Document:

EX-10.1 Associate Stock Option Plan - RSUs(ADS)

 

Exhibit 10.1

SATYAM COMPUTER SERVICES LIMITED

I FLOOR, MAYFAIR CENTRE, SP ROAD SECUNDERABAD, AP, INDIA — 500 003

Associate
Stock Option Plan — RSUs(ADS)
[the Plan or
ASOP — RSUs(ADS)]

 

	1.	 	Purposes of the ASOP — RSU (ADS):
	 
	 	 	1.1  In its continuing efforts to create participative environment contributing to the
growth of associates as part of the corporate growth plan, SATYAM COMPUTER SERVICES
LIMITED (SATYAM) formulated new Associate Stock Option Plan — RSU (ADS), (the Plan
or ASOP — RSUs(ADS)).
	 
	 	 	1.2  Among others, the Plan is primarily aimed at the following:

	 	•	 	To reward the associates for their performance and contribution to the
success and growth of SATYAM.
	 
	 	•	 	To motivate, retain, attract the best talent.
	 
	 	•	 	To provide an opportunity for the professional partners to become
financial partners.

	2.	 	Definitions: As used herein, the following definitions shall apply:

	 	(a)	 	“Administrator” means the Compensation Committee of
Directors as constituted by the Board of Directors or any of its
Committees responsible for the general administration of the Plan in
accordance with Section 4 hereof.
	 
	 	(b)	 	“ADR” shall mean an American Depositary Receipt
evidencing ADS(s) corresponding to Share(s).
	 
	 	(c)	 	“ADS” shall mean an American Depositary Share
corresponding to Share(s).
	 
	 	(d)	 	“Advisory Board” means group of Associates
consisting of the Managing Director / CEO, Head (AIC) — Human Resources,
‘Chief Financial Officer’ (CFO), and ‘the Company Secretary’. The
Compensation Committee may also nominate such other additional members,
if required at its sole discretion.
	 
	 	(e)	 	“Applicable Laws” means the legal requirements
relating to the Plan, including, without limitation, the tax, securities
or corporate laws of India, any stock exchange or quotation system on
which the ADSs are listed or quoted, or the applicable laws of any other
country or jurisdiction where RSU (ADSs) are, or will be, granted under
the Plan.
	 
	 	(f)	 	“Associate” means any person, including officers
and Directors, employed by SATYAM or any Parent or Subsidiary of SATYAM.
Neither service as a Director nor payment of a director’s fee by SATYAM
shall be sufficient to constitute “employment” by SATYAM.
	 
	 	(g)	 	“Board” means the Board of Directors of SATYAM.
	 
	 	(h)	 	“Code” means the United States Internal Revenue
Code of 1986, as amended, or any successor statute or statutes thereto.
Reference to any particular Code section shall include any successor
section.

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	 	(i)	 	“Committee” means a committee appointed by the
Board in accordance with Section 4 hereof.
	 
	 	(j)	 	“Director” means a member of the Board.
	 
	 	(k)	 	“Disability” means total and permanent disability
as defined in Section 22(e) (3) of the Code.
	 
	 	(l)	 	“Exchange Act” means the Securities Exchange Act of 1934, as
amended.
	 
	 	(m)	 	“Fair Market Value” means the value for one ADS, determined as
follows
	 
	 	 	 	(i)  the closing price of an ADS on the principal exchange on which such shares are then trading, if any (or as reported on any composite index
which includes such principal exchange), on the most recent trading day
prior to such determination date; or
	 
	 	 	 	(ii)  the ADS is not traded on an exchange, the mean between the closing
representative bid and asked prices for an ADS on the most recent trading
day prior to such determination date as reported by NYSE or, if NYSE is not
then in existence, by its successor quotation system; or
	 
	 	 	 	(iii)  if the ADS is not publicly traded on an exchange and not quoted on
NYSE or a successor quotation system, the fair market value of an ADS
determined in good faith by the Administrator in its sole discretion.
	 
	 	(n)	 	“Incentive RSU (ADS)” means an RSU (ADS) intended to qualify as an
incentive stock option within the meaning of Section 422 of the Code and
which is designated as an Incentive RSU (ADS) by the Administrator.
	 
	 	(o)	 	“Non-statutory RSU (ADS)” means an RSU (ADS) (or
portion thereof) that is not designated as an Incentive RSU (ADS) by the
Administrator, or which is designated as an Incentive RSU (ADS) by the
Administrator but fails to qualify as an incentive stock option within
the meaning of Section 422 of the Code.
	 
	 	(p)	 	“Optioned Stock” means the ADSs subject to an RSUs(ADS).
	 
	 	(q)	 	“Parent” means a “parent corporation,” whether now
or hereafter existing, as defined in Section 424(e) of the Code.
	 
	 	(r)	 	“Plan” means Associate Stock Option Plan — RSUs(ADS)
	 
	 	(s)	 	“RSU (ADS)” means an RSU (ADS) granted pursuant to
the Plan.
	 
	 	(t)	 	“RSU (ADS) Agreement” means a written or electronic
agreement between SATYAM and an RSU holder evidencing the terms and
conditions of an individual RSU (ADS) grant. The RSU (ADS) Agreement is
subject to the terms and conditions of the ASOP — RSUs (ADS).
	 
	 	(u)	 	“RSU holder” means the holder of an outstanding
RSU (ADS) granted under the Plan.
	 
	 	(v)	 	“Share” means an Equity Share of SATYAM, as
adjusted in accordance with Section 11 of the Plan.

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	 	(w)	 	“Subsidiary” means a “subsidiary corporation”
whether now or hereafter existing, as defined in Section 424(f) of the
Code.
	 
	 	(x)	 	“SATYAM” means Satyam Computer Services Limited, a
company organized under the laws of India.

	3.	 	Stock Subject to the Plan: Subject to the provisions of Section 11 of the
Plan, the maximum aggregate number of ordinary shares for ADSs which may be issued
upon exercise of RSU (ADS) and sold under the Plan shall be 13 million minus the
number of shares issued from time to time under the Associate Stock Option Plan —
RSUs (the Company’s domestic equity shares plan). The ADSs may be authorized but
unissued, or reacquired.
	 
	 	 	If an RSU (ADS) expires or becomes unexercisable without having been exercised in
full, the unpurchased ADSs which were subject thereto shall become available for
future grant or sale under the Plan (unless the Plan has been terminated). However,
ADSs that have actually been issued under the Plan upon exercise of an RSU (ADS),
shall not be returned to the Plan and shall not become available for future
distribution under the Plan.
	 
	4.	 	Administration of the Plan:
	 
	 	 	(a)  Administrator. The Plan shall be administered
by the Compensation Committee of Directors of the Company.
	 
	 	 	(b)  Delegation of authority for day-to-day
administration. To the extent permitted
by the applicable laws, the Compensation Committee may delegate to the Advisory Board
or one or more members of the Advisory Board, the day-to-day administration of the
Plan and / or any of the functions assigned to it in this Plan.
	 
