Document:

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                          DENDRITE INTERNATIONAL, INC.

               1992 SENIOR MANAGEMENT INCENTIVE STOCK OPTION PLAN

                     (AS AMENDED THROUGH MARCH 24, 2000(1))

           1. PURPOSE. This 1992 Senior Management Incentive Stock Option Plan
(the "Plan") is intended to provide incentives: (a) to the senior managers of
Dendrite International, Inc. (the "Company"), its parent (if any) and any
present or future subsidiaries of the Company (collectively, "Related
Corporations") by providing them with opportunities to purchase stock in the
Company pursuant to options granted hereunder which qualify as "incentive stock
options" under Section 422(b) of the Internal Revenue Code of 1986, as amended
(the "Code") ("ISO" or "ISOs"). As used in this Plan, the term "parent" and
"subsidiary" mean "parent corporation" and "subsidiary corporation",
respectively, as those terms are defined in Section 424 of the Code.

           2. ADMINISTRATION OF THE PLAN.

                     A. BOARD OR COMMITTEE ADMINISTRATION. The Plan shall be
           administered by the Board of Directors of the Company (the "Board").
           The Board may appoint a Stock Plan Committee (the "Committee") of
           three or more of its members to administer this Plan. However, at
           least two members of the Committee appointed by the Board to
           administer the Plan and to perform the functions set forth herein
           must be "outside directors" within the meaning of Section 162(m) of
           the Code. If the Committee has been so appointed, no member of the
           Committee, while a member, shall be eligible to participate in the
           Plan or any other option plan of the Company. All references in this
           Plan to the "Committee" shall mean the Board if no Committee has been
           appointed. Subject to ratification of the grant or authorization of
           each ISO by the Board (if so required by applicable state law), and
           subject to the terms of the Plan, the Committee shall have the
           authority to determine the employees of the Company and Related
           Corporation (from among the class of employees eligible under
           paragraph 3 to receive ISOs) to whom ISOs may be granted; (ii)
           determine the time or times at which ISOs may be granted; (iii)
           determine the option price of shares subject to each ISO, which price
           shall not be less than the minimum price specified in paragraph 6;
           (iv) determine (subject to paragraph 7) the time or times when each
           ISO shall become exercisable and the duration of the exercise period;
           (v) determine whether restrictions such as repurchase options are to
           be imposed on shares subject to ISOs and the nature of such
           restrictions, if any, and (vi) interpret the Plan and prescribe and
           rescind rules and regulations relating to it. The interpretation and
           construction by the Committee of any provisions of the Plan or of any
           ISO granted under it shall be final unless otherwise determined by
           the Board. The Committee may from time to time adopt such rules and
           regulations for carrying out the Plan as it may deem best. No member
           of the Board or the Committee shall be liable for any action or
           determination made in good faith with respect to the Plan or any ISO
           granted under it.

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(1) The Plan has been amended to reflect the three-for-two forward stock split
(the "Stock Split") of the Company's Common Stock which became effective on
October 8, 1999, and all share amounts and per share prices provided herein have
been adjusted to reflect such Stock Split.

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                     B. COMMITTEE ACTIONS. The Committee may select one of its
           members as its chairman, and shall hold meetings at such time and
           place as it may determine. Acts by a majority of the Committee, or
           acts reduced to or approved in writing by a majority of the members
           of the committee, shall be the valid acts of the Committee. From time
           to time the Board may increase the size of the Committee and appoint
           additional members thereof, remove members (with or without cause)
           and appoint new members in substitution therefor, fill vacancies
           however caused, or remove all members of the Committee and thereafter
           directly administer the Plan.

                     C. GRANT OF ISOS TO BOARD MEMBERS. ISOs may not be granted
           to members of the Board under the terms of this Plan.

           3. ELIGIBLE EMPLOYEES. ISOs may be granted to any employee of the
Company or any Related Corporation who is a senior manager. Employees of the
Company who are not senior managers may not be granted ISOs under the Plan. The
Committee may take into consideration a recipient's individual circumstances in
determining whether to grant an ISO. Granting of any ISO to any individual or
entity shall neither entitle that individual or entity to, nor disqualify him
from, participation in any other grant of stock rights under any other plan of
the Company. For purposes of this Plan, a "senior manager" shall include (i) any
employee in the United States or Japan who holds the position of Corporate
Executive or Senior Director, and (ii) any employee in Europe who holds the
position of Country Manager or European Regional Manager.

           4. STOCK. The stock subject to ISOs shall be authorized but unissued
shares of Common Stock of the Company, no par value per share (the "Common
Stock"), or shares of the Common Stock reacquired by the Company in any manner.
The aggregate number of shares, on a post-split adjusted basis, which may issued
as ISOs pursuant to the Plan is 1,200,000, subject to adjustment as provided in
paragraph 13. If any ISO granted under the Plan expires or terminates for any
reason without having been exercised in full or ceases for any reason to be
exercisable in whole or in part, the unpurchased shares subject to such ISOs
shall again be available for grants of ISOs under the Plan. Subject to
adjustment as provided in paragraph 13, no employee shall be granted in any
calendar year ISOs to purchase more than 750,000 shares of Common Stock, on a
post-split adjusted basis.

           5. GRANTING OF ISOS. ISOs may be granted under the Plan at any time
on or after October 21, 1992 and prior to October 20, 2002. The date of grant of
an ISO under the Plan will be the date specified by the Committee at the time it
grants the ISO; provided, however, that such date shall not be prior to the date
on which the Committee acts to approve the grant. The Committee shall have the
right, with the consent of the optionee, to convert an ISO granted under the
Plan to a non-qualified option pursuant to paragraph 16.

           6. MINIMUM OPTION PRICE; ISO LIMITATIONS.

                     A. PRICE FOR ISOS. The exercise price per share specified
           in the agreement relating to each ISO granted under the Plan shall
           not be less than the fair market value per share of Common Stock on
           the date of such grant. In the case of an ISO to be granted to an
           employee owning stock possessing more than ten percent (10%) of the
           total combined voting power of all classes of stock on the Company or
           any Related Corporation, the price per share specified in the
           agreement relating to such ISO shall not

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            be less than one hundred ten percent (110%) of the fair market value
            per share of Common Stock on the date of grant.

