Document:

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                                                                    Exhibit 10.8

                                  FULL RECOURSE
               SECOND AMENDED AND RESTATED SECURED PROMISSORY NOTE

$1,950,000                                             San Francisco, California
                                                             As of July 21, 2002

      For value received, the undersigned promises to pay to Critical Path,
Inc., a California corporation (the "Company"), in immediately available funds
and in the lawful currency of the United States of America at its offices
located at 350 The Embarcadero, San Francisco, California 94105-1204 or at such
other location as the Company or any other holder hereof may designate from time
to time the principal sum of $1,950,000, together with interest on said sum
accruing from February 12, 2002 until such principal sum has been repaid in full
at a rate of 6.75% per annum, compounded annually (calculated based on a year of
365/366 days, as applicable).

      1.    PAYMENTS AND PREPAYMENTS.

      (a)   Principal and Interest Payments. Except as otherwise provided
herein, all outstanding principal and interest on this Note shall be due and
payable in full on June 30, 2005. Interest shall accrue annually until paid in
full (and shall include interest that has accrued through the date immediately
before February 12, 2002 at the rate of 6.75% per annum on the $1,500,000 that
the Company previously loaned to the undersigned pursuant to that certain
Promissory Note, dated August 13, 2001, duly executed by the undersigned in
favor of the Company) (such Promissory Note, the "Original Note").

      (b)   Default Interest. Upon the occurrence and during the continuance of
an Event of Default (as defined herein), the undersigned shall pay interest on
all amounts outstanding under this Note at a rate of 8.75% per annum (calculated
based on a year of 365/366 days, as applicable).

      (c)   Optional Prepayments. The undersigned may, at his option and without
penalty, prepay the principal amount of this Note in whole or in part upon five
(5) business days' notice to the Company.

      (d)   Mandatory Prepayments. Immediately upon the undersigned's voluntary
or involuntary exercise of all or any portion of the undersigned's stock options
to purchase common shares of the Company's stock as described below, the
undersigned shall prepay the obligations hereunder in an aggregate principal
amount equal to 100% of the Net Proceeds obtained as a result of such exercise.
For purposes of this Note, "Net Proceeds" means the aggregate sales price
received by the undersigned from such exercise less the sum of (i) the option
exercise price, (ii) federal and state income and employment taxes payable on
such amounts and (iii) the actual amount of the reasonable broker fees and
commissions payable to unrelated third parties in connection with such exercise.

      (e)   Other Payment Terms. Subject to Subparagraph 1(d), all payments made
by the undersigned under this Note shall be applied first to any costs, expenses
and charges then

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payable by the undersigned hereunder, second to accrued interest then due (if
any), and then to outstanding principal. Whenever any payment due hereunder
shall fall due on a day which is not a business day, such payment shall be made
on the next succeeding business day.

      2.    SECURITY.

      (a)   Reaffirmation of Security Interest. As security for the timely
payment and performance of the undersigned's obligations under this Note, the
undersigned hereby reaffirms its pledge and grant to the Company of a first
priority perfected security interest in all of the undersigned's right, title
and interest, whether now owned or hereafter acquired, in and to (i) the
undersigned's stock options to purchase common shares of the Company's stock,
(ii) the shares of the Company's common stock acquired pursuant to such option
exercises and (iii) the proceeds thereof (collectively, the "Collateral"). Such
Collateral shall be held by the Company as secured party until full repayment of
all principal and interest arising under this Note. The undersigned further
acknowledges and agrees that the common shares underlying such stock options are
subject to the security interest granted under this Subparagraph (a).

      (b)   Continued Perfection of the Security Interest. The undersigned
agrees to take all actions reasonably requested by the Company and reasonably
necessary to perfect, to continue the perfection of, and to otherwise give
notice of, the security interest re-affirmed and granted hereunder, including,
but not limited to, (i) authorizing the Company to file UCC-1 financing
statements against the undersigned describing the Collateral with the Secretary
of State of the State of California and (ii) authorizing the Company to record
in its books and records the existence of such security interest and that the
Company has the right to originate instructions with respect to such portion of
the Collateral that constitutes a "security entitlement"(as defined in Division
8 of the UCC) without further consent by the undersigned in accordance with
Section 8106 of the UCC.

      (c)   Power of Attorney. In connection with the foregoing security
interest, the undersigned hereby reaffirms its grant to the Company of an
irrevocable Power of Attorney, by re-executing the Power of Attorney form
attached hereto as Exhibit 1.

      (d)   Covenant. The undersigned covenants that he shall provide the
Company with 10 business days advance written notice of the undersigned's
intention to file for protection under the federal bankruptcy laws or any other
proceeding under any other laws relating to bankruptcy, insolvency,
reorganization, arrangement, debt adjustment or debtor relief.

      3.    DEFAULT.

      (a)   Optional Acceleration.  The Company may declare all amounts
outstanding under this Note immediately due and payable in full upon the
occurrence of any of the following:

                  (i)   The failure of the undersigned to make any payment of
            principal required under this Note when due and such failure shall
            have continued for more than ten (10) days after receipt by the
            undersigned of written notice thereof from the Company (it being
            expressly understood by the Company that the failure of

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            the undersigned to pay interest annually before the maturity date
            hereof shall not constitute a default hereunder); or

                  (ii)  (A) The failure of the undersigned to perform, keep or
            observe any of its covenants, conditions, promises, agreements or
            obligations set forth in this Note or (B) the occurrence of a
            material breach by the undersigned of the second sentence in section
            3(b) under that certain Separation Agreement and Mutual Release
            entered into as of July 21, 2002 (the "Separation Agreement") or (C)
            the occurrence of a material breach by the undersigned of sections
            18(d) or 19 in the Separation Agreement or (D) the occurrence of a
            material breach by the undersigned of paragraph 1 in Exhibit A to
            the Separation Agreement or of undersigned's failure to comply with
            his five business days advance notice obligation to the Company
            specified under paragraph 6 in such Exhibit A, and in any case such
            failure shall have continued for more than ten (10) days after
            receipt by the undersigned of written notice thereof from the
            Company. Any declaration of a default (and any resulting act of
            foreclosure) by the Company under this subparagraph shall be subject
            to review under the arbitration provisions provided under the
            Separation Agreement.

            (b)   Automatic Acceleration.  All amounts outstanding under this
      Note shall be immediately due and payable in full, without demand or
      notice of any kind, upon the occurrence of any of the following:

                  (i)   The commencement by or against the undersigned of any
            case under the federal bankruptcy laws or any other proceeding under
            any other laws relating to bankruptcy, insolvency, reorganization,
            arrangement, debt adjustment or debtor relief unless in the case of
            a case brought against the undersigned such case is dismissed within
            90 days;

                  (ii)  Any assignment by the undersigned for the benefit of its
            creditors; or

                  (iii) The appointment for a period of more than 90 days of a
            receiver, trustee, custodian or similar official for all or
            substantially all of the undersigned's property or assets.

            (c) Remedies. Upon the occurrence of any one or more of the events
      described in Subparagraphs (a) and (b) above (each an "Event of Default"),
      the Company shall have the right, with or without notice to the
      undersigned, as to any or all of the Collateral, by any available judicial
      procedure, or without judicial process (provided, however, that it is in
      compliance with the California Uniform Commercial Code (the "UCC")), to
      exercise any and all rights afforded to a secured party under the UCC or
      other applicable law including but not limited to the rights of the
      Company set forth in subsection 2(a) hereof. All of the Company's rights
      and remedies with respect to the Collateral, whether established hereby or
      by any other agreements, instruments or documents or by law shall be
      cumulative and may be exercised singly or concurrently.

