Document:

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                                                                 Exhibit 10.2(a)
                                               Form of Employee Option Agreement
                                                - Performance Accelerated ISO --
                                          Under 2002 Incentive Compensation Plan

                        HORACE MANN EDUCATORS CORPORATION

                        2002 Incentive Compensation Plan

                             Stock Option Agreement

         This Stock Option Agreement (the "Agreement") confirms the grant on
_________ __, ____ (the "Grant Date") by HORACE MANN EDUCATORS CORPORATION, a
Delaware corporation (the "Company"), to _______________ ("Employee") of an
incentive stock option (the "Option") to purchase shares of Common Stock, par
value $.001 per share (the "Shares"), as follows:

         Shares purchasable:        ________________ Shares
         Exercise Price:             $______________ per Share

         Option vests and becomes exercisable: As to all of the Shares on
         __________, ____; provided that portions of the Option will vest and
         become cumulatively exercisable ("Accelerated Vesting") if and to the
         extent that the performance goals set forth under the Company's
         Long-Term Incentive Plan have been achieved for the specified
         performance year. As specified on Attachment A hereto, for each year in
         the period ____ - ____, a level of achievement of performance targets,
         based __% on_________________ and __% on ____________________, will be
         determined by the Committee. This level of achievement (the
         "Achievement Level") will be expressed as a percentage of target level
         performance (blending ____ and ____ performance), ranging from __% if
         the "threshold" level of performance is achieved to ____% if the
         "target" level of performance is achieved to ___% if the "maximum"
         level is achieved or exceeded. If the calculated Achievement Level for
         any year would be less than __%, the Achievement Level will be deemed
         to be __, and no Accelerated Vesting will result for that year.
         Straight-line interpolation will apply if the level of achievement of
         ________ or _______ is less than "target," based on the "threshold" and
         "target" datapoints, or between "target" and "maximum" based on those
         datapoints. The Committee will determine the Achievement Level
         following the completion of the audit of the Company's financial
         statements for the performance year, with any resulting Accelerated
         Vesting effective at the date of such determination. Committee
         determinations of the Achievement Level under the Long-Term Incentive
         Plan and all other matters hereunder will be final. The portion of the
         Option, expressed as a percentage of the total number of Shares
         purchasable under the Option, subject to Accelerated Vesting in each
         year will be as follows:

                                             Portion of Option Subject
         Performance Year                      to Accelerated Vesting
         ----------------                      ----------------------
                ____                        __% times the Achievement Level
                ____                        __% times the Achievement Level
                ____                        __% times the Achievement Level

         provided, however, that the portion of the Option subject to
         Accelerated Vesting in ____ in no event will exceed the then remaining
         unvested portion of the Option. In addition to possible Accelerated
         Vesting, the Option will become immediately vested and exercisable upon
         the occurrence of certain events relating to Termination of Employment,
         in accordance with Section 4 hereof. (Note: If the portion of this
         Option and any previously granted incentive stock option which vests in
         any one year has an aggregate exercise price in excess of $100,000,
         that portion of this Option in excess of that $100,000 aggregate
         vesting limit will not qualify as an incentive stock option but will be
         treated as a vested non-qualified stock option.)

         Expiration Date:  _______ __, ____ (the "Stated Expiration Date") or,
         in the event Employee's employment by the Company and its subsidiaries
         terminates earlier, the date the Option ceases to

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         be exercisable under Section 4 hereof.

         The Option is subject to the terms and conditions of the 2002 Incentive
Compensation Plan (the "Plan") and this Agreement, including the Terms and
Conditions of Option Grant attached hereto and deemed a part hereof. The number
and kind of shares purchasable, the Exercise Price, and other terms and
conditions are subject to adjustment in accordance with Section 11(c) of the
Plan.

         Employee acknowledges and agrees that (i) the Option is
nontransferable, except as provided in Section 6 hereof and Section 11(b) of the
Plan, (ii) the Option is subject to forfeiture in the event of Employee's
termination of employment in certain circumstances, as specified in Section 4
hereof, and (iii) sales of Shares will be subject to the Company's policies
regulating trading by employees.

