Document:

<PAGE>

                                                                    Exhibit 10.8
                                   SCHEDULE 2
               MICROSOFT NETWORK OF INTERNET SERVICES ADVERTISING

This Schedule 2 (the "Schedule") is made pursuant to that certain Master
Advertising Agreement (the "Agreement") dated April 5, 2001 by and between
Microsoft Corporation ("Microsoft Corporation") and eDiets.com, Inc. ("Company")
and is entered into by and among the Company and Microsoft. This Schedule
confirms the terms pursuant to which Company will purchase advertising
placements on the web sites set forth in this Schedule (collectively "MSN"),
effective July 1, 2002 (the "Effective Date"). This Schedule is entered into
between Microsoft Online, L.P. ("Microsoft Online"), MSNBC Interactive News,
L.L.C ("MSNBC") and together with Microsoft Online, ("Microsoft") and Company.

1.   AD PLACEMENTS:

     1.1  During the Term, Microsoft will provide a total of [***] to Company as
          set forth in Exhibit 2-A attached hereto, unless the parties agree
          upon alternate placements and fees in writing. "Ad Requests" means the
          request of an advertising element as a direct result of a user's
          action, as recorded by the advertisement's server software.

     1.2  Company agrees to refresh its creative as mutually agreed during the
          Term, but no less frequently than once every seven (7) days.

     1.3  Microsoft may, in its sole discretion, deliver Ad Requests in excess
          of the total set forth above, however, Company will not be obligated
          to pay Microsoft for such over-delivery, unless the parties agree on
          payment terms in a written amendment to this Schedule.

     1.4  Make Goods:

          1.4.1 If Microsoft fails to deliver the agreed upon aggregate number
                of Ad Requests during the Term, Company's sole remedy for such
                failure will be the extension of the Term for (i) a period of
                sixty (60) days, or (ii) until the agreed upon number of Ad
                Requests (or other Ad Requests as the parties mutually agree)
                are provided, whichever is longer.

          1.4.2 The delivery of Ad Requests will be measured [***] as set forth
                in Exhibit 2-A, attached hereto, or otherwise as agreed upon by
                the parties in writing in advance of each [***]. If Microsoft,
                at the end of any given [***] during the Term, has failed to
                deliver at least [***] of the Ad Requests committed for such
                quarter, Company reserves the right to withhold payment due for
                such Ad Requests until such shortfall is delivered by Microsoft,
                at which time the funds withheld will be released; provided,
                however, that if such Ad Requests are not delivered within (60)
                days following the end of the applicable [***], Company shall
                not pay for such undelivered Ad Requests. Further, in the case
                where a particular placement is contained in the media plan for
                more than one [***] and the CPM rate for that placement
                increases from one [***] to the next, it is understood that the
                entire Ad Request commitment at the lower CPM must be met before
                the higher CPM is applied, regardless of the [***] in which the
                delivery is made or completed.

     1.5  On a monthly basis, the parties will discuss additions, changes and
          deletions to the placements set forth in this Section 1 and Company's
          advertising creative in an effort to optimize campaign performance of
          the Ad Requests. Subject to mutual written agreement and inventory
          availability, Microsoft will make all reasonable efforts to implement
          such revisions.

     1.6  Microsoft will make commercially reasonable efforts to maintain
          aggregate click-through rates for the Ad Requests purchased pursuant
          to this Schedule which are substantially similar to those aggregate
          click-through rates historically provided by Microsoft under the
          Agreement. Company shall make commercially reasonable efforts to
          optimize the creative selections given to Microsoft for fulfillment of
          this Schedule. Failure by Microsoft to meet or exceed such historical
          aggregate click-through rates will not be deemed a breach of this
          Schedule. Microsoft makes no warranty about the click-through rate to
          be provided through each Exhibit 2-A ad placement.

2.   EXCLUSIVE PROVISION OF CONTENT: During the Term, Microsoft will not accept
     advertising from or license products or services owned or distributed by
     [***] on the following MSN sites or any successor sites (collectively the
     "Sites") (including without limitation, pages contained within the Sites or
     linked to the Sites): [***]

[***] Confidential Information

Microsoft Confidential
Page 1 of 20

<PAGE>

     [***]. Except as provided herein, nothing in this Schedule will be
     construed as restricting Microsoft's ability accept advertising from or
     license products or services owned or distributed by other entities focused
     on dieting and weight loss

3.   WOMENCENTRAL MINI-SITE:

     3.1  Microsoft will create a site within WomenCentral for use by
          WomansCentral and MSN users, which site will allow such users review
          diet, fitness and nutrition information (the "Mini-Site"). The
          Mini-Site will:

          3.1.1 Be at least five (5) to six (6) pages in length; and
          3.1.2 Be created and hosted by Microsoft within WomenCentral using
                Content. Such Content will include, without limitation Company's
                tools such as a body mass indicator or calorie calculator; and
          3.1.3 Be available for WomenCentral users through a persistent link (a
                text link or graphical link to be mutually agreed to by the
                parties) on the WomenCentral home page; and
          3.1.4 Include the following on navigation structure of the Mini-Site:
                (a) the logos of Microsoft and Company; (b) hyperlink to
                WomenCentral, MSN or any page therein as mutually agreed to by
                Microsoft and Company; (c) be located at the top of each page of
                the Mini-Site 3.1.5 Include graphic and text links, which links
                will be placed on the Mini-Site as mutually agreed to by the
                Microsoft and Company, to Company's site, with a goal of
                increasing new membership in Company's site and diet programs;
                and
          3.1.6 Include an attribution to Company as approved by the Company
                such as "Sponsored by eDiets."

     3.2  Company will refresh the Mini-Site creative as mutually agreed upon
          during the Term, but no less frequently than once each month of the
          Term.

     3.3  Company will be solely responsible for customer service for products
          and services offered by Company on the Mini-Site.

     3.4  Microsoft and Company shall mutually agree on the design and content
          of the Mini-Site, but Microsoft will have ultimate editorial control
          over the Mini-Site. Microsoft will approve the Mini-Site no later than
          ten (10) days prior to launch of the Mini-Site (tentatively scheduled
          for July 1, 2002). Company will comply with the WomenCentral
          specifications set forth in Exhibit 2-B attached hereto, and will
          reasonably cooperate with Microsoft to test the operation and
          functionality of the Mini-Site prior to its launch by Microsoft.

4.   MSNBC PLACEMENTS: MSNBC will provide Company with the following placements
     on the MSNBC Web Site (as defined below): (a) advertorial integration, as
     set forth in Section 4.1; (b) placement in the Resource Guide, as set forth
     in Section 4.2; and (c) placement on the MSNBC home page, as set forth in
     Section 4.3:

     4.1  Advertorial Integration:

          4.1.1 MSNBC will create and develop a fly-out menu from the "Health"
                or "Living" Navigation Bar Menu on the MSNBC Web Site as such
                Section is mutually determined by MSNBC and Company) titled
                "Special Advertiser Features". Users who activate the "Special
                Advertiser Features" fly-out menu will have the option to link
                to the Jump Page. "Navigation Bar Menu" means the navigation
                elements appearing on the left side of web pages within the
                MSNBC Web Site, which shall consist of the MSNBC logo and
                internal graphic or text links to web pages within the MSNBC Web
                Site, as may be modified by MSNBC in its discretion. "MSNBC Web
                Site" means the MSNBC Web Site currently located at URL:
                http://www.msnbc.com or any successor site and modified from
                time to time by MSNBC, in its sole discretion, that may include,
                but is not limited to, any and all other web sites created,
                registered, owned and/or controlled by MSNBC. "Jump Page" means
                the co-branded web page within the MSNBC Web Site hosted and
                maintained by MSNBC, which shall contain Content and links to
                Company's Site. "Section" means a specific designated
                information area within the MSNBC Web Site. Examples of Sections
                include, without limitation, Sports, Business, Health,
                Classifieds and Living.

          4.1.2 MSNBC will maintain one or more links from the "Health" or
                "Living" Section of the MSNBC Web Site to the Jump Page. The
                number, size, placement and other characteristics of such links
                as well as the Section shall be mutually determined by MSNBC and
                Company.

[***] Confidential Information

Microsoft Confidential
Page 2 of 20

<PAGE>

          4.1.3 The content, design, functionality, and appearance of the Jump
                Page will be mutually determined by MSNBC and Company. MSNBC
                shall provide a mock-up of the Jump Page to Company for its
                review and comment prior to publication. The Jump Page shall:
                (a) include Content provided by Company; (b) include Company
                branding in a manner mutually agreed upon by the parties; and
                (c) provide multiple links to the Company's site, the number,
                size, placement and other characteristics of such links to be
                mutually determined by MSNBC and Company.

     4.2  Resource Guide Placement: Company will receive either a text link or
          logo in each of the relevant story pages within either the "Health" or
          "Living" Section as mutually determined by Company and MSNBC. If
          Company receives a text link, it will be a non-branded reference
          substantially in the form of "diet", "diet plan" or "nutrition."
          Microsoft and MSNBC make no warranty regarding the number of Ad
          Requests that will be delivered to Company from the Resource Guide
          placement.

     4.3  MSNBC Home Page Placement: From time to time, Company will receive a
          text link in the Section entitled "MSNBC Partner Feature." Exhibition
          of such text link will be mutually determined by MSNBC and Company.
          MSNBC makes no warranty regarding the number of Ad Requests which will
          be delivered to Company from the MSNBC Home Page placement.

5.   MINI-SITE AND JUMP PAGE REQUIREMENTS:

     5.1  Rights and Obligations of Company:

          5.1.1 Company shall deliver Content for the Mini-Site and Jump Page to
                Microsoft and MSNBC respectively in accordance with the delivery
                specifications set forth on Exhibit 2-B. Company shall deliver
                Content that is complete, acceptable in style and quality, and
                free of errors including, without limitation, errors in facts,
                grammar, punctuation and spelling. In the event that Microsoft
                or MSNBC require additions, deletions or other changes to the
                Content, Microsoft or MSNBC as applicable shall notify Company
                in writing and Company shall alter the Content to accommodate
                such changes.

          5.1.2 Company agrees to regularly consult in good faith with Microsoft
                on the topics, editorial quality and timeliness of Content, and
                Company will be responsible for ensuring that the Content is
                reflective of the overall commercial quality of Microsoft
                products and services. Company shall make thirty (30) day
                editorial calendars available to Microsoft and MSNBC so the
                parties may work together on programming and promotion of the
                Mini-Site and the Jump Page. The thirty (30) day editorial
                calendar will identify the specific articles and Content,
                including run dates, which Company will supply to Microsoft and
                MSNBC under the terms of this Schedule.

     5.2 Proprietary Rights:

          5.2.1 Subject to the license granted to Company under Section 5.3 of
                this Schedule, Microsoft and MSNBC hereby reserve all of its
                right, title and interest in its respective intellectual
                property rights including, without limitation, all right, title
                and interest in and to all trademarks, trade dress, logos,
                insignia and copyrightable materials supplied by Microsoft or
                MSNBC to Company hereunder. Subject to the foregoing and the
                license granted to Microsoft and MSNBC under Section 5.3 of this
                Schedule, Company reserves all of its right, title and interest
                in its intellectual property rights, including, without
                limitation, all right, title and interest in and to all
                trademarks, trade dress, logos, insignia and copyrightable
                materials supplied by Company to Microsoft or MSNBC.

          5.2.2 Microsoft and MSNBC License: Microsoft and MSNBC each hereby
                grant to Company, during the Term, a non-exclusive,
                non-transferable license to use the trade names, trademarks,
                service names and other proprietary marks supplied by Microsoft
                or MSNBC as is reasonably necessary to perform its obligations
                under this Agreement; provided, however, that any advertising
                and/or other materials containing any of Microsoft's or MSNBC's
                marks will be subject to Microsoft's or MSNBC's prior written
                approval, which approval will not be unreasonably withheld or
                delayed. All goodwill arising out of any use of any of
                Microsoft's or MSNBC's marks by, through or under Company will
                inure solely to the respective benefit of Microsoft or MSNBC.

Microsoft Confidential
Page 3 of 20

<PAGE>

     5.3  Company License:

          5.3.1 In addition to the license granted to Microsoft pursuant to
                Section 3 of the Agreement, Company hereby grants to MSNBC,
                during the Term, a non-exclusive, non-transferable license to
                use the trade names, trademarks, service names and other
                proprietary marks supplied by Company as is reasonably necessary
                to perform its obligations under this Agreement; provided,
                however, that any advertising and/or other materials containing
                any of Company's marks will be subject to Company's prior
                written approval, which approval shall not be unreasonably
                withheld or delayed. All goodwill arising out of any use of any
                of Company's marks by, through or under MSNBC will inure solely
                to the benefit of Company.

          5.3.2 Company hereby grants to MSNBC, during the Term, a
                non-exclusive, non-transferable license to use, reproduce,
                distribute and display the Content on the MSNBC Web Site in
                accordance with the terms and conditions of this Schedule and
                the Agreement.

     5.4  Non-Disparagement: No party to this Schedule will use any other
          party's trade names, trademarks, service names and other proprietary
          marks in a manner that disparages any other party or its products or
          services, and/or portrays the any other party or its products or
          services in a false, competitively adverse or poor light. Each party
          will comply with any other party's reasonable requests as to the use
          of the other party's proprietary marks and will avoid knowingly taking
          any action that diminishes the value of such marks. Any party's use of
          the any other party's proprietary marks except as expressly permitted
          in this Schedule is strictly prohibited.

     5.5  Advertising Revenue: Microsoft and MSNBC shall retain all revenues
          (including all advertising revenues) generated from the Mini-Site and
          Jump Page and on all pages within MSN and the MSNBC Web Site, which
          contain Content, excluding revenue generated by Company through
          Company's web site or the sale of its products and services.

     5.6  End User Data: All end user individual and aggregate information
          acquired through the Mini-Site or Jump Page ("End User Data") shall be
          owned by Company. Company may provide aggregate demographic and end
          user profile information to MSNBC, provided such information does not
          identify any individual end users. The parties agree to conform with
          each other's data privacy standards covering End User Data.

6.   REPORTING:

     6.1  Company shall develop, implement and maintain the technology required
          to track usage of Company's site by users linking to such site from
          Company's placements on MSN, and will provide Microsoft with weekly
          reports ("Reports"). Subject to mutual agreement by the parties, such
          Reports shall be delivered in a template designated by Microsoft, and
          shall include click-throughs designated by MSN page groups,
          click-through rates, conversion by ad element and page group, and any
          other field mutually agreed to by Microsoft and Company.
          Notwithstanding the foregoing, Company acknowledges that Microsoft's
          reports will the basis for total ad requests and click-throughs
          delivered by Microsoft. In the event of a discrepancy of more than
          thirty percent (30%) between Microsoft and Company's reporting, the
          parties agree to work together to find a mutually agreeable resolution
          such as, but not limited to, the averaging together of the two
          reports.

     6.2  Company will provide Microsoft Reports according to the following
          frequency: (a) daily access to its on-line reporting tool; and (b)
          weekly printed Reports no later than 5:00 pm each Monday of the Term,
          unless the parties agree to an alternate delivery schedule.

     6.3  Microsoft and Company agree to review the Reports on a weekly basis in
          person or via teleconference (at Microsoft's discretion) or an
          alternate time agreed upon by the parties.

7.   FEES:

     7.1  Subject to the terms and conditions of this Schedule including without
          limitation, the terms of Section 1.4 of this Schedule, Company will
          pay Microsoft an aggregate advertising fee ("Fee") of nine million one
          hundred twenty-nine thousand nine hundred twelve dollars
          ($9,129,912USD) during the Term. Subject to the terms of Section 1.4
          of this Schedule, Company will be obligated to pay Microsoft
          twenty-four (24) equal installments of three hundred eighty thousand
          four hundred thirteen dollars ($380,413). Such payments will be
          rendered by Company on the fifteenth (15/th/) and thirtieth (30/th/)
          days of each month of the Term, or the business day prior to each such
          date.]

Microsoft Confidential
Page 4 of 20

<PAGE>

     7.2  Subject to Section 1.4.2, Company will render the Fee via wire
          transfer to the account set forth below and Microsoft must receive
          each installment in full prior to exhibition of the advertisements:

                             Bank of America, Dallas
                           1401 Elm Street, 5th Floor
                                Dallas, TX 75202
                               MSN Online, #847543
                              Account # 3751736507
                                 ABA#: 111000012

     7.3  Company will establish and maintain an irrevocable standby letter of
          credit (the "Standby Letter") in the amount of five hundred thousand
          dollars ($500,000). The Standby Letter shall remain in effect during
          the Term and for a period of (i) one (1) month after the lapse of the
          Term; or (ii) the conclusion of Company's payment obligations, under
          this Schedule, whichever occurs first. Company or Company's designated
          bank will provide the Standby Letter to Microsoft immediately upon
          execution of this Schedule 2. Microsoft shall not draw upon the
          Standby Letter unless the following conditions precedent have been met
          (i) the delivery of notice to the Company that it has failed to make
          timely payment and the lapsing of a 30 day period after service of
          such notice in which Company has to cure; (ii) the complete resolution
          of any advertisement delivery dispute within 45 days following
          Microsoft's written notice thereof, the subject of which gives rise to
          Company's withholding of payment. In no event shall Microsoft, draw
          upon the Standby Letter as an alternative to payment as set forth in
          Section 7.1 above.

8.   TERM: The tem of this Schedule shall commence on July 1, 2002 and end on
     June 30, 2003, unless extended pursuant to Section 1.4.

