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                                                                    EXHIBIT 10.5

                       SEPARATION AND CONSULTING AGREEMENT

     This Separation and Consulting Agreement ("AGREEMENT") is entered into as
of September 24, 2001, by and between ELCOR CORPORATION, a Delaware corporation
("ELCOR"), and RICHARD J. ROSEBERY ("RJR").

     WHEREAS, RJR will retire from his employment with ELCOR, and retire from
all positions as an officer or director of ELCOR and each of its subsidiaries,
on the Effective Date (as defined below); and

     WHEREAS, the parties wish to provide for an orderly separation and maintain
a transitional relationship to ensure that business continues as normal, and
accordingly, ELCOR and RJR have determined that it is in their respective best
interests to enter into this Agreement on the terms and conditions set forth
herein.

     NOW, THEREFORE, in consideration of the representations, promises and
agreements made herein, and for other good and valuable consideration the
receipt and sufficiency of which are hereby acknowledged, the parties agree as
follows:

1. Retirement. RJR will retire from his employment with ELCOR, and retire from
all positions as an officer or director of ELCOR and each of its subsidiaries,
on October 23, 2001, immediately following the conclusion of ELCOR's Board
meetings (the "Effective Date"). As a result, RJR's employment relationship with
ELCOR MANAGEMENT CORPORATION will formally terminate at 11:59 p.m., Dallas time,
on the Effective Date.

2. Benefits.

     (a) COBRA. ELCOR agrees to reimburse RJR for the cost of continuation
coverage for RJR's and his spouse's group health insurance benefits under COBRA
through April 30, 2003, or, if earlier, the date that RJR becomes eligible to
participate in the group health care plan offered by another employer. RJR and
his spouse must complete the appropriate forms to elect COBRA coverage. After
April 30, 2003, RJR may continue at his own expense COBRA continuation coverage
for RJR and his spouse for the additional time, if any, required under COBRA,
but the qualifying event for COBRA continuation coverage purposes will be the
Effective Date.

     (b) Country Club Membership. ELCOR will transfer the corporate membership
in Bent Tree Country Club currently utilized by RJR into RJR'S individual name
and will reimburse RJR, up to a maximum of Fifteen Thousand Dollars
($15,000.00), for any required fees charged by Bent Tree Country Club to
accomplish such transfer.

     (c) Business Publications. RJR will be entitled to continue to receive all
of the current subscriptions to business publications that he currently receives
through ELCOR until current subscriptions expire.

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     (d) Vacation Pay. ELCOR agrees to pay to RJR the cash value of any earned
but unused vacation days he has accrued through the Effective Date, including
without limitation carryover vacation days from prior years, in accordance with
ELCOR's current policy. This payment will be made to RJR on October 31, 2001.

     (e) Stock Loans. Upon the effectiveness of RJR'S retirement pursuant to
Section 1, any stock loans from ELCOR to RJR and any accrued interest thereon
that are then outstanding under the Elcor Corporation Stock/Loan Plan will be
forgiven, as, the parties acknowledge, is in accordance with the terms of such
Plan.

     (f) Additional Benefits. ELCOR acknowledges and agrees that RJR will
continue to be entitled to any vested benefits under benefit plans maintained
for the benefit of ELCOR employees; provided however, that payment, exercise, or
distribution of such benefits, as the case may be, will be made in accordance
with, and subject to, the terms and conditions of the applicable plan and any
applicable agreement. ELCOR and RJR acknowledge that RJR will be eligible to
receive a bonus under the Elcor Corporation Incentive Cash Bonus Plan ("Bonus
Plan") and a cash payment in an amount equal to the amount that would have been
then eligible for loan under the Elcor Stock/Loan Plan (or award under any
restricted stock or other plan adopted as a successor plan to the Stock/Loan
Plan, if any) for the fiscal period ending June 30, 2001, and the fiscal quarter
ending September 30, 2001, if any are payable under the terms of such plans, but
not for any subsequent period. RJR acknowledges that he will not be entitled to
receive an allocation of any ELCOR employer contributions (other than his
elective deferral contributions) under the ELCOR sponsored Deferred Compensation
Plan, the 401(k) plan or ESOP for the current calendar year through and
including the Effective Date. On October 31, 2001, however, ELCOR will pay RJR a
payment equal to seven percent (7%) of the sum of RJR's salary plus bonuses
under the Bonus Plan, if any, due through the Effective Date as provided herein
for periods included in calendar year 2001, less any withholding required by
law, regulation or governmental administrative rules.

3. Return Of Property.

     (a) General. As of the Effective Date, RJR will immediately return to ELCOR
all ELCOR owned or leased property in his possession. Such ELCOR property
includes, but is not limited to, all computer equipment, manuals, reports, maps,
files, memoranda and records, customer lists, samples, credit cards, cardkey
passes, door and file keys, software and other corporate property which RJR
received, prepared, helped prepare or obtained in connection with his employment
by ELCOR; provided, however, that RJR will not be required to return to ELCOR
copies of documents evidencing or relating to agreements between RJR and ELCOR,
copies of employee welfare or benefit plans, medical records or information,
documents and reports in the public domain, business publications, RJR's
personal calendar and personal records not containing business information about
ELCOR or its subsidiaries, books and works of art contained in his office,
business awards, and other personalty as agreed by the parties ("Excluded
Property").

