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                                                                    EXHIBIT 10.2

                          DELPHI FINANCIAL GROUP, INC.
                SECOND AMENDED AND RESTATED DIRECTORS STOCK PLAN

Delphi Financial Group, Inc. (the "Company") has adopted the Second Amended and
Restated Delphi Financial Group, Inc. Directors Stock Plan effective April 1,
2003, subject to the approval of the stockholders of the Company. This Plan
amends and restates the Company's Amended and Restated Directors Plan, as
amended.

1.       PURPOSE

This Amended and Restated Directors Stock Plan (the "Plan") is intended to
increase the proprietary interest in Delphi Financial Group, Inc. (the
"Company") of outside directors of the Company, i.e., directors who are not
officers or employees of the Company or its subsidiaries, whose continued
services are important to the continued success of the Company, thereby
providing them with additional incentive to continue to serve as directors. The
Plan provides for the issuance of nonqualified stock options ("Options") and
Restricted Shares, as set forth below. The Plan shall be effective upon its
approval by the stockholders of the Company (as provided in Section 10 below).

2.       ADMINISTRATION

Except as to discretionary grants of Options pursuant to Section 5(B), the Plan
shall be substantially self-executing. Such discretionary grants, and any
administrative determinations regarding the Plan that may be required to be
made, shall be made pursuant to the affirmative vote of a majority of the
members of a committee consisting of the members of the Company's Board of
Directors (the "Committee"). All ministerial matters relating to the Plan shall
be performed by or at the direction of the Committee.

3.       ELIGIBILITY

The persons who shall receive Options or Restricted Shares (the "Participants")
shall be members of the Company's Board of Directors who are not officers or
employees of the Company or any of its subsidiaries ("Subsidiaries"), as that
term is defined by Section 424(f) of the Internal Revenue Code of 1986, as
amended from time to time (the "Code"). Persons eligible to be Participants are
sometimes referred to herein as "Outside Directors."

4.       STOCK

The stock subject to the Options and Restricted Shares (collectively, the
"Awards") shall be shares (the "Shares") of the Company's authorized but
unissued or reacquired Class A common stock, par value $.01 per share. The
aggregate number of Shares as to which Awards may be granted shall not exceed
450,000. The limitation established by the preceding sentence shall be subject
to adjustment as provided in Section 5(F) of the Plan. In the event that any
outstanding Award under the Plan for any reason expires, terminates or is
cancelled, the Shares allocable to the unexercised portion of an Option or the
unvested portion of Restricted Shares will again be available for Awards
thereafter made under the Plan.

5.       TERMS AND CONDITIONS OF AWARDS

         A. OPTION GRANTS. Options shall automatically be granted under the Plan
as follows:

                  (i)      On the day immediately following the date on which
the Plan is approved by the stockholders of the Company (as provided in Section
10 below), and thereafter on the first business day immediately following each
date on which the Company holds its annual meeting of stockholders (commencing
with the 2004 meeting), each Outside Director then in office will automatically
be awarded as of such date Options exercisable for a number of Shares determined
pursuant to the following formula: Number of Option Shares = 2,650 (with such
amount to be automatically proportionately adjusted to reflect the cumulative
effect of all events of the type referred to in Section 5(C)(ix) hereof having
occurred prior to such date) multiplied by [1 + (.125 multiplied by the number
of years of continuous years of service of such Outside Director to that point,
including any portion of a year of service, which shall be treated as a full
year)].

                  (ii)     Each Outside Director shall, on the first business
day following each date on which such director is elected, re-elected or
appointed, as applicable, to the Company's Board of Directors (such following
day, the "Award Date"), commencing with the elections to occur at the 2003
annual meeting of stockholders, be awarded Options in lieu of the cash amount
(the "Retainer Amount") that such director would be entitled to receive for
serving as such in the period from the Award Date up to the date of the
Company's next following annual meeting of stockholders, exclusive of meeting
fees, fees for serving on any committee of the Board, or fees associated with
any other services provided to the Company or its

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Subsidiaries. Such Options will be exercisable for the nearest number of whole
Shares determined pursuant to the following formula: Number of Option Shares =
(Retainer Amount multiplied by 3), divided by (Fair Market Value, as that term
is defined in Section 5(C)(ii) hereof, as of the award date). Notwithstanding
the foregoing, Options will not be awarded pursuant to this Section 5(A)(ii) if
the Outside Director files with the Secretary of the Company, on or prior to the
commencement of the calendar year in which the applicable Award Date is to
occur, a written election not to receive Options in lieu of the Retainer Amount
(other than the first Award Date following approval of the Plan and the Award
Date following the date on which such director is first elected or appointed, in
which case such election may be made at any time prior to such Award Date) and
instead to receive either cash or Restricted Shares, as set forth below. The
number of Restricted Shares credited to an Outside Director who elects such
Awards shall be the nearest number of whole Shares determined by dividing the
Retainer Amount (or, in the case of an Outside Director who has elected to
receive cash, the Retainer Amount to the extent it exceeds the maximum cash
payable) by the Fair Market Value of a Share on the Award Date.

         B. DISCRETIONARY OPTION GRANTS. Without limiting the operation of
Section 5(A) hereof, the Committee may also make discretionary Option grants to
Outside Directors hereunder. The Committee may determine in its discretion the
Outside Directors to whom any such Options are to be granted under this Plan,
the number of Shares to be subject to each such Option and the other terms and
conditions of such Options, consistent with the terms of the Plan.

         C. TERMS OF OPTIONS. Promptly after each award pursuant to Section 5(A)
or Section 5(B) hereof, a Notice of Award of Stock Option (an "Option Notice")
shall be given to each Optionee, which notice shall comply with and be subject
to the following terms and conditions:

                  (i)      NUMBER OF SHARES. Each Option Notice shall state the
number of Shares to which it pertains.