                     B. $100,000 ANNUAL LIMITATION ON ISOS. Each eligible
           employee may be granted ISOs only to the extent that, in the
           aggregate under this Plan and all incentive stock option plans of the
           Company and any Related Corporation, such ISOs do not become
           exercisable for the first time by such employee during any calendar
           year in a manner which would entitle the employee to purchase more
           than $100,000 in fair market value (determined at the time the ISOs
           were granted) of Common Stock in that year. Any options granted to an
           employee in excess of such amount will be granted as non-qualified
           options.

                     C. DETERMINATION OF FAIR MARKET VALUE. If, at the time an
           ISO is granted under the Plan, the Common Stock is publicly traded,
           "fair market value" shall be determined as of the last business day
           for which the prices or quotes are available prior to the date such
           ISO is granted and shall mean (i) the average (on that date) of the
           high and low prices of the Common Stock on the principal national
           securities exchange on which the Common Stock is traded, if the
           Common Stock is then traded on a national securities exchange; or
           (ii) the last reported sale price (on that date) of the Common Stock
           on the Nasdaq National Market List, if the Common Stock is not then
           traded on a national securities exchange; or (iii) the closing bid
           price (or average of bid prices) last quoted (on that date) by an
           established quotation service for over-the-counter securities, if the
           Common Stock is not reported on the Nasdaq National Market List.
           However, if the Common Stock is not publicly traded at the time an
           ISO is granted under the Plan, "fair market value" shall be deemed to
           be the fair value of the Common Stock as determined by the Committee
           after taking into consideration all factors which it deems
           appropriate, including, without limitation, recent sale and offer
           prices of the Common Stock in private transactions negotiated at
           arm's length.

           7. OPTION DURATION. Subject to earlier termination as provided in
paragraphs 9 and 10, each ISO shall expire on the date specified by the
Committee, which date shall be no more than (i) ten years from the date of grant
in the case of ISOs other than those ISOs described in clause (ii), and (ii)
five years from the date of grant in the case of ISOs granted to an employee
owning stock possessing more than ten percent (10%) of the total combined voting
power of all classes of stock of the Company or any Related Corporation. Subject
to earlier termination as provided in paragraphs 9 and 10, the term of each ISO
shall be the term set forth in the original instrument granting such ISO, except
with respect to any part of such ISO that is converted into a non-qualified
option pursuant to paragraph 16.

           8. EXERCISE OF OPTION. Subject to the provisions of paragraphs 9
through 12, each ISO granted under the Plan shall be exercisable as follows:

                     A. VESTING.  The ISO shall either be fully exercisable on
           the date of grant or shall become exercisable thereafter in such
           installments as the Committee may specify.

                     B. FULL VESTING OF INSTALLMENTS. Once an installment
           becomes exercisable it shall remain exercisable until expiration or
           termination of the ISO, unless otherwise specified by the Committee.

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                     C. PARTIAL EXERCISE. Each ISO or installment may be
           exercised at any time or from time to time, in whole or in part, for
           up to the total number of shares with respect to which it is then
           exercisable.

                     D. ACCELERATION OF VESTING. The Committee shall have the
           right to accelerate the date of exercise of any installment of any
           ISO; provided that the Committee shall not, without the consent of an
           optionee, accelerate the exercise date of any installment of any ISO
           granted to any employee (and not previously converted into a
           non-qualified option pursuant to paragraph 16) if such acceleration
           would violate the annual vesting limitation contained in Section
           422(d) of the Code, as described in paragraph 6(B).

           9. TERMINATION OF EMPLOYMENT. If an ISO optionee ceases to be
employed by the Company and all Related Corporations other than by reason of
death or disability as defined in paragraph 10, no further installment of his
ISOs shall become exercisable, and his ISOs shall terminate after the passage of
ninety (90) days from the date of termination of his employment, but in no event
later than on their specified expiration dates, except to the extent that such
ISOs (or unexercised installments thereof) have been converted into
non-qualified options pursuant to paragraph 16. Employment shall be considered
as continuing uninterrupted during any bona fide leave of absence (such as those
attributable to illness, military obligations or governmental service) provided
that the period of such leave does not exceed 90 days or, if longer, any period
during which such optionee's right to reemployment is guaranteed by statute. A
bona fide leave of absence with the written approval of the Committee shall not
be considered an interruption of employment under the Plan, provided that such
written approval contractually obligates the Company or any Related Corporation
to continue the employment of the optionee after the approved period of absence.
ISO's granted under the Plan shall not be affected by any change of employment
within or among the Company and Related Corporations, so long as the optionee
continues to be an employee of the Company or any Related Corporation. Nothing
in the Plan shall be deemed to give any guarantee of any ISO the right to be
retained in employment or other service by the Company or any Related
Corporation for any period of time.

           10. DEATH; DISABILITY.

                     A. DEATH. If an ISO optionee ceases to be employed by the
           Company and all Related Corporations by reason of his death, any ISO
           of his may be exercised, to the extent of the number of shares with
           respect to which he could have exercised it on the date of his death,
           by his estate, personal representative or beneficiary who has
           acquired the ISO by will or by the laws of descent and distribution,
           at any time prior to the earlier of the specified expiration date of
           the ISO or 180 days from the date of the optionee's death.

                     B. DISABILITY. If an ISO optionee ceases to be employed by
           the Company and all Related Corporations by reason of his disability,
           he shall have the right to exercise any ISO held by him on the date
           of termination of employment, to the extent of the number of shares
           with respect to which he could have exercised it on that date, at any
           time prior to the earlier of the specified expiration date of the ISO
           or 180 days from the date of the termination of the optionee's
           employment. For the purposes of the Plan, the term "disability" shall
           mean "permanent and total disability" as defined in Section 22 (e)
           (3) of the Code or successor statute.

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           11. ASSIGNABILITY. No ISO shall be assignable or transferable by the
optionee except by will or by the laws of descent and distribution, and during
the lifetime of the optionee each ISO shall be exercisable only by him.