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     (b) Copies. RJR represents that he has not retained and will not retain any
copies, duplicates, reproductions or excerpts of any ELCOR property not
constituting Excluded Property, whether in physical or electronic form. In the
event of litigation or overtly threatened litigation involving a party, it or he
will be entitled to obtain from the other party copies of any of the foregoing
returned records or retained records, as the case may be, that are directly or
indirectly relevant to such litigation.

4. Terms of Consulting Engagement.

     (a) Services. RJR agrees to provide services to ELCOR in the capacity of a
financial consultant. RJR agrees to promote the best interests of ELCOR and to
take no wrongful, inappropriate or dishonest actions that in any way damage the
public image or reputation of ELCOR or its directors, officers, employees or
affiliates. During the Consulting Term (defined below), RJR will be available
for up to two (2) days (16 hours) in any month to consult with ELCOR or its
subsidiaries on an as-needed basis, so long as such requested time does not
conflict with other reasonable plans or obligations of RJR.

     (b) Consulting Term. The term of this Agreement will be from the Effective
Date of the Agreement through and including October 23, 2003 (the "Consulting
Term").

5. Consulting Compensation.

     (a) Payments. For his service as a consultant, ELCOR will pay to RJR
forty-seven (47) semi-monthly installments, each in the amount of Seven Thousand
Two Hundred Twenty-one and 20/100 Dollars ($7,221.20), less any withholding
required by law, regulation or governmental administrative rules, whether or not
any consulting services are requested or performed. The above amounts will be
paid to RJR on ELCOR'S regularly scheduled paydays. Payments will begin on
November 15, 2001, and will be made on each of the forty-six (46) subsequent
semi-monthly ELCOR paydays.

     (b) Certain RJR Responsibilities. RJR will be solely responsible for all of
his withholding taxes, social security taxes, unemployment taxes, and workers'
compensation insurance premiums, if any, required by law, regulation or
governmental administrative rules.

6. Independent Contractor.

     (a) General. In performing consulting services for ELCOR for the Consulting
Term pursuant to this Agreement, RJR will act in the capacity of an independent
contractor with respect to ELCOR and its subsidiaries and not as an employee of
any of them. As such, RJR will accept directions issued by the Chief Executive
Officer of ELCOR (or his or her delegate) pertaining to the goals to be attained
and the results to be achieved, but RJR will be solely responsible for the
manner and hours in which RJR performs services. RJR will determine his own
working hours and

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schedule and will not be subject to the ELCOR'S personnel policies and
procedures.

     (b) Events and Programs. In conjunction with his provision of services as a
consultant to ELCOR, RJR will be eligible for participation in selected external
investor relations and/or professional development events and programs, if
approved by ELCOR on a case-by-case basis. In connection with any such approved
events and programs and any directions issued by the Chief Executive Officer of
ELCOR (or his/her delegate), ELCOR will reimburse RJR for his reasonable and
documented out-of-pocket expenses associated with such participation, in
accordance with ELCOR'S standard expense reimbursement policies.

     (c) Certain Legal Obligations. After the Effective Date: (i) RJR will not
be eligible to participate in any of ELCOR'S or its subsidiaries' employee
welfare or benefit plans, fringe benefit programs, or insurance arrangements,
except as specifically set forth in this Agreement; (ii) ELCOR will not provide
workers' compensation, disability insurance, Social Security or unemployment
compensation coverage or any other statutory benefit to RJR; (iii) RJR will
comply at his expense with all applicable provisions of workers' compensation
laws, unemployment compensation laws, federal Social Security law, the Fair
Labor Standards Act, federal, state and local income tax laws, and all other
applicable federal, state and local laws, regulations and codes relating to
terms and conditions required to be fulfilled by independent contractors and
consultants; (iv) other than as stated in this Agreement, RJR will be solely
responsible and liable for all expenses, costs, liabilities, assessments,
maintenance, insurance, undertakings and other obligations incurred by RJR; and
(v) RJR will not, in any form or fashion, maintain, hold out, represent, or
imply to any other individual or entity that an employee/employer relationship
exists between ELCOR and RJR.

7. Non-disclosure; Conflict of Interest.

     (a) Non-disclosure. During his employment with ELCOR and during the
Consulting Term, RJR has had access to and will continue to have access to,
various trade secrets and proprietary and confidential information of ELCOR and
its affiliates consisting of, but not limited to, processes, computer programs,
compilations of information, records, sales procedures, customer requirements,
pricing techniques, financial and marketing information and research, investor
and analyst information, product specifications, warranty information, customer
lists, methods of doing business, and other confidential information which is
regularly used in the operation of ELCOR's or its affiliates' business, but
which is not within the public domain (collectively, "Trade Secrets"). RJR
acknowledges and agrees that the Trade Secrets are valuable, special and unique
assets of ELCOR or its affiliates, the disclosure of which would cause
substantial injury, damage and loss of profits and goodwill. Accordingly, RJR
agrees that he will not use or disclose, directly or indirectly, any of the
Trade Secrets at any time; provided, however, that RJR may disclose Trade
Secrets to directors, officers, and employees of ELCOR and its affiliates who
have a need to know, and as may be otherwise required in the performance of his
consulting duties under this Agreement or by law or legal process. Furthermore,
RJR acknowledges that his employment by ELCOR has been subject to, and
conditioned upon, his agreement to the terms of an Employee Agreement with ELCOR
dated January 6, 1975 (the "Employee Agreement"). RJR ratifies and affirms his

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obligations under the Employee Agreement, including, but not limited to the
provisions of the Employee Agreement regarding COMPANY PRIVATE INFORMATION (as
defined in the Employee Agreement).

