Document:

Exhibit 10.81

                                FX ENERGY, INC.
                         2004 LONG-TERM INCENTIVE PLAN

         FX Energy, Inc., a Nevada corporation (the "Company"), hereby adopts
this "2004 Long-Term Incentive Plan" (the "Plan").

         1. Purposes of the Plan. The Board has adopted this Plan with the
intent, and directs that it be administered as necessary, to attract and retain
the best available personnel for positions of substantial responsibility;
provide additional incentive to Employees, Directors and Consultants; and
promote the success of the Company's business.

         Options granted under the Plan may be Incentive Stock Options or
Nonstatutory Stock Options, as determined by the Administrator at the time of
grant. Stock Purchase Rights may also be granted under the Plan.

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

                  (a) "Administrator" means the Board or any of its Committees
         as shall be administering the Plan in accordance with section 4 of the
         Plan.

                  (b) "Applicable Laws" means the requirements relating to the
         administration of stock option plans under the corporate laws of the
         state in which the Company is incorporated, federal and state
         securities laws, the Code, the regulations and policies of any stock
         exchange or quotation system on which the Common Stock is listed or
         quoted, and the Applicable Laws of any foreign country or jurisdiction
         where Options or Stock Purchase Rights are or will be granted under the
         Plan.

                  (c) "Board" means the Board of Directors of the Company.

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

                  (e) "Committee" means a committee of Directors appointed by
         the Board in accordance with section 4 of the Plan.

                  (f) "Common Stock" means the common stock of the Company.

                  (g) "Company" means FX Energy, Inc., a Nevada corporation.

                  (h) "Consultant" means any person, including an advisor,
         engaged by the Company or a Parent or Subsidiary to render services to
         such entity, including, at the discretion of the Administrator, an
         entity that is not a natural person.

                  (i) "Director" means a member of the Board.

                  (j) "Disability" means total and permanent disability as
         defined in Section 22(e)(3) of the Code.

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                  (k) "Employee" means any person, including Officers and
         Directors, employed by the Company or any Parent or Subsidiary of the
         Company. A Service Provider shall not cease to be an Employee in the
         case of (i) any leave of absence approved by the Company or (ii)
         transfers between locations of the Company or between the Company, its
         Parent, any Subsidiary, or any successor. For purposes of Incentive
         Stock Options, no such leave may exceed 90 days, unless reemployment
         upon expiration of such leave is guaranteed by statute or contract. If
         reemployment upon expiration of a leave of absence approved by the
         Company is not so guaranteed, then three months following the 91st day
         of such leave, any Incentive Stock Option held by the Optionee shall
         cease to be treated as an Incentive Stock Option and shall be treated
         for tax purposes as a Nonstatutory Stock Option. Neither service as a
         Director nor payment of a Director's fee by the Company shall be
         sufficient to constitute "employment" by the Company.

                  (l) "Exchange Act" means the Securities Exchange Act of 1934,
         as amended.

                  (m) "Fair Market Value" means, as of any date, the value of
         Common Stock determined as follows:

                           (i) if the Common Stock is listed on any established
                  stock exchange or a national market system, including the
                  Nasdaq National Market or the Nasdaq SmallCap Market of the
                  Nasdaq Stock Market, its Fair Market Value shall be the
                  closing sales price for such stock (or the closing bid, if no
                  sales were reported) as quoted on such exchange or system on
                  the day of determination, as reported by Nasdaq, The Wall
                  Street Journal, or such other source as the Administrator
                  deems reliable;

                           (ii) if the Common Stock is regularly quoted in an
                  inter-dealer quotation medium, but selling prices are not
                  reported, the Fair Market Value of a Share of Common Stock
                  shall be the mean between the high bid and low asked prices
                  for the Common Stock on the day of determination, as reported
                  by such inter-dealer quotation medium, The Wall Street
                  Journal, or such other source as the Administrator deems
                  reliable; or

                           (iii) in the absence of an established market for the
                  Common Stock, the Fair Market Value shall be determined in
                  good faith by the Administrator.

                  (n) "Incentive Stock Option" means an Option intended to
         qualify as an incentive stock option within the meaning of Section 422
         of the Code and the regulations promulgated thereunder.

                  (o) "Inside Director" means a Director who is an Employee.

                  (p) "Nonstatutory Stock Option" means an Option not intended
         to qualify as an Incentive Stock Option.

                  (q) "Notice of Grant" means a written or electronic notice
         evidencing certain terms and conditions of an individual Option or
         Stock Purchase Right grant. The Notice of Grant is part of, and subject
         to the terms of, the Option Agreement.

                  (r) "Officer" means a person who is an executive officer of
         the Company within the meaning of Section 16 of the Exchange Act and
         the rules and regulations promulgated thereunder.

                  (s) "Option" means a stock option granted pursuant to the
         Plan.

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                  (t) "Option Agreement" means an agreement between the Company
         and an Optionee evidencing the terms and conditions of an individual
         Option grant. The Option Agreement is subject to the terms and
         conditions of the Plan.

                  (u) "Option Exchange Program" means a program whereby
         outstanding Options are surrendered in exchange for Options with a
         lower exercise price.

                  (v) "Optioned Stock" means the Common Stock subject to an
         Option or Stock Purchase Right.

                  (w) "Optionee" means the holder of an outstanding Option or
         Stock Purchase Right granted under the Plan.

                  (x) "Outside Director" means a Director who meets the
         definition of both a "Non-Employee Director" (as defined in Rule 16b-3
         of the Exchange Act) and "Outside Director" (as defined in Section
         162(m) of the Code).

                  (y) "Parent" means a "parent corporation," whether now or
         hereafter existing, as defined in Section 424(e) of the Code.

                  (z) "Plan" means this 2004 Long-Term Incentive Plan, as the
         same may be amended and restated from time to time.

                  (aa) "Restricted Stock" means Shares of Common Stock acquired
         pursuant to a grant of Stock Purchase Rights under section 11 of the
         Plan.

                  (bb) "Restricted Stock Purchase Agreement" means a written
         agreement between the Company and the Optionee evidencing the terms and
         restrictions applying to stock purchased under a Stock Purchase Right.
         The Restricted Stock Purchase Agreement is subject to the terms and
         conditions of the Plan and the Notice of Grant.

                  (cc) "Rule 16b-3" means Rule 16b-3 of the Exchange Act or any
         successor to Rule 16b-3, as in effect when discretion is being
         exercised with respect to the Plan.

                  (dd) "Section 16(b)" means Section 16(b) of the Exchange Act.

                  (ee) "Service Provider" means an Employee, Director or
         Consultant.

                  (ff) "Share" means a share of Common Stock, as adjusted in
         accordance with section 15 of the Plan.

                  (gg) "Stock Purchase Right" means the right to purchase Common
         Stock pursuant to section 11 of the Plan, as evidenced by a Notice of
         Grant.

                  (hh) "Subsidiary" means a "subsidiary corporation," whether
         now or hereafter existing, as defined in Section 424(f) of the Code.

         3. Stock Subject to the Plan. Subject to the provisions of section 15
of the Plan, the maximum aggregate number of Shares on which Options may be

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granted and which may be sold on the exercise of such Options and under
Restricted Stock Purchase Agreements under the Plan is 1,000,000 Shares. The
Shares may be authorized, but unissued, or reacquired Common Stock.

         If an Option or Stock Purchase Right expires or becomes unexercisable
without having been exercised in full, or is surrendered pursuant to an Option
Exchange Program, the unpurchased Shares that were subject thereto shall become
available for future grant or sale under the Plan (unless the Plan has
terminated); provided, however, that Shares that have actually been issued under
the Plan, whether upon exercise of an Option or Right, shall not be returned to
the Plan and shall not become available for future distribution under the Plan,
except that if Shares of Restricted Stock are repurchased by the Company at
their original purchase price, such Shares shall become available for future
grant under the Plan.

         4. Administration of the Plan.

                  (a) Procedure.

                           (i) The Board may designate different Committees to
                  administer the Plan with respect to different groups of
                  Service Providers.

                           (ii) To the extent that the Administrator determines
                  it to be desirable to qualify Options granted hereunder as
                  "performance-based compensation" within the meaning of Section
                  162(m) of the Code, the Plan shall be administered by a
                  Committee of two or more "Outside Directors" within the
                  meaning of Section 162(m) of the Code.

                           (iii) To the extent desirable to qualify transactions
                  hereunder as exempt under Rule 16b-3, the transactions
                  contemplated hereunder shall be structured to satisfy the
                  requirements for exemption under Rule 16b-3.

                           (iv) Other than as provided above, the Plan shall be
                  administered by the Board or a Committee, which Committee
                  shall be constituted to satisfy Applicable Laws.

                  (b) Powers of the Administrator. Subject to the provisions of
         the Plan, and in the case of a Committee, subject to the specific
         duties delegated by the Board to such Committee, the Administrator
         shall have the authority, in its discretion:

                           (i) to determine the Fair Market Value;

                           (ii) to select the Service Providers to whom Options
                  and Stock Purchase Rights may be granted hereunder;

                           (iii) to determine the number of Shares of Common
                  Stock to be covered by each Option and Stock Purchase Right
                  granted hereunder;

                           (iv) to approve forms of agreement for use under the
                  Plan;

                           (v) to determine the terms and conditions, not
                  inconsistent with the terms of the Plan, of any Option or
                  Stock Purchase Right granted hereunder. Such terms and
                  conditions include the exercise price, the time or times when
                  Options or Stock Purchase Rights may be exercised (which may
                  be based on performance criteria), any vesting acceleration or

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                  waiver of forfeiture restrictions, and any restriction or
                  limitation regarding any Option or Stock Purchase Right or the
                  Shares of Common Stock relating thereto, based in each case on
                  such factors as the Administrator, in its sole discretion,
                  shall determine;

                           (vi) to reduce the exercise price of any Option or
                  Stock Purchase Right to the then-current Fair Market Value if
                  the Fair Market Value of the Common Stock covered by such
                  Option or Stock Purchase Right shall have declined since the
                  date the Option or Stock Purchase Right was granted;

                           (vii) to institute an Option Exchange Program;

                           (viii) to construe and interpret the terms of the
                  Plan and awards granted pursuant to the Plan;

                           (ix) to establish, amend and rescind rules and
                  regulations relating to the Plan, including rules and
                  regulations relating to subplans established for the purpose
                  of satisfying applicable foreign laws;

                           (x) to modify or amend each Option or Stock Purchase
                  Right (subject to section 17(c) of the Plan), including the
                  discretionary authority to extend the post-termination
                  exercisability period of Options longer than is otherwise
                  provided for in the Plan;

                           (xi) to authorize any person to execute on behalf of
                  the Company any instrument required to effect the grant of an
                  Option or Stock Purchase Right previously granted by the
                  Administrator;

                           (xii) to correct any defect, supply any omission, or
                  reconcile any inconsistency in the Plan or in any Option
                  Agreement, in a manner and to the extent it shall deem
                  necessary, all of which determinations and interpretations
                  made by the Administrator shall be conclusive and binding on
                  all Optionees, any other holders of Options, and on their
                  legal representatives and beneficiaries;

                           (xiii) except to the extent prohibited by or
                  impermissible in order to obtain treatment desired by the
                  Administrator under Applicable Law or rule, to allocate or
                  delegate all or any portion of its powers and responsibilities
                  to any one or more of its members or to any person(s) selected
                  by it, subject to revocation or modification by the
                  Administrator of such allocation or delegation; and

                           (xiv) to make all other determinations deemed
                  necessary or advisable for administering the Plan.

