Document:

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                                                                   Exhibit 10.32

                        OMNIBUS AGREEMENT AND CONSENT OF
                            DIRECTORS OF XYGENT, INC.

     This Omnibus Agreement (the "Agreement") is made as of this 19th day of
April, 2002 by and among Xygent Inc. (the "Company"), BNS Co. ("BNS"), Hexagon
Holdings, Inc. ("Hexagon") and Brown & Sharpe, Inc. ("Brown & Sharpe") and
Hexagon AB.

     WHEREAS the parties are party to various agreements relating to the Company
(although not all parties hereto are party to each agreement); and

     WHEREAS the parties have come to a certain understandings relating to
several issues relating to the Company and wish for these understandings to be
reflected in the various existing agreements among the various parties and in
the actions of their representatives as directors of the Company.

     NOW THEREFORE, the parties agree as follows:

     1.   Debt Conversion Shares to be Issued to BNS. With respect to the
issuance of shares of common stock ("Common Stock") of the Company to BNS under
the 2002 Common Stock Purchase Agreement between BNS and the Company (the
"2002 SPA") in connection with the repayment of $1,500,000 of intercompany debt
owed by the Company to BNS, the parties agree that, notwithstanding the
provisions of the 2002 SPA (or any other agreement or action by them or their
representatives as directors of the Company), BNS shall be issued under the 2002
SPA such whole number (rounded) of authorized but unissued shares of Common
Stock as is calculated by dividing $1,500,000 by $113.58, resulting in the
issuance of 13,206 shares to BNS (the sale and issuance of such shares to BNS by
Xygent and the 2002 SPA, the "New Debt Conversion Transaction").

          1.1  The 2002 SPA is hereby amended to give effect in all respects to
     the New Debt Conversion Transaction.

          1.2  The Consent of Hexagon and Brown & Sharpe, dated April 8, 2002,
     relating to 2002 SPA is hereby amended to consent in all respects to the
     New Debt Conversion.

          1.3  Hexagon and Brown & Sharpe hereby waive any preemptive rights
     that they may have under the Stockholders' Agreement (the "Stockholders'
     Agreement"), dated as of April 27, 2001, by and among Xygent, BNS, Brown &
     Sharpe and Hexagon (pursuant to that certain Instrument of Accession, dated
     February 20, 2002) relating to the New Debt Conversion Transaction.

     2.   Shares to be Issued to Hexagon Holdings at the Additional Closing. In
connection with the sale of Common Stock to Hexagon under the Stock Purchase
Agreement (the "2001 SPA"), dated as of April 27, 2001, by and among BNS, Xygent
and Hexagon (as assignee of Brown & Sharpe pursuant to that certain Assignment
and Assumption Agreement, dated as of January 2002, between Hexagon and Brown &
Sharpe), notwithstanding anything to the contrary in Section 1.02 of the 2001
SPA, the parties agree that at the next Additional

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Closing Date (as defined in the 2001 SPA), which will occur on or about April
29, 2002, the number of "Additional Shares" (as defined) of Common Stock of the
Company to be purchased by Hexagon for $1,500,000 ($113.58 per share) shall be
13,206 shares, namely the same number of shares as is issued to BNS for
$1,500,000 under Section 1 above (such purchase and sale at the April 29, 2002
Additional Closing, the "New Closing Amount").

          2.1  The parties agree that the 2001 SPA is hereby amended to give
     effect in all respects to the New Closing Amount; it being understood that
     the New Closing Amount shall only apply with respect to the April 29, 2002
     Additional Closing.

     3.   Miscellaneous. This Agreement will be effective upon the signatures of
the parties set forth below and the approval of the Board of Directors of Xygent
by way of the Written Consent of Directors, attached as Annex A to this
Agreement. This Agreement will be governed by the internal laws of the State of
Rhode Island (without giving effect to its conflicts of laws). This Agreement
may be executed in counterparts. Headings are included only for the convenience
of the parties.

                           [signature page to follow]

                                       -2-

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     IN WITNESS WHEREOF, the undersigned parties have caused this instrument to
be executed by their respective officers thereunto duly authorized, all as of
the date first set forth above.

XYGENT INC.                                 BNS Co.