     (b) No Conflicts of Interest. For and in consideration of the promise made
by ELCOR pursuant to Section 7(c) and in furtherance of the confidentiality and
other obligations undertaken by RJR under this AGREEMENT, RJR agrees (i) that he
will not directly or indirectly provide Trade Secrets to any party whose
products or services are competitive with the products or services manufactured
or sold, or, to RJR's specific knowledge, under active consideration for
manufacture or sale, by ELCOR or any of its active subsidiaries prior to the
Effective Date, (ii) that he will not provide services to any entity referred to
on Exhibit A, which is incorporated herein by this reference, and (ii) that he
will not provide any services other than financial consulting services to any
entity referred to on Exhibit B, which is incorporated herein by this reference,
except to the extent RJR obtains advance written approval from ELCOR's Chief
Executive Officer (or his/her delegate), which approval will not be unreasonably
withheld. The covenants in this Section 7(b) will continue for two (2) years
from the Effective Date and will be effective only in the territory of North
America, except as to the covenant not to disclose Trade Secrets, which will be
effective worldwide and will continue indefinitely.

     (c) Payment. If RJR complies with this Section 7 for the entire Consulting
Term, ELCOR will pay to RJR on October 31, 2003 an amount equal to Seventeen
Thousand Eight Hundred Fifty-nine and 50/100 Dollars ($17,859.50), less any
withholding required by law, regulation or governmental administrative rules.

8. Confidentiality of Agreement.

     The parties agree that the terms of this AGREEMENT are mutually
confidential and will only be disclosed to persons specified herein. ELCOR may
disclose the terms of this AGREEMENT to its directors and officers, and to the
extent it determines is required by law or legal process, including without
limitation, applicable securities laws. RJR may disclose the terms of this
AGREEMENT to his immediate family, financial consultants and advisors, lenders,
attorneys and accountants or other tax preparers, but to others only to the
extent compelled by law or legal process. ELCOR and RJR agree that if
disclosures are made to any individual permitted third party, such third party
will be instructed to keep the terms hereof confidential, except to the extent
disclosure is required to comply with law or legal process. Any information
ELCOR discloses in its public filings or other releases will no longer be
considered confidential for purposes of this Section 8.

9. Miscellaneous Provisions.

     (a) Notice. Notices and all other communications contemplated by this
Agreement will

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be in writing, will be deemed to have been given when delivered to the
recipient, and will be given by certified mail, FedEx or other courier, in each
case return receipt requested. All notices and communications to ELCOR will be
sent to:

Attn: Vice President, Administration
Elcor Corporation
14643 Dallas Parkway
Suite 1000
Dallas, TX 75254

All notices and communications to RJR will be sent to:

Richard J. Rosebery
5703 Club Oaks Drive
Dallas, TX 75248

All payments by ELCOR to RJR will be made by electronic direct deposit to RJR's
Bank of America account (as designated in the Release Agreement) during normal
banking hours on a date on or before payment is due, with notification to RJR
(which may be sent by fax, electronic mail or regular mail notwithstanding the
above provisions).

The parties may change their respective addresses for notices, and RJR may
change the account to which payments are to be deposited, by written notice to
the other party in accordance with this Section 9(a).

     (b) Damages. ELCOR and RJR acknowledge that it would be impossible to
calculate or ascertain accurately and definitely the damages that ELCOR would
sustain from a breach by RJR of Section 7 of this AGREEMENT and that no adequate
remedy at law exists in case of such a breach. Accordingly, in the event of a
breach or threatened breach by RJR of Section 7 of this Agreement, ELCOR will be
entitled to an injunction immediately restraining the activity which violates or
threatens to violate this AGREEMENT. Nothing in this Section 9(b) will be
construed as prohibiting ELCOR from pursuing any other remedies available to
ELCOR for such breach or threatened breach, at law, in equity or under this
AGREEMENT.

     (c) Payment Default. If any payment owing to RJR from ELCOR is not paid
within three (3) days of the date due under this Agreement, then such overdue
amount will bear interest at the rate of twelve percent (12%) per annum,
compounded daily, from the date due until paid. If any payment owed to RJR from
ELCOR hereunder or under the Release Agreement of even date between the parties
(the "Release Agreement") is not paid to RJR within thirty (30) days of the date
due, and RJR has given ELCOR at least ten (10) days' notice and opportunity to
cure, then all payments due under this Agreement are accelerated and become due
and payable immediately. This will be cumulative of RJR's other remedies for
such breach.

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     (d) Escrow. If ELCOR escrows funds to cover payments under the Executive
Agreements between ELCOR and its officers, then an amount equal to the remaining
payments to be made under this Agreement will be escrowed for the benefit of RJR
to cover ELCOR's payment obligations under this Agreement.

     (e) Complete Agreement; Construction. There are no oral promises or
inducements outside of this AGREEMENT, the Release Agreement, the Employee
Agreement, outstanding stock option agreements, and the agreement dated August
31, 2001 between the parties with respect to certain stock options. This
AGREEMENT may only be amended or modified by a written instrument signed by both
of the parties. The section headings contained in this AGREEMENT are inserted
for convenience only and will not affect in any way the meaning or
interpretation of this AGREEMENT. The parties have participated jointly in the
negotiation and drafting of this AGREEMENT. In the event an ambiguity or
question of intent or interpretation arises, this AGREEMENT will be construed as
if drafted jointly by the parties and no presumption or burden of proof will
arise favoring or disfavoring any party by virtue of the authorship of any of
the provisions of this AGREEMENT.