                  (c) Effect of Administrator's Decision. The Administrator's
         decisions, determinations and interpretations shall be final and
         binding on all Optionees and any other holders of Options or Stock
         Purchase Rights.

         5. Eligibility. Nonstatutory Stock Options and Stock Purchase Rights
may be granted to Service Providers. Incentive Stock Options may be granted only
to Employees.

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         6. Limitations.

                  (a) Designation. Each Option shall be designated in the Option
         Agreement as either an Incentive Stock Option or a Nonstatutory Stock
         Option. However, notwithstanding such designation, to the extent that
         the aggregate Fair Market Value of the Shares with respect to which
         Incentive Stock Options are exercisable for the first time by the
         Optionee during any calendar year (under all Plans of the Company and
         any Parent or Subsidiary) exceeds $100,000, such Options shall be
         treated as Nonstatutory Stock Options. For purposes of this section
         6(a), Incentive Stock Options shall be taken into account in the order
         in which they were granted. The Fair Market Value of the Shares shall
         be determined as of the time the Option with respect to such Shares is
         granted.

                  (b) No Right of Continuing Service or Employment. Neither the
         Plan nor any Option or Stock Purchase Right shall confer upon an
         Optionee any right with respect to continuing the Optionee's
         relationship as a Service Provider with the Company, nor shall they
         interfere in any way with the Optionee's right or the Company's right
         to terminate such relationship at any time, with or without cause.

         7. Term of Plan. Subject to section 21 of the Plan, the Plan shall
become effective upon its adoption by the Board. It shall continue in effect for
a term of 10 years unless terminated earlier under section 17 of the Plan.

         8. Term of Option. The term of each Option shall be stated in the
Option Agreement. In the case of an Incentive Stock Option, the term shall be 10
years from the date of grant or such shorter term as may be provided in the
Option Agreement. Moreover, in the case of an Incentive Stock Option granted to
an Optionee who, at the time the Incentive Stock Option is granted, owns stock
representing more than 10% of the total combined voting power of all classes of
stock of the Company or any Parent or Subsidiary, the term of the Incentive
Stock Option shall be five years from the date of grant or such shorter term as
may be provided in the Option Agreement.

         9. Option Exercise Price and Consideration.

                  (a) Exercise Price. The per Share exercise price for the
         Shares to be issued pursuant to exercise of an Option shall be
         determined by the Administrator and specified in the Option Agreement,
         subject to the following:

                           (i) In the case of an Incentive Stock Option:

                                    (1) granted to an Employee who, at the time
                           the Incentive Stock Option is granted, owns stock
                           representing more than 10% of the voting power of all
                           classes of stock of the Company or any Parent or
                           Subsidiary, the per Share exercise price shall be no
                           less than 110% of the Fair Market Value per Share on
                           the date of grant.

                                    (2) granted to any Employee other than an
                           Employee described in subsection 9(a)(i)(1)
                           immediately above, the per Share exercise price shall
                           be no less than 100% of the Fair Market Value per
                           Share on the date of grant.

                           (ii) In the case of a Nonstatutory Stock Option, the
                  per Share exercise price shall be determined by the
                  Administrator. In the case of a Nonstatutory Stock Option

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                  intended to qualify as "performance-based compensation" within
                  the meaning of Section 162(m) of the Code, the per Share
                  exercise price shall be no less than 100% of the Fair Market
                  Value per Share on the date of grant.

                           (iii) Notwithstanding the foregoing, Options may be
                  granted with a per Share exercise price of less than 100% of
                  the Fair Market Value per Share on the date of grant pursuant
                  to a merger or other corporate transaction.

                  (b) Waiting Period and Exercise Dates. At the time an Option
         is granted, the Administrator shall fix the period within which the
         Option may be exercised and shall determine any conditions that must be
         satisfied before the Option may be exercised.

                  (c) Form of Consideration. The Administrator shall determine
         the acceptable form of consideration for exercising an Option,
         including the method of payment. Such consideration may consist
         entirely of:

                           (i) cash;

                           (ii) check;

                           (iii) promissory note, except in the case of Options
                  granted to or held by executive officers or directors;

                           (iv) other Shares, provided Shares acquired from the
                  Company have been owned by the Optionee for more than six
                  months on the date of surrender and have a Fair Market Value
                  on the date of surrender equal to the aggregate exercise price
                  of the Shares as to which said Option shall be exercised;

                           (v) consideration received by the Company under a
                  cashless exercise program implemented by the Company in
                  connection with the Plan;

                           (vi) a reduction in the amount of any Company
                  liability to the Optionee, including any liability
                  attributable to the Optionee's participation in any
                  Company-sponsored deferred compensation program or
                  arrangement;

                           (vii) any combination of the foregoing methods of
                  payment; or

                           (viii) such other consideration and method of payment
                  for the issuance of Shares to the extent permitted by
                  Applicable Laws.

         In the case of an Incentive Stock Option, the Administrator shall
         determine the acceptable form of consideration at the time of grant as
         set forth in the Option Agreement. Notwithstanding the form of
         consideration determined by the Administrator at the time of grant, the
         Administrator shall have the authority, in its sole and absolute
         discretion, to accept other forms of consideration as the method of
         payment.

         10. Exercise of Option.

                  (a) Procedure for Exercise; Rights as a Stockholder. Any
         Option granted hereunder shall be exercisable according to the terms of
         the Plan and at such times and under such conditions as determined by
         the Administrator and set forth in the Option Agreement. Unless the
         Administrator provides otherwise, vesting of Options granted hereunder
         shall be tolled during any unpaid leave of absence. An Option may not

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         be exercised for a fraction of a Share. An Option shall be deemed
         exercised when the Company receives: (i) written or electronic notice
         of exercise (in accordance with the Option Agreement) from the person
         entitled to exercise the Option, and (ii) full payment for the Shares
         with respect to which the Option is exercised. Full payment may consist
         of any consideration and method of payment authorized by the
         Administrator and permitted by the Option Agreement and the Plan.
         Shares issued upon exercise of an Option shall be issued in the name of
         the Optionee or, if requested by the Optionee, in the name of the
         Optionee and his or her spouse or in the name of a family trust of
         which the Optionee is a trustee. Until the Shares are issued (as
         evidenced by the appropriate entry on the books of the Company or of a
         duly authorized transfer agent of the Company), no right to vote or
         receive dividends or any other rights as a stockholder shall exist with
         respect to the Optioned Stock, notwithstanding the exercise of the
         Option. The Company shall issue (or cause to be issued) such Shares
         promptly after the Option is exercised; provided that if the Company
         shall be advised by counsel that certain requirements under the
         federal, state or foreign securities laws must be met before Shares may
         be issued under this Plan, the Company shall notify all persons who
         have been issued Options, and the Company shall have no liability for
         failure to issue Shares under any exercise of Options because of delay
         while such requirements are being met or the inability of the Company
         to comply with such requirements. No adjustment will be made for a
         dividend or other right for which the record date is prior to the date
         the Shares are issued, except as provided in section 15 of the Plan.
         Exercising an Option in any manner shall decrease the number of Shares
         thereafter available, both for purposes of the Plan and for sale under
         the Option, by the number of Shares as to which the Option is
         exercised.

                  (b) Termination of Relationship as a Service Provider. If an
         Optionee ceases to be a Service Provider, other than upon the
         Optionee's death or Disability, the Optionee may exercise his or her
         Option within such period of time as is specified in the Option
         Agreement to the extent that the Option is vested on the date of
         termination (but in no event later than the expiration of the term of
         such Option as set forth in the Option Agreement). In the absence of a
         specified time in the Option Agreement, the Option shall remain
         exercisable for three months following the Optionee's termination. If,
         on the date of termination, the Optionee is not vested as to his or her
         entire Option, the Shares covered by the unvested portion of the Option
         shall revert to the Plan. If, after termination, the Optionee does not
         exercise his or her Option within the time specified by the
         Administrator, the Option shall terminate, and the Shares covered by
         such Option shall revert to the Plan.

                  (c) Disability of Optionee. If an Optionee ceases to be a
         Service Provider as a result of the Optionee's Disability, the Optionee
         may exercise his or her Option within such period of time as is
         specified in the Option Agreement to the extent the Option is vested on
         the date of termination (but in no event later than the expiration of
         the term of such Option as set forth in the Option Agreement). In the
         absence of a specified time in the Option Agreement, the Option shall
         remain exercisable for 12 months following the Optionee's termination.
         If, on the date of termination, the Optionee is not vested as to his or
         her entire Option, the Shares covered by the unvested portion of the
         Option shall revert to the Plan. If, after termination, the Optionee
         does not exercise his or her Option within the time specified herein,
         the Option shall terminate, and the Shares covered by such Option shall
         revert to the Plan.

                  (d) Death of Optionee. If an Optionee dies while a Service
         Provider, the Option may be exercised within such period of time as is
         specified in the Option Agreement (but in no event later than the
         expiration of the term of such Option as set forth in the Notice of
         Grant), by the Optionee's estate or by a person who acquires the right
         to exercise the Option by bequest or inheritance, but only to the
         extent that the Option is vested on the date of death. In the absence
         of a specified time in the Option Agreement, the Option shall remain

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         exercisable for 12 months following the Optionee's termination. If, at
         the time of death, the Optionee is not vested as to his or her entire
         Option, the Shares covered by the unvested portion of the Option shall
         immediately revert to the Plan. The Option may be exercised by the
         executor or administrator of the Optionee's estate or, if none, by the
         person(s) entitled to exercise the Option under the Optionee's will or
         the laws of descent or distribution. If the Option is not so exercised
         within the time specified herein, the Option shall terminate, and the
         Shares covered by such Option shall revert to the Plan.

         11. Stock Purchase Rights.

                  (a) Rights to Purchase. Stock Purchase Rights may be issued
         either alone, in addition to, or in tandem with other awards granted
         under the Plan and/or cash awards made outside of the Plan. After the
         Administrator determines that it will offer Stock Purchase Rights under
         the Plan, it shall advise the offeree in writing or electronically, by
         means of a Notice of Grant, of the terms, conditions and restrictions
         related to the offer, including the number of Shares that the offeree
         shall be entitled to purchase, the price to be paid, and the time
         within which the offeree must accept such offer. The offer shall be
         accepted by execution of a Restricted Stock Purchase Agreement in the
         form determined by the Administrator.

                  (b) Repurchase Option. Unless the Administrator determines
         otherwise, the Restricted Stock Purchase Agreement shall grant the
         Company a repurchase option exercisable upon the voluntary or
         involuntary termination of the purchaser's service with the Company for
         any reason (including death or Disability). The purchase price for
         Shares repurchased pursuant to the Restricted Stock Purchase Agreement
         shall be the original price paid by the purchaser plus interest at the
         rate of 10% per year from the date of the original purchase and may be
         paid by cancellation of any indebtedness of the purchaser to the
         Company. The repurchase option shall lapse at a rate determined by the
         Administrator.

                  (c) Other Provisions. The Restricted Stock Purchase Agreement
         shall contain such other terms, provisions and conditions not
         inconsistent with the Plan as may be determined by the Administrator in
         its sole discretion.

                  (d) Rights as a Stockholder. Once the Stock Purchase Right is
         exercised, the purchaser shall have the rights equivalent to those of a
         stockholder and shall be a stockholder when his or her purchase is
         entered upon the records of the duly authorized transfer agent of the
         Company. No adjustment will be made for a dividend or other right for
         which the record date is prior to the date the Stock Purchase Right is
         exercised, except as provided in section 15 of the Plan.