         IN WITNESS WHEREOF, HORACE MANN EDUCATORS CORPORATION has caused this
Agreement to be executed by its officer thereunto duly authorized.

                                                      HORACE MANN EDUCATORS
                                                       CORPORATION

                                                      By:_____________________

                                                         [Name]
                                                         [Title]

                                       2

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                      TERMS AND CONDITIONS OF OPTION GRANT

         The following Terms and Conditions apply to the Option granted to
Employee by HORACE MANN EDUCATORS CORPORATION (the "Company"), as specified on
the preceding page. Certain specific terms of the Option, including the number
of shares purchasable, vesting and Expiration Date, and Exercise Price, are set
forth on the preceding page.

         1. General. The Option is granted to Employee under the Company's 2002
Incentive Compensation Plan (the "Plan"), which has been previously delivered to
Employee and/or is available upon request to the Corporate Benefits Department.
All of the applicable terms, conditions and other provisions of the Plan are
incorporated by reference herein. Capitalized terms used in this Agreement but
not defined herein shall have the same meanings as in the Plan. If there is any
conflict between the provisions of this document and mandatory provisions of the
Plan, the provisions of the Plan govern. By accepting the grant of the Option,
Employee agrees to be bound by all of the terms and provisions of the Plan (as
presently in effect or later amended), the rules and regulations under the Plan
adopted from time to time, and the decisions and determinations of the
Compensation Committee of the Company's Board of Directors (the "Committee")
made from time to time. The Option is an incentive stock option as defined under
Section 422 of the Internal Revenue Code of 1986, as amended, to the maximum
extent possible, and any portion that does not so qualify is a non-qualified
stock option.

         2. Right to Exercise Option.  Subject to all applicable laws, rules,
regulations and the terms of the Plan and this Agreement, Employee may exercise
the Option only after the time and to the extent the Option has become vested
and exercisable and prior to the Expiration Date of the Option.

         3. Method of Exercise. To exercise the Option, Employee must (a) give
written notice to the Vice President, Corporate Benefits of the Company, which
notice shall specifically refer to this Agreement, state the number of Shares as
to which the Option is being exercised, the name in which he or she wishes the
Shares to be issued, and be signed by Employee, and (b) pay in full to the
Company the Exercise Price of the Option for the number of Shares being
purchased either (i) in cash (including by check), payable in United States
dollars, (ii), by delivery of Shares already owned by Employee (which Shares
must have been held for at least six months if they were acquired under a
Company plan and are not considered to be "mature" shares for accounting
purposes) having a fair market value, determined as of the date the Option is
exercised, equal to all or the part of the aggregate Exercise Price being paid
in this way, or (iii) in any other manner then permitted by the Committee. Once
Employee gives notice of exercise, such notice may not be revoked. When Employee
exercises the Option, or part thereof, the Company will transfer Shares (or make
a non-certificated credit) to Employee's brokerage account at a designated
securities brokerage firm or otherwise deliver Shares to Employee. No Employee
or Beneficiary shall have at any time any rights with respect to Shares covered
by this Agreement prior to the valid exercise and full payment for the Shares as
specified herein, and no adjustment shall be made for dividends or other rights
for which the record date is prior to such valid exercise and payment.

         4. Termination Provisions. The following provisions will govern the
vesting, exercisability and expiration of the Option in the event of termination
of Employee's employment, unless the Committee determines to provide more
favorable terms; provided, however, that the vesting, exercisability and
expiration of the Option provided under Section 9(a)(iii) of the Plan, relating
to certain Terminations following a Change of Control, shall apply to the extent
that the provisions of Section 9(a)(iii) would be more favorable to Employee,
except as limited under Subsection (h) below:

            (a) Death. In the event of Employee's Termination of
         Employment due to death, the Option, to the extent then outstanding,
         will vest and become immediately exercisable in full, and will remain
         exercisable, in accordance with Section 11(b) of the Plan, until the
         earlier of one year after such death or the Stated Expiration Date.
         (Note: Exercise of the option more than three months after Termination
         would not qualify for favorable incentive stock option tax treatment.)