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      4.    MISCELLANEOUS. This Note shall inure to the benefit of the Company's
successors and beneficiaries. If any amounts owing under this Note are not paid
when due, the undersigned shall pay all costs and expenses, including reasonable
attorneys' fees, incurred by the Company in the collection or enforcement of
this Note. To the extent permitted by law, the undersigned waives diligence,
presentment, demand, notice of nonpayment, protest, notice of protest and notice
of every kind. This Note shall be governed by and construed in accordance with
the laws of the State of California. Paragraph and subparagraph headings in this
Note are for convenience of reference only and are not part of the substance
hereof. This Note amends and restates in its entirety that certain Full Recourse
Amended and Restated Promissory Note, dated as of February 12, 2002, duly
executed by the undersigned in favor of the Company and shall become effective
upon the effectiveness of the Separation Agreement.

                                                /s/ David C. Hayden
                                          ______________________________________
                                                    David C. Hayden

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                           EXHIBIT 1 TO FULL RECOURSE
               SECOND AMENDED AND RESTATED SECURED PROMISSORY NOTE

                                POWER OF ATTORNEY

      This Power of Attorney is executed and delivered by David C. Hayden
("Grantor") to Critical Path, Inc., a California corporation (hereinafter
referred to as "Attorney"), under that certain Full Recourse Second Amended and
Restated Secured Promissory Note, dated as of July 21, 2002 (the "Restated
Note"), and other related documents (the "Loan Documents"). No person to whom
this Power of Attorney is presented, as authority for Attorney to take any
action or actions contemplated hereby, shall be required to inquire into or seek
confirmation from Grantor as to the authority of Attorney to take any action
described below, or as to the existence of or fulfillment of any condition to
this Power of Attorney, which is intended to grant to Attorney unconditionally
the authority to take and perform the actions contemplated herein, and Grantor
irrevocable waives any right to commence any suit or action, in law or equity,
against any person or entity which acts in reliance upon or acknowledges the
authority granted under this Power of Attorney. The Power of Attorney granted
hereby is coupled with an interest, and may not be revoked or canceled by
Grantor without Attorney's written consent.

      Grantor hereby irrevocably constitutes and appoints Attorney (and all
officers, employees or agents designated by Attorney), with full power of
substitution, as Grantor's true and lawful attorney-in-fact with full
irrevocable power and authority in the place and stead of Grantor and in the
name of Grantor or in its own name, from time to time in Attorney's discretion,
to take any and all appropriate action and to execute and deliver any and all
documents and instruments which may be necessary or desirable to accomplish the
purposes of the Loan Documents and, without limiting the generality of the
foregoing, Grantor hereby grants to Attorney the power and right, on behalf of
Grantor, without notice to or assent by Grantor, and at any time after a default
pursuant to Section 3 of the Restated Note, to do the following: (a) (i) cancel
any portion or all of Grantor's stock options (in order to apply the difference
between the then-fair market value of the underlying shares and the aggregate
option exercise price to satisfy any liability Grantor may owe to Attorney (even
if such liability is not then currently due) and/or (ii) exercise any portion or
all of Grantor's options (including any options that may be awarded to Grantor
in the future) to purchase shares of Attorney's common stock and to hold,
retire, collect, sell or dispose of the shares (or the proceeds of such shares)
acquired pursuant to such option exercises to satisfy any liability Grantor may
owe to Attorney (even if such liability is not then currently due); (b) pay or
discharge any taxes, liens, security interests, or other encumbrances levied or
placed on or threatened against Grantor or its property; (c) defend any suit,
action or proceeding brought against Grantor if Grantor does not defend such
suit, action or proceeding; (d) to file such financing statements with respect
to any security agreement, with or without Grantor's signature, or to file a
photocopy of any security agreement in substitution for a financing statement,
as Attorney may deem appropriate and to execute in Grantor's name such financing
statements and amendments thereto and continuation statements which may require
Grantor's signature; and (e) execute, in connection with any sale provided for
in any Loan Document, any endorsements, assignments or other instruments of
conveyance or transfer with respect to the collateral and to otherwise direct
such sale or resale, all as though Attorney were the absolute owner of the
property of Grantor for all purposes, and to do, at Attorney's option and
Grantor's expense, at

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any time or from time to time, all acts and other things that Attorney
reasonably deems necessary to perfect, preserve, or realize upon Grantor's
property or assets and Attorney's liens thereon, all as fully and effectively as
Grantor might do. Grantor hereby ratifies, to the extent permitted by law, all
that said Attorney shall lawfully do or cause to be done by virtue hereof.

      IN WITNESS WHEREOF, this Power of Attorney is executed by Grantor this
21st day of July 2002.

                                          "GRANTOR"

                                          DAVID C. HAYDEN

                                          /s/ David Hayden
                                          ______________________________________

                                      B-6<PAGE>
                                                                     Exhibit 4.1
                         THE 2002 EQUITY INCENTIVE PLAN

                                       OF

                                  SAFEWAY INC.

        Safeway Inc., a Delaware corporation, hereby adopts the 2002 Equity
Incentive Plan of Safeway Inc. (the "Plan"). Safeway Inc. has adopted the Plan,
effective as of July 31, 2002, for the benefit of its eligible Employees and
Consultants.

        The purposes of the Plan are as follows:

        (1) To provide an additional incentive for Employees and Consultants (as
such terms are defined below) to further the growth, development and financial
success of the Company by personally benefiting through the ownership of Company
stock and/or rights which recognize such growth, development and financial
success.

        (2) To enable the Company to obtain and retain the services of Employees
and Consultants considered essential to the long range success of the Company by
offering them an opportunity to own stock in the Company and/or rights which
will reflect the growth, development and financial success of the Company.

                                   ARTICLE I.

                                   DEFINITIONS

1.1 General. Wherever the following terms are used in the Plan they shall have
the meanings specified below, unless the context clearly indicates otherwise.

1.2 Administrator. "Administrator" shall mean the entity that conducts the
general administration of the Plan as provided herein. With reference to the
administration of the Plan, the term "Administrator" shall refer to the
Committee unless the Board has assumed the authority for administration of the
Plan generally as provided in Section 10.1.

1.3 Award. "Award" shall mean an Option, a Restricted Stock award, a Dividend
Equivalents award, a Deferred Stock award, a Stock Payment award or a Stock
Appreciation Right which may be awarded or granted under the Plan (collectively,
"Awards").

1.4 Award Agreement. "Award Agreement" shall mean a written agreement executed
by an authorized officer of the Company and the Holder which shall contain such
terms and conditions with respect to an Award as the Administrator shall
determine, consistent with the Plan.

1.5 Award Limit.

        (a) With respect to executive officers of the Company and with respect
to Employees (other than executive officers of the Company) solely for their
year of hire, "Award Limit" shall mean 2,000,000 shares of Common Stock, or as
the context may require, options to acquire 2,000,000 shares of Common Stock, as
adjusted pursuant to Section 11.3 of the Plan.

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        (b) With respect to Employees other than executive officers of the
Company for each year after their year of hire, "Award Limit" shall mean 800,000
shares of Common Stock or, as the context may require, Options to acquire
800,000 shares of Common Stock, as adjusted pursuant to Section 11.3 of the
Plan.

        (c) With respect to Consultants for each year after the date on which
their engagement commences, "Award Limit" shall mean 1,600,000 shares of Common
Stock or, as the context may require, Options to acquire 1,600,000 shares of
Common Stock, as adjusted pursuant to Section 11.3 of the Plan.