         12. Withholding. If the grant or exercise of an Option or a Stock
Purchase Right pursuant to this Plan, or any other event in connection with any
such grant or exercise, creates an obligation to withhold income and employment
taxes pursuant to the Applicable Laws, such obligation may, at the sole and
absolute discretion of the Administrator at the time of the grant of the Option
or Stock Purchase Right and to the extent permitted by the terms of the Option
or Stock Purchase Right and the then-governing provisions of the Code and the
Exchange Act, be satisfied (a) by the holder of the Option or Stock Purchase
Right delivering to the Company an amount of cash equal to such withholding
obligation; (b) by the Company withholding from any compensation or other amount
owing to the holder of the Option or Stock Purchase Right the amount (in cash,
stock or other property as the Company may determine) of the withholding
obligation; (c) by the Company withholding Shares of stock subject to the Option

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or Stock Purchase Right with a Fair Market Value equal to such obligation; or
(d) by the holder of the Option or Stock Purchase Right either delivering Shares
of stock that have been owned by the holder for more than six months or
canceling Options or other rights to acquire stock from the Company that have
been held for more than six months with a Fair Market Value equal to such
requirements. In all events, delivery of Shares of stock issuable on exercise of
the Option or on grant of the Stock Purchase Right shall be conditioned upon and
subject to the satisfaction or making provision for the satisfaction of the
withholding obligation of the Company resulting from the grant or exercise of
the Option, grant of the Stock Purchase Right, or any other event in accordance
with the foregoing. The Company shall be further authorized to take such other
action as may be necessary, in the opinion of the Company, to satisfy all
obligations for the payment of such taxes.

         13. Nontransferability of Options and Stock Purchase Rights.

         (a) An Option or Stock Purchase Right may not be sold, pledged,
assigned, hypothecated, transferred or disposed of in any manner other than by
will or by the laws of descent or distribution and may be exercised, during the
lifetime of the Optionee, only by the Optionee, all save and except only (i) an
Optionee's family member who has acquired the Option or Stock Purchase Right
through a gift or a transfer for value pursuant to a domestic relations order in
settlement of marital property rights or a transfer to an entity in which more
that 50% of the voting interests owned by an Optionee's family members or the
Optionee in exchange for an interest in that entity, all as more particularly
provided in the general instructions to Form S-8 or any successor form under the
Securities Act of 1933; or (ii) unless determined otherwise by the
Administrator, in which case such Option or Stock Purchase Right shall contain
such additional terms and conditions as the Administrator deems appropriate.

         (b) An Incentive Stock Option may not be sold, pledged, assigned,
hypothecated, transferred or disposed of in any manner other than by will or by
the laws of descent or distribution and may be exercised, during the lifetime of
the Optionee, only by the Optionee. An Incentive Stock Option can only be
exercised by Optionee. In the event of the death of Optionee while an eligible
employee of the Company or within three months after termination thereof, this
Option can be exercised by the executor or personal representative of the estate
of Optionee or such other person who has acquired this Option as a bequest or by
inheritance from Optionee.

         14. Grants to Directors and Officers. To the extent the Company has a
class of securities registered under Section 12 of the Exchange Act, Options or
Stock Purchase Rights granted under the Plan to Directors and Officers (as used
in Rule 16b-3 promulgated under the Exchange Act or any amendment or successor
rule of like tenor) intended to qualify for the exemption from Section 16(b) of
the Exchange Act provided in Rule 16b-3 shall, in addition to being subject to
the other restrictions and limitations set forth in this Plan, be made as
follows:

                  (a) Requirements for Grant to Officer or Director. A
         transaction whereby there is a grant of an Option or Stock Purchase
         Right pursuant to this Plan must satisfy one of the following:

                           (i) The transaction must be approved by the Board or
                  duly authorized Committee composed solely of two or more
                  Outside Directors of the Company.

                           (ii) The transaction must be approved or ratified, in
                  compliance with Section 14 of the Exchange Act, by either: (1)
                  the affirmative vote of the holders of a majority of the
                  securities of the Company present or represented and entitled
                  to vote at a meeting of the stockholders of the Company held
                  in accordance with the Applicable Laws of the state of
                  incorporation of the Company; or (2) if allowed by applicable

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                  state law, the written consent of the holders of a majority,
                  or such greater percentage as may be required by Applicable
                  Laws of the state of incorporation of the Company, of the
                  securities of the Company entitled to vote. If the transaction
                  is ratified by the stockholders, such ratification must occur
                  no later than the date of the next annual meeting of
                  stockholders.

                           (iii) The stock acquired must be held by the Officer
                  or Director for a period of six months subsequent to the date
                  of the grant; provided that if the transaction involves a
                  derivative security (as defined in Section 16 of the Exchange
                  Act), this condition shall be satisfied if at least six months
                  elapse from the date of acquisition of the derivative security
                  to the date of disposition of the derivative security (other
                  than on exercise or conversion) or its underlying equity
                  security.

                  (b) Approval Required for Disposition of Securities. Any
         transaction involving the disposition by the Company of its securities
         in connection with Options or Stock Purchase Rights granted pursuant to
         this Plan to an Officer or Director shall:

                           (i) be approved by the Board or duly authorized
                  Committee composed solely of two or more Outside Directors; or

                           (ii) be approved or ratified, in compliance with
                  Section 14 of the Exchange Act, by either: (1) the affirmative
                  vote of the holders of a majority of the securities of the
                  Company present or represented and entitled to vote at a
                  meeting duly held in accordance with the Applicable Laws of
                  the state of incorporation of the Company; or (2) if allowed
                  by applicable state law, the written consent of the holders of
                  a majority, or such greater percentage as may be required by
                  Applicable Laws of the state of incorporation of the Company,
                  of the securities of the Company entitled to vote; provided
                  that such ratification occurs no later than the date of the
                  next annual meeting of stockholders;

         unless the securities so acquired are held by the Officer or Director
         for six months following the date of such acquisition, provided that
         this condition shall be satisfied with respect to a derivative security
         if at least six months elapse from the date of acquisition of the
         derivative security to the date of disposition of the derivative
         security (other than upon exercise or conversion) or its underlying
         equity security..

All of the foregoing restrictions and limitations are based on the governing
provisions of the Exchange Act and the rules and regulations promulgated
thereunder as of the date of adoption of this Plan. If, at any time, the
governing provisions are amended to permit an Option or Stock Purchase Right to
be granted or exercised pursuant to Rule 16b-3 or any amendment or successor
rule of like tenor without one or more of the foregoing restrictions or
limitations, or the terms of such restrictions or limitations are modified, the
Administrator may award Options or Stock Purchase Rights to Directors and
Officers and may modify outstanding Options or Stock Purchase Rights in
accordance with such changes, all to the extent that such action by the
Administrator does not disqualify the Options or Stock Purchase Rights from
exemption under the provisions of Rule 16b-3 or any amendment or successor rule
of similar tenor.

         15. Adjustments upon Changes in Capitalization, Dissolution, Merger or
Asset Sale.

                  (a) Changes in Capitalization. Subject to any required action
         by the stockholders of the Company, the number of Shares of Common
         Stock covered by each outstanding Option and Stock Purchase Right, the
         number of Shares of Common Stock that have been authorized for issuance
         under the Plan but as to which no Options or Stock Purchase Rights have
         yet been granted or which have been returned to the Plan upon
         cancellation or expiration of an Option or Stock Purchase Right, the

                                       11
<PAGE>

         number of Shares that may be added annually to the Shares reserved
         under the Plan by the Board (pursuant to section 3), as well as the
         price per Share of Common Stock covered by each such outstanding Option
         or Stock Purchase Right, shall be proportionately adjusted for any
         increase or decrease in the number of issued Shares of Common Stock
         resulting from a stock split, reverse stock split, stock dividend,
         combination or reclassification of the Common Stock, or any other
         increase or decrease in the number of issued Shares of Common Stock
         effected without receipt of consideration by the Company; provided,
         however, that conversion of any convertible securities of the Company
         shall not be deemed to have been effected without receipt of
         consideration within the meaning of the preceding clause. Such
         adjustment shall be made by the Board, whose determination in that
         respect shall be final, binding and conclusive. Except as expressly
         provided herein, no issuance by the Company of Shares of stock of any
         class, or securities convertible into Shares of stock of any class,
         shall affect, and no adjustment by reason thereof shall be made with
         respect to, the number or price of Shares of Common Stock subject to an
         Option or Stock Purchase Right.

                  (b) Dissolution or Liquidation. In the event of the proposed
         dissolution or liquidation of the Company, the Administrator shall
         notify each Optionee as soon as practicable prior to the effective date
         of such proposed transaction. The Administrator in its discretion may
         provide for an Optionee to have the right to exercise his or her Option
         until 10 days prior to such transaction as to all of the Optioned Stock
         covered thereby, including Shares as to which the Option would not
         otherwise be exercisable. In addition, the Administrator may provide
         that any Company repurchase option applicable to any Shares purchased
         upon exercise of an Option or Stock Purchase Right shall lapse as to
         all such Shares, provided the proposed dissolution or liquidation takes
         place at the time and in the manner contemplated. To the extent it has
         not been previously exercised, an Option or Stock Purchase Right will
         terminate immediately prior to the consummation of such proposed
         action.

                  (c) Merger or Asset Sale. In the event of a merger of the
         Company with or into another corporation, or the sale of substantially
         all of the assets of the Company, each outstanding Option and Stock
         Purchase Right shall be assumed or an equivalent Option or right
         substituted by the successor corporation or a Parent or Subsidiary of
         the successor corporation. With respect to Options granted to an
         Outside Director pursuant to section 14 that are assumed or substituted
         for, if following such assumption or substitution the Optionee's status
         as a Director or a director of the successor corporation, as
         applicable, is terminated other than upon a voluntary resignation by
         the Optionee, then the Optionee shall fully vest in and have the right
         to exercise the Option as to all of the Optioned Stock, including
         Shares as to which it would not otherwise be vested or exercisable.

                  In the event that the successor corporation refuses to assume
         or substitute for the Option or Stock Purchase Right, the Optionee
         shall fully vest in and have the right to exercise the Option or Stock
         Purchase Right as to all of the Optioned Stock, including Shares as to
         which it would not otherwise be vested or exercisable. If an Option or
         Stock Purchase Right becomes fully vested and exercisable in lieu of
         assumption or substitution in the event of a merger or sale of assets,
         the Administrator shall notify the Optionee in writing or
         electronically that the Option or Stock Purchase Right shall be fully
         vested and exercisable for a period of 15 days from the date of such
         notice, and the Option or Stock Purchase Right shall terminate upon the
         expiration of such period.

                  For the purposes of this subsection, the Option or Stock
         Purchase Right shall be considered assumed if, following the merger or
         sale of assets, the Option or right confers the right to purchase or
         receive, for each Share of Optioned Stock subject to the Option or

                                       12
<PAGE>

         Stock Purchase Right immediately prior to the merger or sale of assets,
         the consideration (whether stock, cash or other securities or property)
         received in the merger or sale of assets by holders of Common Stock for
         each Share held on the effective date of the transaction (and if
         holders were offered a choice of consideration, the type of
         consideration chosen by the holders of a majority of the outstanding
         Shares); provided, however, that if such consideration received in the
         merger or sale of assets is not solely common stock of the successor
         corporation or its Parent, the Administrator may, with the consent of
         the successor corporation, provide for the consideration to be received
         upon the exercise of the Option or Stock Purchase Right, for each Share
         of Optioned Stock subject to the Option or Stock Purchase Right, to be
         solely common stock of the successor corporation or its Parent equal in
         Fair Market Value to the per Share consideration received by holders of
         Common Stock in the merger or sale of assets.