9.   TERMINATION: Either party may immediately terminate this Schedule upon
     written notice if the other party breaches the Schedule in any material
     respect, and such breach remains uncured for a period of fifteen (15) days
     following the breaching party's receipt of written notice of the breach
     from the non-breaching party. If this Schedule is terminated pursuant to
     this Section 9, the parties will have no further obligations to each other,
     however, (a) if Microsoft terminates this Schedule due to Company's breach,
     Company will pay Microsoft a penalty of fees in the amount of three hundred
     eighty thousand four hundred thirteen dollars ($380,413); or (b) if Company
     terminates this Schedule due to Microsoft's breach, Microsoft will provide
     Company Ad Requests for the fifteen (15) day period following the effective
     date of termination at no charge to Company.

10.  AMENDMENT TO THE AGREEMENT

     10.1 The fifth sentence of Section 14 of the Agreement is deleted in its
          entirety and replaced with the following:

               Neither party may assign, sub-license transfer, encumber or
               otherwise dispose of this Agreement without the other party's
               prior written approval, which approval shall not be unreasonably
               withheld or delayed.

     10.2 Assignment of Agreement. Company and Microsoft Corporation hereby
          approve the assignment of the Agreement and the rights and obligations
          under the Agreement and this Schedule to Microsoft Online, an
          affiliate of Microsoft Corporation.

This Schedule shall be attached to and incorporated into the Agreement, and is
subject to all the terms and conditions of the Agreement. This Schedule amends
the Agreement as set forth herein and supercedes the terms set forth in Schedule
1 in its entirety. Any capitalized but undefined terms contained in this
Schedule shall have the meaning ascribed to them in the Agreement. The terms and
conditions of this Schedule shall control over any inconsistent terms set forth
in the Agreement.

(Signature page follows)

Microsoft Confidential
Page 5 of 20

<PAGE>

IN WITNESS WHEREOF, the parties have entered into this Schedule as of the
Effective Date.

Microsoft Online                            Company
MICROSOFT ONLINE, LP                        EDIETS.COM Inc.
6100 Neil Road                              3801 W Hillsboro Blvd
Reno, NV 89570                              Deerfield Beach, FL 33442

By /s/ Gary Larkin                          /s/ David R. Humble
   ----------------------------------       ------------------------------------
(Sign)                                      (Sign)

Gary Larkin                                 David R. Humble
-------------------------------------       ------------------------------------
Name (Print)                                Name (Print)

Regional Manager - MSN                      CEO, Founder
-------------------------------------       ------------------------------------
Title                                       Title

7/2/02                                      7/1/02
-------------------------------------       ------------------------------------
Date                                        Date
Program Contact: Mike Haines

MSNBC
MSNBC INTERACTIVE NEWS, L.L.C.
One Microsoft Way
Redmond, WA 98052

By /s/ Qkyoo Kim
-------------------------------------
(Sign)

Qkyoo Kim
-------------------------------------
Name (Print)

Manager Advertising - MSNBC
-------------------------------------
Title

7/15/02
-------------------------------------
Date
Program Contact: Mike Haines

Microsoft Confidential
Page 6 of 20

<PAGE>

                                   EXHIBIT 2-A

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------
eDiets Media Plan
7/1/2002 - 9/30/2002
--------------------------------------------------------------------------------------------------
                                                                Total Ad       Total Ad Reqs Per
                  Placement                      Code          Reqs/Month              Yr
--------------------------------------------------------------------------------------------------
<S>                                             <C>            <C>             <C>
CC01i Careers ROS 468x60 (A)                    CCHGEN           [***]                [***]
--------------------------------------------------------------------------------------------------

CC07i Careers ROS 120x240 (A)                   CCHMO1           [***]                [***]
--------------------------------------------------------------------------------------------------

CC17i Careers ROS 120x60 (A)                    CCHMO2           [***]                [***]
--------------------------------------------------------------------------------------------------

CC20i Careers ROS 120x30 (A)                    CCHHRL           [***]                [***]
--------------------------------------------------------------------------------------------------

HE90i Health PopUp (A) 250x250                  HEAPOP           [***]                [***]
--------------------------------------------------------------------------------------------------

HM01i Hotmail English Banners (d)               HOTBOS           [***]                [***]
--------------------------------------------------------------------------------------------------

HM90i Hotmail English 250x250 Home (d)          HOTENG           [***]                [***]
--------------------------------------------------------------------------------------------------

HM90i Hotmail English 250x250 Compose (d)       HOTENG           [***]                [***]
--------------------------------------------------------------------------------------------------

HM90i Hotmail English Lang.PopUp                HOTPOP           [***]                [***]
--------------------------------------------------------------------------------------------------

HM99i Hotmail PopUnder (NoGif) 720x300          HOTLBA           [***]                [***]
--------------------------------------------------------------------------------------------------

MS27i MSN Front Page Small Banner               MSNBFP           [***]                [***]
--------------------------------------------------------------------------------------------------

MS27i MSN Merchant Text Ad                      MSNMER           [***]                [***]
--------------------------------------------------------------------------------------------------

NB01i *Business                                 NBCCOM           [***]                [***]
--------------------------------------------------------------------------------------------------

NB01i *Frontpage                                NBCFPG           [***]                [***]
--------------------------------------------------------------------------------------------------

NB01i *Health                                   NBCHEA           [***]                [***]
--------------------------------------------------------------------------------------------------

NB01i *Sports                                   NBCSPT           [***]                [***]
--------------------------------------------------------------------------------------------------

NB01i *TV News                                  NBCONA           [***]                [***]
--------------------------------------------------------------------------------------------------

NB01i *Weather                                  NBCWEA           [***]                [***]
--------------------------------------------------------------------------------------------------

NB10i Business A-Column Button (A)125x125       NBCABS           [***]                [***]
--------------------------------------------------------------------------------------------------

NB10i Health A-Column Button (A) 125x125        NBCAHH           [***]                [***]
--------------------------------------------------------------------------------------------------

NB10i News A-Column Button (A) 125x125          NBCANS           [***]                [***]
--------------------------------------------------------------------------------------------------

NB10i Sports A-Column Button (A) 125x125        NBCASS           [***]                [***]
--------------------------------------------------------------------------------------------------

NB10i Travel A-Column Button (A) 125x125        NBCATL           [***]                [***]
--------------------------------------------------------------------------------------------------

NB10i TV news A-Column Button (A) 125x125       NBCATV           [***]                [***]
--------------------------------------------------------------------------------------------------

NB45i Showcase Ad - Med. Sports 300x250         NBCSMS           [***]                [***]
--------------------------------------------------------------------------------------------------

NB45i Showcase Ad - Med. Travel 300x250         NBCSMT           [***]                [***]
--------------------------------------------------------------------------------------------------

NB99i MSNBC PopUnder (NoGif) 720x300            NBCLBA           [***]                [***]
--------------------------------------------------------------------------------------------------
</TABLE>

[***] Confidential Information

Microsoft Confidential
Page 7 of 20

<PAGE>

<TABLE>
<S>                                             <C>             <C>                  <C>
SL01i Slate Standard Banner                     SLAGEN          [***]                [***]
-------------------------------------------------------------------------------------------------

SL07i Business Section (A-Col) 120x240          SLABUV          [***]                [***]
-------------------------------------------------------------------------------------------------

SL07i Home Page Vertical Button (A-Col) 120x240 SLAVAR          [***]                [***]
-------------------------------------------------------------------------------------------------

SL07i News-Politics Section (A-Col) 120x240     SLANPV          [***]                [***]
-------------------------------------------------------------------------------------------------

SL90i Slate PopUp 250x250                       SLAPOP          [***]                [***]
-------------------------------------------------------------------------------------------------

WC01i WomenCentral ROS 468x60                   MSNUND          [***]                [***]
-------------------------------------------------------------------------------------------------

WC07i WomenCentral Beauty-Style 120x240         WMCBSV          [***]                [***]
-------------------------------------------------------------------------------------------------

WC07i WomenCentral First Person 120x240         WMCFPV          [***]                [***]
-------------------------------------------------------------------------------------------------

WC07i WomenCentral Fitness-Health 120x240       WMCFHV          [***]                [***]
-------------------------------------------------------------------------------------------------

WC07i WomenCentral Home-Food 120x240            WMCHFV          [***]                [***]
-------------------------------------------------------------------------------------------------

WC07i WomenCentral HomePage 120x240             WMCHPV          [***]                [***]
-------------------------------------------------------------------------------------------------

WC07i WomenCentral Relationships 120x240        WMCRVB          [***]                [***]
-------------------------------------------------------------------------------------------------

WC07i WomenCentral Weddings 120x240             WMCWVB          [***]                [***]
-------------------------------------------------------------------------------------------------

WC17i WomenCentral Beauty-Style 120x60          WMCBSS          [***]                [***]
-------------------------------------------------------------------------------------------------

WC17i WomenCentral First Person 120x60          WMCHES          [***]                [***]
-------------------------------------------------------------------------------------------------

WC17i WomenCentral Fitness-Health 120x60        WMCFTS          [***]                [***]
-------------------------------------------------------------------------------------------------

WC17i WomenCentral Home-Food 120x60             WMCHLS          [***]                [***]
-------------------------------------------------------------------------------------------------

WC17i WomenCentral HomePage 120x60              WMCFPS          [***]                [***]
-------------------------------------------------------------------------------------------------

WC17i WomenCentral Relationships 120x60         WMCRES          [***]                [***]
-------------------------------------------------------------------------------------------------

WC17i WomenCentral Weddings 120x60              WMCWDB          [***]                [***]
-------------------------------------------------------------------------------------------------

WC20i WomenCentral Beauty-Style 120x30          WMCSYH          [***]                [***]
-------------------------------------------------------------------------------------------------

WC20i WomenCentral First Person 120x30          WMCHLH          [***]                [***]
-------------------------------------------------------------------------------------------------

WC20i WomenCentral Fitness-Health 120x30        WMCFTH          [***]                [***]
-------------------------------------------------------------------------------------------------

WC20i WomenCentral Home-Food 120x30             WMCHMH          [***]                [***]
-------------------------------------------------------------------------------------------------

WC20i WomenCentral HomePage 120x30              WMCHPH          [***]                [***]
-------------------------------------------------------------------------------------------------

WC20i WomenCentral Relationships 120x30         WMCRLH          [***]                [***]
-------------------------------------------------------------------------------------------------

WC20i WomenCentral Weddings 120x30              WMCWHB          [***]                [***]
-------------------------------------------------------------------------------------------------

WC90i WomenCentral Pop-Up 250x250               WMCPOP          [***]                [***]
-------------------------------------------------------------------------------------------------

Subtotal of MSN Inventory                                       [***]                [***]
-------------------------------------------------------------------------------------------------
Content Integration within MSN
-------------------------------------------------------------------------------------------------
Search Featured Site
-------------------------------------------------------------------------------------------------
</TABLE>

[***] Confidential Information

Microsoft Confidential
Page 8 of 20

<PAGE>

<TABLE>
<S>                                             <C>             <C>                  <C>
Hotmail Web Courier                                             [***]                [***]
-------------------------------------------------------------------------------------------------
MSN Headline Module                                             [***]                [***]
-------------------------------------------------------------------------------------------------
Subtotal of premium inventory                                   [***]                [***]
-------------------------------------------------------------------------------------------------
Content Integration within MSN                                  [***]                [***]
-------------------------------------------------------------------------------------------------
Women Central Minisite                                          [***]                [***]
-------------------------------------------------------------------------------------------------
MSNBC Advertorial (individual placements below)                 [***]                [***]
-------------------------------------------------------------------------------------------------

1) Co-Branded Banners promoting Advertorial
   MSNBC ROS                                                    [***]                [***]
-------------------------------------------------------------------------------------------------

2) Banners MSNBC ROS                                            [***]                [***]
-------------------------------------------------------------------------------------------------

3) A-Column Ad- WebCourier Newsletters                          [***]                [***]
-------------------------------------------------------------------------------------------------

4) MSNBC Front Cover Banner (Lower Right)                       [***]                [***]
-------------------------------------------------------------------------------------------------
Subtotal of content integration                                 [***]                [***]
-------------------------------------------------------------------------------------------------

Grand Total:                                                    [***]                [***]
-------------------------------------------------------------------------------------------------
Net CPM

Package Price                                                                   $         850,742
-------------------------------------------------------------------------------------------------
</TABLE>

[***] Confidential Information

(Exhibit 2-A continued on next page)

Microsoft Confidential
Page 9 of 20

<PAGE>

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------
eDiets Media Plan
---------------------------------------------------------------------------------------------------------------------------
10/1/2002 - 12/31/2002
---------------------------------------------------------------------------------------------------------------------------
                                                                                 Total Ad               Total Ad Reqs Per
                           Placement                                 Code       Reqs/Month                      Yr
---------------------------------------------------------------------------------------------------------------------------
<S>                                                                 <C>         <C>                     <C>
CC01i Careers ROS 468x60 (A)                                        CCHGEN      [***]                          [***]
---------------------------------------------------------------------------------------------------------------------------

CC07i Careers ROS 120x240 (A)                                       CCHMO1      [***]                          [***]
---------------------------------------------------------------------------------------------------------------------------

CC17i Careers ROS 120x60 (A)                                        CCHMO2      [***]                          [***]
---------------------------------------------------------------------------------------------------------------------------

CC20i Careers ROS 120x30 (A)                                        CCHHRL      [***]                          [***]
---------------------------------------------------------------------------------------------------------------------------

HE90i Health PopUp (A) 250x250                                      HEAPOP      [***]                          [***]
---------------------------------------------------------------------------------------------------------------------------

HM01i Hotmail English Banners (d)                                   HOTBOS      [***]                          [***]
---------------------------------------------------------------------------------------------------------------------------

HM90i Hotmail English 250x250 Home (d)                              HOTENG      [***]                          [***]
---------------------------------------------------------------------------------------------------------------------------

HM90i Hotmail English 250x250 Compose (d)                           HOTENG      [***]                          [***]
---------------------------------------------------------------------------------------------------------------------------

HM90i Hotmail English Lang.PopUp                                    HOTPOP      [***]                          [***]
---------------------------------------------------------------------------------------------------------------------------

HM99i Hotmail PopUnder (NoGif) 720x300                              HOTLBA      [***]                          [***]
---------------------------------------------------------------------------------------------------------------------------

MS27i MSN Front Page Small Banner                                   MSNBFP      [***]                          [***]
---------------------------------------------------------------------------------------------------------------------------

MS27i MSN Merchant Text Ad                                          MSNMER      [***]                          [***]
---------------------------------------------------------------------------------------------------------------------------

NB01i *Business                                                     NBCCOM      [***]                          [***]
---------------------------------------------------------------------------------------------------------------------------

NB01i *Frontpage                                                    NBCFPG      [***]                          [***]
---------------------------------------------------------------------------------------------------------------------------

NB01i *Health                                                       NBCHEA      [***]                          [***]
---------------------------------------------------------------------------------------------------------------------------

NB01i *Sports                                                       NBCSPT      [***]                          [***]
---------------------------------------------------------------------------------------------------------------------------

NB01i *TV News                                                      NBCONA      [***]                          [***]
---------------------------------------------------------------------------------------------------------------------------

NB01i *Weather                                                      NBCWEA      [***]                          [***]
---------------------------------------------------------------------------------------------------------------------------

NB10i Business A-Column Button (A)125x125                           NBCABS      [***]                          [***]
---------------------------------------------------------------------------------------------------------------------------

NB10i Health A-Column Button (A) 125x125                            NBCAHH      [***]                          [***]
---------------------------------------------------------------------------------------------------------------------------

NB10i News A-Column Button (A) 125x125                              NBCANS      [***]                          [***]
---------------------------------------------------------------------------------------------------------------------------

NB10i Sports A-Column Button (A) 125x125                            NBCASS      [***]                          [***]
---------------------------------------------------------------------------------------------------------------------------

NB10i Travel A-Column Button (A) 125x125                            NBCATL      [***]                          [***]
---------------------------------------------------------------------------------------------------------------------------

NB10i TV news A-Column Button (A) 125x125                           NBCATV      [***]                          [***]
---------------------------------------------------------------------------------------------------------------------------

NB45i Showcase Ad - Med. Sports 300x250                             NBCSMS      [***]                          [***]
---------------------------------------------------------------------------------------------------------------------------

NB45i Showcase Ad - Med. Travel 300x250                             NBCSMT      [***]                          [***]
</TABLE>

[***] Confidential Information

   Microsoft Confidential
   Page 10 of 20

<PAGE>

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------
<S>                                                                 <C>         <C>                                   <C>
NB99i MSNBC PopUnder (NoGif) 720x300                                NBCLBA      [***]                                 [***]
---------------------------------------------------------------------------------------------------------------------------

SL01i Slate Standard Banner                                         SLAGEN      [***]                                 [***]
---------------------------------------------------------------------------------------------------------------------------

SL07i Business Section (A-Col) 120x240                              SLABUV      [***]                                 [***]
---------------------------------------------------------------------------------------------------------------------------

SL07i Home Page Vertical Button (A-Col) 120x240                     SLAVAR      [***]                                 [***]
---------------------------------------------------------------------------------------------------------------------------

SL07i News-Politics Section (A-Col) 120x240                         SLANPV      [***]                                 [***]
---------------------------------------------------------------------------------------------------------------------------

SL90i Slate PopUp 250x250                                           SLAPOP      [***]                                 [***]
---------------------------------------------------------------------------------------------------------------------------

