Document:

<PAGE>

                                                                    EXHIBIT 10.1

                        AMENDMENT NO. 4 TO SECOND AMENDED
                          AND RESTATED CREDIT AGREEMENT

     AMENDMENT  NO. 4,  dated as of August 9, 2000  (this  "Amendment"),  to the
Existing Credit  Agreement (as defined below),  among EVERCOM,  INC., a Delaware
corporation  (the  "Borrower"),   each  of  the  Borrower's   Subsidiaries  (the
"Consenting  Obligors"),  Canadian Imperial Bank of Commerce,  as Administrative
Agent  for  the  Lenders  and the  Lenders  (such  capitalized  term  and  other
capitalized  terms  used in this  preamble  and the  recitals  below to have the
meanings set forth in, or as defined by reference in, Article I).

                              W I T N E S S E T H:

     WHEREAS,  the Borrower,  the Lenders,  the  Administrative  Agent and First
Source Financial LLP, as Co-Agent are parties to the Second Amended and Restated
Credit  Agreement,  dated as of December 19, 1997 (as heretofore  modified,  the
"Existing Credit Agreement", and as modified by with this Amendment, the "Credit
Agreement");

     WHEREAS, the Borrower desires to amend the Existing Credit Agreement as set
forth herein; and

     WHEREAS,  the  Required  Lenders  have  agreed,  subject  to the  terms and
conditions  hereinafter  set forth,  to amend the Existing  Credit  Agreement in
certain respects as provided below;

     NOW,  THEREFORE,  in consideration of the agreements herein contained,  the
parties hereto hereby agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

     SECTION I.1.  Certain  Definitions.  The  following  terms  (whether or not
underscored) when used in this Amendment shall have the following meanings (such
meanings to be equally applicable to the singular and plural form thereof):

         "Amendment" is defined in the preamble.

         "Borrower" is defined in the preamble.

         "Consenting Obligors" is defined in the preamble.

                                       1
<PAGE>

         "Credit Agreement" is defined in the first recital.

         "Existing Credit Agreement" is defined in the first recital.

         "Fourth Amendment Effective Date" is defined in Section 3.1.

     SECTION I.2.  Other  Definitions.  Terms for which meanings are provided in
the Existing  Credit  Agreement  are,  unless  otherwise  defined  herein or the
context otherwise requires, used in this Amendment with such meanings.

                                   ARTICLE II
                         AMENDMENTS TO CREDIT AGREEMENT

     Effective  on (and  subject  to the  occurrence  of) the  Fourth  Amendment
Effective  Date, the Existing  Credit  Agreement is hereby amended in accordance
with this Article II; except as so amended,  the Existing Credit Agreement shall
continue in full force and effect.

     SECTION II.1.  Amendments  to Recitals.  Clause (a) of the fifth recital of
the Existing Credit  Agreement is hereby amended and restated in its entirety to
read as follows:

                  "(a) (i) a Term Loan Commitment  pursuant to which  Borrowings
         of  Term  Loans  were  made,  in  the  aggregate  principal  amount  of
         $55,000,000,  to the Borrower in multiple  Borrowings  occurring on and
         subsequent  to the Closing  Date but prior to the Term Loan  Commitment
         Termination Date (collectively, the "Existing Term Loans");

                  (ii) an  Additional  Term Loan  Commitment  pursuant  to which
         Borrowings  of  Additional  Term  Loans  were  made,  in the  aggregate
         principal  amount of $5,500,000,  to the Borrower in a single Borrowing
         occurring on the Second Amendment Effective Date; and

                  (iii) a Second  Additional  Term Loan  Commitment  pursuant to
         which  Borrowings  of Second  Additional  Term Loans will be made, in a
         maximum  aggregate  principal amount not to exceed  $7,500,000,  to the
         Borrower in multiple  Borrowings  occurring  on any  Business Day on or
         subsequent  to the  Fourth  Amendment  Effective  Date but prior to the
         Second  Additional Term Loan Commitment  Termination Date (and the full
         drawing of which are subject to the Borrower meeting certain  financial
         conditions described herein); and"

     SECTION  II.2.  Amendments  to Article I. Article I of the Existing  Credit
Agreement is hereby amended as follows:

                                       2
<PAGE>

     SECTION  II.2.1.  Section 1.1 of the  Existing  Credit  Agreement is hereby
amended  by  inserting  the  following   definitions  in  such  Section  in  the
appropriate alphabetical sequence:

          "Amendment  No. 4" means  Amendment No. 4, dated as of August 9, 2000,
     to the Second Amended and Restated  Credit  Agreement,  among the Borrower,
     the Administrative  Agent and the Lenders parties thereto, and consented to
     by the Consenting Obligors listed therein.

          "Applicable  Margin"  means,  in the case of (a)  Revolving  Loans and
     Existing Term Loans, for Loans of each type, the applicable  percentage set
     forth below such type of Loan and  corresponding to the relevant Total Debt
     to EBITDA Ratio:

<TABLE>
<CAPTION>

                        Total Debt                           Applicable                      Applicable
                     to EBITDA Ratio                  Margin for LIBO Rate Loans     Margin for Base Rate Loans

<S>                                                             <C>                            <C>
         greater than or equal to 5.0:1                         3.50%                          2.25%

         greater than or equal to 4.0:1 but less                3.25%                          2.00%
         than 5.0:1

         greater than or equal to 3.0:1 but less                2.75%                          1.50%
         than 4.0:1

         less than 3.0:1                                        2.25%                          1.00%

</TABLE>

          (b) Additional Term Loans,  maintained as a (i) LIBO Rate Loan,  3.75%
     per annum and (ii) Base Rate Loan, 2.75% per annum; and

          (c) Second Additional Term Loans,  maintained as a (i) LIBO Rate Loan,
     4.0% per annum and (ii) Base Rate Loan, 3.0% per annum.

If the  Borrower  shall fail to  deliver a  Compliance  Certificate  for a given
Fiscal Quarter  within the time required by clause (d) of Section  7.1.1,  or if
any Event of Default shall have occurred and be continuing,  then the Applicable
Margin  for the  period  from the 46th day after  the  first day of such  Fiscal
Quarter  (or, in the case of the fourth  Fiscal  Quarter,  the 91st day) through
(but  excluding)  the  date  such  Compliance  Certificate  is  delivered  shall
conclusively  equal the highest Applicable Margin set forth above for the Fiscal
Quarter during which the Compliance  Certificate was not timely  delivered.  Any
reduction in the Applicable Margin shall be effective beginning on the date that
is three days following the date on which the Administrative  Agent receives the
Borrower's  Compliance  Certificate  pursuant to clause (d) of Section 7.1.1. If
the Applicable  Margin is required to be increased as a result of an increase in
the most recently  determined Total Debt to EBITDA Ratio, such higher Applicable
Margin shall be effective as of and  retroactive  to the first day of the Fiscal
Quarter in which such Compliance Certificate was required to be delivered.

                                       3
<PAGE>

               "Condition  Date" means the date on which the  Borrower  delivers
          evidence   to  the   Administrative   Agent  in  form  and   substance
          satisfactory  to the  Administrative  Agent that the  Borrower  had at
          least $40,000,000 of EBITDA for the 2000 Fiscal Year.

               "Fourth  Amendment  Effective  Date" is defined in Section 3.1 of
          Amendment  No. 4. "Second  Additional  Term Loan" is defined in clause
          (c) of Section 2.1.1.

               "Second Additional Term Loan Commitment"  means,  relative to any
          Lender, such Lender's obligation to make Term Loans pursuant to clause
          (c) of Section 2.1.1.

               "Second  Additional  Term Loan  Commitment  Amount" means, on any
          date,  $7,500,000,  as such  amount may be  reduced  from time to time
          pursuant to Section 2.2.

               "Second  Additional Term Loan Commitment  Termination Date" means
          the earliest of:

                 (a)  April 15, 2001; or
                 (b)  the date on which any Commitment Termination Event occurs.