           12. TERMS AND CONDITIONS OF OPTIONS.

                     A. GENERAL TERMS AND CONDITIONS. ISOs shall be evidenced by
           instruments (which need not be identical) in such forms as the
           Committee may from time to time approve. Such instruments shall
           conform to the terms and conditions set forth in paragraphs 6 through
           11 of this Plan and may contain such other provisions as the
           Committee deems advisable which are not inconsistent with the Plan,
           including restrictions applicable to shares of Common stock issuable
           upon exercise of Options. The Committee may from time to time confer
           authority and responsibility on one or more of its own members and/or
           one or more officers of the Company to execute and deliver such
           instruments. The proper officers of the Company are authorized and
           directed to take any and all action necessary or advisable from time
           to time to carry out the terms of such instruments.

                     B. SPECIAL TERMS AND CONDITIONS. Without limiting the
           generality of paragraph 12(A), the Committee may include in any such
           instrument described in paragraph 12(A) one or more of the following
           provisions:

                     1. ADDRESSING THE BEHAVIOR OF INDIVIDUALS

                     "The exercise of any Option after termination of employment
           shall be subject to satisfaction of the condition precedent that the
           optionee neither takes other employment nor renders services to
           others without the written consent of the Company, nor conducts
           himself/herself in a manner adversely affecting the Company."

                     2. LIMITING PUBLIC COMMENTS

                     "You agree not to make any false, misleading, or negative
           statements, either orally or in writing, about the Company, its
           Directors or organizations they represent, or its Officers or to
           otherwise disparage them or any of them, and Dendrite's Directors and
           the organizations they represent, and its Executive Officers, agree
           not to make any false, misleading or negative statements, either
           orally or in writing, about you or to otherwise disparage you. The
           appropriate liquidated damages for each such incident will be
           $25,000.00."

                     3. FORFEITURE OF BENEFITS

                     "The optionee acknowledges that a material part of the
           inducement for the Company to enter into this agreement is the
           optionee's covenants with respect to non-competition and
           non-disparagement set forth in this agreement. The optionee agrees
           that if he shall breach any of those covenants, the Company shall
           have no further obligation to pay the optionee any benefits otherwise
           payable hereunder (except as may otherwise be required at law) and
           shall be entitled to such other legal and equitable relief as a court

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           or arbitrator shall reasonably determine, unless such breach is an
           inadvertent breach that does not result in any significant harm to
           the Company."

           13. ADJUSTMENTS. Upon the occurrence of any of the events described
in subparagraphs A, B or D below, an optionee's rights with respect to ISOs
granted to him under this Plan (and the securities reserved for issuance
hereunder), shall be adjusted as provided in this paragraph unless otherwise
specifically provided in the written agreement between the optionee and the
Company relating to such ISO:

                     A. ADJUSTMENTS IN CAPITALIZATION. Subject to any specific
           provisions in paragraph B below, in the event of any change in the
           outstanding shares of Common Stock (including any increase or
           decrease in such shares) by reason of any stock dividend or split,
           recapitalization, merger, consolidation, spin-off, combination or
           exchange of shares or other similar corporate change, or any
           distributions to common stockholders other than regular cash
           dividends, the Committee, the Board or the board of directors of any
           entity assuming the obligations of the Company hereunder (the
           "Successor Board") may make such substitution or adjustment, if any,
           as it deems to be equitable, as to the number or kind of shares of
           Common Stock or other securities reserved for issuance pursuant to
           the Plan, or subject to outstanding ISOs, and to any other terms and
           conditions of outstanding ISOs including the ISO exercise price.

                     B. CONSOLIDATIONS OR MERGERS. If the Company is to be
           consolidated with or acquired by another entity in a merger, sale of
           all or substantially all of the Company's assets or otherwise (an
           "Acquisition"), the Committee, the Board, or the Successor Board,
           shall, as to outstanding ISOs, either (i) make appropriate provision
           for the continuation of such ISOs by substituting on a equitable
           basis for the shares then subject to such ISOs the consideration
           payable with respect to the outstanding shares of Common Stock in
           connection with the Acquisition; or (ii) upon written notice to the
           optionees, provide that all ISOs must be exercised, to the extent
           then exercisable, within a specified number of days of the date of
           such notice, at the end of which period the ISOs shall terminate; or
           (iii) terminate all ISOs in exchange for a cash payment equal to the
           excess of the fair market value of the shares subject to such ISOs
           (to the extent then exercisable) over the exercise price thereof; or
           (iv) upon written notice to the optionees, provide that all ISOs
           shall be immediately exercisable in full regardless of any vesting
           schedule otherwise applicable.

                     C. MODIFICATION OF ISOS. Notwithstanding the foregoing, any
           adjustments made pursuant to subparagraphs A or B with respect to
           ISOs shall be made only after the Committee, after consulting with
           counsel for the Company, determines whether such adjustments would
           constitute a "modification" of such ISOs (as that term is defined in
           Section 424 of the Code) or would cause any adverse tax consequences
           for the holders of such ISOs. If the Committee determines that such
           adjustments made with respect to ISOs would constitute a modification
           of such ISOs, it may refrain from making such adjustments.

                     D. DISSOLUTION OR LIQUIDATION. In the event of the proposed
           dissolution or liquidation of the Company, each ISO will terminate
           immediately prior to the consummation of such proposed action or at
           such other time and subject to such other conditions as shall be
           determined by the Committee.

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                     E. FRACTIONAL SHARES. No fractional shares shall be issued
           under the Plan and the optionee shall receive from the Company cash
           in lieu of such fractional shares.

                     F. RESTRICTED COMMON STOCK. If any person or entity owning
           restricted Common Stock obtained by exercise of a ISO under this Plan
           receives shares or securities or cash in connection with a corporate
           transaction described in subparagraphs A or B above as a result of
           owning such restricted Common Stock such shares or securities or cash
           shall be subject to all of the conditions and restrictions applicable
           to the restricted Common Stock with respect to which such shares or
           securities or cash were issued, unless otherwise determined by the
           Committee or the Successor Board.

