Document:

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                                                                   EXHIBIT 10.25

                          REGISTRATION RIGHTS AGREEMENT

                  This Registration Rights Agreement (the "Agreement") is
entered into as of May 24, 2000 by and among Tetra Tech, Inc., a Delaware
corporation ("Tetra Tech"), and the parties listed on SCHEDULE A attached hereto
(each, a "Holder" and collectively, the "Holders").

                                 R E C I T A L S

                  A. Tetra Tech and the Holders are parties to a Stock Purchase
Agreement dated as of the date hereof (the "Stock Purchase Agreement"); and

                  B. Pursuant to the Stock Purchase Agreement, the Holders will
receive shares of the common stock, $.01 par value, of Tetra Tech ("Tetra Tech
Common Stock"); and

                  C. This Agreement is the Registration Rights Agreement
referred to in SECTION 6.2 of the Stock Purchase Agreement and, pursuant
thereto, must be entered into by the parties in connection with the transactions
contemplated by the Stock Purchase Agreement.

                                A G R E E M E N T

                  NOW, THEREFORE, in consideration of the mutual covenants and
agreements contained herein, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

                  1. CERTAIN DEFINITIONS. As used in this Agreement, the
following terms shall have the following respective meanings:

                     "EXCHANGE ACT" shall mean the Securities Exchange Act of
1934, as amended from time to time.

                     "FORM S-3" shall mean such form under the Securities Act
as in effect on the date hereof or any successor registration form under the
Securities Act subsequently adopted by the SEC which permits inclusion or
incorporation of substantial information by reference to other documents
filed by Tetra Tech with the SEC.

                     "PROSPECTUS" shall mean the prospectus included in any
Registration Statement, as amended or supplemented by any prospectus
supplement, with respect to the terms of the offering of any portion of the
Registrable Securities covered by the Registration Statement

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and by all other amendments and supplements to the prospectus, including
post-effective amendments and all material incorporated by reference in such
Prospectus.

                           "REGISTER", "REGISTERED" and "REGISTRATION" shall
mean and refer to a registration effected by preparing and filing a Registration
Statement and taking all other actions that are necessary or appropriate in
connection therewith, and the declaration or ordering of effectiveness of such
Registration Statement by the SEC.

                           "REGISTRATION EXPENSES" shall have the meaning set
forth in SECTION 4.

                           "REGISTRABLE SECURITIES" shall mean the shares of
Tetra Tech Common Stock (i) issued pursuant to the Stock Purchase Agreement and
the exhibits thereto, and (ii) issued as a dividend or other distribution with
respect to or in exchange for or in replacement of the shares referenced in (i)
above; PROVIDED, HOWEVER, that Registrable Securities shall not include any
shares of Tetra Tech Common Stock that have previously been registered or sold
to the public or have been sold in a private transaction (excluding the issuance
of the Tetra Tech Common Stock pursuant to the Stock Purchase Agreement).

                           "REGISTRATION STATEMENT" shall mean any registration
statement of Tetra Tech in compliance with the Securities Act that covers
Registrable Securities pursuant to the provisions of this Agreement, including,
without limitation, the Prospectus, all amendments and supplements to such
Registration Statement, including all post-effective amendments, all exhibits
and all material incorporated by reference in such Registration Statement.

                           "RULE 144" shall mean Rule 144 promulgated under the
Securities Act or any similar successor rule, as the same shall be in effect
from time to time.

                           "RULE 144A" shall mean Rule 144A promulgated under
the Securities Act or any similar successor rule, as the same shall be in effect
from time to time.

                           "RULE 145" shall mean Rule 145 promulgated under the
Securities Act, or any similar successor rule, as the same shall be in effect
from time to time.

                           "RULE 415" shall mean Rule 415 promulgated under the
Securities Act, or any similar successor rule, as the same shall be in effect
from time to time.

                           "SECURITIES ACT" shall mean the Securities Act of
1933, as amended from time to time.

                           "SEC" shall mean the Securities and Exchange
Commission.

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                           "UNDERWRITTEN OFFERING" shall mean a registration in
which securities of Tetra Tech are sold to an underwriter or through an
underwriter as agent for reoffering to the public.

                  2.       REGISTRATION.

                           (a) Tetra Tech shall use all reasonable best efforts
to file a Registration Statement on Form S-1, Form S-2 or Form S-3, whichever
Tetra Tech shall be eligible to use, providing for the sale by the Holders,
pursuant to Rule 415, and/or any similar rule that may be adopted by the SEC, of
the Registrable Securities, to cause such Registration Statement to become
effective not later than November 24, 2000, and to keep such Registration
Statement continuously effective for a period ending on the date on which all
Holders are eligible to sell Registrable Securities under Rule 144 without any
volume limitation (or similar successor Rule).

                           (b) No Holder shall have the right to register
securities under this Agreement unless such Holder provides and/or confirms in
writing prior to or after the filing of the Registration Statement such
information (including, without limitation, information as to the number of
Registrable Securities that such Holder has sold pursuant to any such
Registration Statement from time to time) as Tetra Tech may reasonably request
in connection with such Registration Statement.

                           (c) Notwithstanding the foregoing, for a period not
to exceed 90 days, Tetra Tech shall not be obligated to prepare and file the
Registration Statement required hereunder if Tetra Tech, in its good faith
judgment, reasonably believes that the filing of such Registration Statement
would require the disclosure of material non-public information regarding Tetra
Tech and, accordingly, that the filing thereof, at the time requested, or the
offering of Tetra Tech Common Stock pursuant thereto, would materially and
adversely affect (i) a pending or scheduled public offering or private placement
of securities of Tetra Tech, (ii) an acquisition, merger, consolidation or
similar transaction by or of Tetra Tech, (iii) preexisting and continuing
negotiations, discussions or pending proposals with respect to any of the
foregoing transactions, or (iv) the financial condition of Tetra Tech in view of
the disclosure of any pending or threatened litigation, claim, assessment or
governmental investigation which might be required thereby.

                  In the event that Tetra Tech, in good faith, reasonably
believes that such conditions are continuing after such 90-day period, it may,
with the consent of the Holders of a majority of the Registrable Securities
subject (or to be subject) to the Registration Statement, which consent shall
not be unreasonably withheld, extend such 90-day period for an additional 30
days. Any further delay shall require the consent of the Holders of a majority
of such shares.

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                  3.       REGISTRATION PROCEDURES. In connection with Tetra
Tech's registration obligations pursuant to SECTION 2 hereof, Tetra Tech will
use reasonable best efforts to effect such registration to permit the sale of
the Registrable Securities covered thereby in accordance with the intended
method or methods of disposition thereof, and pursuant thereto Tetra Tech
will:

                           (a) prepare and file with the SEC a Registration
Statement with respect to such Registrable Securities and use its reasonable
best efforts to cause such Registration Statement to become effective; PROVIDED
that, before filing any Registration Statement or Prospectus or any amendments
or supplements thereto, Tetra Tech will furnish to the Holders of the
Registrable Securities covered by such Registration Statement and their counsel,
copies of all such documents proposed to be filed at least ten days prior
thereto, and Tetra Tech will not file any such Registration Statement or
amendment thereto or any Prospectus or any supplement thereto to which any such
Holder shall reasonably object within such ten day period; PROVIDED, FURTHER,
that Tetra Tech will not name or otherwise provide any information with respect
to any Holder in any Registration Statement or Prospectus without the express
written consent of such Holder, unless required to do so by the Securities Act
and the rules and regulations thereunder;

                           (b) prepare and file with the SEC such amendments,
post-effective amendments and supplements to the Registration Statement and the
Prospectus as may be necessary to comply with the provisions of the Securities
Act and the rules and regulations thereunder with respect to the disposition of
all securities covered by such Registration Statement;