               Upon the  occurrence  of any event  described  above,  the Second
          Additional Term Loan  Commitment  shall  terminate  automatically  and
          without any further action.

               "Second  Additional  Term Note"  means a  promissory  note of the
          Borrower  payable to any Lender,  substantially in the form of Exhibit
          A-4  hereto  (as such  promissory  note may be  amended,  endorsed  or
          otherwise  modified  from  time to  time),  evidencing  the  aggregate
          Indebtedness of the Borrower to such Lender resulting from outstanding
          Second  Additional  Term  Loans,  and also means all other  promissory
          notes accepted from time to time in  substitution  therefor or renewal
          thereof.

     SECTION  II.2.2.  Section 1.1 of the  Existing  Credit  Agreement is hereby
amended  by  deleting  the   following   definitions:   "Additional   Term  Loan
Percentage", "Existing Term Loan Percentage",  "Applicable Base Rate Margin" and
"Applicable LIBO Rate Margin".

     SECTION  II.2.3.  Section 1.1 of the  Existing  Credit  Agreement is hereby
amended by amending and restating the following  definitions  in such Section so
that they read in their entireties as follows:

                  "Letter of Credit  Commitment  Amount"  means,  on any date, a
         maximum amount of $10,000,000,  as such amount may be reduced from time
         to time  pursuant to the terms hereof (or, if less,  the then  existing
         Revolving Loan Commitment Amount).

                                       4
<PAGE>

                  "Percentage"  means,  relative to any Lender,  the  applicable
         percentage relating to Revolving Loans, Existing Term Loans, Additional
         Term Loans,  Second  Additional Term Loans or its aggregate  percentage
         for all facilities  provided  herein,  as the case may be, as set forth
         opposite  its name on Schedule II hereto  under the  applicable  column
         heading  or set  forth in  Lender  Assignment  Agreement(s)  under  the
         applicable column heading, as such percentage may be adjusted from time
         to time  pursuant to Lender  Assignment  Agreement(s)  executed by such
         Lender and its Assignee  Lender(s)  and  delivered  pursuant to Section
         10.11.  A Lender shall not have (a) any  Commitment  to make  Revolving
         Loans or Second  Additional Term Loans (as the case may be) or (b) made
         any Existing Term Loans or Additional  Term Loans (as the case may be),
         in each case, if its percentage under the applicable  column heading on
         Schedule II is zero.  As used herein,  "Percentage"  as it relates to a
         Lender's  Percentage of Letter of Credit Outstandings shall be equal to
         such Lender's Percentage of Revolving Loans.

                  "Term Loan  Commitment"  means,  relative to any Lender,  such
         Lender's  obligation to make Existing Term Loans pursuant to clause (a)
         of Section 2.1.1,  to make Additional Term Loans pursuant to clause (b)
         of Section 2.1.1,  and/or to make Second Additional Term Loans pursuant
         to clause (c) of Section 2.1.1, as the context may require.

                  "Term Loans" means, collectively, the Existing Term Loans, the
         Additional Term Loans and the Second Additional Term Loans.

                  "Term Note" means,  as the context may require,  an Additional
         Term Note, an Existing Term Note or a Second Additional Term Note.

     SECTION II.3.  Amendments to Article II. Article II of the Existing  Credit
Agreement is hereby amended as follows:

     SECTION II.3.1.  Section 2.1.1 of the Existing  Credit  Agreement is hereby
amended  by  adding  a new  clause  (c) at the  end of such  Section  to read as
follows:

                  "(c) From time to time on any  Business  Day  occurring on and
         after the  Fourth  Amendment  Effective  Date and  prior to the  Second
         Additional Term Loan Termination Date, each Lender with a Percentage in
         excess of zero of the Second  Additional  Term Loan  Commitment  Amount
         will make loans (relative to such Lender,  its "Second  Additional Term
         Loans")  to the  Borrower  equal  to such  Lender's  Percentage  of the
         aggregate  amount of the  Borrowing  of Second  Additional  Term  Loans
         requested  by the  Borrower to be made on such day (the  commitment  of
         each such Lender  described in this Section 2.1.1 is herein referred to
         as its "Second  Additional Term Loan Commitment");  provided,  however,
         that the Borrower may only borrow up to $5,000,000 of Second Additional
         Term Loans prior to the Condition Date. No amounts paid or prepaid with
         respect to any Second Additional Term Loans may be reborrowed."

                                       5
<PAGE>

     SECTION II.3.2.  Section 2.1.4 of the Existing  Credit  Agreement is hereby
amended by adding a new clause (e) thereto to read as follows:

                  "(e) make any Second  Additional  Term Loan if,  after  giving
         effect thereto, the aggregate  outstanding  principal amount of all the
         Second  Additional  Term  Loans  (i)  of all  Lenders  with  an  Second
         Additional  Term Loan  Commitments  would exceed the Second  Additional
         Term  Loan  Commitment  Amount  or (ii) of such  Lender  with an Second
         Additional Term Loan Commitment  would exceed such Lender's  Percentage
         of the Second Additional Term Loan Commitment Amount."

     SECTION II.3.3.  Section 2.6.2 of the Existing  Credit  Agreement is hereby
amended by deleting the words  "Applicable Base Rate Margin"  appearing  therein
and replacing them with  "Applicable  Margin for Revolving  Loans  maintained as
Base Rate Loans".

     SECTION II.4. Amendments to Article III. Article III of the Existing Credit
Agreement is hereby amended as follows:

     SECTION  II.4.1.  Clause  (j) of  Section  3.1.1.  of the  Existing  Credit
Agreement is hereby amended by inserting the words "and Second  Additional  Term
Loans" after the words "Additional Term Loans" appearing therein.

     SECTION II.4.2.  Section 3.2.1 of the Existing  Agreement is hereby amended
by deleting the words  "Applicable  Base Rate Margin and  "Applicable  LIBO Rate
Margin" appearing therein and replacing them with "Applicable  Margin" each time
such words appear.

     SECTION II.4.3.  Section 3.2.2 of the Existing  Credit  Agreement is hereby
amended by deleting the words  "Applicable Base Rate Margin"  appearing  therein
and replacing them with  "Applicable  Margin for Revolving  Loans  maintained as
Base Rate Loans".

     SECTION II.4.4.  Section 3.3.3 of the Existing  Agreement is hereby amended
by  deleting  the words  "Applicable  LIBO Rate  Margin"  appearing  therein and
replacing them with  "Applicable  Margin for Revolving Loans  maintained as LIBO
Rate Loans" each time such words appears.

     SECTION  II.5.  Amendments to Article VII.  Section  7.1.11 of the Existing
Credit  Agreement  is hereby  amended by deleting the word "and"  following  the
words  "Revolving  Loans" and  replacing it with a "," and inserting the words "
and Second  Additional Term Loans"  immediately  following the words "Additional
Term Loans" in the second sentence thereof.

     SECTION  II.6.  Schedule  II  to  Credit  Agreement.  The  Existing  Credit
Agreement  is hereby  amended by adding a new Schedule II thereto in the form of
Schedule II hereto.

                                       6
<PAGE>

     SECTION  II.7.  Exhibit  A-4  to  Credit  Agreement.  The  Existing  Credit
Agreement  is hereby  amended by adding a new Exhibit A-4 thereto in the form of
Exhibit A-4 hereto.

                                   ARTICLE III
                           CONDITIONS TO EFFECTIVENESS

     SECTION III.1. Amendment Effective Date. This Amendment (and the amendments
and modifications contained herein) shall become effective, and shall thereafter
be  referred  to as  "Amendment  No.  4",  on the date  (the  "Fourth  Amendment
Effective  Date") when all of the  conditions set forth in this Section 3.1 have
been satisfied.

     SECTION III.1.1. Execution of Counterparts.  The Administrative Agent shall
have received  counterparts  of this  Amendment,  duly executed and delivered on
behalf of the Borrower,  the Consenting Obligors,  the Required Lenders and each
Lender with a Second Additional Term Loan Commitment.