         16. Date of Grant. The date of grant of an Option or Stock Purchase
Right shall be, for all purposes, the date on which the Administrator makes the
determination granting such Option or Stock Purchase Right, or such other later
date as is determined by the Administrator. Notice of the determination shall be
provided to each Optionee within a reasonable time after the date of such grant.

         17. Amendment and Termination of the Plan.

                  (a) Amendment and Termination. The Board may at any time
         amend, alter, suspend or terminate the Plan.

                  (b) Stockholder Approval. The Company shall obtain stockholder
         approval of any Plan amendment to the extent necessary and desirable to
         comply with Applicable Laws.

                  (c) Effect of Amendment or Termination. No amendment,
         alteration, suspension or termination of the Plan shall impair the
         rights of any Optionee, unless mutually agreed otherwise between the
         Optionee and the Administrator, which agreement must be in writing and
         signed by the Optionee and the Company. Termination of the Plan shall
         not affect the Administrator's ability to exercise the powers granted
         to it hereunder with respect to Options granted under the Plan prior to
         the date of such termination.

         18. Conditions upon Issuance of Shares.

                  (a) Legal Compliance. Shares shall not be issued pursuant to
         the exercise of an Option or Stock Purchase Right unless the exercise
         of such Option or Stock Purchase Right and the issuance and delivery of
         such Shares shall comply with Applicable Laws and shall be further
         subject to the approval of counsel for the Company with respect to such
         compliance.

                  (b) Investment Representations. As a condition to the exercise
         of an Option or Stock Purchase Right, the Company may require the
         person exercising such Option or Stock Purchase Right to represent and
         warrant at the time of any such exercise that the Shares are being
         purchased only for investment and without any present intention to sell
         or distribute such Shares if, in the opinion of counsel for the
         Company, such a representation is required.

         19. Inability To Obtain Authority. The inability of the Company to
obtain authority from any regulatory body having jurisdiction, which authority
is deemed by the Company's counsel to be necessary to the lawful issuance and
sale of any Shares hereunder, shall relieve the Company of any liability in
respect of the failure to issue or sell such Shares as to which such requisite
authority shall not have been obtained.

                                       13
<PAGE>

         20. Reservation of Shares. The Company, during the term of this Plan,
will at all times reserve and keep available such number of Shares as shall be
sufficient to satisfy the requirements of the Plan.

         21. Stockholder Approval. The Plan shall be subject to approval by the
stockholders of the Company within 12 months after the date the Plan is adopted.
Such stockholder approval shall be obtained in the manner and to the degree
required under Applicable Laws.

                             SECRETARY'S CERTIFICATE

         The undersigned, the duly constituted and elected secretary of FX
Energy, Inc., hereby certifies that pursuant to resolution duly adopted by the
stockholders on May ___, 2004, in accordance with the requirements of law and
the Company's articles of incorporation and bylaws, the foregoing FX Energy,
Inc. 2004 Long-Term Incentive Plan was approved by the affirmative vote of the
holders of a majority of the Shares of Common Stock.

         DATED this 16 day of June, 2004.

                                                  /s/ Scott J. Duncan
                                                 -------------------------------
                                                  Scott J. Duncan, Secretary

                                       14<Page>

                                                                   EXHIBIT 10.16

                            LIBERTY MEDIA CORPORATION
                               2000 INCENTIVE PLAN

               (As Amended and Restated Effective April 19, 2004)

                                    ARTICLE I

                         PURPOSE AND ASSUMPTION OF PLAN

     1.1 PURPOSE. The purpose of the Plan is to promote the success of the
Company by providing a method whereby (i) eligible employees of the Company and
its Subsidiaries and (ii) independent contractors providing services to the
Company and its Subsidiaries may be awarded additional remuneration for services
rendered and encouraged to invest in capital stock of the Company, thereby
increasing their proprietary interest in the Company's businesses, encouraging
them to remain in the employ of the Company or its Subsidiaries, and increasing
their personal interest in the continued success and progress of the Company and
its Subsidiaries. The Plan is also intended to aid in (i) attracting Persons of
exceptional ability to become officers and employees of the Company and its
Subsidiaries and (ii) inducing independent contractors to agree to provide
services to the Company and its Subsidiaries.

     1.2 ASSUMPTION OF PLAN; AMENDMENT AND RESTATEMENT OF PLAN. The Plan was
previously adopted as the Amended and Restated AT&T Corp. Liberty Media Group
2000 Incentive Plan, by the board of directors of AT&T Corp., the Company's
former parent corporation. The Board approved the amendment and restatement of
the Plan, effective August 10, 2001, and assumed and adopted the Plan on behalf
of the Company. The Plan was later amended and restated, effective September 11,
2002.

     1.3 FURTHER AMENDMENT AND RESTATEMENT OF PLAN. The Plan is being further
amended and restated as set forth herein. The Committee has approved the further
amendment and restatement of the Plan as set forth herein, effective April 19,
2004.

                                   ARTICLE II

                                   DEFINITIONS

     2.1 CERTAIN DEFINED TERMS. Capitalized terms not defined elsewhere in the
Plan shall have the following meanings (whether used in the singular or plural):

          "Affiliate" of the Company means any corporation, partnership or other
     business association that, directly or indirectly, through one or more
     intermediaries, controls, is controlled by, or is under common control with
     the Company.

          "Agreement" means a stock option agreement, stock appreciation rights
     agreement, restricted shares agreement, stock units agreement, cash award
     agreement or an agreement evidencing more than one type of Award, specified
     in Section 11.5, as any such Agreement may be supplemented or amended from
     time to time.

<Page>

          "Approved Transaction" means any transaction in which the Board (or,
     if approval of the Board is not required as a matter of law, the
     stockholders of the Company) shall approve (i) any consolidation or merger
     of the Company, or binding share exchange, pursuant to which shares of
     Common Stock of the Company would be changed or converted into or exchanged
     for cash, securities, or other property, other than any such transaction in
     which the common stockholders of the Company immediately prior to such
     transaction have the same proportionate ownership of the Common Stock of,
     and voting power with respect to, the surviving corporation immediately
     after such transaction, (ii) any merger, consolidation or binding share
     exchange to which the Company is a party as a result of which the Persons
     who are common stockholders of the Company immediately prior thereto have
     less than a majority of the combined voting power of the outstanding
     capital stock of the Company ordinarily (and apart from the rights accruing
     under special circumstances) having the right to vote in the election of
     directors immediately following such merger, consolidation or binding share
     exchange, (iii) the adoption of any plan or proposal for the liquidation or
     dissolution of the Company, or (iv) any sale, lease, exchange or other
     transfer (in one transaction or a series of related transactions) of all,
     or substantially all, of the assets of the Company.

          "Award" means a grant of Options, SARs, Restricted Shares, Stock
     Units, Performance Awards, Cash Awards and/or cash amounts under the Plan.

          "Board" means the Board of Directors of the Company.

          "Board Change" means, during any period of two consecutive years,
     individuals who at the beginning of such period constituted the entire
     Board cease for any reason to constitute a majority thereof unless the
     election, or the nomination for election, of each new director was approved
     by a vote of at least two-thirds of the directors then still in office who
     were directors at the beginning of the period.

          "Cash Award" means an Award made pursuant to Section 10.1 of the Plan
     to a Holder that is paid solely on account of the attainment of one or more
     Performance Objectives that have been preestablished by the Committee.

          "Code" means the Internal Revenue Code of 1986, as amended from time
     to time, or any successor statute or statutes thereto. Reference to any
     specific Code section shall include any successor section.

          "Committee" means the committee of the Board appointed pursuant to
     Section 3.1 to administer the Plan.

          "Common Stock" means each or any (as the context may require) series
     of the Company's common stock.

          "Company" means Liberty Media Corporation, a Delaware corporation.

                                       2
<Page>

          "Control Purchase" means any transaction (or series of related
     transactions) in which (i) any person (as such term is defined in Sections
     13(d)(3) and 14(d)(2) of the Exchange Act), corporation or other entity
     (other than the Company, any Subsidiary of the Company or any employee
     benefit plan sponsored by the Company or any Subsidiary of the Company)
     shall purchase any Common Stock of the Company (or securities convertible
     into Common Stock of the Company) for cash, securities or any other
     consideration pursuant to a tender offer or exchange offer, without the
     prior consent of the Board, or (ii) any person (as such term is so
     defined), corporation or other entity (other than the Company, any
     Subsidiary of the Company, any employee benefit plan sponsored by the
     Company or any Subsidiary of the Company or any Exempt Person (as defined
     below)) shall become the "beneficial owner" (as such term is defined in
     Rule 13d-3 under the Exchange Act), directly or indirectly, of securities
     of the Company representing 20% or more of the combined voting power of the
     then outstanding securities of the Company ordinarily (and apart from the
     rights accruing under special circumstances) having the right to vote in
     the election of directors (calculated as provided in Rule 13d-3(d) under
     the Exchange Act in the case of rights to acquire the Company's
     securities), other than in a transaction (or series of related
     transactions) approved by the Board. For purposes of this definition,
     "Exempt Person" means each of (a) the Chairman of the Board, the President
     and each of the directors of the Company as of April 19, 2004, and (b) the
     respective family members, estates and heirs of each of the Persons
     referred to in clause (a) above and any trust or other investment vehicle
     for the primary benefit of any of such Persons or their respective family
     members or heirs. As used with respect to any Person, the term "family
     member" means the spouse, siblings and lineal descendants of such Person.

          "Disability" means the inability to engage in any substantial gainful
     activity by reason of any medically determinable physical or mental
     impairment which can be expected to result in death or which has lasted or
     can be expected to last for a continuous period of not less than 12 months.

          "Dividend Equivalents" means, with respect to Restricted Shares to be
     issued at the end of the Restriction Period, to the extent specified by the
     Committee only, an amount equal to all dividends and other distributions
     (or the economic equivalent thereof) which are payable to stockholders of
     record during the Restriction Period on a like number and kind of shares of
     Common Stock.

          "Domestic Relations Order" means a domestic relations order as defined
     by the Code or Title I of the Employee Retirement Income Security Act, or
     the rules thereunder.

          "Effective Date" means December 6, 2000, the date on which the Plan
     originally became effective.

          "Equity Security" shall have the meaning ascribed to such term in
     Section 3(a)(11) of the Exchange Act, and an equity security of an issuer
     shall have the meaning ascribed thereto in Rule 16a-1 promulgated under the
     Exchange Act, or any successor Rule.

                                       3
<Page>

          "Exchange Act" means the Securities Exchange Act of 1934, as amended
     from time to time, or any successor statute or statutes thereto. Reference
     to any specific Exchange Act section shall include any successor section.

          "Fair Market Value" of a share of any series of Common Stock on any
     day means the last sale price (or, if no last sale price is reported, the
     average of the high bid and low asked prices) for a share of such series of
     Common Stock on such day (or, if such day is not a trading day, on the next
     preceding trading day) as reported on the consolidated transaction
     reporting system for the principal national securities exchange on which
     shares of such series of Common Stock are listed on such day or if such
     shares are not then listed on a national securities exchange, then as
     reported on Nasdaq or, if such shares are not then listed or quoted on
     Nasdaq, then as quoted by the National Quotation Bureau Incorporated. If
     for any day the Fair Market Value of a share of the applicable series of
     Common Stock is not determinable by any of the foregoing means, then the
     Fair Market Value for such day shall be determined in good faith by the
     Committee on the basis of such quotations and other considerations as the
     Committee deems appropriate.

