Document:

Exhibit 10.14

                      Confirmation of Rate Cap Transaction

                                                                __________, 2002

PHH Corporation
307 International Circle
Hunt Valley, Maryland  21030
Attn:  _____________
Fax No:   ____________

Ladies and Gentlemen:

          The purpose of this letter agreement is to set forth the terms and
conditions of the rate cap transaction entered into between JPMorgan Chase Bank
("JPMorgan Chase") and PHH Corporation (the "Counterparty") on __________, 2002
(the "Rate Cap Transaction"). It is understood by the parties that the
Counterparty will contribute its rights, but not its obligation to pay the
Premiums, under this Rate Cap Transaction to PHH Vehicle Management Services LLC
("VMS"). VMS will in turn contribute its rights under this Rate Cap Transaction
to Raven Funding LLC ("SPV"), and SPV will in turn contribute its rights under
this Rate Cap Transaction to Chesapeake Funding LLC (the "Issuer"). The Issuer
will pledge its rights under this Rate Cap Transaction to JPMorgan Chase, as
indenture trustee (the "Indenture Trustee") under the Base Indenture dated as of
June 30, 1999, between the Issuer and the Indenture Trustee, as amended by that
Series 2002-1 Indenture Supplement thereto (the "Indenture Supplement"), dated
as of ___________, 2002, between the Issuer and the Indenture Trustee (the
"Indenture").

          In consideration of the promise by the Counterparty to make the
payment of the Premiums and in consideration of the promise by JPMorgan Chase to
make payments to the Counterparty in accordance with Section 3 hereof, the
parties hereto agree as follows:

          1. Definitions. The following terms shall have the following meanings:

          "Business Day" means any day that is a New York Business Day and a
     London Business Day and on which banks are not required or authorized by
     law to close in Maryland or Delaware.

          "Calculation Period" means each period from and including one Payment
     Date (or, in the case of the initial Calculation Period, the Effective
     Date) to but excluding the next succeeding Payment Date (or, in the case of
     the final Calculation Period, the Termination Date).

          "Cap Payment" has the meaning defined in Section 3 hereof.

          "Cap Rate" means, with respect to each Calculation Period, the
     weighted average fixed rate of interest on the New Fixed Rate Leases as of
     the last day of the Monthly

<PAGE>
                                                                               2

     Period immediately preceding the first day of such Calculation Period minus
     0.65% per annum.

          "Closed-End Lease" has the meaning defined in the Indenture.

          "Counterparty's Account" means, as long as the Counterparty's rights
     under this letter agreement shall remain assigned to the Indenture Trustee,
     the Collection Account as defined in the Indenture, and thereafter such
     account as is designated by the Counterparty from time to time.

          "Designated Maturity" means one month.

          "Effective Date" means __________, 2002.

          "Excess Cap Payment" has the meaning defined in Section 3 hereof.

          "Floating Rate" means, with respect to a Calculation Period, the rate
     determined by JPMorgan Chase to be (i) the per annum rate for deposits in
     U.S. dollars for a period of the Designated Maturity which appears on the
     Telerate Page 3750 Screen as of 11:00 a.m., London time, on the day that is
     two London Business Days prior to the Reset Date in respect of such
     Calculation Period (rounded upwards, if necessary, to the nearest 1/100,000
     of 1%); (ii) if such rate does not appear on the Telerate Page 3750 Screen,
     the Floating Rate with respect to such Calculation Period shall be the
     arithmetic mean (rounded as aforesaid) of the offered quotations obtained
     by JPMorgan Chase from the Reference Banks for deposits in U.S. dollars to
     leading banks in the London interbank market as of approximately 11:00
     a.m., London time, on the day that is two London Business Days prior to
     such Reset Date; or (iii) if fewer than two Reference Banks provide
     JPMorgan Chase with such quotations, the Floating Rate shall be the rate
     per annum which JPMorgan Chase determines to be the arithmetic mean
     (rounded as aforesaid) of the offered quotations which leading banks in New
     York City selected by JPMorgan Chase are quoting in the New York interbank
     market on such Reset Date for deposits in U.S. dollars to the Reference
     Banks or, if fewer than two such quotations are available, to leading
     European and Canadian Banks.

          "JPMorgan Chase's Account" means _____________

          "Lease Balance" has the meaning defined in the Indenture.

          "Leased Vehicle" has the meaning defined in the Indenture.

          "London Business Day" means any day on which banks are open for
     business in London, England and on which dealings in deposits in U.S.
     dollars are transacted in the London interbank market.

          "Monthly Period" has the meaning defined in the Indenture.

          "Moody's" has the meaning defined in the Indenture.
<PAGE>
                                                                               3

          "New Fixed Rate Lease" means on any day each Unit Lease then bearing
     interest or financecharges at a fixed rate per annum (a) that did not bear
     interest or finance charges at a fixed rate per annum when it initially
     became a unit Lease or on the Effective Date and (b) with respect to which
     the Issuer shall not have obtained on or prior to such day an interest rate
     cap satisfying the requirements therefor set forth in Section 5A.11(c) of
     the Indenture Supplement.

          "New York Business Day" means any day on which banks are not required
     or authorized by law to close in New York City.

          "Notional Lease Rate Cap" means, with respect to each New Fixed Rate
     Lease, as of the last day of the Monthly Period immediately preceding the
     first Calculation Period during which such New Fixed Rate Lease is to be
     included in the calculation of the Notional Principal Amount, a lease rate
     cap having a notional amount on the first day of such Calculation Period
     equal to the Lease Balance of such New Fixed Rate Lease as of the last day
     of such Monthly Period, plus, in the case of a Closed-End Lease, the Stated
     Residual Value of the related Leased Vehicle and on the first day of each
     Calculation Period thereafter at least equal to the scheduled Lease Balance
     of such New Fixed Rate Lease as of the last day of the Monthly Period
     immediately preceding such first day of such Calculation Period, plus, in
     the case of a Closed-End Lease, the Stated Residual Value of the related
     Leased Vehicle and an effective strike rate based on the eurodollar rate
     set forth therein in effect on the dates set forth therein at the most
     equal to the fixed rate of interest on such New Fixed Rate Lease minus
     0.65% per annum.