WC01i WomenCentral ROS 468x60                                       MSNUND      [***]                                 [***]
---------------------------------------------------------------------------------------------------------------------------

WC07i WomenCentral Beauty-Style 120x240                             WMCBSV      [***]                                 [***]
---------------------------------------------------------------------------------------------------------------------------

WC07i WomenCentral First Person 120x240                             WMCFPV      [***]                                 [***]
---------------------------------------------------------------------------------------------------------------------------

WC07i WomenCentral Fitness-Health 120x240                           WMCFHV      [***]                                 [***]
---------------------------------------------------------------------------------------------------------------------------

WC07i WomenCentral Home-Food 120x240                                WMCHFV      [***]                                 [***]
---------------------------------------------------------------------------------------------------------------------------

WC07i WomenCentral HomePage 120x240                                 WMCHPV      [***]                                 [***]
---------------------------------------------------------------------------------------------------------------------------

WC07i WomenCentral Relationships 120x240                            WMCRVB      [***]                                 [***]
---------------------------------------------------------------------------------------------------------------------------

WC07i WomenCentral Weddings 120x240                                 WMCWVB      [***]                                 [***]
---------------------------------------------------------------------------------------------------------------------------

WC17i WomenCentral Beauty-Style 120x60                              WMCBSS      [***]                                 [***]
---------------------------------------------------------------------------------------------------------------------------

WC17i WomenCentral First Person 120x60                              WMCHES      [***]                                 [***]
---------------------------------------------------------------------------------------------------------------------------

WC17i WomenCentral Fitness-Health 120x60                            WMCFTS      [***]                                 [***]
---------------------------------------------------------------------------------------------------------------------------

WC17i WomenCentral Home-Food 120x60                                 WMCHLS      [***]                                 [***]
---------------------------------------------------------------------------------------------------------------------------

WC17i WomenCentral HomePage 120x60                                  WMCFPS      [***]                                 [***]
---------------------------------------------------------------------------------------------------------------------------

WC17i WomenCentral Relationships 120x60                             WMCRES      [***]                                 [***]
---------------------------------------------------------------------------------------------------------------------------

WC17i WomenCentral Weddings 120x60                                  WMCWDB      [***]                                 [***]
---------------------------------------------------------------------------------------------------------------------------

WC20i WomenCentral Beauty-Style 120x30                              WMCSYH      [***]                                 [***]
---------------------------------------------------------------------------------------------------------------------------

WC20i WomenCentral First Person 120x30                              WMCHLH      [***]                                 [***]
---------------------------------------------------------------------------------------------------------------------------

WC20i WomenCentral Fitness-Health 120x30                            WMCFTH      [***]                                 [***]
---------------------------------------------------------------------------------------------------------------------------

WC20i WomenCentral Home-Food 120x30                                 WMCHMH      [***]                                 [***]
---------------------------------------------------------------------------------------------------------------------------

WC20i WomenCentral HomePage 120x30                                  WMCHPH      [***]                                 [***]
---------------------------------------------------------------------------------------------------------------------------

WC20i WomenCentral Relationships 120x30                             WMCRLH      [***]                                 [***]
---------------------------------------------------------------------------------------------------------------------------

WC20i WomenCentral Weddings 120x30                                  WMCWHB      [***]                                 [***]
---------------------------------------------------------------------------------------------------------------------------

WC90i WomenCentral Pop-Up 250x250                                   WMCPOP      [***]                                 [***]
---------------------------------------------------------------------------------------------------------------------------
Subtotal of MSN Inventory                                                                                             [***]
</TABLE>

[***] Confidential Information

   Microsoft Confidential
   Page 11 of 20

<PAGE>

<TABLE>
--------------------------------------------------------------------------------------------------------------------------
<S>                                                                            <C>                   <C>
                                                                               [***]
--------------------------------------------------------------------------------------------------------------------------
Content Integration within MSN
--------------------------------------------------------------------------------------------------------------------------
Search Featured Site                                                                                                 [***]
--------------------------------------------------------------------------------------------------------------------------
Hotmail Web Courier
--------------------------------------------------------------------------------------------------------------------------
MSN Headline Module
--------------------------------------------------------------------------------------------------------------------------
Subtotal of premium inventory                                                                                        [***]
--------------------------------------------------------------------------------------------------------------------------
Content Integration within MSN
--------------------------------------------------------------------------------------------------------------------------
Women Central Minisite                                                                                               [***]
--------------------------------------------------------------------------------------------------------------------------
MSNBC Advertorial (Individual Placements below)                                                                      [***]
-------------------------------------------------------------------------------

1) Co-Branded Banners promoting Advertorial MSNBC ROS                          [***]                                 [***]
--------------------------------------------------------------------------------------------------------------------------

2) Banners MSNBC ROS                                                           [***]                                 [***]
--------------------------------------------------------------------------------------------------------------------------

3) A-Column Ad- WebCourier Newsletters                                         [***]                                 [***]
--------------------------------------------------------------------------------------------------------------------------

4) MSNBC Front Cover Banner (Lower Right)                                      [***]                                 [***]
--------------------------------------------------------------------------------------------------------------------------
Subtotal of content integration                                                                                      [***]
--------------------------------------------------------------------------------------------------------------------------

Grand Total:                                                                   [***]                                 [***]
--------------------------------------------------------------------------------------------------------------------------
Net CPM                                                                                              $               [***]
                                                                                                    ----------------------
Package Price                                                                                        $          2,137,229
--------------------------------------------------------------------------------------------------------------------------
</TABLE>

(Exhibit 2-A continued on next page)

[***] Confidential Information

   Microsoft Confidential
   Page 12 of 20

<PAGE>

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
eDiets Media Plan
1/1/2003 - 3/31/2003
---------------------------------------------------------------------------------------------------------------------
                                                                                       Total Ad         Total Ad Reqs
                             Placement                                Code            Reqs/Month           Per Yr
---------------------------------------------------------------------------------------------------------------------
<S>                                                                  <C>          <C>                   <C>
CC01i Careers ROS 468x60 (A)                                         CCHGEN       [***]                     [***]
---------------------------------------------------------------------------------------------------------------------

CC07i Careers ROS 120x240 (A)                                        CCHMO1       [***]                     [***]
---------------------------------------------------------------------------------------------------------------------

CC17i Careers ROS 120x60 (A)                                         CCHMO2       [***]                     [***]
---------------------------------------------------------------------------------------------------------------------

CC20i Careers ROS 120x30 (A)                                         CCHHRL       [***]                     [***]
---------------------------------------------------------------------------------------------------------------------

HE90i Health PopUp (A) 250x250                                       HEAPOP       [***]                     [***]
---------------------------------------------------------------------------------------------------------------------

HM01i Hotmail English Banners (d)                                    HOTBOS       [***]                     [***]
---------------------------------------------------------------------------------------------------------------------

HM90i Hotmail English 250x250 Home (d)                               HOTENG       [***]                     [***]
---------------------------------------------------------------------------------------------------------------------

HM90i Hotmail English 250x250 Compose (d)                            HOTENG       [***]                     [***]
---------------------------------------------------------------------------------------------------------------------

HM90i Hotmail English Lang.PopUp                                     HOTPOP       [***]                     [***]
---------------------------------------------------------------------------------------------------------------------

HM99i Hotmail PopUnder (NoGif) 720x300                               HOTLBA       [***]                     [***]
---------------------------------------------------------------------------------------------------------------------

MS27i MSN Front Page Small Banner                                    MSNBFP       [***]                     [***]
---------------------------------------------------------------------------------------------------------------------

MS27i MSN Merchant Text Ad                                           MSNMER       [***]                     [***]
---------------------------------------------------------------------------------------------------------------------

NB01i *Business                                                      NBCCOM       [***]                     [***]
---------------------------------------------------------------------------------------------------------------------

NB01i *Frontpage                                                     NBCFPG       [***]                     [***]
---------------------------------------------------------------------------------------------------------------------

NB01i *Health                                                        NBCHEA       [***]                     [***]
---------------------------------------------------------------------------------------------------------------------

NB01i *Sports                                                        NBCSPT       [***]                     [***]
---------------------------------------------------------------------------------------------------------------------

NB01i *TV News                                                       NBCONA       [***]                     [***]
---------------------------------------------------------------------------------------------------------------------

NB01i *Weather                                                       NBCWEA       [***]                     [***]
---------------------------------------------------------------------------------------------------------------------

NB10i Business A-Column Button (A)125x125                            NBCABS       [***]                     [***]
---------------------------------------------------------------------------------------------------------------------

NB10i Health A-Column Button (A) 125x125                             NBCAHH       [***]                     [***]
---------------------------------------------------------------------------------------------------------------------

NB10i News A-Column Button (A) 125x125                               NBCANS       [***]                     [***]
---------------------------------------------------------------------------------------------------------------------

NB10i Sports A-Column Button (A) 125x125                             NBCASS       [***]                     [***]
---------------------------------------------------------------------------------------------------------------------

NB10i Travel A-Column Button (A) 125x125                             NBCATL       [***]                     [***]
---------------------------------------------------------------------------------------------------------------------

NB10i TV news A-Column Button (A) 125x125                            NBCATV       [***]                     [***]
---------------------------------------------------------------------------------------------------------------------

NB45i Showcase Ad - Med. Sports 300x250                              NBCSMS       [***]                     [***]
---------------------------------------------------------------------------------------------------------------------

NB45i Showcase Ad - Med. Travel 300x250                              NBCSMT       [***]                     [***]
---------------------------------------------------------------------------------------------------------------------

NB99i MSNBC PopUnder (NoGif) 720x300                                 NBCLBA       [***]                     [***]
---------------------------------------------------------------------------------------------------------------------
</TABLE>

[***] Confidential Information

Microsoft Confidential
Page 13 of 20

<PAGE>

<TABLE>
<S>                                                                  <C>           <C>                     <C>
SL01i Slate Standard Banner                                          SLAGEN        [***]                   [***]
--------------------------------------------------------------------------------------------------------------------

SL07i Business Section (A-Col) 120x240                               SLABUV        [***]                   [***]
--------------------------------------------------------------------------------------------------------------------

SL07i Home Page Vertical Button (A-Col) 120x240                      SLAVAR        [***]                   [***]
--------------------------------------------------------------------------------------------------------------------

SL07i News-Politics Section (A-Col) 120x240                          SLANPV        [***]                   [***]
--------------------------------------------------------------------------------------------------------------------

SL90i Slate PopUp 250x250                                            SLAPOP        [***]                   [***]
--------------------------------------------------------------------------------------------------------------------

WC01i WomenCentral ROS 468x60                                        MSNUND        [***]                   [***]
--------------------------------------------------------------------------------------------------------------------

WC07i WomenCentral Beauty-Style 120x240                              WMCBSV        [***]                   [***]
--------------------------------------------------------------------------------------------------------------------

WC07i WomenCentral First Person 120x240                              WMCFPV        [***]                   [***]
--------------------------------------------------------------------------------------------------------------------

WC07i WomenCentral Fitness-Health 120x240                            WMCFHV        [***]                   [***]
--------------------------------------------------------------------------------------------------------------------

WC07i WomenCentral Home-Food 120x240                                 WMCHFV        [***]                   [***]
--------------------------------------------------------------------------------------------------------------------

WC07i WomenCentral HomePage 120x240                                  WMCHPV        [***]                   [***]
--------------------------------------------------------------------------------------------------------------------

WC07i WomenCentral Relationships 120x240                             WMCRVB        [***]                   [***]
--------------------------------------------------------------------------------------------------------------------

WC07i WomenCentral Weddings 120x240                                  WMCWVB        [***]                   [***]
--------------------------------------------------------------------------------------------------------------------

WC17i WomenCentral Beauty-Style 120x60                               WMCBSS        [***]                   [***]
--------------------------------------------------------------------------------------------------------------------

WC17i WomenCentral First Person 120x60                               WMCHES        [***]                   [***]
--------------------------------------------------------------------------------------------------------------------

WC17i WomenCentral Fitness-Health 120x60                             WMCFTS        [***]                   [***]
--------------------------------------------------------------------------------------------------------------------

WC17i WomenCentral Home-Food 120x60                                  WMCHLS        [***]                   [***]
--------------------------------------------------------------------------------------------------------------------

WC17i WomenCentral HomePage 120x60                                   WMCFPS        [***]                   [***]
--------------------------------------------------------------------------------------------------------------------

WC17i WomenCentral Relationships 120x60                              WMCRES        [***]                   [***]
--------------------------------------------------------------------------------------------------------------------

WC17i WomenCentral Weddings 120x60                                   WMCWDB        [***]                   [***]
--------------------------------------------------------------------------------------------------------------------

WC20i WomenCentral Beauty-Style 120x30                               WMCSYH        [***]                   [***]
--------------------------------------------------------------------------------------------------------------------

WC20i WomenCentral First Person 120x30                               WMCHLH        [***]                   [***]
--------------------------------------------------------------------------------------------------------------------

WC20i WomenCentral Fitness-Health 120x30                             WMCFTH        [***]                   [***]
--------------------------------------------------------------------------------------------------------------------

WC20i WomenCentral Home-Food 120x30                                  WMCHMH        [***]                   [***]
--------------------------------------------------------------------------------------------------------------------

WC20i WomenCentral HomePage 120x30                                   WMCHPH        [***]                   [***]
--------------------------------------------------------------------------------------------------------------------

WC20i WomenCentral Relationships 120x30                              WMCRLH        [***]                   [***]
--------------------------------------------------------------------------------------------------------------------

WC20i WomenCentral Weddings 120x30                                   WMCWHB        [***]                   [***]
--------------------------------------------------------------------------------------------------------------------

WC90i WomenCentral Pop-Up 250x250                                    WMCPOP        [***]                   [***]
--------------------------------------------------------------------------------------------------------------------

Subtotal of MSN Inventory                                                          [***]                   [***]
--------------------------------------------------------------------------------------------------------------------
Content Integration within MSN                                                     [***]                   [***]
--------------------------------------------------------------------------------------------------------------------
Search Featured Site                                                               [***]                   [***]
--------------------------------------------------------------------------------------------------------------------
</TABLE>

[***] Confidential Information

Microsoft Confidential
Page 14 of 20

<PAGE>

<TABLE>
<S>                                                          <C>                <C>                          <C>
Hotmail Web Courier
--------------------------------------------------------------------------------------------------------------------
MSN Headline Module
--------------------------------------------------------------------------------------------------------------------
Subtotal of premium inventory                                                                                 [***]
--------------------------------------------------------------------------------------------------------------------
Content Integration within MSN
--------------------------------------------------------------------------------------------------------------------
Women Central Minisite                                                                                        [***]
--------------------------------------------------------------------------------------------------------------------
MSNBC Advertorial (Individual Placements below)                                                               [***]
--------------------------------------------------------------------------------------------------------------------

1) Co-Branded Banners promoting Advertorial MSNBC ROS                           [***]                         [***]
--------------------------------------------------------------------------------------------------------------------

2) Banners MSNBC ROS                                                            [***]                         [***]
--------------------------------------------------------------------------------------------------------------------

3) A-Column Ad- WebCourier Newsletters                                          [***]                         [***]
--------------------------------------------------------------------------------------------------------------------

4) MSNBC Front Cover Banner (Lower Right)                                       [***]                         [***]
--------------------------------------------------------------------------------------------------------------------
Subtotal of content integration                                                                               [***]
--------------------------------------------------------------------------------------------------------------------

Grand Total:                                                                    [***]                         [***]
--------------------------------------------------------------------------------------------------------------------
Net CPM                                                                                                       [***]
                                                                                                   -----------------
Package Price                                                                                       $     2,780,473
--------------------------------------------------------------------------------------------------------------------
</TABLE>

[***] Confidential Information

(Exhibit 2-A continued on next page)

Microsoft Confidential
Page 15 of 20

<PAGE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------
eDiets Media Plan
--------------------------------------------------------------------------------------------------------------------------
4/1/2003 - 6/30/2003
--------------------------------------------------------------------------------------------------------------------------
                                                                                Total Ad                Total Ad Reqs Per
                             Placement                              Code       Reqs/Month                       Yr
--------------------------------------------------------------------------------------------------------------------------
<S>                                                                <C>         <C>                      <C>
CC01i Careers ROS 468x60 (A)                                       CCHGEN         [***]                        [***]
--------------------------------------------------------------------------------------------------------------------------

CC07i Careers ROS 120x240 (A)                                      CCHMO1         [***]                        [***]
--------------------------------------------------------------------------------------------------------------------------

CC17i Careers ROS 120x60 (A)                                       CCHMO2         [***]                        [***]
--------------------------------------------------------------------------------------------------------------------------

CC20i Careers ROS 120x30 (A)                                       CCHHRL         [***]                        [***]
--------------------------------------------------------------------------------------------------------------------------

HE90i Health PopUp (A) 250x250                                     HEAPOP         [***]                        [***]
--------------------------------------------------------------------------------------------------------------------------

HM01i Hotmail English Banners (d)                                  HOTBOS         [***]                        [***]
--------------------------------------------------------------------------------------------------------------------------

HM90i Hotmail English 250x250 Home (d)                             HOTENG         [***]                        [***]
--------------------------------------------------------------------------------------------------------------------------

HM90i Hotmail English 250x250 Compose (d)                          HOTENG         [***]                        [***]
--------------------------------------------------------------------------------------------------------------------------

HM90i Hotmail English Lang.PopUp                                   HOTPOP         [***]                        [***]
--------------------------------------------------------------------------------------------------------------------------

