shares or other securities of the Company by reason of merger,
         consolidation, recapitalization, reclassification, stock split, stock
         dividend, combination of shares or the like, the Committee shall make
         an appropriate and equitable adjustment in the number and kind of
         shares as to which all outstanding Options granted, or portions thereof
         then unexercised, shall be exercisable, to the end that after such
         event the shares subject to the Plan and each Participant's
         proportionate

<PAGE>

         interest shall be maintained as before the occurrence of such event.
         Such adjustment in an outstanding Option shall be made without change
         in the total price applicable to the Option or the unexercised portion
         of the Option (except for any change in the aggregate price resulting
         from rounding-off of share quantities or prices) and with any necessary
         corresponding adjustment in exercise price per share. Any such
         adjustment made by the Committee shall be final and binding upon all
         Participants, the Company, and all other interested persons.

                  (f)      Listing and Registration of Shares. Each Option shall
         be subject to the requirement that if at any time the Committee
         determines, in its discretion, that the listing, registration, or
         qualification of the shares subject to such Option under any securities
         exchange or under any state or federal law, or the consent or approval
         of any governmental regulatory body, is necessary or desirable as a
         condition of, or in connection with, the issue or purchase of shares
         thereunder, such Option may not be exercised in whole or in part unless
         such listing, registration, qualification, consent or approval shall
         have been effected or obtained and the same shall have been free of any
         conditions not acceptable to the Committee.

                  (g)      Reload Options. An Option may, in the discretion of
         the Committee, include a reload stock Option right which shall entitle
         the Participant, upon (i) the exercise of such original Option prior to
         the Participant's termination of employment and (ii) payment of the
         appropriate exercise price in shares of Common Stock that have been
         owned by such Participant for at least six months prior to the date of
         exercise, to receive a new Option (the "Reload Option") to purchase, at
         the FMV Per Share on the date of the exercise of the original Option,
         the number of shares of Common Stock equal to the number of whole
         shares delivered by the Participant in payment of the exercise price of
         the original Option. Such Reload Option shall be subject to the same
         terms and conditions, including expiration date, and shall be
         exercisable at the same time or times as the original Option with
         respect to which it is granted.

         2.4      AMENDMENT. The Committee may, with the consent of the person
or persons entitled to exercise any outstanding Option, amend such Option. The
Committee may at any time or from time to time, in its discretion, in the case
of any Option which is not then immediately exercisable in full, accelerate the
time or times at which such Option may be exercised to any earlier time or
times. The Committee, in its absolute discretion, may grant to holders of
outstanding Options, in exchange for the surrender and cancellation of such
Options, new Options having exercise prices lower (or higher) than the exercise
price provided in the Options so surrendered and canceled and containing such
other terms and conditions as the Committee may deem appropriate.

         2.5      NO ACCELERATION OF VESTING. No Option granted hereunder shall
vest upon a Change of Control, an IPO or any other event unless specifically
provided for to the contrary in the document or instrument evidencing an Option
granted hereunder.

<PAGE>

         2.6      OTHER PROVISIONS.

                  (a)      The person or persons entitled to exercise, or who
         have exercised, an Option shall not be entitled to any rights as a
         stockholder of the Company with respect to any shares subject to such
         Option until he shall have become the holder of record of such shares.

                  (b)      No Option granted hereunder shall be construed as
         limiting any right which the Company or any Affiliate may have to
         terminate at any time, with or without cause, the employment of any
         person to whom such Option has been granted.

                  (c)      Notwithstanding any provision of the Plan or the
         terms of any Option, the Company shall not be required to issue any
         shares hereunder if such issuance would, in the judgment of the
         Committee, constitute a violation of any state or federal law or of the
         rules or regulations of any governmental regulatory body.