	 	 	(c)  Powers of the Administrator. Subject to the provisions of the Plan and, in the
case of a Committee, the specific duties delegated by the Board to such Committee,
and subject to the approval of any relevant authorities, the Administrator shall have
the authority in its discretion:

	 	i.)	 	to determine Fair Market Value;
	 
	 	ii.)	 	to select the Associates to whom RSU (ADS) may from
time to time be granted hereunder;
	 
	 	iii.)	 	to determine the number of ADSs to be covered by
each such RSU (ADS) granted hereunder;
	 
	 	iv.)	 	to approve forms of agreement for use under the
Plan;
	 
	 	v.)	 	to determine the terms and conditions, not
inconsistent with the terms of the Plan, of any RSU (ADS) granted
hereunder including the price per RSU (ADS) to be paid by the Associate;
	 
	 	vi.)	 	to determine whether and under what circumstances
an RSU (ADS) may be settled in cash under subsection 9(h) instead of ADSs;
	 
	 	vii.)	 	to prescribe, amend and rescind rules and
regulations relating to the Plan, including rules and regulations
relating to sub-plans established for the purpose of qualifying for
preferred tax treatment under foreign tax laws;
	 
	 	viii.)	 	to construe and interpret the terms of the Plan and RSU (ADSs) granted
pursuant to the Plan.
	 
	 	ix.)	 	to make all other determinations deemed necessary
or advisable for administering the Plan including, determination of the
number of other RSUs / stock options in substitution of these RSUs(ADS),
subject to all applicable laws.
	 
	 	x.)	 	To allow Associates to satisfy withholding tax
obligations by electing to have the Company withhold from the ADSs [or
cash] to be issued upon exercise or vesting of an award that number of
ADSs [or cash] with a Fair Market Value equal to the amount 

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	 	 	 	required to
be withheld. Any elections to have ADSs or cash withheld for this purpose
will be made in a form determined by the Administrator.

	 	 	(d)  Effect of Administrator’s Decision. All decisions, determinations and
interpretations of the Administrator shall be final and binding on all RSU holders.

	5.	 	Eligibility:

	 	(a)	 	RSU (ADS)s may be granted to Associates.
	 
	 	(b)	 	Each RSU (ADS) may be designated in the RSU (ADS) Agreement as
either an Incentive RSU (ADS) or a Non-statutory RSU (ADS).
	 
	 	(c)	 	Neither the Plan nor any RSU (ADS) shall confer upon any RSU
holder any right with respect to continuing the RSU holder’s relationship as an
Associate with SATYAM, nor shall they interfere in any way with his or her right
or SATYAM’s right to terminate such relationship at any time, with or without
cause.

	6.	 	Term of Plan: The Plan shall become effective upon its adoption by the
Compensation Committee of Directors. It shall continue in effect until terminated
under Section 13 of the Plan.
	 
	7.	 	Term of RSU (ADS): The term of each RSU (ADS) shall be stated in the
RSU (ADS) Agreement; provided, however, that the term shall be not more than 5 years
from the date of vesting thereof.
	 
	8.	 	RSU (ADSs), Exercise Price and Consideration:

	 	(a)	 	Subject to the terms and conditions of the Plan, RSUs(ADS) may
be granted to Associates at any time and from time to time, as will be
determined by the Administrator in its sole discretion. The Administrator will
have complete discretion in determining the number of Restricted Stock Units
granted to each Associate.
	 
	 	(b)	 	The Administrator will establish the vesting criteria in its
discretion subject to the applicable laws. The vesting schedule applicable to
each grant shall be set forth in the RSU Agreement embodying such grant.
	 
	 	(c)	 	The per ADS exercise price for the ADSs to be issued upon exercise of an RSU
(ADS) shall not be less than the face value of the share.
	 
	 	(d)	 	The consideration to be paid for the ADSs to be issued upon
exercise of an RSU (ADS), including the method of payment, shall be determined
by the Administrator at the time of grant. The method of payment of
consideration may be by way of (i)
check, (ii) demand draft (iii) wire/electronic transfer (iv) consideration
received by SATYAM under a cashless exercise program implemented by SATYAM in
connection with the Plan or (v) any combination of the foregoing methods of
payment.

	9.	 	Exercise of RSU (ADS):

	 	(a)	 	Procedure for Exercise; Rights as a Shareholder: Any RSU (ADS)
granted hereunder shall be exercisable according to the terms hereof at such
times and under such conditions as determined by the Administrator and set forth
in the RSU (ADS) Agreement. An RSU (ADS) shall not be exercised for a fraction of
an ADS.

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	 	 	 	An RSU (ADS) shall be deemed exercised when SATYAM receives: (i) written or
electronic notice of exercise (in accordance with the RSU (ADS) Agreement) from the
person entitled to exercise the RSU (ADS), and (ii) full payment for the ADSs with
respect to which the RSU (ADS) is exercised. Full payment may consist of any
consideration and method of payment authorized by the Administrator and permitted
by the RSU (ADS) Agreement and the ASOP — RSUs(ADS) . ADSs issued upon exercise of
an RSU (ADS) shall be issued in the name of the RSU holder until the ADSs are
issued (as evidenced by the appropriate entry on the books of SATYAM or of a duly
authorized transfer agent of SATYAM), no right to vote or receive dividends or any
other rights as a shareholder shall exist with respect to the ADSs,
notwithstanding the exercise of the RSU (ADS). SATYAM shall issue (or cause to be
issued) such ADSs promptly after the RSU (ADS) is exercised. No adjustment will be
made for a dividend or other right for which the record date is prior to the date of the ADSs
are issued, except as provided in Section 11 of the Plan.

	 	(b)	 	Termination of Relationship as an Associate: If an RSU holder
ceases to be an Associate, such RSU holder may exercise his or her RSU (ADS)
within such period of time as is specified in the RSU (ADS) Agreement to the
extent that the RSU (ADS) is vested on the date of termination (but in no event
later than the expiration of the term of the RSU (ADS) as set forth in the
RSU (ADS) Agreement). In the absence of a specified time in the RSU (ADS)
Agreement, the RSU (ADS) shall remain exercisable for three (3) months following
the RSU holder’s termination. If, on the date of termination, the RSU holder is
not vested as to his or her entire RSU (ADS), the Shares underlying the ADSs
covered by the unvested portion of the RSU (ADS) shall again become available for
issuance under the ASOP — RSUs(ADS) . If, after termination, the RSU holder
does not exercise his or her RSU (ADS) within the time specified by the
Administrator, the RSU (ADS) shall terminate, and the Shares underlying the ADSs
covered by such RSU (ADS) shall again become available for issuance under the
ASOP — RSUs(ADS) .
	 
	 	(c)	 	In the event of superannuation/retirement: All the RSUs (ADS)
vested as on the date of retirement shall be exercised within 3 months from the
date of retirement and all the unvested RSUs (ADS) as on the date of retirement,
shall vest on the date of retirement or at the expiry of one year from the date
of grant whichever is later, and be available for exercise by the retired /
superannuated Associate, within 3 months thereof. In case of death of a
superannuated or retired Associate, the right of exercise of RSUs shall vest in
the nominees / legal heirs and the other terms and conditions shall remain the
same. If the RSU (ADS) is not so exercised within the time specified herein,
the RSU (ADS) shall terminate, and the ADSs covered by such RSU (ADS) shall again
become available for issuance under the Plan.
	 