     SECTION  III.1.2.  Resolutions,  etc. The  Administrative  Agent shall have
received from the Borrower a certificate,  dated the Fourth Amendment  Effective
Date, in form and substance  satisfactory  to the  Administrative  Agent, of its
Secretary or Assistant Secretary as to (a) resolutions of its Board of Directors
then  in  full  force  and  effect  authorizing  the  execution,   delivery  and
performance of this Amendment and each other Loan Document to be executed by it;
and (b) the incumbency and signatures of those of its officers authorized to act
with respect to this Amendment and each other Loan Document executed by it, upon
which certificate each Lender may conclusively rely until it shall have received
a further  certificate  of the Secretary or Assistant  Secretary of the Borrower
canceling or amending such prior certificate.

     SECTION  III.1.3.  Delivery of Notes. The  Administrative  Agent shall have
received,  for the account of each Lender making Second  Additional  Term Loans,
its Second Additional Term Notes duly executed and delivered by the Borrower.

     SECTION III.1.4.  Opinions of Counsel.  The Administrative Agent shall have
received legal opinions, dated the Fourth Amendment Effective Date and addressed
to the  Administrative  Agent and all Lenders,  from (a) Stutzman & Bromberg,  a
professional  corporation,  counsel to the  Obligors,  and (b) Shustak,  Jalil &
Heller,  New  York  counsel  to the  Obligors,  each  satisfactory  in form  and
substance to the Administrative Agent.

     SECTION   III.1.5.   Amendment  Fee  and  Additional  Term  Loan  Fee.  The
Administrative  Agent  shall have  received,  (a) for the account of each Lender
signatory hereto prior to or on the date hereof,  an amendment fee equal to .25%
of each such Lender's  Percentage  of the  outstanding  principal  amount of the
Loans and Commitments;  and (b) for the account of each Lender that has a Second
Additional Term Loan Commitment,  an up-front fee in an amount equal to 3.00% of
each such Lender's Second Additional Term Loan Commitment Amount.

                                       7
<PAGE>

     SECTION III.1.6.  Closing Fees,  Expenses,  etc. The  Administrative  Agent
shall have received for the account of each Lender, all fees, costs and expenses
due and payable  pursuant to Sections  3.3 and 10.3 of the Credit  Agreement  or
payable hereunder, if then invoiced.

     SECTION III.1.7.  Legal Details,  etc. All documents  executed or submitted
pursuant   hereto  shall  be   satisfactory   in  form  and   substance  to  the
Administrative Agent and its counsel. The Administrative Agent and their counsel
shall have  received  all  information  and such  counterpart  originals or such
certified or other copies or such materials,  as the Administrative Agent or its
counsel  may  reasonably  request,   and  all  legal  matters  incident  to  the
transactions  contemplated  by  this  Amendment  shall  be  satisfactory  to the
Administrative Agent and its counsel.

                                   ARTICLE IV
                             AFFIRMATION AND CONSENT

     SECTION  IV.1.  Acknowledgment  and  Reaffirmation.  The  Borrower and each
Consenting Obligor hereby reaffirms,  as of the Fourth Amendment Effective Date,
(a) the covenants and agreements  contained in each Loan Document to which it is
a party,  including,  in each case,  as such  covenants  and  agreements  may be
modified by this Amendment and the transactions  contemplated  thereby,  (b) its
guarantee of payment of the Obligations  pursuant to the Subsidiary Guaranty and
(c) its  obligations  with respect to collateral  security under each other Loan
Document to which it is a party.

     SECTION IV.2.  Representations  and Warranties,  etc. The Borrower and each
Consenting Obligor hereby certifies that, as of the date hereof (both before and
after giving effect to the occurrence of the Fourth  Amendment  Effective Date),
the representations and warranties made by it contained in the Loan Documents to
which it is a party are true and correct in all material  respects with the same
effect  as  if  made  on  the  date  hereof,  except  to  the  extent  any  such
representation or warranty refers or pertains solely to a date prior to the date
hereof (in which case such  representation  and warranty was true and correct in
all material respects as of such earlier date).

     SECTION IV.3.  Loan  Documents.  The Borrower and each  Consenting  Obligor
further confirms that each Loan Document to which it is a party (a) is and shall
continue  to be in full force and effect  and the same are hereby  ratified  and
confirmed  in all  respects,  except  that  upon the  occurrence  of the  Fourth
Amendment  Effective  Date, all references in such Loan Documents to the "Credit
Agreement",  "Loan  Documents",  "thereunder",  "thereof",  or words of  similar
import shall mean the Credit  Agreement and the Loan Documents,  as the case may
be, in each case after giving effect to the amendments  and other  modifications
provided for in this Amendment,  (b) if such Loan Document relates to collateral
security,  such document shall also  expressly and completely  secure all Second
Additional Term Loans and all  Obligations  related thereto

                                       8
<PAGE>

and (c) if such Loan Document  relates to a guarantee,  such document shall also
expressly  and  completely  guarantee all Second  Additional  Term Loans and all
Obligations related thereto.

     SECTION  IV.4.  Course of Dealing,  etc.  Each  Consenting  Obligor  hereby
acknowledges  and agrees that the  acceptance  by each  Lender of this  document
shall not be construed  in any manner to establish  any course of dealing on any
Lender's  part,  including the providing of any notice or the  requesting of any
acknowledgment  not otherwise  expressly  provided for in any Loan Document with
respect to any future amendment, waiver, supplement or other modification to any
Loan Document or any arrangement contemplated by any Loan Document.

                                    ARTICLE V
                                  MISCELLANEOUS

     SECTION V.1. Cross-References.  References in this Amendment to any Article
or Section are, unless otherwise specified or otherwise required by the context,
to such Article or Section of this Amendment.

     SECTION V.2. Loan Document Pursuant to Credit Agreement.  This Amendment is
a Loan  Document  executed  pursuant  to  the  Credit  Agreement  and  shall  be
construed,  administered  and  applied in  accordance  with all of the terms and
provisions of the Credit Agreement.

     SECTION V.3.  Successors and Assigns.  This Amendment shall be binding upon
and inure to the benefit of the parties hereto and their  respective  successors
and assigns.

     SECTION V.4.  Counterparts.  This  Amendment may be executed by the parties
hereto in several counterparts,  each of which when executed and delivered shall
be deemed to be an original and all of which shall  constitute  together but one
and the same agreement.

     SECTION V.5. Full Force and Effect; Limited Amendment.  Except as expressly
modified  hereby,  all of the  representations,  warranties,  terms,  covenants,
conditions and other  provisions of the Existing  Credit  Agreement and the Loan
Documents shall remain unchanged and shall continue to be, and shall remain,  in
full force and effect in accordance with their  respective  terms.  The consents
and  modifications  set forth herein shall be limited  precisely as provided for
herein,  and shall not be deemed to be an amendment to, waiver of, consent to or
modification  of any other term or provision of the Existing  Credit  Agreement,
any other Loan Document  referred to therein or herein or of any  transaction or
further or future  action on the part of the Borrower or any Obligor which would
require the consent of the Lenders under the Existing Credit Agreement or any of
the Loan Documents.

     SECTION  V.6.  Governing  Law.  THIS  AMENDMENT  SHALL BE  GOVERNED  BY AND
CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK.

                                       9
<PAGE>

     IN WITNESS WHEREOF, the signatories hereto have caused this Amendment to be
executed by their  respective  officers  thereunto duly authorized as of the day
and year first above written.

EVERCOM, INC.

By:  /s/ Terry Matlack
  Title: Chief Executive Officer

EVERCOM SYSTEMS, INC.

By:   /s/ Keith Kelson
  Title:  Vice President

CANADIAN IMPERIAL BANK OF COMMERCE,
as Administrative Agent

By:  /s/ Laura Hom
  Title: Executive Director, CIBC World Markets Corp. As Agent

CIBC  INC.