            (b) Disability. In the event of Employee's Termination of
         Employment due to Disability (as defined below), the Option, to the
         extent then outstanding, will vest and become immediately exercisable
         in full, and will remain exercisable until the earlier of one year
         after such Termination of Employment or the Stated Expiration Date.
         (Note: Certain Disabilities under the Plan may not

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     qualify as a "disability" under incentive stock option tax rules, so that
     exercise of the option more than three months after Termination would not
     qualify for favorable incentive stock option tax treatment.)

          (c) Retirement. In the event of Employee's Termination of Employment
     due to Retirement (as defined below), the Option, to the extent then
     outstanding, will vest and become immediately exercisable in full, and will
     remain exercisable until the earlier of five years after such Termination
     of Employment or the Stated Expiration Date. (Note: Exercise of the option
     more than three months after Termination would not qualify for favorable
     incentive stock option tax treatment.)

          (d) Termination by the Company Without Cause. In the event of
     Employee's Termination of Employment by the Company without Cause, the
     portion of the then-outstanding Option not vested and exercisable at the
     date of termination will be forfeited, and any portion of the
     then-outstanding Option that is vested and exercisable at the date of
     termination will expire at the earlier of three months after Termination of
     Employment or the Stated Expiration Date.

          (e) Termination by the Company for Cause. In the event of Employee's
     Termination of Employment by the Company for Cause (as defined below), the
     Option, whether or not then vested and exercisable, immediately will be
     forfeited and will expire.

          (f) Termination by the Employee Voluntarily. In the event of
     Employee's voluntary Termination of Employment, the portion of the
     then-outstanding Option not vested and exercisable at the date of
     termination will be forfeited, and any vested portion of the
     then-outstanding Option will expire immediately at the date of Termination
     of Employment.

          (g) Certain Definitions. The following definitions apply for purposes
     of this Agreement:

               (i)     "Cause" means (A) the willful and continued failure by
          Employee to perform substantially his duties with the Company (other
          than any such failure resulting from Employee's incapacity due to
          physical or mental illness) after a written demand for substantial
          performance is delivered to Employee which specifically identifies the
          manner in which Employee has not substantially performed his duties,
          (B) the willful engagement by Employee in conduct which is not
          authorized by the Board of Directors of the Company or within the
          normal course of Employee's business decisions and is known by
          Employee to be materially detrimental to the best interests of the
          Company or any of its subsidiaries, or (C) the willful engagement by
          Employee in illegal conduct or any act of serious dishonesty which
          adversely affects, or, in the reasonable estimation of the Board of
          Directors of the Company, could in the future adversely affect, the
          value, reliability or performance of Employee to the Company in a
          material manner. Any act, or failure to act, based upon authority
          given pursuant to a resolution duly adopted by the Board of Directors
          of the Company or based upon the advice of counsel for the Company
          shall be conclusively presumed to be done, or omitted to be done, by
          Employee in good faith and in the best interests of the Company. The
          foregoing notwithstanding, in any case governed by Section 9 of the
          Plan (following a Change of Control), the definition set forth in
          Section 9(c) of the Plan shall govern.

               (ii)    "Disability" means a disability entitling the Employee to
          long-term disability benefits under the Company's long-term disability
          policy as in effect at the date of Employee's Termination of
          Employment.

               (iii)   "Retirement" means retirement from active employment with
          the Company or a subsidiary pursuant to the early or normal retirement
          provisions of the Company's or the subsidiary's qualified retirement
          plan.

               (iv)    "Termination of Employment" means the earliest time at
          which Employee is not employed by the Company or a subsidiary of the
          Company and is not serving as a

                                        4

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           non-employee director of the Company or a subsidiary of the Company.

           (h)  Limitation on Acceleration of Certain Options Upon Termination
       Following a Change of Control. In the event of a Termination of
       Employment of Employee following a Change of Control, if Section
       9(a)(iii) of the Plan or any other provision (an "Enhancement Provision")
       would apply so as to accelerate vesting of the Option or otherwise
       enhance the rights of Employee with respect to the exercise or expiration
       of the Option, and if Employee will be subject to a golden parachute
       excise tax under Section 4999 of the Internal Revenue Code (regardless of
       any rights to a gross-up payment from the Company or any other party),
       and if the amount of "parachute payments" resulting from the Enhancement
       Provision exceeds the intrinsic value of the Option (i.e., the "spread")
       at the date parachute payments would be measured for purposes of Section
       4999, then the Enhancement Provision shall not apply to the Option except
       to the extent (if any) possible without Employee becoming subject to the
       golden parachute excise tax under Section 4999.