     (f) Assignability. ELCOR may assign this AGREEMENT to any of its
affiliates, provided that such assignment will not relieve ELCOR of its
obligations under this AGREEMENT. Except as provided in the previous sentence,
neither party may assign any rights or delegate any responsibilities under this
AGREEMENT without the other party's written consent, which consent will not be
unreasonably withheld. This AGREEMENT will be binding upon and inure to the
benefit of ELCOR and its successors and permitted assigns and RJR and his heirs
and permitted assigns. If RJR should die or become disabled before all benefits
and payments under Sections 2, 5, 6, 7, or 9 have been paid to him, he or his
heirs or personal representative, as the case may be, will remain entitled to
receive the remainder of such payments and benefits to the extent RJR was
entitled to them in accordance with Sections 2, 5, 6, 7 and 9.

     (g) Attorney's Fees. In the event of a breach of this Agreement, the
prevailing party in any litigation will be entitled to recover its or his
reasonable attorney's fees incurred to enforce this Agreement.

     (h) Severability. The parties intend that all provisions of this AGREEMENT
be enforced to the fullest extent permitted by law. Accordingly, should a court
of competent jurisdiction determine that the scope of any provision of this
AGREEMENT is too broad to be enforced as written, the parties intend that the
court reform the provision to such narrower scope as the court determines to be
reasonable and enforceable. If any provision of this AGREEMENT is held to be
illegal, invalid or unenforceable under present or future laws effective during
the term hereof, such provision will be fully severable and this AGREEMENT will
be construed and enforced as if such illegal, invalid, or unenforceable
provision never comprised a part of this AGREEMENT, and the remaining provisions
of this Agreement will remain in full force and effect and will not be affected
by the illegal, invalid or unenforceable provisions or by their severance from
this AGREEMENT.

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     (i) Governing Law. THIS AGREEMENT WILL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS. IF ANY ACTION IS BROUGHT TO
ENFORCE OR INTERPRET THIS AGREEMENT, VENUE FOR SUCH ACTION WILL BE IN DALLAS
COUNTY, TEXAS.

Each of the parties has fully read and understands the terms of this AGREEMENT,
and has SIGNED AND DELIVERED this Agreement this 24th day of September, 2001.

                                       RJR:

                                       /s/ Richard J. Rosebery
                                       -----------------------------------------
                                       Richard J. Rosebery

                                       ELCOR:
                                       ELCOR CORPORATION

                                       By: /s/ Harold K. Work
                                           -------------------------------------
                                           Harold K. Work,
                                           Chairman of the Board

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                                                                       EXHIBIT A
                                          to Separation and Consulting Agreement

The following entities and their affiliates are referred to by Section 7(b)(ii)
of the Separation and Consulting Agreement dated September 24, 2001 between
Elcor Corporation and Richard J. Rosebery.

Atlas
BMI
Certainteed
Chomerics
Deep Coat
Ehrler
GAF Building Materials
IKO
Johns Manville
Kiehl Engineering
Malarky
MID Circuit wise, Inc. (a Tyco company)
Nolato/Shieldmate
Owens Corning
Pabco
PF Technologies
Phillips Plastics
Plastic Plate
Savcor
Seleco
Shielding of Electronics, Inc.
Summit Coating Technologies
Tamko
TecStar/Micron
Vision
WL Gore

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                                                                       EXHIBIT B
                                          to Separation and Consulting Agreement

The following entities and their affiliates are referred to by Section 7(b)(iii)
of the Separation and Consulting Agreement dated September 24, 2001 between
Elcor Corporation and Richard J. Rosebery.

A.L.L. Roofing
ABC Supply
Alcatel
Allied Building Products
Austin Roofers
Beacon
Bradco
Building Supply of NE Wisconsin
Burbank Roofing
Cal Shingle & Shake
Carolina Atlantic Dist.
Dallas Wholesale Building Supply
Dallas/ Ft.Worth Roofing Supply
Eagle
Ericsson
JBW Wholesale
JEH Wholesale
Kyocera
L&W Supply
Motorola
Nokia
Nortel
Northwest Roofing Supply
Pelican Companies
Prime Source
R-Max
Redding Supply
Roofers Supply Inc.
Roofing Center/ Wolf
Roofing Wholesale Co.
Siplast
Spec Roofing Contracting Supply
Sun Microsystems
Sunniland Corp.
Texas Wholesale Building Materials
Washington Cedar Supply

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                                                                   EXHIBIT 10.31

                          CONCORD COMMUNICATIONS, INC.

                 2001 NON-EXECUTIVE EMPLOYEE STOCK PURCHASE PLAN

ARTICLE 1 - PURPOSE.

     This 2001 Non-Executive Employee Stock Purchase Plan (the "Plan") is
intended to encourage stock ownership by all eligible employees of CONCORD
COMMUNICATIONS, INC. (the "Company"), a Massachusetts corporation, and its
participating subsidiaries (as defined in Article 17) so that they may share in
the growth of the Company by acquiring or increasing their proprietary interest
in the Company. The Plan is designed to encourage eligible employees to remain
in the employ of the Company and its participating subsidiaries. The Plan is
intended to constitute an "employee stock purchase plan" within the meaning of
Section 423(b) of the Internal Revenue Code of 1986, as amended (the "Code").