By:  /s/ Laura Hom
Title:   Executive Director, CIBC World Markets Corp. As Agent

                                       10
<PAGE>

FIRST SOURCE FINANCIAL LLP
By: First Source Financial, Inc.
      its Agent/Manager

By:  /s/ Kathi J. Inorio
   -----------------------------------------------------
   Title: Vice President

IBJ WHITEHALL BANK & TRUST
COMPANY

By:  /s/ Alexander B. Wright
   -----------------------------------------------------
   Title: Director

ARES LEVERAGED INVESTMENT
FUND L.P.
By: Ares Management L.P.

By:  /s/ J. M. Moore
   -----------------------------------------------------
   Title: Principal

                                       11
<PAGE>

                                   SCHEDULE II

<TABLE>
<CAPTION>

                                       REVOLVING LOAN  EXISTING TERM    ADDITIONAL TERM   SECOND ADDITIONAL  AGGREGATE PERCENTAGE
                                         COMMITMENT        LOANS             LOANS            TERM LOANS

<S>                                     <C>             <C>                <C>                <C>                 <C>
CIBC Inc.                               32.8125%        19.17613636%       .36363636%         43.33333333%        27.77762642%

First Source Financial LLP              23.4375%        23.43750000%               0%                   0%        19.18728205%

IBJ Whitehall Bank & Trust Company      12.5000%        12.50000000%               0%         13.33333333%        11.62816042%

Banque Paribas                          12.5000%         12.5000000%               0%                   0%        10.23321709%

American National Bank                  18.7500%        18.75000000%               0%                   0%        15.34982562%

Ares Leveraged Investment Fund L.P.      0.0000%        13.63636364%     63.63636364%         43.33333333%        15.82388840%

</TABLE><PAGE>

                                                                  EXHIBIT 10(b)

                             AMENDED AND RESTATED
                              1996 INCENTIVE PLAN
                                      OF
                      ELECTRONIC DATA SYSTEMS CORPORATION

1.   Plan. This 1996 Incentive Plan of Electronic Data Systems Corporation (the
     "Plan") is a continuation of the 1984 Electronic Data Systems Corporation
     Stock Incentive Plan (the "Existing Plan"), which was adopted by General
     Motors Corporation, a Delaware corporation ("General Motors"), to reward
     certain corporate officers and key employees of the predecessor of
     Electronic Data Systems Corporation, a Delaware corporation (the
     "Company"), and its subsidiaries by enabling them to acquire shares of
     Class E Common Stock, par value $.10 per share ("GM Class E Common Stock"),
     of General Motors. The Existing Plan was amended and restated and assumed
     by the Company effective as of the Split-Off (as hereinafter defined),
     following which neither General Motors nor the committee appointed by
     General Motors to administer the Existing Plan (the "Predecessor
     Committee") had any further rights or responsibilities thereunder. The
     Existing Plan is further amended and restated in its entirety as set forth
     herein effective as of June 1, 2000.

2.   Objectives. This Plan is designed to attract and retain key employees of
     the Company and its Subsidiaries (as hereinafter defined), to attract and
     retain qualified directors of the Company, to encourage the sense of
     proprietorship of such employees and Directors, and to stimulate the active
     interest of such persons in the development and financial success of the
     Company and its Subsidiaries. These objectives are to be accomplished by
     making Awards (as hereinafter defined) under this Plan and thereby
     providing Participants (as hereinafter defined) with a proprietary interest
     in the growth and performance of the Company and its Subsidiaries.

3.   Definitions.   As used herein, the terms set forth below shall have the
     following respective meanings:

          "Annual Director Award Date" means, for each year beginning on or
     after the Split-Off, the first business day of the month next succeeding
     the date upon which the annual meeting of stockholders of the Company is
     held in such year.

          "Authorized Officer" means the Chairman of the Board or the Chief
     Executive Officer of the Company (or any other senior officer of the
     Company to whom either of them shall delegate the authority to execute any
     Award Agreement).

          "Award" means an Employee Award or a Director Award.

          "Award Agreement" means any Employee Award Agreement or Director Award
     Agreement.

          "Board" means the Board of Directors of the Company.

          "Cash Award" means an award denominated in cash.

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

          "Committee" means the Compensation and Benefits Committee of the Board
     or such other committee of the Board as is designated by the Board to
     administer the Plan.

          "Common Stock" means the Common Stock, par value $.01 per share, of
     the Company.

          "Director" means an individual serving as a member of the Board.

          "Director Award" means the grant of a Director Option or Director
     Restricted Stock.

                                       1
<PAGE>

          "Director Award Agreement" means a written agreement between the
     Company and a Participant who is a Nonemployee Director setting forth the
     terms, conditions and limitations applicable to a Director Award.

          "Director Options" means Nonqualified Options granted to Nonemployee
     Directors pursuant to the applicable terms, conditions and limitations
     specified in paragraph 9(a) hereof.

          "Director Restricted Stock" means Common Stock granted to Nonemployee
     Directors pursuant to the applicable terms, conditions and limitations
     specified in paragraph 9(b) hereof.

          "Disability" means, with respect to a Nonemployee Director, the
     inability to perform the duties of a Director for a continuous period of
     more than three months by reason of any medically determinable physical or
     mental impairment.

          "Dividend Equivalents" means, with respect to shares of Restricted
     Stock that are to be issued at the end of the Restriction Period, an amount
     equal to all dividends and other distributions (or the economic equivalent
     thereof) which are payable to stockholders of record during the Restriction
     Period on a like number of shares of Common Stock.

          "Employee" means an employee of the Company or any of its
     Subsidiaries.

          "Employee Award" means the grant of any Option, SAR, Stock Award, Cash
     Award or Performance Award, whether granted singly, in combination or in
     tandem, to a Participant who is an Employee pursuant to such applicable
     terms, conditions and limitations as the Committee may establish in order
     to fulfill the objectives of the Plan.

          "Employee Award Agreement" means a written agreement between the
     Company and a Participant who is an Employee setting forth the terms,
     conditions and limitations applicable to an Employee Award.

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

          "Fair Market Value" of a share of Common Stock means, as of a
     particular date, (i) if shares of Common Stock are listed on a national
     securities exchange, the mean between the highest and lowest sales price
     per share of Common Stock on the consolidated transaction reporting system
     for the principal national securities exchange on which shares of Common
     Stock are listed on that date, or, if there shall have been no such sale so
     reported on that date, on the last preceding date on which such a sale was
     so reported, (ii) if shares of Common Stock are not so listed but are
     quoted on the Nasdaq Stock Market, the mean between the highest and lowest
     sales price per share of Common Stock reported by the Nasdaq Stock Market
     on that date, or, if there shall have been no such sale so reported on that
     date, on the last preceding date on which such a sale was so reported or
     (iii) if the Common Stock is not so listed or quoted but are traded in the
     over-the-counter market, the mean between the closing bid and asked price
     on that date, or, if there are no quotations available for such date, on
     the last preceding date on which such quotations shall be available, as
     reported by the Nasdaq Stock Market, or, if not reported by the Nasdaq
     Stock Market, by the National Quotation Bureau Incorporated; provided,
     however, that, in the case of Awards made on the date of the Split-Off, if
     as of such date trading in shares of Common Stock shall not have commenced
     on the New York Stock Exchange, the "Fair Market Value" of a share of
     Common Stock for purposes of such Awards shall be deemed to be equal to the
     average of the closing prices of a share of GM Class E Common Stock on the
     date of the Split-Off and the four consecutive trading days immediately
     preceding such date, in each case as reported on the consolidated
     transaction reporting system for the New York Stock Exchange on such date.

          "Incentive Option" means an Option that is intended to comply with the
     requirements set forth in Section 422 of the Code.

                                       2
<PAGE>

          "Noncompetition Provisions" has the meaning set forth in paragraph
     8(c) hereof.

          "Nonemployee Director" has the meaning set forth in paragraph 4(b)
     hereof.

          "Nonqualified Stock Option" means an Option that is not an Incentive
     Option.

          "Option" means a right to purchase a specified number of shares of
     Common Stock at a specified price.