           14. MEANS OF EXERCISING ISOS. A ISO (or any part or installment
thereof) shall be exercised by giving written notice to the Company at its
principal office address. Such notice shall identify the ISO being exercised and
specify the number of shares as to which such ISO is being exercised,
accompanied by full payment of the purchase price therefor either (a) in United
States dollars in cash or by check, or (b) at the discretion of the Committee,
through delivery of shares of Common Stock having a fair market value equal as
of the date of the exercise to the cash exercise price of the ISO, or (c) at the
discretion of the Committee, by delivery of the grantee's personal recourse note
bearing interest payable not less than annually at not less than 100% of the
lowest applicable Federal rate, as defined in section 1274(d) of the Code, or
(d) at the discretion of the Committee, through a cash-less exercise procedure
established with a broker-dealer, or (e) at the discretion of the Committee, by
any combination of (a), (b), (c) and (d) above. If the Committee exercises its
discretion to permit payment of the exercise price of an ISO by means of the
methods set forth in clauses (b), (c), (d), or (e) of the preceding sentence,
such discretion shall be exercised in writing at the time of the grant of the
ISO in question. The holder of an ISO shall not have the rights of a shareholder
with respect to the shares covered by his ISO until the date of issuance of a
stock certificate to him for such shares. Except as expressly provided above in
paragraph 13 with respect to changes in capitalization and stock dividends, no
adjustment shall be made for dividends or similar rights for which the record
date is before the date such stock certificate is issued.

           15. TERM AND AMENDMENT OF PLAN. This Plan was adopted by the Board on
October 21, 1992, subject (with respect to the validation of ISOs granted under
the Plan) to approval of the Plan by the stockholders of the Company at the next
Meeting of Stockholders, or in lieu thereof, by written consent. If the approval
of stockholders is not obtained prior to October 20, 1993, any grants of ISOs
under the Plan made prior to that date will be rescinded. The Plan shall expire
at the end of the day on October 20, 2002 (except as to ISOs outstanding on that
date). Subject to the provisions of paragraph 5 above, ISOs may be granted under
the plan prior to the date of stockholder approval of the plan. The Board may
terminate or amend the Plan in any respect at any time, except that, without the
approval of the stockholders obtained within 12 months before or after the Board
adopts a resolution authorizing any of the following actions: (a) the total
number of shares that may be issued under the Plan may not be increased (except
by adjustment pursuant to paragraph 13); (b) the provisions of paragraph 3
regarding eligibility for grants of ISOs may not be modified; (c) the provisions
of paragraph 6(B) regarding the exercise price at which shares may be offered
pursuant to ISOs may not be modified (except by adjustment pursuant to paragraph
13); and (d) the expiration date of the Plan may not be extended. Except as
otherwise provided in this paragraph 15, in no event may any action of the
Committee, the Board or stockholders alter or impair the rights of a grantee,
without his consent,

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under any ISO previously granted to him. In the event of a conversion of any ISO
into a non-qualified option, all references to ISOs shall be deemed to apply, to
the extent appropriate, to such non-qualified option.

           16. CONVERSION OF ISOS INTO NON-QUALIFIED OPTIONS; TERMINATION OF
ISOS. The Committee, at the written request of any optionee, may in its
discretion take such actions as may be necessary to convert such optionee's ISOs
(or any installments or portions of installments there of) that have not been
exercised on the date of conversion into non-qualified options at any time prior
to the expiration of such ISOs, regardless of whether the optionee is an
employee of the Company or a Related Corporation at the time of such conversion.
Such actions may included, but not be limited to, extending the exercise period
or reducing the exercise price of the appropriate installments of such ISOs. At
the time of such conversion, the Committee (with the consent of the optionee)
may impose such conditions on the exercise of the resulting non-qualified
options as the Committee in its discretion may determine, provided that such
conditions shall not be inconsistent with this Plan. Nothing in the Plan shall
be deemed to give any optionee the right to have such optionee's ISOs converted
into non-qualified options, and no such conversion shall occur until and unless
the Committee takes appropriate action. The Committee, with the consent of the
optionee, may also terminate any portion of any ISO that has not been exercised
at the time of such conversion.

           17. APPLICATION OF FUNDS. The proceeds received by the Company from
the sale of shares pursuant to ISOs issued under the Plan shall be used for
general corporate purposes.

           18. GOVERNMENTAL REGULATION. The Company's obligation to sell and
deliver shares of the Common Stock under this Plan is subject to the approval of
any governmental authority required in connection with the authorization,
issuance or sale of such shares.

           19. WITHHOLDING OF ADDITIONAL INCOME TAXES. Upon the exercise of a
non-qualified option, or the making of a Disqualifying Disposition (as defined
in paragraph 20), the Company, in accordance with Section 3402(a) of the Code,
may require the optionee to pay additional withholding taxes in respect of the
amount that is considered compensation includible in such person's gross income.
The Committee in its discretion may condition the exercise of an ISO on the
grantee's payment of such additional withholding taxes.

           20. NOTICE TO COMPANY OF DISQUALIFYING DISPOSITION. Each employee who
receives an ISO must agree to notify the Company in writing immediately after
the employee makes a Disqualifying Disposition of any Common Stock acquired
pursuant to the exercise of an ISO. A Disqualifying Disposition is any
disposition (including any sale) of such Common Stock before the later of (a)
two years after the date the employee was granted the ISO, or (b) one year after
the date the employee acquired Common Stock by exercising the ISO. If the
employee has died before such stock is sold, these holding period requirement do
not apply and no Disqualifying Disposition can occur thereafter.

           21. GOVERNING LAW; CONSTRUCTION. The validity and construction of the
Plan and the instrument evidencing ISOs shall be governed by the Laws of the
State of New Jersey, without regard to the conflict of laws provisions thereof.
In construing this Plan, the singular shall include the plural and the masculine
gender shall include the feminine and neuter, unless the context otherwise
requires.

                                       8<PAGE>   1

                          DENDRITE INTERNATIONAL, INC.