          "Notional Principal Amount" means, with respect to a Calculation
     Period, an amount equal to the lesser of (a) the aggregate Unit Balance of
     all New Fixed Rate Leases as of the last day of the Monthly Period
     immediately preceding the first day of such Calculation Period and (b) the
     sum of the Series 2002-1 Invested Amount and the aggregate stated
     liquidation preference of the Series 2002-1 Preferred Membership Interests
     on the first day of such Calculation Period.

          "Payment Date" means the 7th day of each month, or, if such date is
     not a Business Day, the next succeeding Business Day, commencing July 8,
     2002 and ending on the Termination Date.

          "Premiums" means the amounts payable by the Counterparty to JPMorgan
     Chase pursuant to Section 2 hereof.

          "Rating Agency Condition" has the meaning defined in the Indenture
     Supplement.

          "Reference Banks" means four major banks in the London interbank
     market selected by JPMorgan Chase.

          "Reset Date" means the first day of each Calculation Period.

          "Series 2002-1 Invested Amount" has the meaning defined in the
     Indenture Supplement.
<PAGE>
                                                                               4

          "Series 2002-1 Percentage" means, on any Payment Date, the average
     Series 2002-1 Invested Percentage during the Monthly Period immediately
     preceding such Payment Date.

          "Series 2002-1 Preferred Membership Interests" has the meaning defined
     in the Indenture Supplement.

          "Series 2002-1 Required Lease Rate Cap" has the meaning defined in the
     Indenture Supplement.

          "Standard & Poor's" has the meaning defined in the Indenture.

          "Stated Residual Value" has the meaning defined in the Indenture.

          "Telerate Page 3750 Screen" means the display designated as "Page
     3750" on the Telerate Service (or such other page as may replace Page 3750
     on that service or such other service as may be nominated by the British
     Bankers' Association as the information vendor for the purpose of
     displaying British Bankers' Association Interest Settlement Rates for U.S.
     Dollar deposits).

          "Termination Date" means the earlier of June 9, 2014 and the date on
     which the Series 2002-1 Invested Amount has been reduced to zero and the
     Series 2002-1 Preferred Membership Interests shall have been redeemed.

          "Unit Balance" means, with respect to any New Fixed Rate Lease, as of
     any date of determination, the Lease Balance of such New Fixed Rate Lease
     as of such date, plus, in the case of a Closed-End Lease, the Stated
     Residual Value of the related Leased Vehicle.

          "Unit Lease" has the meaning defined in the Indenture.

          2. Premiums. On the first day of the first Calculation Period on which
there are any New Fixed Rate Leases, the Counterparty agrees to pay to JPMorgan
Chase an amount, to be determined by JPMorgan Chase on a reasonably commercial
basis, equal to the premium that would have been payable by the Counterparty to
obtain a Notional Lease Rate Cap with respect to each such New Fixed Rate Lease
on the two Business Days prior to such first day. On the first day of any
Calculation Period during which, after giving effect to the addition of any
additional New Fixed Rate Leases, either (x) the aggregate scheduled notional
amounts during such Calculation Period or any Calculation Period thereafter of
the Notional Lease Rate Caps with respect to all New Fixed Rate Leases will be
less than the Notional Principal Amount with respect to such Calculation Period
or any Calculation Period thereafter (the sum of any such deficiencies, the
"Notional Amount Deficiencies") or (y) the weighted average cap rate during such
Calculation Period or any Calculation Period thereafter under the Notional Lease
Rate Caps with respect to all New Fixed Rate Leases will be higher than the Cap
Rate with respect to such Calculation Period or any Calculation Period
thereafter (the "Cap Rate Deficiencies"), the Counterparty agrees to pay to
JPMorgan Chase an amount, to be determined by JPMorgan Chase on a reasonably
commercial basis, equal to the premium that would have been payable by the
Counterparty to obtain a lease rate cap covering the Notional Amount
Deficiencies and/or the

<PAGE>
                                                                               5

Cap Rate Deficiencies. All payments of Premiums to JPMorgan Chase shall be made
by deposit to JPMorgan Chase's Account. JPMorgan Chase shall determine the
amount of any Premium payable by the Counterparty hereunder, based on the
information contained in the Monthly Settlement Statement delivered to JPMorgan
Chase pursuant to Article 7 of the Indenture Supplement, and notify the
Counterparty thereof on the Business Day prior to the due date thereof.

          3. Payments. JPMorgan Chase agrees to pay to or at the direction of
the Counterparty on each Payment Date, an amount equal to the product of (i) the
amount by which the Floating Rate exceeds the Cap Rate with respect to the
Calculation Period ending on such Payment Date, in each case as determined by
JPMorgan Chase, (ii) the Notional Principal Amount with respect to such
Calculation Period and (iii) the actual number of days in such Calculation
Period divided by 360 (the "Cap Payment"). JPMorgan Chase shall determine the
amount of any Cap Payment for any Payment Date based on the information
contained in the Monthly Settlement Statement delivered to JPMorgan Chase
pursuant to Article 7 of the Indenture Supplement in respect of the immediately
preceding Payment Date. On any Payment Date following a Calculation Period
during which the Notional Principal Amount was calculated based on the amount
set forth in clause (a) of the definition thereof, JPMorgan Chase shall pay a
portion of the Cap Payment, in an amount equal to the Series 2002-1 Percentage
thereof on such Payment Date, to the Counterparty's Account and, subject to
Section 7 hereof, the remaining portion thereof (the "Excess Cap Payment") to or
at the direction of the Issuer. On any Payment Date following a Calculation
Period during which the Notional Principal Amount was calculated based on the
amount set forth in clause (b) of the definition thereof, JPMorgan Chase shall
pay the full amount of the Cap Payment to the Counterparty's Account.