          "Participant" means an Employee or Director to whom an Award has been
     made under this Plan.

          "Performance Award" means an award made pursuant to this Plan to a
     Participant who is an Employee that is subject to the attainment of one or
     more Performance Goals.

          "Performance Goal" means a standard established by the Committee, to
     determine in whole or in part whether a Performance Award shall be earned.

          "Restricted Stock" means any Common Stock that is restricted or
     subject to forfeiture provisions.

          "Restriction Period" means a period of time beginning as of the date
     upon which an Award of Restricted Stock is made pursuant to this Plan and
     ending as of the date upon which the Common Stock subject to such Award is
     no longer restricted or subject to forfeiture provisions.

          "Rule 16b-3" means Rule 16b-3 promulgated under the Exchange Act, or
     any successor rule.

          "SAR" means a right to receive a payment, in cash or Common Stock,
     equal to the excess of the Fair Market Value or other specified valuation
     of a specified number of shares of Common Stock on the date the right is
     exercised over a specified strike price (in each case, as determined by the
     Committee).

          "Split-Off" means the issuance or delivery of shares of Common Stock
     upon conversion of all of the outstanding shares of GM Class E Common Stock
     as a result of the merger of GM Mergeco Corporation, a Delaware corporation
     and indirect wholly owned subsidiary of the Company, with and into General
     Motors effective as of June 7, 1996.

          "Stock Award" means an award in the form of shares of Common Stock or
     units denominated in shares of Common Stock.

          "Subsidiary" means (i) in the case of a corporation, any corporation
     of which the Company directly or indirectly owns shares representing more
     than 50% of the combined voting power of the shares of all classes or
     series of capital stock of such corporation which have the right to vote
     generally on matters submitted to a vote of the stockholders of such
     corporation and (ii) in the case of a partnership or other business entity
     not organized as a corporation, any such business entity of which the
     Company directly or indirectly owns more than 50% of the voting, capital or
     profits interests (whether in the form of partnership interests, membership
     interests or otherwise).

4.   Eligibility.

     (a)  Employees. Key Employees eligible for Employee Awards under this Plan
          are those who hold positions of responsibility and whose performance,
          in the judgment of the Committee, can have a significant effect on the
          success of the Company and its Subsidiaries.

                                       3
<PAGE>

     (b)  Directors. Directors eligible for Director Awards under this Plan are
          those who are not employees of the Company or any of its Subsidiaries
          ("Nonemployee Directors").

5.   Common Stock Available for Awards. Subject to the provisions of paragraph
     15 hereof, there shall be available for Awards under this Plan granted
     wholly or partly in Common Stock (including rights or options which may be
     exercised for or settled in Common Stock) an aggregate of 60,000,000 shares
     of Common Stock (in addition to any shares that are the subject of Awards
     outstanding as of the date of the Split-Off), of which an aggregate of not
     more than 400,000 shares shall be available for Director Awards and the
     remainder shall be available for Employee Awards. The number of shares of
     Common Stock that are the subject of Awards under this Plan, that are
     forfeited or terminated, expire unexercised, are settled in cash in lieu of
     Common Stock or in a manner such that all or some of the shares covered by
     an Award are not issued to a Participant or are exchanged for Awards that
     do not involve Common Stock, shall again immediately become available for
     Awards hereunder; provided, however, that in the case of shares of Common
     Stock that are the subject of Awards made under the Existing Plan prior to
     the date of the Split-Off, such shares shall in no event become available
     for Awards hereunder at any time after such date. The Committee may from
     time to time adopt and observe such procedures concerning the counting of
     shares against the Plan maximum as it may deem appropriate. The Board and
     the appropriate officers of the Company shall from time to time take
     whatever actions are necessary to file any required documents with
     governmental authorities, stock exchanges and transaction reporting systems
     to ensure that shares of Common Stock are available for issuance pursuant
     to Awards.

6.   Administration.

     (a)  This Plan, as it applies to Participants who are Employees but not
          with respect to Participants who are Nonemployee Directors, shall be
          administered by the Committee. To the extent required in order for
          Employee Awards to be exempt from Section 16 of the Exchange Act by
          virtue of the provisions of Rule 16b-3, the Committee shall consist of
          at least two members of the Board who meet the requirements of the
          definition of "disinterested person" set forth in Rule 16b-3(c)(2)(i)
          promulgated under the Exchange Act.

     (b)  Subject to the provisions hereof, insofar as this Plan relates to the
          Employee Awards, the Committee shall have full and exclusive power and
          authority to administer this Plan and to take all actions which are
          specifically contemplated hereby or are necessary or appropriate in
          connection with the administration hereof. Insofar as this Plan
          relates to Employee Awards, the Committee shall also have full and
          exclusive power to interpret this Plan and to adopt such rules,
          regulations and guidelines for carrying out this Plan as it may deem
          necessary or proper, all of which powers shall be exercised in the
          best interests of the Company and in keeping with the objectives of
          this Plan. The Committee may, in its discretion, provide for the
          extension of the exercisability of an Employee Award, accelerate the
          vesting or exercisability of an Employee Award, eliminate or make less
          restrictive any restrictions contained in an Employee Award, waive any
          restriction or other provision of this Plan or an Employee Award or
          otherwise amend or modify an Employee Award in any manner that is
          either (i) not adverse to the Participant to whom such Employee Award
          was granted or (ii) consented to by such Participant. The Committee
          may correct any defect or supply any omission or reconcile any
          inconsistency in this Plan or in any Employee Award in the manner and
          to the extent the Committee deems necessary or desirable to carry it
          into effect. Any decision of the Committee in the interpretation and
          administration of this Plan shall lie within its sole and absolute
          discretion and shall be final, conclusive and binding on all parties
          concerned.

     (c)  No member of the Committee or officer of the Company to whom the
          Committee has delegated authority in accordance with the provisions of
          paragraph 7 of this Plan shall be liable for anything done or omitted
          to be done by him or her, by any member of the Committee or by any
          officer of the Company in connection with the performance of any
          duties under this Plan, except for his or her own willful misconduct
          or as expressly provided by statute.

                                       4
<PAGE>

7.   Delegation of Authority. The Committee may delegate to the Chief Executive
     Officer and to other senior officers of the Company its duties under this
     Plan pursuant to such conditions or limitations as the Committee may
     establish, except that the Committee may not delegate to any person the
     authority to grant Awards to, or take other action with respect to,
     Participants who are subject to Section 16 of the Exchange Act.

8.   Employee Awards.

     (a)  The Committee shall determine the type or types of Employee Awards to
          be made under this Plan and shall designate from time to time the
          Employees who are to be the recipients of such Awards. Each Employee
          Award may be embodied in an Employee Award Agreement, which shall
          contain such terms, conditions and limitations as shall be determined
          by the Committee in its sole discretion and shall be signed by the
          Participant to whom the Employee Award is made and by an Authorized
          Officer for and on behalf of the Company. Employee Awards may consist
          of those listed in this paragraph 8(a) hereof and may be granted
          singly, in combination or in tandem. Employee Awards may also be made
          in combination or in tandem with, in replacement of, or as
          alternatives to, grants or rights under this Plan or any other
          employee plan of the Company or any of its Subsidiaries, including the
          plan of any acquired entity; provided that no Option may be issued in
          exchange for the cancellation of an Option with a lower exercise
          price. An Employee Award may provide for the grant or issuance of
          additional, replacement or alternative Employee Awards upon the
          occurrence of specified events, including the exercise of the original
          Employee Award granted to a Participant. All or part of an Employee
          Award may be subject to conditions established by the Committee, which
          may include, but are not limited to, continuous service with the
          Company and its Subsidiaries, achievement of specific business
          objectives, increases in specified indices, attainment of specified
          growth rates and other comparable measurements of performance. Upon
          the termination of employment by a Participant who is an Employee, any
          unexercised, deferred, unvested or unpaid Employee Awards shall be
          treated as set forth in the applicable Employee Award Agreement.