	 	(d)	 	Death or Disability of RSU holder: If an RSU holder dies while an Associate,
or ceases to be an Associate as a result of the RSU holder’s disability, the
vesting and exercisability of the RSU (ADS) shall accelerate in full and the
RSU (ADS) may be exercised within such period of time as is specified in the
RSU (ADS) Agreement (but in no event later than the expiration of the term of such RSU (ADS) as
set forth in the RSU (ADS) Agreement) by the RSU holder or RSU holder’s estate or
by a person who acquires the right to exercise the RSU (ADS) by bequest or
inheritance. In the absence of a specified time in the RSU (ADS) Agreement, the
RSU (ADS) shall remain exercisable for twelve (12) months following the RSU
holder’s termination. If the RSU (ADS) is not so exercised within the time
specified herein, the RSU (ADS) shall terminate, and the ADSs covered by such
RSU (ADS) shall again become available for issuance under the
ASOP — RSU (ADS).
	 
	 	(e)	 	In the event of abandonment of service (absconding) by an
associate without the Company’s consent, all RSUs(ADS) including those, which are
vested but were not exercised at the time of abandonment of service shall stand
terminated with immediate effect.

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	 	 	 	The date of abandonment of an associate shall
be decided by the Company at its sole discretion which, decision shall be
binding on all concerned. At a later date, if the Company accepts resignation
by an Associate who had previously absconded from / abandoned the Company’s
service, any previous decision to terminate all vested and unvested
RSUs(ADS) of
such Associate as a consequence will remain unaffected and not confer any rights
under the ASOP — RSUs(ADS).

	 	(f)	 	In the event of Misconduct or breach of the policies of the company or
the terms of employment by the associate, during the term of his/her employment
and thereafter for a period of one year, the Advisory Board is authorized for
appropriate decision from time to time.
	 
	 	(g)	 	Transfer to subsidiaries: In the case of transfer of Associates to
subsidiaries, the vesting and exercise of RSU (ADSs) shall continue and all
other terms and conditions of this Plan shall remain the same.
	 
	 	(h)	 	Buyout Provisions: The Administrator may at any time offer to buy out for a
payment in cash or Shares, an RSU (ADS) previously granted, based on such terms
and conditions as the Administrator shall establish and communicate to the RSU
holder at the time that such offer is made.

	10.	 	Non-Transferability of RSUs(ADS): The RSUs(ADS) may not be sold, pledged,
assigned, hypothecated, transferred, or disposed of in any manner other than by will or
by the laws of descent or distribution and may be exercised, during the lifetime of the
RSU holder, only by the RSU holder.
	 
	11.	 	Adjustments upon Changes in Capitalization, Merger or Asset Sale:

	 	 	(a)  Changes in Capitalization. Subject to any required action by the shareholders of
SATYAM, the number of ADSs covered by each outstanding RSU (ADS), and the number of
ADSs which have been authorized for issuance under the Plan but as to which no
RSU (ADS)s have yet been granted or which have been returned to
the ASOP — RSUs(ADS)
upon cancellation or expiration of an RSU (ADS), as well as the price per ADS covered
by each such outstanding RSU (ADS), shall be proportionately adjusted for any increase
or decrease in the number of issued ADSs resulting from a stock split, reverse stock
split, Share-to-ADS ratio change, stock dividend, combination or reclassification of
the Shares, or any other increase or decrease in the number of issued Shares effected
without receipt of consideration by SATYAM. The conversion of any convertible
securities of SATYAM shall not be deemed to have been “effected without receipt of
consideration.” Such adjustment shall be made by the Board, whose determination in
that respect shall be final, binding and conclusive. Except as expressly provided
herein, no issuance by SATYAM of shares of stock of any class, or securities
convertible into ADSs of stock of any class, shall affect, and no adjustment by
reason thereof shall be made with respect to, the number or price of the ADSs subject
to an RSU (ADS).
	 
	 	 	(b)  Dissolution or Liquidation. In the event of the proposed dissolution or
liquidation of SATYAM, the Administrator shall notify each RSU holder as soon as
practicable prior to the effective date of such proposed transaction. The
Administrator in its discretion may provide for an RSU holder to have the right to
exercise his or her RSU (ADS) until fifteen (15) days prior to such transaction as to
all of the Optioned Stock covered thereby, including ADSs as to which the RSU (ADS)
would not otherwise be exercisable. In addition, the Administrator may provide that
any Company repurchase option applicable to any ADSs purchased upon exercise of an
RSU (ADS) shall lapse as to all such ADSs, provided the proposed dissolution or
liquidation takes place at the time and in the manner contemplated. To the extent it
has not previously vested, an RSU (ADS) will terminate immediately prior to the
consummation of such proposed action.

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	 	 	(c)  Merger or Asset Sale. In the event of a merger of SATYAM with or into another
corporation, or the sale of substantially all of the assets of SATYAM, each
outstanding RSU (ADS) shall be assumed or an equivalent RSU (ADS) substituted by the
successor corporation or a Parent or Subsidiary of the successor corporation. In the
event that the successor corporation refuses to assume or substitute for the
RSU (ADS), the RSU holder shall fully vest in and have the right to exercise the
RSU (ADS) as to all of the Optioned Stock, including ADSs as to which it would not
otherwise be vested or exercisable. If an RSU (ADS) becomes fully vested and
exercisable in lieu of assumption or substitution in the event of a merger or sale of
assets, the Administrator shall notify the RSU holder in writing or electronically
that the RSU (ADS) shall be fully exercisable for a period of fifteen (15) days from
the date of such notice, and the RSU (ADS) shall terminate upon the expiration of such
period. For the purposes of this paragraph, the RSU (ADS) shall be considered assumed
if, following the merger or sale of assets, the RSU (ADS) confers the right to
purchase or receive, for each ADS subject RSU (ADS) immediately prior to the merger
or sale of assets, the consideration (whether stock, cash, or other securities or
property) received in the merger or sale of assets by holders of ADSs for each ADS
held on the effective date of the transaction (and if the holders were offered a
choice of consideration, the type of consideration chosen by the holders of a
majority of the outstanding ADSs); provided, however, that if such consideration received in the merger or sale of assets is not solely equity shares
(or their equivalent) of the successor corporation or its Parent, the Administrator
may, with the consent of the successor corporation, provide for the consideration to
be received upon the exercise of the RSU (ADS), for each ADS subject to the RSU (ADS),
to be solely equity shares (or their equivalent) of the successor corporation or its
Parent equal in fair market value to the per ADS consideration received by holders of
ADS in the merger or sale of assets.

	12.	 	Time of Granting RSU (ADS): The date of grant of an RSU (ADS) shall, for
all purposes, be the date on which the Administrator makes the determination
granting such RSU (ADS), or such other date as is determined by the Administrator.
Notice of the determination shall be given to each Associate to whom an RSU (ADS) is
so granted within a reasonable time after the date of such grant.
	 
	13.	 	Amendment and Termination of the Plan:
	 
	 	 	(a)  Amendment and Termination. The Compensation Committee of Directors may at any
time amend, alter, suspend or terminate the Plan.
	 