                  (d)      Notwithstanding any other provision of this Plan or
         any Award Agreement to the contrary, by exercising an Option the holder
         agrees that the Company (or a representative of the underwriters) may,
         in connection with the first underwritten registration of the offering
         of any securities of the Company under the 1933 Act, require that the
         holder not sell or otherwise transfer or dispose of any shares of
         Common Stock or other securities of the Company during such period (not
         to exceed 180 days) following the effective date of the registration
         statement of the Company filed under the 1933 Act as may be requested
         by the Company or the representative of the underwriters. The Company
         may impose stop-transfer instructions with respect to securities
         subject to the foregoing restriction until the end of such period.

                                   ARTICLE III
                                 PURCHASED STOCK

         3.1      PARTICIPANTS. The Committee shall have the authority to sell
shares of Common Stock to such key employees of the Company and its Subsidiaries
as may be selected by it, on such terms and conditions as it may establish,
subject to the further provisions of this Article III. Each sale of Common Stock
under this Plan shall be evidenced by an agreement which shall be subject to
applicable provisions of this Plan and to such other provisions not inconsistent
with this Plan as the Committee may approve for the particular sale transaction.

         3.2      PURCHASE PRICE. The price per share for Common Stock purchased
by a Participant under this Plan shall be not less than the FMV per share on the
date the Participant executes and delivers a purchase agreement.

         3.3      PAYMENT OF PURCHASE PRICE. At the option of the Participant,
payment of the purchase price of Purchased Stock under this Plan shall be made
in full in cash or by delivery to the Company of a promissory note ("Note") in
principal amount equal to the purchase price of

<PAGE>

the shares covered by the agreement, less any partial cash payment made at the
time of execution and delivery, or for the full purchase price if no such
partial cash payment is made.

         3.4      TERMS OF NOTE. Each Note shall be executed and delivered by
the Participant and the Participant's spouse, if any; shall be due and payable
not later than 10 years after the date of purchase; shall bear interest at the
applicable Federal rate payable; shall be a full recourse obligation unless the
Committee permits otherwise; shall be secured by a pledge of all shares of
Purchased Stock purchased by the Participant with the Note; and shall have such
other terms as the Committee may determine. In the discretion of the Committee
pledged shares of Purchased Stock may be released from such pledge on such terms
and conditions as it may specify.

         3.5      DISTRIBUTIONS ON PLEDGED SHARES. The Participant shall agree
to remit to the Company all distributions made on the pledged shares, to be
applied first towards payment of interest on the Note accrued to the
distribution date, and then towards reduction of principal of the Note. Any
balance of any applied distribution remaining after prepayment of the Note in
full shall be delivered to the Participant.

                                   ARTICLE IV
                       NON-EMPLOYEE DIRECTOR STOCK OPTIONS

         4.1      ELIGIBLE DIRECTORS. Non-Employee Directors shall be eligible
to receive Options solely under this Article IV.

         4.2      GRANT OF OPTIONS TO NON-EMPLOYEE DIRECTORS. The Committee
shall have the authority to grant, prior to the expiration of the Plan, to those
Non-Employee Directors as may be selected by it Options to purchase shares of
Common Stock on the terms and conditions hereinafter set forth in this Article
IV. In determining the number of shares to be subject to any such Option, the
Committee may consider such facts as it may consider relevant.

         4.3      CALCULATION OF EXERCISE PRICE. The exercise price to be paid
for each share of Common Stock deliverable upon exercise of each Option granted
under this Article IV shall be equal to the FMV Per Share price on the date of
the grant of such Option. The exercise price for each Option granted under
Article IV shall be subject to adjustment as provided in Section 4.4(e).

         4.4      TERMS AND CONDITIONS OF OPTIONS. Options granted under this
Article IV shall be subject to the following terms and conditions:

                  (a)      Option Period and Conditions and Limitations on
         Exercise. Each Option granted under this Article IV shall be
         exercisable at such time or times as the Committee in its discretion
         may determine at the time such Option is granted.