ARTICLE 2 - ADMINISTRATION OF THE PLAN.

     The Plan may be administered by the Compensation Committee of the Board of
Directors or a committee appointed by the Board of Directors of the Company (the
"Committee"). The Committee shall consist of not less than two members of the
Company's Board of Directors. The Board of Directors may from time to time
remove members from, or add members to, the Committee. Vacancies on the
Committee, howsoever caused, shall be filled by the Board of Directors. The
Committee may select one of its members as Chairman, and shall hold meetings at
such times and places as it may determine. Acts by a majority of the Committee,
or acts reduced to or approved in writing by a majority of the members of the
Committee, shall be the valid acts of the Committee.

     The interpretation and construction by the Committee of any provisions of
the Plan or of any option granted under it shall be final, unless otherwise
determined by the Board of Directors. The Committee may from time to time adopt
such rules and regulations for carrying out the Plan as it may deem best,
provided that any such rules and regulations shall be applied on a uniform basis
to all employees under the Plan. No member of the Board of Directors or the
Committee shall be liable for any action or determination made in good faith
with respect to the Plan or any option granted under it.

     In the event the Board of Directors fails to appoint or refrains from
appointing a Committee, the Board of Directors shall have all power and
authority to administer the Plan. In such event, the word "Committee" wherever
used herein shall be deemed to mean the Board of Directors.

ARTICLE 3 - ELIGIBLE EMPLOYEES.

     All employees, (excluding Officers and Directors as described below), of
the Company or any of its participating subsidiaries whose customary employment
is more than 20 hours per week and for more than five months in any calendar
year shall be eligible to receive options under the Plan to purchase common
stock of the Company, and all eligible employees shall have the same rights and
privileges hereunder. Persons who are eligible employees on the first business
day of any Payment Period (as defined in Article 5) shall receive their options
as of such day. Persons who become eligible employees after any date on which
options are granted under the Plan shall be granted options on the first day of
the next succeeding Payment Period on which options are granted to eligible
employees under the Plan. In no event, however, may an employee be granted an
option if such employee, immediately after the option was granted, would be
treated as owning stock possessing five percent or more of the total combined
voting power or value of all classes of stock of the Company or of any parent
corporation or subsidiary corporation, as the terms "parent corporation" and
"subsidiary corporation" are defined in Section 424(e) and (f) of the Code. For
purposes of determining stock ownership under this paragraph, the rules of
Section 424(d) of the Code shall apply, and stock which the employee may
purchase under outstanding options shall be treated as stock owned by the
employee. Notwithstanding the foregoing, Officers and Directors of the Company,
who are "highly compensated employees" (within the meaning of Section 414(q) of
the Code), shall not be eligible employees and shall not be eligible to receive
options under the Plan. For purpose of the Plan, (a) "Officers" shall mean a
person who is an officer of the Company within the meaning of the
interpretations of the National Association of Securities Dealers, Inc. ("NASD")
under Section 4350(i)(1)(a) of the NASD Marketplace Rules and (b) "Director"
shall mean a member of the Board of Directors of the Company.

ARTICLE 4 - STOCK SUBJECT TO THE PLAN.

     The stock subject to the options under the Plan shall be shares of the
Company's authorized but unissued common stock, par value $0.01 per share (the
"Common Stock"), or shares of Common Stock reacquired by the Company, including
shares purchased in

<PAGE>

the open market. The aggregate number of shares which may be issued pursuant to
the Plan is 500,000, subject to adjustment as provided in Article 12. If any
option granted under the Plan shall expire or terminate for any reason without
having been exercised in full or shall cease for any reason to be exercisable in
whole or in part, the unpurchased shares subject thereto shall again be
available under the Plan.

ARTICLE 5 - PAYMENT PERIOD AND STOCK OPTIONS.

     The first Payment Period during which payroll deductions will be
accumulated under the Plan shall commence on the later to occur of November 1,
2001 and the first day of the first calendar month following effectiveness of
the Form S-8 registration statement filed with the Securities and Exchange
Commission covering the shares to be issued pursuant to the Plan and shall end
on April 30, 2002. For the remainder of the duration of the Plan, Payment
Periods shall consist of the six-month periods commencing on May 1 and November
1, respectively, and ending on October 31 and April 30, respectively, of each
calendar year.

     Twice each year, on the first business day of each Payment Period, the
Company will grant to each eligible employee an option to purchase on the last
day of such Payment Period, at the Option Price hereinafter provided for, a
maximum of 20,000 shares, on condition that such employee remains eligible to
participate in the Plan throughout the remainder of such Payment Period. The
employee shall be entitled to exercise the option so granted only to the extent
of the employee's accumulated payroll deductions on the last day of such Payment
Period. If the participant's accumulated payroll deductions on the last day of
the Payment Period would enable the participant to purchase more than 20,000
shares except for the 20,000-share limitation, the excess of the amount of the
accumulated payroll deductions over the aggregate purchase price of the 20,000
shares shall be promptly refunded to the participant by the Company, without
interest. The Option Price per share for each Payment Period shall be the lesser
of (i) 85% of the average market price of the Common Stock on the first business
day of the Payment Period and (ii) 85% of the average market price of the Common
Stock on the last business day of the Payment Period, in either event rounded up
to the nearest cent. The foregoing limitation on the number of shares subject to
option and the Option Price shall be subject to adjustment as provided in
Article 12.