       5.  Employee Representations and Warranties Upon Exercise. As a condition
to the exercise of the Option, the Company may require Employee to make any
representation or warranty to the Company as may be required under any
applicable law or regulation.

       6.  Nontransferability. Employee may not transfer the Option or any
rights thereunder to any third party other than by will or the laws of descent
and distribution, and, during Employee's lifetime, only Employee or his or her
duly appointed guardian or legal representative may exercise the Option, except
for transfers to a Beneficiary in the event of death or as otherwise permitted
and subject to the conditions under Section 11(b) of the Plan (note: these
exceptions do not apply to portions of the Option that are incentive stock
options).

       7.  Miscellaneous.

           (a)  Binding Agreement; Written Amendments. This Agreement shall be
       binding upon the heirs, executors, administrators and successors of the
       parties. This Agreement constitutes the entire agreement between the
       parties with respect to the Option, and supersedes any prior agreements
       or documents with respect to the Option. No amendment or alteration of
       this Agreement which may impose any additional obligation upon the
       Company shall be valid unless expressed in a written instrument duly
       executed in the name of the Company, and no amendment, alteration,
       suspension or termination of this Agreement which may materially impair
       the rights of Employee with respect to the Option shall be valid unless
       expressed in a written instrument executed by Employee.

           (b)  No Promise of Employment. The Option and the granting thereof
       shall not constitute or be evidence of any agreement or understanding,
       express or implied, that Employee has a right to continue as an officer
       or employee of the Company for any period of time, or at any particular
       rate of compensation.

           (c)  Governing Law. The validity, construction, and effect of this
       agreement shall be determined in accordance with the laws (including
       those governing contracts) of the state of Delaware, without giving
       effect to principles of conflicts of laws, and applicable federal law.

           (d)  Notices. Any notice to be given the Company under this Agreement
       shall be addressed to the Company at its principal executive offices, in
       care of the Vice President, Corporate Benefits, and any notice to the
       Employee shall be addressed to the Employee at Employee's address as then
       appearing in the records of the Company.

                                       5

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                                                                    Attachment A

                         CORPORATE PERFORMANCE MEASURES
                        FOR THE LONG TERM INCENTIVE PLAN

<TABLE>
<CAPTION>
Measure              Weight       ____ (__% Vesting)            ____ (___% Vesting)       ____ (_0% Vesting)
----------------------------------------------------------------------------------------------------------------
<S>                  <C>          <C>     <C>     <C>           <C>     <C>     <C>       <C>     <C>      <C>
                                  Thres.  Target  Max.          Thres.  Target  Max.      Thres.  Target   Max.
                                  ------------------------------------------------------------------------------
-----------------     --%         $----   $----   $----         $----   $----   $----     $----     $----   $----

-----------------     --%         ----%   ----%   ----%         ----%   ----%   ----%     ----%     ----%   ----%
</TABLE>

Note: Threshold payout is at __%. Target payout is at ___%. Maximum is at____%.

                                       6<PAGE>

                                                                 Exhibit 10.2(b)
                                                 Form of Regular Employee Option
                                             Agreement - ISO w/ standard vesting
                                       -- Under 2002 Incentive Compensation Plan

                        HORACE MANN EDUCATORS CORPORATION

                        2002 Incentive Compensation Plan

                             Stock Option Agreement

         This Stock Option Agreement (the "Agreement") confirms the grant on
_________ __, ____ (the "Grant Date") by HORACE MANN EDUCATORS CORPORATION, a
Delaware corporation (the "Company"), to ____________ ("Employee") of an
incentive stock option (the "Option") to purchase shares of Common Stock, par
value $.001 per share (the "Shares"), as follows:

         Shares purchasable:    _____________ Shares

         Exercise Price:        $____________ per Share

         Option vests and becomes exercisable: As to __% of the Shares on the
         Grant Date and thereafter as to __% of the Shares, cumulatively, on
         each of the first, second, and third anniversaries of the Grant Date
         (rounded to the nearest whole share). In addition, the Option will
         become immediately vested and exercisable upon the occurrence of
         certain events relating to Termination of Employment, in accordance
         with Section 4 hereof. (Note: If the portion of this Option and any
         previously granted incentive stock option which vests in any one year
         has an aggregate exercise price in excess of $100,000, that portion of
         this Option in excess of that $100,000 aggregate vesting limit will not
         qualify as an incentive stock option but will be treated as a vested
         non-qualified stock option.)