          "Free Standing SAR" has the meaning ascribed thereto in Section 7.1.

          "Holder" means a Person who has received an Award under the Plan.

          "Nasdaq" means The Nasdaq Stock Market.

          "Nonqualified Stock Option" means a stock option granted under Article
     VI.

          "Option" means a Nonqualified Stock Option.

          "Performance Award" means an Award made pursuant to Article X of the
     Plan to a Holder that is subject to the attainment of one or more
     Performance Objectives.

          "Performance Objective" means a standard established by the Committee
     to determine in whole or in part whether a Performance Award shall be
     earned.

          "Person" means an individual, corporation, limited liability company,
     partnership, trust, incorporated or unincorporated association, joint
     venture or other entity of any kind.

          "Plan" means this Liberty Media Corporation 2000 Incentive Plan (As
     Amended and Restated Effective April 19, 2004).

          "Restricted Shares" means shares of any series of Common Stock or the
     right to receive shares of any specified series of Common Stock, as the
     case may be, awarded pursuant to Article VIII.

          "Restriction Period" means a period of time beginning on the date of
     each Award of Restricted Shares and ending on the Vesting Date with respect
     to such Award.

                                       4
<Page>

          "Retained Distribution" has the meaning ascribed thereto in Section
     8.3.

          "SARs" means stock appreciation rights, awarded pursuant to Article
     VII, with respect to shares of any specified series of Common Stock.

          "Stock Unit Awards" has the meaning ascribed thereto in Section 9.1.

          "Subsidiary" of a Person means any present or future subsidiary (as
     defined in Section 424(f) of the Code) of such Person or any business
     entity in which such Person owns, directly or indirectly, 50% or more of
     the voting, capital or profits interests. An entity shall be deemed a
     subsidiary of a Person for purposes of this definition only for such
     periods as the requisite ownership or control relationship is maintained.

          "Tandem SARs" has the meaning ascribed thereto in Section 7.1.

          "Vesting Date," with respect to any Restricted Shares awarded
     hereunder, means the date on which such Restricted Shares cease to be
     subject to a risk of forfeiture, as designated in or determined in
     accordance with the Agreement with respect to such Award of Restricted
     Shares pursuant to Article VIII. If more than one Vesting Date is
     designated for an Award of Restricted Shares, reference in the Plan to a
     Vesting Date in respect of such Award shall be deemed to refer to each part
     of such Award and the Vesting Date for such part.

                                   ARTICLE III

                                 ADMINISTRATION

     3.1 COMMITTEE. The Plan shall be administered by the Compensation Committee
of the Board unless a different committee is appointed by the Board. The
Committee shall be comprised of not less than two Persons. The Board may from
time to time appoint members of the Committee in substitution for or in addition
to members previously appointed, may fill vacancies in the Committee and may
remove members of the Committee. The Committee shall select one of its members
as its chairman and shall hold its meetings at such times and places as it shall
deem advisable. A majority of its members shall constitute a quorum and all
determinations shall be made by a majority of such quorum. Any determination
reduced to writing and signed by all of the members shall be as fully effective
as if it had been made by a majority vote at a meeting duly called and held.

     3.2 POWERS. The Committee shall have full power and authority to grant to
eligible Persons Options under Article VI of the Plan, SARs under Article VII of
the Plan, Restricted Shares under Article VIII of the Plan, Stock Units under
Article IX of the Plan, Cash Awards under Article X of the Plan and/or
Performance Awards under Article X of the Plan, to determine the terms and
conditions (which need not be identical) of all Awards so granted, to interpret
the provisions of the Plan and any Agreements relating to Awards granted under
the Plan and to supervise the administration of the Plan. The Committee in
making an Award may

                                       5
<Page>

provide for the granting or issuance of additional, replacement or alternative
Awards upon the occurrence of specified events, including the exercise of the
original Award. The Committee shall have sole authority in the selection of
Persons to whom Awards may be granted under the Plan and in the determination of
the timing, pricing and amount of any such Award, subject only to the express
provisions of the Plan. In making determinations hereunder, the Committee may
take into account the nature of the services rendered by the respective
employees and independent contractors, their present and potential contributions
to the success of the Company and its Subsidiaries, and such other factors as
the Committee in its discretion deems relevant.

     3.3 INTERPRETATION. The Committee is authorized, subject to the provisions
of the Plan, to establish, amend and rescind such rules and regulations as it
deems necessary or advisable for the proper administration of the Plan and to
take such other action in connection with or in relation to the Plan as it deems
necessary or advisable. Each action and determination made or taken pursuant to
the Plan by the Committee, including any interpretation or construction of the
Plan, shall be final and conclusive for all purposes and upon all Persons. No
member of the Committee shall be liable for any action or determination made or
taken by him or the Committee in good faith with respect to the Plan.

                                   ARTICLE IV

                           SHARES SUBJECT TO THE PLAN

     4.1 NUMBER OF SHARES. Subject to the provisions of this Article IV, the
maximum number of shares of Common Stock with respect to which Awards may be
granted during the term of the Plan shall be 160 million shares. Shares of
Common Stock will be made available from the authorized but unissued shares of
the Company or from shares reacquired by the Company, including shares purchased
in the open market. The shares of Common Stock subject to (i) any Award granted
under the Plan that shall expire, terminate or be annulled for any reason
without having been exercised (or considered to have been exercised as provided
in Section 7.2), (ii) any Award of any SARs granted under the Plan that shall be
exercised for cash, and (iii) any Award of Restricted Shares or Stock Units that
shall be forfeited prior to becoming vested (provided that the Holder received
no benefits of ownership of such Restricted Shares or Stock Units other than
voting rights and the accumulation of Retained Distributions and unpaid Dividend
Equivalents that are likewise forfeited) shall again be available for purposes
of the Plan. Except for Awards described in Section 11.1, no Person may be
granted in any calendar year Awards covering more than 25 million shares of
Common Stock (as such amount may be adjusted from time to time as provided in
Section 4.2). No Person shall receive payment for Performance Awards during any
calendar year aggregating in excess of $10,000,000.

     4.2 ADJUSTMENTS. If the Company subdivides its outstanding shares of any
series of Common Stock into a greater number of shares of such series of Common
Stock (by stock dividend, stock split, reclassification, or otherwise) or
combines its outstanding shares of any series of Common Stock into a smaller
number of shares of such series of Common Stock (by reverse stock split,
reclassification, or otherwise) or if the Committee determines that any stock
dividend, extraordinary cash dividend, reclassification, recapitalization,
reorganization, split-up, spin-off, combination, exchange of shares, warrants or
rights offering to purchase such series of

                                       6
<Page>

Common Stock or other similar corporate event (including mergers or
consolidations other than those which constitute Approved Transactions,
adjustments with respect to which shall be governed by Section 11.1(b)) affects
any series of Common Stock so that an adjustment is required to preserve the
benefits or potential benefits intended to be made available under the Plan,
then the Committee, in its sole discretion and in such manner as the Committee
may deem equitable and appropriate, may make such adjustments to any or all of
(i) the number and kind of shares of stock which thereafter may be awarded,
optioned or otherwise made subject to the benefits contemplated by the Plan,
(ii) the number and kind of shares of stock subject to outstanding Awards, and
(iii) the purchase or exercise price and the relevant appreciation base with
respect to any of the foregoing, PROVIDED, HOWEVER, that the number of shares
subject to any Award shall always be a whole number. Notwithstanding the
foregoing, if all shares of any series of Common Stock are redeemed, then each
outstanding Award shall be adjusted to substitute for the shares of such series
of Common Stock subject thereto the kind and amount of cash, securities or other
assets issued or paid in the redemption of the equivalent number of shares of
such series of Common Stock and otherwise the terms of such Award, including, in
the case of Options or similar rights, the total exercise price, and, in the
case of Free Standing SARs, the base price, shall remain constant before and
after the substitution (unless otherwise determined by the Committee and
provided in the applicable Agreement). The Committee may, if deemed appropriate,
provide for a cash payment to any Holder of an Award in connection with any
adjustment made pursuant to this Section 4.2.

                                    ARTICLE V

                                   ELIGIBILITY

     5.1 GENERAL. The Persons who shall be eligible to participate in the Plan
and to receive Awards under the Plan shall, subject to Section 5.2, be such
Persons who are employees (including officers and directors) of or independent
contractors providing services to the Company or its Subsidiaries as the
Committee shall select. Awards may be made to employees or independent
contractors who hold or have held Awards under the Plan or any similar or other
awards under any other plan of the Company or any of its Affiliates.

     5.2 INELIGIBILITY. No member of the Committee, while serving as such, shall
be eligible to receive an Award.

                                   ARTICLE VI

                                  STOCK OPTIONS

     6.1 GRANT OF OPTIONS. Subject to the limitations of the Plan, the Committee
shall designate from time to time those eligible Persons to be granted Options,
the time when each Option shall be granted to such eligible Persons, the series
and number of shares of Common Stock subject to such Option, and, subject to
Section 6.2, the purchase price of the shares of Common Stock subject to such
Option.

                                       7
<Page>

     6.2 OPTION PRICE. The price at which shares may be purchased upon exercise
of an Option shall be fixed by the Committee and may be more than, less than or
equal to the Fair Market Value of the shares of the applicable series of Common
Stock subject to the Option as of the date the Option is granted.

     6.3 TERM OF OPTIONS. Subject to the provisions of the Plan with respect to
death, retirement and termination of employment, the term of each Option shall
be for such period as the Committee shall determine as set forth in the
applicable Agreement.

     6.4 EXERCISE OF OPTIONS. An Option granted under the Plan shall become (and
remain) exercisable during the term of the Option to the extent provided in the
applicable Agreement and the Plan and, unless the Agreement otherwise provides,
may be exercised to the extent exercisable, in whole or in part, at any time and
from time to time during such term; PROVIDED, HOWEVER, that subsequent to the
grant of an Option, the Committee, at any time before complete termination of
such Option, may accelerate the time or times at which such Option may be
exercised in whole or in part (without reducing the term of such Option).

     6.5 MANNER OF EXERCISE.

          (a) FORM OF PAYMENT. An Option shall be exercised by written notice to
     the Company upon such terms and conditions as the Agreement may provide and
     in accordance with such other procedures for the exercise of Options as the
     Committee may establish from time to time. The method or methods of payment
     of the purchase price for the shares to be purchased upon exercise of an
     Option and of any amounts required by Section 11.9 shall be determined by
     the Committee and may consist of (i) cash, (ii) check, (iii) promissory
     note (subject to applicable law), (iv) whole shares of any series of Common
     Stock, (v) the withholding of shares of the applicable series of Common
     Stock issuable upon such exercise of the Option, (vi) the delivery,
     together with a properly executed exercise notice, of irrevocable
     instructions to a broker to deliver promptly to the Company the amount of
     sale or loan proceeds required to pay the purchase price, or (vii) any
     combination of the foregoing methods of payment, or such other
     consideration and method of payment as may be permitted for the issuance of
     shares under the Delaware General Corporation Law. The permitted method or
     methods of payment of the amounts payable upon exercise of an Option, if
     other than in cash, shall be set forth in the applicable Agreement and may
     be subject to such conditions as the Committee deems appropriate.