By: /s/ Andrew C. Genor                     By: /s/ Andrew C. Genor
    -------------------                         -----------------------
Name: Andrew C. Genor                       Name: Andrew C. Genor
Title: President and CEO                    Title: President and CEO

HEXAGON HOLDINGS,  INC.                     BROWN & SHARPE, INC.

By: /s/ Ola Rollen                          By: /s/ Jack Beagley
    -------------------                         -----------------------
Name: Ola Rollen                            Name: Jack Beagley
Title: Chairman                             Title: President and CEO

HEXAGON AB (signing as guarantor of
Hexagon Holdings, Inc. pursuant to the
Acquisition Agreement dated November 16,
2000 between Hexagon AB and BNS Co.,
then named "Brown & Sharpe Manufacturing
Company")

By: /s/ Ola Rollen
    --------------------
Name: Ola Rollen
Title: CEO

                         [Directors' consent to follow]

                                       -3-

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                                                                         Annex A

                   Votes of Board of Directors of Xygent Inc.

     The undersigned, being all of the directors of Xygent Inc. ("Xygent"),
having been elected by written consent of all of the stockholders of Xygent, do
hereby adopt the following votes, representing corporate action, which shall
have the same effect as votes duly adopted at a meeting of the Board of
Directors:

VOTED:    That the form, terms and provisions of the Omnibus Agreement (the
          "Omnibus Agreement") between Xygent, BNS Co., Hexagon Holdings, Inc.
          and Brown & Sharpe, Inc. and Hexagon AB and the transactions
          contemplated thereby are hereby approved in all respects.

VOTED:    That upon execution and delivery of the Omnibus Agreement by an
          authorized officer of this Corporation and upon receipt of
          consideration payable thereunder for any shares of the Common Stock of
          this Corporation to be sold thereunder, that the officers of this
          Corporation are authorized and directed to issue and deliver to such
          person or entity purchasing such shares a stock certificate for such
          shares, which shares shall be fully paid and nonassessable, validly
          outstanding shares, and that in addition, upon issuance of such shares
          as are issued out of the authorized but unissued shares of the
          Company, an amount equal to their aggregate par value shall be
          credited to capital and the remainder of the consideration paid for
          such shares shall be credited to surplus.

VOTED:    That the proper officers are hereby authorized to execute all
          documents and take all action from time to time necessary or desirable
          to give effect to the foregoing votes.

VOTED:    That this Board recognizes that the transactions contemplated by the
          Omnibus Agreement had been previously approved by the Board but under
          different terms and that these Votes shall supersede such prior votes,
          to the extent that these votes are inconsistent with such prior votes.

             [The remainder of the page is intentionally left blank]

                                       A-1

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     In WITNESS WHEREOF the directors have executed this consent (in
counterparts) as of this 19/th/ day of April, 2002.

/s/ Andrew C. Genor
----------------------------
Andrew C. Genor

/s/ J. Robert Held
----------------------------
J. Robert Held

/s/ Howard K. Fuguet
----------------------------
Howard K. Fuguet

/s/ Ola Rollen
----------------------------
Ola Rollen

/s/ Gert Viebke
----------------------------
Gert Viebke

                                       A-2<PAGE>
                                                                   Exhibit 10.33

                                  XYGENT, INC.
                           2002 EQUITY INCENTIVE PLAN

1.  PURPOSE

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

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

2.  ADMINISTRATION

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

     If the Board so determines, it may administer the Plan directly rather than
through a committee. In such event, all references to the Committee in this Plan
(other than the committee composition and governance provisions of the
immediately preceding paragraph) shall be deemed to refer to the Board.

     The Committee will have authority, not inconsistent with the express
provisions of the Plan and in addition to other authority granted under the
Plan, to (a) grant Awards at such time or times as it may choose; (b) determine
the size of each Award, including the number of shares of Stock subject to the
Award; (c) determine the type or types of each Award; (d) determine the terms
and conditions of each Award, including provisions for accelerated vesting upon
the achievement of Company stock price levels; (e) waive compliance by a holder
of an Award with any obligations to be performed by such