         Expiration Date: _______ __, ___ (the "Stated Expiration Date") or, in
         the event Employee's employment by the Company and its subsidiaries
         terminates earlier, the date the Option ceases to be exercisable under
         Section 4 hereof.

         The Option is subject to the terms and conditions of the 2002 Incentive
Compensation Plan (the "Plan") and this Agreement, including the Terms and
Conditions of Option Grant attached hereto and deemed a part hereof. The number
and kind of shares purchasable, the Exercise Price, and other terms and
conditions are subject to adjustment in accordance with Section 11(c) of the
Plan.

         Employee acknowledges and agrees that (i) the Option is
nontransferable, except as provided in Section 6 hereof and Section 11(b) of the
Plan, (ii) the Option is subject to forfeiture in the event of Employee's
termination of employment in certain circumstances, as specified in Section 4
hereof, and (iii) sales of Shares will be subject to the Company's policies
regulating trading by employees.

         IN WITNESS WHEREOF, HORACE MANN EDUCATORS CORPORATION has caused this
Agreement to be executed by its officer thereunto duly authorized.

                                             HORACE MANN EDUCATORS CORPORATION

                                             By:_______________________________
                                                   [Name]
                                                   [Title]

<PAGE>

                      TERMS AND CONDITIONS OF OPTION GRANT

         The following Terms and Conditions apply to the Option granted to
Employee by HORACE MANN EDUCATORS CORPORATION (the "Company"), as specified on
the preceding page. Certain specific terms of the Option, including the number
of shares purchasable, vesting and Expiration Date, and Exercise Price, are set
forth on the preceding page.

         1. General. The Option is granted to Employee under the Company's 2002
Incentive Compensation Plan (the "Plan"), which has been previously delivered to
Employee and/or is available upon request to the Corporate Benefits Department.
All of the applicable terms, conditions and other provisions of the Plan are
incorporated by reference herein. Capitalized terms used in this Agreement but
not defined herein shall have the same meanings as in the Plan. If there is any
conflict between the provisions of this document and mandatory provisions of the
Plan, the provisions of the Plan govern. By accepting the grant of the Option,
Employee agrees to be bound by all of the terms and provisions of the Plan (as
presently in effect or later amended), the rules and regulations under the Plan
adopted from time to time, and the decisions and determinations of the
Compensation Committee of the Company's Board of Directors (the "Committee")
made from time to time. The Option is an incentive stock option as defined under
Section 422 of the Internal Revenue Code of 1986, as amended, to the maximum
extent possible, and any portion that does not so qualify is a non-qualified
stock option.

         2. Right to Exercise Option. Subject to all applicable laws, rules,
regulations and the terms of the Plan and this Agreement, Employee may exercise
the Option only after the time and to the extent the Option has become vested
and exercisable and prior to the Expiration Date of the Option.

         3. Method of Exercise. To exercise the Option, Employee must (a) give
written notice to the Vice President, Corporate Benefits of the Company, which
notice shall specifically refer to this Agreement, state the number of Shares as
to which the Option is being exercised, the name in which he or she wishes the
Shares to be issued, and be signed by Employee, and (b) pay in full to the
Company the Exercise Price of the Option for the number of Shares being
purchased either (i) in cash (including by check), payable in United States
dollars, (ii), by delivery of Shares already owned by Employee (which Shares
must have been held for at least six months if they were acquired under a
Company plan and are not considered to be "mature" shares for accounting
purposes) having a fair market value, determined as of the date the Option is
exercised, equal to all or the part of the aggregate Exercise Price being paid
in this way, or (iii) in any other manner then permitted by the Committee. Once
Employee gives notice of exercise, such notice may not be revoked. When Employee
exercises the Option, or part thereof, the Company will transfer Shares (or make
a non-certificated credit) to Employee's brokerage account at a designated
securities brokerage firm or otherwise deliver Shares to Employee. No Employee
or Beneficiary shall have at any time any rights with respect to Shares covered
by this Agreement prior to the valid exercise and full payment for the Shares as
specified herein, and no adjustment shall be made for dividends or other rights
for which the record date is prior to such valid exercise and payment.