                            1997 STOCK INCENTIVE PLAN

                     (AS AMENDED THROUGH MARCH 24, 2000(1))

           1.        Purpose.  The purpose of the Dendrite International, Inc.
1997 Stock Incentive Plan (the "Plan") is to enhance the ability of Dendrite
International, Inc. (the "Company") and its subsidiaries to attract and retain
employees, directors and consultants of outstanding ability and to provide
employees, directors and consultants with an interest in the Company parallel to
that of the Company's shareholders.

           2.        Definitions.

                               (a) "Award" shall mean an award determined in
accordance with the terms of the Plan.

                               (b) "Board" shall mean the Board of Directors of
the Company.

                               (c) "Change in Control" shall mean the occurrence
of any one of the following events:

                                          (i)       any "person" (as such term
           is defined in Section 3(a)(9) of the Exchange Act and as used in
           Sections 13(d)(3) and 14(d)(2) of the Exchange Act) is or becomes a
           "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act),
           directly or indirectly, of securities of the Company representing
           33-1/3% or more of the combined voting power of the Company's then
           outstanding securities eligible to vote for the election of the Board
           (the "Company Voting Securities"); provided, however, that the event
           described in this paragraph (i) shall not be deemed to be a Change in
           Control by virtue of any of the following acquisitions: (A) by the
           Company or any subsidiary, (B) by any employee benefit plan sponsored
           or maintained by the Company or any subsidiary, (C) by any
           underwriter temporarily holding securities pursuant to an offering of
           such securities, (D) pursuant to a Non-Control Transaction (as
           defined in paragraph (iii)), or (E) a transaction (other than one
           described in (iii) below) in which Company Voting Securities are
           acquired from the Company, if a majority of the Incumbent Board (as
           defined below) approves a resolution providing expressly that the
           acquisition pursuant to this clause (E) does not constitute a Change
           in Control under this paragraph (i);

                                          (ii)      individuals who, on the
           Effective Date, constitute the Board (the "Incumbent Board") cease
           for any reason to constitute at least a majority thereof, provided
           that any person becoming a director subsequent to the Effective Date,
           whose election or nomination for election was approved by a vote of
           at least two-thirds of the directors comprising the Incumbent Board
           (either by a specific vote or by approval of the proxy statement of
           the Company in which such person is named as a nominee for director,
           without objection to such nomination) shall be considered a member of
           the Incumbent Board; provided, however, that no individual initially
           elected or nominated as a director of the Company as a result of an
           actual or threatened election contest with

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(1) The Plan has been amended to reflect the three-for-two forward stock split
(the "Stock Split") of the Company's Common Stock which became effective on
October 8, 1999, and all share amounts and per share prices provided herein have
been adjusted to reflect such Stock Split.

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           respect to directors or any other actual or threatened solicitation
           of proxies or consents by or on behalf of any person other than the
           Board shall be deemed to be a member of the Incumbent Board;

                                          (iii)     the shareholders of the
           Company approve a merger, consolidation, share exchange or similar
           form of corporate reorganization of the Company or any such type of
           transaction involving the Company or any of its subsidiaries (whether
           for such transaction or the issuance of securities in the transaction
           or otherwise) (a "Business Combination"), unless immediately
           following such Business Combination: (A) more than 50% of the total
           voting power of the publicly traded corporation resulting from such
           Business Combination (including, without limitation, any corporation
           which directly or indirectly has beneficial ownership of 100% of the
           Company Voting Securities or all or substantially all of the assets
           of the Company and its subsidiaries) eligible to elect directors of
           such corporation would be represented by shares that were Company
           Voting Securities immediately prior to such Business Combination
           (either by remaining outstanding or being converted), and such voting
           power would be in substantially the same proportion as the voting
           power of such Company Voting Securities immediately prior to the
           Business Combination, (B) no person (other than any publicly traded
           holding company resulting from such Business Combination, any
           employee benefit plan sponsored or maintained by the Company (or the
           corporation resulting from such Business Combination), or any person
           which beneficially owned, immediately prior to such Business
           Combination, directly or indirectly, 33-1/3% or more of the Company
           Voting Securities (a "Company 33-1/3% Stockholder")) would become the
           beneficial owner, directly or indirectly, of 33-1/3% or more of the
           total voting power of the outstanding voting securities eligible to
           elect directors of the corporation resulting from such Business
           Combination and no Company 33-1/3% Stockholder would increase its
           percentage of such total voting power, and (C) at least a majority of
           the members of the board of directors of the corporation resulting
           from such Business Combination would be members of the Incumbent
           Board at the time of the Board's approval of the execution of the
           initial agreement providing for such Business Combination (a
           "Non-Control Transaction"); or

                                          (iv)      the shareholders of the
           Company approve a plan of complete liquidation or dissolution of the
           Company or the sale or disposition of all or substantially all of the
           Company's assets.

           Notwithstanding the foregoing, a Change in Control of the Company
shall not be deemed to occur solely because any person acquires beneficial
ownership of more than 33-1/3% of the Company Voting Securities as a result of
the acquisition of Company Voting Securities by the Company which, by reducing
the number of Company Voting Securities outstanding, increases the percentage of
shares beneficially owned by such person; provided, that if a Change in Control
of the Company would occur as a result of such an acquisition by the Company (if
not for the operation of this sentence), and after the Company's acquisition
such person becomes the beneficial owner of additional Company Voting Securities
that increases the percentage of outstanding Company Voting Securities
beneficially owned by such person, then a Change in Control of the Company shall
occur.

                               (d)        "Code" shall mean the Internal Revenue
Code of 1986, as amended.

                               (e)        "Committee" shall mean a committee of
at least two members of the Board appointed by the Board to administer the Plan
and to perform the functions set forth herein and

                                      -2-
<PAGE>   3

who are "non-employee directors" within the meaning of Rule 16b-3 as promulgated
under Section 16 of the Exchange Act and who are also "outside directors" within
the meaning of Section 162(m) of the Code.

                               (f)        "Common Stock" shall mean the common
stock, no par value per share, of the Company.

                               (g)        "Exchange Act" shall mean the
Securities Exchange Act of 1934, as amended.

                               (h)        "Fair Market Value" per share as of a
particular date shall mean the last reported sale price (on the day immediately
preceding such date) of the Common Stock on the Nasdaq National Market List.