	 	 	(b)  Shareholder Approval. The Board shall obtain shareholder approval of any
amendment of the Plan to the extent necessary and desirable to comply with Applicable
Laws.
	 
	 	 	(c)  Effect of Amendment or Termination. No amendment, alteration, suspension or
termination of the Plan shall impair the rights of any RSU holder, unless mutually
agreed otherwise between the RSU holder and the Administrator, which agreement must
be in writing and signed by the RSU holder and SATYAM. Termination of the Plan shall
not affect the Administrator’s ability to exercise the powers granted to it hereunder
with respect to RSU (ADSs) granted under the Plan prior to the date of such
termination.

	14.	 	Conditions Upon Issuance of ADSs:

	 	a)	 	Legal Compliance. ADSs shall not be issued pursuant to the
exercise of an RSU (ADS) unless the exercise of such RSU (ADS) and the issuance
and delivery of such ADSs shall comply with Applicable Laws and can be
further subject to the approval of counsel for SATYAM with respect to such
compliance.
	 
	 	b)	 	Investment Representations. As a condition to the exercise
of an RSU (ADS), the Administrator may require the person exercising such
RSU (ADS) to represent and warrant at the time of any such exercise that the
ADSs are being purchased only for investment and without any present
intention to sell or distribute such ADSs if, in the opinion of counsel for
SATYAM, such a representation is required.

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	15.	 	Inability to Obtain Authority: The inability of SATYAM to obtain
authority from any regulatory body having jurisdiction, which authority is deemed by
SATYAM’s counsel to be necessary to the lawful issuance and sale of any ADSs
hereunder, shall relieve SATYAM of any liability in respect of the failure to issue
or sell such Shares as to which such requisite authority shall not have been
obtained.
	 
	16.	 	Reservation of Shares: SATYAM, during the term of this
ASOP — RSUs(ADS) , shall
at all times reserve and keep available such number of Shares as shall be sufficient
to satisfy the requirements of the ASOP — RSUs(ADS).

Page 8 of 8EXHIBIT 10.4(b)

                        FORM OF INDEMNIFICATION AGREEMENT

     Volt  Information  Sciences,  Inc.  has  entered  into  an  Indemnification
Agreement  identical  to the form  attached  hereto  with each of the  following
directors and officers on the dates indicated:

                DATE                                        NAME
--------------------------------------------------------------------------------
January 9, 2007                             Jerome Shaw
--------------------------------------------------------------------------------
January 9, 2007                             Howard B. Weinreich
--------------------------------------------------------------------------------
January 9, 2007                             Thomas Daley
--------------------------------------------------------------------------------
January 9, 2007                             Daniel G. Hallihan
--------------------------------------------------------------------------------
January 9, 2007                             Jack Egan
--------------------------------------------------------------------------------
January 9, 2007                             Ludwig M. Guarino
--------------------------------------------------------------------------------
January 9, 2007                             Ronald M. Kochman
--------------------------------------------------------------------------------
January 9, 2007                             Louise Ross
--------------------------------------------------------------------------------

                            INDEMNIFICATION AGREEMENT

     This Indemnification Agreement (this "Agreement") is made as of the ___ day
of _________,  2007, by and between Volt Information Sciences,  Inc., a New York
corporation (the "Corporation"), and ______________________ (the "Indemnitee").

                                   WITNESSETH:

     WHEREAS, it is essential to the Corporation to retain and attract directors
and/or officers who are the most capable persons available;

     WHEREAS,  the  Indemnitee  is  serving or has agreed to serve as a director
and/or  officer of the  Corporation  and in such capacity  will render  valuable
services to the Corporation;

     WHEREAS,  the  Corporation  and the  Indemnitee  recognize the  substantial
increase in  litigation  and claims  being  asserted  against  directors  and/or
officers;

<PAGE>

     WHEREAS,  the  Corporation's   By-laws  (together  with  the  Corporation's
Restated Certificate of Incorporation, the "Constituent Documents") provide that
the  Corporation  will  indemnify  its  directors  and officers and will advance
expenses in connection  therewith,  and  Indemnitee's  willingness to serve as a
director and/or officer of the Corporation, or, at the Corporation's request, to
serve any Other  Enterprise (as defined in Paragraph  2(e)) in any capacity,  is
based in part on Indemnitee's reliance on such provisions;

     WHEREAS,  in recognition of Indemnitee's  need for  substantial  protection
against personal liability in order to encourage  Indemnitee's continued service
to the Corporation or, at the Corporation's request, any Other Enterprise, in an
effective manner, and Indemnitee's  reliance on the aforesaid  provisions of the
Constituent  Documents,  and to  provide  Indemnitee  with  express  contractual
indemnification  (regardless  of,  among  other  things,  any  amendment  to  or
revocation  of  such  provisions  or  any  change  in  the  composition  of  the
Corporation's  Board of Directors (the "Board") or any acquisition,  disposition
or  other  business  combination   transaction  involving  or  relating  to  the
Corporation),  the  Corporation  wishes to  provide  in this  Agreement  for the
indemnification  of Indemnifiable  Losses (as defined in Paragraph 2(d)) and the
advancement  of Expenses (as defined in  Paragraph  2(c)) to  Indemnitee  as set
forth in this  Agreement  and, to the extent  insurance is  maintained,  for the
continued  coverage  of  Indemnitee  under  the  Corporation's   directors'  and
officers' liability insurance policies.

     NOW, THEREFORE, in consideration of the Indemnitee's continued service as a
director  and/or officer of the  Corporation,  the Corporation and Indemnitee do
hereby agree as follows:

1.   Agreement  to Serve.  Indemnitee  agrees to continue to serve as a director
     and/or officer of the  Corporation for so long as he or she is duly elected
     or  appointed  or until such  earlier  time as he or she tenders his or her
     resignation in writing.  This provision is not a guarantee of employment or
     service.

2.   Certain  Definitions.  In addition to terms defined elsewhere  herein,  the
     following terms have the following meanings when used in this Agreement:

     (a)  The term  "Affiliate"  has the meaning  given to that term in Rule 405
          under the Securities Act of 1933, as amended; provided,  however, that
          for purposes of this Agreement the  Corporation  and its  subsidiaries
          will not be deemed to constitute Affiliates of any Indemnitee.

     (b)  The term "Claim" means any  threatened,  pending or completed  action,
          suit  or  proceeding   (whether   civil,   criminal,   administrative,
          arbitrative,  investigative or other), whether instituted by or in the
          right of the  Corporation  or any  other  Person,  or any  inquiry  or
          investigation,  whether  instituted  by the  Corporation  or any other
          Person in which  Indemnitee  is or was a party or is  threatened to be
          made a party or in good faith believes  might lead to the  institution
          of any such  action,  suit or  proceeding,  by reason of the fact that
          Indemnitee  is or was a  director,  officer,  employee or agent of the
          Corporation (or any

<PAGE>

          subsidiary of the Corporation), or is or was serving at the request of
          the Corporation as a director,  officer,  employee,  member,  manager,
          trustee,  agent or  fiduciary  (or in any other  capacity) of an Other
          Enterprise.