          4. Notices. Any notices hereunder (i) shall be in writing and
hand-delivered or sent by first-class mail, postage prepaid, return receipt
requested, or facsimile transmission and shall be addressed to the intended
recipient at its address set forth on the signature page hereof or at such other
address as such party shall have last specified by notice to the other party and
(ii) shall be effective (a) if delivered by hand or sent by overnight courier,
on the day it is delivered, unless delivery is made after the close of business
or on a day that is not a Business Day, in which case such notice will be
effective on the next Business Day, (b) if sent by certified or registered mail
or the equivalent (return receipt requested), three Business Days after
dispatch, or (c) if sent by facsimile transmission, on the date that
transmission is received by a responsible employee of the recipient in legible
form (it being agreed that the burden of proving receipt will be on the sender
and will not be met by a transmission report generated by the sender's facsimile
machine).

          5. Governing Law. This letter agreement shall be governed by and
construed in accordance with the laws of the State of New York.

          6. Assignments. Neither party shall have the right to assign its
rights or delegate its obligations under this letter agreement without the prior
written consent of the other party; provided, however, that, the Counterparty's
rights hereunder may be assigned as described herein and pledged by the Issuer
to the Indenture Trustee.

<PAGE>
                                                                               6

          7. Set-off; Counterclaim. Notwithstanding any other provision of any
other agreement to the contrary, all payments under this letter agreement will
be made without set-off or counterclaim, except that, if the Counterparty fails
to pay any Premium pursuant to Section 2 hereof in respect of any New Fixed Rate
Lease when due, JPMorgan Chase will not be obligated to pay to or at the
direction of the Issuer pursuant to Section 3 hereof on any Payment Date
following a Calculation Period during which the Notional Principal Amount was
calculated based on the amount set forth in clause (a) of the definition
thereof, an amount equal to the lesser of the Excess Cap Payment and the portion
of the Cap Payment on such Payment Date attributable to the Unit Balance of such
New Fixed Rate Lease.

          8. Each Party's Reliance on its own Judgment. Each party has entered
into this Rate Cap Transaction solely in reliance on its own judgment. Neither
party has any fiduciary obligation to the other party relating to this Rate Cap
Transaction. In addition, neither party has held itself out as advising, or has
held out any of its employees or agents as having the authority to advise, the
other party as to whether or not the other party should enter into this Rate Cap
Transaction, any subsequent actions relating to this Rate Cap Transaction or any
other matters relating to this Rate Cap Transaction. Neither party shall have
any responsibility or liability whatsoever in respect of any advice of this
nature given, or views expressed, by it or any of such persons to the other
party relating to this Rate Cap Transaction, whether or not such advice is given
or such views are expressed at the request of the other party.

          9. Early Termination. If the short-term credit rating of JPMorgan
Chase falls below A-1 by Standard & Poor's or P-1 by Moody's or the long-term
unsecured credit rating of JPMorgan Chase falls below A+ by Standard & Poor's or
Aa3 by Moody's and within 30 days of such decline in credit rating, JPMorgan
Chase shall not have provided some form of collateral for its obligations
hereunder and satisfied the Rating Agency Condition with respect to such
arrangement, the Counterparty shall have the right, upon five (5) Business Days
written notice to JPMorgan Chase, to terminate this Rate Cap Transaction. The
Counterparty's right to terminate this Rate Cap Transaction pursuant to the
preceding sentence is conditioned upon the Counterparty having obtained, and
there being maintained as of the time of such termination, the Series 2002-1
Required Lease Rate Cap (determined without giving effect to this Rate Cap
Transaction).

          10. WAIVER OF JURY TRIAL. THE PARTIES HERETO HEREBY KNOWINGLY AND
INTENTIONALLY, IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL
ACTION OR PROCEEDING RELATING TO THIS LETTER AGREEMENT OR FOR ANY COUNTERCLAIM
THEREIN.

          Please confirm that the foregoing correctly sets forth the terms and
conditions of our agreement by responding within three (3) Business Days by
returning via facsimile an executed copy of this letter agreement to the
attention of Michaela Ludbrook, fax no. (212) 834-6187.

          Duplicate hard copies of this letter agreement will be sent to you
shortly. Upon receipt, please execute both copies and return one to JPMorgan
Chase to the address indicated below.
<PAGE>
                                                                               7

          JPMorgan Chase is pleased to have concluded this transaction with you.

                                        Very truly yours,

                                        JPMORGAN CHASE BANK

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

                                        Address for Notices:
                                        270 Park Avenue, 8th Floor
                                        New York, NY 10017
                                        Attention: Michaela Ludbrook
                                        Facsimile No.: (212) 834-6187
<PAGE>
                                                                               8

                                        ACCEPTED AND AGREED:

                                        PHH CORPORATION

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

                                        Address for Notices:
                                        307 International Circle
                                        Hunt Valley, Maryland  21030
                                        Attn:
                                        Fax No:<PAGE>
                                                                     EXHIBIT 4.1
                                                                     -----------

                                     TELLIUM

                        2002 EMPLOYEE STOCK PURCHASE PLAN

    1. Establishment of Plan. Tellium, Inc., a Delaware Corporation (the
"Company"), proposes to grant options for purchase of shares of the Company's
Common Stock ("Shares") to eligible employees of the Company and its
Participating Subsidiaries (as hereinafter defined) pursuant to this Employee
Stock Purchase Plan (this "Plan"). For purposes of this Plan, "Parent
Corporation" and "Subsidiary" shall have the same meanings as "parent
corporation" and "subsidiary corporation" in Sections 424(e) and 424(f),
respectively, of the Internal Revenue Code of 1986, as amended (the "Code").
"Participating Subsidiaries" are Parent Corporations or Subsidiaries that the
Board of Directors of the Company (the "Board") designates from time to time as
corporations that shall participate in this Plan. The Company intends this Plan
to qualify as an "employee stock purchase plan" under Section 423 of the Code
(including any amendments to or replacements of such Section), and this Plan
shall be so construed. Any term not expressly defined in this Plan but defined
for purposes of Section 423 of the Code shall have the same definition herein. A
total of 4,000,000 Shares is reserved for issuance under this Plan. In addition,
on each January 1, the aggregate number of Shares reserved for issuance under
the Plan shall be increased automatically by a number of Shares equal to 2.5% of
the total number of outstanding Shares on the immediately preceding December 31;
provided that the aggregate number of Shares issued over the term of this Plan
shall not exceed 6,000,000. Such number shall be subject to adjustments effected
in accordance with Section 15 of this Plan.