1.6 Board. "Board" shall mean the Board of Directors of the Company.

1.7 Change in Control. "Change in Control" shall mean a change in ownership or
control of the Company as such term may be defined in any individual's Award
Agreement.

1.8 Code. "Code" shall mean the Internal Revenue Code of 1986, as amended.

1.9 Committee. "Committee" shall mean the committee or subcommittee of the Board
appointed as provided in Section 10.1.

1.10 Common Stock. "Common Stock" shall mean the common stock of the Company,
par value $0.01 per share, and any equity security of the Company issued or
authorized to be issued in the future, but excluding any preferred stock and any
warrants, options or other rights to purchase Common Stock.

1.11 Company. "Company" shall mean Safeway Inc., a Delaware corporation.

1.12 Consultant. "Consultant" shall mean any consultant or adviser if:

               (a) the consultant or adviser renders bona fide services to the
        Company;

               (b) the services rendered by the consultant or adviser are not in
        connection with the offer or sale of securities in a capital-raising
        transaction and do not directly or indirectly promote or maintain a
        market for the Company's securities; and

               (c) the consultant or adviser is a natural person who has
        contracted directly with the Company to render such services.

1.13 Deferred Stock. "Deferred Stock" shall mean Common Stock awarded under
Article VIII of the Plan.

1.14 Director. "Director" shall mean a member of the Board.

1.15 Dividend Equivalent. "Dividend Equivalent" shall mean a right to receive
the equivalent value (in Common Stock) of dividends paid on Common Stock,
awarded under Article VIII of the Plan.

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1.16 DRO. "DRO" shall mean a domestic relations order that would constitute a
"qualified domestic relations order" as defined by the Code or Title I of the
Employee Retirement Income Security Act of 1974, as amended, if this Plan were
subject to regulation under Title I of the Employee Retirement Income Security
Act of 1974, as amended.

1.17 Effective Date. "Effective Date" shall mean July 31, 2002.

1.18 Employee. "Employee" shall mean any officer or other employee (as defined
in accordance with Section 3401(c) of the Code) of the Company, or of any
corporation which is a Subsidiary.

1.19 Exchange Act. "Exchange Act" shall mean the Securities Exchange Act of
1934, as amended.

1.20 Fair Market Value. "Fair Market Value" of a share of Common Stock as of a
given date shall be (a) the closing price of a share of Common Stock on the
principal exchange on which shares of Common Stock are then trading, if any (or
as reported on any composite index which includes such principal exchange), on
such date, or if shares were not traded on such date, then on the next preceding
date on which a trade occurred, or (b) if Common Stock is not traded on an
exchange but is quoted on NASDAQ or a successor quotation system, the mean
between the closing representative bid and asked prices for the Common Stock on
such date as reported by NASDAQ or such successor quotation system; or (c) if
Common Stock is not publicly traded on an exchange and not quoted on NASDAQ or a
successor quotation system, the Fair Market Value of a share of Common Stock as
established by the Administrator acting in good faith. In determining the Fair
Market Value of the Company's Common Stock under subsection (a) of this Section
1.20, the Administrator may rely on the closing price as reported in the New
York Stock Exchange composite transactions published in the Western Edition of
the Wall Street Journal.

1.21 Holder. "Holder" shall mean a person who has been granted or awarded an
Award.

1.22 Independent Director. "Independent Director" shall mean a member of the
Board who is not an Employee of the Company.

1.23 Option. "Option" shall mean a stock option granted under Article IV of the
Plan. No Option granted under the Plan shall be an incentive stock option,
within the meaning of Section 422 of the Code.

1.24 Plan. "Plan" shall mean The 2002 Equity Incentive Plan of Safeway Inc.

1.25 Restricted Stock. "Restricted Stock" shall mean Common Stock awarded under
Article VII of the Plan.

1.26 Rule 16b-3. "Rule 16b-3" shall mean that certain Rule 16b-3 under the
Exchange Act, as such Rule may be amended from time to time.

1.27 Securities Act. "Securities Act" shall mean the Securities Act of 1933, as
amended.

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1.28 Stock Appreciation Right. "Stock Appreciation Right" shall mean a stock
appreciation right granted under Article IX of the Plan.

1.29 Stock Payment. "Stock Payment" shall mean (a) a payment in the form of
shares of Common Stock, or (b) an option or other right to purchase shares of
Common Stock, as part of a deferred compensation arrangement, made in lieu of
all or any portion of the compensation, including without limitation, salary,
bonuses and commissions, that would otherwise become payable to an Employee or
Consultant in cash, awarded under Article VIII of the Plan.

1.30 Subsidiary. "Subsidiary" shall mean any corporation in an unbroken chain of
corporations beginning with the Company if each of the corporations other than
the last corporation in the unbroken chain then owns stock possessing fifty
percent (50%) or more of the total combined voting power of all classes of stock
in one of the other corporations in such chain.

1.31 Substitute Award. "Substitute Award" shall mean an Option granted under
this Plan upon the assumption of, or in substitution for, outstanding equity
awards previously granted by a company or other entity in connection with a
corporate transaction, such as a merger, combination, consolidation or
acquisition of property or stock; provided, however, that in no event shall the
term "Substitute Award" be construed to refer to an award made in connection
with the cancellation and repricing of an Option.

1.32 Termination of Consultancy. "Termination of Consultancy" shall mean the
time when the engagement of a Holder as a Consultant to the Company or a
Subsidiary is terminated for any reason, with or without cause, including, but
not by way of limitation, by resignation, discharge, death or retirement; but
excluding terminations where there is a simultaneous commencement of employment
with the Company or any Subsidiary. The Administrator, in its absolute
discretion, shall determine the effect of all matters and questions relating to
Termination of Consultancy, including, but not by way of limitation, the
question of whether a Termination of Consultancy resulted from a discharge for
good cause, and all questions of whether a particular leave of absence
constitutes a Termination of Consultancy. Notwithstanding any other provision of
the Plan, the Company or any Subsidiary has an absolute and unrestricted right
to terminate a Consultant's service at any time for any reason whatsoever, with
or without cause, except to the extent expressly provided otherwise in writing.

1.33 Termination of Employment. "Termination of Employment" shall mean the time
when the employee-employer relationship between a Holder and the Company or any
Subsidiary is terminated for any reason, with or without cause, including, but
not by way of limitation, a termination by resignation, discharge, death,
disability or retirement; but excluding (a) terminations where there is a
simultaneous reemployment or continuing employment of a Holder by the Company or
any Subsidiary, (b) at the discretion of the Administrator, terminations which
result in a temporary severance of the employee-employer relationship, and (c)
at the discretion of the Administrator, terminations which are followed by the
simultaneous establishment of a consulting relationship by the Company or a
Subsidiary with the former employee. The Administrator, in its absolute
discretion, shall determine the effect of all matters and questions relating to
Termination of Employment, including, but not by way of limitation, the question
of whether a Termination of Employment resulted from a discharge for good cause,

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and all questions of whether a particular leave of absence constitutes a
Termination of Employment.

                                   ARTICLE II.

                             SHARES SUBJECT TO PLAN

2.1 Shares Subject to Plan.

        (a) The shares of stock subject to Awards shall be shares of the
Company's Common Stock, par value $0.01 per share. The aggregate number of such
shares which may be issued pursuant to or upon exercise of any such Awards under
the Plan shall not exceed Two Million (2,000,000) of which no more than One
Hundred Thousand (100,000) may be granted or issued as Restricted Stock, Stock
Payments or Deferred Stock, or pursuant to Awards having an exercise or purchase
price, as applicable, of less than 100% of Fair Market Value on the date of
grant or issuance. The shares of Common Stock issuable pursuant to or upon
exercise of any such Awards may be either previously authorized but unissued
shares or treasury shares.