          (b) VALUE OF SHARES. Unless otherwise determined by the Committee and
     provided in the applicable Agreement, shares of any series of Common Stock
     delivered in payment of all or any part of the amounts payable in
     connection with the exercise of an Option, and shares of any series of
     Common Stock withheld for such payment, shall be valued for such purpose at
     their Fair Market Value as of the exercise date.

          (c) ISSUANCE OF SHARES. The Company shall effect the transfer of the
     shares of Common Stock purchased under the Option as soon as practicable
     after the exercise thereof and payment in full of the purchase price
     therefor and of any amounts required by

                                       8
<Page>

     Section 11.9, and within a reasonable time thereafter, such transfer shall
     be evidenced on the books of the Company. Unless otherwise determined by
     the Committee and provided in the applicable Agreement, (i) no Holder or
     other Person exercising an Option shall have any of the rights of a
     stockholder of the Company with respect to shares of Common Stock subject
     to an Option granted under the Plan until due exercise and full payment has
     been made, and (ii) no adjustment shall be made for cash dividends or other
     rights for which the record date is prior to the date of such due exercise
     and full payment.

     6.6 NONTRANSFERABILITY. Unless otherwise determined by the Committee and
provided in the applicable Agreement, Options shall not be transferable other
than by will or the laws of descent and distribution or pursuant to a Domestic
Relations Order, and, except as otherwise required pursuant to a Domestic
Relations Order, Options may be exercised during the lifetime of the Holder
thereof only by such Holder (or his or her court-appointed legal
representative).

                                   ARTICLE VII

                                      SARs

     7.1 GRANT OF SARs. Subject to the limitations of the Plan, SARs may be
granted by the Committee to such eligible Persons in such numbers, with respect
to any specified series of Common Stock, and at such times during the term of
the Plan as the Committee shall determine. A SAR may be granted to a Holder of
an Option (hereinafter called a "related Option") with respect to all or a
portion of the shares of Common Stock subject to the related Option (a "Tandem
SAR") or may be granted separately to an eligible employee (a "Free Standing
SAR"). Subject to the limitations of the Plan, SARs shall be exercisable in
whole or in part upon notice to the Company upon such terms and conditions as
are provided in the Agreement.

     7.2 TANDEM SARs. A Tandem SAR may be granted either concurrently with the
grant of the related Option or at any time thereafter prior to the complete
exercise, termination, expiration or cancellation of such related Option. Tandem
SARs shall be exercisable only at the time and to the extent that the related
Option is exercisable (and may be subject to such additional limitations on
exercisability as the Agreement may provide) and in no event after the complete
termination or full exercise of the related Option. Upon the exercise or
termination of the related Option, the Tandem SARs with respect thereto shall be
canceled automatically to the extent of the number of shares of Common Stock
with respect to which the related Option was so exercised or terminated. Subject
to the limitations of the Plan, upon the exercise of a Tandem SAR and unless
otherwise determined by the Committee and provided in the applicable Agreement,
(i) the Holder thereof shall be entitled to receive from the Company, for each
share of the applicable series of Common Stock with respect to which the Tandem
SAR is being exercised, consideration (in the form determined as provided in
Section 7.4) equal in value to the excess of the Fair Market Value of a share of
the applicable series of Common Stock with respect to which the Tandem SAR was
granted on the date of exercise over the related Option purchase price per
share, and (ii) the related Option with respect thereto shall be canceled
automatically to the extent of the number of shares of Common Stock with respect
to which the Tandem SAR was so exercised.

                                       9
<Page>

     7.3 FREE STANDING SARs. Free Standing SARs shall be exercisable at the
time, to the extent and upon the terms and conditions set forth in the
applicable Agreement. The base price of a Free Standing SAR may be more than,
less than or equal to the Fair Market Value of the applicable series of Common
Stock with respect to which the Free Standing SAR was granted as of the date the
Free Standing SAR is granted. Subject to the limitations of the Plan, upon the
exercise of a Free Standing SAR and unless otherwise determined by the Committee
and provided in the applicable Agreement, the Holder thereof shall be entitled
to receive from the Company, for each share of the applicable series of Common
Stock with respect to which the Free Standing SAR is being exercised,
consideration (in the form determined as provided in Section 7.4) equal in value
to the excess of the Fair Market Value of a share of the applicable series of
Common Stock with respect to which the Free Standing SAR was granted on the date
of exercise over the base price per share of such Free Standing SAR.

     7.4 CONSIDERATION. The consideration to be received upon the exercise of a
SAR by the Holder shall be paid in cash, shares of the applicable series of
Common Stock with respect to which the SAR was granted (valued at Fair Market
Value on the date of exercise of such SAR), a combination of cash and such
shares of the applicable series of Common Stock or such other consideration, in
each case, as provided in the Agreement. No fractional shares of Common Stock
shall be issuable upon exercise of a SAR, and unless otherwise provided in the
applicable Agreement, the Holder will receive cash in lieu of fractional shares.
Unless the Committee shall otherwise determine, to the extent a Free Standing
SAR is exercisable, it will be exercised automatically for cash on its
expiration date.

     7.5 LIMITATIONS. The applicable Agreement may provide for a limit on the
amount payable to a Holder upon exercise of SARs at any time or in the
aggregate, for a limit on the number of SARs that may be exercised by the Holder
in whole or in part for cash during any specified period, for a limit on the
time periods during which a Holder may exercise SARs, and for such other limits
on the rights of the Holder and such other terms and conditions of the SAR,
including a condition that the SAR may be exercised only in accordance with
rules and regulations adopted from time to time, as the Committee may determine.
Unless otherwise so provided in the applicable Agreement, any such limit
relating to a Tandem SAR shall not restrict the exercisability of the related
Option. Such rules and regulations may govern the right to exercise SARs granted
prior to the adoption or amendment of such rules and regulations as well as SARs
granted thereafter.

     7.6 EXERCISE. For purposes of this Article VII, the date of exercise of a
SAR shall mean the date on which the Company shall have received notice from the
Holder of the SAR of the exercise of such SAR (unless otherwise determined by
the Committee and provided in the applicable Agreement).

     7.7 NONTRANSFERABILITY. Unless otherwise determined by the Committee and
provided in the applicable Agreement, (i) SARs shall not be transferable other
than by will or the laws of descent and distribution or pursuant to a Domestic
Relations Order, and (ii) except as otherwise required pursuant to a Domestic
Relations Order, SARs may be exercised during the lifetime of the Holder thereof
only by such Holder (or his or her court-appointed legal representative).

                                       10
<Page>

                                  ARTICLE VIII

                                RESTRICTED SHARES

     8.1 GRANT. Subject to the limitations of the Plan, the Committee shall
designate those eligible Persons to be granted Awards of Restricted Shares,
shall determine the time when each such Award shall be granted, shall determine
whether shares of Common Stock covered by Awards of Restricted Shares will be
issued at the beginning or the end of the Restriction Period and whether
Dividend Equivalents will be paid during the Restriction Period in the event
shares of the applicable series of Common Stock are to be issued at the end of
the Restriction Period, and shall designate (or set forth the basis for
determining) the Vesting Date or Vesting Dates for each Award of Restricted
Shares, and may prescribe other restrictions, terms and conditions applicable to
the vesting of such Restricted Shares in addition to those provided in the Plan.
The Committee shall determine the price, if any, to be paid by the Holder for
the Restricted Shares; PROVIDED, HOWEVER, that the issuance of Restricted Shares
shall be made for at least the minimum consideration necessary to permit such
Restricted Shares to be deemed fully paid and nonassessable. All determinations
made by the Committee pursuant to this Section 8.1 shall be specified in the
Agreement.

     8.2 ISSUANCE OF RESTRICTED SHARES AT BEGINNING OF THE RESTRICTION PERIOD.
If shares of the applicable series of Common Stock are issued at the beginning
of the Restriction Period, the stock certificate or certificates representing
such Restricted Shares shall be registered in the name of the Holder to whom
such Restricted Shares shall have been awarded. During the Restriction Period,
certificates representing the Restricted Shares and any securities constituting
Retained Distributions shall bear a restrictive legend to the effect that
ownership of the Restricted Shares (and such Retained Distributions), and the
enjoyment of all rights appurtenant thereto, are subject to the restrictions,
terms and conditions provided in the Plan and the applicable Agreement. Such
certificates shall remain in the custody of the Company or its designee, and the
Holder shall deposit with the custodian stock powers or other instruments of
assignment, each endorsed in blank, so as to permit retransfer to the Company of
all or any portion of the Restricted Shares and any securities constituting
Retained Distributions that shall be forfeited or otherwise not become vested in
accordance with the Plan and the applicable Agreement.

     8.3 RESTRICTIONS. Restricted Shares issued at the beginning of the
Restriction Period shall constitute issued and outstanding shares of the
applicable series of Common Stock for all corporate purposes. The Holder will
have the right to vote such Restricted Shares, to receive and retain such
dividends and distributions, as the Committee may designate, paid or distributed
on such Restricted Shares, and to exercise all other rights, powers and
privileges of a Holder of shares of the applicable series of Common Stock with
respect to such Restricted Shares; EXCEPT, THAT, unless otherwise determined by
the Committee and provided in the applicable Agreement, (i) the Holder will not
be entitled to delivery of the stock certificate or certificates representing
such Restricted Shares until the Restriction Period shall have expired and
unless all other vesting requirements with respect thereto shall have been
fulfilled or waived; (ii) the Company or its designee will retain custody of the
stock certificate or certificates representing the Restricted Shares during the
Restriction Period as provided in Section 8.2; (iii) other than such dividends

                                       11
<Page>

and distributions as the Committee may designate, the Company or its designee
will retain custody of all distributions ("Retained Distributions") made or
declared with respect to the Restricted Shares (and such Retained Distributions
will be subject to the same restrictions, terms and vesting, and other
conditions as are applicable to the Restricted Shares) until such time, if ever,
as the Restricted Shares with respect to which such Retained Distributions shall
have been made, paid or declared shall have become vested, and such Retained
Distributions shall not bear interest or be segregated in a separate account;
(iv) the Holder may not sell, assign, transfer, pledge, exchange, encumber or
dispose of the Restricted Shares or any Retained Distributions or his interest
in any of them during the Restriction Period; and (v) a breach of any
restrictions, terms or conditions provided in the Plan or established by the
Committee with respect to any Restricted Shares or Retained Distributions will
cause a forfeiture of such Restricted Shares and any Retained Distributions with
respect thereto.

     8.4 ISSUANCE OF STOCK AT END OF THE RESTRICTION PERIOD. Restricted Shares
issued at the end of the Restriction Period shall not constitute issued and
outstanding shares of the applicable series of Common Stock, and the Holder
shall not have any of the rights of a stockholder with respect to the shares of
Common Stock covered by such an Award of Restricted Shares, in each case until
such shares shall have been transferred to the Holder at the end of the
Restriction Period. If and to the extent that shares of Common Stock are to be
issued at the end of the Restriction Period, the Holder shall be entitled to
receive Dividend Equivalents with respect to the shares of Common Stock covered
thereby either (i) during the Restriction Period or (ii) in accordance with the
rules applicable to Retained Distributions, as the Committee may specify in the
Agreement.

     8.5 CASH PAYMENTS. In connection with any Award of Restricted Shares, an
Agreement may provide for the payment of a cash amount to the Holder of such
Restricted Shares at any time after such Restricted Shares shall have become
vested. Such cash amounts shall be payable in accordance with such additional
restrictions, terms and conditions as shall be prescribed by the Committee in
the Agreement and shall be in addition to any other salary, incentive, bonus or
other compensation payments which such Holder shall be otherwise entitled or
eligible to receive from the Company.