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holder under the Award and waive any terms or conditions of an Award; (f)
subject to the provisions of Section 6.1(b), amend or cancel an existing Award
in whole or in part (and if an award is canceled, grant another Award in its
place on such terms and conditions as the Committee shall specify), except that
the Committee may not, without the consent of the holder of an Award, take any
action under this clause with respect to such Award if such action would
adversely affect the rights of such holder; (g) prescribe the form or forms of
any instruments to be used under the Plan, including any written notices and
elections required of Participants (as defined below), and change such forms
from time to time; (h) adopt, amend and rescind rules and regulations for the
administration of the Plan; and (i) interpret the Plan and decide any questions
and settle all controversies and disputes that may arise in connection with the
Plan. Such determinations and actions of the Committee, and all other
determinations and actions of the Committee made or taken under authority
granted by any provision of the Plan, will be conclusive and will bind all
parties. Nothing in this paragraph shall be construed as limiting the power of
the Committee to make adjustments under Section 7.3 or Section 8.6. In the case
of any Award intended to be eligible for the performance-based compensation
exception under Section 162(m), the Committee shall exercise its discretion
consistent with qualifying the Award for such exception.

3.  EFFECTIVE DATE AND TERM OF PLAN

     The Plan will become effective on the date on which it is approved by the
stockholders of the Company. Awards may be made prior to such stockholder
approval if made subject thereto. No Award may be granted under the Plan after
April 8, 2012 (the 10th anniversary of the day before Board approval), but
Awards previously granted may extend beyond that date.

4.  SHARES SUBJECT TO THE PLAN

     (a) Number of Shares. Subject to adjustment as provided in Section 8.6, the
aggregate number of shares of Stock that may be delivered under the Plan will be
30,300. If any Award requiring exercise by the Participant for delivery of Stock
terminates without having been exercised in full, or if any Award payable in
Stock or cash is satisfied in cash rather than Stock, the number of shares of
Stock as to which such Award was not exercised or for which cash was substituted
will be available for future grants. Shares of Restricted Stock that have been
forfeited in accordance with the terms of the applicable Award and shares held
back, in satisfaction of the exercise price or tax withholding requirements,
from shares that would otherwise have been delivered pursuant to an Award shall
also be available for future grants. The number of shares of Stock delivered
under an Award shall be determined net of any previously acquired Shares
tendered by the Participant in payment of the exercise price or of withholding
taxes.

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

                                       -2-

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5.  ELIGIBILITY AND PARTICIPATION

     Each key employee of the Company or any of its subsidiaries (an "Employee")
and each other individual or entity (other than employees of the Company or any
of its subsidiaries, but including without limitation directors of the Company
or a subsidiary of the Company) who, in the opinion of the Committee, is in a
position to make a significant contribution to the success of the Company or its
subsidiaries will be eligible to receive Awards under the Plan (each such
Employee, other individual or entity receiving an Award, "a Participant").
Participants shall also include individuals who have accepted an offer of
employment from the Company and who the Company reasonably believes will be key
employees upon commencing employment with the Company (a "New Hire"). For
purposes of the Plan, a "subsidiary" is any corporation (other than the employer
corporation) that would be treated as a subsidiary of the Company for purposes
of Section 424(f) of the Code. Eligibility for ISOs is further limited to those
individuals whose employment status would qualify them for the tax treatment
described in Sections 421 and 422 of the Code.

6.  TYPES OF AWARDS

6.1  Options.

     (a) Nature of Options. An option ("Option") is an Award giving the
recipient the right on exercise thereof to purchase Stock.

     Both "incentive stock options", as defined in Section 422(b) of the Code
(any Option intended to qualify as an incentive stock option being hereinafter
referred to as an "ISO"), and Options that are not ISOs, may be granted under
the Plan. ISOs shall be awarded only to Employees. An Option awarded under the
Plan shall be a non-ISO unless it is expressly designated as an ISO at time of
grant. Once an ISO has been granted, no action by the Committee that would cause
the Option to lose its status under the Code as an incentive stock option will
be effective without consent of the Option holder.

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

          (1) The exercise price of an Option intended to be an ISO shall not be
     less than 100% of the fair market value of the Stock subject to the Option,
     determined as of the effective date of grant of the Option.

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

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

     (d) Exercise of Options; Vesting. An Option will become exercisable at such
time or times, and on such conditions, as the Committee may specify. The
Committee may at any time and from time to time accelerate the exercisability of
an Option. Any exercise of an Option must be in writing, signed by the proper
person and delivered or mailed to the Company, accompanied by (1) any documents

                                       -3-

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required by the Committee and (2) payment in full in accordance with paragraph
(e) below for the number of shares for which the Option is exercised. If desired
the Committee may provide for vesting prior to the date the Option becomes
exercisable.