        (b) The maximum number of shares which may be subject to Awards granted
under the Plan to any individual in any fiscal year shall not exceed the Award
Limit.

2.2 Add-back of Options and Other Rights. If any Option, or other right to
acquire shares of Common Stock under any other Award under the Plan, expires or
is canceled without having been fully exercised, or is exercised in whole or in
part for cash to the extent permitted by the Plan, the number of shares subject
to such Option or other right but as to which such Option or other right, was
not exercised prior to its expiration, cancellation or exercise may again be
optioned, granted or awarded hereunder, subject to the limitations of Section
2.1. Furthermore, any shares subject to Awards which are adjusted pursuant to
Section 11.3 and become exercisable with respect to shares of stock of another
corporation shall be considered cancelled and may again be optioned, granted or
awarded hereunder, subject to the limitations of Section 2.1. Shares of Common
Stock which are delivered by the Holder or withheld by the Company upon the
exercise of any Award under the Plan, in payment of the exercise price thereof
or tax withholding thereon, may again be optioned, granted or awarded hereunder,
subject to the limitations of Section 2.1. If any Shares of Restricted Stock are
surrendered by the Holder or repurchased by the Company pursuant to Section 7.4
or 7.5 hereof, such shares may again be optioned, granted or awarded hereunder,
subject to the limitations of Section 2.1.

                                  ARTICLE III.

                               GRANTING OF AWARDS

3.1 Award Agreement. Each Award shall be evidenced by an Award Agreement.

3.2 Limitations Applicable to Section 16 Persons. Notwithstanding any other
provision of the Plan, the Plan, and any Award granted or awarded to any
individual who is then subject to Section 16 of the Exchange Act, shall be
subject to any additional limitations set forth in any applicable exemptive rule
under Section 16 of the Exchange Act (including any amendment to

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Rule 16b-3 of the Exchange Act) that are requirements for the application of
such exemptive rule. To the extent permitted by applicable law, the Plan and
Awards granted or awarded hereunder shall be deemed amended to the extent
necessary to conform to such applicable exemptive rule.

3.3 Consideration. In consideration of the granting of an Award under the Plan,
the Holder shall agree, in the Award Agreement, to remain in the employ of (or
to consult for) the Company or any Subsidiary for a period of at least one year
(or such shorter period as may be fixed in the Award Agreement or by action of
the Administrator following grant of the Award) after the Award is granted.

3.4 At-Will Employment. Nothing in the Plan or in any Award Agreement hereunder
shall confer upon any Holder any right to continue in the employ of, or as a
Consultant for, the Company or any Subsidiary, or as a director of the Company,
or shall interfere with or restrict in any way the rights of the Company and any
Subsidiary, which are hereby expressly reserved, to discharge any Holder at any
time for any reason whatsoever, with or without cause, except to the extent
expressly provided otherwise in a written employment agreement between the
Holder and the Company and any Subsidiary.

                                   ARTICLE IV.

                GRANTING OF OPTIONS TO EMPLOYEES AND CONSULTANTS

4.1 Eligibility. Any Employee or Consultant selected by the Committee pursuant
to Section 4.2(a)(i) shall be eligible to be granted an Option.

4.2 Granting of Options to Employees and Consultants.

        (a) The Committee shall from time to time, in its absolute discretion,
and subject to applicable limitations of the Plan:

               (i) Select from among the Employees or Consultants (including
        Employees or Consultants who have previously received Awards under the
        Plan) such of them as in its opinion should be granted Options;

               (ii) Subject to the Award Limit, determine the number of shares
        to be subject to such Options granted to the selected Employees or
        Consultants;

               (iii) Determine the terms and conditions of such Options,
        consistent with the Plan.

Notwithstanding the above, the Committee may delegate certain powers relating to
the granting of Options as it deems appropriate to executive officers of the
Company including the power to determine the number of shares to be subject to
Options (subject to a maximum amount set by the Committee), and to determine the
terms and conditions of such Options; provided, however, that the Committee
shall not delegate any powers that are required to be exercised by the Committee
under Section 16(b) of the Securities Exchange Act of 1934, as amended, or any
rules promulgated thereunder.

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        (b) Upon the selection of an Employee or Consultant to be granted an
Option, the Committee shall instruct the Secretary of the Company to issue the
Option and may impose such conditions on the grant of the Option as it deems
appropriate.

                                   ARTICLE V.

                                TERMS OF OPTIONS

5.1 Option Price. The price per share of the shares subject to each Option
granted to Employees and Consultants shall be set by the Committee; provided,
however, that such price shall be no less than 100% of the Fair Market Value of
a share of Common Stock on the date the Option is granted.

5.2 Option Term. The term of an Option granted to an Employee or Consultant
shall be set by the Committee in its discretion. The Committee may extend the
term of any outstanding Option in connection with any Termination of Employment
or Termination of Consultancy of the Holder, or amend any other term or
condition of such Option relating to such a termination.

5.3 Option Vesting.

        (a) The period during which the right to exercise, in whole or in part,
an Option granted to an Employee or a Consultant vests in the Holder shall be
set by the Committee, subject to a minimum vesting period of three (3) years in
order for any Option to become fully exercisable, and the Committee may
determine that an Option may not be exercised in whole or in part for a
specified period after it is granted; provided, however, that, unless the
Committee otherwise provides in the terms of the Award Agreement or otherwise,
no Option shall be exercisable by any Holder who is then subject to Section 16
of the Exchange Act within the period ending six months and one day after the
date the Option is granted. At any time after grant of an Option, the Committee
may, in its sole and absolute discretion and subject to whatever terms and
conditions it selects, accelerate the period during which an Option granted to
an Employee or Consultant vests.

        (b) No portion of an Option granted to an Employee or Consultant which
is unexercisable at Termination of Employment or Termination of Consultancy, as
applicable, shall thereafter become exercisable, except as may be otherwise
provided by the Committee either in the Award Agreement or by action of the
Committee following the grant of the Option.

5.4 Substitute Awards. Notwithstanding the foregoing provisions of this Article
V to the contrary, in the case of an Option that is a Substitute Award, the
price per share of the shares subject to such Option may be less than the Fair
Market Value per share on the date of grant, provided, that the excess of:

               (a) the aggregate Fair Market Value (as of the date such
        Substitute Award is granted) of the shares subject to the Substitute
        Award; over

               (b)    the aggregate exercise price thereof;

        does not exceed the excess of:

                                       7
<PAGE>
               (c) the aggregate fair market value (as of the time immediately
        preceding the transaction giving rise to the Substitute Award, such fair
        market value to be determined by the Committee) of the shares of the
        predecessor entity that were subject to the grant assumed or substituted
        for by the Company; over

               (d) the aggregate exercise price of such shares.

5.5 Expiration of Options of Employees and Consultants.

        (a) No Option may be exercised to any extent by any Employee or
Consultant after the first to occur of the following events:

               (i) The expiration of ten (10) years and one day from the date
        the Option was granted; or

               (ii) The expiration of three (3) months from the date of the
        Optionee's Termination of Employment or Consultancy for any reason other
        than death or disability, within the meaning of Section 22(e)(3) of the
        Code, or retirement on or after age 55 in accordance with the Company's
        retirement policies, as then in effect; or

               (iii) The engagement by the Optionee in willful misconduct which
        injures the Company or any of its Subsidiaries.

        (b) Subject to the provisions of Section 5.5(a), the Committee shall
provide, in the terms of each individual Option, when such Option expires and
becomes unexercisable; and (without limiting the generality of the foregoing)
the Committee may provide in the terms of individual Options that said Options
expire immediately upon a Termination of Employment or Consultancy for any
reason.