HM99i Hotmail PopUnder (NoGif) 720x300                             HOTLBA         [***]                        [***]
--------------------------------------------------------------------------------------------------------------------------

MS27i MSN Front Page Small Banner                                  MSNBFP         [***]                        [***]
--------------------------------------------------------------------------------------------------------------------------

MS27i MSN Merchant Text Ad                                         MSNMER         [***]                        [***]
--------------------------------------------------------------------------------------------------------------------------

NB01i *Business                                                    NBCCOM         [***]                        [***]
--------------------------------------------------------------------------------------------------------------------------

NB01i *Frontpage                                                   NBCFPG         [***]                        [***]
--------------------------------------------------------------------------------------------------------------------------

NB01i *Health                                                      NBCHEA         [***]                        [***]
--------------------------------------------------------------------------------------------------------------------------

NB01i *Sports                                                      NBCSPT         [***]                        [***]
--------------------------------------------------------------------------------------------------------------------------

NB01i *TV News                                                     NBCONA         [***]                        [***]
--------------------------------------------------------------------------------------------------------------------------

NB01i *Weather                                                     NBCWEA         [***]                        [***]
--------------------------------------------------------------------------------------------------------------------------

NB10i Business A-Column Button (A)125x125                          NBCABS         [***]                        [***]
--------------------------------------------------------------------------------------------------------------------------

NB10i Health A-Column Button (A) 125x125                           NBCAHH         [***]                        [***]
--------------------------------------------------------------------------------------------------------------------------

NB10i News A-Column Button (A) 125x125                             NBCANS         [***]                        [***]
--------------------------------------------------------------------------------------------------------------------------

NB10i Sports A-Column Button (A) 125x125                           NBCASS         [***]                        [***]
--------------------------------------------------------------------------------------------------------------------------

NB10i Travel A-Column Button (A) 125x125                           NBCATL         [***]                        [***]
--------------------------------------------------------------------------------------------------------------------------

NB10i TV news A-Column Button (A) 125x125                          NBCATV         [***]                        [***]
--------------------------------------------------------------------------------------------------------------------------

NB45i Showcase Ad - Med. Sports 300x250                            NBCSMS         [***]                        [***]
--------------------------------------------------------------------------------------------------------------------------

NB45i Showcase Ad - Med. Travel 300x250                            NBCSMT         [***]                        [***]
</TABLE>

[***] Confidential Information

   Microsoft Confidential
   Page 16 of 20

<PAGE>

<TABLE>
<S>                                                                 <C>        <C>                               <C>
-------------------------------------------------------------------------------------------------------------------------

NB99i MSNBC PopUnder (NoGif) 720x300                                NBCLBA      [***]                            [***]
-------------------------------------------------------------------------------------------------------------------------

SL01i Slate Standard Banner                                         SLAGEN      [***]                            [***]
-------------------------------------------------------------------------------------------------------------------------

SL07i Business Section (A-Col) 120x240                              SLABUV      [***]                            [***]
-------------------------------------------------------------------------------------------------------------------------

SL07i Home Page Vertical Button (A-Col) 120x240                     SLAVAR      [***]                            [***]
-------------------------------------------------------------------------------------------------------------------------

SL07i News-Politics Section (A-Col) 120x240                         SLANPV      [***]                            [***]
-------------------------------------------------------------------------------------------------------------------------

SL90i Slate PopUp 250x250                                           SLAPOP      [***]                            [***]
-------------------------------------------------------------------------------------------------------------------------

WC01i WomenCentral ROS 468x60                                       MSNUND      [***]                            [***]
-------------------------------------------------------------------------------------------------------------------------

WC07i WomenCentral Beauty-Style 120x240                             WMCBSV      [***]                            [***]
-------------------------------------------------------------------------------------------------------------------------

WC07i WomenCentral First Person 120x240                             WMCFPV      [***]                            [***]
-------------------------------------------------------------------------------------------------------------------------

WC07i WomenCentral Fitness-Health 120x240                           WMCFHV      [***]                            [***]
-------------------------------------------------------------------------------------------------------------------------

WC07i WomenCentral Home-Food 120x240                                WMCHFV      [***]                            [***]
-------------------------------------------------------------------------------------------------------------------------

WC07i WomenCentral HomePage 120x240                                 WMCHPV      [***]                            [***]
-------------------------------------------------------------------------------------------------------------------------

WC07i WomenCentral Relationships 120x240                            WMCRVB      [***]                            [***]
-------------------------------------------------------------------------------------------------------------------------

WC07i WomenCentral Weddings 120x240                                 WMCWVB      [***]                            [***]
-------------------------------------------------------------------------------------------------------------------------

WC17i WomenCentral Beauty-Style 120x60                              WMCBSS      [***]                            [***]
-------------------------------------------------------------------------------------------------------------------------

WC17i WomenCentral First Person 120x60                              WMCHES      [***]                            [***]
-------------------------------------------------------------------------------------------------------------------------

WC17i WomenCentral Fitness-Health 120x60                            WMCFTS      [***]                            [***]
-------------------------------------------------------------------------------------------------------------------------

WC17i WomenCentral Home-Food 120x60                                 WMCHLS      [***]                            [***]
-------------------------------------------------------------------------------------------------------------------------

WC17i WomenCentral HomePage 120x60                                  WMCFPS      [***]                            [***]
-------------------------------------------------------------------------------------------------------------------------

WC17i WomenCentral Relationships 120x60                             WMCRES      [***]                            [***]
-------------------------------------------------------------------------------------------------------------------------

WC17i WomenCentral Weddings 120x60                                  WMCWDB      [***]                            [***]
-------------------------------------------------------------------------------------------------------------------------

WC20i WomenCentral Beauty-Style 120x30                              WMCSYH      [***]                            [***]
-------------------------------------------------------------------------------------------------------------------------

WC20i WomenCentral First Person 120x30                              WMCHLH      [***]                            [***]
-------------------------------------------------------------------------------------------------------------------------

WC20i WomenCentral Fitness-Health 120x30                            WMCFTH      [***]                            [***]
-------------------------------------------------------------------------------------------------------------------------

WC20i WomenCentral Home-Food 120x30                                 WMCHMH      [***]                            [***]
-------------------------------------------------------------------------------------------------------------------------

WC20i WomenCentral HomePage 120x30                                  WMCHPH      [***]                            [***]
-------------------------------------------------------------------------------------------------------------------------

WC20i WomenCentral Relationships 120x30                             WMCRLH      [***]                            [***]
-------------------------------------------------------------------------------------------------------------------------

WC20i WomenCentral Weddings 120x30                                  WMCWHB      [***]                            [***]
-------------------------------------------------------------------------------------------------------------------------

WC90i WomenCentral Pop-Up 250x250                                   WMCPOP      [***]                            [***]
-------------------------------------------------------------------------------------------------------------------------
</TABLE>

[***] Confidential Information

   Microsoft Confidential
   Page 17 of 20

<PAGE>

<TABLE>
<S>                                                                                <C>                       <C>
---------------------------------------------------------------------------------------------------------------------------
Subtotal of MSN Inventory                                                          [***]                            [***]
---------------------------------------------------------------------------------------------------------------------------
Content Integration within MSN
---------------------------------------------------------------------------------------------------------------------------
Search Featured Site                                                                                                [***]
---------------------------------------------------------------------------------------------------------------------------
Hotmail Web Courier
---------------------------------------------------------------------------------------------------------------------------
MSN Headline Module
---------------------------------------------------------------------------------------------------------------------------
Subtotal of premium inventory                                                                                       [***]
---------------------------------------------------------------------------------------------------------------------------
Content Integration within MSN
---------------------------------------------------------------------------------------------------------------------------
Women Central Minisite                                                                                              [***]
---------------------------------------------------------------------------------------------------------------------------
MSNBC Advertorial (Individual Placements below)                                                                     [***]
---------------------------------------------------------------------------------------------------------------------------

1) Co-Branded Banners promoting Advertorial MSNBC ROS                              [***]                            [***]
---------------------------------------------------------------------------------------------------------------------------

2) Banners MSNBC ROS                                                               [***]                            [***]
---------------------------------------------------------------------------------------------------------------------------

3) A-Column Ad- WebCourier Newsletters                                             [***]                            [***]
---------------------------------------------------------------------------------------------------------------------------

4) MSNBC Front Cover Banner (Lower Right)                                          [***]                            [***]
---------------------------------------------------------------------------------------------------------------------------
Subtotal of content integration                                                                                     [***]
---------------------------------------------------------------------------------------------------------------------------

Grand Total:                                                                       [***]                            [***]
---------------------------------------------------------------------------------------------------------------------------
Net CPM                                                                                                             [***]
                                                                                                          -----------------
Package Price                                                                                               $   3,361,468
---------------------------------------------------------------------------------------------------------------------------
</TABLE>

[***] Confidential Information

   Microsoft Confidential
   Page 18 of 20

<PAGE>

                                   EXHIBIT 2-B
                           WOMENCENTRAL SPECIFICATIONS

Microsoft Confidential
Page 19 of 20

<PAGE>

                                            [LOGO](TM)
                                     msn(TM)

                                  MSN Channels
                         Partner Service Level Agreement

--------------------------------------------------------------------------------
Last Revised Date:       Tuesday Jun. 04, 2002 at 10:13 AM
--------------------------------------------------------------------------------
Author:                  Deanna Herbert
--------------------------------------------------------------------------------
Document State:          Stable
--------------------------------------------------------------------------------

MSN SERVICE LEVEL AGREEMENT                                                  -1-

<PAGE>

Table of Contents

<TABLE>
<CAPTION>
<S>                                                                          <C>
1    Introduction.............................................................4

     1.1    Objective.........................................................4

2    Service availability.....................................................4

     2.1    Definition........................................................4

     2.2    Availability goals................................................4

     2.3    Measurement.......................................................4

         2.3.1 Sites to be monitored..........................................4

     2.4    Availability exceptions...........................................5

         2.4.1 Uncontrollable events..........................................5

         2.4.2 Planned downtime...............................................5

3    Operational standards....................................................5

     3.1    System management / operational support...........................5

     3.2    Platform compatibility............................................6

         3.2.1 Operating systems and browsers supported.......................6

4    Technical support and problem escalation.................................6

     4.1    Overview..........................................................6

     4.2    Priorities and response times.....................................7

         4.2.1 Priority level assignments and response time grid..............7

     4.3    Escalation procedures.............................................8

         4.3.1 Authorized personnel...........................................9

         4.3.2 Required escalation information................................9

         4.3.3 Escalation response............................................9

         4.3.4 Issue tracking.................................................9

         4.3.5 Actions upon closure...........................................9
</TABLE>

MSN SERVICE LEVEL AGREEMENT                                                  -2-

<PAGE>

         4.3.6 Escalation process diagram.................................   9

5    Content availability.................................................  10

     5.1    Content drops.................................................  10

     5.2    Day-to-day activities.........................................  10

     5.3    Escalation process............................................  10

     5.4    Scheduling....................................................  10

         5.4.1 Editorial calendars........................................  10

         5.4.2 Monthly Production Schedule................................  12

6    Reporting............................................................  12

     6.1    Sample Media Metrix Report....................................  12

7    Signatory page.......................................................  13

8    Appendix.............................................................  14

     8.1    Contacts......................................................  14

         8.1.1 MSN Contacts...............................................  14

         8.1.2 Partner Contacts...........................................  14

MSN SERVICE LEVEL AGREEMENT                                                -3-

<PAGE>

1 Introduction

1.1  Objective

The purpose of this document is to detail the service availability requirements,
operational standards, required escalation path, and content availability for
MSN Channel Partner Properties and Services.

2 Service availability

2.1  Definition

Service availability is defined as the percentage of uptime (out of 100%) for a
particular property or service. Uptime is defined as a service or property
performing with adequate response times, being free of content defects, and
allowing services to be utilized per product specifications.

2.2  Availability goals

The objective for the Properties and Services is to establish a record of
service availability, averaged over a monthly basis, of 99.5% for calendar month
(the "service availability"), subject to the exceptions listed under
"Availability exceptions". This objective permits sites to be unavailable a
maximum of 7.2 minutes per day, 50.4 minutes per week, or ~ 216 minutes per
calendar month. The purpose of this metric is to establish a baseline objective
that meets the parties' expectations.

In the event of any material deviation from the service availability objective,
The Partner shall take the steps described below under "Technical support and
problem escalation" to restore the level of service for the Properties or
Services to a fully operational condition.

In the event the Partner is not able to maintain the service availability
objective of 99.5%, then Microsoft shall take the appropriate steps to remedy
the situation. If applicable, penalties may apply.

2.3  Measurement

Microsoft will monitor the availability of the Services using appropriate
measurement tools. Service availability will be measured through third party
systems as well as Microsoft proprietary systems.

Microsoft will use third-party, industry-standard systems, such as Keynote, as
well as internal Microsoft tools, such as Sitescope, developed by Freshwater
Software, to measure and monitor quality of service. Microsoft uses Sitescope to
measure availability of its own sites, including the MSN network. Measurements
taken at border routers of the MSN data center will be used for calculating
service levels. Availability data from the point of view of the end user is also
collected, but this is for informational purposes only and not to be used for
establishing service availability. MSN test teams may also perform verification
of service availability.

2.3.1 Sites to be monitored

The Partner Services listed below will be sampled at two (2) minute intervals.
The URLs listed should be a relative sampling of main domain and content feed
URLs that will reflect overall health of the service.

MSN SERVICE LEVEL AGREEMENT                                                -4-

<PAGE>

Monitored Sites
--------------------------------------------------------------------------------
URL                    Site Description (including            Monitoring Method
                       type--e.g., drop location or main
                       domain)
--------------------------------------------------------------------------------
www.ediets.com
--------------         Ediets core site                       Keynote
--------------------------------------------------------------------------------

2.4  Availability exceptions

2.4.1    Uncontrollable events

Unlike traditional service organizations that provide service level agreements,
Internet services like the Properties and Services are routinely impacted by
events that the Partner has no control over and which events may negatively
impact the service availability. Accordingly, the occurrence of any one of the
following events shall constitute an exception to the Partner's obligation to
meet the service availability objective specified above:

     1.  An outage of services that is due to the failure or non-performance of
         any equipment, connections, or services that are not under the direct
         control or supervision of the Partner; such services include
         peer-to-peer Internet service provider routing, third-party datacenter
         failure, etc.

     2.  An outage of services caused by a third party not under the direct
         control or supervision of the Partner, including, but not limited to,
         the Partner or its employees, contractors, or subcontractors.

     3.  An outage of services caused by an event that is beyond the reasonable
         control of the Partner (e.g., acts of God, acts of any government in
         its sovereign or contractual capacity, fires, floods, snowstorms,
         earthquakes, epidemics, quarantine restrictions, wars, riots,
         rebellions, insurrections or civil unrest, strikes or other work
         stoppages, hacker attacks such as "denial of service").

2.4.2    Planned downtime

An outage caused by scheduled and agreed-upon routine or preventive maintenance,
unless such maintenance is performed outside of the specified time that has been
mutually agreed to by the Parties, shall constitute an exception to the
Partner's obligation to meet the service availability objective specified above.
Such incidences require written notification to Microsoft of no less than 10
working days prior to the outage. The outage notification should detail work to
be done, the date and time for maintenance to be performed, expected length of
downtime, and contingency plan details, along with trigger points for when the
contingency plan will be applied. Should the downtime exceed the length provided
in the notification, this will be counted as non-planned downtime and will be
deducted from site availability for the calendar month. The Partner shall
attempt to perform such routine or preventative maintenance during times that
will minimize impact to end-users.

3    Operational standards

3.1      System management/operational support

Partner operations will maintain a high degree of operational support. The
services that comprise operational support include monitoring the software that
provides the Properties and Services, managing the computers that run that
software, and managing the key infrastructure pieces such as the networking
architecture and internet connectivity that are required to allow customers to
reach and utilize the Properties and Services.

MSN SERVICE LEVEL AGREEMENT                                                  -5-

<PAGE>

3.2    Platform compatibility

Partner Properties and Services shall meet the operating system and browser
support requirements of MSN, detailed below. These requirements are subject to
change as new software becomes available.

3.2.1  Operating systems and browsers supported

<TABLE>
<CAPTION>
                          IE 3x      IE 4x     IE 5.01    IE 5.5      IE 6x        MSN       Nav 4x     Nav 6x
                                                                                Explorer
<S>                       <c>        <c>       <c>        <c>         <C>       <c>          <c>         <c>
Windows XP Pro             --         --         --         --          1          --         --         --
Windows 2000 Pro sp2       --          3          2          1          2           2          3          2
Windows NT sp6              3          2          2          2          3          --          3          3
Windows 98                 --          2          3         --         --          --          1         --
Windows 98 SE              --          3          1         --         --           1         --          2
Windows Millenium          --          3          3          3          3          --         --         --
Windows 95                  2          2          2         --         --          --          2          3
Windows 3x                  3          3          3         --         --          --         --         --
Windows CE                 --          3         --         --         --          --         --         --
Web TV                      1         --         --         --         --          --         --         --
-----------------------------------------------------------------------------------------------------------------
Macintosh OS 8.5           --         --          3         --         --          --          3         --
Macintosh OS 9x             3          3          2         --         --          --          2          3
</TABLE>

Notes:

Priority 1 - We will always test live site updates and project work on these
versions. These versions should be fully supported.
Priority 2 - We will always test project work on these versions prior to
release.
Priority 3 - We will test project work on these versions prior to release, if
time permits.