    2. Purpose. The purpose of this Plan is to provide eligible employees of the
Company and Participating Subsidiaries with a convenient means of acquiring an
equity interest in the Company through payroll deductions, to enhance such
employees' sense of participation in the affairs of the Company and
Participating Subsidiaries, and to provide an incentive for continued
employment.

    3. Certain terms.

       (a) "Change in Capitalization" shall mean any increase or reduction in
    the number of Shares, or any change (including, without limitation, in the
    case of a spin-off, dividend or other distribution in respect of Shares, a
    change in value) in the Shares or exchange of Shares for a different number
    or kind of shares or other securities of the Company or another corporation,
    by reason of a reclassification, recapitalization, merger, consolidation,
    reorganization, spin-off, split-up, issuance of warrants or rights or
    debentures, stock dividend, stock split or reverse stock split, cash
    dividend, property dividend, combination or exchange of shares, repurchase
    of shares, change in corporate structure or a substantially similar
    transaction.

       (b) "Change in Control" shall mean the occurrence of any of the
    following:

            (1) An acquisition (other than directly from the Company) of any
       Voting Securities of the Company by any "person," as such term is used
       for purposes of Section 13(d) or 14(d) of the Securities Exchange Act of
       1934, as amended, including, without limitation, any individual, firm,
       corporation, partnership, limited liability company, joint venture,
       association, trust, or any group thereof (a "Person"), immediately after
       which such Person has ownership, within the meaning of Rule 13d-3 of the
       Securities Exchange Act of 1934, as amended ("Beneficial Ownership"), of
       fifty percent (50%) or more of the then outstanding Shares or the
       combined voting power of the then outstanding voting securities of the
       Company entitled to vote generally in the election of the Board ("Voting
       Securities"), provided, however, in determining whether a Change in
       Control has occurred pursuant to this Section (b)(1), Shares or Voting
       Securities which are acquired in a "Non-Control Acquisition" (as
       hereinafter defined) shall not constitute an acquisition which would
       cause a Change in Control. A "Non-Control Acquisition" shall mean an
       acquisition by (i) an employee benefit plan (or a trust forming a part
       thereof) maintained by (A) the Company or (B) any corporation or other
       Person of which a majority of its voting power or its voting equity
       securities or equity interest is owned, directly or indirectly, by the
       Company (for purposes of this definition, a "Related Entity"), (ii) the
       Company or any Related Entity, or (iii) any Person in connection with a
       "Non-Control Transaction" (as hereinafter defined);

            (2) The individuals who, as of the date hereof, are members of the
       Board (the "Incumbent Board"), cease for any reason to constitute at
       least a majority of the members of the Board, or following a Merger (as
       defined in paragraph (c)(i) below) which results in a Parent corporation,
       the board of directors of the ultimate Parent Corporation (as defined in
       paragraph (3)(i)(A) below); provided, however, that if the election, or
       nomination for election by the Company's common stockholders, of any new
       director was approved by a vote of at least two-thirds of the Incumbent
       Board, such new director shall, for purposes of this Plan, be considered
       as a member of the Incumbent Board; provided further, however, that no
       individual shall be considered a member of the Incumbent Board if such
       individual initially assumed office as a result of an actual or
       threatened solicitation of proxies or consents by or on behalf of a
       Person other than the Board (a "Proxy Contest") including by reason of
       any agreement intended to avoid or settle a Proxy Contest; or

                                       1

<PAGE>

            (3) The consummation of:

                (i) A merger, consolidation or reorganization with or into the
            Company or in which securities of the Company are issued (a
            "Merger"), unless such Merger is a "Non-Control Transaction." A
            "Non-Control Transaction" shall mean a Merger where:

                    (A) the stockholders of the Company, immediately before such
                Merger own directly or indirectly immediately following such
                Merger at least fifty percent (50%) of the combined voting power
                of the outstanding voting securities of (x) the corporation
                resulting from such Merger (the "Surviving Corporation") if
                fifty percent (50%) or more of the combined voting power of the
                then outstanding voting securities of the Surviving Corporation
                is not Beneficially Owned, directly or indirectly by another
                Person (a "Parent Corporation"), or (y) if there are one or more
                Parent Corporations, the ultimate Parent Corporation; and

                    (B) the individuals who were members of the Incumbent Board
                immediately prior to the execution of the agreement providing
                for such Merger constitute at least a majority of the members of
                the board of directors of (x) the Surviving Corporation, if
                there is no Parent Corporation, or (y) if there are one or more
                Parent Corporations, the ultimate Parent Corporation; and

                    (C) no Person other than (w) the Company, (x) any Related
                Entity, (y) any employee benefit plan (or any trust forming a
                part thereof) that, immediately prior to such Merger was
                maintained by the Company or any Related Entity, or (z) any
                Person who, together with its Affiliates, immediately prior to
                such Merger, had Beneficial Ownership of fifty percent (50%) or
                more of the then outstanding Voting Securities or Shares, owns,
                together with its Affiliates, Beneficial Ownership of fifty
                percent (50%) or more of the combined voting power of the
                outstanding voting securities or common stock of (I) the
                Surviving Corporation if there is no Parent Corporation, or (II)
                if there are one or more Parent Corporations, the ultimate
                Parent Corporation.