                  (ii)     OPTION PRICE. Each Option Notice shall state the
Option price per Share, which shall be 100% of the Fair Market Value of a Share
on the date of the grant of the Option (the "Option Price"). For purposes
hereof, "Fair Market Value" shall be the closing price on the applicable date of
a Share, as reported on the New York Stock Exchange (the "NYSE"), or, if the
Shares are not then listed for trading on the NYSE, the closing price of the
Shares as reported on another recognized securities exchange or on the NASDAQ
National Market System if the Shares shall then be listed on such exchange or
system. If the Shares did not trade on the award date on the NYSE or such other
applicable exchange or system, the Fair Market Value for purposes hereof shall
be the reported closing price on the last business day on which the Shares were
traded preceding the award date.

                  (iii)    PAYMENT OF OPTION PRICE. The Option Notice may
provide that the Optionee may make payment of the Option Price in cash, Shares
or such other consideration as may be specified therein or as may be acceptable
to the Committee, or any combination thereof, in an amount or having an
aggregate value, as the case may be, equal to the total Option Price. Such
payment shall be made upon exercise of the Option.

                  (iv)     TERM, TRANSFERABILITY AND EXERCISABILITY OF OPTIONS.

                           (a) Each Option Notice shall state the date on which
the Option shall expire (the "Expiration Date"), which shall be ten years from
the date on which the Option is awarded. Options are not assignable or
transferable by an Optionee other than by will or the laws of descent and
distribution, or pursuant to a qualified domestic relations order as defined by
the Code or by Title I of the Employee Retirement Income Security Act, or the
rules thereunder. Notwithstanding the foregoing, if provided in the applicable
Option Notice (at the time of grant or at any time thereafter), an Option
granted hereunder may be transferred for no consideration by the Optionee to
members of his or her immediate family, to a trust or trusts established for the
exclusive benefit only of one or more members of his or her immediate family or
to a partnership or other entity in which his or her immediate family members
are the only partners or owners. Any Option held by the transferee will continue
to be subject to the same terms and conditions that were applicable to the
Option immediately prior to the transfer, except that the Option will be
transferable by the transferee only by will or the laws of descent and
distribution. For purposes hereof, "immediate family" means the Optionee's
children, stepchildren, grandchildren, parents, stepparents, grandparents,
spouse, siblings (including half brothers and sisters), in-laws, and
relationships arising because of legal adoption.

                           (b) Options granted pursuant to Section 5(A)(i)
hereof shall become exercisable in five equal annual installments of twenty
percent (20%) per year. Options granted pursuant to Section 5(A)(ii) hereof
shall become exercisable in four substantially equal installments (without
taking into account any fractional share) on the dates which follow the date of
the grant by 90, 180, 270 and 360 days, respectively. Options granted pursuant
to Section 5(B) hereof shall become exercisable on such terms and conditions as
are established by the Committee and set forth in the Option Notice. Once
Options with respect to Shares become exercisable as aforesaid, they may be
exercised in whole or in part

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from time to time through the applicable Expiration Date, subject to the terms
and conditions hereof. Upon or in connection with a Change of Ownership, each
Optionee shall have the right, immediately prior to such Change of Ownership, to
exercise his or her Options without regard to the foregoing installment
provisions as to exercisability. For purposes of this Plan, a "Change of
Ownership" shall be deemed to have occurred (1) if individuals who, as of the
effective date of this Plan, constitute the Board of Directors of the Company
(the "Board of Directors" generally and as of the date hereof the "Incumbent
Board") cease for any reason to constitute at least a majority of the directors
constituting the Board of Directors, provided that any person becoming a
director subsequent to the effective date of this Plan whose election, or
nomination for election by the Company's shareholders, was approved by a vote of
at least three-quarters (3/4) of the then directors who are members of the
Incumbent Board (other than an election or nomination of an individual whose
initial assumption of office is (A) in connection with the acquisition by a
third person, including a "group" as such term is used in Section 13(d)(3) of
the Securities and Exchange Act of 1934, as amended (the "1934 Act"), of
beneficial ownership, directly or indirectly, of 20% or more of the combined
voting securities ordinarily having the right to vote for the election of
directors of the Company (unless such acquisition of beneficial ownership was
approved by a majority of the Board of Directors who are members of the
Incumbent Board), or (B) in connection with an actual or threatened election
contest relating to the election of the directors of the Company, as such terms
are used in Rule 14a-11 of Regulation 14A promulgated under the 1934 Act) shall
be, for purposes of this Plan, considered as though such person were a member of
the Incumbent Board; or (2) if the stockholders of the Company approve a merger,
consolidation, recapitalization or reorganization of the Company, reverse split
of any class of voting securities of the Company, or an acquisition of
securities or assets by the Company, or the sale or disposition by the Company
of all or substantially all of the Company's assets, or if any such transaction
is consummated without stockholder approval, other than any such transaction in
which the holders of outstanding Company voting securities immediately prior to
the transaction receive, with respect to such Company voting securities, voting
securities of the surviving or transferee entity representing more than 60
percent of the total voting power outstanding immediately after such
transaction, with the voting power of each such continuing holder relative to
other such continuing holders not substantially altered in the transaction; or
(3) if the stockholders of the Company approve a plan of complete liquidation of
the Company.

                           (c) At any time and from time to time when any Option
or portion thereof is exercisable, such Option or portion thereof may be
exercised in whole or in part, as applicable; provided, however, that the
Company shall not be required to issue fractional Shares.

                  (v)      TERMINATION OF SERVICE EXCEPT BY DEATH, DISABILITY,
RETIREMENT OR REMOVAL FOR CAUSE. In the event that the Optionee shall cease to
be an Outside Director for any reason other than death, disability, retirement
or removal for cause as further provided herein, Options granted pursuant to
Section 5(A)(i) and Section 5(B) hereof may be exercised only within three (3)
months after such termination of service or such longer period as may be
established by the Committee at the time of grant or thereafter. Sections
5(C)(vi) and 5(C)(viii) hereof shall not be construed to limit the right of an
Optionee (or, in the case of the death of an Optionee, the persons referenced in
the second sentence of Section 5(C)(vi)) to exercise Options granted pursuant to
Section 5(A)(ii) hereof prior to their Expiration Date. Notwithstanding anything
contained in this Plan to the contrary, any Option that is not exercisable on
the last day on which an Optionee is an Outside Director shall expire
immediately, and in no event shall any Option be exercised after its Expiration
Date.