                           (c) promptly notify the selling Holders (i) when the
Prospectus or any Prospectus supplement or post-effective amendment has been
filed, and, with respect to the Registration Statement or any post-effective
amendment, when the same has become effective, (ii) of any request by the SEC
for amendments or supplements to the Registration Statement or the Prospectus or
for additional information, (iii) of the issuance by the SEC of any stop order
suspending the effectiveness of the Registration Statement or the initiation of
any proceedings for that purpose, (iv) of the receipt by Tetra Tech of any
notification with respect to the suspension of the qualification of the
Registrable Securities for sale in any jurisdiction or the initiation or
threatening of any proceeding for such purpose and (v) of the happening of any
event which makes any statement made in the Registration Statement, the
Prospectus or any document incorporated therein by reference untrue or which
requires the making of any changes in the Registration Statement, the Prospectus
or any document incorporated therein by reference in order to make the
statements therein not misleading in light of the circumstances then existing;

                           (d) make every reasonable best effort to obtain the
withdrawal of any order suspending the effectiveness of the Registration
Statement at the earliest possible moment;

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                           (e) furnish to each selling Holder, without charge,
at least one signed copy of the Registration Statement and any post-effective
amendment thereto, including financial statements and schedules, all documents
incorporated therein by reference and all exhibits (including those incorporated
by reference);
                           (f) deliver to each selling Holder, without charge,
such reasonable number of conformed copies of the Registration Statement (and
any post-effective amendment thereto) and such number of copies of the
Prospectus (including each preliminary prospectus) and any amendment or
supplement thereto (and any documents incorporated by reference therein) as such
Holder may reasonably request; Tetra Tech consents to the use of the Prospectus
or any amendment or supplement thereto by each of the selling Holders in
connection with the offer and sale of the Registrable Securities covered by the
Prospectus or any amendment or supplement thereto;

                           (g) prior to any offering of Registrable Securities
covered by a Registration Statement, register or qualify or cooperate with the
selling Holders in connection with the registration or qualification of such
Registrable Securities for offer and sale under the securities or blue sky laws
of such jurisdictions as any such selling Holder reasonably requests, and use
its reasonable efforts to keep each such registration or qualification
effective, including through new filings, or amendments or renewals, during the
period such Registration Statement is required to be kept effective pursuant to
the terms of this Agreement; and do any and all other acts or things necessary
or advisable to enable the disposition in all such jurisdictions reasonably
requested by the Holders of the Registrable Securities covered by such
Registration Statement, PROVIDED that under no circumstances shall Tetra Tech be
required in connection therewith or as a condition thereof to qualify to do
business or to file a general consent to service of process in any such states
or jurisdictions;

                           (h) cooperate with the selling Holders to facilitate
the timely preparation and delivery of certificates representing Registrable
Securities to be sold, free of any and all restrictive legends, such
certificates to be in such denominations and registered in such names as the
Holders may request;

                           (i) upon the occurrence of any event contemplated by
SECTION 3(c)(v) above, prepare a supplement or post-effective amendment to the
Registration Statement or the Prospectus or any document incorporated therein by
reference or file any other required document so that, as thereafter delivered
to the purchasers of the Registrable Securities, the Prospectus will not contain
an untrue statement of a material fact or omit to state any material fact
necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading;

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                           (j) make generally available to the holders of Tetra
Tech's outstanding securities earnings statements satisfying the provisions of
Section 11(a) of the Securities Act, no later than 60 days after the end of any
12 month period (or 90 days, if such period is a fiscal year) beginning with the
first month of Tetra Tech's first fiscal quarter commencing after the effective
date of the Registration Statement, which statements shall cover said 12 month
period;

                           (k) provide and cause to be maintained a transfer
agent and registrar for all Registrable Securities covered by each Registration
Statement from and after a date not later than the effective date of such
Registration Statement;

                           (l) use its reasonable best efforts to cause all
Registrable Securities covered by each Registration Statement to be listed,
subject to notice of issuance, prior to the date of the first sale of such
Registrable Securities pursuant to such Registration Statement, on each
securities exchange on which the Tetra Tech Common Stock is then listed, and
admitted to trading on the Nasdaq Stock Market, if the Tetra Tech Common Stock
is then admitted to trading on the Nasdaq Stock Market; and

                           (m) enter into such agreements (including
underwriting agreements in customary form containing, among other things,
reasonable and customary indemnities) and take such other actions as a majority
of the Holders shall reasonably request in order to expedite or facilitate the
disposition of such Registrable Securities.

Each Holder agrees that, upon receipt of any notice from Tetra Tech of the
happening of any event of the kind described in SECTION 3(c)(v) hereof, such
Holder will forthwith discontinue disposition of Registrable Securities under
the Prospectus related to the applicable Registration Statement until such
Holder's receipt of the copies of the supplemented or amended Prospectus
contemplated by SECTION 3(i) hereof, or until it is advised in writing by Tetra
Tech that the use of the Prospectus may be resumed.

                  It shall be a condition precedent to the obligations of Tetra
Tech to take any action pursuant to this SECTION 3 with respect to the
Registrable Securities of any selling Holder that such Holder shall furnish to
Tetra Tech such information regarding itself and the Registrable Securities held
by it as shall be required by the Securities Act to effect the registration of
such Holder's Registrable Securities.

                  4.       REGISTRATION EXPENSES. All expenses incident to
any registration to be effected hereunder and incident to Tetra Tech's
performance of or compliance with this Agreement, including without
limitation all registration and filing fees, fees and expenses of compliance
with securities or blue sky laws, printing expenses, messenger and delivery
expenses, National Association of Securities Dealers, Inc., stock exchange
and qualification fees, fees and disbursements of Tetra Tech's counsel and of
independent certified public accountants of Tetra

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Tech (including the expenses of any special audit required by or incident to
such performance), the fees of one counsel and one accountant representing the
Holders in such offering, expenses of the underwriters that are customarily
requested in similar circumstances by such underwriters (excluding discounts,
commissions or fees of underwriters, selling brokers, dealer managers or similar
securities industry professionals relating to the distribution of the
Registrable Securities, which will be borne by the Holders), all such expenses
being herein called "Registration Expenses," will be borne by Tetra Tech. Tetra
Tech will also pay its internal expenses, the expense of any annual audit and
the fees and expenses of any person retained by Tetra Tech.

                  5.       INDEMNIFICATION.

                           (a) INDEMNIFICATION BY TETRA TECH. Tetra Tech agrees
to indemnify and hold harmless each Holder of Registrable Securities, its
officers, directors, partners and employees and each person who controls such
Holder (within the meaning of Section 15 of the Securities Act) from and against
any and all losses, claims, damages and liabilities (including any
investigation, legal or other expenses reasonably incurred in connection with,
and any amount paid in settlement of, any action, suit or proceeding or any
claim asserted) (collectively, "Damages") to which such Holder may become
subject under the Securities Act, the Exchange Act or other federal or state
securities law or regulation, at common law or otherwise, insofar as such
Damages arise out of or are based upon (i) any untrue statement or alleged
untrue statement of a material fact contained in any Registration Statement,
Prospectus or preliminary prospectus or any amendment or supplement thereto,
(ii) the omission or alleged omission to state therein a material fact required
to be stated therein or necessary to make the statements therein, in light of
the circumstances under which they were made, not misleading and (iii) any
violation or alleged violation by Tetra Tech of the Securities Act, the Exchange
Act or any state securities or blue sky laws in connection with the Registration
Statement, Prospectus or preliminary prospectus or any amendment or supplement
thereto, PROVIDED that Tetra Tech will not be liable to any Holder to the extent
that such Damages arise from or are based upon any untrue statement or omission
(y) based upon written information furnished to Tetra Tech by such Holder
expressly for the inclusion in such Registration Statement, and (z) made in any
Prospectus if such untrue statement or omission was corrected in an amendment or
supplement to such Prospectus and such Holder failed to deliver such amendment
or supplement prior to or concurrently with the sale of Registrable Securities
to the party asserting the claim underlying such Damages.