          (i)    Stock Option. An Employee Award may be in the form of an
                 Option. An Option awarded pursuant to this Plan may consist of
                 an Incentive Option or a Nonqualified Option. The price at
                 which shares of Common Stock may be purchased upon the exercise
                 of an Incentive Option shall be not less than the Fair Market
                 Value of the Common Stock on the date of grant. The price at
                 which shares of Common Stock may be purchased upon the exercise
                 of a Nonqualified Option shall be not less than, but may
                 exceed, the Fair Market Value of the Common Stock on the date
                 of grant. Subject to the foregoing provisions, the terms,
                 conditions and limitations applicable to any Options awarded
                 pursuant to this Plan, including the term of any Options and
                 the date or dates upon which they become exercisable, shall be
                 determined by the Committee.

          (ii)   Stock Appreciation Right. An Employee Award may be in the form
                 of an SAR. The terms, conditions and limitations applicable to
                 any SARs awarded pursuant to this Plan, including the term of
                 any SARs and the date or dates upon which they become
                 exercisable, shall be determined by the Committee.

          (iii)  Stock Award. An Employee Award may be in the form of a Stock
                 Award. The terms, conditions and limitations applicable to any
                 Stock Awards granted pursuant to this Plan shall be determined
                 by the Committee.

          (iv)   Cash Award. An Employee Award may be in the form of a Cash
                 Award. The terms, conditions and limitations applicable to any
                 Cash Awards granted pursuant to this Plan shall be determined
                 by the Committee.

                                       5
<PAGE>

          (v)    Performance Award. Without limiting the type or number of
                 Employee Awards that may be made under the other provisions of
                 this Plan, an Employee Award may be in the form of a
                 Performance Award. A Performance Award shall be paid, vested or
                 otherwise deliverable solely on account of the attainment of
                 one or more pre-established, objective Performance Goals
                 established by the Committee prior to the earlier to occur of
                 (x) 90 days after the commencement of the period of service to
                 which the Performance Goal relates and (y) the elapse of 25% of
                 the period of service (as scheduled in good faith at the time
                 the goal is established), and in any event while the outcome is
                 substantially uncertain. A Performance Goal is objective if a
                 third party having knowledge of the relevant facts could
                 determine whether the goal is met. Such a Performance Goal may
                 be based on one or more of business criteria that apply to the
                 individual, one or more business units of the Company, or the
                 Company as a whole, and may include one or more of the
                 following: increased revenue, net income, stock price, market
                 share, earnings per share, return on equity, return on assets
                 or decrease in costs. Unless otherwise stated, such a
                 Performance Goal need not be based upon an increase or positive
                 result under a particular business criterion and could include,
                 for example, maintaining the status quo or limiting economic
                 losses (measured, in each case, by reference to specific
                 business criteria). In interpreting Plan provisions applicable
                 to Performance Goals and Performance Awards, it is the intent
                 of the Plan to conform with the standards of Section 162(m) of
                 the Code and Treasury Regulations  1.162-27(e)(2)(i), and the
                 Committee in establishing such goals and interpreting the Plan
                 shall be guided by such provisions. Prior to the payment of any
                 compensation based on the achievement of Performance Goals, the
                 Committee must certify in writing that applicable Performance
                 Goals and any of the material terms thereof were, in fact,
                 satisfied. Subject to the foregoing provisions, the terms,
                 conditions and limitations applicable to any Performance Awards
                 made pursuant to this Plan shall be determined by the
                 Committee.

     (b)  Notwithstanding anything to the contrary contained in this Plan, the
          following limitations shall apply to any Employee Awards made
          hereunder:

          (i)    no Participant may be granted, during any one-year period,
                 Employee Awards consisting of Options or SARs that are
                 exercisable for more than 1,500,000 shares of Common Stock;

          (ii)   no Participant may be granted, during any one-year period,
                 Employee Awards consisting of shares of Common Stock or units
                 denominated in such shares (other than any Employee Awards
                 consisting of Options or SARs) covering or relating to more
                 than 300,000 shares of Common Stock (the limitation set forth
                 in this clause (ii), together with the limitation set forth in
                 clause (i) above, being hereinafter collectively referred to as
                 the "Stock Based Awards Limitations"); and

          (iii)  no Participant may be granted Employee Awards consisting of
                 cash or in any other form permitted under this Plan (other than
                 Employee Awards consisting of Options or SARs or otherwise
                 consisting of shares of Common Stock or units denominated in
                 such shares) in respect of any one-year period having a value
                 determined on the date of grant in excess of $5,000,000.

     (c)  Prior to the Split-Off, certain awards consisting of shares of GM
          Class E Common Stock or units denominated in such shares (the
          "Existing Stock Awards") have been made to Employees under the
          Existing Plan as in effect from time to time. As of the Split-Off,
          each Existing Stock Award shall be adjusted so that such award shall
          consist of or relate to a number of shares of Common Stock equal to
          the number of shares of GM Class E Common Stock that are the subject
          of such Existing Stock Award immediately prior to such date, without
          any alteration or enlargement of the rights of the holders thereof.
          Notwithstanding anything to the contrary contained in this Plan, all
          Existing Stock Awards that are subject to the restrictions and other
          provisions relating to competition by participants and related matters
          that are set forth in Section 10 of the Existing

                                       6
<PAGE>

          Plan (the "Noncompetition Provisions") shall continue to be subject to
          the Noncompetition Provisions after the Split-Off, as fully and to the
          same extent as if Section 10 of the Existing Plan were set forth
          herein in its entirety. The Noncompetition Provisions shall apply to
          all Existing Awards, but shall not apply to any Awards made after the
          Split-Off unless otherwise determined by the Committee.

9.   Director Awards. Each Nonemployee Director of the Company shall be granted
     Director Awards in accordance with this paragraph 9 and subject to the
     applicable terms, conditions and limitations set forth in this Plan and the
     applicable Director Award Agreement. Notwithstanding anything to the
     contrary contained herein, Director Awards shall not be made in any year in
     which a sufficient number of shares of Common Stock are not available to
     make such Awards under this Plan.

     (a)  Director Options. On each Annual Director Award Date, each Nonemployee
          Director shall automatically be granted a Director Option that
          provides for the purchase of 4,000 shares of Common Stock. In the
          event that a Nonemployee Director is elected otherwise than by
          election at an annual meeting of stockholders of the Company, on the
          date of his or her election, such Nonemployee Director shall
          automatically be granted a Director Option that provides for the
          purchase of a number of shares of Common Stock (rounded up to the
          nearest whole number) equal to the product of (i) 4,000 and (ii) a
          fraction the numerator of which is the number of days between the
          election of such Nonemployee Director and the next scheduled Annual
          Director Award Date (or, if no such date has been scheduled, the first
          anniversary of the immediately preceding Annual Director Award Date)
          and the denominator of which is 365. Each Director Option shall have a
          term of ten years from the date of grant, notwithstanding any earlier
          termination of the status of the holder as a Nonemployee Director. The
          purchase price of each share of Common Stock subject to a Director
          Option shall be equal to the Fair Market Value of the Common Stock on
          the date of grant. All Director Options shall vest and become
          exercisable in increments of one-third of the total number of shares
          of Common Stock that are subject thereto (rounded up to the nearest
          whole number) on the first and second anniversaries of the date of
          grant and of all remaining shares of Common Stock that are subject
          thereto on the third anniversary of the date of grant. All unvested
          Director Options shall be forfeited if the Nonemployee Director
          resigns as a Director without the consent of a majority of the other
          Directors. This paragraph reflects amendments to this Plan made
          effective as of June 1, 2000 to increase the number of shares subject
          to the Director Option granted on each Annual Director Award Date to
          4,000 from 1,500.