     For purposes of the Plan, the term "average market price" on any date means
(i) the average (on that date) of the high and low prices of the Common Stock on
the principal national securities exchange on which the Common Stock is traded,
if the Common Stock is then traded on a national securities exchange; or (ii)
the last reported sale price (on that date) of the Common Stock on the NASDAQ
National Market, if the Common Stock is not then traded on a national securities
exchange; or (iii) the average of the closing bid and asked prices last quoted
(on that date) by an established quotation service for over-the-counter
securities, if the Common Stock is not reported on the NASDAQ National Market;
or (iv) if the Common Stock is not publicly traded, the fair market value of the
Common Stock as determined by the Committee after taking into consideration all
factors which it deems appropriate, including, without limitation, recent sale
and offer prices of the Common Stock in private transactions negotiated at arm's
length.

     For purposes of the Plan, the term "business day" means a day on which
there is trading on the NASDAQ National Market or the aforementioned national
securities exchange, whichever is applicable pursuant to the preceding
paragraph; and if neither is applicable, a day that is not a Saturday, Sunday or
legal holiday in the Commonwealth of Massachusetts.

     No employee shall be granted an option which permits the employee's right
to purchase stock under the Plan, and under all other Section 423(b) employee
stock purchase plans of the Company and any parent or subsidiary corporations,
to accrue at a rate which exceeds $25,000 of fair market value of such stock
(determined on the date or dates that options on such stock were granted) for
each calendar year in which such option is outstanding at any time. The purpose
of the limitation in the preceding sentence is to comply with Section 423(b)(8)
of the Code. If the participant's accumulated payroll deductions on the last day
of the Payment Period would otherwise enable the participant to purchase Common
Stock in excess of the Section 423(b)(8) limitation described in this paragraph,
the excess of the amount of the accumulated payroll deductions over the
aggregate purchase price of the shares actually purchased shall be promptly
refunded to the participant by the Company, without interest.

ARTICLE 6 - EXERCISE OF OPTION.

     Each eligible employee who continues to be a participant in the Plan on the
last day of a Payment Period shall be deemed to have exercised his or her option
on such date and shall be deemed to have purchased from the Company such number
of full shares of Common Stock reserved for the purpose of the Plan as the
participant's accumulated payroll deductions on such date will pay for at the
Option Price, subject to the 20,000-share limit of the option and the Section
423(b)(8) limitation described in Article 5. If the individual is not a
participant on the last day of a Payment Period, then he or she shall not be
entitled to exercise his or her option and the amount of his or her payroll
deduction shall be refundable without interest. Only full shares of Common Stock
may be purchased

<PAGE>

under the Plan. Unused payroll deductions remaining in a participant's account
at the end of a Payment Period by reason of the inability to purchase a
fractional share shall be carried forward to the next Payment Period.

ARTICLE 7 - AUTHORIZATION FOR ENTERING THE PLAN.

     An employee may elect to authorize payroll deductions under the Plan by
filling out, signing and delivering to the Company an authorization:

          A.   Stating the percentage to be deducted regularly from the
     employee's pay;

          B.   Authorizing the purchase of stock for the employee in each
     Payment Period in accordance with the terms of the Plan; and

          C.   Specifying the exact name or names in which stock purchased for
     the employee is to be issued as provided under Article 11 hereof.

Such authorization must be received by the Company at least ten days before the
first day of the next succeeding Payment Period and shall take effect only if
the employee is an eligible employee on the first business day of such Payment
Period. Notwithstanding the foregoing, solely for purposes of the first Payment
Period under the Plan, an employee who is an eligible employee on the first
business day of such Payment Period may elect to authorize payroll deductions
under the Plan by filling out, signing, and delivering to the Company the
written authorization described above so that the Company receives such
authorization no later than November 8, 2001.

     Unless a participant files a new authorization or withdraws from the Plan,
the deductions and purchases under the authorization the participant has on file
under the Plan will continue from one Payment Period to succeeding Payment
Periods as long as the Plan remains in effect.

     The Company will accumulate and hold for each participant's account the
amounts deducted from his or her pay. No interest will be paid on these amounts.

ARTICLE 8 - MAXIMUM AMOUNT OF PAYROLL DEDUCTIONS.

     An employee may authorize payroll deductions in an amount (expressed as a
whole percentage) not less than one percent (1%) but not more than ten percent
(10%) of the employee's total compensation, including base pay or salary and any
overtime, bonuses or commissions.

ARTICLE 9 - CHANGE IN PAYROLL DEDUCTIONS.

     Deductions may not be increased or decreased during a Payment Period.
However, a participant may withdraw in full from the Plan in which event the
Company will promptly refund (without interest) the entire balance of the
employer's deduction not previously used to purchase stock under the Plan.

ARTICLE 10 - WITHDRAWAL FROM THE PLAN.

     A participant may withdraw from the Plan (in whole but not in part) at any
time prior to the last day of a Payment Period by delivering a withdrawal notice
to the Company.

     To re-enter the Plan, an employee who has previously withdrawn must file a
new authorization at least ten days before the first day of the next Payment
Period in which he or she wishes to participate. The employee's re-entry into
the Plan becomes effective at the beginning of such Payment Period, provided
that he or she is an eligible employee on the first business day of the Payment
Period.

ARTICLE 11 - ISSUANCE OF STOCK.

     Certificates for stock issued to participants shall be delivered as soon as
practicable after each Payment Period by the Company's transfer agent.