     (c)  The  term  "Expenses"  includes  all  attorneys'  and  experts'  fees,
          expenses  and charges and all other costs,  expenses and  obligations,
          paid or incurred  in  connection  with  investigating,  defending,  or
          participating  (as a party, a witness,  or otherwise) in (including on
          appeal),  or  preparing  to defend  or  participate  in,  any Claim or
          otherwise   establishing  a  right  to   indemnification   under  this
          Agreement.

     (d)  The term "Indemnifiable  Losses" means any and all Expenses,  damages,
          losses,  liabilities,  judgments, fines, penalties and amounts paid or
          payable in settlement  (including,  without limitation,  all interest,
          assessments and other charges paid or payable in connection with or in
          respect of any of the  foregoing,  including any excise taxes assessed
          on Indemnitee with respect to any employee benefit plan), relating to,
          resulting  from or  arising  out of any act or  failure  to act by the
          Indemnitee,  or his or her status as any person  referred to in clause
          (i) of  this  sentence,  (i) in his  or her  capacity  as a  director,
          officer, employee or agent of the Corporation or any of its Affiliates
          or as a director,  officer,  employee, member, manager, trustee, agent
          or fiduciary (or in any other capacity) of any Other  Enterprise as to
          which the  Indemnitee is or was serving at the  Corporation's  request
          and (ii) in respect of any business,  transaction or other activity of
          any entity referred to in clause (i) of this sentence.

     (e)  The  term  "Other  Enterprise"  shall  mean any  corporation,  limited
          liability company,  partnership,  joint venture, trust or other entity
          or  enterprise,  whether or not for profit,  or any  employee  benefit
          plan.

     (f)  The  term "to  serve  at the  Corporation's  request"  shall  mean any
          service as a director,  officer,  employee or agent of the Corporation
          which  imposes  duties on, or involves  services  by, such Person as a
          director,  officer, partner, member, manager, employee, trustee, agent
          or  fiduciary  (or in any other  capacity)  with  respect to any Other
          Enterprise.

     (g)  The term "Person" shall mean any  individual,  governmental  entity or
          Other Enterprise.

     (h)  The term "not opposed to the best interests of the Corporation"  shall
          include  action taken in good faith and in a manner the person  acting
          reasonably  believed to be in the interest of the  Corporation  or its
          shareholders  or the  participants  and  beneficiaries  of an employee
          benefit plan.

<PAGE>

3.   General  Indemnification.  The Corporation  shall  indemnify  Indemnitee in
     accordance  with the  provisions  of this  Paragraph 3 against all Expenses
     actually and  reasonably  incurred by  Indemnitee  in  connection  with the
     defense  or  settlement   of  any  Claim;   provided,   however,   that  no
     indemnification  for  Expenses  shall be made  under  this  Paragraph  3 in
     respect of any Claim if a judgment or other final  adjudication  adverse to
     Indemnitee establishes that (i) his or her acts were committed in bad faith
     or were the result of active and deliberate dishonesty and, in either case,
     were  material  to the cause of action  so  adjudicated,  or (ii) he or she
     personally gained in fact a financial profit or other advantage to which he
     or she was not  legally  entitled  unless and only to the  extent  that the
     court in which such Claim was brought,  or, if no action was  brought,  any
     court of competent  jurisdiction  determines upon application that, despite
     the  adjudication of liability but in view of all the  circumstances of the
     case,  Indemnitee  is fairly and  reasonably  entitled to indemnity for the
     Expenses and the amount of the  Indemnifiable  Losses which the court shall
     deem proper.

4.   Indemnification of Expenses of Successful Party.  Notwithstanding any other
     provision  of this  Agreement,  to the  extent  that  Indemnitee  has  been
     successful on the merits or otherwise,  in defense of any Claim, Indemnitee
     shall be indemnified  against all Expenses actually and reasonably incurred
     by Indemnitee in connection  therewith to the fullest  extent  permitted by
     New York Law.

5.   Advances  of  Expenses.   The  Indemnitee's  right  to  indemnification  in
     Paragraph 3 of this  Agreement  shall  include the right of  Indemnitee  to
     receive an advance from the Corporation of any Expenses. If so requested by
     Indemnitee, the Corporation will advance within 45 days of such request any
     and all  Expenses to  Indemnitee  which  Indemnitee  reasonably  determines
     likely to be payable;  provided,  however,  that  Indemnitee  will  return,
     without  interest,  any such  advance  which  remains  unspent at the final
     conclusion  of the  Claim to  which  the  advance  related;  and  provided,
     further,  that all amounts  advanced in respect of such  Expenses  shall be
     repaid  to  the  Corporation  by  Indemnitee  if  it  shall  ultimately  be
     determined  in a  final  judgment  or as  provided  in  Paragraph  7,  that
     Indemnitee  is not  entitled  to be  indemnified  for such  Expenses.  This
     undertaking  by  Indemnitee  is an  unlimited  general  undertaking  but no
     security for such undertaking will be required.

6.   Indemnification for Additional Expenses. Without limiting the generality or
     effect of the foregoing,  the Corporation will indemnify Indemnitee against
     and,  if  requested  by  Indemnitee,  will  within 45 days of such  request
     advance to Indemnitee,  any and all Expenses paid or incurred by Indemnitee
     in  connection  with any Claim  asserted or brought by  Indemnitee  for (i)
     indemnification  or advance  payment of Expenses by the  Corporation  under
     this Agreement or any other agreement or under

<PAGE>

     any provision of the Corporation's  Constituent  Documents now or hereafter
     in effect relating to Claims for Indemnifiable  Losses and/or (ii) recovery
     under any directors' and officers'  liability insurance policies maintained
     by  the  Corporation,   regardless  of  whether  Indemnitee  ultimately  is
     determined to be entitled to such indemnification,  advance expense payment
     or insurance recovery, as the case may be.

7.   Right of Indemnitee to  Indemnification  Upon  Application;  Procedure Upon
     Application.

     (a)  Subject to Paragraph 8 of this Agreement,  Indemnitee will be presumed
          to be entitled to indemnification under this Agreement.  The burden of
          proving  that   indemnification   or  advances  of  Expenses  are  not
          appropriate  shall,  to  the  extent  permitted  by  law,  be  on  the
          Corporation.

     (b)  Any indemnification under Paragraph 3 shall be paid by the Corporation
          no  later  than  45 days  after  receipt  of the  written  request  of
          Indemnitee,  unless a determination  is made within said 45-day period
          by (i) the Board of Directors by a majority  vote of directors who are
          not  and  were  not   parties   to  the  Claim  in  respect  of  which
          indemnification is being sought  ("Disinterested  Directors"),  (ii) a
          committee  of  the  Board  of  Directors  comprised  of  Disinterested
          Directors or (iii)  independent  legal  counsel in a written  opinion,
          that Indemnitee has not met the relevant standards for indemnification
          set forth in this Agreement.  In any such case, the Corporation  shall
          send prompt written notice to the Indemnitee of such determination. If
          requested by the Indemnitee in writing,  any such determination  shall
          be made by independent  legal counsel not  previously  employed by the
          Corporation or any Affiliate thereof.