         4. Termination Provisions. The following provisions will govern the
vesting, exercisability and expiration of the Option in the event of termination
of Employee's employment, unless the Committee determines to provide more
favorable terms; provided, however, that the vesting, exercisability and
expiration of the Option provided under Section 9(a)(iii) of the Plan, relating
to certain Terminations following a Change of Control, shall apply to the extent
that the provisions of Section 9(a)(iii) would be more favorable to Employee,
except as limited under Subsection (h) below:

            (a) Death. In the event of Employee's Termination of Employment due
         to death, the Option, to the extent then outstanding, will vest and
         become immediately exercisable in full, and will remain exercisable, in
         accordance with Section 11(b) of the Plan, until the earlier of one
         year after such death or the Stated Expiration Date. (Note: Exercise of
         the option more than three months after Termination would not qualify
         for favorable incentive stock option tax treatment.)

            (b) Disability. In the event of Employee's Termination of Employment
         due to Disability (as defined below), the Option, to the extent then
         outstanding[, will vest and become immediately exercisable in full, and
         will remain exercisable until the earlier of one year after such
         Termination

                                       2

<PAGE>

         of Employment or the Stated Expiration Date. (Note: Certain
         Disabilities under the Plan may not qualify as a "disability" under
         incentive stock option tax rules, so that exercise of the option more
         than three months after Termination would not qualify for favorable
         incentive stock option tax treatment.)

            (c) Retirement. In the event of Employee's Termination of Employment
         due to Retirement (as defined below), the Option, to the extent then
         outstanding, will not be forfeited, but will remain outstanding until
         the date that is the earlier of two years after such Termination of
         Employment or the Stated Expiration Date. Any portion of the Option
         that had not become exercisable as of the date of Termination of
         Employment will become exercisable one year after the date of
         Termination of Employment (without regard to any intervening vesting
         date specified on the cover page of this Agreement). (Note: Exercise of
         any portion of the option more than three months after Termination
         would not qualify for favorable incentive stock option tax treatment.)

            (d) Termination by the Company Without Cause. In the event of
         Employee's Termination of Employment by the Company without Cause, the
         portion of the then-outstanding Option not vested and exercisable at
         the date of termination will be forfeited, and any portion of the
         then-outstanding Option that is vested and exercisable at the date of
         termination will expire at the earlier of three months after
         Termination of Employment or the Stated Expiration Date.

            (e) Termination by the Company for Cause. In the event of Employee's
         Termination of Employment by the Company for Cause (as defined below),
         the Option, whether or not then vested and exercisable, immediately
         will be forfeited and will expire.

            (f) Termination by the Employee Voluntarily. In the event of
         Employee's voluntary Termination of Employment, the portion of the
         then-outstanding Option not vested and exercisable at the date of
         termination will be forfeited, and any vested portion of the
         then-outstanding Option will expire immediately at the date of
         Termination of Employment.

            (g) Certain Definitions. The following definitions apply for
         purposes of this Agreement:

                (i)  "Cause" means (A) the willful and continued failure by
            Employee to perform substantially his duties with the Company (other
            than any such failure resulting from Employee's incapacity due to
            physical or mental illness) after a written demand for substantial
            performance is delivered to Employee which specifically identifies
            the manner in which Employee has not substantially performed his
            duties, (B) the willful engagement by Employee in conduct which is
            not authorized by the Board of Directors of the Company or within
            the normal course of Employee's business decisions and is known by
            Employee to be materially detrimental to the best interests of the
            Company or any of its subsidiaries, or (C) the willful engagement by
            Employee in illegal conduct or any act of serious dishonesty which
            adversely affects, or, in the reasonable estimation of the Board of
            Directors of the Company, could in the future adversely affect, the
            value, reliability or performance of Employee to the Company in a
            material manner. Any act, or failure to act, based upon authority
            given pursuant to a resolution duly adopted by the Board of
            Directors of the Company or based upon the advice of counsel for the
            Company shall be conclusively presumed to be done, or omitted to be
            done, by Employee in good faith and in the best interests of the
            Company. The foregoing notwithstanding, in any case governed by
            Section 9 of the Plan (following a Change of Control), the
            definition set forth in Section 9(c) of the Plan shall govern.

