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                                                                   EXHIBIT 10.31

                     AMENDED AND RESTATED LICENSE AGREEMENT

                  Carnegie Mellon University - Mediasite, Inc.

This Amended and Restated License Agreement (hereinafter "this Agreement")
entered into effective as of the 15/th/ day of October, 2001 by and between
Carnegie Mellon University, a Pennsylvania not-for-profit corporation, having a
principal place of business at 5000 Forbes Avenue, Pittsburgh, Pennsylvania
("CMU") and Sonic Foundry Systems Group, Inc., a Maryland for-profit
corporation having its place of business at 1617 Sherman Avenue Madison, WI
53704,303, and its corporate parent, Sonic Foundry, Inc., a Maryland corporation
having its place of business at 1617 Sherman Avenue Madison, WI 53704
(hereinafter collectively referred to as "Licensee").

                                   WITNESSETH

WHEREAS, CMU owns certain rights in certain technology and software relating to
CMU Informedia Project, in the general field of image, sound and text analysis,
segmentation, characterization, search, retrieval, processing, presentation,
display, and other functions, and is interested in licensing same;

WHEREAS, CMU and MediaSite, Inc. (f/k/a islipMedia Network, Inc.) entered into
that certain License Agreement dated October 22, 1997, amended on November 24,
1999 (collectively, the "License Agreement").

WHEREAS, Licensee acquired substantially all of the assets of MediaSite and
assumed certain of its liabilities, including the License Agreement, pursuant to
an asset purchase agreement dated September 6, 2001 and which asset purchase was
effective as of October 15, 2001.

WHEREAS, the parties desire to amend the License Agreement in the manner set
forth in this Agreement and desire to have this Agreement completely supercede
the License Agreement.

NOW THEREFORE, in consideration of the mutual covenants contained herein and
other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, and intending to be legally bound hereby, the parties agree
as follows:

1. Certain Definitions ("Defined Terms")

1.1. "Code" shall mean computer programming code in both Source Code and Object
Code form.

1.2. "Object Code" shall mean Code, substantially or entirely in binary form,
which is intended to be directly executable by a computer after suitable
processing but without the intervening steps of compilation or assembly.

1.3. "Source Code" shall mean Code, other than Object Code, and related source
code level system documentation, comments and procedural code, such as job
control language, which may be printed out or displayed in human readable form.

1.4. "Copyrights" shall mean any CMU copyrights in licensed Code and other
information licensed under this Agreement.

1.5. The "Informedia Project" shall mean Informedia: Integrated Speech, Image,
and Language Understanding for Creation and Exploration of Digital Video
Libraries conducted under grant No. IRI-9411299 from September, 1994 to
September, 1998 and related, contributing technology from other projects
developed prior to October 1, 1998, which is necessary to implement the
technology developed under grant No. IRI-9411299.

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1.6. "Patent(s)" shall mean and include all or any of the following: (i) U.S.
Patent No. 5,664,227 entitled System and Methods for Skimming Digital
Audio/Video Data, and foreign counterparts (ii) U.S. Patent No. 5,835,667
entitled Method and Apparatus for Creating a Searchable Digital Video Library
and a System and Method of Using Such a Library, and foreign counterparts, and
(iii) any additional patent application(s) which may be applied for by and be
issued to CMU related to the Licensed Technology (as defined under Section 1.7
herein), and (iv) any continuation, continuation-in-part, re-examination,
divisional, or reissue of such patents, in the USA or in any other country.

1.7. Licensed Technology (Also see Attachment A)

1.7.1 "Licensed Technology" or "Technology" shall mean the following related to
the CMU Informedia Project: (1) technology developed under the Informedia
Project, pursuant to grant No. IRI-9411299, through and including September 30,
1998, (2) background technology not developed under such grant but which is
needed and used in the Informedia Project, to the extent that CMU has the right
to license same; (3) all claims under the Patents and any modifications,
divisions, extensions, continuations, amendments, or foreign counterparts
thereto; (4) all Code, copyrights, trade secrets, know-how, trademarks and
tradenames owned by CMU, related to the foregoing technology listed in items
(1-3) above, existing as of the Effective Date; and (5) derivatives of the
foregoing technology if designed for use in the Informedia Project and developed
by CMU after the Effective Date and before September 30, 1998 ("the Additional
Period"), and which (a) has been defined in the annually submitted NSF program
plans that extend to the normal end date of the NSF funding, and/or incremental
extensions and renewals that may occur for the base project or (b) constitute
improvements and enhancements which do not introduce new functionality beyond
that found in the technology subject to the foregoing parts 2 and 3 of this
Section 1.7.1.

1.7.2 "Initial Technology" shall mean Licensed Technology "as is" on the
Effective Date.

1.7.3 "Additional Technology" shall mean the Licensed Technology developed after
the Effective Date, CMU has no obligation to Licensee to develop such.

1.8. "Technology Release Date" shall mean the date when a portion of Licensed
Technology is to be released by CMU to Licensee, in accordance with Section 2.3
herein, in a format and manner mutually agreed upon case by case by the parties.

1.9. "Derivative" shall mean the technology developed by Licensee, which
includes, or is based in whole or in part on, the Licensed Technology,
including, but not limited to, translations of the Licensed Technology to other
foreign or computer languages, adaptation of the Licensed Technology to other
hardware platforms, abridgments, condensations, revisions, and software
incorporating all or any part of the Licensed Technology which may also include
Licensee-created modifications, enhancements or other software. Licensee shall
be entitled to establish all proprietary rights for itself in the intellectual
property represented by Derivatives, whether in the nature of trade secrets,
copyrights, patents or other rights, subject to Copyrights; provided, however,
Licensee shall promptly notify CMU of Licensee-originated bug fixes to the
Licensed Technology. Any copyright registration by Licensee for Derivatives
shall give full attribution to CMU's Copyrights.

1.10. "Licensed Product" or "Product" shall mean any product and/or service
which is based on or utilizes wholly or in part Licensed Technology and/or any
and all Derivatives.

1.11. "Year" shall mean a twelve (12) month period ending December 31. "Year 1",
"Year 2", etc. shall mean the first, second, etc. Year following the Effective
Date. Year 1 shall commence January 1, 1998.

1.12. "Fiscal Quarter" or "Quarter" shall mean a normal quarterly accounting
period of Licensee within Licensee's fiscal year.

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1.13. "Dispose or Disposition" shall mean the sale, lease or other transfer of
Licensed Products.

1.14. "Revenue" shall mean the U.S. Dollar value of all consideration realized
by Licensee for the Disposition of Licensed Products. In the case of Licensed
Products that include more than the Licensed Technology, the calculation of
Revenue shall subtract (a) the price paid by Licensee for purchased hardware or
software (except software which, in whole or part, is within the definition of
Licensed Technology) that is sold as part of Licensed Products (other than
services) or, in the case of a lease, the proportionate share of said price
based upon the length of the useful life of the purchased hardware compared to
the length of the lease and/or (b) royalty payments to other parties which arise
because of the Disposition of other than the Licensed Technology.

1.15. "Net Sales" shall mean the total Revenues received by Licensee (i) from
the manufacture, use or Disposition of Licensed Products, and (ii) from services
related to Licensed Technology, including but not limited to software,
curriculum, consulting and training services, less the total of all --

      (a) Actual rebates and discounts provided by Licensee in ordinary course
      of business in an arm's length transaction with an unrelated party;
      (b) Sales tariffs, duties and/or taxes imposed on the Licensed Technology;
      (c) Outbound transportation prepaid or allowed; and
      (d) Amounts allowed or credited on returns.

No deduction shall be made for commissions paid to individuals whether they are
individual sales agents or persons regularly employed by Licensee.

1.16. "Royalties" shall mean disposition royalties which are calculated as a
percentage of Net Sales and will be payable by Licensee to CMU under the
provisions of this Agreement.

1.17. "Deferred Royalties" shall mean Royalties for which the cash payment to
CMU is deferred in accordance with Section 4.3 herein.

1.18. "Trigger Date" shall mean the date up to which the cash payment to CMU of
Royalties may be deferred by Licensee; it shall be deemed to be October 12,
2001.

1.19. "Effective Date" of this Agreement shall mean October 22, 1997.

1.20. "Dollar", "U.S. Dollar" and "U.S. $" shall mean lawful money of the United
States of America.

1.21. "Prime Rate" shall mean the interest rate per annum announced from time to
time by Mellon Bank, N.A., Pittsburgh, Pennsylvania, as its prime rate.

2. License Grant

2.1. License Grant. CMU hereby grants to Licensee, and Licensee hereby accepts
for the Term of this Agreement the exclusive (exclusive solely as to the parties
listed below as the "Prohibited Licensees"), world-wide right to use the
Licensed Technology to develop, have developed, make, have made, use and Dispose
of Licensed Products and to create Derivatives, within all fields of use and to
sublicense the Licensed Technology to others within the provisions of Section
2.4 herein. CMU shall not license the Patents to any of Adobe, Loudeye, Convera,
Virage and/or Avid or any of their successors in interest which shall include
any company or entity that acquires all or substantially all of the assets, or
all or substantially all of the stock, of any of the foregoing. As consideration
for the inclusion of Adobe as a Prohibited Licensee, Licensee shall

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pay to CMU a one-time fee of ten thousand dollars ($10,000) which is payable in
five equal installments beginning in February 2002.