                  (vi)     DEATH OR DISABILITY OF OPTIONEE. In the event an
Optionee shall die or become disabled while a director of the Company, Options
may be exercised at any time within one (1) year after the Optionee's death or
disability or such longer period as may be established by the Committee at the
time of grant or thereafter, but only to the extent that such Option was
exercisable by the Optionee on the last day on which the Optionee was an Outside
Director, and in no event may an Option be exercised after its Expiration Date.
During such one-year period, the Option may be exercised by the Optionee or a
representative, or in the case of death, by the executors or administrators of
the Optionee or by any person or persons who shall have acquired the Option
directly from the Optionee by bequest or inheritance. Whether an Optionee shall
have become disabled for the purposes of the Plan shall be determined by the
Committee, which determination shall be final and conclusive.

                  (vii)    REMOVAL FOR CAUSE. If an Optionee is removed as a
director of the Company on account of any act of (a) fraud or intentional
misrepresentation or (b) embezzlement, misappropriation or conversion of assets
or opportunities of the Company, or any unauthorized disclosure of confidential
information or trade secrets of the Company, all unexercised Options shall
terminate as of the date of such Optionee's removal.

                  (viii)   RETIREMENT. To the extent an Option was exercisable
on the last date of service as a director of the Company, such Option may be
exercised up to one (1) year following the Optionee's retirement at or after age
75 or such longer period as may be established by the Committee at the time of
grant or thereafter, but in no event may an Option be exercised after its
Expiration Date.

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                  (ix)     MODIFICATION, EXTENSION AND RENEWAL OF OPTIONS.
Subject to the terms and conditions and within the limitations of the Plan, the
Committee may modify, extend or renew outstanding Options granted under the
Plan, or accept the surrender of outstanding Options (to the extent not
theretofore exercised). Notwithstanding the foregoing, however, no modification
of an Option shall, without the consent of the Optionee, alter or impair any
rights or obligations under any Option theretofore granted under the Plan.

         D. RESTRICTED SHARES. Restricted Shares issued hereunder will vest in
four equal installments on the dates which follow the date of grant by 90, 180,
270 and 360 days, respectively. From and after the date of grant, the
Participant will be entitled to vote and receive dividends, if any, on the
Restricted Shares. In the event the Participant's service on the Board of
Directors ceases for any reason prior to a vesting date, the unvested Restricted
Shares shall be forfeited to the Company. Notwithstanding the foregoing, the
Restricted Shares shall vest in full upon a Change of Ownership (as defined
above). Prior to vesting, the Restricted Shares shall not be transferable other
than by will or the laws of descent and distribution or pursuant to a qualified
domestic relations order, as defined by the Code.

         E. RECAPITALIZATION, REORGANIZATION, ETC., OF COMPANY.

                  (i)      Subject to any required action by the stockholders,
the number of Shares covered by each outstanding Award, and the price per Share
of any Option so covered, shall automatically be proportionately adjusted for
any increase or decrease in the number of issued shares of Class A Common Stock
of the Company resulting from a subdivision or consolidation of Shares or the
payment of a stock dividend or any other increase or decrease in the number of
such shares effected without receipt of consideration by the Company.

                  (ii)     If, pursuant to any reorganization, recapitalization,
sale or exchange of assets, consolidation or merger, outstanding Class A Common
Stock of the Company is or would be exchanged for other securities of the
Company or of another corporation which is a party to such transaction, or for
property, whether or not any such transaction gives rise to a Change of
Ownership, any Awards under the Plan theretofore granted shall apply to the
securities or property into which the Class A Common Stock covered thereby shall
be so changed or for which such Class A Common Stock shall be exchanged. In any
of such events, the total number and class of Shares then remaining available
for issuance under the Plan (including Shares reserved for outstanding Awards
and Shares available for future grant of Awards under the Plan) shall likewise
be adjusted so that the Plan shall thereafter cover the number and class of
shares equivalent to the Shares covered by the Plan immediately prior to such
event.

                  (iii)    In the event of a change in the Class A Common Stock
of the Company as presently constituted, which is limited to a change of all of
its authorized shares with par value into the same number of shares with a
different par value or without par value, the shares resulting from any such
change shall be deemed to be the Class A Common Stock within the meaning of the
Plan.

                  (iv)     Adjustments pursuant to Section 5(F)(ii) hereof shall
be made by the Committee, whose determination as to which shall be final,
binding and conclusive.

                  (v)      Except as hereinbefore expressly provided in this
Section 5(F), a Participant shall have no rights by reason of any subdivision or
consolidation of shares of stock of any class or the payment of any stock
dividend or any other increase or decrease in the number of shares of stock of
any class or by reason of any dissolution, liquidation, merger or consolidation
or spin-off of assets or stock of another corporation, and any class, or
securities convertible into shares of stock of any class, shall not affect, and
no adjustment by reason thereof shall be made with respect to, the number or
price of shares of Class A Common Stock subject to the Award.

                  (vi)     The grant of an Award pursuant to the Plan shall not
affect in any way the right or power of the Company to make adjustments,
reclassifications, mergers, reorganizations or changes of its capital or
business structure, to merge or to consolidate, to dissolve or liquidate or to
sell or transfer all or any part of its business or assets.

         F. RIGHTS AS A STOCKHOLDER. No person shall have any rights as a
stockholder with respect to any Shares covered by an Option until the date of
the issuance of the Shares to such person. No adjustments shall be made to
outstanding Options for dividends (ordinary or extraordinary, whether in cash,
securities or other property) or distributions or other rights, except as
provided in Section 5(F) hereof.

         G. INVESTMENT PURPOSE. Each Award made under the Plan shall be granted
on the condition that any purchases of Shares hereunder shall be for investment
purposes and not with a view to resale or distribution, except that in the event
the Shares are registered under the Securities Act of 1933, as amended (the
"Act"), or in the event a resale of such Shares without such registration would
otherwise be permissible, such condition shall be inoperative if, in the opinion
of counsel

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for the Company, such condition is not required under the Act, or any other
applicable law, regulation or rule of any governmental agency.