     8.6 COMPLETION OF RESTRICTION PERIOD. On the Vesting Date with respect to
each Award of Restricted Shares and the satisfaction of any other applicable
restrictions, terms and conditions, (i) all or the applicable portion of such
Restricted Shares shall become vested, (ii) any Retained Distributions and any
unpaid Dividend Equivalents with respect to such Restricted Shares shall become
vested to the extent that the Restricted Shares related thereto shall have
become vested, and (iii) any cash amount to be received by the Holder with
respect to such Restricted Shares shall become payable, all in accordance with
the terms of the applicable Agreement. Any such Restricted Shares, Retained
Distributions and any unpaid Dividend Equivalents that shall not become vested
shall be forfeited to the Company, and the Holder shall not thereafter have any
rights (including dividend and voting rights) with respect to such Restricted
Shares, Retained Distributions and any unpaid Dividend Equivalents that shall
have been so forfeited. The Committee may, in its discretion, provide that the
delivery of any Restricted Shares, Retained Distributions and unpaid Dividend
Equivalents that shall have become vested, and payment of any related cash
amounts that shall have become payable under

                                       12
<Page>

this Article VIII, shall be deferred until such date or dates as the recipient
may elect. Any election of a recipient pursuant to the preceding sentence shall
be filed in writing with the Committee in accordance with such rules and
regulations, including any deadline for the making of such an election, as the
Committee may provide.

                                   ARTICLE IX

                                   STOCK UNITS

     9.1 GRANT. In addition to granting Awards of Options, SARs and Restricted
Shares, the Committee shall, subject to the limitations of the Plan, have
authority to grant to eligible Persons Awards of Stock Units which may be in the
form of shares of any specified series of Common Stock or units, the value of
which is based, in whole or in part, on the Fair Market Value of the shares of
any specified series of Common Stock. Subject to the provisions of the Plan,
including any rules established pursuant to Section 9.2, Awards of Stock Units
shall be subject to such terms, restrictions, conditions, vesting requirements
and payment rules as the Committee may determine in its discretion, which need
not be identical for each Award. The determinations made by the Committee
pursuant to this Section 9.1 shall be specified in the applicable Agreement.

     9.2 RULES. The Committee may, in its discretion, establish any or all of
the following rules for application to an Award of Stock Units:

          (a) Any shares of Common Stock which are part of an Award of Stock
     Units may not be assigned, sold, transferred, pledged or otherwise
     encumbered prior to the date on which the shares are issued or, if later,
     the date provided by the Committee at the time of the Award.

          (b) Such Awards may provide for the payment of cash consideration by
     the Person to whom such Award is granted or provide that the Award, and any
     shares of Common Stock to be issued in connection therewith, if applicable,
     shall be delivered without the payment of cash consideration; PROVIDED,
     HOWEVER, that the issuance of any shares of Common Stock in connection with
     an Award of Stock Units shall be for at least the minimum consideration
     necessary to permit such shares to be deemed fully paid and nonassessable.

          (c) Awards of Stock Units may provide for deferred payment schedules,
     vesting over a specified period of employment, the payment (on a current or
     deferred basis) of dividend equivalent amounts with respect to the number
     of shares of Common Stock covered by the Award, and elections by the
     employee to defer payment of the Award or the lifting of restrictions on
     the Award, if any.

          (d) In such circumstances as the Committee may deem advisable, the
     Committee may waive or otherwise remove, in whole or in part, any
     restrictions or limitations to which a Stock Unit Award was made subject at
     the time of grant.

                                       13
<Page>

                                    ARTICLE X

                       CASH AWARDS AND PERFORMANCE AWARDS

     10.1 CASH AWARDS. In addition to granting Options, SARs, Restricted Shares
and Stock Units, the Committee shall, subject to the limitations of the Plan,
have authority to grant to eligible Persons Cash Awards. Each Cash Award shall
be subject to such terms and conditions, restrictions and contingencies, if any,
as the Committee shall determine. Restrictions and contingencies limiting the
right to receive a cash payment pursuant to a Cash Award shall be based upon the
achievement of single or multiple Performance Objectives over a performance
period established by the Committee. The determinations made by the Committee
pursuant to this Section 10.1 shall be specified in the applicable Agreement.

     10.2 DESIGNATION AS A PERFORMANCE AWARD. The Committee shall have the right
to designate any Award of Options, SARs, Restricted Shares or Stock Units as a
Performance Award. All Cash Awards shall be designated as Performance Awards.

     10.3 PERFORMANCE OBJECTIVES. The grant or vesting of a Performance Award
shall be subject to the achievement of Performance Objectives over a performance
period established by the Committee based upon one or more of the following
business criteria that apply to the Holder, one or more business units,
divisions or Subsidiaries of the Company or the applicable sector of the
Company, or the Company as a whole, and if so desired by the Committee, by
comparison with a peer group of companies: increased revenue; net income
measures (including income after capital costs and income before or after
taxes); stock price measures (including growth measures and total stockholder
return); price per share of Common Stock; market share; earnings per share
(actual or targeted growth); earnings before interest, taxes, depreciation and
amortization (EBITDA); economic value added (or an equivalent metric); market
value added; debt to equity ratio; cash flow measures (including cash flow
return on capital, cash flow return on tangible capital, net cash flow and net
cash flow before financing activities); return measures (including return on
equity, return on average assets, return on capital, risk-adjusted return on
capital, return on investors' capital and return on average equity); operating
measures (including operating income, funds from operations, cash from
operations, after-tax operating income, sales volumes, production volumes and
production efficiency); expense measures (including overhead cost and general
and administrative expense); margins; stockholder value; total stockholder
return; proceeds from dispositions; total market value and corporate values
measures (including ethics compliance, environmental and safety). Unless
otherwise stated, such a Performance Objective need not be based upon an
increase or positive result under a particular business criterion and could
include, for example, maintaining the status quo or limiting economic losses
(measured, in each case, by reference to specific business criteria). The
Committee shall have the authority to determine whether the Performance
Objectives and other terms and conditions of the Award are satisfied, and the
Committee's determination as to the achievement of Performance Objectives
relating to a Performance Award shall be made in writing.

     10.4 SECTION 162(m) OF THE CODE. Notwithstanding the foregoing provisions,
if the Committee intends for a Performance Award to be granted and administered
in a manner designed to preserve the deductibility of the compensation resulting
from such Award in

                                       14
<Page>

accordance with Section 162(m) of the Code, then the Performance Objectives for
such particular Performance Award relative to the particular period of service
to which the Performance Objectives relate shall be established by the Committee
in writing (i) no later than 90 days after the beginning of such period and (ii)
prior to the completion of 25% of such period.

     10.5 WAIVER OF PERFORMANCE OBJECTIVES. The Committee shall have no
discretion to modify or waive the Performance Objectives or conditions to the
grant or vesting of a Performance Award unless such Award is not intended to
qualify as qualified performance-based compensation under Section 162(m) of the
Code and the relevant Agreement provides for such discretion.

                                   ARTICLE XI

                               GENERAL PROVISIONS

     11.1 ACCELERATION OF AWARDS.

          (a) DEATH OR DISABILITY. If a Holder's employment shall terminate by
     reason of death or Disability, notwithstanding any contrary waiting period,
     installment period, vesting schedule or Restriction Period in any Agreement
     or in the Plan, unless the applicable Agreement provides otherwise: (i) in
     the case of an Option or SAR, each outstanding Option or SAR granted under
     the Plan shall immediately become exercisable in full in respect of the
     aggregate number of shares covered thereby; (ii) in the case of Restricted
     Shares, the Restriction Period applicable to each such Award of Restricted
     Shares shall be deemed to have expired and all such Restricted Shares, any
     related Retained Distributions and any unpaid Dividend Equivalents shall
     become vested and any related cash amounts payable pursuant to the
     applicable Agreement shall be adjusted in such manner as may be provided in
     the Agreement; and (iii) in the case of Stock Units, each such Award of
     Stock Units shall become vested in full.

          (b) APPROVED TRANSACTIONS; BOARD CHANGE; CONTROL PURCHASE. In the
     event of any Approved Transaction, Board Change or Control Purchase,
     notwithstanding any contrary waiting period, installment period, vesting
     schedule or Restriction Period in any Agreement or in the Plan, unless the
     applicable Agreement provides otherwise: (i) in the case of an Option or
     SAR, each such outstanding Option or SAR granted under the Plan shall
     become exercisable in full in respect of the aggregate number of shares
     covered thereby; (ii) in the case of Restricted Shares, the Restriction
     Period applicable to each such Award of Restricted Shares shall be deemed
     to have expired and all such Restricted Shares, any related Retained
     Distributions and any unpaid Dividend Equivalents shall become vested and
     any related cash amounts payable pursuant to the applicable Agreement shall
     be adjusted in such manner as may be provided in the Agreement; and (iii)
     in the case of Stock Units, each such Award of Stock Units shall become
     vested in full, in each case effective upon the Board Change or Control
     Purchase or immediately prior to consummation of the Approved Transaction.
     The effect, if any, on a Cash Award of an Approved Transaction, Board
     Change or Control Purchase shall be prescribed in the applicable Agreement.
     Notwithstanding the foregoing, unless otherwise provided in the

                                       15
<Page>

     applicable Agreement, the Committee may, in its discretion, determine that
     any or all outstanding Awards of any or all types granted pursuant to the
     Plan will not vest or become exercisable on an accelerated basis in
     connection with an Approved Transaction if effective provision has been
     made for the taking of such action which, in the opinion of the Committee,
     is equitable and appropriate to substitute a new Award for such Award or to
     assume such Award and to make such new or assumed Award, as nearly as may
     be practicable, equivalent to the old Award (before giving effect to any
     acceleration of the vesting or exercisability thereof), taking into
     account, to the extent applicable, the kind and amount of securities, cash
     or other assets into or for which the applicable series of Common Stock may
     be changed, converted or exchanged in connection with the Approved
     Transaction.

     11.2 TERMINATION OF EMPLOYMENT.

          (a) GENERAL. If a Holder's employment shall terminate prior to the
     complete exercise of an Option or SAR (or deemed exercise thereof, as
     provided in Section 7.2) or during the Restriction Period with respect to
     any Restricted Shares or prior to the vesting or complete exercise of any
     Stock Units, then such Option, SAR or Stock Unit shall thereafter be
     exercisable, and the Holder's rights to any unvested Restricted Shares,
     Retained Distributions, unpaid Dividend Equivalents and related cash
     amounts and any such unvested Stock Units shall thereafter vest, in each
     case solely to the extent provided in the applicable Agreement; PROVIDED,
     HOWEVER, that, unless otherwise determined by the Committee and provided in
     the applicable Agreement, (i) no Option or SAR may be exercised after the
     scheduled expiration date thereof; (ii) if the Holder's employment
     terminates by reason of death or Disability, the Option or SAR shall remain
     exercisable for a period of at least one year following such termination
     (but not later than the scheduled expiration of such Option or SAR); and
     (iii) any termination of the Holder's employment for cause will be treated
     in accordance with the provisions of Section 11.2(b). The effect on a Cash
     Award of the termination of a Holder's employment for any reason, including
     by reason of death or Disability or for cause, shall be prescribed in the
     applicable Agreement.