4    Technical support and problem escalation

4.1  Overview

This section describes the Partner's process for handling technical support
requests. The process is comprised of two key elements:
     1.   Priorities and response times (section 4.2), including level
          definitions and assignment
     2.   Escalation procedures (section 4.3)

The Partner shall cooperate with Microsoft in order to facilitate the Partner's
provision of the Properties and Services on a continuous basis. For example (and
by way of illustration and not limitation), Microsoft shall:

     1.   Promptly notify the Partner (as described below) when it believes that
          a problem requiring technical support has arisen.

     2.   Cooperate with the Partner with respect to troubleshooting and/or
          resolution of the problem.

     3.   Furnish the Partner with such relevant information as the Partner may
          reasonably require in order to provide technical support.

MSN SERVICE LEVEL AGREEMENT                                                  -6-

<PAGE>

4.2  Priorities and response times

With Microsoft's input, the Partner will assign each technical support request a
priority level based upon the criteria listed below.

If the Partner discovers problems of immediate or high priority, the Partner
will notify MSN Channel Alert (chanaler@microsoft.com, cc:
mspager@microsoft.com) as soon as possible using commercially reasonable
efforts. See the appendix for additional contact information.

4.2.1    Priority level assignments and response time grid

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
Priority         Criteria and examples                                               Initial         Update       Resolution
                                                                                     response        interval     goal
--------------------------------------------------------------------------------------------------------------------------------
<S>              <C>                                                                 <C>             <C>          <C>
Immediate        Criteria:                                                           60 minutes or   Every 2      4 hours
                 .  Any Property or Service is unavailable                           less            hours
                 .  Service malfunction is causing serious disruption
                    to the normal operation capabilities as seen by
                    Microsoft MSN users and/or Microsoft's Operations
                    Team.

                 Examples:
                 .  Web page is unavailable
                 .  Significant functionality on one of the web sites
                    is unavailable due to broken links or otherwise
                    malformed web content.
-------------------------------------------------------------------------------------------------------------------------------
High             Criteria:                                                           60 minutes or   Every 4      8 hours
                 .  Obvious and significant flaw in quality of any                   less            hours
                    Property or Service apparent to 50% or more of
                    Microsoft/MSN users.
                 .  Obvious and significant flaw in quality of Property
                    or Service that produces errors or degrades
                    performance of Microsoft ad serving engine

                 Examples:
                 .  Content feeds are frequently unavailable
                 .  Content feeds are continually errant
                 .  Partner URL is incorrectly coded for serving
                    Microsoft-served ads and results in scripting
                    errors that degrade the performance/availability of
                    ad servers.
-------------------------------------------------------------------------------------------------------------------------------
Normal           Criterion:                                                          1 business      Weekly       1 week or
                 .  Problem with any Property or Service that is                     day or less                  less
                    inconvenient but can be worked around or affects
                    less than 25% of Microsoft/MSN users.

                 Examples:
                 .  A particular piece of content is unavailable.
-------------------------------------------------------------------------------------------------------------------------------
Project          Criterion:                                                          1 business      Weekly       Next product
                 .  System enhancement or improvement requests that                  day or less                  release
                    can be planned into a normal release cycle.
                    These requests
-------------------------------------------------------------------------------------------------------------------------------
</TABLE>

MSN SERVICE LEVEL AGREEMENT                                                  -7-

<PAGE>

<TABLE>
--------------------------------------------------------------------------------------------------------------------------------
<S>              <C>
                      are presented to program management for assessment and
                      prioritization into the release schedule.
                 .    Partner system exhibits continual and persistent failure
                      that doesn't have a direct impact upon 25% or more of MSN
                      users; once identified, requires Partner to engineer a
                      solution and implement it within a mutually agreed-upon
                      timeframe.

                 Examples:
                 .    Partner continually misses content feed deadlines.
                 .    Request for new information service that is not part of a
                      current service.
                 .    Request for a new report type or report format.
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>

If a resolution goal is not met, an advisory will be provided to Microsoft's
contact point. In "Immediate" priority situations where resolution goals are not
met, the Partner will provide contact information to extend the escalation path
up through executive management.

4.2.1.1   Definitions

4.2.1.1.1 Initial response
           Initial response is defined as the first contact provided to
           Microsoft after the Authorized Microsoft Representative has submitted
           a service request through the above-mentioned escalation procedure.
           This response may be in the form of an email message, instant
           message, phone call, or personal acknowledgement and will normally
           contain the service request number for tracking purposes. Initial
           response should be directed to MSN Channel Alert
           (chanaler@microsoft.com, cc: mspager@microsoft.com). See appendix for
           additional contact information.

4.2.1.1.2 Update interval
           The update interval is defined as any communication between the
           Partner support or product team and Microsoft where the status and
           plan of action for the service request is communicated. The purpose
           of these updates is to keep Microsoft informed of the progress being
           made to resolve the problem reported through the service request, to
           gather additional details for support or troubleshooting purposes, or
           to communicate a resolution of the problem to Microsoft.

4.2.1.1.3 Resolution goal
           The resolution goal is defined as the time period within which
           problem resolution should be attained.

4.3     Escalation procedures

In the event that Microsoft discovers a problem with any of the Properties and
Services, the following procedures should be followed for problem resolution and
call escalation.

4.3.1   Authorized personnel

Microsoft shall provide Partner with a list of authorized personnel (the
"Authorized Microsoft Representative(s)") who are authorized to contact the
Partner, which person(s) shall have the technical capability and authority to
make appropriate decisions with respect to matters involving

MSN SERVICE LEVEL AGREEMENT                                                 -8-

<PAGE>

the Partner. Microsoft shall be responsible for providing the Partner with
updated information, as necessary, regarding such authorized personnel. The
Partner shall have no obligation to take any action based upon a report from any
person purporting to represent Microsoft unless such person is an Authorized
Microsoft Representative and can provide sufficient information (e.g., password)
to verify his or her identity. See appendix for additional contact information.

4.3.2   Required escalation information

In order to minimize confusion, maintain security, and streamline the
communications between Microsoft and the Partner, when reporting a new problem
or following up on an existing problem, the Microsoft Authorized Representative
shall provide the Partner contact with the following information:

    1.  The company name and particular service(s) that is (are) experiencing a
        problem

    2.  The name of Authorized Microsoft Representative who is making the report

    3.  The pre-arranged, mutually-greed-upon password (initially "xxxxxx") for
        verification

    4.  An E-mail notification address or alias to facilitate communication

    5.  All relevant detail information regarding the problem

    6.  Other pertinent contact information, which shall include but not be
        limited to, a telephone number and/or pager number for the Authorized
        Microsoft Representative.

4.3.3   Escalation response

In response to a problem escalation, the Partner representative will:

    1.  Provide the Authorized Microsoft Representative with a problem tracking
        number.

    2.  Work through the Partner-established escalation process to facilitate
        timely resolution of the problem, per "Priority and response time" grid,
        above.

    3.  Provide the Authorized Microsoft Representative with updated information
        specific to the problem, per "Priority and response time" grid, above.

It should be understood that the Authorized Microsoft Representative does not
have the authority to instruct the Partner to perform any direct action
concerning any equipment, software or network that constitute the Partner
Service.

4.3.4   Issue tracking

The Partner should reference the problem tracking number in all related
communications.

4.3.5   Actions upon closure

Upon issue closure, the Partner shall submit the issue back to MSN Channel Alert
(chanaler@microsoft.com, cc:mspager@Microsoft.com) for verification. The problem
should not be considered closed until the fix has been verified.

4.3.6   Escalation process diagram

MSN SERVICE LEVEL AGREEMENT                                                  -9-

<PAGE>

5      Content availability

5.1     Content drops

Content drops will occur on a regular schedule as agreed to by MSN and the
Partner. Mail should be sent immediately after a drop is completed. If a drop is
going to be late, notification of the circumstances and estimated delay should
also be sent via mail to the same people. This drop will include all links and
correct URLs, graphics, and other appropriate information as listed in the
monthly editorial calendars. Please follow the image guidelines and test
guidelines appropriately.

5.2     Day-to-day activities

MSN Channels continually checks sites for appropriate updates and links. If
there is a problem with a partner site, the appropriate site will be notified
and the escalation path put into effect. Additional problems with content can
range from incorrect URL's, to graphics and layout issues, to missing pages. See
section 4.0 for Technical Support and Problem Escalation.

Daily promotions help drive traffic to partner sites. Each day the MSN.com home
page team asks for themes and links that have to do with current events or
popular topic areas. This requires links from partner sites to be turned around
in a short period of time. Mail is sent out a week in advance with themes, and
day-to-day new themes are introduced. In the case of advance theme mail, links
should be returned no later than a day ahead of the planned theme. In the case
of a last minute daily theme, links should be returned by noon PST.

5.3     Escalation process

See Technical Support and Problem Escalation section, above. Most
content-related issues will fall under "Normal" priority.

5.4     Scheduling

5.4.1     Editorial calendars

Editorial calendars are due on the 9/th/ of the month. This should reflect all
content that will be live, and any content that will be available for a limited
amount of time, for the following month. Promotional opportunities and special
events should be called out in red. URLs for all content should be available,
and in the case where something is not live, a live date should be included. All
URLs should be scrubbed and ready to go or should include live dates.

Each calendar should represent one month only. All editorial calendar URLs
should reflect the MSN address: for example: careers.msn.com. No changes to the
calendar will be accepted after the deadline 9/th/ of the month, due to the
dependencies of promotional submissions.

MSN SERVICE LEVEL AGREEMENT                                                 -10-

<PAGE>

5.4.1.1  Promotional Activities

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
Promotion                                 Partner deliverables

------------------------------------------------------------------------------------------------------------
<S>                                       <C>
Info Pane (IP) promotions: the IP is      Editorial calendar URLs, daily theme URLs, event URLs,
the top panel of the MSN.com              and any appropriate bulletin board URLs.
page. This area provides headlines
from around the MSN.com
network. It is the most trafficked
part of the MSN.com network.

------------------------------------------------------------------------------------------------------------
Editorial packages: periodically,         Appropriate story, event, and bulletin board URLs.
special packages are created for
holidays, life events, etc. Packages
can run on a single page or part of
a page.

------------------------------------------------------------------------------------------------------------
In-house inventory: MSN runs             Editorial calendars due on the 9/th/ of the month with all
banner ads and promotions within         URLs in place and promotions highlighted.
the MSN network. Allocations vary
from month to month.

------------------------------------------------------------------------------------------------------------
Sidebar promotions: these editorial       Appropriate story, event, and bulletin board URLs.
packages run in the right hand side
of the msn.com network pages.
They are seasonal or used for
special promotions.

------------------------------------------------------------------------------------------------------------
Personalization, odule: this area         Editorial calendar URLs updated weekly to the
provides three headlines to MSN.com       personalization team.
users who choose to personalize their
MSN.com page.

------------------------------------------------------------------------------------------------------------
MSN.com properties: these are the other   Appropriate promotional and evergreen story URLs.
channels within the MSN.com network that
run promotions and use evergreen links
from around the network.

------------------------------------------------------------------------------------------------------------
Other Microsoft properties: these         Appropriate evergreen story URLs, streaming content for
include Microsoft.com properties,         live events.
Hotmail, MSN TV, MSNBC, Windows Media

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

MSN SERVICE LEVEL AGREEMENT                                                 -11-

<PAGE>

5.4.2    Monthly Production Schedule

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------
Monthly            Promotions schedule                      Content development
schedule
----------------------------------------------------------------------------------------------
<S>                <C>                                      <C>
Daily              Info Pane headlines submitted for        Review page for pages for
                   daily themes and current editorial.      mistakes or errors, daily
                   Send themes to editorial teams for       triage with tech/editorial
                   appropriate links                        teams if necessary.
----------------------------------------------------------------------------------------------
1/st/ week of      Run numbers on users from                Study numbers for
the Month          previous month, send to sites            correlations between hits and
                   Check house ad inventory from            popular stories.
                   previous month                           Work with editorial teams to
                                                            find more links
----------------------------------------------------------------------------------------------
9/th/ of the       Review editorial calendar for            Rewrite headlines, choose
Month              promos                                   features, review live events
----------------------------------------------------------------------------------------------
10/th/ of the      Submit promos to In-house                Review editorial calendar,
month              marketing team.                          make final pass on priorities
----------------------------------------------------------------------------------------------
3/rd/ Thursday     Meet with editorial promo team to        Select content for upcoming
of the Month       select promos for next theme             themes. Work with editorial
                   Send email to editorial teams for        teams to fill out theme stories
                   input
----------------------------------------------------------------------------------------------
Last week of the   Check links on vertical sites, update    Check to see if all editorial
month              Select links for editorial packages      content links are live for
                   Send out reminders for editorial         upcoming packages
                   calendars
----------------------------------------------------------------------------------------------
</TABLE>

6     Reporting

General reporting should include: MSN will provide unique users, page views, and
top ten IP headlines the first week of every month. These will come from our
internal IDSS tool. We expect partners to provide the same information by the
7/th/ of every month using internal tools and Media Metrix.

6.1   Sample Media Metrix Report

The attached spreadsheet is an example of Media Metrix reports currently
received.

     [ ]
GreetingsMediaMetri
    x.xls

MSN SERVICE LEVEL AGREEMENT                                                 -12-

<PAGE>

7   Signatory page

This signatory sheet acknowledges that the undersigned accept this Service Level
Agreement, effective on the service launch date.

Approval Signatures:

-----------------------------------         -----------------------------------
Name                      Date              Name                    Date
Title                                       Title
Company                                     Company

-----------------------------------         -----------------------------------
Name                      Date              Name                    Date
Title                                       Title
Company                                     Company

-----------------------------------         -----------------------------------
Name                      Date              Name                    Date
Title                                       Title
Company                                     Company

-----------------------------------         -----------------------------------
Name                      Date              Name                    Date
Title                                       Title
Company                                     Company

MSN SERVICE LEVEL AGREEMENT                                                 -13-

<PAGE>

8        Appendix

8.1      Contacts

8.1.1    MSN Contacts

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
Contact        Title               Name             Email                    Phone            Pager
Type
-------------------------------------------------------------------------------------------------------------
<S>            <C>                 <C>              <C>                      <C>              <C>
Primary        MSN Channel Alert   Channel Alert    chanaler@microsoft.com   Use pager        1(800)759-8888
                                                    ----------------------
(24 X 7)                                            & cc:                                     Pin# 1071444
                                                    mspager@microsoft.com
-------------------------------------------------------------------------------------------------------------
Additional     Program Manager     Deanna Herbert   deannada@microsoft.com   425 706-0123
                                                    ----------------------
-------------------------------------------------------------------------------------------------------------
Additional     Channel Manager     Kim Lowe         klowe@microsoft.com      425 705-4744
                                                    -------------------
-------------------------------------------------------------------------------------------------------------
</TABLE>

8.1.2    Partner Contacts

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
Contact Type         Title            Name          Email                Phone             Pager
-------------------------------------------------------------------------------------------------------------
<S>                  <C>              <C>           <C>                  <C>               <C>
Primary
-------------------------------------------------------------------------------------------------------------
Additional
-------------------------------------------------------------------------------------------------------------
Additional
-------------------------------------------------------------------------------------------------------------
</TABLE>

MSN SERVICE LEVEL AGREEMENT                                                 -14-<PAGE>
                                                                    EXHIBIT 10.1

                            ATRIX LABORATORIES, INC.

                      EXECUTIVE DEFERRED COMPENSATION PLAN

                                   ----------

                             Effective June 3, 2002

<PAGE>

                            ATRIX LABORATORIES, INC.
                      EXECUTIVE DEFERRED COMPENSATION PLAN

                                TABLE OF CONTENTS

<Table>
<Caption>
                                                                                                          Page

<S>                                                                                                       <C>
1.  PURPOSE..............................................................................................   1

2.  DEFINITIONS AND CAPITALIZED TERMS....................................................................   1

3.  ELIGIBILITY..........................................................................................   4

4.  DEFERRAL OF COMPENSATION.............................................................................   4

       4.1      Election to Defer........................................................................   4

       4.2      Date of Deferral.........................................................................   4

       4.3      Multiple Elections.......................................................................   5

       4.4      Annual Elections.........................................................................   5

       4.5      No Hardship Adjustments..................................................................   5

5.  DEFERRED COMPENSATION ACCOUNTS.......................................................................   5

       5.1      Maintenance of Accounts..................................................................   5

       5.2      Investment Elections.....................................................................   6

       5.3      Investment Earnings or Losses............................................................   6

       5.4      Investment of Unpaid Balances............................................................   7

       5.5      Company's General Assets.................................................................   7

6.  EFFECT ON EMPLOYEE BENEFITS..........................................................................   7

7.  PAYMENT OF DEFERRED COMPENSATION ACCOUNTS............................................................   7

       7.1      Income Tax Obligations...................................................................   7

       7.2      In-Service Withdrawals/Distributions.....................................................   8

       7.3      Termination of Employment................................................................   8

       7.4      Disability...............................................................................   9

       7.5      Retirement...............................................................................   9

       7.6      Death Prior to Commencement of Distributions.............................................   9

       7.7      Death After Commencement of Distributions................................................   9

       7.8      Withholding and Other Tax Consequences...................................................  10
</Table>

                                       i
<PAGE>

<Table>
<S>                                                                                                        <C>
8.  FUNDING..............................................................................................  10

9.  NON-ALIENATION OF BENEFITS...........................................................................  10

10. LIMITATION OF RIGHTS.................................................................................  10

11. BEST PAYMENTS........................................................................................  11

12. NOTICE UNDER WARN....................................................................................  11

13. AMENDMENT OR TERMINATION OF THE PLAN.................................................................  11

14. ADMINISTRATIVE PROCEDURES AND DISPUTE RESOLUTION.....................................................  12

       14.1     Plan Administrator.......................................................................  12

       14.2     Plan Administrator Organization and Procedures...........................................  12

       14.3     Administrative Authority.................................................................  13

       14.4     Expenses.................................................................................  13

       14.5     Insurance................................................................................  13

       14.6     Claims Procedure.........................................................................  13

       14.7     Appeal Procedures........................................................................  14

       14.8     Arbitration..............................................................................  14

       14.9     Notices..................................................................................  15

       14.10    Indemnification..........................................................................  15

15. MISCELLANEOUS........................................................................................  16

       15.1     Alternative Acts and Times...............................................................  16

       15.2     Masculine and Feminine, Singular and Plural..............................................  16

       15.3     Governing Law and Severability...........................................................  16

       15.4     Facility of Payment......................................................................  16

       15.5     Correction of Errors.....................................................................  17

       15.6     Missing Persons..........................................................................  17

       15.7     Status of Participants...................................................................  17
</Table>

                                       ii
<PAGE>

                            ATRIX LABORATORIES, INC.
                      EXECUTIVE DEFERRED COMPENSATION PLAN

     The Board of Directors of Atrix Laboratories, Inc., a Delaware corporation,
has adopted this Executive Deferred Compensation Plan effective June 3, 2002.