         H. OTHER PROVISIONS. The Option Notice and the terms of other Awards
shall comply with and be subject to the terms and conditions of the Plan, and
shall contain such other terms, conditions and provisions as the Committee shall
deem advisable.

6.       TERM OF PLAN

Awards shall be granted pursuant to the Plan from time to time within the period
of ten years from the earlier of the date of adoption of the Plan and the date
on which the Plan is approved by the stockholders of the Company.

7.       AMENDMENT OF THE PLAN

The Board of Directors may, insofar as permitted by law, from time to time, with
respect to any Shares not then subject to Awards, suspend or discontinue the
Plan or revise or amend it in any respect whatsoever, subject to the approval of
the stockholders of the Company where such approval is required by law or
regulation or pursuant to the rules of the NYSE or, if the Shares are not listed
on the NYSE, the rules of any other exchange or market on which the Shares may
be traded.

8.       APPLICATION OF FUNDS

The proceeds received by the Company from the sale of shares pursuant to Options
will be used for general corporate purposes.

9.       NO OBLIGATION TO EXERCISE OPTION

The granting of an Option shall impose no obligation upon the Optionee to
exercise such Option.

10.      APPROVAL OF STOCKHOLDERS

This Plan shall be effective upon its approval by the stockholders of the
Company.

11.      NO RIGHT TO NOMINATION

Neither the Plan nor any action taken hereunder shall be construed as giving any
director any right to be nominated for reelection to the Company's Board of
Directors.

12.      EFFECT OF PLAN UPON OTHER OPTIONS AND COMPENSATION PLANS

The adoption of this Plan shall not affect any other compensation or incentive
plans in effect for the Company or any Subsidiary. Nothing in this Plan shall be
construed to limit the right of the Company or any Subsidiary to (a) establish
any other forms of incentives or compensation for employees or directors of or
persons associated with the Company or any Subsidiary, or (b) grant or assume
options otherwise than under this Plan in connection with any proper corporate
purpose, including, but not by way of limitation, the grant or assumption of
options in connection with the acquisition by purchase, lease, merger,
consolidation or otherwise, of the business, stock or assets of any corporation,
firm or association.

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                                                                    EXHIBIT 10.3

                          DELPHI FINANCIAL GROUP, INC.

                              AMENDED AND RESTATED

                   LONG-TERM PERFORMANCE-BASED INCENTIVE PLAN

1.       PURPOSE

The purpose of this Amended and Restated Long-Term Performance-Based Incentive
Plan (the "Plan") is to advance the interests of Delphi Financial Group, Inc.
(the "Company") by providing Mr. Robert Rosenkranz, Chairman, President and
Chief Executive Officer of the Company, with a compensation arrangement that may
be utilized to reward him for his contributions to the performance of the
Company and enhancement of the interests of the Company's stockholders, subject
to the terms of the Plan. Subject to stockholder approval as set forth in
Section 3 hereof, the Plan will replace and supersede the Long-Term
Performance-Based Incentive Plan previously adopted by the Company and approved
by the stockholders of the Company on May 13, 1997 (the "Predecessor Plan").

The Plan is intended to accomplish these goals by enabling the Company to grant
Awards in the form of Restricted Stock, Deferred Shares, or Options, or a
combination of each type of Award, all as more fully described below.

2.       ADMINISTRATION

Unless otherwise determined by the Board of Directors of the Company (the
"Board"), the Plan will be administered by a Committee of the Board designated
for such purpose (the "Committee"). The Committee shall consist of at least two
directors. A majority of the members of the Committee shall constitute a quorum,
and all determinations of the Committee shall be made by a majority of its
members. Any determination of the Committee under the Plan may be made without
notice or meeting of the Committee by a writing signed by a majority of the
Committee members. So long as the Company's Class A common stock (the "Stock")
is registered under the Securities Exchange Act of 1934, as amended (the "1934
Act"), all members of the Committee shall be Non-Employee Directors within the
meaning of Rule 16b-3 under the 1934 Act, outside directors within the meaning
of Section 162(m) of the Internal Revenue Code of 1986, as amended (the "Code"),
and shall satisfy any applicable requirements of any exchange or system on which
the Stock is listed or traded. The Committee will have authority, not
inconsistent with the express provisions of the Plan and in addition to other
authority granted under the Plan, to (a) determine the number of shares subject
to any Award and grant Awards at such time or times as it determines in
accordance with the Plan; (b) prescribe the form or forms of instruments that
are required or deemed appropriate under the Plan, including any required
written notices and elections, and change such forms from time to time; (c)
adopt, amend and rescind rules and regulations for the administration of the
Plan; and (d) interpret the Plan and decide any questions and settle all
controversies and disputes that may arise in connection with the Plan. Such
determinations and actions of the Committee, and all other determinations and
actions of the Committee made or taken under authority granted by any provision
of the Plan, will be final and conclusive and will bind all parties. The
Committee shall certify the achievement of any performance goals established
pursuant to the Plan. Nothing in this Section 2 shall be construed as limiting
the power of the Committee to make adjustments under Section 8.6 hereof.

The Committee may designate employees of the Company and professional advisors
to assist the Committee in the administration of this Plan and may grant
authority to officers to execute agreements or other documents on behalf of the
Committee.

The Committee may employee such legal counsel, consultants and agents as it may
deem desirable for the administration of this Plan and may rely upon any opinion
received from any such counsel or consultant and any computation received from
any such consultant or agent. Expenses incurred by the Committee or the Board in
the engagement of any such counsel, consultant or agent shall be paid by the
Company. The Committee, its members and any person designated pursuant to the
preceding paragraph shall not be liable for any action or determination made in
good faith with respect to this Plan. To the maximum extent permitted by
applicable law, no officer of the Company or member or former member of the
Committee or of the Board shall be liable for any action or determination made
in good faith with respect to this Plan or any Award granted hereunder.