                           (b) INDEMNIFICATION BY HOLDER OF REGISTRABLE
SECURITIES. Each Holder of Registrable Securities whose Registrable Securities
are sold under a Prospectus which is a part of a Registration Statement agrees
to indemnify and hold harmless Tetra Tech, its directors and each officer who
signed such Registration Statement and each person who controls Tetra Tech
(within the meaning of Section 15 of the Securities Act), and each other Holder
of Registrable Securities whose Registrable Securities are sold under the
Prospectus which is a part of such Registration Statement (and such Holder's
officers, directors and employees and each person who controls such Holder
within the meaning of Section 15 of the Securities Act), under the same

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circumstances as the foregoing indemnity from Tetra Tech to each Holder of
Registrable Securities to the extent that such losses, claims, damages,
liabilities or actions arise out of or are based upon any untrue statement of a
material fact or omission of a material fact that was made in the Prospectus,
the Registration Statement, or any amendment or supplement thereto, in reliance
upon and in conformity with information relating to such Holder furnished in
writing to Tetra Tech by such Holder expressly for use therein, PROVIDED that in
no event shall the aggregate liability of any selling Holder of Registrable
Securities exceed the amount of the net proceeds received by such Holder upon
the sale of the Registrable Securities giving rise to such indemnification
obligation. Tetra Tech and the selling Holders shall be entitled to receive
indemnities from underwriters, selling brokers, dealer managers and similar
securities industry professionals participating in the distribution, to the same
extent as customarily furnished by such persons in similar circumstances.

                           (c) CONDUCT OF INDEMNIFICATION PROCEEDINGS. Any
person entitled to indemnification hereunder will (i) give prompt notice to the
indemnifying party of any claim with respect to which it seeks indemnification
and (ii) permit such indemnifying party to assume the defense of such claim with
counsel reasonably satisfactory to the indemnified party; PROVIDED, HOWEVER,
that any person entitled to indemnification hereunder shall have the right to
employ separate counsel and to participate in the defense of such claim, but the
fees and expenses of such counsel shall be at the expense of such person and not
of the indemnifying party unless (A) the indemnifying party has agreed to pay
such fees or expenses, (B) the indemnifying party shall have failed to assume
the defense of such claim and employ counsel reasonably satisfactory to such
person or (C) in the reasonable judgment of such person and the indemnifying
party, based upon advice of their respective counsel, a conflict of interest may
exist between such person and the indemnifying party with respect to such claims
(in which case, if the person notifies the indemnifying party in writing that
such person elects to employ separate counsel at the expense of the indemnifying
party, the indemnifying party shall not have the right to assume the defense of
such claim on behalf of such person). If such defense is not assumed by the
indemnifying party, the indemnifying party will not be subject to any liability
for any settlement made without its consent (but such consent will not be
unreasonably withheld). No indemnified party will be required to consent to
entry of any judgment or enter into any settlement which does not include as an
unconditional term thereof the giving by all claimants or plaintiffs to such
indemnified party of a release from all liability in respect to such claim or
litigation. Any indemnifying party who is not entitled to, or elects not to,
assume the defense of a claim will not be obligated to pay the fees and expenses
of more than one counsel for all parties indemnified by such indemnifying party
with respect to such claim. As used in this SECTION 5(c), the terms
"indemnifying party", "indemnified party" and other terms of similar import are
intended to include only Tetra Tech (and its officers, directors and control
persons as set forth above) on the one hand, and the Holders (and their
officers, directors, partners, employees, attorneys and control persons as set
forth above) on the other hand, as applicable.

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                           (d) CONTRIBUTION. If for any reason the foregoing
indemnity is unavailable, then the indemnifying party shall contribute to the
amount paid or payable by the indemnified party as a result of such losses,
claims, damages, liabilities or expenses (i) in such proportion as is
appropriate to reflect the relative benefits received by the indemnifying party
on the one hand and the indemnified party on the other, or (ii) if the
allocation provided by CLAUSE (i) above is not permitted by applicable law or
provides a lesser sum to the indemnified party than the amount hereinafter
calculated, in such proportion as is appropriate to reflect not only the
relative benefits received by the indemnifying party on the one hand and the
indemnified party on the other but also the relative fault of the indemnifying
party and the indemnified party as well as any other relevant equitable
considerations. Notwithstanding the foregoing, no Holder shall be required to
contribute any amount in excess of the amount such Holder would have been
required to pay to an indemnified party if the indemnity under SECTION 5(b)
hereof was available. No person guilty of fraudulent misrepresentation (within
the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent
misrepresentation. The obligation of any person to contribute pursuant to this
SECTION 5(d) shall be several and not joint.

                           (e) TIMING OF PAYMENTS. An indemnifying party shall
make payments of all amounts required to be made pursuant to the foregoing
provisions of this SECTION 5 to or for the account of the indemnified party from
time to time promptly upon receipt of bills or invoices relating thereto or when
otherwise due or payable.

                           (f) SURVIVAL. The indemnity and contribution
agreements contained in this SECTION 5 shall remain in full force and effect,
regardless of any investigation made by or on behalf of a participating Holder,
its officers, directors, partners, attorneys, agents or any person, if any, who
controls such Holder as aforesaid, and shall survive the transfer of such
Registrable Securities by such Holder.

                  6.       PREPARATION; REASONABLE INVESTIGATION. In
connection with the preparation and filing of a Registration Statement
pursuant to the terms of this Agreement:

                           (a) Tetra Tech shall, with respect to a Registration
Statement filed pursuant to SECTION 2, give the Holders of such Registrable
Securities so registered, their underwriters, if any, and their respective
counsel and accountants the opportunity to participate in the preparation of
such Registration Statement (other than reports and proxy statements
incorporated therein by reference and lawfully and properly filed with the SEC)
and each Prospectus included therein or filed with the SEC, and each amendment
thereof or supplement thereto; and

                           (b) Tetra Tech shall give the Holders of such
Registrable Securities so registered, their underwriters, if any, and their
respective counsel and accountants such

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reasonable access to its books and records and such opportunities to discuss
the business of Tetra Tech with its officers and the independent public
accountants who have certified its financial statements as shall be
necessary, in the opinion of such Holders or such underwriters, to conduct a
reasonable investigation within the meaning of Section 11(b)(3) of the
Securities Act.

                  7. RULE 144. Tetra Tech covenants that it will use its
reasonable best efforts to file, on a timely basis, the reports required to be
filed by it under the Securities Act and the Exchange Act and the rules and
regulations adopted by the SEC thereunder, and it will take such further action
as any Holder may reasonably request (including, without limitation, compliance
with the current public information requirements of Rule 144(c) and Rule 144A),
all to the extent required from time to time to enable such Holder to sell
Registrable Securities without registration under the Securities Act within the
limitation of the conditions provided by Rule 144, Rule 144A or any similar rule
or regulation hereafter adopted by the SEC. Upon the request of any Holder,
Tetra Tech will deliver to such holder a written statement verifying that it has
complied with such information and requirements.

                  8. SPECIFIC PERFORMANCE. Each Holder, in addition to being
entitled to exercise all rights provided herein or granted by law, including
recovery of damages, will be entitled to specific performance of its rights
under this Agreement. Tetra Tech agrees that monetary damages would not be
adequate compensation for any loss incurred by reason of a breach by it of the
provisions of this Agreement and hereby agrees to waive the defense in any
action for specific performance that a remedy at law would be adequate.

                  9. NOTICES. All notices and other communications required or
permitted hereunder shall be in writing and shall be mailed by United States
first-class mail, postage prepaid, sent by facsimile or delivered personally by
hand or nationally recognized courier addressed (a) if to a Holder, as indicated
on the list of Holders attached hereto as SCHEDULE A, or at such other address
as such Holder or permitted assignee shall have furnished to Tetra Tech in
writing, or (b) if to Tetra Tech, at such address or facsimile number as Tetra
Tech shall have furnished to each Holder in writing. All such notices and other
written communications shall be effective on the date of mailing, facsimile
transfer or delivery.