<PAGE>

                  (b)      Termination of Directorship and Death. For purposes
         of Article IV, a Non-Employee Director's directorship shall be deemed
         to have terminated at the close of business on the day on which he
         ceases to be a member of the Board for any reason whatsoever (including
         his death). If a Non-Employee Director's directorship is terminated for
         any reason whatsoever (including his death), each Option granted to him
         under Article IV and all of his rights thereunder shall wholly and
         completely terminate:

                           (i)      At the time the Non-Employee Director's
                  directorship is terminated if termination occurs within the
                  six-month period following the date of grant; or

                           (ii)     At the time the Non-Employee Director's
                  directorship is terminated if his directorship is terminated
                  as a result of his removal from the Board for Cause (other
                  than Disability or in accordance with the provisions of the
                  Company's Bylaws regarding automatic termination of directors'
                  terms of office); or

                           (iii)    At the expiration of a period of one year
                  after the Non-Employee Director's death (but in no event later
                  than the Option Expiration Date) if the Non-Employee
                  Director's directorship is terminated after the six-month
                  period following the date of grant by reason of his death. To
                  the extent exercisable at death, an Option granted under
                  Article IV may be exercised by the Non-Employee Director's
                  estate or by the person or persons who acquire the right to
                  exercise his Option by bequest or inheritance with respect to
                  any or all of the shares remaining subject to his Option at
                  the time of his death; or

                           (iv)     At the expiration of a period of three years
                  after the Non-Employee Director's directorship is terminated
                  if such person's directorship is terminated after the
                  six-month period following the date of grant as a result of
                  such person's resignation or removal from the Board because of
                  Disability or in accordance with the provisions of the
                  Company's Bylaws regarding automatic termination of directors'
                  terms of office (but in no event later than the Option
                  Expiration Date); or

                           (v)      At the expiration of a period of three
                  months after the Non-Employee Director's directorship is
                  terminated (but in no event later than the Option Expiration
                  Date) if the Non-Employee Director's directorship is
                  terminated after the six-month period following the date of
                  grant for any reason other than the reasons specified in
                  Article IV, Paragraphs 4(b)(ii) through 4(b)(iv).

                           (c)      Manner of Exercise. In order to exercise an
         Option granted under Article IV, the person or persons entitled to
         exercise it shall deliver to the Company payment in full for the shares
         being purchased. The payment of the exercise price for

<PAGE>

         each Option granted under Article IV shall either be in (i) in cash or
         by check payable and acceptable to the Company, or (ii) with the
         consent of the Committee, by tendering to the Company shares of Common
         Stock owned by the person for more than six months having an aggregate
         FMV Per Share as of the date of exercise and tender that is not greater
         than the full exercise price for the shares with respect to which the
         Option is being exercised and by paying any remaining amount of the
         exercise price as provided in (i) above. In the event that the person
         elects to make payment as allowed under clause (ii) above, the Company
         may, upon confirming that the person owns the number of additional
         shares being tendered, authorize the issuance of a new certificate for
         the number of shares being acquired pursuant to the exercise of the
         Option less the number of shares being tendered upon the exercise and
         return to the person (or not require surrender of) the certificate for
         the shares being tendered upon the exercise. If the Company so
         requires, such person or persons shall also deliver a written
         representation that all shares being purchased are being acquired for
         investment and not with a view to, or for resale in connection with,
         any distribution of such shares.

                           (d)      Options Not Transferable. Except as provided
         below, no Option granted under Article IV shall be transferable
         otherwise than by will or by the laws of descent and distribution and,
         during the lifetime of the Non-Employee Director to whom any such
         Option is granted, it shall be exercisable only by such Non-Employee
         Director. Any attempt to transfer, assign, pledge, hypothecate or
         otherwise dispose of, or to subject to execution, attachment or similar
         process, any Option granted under Article IV, or any right thereunder,
         contrary to the provisions hereof, shall be void and ineffective and
         shall give no right to the purported transferee. To the extent provided
         by the Committee with respect to a specific Option, the Non-Employee
         Director may transfer, for estate planning purposes, all or part of
         such Option to immediate family members or related family trusts or
         partnerships or similar entities, on such terms and conditions as the
         Committee may impose.