2.2. Technology Release Dates. The Technology Release Date for the Initial
Technology shall be the Effective Date. Additional Technology shall be available
by CMU for Release to Licensee at the end of each month during the Additional
Period, or at other times if mutually agreed upon.

2.3. Sublicensing.

2.3.1. Sublicense Template. CMU will provide Licensee with a template for
consideration by Licensee for any sublicense under Exception 2 of the Sublicense
Grant ("Sublicense Template"); this Template will incorporate the general terms
and conditions which will be mandatory for all such sublicenses (other than
under Exception 1, Section 2.3.2.). Any sublicense must meet the material
requirements of the Sublicense Template.

2.3.2. Sublicense Grant. No right to sublicense the Licensed Technology is
hereby granted to Licensee except -

Exception 1: Licensee may sublicense Licensed Technology to its direct customers
as required to enable such customers to use and practice Licensed Technology.

Exception 2: Licensee may sublicense Licensed Technology to another party or
parties which were specifically pre-approved by CMU, in writing. Licensee shall
make sublicense royalty payments to CMU, based upon such sublicense, equal to or
greater than the following percentages of the revenue (all consideration)
realized by sub-licensee from the Disposition of Licensed Product (provided that
payments by sub-licensee to Licensee shall not be included in Net Sales):

Years following Effective Date     0-5     6-10     11 and thereafter
                                   ---     ----     ------------------

                                   10%      8%              6%

Exception 3: For different terms and conditions than specified in Exceptions 1
or 2, Licensee may sublicense Licensed Technology only with the specific written
agreement by CMU with regard to all provisions of such a proposed sublicense.

2.3.3. Possibility of Additional Specific Sublicense Templates in the Future. It
is recognized that, over a period of time, certain sublicensing patterns may
evolve which are in the common interest and acceptable to CMU and which could
result in CMU's pre-approval of Specific Sublicense Templates for specific
markets and other specific circumstances.

2.3.4. Sublicensing Agreements, Accounting, and Payment Terms. Licensee will
furnish CMU with current copies of all Sublicense agreements which were executed
under Exceptions 2 and 3. Licensee will maintain separate accounting records for
the sublicense income payable to CMU, and will report such income to CMU as
provided for under Section 8.1 herein. Sublicense royalties payable to CMU shall
be payable by Licensee to CMU quarterly, on the last day of the month
immediately following the Quarter during which any payment of royalties from a
sub licensee was received by Licensee.

2.4. Grant backs. During the term of the Agreement, CMU shall have the right to
use, free of charge, any product or process, solely developed and owned by
Licensee which contains or is based on any of Licensed Technology, patents, or
Licensed Product and/or Derivatives solely, for CMU research, educational,
academic, or administrative purposes. This subsection 2.4 does not include a
right by CMU to sublicense others. None of the restrictions of this subsection
2.4 apply to Bug Fixes reported to CMU under subsection 9.5.

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2.6. CMU / Licensee R&D and other Contract Relationships. No provision of this
Agreement shall restrict CMU's or Licensee's ability to conduct further research
and development in the area of Licensed Technology or other areas.

2.7. Regulations. All Licensed Products shall be manufactured, sold and
performed by Licensee in compliance with all applicable governmental laws, rules
and regulations. Licensee shall keep CMU fully informed of, and shall move
expeditiously to resolve, any complaint by a commercial and/or governmental body
relevant to the products or the services, except for complaints subject to
Section 23 of this Agreement.

3. Term of this Agreement

The term of this Agreement shall conclude at the end of twenty (20) years from
the Effective Date of this Agreement, or on the expiration date of the
last-to-expire Patent, whichever comes later, unless otherwise terminated
pursuant to another provision of this Agreement. If Licensee elects to utilize
any know-how or other Licensed Technology, which is not subject to any Patents,
it may do so provided that doing so constitutes an agreement by Licensee to
comply with the Royalties, sublicense royalty payment provisions, and the other
provisions of this Agreement except for (a) the reference to Patents in
Subsection 11.1 and (b) Section 23.

4. Royalties

4.1. General. As partial consideration for the rights and values received under
this License, Licensee shall pay CMU royalties in accordance with the provisions
of this Section 4 herein, in addition to the payments due from Licensee under
the provisions of 2.3.

4.2 Calculation of Royalties. Royalties payable by Licensee to CMU shall be
calculated by Licensee each Quarter as a percentage of Net Sales ("Calculated
Royalties") at the following rates ("Royalty Rates"):

- five percent (5%) for the first five Years beginning on the Effective Date
(Years 1 through 5) or until the end of the Year when cumulative Revenues have
reached $100 million; whichever occurs sooner; then -

- four percent (4%) for the next five Years (Years 6 through 10) or until the
end of the Year when cumulative Revenue have reached $200 million, whichever
occurs sooner; then -

- three percent (3%) thereafter until the earlier of (a) the expiration of
twenty (20) years from the Effective Date of this Agreement and (b) the
expiration date of the last to expire patent; provided, however, that Royalty
Rates shall be subject to the following "Most Favored Pricing" provision :
Should CMU issue a commercial license of the Licensed Technology to any other
party at a lower royalty rate than a Royalty Rate herein specified (without
regard to whether CMU holds any equity interest in Licensee or said other
party), Licensee's Royalty Rate shall be reduced to that lower rate as of the
date and for the length of time when the lower rate of the other license becomes
and remains in effect.

4.3 Deferred Royalties.

4.3.1 Deferred Royalties. Cash Payment of Calculated Royalties may initially be
deferred by Licensee until the Trigger Date.

4.3.2.1 Amortization Schedule. Following the Trigger Date, accumulated Deferred
Royalties shall be payable by Licensee to CMU in accordance with the following
amortization schedule ("Amortization Schedule"):

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                           October 12, 2002          50%
                           January 1, 2002           15%
                           May 1, 2002               15%
                           June 30, 2002             20%

The first payment shall not be made in U.S. Dollars, but rather shall be made by
Licensee by providing CMU with a number of shares of Sonic Foundry common stock
equal to the dollar amount that would otherwise be due on said date divided by
$1.185. The balance of the payments under the Amortization Schedule shall be
made in U.S. Dollars.

4.4 Normal Payment Terms for Royalties. Subsequent to the Trigger Date,
Royalties shall be payable quarterly on the sixtieth (60) day immediately
following the Quarter for which such Royalties were Calculated; such payments
shall be made promptly by Licensee, with no invoicing by CMU to be required.

4.5. No Right to Suspend Payments. Notwithstanding the pendency of any
infringement (or other) claim or action by or against Licensee, Licensee shall
have no right to terminate or suspend (or escrow) payment of any amounts
required to be paid to CMU pursuant to this Agreement.

5. Reserved.

6. Minimum Performance Requirements

6.1 Licensee shall use its best efforts to introduce Licensed Technology into
the commercial markets as soon as possible; thereafter, until the expiration of
this Agreement, Licensee shall keep Licensed Technology reasonably available to
the public and actively promoted in commerce.

6.2 Licensee must achieve Net Sales of at least $500,000 in Year 4, $1 million
in Year 5, $1.5 million in Year 6, $2 million in Year 7, $2.5 million per Year
thereafter during the remaining unexpired Term of the License or, alternatively,
make payments of Royalties under Section 4 as though those Net Sales
requirements had been achieved.

6.3 Licensee's failure to perform in accordance with Sections 6.1 or 6.2 herein
shall be grounds for CMU to terminate this Agreement pursuant to Section 12.2
herein.

7. General Payment Terms

7.1. Royalties shall be paid by Licensee to CMU as defined in Section 5 herein
until this Agreement expires or is terminated in accordance with this Agreement.
If this Agreement terminates before the end of a Fiscal Quarter, the payment for
that terminal fractional portion of a Fiscal Quarter shall be made within ninety
days of the date of termination of this Agreement.

7.2. All Royalties hereunder shall be paid in U.S. Dollars and shall be made by
wire transfer to CMU's account No. 197-9003 ABA043000261 CMU Ref. No.
1-1-96377-7760 at Mellon Bank's - Oakland office, or by Licensee's check sent in
accordance with Section 24 (Notices).

7.3. All Royalties payable hereunder which are overdue shall bear interest until
paid at a rate equal to the Prime Rate in effect at the date such royalties were
due, but in no event to exceed the maximum rate of interest permitted by
applicable law. This provision for interest shall not be construed as a waiver
of any rights CMU has as a result of Licensee's failure to make timely payment
of any amounts.