To the maximum extent permitted by applicable law and the certificate of
incorporation and by-laws of the Company and to the extent not covered by
insurance directly insuring such person, each officer and member or former
member of the Committee or the Board shall be indemnified and held harmless by
the Company against any cost or expense (including

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reasonable fees of counsel reasonably acceptable to the Committee) or liability
(including any sum paid in settlement of a claim with the approval of the
Committee), and, to the extent permitted by applicable law, advance amounts
necessary to pay the foregoing at the earliest time and to the fullest extent
permitted, arising out of any act or omission to act in connection with the
administration of this Plan, except to the extent arising out of such officer's,
member's or former member's own fraud or bad faith. Such indemnification shall
be in addition to any rights of indemnification the employees, officers,
directors or members or former officers, directors or members may have under
applicable law or under the certificate of incorporation or by-laws of the
Company or any affiliate thereof. Notwithstanding anything else herein, this
indemnification will not apply to the actions or determinations made by an
individual with regard to Awards granted to him or her under this Plan.

3.       EFFECTIVE DATE AND TERM OF PLAN

The Plan shall be subject to approval by the stockholders of the Company, and
Awards granted hereunder prior to such approval shall also be subject to such
approval. The Plan will terminate on December 31, 2013.

4.       SHARES SUBJECT TO THE PLAN

Subject to adjustment as provided in Section 8.6 hereof, the aggregate number of
shares, measured by reference to Stock Units, subject to Award during any
calendar year of the Plan (the "Award Amount") shall equal a maximum of 158,988,
plus the Carryover Award Amount, as then in effect. For purposes hereof, "Stock
Units" shall consist of restricted or deferred shares of Company common stock,
each of which individual shares shall represent one Stock Unit, and options to
purchase shares of Company common stock, each of which individual options shall
represent one-third of one Stock Unit. The "Carryover Award Amount" consists of
317,796 restricted or deferred shares and options to purchase 953,924 shares of
Company common stock, representing the number of such shares as to which Awards
were available but not granted under the Predecessor Plan for the Performance
Period (as defined in such plan) consisting of the 1999 through 2002 calendar
years, and all or a portion of such Carryover Award Amount may be applied to
increase the Award Amount for any calendar year of the Plan, with the Carryover
Award Amount to be decreased by any portions thereof so applied for purposes of
future calendar years of this Plan.

No fractional shares of Company common stock will be delivered under the Plan.

5.       PARTICIPATION AND AWARDS

         5.1      PARTICIPATION

                  Mr. Robert Rosenkranz, Chairman, President and Chief Executive
Officer of the Company, is the sole participant in the Plan. Mr. Rosenkranz will
be eligible to receive an Award under the Plan following the end of each fiscal
year of the Company (each, a "Fiscal Year"), beginning with the Fiscal Year
ending December 31, 2003, to the extent determined by the Committee, as set
forth in Section 5.2 hereof.

         5.2      DETERMINATION OF AWARDS

                  (a) Within the ninety (90) day period following the end of
each Fiscal Year for which the Plan is in effect, the Committee shall determine
whether and to what extent to grant an Award for such year (including the number
of shares subject to any Award it determines to grant), and the composition of
such Award as between Restricted Stock, Deferred Shares and Options, each as
hereinafter defined (subject to the provisions of Section 4 hereof), based on
such criteria relating to Mr. Rosenkranz's performance, the Company's
performance, the Company's stock performance and such other factors for or
relating to such year as it, in its sole discretion, deems relevant or, if
applicable, the extent to which Mr. Rosenkranz is entitled to an Award for such
Fiscal Year based on the satisfaction of the performance criteria previously
established by the Committee in its sole discretion for such year in accordance
with Section 5.2(b) hereof. Any Award shall be granted on the date on which the
Committee makes its determination to grant such Award, or, in the event that an
Award is granted pursuant to performance criteria established in advance by the
Committee for a Fiscal Year pursuant to Section 5.2(b) hereof, on the last
business day of such year, provided that Mr. Rosenkranz continues to be employed
on

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such date, it being understood that Section 5.5 hereof shall apply with respect
to any Fiscal Year during which such employment terminates.

                  (b) The Committee may, in its sole discretion, establish in
advance with respect to any Fiscal Year objective performance criteria which it
selects in its sole discretion and which, if satisfied (as determined by the
Committee in its sole discretion), will give rise to a target, minimum and/or
maximum potential Award hereunder (as to the number of shares subject to the
Award) for such year or a specified portion thereof, as well as the composition
of the Award or portion thereof to be earned if such criteria are satisfied. Any
such criteria and potential Award composition shall be established by the
Committee within ninety (90) days of the beginning of the Fiscal Year as to
which they shall apply. The Committee may, on or before the date of grant
thereof and in its sole discretion, reduce any Award earned upon satisfaction of
such performance criteria.

         5.3      PAYMENT OF AWARDS

                  The Award to be granted with respect to a Fiscal Year shall,
subject to Section 5.4(a), consist, as applicable, of a number of shares of
restricted Company Class B Common Stock ("Restricted Stock") and/or options
covering a number of shares of Company Class B Common Stock ("Options")
determined in accordance with Section 5.2 hereof.

                  The Restricted Stock and Options shall be granted upon the
terms and conditions set forth below.

         5.4      DEFERRED SHARES

                  (a) AWARDS IN LIEU OF RESTRICTED STOCK. If the Committee
determines that the payment of an Award, in whole or in part, in shares of
Restricted Stock may result in the Company not being able to take a tax
deduction under Section 162(m) of the Code upon the vesting of such Restricted
Stock or otherwise would not be in the best interests of the Company, or if the
Committee determines that the Plan objective of deferral of taxation may not be
met by issuance of Restricted Stock, it may elect instead to pay the Restricted
Stock portion of the Award in an equivalent number of Deferred Shares. Deferred
Shares represent the right to receive the stated number of shares of Company
Class B Common Stock upon the same events described in Section 6.2(c) hereof for
the vesting of Restricted Stock. In the event that any Deferred Shares are
awarded pursuant to this Section 5.4(a), all references to Restricted Stock in
this Plan (including but not limited to the provisions of Section 6.2(c)) shall
be deemed to apply, insofar as they are applicable, to the Deferred Shares.