                  10. SUCCESSORS AND ASSIGNS: ASSIGNMENT OF RIGHTS. The rights
and benefits of a Holder hereunder may not be assigned to a transferee or
assignee, without the consent of Tetra Tech; PROVIDED, HOWEVER, that, no later
than the 10th day prior to the filing of the Registration Statement under
SECTION 2 hereof, the rights and benefits of a Holder hereunder may be
transferred in connection with a transfer or assignment of any Registrable
Securities held by such Holder (i) by gift to immediate family members of such
Holder, or trusts or other entities for the sole benefit thereof, or (ii) by
gift to any entity in which such Holder, his or her immediate family members, or
trusts or other entities for the sole benefit thereof beneficially own all of
the voting securities; PROVIDED, HOWEVER, that in each case, the transferee
executes an instrument

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pursuant to which the transferee agrees to be bound by the terms and
conditions hereof as a Holder, and such other documents as Tetra Tech or its
counsel may reasonably require, after which, such transferee shall be deemed
a "Holder" hereunder. Any transfer of Registrable Securities, and rights
hereunder, shall be subject to compliance with applicable securities laws and
the restrictions contained in the Investment Letter executed by each Holder
pursuant to the Stock Purchase Agreement.

                  11. SEVERABILITY. In the event that any one or more of the
provisions contained herein, or the application thereof in any circumstance, is
held invalid, illegal or unenforceable, the validity, legality and
enforceability of any such provision in every other respect and of the remaining
provisions contained herein shall not be affected or impaired thereby.

                  12. ENTIRE AGREEMENT; AMENDMENT; WAIVER. This Agreement, the
Stock Purchase Agreement and the other agreements contemplated thereby
constitute the full and entire understanding and agreement among the parties
with regard to the subjects hereof and thereof. Without limiting the foregoing,
the rights of the Holders to registration pursuant to the terms of this
Agreement shall be subject to the limitations on resale contained in the
Investment Letter (as defined in the Stock Purchase Agreement). Neither this
Agreement nor any term hereof may be amended, waived, discharged or terminated,
except by a written instrument signed by Tetra Tech and the holders of at least
51% of the Registrable Securities and any such amendment, waiver, discharge or
termination shall be binding upon all the parties hereto, but in no event shall
the obligation of any party hereto be materially increased, except upon the
written consent of such party.

                  13. COUNTERPARTS. This Agreement may be executed in any number
of counterparts, each of which shall be original, and all of which together
shall constitute one instrument.

                  14. GOVERNING LAW. This Agreement shall be governed by, and
construed in accordance with, the laws of the State of California without giving
effect to principles of conflicts of laws thereof.

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                  15. NO THIRD PARTY BENEFICIARIES. The covenants and agreements
set forth herein are for the sole and exclusive benefit of the parties hereto
and their respective successors and assigns and such covenants and agreements
shall not be construed as conferring, and are not intended to confer, any rights
or benefits upon any other persons.

                  IN WITNESS WHEREOF, the parties hereto have executed this
Agreement as of the day and year first above written.

                                               TETRA TECH, INC.

                                       By:     /s/ Li-San Hwang
                                               -------------------------------
                                               Li-San Hwang
                                               Chairman, Chief Executive
                                               Officer and President

                                       /s/ John E. Adams
                                       ---------------------------------------
                                       John E. Adams

                                       /s/ Harold E. Fitzgerald
                                       ---------------------------------------
                                       Harold E. Fitzgerald

                                       /s/ Raymond C. Johnson
                                       ---------------------------------------
                                       Raymond C. Johnson

                                       /s/ Brian P. Sullivan
                                       ---------------------------------------
                                       Brian P. Sullivan

                                       /s/ Richard S. Bryant
                                       ---------------------------------------
                                       Richard S. Bryant

                                       /s/ Amy M. Green
                                       ---------------------------------------
                                       Amy M. Green

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                                       /s/ Kelly M. Amrhein
                                       ---------------------------------------
                                       Kelly M. Amrhein

                                       /s/ Wayne E. Bates
                                       ---------------------------------------
                                       Wayne E. Bates

                                       /s/ Daniel D. Breuer
                                       ---------------------------------------
                                       Daniel D. Breuer

                                       /s/ Robert J. Davis
                                       ---------------------------------------
                                       Robert J. Davis

                                       /s/ Edward W. Ionata
                                       ---------------------------------------
                                       Edward W. Ionata

                                       /s/ Michael E. Billa
                                       ---------------------------------------
                                       Michael E. Billa

                                       /s/ Francis X. Dougherty
                                       ---------------------------------------
                                       Francis X. Dougherty

                                       /s/ George E. Gurney
                                       ---------------------------------------
                                       George E. Gurney

                                       /s/ Anthony Omobono
                                       ---------------------------------------
                                       Anthony Omobono

                                       /s/ Joseph E. Beggan
                                       ---------------------------------------
                                       Joseph E. Beggan

                                       /s/ Domenic J. Ciavarro
                                       ---------------------------------------
                                       Domenic J. Ciavarro

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                                       /s/ Colleen P. Hansen
                                       ---------------------------------------
                                       Colleen P. Hansen

                                       /s/ Kevin F. Biernacki
                                       ---------------------------------------
                                       Kevin F. Biernacki

                                       14

<PAGE>

                                                  SCHEDULE A

                                             SCHEDULE OF HOLDERS
<TABLE>
<CAPTION>
                                                                     Number of Shares of Tetra Tech Common
                                                                              Stock Issuable Pursuant
         Holder's Name/Address/Facsimile No.                            to the Stock Purchase Agreement
-------------------------------------------------------       ----------------------------------------------------
<S>                                                           <C>
William J. Rizzo, Jr.                                                               48,709
38 Sandy Pond Road
Lincoln Center, MA 01773

James F. Carlin                                                                     22,578
619 Washington Street, Unit D
Wellesley, MA 02482

Richard A. Moore                                                                     9,203
85 East India Row #30
Boston, MA 02110

Elizabeth K. Levin                                                                   8,700
48 Appleton Street
Boston, MA 02106

Samuel E. Park                                                                       8,342
845 North Street
Walpole, MA 02081

Richard J. Hughto                                                                    6,850
7 Cornell Road
Wellesley, MA 02482

Charles Button                                                                       1,429
92 Vermont Street
West Roxbury, MA 02132

John E. Adams                                                                        1,305
3 Westview Drive
Granby, CT 06035

</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                                                     Number of Shares of Tetra Tech Common
                                                                             Stock Issuable Pursuant
         Holder's Name/Address/Facsimile No.                            to the Stock Purchase Agreement
-------------------------------------------------------       ----------------------------------------------------
<S>                                                           <C>
Harold E. Fitzgerald                                                                 1,148
12 Willard Terrace
Randolph, MA 02368

Raymond C. Johnson                                                                    860
130 Nourse Street
Westborough, MA 01581

Brian P. Sullivan                                                                     845
28 Lincoln Drive
Acton, MA 01720

Richard S. Bryant                                                                     373
3 Washbrook Road
Sudbury, MA 01776

Amy M. Green                                                                          206
26 Captain Brown's Lane
Acton, MA 01720

Kelly M. Amrhein                                                                      181
20 Pheasant Hollow Road
Natick, MA 01760

Wayne E. Bates                                                                        221
17 Riverview Drive
Ashland, MA 01721

Daniel D. Breuer                                                                      214
115 Cobleigh Road
Boxborough, MA 01719

Robert J. Davis                                                                       213
75 Wheeler Circle, #114
Stoughton, MA 02072

Edward W. Ionata                                                                      209

</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                                                  Number of Shares of Tetra Tech Common Stock
                                                                               Issuable Pursuant
         Holder's Name/Address/Facsimile No.                            to the Stock Purchase Agreement
-------------------------------------------------------       ----------------------------------------------------
<S>                                                           <C>
26 First Street
Barrington, RI 02806

Michael E. Billa                                                                      169
8 Service Drive
Wellesley, MA 02482

Francis X. Dougherty                                                                  166
237 Robert Road
Marlborough, MA 01752

George E. Gurney                                                                      163
75 Brainard Road
West Hartford, CT 06117

Anthony Omobono                                                                       160
6 Longmeadow Road
Chelmsford, MA 01824

Joseph E. Beggan                                                                      48
2 Sunday Drive
Beverly, MA 01915

Domenic J. Ciavarro                                                                   48
11 Belmont Court
Bedford, NH 03110

Colleen P. Hansen                                                                     48
74 Hartford Avenue, South
Upton, MA 01568

Kevin F. Biernacki                                                                    48
129 Birch Grove Drive
Pittsfield, MA 01201

</TABLE><PAGE>

                                                                    EXHIBIT 10.1

                          APAC CUSTOMER SERVICES, INC.