     (c)  Indemnitee will be entitled to a hearing before the Board of Directors
          of Corporation or the Disinterested  Directors and/or any other person
          or persons making a determination and evaluation under Paragraph 7(b).
          Indemnitee  will be  entitled  to be  represented  by  counsel at such
          hearing.  The cost of any determination and evaluation under Paragraph
          7(b)  (including  attorneys'  fees  and  other  expenses  incurred  by
          Indemnitee in preparing for and attending the hearing  contemplated by
          Paragraph 7 and otherwise in  connection  with the  determination  and
          evaluation under Paragraph 7) will be borne by the Corporation.

     (d)  The right to indemnification or advancement of Expenses as provided by
          this  Agreement  shall be  enforceable  by  Indemnitee in any court of
          competent  jurisdiction.   Neither  the  failure  of  the  Corporation
          (including  its Board of Directors or  independent  legal  counsel) to
          have made a  determination  prior to the  commencement  of such action
          that  Indemnitee  has met the  applicable  standard  of conduct nor an
          actual  determination  by the  Corporation  (including  its  Board  of
          Directors or independent

<PAGE>

          legal  counsel) that  Indemnitee  has not met such standard shall be a
          defense to the action or create a presumption  that Indemnitee has not
          met the applicable standard of conduct. Indemnitee's Expenses actually
          and reasonably  incurred in connection with successfully  establishing
          his or her right to indemnification or advances,  in whole or in part,
          shall also be indemnified by the Corporation.

     (e)  With respect to any Claim for which indemnification is requested,  the
          Corporation will be entitled to participate therein at its own expense
          and, except as otherwise  provided  below,  the Corporation may assume
          the defense thereof,  with counsel  satisfactory to Indemnitee.  After
          notice from the  Corporation  to  Indemnitee of its election to assume
          the  defense  of a  Claim,  the  Corporation  will  not be  liable  to
          Indemnitee under this Agreement for any Expenses subsequently incurred
          by Indemnitee in connection  with the defense  thereof,  other than as
          provided  below.  The  Corporation  shall not  settle any Claim in any
          manner  which would  impose any penalty or  limitation  on  Indemnitee
          without Indemnitee's written consent.  Indemnitee shall have the right
          to  employ  counsel  in any Claim  but the fees and  expenses  of such
          counsel  incurred after notice from the  Corporation of its assumption
          of the  defense of the Claim  shall be at the  expense of  Indemnitee,
          unless (i) the employment of counsel by Indemnitee has been authorized
          by the Corporation,  (ii) Indemnitee  shall have reasonably  concluded
          that there may be a conflict of interest  between the  Corporation and
          Indemnitee  in the conduct of the defense of a Claim,  (iii) the named
          parties in any such Claim  (including any impleaded  parties)  include
          both the  Corporation and  Indemnitee,  and Indemnitee  shall conclude
          that there may be one or more legal  defenses  available to him or her
          that are  different  from or in  addition  to those  available  to the
          Corporation,  (iv) any such representation by the Corporation would be
          precluded under the applicable  standards of professional conduct then
          prevailing  or (v) the  Corporation  shall not in fact  have  employed
          counsel to assume the  defense of a Claim,  in each of which cases the
          fees and expenses of  Indemnitee  's counsel  shall be advanced by the
          Corporation.  Notwithstanding the foregoing, the Corporation shall not
          be entitled  to assume the  defense of any Claim  brought by or in the
          right of the Corporation.

     (f)  The Corporation shall pay to Indemnitee, at the time payments are made
          to Indemnitee for Expenses  pursuant to this Agreement,  an additional
          payment (the "Gross Up Amount")  such that after payment of all taxes,
          if any,  on  payments  so made,  including  the amount of the Gross Up
          Amount,  Indemnitee  retains  an  amount  equal  to the  amount  to be
          received.

<PAGE>

8.   Limitation on Indemnification.  No payment pursuant to this Agreement shall
     be made by the Corporation:

     (a)  to indemnify or advance funds to Indemnitee  for Expenses with respect
          to Claims  initiated or brought or joined in voluntarily by Indemnitee
          and not by way of defense,  except with  respect to Claims  brought to
          establish  or enforce a right to  indemnification  or  advancement  of
          Expenses  under this  Agreement or as  otherwise  required by New York
          law,  but such  indemnification  or  advancement  of  Expenses  may be
          provided by the Corporation in specific cases if the Board finds it to
          be appropriate;

     (b)  to indemnify  Indemnitee  for any Expenses  sustained in any Claim for
          which  payment  is  actually  made to  Indemnitee  under  a valid  and
          collectible  insurance policy,  except in respect of any excess beyond
          the amount of payment under such insurance;

     (c)  to indemnify Indemnitee for any Expenses sustained in any Claim for an
          accounting  of profits made from the purchase or sale by Indemnitee of
          securities of the  Corporation  pursuant to the  provisions of Section
          16(b) of the  Securities  Exchange Act of 1934, as amended,  the rules
          and  regulations  promulgated  thereunder  and  amendments  thereto or
          similar provisions of any federal, state, or local statutory law;

     (d)  to indemnify Indemnitee if his or her acts violated Section 719 of the
          New York Business Corporation law (the "NYBCL"); or

     (e)  if a court of  competent  jurisdiction  finally  determines  that such
          payment hereunder is unlawful.

9.   Indemnification   Hereunder  Not   Exclusive.   The   indemnification   and
     advancement  of  Expenses  provided by this  Agreement  shall not be deemed
     exclusive of any other rights to which Indemnitee may be entitled under the
     Constituent  Documents  of the  Corporation,  any  agreement,  any  vote of
     stockholders or Disinterested Directors, the NYBCL or otherwise, both as to
     action in his official  capacity and as to action in another capacity while
     holding such office (collectively, "Other Indemnity Provisions"); provided,
     however,  that (i) to the extent that  Indemnitee  otherwise would have any
     greater  right to  indemnification  under  any Other  Indemnity  Provision,
     Indemnitee  will be deemed to have such greater right hereunder and (ii) to
     the extent that any change is made to any Other  Indemnity  Provision which
     permits any greater right to indemnification  than that provided under this
     Agreement  as of the date  hereof,  Indemnitee  will be deemed to have such
     greater right hereunder.  The indemnification rights afforded to Indemnitee
     hereby are contract rights and the Corporation will not adopt any amendment
     to any of the  Constituent  Documents  the  effect  of  which  would  be to
     eliminate, deny,

<PAGE>

     diminish,    encumber   or   otherwise   affect   Indemnitee's   right   to
     indemnification under this Agreement or any Other Indemnity Provision.  The
     indemnification  provided by this Agreement shall continue as to Indemnitee
     even though he or she may have ceased to be a director,  officer,  employee
     or agent of the Corporation and shall inure to the benefit of the heirs and
     personal representatives of Indemnitee.