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8. Reports and Audits

8.1. Reporting Requirements. Licensee shall provide to CMU statements with
respect to royalties and other amounts payable under this Agreement within sixty
(60) days following the end of each of Licensee's Fiscal Quarter ("Reporting
Date"). Each report must be fully and accurately completed and signed and
certified as accurate by Licensee. Each statement shall provide information for
all information items listed below for that Fiscal Quarter and, cumulatively,
for the Year to date, until two years after the Trigger Date when items
hereafter marked with an asterisks (*) are no longer required to be reported if
payment of all Deferred Royalties has been duly completed :

- Net Sales
- Operating Profits *
- Calculated Royalties,
- Royalties payable and due,
- Deferred Royalties *;
- Royalty payment Trigger Date *
- Cumulative total Deferred Royalties since Effective Date *
- Deferred Royalty Amortization amount due *
- Sublicense royalties received and payable to CMU, by specific sublicensees.

8.2. Accurate Books. Licensee shall maintain accurate books and records such
that the Royalties due and payable hereunder can be easily ascertained. Such
books and records shall be maintained at Licensee's primary offices and shall be
available for inspection by CMU or its representatives during the normal
business day upon not less than ten (10) days prior written notice, provided
that CMU or its representatives agree to protect the confidentiality of the
information as to Licensee's customers.

8.3. Audits. CMU shall have the right to have Licensee's books and records
audited by a certified public accounting firm or representative of its
selection, and Licensee agrees to cooperate fully in any such audit, provided
that the auditors agree to protect the confidentiality of all information
obtained as result of the audit. Any such audit shall not be more frequent than
annually. In the event that such audit determines that the amount of Royalties
paid CMU was in error by more than five (5%) percent, Licensee shall pay the
costs of the audit.

9. Improvements and Collaborations

9.1. Discussion Only. The parties intend that there will be no collaboration. If
there is any collaboration in violation of this intent, all resulting property
shall be owned as set forth in this Section 9. Discussion of a problem during
collaboration between the parties to this License Agreement will not create any
rights to any ownership of patents, Patents, copyrights, trade secrets or any
other intellectual property rights.

9.2. Licensee Ownership. Licensee will own all of the right, title and interest
(including patents, copyrights, trade secrets and any other intellectual
property rights) in and to the results of the collaboration between the parties
that are created solely by Licensee employees or agents.

9.3. CMU Ownership. CMU will own all of the right, title and interest (including
patents, Patents, copyrights, trade secrets and any other intellectual property
rights) in and to the results of the collaboration between the parties that are
created solely by CMU employees or agents.

9.4. If a joint development effort related to the Licensed Technology or other
technology is undertaken, the project shall be evidenced by a writing executed
by Licensee and the Associate Provost of CMU and the rights of the parties in
any work product or Intellectual Property Rights arising from such efforts shall
be as

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set forth in such writing. In the absence of such writing, CMU shall own all
right, title and interest in and to any work product or Intellectual Property
Rights arising from such joint development efforts.

9.5. Bug Fixes. All reported Licensee-originated bug fixes to the Licensed
Technology shall become the property of CMU and may be incorporated in the Code
and licensed to others; Licensee may utilize such bug fixes pursuant to the
terms of this License Agreement.

9.6. No Separate License. Except as provided in this Section 9, nothing in this
Agreement shall be deemed to grant any license or rights in any other technology
in addition to the Licensed Technology.

10. Patents and Other Intellectual Property

10.1. CMU Property. Intellectual property rights to Licensed Technology such as
Patent(s), Copyrights, and trademark(s) which may be obtainable will remain the
property of CMU, but subject to the license granted in this License Agreement.
Licensee shall be the owner of all proprietary rights for itself in the
intellectual property represented by Derivatives, whether in the nature of
patents, trade secrets, copyrights, or other rights, provided that any and all
uses of Derivatives is subject to the existence, term and other provisions of
this Agreement. Licensee shall be entitled to apply for patents, trademarks, and
copyrights with respect to Derivatives in its own name.

10.2. Patenting Expenses.

CMU will determine the patenting expenses paid for by CMU for each six month
period starting October 12, 2001 until the end of the Term of the Agreement
("Calculation Period"); total Patenting Expenses for such a Calculation Period
will hereafter be referred to as "Expense Increment"; CMU will also determine
the number of licenses for all or essentially all of the Licensed Technology
which were in effect at any time during each Calculation Period ("Number of
Licensees");

Licensee shall reimburse CMU for the dollar amount calculated by (i) dividing
each Expense Increment by (ii) the Number of Licensees for that Calculation
Period; provided, however, that if Licensee should be the sole licensee of all
or most of the Licensed Technology during a Calculation Period, Licensee shall
reimburse CMU for half the Expense Increment. Payment by Licensee to CMU of such
reimbursements shall be due within thirty (30) days after the invoicing of such
amounts by CMU to Licensee.

10.3. International Patent Coverage.

10.3.1. Basic Coverage. CMU intends to prosecute international patent coverage
for some or all of the Patents in certain major industrial countries under the
expense-sharing arrangements provided for in Section 10.2 herein ("Basic
Coverage"). CMU reserves the right to increase or decrease the extent of such
coverage at its own discretion throughout the Term of the License. For
applications for Patents filed after the Effective Date, Licensee must notify
CMU within thirty (30) days after receipt of notice from CMU whether Licensee
agrees to reimburse, CMU for payment for Patenting Expenses. If Licensee does
not so notify CMU of such agreement to reimbursement of CMU, Licensee shall not
have any rights under this Agreement concerning the technology covered by said
application in the country covered by said application.

10.3.2. Additional Coverage. If Licensee should, at any stage of the patenting
process during the Term of the LICENSE, desire to have CMU obtain more than such
Basic Coverage ("Additional Coverage"), CMU will pursue such Additional Coverage
at Licensee's expense to the extent that such protection is reasonably
obtainable. CMU will account for such additional Patenting Expenses (by country)
and will invoice Licensee after the end of each Quarter for such additional
Expenses ("Additional Expenses"); such invoices will be payable by Licensee to
CMU within thirty (30) days. Provided, however, that Licensee may later deduct
fifty percent (50%) of such Additional Expenses from the payment of Royalties to
CMU to the extent that such

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Royalties and/or sublicense Royalties which were based on Revenue due to conduct
in a country which was included in such Additional Coverage.

11.  Markings, Trademarks and Trade Names

11.1.  Licensee shall have included in all sales and  marketing literature
relating to Licensed Products a statement to the effect that "this product or
portions thereof is produced under license from Carnegie Mellon University" and
"U.S. Patent Number X,XXX,XXX."

11.2. Licensee shall have marked the appropriate portions of all Licensed
Products with the applicable United States of America and foreign Patent numbers
in accordance with the applicable laws of the countries in which the materials
are intended to be used. Licensee shall neither register nor use any CMU
trademarks or trade names and shall require its sub-licensees not to do so.

11.3. Licensee acknowledges that it does not have any rights or any title
whatsoever in or to CMU's technology, trade name or in or to any of CMU's
trademarks, except as provided under this Agreement. Any reference by Licensee
to CMU beyond the above may only be done with express written permission of
CMU's Director of Technology Transfer.

12.  Termination

12.1. If Licensee shall cease to carry on its business, this Agreement shall
terminate upon written notice by CMU.

12.2. In the event that either party to this Agreement defaults in the
performance of any of its obligations hereunder and fails to cure such default
within thirty (30) days after written notice of such default from the other
party or (in the event that the default is of such nature that it cannot be
cured within said thirty (30) days) the defaulting party is not diligently
pursuing efforts to cure such default, the other party shall have the right by
written notice to the defaulting party within sixty (60) days after the
expiration of such thirty (30) day period to terminate this Agreement.

12.3. The termination of this Agreement pursuant to this Section 12 (or pursuant
to Section 3 of this Agreement) shall not terminate (i) the obligation of
Licensee to promptly pay CMU Royalties which were due or earned by CMU prior to
the effective date of the termination, and other amounts, which are accrued or
which are otherwise to be paid by Licensee under the terms of this Agreement or
(ii) the obligations of Licensee specified under Sections 7, 8, 10, 12, 13, 14,
15, 16, 17, 18, 22, and 23 hereunder.

12.4. Provided that if a sublicense was pre-approved by CMU and contains royalty
payments at least equal to those set forth in Exception 2, in Subsection 2.4.2,
upon termination of this Agreement by CMU Subsections 12.1 or 12.2 hereof, CMU
will accept assignment of such sublicense(s) which is then in effect if the
sub-licensee is not then in default. However, acceptance of such assignment
shall not release Licensee from any responsibility under this Agreement.

13.  Taxes

Licensee shall pay all sales taxes which may be assessed or levied on, or on
account of the Licensed Technology Disposed of hereunder and all taxes (other
than taxes imposed by the United States of America or the Commonwealth of
Pennsylvania or jurisdictions within such Commonwealth) levied on or on account
of the amounts payable to, or for the account of, CMU under this Agreement.