     (e) Payment for Stock. Stock purchased on exercise of an Option must be
paid for as follows: (1) in cash or by check (acceptable to the Company in
accordance with guidelines established for this purpose), bank draft or money
order payable to the order of the Company or (2) if so permitted by the
instrument evidencing his Option (or in the case of an Option which is not an
ISO, by the Committee at or after the grant of the Option), (i) through the
delivery of shares of Stock which have been held for at least six months (unless
the Committee approves a shorter period) and which have a fair market value on
the last business day preceding the date of exercise equal to the exercise
price, (ii) by delivery of a promissory note of the Participant to the Company
containing such terms as are specified by the Committee (provided that if the
Stock delivered upon exercise of the Option is an original issue of authorized
but unissued Stock, at least so much of the exercise price as represents the par
value of the Stock shall be paid in cash), (iii) during any period in which the
Stock is publicly traded, by use of a broker-assisted exercises program
acceptable to the Company, or (iv) by any combination of the foregoing
permissible forms of payment.

6.2  Stock Appreciation Rights.

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

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

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

          (2) Exercise of Independent Stock Appreciation Rights. A Stock
     Appreciation Right not granted in tandem with an Option will become
     exercisable at such time or times, and on such conditions, as the Committee
     may specify. Except as otherwise determined by the Committee, any period
     during which a Participant who is an Employee is on an unpaid leave of

                                       -4-

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     absence (or other unpaid absence) from the Company shall toll the period of
     time over which a Stock Appreciation Right becomes exercisable. The
     Committee may at any time accelerate the time at which all or any part of
     the Right may be exercised.

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

6.3  Restricted and Unrestricted Stock.

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

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

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

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

     (d) Removal of Restrictions. Except as otherwise provided in this Section
6.3, a share of Restricted Stock covered by a Restricted Stock grant shall
become free from restrictions under the Plan upon completion of the Restricted
Period, including the passage of any applicable period of time and satisfaction
of any conditions to vesting. The Committee shall have the right at any time, in
its sole discretion, immediately to waive or accelerate all or any part of the
restrictions and conditions with regard to all or any part of the shares held by
any Participant.

     (e) Notice of Election. Any Participant making an election under Section
83(b) of the Code with respect to Restricted Stock must give a copy of the
election to the Company within ten days after filing with the Internal Revenue
Service.

                                       -5-

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

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

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

6.4  Deferred Stock.

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

6.5  Performance Awards.

     The Committee may, at the time an Award described in Sections 6.1, 6.2,
6.3, 6.4 or 6.7 is granted, impose the additional condition that performance
goals must be met prior to the Participant's realization of any vesting, payment
or benefit under the Award. In addition, the Committee may make awards entitling
the Participant to receive an amount in cash upon attainment of specified
performance goals (a "Cash Incentive"). Any Award or Cash Incentive made subject
to performance goals as described in the preceding two sentences shall be a
"Performance Award." The Committee will determine the performance measures, the
period or periods during which performance is to be measured, and all other
terms and conditions applicable to the Performance Award. The performance
measures to which a Performance Award is subject may be related to personal
performance, corporate performance, departmental performance, or any other
category of performance established by the Committee, including the achievement
of specified Company stock price levels.

6.6  Loans and Supplemental Grants.

     (a) Loans. The Company may make a loan to a Participant, either at the time
of or after the grant to him or her of any Award. Such a loan may be made in
connection with either the purchase of Stock under the Award or the payment of
any federal, state, and local income tax in respect of income recognized as a
result of the Award. The Committee will have full authority to decide whether to
make such a loan and to determine the amount, terms and conditions of the loan,
including the interest rate (which may be zero), whether the loan is to be
secured or unsecured or with or without recourse against the borrower, the terms
on which the loan is to be repaid and the conditions, if any, under which it may
be forgiven. However, no loan may have a term (including extensions) exceeding
ten years in duration.