                                   ARTICLE VI.

                               EXERCISE OF OPTIONS

6.1 Partial Exercise. An exercisable Option may be exercised in whole or in
part. However, an Option shall not be exercisable with respect to fractional
shares and the Administrator may require that by the terms of the Option, a
partial exercise be with respect to a minimum number of shares.

6.2 Manner of Exercise. All or a portion of an exercisable Option shall be
deemed exercised upon delivery of all of the following to the Secretary of the
Company or his or her office:

               (a) A notice complying with the applicable rules established by
        the Administrator stating that the Option, or a portion thereof, is
        exercised;

               (b) Such representations and documents as the Administrator, in
        its absolute discretion, deems necessary or advisable to effect
        compliance with all applicable provisions of the Securities Act and any
        other federal or state securities laws or regulations. The Administrator
        may, in its absolute discretion, also take whatever

                                       8
<PAGE>
        additional actions it deems appropriate to effect such compliance
        including, without limitation, placing legends on share certificates and
        issuing stop-transfer notices to agents and registrars;

               (c) In the event that the Option shall be exercised pursuant to
        Section 11.1 by any person or persons other than the Holder, appropriate
        proof of the right of such person or persons to exercise the Option; and

               (d) Full cash payment to the Secretary of the Company for the
        shares with respect to which the Option, or portion thereof, is
        exercised. However, the Administrator may, in its discretion: (i) allow
        payment, in whole or in part, through the delivery of shares of Common
        Stock which have been owned by the Holder for at least six months, duly
        endorsed for transfer to the Company with a Fair Market Value on the
        date of delivery equal to the aggregate exercise price of the Option or
        exercised portion thereof; (ii) allow payment in whole or in part,
        through the delivery of property of any kind which constitutes good and
        valuable consideration; (iii) allow payment, in whole or in part,
        through the delivery of a notice that the Holder has placed a market
        sell order with a broker with respect to shares of Common Stock then
        issuable upon exercise of the Option, and that the broker has been
        directed to pay a sufficient portion of the net proceeds of the sale to
        the Company in satisfaction of the Option exercise price, provided that
        payment of such proceeds is then made to the Company upon settlement of
        such sale; or (iv) allow payment through any combination of the
        consideration provided in the foregoing subparagraphs (i), (ii) and
        (iii).

6.3 Conditions to Issuance of Stock Certificates. The Company shall not be
required to issue or deliver any certificate or certificates for shares of stock
purchased upon the exercise of any Option or portion thereof prior to
fulfillment of all of the following conditions:

               (a) The admission of such shares to listing on all stock
        exchanges on which such class of stock is then listed;

               (b) The completion of any registration or other qualification of
        such shares under any state or federal law, or under the rulings or
        regulations of the Securities and Exchange Commission or any other
        governmental regulatory body which the Administrator shall, in its
        absolute discretion, deem necessary or advisable;

               (c) The obtaining of any approval or other clearance from any
        state or federal governmental agency which the Administrator shall, in
        its absolute discretion, determine to be necessary or advisable;

               (d) The lapse of such reasonable period of time following the
        exercise of the Option as the Administrator may establish from time to
        time for reasons of administrative convenience; and

               (e) The receipt by the Company of all payment for such shares,
        including payment of any applicable withholding tax, which in the
        discretion of the Administrator may be in the form of consideration used
        by the Holder to pay for such shares under Section 6.2(d).

                                       9
<PAGE>
Notwithstanding the foregoing, to the extent and on the terms and conditions the
Administrator may determine, in its sole discretion, the Administrator may
permit a Holder to elect to defer receipt of shares that otherwise would be
issuable pursuant to the exercise of an Option under Section 6.2.

6.4 Right as Stockholders. Holders shall not be, nor have any of the rights or
privileges of, stockholders of the Company in respect of any shares purchasable
upon the exercise of any part of an Option unless and until certificates
representing such shares have been issued by the Company to such Holders.

6.5 Ownership and Transfer Restrictions. The Administrator, in its absolute
discretion, may impose such restrictions on the ownership and transferability of
the shares purchasable upon the exercise of an Option as it deems appropriate.
Any such restriction shall be set forth in the respective Award Agreement and
may be referred to on the certificates evidencing such shares.

6.6 Additional Limitations on Exercise of Options. Holders may be required to
comply with any timing or other restrictions with respect to the settlement or
exercise of an Option that may be imposed in the discretion of the
Administrator.

                                  ARTICLE VII.

                            AWARD OF RESTRICTED STOCK

7.1 Eligibility. Subject to the Award Limit, Restricted Stock may be awarded to
any Employee or any Consultant who the Committee determines should receive such
an Award.

7.2 Award of Restricted Stock.

        (a) The Committee may from time to time, in its absolute discretion:

               (i) Select from among the Employees or Consultants (including
        Employees or Consultants who have previously received other awards under
        the Plan) such of them as in its opinion should be awarded Restricted
        Stock; and

               (ii) Determine the purchase price, if any, and other terms and
        conditions applicable to such Restricted Stock, consistent with the
        Plan.

        (b) The Committee shall establish the purchase price, if any, and form
of payment for Restricted Stock; provided, however, that such purchase price
shall be no less than the par value of the Common Stock to be purchased, unless
otherwise permitted by applicable state law. In all cases, legal consideration
shall be required for each issuance of Restricted Stock.

        (c) Upon the selection of an Employee or Consultant to be awarded
Restricted Stock, the Committee shall instruct the Secretary of the Company to
issue such Restricted Stock and may impose such conditions on the issuance of
such Restricted Stock as it deems appropriate.

7.3 Rights as Stockholders. Subject to Section 7.4, upon delivery of the shares
of Restricted Stock to the Holder, or to the escrow holder pursuant to Section
7.6, as applicable, the Holder

                                       10
<PAGE>
shall have, unless otherwise provided by the Committee, all the rights of a
stockholder with respect to said shares, subject to the restrictions, if any, in
his or her Award Agreement, including the right to receive all dividends and
other distributions paid or made with respect to the shares; provided, however,
that in the discretion of the Committee, any extraordinary distributions with
respect to the Common Stock shall be subject to the restrictions set forth in
Section 7.4.

7.4 Restriction. All shares of Restricted Stock issued under the Plan (including
any shares received by holders thereof with respect to shares of Restricted
Stock as a result of stock dividends, stock splits or any other form of
recapitalization) shall, in the terms of each individual Award Agreement, be
subject to such restrictions as the Committee shall provide, which restrictions
may include, without limitation, restrictions concerning voting rights and
transferability and restrictions based on duration of employment with the
Company, Company performance and individual performance; provided, however,
that, by action taken after the Restricted Stock is issued, the Committee may,
on such terms and conditions as it may determine to be appropriate, remove any
or all of the restrictions imposed by the terms of the Award Agreement.
Restricted Stock may not be sold or encumbered until all restrictions are
terminated or expire.

7.5 Repurchase of Restricted Stock. The Committee may provide in the terms of
each individual Award Agreement that the Company shall have the right to
repurchase from the Holder the Restricted Stock then subject to restrictions
under the Award Agreement immediately upon a Termination of Employment or, if
applicable, upon a Termination of Consultancy between the Holder and the
Company, at a cash price per share equal to the price paid by the Holder for
such Restricted Stock; provided, however, that the Committee in its sole and
absolute discretion may provide that no such right of repurchase shall exist in
the event of a Termination of Employment following a "change of ownership or
control" (within the meaning of Treasury Regulation Section 1.162-27(e)(2)(v) or
any successor regulation thereto) of the Company or because of the Holder's
death or disability; provided, further, that, the Committee in its sole and
absolute discretion may provide that no such right of repurchase shall exist in
the event of a Termination of Employment or a Termination of Consultancy without
cause or following any Change in Control of the Company or because of the
Holder's retirement, or otherwise.