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14.  Warranties

ANY INFORMATION, MATERIALS OR SERVICES FURNISHED BY CMU PURSUANT TO THIS
AGREEMENT ARE ON AN "AS IS" BASIS. ANY INFORMATION, MATERIALS OR SERVICES
FURNISHED BY CMU PURSUANT TO THIS AGREEMENT ARE ON AN "AS IS" BASIS. CMU MAKES
NO WARRANTIES OF ANY KIND, EITHER EXPRESSED OR IMPLIED, AS TO ANY MATTER
INCLUDING, BUT NOT LIMITED TO, WARRANTY OF FITNESS FOR PURPOSE, OR
MERCHANTABILITY, EXCLUSIVITY OR RESULTS OBTAINED FROM USE OF ANY INTELLECTUAL
PROPERTY DEVELOPED UNDER THIS AGREEMENT, NOR SHALL EITHER PARTY HERETO BE LIABLE
TO THE OTHER FOR INDIRECT, SPECIAL, OR CONSEQUENTIAL DAMAGES SUCH AS LOSS OF
PROFITS OR INABILITY TO USE SAID INTELLECTUAL PROPERTY OR ANY APPLICATIONS AND
DERIVATIONS THEREOF. CMU DOES NOT MAKE ANY WARRANTY OF ANY KIND WITH RESPECT TO
FREEDOM FROM PATENT, TRADEMARK, OR COPYRIGHT INFRINGEMENT, OR THEFT OF TRADE
SECRETS AND DOES NOT ASSUME ANY LIABILITY HEREUNDER FOR ANY INFRINGEMENT OF ANY
PATENT, TRADEMARK, OR COPYRIGHT ARISING FROM THE USE OF THE INFORMATION,
TECHNOLOGY, OR RIGHTS GRANTED OR PROVIDED TO IT HEREUNDER. LICENSEE AGREES THAT
IT WILL NOT MAKE ANY WARRANTY ON BEHALF OF CMU, EXPRESSED OR IMPLIED, TO ANY
PERSON CONCERNING THE APPLICATION OF OR THE RESULTS TO BE OBTAINED WITH THE
TECHNOLOGY UNDER THIS AGREEMENT.

15.  Costs

All costs and expenses incurred by Licensee in carrying out its obligations
under this Agreement shall be paid by Licensee, and Licensee shall not be
entitled to reimbursement from royalties hereunder or otherwise therefor from
CMU. Licensee shall possess or obtain at its own expense all necessary licenses
and permits and shall comply with all laws, ordinances, rules or regulations
affecting the importation into and/or resale or transfer of Licensed Product.

16.  Confidentiality and Trade Secrets

16.1. "Confidential Information" shall mean any information relating to the
Licensed Technology, the terms of this Agreement (as from time to time amended),
patent applications, copyright applications, trade secrets and know-how and
other information covered by this Agreement or information disclosed to Licensee
in the matter set forth hereinafter. All such information shall be Confidential
Information to the technology disclosed, including information disclosed to
Licensee prior to the date of this Agreement, unless such information (1) was
already in Licensee's possession prior to the disclosure thereof by CMU as
provided in sub-Section 16.2 hereof, (2) has been published or is published
hereafter, unless such publication is a breach of this Agreement, (3) is
received by Licensee from a third party not under an obligation of
confidentiality with respect thereto, or (4) is independently developed by
Licensee.

16.2. Prior Knowledge. In the event that such information shall be established
to have been known to Licensee prior to the disclosure thereof by CMU by
reference to any publication thereof by Licensee or by reference to any internal
writing or other business record maintained by any of the entities that comprise
Licensee in the ordinary course of business, such information shall not be
deemed to be Confidential Information to that particular entity for purposes of
this Agreement following notification to CMU of such fact.

16.3. Marking as Confidential. With respect to any information not related to
the Licensed Technology which is thought by CMU to be Confidential Information
subject to this Agreement, CMU shall mark such information as "Confidential"
prior to disclosing it to Licensee.

                                      -10-

<PAGE>

16.4. Notification. With respect to any oral communication not related to the
Licensed Technology which is deemed by CMU to be Confidential Information
subject to this Agreement, CMU shall notify Licensee of such fact and within
thirty (30) days thereafter CMU shall send a memorandum to Licensee outlining
the information deemed to be Confidential Information.

16.5. Term of Confidentiality. Licensee shall maintain in confidence and shall
not disclose to any person not a party hereto, nor shall Licensee use or exploit
in any way without CMU's written agreement, any Confidential Information until
three (3) years after the later of the date of the termination of this Agreement
unless such information ceases to be Confidential Information prior to the end
of such period through no fault of Licensee or CMU and Licensee enter into an
agreement authorizing same.

16.6. Reasonable Precautions. Licensee shall exercise all reasonable precautions
to prevent the disclosure of Confidential Information by its employees or
representatives, and in any event shall maintain with respect to such
Confidential Information a standard of care which is no less than that standard
which Licensee maintains to prevent the disclosure of its own Confidential
Information.

16.7. Termination.  Upon termination of this Agreement, Licensee agrees to
return at once to CMU, without copying, all originals and copies of all
materials (other than this Agreement) containing any Confidential Agreement.

16.8  CMU shall keep Confidential technical or financial information and/or
business plans of Licensee, if the document disclosing such to CMU is marked
"Confidential," for a period of three (3) years from the date of said disclosure
unless such information (1) was already in CMU's possession prior to said
disclosure, (2) has been published or is published hereafter, unless said
publication is a breach of this Agreement, (3) is received by CMU from a third
party not under an obligation of confidentiality with respect thereto, (4) is
independently developed by CMU, or (5) ceases to be Confidential prior to the
end of such three year period or Licensee and CMU agree that CMU need no longer
treat such as confidential.

17.   Indemnification

Licensee hereby agrees to defend, indemnify and hold harmless CMU, its trustees,
officers, employees, attorneys and agents from all claims or demands made
against them (and any related losses, expenses or costs) arising out of or
relating to Licensee's and/or its sub-licensees' use of, Disposition of, or
conduct regarding the Licensed Technology and/or Licensed Product, or presence
on the premises of CMU, including but not limited to, any claims of product
liability, personal injury (including, but not limited to, death), damage to
property or violation of any laws or regulations. This indemnification includes,
but is not limited to, indemnification by Licensee and any sub-licensees of acts
of negligence by CMU or CMU's trustees, officers, employees, attorneys, or
agents against employees of Licensee while on CMU's premises.

18.   Insurance

Licensee shall obtain and maintain appropriate coverage of general liability,
product liability, and public liability insurance in the amount of no less than
two million dollars (US $2,000,000).

19.   Breach

No acquiescence in any breach of this Agreement by either party shall operate to
excuse any subsequent or prior breach.

                                      -11-

<PAGE>

20.   Prior Agreement

Except for any Confidential Disclosure Agreement executed by the parties, this
Agreement supersedes all previous agreements relating to the subject matter
hereof, whether oral or in a writing, and constitutes the entire agreement of
the parties hereto and shall not be amended or altered in any respect except in
a writing executed by the parties.

21.   Interpretation

This Agreement shall be governed by, and construed and enforced in accordance
with, the laws of the Commonwealth of Pennsylvania, United States of America,
without regard to conflict of law principles.

22.   Dispute Resolution

22.1. Arbitration. Any controversy or dispute arising under this Agreement shall
be referred to and finally settled by arbitration in the City of Pittsburgh,
Pennsylvania, under the auspices of, and conducted in accordance with, the rules
of the American Arbitration Association. All arbitration proceedings shall be
before a board of three (3) arbitrators, for each of which each party shall
select one (1) arbitrator and the selected arbitrators shall select the third
arbitrator. The costs of the third arbitrator shall be divided equally between
the parties, and each party shall pay the costs of the arbitrator selected by
it. Any award of the arbitrators shall be final and conclusive on the parties to
this Agreement, and judgment upon such award may be entered in any court having
jurisdiction thereof.

22.2. Injunctive Relief. Either party may seek injunctive relief from a court
for violation by the other party of Sections 11, 13, 14, 15, 16, 17, 18, and 22
herein, for enforcement of any arbitration award or for enforcement of any
non-arbitrable matter. The prevailing party shall be entitled to recover from
the other all costs, including attorney's fees, related to the action for
injunctive relief.

22.3. Court Action.  Licensee hereby irrevocably and unconditionally --

(i) agrees that any action, suit or proceeding contemplated by Sections 22.2 and
22.2 hereof (collectively, "Related Litigation") may be brought in any state or
federal court of competent jurisdiction sitting in Allegheny County,
Pennsylvania, submits to the jurisdiction of such courts, and to the fullest
extent permitted by law agrees that it will not bring any Related Litigation in
any other forum (but nothing herein shall affect the right of CMU to bring any
action, suit or proceeding in any other forum);

(ii) waives any objection which it may have at any time to the laying of venue
of any Related Litigation brought in any such court, waives any claim that any
such Related Litigation has been brought in an inconvenient forum, and waives
any right to object, with respect to any Related Litigation brought in any such
court, that such court does not have jurisdiction over LICENSEE; and

(iii) consents and agrees to service of any summons, complaint or other legal
process in any Related Litigation by registered or certified mail, postage
prepaid, to LICENSEE at the address for notices described in Section 24 hereof,
and consents and agrees that such service shall constitute in every respect
valid and effective service (but nothing herein shall affect the validity or
effectiveness of process served in any other manner permitted by law).