                           SECOND AMENDED AND RESTATED
                            1995 INCENTIVE STOCK PLAN

     1.    PURPOSE. The APAC CUSTOMER SERVICES, INC. Second Amended and Restated
1995 Incentive Stock Plan (the "Plan") is the result of the merger of the APAC
Teleservices, Inc. Amended and Restated 1995 Non-Employee Director Stock Option
Plan (the "Director Plan") and the APAC Teleservices, Inc. Amended and Restated
1995 Incentive Stock Plan (the "Prior Plan") and is intended to provide
incentives which will attract and retain highly competent persons as officers
and key employees of APAC Customer Services, Inc. (formerly known as "APAC
Teleservices, Inc.") (the "Company") and members of its Board of Directors, as
well as independent contractors providing consulting or advisory services to the
Company, by providing them opportunities to acquire Common Shares of the Company
("Common Shares") or to receive monetary payments based on the value of such
shares pursuant to the Awards described herein.

     2.    ADMINISTRATION. The Plan will be administered by the Compensation
Committee (the "Committee") appointed by the Board of Directors of the Company
from among its members and, with respect to the participation of non-employee
directors, may be administered by a committee consisting of members of the Board
of Directors who are employees (who, for such purpose, will be within the
contemplation of the term "Committee"). As long as Common Shares are registered
under the Securities Exchange Act of 1934, members of the Committee must qualify
as non-employee directors within the meaning of Securities and Exchange
Commission Regulation Section 240.16b-3 and outside directors within the meaning
of Section 162(m) of the Internal Revenue Code. The Committee is authorized,
subject to the provisions of the Plan, to establish such rules and regulations
as it deems necessary for the proper administration of the Plan and to make such
determinations and interpretations and to take such action in connection with
the Plan and any Awards granted hereunder as it deems necessary or advisable.
All determinations and interpretations made by the Committee shall be binding
and conclusive on all participants and their legal representatives. No member of
the Board, no member of the Committee and no employee of the Company shall be
liable for any act or failure to act hereunder, by any other member or employee
or by any agent to whom duties in connection with the administration of this
Plan have been delegated or, except in circumstances involving his bad faith,
gross negligence or fraud, for any act or failure to act by the member or
employee.

     3.    PARTICIPANTS. Participants will consist of such officers and key
employees of the Company, members of its Board of Directors, and independent
contractors providing consulting or advisory services to the Company, as the
Committee in its sole discretion determines to be significantly responsible for
the success and future growth and profitability of the Company and whom the
Committee may designate from time to time to receive Awards under the Plan.
Designation of a participant in any year shall not require the Committee to
designate such person to receive an Award in any other year or, once designated,
to receive the same type or amount of Awards as granted to the participant in
any year. The Committee shall

<PAGE>

consider such factors as it deems pertinent in selecting participants and in
determining the type and amount of their respective Awards.

     4.    TYPES OF AWARDS. Awards under the Plan may be granted in any one or a
combination of (a) Stock Options, (b) Stock Appreciation Rights, (c) Stock
Awards, (d) Performance Shares, and (e) Performance Units, all as described
below (collectively "Awards").

     5.    SHARES RESERVED UNDER THE PLAN. There is hereby reserved for issuance
under the Plan a number of Common Shares equal to the aggregate number of shares
reserved under the Director Plan and the Prior Plan reduced by the number of
shares previously used under either Plan, which may be authorized but unissued
shares; provided that no such shares attributable to the Director Plan may be
subject to Incentive Stock Options (defined below). In addition, any Common
Shares subject to options currently outstanding as of the original date of
adoption of the Prior Plan under the Company's agreements with employees of the
Company which lapsed, expired or are terminated shall be available for Awards
hereunder. Any shares subject to Stock Options or Stock Appreciation Rights or
issued under such options or rights or as Stock Awards may thereafter be subject
to new options, rights or awards under this Plan if there is a lapse, expiration
or termination of any such options, or rights prior to issuance of the shares or
the payment of the equivalent or if shares are issued under such options or
rights or as such awards, and thereafter are reacquired by the Company pursuant
to rights reserved by the Company upon issuance thereof; provided that no such
shares attributable to the Director Plan may be subject to Incentive Stock
Options.

     6.    STOCK OPTIONS. Stock Options will consist of awards from the Company,
in the form of agreements, which will enable the holder to purchase a specific
number of Common Shares, at set terms and at a fixed purchase price. Stock
Options may be "incentive stock options" within the meaning of Section 422 of
the Internal Revenue Code ("Incentive Stock Options") or Stock Options which do
not constitute Incentive Stock Options ("Nonqualified Stock Options"). The
Committee will have the authority to grant to any participant one or more
Incentive Stock Options, Nonqualified Stock Options, or both types of Stock
options (in each case with or without Stock Appreciation Rights). On the date of
each annual meeting of the shareholders of the Company ("Annual Meeting"), each
member of the Board of Directors of the Company who is not a salaried officer or
employee of the Company or any of its direct or indirect subsidiaries (a
"Nonemployee Director") in office on adjournment of the Annual Meeting, will
automatically be awarded a Nonqualified Stock Option to purchase (i) prior to
January 1, 1997, five thousand (5,000) Common Shares, and (ii) from and after
January 1, 1997, a number of Common Shares determined by the Board of Directors
prior to such Annual Meeting. Effective as of May 18, 1999, on the date of each
regular meeting of the Board of Directors, each Nonemployee Director who attends
such meeting in person shall receive a Nonqualified Stock Option to purchase
1,000 Common Shares, and each Nonemployee Director who attends such meeting by
telephone shall receive a Nonqualified Stock Option to purchase 500 Common
Shares. The Stock Options granted in the preceding two sentences shall be
referred to as "Director Options." Each Stock Option shall be subject to such
terms and conditions consistent with the Plan as the Committee may impose from
time to time, subject to the following limitations:

                                       2
<PAGE>

           (A)   EXERCISE PRICE. Each Stock Option granted hereunder shall have
such per-share exercise price as the Committee may determine at the date of
grant provided, however, that (i) subject to paragraph (E), the per-share
exercise price for Incentive Stock options shall not be less than 100% of the
Fair Market Value of the Common Shares on the date the option is granted; and
(ii) the per-share exercise price for Nonqualified Stock Options shall not be
less than 85% of the Fair Market Value of the Common Shares on the date the
option is granted; and (iii) the per-share exercise price for a Director Option
shall be the Fair Market Value of a Common Share on the date of the applicable
Annual Meeting or regular meeting of the Board of Directors.

           (B)   PAYMENT OF EXERCISE PRICE. The option exercise price may be
paid by check or, in the discretion of the Committee, by the delivery (or
certification of ownership) of Common Shares of the Company then owned by the
participant; provided, however, that option agreements may provide that payment
of the exercise price by delivery of Common Shares of the Company then owned by
the participant may be made only if such payment does not result in a charge to
earnings for financial accounting purposes as determined by the Committee. In
the discretion of the Committee, if Common Shares are readily tradeable on a
national securities exchange or other market system at the time of option
exercise, payment may also be made by delivering a properly executed exercise
notice to the Company together with a copy of irrevocable instructions to a
broker to deliver promptly to the Company the amount of sale or loan proceeds to
pay the exercise price. To facilitate the foregoing, the Company may enter into
agreements for coordinated procedures with one or more brokerage firms.