          (b) TERMINATION FOR CAUSE. If a Holder's employment with the Company
     or a Subsidiary of the Company shall be terminated by the Company or such
     Subsidiary during the Restriction Period with respect to any Restricted
     Shares, or prior to the exercise of any Option or SAR or prior to the
     vesting or complete exercise of any Stock Unit for cause (for these
     purposes, cause shall have the meaning ascribed thereto in any employment
     agreement to which such Holder is a party or, in the absence thereof, shall
     include, but not be limited to, insubordination, dishonesty, incompetence,
     moral turpitude, other misconduct of any kind and the refusal to perform
     his duties and responsibilities for any reason other than illness or
     incapacity; PROVIDED, HOWEVER, that if such termination occurs within 12
     months after an Approved Transaction or Control Purchase or Board Change,
     termination for cause shall mean only a felony conviction for fraud,
     misappropriation, or embezzlement), then, unless otherwise determined by
     the Committee and provided in the applicable Agreement, (i) all Options and
     SARs and all unvested or unexercised Stock Units held by such Holder shall
     immediately terminate

                                       16
<Page>

     and (ii) such Holder's rights to all Restricted Shares, Retained
     Distributions, any unpaid Dividend Equivalents and any related cash amounts
     shall be forfeited immediately.

          (c) MISCELLANEOUS. The Committee may determine whether any given leave
     of absence constitutes a termination of employment; PROVIDED, HOWEVER, that
     for purposes of the Plan, (i) a leave of absence, duly authorized in
     writing by the Company for military service or sickness, or for any other
     purpose approved by the Company if the period of such leave does not exceed
     90 days, and (ii) a leave of absence in excess of 90 days, duly authorized
     in writing by the Company provided the employee's right to reemployment is
     guaranteed either by statute or contract, shall not be deemed a termination
     of employment. Unless otherwise determined by the Committee and provided in
     the applicable Agreement, Awards made under the Plan shall not be affected
     by any change of employment so long as the Holder continues to be an
     employee of the Company.

     11.3 RIGHT OF COMPANY TO TERMINATE EMPLOYMENT. Nothing contained in the
Plan or in any Award, and no action of the Company or the Committee with respect
thereto, shall confer or be construed to confer on any Holder any right to
continue in the employ of the Company or any of its Subsidiaries or interfere in
any way with the right of the Company or any Subsidiary of the Company to
terminate the employment of the Holder at any time, with or without cause,
subject, however, to the provisions of any employment agreement between the
Holder and the Company or any Subsidiary of the Company.

     11.4 NONALIENATION OF BENEFITS. Except as set forth herein, no right or
benefit under the Plan shall be subject to anticipation, alienation, sale,
assignment, hypothecation, pledge, exchange, transfer, encumbrance or charge,
and any attempt to anticipate, alienate, sell, assign, hypothecate, pledge,
exchange, transfer, encumber or charge the same shall be void. No right or
benefit hereunder shall in any manner be liable for or subject to the debts,
contracts, liabilities or torts of the Person entitled to such benefits.

     11.5 WRITTEN AGREEMENT. Each Award of Options shall be evidenced by a stock
option agreement; each Award of SARs shall be evidenced by a stock appreciation
rights agreement; each Award of Restricted Shares shall be evidenced by a
restricted shares agreement; each Award of Stock Units shall be evidenced by a
stock units agreement; each Cash Award shall be evidenced by a cash award
agreement; and each Performance Award shall be evidenced by a performance award
agreement, each in such form and containing such terms and provisions not
inconsistent with the provisions of the Plan as the Committee from time to time
shall approve; PROVIDED, HOWEVER, that if more than one type of Award is made to
the same Holder, such Awards may be evidenced by a single Agreement with such
Holder. Each grantee of an Option, SAR, Restricted Shares, Stock Units, Cash
Award or Performance Award shall be notified promptly of such grant, and a
written Agreement shall be promptly executed and delivered by the Company. Any
such written Agreement may contain (but shall not be required to contain) such
provisions as the Committee deems appropriate (i) to insure that the penalty
provisions of Section 4999 of the Code will not apply to any stock or cash
received by the Holder from the Company or (ii) to provide cash payments to the
Holder to mitigate the impact of such penalty provisions upon the Holder. Any
such Agreement may be supplemented or amended from time to time as approved by
the Committee as contemplated by Section 11.7(b).

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     11.6 DESIGNATION OF BENEFICIARIES. Each Person who shall be granted an
Award under the Plan may designate a beneficiary or beneficiaries and may change
such designation from time to time by filing a written designation of
beneficiary or beneficiaries with the Committee on a form to be prescribed by
it, provided that no such designation shall be effective unless so filed prior
to the death of such Person.

     11.7 TERMINATION AND AMENDMENT.

          (a) GENERAL. Unless the Plan shall theretofore have been terminated as
     hereinafter provided, no Awards may be made under the Plan on or after the
     tenth anniversary of the Effective Date. The Plan may be terminated at any
     time prior to the tenth anniversary of the Effective Date and may, from
     time to time, be suspended or discontinued or modified or amended if such
     action is deemed advisable by the Committee.

          (b) MODIFICATION. No termination, modification or amendment of the
     Plan may, without the consent of the Person to whom any Award shall
     theretofore have been granted, adversely affect the rights of such Person
     with respect to such Award. No modification, extension, renewal or other
     change in any Award granted under the Plan shall be made after the grant of
     such Award, unless the same is consistent with the provisions of the Plan.
     With the consent of the Holder and subject to the terms and conditions of
     the Plan (including Section 11.7(a)), the Committee may amend outstanding
     Agreements with any Holder, including any amendment which would (i)
     accelerate the time or times at which the Award may be exercised and/or
     (ii) extend the scheduled expiration date of the Award. Without limiting
     the generality of the foregoing, the Committee may, but solely with the
     Holder's consent unless otherwise provided in the Agreement, agree to
     cancel any Award under the Plan and grant a new Award in substitution
     therefor, provided that the Award so substituted shall satisfy all of the
     requirements of the Plan as of the date such new Award is made. Nothing
     contained in the foregoing provisions of this Section 11.7(b) shall be
     construed to prevent the Committee from providing in any Agreement that the
     rights of the Holder with respect to the Award evidenced thereby shall be
     subject to such rules and regulations as the Committee may, subject to the
     express provisions of the Plan, adopt from time to time or impair the
     enforceability of any such provision.

     11.8 GOVERNMENT AND OTHER REGULATIONS. The obligation of the Company with
respect to Awards shall be subject to all applicable laws, rules and regulations
and such approvals by any governmental agencies as may be required, including
the effectiveness of any registration statement required under the Securities
Act of 1933, and the rules and regulations of any securities exchange or
association on which the Common Stock may be listed or quoted. For so long as
any series of Common Stock are registered under the Exchange Act, the Company
shall use its reasonable efforts to comply with any legal requirements (i) to
maintain a registration statement in effect under the Securities Act of 1933
with respect to all shares of the applicable series of Common Stock that may be
issued to Holders under the Plan and (ii) to file in a timely manner all reports
required to be filed by it under the Exchange Act.

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     11.9 WITHHOLDING. The Company's obligation to deliver shares of Common
Stock or pay cash in respect of any Award under the Plan shall be subject to
applicable federal, state and local tax withholding requirements. Federal, state
and local withholding tax due at the time of an Award, upon the exercise of any
Option or SAR or upon the vesting of, or expiration of restrictions with respect
to, Restricted Shares or Stock Units or the satisfaction of the Performance
Objectives applicable to a Performance Award, as appropriate, may, in the
discretion of the Committee, be paid in shares of the applicable series of
Common Stock already owned by the Holder or through the withholding of shares
otherwise issuable to such Holder, upon such terms and conditions (including the
conditions referenced in Section 6.5) as the Committee shall determine. If the
Holder shall fail to pay, or make arrangements satisfactory to the Committee for
the payment to the Company of, all such federal, state and local taxes required
to be withheld by the Company, then the Company shall, to the extent permitted
by law, have the right to deduct from any payment of any kind otherwise due to
such Holder an amount equal to any federal, state or local taxes of any kind
required to be withheld by the Company with respect to such Award.

     11.10 NONEXCLUSIVITY OF THE PLAN. The adoption of the Plan by the Board or
the Committee shall not be construed as creating any limitations on the power of
the Board to adopt such other incentive arrangements as it may deem desirable,
including the granting of stock options and the awarding of stock and cash
otherwise than under the Plan, and such arrangements may be either generally
applicable or applicable only in specific cases.

     11.11 EXCLUSION FROM PENSION AND PROFIT-SHARING COMPUTATION. By acceptance
of an Award, unless otherwise provided in the applicable Agreement, each Holder
shall be deemed to have agreed that such Award is special incentive compensation
that will not be taken into account, in any manner, as salary, compensation or
bonus in determining the amount of any payment under any pension, retirement or
other employee benefit plan, program or policy of the Company or any Subsidiary
of the Company. In addition, each beneficiary of a deceased Holder shall be
deemed to have agreed that such Award will not affect the amount of any life
insurance coverage, if any, provided by the Company on the life of the Holder
which is payable to such beneficiary under any life insurance plan covering
employees of the Company or any Subsidiary of the Company.

     11.12 UNFUNDED PLAN. Neither the Company nor any Subsidiary of the Company
shall be required to segregate any cash or any shares of Common Stock which may
at any time be represented by Awards, and the Plan shall constitute an
"unfunded" plan of the Company. Except as provided in Article VIII with respect
to Awards of Restricted Shares and except as expressly set forth in an
Agreement, no employee shall have voting or other rights with respect to the
shares of Common Stock covered by an Award prior to the delivery of such shares.
Neither the Company nor any Subsidiary of the Company shall, by any provisions
of the Plan, be deemed to be a trustee of any shares of Common Stock or any
other property, and the liabilities of the Company and any Subsidiary of the
Company to any employee pursuant to the Plan shall be those of a debtor pursuant
to such contract obligations as are created by or pursuant to the Plan, and the
rights of any employee, former employee or beneficiary under the Plan shall be
limited to those of a general creditor of the Company or the applicable
Subsidiary of the

                                       19
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Company, as the case may be. In its sole discretion, the Board may authorize the
creation of trusts or other arrangements to meet the obligations of the Company
under the Plan, PROVIDED, HOWEVER, that the existence of such trusts or other
arrangements is consistent with the unfunded status of the Plan.

     11.13 GOVERNING LAW. The Plan shall be governed by, and construed in
accordance with, the laws of the State of Delaware.

     11.14 ACCOUNTS. The delivery of any shares of Common Stock and the payment
of any amount in respect of an Award shall be for the account of the Company or
the applicable Subsidiary of the Company, as the case may be, and any such
delivery or payment shall not be made until the recipient shall have paid or
made satisfactory arrangements for the payment of any applicable withholding
taxes as provided in Section 11.9.

     11.15 LEGENDS. Each certificate evidencing shares of Common Stock subject
to an Award shall bear such legends as the Committee deems necessary or
appropriate to reflect or refer to any terms, conditions or restrictions of the
Award applicable to such shares, including any to the effect that the shares
represented thereby may not be disposed of unless the Company has received an
opinion of counsel, acceptable to the Company, that such disposition will not
violate any federal or state securities laws.

     11.16 COMPANY'S RIGHTS. The grant of Awards pursuant to the Plan shall not
affect in any way the right or power of the Company to make reclassifications,
reorganizations or other changes of or to its capital or business structure or
to merge, consolidate, liquidate, sell or otherwise dispose of all or any part
of its business or assets.

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