<PAGE>

     Stock purchased under the Plan shall be issued only in the name of the
participant, or if the participant's authorization so specifies, in the name of
the participant and another person of legal age as joint tenants with rights of
survivorship.

ARTICLE 12 - ADJUSTMENTS.

     Upon the happening of any of the following described events, a
participant's rights under options granted under the Plan shall be adjusted as
hereinafter provided:

          A.   In the event that the shares of Common Stock shall be subdivided
     or combined into a greater or smaller number of shares or if, upon a
     reorganization, split-up, liquidation, recapitalization or the like of the
     Company, the shares of Common Stock shall be exchanged for other securities
     of the Company, each participant shall be entitled, subject to the
     conditions herein stated, to purchase such number of shares of Common Stock
     or amount of other securities of the Company as were exchangeable for the
     number of shares of Common Stock that such participant would have been
     entitled to purchase except for such action, and appropriate adjustments
     shall be made in the purchase price per share to reflect such subdivision,
     combination or exchange; and

          B.   In the event the Company shall issue any of its shares as a stock
     dividend upon or with respect to the shares of stock of the class which
     shall at the time be subject to option hereunder, each participant upon
     exercising such an option shall be entitled to receive (for the purchase
     price paid upon such exercise) the shares as to which the participant is
     exercising his or her option and, in addition thereto (at no additional
     cost), such number of shares of the class or classes in which such stock
     dividend or dividends were declared or paid, and such amount of cash in
     lieu of fractional shares, as is equal to the number of shares thereof and
     the amount of cash in lieu of fractional shares, respectively, which the
     participant would have received if the participant had been the holder of
     the shares as to which the participant is exercising his or her option at
     all times between the date of the granting of such option and the date of
     its exercise.

     Upon the happening of any of the foregoing events, the class and aggregate
number of shares set forth in Article 4 hereof which are subject to options
which have been or may be granted under the Plan and the limitations set forth
in the second paragraph of Article 5 shall also be appropriately adjusted to
reflect the events specified in paragraphs A and B above. Notwithstanding the
foregoing, any adjustments made pursuant to paragraphs A or B shall be made only
after the Committee, based on advice of counsel for the Company, determines
whether such adjustments would constitute a "modification" (as that term is
defined in Section 424 of the Code). If the Committee determines that such
adjustments would constitute a modification, it may refrain from making such
adjustments.

     If the Company is to be consolidated with or acquired by another entity in
a merger, a sale of all or substantially all of the Company's assets or
otherwise (an "Acquisition"), the Committee or the board of directors of any
entity assuming the obligations of the Company hereunder (the "Successor Board")
shall, with respect to options then outstanding under the Plan, either (i) make
appropriate provision for the continuation of such options by arranging for the
substitution on an equitable basis for the shares then subject to such options
either (a) the consideration payable with respect to the outstanding shares of
the Common Stock in connection with the Acquisition, (b) shares of stock of the
successor corporation, or a parent or subsidiary of such corporation, or (c)
such other securities as the Successor Board deems appropriate, the fair market
value of which shall not materially exceed the fair market value of the shares
of Common Stock subject to such options immediately preceding the Acquisition;
or (ii) terminate each participant's options in exchange for a cash payment
equal to the excess of (a) the fair market value on the date of the Acquisition,
of the number of shares of Common Stock that the participant's accumulated
payroll deductions as of the date of the Acquisition could purchase, at an
option price determined with reference only to the first business day of the
applicable Payment Period and subject to the 20,000-share, Code Section
423(b)(8) and fractional-share limitations on the amount of stock a participant
would be entitled to purchase, over (b) the result of multiplying such number of
shares by such option price.

     The Committee or Successor Board shall determine the adjustments to be made
under this Article 12, and its determination shall be conclusive.

ARTICLE 13 - NO TRANSFER OR ASSIGNMENT OF EMPLOYEE'S RIGHTS.

     An option granted under the Plan may not be transferred or assigned to or
availed by, any other person than by will or the laws of descent and
distribution and may be exercised only by the employee during the employee's
lifetime.

<PAGE>

ARTICLE 14 - TERMINATION OF EMPLOYEE'S RIGHTS.

     Whenever a participant ceases to be an eligible employee because of
retirement, voluntary or involuntary termination, resignation, layoff,
discharge, death or for any other reason, his or her rights under the Plan shall
immediately terminate, and the Company shall promptly refund, without interest,
the entire balance of his or her payroll deduction account under the Plan.
Notwithstanding the foregoing, eligible employment shall be treated as
continuing intact while a participant is on military leave, sick leave or other
bona fide leave of absence, for up to 90 days, or for so long as the
participant's right to re-employment is guaranteed either by statute or by
contract, if longer than 90 days.

ARTICLE 15 - TERMINATION AND AMENDMENTS TO PLAN.

     The Plan may be terminated at any time by the Company's Board of Directors
but such termination shall not affect options then outstanding under the Plan.
It will terminate in any case when all or substantially all of the unissued
shares of stock reserved for the purposes of the Plan have been purchased. If at
any time shares of stock reserved for the purpose of the Plan remain available
for purchase but not in sufficient number to satisfy all then unfilled purchase
requirements, the available shares shall be apportioned among participants in
proportion to the amount of payroll deductions accumulated on behalf of each
participant that would otherwise be used to purchase stock, and the Plan shall
terminate. Upon such termination, all payroll deductions not used to purchase
stock will be refunded, without interest.