10.  Partial  Indemnification.  If Indemnitee is entitled under any provision of
     this Agreement to  indemnification  by the Corporation for a portion of the
     Expenses and/or  Indemnifiable  Losses actually and reasonably  incurred by
     him or her in any Claim but not, however, for the total amount thereof, the
     Corporation shall nevertheless indemnify Indemnitee for the portion of such
     Expenses  and/or  Indemnifiable  Losses to which  Indemnitee  is  entitled.
     Moreover,  notwithstanding  any other provision of this  Agreement,  to the
     extent that  Indemnitee  has been  successful on the merits or otherwise in
     defense  of  any  or  all  Claims  relating  in  whole  or  in  part  to an
     Indemnifiable Loss or in defense of any issue or matter therein, including,
     without  limitation,   dismissal  without  prejudice,  Indemnitee  will  be
     indemnified against all Expenses incurred in connection therewith.

11.  No Other  Presumption.  For purposes of this Agreement,  the termination of
     any Claim by judgment,  order,  settlement  (whether  with or without court
     approval)  or  conviction,  or  upon  a  plea  of  nolo  contendere  or its
     equivalent,  shall not, of itself, create a presumption that Indemnitee did
     not act in good faith in a manner which he or she reasonably believed to be
     in or not opposed to the best interests of the Corporation.

12.  Indemnification of Indemnitee's Estate. Notwithstanding any other provision
     of  this  Agreement,  and  regardless  of  whether  indemnification  of the
     Indemnitee would be permitted and/or required under this Agreement,  if the
     Indemnitee is deceased,  the Corporation  shall indemnify and hold harmless
     the Indemnitee's estate, spouse, heirs,  administrators,  personal or legal
     representatives,  executors and trustees  (collectively  the  "Indemnitee's
     Estate") against,  and the Corporation  shall assume,  any and all Expenses
     actually  incurred  by  the  Indemnitee  or  the  Indemnitee's   Estate  in
     connection  with the  investigation,  defense,  settlement or appeal of any
     Claim.   Indemnification  of  the  Indemnitee's  Estate  pursuant  to  this
     Paragraph  12 shall be  mandatory  and not  require  any  determination  or
     finding that the Indemnitee's  conduct  satisfied a particular  standard of
     conduct.

13.  Spousal Indemnification. The indemnifications,  benefits and obligations of
     this  Agreement  shall extend to the spouse of an  Indemnitee  in the event
     that the spouse is made a party to a Proceeding or collection, execution or
     enforcement efforts arising from a Claim.

14.  Limitation of Actions and Release of Claims. No proceeding shall be brought
     and  no  cause  of  action  shall  be  asserted  by or  on  behalf  of  the
     Corporation,  any  subsidiary of the  Corporation  or any Other  Enterprise
     against the  Indemnitee,  after the  expiration of one year from the act or
     omission of the Indemnitee upon which such proceeding is based; however, in
     a case where the Indemnitee fraudulently conceals the facts

<PAGE>

     underlying  such cause of action,  no  proceeding  shall be brought  and no
     cause of action shall be asserted after the expiration of one year from the
     earlier of (i) the date the Corporation,  any subsidiary of the Corporation
     or any  Other  Enterprise  discovers  such  facts,  or (ii)  the  date  the
     Corporation,  any  subsidiary of the  Corporation  or any Other  Enterprise
     could have discovered  such facts by the exercise of reasonable  diligence.
     Any claim or cause of  action of the  Corporation,  any  subsidiary  of the
     Corporation or any Other  Enterprise,  including claims predicated upon the
     act or  omission  of the  Indemnitee,  shall  be  extinguished  and  deemed
     released  unless  asserted by filing of a legal action  within such period.
     This  Paragraph 14 shall not apply to any cause of action which has accrued
     on the date hereof and of which the Indemnitee is aware on the date hereof,
     but as to which the  Corporation  has no actual  knowledge  apart  from the
     Indemnitee's knowledge.

15.  Maintenance of Liability Insurance.

     (a)  The  Corporation   hereby  covenants  and  agrees  that,  as  long  as
          Indemnitee  continues  to  serve  as a  director  or  officer  of  the
          Corporation and thereafter as long as Indemnitee may be subject to any
          Claim,  the  Corporation,  subject to  subparagraph  (c) below,  shall
          maintain in full force and effect  directors' and officers'  liability
          insurance ("D&O Insurance") in reasonable amounts from established and
          reputable insurers.

     (b)  In all D&O Insurance policies, Indemnitee shall be named as an insured
          in such a manner as to  provide  the  Indemnitee  the same  rights and
          benefits  as  are  accorded  to  the  most  favorably  insured  of the
          Corporation's directors and officers.

     (c)  Notwithstanding   the  foregoing,   the  Corporation   shall  have  no
          obligation  to obtain or maintain  D&O  Insurance  if the  Corporation
          determines  in  good  faith  that  such  insurance  is not  reasonably
          available,  the premium costs for such insurance are  disproportionate
          to the amount of  coverage  provided,  the  coverage  provided by such
          insurance is so limited by exclusions that it provides an insufficient
          benefit, or Indemnitee is covered by similar insurance maintained by a
          subsidiary of the Corporation.

16.  Subrogation.  In the event of payment under this Agreement, the Corporation
     will be  subrogated  to the extent of such  payment  to all of the  related
     rights of recovery of  Indemnitee  against  other  Persons,  including  any
     carrier of D&O Insurance  (other than personal  directors'  (or  officers')
     insurance  coverage,  if any,  which  is  maintained  by  Indemnitee).  The
     Indemnitee  will execute all papers  reasonably  required to evidence  such
     rights  (all of  Indemnitee's  reasonable  Expenses  related  thereto to be
     reimbursed   by  or,  at  the  option  of   Indemnitee,   advanced  by  the
     Corporation).

<PAGE>

17.  No Duplication of Payments.  The Corporation  will not be liable under this
     Agreement to make any payment in  connection  with any  Indemnifiable  Loss
     made against  Indemnitee to the extent  Indemnitee  has otherwise  actually
     received payment (net of Expenses  incurred in connection  therewith) under
     any  insurance  policy,  the  Constituent  Documents  and  Other  Indemnity
     Provisions or otherwise of the amounts  otherwise  indemnifiable  hereunder
     provided  that,  if  Indemnitee  for any reason is required to disgorge any
     payment actually received by him, the Corporation shall be obligated to pay
     such  amount to  Indemnitee  in  accordance  with the  other  terms of this
     Agreement (i.e., disregarding the terms of this Paragraph 17).

18.  Successors and Binding Agreement.

     (a)  The  Corporation  will  require  any  successor   (whether  direct  or
          indirect,  by  purchase,  merger,  consolidation,   reorganization  or
          otherwise)  to all or  substantially  all of the business or assets of
          the  Corporation (a  "Successor"),  by agreement in form and substance
          satisfactory to Indemnitee and his or her counsel, expressly to assume
          and agree to perform this Agreement in the same manner and to the same
          extent  the  Corporation  would  be  required  to  perform  if no such
          succession  had taken place.  This  Agreement will be binding upon and
          inure to the  benefit  of the  Corporation  and may be  assigned  to a
          Successor,  but will not otherwise be assignable or delegatable by the
          Corporation.

     (b)  This  Agreement will inure to the benefit of and be enforceable by the
          Indemnitee's  Estate and,  to the extent  provided  in  Paragraph  13,
          Indemnitee's spouse.