23.   Infringement

23.1. Licensee shall have the right during the term of this Agreement to
commence an action for infringement of the Patents, Copyrights, and/or
Confidential Information against any third party for any infringement, only if
(a) Licensee has provided CMU ninety (90) days' prior written notice of such
infringement and of Licensee's desire to file such action and (b) CMU has not

                                      -12-

<PAGE>

initiated an action against the alleged infringer before the expiration of said
ninety (90) day period after receipt of Licensee's notice. CMU shall have the
right at its own expense to appear in such action by counsel of its own
selection. If required by the jurisdictional laws of the forum that any such
action be prosecuted in the name of the owner of the Patent, Copyright, and/or
Confidential Information, CMU shall voluntarily appear at Licensee's expense;
provided that if such appearance subjects CMU to any unrelated action or claim
of a third party or Licensee in such jurisdiction, then CMU shall have the right
to decline such appearance. Any settlement shall require the consent of CMU and,
absent agreement between CMU and Licensee to the contrary, any settlement amount
or recovery for damages shall be applied as follows: (i) first, to reimburse the
parties for their expenses in connection with the litigation; and (ii) second,
CMU shall receive four percent (4%) of any monies remaining.

23.2. CMU shall have the right in its absolute discretion during the term of
this Agreement to commence an action for infringement of the Patents,
Copyrights, and/or Confidential Information against any third party for any
infringement occurring anywhere in the world.

24. Notices

Any notice under any of the provisions of this Agreement shall be deemed given
when deposited in the mail, postage prepaid, certified first class mail return
receipt requested and addressed to the applicable party at the address stated on
the signature page hereof, or such other address as such party shall specify for
itself by like notice to other party. Each party shall transmit to the other a
facsimile copy of each such notice promptly after such deposit in the mail.

25. Assignment

Licensee shall neither assign nor transfer this Agreement or any interest herein
without the prior written consent of CMU. If Licensee wishes to dispose of the
business of which this Agreement forms part or if all or substantially all of
the assets of Licensee shall be acquired by another corporation, such consent by
CMU to assignment to such acquiring corporation shall not be unreasonably
withheld or delayed.

26. Headings

The Section headings contained in this Agreement are set forth for the
convenience of the parties only, do not form a part of this Agreement and are
not tobe considered a part hereof for the purpose of construction or
interpretation hereof, or otherwise.

Balance of page intentionally left blank.

                                      -13-

<PAGE>

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed in duplicate counterparts, each of which shall be deemed to constitute
an original, effective as of the date first above written.

The undersigned  verify subject to the penalties of 18 Pa. C.S.(S) 4904 relating
to unsworn  falsification to authorities that they have the authority to bind to
this Agreement the party on behalf of which they are executing below.

Carnegie Mellon University                    Sonic Foundry Systems Group, Inc.

By:    /s/                                         /s/
      -----------------------------           ---------------------------------
      Susan Burkett
      Associate Provost                       Chief Executive Officer

Date:  1/16/02                                Date: 1/15/02
      -----------------------------           ---------------------------------

                                      -14-

<PAGE>

                                  Attachment A

                       Description of Licensed Technology

"Licensed Technology" is defined in Section 1.7 of this Agreement, and includes
both Initial Technology and Additional Technology.

A.  "Initial  Technology" is defined in Section 1.7.21 of this Agreement; it
includes but is not  necessarily  limited to the following as of the Effective
Date of the Agreement:

1. Informedia/1/ processing and tools for content creation, indexing and
abstraction, both automated and manually assisted. This shall be deemed to
include, but not be limited, to the following:

-  Segmentor
-  Database cataloging
-  Automated database testing
-  Sphinx-II, Sphinx-III and the CMPSL (CMU Portable Speech library)
-  Speaker differentiation/identification
-  Image understanding analysis library components used for:

     * scene analysis, scene segmentation, frame histogramming,
     * poster-frame selection, image matching, region and object extraction,
     * text and face detection and matching (neural-net based algorithms),
     * video text OCR, video skim creation and image characterization.

-  Natural language and statistical processing algorithms and code as
   applied to video segmentation, titling, abstracts, latent semantic
   indexing, and topic detection and categorization.

-  Integrated  processing and statistical correlation of face/name/place/event
   as applied to "Name-It" and "Spot-it" functionality

-  Automated processing algorithms, code, scripts and procedures

  2. Informedia data structures, data organization and data distribution server
architecture specification and code, including flat file and RDBMS
implementations.

  3. Informedia client and display, Windows and HTML/Java versions for full
video and "slide show" presentation.

  4. Search and retrieval specification and code, including the Pursuit engine;
derivatives developed in Informedia, subject to limiting prevenient agreements.

  5. Informedia Netbill interface specification and code related to video data
delivery, subject to limiting prevenient agreements.

B.  "Additional Technology" is defined in Section 1.7.32 of this Agreement.

Note: 1. Most of the expected Additional Technology relates to improvement of
the quality of performance (e.g., precision, accuracy, speed) or enhancement and
perfection of the techniques presently applied in many areas; primarily, those
areas where the initial implementation or methods are in error, incomplete, or
inadequate. The Informedia Project does not anticipate entirely new research
problems providing new functionality to be pursued during the Additional Period.

                                      -15-

<PAGE>

2. Additional Technology shall not include new functionality and/or inventions
which are not part of the Informedia program plans specified under Section
1.7.13(I) and/or which are not in domains thus specified; examples of such new
functionality are, such as multilingual Informedia or summarization across
multiple stories.

/1/ "Informedia or Informedia Project" means: Integrated Speech, Image, and
Language Understanding for Creation and Exploration of Digital Video Libraries,
conducted under Grant No. IRI-9411299 from September 1994 to September 1998 and
related, contributing technology from other projects developed prior to October
1, 1998, which is necessary to implement the technology developed under Grant
No. IRI-9411299 and underway.

                                      -16-<PAGE>

                                                                  EXHIBIT 10.1

                          LAFARGE NORTH AMERICA INC.
                            2002 STOCK OPTION PLAN

SECTION I.     PURPOSE

        The purpose of the Lafarge North America Inc. 2002 Stock Option Plan
(the "Plan") is to encourage and enable non-employee directors of Lafarge
North America Inc. (the "Company") and key employees of the Company and its
subsidiary corporations ("Subsidiary" or "subsidiaries") as defined under
Section 424(f) of the Internal Revenue Code of 1986, as amended (the "Code"),
upon whose judgment, initiative and efforts the Company largely depends for
the successful conduct of its business, to remain with and devote their best
efforts to the business of the Company, thereby advancing the interests of the
Company and its stockholders. Accordingly, the Company may grant to certain
employees the option to purchase shares of the Common Stock of the Company,
par value $1.00 per share ("Stock"), and may award bonuses in the form of
Stock subject to the restrictions set forth in Section IX ("Restricted
Stock"), as hereinafter set forth. Options to purchase shares of Stock shall
be granted automatically, as hereinafter set forth, to members of the Board of
Directors of the Company who are not officers or employees of the Company or
any Subsidiary ("Nonemployee Directors"). Options granted to employees of the
Company and its Subsidiaries and options granted to Nonemployee Directors are
referred to herein as "Employee Options" and "Director Options", respectively,
and collectively as "Options". Options granted under the Plan shall be
nonqualified stock options which shall not be treated as incentive stock
options under Section 422 of the Code.

SECTION II.    ADMINISTRATION OF THE PLAN

        The Plan shall be administered by a committee (the "Committee")
appointed by the Board of Directors of the Company (the "Board") and
consisting of two or more directors of the Company; provided, however, that
(i) the Committee shall be constituted in a manner that satisfies the
requirements of Section 162(m) of the Code and the rules and regulations
thereunder, which Committee shall administer the Plan with respect to
"performance-based compensation" for all employees who are reasonably expected
to be "covered employees" as those terms are defined in Section 162(m) of the
Code and the rules and regulations thereunder, and (ii) the Committee shall be
constituted in a manner that satisfies the requirements of Rule 16b-3 under
Section 16(b) of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), which Committee shall administer the Plan with respect to all
persons who are subject to Section 16 of the Exchange Act in a manner that
satisfies the requirements of Rule 16b-3 under Section 16(b) of the Exchange
Act.

        The Committee shall have sole authority to determine the employees who
are to be granted Employee Options and stock appreciation rights or awarded
Restricted Stock from among those eligible hereunder and to establish the
number of shares of Stock to be optioned to each, the number of stock
appreciation rights to be granted to each and the number of shares to be
awarded to each in the form of Restricted Stock, after taking into
consideration the position held, the duties performed, the compensation
received, the services expected to be rendered by such employee and other
relevant factors. The Committee is authorized to interpret the Plan, and may
from time to time adopt such rules and regulations, not inconsistent with the
provisions of the Plan, as it may deem advisable to carry out the Plan;
provided, however, that the Committee shall have no authority, discretion or
power to select the persons who will receive Director Options, to set the
number of shares to be covered by any Director Option, to set the exercise
price or the period within which Director Options may be exercised or to alter
any other terms or conditions specified herein, except in connection with the
administration of the Plan subject to the express provisions hereof. A
majority (but not fewer than two) of the members of the Committee shall
constitute a quorum and the acts of a majority of the members present at any
meeting at which a quorum is present, or acts approved in writing by a
majority (but not fewer than two) of the members of the Committee, shall be
deemed the acts of the Committee. All decisions made by the Committee in
selecting the employees to whom Employee Options and stock appreciation rights
shall be granted or Restricted Stock shall be awarded, in establishing the
number of shares that may be issued under each Employee Option or awarded as
Restricted Stock to employees and the terms of grants and awards under the
Plan and in construing the provisions of the Plan shall be final. No member of
the Committee shall be liable for any action taken, failure to act,
determination or interpretation made in good faith with respect to the Plan or
any Option and stock appreciation right granted or Restricted Stock awarded
under the Plan.