                (ii)  A complete liquidation or dissolution of the Company; or

                (iii) The sale or other disposition of all or substantially all
            of the assets of the Company to any Person (other than a transfer to
            a Related Entity or under conditions that would constitute a
            Non-Control Transaction with the disposition of the assets being
            regarded as a Merger for this purpose or the distribution to the
            Company's stockholders of the stock of a Related Entity or any other
            assets).

       Notwithstanding the foregoing, a Change in Control shall not be deemed
    to occur solely because any Person (the "Subject Person") acquired
    Beneficial Ownership of more than the permitted amount of the then
    outstanding Shares or Voting Securities as a result of the acquisition of
    Shares or Voting Securities by the Company which, by reducing the number of
    Shares or Voting Securities then outstanding, increases the proportional
    number of shares Beneficially Owned by the Subject Persons, provided that if
    a Change in Control would occur (but for the operation of this sentence) as
    a result of the acquisition of Shares or Voting Securities by the Company,
    and (1) before such share acquisition by the Company the Subject Person
    becomes the Beneficial Owner of any new or additional Shares or Voting
    Securities in contemplation of such share acquisition by the Company or (2)
    after such share acquisition by the Company the Subject Person becomes the
    Beneficial Owner of any new or additional Shares or Voting Securities which
    in either case increases the percentage of the then outstanding Shares or
    Voting Securities Beneficially Owned by the Subject Person, then a Change in
    Control shall occur.

       (c) "Fair Market Value" on any date means the closing price at the close
    of the primary trading session of the Shares on such date on the principal
    national securities exchange on which such Shares are listed or admitted to
    trading, or, if such Shares are not so listed or admitted to trading, the
    closing price at the close of the primary trading session on such date as
    quoted on the Nasdaq Stock Market or such other market in which such prices
    are regularly quoted, or, if there has been no such closing price with
    respect to Shares on such date, the Fair Market Value shall be the value
    established by the Compensation Committee of the Board in good faith.

    4. Administration. This Plan shall be administered by the Compensation
Committee of the Board (the "Committee"). Subject to the provisions of this Plan
and the limitations of Section 423 of the Code or any successor provision in the
Code, all questions of interpretation or application of this Plan shall be
determined by the Committee and its decisions shall be final and binding upon
all participants. Members of the Committee shall receive no compensation for
their services in connection with the administration of this Plan, other than
standard fees as established from time to time by the Board for services
rendered by Board members serving on Board committees. All expenses incurred in
connection with the administration of this Plan shall be paid by the Company.

                                       2

<PAGE>

    5. Eligibility. Any employee of the Company or the Participating
Subsidiaries is eligible to participate in an Offering Period (as hereinafter
defined) under this Plan except the following:

       (a)  employees who are not employed by the Company or a Participating
    Subsidiary (10) days before the beginning of such Offering Period;

       (b)  employees who are customarily employed for twenty (20) hours or less
    per week;

       (c)  employees who are customarily employed for five (5) months or less
    in a calendar year;

       (d)  employees who, together with any other person whose stock would be
    attributed to such employee pursuant to Section 424(d) of the Code, own
    stock or hold options to purchase stock possessing five percent (5%) or more
    of the total combined voting power or value of all classes of stock of the
    Company or any of its Subsidiaries or affiliates or who, as a result of
    being granted an option under this Plan with respect to such Offering
    Period, would own stock or hold options to purchase stock possessing five
    percent (5%) or more of the total combined voting power or value of all
    classes of stock of the Company or any of its Participating Subsidiaries;
    and

       (e)  individuals who provide services to the Company or any of its
    Participating Subsidiaries as independent contractors who are reclassified
    as common law employees for any reason except for federal income and
    employment tax purposes.

    6. Offering Dates. The offering periods of this Plan (each, an "Offering
Period"), with the exception of the First Offering Period (the "First Offering
Period"), shall be of twenty-four (24) months duration commencing on March 1 and
September 1 of each year and ending on February 28 and August 31 of each year.
Each Offering Period, other than the First Offering Period, shall consist of
four (4) six-month purchase periods (individually, a "Purchase Period") during
which payroll deductions of the participants are accumulated under this Plan.
The First Offering Period shall be of twenty-seven (27) months duration
commencing on June 1, 2002 and ending on August 31, 2004, and shall consist of
one (1) nine-month Purchase Period and three (3) six-month Purchase Periods. The
first business day of each Offering Period is referred to as the "Offering
Date." The last business day of each Purchase Period is referred to as the
"Purchase Date." The Committee shall have the power to change the duration of
Offering Periods with respect to offerings without stockholder approval if such
change is announced at least fifteen (15) days prior to the scheduled beginning
of the first Offering Period to be affected; provided, however, that no Offering
Period may be longer than twenty-seven (27) months.

    7. Participation in this Plan. Eligible employees may become participants in
an Offering Period under this Plan on the first Offering Date after satisfying
the eligibility requirements by delivering a subscription agreement to the
Company's stock administration department (the "Stock Administration
Department") not later than five (5) days before such Offering Date.
Notwithstanding the foregoing, the Committee may set a later time for filing the
subscription agreement authorizing payroll deductions for all eligible employees
with respect to a given Offering Period. An eligible employee who does not
deliver a subscription agreement to the Stock Administration Department by such
date after becoming eligible to participate in such Offering Period shall not
participate in that Offering Period or any subsequent Offering Period unless
such employee enrolls in this Plan by filing a subscription agreement with the
Stock Administration Department not later than five (5) days preceding a
subsequent Offering Date. Once an employee becomes a participant in an Offering
Period, such employee will automatically participate in the Offering Period
commencing immediately following the last day of the prior Offering Period
unless the employee withdraws or is deemed to withdraw from this Plan or
terminates further participation in the Offering Period as set forth in Section
12 below. Such participant is not required to file any additional subscription
agreement in order to continue participation in this Plan.