1.   PURPOSE

         The primary purpose of the Plan is to provide deferred compensation to
a select group of management and highly compensated employees through an
unfunded "top hat" arrangement exempt from the fiduciary, funding, vesting, and
plan termination insurance provisions of Title I and Title IV of the Employee
Retirement Income Security Act of 1974, as amended from time to time.

2.   DEFINITIONS AND CAPITALIZED TERMS

         The capitalized terms, set forth in alphabetical order defined below,
are used throughout the Plan.

               (a) "Account" refers to the bookkeeping entries established and
maintained by the Plan Administrator for the purpose of recording (i) the
amounts of Compensation deferred by an Employee under the Plan, (ii) any
investment earnings or losses with respect to those amounts, and (iii) any
distributions to an Employee or Beneficiary.

               (b) "Affiliate" refers to any other entity controlled by, in
control of, or under common control with the Company.

               (c) "Beneficiary" refers to the person or entity selected to
receive any portion of an Employee's Account that has not been distributed from
the Plan at the time of the Employee's death. Such designation shall be on a
Beneficiary Designation Form in the form set forth in Exhibit C or otherwise
approved by the Plan Administrator.

               (d) "Board" or "Board of Directors" refers to the Board of
Directors of the Company.

               (e) "Change in Control" refers to a change in ownership or
control of the Company effected through either of the following transactions:

                    (i) a merger or consolidation in which the Company is not
the surviving entity, except for a transaction the principal purpose of which is
to change the state in which the Company is incorporated;

                    (ii) the sale, transfer or other disposition of all or
substantially all of the assets of the Company (including the capital stock of
the Company's subsidiary corporations);

                                       1
<PAGE>

                    (iii) the complete liquidation or dissolution of the
Company;

                    (iv) any reverse merger in which the Company is the
surviving entity but in which securities possessing more than forty percent
(40%) of the total combined voting power of the Company's outstanding securities
are transferred to a person or persons different from those who held such
securities immediately prior to such merger;

                    (v) the direct or indirect acquisition by any person or
related group of persons (other than an acquisition from or by the Company or by
a Company-sponsored employee benefit plan or by a person that directly or
indirectly controls, is controlled by, or is under common control with, the
Company) of beneficial ownership (within the meaning of Rule 13d-3 of the
Exchange Act) of securities possessing more than forty percent (40%) of the
total combined voting power of the Company's outstanding securities; or

                    (vi) a change in the composition of the Board over a period
of thirty-six (36) months or less such that a majority of the Board members
(rounded up to the next whole number) ceases to be comprised of individuals who
are Continuing Directors.

               (f) "Code" refers to the Internal Revenue Code of 1986, as
amended from time to time.

               (g) "Company," "Corporation" or "Employer" refers to Atrix
Laboratories, Inc., a Delaware corporation, and all subsidiary corporations.

               (h) "Compensation" refers to an Employee's gross salary,
including any commissions, bonuses or awards, payable by the Company after an
Employee first becomes eligible to participate in the Plan and during the period
through which such participation continues.

               (i) "Continuing Directors" means members of the Board who either
(i) have been Board members continuously for a period of at least thirty-six
(36) months or (ii) have been Board members for less than thirty-six (36) months
and were elected or nominated for election as Board members by at least a
majority of the Board members described in clause (i) who were still in office
at the time such election or nomination was approved by the Board.

               (j) "Deferred Bonus" means a bonus from the Company to an
eligible Employee for a Plan Year that is in addition to the Employee's
Compensation, but which shall be treated for all purposes of the Plan as
Compensation deferred by the eligible Employee under the Plan.

               (k) "Disabled" or "Disability" refers to a physical or mental
condition of an Employee which (i) occurs after an Employee first defers
Compensation under the Plan, (ii) results from an injury, disease or disorder,
and (iii) renders the Employee totally and permanently incapable of continuing
in his or her customary employment with the Company. In determining whether an
Employee is disabled, the Plan Administrator may rely upon the conclusions of
any insurance carrier that has issued a policy of disability income insurance
covering the Employee or upon the conclusions of any physician acceptable to the
Plan Administrator. An Employee automatically will satisfy the requirements
under the Plan, with respect to submission of evidence of disability, throughout
the period that he or she remains qualified for Social Security disability
benefits. Any Employee who believes

                                       2
<PAGE>

that he or she is entitled to any advantage, benefit, or other consideration
under the Plan as a result of being Disabled shall apply to the Plan
Administrator for such consideration and shall provide any evidence of
Disability which the Plan Administrator in its discretion may request in a
manner consistent with the Americans with Disabilities Act of 1990, as amended,
and other relevant laws.

               (l) "Effective Date" refers to June 3, 2002 with respect to
Compensation first earned, determined or payable after that date.

               (m) "Employee" refers to any employee, within the meaning of
Section 3121(d) of the Code, who is highly compensated or who is a member of
management selected by the Plan Administrator to participate in the Plan. The
Plan Administrator shall determine whether an employee is to be considered
highly compensated. Where the Plan Administrator considers appropriate in
applying the provisions of the Plan, the term Employee shall include only
persons who are Participants or Inactive Participants under the Plan.

               (n) "ERISA" refers to the Employee Retirement Income Security Act
of 1974, as amended from time to time.

               (o) "Hardship" refers to an Employee's immediate and heavy
financial need caused by an unforeseeable emergency, as described in Treasury
Regulations Section 1.457-2(h)(4) and (5). In general, but without limitation,
the Plan Administrator shall approve a Hardship withdrawal from an Employee's
Account if the reduction does not exceed the amount needed to pay for the
following unreimbursed expenses: (i) medical care expenses defined in Code
Section 213(d) and incurred (or to be incurred) during the calendar year by the
Employee, or his or her spouse or dependents (as described in Code Section 152)
as a result of a sudden or unexpected illness or accident; (ii) loss of an
Employee's property as a result of a casualty or other extraordinary,
unforeseeable circumstances attributable to forces beyond the Employee's
control; and (iii) other costs recognized by the Plan Administrator to pose an
immediate and heavy financial need on the Employee as a result of an
unforeseeable emergency or other factors beyond an Employee's control.

               (p) "Inactive Participant" refers to an Employee who deferred
Compensation under the Plan during a previous Plan Year but who does not defer
any Compensation payable during the current Plan Year.

               (q) "Participant" refers to an eligible Employee who elects to
defer under the Plan part or all of his or her Compensation payable during the
current Plan Year or who receives a Deferred Bonus.

               (r) "Plan" refers to this Atrix Laboratories, Inc. Executive
Deferred Compensation Plan

               (s) "Plan Administrator" refers to the Board, a committee of the
Board, or one or more officers of the Company appointed by the Board to
administer the Plan.

               (t) "Plan Year" refers to the period of 12 consecutive months
commencing on the first day of January of each year. The initial plan year shall
commence on the Effective Date of the Plan and end on the final day of December.

                                       3
<PAGE>

               (u) "Qualified Plan" refers to the Company's tax qualified
individual account cash or deferred compensation plan subject to the limits
imposed by Code Sections 401(a)(4), 401(k), 401(m), 402(g) and 415.

               (v) "Service" and "Years of Service" have the meanings specified
in Code Section 411(a)(4) and (5)(A) and the regulations thereunder.

               (w) "Termination of Employment" refers to an Employee's (i)
separation from service with the Company, (ii) refusal or failure to return to
work within three (3) working days after the date requested by the Company, or
(iii) failure to return to work at the conclusion of a leave of absence. This
definition does not imply retirement from employment.

3.   ELIGIBILITY

         The Plan Administrator may, from time to time, designate by name those
Employees of the Company who are eligible to participate in the Plan for one or
more Plan Years and the date upon which each such Employee's participation may
commence. All designated Employees shall be notified by the Plan Administrator
of their eligibility to participate. An Employee shall not be eligible to
participate in the Plan during the Plan Year immediately following the Plan Year
in which the Employee receives a Hardship withdrawal from the Plan. The
effective date of any such ineligibility under the preceding two sentences shall
be the first day of the Plan Year coinciding with or next following the date on
which the Plan Administrator provides the Employee with written notice of
revocation of eligibility. An Employee's eligibility to participate in the Plan
does not confer upon the Employee any right to any award, bonus, Deferred Bonus
or other remuneration of any kind.

4.   DEFERRAL OF COMPENSATION

     4.1 Election to Defer

               An Employee who is eligible to participate in the Plan may elect
to defer the receipt of Compensation by completing an Election of Deferral Form
in the form set forth in Exhibit A (the "Election Deferral Form") or otherwise
approved by the Plan Administrator. Pursuant to the Election of Deferral Form,
an eligible Employee may elect to defer any fixed dollar amount of his or her
Compensation up to the whole thereof (reduced by any amounts of tax that must be
withheld from such Compensation). In addition to any Compensation deferred
pursuant to an election on the Election of Deferral Form, the Plan
Administrator, in its sole discretion, may authorize a Deferred Bonus for an
eligible Employee for any Plan Year(s) that is in addition to the Employee's
Compensation, but which shall be treated for all purposes of the Plan as
Compensation deferred under the Plan.

     4.2 Date of Deferral

               An eligible Employee must submit his or her Election of Deferral
Form to the Plan Administrator no later than the last day of the deferral
election period. The last day of the deferral election period shall be (a) the
last day preceding the Plan Year in which the eligible Employee will

                                       4
<PAGE>

render the services for which he or she will receive any amount of the
Compensation payable to the Employee during that year or (b) in the first year
in which the Company implements the Plan or in which an Employee first becomes
eligible to participate, the Employee may make his or her election within the
first 30 days after the later of (i) the date the Plan becomes effective or (ii)
the date the Employee becomes eligible to participate.

     4.3 Multiple Elections

               An election to defer Compensation shall be effective on the date
an eligible Employee delivers a completed Election of Deferral Form to the Plan
Administrator; provided, however, that, if the eligible Employee delivers
another properly completed Election of Deferral Form to the Plan Administrator
prior to the close of the deferral election period described in Section 4.2, the
deferral election on the form bearing the latest date shall control. After the
last day of the election period, the controlling election made prior to the
close of the period shall be irrevocable.

     4.4 Annual Elections

               In order to defer a different portion of Compensation earned in
any Plan Year, an eligible Employee must submit at least one completed Election
of Deferral Form during the Plan Year immediately preceding the start of the
subsequent Plan Year during which the Employee wishes to have the revised
deferral election apply. If an Employee fails to make such a submission, the
Employee will be deemed to have elected to continue deferring the same amount of
Compensation that the Employee deferred in the preceding Plan Year.

     4.5 No Hardship Adjustments

               After an annual election has taken effect for any Plan Year, a
Participant may not increase or decrease the amount of Compensation to be
deferred during that Plan Year; except that an Employee has the option to cease
all deferrals under the Plan during the Plan Year if such cessation would
relieve the Employee of one or more Hardships without any Hardship withdrawal
under Section 7.2(a) of the Plan. If a Hardship withdrawal is made during a Plan
Year under Section 7.2(a) of the Plan, then deferral of the Employee's
Compensation under the Plan shall automatically cease during that Plan Year and
the Plan Year immediately following the Plan Year in which the Employee receives
the Hardship withdrawal.

5.   DEFERRED COMPENSATION ACCOUNTS

     5.1 Maintenance of Accounts

               The Plan Administrator shall maintain one or more Accounts with
respect to any Compensation deferred by an eligible Employee under Article 4
above. The Plan Administrator shall credit the Account with the full amount of
Compensation deferred in any monthly period. If the Compensation deferred is
subject to federal or state employment taxes (e.g., taxes under the Federal
Insurance Contributions Act or Federal Unemployment Tax Act), said taxes shall
be withheld and deducted from a portion of the Employee's Compensation not
deferred under the Plan or shall reduce the amount of Compensation to be
deferred if necessary. A Participant or Inactive Participant shall be

                                       5
<PAGE>

fully vested at all times in amounts deferred under Article 4 above, as adjusted
for any investment earnings or loss accruals, or distributions as described
below.

     5.2 Investment Elections

               In accordance with rules, procedures and options established by
the Plan Administrator, a Participant, Inactive Participant or Beneficiary shall
have the right to direct the investment of his or her Account in one or more
mutual funds that have been approved by the Plan Administrator for this purpose.
A Participant, Inactive Participant or Beneficiary shall direct the investment
of his or her Account by submitting to the Plan Administrator a properly
completed and executed Investment Direction Form, in the form set forth in
Exhibit B (the "Investment Direction Form") or otherwise approved by the Plan
Administrator. Although the Plan Administrator shall have the obligation to
follow such investment directions, the Plan Administrator, in its sole
discretion, may satisfy its obligation from time to time in one or both of the
following ways. First, the Plan Administrator may invest assets allocable to the
Participant's, Inactive Participant's or Beneficiary's Account in the specific
investments, in the specific amounts and for the specific periods directed by
the Participant, Inactive Participant or Beneficiary; and the Plan Administrator
must credit or charge such Account with the earnings or losses resulting from
such investments. Second, the Plan Administrator may invest assets allocable to
the Participant's, Inactive Participant's or Beneficiary's Account in any
manner, in any amount and for any period of time which the Plan Administrator in
its sole discretion may select; but the Plan Administrator must credit or charge
such Account with the same earnings or losses that the Participant, Inactive
Participant or Beneficiary would have incurred if the Plan Administrator had
invested the assets allocable to such Account in the specific investments, in
the specific amounts and for the specific periods directed by the Participant,
Inactive Participant or Beneficiary. In accordance with procedures established
by the Plan Administrator, a Participant, Inactive Participant or Beneficiary
may change his or her investment directions effective as of the first day of any
calendar quarter. Such changes may be made by submitting to the Plan
Administrator a properly completed and executed Investment Direction Form, no
fewer than 15 days preceding the effective date of the change. If the
Participant, Inactive Participant or Beneficiary fails to provide any investment
directions at a time when the Participant, Inactive Participant or Beneficiary
has an interest in the Company's Qualified Plan, the Plan Administrator may
follow the then current investment directions for the Participant's, Inactive
Participant's or Beneficiary's interest in the Company's Qualified Plan. If the
Plan is determined to be subject to the fiduciary provisions of Part 4 of Title
I of ERISA, the Plan shall be treated as a plan described in Section 404(c) of
ERISA and Title 29 of the Code of Federal Regulations Section 2550.404c-1, in
which plan fiduciaries may be relieved of liability for any losses which are the
direct and necessary result of investment instructions given by a Participant,
Inactive Participant or Beneficiary.

     5.3 Investment Earnings or Losses

               Any amounts credited to the Account of a Participant, Inactive
Participant or Beneficiary as a result of the deferral of all or part of a
Participant's or Inactive Participant's Compensation may increase or decrease as
a result of the Plan Administrator's investment of such amounts during the Plan
Year, as described in Section 5.2 above. A Participant's, Inactive Participant's
or Beneficiary's investment earnings or losses under this Section 5.3 shall be
credited to the Account of the Participant, Inactive Participant or Beneficiary,
as determined in good faith by the Plan Administrator. The Plan Administrator
shall allocate to the Participant's, Inactive Participant's or

                                       6
<PAGE>

Beneficiary's Account the full amount of the earnings and losses from the
investments selected by the Participant, Inactive Participant or Beneficiary
pursuant to Section 5.2 above, and any foreign, federal, state or local income
or employment tax consequences attributable to such investment earnings or
losses shall be borne by the Company.

     5.4 Investment of Unpaid Balances

               The unpaid balance of all Accounts payable under the Plan shall
continue to be credited with the investment earnings or losses described in
Sections 5.2 and 5.3 above.

     5.5 Company's General Assets

               All Compensation deferred under the Plan and all amounts credited
to a Participant's or Inactive Participant's Account under the Plan (a) are the
general assets of the Company, (b) may be used in the operation of the Company's
business or in any other manner permitted by law, and (c) remain subject to the
claims of the Company's general unsecured creditors. Title to any amounts
deferred under the Plan or credited to a Participant's or Inactive Participant's
Account remains in the Company and neither Participant, Inactive Participant nor
his or her Beneficiary has any property interests whatsoever in said amounts,
except as general unsecured creditors of the Company.