                               (i)        "Immediate Family Member" shall mean,
except as otherwise determined by the Committee, a Participant's children,
stepchildren, grandchildren, parents, stepparents, grandparents, spouse,
siblings, in-laws and persons related by reason of legal adoption.

                               (j)        "Incentive Stock Option" shall mean a
stock option which is intended to meet the requirements of Section 422 of the
Code.

                               (k)        "Non-Employee Director" shall mean a
member of the Board who is not an employee of the Company or any Subsidiary.

                               (l)        "Nonqualified Stock Option" shall mean
a stock option which is not intended to be an Incentive Stock Option.

                               (m)        "Option" shall mean either an
Incentive Stock Option or a Nonqualified Stock Option.

                               (n)        "Participant" shall mean an employee,
director or consultant of the Company or its Subsidiaries who is selected to
participate in the Plan in accordance with Section 5.

                               (o)        "Subsidiary" shall mean any subsidiary
of the Company that is a corporation and which at the time qualifies as a
"subsidiary corporation" within the meaning of Section 424(f) of the Code.

                     3. Shares Subject to the Plan. Subject to adjustment in
accordance with Section 16, the total of the number of shares of Common Stock
which shall be available for issuance pursuant to the grant of Awards under the
Plan shall not exceed 6,000,000 shares, on a post-split adjusted basis;
provided, that for purposes of this limitation, any Option which is canceled or
expires without exercise shall again become available for Awards under the Plan.
Upon forfeiture of Awards in accordance with the provisions of the Plan, and the
terms and conditions of the Award, such shares shall no longer be counted in any
determination of the number of shares available under the Plan and shall be
available for subsequent Awards. To the extent that the exercise price of any
Option granted under the Plan is satisfied by tendering shares of Common Stock
to the Company (either by actual delivery or by attestation), then subject to
the requirements of Section 422 of the Code in connection with any
stock-for-stock exercise of Incentive Stock Options, only the number of shares
of Common Stock issued, net of the shares tendered, shall be deemed delivered
for purposes of determining the total number of shares of Common Stock available
for issuance under the Plan. Subject to adjustment in accordance with Section
16, no employee shall be granted in any calendar year Options to purchase more
than 1,500,000 shares of Common Stock.

                                      -3-
<PAGE>   4

Shares of Common Stock available for issue or distribution under the Plan shall
be authorized and unissued shares or shares reacquired by the Company in any
manner.

                     4.        Administration. (a) The Plan shall be
administered by the Committee.

                               (b)        The Committee shall (i) approve the
selection of Participants, (ii) determine the type of Awards to be made to
Participants, (iii) determine the number of shares of Common Stock subject to
Awards, (iv) determine the terms and conditions of any Award granted hereunder
(including, but not limited to, any restriction and forfeiture conditions on
such Award) and (v) have the authority to interpret the Plan, to establish,
amend, and rescind any rules and regulations relating to the Plan, to determine
the terms and provisions of any agreements entered into hereunder, and to make
all other determinations necessary or advisable for the administration of the
Plan. The Committee may correct any defect, supply any omission or reconcile any
inconsistency in the Plan or in any Award in the manner and to the extent it
shall deem desirable to carry it into effect.

                               (c)        Any action of the Committee shall be
final, conclusive and binding on all persons, including the Company and its
Subsidiaries and shareholders, Participants and persons claiming rights from or
through a Participant.

                               (d)        The Committee may delegate to officers
or employees of the Company or any Subsidiary, and to service providers, the
authority, subject to such terms as the Committee shall determine, to perform
administrative functions with respect to the Plan and Award agreements.

                               (e)        Members of the Committee and any
officer or employee of the Company or any Subsidiary acting at the direction of,
or on behalf of, the Committee shall not be personally liable for any action or
determination taken or made in good faith with respect to the Plan, and shall,
to the extent permitted by law, be fully indemnified by the Company with respect
to any such action or determination.

                     5.        Eligibility.  Individuals eligible to receive
Awards under the Plan shall be the directors, officers, other key employees and
selected consultants of the Company and its Subsidiaries selected by the
Committee. In addition, all Non-Employee Directors shall be eligible to receive
Options as provided in Section 9 hereof.

                     6.        Awards.  Awards under the Plan may consist of
Options, stock awards or other awards based on the value of the Common Stock.
Awards shall be subject to the terms and conditions of the Plan and shall be
evidenced by an agreement containing such additional terms and conditions, not
inconsistent with the provisions of the Plan, as the Committee shall deem
desirable.

                     7.        Options.  Options may be granted under the Plan
in such form as the Committee may from time to time approve pursuant to terms
set forth in an Option agreement. The Committee may alter or waive, at any time,
any term or condition of an Option that is not mandatory under the Plan.

                               (a)        Types of Options.  Each Option
agreement shall state whether or not the Option will be treated as an Incentive
Stock Option or Nonqualified Stock Option. Incentive Stock Options shall only be
granted to employees of the Company and its Subsidiaries.

                               (b)        Option Price.  The purchase price per
share of the Common Stock purchasable under an Option shall be determined by the
Committee, but in the case of Incentive Stock Options, the Option price will be
not less than 100% of the Fair Market Value of the Common Stock on the date of
the grant of the Option and in the case of Incentive Stock Options granted to an
employee

                                      -4-
<PAGE>   5

owning stock possessing more than 10% of the total combined voting power of all
classes of stock of the Company and its Subsidiaries (a "10% Shareholder") the
price per share specified in the agreement relating to such Option shall not be
less than 110% of the Fair Market Value per share of the Common Stock on the
date of grant.

                               (c)        Option Period.  The term of each
Option shall be fixed by the Committee, but no Option shall be exercisable after
the expiration of 10 years from the date the Option is granted, provided,
however, that in the case of Incentive Stock Options granted to 10%
Shareholders, the term of such Option shall not exceed 5 years from the date of
grant.

                               (d)        Exercisability. Each Option shall vest
and become exercisable at a rate determined by the Committee at or subsequent to
grant.