     The Committee or the Board of Directors may from time to time adopt
amendments to the Plan provided that, without the approval of the stockholders
of the Company, no amendment may (i) increase the number of shares that may be
issued under the Plan; (ii) change the class of employees eligible to receive
options under the Plan, if such action would be treated as the adoption of a new
plan for purposes of Section 423(b) of the Code; or (iii) cause Rule 16b-3 under
the Securities Exchange Act of 1934 to become inapplicable to the Plan.

ARTICLE 16 - LIMITS ON SALE OF STOCK PURCHASED UNDER THE PLAN.

     The Plan is intended to provide shares of Common Stock for investment and
not for resale. The Company does not, however, intend to restrict or influence
any employee in the conduct of his or her own affairs. An employee may,
therefore, sell stock purchased under the Plan at any time the employee chooses,
subject to compliance with any applicable federal or state securities laws and
subject to any restrictions imposed under Article 21 to ensure that tax
withholding obligations are satisfied. THE EMPLOYEE ASSUMES THE RISK OF ANY
MARKET FLUCTUATIONS IN THE PRICE OF THE STOCK.

ARTICLE 17 - PARTICIPATING SUBSIDIARIES.

     The term "participating subsidiary" shall mean any present or future
subsidiary of the Company, as that term is defined in Section 424(f) of the
Code, which is designated from time to time by the Board of Directors to
participate in the Plan. The Board of Directors shall have the power to make
such designation before or after the Plan is approved by the stockholders.

ARTICLE 18 - OPTIONEES NOT STOCKHOLDERS.

     Neither the granting of an option to an employee nor the deductions from
his or her pay shall constitute such employee a stockholder of the shares
covered by an option until such shares have been actually purchased by the
employee.

ARTICLE 19 - APPLICATION OF FUNDS.

     The proceeds received by the Company from the sale of Common Stock pursuant
to options granted under the Plan will be used for general corporate purposes.

ARTICLE 20 - NOTICE TO COMPANY OF DISQUALIFYING DISPOSITION.

     By electing to participate in the Plan, each participant agrees to notify
the Company in writing immediately after the participant transfers Common Stock
acquired under the Plan, if such transfer occurs within two years after the
first business day of the Payment Period in which such Common Stock was
acquired. Each participant further agrees to provide any information about such
a transfer as may be requested by the Company or any subsidiary corporation in
order to assist it in complying with the tax laws. Such

<PAGE>

dispositions generally are treated as "disqualifying dispositions" under
Sections 421 and 424 of the Code, which have certain tax consequences to
participants and to the Company and its participating subsidiaries.

ARTICLE 21 - WITHHOLDING OF ADDITIONAL INCOME TAXES.

     By electing to participate in the Plan, each participant acknowledges that
the Company and its participating subsidiaries are required to withhold taxes
with respect to the amounts deducted from the participant's compensation and
accumulated for the benefit of the participant under the Plan, and each
participant agrees that the Company and its participating subsidiaries may
deduct additional amounts from the participant's compensation, when amounts are
added to the participant's account, used to purchase Common Stock or refunded,
in order to satisfy such withholding obligations. Each participant further
acknowledges that when Common Stock is purchased under the Plan the Company and
its participating subsidiaries may be required to withhold taxes with respect to
all or a portion of the difference between the fair market value of the Common
Stock purchased and its purchase price, and each participant agrees that such
taxes may be withheld from compensation otherwise payable to such participant.
It is intended that tax withholding will be accomplished in such a manner that
the full amount of payroll deductions elected by the participant under Article 7
will be used to purchase Common Stock. However, if amounts sufficient to satisfy
applicable tax withholding obligations have not been withheld from compensation
otherwise payable to any participant, then, notwithstanding any other provision
of the Plan, the Company may withhold such taxes from the participant's
accumulated payroll deductions and apply the net amount to the purchase of
Common Stock, unless the participant pays to the Company, prior to the exercise
date, an amount sufficient to satisfy such withholding obligations. Each
participant further acknowledges that the Company and its participating
subsidiaries may be required to withhold taxes in connection with the
disposition of stock acquired under the Plan and agrees that the Company or any
participating subsidiary may take whatever action it considers appropriate to
satisfy such withholding requirements, including deducting from compensation
otherwise payable to such participant an amount sufficient to satisfy such
withholding requirements or conditioning any disposition of Common Stock by the
participant upon the payment to the Company or such subsidiary of an amount
sufficient to satisfy such withholding requirements.

ARTICLE 22 - GOVERNMENTAL REGULATIONS.

     The Company's obligation to sell and deliver shares of Common Stock under
the Plan is subject to the approval of any governmental authority required in
connection with the authorization, issuance or sale of such shares.

     Government regulations may impose reporting or other obligations on the
Company with respect to the Plan. For example, the Company may be required to
identify shares of Common Stock issued under the Plan on its stock ownership
records and send tax information statements to employees and former employees
who transfer title to such shares.

ARTICLE 23 - GOVERNING LAW.

     The validity and construction of the Plan shall be governed by the laws of
Commonwealth of Massachusetts, without giving effect to the principles of
conflicts of law thereof.

ARTICLE 24 - APPROVAL OF BOARD OF DIRECTORS AND STOCKHOLDERS OF THE COMPANY.

     The Plan was adopted by the Board of Directors on October 29, 2001 and will
be considered for approval by the stockholders of the Company on or before
October 29, 2002.

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