    8. Grant of Option on Enrollment. Enrollment by an eligible employee in this
Plan with respect to an Offering Period will constitute the grant (as of the
Offering Date) by the Company to such employee of an option to purchase on the
Purchase Date up to that number of Shares of the Company determined by dividing
(a) the amount accumulated in such employee's payroll deduction account during
such Purchase Period by (b) the lower of (i) eighty-five percent (85%) of the
Fair Market Value of a Share on the Offering Date (but in no event less than the
par value of a Share), or (ii) eighty-five percent (85%) of the Fair Market
Value of a Share on the Purchase Date (but in no event less than the par value
of a Share), provided, however, that the number of Shares subject to any option
granted pursuant to this Plan shall not exceed the maximum number of Shares set
by the Committee pursuant to Section 11(b) below with respect to the applicable
Purchase Date.

    9. Purchase Price. The purchase price at which a Share will be sold in any
Offering Period shall be eighty-five percent (85%) of the lesser of:

       (a)  The Fair Market Value on the Offering Date; or

       (b)  The Fair Market Value on the Purchase Date.

                                       3

<PAGE>

    10. Payment Of Purchase Price; Changes In Payroll Deductions; Issuance Of
Shares.

        (a) The purchase price of the Shares is accumulated by regular payroll
    deductions made during each Offering Period. The deductions are made as a
    percentage of the participant's compensation in one percent (1%) increments
    not less than two percent (2%), nor greater than ten percent (10%) or such
    lower limit set by the Committee. Compensation shall mean all W-2 cash
    compensation, including, but not limited to, base salary, wages,
    commissions, overtime, shift premiums and bonuses, plus draws against
    commissions, provided, however, that for purposes of determining a
    participant's compensation, any election by such participant to reduce his
    or her regular cash remuneration under Sections 125 or 401(k) of the Code
    shall be treated as if the participant did not make such election. Payroll
    deductions shall commence on the first payday of the Offering Period and
    shall continue to the end of the Offering Period unless sooner altered or
    terminated as provided in this Plan.

       (b)  A participant may increase or decrease the rate of payroll
    deductions during an Offering Period by filing with the Stock Administration
    Department a new authorization for payroll deductions, in which case the new
    rate shall become effective for the next payroll period commencing more than
    fifteen (15) days after the Stock Administration Department's receipt of the
    authorization and shall continue for the remainder of the Offering Period
    unless changed as described herein. Such change in the rate of payroll
    deductions may be made at any time during an Offering Period, but not more
    than one (1) change may be made effective during any Purchase Period. A
    participant may increase or decrease the rate of payroll deductions for any
    subsequent Offering Period by filing with the Stock Administration
    Department a new authorization for payroll deductions not later than fifteen
    (15) days before the beginning of such Offering Period.

       (c)  A participant may reduce his or her payroll deduction percentage to
    zero during an Offering Period by filing with the Stock Administration
    Department a request for cessation of payroll deductions. Such reduction
    shall be effective beginning with the next payroll period commencing more
    than fifteen (15) days after the Stock Administration Department's receipt
    of the request and no further payroll deductions will be made for the
    duration of the Offering Period. Payroll deductions credited to the
    participant's account prior to the effective date of the request shall be
    used to purchase Shares in accordance with Section (e) below. A participant
    may not resume making payroll deductions during the Offering Period in which
    he or she reduced his or her payroll deductions to zero.

       (d)  All payroll deductions made for a participant are credited to his or
    her account under this Plan and are deposited with the general funds of the
    Company. No interest accrues on the payroll deductions. All payroll
    deductions received or held by the Company may be used by the Company for
    any corporate purpose, and the Company shall not be obligated to segregate
    such payroll deductions.

       (e)  On each Purchase Date, so long as this Plan remains in effect and
    provided that the participant has not submitted a signed and completed
    withdrawal form before that date which notifies the Company that the
    participant wishes to withdraw from that Offering Period under this Plan and
    have all payroll deductions accumulated in the account maintained on behalf
    of the participant as of that date returned to the participant, the Company
    shall apply the funds then in the participant's account to the purchase of
    whole Shares reserved under the option granted to such participant with
    respect to the Offering Period to the extent that such option is exercisable
    on the Purchase Date. The purchase price per Share shall be as specified in
    Section 9 of this Plan. Any cash remaining in a participant's account after
    such purchase of Shares shall be refunded to such participant in cash,
    without interest; provided, however that any amount remaining in such
    participant's account on a Purchase Date which is less than the amount
    necessary to purchase a full Share shall be carried forward, without
    interest, into the next Purchase Period or Offering Period, as the case may
    be. In the event that this Plan has been oversubscribed, all funds not used
    to purchase Shares on the Purchase Date shall be returned to the
    participant, without interest. No Shares shall be purchased on a Purchase
    Date on behalf of any employee whose participation in this Plan has
    terminated prior to such Purchase Date.

       (f)  As promptly as practicable after the Purchase Date, the Company
    shall issue Shares for the participant's benefit representing the Shares
    purchased upon exercise of his or her option.

       (g)  During a participant's lifetime, his or her option to purchase
    Shares hereunder is exercisable only by him or her. The participant will
    have no interest or voting right in Shares covered by his or her option
    until such option has been exercised.

    11. Limitations on Shares to be Purchased.

       (a)  No participant shall be entitled to purchase stock under this Plan
    at a rate which, when aggregated with his or her rights to purchase stock
    under all other employee stock purchase plans of the Company or any
    Subsidiary, exceeds $25,000 in fair market value, determined as of the
    Offering Date (or such other limit as may be imposed by the Code) for each
    calendar year in which the employee participates in this Plan. The Company
    shall automatically suspend the payroll deductions of any participant as
    necessary to enforce such limit provided that when the Company automatically
    resumes such payroll deductions, the Company must apply the rate of payroll
    deduction in effect immediately prior to such suspension.