                (ii) "Disability" means a disability entitling the Employee to
            long-term disability benefits under the Company's long-term
            disability policy as in effect at the date of Employee's Termination
            of Employment.

                                       3

<PAGE>

                (iii) "Retirement" means retirement from active employment with
            the Company or a subsidiary pursuant to the early or normal
            retirement provisions of the Company's or the subsidiary's qualified
            retirement plan.

                (iv)  "Termination of Employment" means the earliest time at
            which Employee is not employed by the Company or a subsidiary of the
            Company and is not serving as a non-employee director of the Company
            or a subsidiary of the Company.

            (h) Limitation on Acceleration of Certain Options Upon Termination
         Following a Change of Control. In the event of a Termination of
         Employment of Employee following a Change of Control, if Section
         9(a)(iii) of the Plan or any other provision (an "Enhancement
         Provision") would apply so as to accelerate vesting of the Option or
         otherwise enhance the rights of Employee with respect to the exercise
         or expiration of the Option, and if Employee will be subject to a
         golden parachute excise tax under Section 4999 of the Internal Revenue
         Code (regardless of any rights to a gross-up payment from the Company
         or any other party), and if the amount of "parachute payments"
         resulting from the Enhancement Provision exceeds the intrinsic value of
         the Option (i.e., the "spread") at the date parachute payments would be
         measured for purposes of Section 4999, then the Enhancement Provision
         shall not apply to the Option except to the extent (if any) possible
         without Employee becoming subject to the golden parachute excise tax
         under Section 4999.

         5. Employee Representations and Warranties Upon Exercise. As a
condition to the exercise of the Option, the Company may require Employee to
make any representation or warranty to the Company as may be required under any
applicable law or regulation.

         6. Nontransferability. Employee may not transfer the Option or any
rights thereunder to any third party other than by will or the laws of descent
and distribution, and, during Employee's lifetime, only Employee or his or her
duly appointed guardian or legal representative may exercise the Option, except
for transfers to a Beneficiary in the event of death or as otherwise permitted
and subject to the conditions under Section 11(b) of the Plan (note: these
exceptions do not apply to portions of the Option that are incentive stock
options).

         7. Miscellaneous.

            (a) Binding Agreement; Written Amendments. This Agreement shall be
         binding upon the heirs, executors, administrators and successors of the
         parties. This Agreement constitutes the entire agreement between the
         parties with respect to the Option, and supersedes any prior agreements
         or documents with respect to the Option. No amendment or alteration of
         this Agreement which may impose any additional obligation upon the
         Company shall be valid unless expressed in a written instrument duly
         executed in the name of the Company, and no amendment, alteration,
         suspension or termination of this Agreement which may materially impair
         the rights of Employee with respect to the Option shall be valid unless
         expressed in a written instrument executed by Employee.

            (b) No Promise of Employment. The Option and the granting thereof
         shall not constitute or be evidence of any agreement or understanding,
         express or implied, that Employee has a right to continue as an officer
         or employee of the Company for any period of time, or at any particular
         rate of compensation.

            (c) Governing Law. The validity, construction, and effect of this
         agreement shall be determined in accordance with the laws (including
         those governing contracts) of the state of Delaware, without giving
         effect to principles of conflicts of laws, and applicable federal law.

            (d) Notices. Any notice to be given the Company under this Agreement
         shall be addressed to the Company at its principal executive offices,
         in care of the Vice President, Corporate Benefits, and any notice to
         the Employee shall be addressed to the Employee at Employee's address
         as then appearing in the records of the Company.

                                       4

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