6.   EFFECT ON EMPLOYEE BENEFITS

         Amounts deferred under the Plan or distributed pursuant to the terms of
the Plan are not taken into account in the calculation of an Employee's benefits
under any employee pension or welfare benefit program or under any other
compensation practice maintained by the Company, except to the extent provided
in such program or practice.

7.   PAYMENT OF DEFERRED COMPENSATION ACCOUNTS

     7.1 Income Tax Obligations

               If an Employee is assessed federal, state or local income taxes
by reason of, and computed on the basis of, his or her undistributed deferred
Compensation or undistributed investment earnings accrued on his or her Account,
the Employee shall notify the Plan Administrator in writing of such assessment
and there shall be distributed from the Employee's Account deferred Compensation
or accrued investment earnings in an amount equal to such tax assessment,
together with any interest due and penalties assessed thereupon within 30 days
following such notice; provided however, that if the Plan Administrator
determines that such assessment is improper, it may request that the Employee
contest the assessment, at the expense of the Company (which expense shall
include all costs of appeal and litigation, including legal and accounting fees,
and any additional interest assessed on the deficiency from and after the date
of the Employee's notice to the Plan Administrator); and during the period such
contest is pending, the sums otherwise distributable pursuant to this Section
7.1 shall not be distributed. To the extent that such payment by the Company
constitutes taxable income to the Employee, the Company shall pay to the
Employee an amount equal to the sum of all taxes (including any interest or
penalties (other than interest and penalties imposed by reason of the Employee's
failure

                                       7
<PAGE>

to file timely a tax return or pay taxes shown due on the return)) imposed on
such taxable income and on the payments made under this Section 7.1.

     7.2 In-Service Withdrawals/Distributions

               (a) Withdrawals to Meet Hardships

               If at any time following the first anniversary of initial
participation in the Plan, an Employee incurs a Hardship, the Employee may, by
written notice to the Plan Administrator, request that all or any specified part
of his or her Account but not less than $10,000 per withdrawal be paid to the
Employee; and such distribution, if approved by the Plan Administrator, shall be
made in a lump sum within 30 days following the Plan Administrator's receipt of
such notice. The Plan Administrator shall have exclusive authority to determine
whether to make a Hardship distribution from an Employee's Account but shall not
unreasonably deny a request for such a distribution. The Plan Administrator's
decision shall be final and binding on all parties. Any Hardship withdrawals
from an Account shall reduce the amount available for subsequent distributions
from the Account, as the Plan Administrator in good faith may determine. Prior
to the termination of his or her employment, a Participant may not withdraw any
funds from his or her Account, except as provided in this Section 7.2(a). If a
Hardship withdrawal is made during a Plan Year under this Section 7.2(a), then
deferral of the Employee's Compensation under the Plan shall automatically cease
during that Plan Year and the Plan Year immediately following the Plan Year in
which the Employee receives the Hardship withdrawal.

               (b) Distribution of Deferred Bonus

               The Plan Administrator shall distribute in a lump sum from a
Participant's or Inactive Participant's Account an amount equal to the Deferred
Bonus and all investment earnings or losses attributable to such Deferred Bonus
in accordance with Sections 5.2 and 5.3 above (the "Resulting Deferred Bonus")
on the distribution date selected by the Participant or Inactive Participant on
the Election of Deferral Form for distribution of Deferred Bonuses. The Plan
Administrator, in its sole discretion, may limit the Participant's or Inactive
Participant's choice of distribution dates or may mandate a specific
distribution date on the Election of Deferral Form. If the amount of a
Participant's or Inactive Participant's Account is less than the amount of the
Resulting Deferred Bonus to be distributed, then the Plan Administrator shall
distribute in a lump sum the amount remaining in the Participant's or Inactive
Participant's Account. In the absence of a mandatory distribution date or an
election to receive an in-service distribution of the Resulting Deferred Bonus,
the resulting Deferred Bonus shall be distributed in the same manner and at the
same time as any other Compensation deferred by the Participant or Inactive
Participant under the Plan.

     7.3 Termination of Employment

               Upon termination of the employment of a Participant or Inactive
Participant for any reason other than retirement after reaching age sixty-five
(65), the Plan Administrator shall distribute his or her Account under the Plan
in a lump sum. The payment from the Account shall be made within 90 days
following the date in which the termination of employment occurs.

                                       8
<PAGE>

     7.4 Disability

               Upon the Disability of a Participant or Inactive Participant
prior to termination of employment, the Plan Administrator shall distribute his
or her Account under the Plan, as elected by the Participant or Inactive
Participant on the Election of Deferral Form in the form set forth in Exhibit A,
in a lump sum or in 60 or more (but not more than 180) monthly installments such
that the Account depletes. In the absence of such election, the Participant or
Inactive Participant shall be distributed his or her Account under the Plan in
180 monthly installments such that the Account depletes. The payment from the
Account shall occur or commence on the first day of the second month following
the date in which the Disability results in the Employee's termination of
employment. Prior to the death of the Participant or Inactive Participant,
during any period in which a Participant or Inactive Participant remains
Disabled, he or she (or his or her legal representative) may request Hardship
withdrawals from any undistributed portion of his or her Account. Any such
Hardship withdrawals shall reduce the amount available for subsequent
distributions from the Account, as the Plan Administrator in good faith may
determine.

     7.5 Retirement

               Upon the Participant or Inactive Participant reaching sixty-five
(65) years of age, and terminating employment, the Plan Administrator shall
distribute his or her Account under the Plan, as elected by the Participant or
Inactive Participant on the Election of Deferral Form in the form set forth in
Exhibit A, in a lump sum or in 60 or more (but not more than 180) monthly
installments such that the Account depletes. In the absence of such election,
the Participant or Inactive Participant shall be distributed his or her Account
under the Plan in 180 monthly installments such that the Account depletes. The
initial payment from the Account shall occur or commence on the first day of the
second month following the date in which the retirement results in the
Employee's termination of employment.

     7.6 Death Prior to Commencement of Distributions

               Upon the death of a Participant or Inactive Participant prior to
the commencement of any distribution under Sections 7.4 or 7.5 above, the
Account of such Participant or Inactive Participant shall be distributed to his
or her Beneficiary, in a lump sum. The distribution from the Account shall be
made on the first day of the third month following the month in which the death
of the Participant or Inactive Participant occurs. During the period between the
death of the Participant or Inactive Participant and the distribution to the
Beneficiary, the Beneficiary may request Hardship withdrawals from any
undistributed portion of his or her Account. Any such Hardship withdrawals shall
reduce the amount available for the subsequent distribution from the Plan, as
the Plan Administrator in good faith may determine.

     7.7 Death After Commencement of Distributions

               Upon the death of a Participant or Inactive Participant after the
commencement of any distribution in accordance with Sections 7.4 or 7.5 above,
the balance remaining in the Account of such Participant or Inactive Participant
shall be distributed to his or her Beneficiary in accordance with the terms
elected by the Participant or Inactive Participant under Sections 7.4 or 7.5.

                                       9
<PAGE>

     7.8 Withholding and Other Tax Consequences

               From any payments made under the Plan, the Company shall withhold
any taxes or other amounts which foreign, federal, state or local law requires
the Company to deduct, withhold and deposit. The Plan Administrator's
determination of the type and amount of taxes to be withheld from any payment
shall be final and binding on all persons having or claiming to have an interest
in the Plan or in any Account under the Plan.

8.   FUNDING

         All amounts deferred under the Plan remain or become general assets of
the Company. All payments under the Plan shall come from the general assets of
the Company. No specific assets of the Company secure the amounts credited to an
Employee's Account. The Plan shall not be construed to require the Company to
fund any of the benefits provided hereunder or to establish a trust or purchase
an insurance policy or other product for such purpose. The Plan Administrator
may make such arrangements as it desires to provide for the payment of benefits.
Neither an Employee, Participant or Inactive Participant nor his or her
Beneficiary or estate shall have any rights against the Company with respect to
any portion of any Account under the Plan except as general unsecured creditors.
No Employee, Participant, Inactive Participant, Beneficiary or estate has an
interest in any Account under the Plan until the Employee, Participant, Inactive
Participant, Beneficiary or estate actually receives payment from the Account.

9.   NON-ALIENATION OF BENEFITS

         The interest of any Employee, Participant, Inactive Participant or
Beneficiary shall not be subject to sale, assignment, transfer, conveyance,
hypothecation, encumbrance, garnishment, attachment, anticipation, pledge,
alienation or other disposition prior to actual distribution from the Plan; and
any attempt to effect such disposition shall be void. No portion of any Account
shall, prior to receipt thereof, be subject to the debts, contracts,
liabilities, or engagements of any Employee, Participant, Inactive Participant
or Beneficiary. Nothing in the preceding sentence shall prohibit the Plan
Administrator from recovering from an Employee, Participant, Inactive
Participant or Beneficiary any payments to which he or she was not entitled
under the Plan.

10.  LIMITATION OF RIGHTS

         Nothing in the Plan document or in any related instrument shall cause
the Plan to be treated as a contract of employment within the meaning of the
Federal Arbitration Act, 9 U.S.C. 1 et seq., or shall be construed as evidence
of any agreement or understanding, express or implied, that the Company (a) will
employ any person in any particular position or level of Compensation, (b) will
offer any person initial or continued participation or awards in any commission,
bonus or other compensation program, or (c) will continue any person's
employment with the Company.

                                       10
<PAGE>

11.  BEST PAYMENTS

         (a) If the gross amount of any payment or benefit under the Plan,
either separately or in combination with any other payment or benefit payable by
the Company or any of its affiliates or pursuant to a plan of the Company or an
affiliate, would constitute a parachute payment within the meaning of the Code
Section 280G, then the total payments and benefits accrued and payable under the
Plan shall not exceed the amount necessary to maximize the amount receivable by
the Employee after payment of all employment, income and excise taxes imposed on
the Employee with respect to such payments or benefits.

         (b) The Employee may elect by written notice which items of
compensation, if any, shall be reduced so as to meet the requirements of Section
11(a) above. If there is a dispute between the Plan Administrator and the
Employee regarding (i) the extent, if any, to which any payments or benefits to
the Employee are parachute payments or excess parachute payments, under Code
Section 280G, or (ii) the base amount of such Employee's Compensation under Code
Section 280G, or (iii) the status of such Employee as a disqualified individual,
under Code Section 280G, such dispute shall be resolved in the same manner as a
claim for benefits under the Plan.

         (c) Within 60 days of a change in ownership or control within the
meaning of Code Section 280G or, if later, within 30 days of the Employee's
receiving notice of termination of employment from the Company or the Company's
receiving notice of termination of employment from the Employee, either the
Employee or the Plan Administrator may request (i) a determination of the amount
of any parachute payment, excess parachute payment, or base amount of
compensation, or (ii) a determination of the reduction necessary to maximize the
net receipts of the Employee as described in Section 11(a) above. The Company
shall pay any fees, costs or expenses incurred by the Employee in connection
with such determinations. To the extent that such payment by the Company
constitutes taxable income to the Employee, the Company shall pay to the
Employee an amount equal to the sum of all taxes (including any interest or
penalties (other than interest and penalties imposed by reason of the Employee's
failure to file timely a tax return or pay taxes shown due on the return))
imposed on such taxable income and on the payments made under this Section
11(c).

12.  NOTICE UNDER WARN

         Any amounts paid (a) to any Employee under the Worker Adjustment and
Retraining Notification Act of 1988 ("WARN") or under any other laws regarding
termination of employment, or (b) to any third party for the benefit of said
Employee or for the benefit of his or her dependents shall not be offset or
reduced by any amounts paid or determined to be payable by the Company to said
Employee or to his or her Beneficiary under the Plan.

13.  AMENDMENT OR TERMINATION OF THE PLAN

         (a) Prior to a Change in Control, the Plan Administrator may modify,
suspend or terminate the Plan in any manner that does not (i) reduce any
benefits accrued under the Plan or (ii) constitute a forfeiture of any benefits
vested under the Plan without the written consent of the affected
Participant(s).

                                       11
<PAGE>

         (b) Subsequent to a Change in Control, the Plan Administrator may
amend, modify or terminate the Plan; provided, however, that no such amendment,
modification or termination of the Plan will affect adversely the right of a
Participant or Beneficiary with respect to his or her Account as of the day
prior to the date of the amendment, modification or termination. Such Account
will continue to be subject to and governed by the terms of the Plan as set
forth in the Plan document on the day prior to the date of the amendment,
modification or termination. In addition, subsequent to a Change in Control, no
change may be made to the investment options that were available to Participants
and Beneficiaries under Section 5.2 and Exhibit B of the Plan on the day prior
to the Change in Control. Notwithstanding the foregoing, subsequent to a Change
in Control, the Plan Administrator may distribute the entire value of all
Accounts in lump sum payments to all Participants and Beneficiaries.

         (c) The Plan shall terminate immediately if a court of competent
jurisdiction determines that the Plan is not exempt from the fiduciary
provisions of Part 4 of Title I of ERISA. The Plan shall terminate as of the
date it ceased to be exempt.

         (d) Upon termination of the Plan, the Plan Administrator shall
distribute all Accounts, as determined by the Plan Administrator (i) in a lump
sum to all Participants or (ii) in accordance with the method designated by
Participants at the time of their deferrals.

14.  ADMINISTRATIVE PROCEDURES AND DISPUTE RESOLUTION

     14.1 Plan Administrator

               The Plan Administrator shall be the Board, a committee of the
Board, or one or more officers of the Company appointed by the Board to
administer the Plan. The Plan Administrator shall act on behalf of the Company
in discharging the duties of the Company in administering the Plan. No member of
the Plan Administrator who is also a full-time officer or employee of the
Company shall receive compensation with respect to his or her service as Plan
Administrator. Any member of the Plan Administrator may resign as a Plan
Administrator by delivering his or her written resignation to the Board. The
Board may remove any member of the Plan Administrator by providing him or her
with written notice of the removal.

     14.2 Plan Administrator Organization and Procedures

               (a) The Board may designate a chairperson from the members of the
Plan Administrator. The Plan Administrator may appoint a secretary, who may or
may not be a member of the Plan Administrator. The secretary shall have the
primary responsibility for keeping a record of all meetings and acts of the Plan
Administrator and shall have custody of all documents, the preservation of which
shall be necessary or convenient to the efficient functioning of the Plan
Administrator. The chairperson or another member of the Plan Administrator, as
designated by the chairperson, on behalf of the Company may sign all reports
required by law.

               (b) The Plan Administrator shall act by a majority of its members
in office and may adopt such rules and regulations as it deems desirable for the
conduct of its affairs. If the Company, the Plan, any Participant or Inactive
Participant is or becomes subject to any rules of the

                                       12
<PAGE>

Securities and Exchange Commission or any national or regional securities
exchange, the Plan Administrator shall take any actions which are necessary or
desirable for the maintenance, modification or operation of the Plan in
accordance with those rules.

     14.3 Administrative Authority

               The Plan Administrator have discretionary authority to perform
all functions necessary or appropriate to the operation of the Plan, including
without limitation authority to (a) construe and interpret the provisions of the
Plan document and any related instrument and determine any question arising
under the Plan document or related instrument, or in connection with the
administration or operation thereof; (b) determine in its sole discretion all
facts and relevant considerations affecting the eligibility of any Employee to
be or become a Participant; (c) decide eligibility for, and the amount of,
benefits for any Participant, Inactive Participant or Beneficiary; (d) authorize
and direct all disbursements under the Plan; and (e) employ and engage such
persons, counsel and agents and to obtain such administrative, clerical,
medical, legal, audit and actuarial services as it may deem necessary in
carrying out the provisions of the Plan. The Company shall be the
"administrator" as defined in Section 3(16)(A) of ERISA for purposes of the
reporting and disclosure requirements of ERISA and the Code. The Chief Executive
Officer of the Company shall be the agent for service of process on the Plan.

     14.4 Expenses

               All reasonable expenses, which are necessary to operate and
administer the Plan, shall be paid directly by the Company. All reasonable costs
incurred by a Plan Administrator member in the discharge of the Company's or his
or her duties under the Plan shall be paid or reimbursed by the Company. Such
costs shall include fees or expenses arising from the Plan Administrator's
retention, with the consent of the Company, of any attorneys, accountants,
actuaries, consultants or recordkeepers required by the Plan Administrator to
discharge its duties under the Plan. Nothing in the preceding two sentences or
in any other provisions of the Plan shall require the Company to pay or
reimburse any Plan Administrator member or any other person for any cost,
liability, loss, fee or expense incurred by the Plan Administrator member or
other person in any dispute with the Company; nor may any Plan Administrator
member or other person reimburse himself, herself or itself from any Plan
contributions or from the principal or income of investment or funding vehicle
for the Plan for any such cost, liability, loss, fee or expense.

     14.5 Insurance

               The Plan Administrator may, but need not, obtain liability
insurance to protect the Company's directors, officers, employees or
representatives against loss in the discharge of their responsibility in the
operation of the Plan.

     14.6 Claims Procedure

               (a) A claim for benefits shall be considered filed only when
actually received by the Plan Administrator.

                                       13
<PAGE>

               (b) Any time a claim for benefits is wholly or partially denied,
the Participant, Inactive Participant or Beneficiary (hereinafter "Claimant")
shall be given written notice of such denial within 30 days after the claim is
filed, unless special circumstances require an extension of time for processing
the claim. If there is an extension, the Claimant shall be notified of the
extension and the reason for the extension within the initial 30 day period. The
extension shall expire within 60 days after the claim is filed. Such notice will
indicate the reason for denial, the pertinent provisions of the Plan on which
the denial is based, an explanation of the claims appeal procedure set forth
herein, and a description of any additional material or information necessary to
perfect the claim and an explanation of why such material or information is
necessary.