                           (e)      Adjustment of Shares. The shares with
         respect to which Options may be granted pursuant to Article IV are
         shares of Common Stock as presently constituted, but if, and whenever,
         prior to the expiration of an Option theretofore granted, the Company
         shall effect a subdivision or consolidation of shares of Common Stock
         or the payment of a stock dividend on Common Stock without receipt of
         consideration by the Company, the number of shares of Common Stock with
         respect to which such Option may thereafter be exercised (i) in the
         event of an increase in the number of outstanding shares be
         proportionately increased, and the purchase price per share shall be
         proportionately reduced, and (ii) in the event of a reduction in the
         number of outstanding shares shall be proportionately reduced, and the
         purchase price per share shall be proportionately increased. If the
         Company recapitalizes or otherwise changes its capital structure,
         thereafter upon any exercise of an Option theretofore granted the
         optionee shall be entitled to purchase under such Option, in lieu of
         the number of class of shares of Common Stock as to which such Option
         shall then be exercisable, the number and class of shares of stock and
         securities to which the optionee would have been entitled pursuant

<PAGE>

                  to the terms of the recapitalization if, immediately prior to
                  such recapitalization, the optionee had been the holder of
                  record of the number of shares of Common Stock as to which
                  such Option is then exercisable. Any adjustment provided for
                  in the preceding provisions of this Paragraph 4(e) shall be
                  subject to any required stockholder action.

                           (f)      Listing and Registration of Shares. Each
         Option granted under Article IV shall be subject to the requirement
         that if at any time the Company determines, in its discretion, that the
         listing, registration, or qualification of the shares subject to such
         Option under any securities exchange or under any state or federal law,
         or the consent or approval of any governmental regulatory body, is
         necessary or desirable as a condition of, or in connection with, the
         issue or purchase of shares thereunder, such Option may not be
         exercised in whole or in part unless such listing, registration,
         qualification, consent or approval shall have been effected or obtained
         and the same shall have been free of any conditions not acceptable to
         the Company.

                  4.5      NO ACCELERATION OF VESTING. No Option granted
hereunder shall vest upon a Change of Control, an IPO or any other event unless
specifically provided for to the contrary in the document or instrument
evidencing an Option granted hereunder.

                  4.6      OTHER PROVISIONS.

                           (a)      The person or persons entitled to exercise,
         or who have exercised , an Option granted under Article IV shall not be
         entitled to any rights as a stockholder of the Company with respect to
         any shares subject to such Option until he shall have become the holder
         of record of such shares.

                           (b)      No Option granted under Article IV shall be
         construed as limiting any right which either the stockholders of the
         Company or the Board may have to remove at any time, with or without
         cause, any person to whom such Option has been granted from the Board.

                           (c)      Notwithstanding any provision of the Plan or
         the terms of any Option granted under Article IV, the Company shall not
         be required to issue any shares hereunder if such issuance would, in
         the judgment of the Committee, constitute a violation of any state or
         federal law or of the rule or regulations of any governmental
         regulatory body.

                           (d)      Notwithstanding any other provision of this
         Plan or any Award Agreement to the contrary, by exercising an Option
         the holder agrees that the Company (or a representative of the
         underwriters) may, in connection with the first underwritten
         registration of the offering of any securities of the Company under the
         1933 Act, require that the holder not sell or otherwise transfer or
         dispose of any shares of Common Stock or other securities of the
         Company during such period (not to exceed 180 days) following the
         effective date of the registration statement of the Company filed under
         the 1933 Act

<PAGE>

         as may be requested by the Company or the representative of the
         underwriters. The Company may impose stop-transfer instructions with
         respect to securities subject to the foregoing restriction until the
         end of such period.