                  (b) DIVIDEND EQUIVALENTS. In the event that a dividend is paid
or property is distributed (including, without limitation, shares of Company
stock) with respect to a share of Company Class B Common Stock while a Deferred
Share is outstanding, Mr. Rosenkranz shall receive with respect to each Deferred
Share then outstanding:

                           (i)      in the case of a cash dividend, or a
distribution of property other than stock, dividend equivalents in cash or such
property which shall be paid concurrently with the payment of the dividend on
the stock; and

                           (ii)     in the case of stock dividends, a number of
additional Deferred Shares equal to the number of whole shares of stock that
would have been paid if the Deferred Shares had been stock outstanding on the
date of distribution.

                           Any additional Deferred Shares issued under this
Section 5.4(b) shall be subject to the same terms and conditions, including with
respect to vesting, forfeiture and distribution, as apply to the Deferred Shares
in respect of which they are issued.

         5.5      AWARDS FOR PARTIAL YEARS

                  If Mr. Rosenkranz's employment terminates during any Fiscal
Year for which the Plan is in effect other than by the Company for Cause or by
Mr. Rosenkranz without Good Reason, Mr. Rosenkranz will be eligible to receive
an Award to the extent provided in Section 5.2 hereof. Unless otherwise provided
by the Committee in connection therewith, if the Committee has established
objective performance criteria and the potential Award composition for such
Fiscal Year pursuant to Section 5.2(b) hereof, Mr. Rosenkranz shall, to the
extent that such criteria have been satisfied (on a pro-rated basis for such
partial year, where applicable) and subject to the last sentence of Section
5.2(b) hereof, be entitled to receive a portion of such Award to be pro-rated to
reflect the portion of the Fiscal Year elapsed. Within the ninety (90) day
period following Mr. Rosenkranz's termination of employment, the Committee shall
make its determination as to whether and to

                                      -3-

<PAGE>

what extent to grant an Award for such partial year. The provisions of Section
5.2(a) hereof shall apply with respect to such determination as if it were being
made with respect to a completed Fiscal Year, except that any Award shall be
granted on the date on which the Committee makes its determination to grant such
Award, including but not limited to any determination as to the satisfaction of
performance criteria on a pro-rated basis. The portion of any Award pursuant to
this Section 5.5 that would have been paid in Restricted Stock will be satisfied
by an equivalent number of shares of Company Class B Common Stock free of any
restrictions.

6.       TYPES OF AWARDS

         6.1      OPTIONS

                  (a) NATURE OF OPTIONS; GRANT DATE. An Option will entitle Mr.
Rosenkranz to purchase Company Class B Common Stock at a specified exercise
price. The grant date for each Option shall be as set forth in Section 5.2(a)
hereof.

                  (b) EXERCISE PRICE. The exercise price of an Option will be
the Fair Market Value per share of the stock subject to the Option, determined
as of the grant date. In no case may the exercise price paid for stock which is
part of an original issue of authorized stock be less than the par value per
share of the stock. For purposes hereof, "Fair Market Value" shall be the
closing price per share of Stock, as reported on the New York Stock Exchange
("NYSE") on the grant date, or if the Stock is not listed for trading on the
NYSE, the closing price of Stock as reported on another recognized securities
exchange or on the NASDAQ National Market System if the Stock shall then be
listed on such exchange or system. If the Stock did not trade on the grant date
on the NYSE or such other applicable exchange or system, the Fair Market Value
for purposes hereof shall be the reported closing price on the last business day
on which the Stock was traded preceding the grant date.

                  (c) DURATION OF OPTIONS. The latest date on which an Option
may be exercised will be the tenth anniversary of the day immediately preceding
the date the Option was granted.

                  (d) EXERCISE OF OPTIONS. An Option will be exercisable 30 days
following the grant thereof, subject to approval of the Plan by shareholders of
the Company and, in the case of an Option granted pursuant to the satisfaction
of performance criteria established in advance by the Committee, certification
by the Committee that such criteria have been satisfied. Any exercise of an
Option must be in writing, delivered or mailed to the Company, accompanied by
(1) any documents required by the Committee and (2) payment in full in
accordance with paragraph (e) below for the number of shares for which the
Option is exercised.

                  (e) PAYMENT FOR STOCK. Stock purchased on exercise of an
Option must be paid for as follows: (1) in cash or by check (acceptable to the
Company in accordance with guidelines established for this purpose), bank draft
or money order payable to the order of the Company or (2) (i) through the
delivery of shares of Company common stock which have been outstanding for at
least six months and which have a fair market value on the last business day
preceding the date of exercise equal to the exercise price, or (ii) to the
extent permitted by applicable law, by delivery of an unconditional and
irrevocable undertaking by a broker selected by Mr. Rosenkranz to deliver
promptly to the Company sufficient funds to pay the exercise price, or (iii) by
any combination of the permissible forms of payment.

         6.2      RESTRICTED STOCK

                  (a) NATURE OF RESTRICTED STOCK AWARD. The portion of any Award
paid in Restricted Stock entitles Mr. Rosenkranz to receive shares of Company
Class B Common Stock subject to the restrictions described in paragraph (c)
below.

                  (b) RIGHTS AS A STOCKHOLDER. Mr. Rosenkranz will have all the
rights of a stockholder with respect to the Company Class B Common Stock granted
in connection with an Award, including voting and dividend rights, subject to
the restrictions described in paragraph (c) below, and subject to approval of
the Plan by shareholders of the Company. Certificates evidencing shares of
Restricted Stock will remain in the possession of the Company until such shares
are free of such restrictions, at which time such certificates will be delivered
to Mr. Rosenkranz.

                                      -4-

<PAGE>

                  (c) RESTRICTIONS. Restricted Stock may not be sold, assigned,
transferred, pledged or otherwise encumbered or disposed of until the earliest
of (i) Mr. Rosenkranz's termination of employment (A) by reason of death,
Disability or normal retirement in accordance with the policies set by the Board
of Directors, (B) by the Company other than for Cause or (C) by Mr. Rosenkranz
for Good Reason (each a "Qualifying Termination") and (ii) a Change of Ownership
of the Company. If the Company terminates Mr. Rosenkranz's employment for Cause
or if Mr. Rosenkranz terminates his employment other than for Good Reason or in
connection with an event described in clause (A) above, any shares of Restricted
Stock that he then holds subject to restrictions will be forfeited to the
Company.