                                        4

<PAGE>

        (b) No participant shall be entitled to purchase more than the Maximum
    Share Amount (as defined below) on any single Purchase Date. Not less than
    ten (10) days prior to the commencement of any Offering Period, the
    Committee shall determine, in its sole discretion, the maximum number of
    Shares which may be purchased by any employee at any single Purchase Date
    (hereinafter the "Maximum Share Amount"). If a new Maximum Share Amount is
    set, then all participants must be notified of such Maximum Share Amount
    prior to the commencement of the next Offering Period, and such new Maximum
    Share Amount shall be effective only with respect to Offer Periods
    beginning subsequent to such notification. The Maximum Share Amount shall
    continue to apply with respect to all succeeding Purchase Dates and
    Offering Periods unless revised by the Committee as set forth above.

        (c) If the number of Shares to be purchased on a Purchase Date by all
    employees participating in this Plan exceeds the number of Shares then
    available for issuance under this Plan, then the Company will make a pro
    rata allocation of the remaining Shares in as uniform a manner as shall be
    reasonably practicable and as the Committee shall determine to be equitable.
    In such event, the Company shall give written notice of such reduction of
    the number of Shares to be purchased under a participant's option to each
    participant affected.

        (d) Any payroll deductions accumulated in a participant's account which
    are not used to purchase stock due to the limitations in this Section 11
    shall be returned to the participant as soon as practicable after the end of
    the applicable Purchase Period, without interest.

    12.    Withdrawal.

        (a) Each participant may withdraw from an Offering Period under this
    Plan by signing and delivering to the Stock Administration Department a
    written notice to that effect on a form provided for such purpose. Such
    withdrawal may be elected at any time at least fifteen (15) days prior to
    the end of an Offering Period.

        (b) Upon withdrawal from this Plan, the accumulated payroll deductions
    shall be returned to the withdrawn participant, without interest, and his or
    her interest in this Plan shall terminate. In the event a participant
    voluntarily elects to withdraw from this Plan, he or she may not resume his
    or her participation in this Plan during the same Offering Period, but he or
    she may participate in any Offering Period under this Plan which commences
    on a date subsequent to such withdrawal by filing a new authorization for
    payroll deductions in the same manner as set forth in Section 7 above for
    initial participation in this Plan.

        (c) If the Fair Market Value on the first day of the current Offering
    Period in which a participant is enrolled is higher than the Fair Market
    Value on the first day of any subsequent Offering Period, the Company will
    automatically enroll such participant in the subsequent Offering Period. Any
    funds accumulated in a participant's account prior to the first day of such
    subsequent Offering Period will be applied to the purchase of Shares on the
    Purchase Date immediately prior to the first day of such subsequent Offering
    Period, if any.

    13. Termination of Employment. Termination of a participant's employment for
any reason, including retirement, death or the failure of a participant to
remain an eligible employee of the Company or of a Participating Subsidiary,
immediately terminates his or her participation in this Plan. In such event, the
payroll deductions credited to the participant's account will be returned to him
or her or, in the case of his or her death, to his or her legal representative,
without interest. For purposes of this Section 13, an employee will not be
deemed to have terminated employment or failed to remain in the continuous
employ of the Company or of a Participating Subsidiary in the case of sick
leave, military leave, or any other leave of absence approved by the Board;
provided that such leave is for a period of not more than ninety (90) days or
reemployment upon the expiration of such leave is guaranteed by contract or
statute.

    14. Return of Payroll Deductions. In the event a participant's interest in
this Plan is terminated by withdrawal, termination of employment or otherwise,
or in the event this Plan is terminated by the Board, the Company shall deliver
to the participant all payroll deductions credited to such participant's
account. No interest shall accrue on the payroll deductions of a participant in
this Plan.

    15. Change in Capitalization and Change in Control.

        (a) Subject to any required action by the stockholders of the Company,
    in the event of a Change in Capitalization, the number of Shares covered by
    each option under this Plan which has not yet been exercised and the number
    of Shares which have been authorized for issuance under this Plan but have
    not yet been placed under option (collectively, the "Reserves"), as well as
    the price per Share covered by each option under this Plan which has not yet
    been exercised, shall be proportionately adjusted for any increase or
    decrease in the number of issued and outstanding Shares resulting from a
    stock split or the payment of a stock dividend (but only on the Common
    Stock) or any other increase or decrease in the number of issued and
    outstanding Shares effected without receipt of any consideration by the
    Company; provided, however, that conversion of any

                                       5

<PAGE>

    convertible securities of the Company shall not be deemed to have been
    "effected without receipt of consideration." Such adjustment shall be made
    by the Committee, whose determination shall be final, binding and
    conclusive. Except as expressly provided herein, no issue by the Company of
    shares of stock of any class, or securities convertible into shares of stock
    of any class, shall affect, and no adjustment by reason thereof shall be
    made with respect to, the number or price of Shares subject to an option.

        (b) In the event of a Change in Control due to the dissolution or
    liquidation of the Company, all rights to purchase Shares under the Plan
    shall terminate and all amounts credited to employee accounts which have not
    been applied to the purchase of Shares shall be refunded; provided, however,
    that the Committee may, in the exercise of its sole discretion in such
    instances, declare that this Plan shall terminate as of a date fixed by the
    Committee and give each participant the right to purchase Shares under this
    Plan prior to such termination. In the event of a Change in Control for any
    other reason and after which the Company is not the Surviving Corporation,
    the Committee may determine in its sole discretion that: (1) a date
    established by the Board on or up to 10 days before the date of consummation
    of such Change in Control shall be treated as the last day of any Offering
    Periods then in progress and shall also be a Purchase Date, and there shall
    be no further Offering Periods under this Plan; (2) all rights to purchase
    Shares under the Plan shall terminate and all amounts credited to employee
    accounts which have not been applied to the purchase of Shares shall be
    refunded; or (3) the Plan will continue with regard to Offering Periods that
    commenced prior to the closing of the proposed transaction and shares of the
    Surviving Corporation will be purchased based on the Fair Market Value of
    the Surviving Corporation's stock on each Purchase Date.