                                    ARTICLE V
              RESTRICTED STOCK, PHANTOM STOCK AND PERFORMANCE UNITS

         5.1      ELIGIBLE PERSONS. All employees, including officers (whether
or not they are directors), and consultants of the Company, its Subsidiaries and
affiliated entities shall be eligible to receive awards of Restricted Stock,
Phantom Stock and/or Performance Units (as hereinafter defined) under this
Article V.

         5.2      TERMS AND CONDITIONS OF AWARDS. Awards granted under this
Article to a Participant shall be (i) with respect to Restricted Stock, shares
of Common Stock, (ii) with respect to Phantom Stock, a phantom share of Common
Stock, and (iii) with respect to a Performance Unit, a unit with a value of
$100, which, if earned, shall be payable in shares of Common Stock, cash or any
combination thereof as determined by the Committee. These Awards shall be
subject to the following terms and conditions and may contain such additional
terms and conditions, not inconsistent with Article V, as the Committee shall
deem desirable:

                  (a)      Restricted Period and Vesting. Subject to Article V,
         Paragraphs 3 and 4, unless an Award Agreement specifically provides
         otherwise, no shares of Restricted Stock, Phantom Stock or Performance
         Units shall be subject to becoming vested; i.e., earned and
         nonforfeitable, earlier than the date which is six months from the date
         of grant nor later than the date which is ten years after the date of
         grant (the "Restricted Period"). To the extent not prohibited by other
         provisions of the Plan, each share of Restricted Stock and Phantom
         Stock and each Performance Unit shall become vested upon (i) the
         achievement of such performance goals (Company, Subsidiary and/or
         individual) over such Restricted Period, or (ii) at the end of the
         Restricted Period without regard to the achievement of any performance
         goals, as the Committee, in its discretion, may determine on the grant
         of such Award.

                  (b)      Termination of Employment and Death. For purposes of
         this Article V, a Participant's employment shall be deemed to have
         terminated at the close of business on the day on which he is no longer
         for any reason whatsoever (including his death) employed by the Company
         or an Affiliate. Unless the Award Agreement specifically provides
         otherwise, if an employment is terminated for any reason whatsoever
         (including his death), all of his rights with respect to each share of
         Restricted Stock, Phantom Stock and each Performance Unit granted to
         him shall wholly and completely terminate:

                           (i)      At the time the Participant's employment is
                  terminated if termination is for any reason other than
                  Retirement, Disability or death; or

<PAGE>

                           (ii)     If the Participant's employment is
                  terminated due to Retirement, Disability or death, at the time
                  of such termination but only with respect to that portion of
                  the Award which is equal to the fraction, the numerator of
                  which is the number of full calendar months remaining in the
                  Restricted Period and the denominator of which is the total
                  number of calendar months in the Restricted Period; provided,
                  however, the remaining, nonforfeited portion of the Award
                  shall continue to be subject to the terms and conditions of
                  the Restricted Period and at the end of such Restricted Period
                  shall be forfeited and/or paid as unrestricted stock and/or
                  cash, as the case may be, to the Participant depending on the
                  achievement of the goals for such Restricted Period; provided,
                  further however, the Committee may, in its sole discretion,
                  deem the terms and conditions have been met at the date of
                  such termination for all or part of such remaining,
                  nonforfeited portion of the Award.

                  (c)      Performance Awards not Transferable. Except as
         provided below, no shares of Restricted Stock, Phantom Stock or
         Performance Units shall be transferable during a Restricted Period
         otherwise than by will or by the laws of descent and distribution. Any
         attempt to transfer, assign, pledge, hypothecate or otherwise dispose
         of, or to subject to execution, attachment or similar process, any
         shares of Restricted Stock, Phantom Stock or Performance Units, or any
         right thereunder, contrary to the provisions hereof, shall be void and
         ineffective, shall give no right to the purported transferee, and
         shall, at the sole discretion of the Committee, result in forfeiture of
         the shares of the Restricted Stock, Phantom Stock or Performance Units
         involved in such attempt. To the extent provided by the Committee with
         respect to a specific Award of Restricted Stock, Phantom Stock or
         Performance Units, the Participant may transfer, for estate planning
         purposes, all or part of such Award to one or more immediate family
         members or related family trusts or partnerships or similar entities,
         on such terms and conditions as the Committee may impose.