7.6 Escrow. The Secretary of the Company or such other escrow holder as the
Committee may appoint shall retain physical custody of each certificate
representing Restricted Stock until all of the restrictions imposed under the
Award Agreement with respect to the shares evidenced by such certificate expire
or shall have been removed.

7.7 Legend. In order to enforce the restrictions imposed upon shares of
Restricted Stock hereunder, the Committee shall cause a legend or legends to be
placed on certificates representing all shares of Restricted Stock that are
still subject to restrictions under Award Agreements, which legend or legends
shall make appropriate reference to the conditions imposed thereby.

7.8 Section 83(b) Election. If a Holder makes an election under Section 83(b) of
the Code, or any successor Section thereto, to be taxed with respect to the
Restricted Stock as of the date of transfer of the Restricted Stock rather than
as of the date or dates upon which the Holder would

                                       11
<PAGE>
otherwise be taxable under Section 83(a) of the Code, the Holder shall deliver a
copy of such election to the Company immediately after filing such election with
the Internal Revenue Service.

                                  ARTICLE VIII.

              DIVIDEND EQUIVALENTS, DEFERRED STOCK, STOCK PAYMENTS

8.1 Eligibility. Subject to the Award Limit, one or more Dividend Equivalents,
awards of Deferred Stock, and/or Stock Payments may be granted to any Employee
or Consultant whom the Committee determines should receive such an Award.

8.2 Dividend Equivalents.

        (a) Any Employee or Consultant selected by the Committee may be granted
Dividend Equivalents based on the dividends declared on Common Stock, to be
credited as of dividend payment dates, during the period between the date a
Stock Appreciation Right or Deferred Stock is granted, and the date such Stock
Appreciation Right or Deferred Stock is exercised, vests or expires, as
determined by the Committee. Such Dividend Equivalents shall be converted to
additional shares of Common Stock by such formula and at such time and subject
to such limitations as may be determined by the Committee.

        (b) Any Holder of an Option who is an Employee or Consultant selected by
the Committee may be granted Dividend Equivalents based on the dividends
declared on Common Stock, to be credited as of dividend payment dates, during
the period between the date an Option is granted, and the date such Option is
exercised, vests or expires, as determined by the Committee. Such Dividend
Equivalents shall be converted to additional shares of Common Stock by such
formula and at such time and subject to such limitations as may be determined by
the Committee.

8.3 Stock Payments. Any Employee or Consultant selected by the Committee may
receive Stock Payments in the manner determined from time to time by the
Committee. The number of shares shall be determined by the Committee and may be
based upon the specific performance criteria determined appropriate by the
Committee, determined on the date such Stock Payment is made or on any date
thereafter.

8.4 Deferred Stock. Any Employee or Consultant selected by the Committee may be
granted an award of Deferred Stock in the manner determined from time to time by
the Committee. The number of shares of Deferred Stock shall be determined by the
Committee and may be linked to specific performance criteria determined to be
appropriate by the Committee, in each case on a specified date or dates or over
any period or periods determined by the Committee. Common Stock underlying a
Deferred Stock award will not be issued until the Deferred Stock award has
vested, pursuant to a vesting schedule or performance criteria set by the
Committee. Unless otherwise provided by the Committee, a Holder of Deferred
Stock shall have no rights as a Company stockholder with respect to such
Deferred Stock until such time as the Award has vested and the Common Stock
underlying the Award has been issued.

                                       12
<PAGE>
8.5 Term. The term of a Dividend Equivalent, award of Deferred Stock and/or
Stock Payment shall be set by the Committee in its discretion.

8.6 Exercise or Purchase Price. The Committee may establish the exercise or
purchase price of shares of Deferred Stock or shares received as a Stock
Payment; provided, however, that such price shall not be less than the par value
for a share of Common Stock, unless otherwise permitted by applicable state law.

8.7 Exercise upon Termination of Employment or Termination of Consultancy. A
Dividend Equivalent, award of Deferred Stock and/or Stock Payment is exercisable
or payable only while the Holder is an Employee or Consultant, as applicable;
provided, however, that the Administrator in its sole and absolute discretion
may provide that the Dividend Equivalent, award of Deferred Stock and/or Stock
Payment may be exercised or paid subsequent to a Termination of Employment
following a "change of control or ownership" (within the meaning of Treasury
Regulation Section 1.162-27(e)(2)(v) or any successor regulation thereto) of the
Company.

8.8 Form of Payment. Payment of the amount determined under Section 8.2 or 8.3
above shall be in Common Stock and shall be subject to satisfaction of all
provisions of Section 6.3.

                                   ARTICLE IX.

                          STOCK APPRECIATION RIGHTS

9.1 Grant of Stock Appreciation Rights . A Stock Appreciation Right may be
granted to any Employee or Consultant selected by the Committee. A Stock
Appreciation Right may be granted (a) in connection and simultaneously with the
grant of an Option, (b) with respect to a previously granted Option, or (c)
independent of an Option. A Stock Appreciation Right shall be subject to such
terms and conditions not inconsistent with the Plan as the Committee shall
impose and shall be evidenced by an Award Agreement.

9.2 Coupled Stock Appreciation Rights.

        (a) A Coupled Stock Appreciation Right ("CSAR") shall be related to a
particular Option and shall be exercisable only when and to the extent the
related Option is exercisable.

        (b) A CSAR may be granted to the Holder for no more than the number of
shares subject to the simultaneously or previously granted Option to which it is
coupled.

        (c) A CSAR shall entitle the Holder (or other person entitled to
exercise the Option pursuant to the Plan) to surrender to the Company
unexercised a portion of the Option to which the CSAR relates (to the extent
then exercisable pursuant to its terms) and to receive from the Company in
exchange therefor an amount determined by multiplying the difference obtained by
subtracting the Option exercise price from the Fair Market Value of a share of
Common Stock on the date of exercise of the CSAR by the number of shares of
Common Stock with respect to which the CSAR shall have been exercised, subject
to any limitations the Committee may impose.

                                       13
<PAGE>
9.3 Independent Stock Appreciation Rights

        (a) An Independent Stock Appreciation Right ("ISAR") shall be unrelated
to any Option and shall have a term set by the Committee. An ISAR shall be
exercisable in such installments as the Committee may determine. An ISAR shall
cover such number of shares of Common Stock as the Committee may determine;
provided, however, that unless the Committee otherwise provides in the terms of
the ISAR or otherwise, no ISAR granted to a person subject to Section 16 of the
Exchange Act shall be exercisable until at least six months have elapsed from
(but excluding) the date on which the Option was granted. The exercise price per
share of Common Stock subject to each ISAR shall be set by the Committee. An
ISAR is exercisable only while the Holder is an Employee or Consultant; provided
that the Committee may determine that the ISAR may be exercised subsequent to
Termination of Employment or Termination of Consultancy without cause, or
following a Change in Control of the Company, or because of the Holder's
retirement, death or disability, or otherwise.

        (b) An ISAR shall entitle the Holder (or other person entitled to
exercise the ISAR pursuant to the Plan) to exercise all or a specified portion
of the ISAR (to the extent then exercisable pursuant to its terms) and to
receive from the Company an amount determined by multiplying the difference
obtained by subtracting the exercise price per share of the ISAR from the Fair
Market Value of a share of Common Stock on the date of exercise of the ISAR by
the number of shares of Common Stock with respect to which the ISAR shall have
been exercised, subject to any limitations the Committee may impose.