                                       -6-

<PAGE>

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

6.7  Other Stock-Based Awards.

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

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

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

7.  EVENTS AFFECTING OUTSTANDING AWARDS

7.1  Death or Disability.

       Except as the Committee may otherwise determine, if a Participant dies or
becomes permanently and totally disabled (as determined by the Committee), the
following will apply:

       (a) All Options and Stock Appreciation Rights held by the Participant, or
by a permitted transferee of the Participant, immediately prior to death or such
permanent and total disability, to the extent then exercisable, may be exercised
(i) in the case of an Option or Stock Appreciation Right then held by the
Participant, by the Participant's executor or administrator or the person or
persons to whom the Option or Right is transferred by will or the applicable
laws of descent and distribution or the Participant's guardian, or (ii) in the
case of an Option or Stock Appreciation Right then held by a permitted
transferee of the Participant, by such permitted transferee, in either case at
any time within the one year period ending with the first anniversary of the
Participant's death or permanent and total disability, as the case may be (or
such shorter or longer period as the Committee may determine), and

                                       -7-

<PAGE>

shall thereupon terminate. If such a Participant becomes permanently and totally
disabled (as determined by the Committee) while holding an Option or Stock
Appreciation Right and thereafter dies while the Option or Stock Appreciation
Right is still exercisable, the Option or Stock Appreciation Right will be
exercisable for one year from the date of death. In no event, however, shall an
Option or Stock Appreciation Right remain exercisable beyond the latest date on
which it could have been exercised without regard to this Section 7. All Options
and Stock Appreciation Rights held by a Participant, or by a permitted
transferee of a Participant, immediately prior to the Participant's death or
permanent and total disability that are not then exercisable shall accelerate
and become vested at such death or permanent and total disability.

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

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

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

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

       (a) All Options and Stock Appreciation Rights held by the Participant, or
by the Participant's transferee, that were not exercisable immediately prior to
the Status Change shall terminate at the time of the Status Change. Any Options
or Rights that were exercisable immediately prior to the Status Change will
continue to be exercisable for a period of three months (or one year in the case
of retirement at or after age 60 with the consent of the Company), and shall
thereupon terminate, unless the Award provides by its terms for immediate
termination in the event of a Status Change or unless the Status Change results
from a discharge for cause which in the opinion of the Committee casts such
discredit on the Participant as to justify immediate termination of the Award.
In no event, however, shall an Option or Stock Appreciation Right remain
exercisable beyond the latest date on which it could have been exercised without
regard to this Section 7. For purposes of this paragraph, in the case of a
Participant who is an Employee, a Status Change shall not be deemed to have
resulted by reason of (i) a sick leave or other bona fide leave of absence
approved for purposes of the Plan by the Committee, so long as the Employee's
right to reemployment is guaranteed either by statute or by contract, or (ii) a
transfer of employment between the Company and a subsidiary or between
subsidiaries, or to the employment of a corporation (or a parent or subsidiary
corporation of such corporation) issuing or assuming an option in a transaction
to which Section 424(a) of the Code applies. A Status Change will be deemed to
have occurred, in the case of an employee Participant, upon termination of the

                                       -8-

<PAGE>

Participant's employment with the Company and its Subsidiaries (whether or not
the Participant continues in the service of the Company or its Subsidiaries in
some capacity other than that of an employee of the Company or its Subsidiaries)
and in the case of any other Participant, when the service relationship in
respect of which the Award was granted terminates (whether or not the
Participant continues in the service of the Company or its Subsidiaries in some
other capacity).

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

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

7.3  Certain Corporation Transactions.

       (a) In the event of a consolidation or merger in which the Company is not
the surviving corporation or which results in the acquisition of substantially
all the Company's outstanding Stock by a single person or entity or by a group
of persons and/or entities acting in concert, or in the event of the complete
liquidation of the Company or the sale or transfer of substantially all of the
Company's assets (a "Covered Transaction"), all outstanding Options will
terminate as of the effective date of the Covered Transaction unless assumed in
accordance with paragraph (d) below.

       (b) Subject to paragraphs (c) and (d) below, the Committee may, in its
sole discretion, prior to the effective date of the Covered Transaction, (1)
accelerate the exercisability of any outstanding Option or SAR, in whole or in
part, (2) remove the restrictions from each outstanding share of Restricted
Stock, (3) cause the Company to make any payment and provide any benefit under
each outstanding Deferred Stock Award, Performance Award, and Supplemental Grant
which would have been made or provided with the passage of time had the
transaction not occurred and the Participant remained an employee, or (4)
forgive all or any portion of the principal of or interest on a loan.