           (C)   EXERCISE PERIOD. Stock Options granted under the Plan shall be
exercisable at such times and subject to such terms and conditions as shall be
determined by the Committee. Any Director Option may be exercised in whole or in
part, from time to time after the date granted, subject to the following
limitations:

           i.    No Director Option may be exercised during the first year
following the date such option was granted. Thereafter, each Director Option may
be exercised:

                 a. to a maximum cumulative extent of one-third (1/3) of the
           total shares covered by the option on or after the first anniversary
           of the date the option was granted;

                 b. to a maximum cumulative extent of two-thirds (2/3) of
           the total shares covered by the option on or after the second
           anniversary of the date the option was granted; and

                c.  to a maximum cumulative extent of 100% of the total option
           shares on or after the third anniversary of the date the option was
           granted.

           ii.   Notwithstanding the above limitations, any option granted under
this Plan shall become fully exercisable upon the death of the Nonemployee
Director while serving on the Board or upon the retirement of the Nonemployee
Director if such death or Retirement occurs on or after the first anniversary of
the date such option was issued. For these purposes,

                                       3
<PAGE>

"Retirement" means a Nonemployee Director's termination of service as a member
of the Board after age 70 or at any time with the consent of the Board.

           iii.  Any Director Option may not be exercised after the earliest to
occur of any of the following events:

                 a.   more than ninety (90) days after termination of any
           Nonemployee Director's service as a member of the Board for any
           reason other than death or Retirement (and, subject to paragraph
           (D), then only to the extent that the Nonemployee Director could
           have exercised such option on the date of termination);

                 b.   more than one hundred eighty (180) days after a
           Nonemployee Director's Retirement from the Board (and, subject to
           paragraph (D), then only to the extent that the Nonemployee Director
           could have exercised such option on the date of Retirement);

                 c.   more than twelve months after death of a Nonemployee
           Director (and, subject to paragraph (D), then only to the extent
           that the Nonemployee Director could have exercised such option on
           the date of death); or

                 d.   more than ten (10) years from the date the option is
           granted.

In addition, Nonqualified Stock Options shall not be exercisable later than
fifteen years after the date they are granted and (subject to paragraph (E))
Incentive Stock Options shall not be exercisable later than ten years after the
date they are granted. All Stock Options shall terminate at such earlier times
and upon such conditions or circumstances as the Committee shall in its
discretion set forth in such option at the date of grant.

           (D)   CHANGE IN CONTROL. Notwithstanding the provisions of paragraph
(C), if (i) there is a Change in Control of the Company, and (ii) the Committee
does not declare, by resolution, that the pooling treatment of a transaction to
which the Company is a party would be adversely affected by application of the
following, then all Stock Options granted under the Plan that have not
previously terminated (including those granted before the date that this Second
Amended and Restated Plan was adopted, but not including those subject to
provisions that would result in the Stock Option's becoming exercisable to a
greater extent) shall be subject to the following: (i) as of the date of the
Change in Control, to the extent any such Stock Option is not exercisable, it
shall become exercisable as to one-half of the shares subject to the
unexercisable portion of the Stock Option; and (ii) if the employment of the
holder of the Stock Option is terminated by the Company other than With Cause or
such holder terminates such employment with Good Reason (or, in the case of a
Nonemployee Director, his service as a member of the Board terminates for any
reason), then such Stock Option, to the extent not previously terminated and not
exercisable at the date such employment (or service) terminates, shall become
fully exercisable. For purposes of the foregoing:

           (a)   A "Change in Control" shall be deemed to have occurred if
                 (I) a tender offer shall be made and consummated for the
                 ownership of more than 50% of the outstanding voting
                 securities of the Company, (II) the Company

                                       4
<PAGE>

                 shall be merged or consolidated with another corporation and
                 as a result of such merger or consolidation less than 50% of
                 the outstanding voting securities of the surviving or
                 resulting corporation shall be owned in the aggregate by the
                 former shareholders of the Company, as the same shall have
                 existed immediately prior to such merger or consolidation,
                 (III) the Company shall sell all or substantially all of its
                 assets to another corporation which is not a wholly-owned
                 subsidiary or affiliate, (IV) as the result of, or in
                 connection with, any contested election for the Board of
                 Directors, or any tender or exchange offer, merger or business
                 combination or sale of assets, or any combination of the
                 foregoing (a "Transaction"), the persons who were Directors of
                 the Company before the Transaction shall cease to constitute a
                 majority of the Board of Directors of the Company, or any
                 successor thereto, or (V) a person, within the meaning of
                 Section 3(a)(9) or of Section 13(d)(3) of the Securities and
                 Exchange Act of 1934 ("Exchange Act"), other than any employee
                 benefit plan then maintained by the Company, shall acquire
                 more than 50% of the outstanding voting securities of the
                 Company (whether directly, indirectly, beneficially or of
                 record). For purposes hereof, ownership of voting securities
                 shall take into account and shall include ownership as
                 determined by applying the provisions of Rule 13d-3(d)(1)(i)
                 pursuant to the Exchange Act. Notwithstanding the foregoing,
                 (I) a Change in Control will not occur for purposes of the
                 Plan merely due to the death of Theodore G. Schwartz, or as a
                 result of the acquisition, by Theodore G. Schwartz, alone or
                 with one or more affiliates or associates, as defined in the
                 Exchange Act, of securities of the Company, as part of a
                 going-private transaction or otherwise, unless Mr. Schwartz or
                 his affiliates, associates, family members or trusts for the
                 benefit of family members (collectively, the "Schwartz
                 Entities") do not control, directly or indirectly, at least
                 twenty-seven percent (27%) of the resulting entity, and (II)
                 if the Schwartz Entities control, directly or indirectly, less
                 than twenty-seven percent (27%) of the Company's voting
                 securities while it is a public company, then "33-1/3%" shall
                 be substituted for "50%" in clauses (I), (II) and (V) of the
                 first sentence of this paragraph.

           (b)   Termination with "Good Reason" means termination of the Stock
                 Option holder's employment by the Stock Option holder within
                 twelve (12) months following a Change in Control, as defined
                 above, but only if, after notice by the Stock Option holder to
                 the Company and a fifteen (15) day opportunity by the Company
                 to cure, (I) the Stock Option holder's principal place of work
                 (not including regular business travel) is relocated by more
                 than fifty (50) miles, (II) the Stock Option holder's duties,
                 responsibilities or authority as an executive employee are
                 materially reduced or diminished without the Stock Option
                 holder's written consent; provided that any reduction or
                 diminishment in any of the foregoing resulting merely from the
                 acquisition of the Company and its existence as a subsidiary
                 or division of another entity shall not be sufficient to
                 constitute Good Reason, (III) the compensation received by the
                 Stock

                                       5
<PAGE>

                 Option holder is reduced in the aggregate, and such reduction
                 is not remedied within thirty (30) days of the Stock Option
                 holder's notice to the Company thereof, (IV) a determination
                 is made by the Stock Option holder in good faith that as a
                 result of the Change in Control, and a change in circumstances
                 thereafter, significantly affecting his position, he is unable
                 to carry out the authorities, powers, functions or duties
                 attached to his position and the situation is not remedied
                 within thirty (30) days after receipt of the Company of
                 written notice from the Stock Option holder of such
                 determination, (V) if the Stock Option holder and the Company
                 have entered into a written Employment Agreement, the Company
                 violates the material terms of such Employment Agreement, or
                 (VI) there is a liquidation, dissolution, consolidation or
                 merger of the Company or transfer of all or a significant
                 portion of its assets unless a successor or successors (by
                 merger, consolidation or otherwise) to which all or a
                 significant portion of its assets have been transferred shall
                 have assumed all duties and obligations of the Company under
                 such Employment Agreement, if any.

           (c)   Termination "With Cause" means termination of the Stock Option
                 holder's employment by the Board of Directors acting in good
                 faith by written notice by the Company to the Stock Option
                 holder specifying the event relied upon for such termination,
                 due to (I) gross misconduct or gross negligence in the
                 performance of the Stock Option holder's employment duties,
                 (II) willful disobedience by the Stock Option holder of the
                 lawful directions received from or policies established by the
                 Board of Directors, which continues for more than seven (7)
                 days after the Company notifies the Stock Option holder of its
                 intention to terminate his employment on account of such
                 disobedience, or (III) commission by the Stock Option holder
                 of a crime involving fraud or moral turpitude that can
                 reasonably be expected to have an adverse effect on the
                 business, reputation or financial situation of the Company.