                               (e)        Method of Exercise.  Options may be
exercised, in whole or in part, by giving written notice of exercise to the
Company specifying the number of shares of Common Stock to be purchased. Such
notice shall be accompanied by the payment in full of the Option purchase price.
Such payment shall be made: (a) in cash, or (b) to the extent authorized by the
Committee, by surrender of shares of Common Stock owned by the holder of the
Option, or (c) through simultaneous sale through a broker of shares acquired on
exercise, as permitted under Regulation T of the Federal Reserve Board, or (d)
through additional methods prescribed by the Committee, or (e) by a combination
of any such methods.

                     8.        Stock Awards.  Subject to such performance and
employment conditions as the Committee may determine, awards of Common Stock or
awards based on the value of the Common Stock may be granted either alone or in
addition to Options granted under the Plan. Any Awards under this Section 8 and
any Common Stock covered by any such Award may be forfeited to the extent so
provided in the Award agreement, as determined by the Committee.

                     9.        Non-Employee Director Stock Options.

                               (a)        Initial Grant.  Nonqualified Stock
Options to purchase 30,000 shares of Common Stock shall be granted automatically
to each Non-Employee Director who is a Non-Employee Director on the day the
Board approves the adoption of the Plan. With respect to each person who becomes
a Non-Employee Director after such date, Nonqualified Stock Options shall be
granted to each such Non-Employee Director on the day he or she first becomes a
Non-Employee Director. The number of shares of Common Stock to be subject to
such Options granted under this Section 9(a), the exercise price, and all other
terms (not inconsistent with the Plan) of such Options, shall be determined by
the Committee or the Board in their discretion.

                               (b)        Subsequent Options.  In addition to
the Nonqualified Stock Options granted to Non-Employee Directors under Section
9(a), Nonqualified Stock Options may be granted from time to time to each
Non-Employee Director. The number of shares of Common Stock to be subject to
such Options granted under this Section 9(b), the exercise price, and all other
terms (not inconsistent with the Plan) of such Options, shall be determined by
the Committee or the Board in their discretion.

                               (c)        Option Price.  The purchase price for
each Option granted under this Section 9 to a Non-Employee Director shall be the
Fair Market Value of the Common Stock on the date of grant of the Option.

                                      -5-
<PAGE>   6

                               (d)        Exercisability.  Each Initial Option
and Subsequent Option granted under this Section 9 shall become exercisable and
vest on the first anniversary of the date of grant of such Option.

                               (e)        Method of Exercise.  Each Option
granted under this Section 9 may be exercised in the same manner as provided in
Section 7(e).

                               (f)        Option Period.  Each Option granted
under this Section 9 shall terminate 10 years from the date of grant unless
sooner terminated by reason of termination of service as a director of the
Company and its Subsidiaries.

                               (g)        Termination of Director Status.

                                          (i)       In the event of termination
           of service as a director of the Company and its Subsidiaries for any
           reason other than cause, death or permanent disability (as determined
           by the Committee), an Option granted under this Section 9 (to the
           extent exercisable as of the date of termination) shall be
           exercisable for the remaining term of the Option and shall thereafter
           terminate.

                                          (ii)      In the event of the death of
           a Non-Employee Director while a director of the Company or any
           Subsidiaries, the Option (to the extent exercisable as of the date of
           death), shall be exercisable by any prior transferee or by the
           Non-Employee Director's designated beneficiary, or if none, the
           person(s) to whom such Non-Employee Director's rights under the
           Option are transferred by will or the laws of descent and
           distribution for 180 days following the date of death (but in no
           event beyond the term of the Option), and shall thereafter terminate.

                                          (iii)     In the event of the
           termination of service as a director of the Company and its
           Subsidiaries due to permanent disability (as determined by the
           Committee), the Option (to the extent exercisable as of the date of
           termination), shall be exercisable for 180 days following such
           termination of service (but in no event beyond the term of the
           Option), and shall thereafter terminate.

                                          (iv)      In the event of the
           termination of service as a director of the Company and its
           Subsidiaries for cause (as determined by the Committee in its sole
           discretion), the Option shall terminate upon such termination of
           status as director, regardless of whether the Option was then
           exercisable.

                               (h)        Except as expressly provided in this
Section 9, any Option granted to a Non-Employee Director hereunder shall be
subject to the terms and conditions of the Plan.

                     10.       Change in Control.  Upon the occurrence of a
Change in Control, all Options shall automatically become vested and exercisable
in full and all restrictions or conditions, if any, on any stock awards granted
hereunder shall automatically lapse. The Committee may, in its discretion,
include such further provisions and limitations in any agreement documenting
such Options as it may deem equitable and in the best interests of the Company.

                     11.       Forfeiture.  Notwithstanding anything in the Plan
to the contrary, the Committee may provide in any Award agreement that in the
event of a serious breach of conduct by the person granted such Award
(including, without limitation, any conduct prejudicial to or in conflict with
the Company or its Subsidiaries), or any activity of any such person in
competition with any of the businesses

                                      -6-
<PAGE>   7

of the Company or any Subsidiary, (a) cancel any outstanding Award granted to
such person, in whole or in part, whether or not vested, and/or (b) if such
conduct or activity occurs within 1 year following the exercise or payment of an
Award, require such person to repay to the Company any gain realized or payment
received upon the exercise or payment of such Award (with such gain or payment
valued as of the date of exercise or payment). Such cancellation or repayment
obligation shall be effective as of the date specified by the Committee. Any
repayment obligation may be satisfied in Common Stock or cash or a combination
thereof (based upon the Fair Market Value of Common Stock on the day prior to
the date of payment), and the Committee may provide for an offset to any future
payments owed by the Company or any Subsidiary to such person if necessary to
satisfy the repayment obligation. The determination of whether any such person
has engaged in a serious breach of conduct or any activity in competition with
any of the businesses of the Company or any Subsidiary shall be determined by
the Committee in good faith and in its sole discretion. This Section 11 shall
have no application following a Change in Control.