<PAGE>

SECTION III.   SHARES SUBJECT TO THE PLAN

        The aggregate number of shares of Stock issued under Options or
awarded in the form of Restricted Stock under this Plan shall not exceed
6,500,000 shares. Such shares of Stock may consist of authorized but unissued
shares of Stock or previously issued shares of Stock reacquired by the
Company. Any of such shares of Stock that remain unissued and that are not
subject to outstanding Options and have not been awarded in the form of
Restricted Stock at the termination of the Plan shall cease to be subject to
the Plan. Should any Option hereunder expire or terminate prior to its
exercise in full, or any Stock previously awarded as Restricted Stock be
forfeited, the shares of Stock subject to such Option at the time of its
expiration or termination and the shares of Restricted Stock so forfeited will
again be available for grant or award under the Plan. The aggregate number of
shares of Stock that may be issued under the Plan shall be subject to
adjustment as provided in Section XI hereof. Exercise of an Option or a
related stock appreciation right in any manner shall result in a decrease in
the number of shares of Stock that may thereafter be available for purposes of
the Plan by the number of shares of Stock as to which the Option or right is
exercised (whether or not, in the case of a stock appreciation right, such
number of shares is actually issued).

SECTION IV.    ELIGIBILITY

        The Committee shall determine and designate, at any time or from time
to time, the key employees of the Company and the Subsidiaries to whom
Employee Options are to be granted or Restricted Stock is to be awarded, but
subject to the terms and conditions set forth below:

               (a)    The Committee may authorize the grant of Employee
        Options and the award of Restricted Stock only to individuals who are
        key employees (including officers and directors who are also key
        employees) of the Company or a Subsidiary at the time the Option is
        granted or the Restricted Stock is awarded. Options may be granted or
        Restricted Stock awarded to the same employee on more than one
        occasion.

               (b)    The aggregate number of shares of Stock that may be
        subject to Employee Options and stock appreciation rights granted or
        Restricted Stock awarded under the Plan to any one employee during any
        calendar year shall not exceed 100,000.

SECTION V.     OPTION PRICE

        The Option price per share of Stock underlying each Employee Option
shall be fixed by the Committee at the time the Option is granted, but shall
not be less than 100% of the fair market value of the Stock at the time of the
granting of the Option. The Option price per share of Stock underlying each
Director Option shall be 100% of the fair market value of the Stock at the
time of the granting of the Option. For purposes of the Plan, the fair market
value of Stock on any particular date shall be the mean of the high and low
sales prices of publicly traded shares of Stock on the date in question as
reported on the Composite Transactions reporting system or, if the Stock is
listed on a U.S. national securities exchange, the last sales price reported
on such exchange on that date, provided, that if there are no sales of Stock
on the date in question, then such determination shall be made on the basis of
sales of Stock on the last preceding date for which such sales are reported.

SECTION VI.    OPTION TERM

        The expiration date of an Employee Option shall be determined by the
Committee at the time of grant, but shall in no event be later than ten years
from the date of grant. The expiration date of each Director Option shall be
the date that is ten years from the date of grant.

SECTION VII.  OPTION AGREEMENTS

        Each Option shall be evidenced by an option agreement ("Option
Agreement") and shall contain such terms and conditions not inconsistent with
the provisions of the Plan as may be approved by the

                                      2
<PAGE>

Committee. The terms and conditions of the respective Option Agreements
evidencing Employee Options need not be identical and may be amended by the
Committee from time to time, subject to the provisions of the Plan; provided,
however, that in no event shall an Option Agreement be amended after the date
of grant of the Option in a manner that will reduce the Option price. The
terms and conditions of the respective Option Agreements evidencing Director
Options shall be identical, to the extent practicable, and may be amended by
the Committee as necessary to ensure compliance with the provisions of the
Plan. Payment of the purchase price of any Option exercised shall be made to
the Company either (i) in cash (including check, bank draft or money order) or
(ii) by delivering shares of Stock already owned by the optionee (or by his or
her permitted transferees as contemplated by Section VIII(d) or X(e) hereof)
and which have been owned, free of any restrictions, for at least six months,
duly endorsed for transfer or (iii) a combination of such Stock and cash. The
fair market value of any Stock so delivered shall be determined on the same
basis as provided in Section V hereof. An Option Agreement evidencing an
Employee Option may provide as contemplated by Section VIII(c) hereof.

SECTION VIII.  EXERCISE OF EMPLOYEE OPTIONS

               (a)    Each Employee Option granted under the Plan shall be
        exercisable during such period commencing on or after the expiration
        of one year from the date of the grant of such Option as the Committee
        shall determine; provided, however, that the otherwise unexpired
        portion of any Employee Option shall expire and become null and void
        no later than upon the first to occur of (i) the expiration of ten
        years from the date such Option was granted, (ii) the expiration of
        three months from the date of the termination of the optionee's
        employment with the Company or any parent or subsidiary corporation of
        the Company (an "Affiliate") within the meaning of Section 424(e) and
        (f) of the Code for any reason other than death, disability or
        retirement under the normal or early retirement provisions of a
        pension or retirement plan maintained by the Company or an Affiliate,
        or (iii) the expiration of four years from the date of the termination
        of the optionee's employment with the Company or an Affiliate by
        reason of death, disability or retirement under the normal or early
        retirement provisions of a pension or retirement plan maintained by
        the Company or an Affiliate. Following termination of an optionee's
        employment, his or her Employee Options shall be exercisable during
        the applicable period described in clause (ii) or (iii) of the
        preceding sentence to the extent such Options were exercisable on the
        date of termination, except that if an optionee has completed at least
        ten years of continuous service as an employee of the Company and its
        Affiliates at the time of termination of the optionee's employment
        with the Company or any Affiliate by reason of death, disability or
        retirement as described in clause (iii), all Employee Options held by
        such optionee (or his or her permitted transferees as contemplated by
        Section VIII(d) hereof) shall continue to vest during the four-year
        period described in clause (iii), in accordance with their terms,
        unless thereafter terminated in accordance with any other provision of
        the Plan or the applicable Option Agreement; provided, however, that
        if the optionee engages in any Competitive Activity during such
        four-year period, such Employee Options shall cease vesting on the
        date immediately preceding the commencement of the Competitive
        Activity. Transfer of employment without interruption of service
        between or among the Company and its Affiliates shall not be
        considered to be a termination of employment for purposes of the Plan.
        The foregoing provisions of this subsection (a) and any other
        provision of the Plan to the contrary notwithstanding, the otherwise
        unexpired portion of any Employee Option granted hereunder shall
        expire and become null and void immediately upon an optionee's
        termination of employment with the Company or an Affiliate by reason
        of such optionee's fraud, dishonesty or performance of other acts
        detrimental to the Company or an Affiliate. Nothing in this paragraph
        or in any other provision of the Plan shall cause the period during
        which an Employee Option may be exercised to be extended beyond the
        period specified in clause (i) or in clause (ii) or (iii), as
        applicable, of the first sentence of this paragraph.

               For purposes of this Section VIII(a), "Competitive Activity"
        means (i) engaging directly or indirectly, alone or as a shareholder,
        partner, director, officer, member, manager, employee of or consultant
        to any other business organization, in any business activities in
        North America that relate to the manufacture, sale, marketing or
        distribution of cement, ready-mixed concrete, other concrete products,
        asphalt, construction materials, aggregates, gypsum wallboard or
        related

                                      3
<PAGE>

        products or any other products that may be manufactured, sold,
        marketed or distributed by the Company or its Affiliates at the time
        of termination of the optionee's employment (the "Designated
        Industry"); (ii) directly or indirectly soliciting or encouraging any
        customer of the Company or its Affiliates to divert its business to
        any competitor of the Company; (iii) directly or indirectly soliciting
        or encouraging any director, officer, employee of or consultant to the
        Company or its Affiliates to end his or her relationship with the
        Company or an Affiliate or to commence any such relationship with any
        competitor of the Company; or (iv) divulging to any person or entity
        other than the Company and its Affiliates any proprietary or
        confidential information of the Company and its Affiliates without the
        prior written permission of the Company. "Competitive Activity" shall
        not include the ownership of less than five percent of the common
        stock of a publicly traded corporation conducting business activities
        in the Designated Industry.