         5.3      AMENDMENT. The Committee may, with the consent of the
Participant awarded any outstanding Restricted Stock, Phantom Stock or
Performance Units, amend the performance objectives and/or the Restricted Period
for earning such Award.

         5.4      NO ACCELERATION OF VESTING. No Restricted Stock, Phantom Stock
or Performance Units granted hereunder shall vest upon a Change of Control, an
IPO or any other event unless specifically provided for to the contrary in the
document or instrument evidencing an Award granted hereunder.

         5.5      OTHER PROVISIONS.

                  (a)      No grant of Restricted Stock, Phantom Stock or
         Performance Units shall be construed as limiting any right which the
         Company or any Affiliate may have to terminate at any time, with or
         without cause, the employment of any person to whom such Award has been
         granted.

<PAGE>

                  (b)      Each certificate representing Restricted Stock
         awarded under the Plan shall be registered in the name of the
         Participant and, during the Restricted Period, shall be left in deposit
         with the Company and a stock power endorsed in blank. The grantee of
         Restricted Stock shall have all the rights of a stockholder with
         respect to such shares including the right to vote and the right to
         receive dividends or other distributions paid or made with respect to
         such shares. Any certificate or certificates representing shares of
         Restricted Stock shall bear a legend similar to the following:

                  The shares represented by this certificate have been issued
         pursuant to the terms of the Veridian Corporation 2000 Stock Incentive
         Plan (as amended and restated) and may not be sold, pledged,
         transferred, assigned or otherwise encumbered in any manner except as
         is set forth in the terms of such award dated __________, 200___.

                  After the satisfaction of all of the terms and conditions set
         by the Committee with respect to an Award of (i) Restricted Stock, a
         certificate, without the legend set forth above, for the number of
         shares of Common Stock that are no longer subject to such restrictions,
         terms and conditions shall be delivered to the employee, (ii) Phantom
         Stock, to the extent not paid in cash, a certificate for the number of
         shares of Common Stock equal to the number of Shares of Phantom Stock
         earned, and (iii) Performance Units, cash and/or a certificate for the
         number of shares of Common Stock equal in value to the number of
         Performance Units vested shall be delivered to the person. The
         remaining unearned shares of Restricted Stock issued with respect to
         such Award, if any, or unearned Phantom Stock or Performance Units, as
         the case may be, shall either be forfeited back to the Company or, if
         appropriate under the terms of the Award, shall continue to be subject
         to the restrictions, terms and conditions set by the Committee with
         respect to such Award.

                                   ARTICLE VI
                                  BONUS STOCK

                  The Committee may, from time to time and subject to the
provisions of the Plan, grant shares of Bonus Stock to employees, including
officers (whether or not they are directors), and consultants of the Company,
its Subsidiaries and affiliated entities. Bonus Stock shall be shares of Common
Stock that are not subject to a Restricted Period under Article V.

                                   ARTICLE VII
                            OTHER STOCK-BASED AWARDS

                  The Committee is hereby authorized to grant to employees,
including officers (whether or not they are directors), and consultants of the
Company, its Subsidiaries and affiliated entities an "Other Stock-Based Award,"
which shall consist of a right which (i) is not an Award described in any other
Article and (ii) is denominated or payable in, valued in whole or

<PAGE>

in part by reference to, or otherwise based on or related to, shares of Common
Stock (including, without limitation, securities convertible into shares of
Common Stock) as are deemed by the Committee to be consistent with the purposes
of the Plan. Subject to the terms of the Plan, the Committee shall determine the
terms and conditions of any such Other Stock-Based Award.