                  (d) CAUSE. For purposes of this Plan, "Cause" means (i)
conviction of a felony or other crime involving fraud, dishonesty or moral
turpitude, (ii) fraud with respect to the business of the Company, or (iii)
gross neglect of duties of the office specified in writing by the Board. For
purposes of this Plan, Mr. Rosenkranz shall not be deemed to have been
terminated for Cause until the later to occur of (i) the 30th day after notice
of termination is given and (ii) the delivery to him of a copy of a resolution
duly adopted by the affirmative vote of not less than a majority of the
Company's directors at a meeting called and held for that purpose, and at which
Mr. Rosenkranz together with his counsel was given an opportunity to be heard,
finding that Mr. Rosenkranz was guilty of conduct described in the definition of
"Cause" above, and specifying the particulars thereof in detail.

                  (e) GOOD REASON. For purposes of this Plan, "Good Reason"
means the voluntary termination by Mr. Rosenkranz of his employment (1) to enter
public service or (2) within 120 days after the occurrence without his express
written consent of any of the following events, provided that Mr. Rosenkranz
gives notice to the Company at least 30 days in advance requesting that the
situation be remedied, and the situation remains unremedied upon expiration of
such 30-day period:

                           (i)      Mr. Rosenkranz's removal from, or any
failure to reelect him to, the positions of Chairman of the Board, President or
Chief Executive Officer, except in connection with his termination for Cause or
Disability or termination by him other than for Good Reason; or

                           (ii)     reduction in Mr. Rosenkranz's rate of Base
Salary for any fiscal year to less than 100 percent of the rate of Base Salary
paid to him in Fiscal Year 2001; or

                           (iii)    failure of the Company to continue in effect
any retirement, life insurance, medical insurance or disability plan in which
Mr. Rosenkranz was participating on the date of Board adoption of this Plan
unless the Company provides Mr. Rosenkranz with a plan or plans that provide
substantially comparable benefits; or

                           (iv)     a Change of Ownership; or

                           (v)      any purported termination by the Company of
Mr. Rosenkranz's employment for Cause that is not effected in compliance with
paragraph (d) of this Section 6.2.

                  (f) CHANGE OF OWNERSHIP. For purposes of this Plan, a "Change
of Ownership" shall be deemed to have occurred (1) if individuals who, as of the
effective date of this Plan, constitute the Board of Directors of the Company
(the "Board of Directors" generally and as of the date hereof the "Incumbent
Board") cease for any reason to constitute at least a majority of the directors
constituting the Board of Directors, provided that any person becoming a
director subsequent to the effective date of this Plan whose election, or
nomination for election by the Company's shareholders, was approved by a vote of
at least three-quarters (3/4) of the then directors who are members of the
Incumbent Board (other than an election or nomination of an individual whose
initial assumption of office is (A) in connection with the acquisition by a
third person, including a "group" as such term is used in Section 13(d)(3) of
the 1934 Act, of beneficial ownership, directly or indirectly, of 20% or more of
the combined voting securities ordinarily having the right to vote for the
election of directors of the Company (unless such acquisition of beneficial
ownership was approved by a majority of the Board of Directors who are members
of the Incumbent Board), or (B) in connection with an actual or threatened
election contest relating to the election of the directors of the Company, as
such terms are used in Rule 14a-11 of Regulation 14A promulgated under the 1934
Act) shall be, for purposes of this Plan, considered as though such person were
a member of the Incumbent Board; or (2) if the stockholders of the Company
approve a merger, consolidation, recapitalization or reorganization of the
Company, reverse split of any class of voting securities of the Company, or an
acquisition of securities or assets by the Company, or the sale or disposition
by the Company of all or substantially all of the Company's assets, or if any
such transaction is consummated without stockholder approval, other than any
such transaction in which the holders of outstanding Company voting securities
immediately prior to the transaction receive, with respect to such Company
voting securities, voting securities of the surviving or transferee entity
representing more than 60 percent of the total voting power outstanding

                                      -5-

<PAGE>

immediately after such transaction, with the voting power of each such
continuing holder relative to other such continuing holders not substantially
altered in the transaction; or (3) if the stockholders of the Company approve a
plan of complete liquidation of the Company.

                  (g) DISABILITY. For purposes of this Plan, "Disability" means
an illness, injury, accident or condition of either a physical or psychological
nature as a result of which Mr. Rosenkranz is unable to perform substantially
the duties and responsibilities of his position for 180 days during a period of
365 consecutive calendar days.

                  (h) NOTICE OF ELECTION. If Mr. Rosenkranz makes an election
under Section 83(b) of the Code with respect to Restricted Stock, he must
provide a copy thereof to the Company within 10 days of the filing of such
election with the Internal Revenue Service.

7.       EVENTS AFFECTING OUTSTANDING OPTIONS

         7.1      QUALIFYING TERMINATION

                  If Mr. Rosenkranz's employment with the Company terminates in
connection with a Qualifying Termination, he (or his executor or administrator
or the person or persons to whom the Option is transferred by will or the
applicable laws of descent and distribution) may exercise all or any Options he
then holds or is granted subsequent to a Qualifying Termination at any time
prior to the expiration of their respective terms.

         7.2      TERMINATION OF EMPLOYMENT (OTHER THAN A QUALIFYING
TERMINATION)

                  If Mr. Rosenkranz's employment with the Company terminates
other than in connection with a Qualifying Termination, all Options will
continue to be exercisable for a period of ninety days following the termination
and shall thereupon terminate, unless the termination was by the Company for
Cause, in which case all such Options shall immediately terminate. In no event,
however, shall an Option remain exercisable beyond the latest date on which it
could have been exercised without regard to this Section 7.

8.       GENERAL PROVISIONS

         8.1      DOCUMENTATION OF AWARDS

                  Awards will be evidenced by such written instruments, if any,
as may be prescribed by the Committee from time to time.

         8.2      RIGHTS AS A STOCKHOLDER

                  Except as specifically provided by the Plan, the receipt of an
Award will not give Mr. Rosenkranz rights as a stockholder. He will obtain such
rights, subject to any limitations imposed by the Plan or the instrument
evidencing the Award, upon actual receipt of Company common stock.