          In addition to the Director Options automatically awarded pursuant to
          the immediately preceding paragraph, a Nonemployee Director may make
          an annual election to receive, in lieu of all or any portion of the
          Director's fees he would otherwise be entitled to receive in cash
          during the next year (including both annual retainer and meeting
          fees), Director Options that provide for the purchase of a number of
          shares of Common Stock (rounded up to the nearest whole number) equal
          to the product of (x) three times (y) a fraction the numerator of
          which is equal to the dollar amount of fees the Nonemployee Director
          elects to forego in the next year in exchange for Director Options and
          the denominator of which is equal to the Fair Market Value of the
          Common Stock on the effective date of the election. Each annual
          election made by a Nonemployee Director pursuant to this paragraph
          9(a)(i) shall take the form of a written document signed by such
          Nonemployee Director and filed with the Secretary of the Company, (ii)
          shall designate the dollar amount of the fees the Nonemployee Director
          elects to forego in the next year in exchange for Director Options and
          (iii) to the extent provided by the Committee in order to ensure that
          the Award of the Director Options is exempt from Section 16 by virtue
          of Rule 16b-3, shall be irrevocable and shall be made prior to the
          date as of which such Award of Director Options is to be effective. An
          Award of Director Options at the election of a Nonemployee Director
          shall be effective on the next Annual Director Award Date.

          Any Award of Director Options shall be embodied in a Director Award
          Agreement, which shall contain the terms, conditions and limitations
          set forth above and shall be signed by the

                                       7
<PAGE>

          Participant to whom the Director Options are granted and by an
          Authorized Officer for and on behalf of the Company.

     (b)  Director Restricted Stock. On each Annual Director Award Date, each
          Nonemployee Director shall automatically be granted 500 shares of
          Director Restricted Stock. In the event that a Nonemployee Director is
          elected otherwise than by election at an annual meeting of
          stockholders of the Company, on the date of his or her election, such
          Nonemployee Director shall automatically be granted a number of shares
          of Director Restricted Stock (rounded up to the nearest whole number)
          equal to the product of (i) 500 and (ii) a fraction the numerator of
          which is the number of days between the election of such Nonemployee
          Director and the next scheduled Annual Director Award Date (or, if no
          such date has been scheduled, the first anniversary of the immediately
          preceding Annual Director Award Date) and the denominator of which is
          365. Shares of Director Restricted Stock awarded to a Nonemployee
          Director (i) shall vest in increments of one-third of the total number
          of shares of Director Restricted Stock (rounded up to the nearest
          whole number) that are the subject of such Award on the first and
          second anniversaries of the date of grant and all remaining shares of
          Director Restricted Stock that are the subject of such Award on the
          third anniversary of the date of grant and (ii) shall fully vest (to
          the extent not previously vested pursuant to clause (i) above) upon a
          failure to reelect the Nonemployee Director as Director, the death of
          the Director or the resignation of the Director by reason of
          Disability or at the request of a majority of the other Directors. All
          unvested shares of Director Restricted Stock granted to a Nonemployee
          Director shall be forfeited if the Nonemployee Director resigns as a
          Director without the consent of a majority of the other Directors.
          Under such terms and conditions as may be established by the Committee
          and in lieu of Restricted Stock to be automatically awarded as of an
          Annual Award Date, a Nonemployee Director may irrevocably elect to
          receive an equivalent amount of Phantom Stock Units under the
          Company's Deferred Compensation Plan for Nonemployee Directors in
          which event no Restricted Stock shall be automatically awarded to
          Nonemployee Director on such date.

          In addition to the Director Restricted Stock automatically awarded
          pursuant to the immediately preceding paragraph, a Nonemployee
          Director may make an annual election to receive, in lieu of all or any
          portion of the Director's fees he would otherwise be entitled to
          receive in cash during the next year (including both annual retainer
          and meeting fees), a number of shares of Director Restricted Stock
          (rounded up to the nearest whole number) having a Fair Market Value
          equal to 110% of a fraction the numerator of which is equal to the
          dollar amount of fees the Nonemployee Director elects to forego in the
          next year in exchange for Director Restricted Stock and the
          denominator of which is equal to the Fair Market Value of the Common
          Stock on the effective date of the election. Each annual election made
          by a Nonemployee Director pursuant to this paragraph 9(b)(i) shall
          take the form of a written document signed by such Nonemployee
          Director and filed with the Secretary of the Company, (ii) shall
          designate the dollar amount of the fees the Nonemployee Director
          elects to forego in the next year in exchange for Director Restricted
          Stock and (iii) to the extent provided by the Committee in order to
          ensure that the Award of the Director Restricted Stock is exempt from
          Section 16 by virtue of Rule 16b-3, shall be irrevocable and shall be
          made prior to the date as of which such Award of Director Restricted
          Stock is to be effective. An Award of Director Restricted Stock at the
          election of a Nonemployee Director shall be effective on the next
          Annual Director Award Date.

          Any Award of Director Restricted Stock shall be embodied in a Director
          Award Agreement, which shall contain the terms, conditions and
          limitations set forth above and shall be signed by the Participant to
          whom the Director Restricted Stock is granted and by an Authorized
          Officer for and on behalf of the Company.

10.  Payment of Awards.

                                       8
<PAGE>

     (a)  General. Payment of Employee Awards may be made in the form of cash or
          Common Stock, or a combination thereof, and may include such
          restrictions as the Committee shall determine, including, in the case
          of Common Stock, restrictions on transfer and forfeiture provisions.
          If payment of an Employee Award is made in the form of Restricted
          Stock, the Employee Award Agreement relating to such shares shall
          specify whether they are to be issued at the beginning or end of the
          Restriction Period. In the event that shares of Restricted Stock are
          to be issued at the beginning of the Restriction Period, the
          certificates evidencing such shares (to the extent that such shares
          are so evidenced) shall contain appropriate legends and restrictions
          that describe the terms and conditions of the restrictions applicable
          thereto. In the event that shares of Restricted Stock are to be issued
          at the end of the Restricted Period, the right to receive such shares
          shall be evidenced by book entry registration or in such other manner
          as the Committee may determine.

     (b)  Deferral. With the approval of the Committee, payments in respect of
          Employee Awards may be deferred, either in the form of installments or
          a future lump sum payment. The Committee may permit selected
          Participants to elect to defer payments of some or all types of
          Employee Awards in accordance with procedures established by the
          Committee. Any deferred payment of an Employee Award, whether elected
          by the Participant or specified by the Employee Award Agreement or by
          the Committee, may be forfeited if and to the extent that the Employee
          Award Agreement so provides.

     (c)  Dividends and Interest. Rights to dividends or Dividend Equivalents
          may be extended to and made part of any Employee Award consisting of
          shares of Common Stock or units denominated in shares of Common Stock,
          subject to such terms, conditions and restrictions as the Committee
          may establish. The Committee may also establish rules and procedures
          for the crediting of interest on deferred cash payments and Dividend
          Equivalents for Employee Awards consisting of shares of Common Stock
          or units denominated in shares of Common Stock.

     (d)  Substitution of Awards. At the discretion of the Committee, a
          Participant who is an Employee may be offered an election to
          substitute an Employee Award for another Employee Award or Employee
          Awards of the same or different type.

11.  Stock Option Exercise. The price at which shares of Common Stock may be
     purchased under an Option shall be paid in full at the time of exercise in
     cash or, if elected by the optionee, the optionee may purchase such shares
     by means of tendering Common Stock or surrendering another Award, including
     Restricted Stock or Director Restricted Stock, valued at Fair Market Value
     on the date of exercise, or any combination thereof. The Committee shall
     determine acceptable methods for Participants who are Employees to tender
     Common Stock or other Employee Awards; provided that any Common Stock that
     is or was the subject of an Employee Award may be so tendered only if it
     has been held by the Participant for six months. The Committee may provide
     for procedures to permit the exercise or purchase of such Awards by use of
     the proceeds to be received from the sale of Common Stock issuable pursuant
     to an Employee Award. Unless otherwise provided in the applicable Award
     Agreement, in the event shares of Restricted Stock are tendered as
     consideration for the exercise of an Option, a number of the shares issued
     upon the exercise of the Option, equal to the number of shares of
     Restricted Stock or Director Restricted Stock used as consideration
     therefor, shall be subject to the same restrictions as the Restricted Stock
     or Director Restricted Stock so submitted as well as any additional
     restrictions that may be imposed by the Committee.