                                  ARTICLE VIII
                              WITHHOLDING FOR TAXES

         Any issuance of Common Stock pursuant to the exercise of an Option or
payment of any other Award under the Plan shall not be made until appropriate
arrangements satisfactory to the Company have been made for the payment of any
tax amounts (federal, state, local or other) that may be required to be withheld
or paid by the Company with respect thereto. Such arrangements may, at the
discretion of the Committee, include allowing the person to tender to the
Company shares of Common Stock owned by the person, or to request the Company to
withhold shares of Common Stock being acquired pursuant to the Award, whether
through the exercise of an Option or as a distribution pursuant to the Award,
which have an aggregate FMV Per Share as of the date of such withholding that is
not greater than the sum of all tax amounts to be withheld with respect thereto,
together with payment of any remaining portion of such tax amounts in cash or by
check payable and acceptable to the Company.

         Notwithstanding the foregoing, if on the date of an event giving rise
to a tax withholding obligation on the part of the Company the person is an
officer or individual subject to Rule 16b-3, such person may direct that such
tax withholding be effectuated by the Company withholding the necessary number
of shares of Common Stock (at the tax rate required by the Code) from such Award
payment or exercise.

                                   ARTICLE IX
                                  MISCELLANEOUS

         9.1      NO RIGHTS TO AWARDS. No Participant or other Person shall have
any claim to be granted any Award, there is no obligation for uniformity of
treatment of Participants, or holders or beneficiaries of Awards and the terms
and conditions of Awards need not be the same with respect to each recipient.

         9.2      NO RIGHT TO EMPLOYMENT. The grant of an Award shall not be
construed as giving a Participant the right to be retained in the employ of the
Company or any Affiliate. Further, the Company or any Affiliate may at any time
dismiss a Participant from employment, free from any liability or any claim
under the Plan, unless otherwise expressly provided in the Plan or in any Award
Agreement.

         9.3      GOVERNING LAW. The validity, construction, and effect of the
Plan and any rules and regulations relating to the Plan shall be determined in
accordance with applicable federal law and the laws of the State of Delaware,
without regard to any principles of conflicts of law.

<PAGE>

         9.4      SEVERABILITY. If any provision of the Plan or any Award is or
becomes or is deemed to be invalid, illegal, or unenforceable in any
jurisdiction or as to any Person or Award, or would disqualify the Plan or any
Award under any law deemed applicable by the Committee, such provision shall be
construed or deemed amended to conform to the applicable laws, or if it cannot
be construed or deemed amended without, in the determination of the Committee,
materially altering the intent of the Plan or the Award, such provision shall be
stricken as to such jurisdiction, Person or Award and the remainder of the Plan
and any such Award shall remain in full force and effect.

         9.5      OTHER LAWS. The Committee may refuse to issue or transfer any
shares or other consideration under an Award if, acting in its sole discretion,
it determines that the issuance of transfer or such shares or such other
consideration might violate any applicable law.

         9.6      OUTSTANDING AWARDS. All previously granted Awards under the
Plan and the Veda Plan that are outstanding immediately prior to the effective
date of the Plan, which includes the merger of the Veda Plan into the Plan,
shall thereafter be subject to the terms of the Plan as hereby amended and
restated, except to the extent the terms hereof would (i) cause any such
outstanding incentive stock Option to cease to qualify as such or (ii)
materially adversely affect the Participant's rights under such Award.

         9.7      SUBSTITUTE AWARDS. Awards may be granted from time to time in
substitution for similar awards held by employees of other corporations who
become employees of the Company or a Subsidiary as the result of a merger or
consolidation of such employee's employing corporation with the Company or any
Subsidiary, or the acquisition by the Company or any Subsidiary of the assets of
such employee's employing corporation, or the acquisition by the Company or any
Subsidiary of the stock of such employee's employing corporation. The terms and
conditions of substitute Awards granted may vary from the terms and conditions
set forth in the Plan to the extent the Committee deems it appropriate.

         9.8      SHAREHOLDER AGREEMENTS. The Committee may condition the grant,
exercise or payment of any Award upon such person entering into a stockholders'
agreement in such form as approved from time to time by the Board.

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