9.4 Payment and Limitations on Exercise.

        (a) Payment of the amounts determined under Section 9.2(c) and 9.3(b)
above shall be in cash, in Common Stock (based on its Fair Market Value as of
the date the Stock Appreciation Right is exercised) or a combination of both, as
determined by the Committee. To the extent such payment is effected in Common
Stock it shall be made subject to satisfaction of all provisions of Section 6.3
above pertaining to Options.

        (b) Holders of Stock Appreciation Rights may be required to comply with
any timing or other restrictions with respect to the settlement or exercise of a
Stock Appreciation Right that may be imposed in the discretion of the Committee.

                                   ARTICLE X.

                                 ADMINISTRATION

10.1 Committee. The Committee (or another committee or a subcommittee of the
Board assuming the functions of the Committee under the Plan) shall consist
solely of two or more Independent Directors appointed by and holding office at
the pleasure of the Board, each of whom is both a "non-employee director" as
defined by Rule 16b-3. Appointment of Committee members shall be effective upon
acceptance of appointment. Committee members may resign at any time by
delivering written notice to the Board. Vacancies in the Committee may be filled
by the Board.

                                       14
<PAGE>
10.2 Duties and Powers of Committee. It shall be the duty of the Committee to
conduct the general administration of the Plan in accordance with its
provisions. The Committee shall have the power to interpret the Plan and the
Award Agreements, and to adopt such rules for the administration,
interpretation, and application of the Plan as are consistent therewith, to
interpret, amend or revoke any such rules and to amend any Award Agreement
provided that the rights or obligations of the Holder of the Award that is the
subject of any such Award Agreement are not affected adversely. Any such grant
or award under the Plan need not be the same with respect to each Holder. In its
absolute discretion, the Board may at any time and from time to time exercise
any and all rights and duties of the Committee under the Plan except with
respect to matters which under Rule 16b-3 or any regulations or rules issued
thereunder, are required to be determined in the sole discretion of the
Committee.

10.3 Majority Rule; Unanimous Written Consent . The Committee shall act by a
majority of its members in attendance at a meeting at which a quorum is present
or by a memorandum or other written instrument signed by all members of the
Committee.

10.4 Compensation: Professional Assistance; Good Faith Actions. Members of the
Committee shall receive such compensation, if any, for their services as members
as may be determined by the Board. All expenses and liabilities which members of
the Committee incur in connection with the administration of the Plan shall be
borne by the Company. The Committee may, with the approval of the Board, employ
attorneys, consultants, accountants, appraisers, brokers, or other persons. The
Committee, the Company and the Company's officers and Directors shall be
entitled to rely upon the advice, opinions or valuations of any such persons.
All actions taken and all interpretations and determinations made by the
Committee or the Board in good faith shall be final and binding upon all
Holders, the Company and all other interested persons. No members of the
Committee or Board shall be personally liable for any action, determination or
interpretation made in good faith with respect to the Plan or Awards, and all
members of the Committee and the Board shall be fully protected by the Company
in respect of any such action, determination or interpretation.

10.5 Delegation of Authority to Grant Awards. The Committee may, but need not,
delegate from time to time some or all of its authority to grant Awards under
the Plan to a committee consisting of one or more members of the Committee or of
one or more officers of the Company; provided, however, that the Committee may
not delegate its authority to grant Awards to individuals (i) who are subject on
the date of the grant to the reporting rules under Section 16(a) of the Exchange
Act, or (ii) who are officers of the Company who are delegated authority by the
Committee hereunder. Any delegation hereunder shall be subject to the
restrictions and limits that the Committee specifies at the time of such
delegation of authority and may be rescinded at any time by the Committee. At
all times, any committee appointed under this Section 10.5 shall serve in such
capacity at the pleasure of the Committee.

                                       15
<PAGE>
                                   ARTICLE XI.

                            MISCELLANEOUS PROVISIONS

11.1 Not Transferable.

        (a) No Award under the Plan may be sold, pledged, assigned or
transferred in any manner other than by will or the laws of descent and
distribution or, unless and until such Award has been exercised, or the shares
underlying such Award have been issued, and all restrictions applicable to such
shares have lapsed. No Award or interest or right therein shall be liable for
the debts, contracts or engagements of the Holder or his or her successors in
interest or shall be subject to disposition by transfer, alienation,
anticipation, pledge, encumbrance, assignment or any other means whether such
disposition be voluntary or involuntary or by operation of law by judgment,
levy, attachment, garnishment or any other legal or equitable proceedings
(including bankruptcy), and any attempted disposition thereof shall be null and
void and of no effect, except to the extent that such disposition is permitted
by the preceding sentence.

        (b) Notwithstanding the provisions of subsection (a) hereof, the
Administrator, in its absolute discretion, may determine to grant to any Holder
an Award which, by its terms as set forth in the applicable Award Agreement, may
be transferred by the Holder, in writing and with prior written notice to the
Administrator, (i) pursuant to a DRO, or (ii) by gift, without the receipt of
any consideration, to a member of Holder's immediate family, as defined in Rule
16a-1 under the Exchange Act, or to a trust for the exclusive benefit of, or any
other entity owned solely by, such members, provided, that an Award that has
been so transferred shall continue to be subject to all of the terms and
conditions of the Award as applicable to the original Holder, and the transferee
shall execute any and all such documents requested by the Administrator in
connection with the transfer, including without limitation to evidence the
transfer and to satisfy any requirements for an exemption for the transfer under
applicable federal and state securities laws.

11.2 Amendment, Suspension or Termination of the Plan(a) . Except as otherwise
provided in this Section 11.2, the Plan may be wholly or partially amended or
otherwise modified, suspended or terminated at any time or from time to time by
the Administrator. No amendment, suspension or termination of the Plan shall,
without the consent of the Holder, alter or impair any rights or obligations
under any Award theretofore granted or awarded, unless the Award itself
otherwise expressly so provides. No Awards may be granted or awarded during any
period of suspension or after termination of the Plan.

11.3 Changes in Common Stock or Assets of the Company, Acquisition or
Liquidation of the Company and Other Corporate Events.

        (a) Subject to Section 11.3(d), in the event that the Administrator
determines that any dividend or other distribution (whether in the form of cash,
Common Stock, other securities or other property), recapitalization,
reclassification, stock split, reverse stock split, reorganization, merger,
consolidation, split-up, spin-off, combination, repurchase, liquidation,
dissolution, or

                                       16
<PAGE>
sale, transfer, exchange or other disposition of all or substantially all of the
assets of the Company, or exchange of Common Stock or other securities of the
Company, issuance of warrants or other rights to purchase Common Stock or other
securities of the Company, or other similar corporate transaction or event, in
the Administrator's sole discretion, affects the Common Stock such that an
adjustment is determined by the Administrator to be appropriate in order to
prevent dilution or enlargement of the benefits or potential benefits intended
to be made available under the Plan or with respect to an Award, then the
Administrator shall, in such manner as it may deem equitable, adjust any or all
of:

               (i) the number and kind of shares of Common Stock (or other
        securities or property) with respect to which Awards may be granted or
        awarded (including, but not limited to, adjustments of the limitations
        in Section 2.1 on the maximum number and kind of shares which may be
        issued and adjustments of the Award Limit),

               (ii) the number and kind of shares of Common Stock (or other
        securities or property) subject to outstanding Awards, and

               (iii) the grant or exercise price with respect to any Award.