                     12.       Withholding.  The Company shall have the right to
deduct from any payment to be made pursuant to the Plan the amount of any taxes
required by law to be withheld therefrom, or to require a Participant to pay to
the Company in cash such amount required to be withheld prior to the issuance or
delivery of any shares of Common Stock or the payment of cash under the Plan.
Such taxes may be paid by (a) delivering previously owned shares of Common Stock
or (b) having the Company retain shares of Common Stock which would otherwise be
delivered upon exercise or payment of Awards or (c) any combination of a cash
payment or the methods set forth in (a) and (b) above. For purposes of (a) and
(b) above, shares of Common Stock shall be valued at Fair Market Value
determined as of the day immediately prior to exercise or payment. If and to the
extent authorized by the Committee, the Company may, upon election by a
Participant, withhold from any distribution of Common Stock hereunder shares of
Common Stock with a Fair Market Value in excess of the Participant's required
withholding obligation.

                     13.       Nontransferability, Beneficiaries.  Unless
otherwise determined by the Committee with respect to the transferability of
Nonqualified Stock Options by a Participant to his Immediate Family Members (or
to trusts or partnerships or limited liability companies established for such
family members), no Award shall be assignable or transferable by the
Participant, otherwise than by will or the laws of descent and distribution or
pursuant to a beneficiary designation, and Options shall be exercisable, during
the Participant's lifetime, only by the Participant (or by the Participant's
legal representatives in the event of the Participant's incapacity). Each
Participant may designate a beneficiary to exercise any Option held by the
Participant at the time of the Participant's death or to be assigned any other
Award outstanding at the time of the Participant's death. If no beneficiary has
been named by a deceased Participant, any Award held by the Participant at the
time of death shall be transferred as provided in his will or by the laws of
descent and distribution. Except in the case of the holder's incapacity, an
Option may only be exercised by the holder thereof.

                     14.       No Right to Employment.  Nothing contained in the
Plan or in any Award under the Plan shall confer upon any employee any right
with respect to the continuation of employment with the Company or any of its
Subsidiaries, or interfere in any way with the right of the Company to terminate
his or her employment at any time. Nothing contained in the Plan shall confer
upon any employee or other person any claim or right to any Award under the
Plan.

                     15.       Governmental Compliance.  Each Award under the
Plan shall be subject to the requirement that if at any time the Committee shall
determine that the listing, registration or qualification of any shares issuable
or deliverable thereunder upon any securities exchange or under any Federal or
state law, or the consent or approval of any governmental regulatory body, is
necessary or desirable as a condition thereof, or in connection therewith, no
such grant or award may be exercised or shares issued or

                                      -7-
<PAGE>   8

delivered unless such listing, registration, qualification, consent or approval
shall have been effected or obtained free of any conditions not acceptable to
the Committee.

                     16.       Adjustments.  In the event of any change in the
outstanding shares of Common Stock by reason of any stock dividend or split,
recapitalization, merger, consolidation, spinoff, combination or exchange of
shares or other corporate change, or any distribution to holders of Common Stock
other than regular cash dividends, the number or kind of shares available for
Options and Awards under the Plan may be adjusted by the Committee as it shall
in its sole discretion deem equitable and the number and kind of shares subject
to any outstanding Awards granted under the Plan and the purchase price thereof
may be adjusted by the Committee as it shall in its sole discretion deem
equitable to preserve the value of such Awards.

                     17.       Award Agreement.  Each Award under the Plan shall
be evidenced by an agreement setting forth the terms and conditions, as
determined by the Committee, which shall apply to such Award, in addition to the
terms and conditions specified in the Plan.

                     18.       Amendment.  The Board may amend, suspend or
terminate the Plan or any portion thereof at any time, provided that (a) except
as provided in Section 16, no amendment shall be made that would adversely
affect the rights of a Participant under an Award theretofore granted, without
such Participant's written consent and (b) if and when the Plan is approved by
the shareholders of the Company, no amendment made after such approval shall be
made without shareholder approval if such approval is necessary to comply with
any applicable law, regulation or stock exchange rule.

                     19.       General Provisions.

                               (a)        The Committee may require each
Participant purchasing or acquiring shares pursuant to an Award under the Plan
to represent to and agree with the Company in writing that such Participant is
acquiring the shares for investment and without a view to distribution thereof.

                               (b)        All certificates for shares of Common
Stock delivered under the Plan pursuant to any Award shall be subject to such
stock-transfer orders and other restrictions as the Committee may deem advisable
under the rules, regulations, and other requirements of the Securities and
Exchange Commission, any stock exchange upon which the Common Stock is then
listed, and any applicable Federal or state securities law, and the Committee
may cause a legend or legends to be put on any such certificates to make
appropriate reference to such restrictions. If the Committee determines that the
issuance of shares of Common Stock hereunder is not in compliance with, or
subject to an exemption from, any applicable Federal or state securities laws,
such shares shall not be issued until such time as the Committee determines that
the issuance is permissible.

                               (c)        It is the intent of the Company that
the Plan satisfy, and be interpreted in a manner that satisfies, the applicable
requirements of Rule 16b-3 as promulgated under Section 16 of the Exchange Act
so that Participants will be entitled to the benefit of Rule 16b-3, or any other
rule promulgated under Section 16 of the Exchange Act, and will not be subject
to short-swing liability under Section 16. Accordingly, if the operation of any
provision of the Plan would conflict with the intent expressed in this Section
19(c), such provision to the extent possible shall be interpreted and/or deemed
amended so as to avoid such conflict.

                               (d)        Except as otherwise provided by the
Committee in the applicable grant or Award agreement, a Participant shall have
no rights as a shareholder with respect to any shares of Common Stock subject to
Options until a certificate or certificates evidencing shares of Common Stock
shall have been issued to the Participant and, subject to Section 16, no
adjustment shall be made for

                                      -8-
<PAGE>   9

dividends or distributions or other rights in respect of any share for which the
record date is prior to the date on which Participant shall become the holder of
record thereof.

                               (e)       The law of the State of New Jersey
shall apply to all Awards and interpretations under the Plan regardless of the
effect of such state's conflict of laws principles.

                               (f)       Where the context requires, words in
any gender shall include any other gender.

                     20.       Term of Plan. Subject to earlier termination
pursuant to Section 18, the Plan shall have a term of 10 years from its
Effective Date.

                     21.       Effective Date. The Plan is effective as of July
24, 1997.

                                      -9-

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