         8.3      CONDITIONS ON DELIVERY OF STOCK

                  The Company will not be obligated to deliver any shares of
Company common stock pursuant to the Plan or to remove restrictions from shares
previously delivered under the Plan (a) until all conditions of the Award have
been satisfied or removed, (b) until, in the opinion of the Company's counsel,
all applicable federal and state laws and regulations have been complied with,
(c) if the outstanding Company common stock is at the time listed on any stock
exchange, until the shares to be delivered have been listed or authorized to be
listed on such exchange upon official notice of issuance, and (d) until all
other legal matters in connection with the issuance and delivery of such shares
have been approved by the

                                      -6-

<PAGE>

Company's counsel. If the sale of Company common stock has not been registered
under the Securities Act of 1933, as amended, the Company may require, as a
condition to exercise of the Award, such representations or agreements as
counsel for the Company may consider appropriate to avoid violation of such Act
and may require that the certificates evidencing such stock bear an appropriate
legend restricting transfer.

         8.4      TAX WITHHOLDING

                  Upon the lapse of restrictions on the Restricted Stock, the
delivery of any Deferred Shares and the exercise of any Options, the Committee
will have the right to require that Mr. Rosenkranz or his representative remit
to the Company an amount sufficient to satisfy the withholding requirements, or
make other arrangements satisfactory to the Committee with regard to such
requirements, prior to the delivery of any Company common stock. If and to the
extent that such withholding is required, the Committee may permit Mr.
Rosenkranz or such other person to elect at such time and in such manner as the
Committee provides to have the Company hold back from the shares to be
delivered, or to deliver to the Company, Company common stock having a value
calculated to satisfy the withholding requirement.

         8.5      NONTRANSFERABILITY OF AWARDS

                  Except as set forth below and in Section 6.2(c), Awards
granted hereunder may not be sold, assigned, transferred, pledged or otherwise
encumbered or disposed of other than by will or the laws of descent and
distribution. Notwithstanding the foregoing, if the Committee expressly so
provides in the applicable Award agreement (at the time of grant or at any time
thereafter), an Option granted hereunder may be transferred, for or without
consideration, by Mr. Rosenkranz to members of his "immediate family", to an
organization exempt from taxation under Section 501(c)(3) of the Code (a
"tax-exempt organization"), to a trust or trusts (each, a "family trust")
established for the exclusive benefit of one or more of the following: Mr.
Rosenkranz, a "controlled entity", one or more members of his "immediate family"
and/or any tax-exempt organizations, or to a partnership or limited liability
company in which one or more "immediate family" members, "controlled entities"
and/or any tax-exempt organizations are the only partners or members, as the
case may be. Any Option held by the transferee will continue to be subject to
the same terms and conditions that were applicable to the Option immediately
prior to the transfer, except that the Option will be transferable by the
transferee only by will or the laws of descent and distribution. For purposes
hereof, "immediate family" means Mr. Rosenkranz's children, stepchildren,
grandchildren, parents, stepparents, grandparents, spouse, siblings (including
half brothers and sisters), in-laws, and relationships arising because of legal
adoption.

         8.6      ADJUSTMENTS

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

                  (b) In any event referred to in paragraph (a), the Committee
will also make any appropriate adjustments to the number and kind of shares of
stock or securities subject to Awards then outstanding or subsequently granted,
any exercise prices relating to Options and any other provision included in or
relating to the calculation of Awards affected by such change. The Committee may
also make appropriate adjustments to take into account, mergers, consolidations,
acquisitions, dispositions or similar corporate transactions if it is determined
by the Committee that adjustments are appropriate to avoid distortion in the
operation of the Plan and to preserve (but not enhance) the benefits under the
Plan.

         8.7      EMPLOYMENT RIGHTS, ETC.

                  Neither the adoption of the Plan nor the grant of Awards will
confer upon Mr. Rosenkranz any right to continued retention by the Company as an
employee or otherwise, or affect in any way the right of the Company to
terminate the employment relationship at any time.

         8.8      DEFERRAL OF PAYMENTS

                  The Committee may agree at any time, upon Mr. Rosenkranz's
request but subject to its discretion, to defer the date on which any payment
under an Award will be made.

                                      -7-

<PAGE>

         8.9      EXCISE TAX GROSS-UP

                  In the event it shall be determined by the Company's
independent auditors that any payment or distribution made, or benefit provided
(including, without limitation, the acceleration of any payment, distribution or
benefit and the acceleration of vesting of any restricted stock or deferred
shares), by the Company to or for the benefit of Mr. Rosenkranz (whether paid or
payable or distributed or distributable pursuant to the terms of this Plan or
otherwise, but determined without regard to any additional payments required
under this Section 8.9) (a "Payment") would be subject to the excise tax imposed
by Section 4999 of the Code (or any similar excise tax) or any interest or
penalties are incurred by Mr. Rosenkranz with respect to such excise tax (such
excise tax, together with any such interest and penalties, are hereinafter
collectively referred to as the "Excise Tax"), then Mr. Rosenkranz shall be
entitled to receive an additional payment (a "Gross-Up Payment") in an amount
such that after payment by Mr. Rosenkranz of all taxes (including any Excise
Tax, income tax or payroll tax) imposed upon the Gross-Up Payment and any
interest or penalties imposed with respect to such taxes, Mr. Rosenkranz retains
from the Gross-Up Payment an amount equal to the Excise Tax imposed upon the
Payments.

9.       EFFECT, DISCONTINUANCE, CANCELLATION, AMENDMENT AND TERMINATION

The Committee may, in accordance with applicable law and the rules of any
exchange or system on which the Company's securities are listed or traded, at
any time or times amend the Plan or any outstanding Award for any purpose which
may at the time be permitted by law, provided that (except to the extent
expressly required or permitted by the Plan) no such amendment will without Mr.
Rosenkranz's consent, amend the Plan or any outstanding Award so as to adversely
affect his rights under the Plan or any outstanding Award. Nothing in this Plan
shall modify or in any way affect any of the Awards previously received by Mr.
Rosenkranz under the Predecessor Plan.

                                      -8-

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