           (E)   LlMITATIONS ON INCENTIVE STOCK OPTIONS. Incentive Stock Options
may be granted only to participants who are employees of the Company or one of
its subsidiaries (within the meaning of Section 424(f) of the Internal Revenue
Code) at the date of grant. The aggregate Fair Market Value (determined as of
the time the option is granted) of the Common Shares with respect to which
Incentive Stock Options are exercisable for the first time by a participant
during any calendar year (under all option plans of the Company) shall not
exceed $100,000. Incentive Stock Options may not be granted to any participant
who, at the time of grant, owns stock possessing (after the application of the
attribution rules of Section 424(d) of the Code) more than 10% of the total
combined voting power of all classes of stock of the Company, unless the option
price is fixed at not less than 110% of the Fair Market Value of the Common
Shares on the date of grant and the exercise of such option is prohibited by its
terms after the expiration of five years from the date of grant of such option.

           (F) REDESIGNATION AS NONQUALIFIED STOCK OPTIONS. Options designated
as "incentive stock options" that fail to continue to meet the requirements of
Section

                                       6
<PAGE>

422 of the Internal Revenue Code shall be redesignated as nonqualified
options for Federal income tax purposes automatically without further action by
the Committee on the date of such failure to continue to meet the requirements
of Section 422 of the Code.

           (G) LIMITATION OF RIGHTS IN SHARES. The recipient of a Stock Option
shall not be deemed for any purpose to be a shareholder of the Company with
respect to any of the shares subject thereto except to the extent that the Stock
Option shall have been exercised and, in addition, a certificate shall have been
issued and delivered to the participant.

           (H) INDIVIDUAL LIMITATION ON NUMBER OF SHARES. The number of shares
subject to Stock Options which may he granted during any calendar year to any
one participant shall not exceed one million one hundred thousand (1,100,000)
shares.

     7.    STOCK APPRECIATION RIGHTS. The Committee may, in its discretion,
grant Stock Appreciation Rights to the holders of any Stock Options granted
hereunder. In addition, Stock Appreciation Rights may be granted independently
of and without relation to options. The number of shares subject to Stock
Appreciation Rights which may be granted during any calendar year to any one
participant shall not exceed seven hundred seventy thousand (770,000) shares.
Each Stock Appreciation Right shall be subject to such terms and conditions
consistent with the Plan as the Committee shall impose from time to time,
including the following:

           (A)   A Stock Appreciation Right relating to a Nonqualified Stock
Option may be made part of such option at the time of its grant or at any time
thereafter up to six months prior to its expiration, and a Stock Appreciation
Right relating to an Incentive Stock Option may be made part of such option only
at the time of its grant.

           (B)   Each Stock Appreciation Right will entitle the holder to elect
to receive the appreciation in the Fair Market Value of the shares subject
thereto up to the date the right is exercised. In the case of a right issued in
relation to a Stock Option, such appreciation shall be measured from not less
than the option price and in the case of a right issued independently of any
Stock Option, such appreciation shall be measured from not less than 85% of the
Fair Market Value of the Common Shares on the date the right is granted. Payment
of such appreciation shall be made in cash or in Common Shares, or a combination
thereof, as set forth in the award, but no Stock Appreciation Right shall
entitle the holder to receive, upon exercise thereof, more than the number of
Common Shares (or cash of equal value) with respect to which the right is grant.

           (C)   Each Stock Appreciation Right will be exercisable at the times
and to the extent set forth therein, but no Stock Appreciation Right may be
exercisable earlier than six months after the date it was granted or later than
the earlier of (i) the term of the related option, if any, or (ii) fifteen years
after it was granted. Exercise of a Stock Appreciation Right shall reduce the
number of shares issuable under the Plan (and the related option, if any) by the
number of shares with respect to which the right is exercised. Each Stock
Appreciation Right shall also be subject to the terms of Section 6(D).

                                       7
<PAGE>

     8.    STOCK AWARDS. Stock Awards will consist of Common Shares transferred
to participants without other payment therefor as additional compensation for
services to the Company. Stock Awards shall be subject to such terms and
conditions as the Committee determines appropriate, including, without
limitation, restrictions on the sale or other disposition of such shares and
rights of the Company to reacquire such shares for no consideration upon
termination of the participant's employment within specified periods. The
Committee may require the participant to deliver a duly signed stock power,
endorsed in blank, relating to the Common Shares covered by such an Award. The
Committee may also require that the stock certificates evidencing such shares be
held in custody until the restrictions thereon shall have lapsed. The
participant shall have, with respect to the Common Shares subject to a Stock
Award, all of the rights of a holder of Common Shares of the Company, including
the right to receive dividends and to vote the shares.

     9.    PERFORMANCE SHARES.

           (A)   Performance Shares may be awarded either alone or in addition
to other Awards granted under this Plan and shall consist of the right to
receive Common Shares or cash of an equivalent value at the end of a specified
Performance Period (defined below). The Committee shall determine the
participants to whom and the time or times at which Performance Shares shall be
awarded, the number of Performance Shares to be awarded to any person, the
duration of the period (the "Performance Period") during which, and the
conditions under which, receipt of the Common Shares will be deferred, and the
other terms and conditions of the Award in addition to those set forth in this
Section 9. The Committee may condition the grant of Performance Shares upon the
attainment of specified performance goals or such other factors or criteria as
the Committee shall determine.

           (B)   Performance Shares awarded pursuant to this Section 9 shall be
subject to the following terms and conditions:

     (I)   Unless otherwise determined by the Committee at the time of the grant
           of the Award, amounts equal to any dividends declared during the
           Performance Period with respect to the number of Common Shares
           covered by a Performance Share Award will not be paid to the
           participant.

     (II)  Subject to the provisions of the Performance Share Award and this
           Plan, at the expiration of the Performance Period, share
           certificates and/or cash of an equivalent value (as the Committee
           may determine) shall be delivered to the participant, or his or her
           legal representative, in a number equal to the vested shares covered
           by the Performance Share Award.

     (III) Subject to the applicable provisions of the Performance Share Award
           and this Plan, upon termination of a participant's employment with
           the Company for any reason during the Performance Period for a given
           Performance Share Award, the Performance Shares in question will
           vest or be forfeited in accordance with the terms and conditions
           established by the Committee.

                                       8
<PAGE>

     10.   PERFORMANCE UNITS.

           (A)   Performance Units may be awarded either alone or in addition to
other Awards granted under this Plan and shall consist of the right to receive a
fixed dollar amount payable in cash or Common Shares or a combination of both.
The Committee shall determine the participants to whom and the time or times at
which Performance Units shall be awarded, the number of Performance Units to be
awarded to any person, the duration of the period (the "Performance Cycle")
during which, and the conditions under which, a participant's right to
Performance Units will be vested, the ability of participants to defer the
receipt of payment of such Performance Units, and the other terms and conditions
of the Award in addition to those set forth in Section 10. The Committee may
condition the vesting of Performance Units upon the attainment of specified
performance goals or such other factors or criteria as the Committee shall
determine.

           (B)   The Performance Units awarded pursuant to this Section 10 shall
be subject to the following terms and conditions:

     (I)   At the expiration of the Performance Cycle, the Committee shall
           determine the extent to which the performance goals have been
           achieved, and the percentage of the Performance Units of each
           participant that have vested.

     (II)  Subject to the applicable provisions of the Performance Unit Award
           and this Plan, at the expiration of the Performance Cycle, cash
           and/or share certificates of an equivalent value (as the Committee
           may determine) shall be delivered to the participant, or his or her
           legal representative, in payment of the vested Performance Units
           covered by the Performance Unit Award.

     (III) Subject to the applicable provisions of the Performance Unit Award
           and this Plan, upon termination of a participant's employment with
           the Company for any reason during the Performance Cycle for a given
           Performance Unit Award, the Performance Units in question will vest
           or be forfeited in accordance with the terms and conditions
           established by the Committee.