               (b)    Each Employee Option granted hereunder shall be
        exercisable in full or in such annual installments as may be
        determined by the Committee at the time of the grant; provided,
        however, that the Committee in its discretion may subsequently
        accelerate the exercise date of an Employee Option. The right to
        purchase shares of Stock shall be cumulative so that when the right to
        purchase any shares of Stock has accrued, such shares or any part
        thereof may be purchased at any time thereafter until the expiration
        or termination of the Employee Option.

               (c)    If the Committee grants stock appreciation rights in
        connection with an Employee Option, such rights shall be subject to
        the same terms and conditions as the related Option and shall be
        exercisable only to the extent the Option is exercisable. Stock
        appreciation rights shall be granted only in connection with an
        Employee Option. A right shall entitle the optionee to surrender to
        the Committee the related unexercised Option, or any portion thereof,
        and to receive from the Company in exchange therefor cash, shares of
        Stock, or a combination of cash and Stock, having an aggregate value
        equal to (i) the excess of the fair market value of one share of Stock
        over the Option price, times (ii) the number of shares of Stock called
        for by the Option, or portion thereof, which is surrendered. The
        number of shares of Stock which may be received pursuant to the
        exercise of a right may not exceed the number of shares of Stock
        called for by the Option, or portion thereof, which is surrendered. No
        fractional shares of Stock will be issued. The Committee shall have
        the right to determine whether the Company's obligation shall be paid
        in cash, shares of Stock, or a combination of cash and Stock. The
        Committee may establish a maximum appreciation value which would be
        awardable under any granted right or rights.

               (d)    Except as provided in this subsection (d), no Employee
        Option granted under the Plan shall be transferable otherwise than by
        will or the laws of descent and distribution and shall be exercisable,
        during the lifetime of the optionee, only by the optionee. Employee
        Options granted hereunder may be transferred by the optionee thereof
        to one or more permitted transferees; provided that (i) there may be
        no consideration for such transfer (other than interests in a family
        trust, partnership or limited liability company as contemplated in
        clauses (ii) and (iii) of the definition of "permitted transferees"
        below), (ii) the optionee (or such optionee's estate or
        representative) shall remain obligated to satisfy all income or other
        tax withholding obligations associated with the exercise of the
        Options, (iii) the optionee shall notify the Company in writing that
        such transfer has occurred, the identity and address of the permitted
        transferee and the relationship of the permitted transferee and (iv)
        such transfer shall be effected pursuant to transfer documents in a
        form approved from time to time by the Committee. To the extent any
        Employee Options transferred pursuant to this Section VIII(d) are not
        fully exercisable as of the date of transfer thereof, the optionee
        shall specify in the transfer document whether and to what extent the
        transferred Options (if less than all of the Options subject to the
        applicable Option Agreement) are exercisable, subject to the
        limitations on exercisability contained in the applicable Option
        Agreement. Furthermore, to the extent the optionee transfers Employee
        Options that are not exercisable as of the date of transfer and such
        Options are less than all of the Options subject to the applicable
        Option Agreement, the optionee shall specify in the transfer
        documents, subject to the limitations on exercisability contained in
        the applicable Option Agreement, when the transferred Options become
        exercisable under the applicable Option Agreement subsequent to

                                      4
<PAGE>

        such transfer. A permitted transferee may not further assign or
        transfer the transferred Employee Options otherwise than by will or
        the laws of descent and distribution. Following any permitted
        transfer, any such Options shall continue to be subject to the same
        terms and conditions as were applicable immediately prior to transfer.
        The events of termination of relationship in Section VIII(a) hereof
        shall continue to be applied with respect to the optionee, following
        which the Employee Options shall be exercisable by the transferee only
        to the extent, and for the periods specified in Section VIII(a). The
        term "permitted transferees" shall mean one or more of the following:
        (i) any member of the optionee's immediate family; (ii) a trust
        established primarily for the benefit of one or more members of such
        immediate family; (iii) a partnership or limited liability company in
        which such immediate family members are the only partners or members;
        or (iv) any other entity that is approved by the Committee in its
        discretion and that is established by the optionee or the optionee's
        immediate family members for estate planning purposes. The term
        "immediate family" is defined for such purpose as spouses, parents,
        children, stepchildren and grandchildren, including relationships
        arising from adoption. The provisions of this subsection (d) shall
        also apply to any stock appreciation rights granted in connection with
        Employee Options.

               (e)    Nothing in this Section shall operate to extend the
        period of exercise of an Employee Option beyond the expiration date
        specified in the Option Agreement.

SECTION IX.  RESTRICTED STOCK

        The Committee may from time to time, in its sole discretion, award
bonuses in the form of Restricted Stock to persons eligible to receive awards
of Restricted Stock under Section IV. All Restricted Stock awarded under the
Plan shall be subject to such restrictions, terms and conditions, if any, as
may be determined by the Committee, except that all awards of Restricted Stock
under the Plan that are performance based must be restricted for at least one
year from the date of award and all awards of Restricted Stock under the Plan
that are not performance based must be restricted for at least three years
from the date of award. The Committee may in its sole discretion remove,
modify or accelerate the release of restrictions on any Restricted Stock in
the event of death or disability of the recipient of such Restricted Stock.
Nonemployee Directors shall not be eligible to receive awards of Restricted
Stock under this Plan.

        Any certificate or certificates representing shares of Restricted
Stock shall bear a stamped or printed notice on the face thereof to the effect
that such shares have been awarded pursuant to the terms of the Plan and may
not be sold, pledged, transferred, assigned or otherwise encumbered in any
manner except as set forth in the terms of such award. If the Committee so
determines, the certificates representing Restricted Stock shall be deposited
by the recipient with the Company or an escrow agent designated by the Company
until the restrictions thereon have lapsed or have been removed in accordance
with the provisions of this Section. Upon the lapse of the restrictions or
removal thereof by the Committee, new unrestricted certificates for the number
of shares on which the restrictions have lapsed or been removed shall, upon
request by the recipient of the Restricted Stock, be issued in exchange for
such restricted certificates.

SECTION X.  DIRECTOR OPTIONS

        In addition to the other provisions of this Plan relating to Director
Options, the following provisions shall govern the grant and exercise of
Director Options under the Plan:

               (a)    Director Options shall be granted to Nonemployee
        Directors in accordance with the following; provided, however, that a
        Nonemployee Director may decline to accept any Director Option by
        giving notice to such effect to the Committee or by refusing to
        execute an Option Agreement relating to the Option:

                      (1)    a Director Option representing the right to
               purchase 5,000 shares of Stock shall be granted automatically
               to each new Nonemployee Director on and effective as of the
               date on which such person is first elected or appointed to
               serve as a Nonemployee Director, provided, that if a
               Nonemployee Director who has received a Director Option under
               this subsection (a)(1) ceases serving as a director and is

                                      5
<PAGE>

               subsequently elected or appointed as a Nonemployee Director, he
               or she shall not receive a second Director Option pursuant to
               this subsection (a)(1); and

                      (2)    a Director Option representing the right to
               purchase 1,000 shares of Stock shall be granted automatically
               on and effective as of the date of the first meeting of the
               Committee in each year, beginning with the year 2003, to each
               person who is a Nonemployee Director of the Company on such
               date (including persons who have previously received Director
               Options under the Plan);

        provided, however, that if as of the effective date of any grant of
        Director Options there are not sufficient shares available under the
        Plan to allow for the grant to each Nonemployee Director of a Director
        Option for the number of shares provided herein, then each Nonemployee
        Director shall be granted an option for a pro rata portion of the
        total number of shares then available (disregarding fractional
        shares). Any provision of this Plan to the contrary notwithstanding,,
        in no event shall a Nonemployee Director receive a Director Option
        under (1) or (2) above if such Nonemployee Director receives on the
        same date an option to purchase shares of Stock under any other option
        plan of the Company or an Affiliate.

               (b)    Each Director Option shall vest in accordance with the
        following:

                      (1)    one-fourth of the shares subject to the Director
               Option shall be vested at the date of grant of the Director
               Option for each continuous full year of service by the grantee
               on the Board prior to such date of grant; and

                      (2)    if the Director Option is not fully vested on the
               date of grant, one-fourth of the Shares subject thereto shall
               vest on each anniversary of the date of commencement of the
               grantee's service on the Board until the Director Option is
               fully vested, provided, however, that no portion of any
               Director Option shall vest after the Nonemployee Director's
               service on the Board has terminated for any reason.