     (c)  This Agreement is personal in nature and neither of the parties hereto
          will,  without  the  consent of the  other,  assign or  delegate  this
          Agreement or any rights or obligations  hereunder  except as expressly
          provided  in  Paragraphs   18(a)  and  18(b).   Without  limiting  the
          generality or effect of the foregoing,  Indemnitee's  right to receive
          payments hereunder will not be assignable, whether by pledge, creation
          of a security  interest or otherwise,  other than by a transfer by the
          Indemnitee's will or by the laws of descent and distribution,  and, in
          the event of any  attempted  assignment  or transfer  contrary to this
          Paragraph  18(c),  the  Corporation  will have no liability to pay any
          amount so attempted to be assigned or transferred.

19.  Notices. For all purposes of this Agreement, all communications,  including
     without limitation notices,  consents,  requests or approvals,  required or
     permitted to be given hereunder will be in writing and will

<PAGE>

     be deemed to have been duly  given when hand  delivered  or  dispatched  by
     electronic facsimile  transmission (with receipt thereof orally confirmed),
     or five business days after having been mailed by United States  registered
     or  certified  mail,  return  receipt  requested,  postage  prepaid  or one
     business day after  having been sent for next-day  delivery by a nationally
     recognized overnight courier service,  addressed to the Corporation (to the
     attention of the Secretary of the Corporation) and to the Indemnitee at the
     addresses  shown on the signature page hereto,  or to such other address as
     any party may have  furnished  to the other in  writing  and in  accordance
     herewith,  except that notices of changes of address will be effective only
     upon receipt.

20.  Governing Law. The validity,  interpretation,  construction and performance
     of this Agreement will be governed by and construed in accordance  with the
     substantive  laws of the State of New York,  without  giving  effect to the
     principles  of  conflict  of laws of such  State.  Each party  consents  to
     non-exclusive  jurisdiction  of any New York  state or  federal  court  for
     purposes of any action, suit or proceeding hereunder,  waives any objection
     to venue  therein or any defense  based on forum non  conveniens or similar
     theories  and agrees  that  service of process  may be effected in any such
     action, suit or proceeding by notice given in accordance with Paragraph 19.

21.  Validity.  If any  provision of this  Agreement or the  application  of any
     provision   hereof  to  any  person  or   circumstance   is  held  invalid,
     unenforceable or otherwise illegal by any court of competent  jurisdiction,
     the remainder of this  Agreement and the  application  of such provision to
     any other person or circumstance will not be affected, and the provision so
     held to be invalid,  unenforceable or otherwise illegal will be reformed to
     the extent, and only to the extent, necessary to make it enforceable, valid
     or legal.

22.  Miscellaneous.  No provision of this  Agreement may be waived,  modified or
     discharged  unless such waiver,  modification  or discharge is agreed to in
     writing signed by Indemnitee and the Corporation. No waiver by either party
     hereto at any time of any breach by the other  party  hereto or  compliance
     with any  condition or provision of this  Agreement to be performed by such
     other party will be deemed a waiver of similar or dissimilar  provisions or
     conditions at the same or at any prior or subsequent time. No agreements or
     representations,  oral or  otherwise,  expressed or implied with respect to
     the subject  matter  hereof have been made by either party that are not set
     forth  expressly  in  this  Agreement.  References  to  Paragraphs  are  to
     Paragraphs of this Agreement.

23.  Counterparts.  This Agreement may be executed in one or more  counterparts,
     each of which will be deemed to be an  original  but all of which  together
     will constitute one and the same agreement.

24.  Amendments.   No   amendment,   waiver,   modification,   termination,   or
     cancellation of this Agreement shall be effective  unless in writing signed
     by both parties hereto.

<PAGE>

25.  Cooperation  and Interest.  The  Corporation  shall cooperate in good faith
     with the  Indemnitee and use its best efforts to ensure that the Indemnitee
     is  indemnified  and/or  reimbursed  for  liabilities   described  in  this
     Agreement to the fullest extent permitted by law.

26.  Legal  Fees and  Expenses.  It is the  intent of the  Corporation  that the
     Indemnitee  not be  required  to incur  legal  fees  and or other  Expenses
     associated with the interpretation,  enforcement or defense of Indemnitee's
     rights under this Agreement by litigation or otherwise because the cost and
     expense thereof would  substantially  detract from the benefits intended to
     be extended to the Indemnitee hereunder.  Accordingly, without limiting the
     generality or effect of any other provision hereof, (i) if it should appear
     to the Indemnitee that the Corporation has failed to comply with any of its
     obligations under this Agreement or that an action should be brought in the
     nature of a  declaratory  judgment to  determine  the rights of the parties
     hereto, or (ii) in the event that the Corporation or any other person takes
     or  threatens  to  take  any  action  to  declare  this  Agreement  void or
     unenforceable,  or institutes  any litigation or other action or proceeding
     designed to deny, or to recover from, the Indemnitee the benefits  provided
     or intended to be provided to the  Indemnitee  hereunder,  the  Corporation
     irrevocably  authorizes the Indemnitee  from time to time to retain counsel
     of  Indemnitee's  choice,  at the expense of the  Corporation  as hereafter
     provided,  to advise and  represent the  Indemnitee in connection  with any
     such interpretation,  enforcement or defense,  including without limitation
     the initiation or defense of any litigation or other legal action,  whether
     by or against the  Corporation  or any director,  officer,  stockholder  or
     other person affiliated with the Corporation.  Notwithstanding any existing
     or prior  attorney-client  relationship  between the  Corporation  and such
     counsel, the Corporation  irrevocably consents to the Indemnitee's entering
     into  an  attorney-client  relationship  with  such  counsel,  and in  that
     connection the  Corporation  and the  Indemnitee  agree that a confidential
     relationship  shall exist between the Indemnitee and such counsel.  Without
     respect  to  whether  the  Indemnitee  prevails,  in whole  or in part,  in
     connection  with  any of the  foregoing,  the  Corporation  will pay and be
     solely financially  responsible for any and all attorneys' and related fees
     and  expenses  incurred by the  Indemnitee  in  connection  with any of the
     foregoing.

27.  Certain  Interpretive  Matters.  No  provision  of this  Agreement  will be
     interpreted in favor of, or against, either of the parties hereto by reason
     of the extent to which either such party or its counsel participated in the
     drafting  thereof or by reason of the extent to which any such provision is
     inconsistent with any prior draft hereof or thereof

28.  Effective  Date.  The  provisions  of this  Agreement  shall cover  Claims,
     whether now pending or hereafter  commenced,  and shall be  retroactive  to
     cover acts or omissions or alleged acts or omissions which  heretofore have
     taken place.

<PAGE>

     IN WITNESS WHEREOF,  Indemnitee has executed and the Corporation has caused
its duly  authorized  representative  to execute  this  Agreement as of the date
first above written.

Attest:                                     Volt Information Sciences, Inc.

                                    By:
----------------------------           -----------------------------------------
Secretary                                         Name:
                                                  Title:

                                    --------------------------------------------
                                                  Indemnitee

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