       (c) If an outstanding Award is subject to performance or other conditions
(other than conditions relating to the mere passage of time and continued
employment) which will not have been satisfied at the time of the Covered
Transaction, the Committee may, in its sole discretion, remove such conditions.
If it does not do so however, such Award will terminate, because the conditions
have not been satisfied, immediately prior to consummation of the Covered
Transaction notwithstanding paragraphs (a) and (b) above.

       (d) With respect to an outstanding Award held by a Participant who,
following the Covered Transaction, will be employed by or otherwise providing
services to a corporation which is a surviving or acquiring corporation in such
transaction or an affiliate of such a corporation, the Committee may arrange to
have such surviving or acquiring corporation or affiliate either assume the
Award or grant to the Participant a replacement award, in either case on such
terms as the Committee deems appropriate under the circumstances. In the case of
an assumed or substitute Option intended to be an Incentive Stock Option, the
requirements of Section 424 (a) of the Code shall be satisfied except as
otherwise provided by the Committee.

                                      -9-

<PAGE>

8.  GENERAL PROVISIONS

8.1  Documentation of Awards.

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

8.2  Rights as a Stockholder, Dividend Equivalents.

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

8.3  Conditions on Delivery of Stock.

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

       If, at the time any shares of Stock are to be delivered pursuant to the
Plan, the Stock is not publicly traded (or is publicly traded but the Company or
shareholders of the Company are subject to one or more agreements restricting
sales or other dispositions of the Stock), the Committee may require, as a
condition to any such delivery of Stock pursuant to the Plan, that the
Participant or other person to whom such shares are to be delivered first
execute a shareholder agreement, a stock transfer agreement or similar agreement
as the Committee may determine.

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

                                      -10-

<PAGE>

8.4  Tax Withholding.

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

       In the case of an Award pursuant to which Stock may be delivered, the
Committee will have the right to require that the Participant or other
appropriate person remit to the Company an amount sufficient to satisfy the
withholding requirements, or make other arrangements satisfactory to the
Committee with regard to such requirements, prior to the delivery of any Stock
or removal of restrictions thereon. If and to the extent that such withholding
is required, the Committee may permit the Participant or such other person to
elect at such time and in such manner as the Committee provides to have the
Company hold back from the shares to be delivered, or to deliver to the Company,
Stock having a value calculated to satisfy the withholding requirement. The
Committee may make such share withholding mandatory with respect to any Award at
the time such Award is made to a Participant. The Committee may also, but need
not, permit a Participant to tender previously owned shares of Stock in
satisfaction of tax withholding requirements on any Award.

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

8.5  Transferability of Awards.

       No ISO or, unless otherwise permitted by the Committee, other Award
(other than an Award in the form of an outright transfer of cash or Unrestricted
Stock) may be transferred other than by will or by the laws of descent and
distribution or, during a Participant's lifetime, exercised other than by the
Participant (or in the event of the Participant's incapacity, the person or
persons legally appointed to act on the Participant's behalf).

8.6  Adjustments in the Event of Certain Transactions.

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

       (b) In any event referred to in paragraph (a), the Committee will also
make any appropriate adjustments to the number and kind of shares of Stock or
securities subject to Awards then outstanding or subsequently granted, any
exercise prices relating to Awards and any other provision of Awards affected by
such change. The Committee may also make such adjustments to take into account
material

                                      -11-

<PAGE>

changes in law or in accounting practices or principles, mergers,
consolidations, acquisitions, dispositions or similar corporate transactions, or
any other event, if it is determined by the Committee that adjustments are
appropriate to avoid distortion in the operation of the Plan.

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

8.7  Employment or Other Rights, Etc.

       Neither the adoption of the Plan nor the grant of Awards will confer upon
any person any right to continued retention by the Company or any subsidiary as
an Employee or otherwise, or affect in any way the right of the Company or
subsidiary to terminate an employment, service or similar relationship at any
time. Except as specifically provided by the Committee in any particular case,
the loss of existing or potential profit in Awards granted under the Plan will
not constitute an element of damages in the event of termination of an
employment, service or similar relationship even if the termination is in
violation of an obligation of the Company or any of its subsidiaries to the
Participant.

8.8  Deferral of Payments.

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

8.9  Past Services as Consideration.

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

9.  EFFECT, AMENDMENT AND TERMINATION

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

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

10.  GOVERNING LAW

       The Plan shall be construed in accordance with the General Corporation
Law of the State of Delaware.

                                      -12-

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