     11.   ADJUSTMENT PROVISIONS.

           (A)   If the Company shall at any time change the number of issued
Common Shares without new consideration to the Company (such as by stock
dividend, stock split, recapitalization, reorganization, exchange of shares,
liquidation, combination or other change in corporate structure affecting the
Common Shares) or make a distribution of cash or property which has a
substantial impact on the value of issued Common Shares, the total number of
shares available for Awards under this Plan shall be appropriately adjusted and
the number of shares covered by each outstanding Award and the reference price
or Fair Market Value for each outstanding Award shall be adjusted so that the
net value of such Award shall not be changed.

           (B)   In the case of any sale of assets, merger, consolidation,
combination or other corporate reorganization or restructuring of the Company
with or into another corporation which results in the outstanding Common Shares
being converted into or exchanged for different

                                       9
<PAGE>

securities, cash or other property, or any combination thereof (an
"Acquisition"), subject to the provisions of this Plan and any limitation
applicable to the Award:

     (I)   any participant to whom a Stock Option has been granted shall have
           the right thereafter and during the term of the Stock Option, to
           receive upon exercise thereof the Acquisition Consideration (as
           defined below) receivable upon the Acquisition by a holder of the
           number of Common Shares which might have been obtained upon exercise
           of the Stock Option or portion thereof, as the case may be,
           immediately prior to the Acquisition;

     (II)  any participant to whom a Stock Appreciation Right has been granted
           shall have the right thereafter and during the term of such right of
           the Acquisition Consideration receivable upon such acquisition by a
           holder of the number of Common Shares which are covered by such
           right and the aggregate reference price of such right; and

     (III) any participant to whom Performance Shares or Performance Units have
           been awarded shall have the right thereafter and during the term of
           the Award, upon fulfillment of the terms of the Award, to receive on
           the date or dates set forth in the Award, the Acquisition
           Consideration receivable upon the Acquisition by a holder of the
           number of Common Shares which are covered by the Award.

           The term "Acquisition Consideration" shall mean the kind and amount
           of securities, cash or other property or any combination thereof
           receivable in respect of one Common Share upon consummation of an
           Acquisition.

           (C)   Notwithstanding any other provision of this Plan, the Committee
may authorize the issuance, continuation or assumption of Awards or provide for
other equitable adjustments after changes in the Common Shares resulting from
any other merger, consolidation, sale of assets, acquisition of property or
stock, recapitalization, reorganization or similar occurrence upon such terms
and conditions as it may deem equitable and appropriate.

           (D) In the event that another corporation or business entity is being
acquired by the Company, and the Company assumes outstanding employee stock
options and/or stock appreciation rights and/or the obligation to make future
grants of options or rights to employees of the acquired entity, the aggregate
number of Common Shares available for Awards under this Plan shall be increased
accordingly.

     12.   NONTRANSFERABILITY.

           (A)   Each Award granted under the Plan to a participant shall not be
transferable by him otherwise than by law or by will or the laws of descent and
distribution, and shall be exercisable, during his lifetime, only by him. In the
event of the death of a participant while the participant is rendering services
to the Company, each Stock Option or Stock Appreciation Right theretofore
granted to him shall be exercisable during such period after his death as the
Committee shall in its discretion set forth in such option or right at the date
of grant (but not beyond the stated duration of the option or right) and then
only:

                                       10
<PAGE>

     (I)   By the executor or administrator of the estate of the deceased
           participant or the person or persons to whom the deceased
           participant's rights under the Stock Option or Stock Appreciation
           Right shall pass by will or the laws of descent and distribution;
           and

     (II)  Subject to Section 6(D), to the extent that the deceased participant
           was entitled to do so at the date of his death.

           (B)   Notwithstanding Section 12(A), in the discretion of the
Committee, Awards granted hereunder may be transferred to members of the
participant's immediate family (which for purposes of this Plan shall be limited
to the participant's children, grandchildren and spouse), or to one or more
trusts for the benefit of such family members or partnerships in which such
family members and/or trusts are the only partners, but only if the Award
expressly so provides.

     13.   OTHER PROVISIONS. Awards under the Plan may also be subject to such
other provisions (whether or not applicable to any other Awards under the Plan)
as the Committee determines appropriate, including without limitation,
provisions for the installment purchase of Common Shares under Stock Options,
provisions for the installment exercise of Stock Appreciation Rights, provisions
to assist the participant in financing the acquisition of Common Shares,
provisions for the forfeiture of, or restrictions on resale or other disposition
of Shares acquired under any form of Award, provisions for the acceleration of
exercisability or vesting of Awards in the event of a change of control of the
Company, provisions for the payment of the value of Awards to participants in
the event of a change of control of the Company, provisions for the forfeiture
of, or provisions to comply with Federal and state securities laws, or
understandings or conditions as to the participant's employment in addition to
those specifically provided for under the Plan.

     14.   FAIR MARKET VALUE. For purposes of this Plan and any Awards
hereunder, Fair Market Value of Common Shares shall be the mean between the
highest and lowest sale prices for the Company's Common Shares as reported on
the NASDAQ National Market System (or such other consolidated transaction
reporting system on which such Common Shares are primarily traded) on the date
of calculation (or on the next preceding trading date if Common Shares were not
traded on the date of calculation), provided, however, that if the Company's
Common Shares are not at any time readily tradeable on a national securities
exchange or other market system, Fair Market Value shall mean the amount
determined in good faith by the Committee as the fair market value of the Common
Shares of the Company.

     15.   WITHHOLDING. All payments or distributions made pursuant to the Plan
shall be net of any amounts required to be withheld pursuant to applicable
federal, state and local tax withholding requirements. If the Company proposes
or is required to distribute Common Shares pursuant to the Plan, it may require
the recipient to remit to it an amount sufficient to satisfy such tax
withholding requirements prior to the delivery of any certificates for such
Common Shares. The Committee may, in its discretion and subject to such rules as
it may adopt, permit an optionee or award or right holder to pay all or a
portion of the federal, state and local withholding taxes arising in connection
with (a) the exercise of a Nonqualified Stock Option or a

                                       11
<PAGE>

Stock Appreciation Right, (b) the receipt or vesting of Stock Awards, or (c) the
receipt of Common Shares upon the expiration of the Performance Period or the
Performance Cycle, respectively, with respect to any Performance Shares or
Performance Units, by electing to have the Company withhold Common Shares having
a Fair Market Value equal to the amount to be withheld.

     16.   TENURE. A participant's right, if any, to continue to serve the
Company as an officer, employee, independent contractor, or otherwise, shall not
be enlarged or otherwise affected by his designation as a participant under the
Plan, nor shall this Plan in any way interfere with the right of the Company,
subject to the terms of any separate employment agreement to the contrary, at
any time to terminate such employment or to increase or decrease the
compensation of the participant from the rate in existence at the time of the
grant of an Award.

     17.   DURATION, AMENDMENT AND TERMINATION. No Award shall be granted after
July 1, 2005; provided, however, that the terms and conditions applicable to any
Award granted prior to such date may thereafter be amended or modified by mutual
agreement between the Company and the participant or such other persons as may
then have an interest therein. Also, by mutual agreement between the Company and
a participant hereunder, under this Plan or under any other present or future
plan of the Company, Awards may be granted to such participant in substitution
and exchange for, and in cancellation of, any Awards previously granted such
participant under this Plan, or any other present or future plan of the Company.
The Board of Directors may amend the Plan from time to time or terminate the
Plan at any time. However, no action authorized by this Section 17 shall reduce
the amount of any existing Award or change the terms and conditions thereof
without the participant's consent. No amendment of the Plan shall be made
without approval of the shareholders of the Company if such approval is required
by law or regulatory authority.

     18.   GOVERNING LAW. This Plan and actions taken in connection herewith
shall be governed and construed in accordance with the laws of the State of
Illinois (regardless of the law that might otherwise govern under applicable
Illinois principles of conflict of laws).

                                       12

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