        (c) The Committee may, if it so determines in the exercise of its sole
    discretion, in the event of a Change in Capitalization or a Change in
    Control, also make provision for adjusting the Reserves, as well as the
    price per Share covered by each outstanding option.

    16. Nonassignability. Neither payroll deductions credited to a participant's
account nor any rights with regard to the exercise of an option or to receive
Shares under this Plan may be assigned, transferred, pledged or otherwise
disposed of in any way (other than by will, the laws of descent and distribution
or as provided in Section 23 below) by the participant. Any such attempt at
assignment, transfer, pledge or other disposition shall be void and without
effect.

    17. Reports. Individual accounts will be maintained for each participant in
this Plan. Each participant shall receive promptly after the end of each
Purchase Period a report of his or her account setting forth the total payroll
deductions accumulated, the number of Shares purchased, the per share price
thereof and the remaining cash balance, if any, carried forward to the next
Purchase Period or Offering Period, as the case may be.

    18. Notice of Disposition. Each participant shall notify the Company in
writing if the participant disposes of any of the Shares purchased in any
Offering Period pursuant to this Plan if such disposition occurs within two (2)
years from the Offering Date or within one (1) year from the Purchase Date on
which such Shares were purchased (the "Notice Period"). The Company may, at any
time during the Notice Period, place a legend or legends on any certificate
representing Shares acquired pursuant to this Plan requesting the Company's
transfer agent to notify the Company of any transfer of the Shares. The
obligation of the participant to provide such notice shall continue
notwithstanding the placement of any such legend on the certificates.

    19. No Rights to Continued Employment. Neither this Plan nor the grant of
any option hereunder shall confer any right on any employee to remain in the
employ of the Company or any Participating Subsidiary, or restrict the right of
the Company or any Participating Subsidiary to terminate such employee's
employment.

    20. Equal Rights And Privileges. All eligible employees shall have equal
rights and privileges with respect to this Plan so that this Plan qualifies as
an "employee stock purchase plan" within the meaning of Section 423 or any
successor provision of the Code and the related regulations. Any provision of
this Plan which is inconsistent with Section 423 or any successor provision of
the Code shall, without further act or amendment by the Company, the Committee
or the Board, be reformed to comply with the requirements of Section 423. This
Section 20 shall take precedence over all other provisions in this Plan.

    21. Notices. All notices or other communications by a participant to the
Company under or in connection with this Plan shall be deemed to have been duly
given when received in the form specified by the Company at the location, or by
the person, designated by the Company for the receipt thereof.

                                       6

<PAGE>

    22. Term; Stockholder Approval. After this Plan is adopted by the Board,
this Plan will become effective on the First Offering Date (as defined above).
This Plan shall be approved by the stockholders of the Company, in any manner
permitted by applicable corporate law, within twelve (12) months before or after
the date this Plan is adopted by the Board. No purchase of Shares pursuant to
this Plan shall occur prior to such stockholder approval. This Plan shall
continue until the earlier to occur of (a) termination of this Plan by the Board
(which termination may be effected by the Board at any time), (b) issuance of
all of the Shares reserved for issuance under this Plan, or (c) ten (10) years
from the adoption of this Plan by the Board.

    23. Designation of Beneficiary.

        (a) A participant may file a written designation of a beneficiary who is
    to receive any Shares and cash, if any, from the participant's account under
    this Plan in the event of such participant's death subsequent to the end of
    an Purchase Period but prior to delivery to him of such Shares and cash. In
    addition, a participant may file a written designation of a beneficiary who
    is to receive any cash from the participant's account under this Plan in the
    event of such participant's death prior to a Purchase Date.

        (b) Such designation of beneficiary may be changed by the participant at
    any time by written notice. In the event of the death of a participant and
    in the absence of a beneficiary validly designated under this Plan who is
    living at the time of such participant's death, the Company shall deliver
    such Shares or cash to the executor or administrator of the estate of the
    participant, or if no such executor or administrator has been appointed (to
    the knowledge of the Company), the Company, in its discretion, may deliver
    such Shares or cash to the spouse or to any one or more dependents or
    relatives of the participant, or if no spouse, dependent or relative is
    known to the Company, then to such other person as the Company may
    designate.

    24. Conditions Upon Issuance of Shares; Limitation on Sale of Shares. Shares
shall not be issued with respect to an option unless the exercise of such option
and the issuance and delivery of such Shares pursuant thereto shall comply with
all applicable provisions of law, domestic or foreign, including, without
limitation, the Securities Act, the Securities Exchange Act of 1934, as amended,
the rules and regulations promulgated thereunder, and the requirements of any
stock exchange or automated quotation system upon which the Shares may then be
listed, and shall be further subject to the approval of counsel for the Company
with respect to such compliance.

    25. Applicable Law. The Plan shall be governed by the substantive laws
(excluding the conflict of laws rules) of the State of Delaware.

    26. Amendment or Termination of this Plan. The Board may at any time amend,
terminate or extend the term of this Plan, except that, any such termination
cannot affect options previously granted under this Plan, nor may any amendment
make any change in an option previously granted which would adversely affect the
right of any participant; provided however that no action taken under Section 15
shall be considered to adversely affect the right of any participant within the
meaning of this sentence, nor may any amendment be made without approval of the
stockholders of the Company obtained in accordance with Section 22 above within
twelve (12) months of the adoption of such amendment (or earlier if required by
Section 22) if such amendment would:

        (a) increase the number of Shares that may be issued under this Plan; or

        (b) change the designation of the employees (or class of employees)
eligible for participation in this Plan.

Notwithstanding the foregoing, the Board may make such amendments to the Plan as
the Board determines to be advisable, if the continuation of the Plan or any
Offering Period would result in financial accounting treatment for the Plan that
is different from the financial accounting treatment in effect on the date this
Plan is adopted by the Board.

                                       7

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