        (b) Subject to Section 11.3(d), in the event of any transaction or event
described in Section 11.3(a) or any unusual or nonrecurring transactions or
events affecting the Company, any affiliate of the Company, or the financial
statements of the Company or any affiliate, or of changes in applicable laws,
regulations, or accounting principles, the Administrator, in its sole and
absolute discretion, and on such terms and conditions as it deems appropriate,
either by the terms of the Award or by action taken prior to the occurrence of
such transaction or event and either automatically or upon the Holder's request,
is hereby authorized to take any one or more of the following actions whenever
the Administrator determines that such action is appropriate in order to prevent
dilution or enlargement of the benefits or potential benefits intended to be
made available under the Plan or with respect to any Award under the Plan, to
facilitate such transactions or events, or to give effect to such changes in
laws, regulations or principles:

               (i) To provide for either the purchase of any such Award for an
        amount of cash equal to the amount that could have been attained upon
        the exercise of such Award or realization of the Holder's rights had
        such Award been currently exercisable or payable or fully vested or the
        replacement of such Award with other rights or property selected by the
        Administrator in its sole discretion;

               (ii) To provide that the Award cannot vest, be exercised or
        become payable after such event;

               (iii) To provide that such Award shall be exercisable as to all
        shares covered thereby, notwithstanding anything to the contrary in
        Section 5.3 or the provisions of such Award;

               (iv) To provide that such Award be assumed by the successor or
        survivor corporation, or a parent or subsidiary thereof, or shall be
        substituted for by similar options, rights or awards covering the stock
        of the successor or survivor corporation, or a

                                       17
<PAGE>
        parent or subsidiary thereof, with appropriate adjustments as to the
        number and kind of shares and prices;

               (v) To make adjustments in the number and type of shares of
        Common Stock (or other securities or property) subject to outstanding
        Awards, or Awards which may be granted in the future, and in the number
        and kind of outstanding Restricted Stock or Deferred Stock subject to
        outstanding Awards, or Awards which may be granted in the future; and

               (vi) To provide that, for a specified period of time prior to
        such event, the restrictions imposed under an Award Agreement upon some
        or all shares of Restricted Stock or Deferred Stock may be terminated,
        and, in the case of Restricted Stock, some or all shares of such
        Restricted Stock may cease to be subject to repurchase under Section 7.5
        or forfeiture under Section 7.4 after such event.

        (c) Subject to Sections 11.3(d) and 3.2, the Administrator may, in its
discretion, include such further provisions and limitations in any Award,
agreement or certificate, as it may deem equitable and in the best interests of
the Company.

        (d) No adjustment or action described in this Section 11.3 shall be
authorized to the extent such adjustment or action would result in short-swing
profits liability under Section 16 or violate the exemptive conditions of Rule
16b-3 unless the Administrator determines that the Award is not to comply with
such exemptive conditions. The number of shares of Common Stock subject to any
Award shall always be rounded up to the next whole number.

        (e) The existence of the Plan, the Award Agreement and the Awards
granted hereunder shall not affect or restrict in any way the right or power of
the Company or the stockholders of the Company to make or authorize any
adjustment, recapitalization, reorganization or other change in the Company's
capital structure or its business, any merger or consolidation of the Company,
any issue of stock or of options, warrants or rights to purchase stock or of
bonds, debentures, preferred or prior preference stocks whose rights are
superior to or affect the Common Stock or the rights thereof or which are
convertible into or exchangeable for Common Stock, or the dissolution or
liquidation of the company, or any sale or transfer of all or any part of its
assets or business, or any other corporate act or proceeding, whether of a
similar character or otherwise.

11.4 Tax Withholding. The Company shall be entitled to require payment in cash
or deduction from other compensation payable to each Holder of any sums required
by federal, state or local tax law to be withheld with respect to the issuance,
vesting, exercise or payment of any Award. The Administrator may in its
discretion and in satisfaction of the foregoing requirement allow such Holder to
elect to have the Company withhold shares of Common Stock otherwise issuable
under such Award (or allow the return of shares of Common Stock) having a Fair
Market Value equal to the sums required to be withheld.

11.5 Loans. The Committee may, in its discretion, extend one or more loans to
Employees in connection with the exercise or receipt of an Award granted or
awarded under the Plan, or the

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<PAGE>
issuance of Restricted Stock or Deferred Stock awarded under the Plan. The terms
and conditions of any such loan shall be set by the Committee.

11.6 Forfeiture Provisions. Pursuant to its general authority to determine the
terms and conditions applicable to Awards under the Plan, the Administrator
shall have the right to provide, in the terms of Awards made under the Plan, or
to require a Holder to agree by separate written instrument, that (a) (i) any
proceeds, gains or other economic benefit actually or constructively received by
the Holder upon any receipt or exercise of the Award, or upon the receipt or
resale of any Common Stock underlying the Award, must be paid to the Company,
and (ii) the Award shall terminate and any unexercised portion of the Award
(whether or not vested) shall be forfeited, if (b)(i) a Termination of
Employment or Termination of Consultancy occurs prior to a specified date, or
within a specified time period following receipt or exercise of the Award, or
(ii) the Holder at any time, or during a specified time period, engages in any
activity in competition with the Company, or which is inimical, contrary or
harmful to the interests of the Company, as further defined by the Administrator
or (iii) the Holder incurs a Termination of Employment or Termination of
Consultancy for cause.

11.7 Effect of Plan upon Options and Compensation Plans. The adoption of the
Plan shall not affect any other compensation or incentive plans in effect for
the Company or any Subsidiary, except as specifically set forth in the preamble
hereof. Nothing in the Plan shall be construed to limit the right of the Company
(a) to establish any other forms of incentives or compensation for Employees,
Directors or Consultants of the Company or any Subsidiary or (b) to grant or
assume options or other rights or awards otherwise than under the Plan in
connection with any proper corporate purpose including but not by way of
limitation. the grant or assumption of options in connection with the
acquisition by purchase, lease, merger, consolidation or otherwise, of the
business, stock or assets of any corporation, partnership, limited liability
company, firm or association.

11.8 Compliance with Laws. The Plan, the granting and vesting of Awards under
the Plan and the issuance and delivery of shares of Common Stock and the payment
of money under the Plan or under Awards granted or awarded hereunder are subject
to compliance with all applicable federal and state laws, rules and regulations
(including but not limited to state and federal securities law and federal
margin requirements) and to such approvals by any listing, regulatory or
governmental authority as may, in the opinion of counsel for the Company, be
necessary or advisable in connection therewith. Any securities delivered under
the Plan shall be subject to such restrictions, and the person acquiring such
securities shall, if requested by the Company, provide such assurances and
representations to the Company as the Company may deem necessary or desirable to
assure compliance with all applicable legal requirements. To the extent
permitted by applicable law, the Plan and Awards granted or awarded hereunder
shall be deemed amended to the extent necessary to conform to such laws, rules
and regulations.

11.9 Titles. Titles are provided herein for convenience only and are not to
serve as a basis for interpretation or construction of the Plan.

11.10 Governing Law. The Plan and any agreements hereunder shall be
administered, interpreted and enforced under the internal laws of the State of
Delaware without regard to conflicts of laws thereof.

                                       19
<PAGE>
                                    * * * * *

        I hereby certify that the foregoing Plan was duly adopted by the Board
of Directors as of July 31, 2002.

        Executed on this 31st day of July, 2002.

                                         By:   /s/ Robert A. Gordon
                                               ---------------------------------

                                         Name:  Robert A. Gordon

                                         Title: Senior Vice President,
                                                General Counsel & Secretary

                                       20

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