     14.7 Appeal Procedures

               (a) Any person who has had a claim for benefits denied by the
Plan Administrator, or is otherwise adversely affected by the action or inaction
of the Plan Administrator, shall have the right to request review by the Plan
Administrator. Such request must be in writing, and must be received by the Plan
Administrator within 60 days after such person receives notice of the Plan
Administrator's action. If written request for review is not made within such
60-day period, the Claimant shall forfeit his or her right to review. The
Claimant or a duly authorized representative of the Claimant may review all
pertinent documents and submit issues and comments in writing.

               (b) The Plan Administrator shall then review the claim. The Plan
Administrator may issue a written decision reaffirming, modifying or setting
aside its former action within 30 days after receipt of the written request for
review, or 60 days if special circumstances require an extension. The Claimant
shall be notified in writing of any such extension within 30 days following the
request for review. An original or copy of the decision shall be furnished to
the Claimant. The decision shall set forth the reasons and pertinent Plan
provisions or relevant laws on which the decision rests. The decision shall be
final and binding upon the Claimant and the Plan Administrator and all other
persons having or claiming to have an interest in the Plan or in any Account
established under the Plan.

     14.8 Arbitration

               (a) Any Participant's, Inactive Participant's or Beneficiary's
claim remaining unresolved after exhaustion of the procedures in Sections 14.6
and 14.7 (and to the extent permitted by law any dispute concerning any breach
or claimed breach of duty regarding the Plan) shall be settled solely by binding
arbitration at the Employer's principal place of business at the time of the
arbitration, in accordance with the Employee Benefit Plan Claims Arbitration
Rules of the American Arbitration Association. Judgment on any award rendered by
the arbitrator may be entered in any court having jurisdiction thereof. The
Company shall pay the Company's and the Participant's, Inactive Participant's or
Beneficiary's fees and costs of presenting his, her or its case in arbitration,
as well as all other costs of arbitration, including the costs of any transcript
of the proceedings, administrative fees, and the arbitrator's fees. To the
extent that such payment by the Company constitutes taxable income to the
Participant, Inactive Participant or Beneficiary, the Company shall pay to the
Participant, Inactive Participant or Beneficiary an amount equal to the sum of
all taxes (including any interest or penalties (other than interest and
penalties imposed by reason of the Participant's, Inactive Participant's or
Beneficiary's failure to file timely a tax return or pay taxes shown due on the
return)) imposed on such taxable income and on the payments made under this
Section 14.8(a).

                                       14
<PAGE>

               (b) Except as otherwise specifically provided in the Plan, the
provisions of this Section 14.8 shall be absolutely exclusive for any and all
purposes and fully applicable to each and every dispute regarding the Plan
including any claim which, if pursued through any state or federal court or
administrative proceeding, would arise at law, in equity or pursuant to
statutory, regulatory or common law rules, regardless of whether such claim
would arise in contract, tort or under any other legal or equitable theory or
basis. The arbitrator who hears or decides any claim under the Plan shall have
jurisdiction and authority to award only Plan benefits and prejudgment interest;
and apart from such benefits and interest, the arbitrator shall not have any
authority or jurisdiction to make any award of any kind including, without
limitation, compensatory damages, punitive damages, foreseeable or unforeseeable
economic damages, damages for pain and suffering or emotional distress, adverse
tax consequences or any other kind or form of damages. The remedy, if any,
awarded by such arbitrator shall be the sole and exclusive remedy for each and
every claim which is subject to arbitration pursuant to this Section 14.8. Any
limitations on the relief that can be awarded by the arbitrator are in no way
intended (i) to create rights or claims that can be asserted outside arbitration
or (ii) in any other way to reduce the exclusivity of arbitration as the sole
dispute resolution mechanism with respect to the Plan.

               (c) The Plan and the Company will be the necessary parties to any
action or proceeding involving the Plan. No person employed by the Company, no
Participant, Inactive Participant or Beneficiary or any other person having or
claiming to have an interest in the Plan will be entitled to any notice or
process, unless such person is a named party to the action or proceeding. In any
arbitration proceeding all relevant statutes of limitation shall apply. Any
final judgment or decision that may be entered in any such action or proceeding
will be binding and conclusive on all persons having or claiming to have any
interest in the Plan.

     14.9 Notices

               Any notice from the Company or the Plan Administrator to an
Employee, Participant, Inactive Participant or Beneficiary regarding the Plan
may be addressed to the last known residence of said person as indicated in the
records of the Company. Any notice to, or any service of process upon, the
Company or the Plan Administrator with respect to the Plan may addressed as
follows:

               Chief Financial Officer
               Atrix Laboratories, Inc.
               2579 Midpoint Drive
               Fort Collins, CO 80525

     14.10 Indemnification

               To the extent permitted by law, the Company shall, and hereby
does, indemnify and hold harmless any director, officer or employee of the
Company who is or may be deemed to be responsible for the operation of the Plan,
from and against any and all losses, claims, damages or liabilities (including
attorneys' fees and amounts paid, with the approval of the Board, in settlement
of any claim) arising out of or resulting from a duty, act, omission or decision
with respect to the Plan, so long as such duty, act, omission or decision does
not involve gross negligence or willful misconduct on the part of such director,
officer or employee. Any individual so indemnified shall, within 10 days after

                                       15
<PAGE>

receipt of notice of any action, suit or proceeding, notify the Chief Executive
Officer of the Company and offer in writing to the Chief Executive Officer the
opportunity, at the Company's expense, to handle and defend such action, suit or
proceeding, and the Company shall have the right, but not the obligation, to
conduct the defense in any such action, suit or proceeding. An individual's
failure to give the Chief Executive Officer such notice and opportunity shall
relieve the Company of any liability to said individual under this Section
14.10. The Company may satisfy its obligations under this provision (in whole or
in part) by the purchase of insurance. Any payment by an insurance carrier to or
on behalf of such individual shall, to the extent of such payment, discharge any
obligation of the Company to the individual under this indemnification.

15.  MISCELLANEOUS

     15.1 Alternative Acts and Times

               If it becomes impossible or burdensome for the Plan Administrator
to perform a specific act at a specific time required by the Plan, the Plan
Administrator may perform such alternative act which most nearly carries out the
intent and purpose of the Plan and may perform such required or alternative act
at a time as close as administratively feasible to the time specified in the
Plan for such performance. Nothing in the preceding sentence shall allow the
Plan Administrator to accelerate or defer any payments to Participants or
Inactive Participants under the Plan, except as otherwise expressly permitted
herein.

     15.2 Masculine and Feminine, Singular and Plural

               Whenever used herein, pronouns shall include both genders, and
the singular shall include the plural, and the plural shall include the
singular, whenever the context shall plainly so require.

     15.3 Governing Law and Severability

               The Plan shall be construed in accordance with the laws of the
State of Colorado (exclusive of its rules regarding conflicts of law) to the
extent that such laws are not preempted by ERISA or other federal laws. If any
provision of the Plan shall be held illegal or invalid for any reason, such
determination shall not affect the remaining provisions of the Plan which shall
be construed as if said illegal or invalid provision had never been included.

     15.4 Facility of Payment

               If the Plan Administrator, in its sole discretion, determines
that any Employee, Participant, Inactive Participant or Beneficiary by reason of
infirmity, minority or other disability, is physically, mentally or legally
incapable of giving a valid receipt for any payment due him or her or is
incapable of handling his or her own affairs and if the Plan Administrator is
not aware of any legal representative appointed on his or her behalf, then the
Plan Administrator, in its sole discretion, may direct (a) payment to or for the
benefit of the Employee, Participant, Inactive Participant or Beneficiary; (b)
payment to any person or institution maintaining custody of the Employee,
Participant, Inactive Participant or Beneficiary; or (c) payment to any other
person selected by the Plan Administrator to

                                       16
<PAGE>

receive, manage and disburse such payment for the benefit of the Employee,
Participant, Inactive Participant or Beneficiary. The receipt by any such person
of any such payment shall be a complete acquittance therefor; and any such
payment, to the extent thereof, shall discharge the liability of the Company,
the Plan Administrator, and the Plan for any amounts owed to the Employee,
Participant, Inactive Participant or Beneficiary hereunder. In the event of any
controversy or uncertainty regarding who should receive or whom the Plan
Administrator should select to receive any payment under the Plan, the Plan
Administrator may seek instruction from a court of proper jurisdiction or may
place the payment (or entire Account) into such court with final distribution to
be determined by such court.

     15.5 Correction of Errors

               Any crediting of Compensation or investment earnings or loss
accruals to the Account of any Employee, Participant, Inactive Participant or
Beneficiary under a mistake of fact or law shall be returned to the Company. If
an Employee, Participant, Inactive Participant or Beneficiary in an application
for a benefit or in response to any request by the Plan Administrator for
information, makes any erroneous statement, omits any material fact, or fails to
correct any information previously furnished incorrectly to the Plan
Administrator, or if the Plan Administrator makes an error in determining the
amount payable to an Employee, Participant, Inactive Participant or Beneficiary,
the Plan Administrator may correct its error and adjust any payment on the basis
of correct facts. The amount of any overpayment or underpayment may be deducted
from or added to the next succeeding payments, as directed by the Plan
Administrator. The Plan Administrator and the Company reserve the right to
maintain any action, suit or proceeding to recover any amounts improperly or
incorrectly paid to any person under the Plan or in settlement of a claim or
satisfaction of a judgment involving the Plan.

     15.6 Missing Persons

               In the event a distribution of part or all of an Account is
required to be made from the Plan to an Employee, Participant, Inactive
Participant or Beneficiary, and such person cannot be located, the relevant
portion of the Account shall escheat in accordance with the laws of the State of
Colorado. If the affected Employee, Participant, Inactive Participant or
Beneficiary later contacts the Company, his or her portion of the Account shall
be reinstated and distributed as soon as administratively feasible. The Company
shall reinstate the amount forfeited by reclaiming such amount from the State of
Colorado, and allocating it to the Account of the affected Employee,
Participant, Inactive Participant or Beneficiary. Prior to forfeiting any
Account, the Company shall attempt to contact the Employee, Participant,
Inactive Participant or Beneficiary by return receipt mail (or other carrier) at
his or her last known address according to the Company's records, and, where
practical, by letter-forwarding services offered through the Internal Revenue
Service, or the Social Security Administration, or such other means as the Plan
Administrator deems appropriate.

     15.7 Status of Participants

               In accordance with Revenue Procedure 92-65 Section 3.01(d), the
Plan hereby provides:

               (a) Employees, Participants and Inactive Participants under the
Plan shall have the status of general unsecured creditors of the Company;

                                       17
<PAGE>

               (b) The Plan constitutes a mere promise by the Company to make
benefit payments in the future; and

               (c) It is the intention of the parties that the arrangements
under the Plan shall be unfunded for tax purposes and for purposes of Title I of
ERISA.

                                       18
<PAGE>

                            ATRIX LABORATORIES, INC.
                      EXECUTIVE DEFERRED COMPENSATION PLAN

                      EXHIBIT A - ELECTION OF DEFERRAL FORM

1. I acknowledge that the terms and conditions of the ATRIX LABORATORIES, INC.
EXECUTIVE DEFERRED COMPENSATION PLAN have been explained to me, including the
tax consequences of my decision to participate in the Plan.

2. I agree to defer a portion of my current compensation, and to have that
income paid to me at a later date pursuant to the terms and conditions of the
Plan, which is incorporated by reference, in its entirety, in this Election of
Deferral Form.

3. I understand that this Election of Deferral Form is not an employment
agreement, does not guarantee that I will receive any predetermined amount of
compensation, and does not guarantee that I will receive any bonus, or incentive
compensation.

4. I understand that any compensation I defer will be held as an asset of Atrix
Laboratories, Inc., and will remain subject to the claims of the general
creditors of Atrix Laboratories, Inc.

ELECTION TO DEFER COMPENSATION

I hereby elect to defer the following amount from each of my paychecks:

         $_______ of my salary paid in calendar year 20____.

         $_______ of my bonus paid in calendar year 20____.

The foregoing election is voluntarily made by me after reviewing the terms of
the Plan and with knowledge that this election is irrevocable until changed in
accordance with the terms of the Plan.

RETIREMENT BENEFIT DISTRIBUTION REQUEST

The following supersedes any previous distribution request and applies to all
amounts deferred during the current and future Plan Years, adjusted for earnings
and losses credited to or charged against the Employee's Account. This election
cannot be changed retroactively as to prior deferrals, without the consent of
the Plan Administrator which may be withheld at its sole discretion.

In the event of either my:

     1.   Retirement on or after sixty-five (65) years of age, or

     2.   Disability.

                                      A-1
<PAGE>

I wish to receive my current and future deferrals in the following form: IF YOU
CHECK (ii), YOU MUST INDICATE THE NUMBER OF MONTHS OVER WHICH INSTALLMENT
DISTRIBUTIONS SHOULD CONTINUE.

         (i)  lump sum, payable at the earlier of my retirement date or the date
----          of actual termination of employment;

         (ii) in _______ substantially equal monthly installments. (at least 60
----          months but not to exceed 180 months)

          IF NONE OF THE ABOVE TWO REQUESTS APPLIES, THE COMPENSATION DEFERRED
     UNDER THE PLAN WILL BE PAYABLE, AS DESCRIBED AT SECTION 7.4 OR 7.5, IN 180
     MONTHLY INSTALLMENTS BEGINNING UPON THE LATER OF THE RETIREMENT DATE OR
     ACTUAL TERMINATION OF EMPLOYMENT.

By executing this Election of Deferral Form the undersigned Employee hereby
acknowledges that he or she has read and understood the Plan document and this
Election of Deferral Form. Employee also acknowledges that he or she knowingly
and voluntarily agrees to be bound by the provisions of the Plan, as amended
from time to time, including those Plan provisions which require the resolution
of disputes by binding out-of-court arbitration. Employee further acknowledges
that he or she has had the opportunity to consult with counsel and/or other
advisors of his or her own choosing with respect to all of the financial, tax
and legal consequences of participating in the Plan.

This Election of Deferral Form is executed and agreed:

                                                                 (Election Date)
------------------------------------   -------------------------
(Signature of Employee)                        (Date)

------------------------------------
(Print Name of Employee)

------------------------------------
(Social Security Number of Employee)

AGREED:

ATRIX LABORATORIES, INC.

By:
    --------------------------------   -------------------------
                                               (Date)

                                      A-2
<PAGE>

                            ATRIX LABORATORIES, INC.
                      EXECUTIVE DEFERRED COMPENSATION PLAN

                      EXHIBIT B - INVESTMENT DIRECTION FORM

The Plan Administrator agrees that it will credit deferred Compensation in the
Employee's Account with earnings or losses from and after dates deferred amounts
are credited to the Employee's Account. In determining the earnings or losses,
the Plan Administrator will utilize the following investment directions, subject
to the terms of the Plan. The Participant understands and agrees that he or she
assumes all risk in connection with any decrease in the value of Compensation
deferred under the Plan and invested in accordance with Sections 5.2 and 5.3 of
the Plan.

<Table>
<Caption>
NAME OF MUTUAL FUND                                    PERCENTAGE
-------------------                                    ----------

<S>                                                    <C>
                                                                %
                                                                %
                                                                %
                                                                %
                                                                %
                                                                %
                                                                %
                                                                %
                                                                %
                                                                %
                                                             ---
                                                             100%
                                                             ===
</Table>

         PARTICIPANT (PRINT NAME)
                                  ------------------------------------

         SIGNATURE
                   ---------------------------------------

         DATE
              -------------------

FILING ACKNOWLEDGEMENT

Filed with the records of the Company this ____ day of ______________, 20___.

By
   --------------------------------

-----------------------------------
Title

                                       B
<PAGE>

                            ATRIX LABORATORIES, INC.
                      EXECUTIVE DEFERRED COMPENSATION PLAN

                    EXHIBIT C - BENEFICIARY DESIGNATION FORM

I.   _________________________ (Insert Employee's name as it appears in the
     Agreement.)

================================================================================

II.  The above-named Employee's Revocable Beneficiary under the ATRIX
     LABORATORIES, INC. EXECUTIVE DEFERRED COMPENSATION PLAN is set forth below:

Primary Beneficiary(ies):         ____________________      ____________________

Relationship:                     ____________________      ____________________

Address:                          ____________________      ____________________

                                  ____________________      ____________________

Social Security Number:           ____________________      ____________________

Contingent Beneficiary(ies):      ____________________      ____________________

Relationship:                     ____________________      ____________________

Address:                          ____________________      ____________________

                                  ____________________      ____________________

Social Security Number:           ____________________      ____________________

================================================================================

III. If no individual beneficiary named is living at the Employee's death, the
     Beneficiary shall be the executor(s) or administrator(s) of the Employee's
     estate.

IV.  This Designation of Beneficiary revokes all prior designations and shall be
     effective as of the date it is filed with the Company. The Employee retains
     the right to revoke this Designation of Beneficiary.

Dated at _______________, State of _______________, on _______________, 20__.

-----------------------------------    ------------------------------------
Signature of Employee                                Witness

FILING ACKNOWLEDGEMENT

Filed with the records of the Company this ___ day of _______________, 20____.

By
   ---------------------------

------------------------------
Title

                                       C

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00041-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00041-of-00352.parquet"}]]