               (c)    Each Director Option shall be exercisable in whole at
        any time and in part from time to time to the extent such Director
        Option has vested in accordance with the foregoing; provided, however,
        that the otherwise unexpired portion of any Director Option shall
        expire and become null and void no later than upon the first to occur
        of (i) the expiration of ten years from the date such option was
        granted, (ii) the expiration of three months from the date of the
        termination of the Nonemployee Director's service on the Board for any
        reason other than death or retirement under the normal or early
        retirement provisions of any retirement plan maintained by the Company
        for Nonemployee Directors or (iii) the expiration of four years from
        the date of the termination of the Nonemployee Director's service on
        the Board by reason of death or retirement under the normal or early
        retirement provisions of any retirement plan maintained by the Company
        for Nonemployee Directors. Following termination of a Nonemployee
        Director's service on the Board, his or her Director Options shall be
        exercisable during the applicable period described in clause (ii) or
        (iii) of the preceding sentence to the extent such Options were
        exercisable on the date of termination. The foregoing provisions of
        this subsection (c) and any other provision of this Plan to the
        contrary notwithstanding, the otherwise unexpired portion of any
        Director Option granted hereunder shall expire and become null and
        void immediately upon termination of the Nonemployee Director's
        service on the Board if such termination occurs by reason of such
        Nonemployee Director's (i) fraud or intentional misrepresentation or
        (ii) embezzlement, misappropriation or conversion of assets or
        opportunities of the Company or any Affiliate. The right to purchase
        shares of Stock shall be cumulative so that when the right to purchase
        any shares of Stock has accrued, such shares or any part thereof may
        be purchased at any time thereafter until the expiration or
        termination of the Director Option. Nothing in this paragraph or in
        any other provision of the Plan shall cause the period during which a
        Director Option may be exercised to be extended beyond the period
        specified in clause (i) or in clause (ii) or (iii), as applicable, of
        the first sentence of this paragraph.

                                      6
<PAGE>

               (d)    Stock appreciation rights shall not be granted in
           connection with Director Options.

               (e)    Except as provided in this subsection (e), no Director
        Option granted under the Plan shall be transferable otherwise than by
        will or the laws of descent and distribution and shall be exercisable,
        during the lifetime of the optionee, only by the optionee. Director
        Options granted hereunder may be transferred by the optionee thereof
        to one or more permitted transferees to the same extent, and subject
        to the same conditions and limitations, as specified with respect to
        Employee Options in Section VIII(d) hereof (except that the references
        therein to Section VIII(a) shall be deemed, for purposes of this
        Section X(e), to be references to Section X(c) hereof).

               (f)    The aggregate number of shares of Stock that may be
        issued under Director Options granted under the Plan to any one
        Nonemployee Director shall not exceed the lesser of 20,000 shares or
        5% of the outstanding shares of Stock.

               (g)    Nothing in this Section shall operate to extend the
        period of exercise of a Director Option beyond the expiration date
        specified in the Option Agreement.

SECTION XI.  ADJUSTMENTS UPON RECAPITALIZATION OR REORGANIZATION

        In the event the Company shall effect a split of the Stock or dividend
payable in Stock (other than pursuant to the Company's Optional Stock Dividend
Plan), or in the event the outstanding Stock shall be combined into a smaller
number of shares, the maximum number of shares of Stock as to which Options
may be granted and Restricted Stock may be awarded under the Plan shall be
increased or decreased proportionately. In the event that before delivery by
the Company of all of the shares of Stock in respect of which any Option or
related stock appreciation right has been granted under the Plan, the Company
shall have effected such a split, dividend or combination, the shares of Stock
still subject to the Option or stock appreciation right shall be increased or
decreased proportionately and the purchase price per share of Stock shall be
decreased or increased proportionately so that the aggregate purchase price
for all of the then optioned shares of Stock shall remain the same as
immediately prior to such split, dividend or combination.

        In the event of a reclassification of the Stock not covered by the
foregoing, or in the event of a liquidation or reorganization, including a
merger, consolidation or sale of assets, the Board shall make such
adjustments, if any, as it may deem appropriate in the number and kind of
shares for which Options, stock appreciation rights or Restricted Stock may be
granted or awarded under the Plan and, with respect to outstanding Options and
stock appreciation rights, in the number, purchase price and kind of shares
covered thereby. The provisions of this Section shall only be applicable if,
and only to the extent that, the application thereof does not conflict with
any valid governmental statute, regulation or rule.

SECTION XII.  CONTINUANCE OF EMPLOYMENT OR BOARD MEMBERSHIP

        Neither the Plan nor any agreement relating to any Option, stock
appreciation right or award of Restricted Stock shall impose any obligation on
the Company or an Affiliate to continue to employ any employee or to permit
any Nonemployee Director to continue as a director of the Company.

SECTION XIII.  WITHHOLDING

        The Company shall have the right to withhold taxes, as required by
law, from any transfer of cash or Stock to an employee under the Plan or to
collect from the person legally responsible therefor, as a condition of any
transfer of cash or Stock to an employee or his or her permitted transferees
under the Plan, any taxes required by law to be withheld.

               (a)    Subject to the provisions of paragraphs (b) and (c) of
        this Section, at any time when an employee is required to pay to the
        Company an amount required to be withheld under applicable tax laws in
        connection with an issuance of Stock upon exercise of an Employee
        Option or stock appreciation right, the employee may satisfy this
        obligation in whole or in part by electing

                                      7
<PAGE>

        (the "Election") to have the Company withhold from the issuance shares
        of Stock having a fair market value equal to the amount required to be
        withheld; provided, however, that such an Election shall not be
        permitted in connection with any exercise of an Option or stock
        appreciation right by a transferee thereof. The value of the shares of
        Stock to be withheld shall be based on the fair market value of such
        shares as of the date on which shares of Stock are issued to the
        employee pursuant to exercise of the Option or stock appreciation
        right (the "Tax Date"). The employee must pay to the Company any
        difference between the amount required to be withheld by the Company
        and the value of the shares of Stock so withheld. Any shares of Stock
        withheld shall not thereafter be available to be subject to an Option
        granted under the Plan.

               (b)    Each Election must be made prior to the Tax Date. The
        Committee may disapprove of any Election, may suspend or terminate the
        right to make Elections and may provide with respect to any Employee
        Option or stock appreciation right that the right to make Elections
        shall not apply to such Option or stock appreciation right. An
        Election is irrevocable.

               (c)    If an employee is an officer or director of the Company
        within the meaning of Section 16 of the Securities Exchange Act of
        1934 (the "1934 Act") and the rules and regulations promulgated
        thereunder, then an Election shall be valid only if expressly approved
        by the Committee prior to the Tax Date.

SECTION XIV.  LEGAL RESTRICTIONS

        Nothing herein or in any Option Agreement shall require the Company to
sell or issue any Stock pursuant to an Option that has been transferred as
contemplated by Section VIII(d) or X(e) if such sale or issuance would, in the
opinion of counsel for the Company, constitute a violation of the Securities
Act of 1933, as amended (the "Securities Act"), or any similar or succeeding
statute or statutes, as then in effect. At the time of any grant or exercise
of any Options, or sale or issuance of Stock pursuant thereto, the Company
may, as a condition precedent to the sale or issuance of such Stock, require
from the holder of the Options (or in the event of such holder's death, his or
her representatives, legatees or distributees) such written representations,
if any, concerning his or her intentions with regard to the retention or
disposition of the Stock being acquired, and such written covenants and
agreements, if any, as to the manner of disposal of such Stock as, in the
opinion of counsel to the Company, may be necessary to ensure that any
disposition by such holder (or his or her legal representatives, legatees or
distributees) will not involve a violation of the Securities Act, or any
similar or succeeding statute or statutes, or any other applicable federal or
state statute, rule or regulation, as then in effect. Certificates for Stock,
when issued, shall have appropriate legends, or statements of other applicable
restrictions, endorsed thereon, and may or may not be immediately
transferable.

SECTION XV.  AMENDMENT OR TERMINATION OF THE PLAN

        The Board in its discretion may terminate the Plan at any time with
respect to any shares of Stock for which Options have not theretofore been
granted or that have not been awarded as Restricted Stock. The Board shall
have the right to alter or amend the Plan or any part thereof from time to
time; provided, that no such change may be made which would impair the rights
of the optionee under any outstanding Option or the recipient of Restricted
Stock without the consent of such optionee or recipient; and provided further,
that the Board may not, without the approval of the stockholders of the
Company, make any alteration or amendment that would materially increase the
benefits accruing to participants under the Plan, increase the aggregate
number of shares of Stock that may be issued pursuant to the provisions of the
Plan, or materially modify the requirements for participation in the Plan or
that is otherwise required by law or regulations to be approved by the
stockholders.

SECTION XVI.  EFFECTIVENESS AND EXPIRATION OF THE PLAN

        If adopted by the Board and approved by the vote of the holders of a
majority of the stock of the Company present or represented and voting on the
matter at a meeting of stockholders duly called and held

                                      8
<PAGE>

for such purpose, or at an annual meeting thereof, the notice of which has
specified that action is to be taken on the Plan, and the Committee shall have
been advised by legal counsel for the Company that in the opinion of such
counsel all applicable requirements of law precedent to its becoming effective
have been fully met, then the Plan shall become effective as of May 15, 2002,
or as soon thereafter as the aforesaid requirements have been met. The Plan
shall expire five years after the effective date of the Plan. If the
stockholders of the Company fail so to approve the Plan, the Plan shall
thereupon terminate and all Options previously granted and all awards of
Restricted Stock under the Plan shall become void and of no effect. With
respect to persons subject to Section 16 of the 1934 Act, transactions under
the Plan are intended to comply with applicable conditions of Rule 16b-3 or
its successors under the 1934 Act. To the extent any provisions of the Plan or
action by the Committee fails to so comply, it shall be deemed null and void,
to the extent permitted by law and deemed advisable by the Committee or by the
Board.

                                      9

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