12.  Tax Withholding. The Company shall have the right to deduct applicable
     taxes from any Employee Award payment and withhold, at the time of delivery
     or vesting of cash or shares of Common Stock under this Plan, an
     appropriate amount of cash or number of shares of Common Stock or a
     combination thereof for payment of taxes required by law or to take such
     other action as may be necessary in the opinion of the Company to satisfy
     all obligations for withholding of such taxes. The Committee may also
     permit withholding to be satisfied by the transfer to the Company of shares
     of Common Stock theretofore owned by the holder of the Employee Award with
     respect to which withholding is required. If shares of Common Stock are
     used to satisfy tax withholding, such shares

                                       9
<PAGE>

     shall be valued based on the Fair Market Value when the tax withholding is
     required to be made. The Committee may provide for loans, on either a short
     term or demand basis, from the Company to a Participant who is an Employee
     to permit the payment of taxes required by law.

13.  Amendment, Modification, Suspension or Termination. The Board may amend,
     modify, suspend or terminate this Plan for the purpose of meeting or
     addressing any changes in legal requirements or for any other purpose
     permitted by law, except that (i) no amendment or alteration that would
     adversely affect the rights of any Participant under any Award previously
     granted to such Participant shall be made without the consent of such
     Participant, (ii) no amendment or alteration shall be effective prior to
     approval by the stockholders of the Company to the extent such approval is
     then required pursuant to Rule 16b-3 in order to preserve the applicability
     of any exemption provided by such rule to any Award then outstanding
     (unless the holder of such Award consents) or to the extent stockholder
     approval is otherwise required by applicable legal requirements and (iii)
     the Plan shall not be amended more than once every six months to the extent
     such limitation is required by Rule 16b-3(c)(2)(ii) (or any successor
     provision) under the Exchange Act as then in effect.

14.  Assignability. Unless otherwise determined by the Committee and provided in
     the Award Agreement, no Award or any other benefit under this Plan
     constituting a derivative security within the meaning of Rule 16a-1(c)
     under the Exchange Act shall be assignable or otherwise transferable except
     by will or the laws of descent and distribution or pursuant to a qualified
     domestic relations order as defined by the Code or Title I of the Employee
     Retirement Income Security Act, or the rules thereunder. The Committee may
     prescribe and include in applicable Award Agreements other restrictions on
     transfer. Any attempted assignment of an Award or any other benefit under
     this Plan in violation of this paragraph 14 shall be null and void.

15.  Adjustments.

     (a)  The existence of outstanding Awards shall not affect in any manner the
          right or power of the Company or its stockholders to make or authorize
          any or all adjustments, recapitalizations, reorganizations or other
          changes in the capital stock of the Company or its business or any
          merger or consolidation of the Company, or any issue of bonds,
          debentures, preferred or prior preference stock (whether or not such
          issue is prior to, on a parity with or junior to the Common Stock) or
          the dissolution or liquidation of the Company, or any sale or transfer
          of all or any part of its assets or business, or any other corporate
          act or proceeding of any kind, whether or not of a character similar
          to that of the acts or proceedings enumerated above.

     (b)  In the event of any subdivision or consolidation of outstanding shares
          of Common Stock, declaration of a dividend payable in shares of Common
          Stock or other stock split, then (i) the number of shares of Common
          Stock reserved under this Plan, (ii) the number of shares of Common
          Stock covered by outstanding Awards in the form of Common Stock or
          units denominated in Common Stock, (iii) the exercise or other price
          in respect of such Awards, (iv) the appropriate Fair Market Value and
          other price determinations for such Awards, (v) the number of shares
          of Common Stock covered by Director Options automatically granted
          pursuant to paragraph 9(a) hereof, (vi) the number of shares of
          Director Restricted Stock automatically granted pursuant to paragraph
          9(b) hereof and (vii) the Stock Based Awards Limitations shall each be
          proportionately adjusted by the Board to reflect such transaction. In
          the event of any other recapitalization or capital reorganization of
          the Company, any consolidation or merger of the Company with another
          corporation or entity, the adoption by the Company of any plan of
          exchange affecting the Common Stock or any distribution to holders of
          Common Stock of securities or property (other than normal cash
          dividends or dividends payable in Common Stock), the Board shall make
          appropriate adjustments to (i) the number of shares of Common Stock
          covered by Awards in the form of Common Stock or units denominated in
          Common Stock, (ii) the exercise or other price in respect of such
          Awards, (iii) the appropriate Fair Market Value and other price
          determinations for such Awards, (iv) the number of shares of

                                       10
<PAGE>

          Common Stock covered by Director Options automatically granted
          pursuant to paragraph 9(a) hereof, (v) the number of shares of
          Director Restricted Stock automatically granted pursuant to paragraph
          9(b) hereof and (vi) the Stock Based Awards Limitations to give effect
          to such transaction shall each be proportionately adjusted by the
          Board to reflect such transaction; provided that such adjustments
          shall only be such as are necessary to maintain the proportionate
          interest of the holders of the Awards and preserve, without exceeding,
          the value of such Awards. In the event of a corporate merger,
          consolidation, acquisition of property or stock, separation,
          reorganization or liquidation, the Board shall be authorized to issue
          or assume Awards by means of substitution of new Awards, as
          appropriate, for previously issued Awards or an assumption of
          previously issued Awards as part of such adjustment.

16.  Restrictions. No Common Stock or other form of payment shall be issued with
     respect to any Award unless the Company shall be satisfied based on the
     advice of its counsel that such issuance will be in compliance with
     applicable federal and state securities laws. It is the intent of the
     Company that this Plan comply with Rule 16b-3 with respect to persons
     subject to Section 16 of the Exchange Act unless otherwise provided herein
     or in an Award Agreement, that any ambiguities or inconsistencies in the
     construction of this Plan be interpreted to give effect to such intention,
     and that if any provision of this Plan is found not to be in compliance
     with Rule 16b-3, such provision shall be null and void to the extent
     required to permit this Plan to comply with Rule 16b-3. Certificates
     evidencing shares of Common Stock certificates delivered under this Plan
     (to the extent that such shares are so evidenced) may be subject to such
     stop transfer orders and other restrictions as the Committee may deem
     advisable under the rules, regulations and other requirements of the
     Securities and Exchange Commission, any securities exchange or transaction
     reporting system upon which the Common Stock is then listed or to which it
     is admitted for quotation and any applicable federal or state securities
     law. The Committee may cause a legend or legends to be placed upon such
     certificates (if any) to make appropriate reference to such restrictions.

17.  Unfunded Plan. Insofar as it provides for Awards of cash, Common Stock or
     rights thereto, this Plan shall be unfunded. Although bookkeeping accounts
     may be established with respect to Participants who are entitled to cash,
     Common Stock or rights thereto under this Plan, any such accounts shall be
     used merely as a bookkeeping convenience. The Company shall not be required
     to segregate any assets that may at any time be represented by cash, Common
     Stock or rights thereto, nor shall this Plan be construed as providing for
     such segregation, nor shall the Company, the Board or the Committee be
     deemed to be a trustee of any cash, Common Stock or rights thereto to be
     granted under this Plan. Any liability or obligation of the Company to any
     Participant with respect to an Award of cash, Common Stock or rights
     thereto under this Plan shall be based solely upon any contractual
     obligations that may be created by this Plan and any Award Agreement, and
     no such liability or obligation of the Company shall be deemed to be
     secured by any pledge or other encumbrance on any property of the Company.
     Neither the Company nor the Board nor the Committee shall be required to
     give any security or bond for the performance of any obligation that may be
     created by this Plan.

18.  Governing Law. This Plan and all determinations made and actions taken
     pursuant hereto, to the extent not otherwise governed by mandatory
     provisions of the Code or the securities laws of the United States, shall
     be governed by and construed in accordance with the laws of the State of
     Delaware.

                                       11

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