Document:

<PAGE>

                                                           EXECUTION COUNTERPART

                                 AMENDMENT NO. 2

          AMENDMENT NO. 2 dated as of March 30,2001 to the Credit Agreement
referred to below, between BIRCH TELECOM, INC., a corporation duly organized
and validly existing under the laws of the State of Delaware (the "COMPANY");
BIRCH TELECOM FINANCE, INC., a Delaware corporation duly organized and validly
existing under the laws of the State of Delaware (the "BORROWER"); each of the
lenders that is a signatory hereto (individually, a "LENDER" and, collectively,
the "LENDERS"); and LEHMAN COMMERCIAL PAPER INC., as administrative agent for
the Lenders (in such capacity, together with its successors in such capacity,
the "ADMINISTRATIVE AGENT").

          The Company, the Borrower, the Lenders and the Administrative Agent
are parties to an Amended and Restated Credit Agreement dated as of February 2,
2000 (as heretofore modified and supplemented and in effect on the date hereof,
the "CREDIT AGREEMENT"), providing, subject to the terms and conditions thereof,
for extensions of credit to be made by said Lenders to the Borrower. The
Borrower, the Company and the Administrative Agent (having been previously
authorized by Lenders constituting the Required Lenders under the Credit
Agreement) wish to amend the Credit Agreement in certain respects, and
accordingly, the parties hereto hereby agree as follows:

          Section 1. DEFINITIONS. Except as otherwise defined in this Amendment
No. 2, terms defined in the Credit Agreement are used herein as defined therein.

          Section 2. AMENDMENTS. Subject to the satisfaction of the conditions
precedent specified in Section 4 of this Amendment No. 2, but effective as of
the date hereof, the Credit Agreement shall be amended as follows:

          2.1. References in the Credit Agreement (including references to the
Credit Agreement as amended hereby) to "this Agreement" (and indirect references
such as "hereunder", "hereby", "herein" and "hereof") shall be deemed to be
references to the Credit Agreement as amended hereby.

          2.2. DEFINITIONS. The following definitions set forth in Section 1.01
of the Credit Agreement shall be amended in their entirety to read as follows:

          "STAGE 1": the period prior to June 30, 2003.

          "STAGE 2": the period from and after June 30, 2003.

                                AMENDMENT NO. 2

<PAGE>
                                     - 2 -

          2.3 Financial Reporting Covenant. Section 5.1 of the Credit Agreement
is hereby amended by inserting in such Section a new clause (c) immediately
after clause (b) as follows:

          "(c) as soon as available and in any event within 45 days after the
     end of each calendar month for fiscal year 2001 (or, during the calendar
     month of December, 2001, within 90 days after the end of such calendar
     month), the unaudited debt balance, cash balance and Line count of the
     Company and its consolidated Subsidiaries as at the end of such month and
     the related unaudited statement of income for such month and the portion of
     the fiscal year through the end of such month, setting forth in each case
     in comparative form the figures for the previous month, certified by a
     Responsible Officer as being fairly stated in all material respects
     (subject to normal year-end audit adjustments)."

          2.4. FINANCIAL CONDITION COVENANTS. Section 6.1 of the Credit
Agreement is hereby amended in its entirety to read as follows:

          "6.1 FINANCIAL CONDITION COVENANTS.

          I. STAGE 1 FINANCIAL COVENANTS. During Stage 1:

          (a) REVENUES. Permit the Revenues for any fiscal quarter set forth
     below to be less than the amount set forth below opposite such fiscal
     quarter:

<TABLE>
<CAPTION>
          Fiscal Quarter Ending                   Minimum Revenues
          ---------------------                   ----------------
<S>                                               <C>
          March 31, 2001                          $34,000,000
          June 30, 2001                           $36,000,000
          September 30, 2001                      $42,100,000
          December 31, 2001                       $50,000,000

          March 31, 2002                          $57,000,000
          June 30, 2002                           $65,000,000
          September 30, 2002                      $73,000,000
          December 31, 2002                       $81,000,000

          March 31, 2003                          $88,000,000
</TABLE>

                                AMENDMENT NO. 2
<PAGE>
                                     - 3 -

          (b) CONSOLIDATED EBITDA. Permit Consolidated EBITDA for any fiscal
     quarter set forth below to be less than the amount (or, if the amount
     specified below is a negative number, to be a greater negative number) set
     forth below opposite such fiscal quarter:

<TABLE>
<CAPTION>
          Fiscal Quarter Ending                   EBITDA
          ---------------------                   ------
<S>                                               <C>
          March 31, 2001                          $(33,000,000)
          June 30, 2001                           $(23,500,000)
          September 30, 2001                      $(17,500,000)
          December 31, 2001                       $(13,750,000)

          March 31, 2002                           $(9,500,000)
          June, 30,2002                            $(5,500,000)
          September 30, 2002                       $(1,000,000)
          December 31, 2002                         $3,000,000

          March 31, 2003                            $8,000,000
</TABLE>

          (c) LINES. Permit the aggregate number of Lines as at the last day of
     any fiscal quarter set forth below to be less than the amount set forth
     below opposite such fiscal quarter:

<TABLE>
<CAPTION>
          Fiscal Quarter Ending                   Minimum Number of Lines
          ---------------------                   -----------------------
<S>                                               <C>
          March 31, 2001                          240,000
          June, 30, 2001                          250,000
          September 30, 2001                      280,000
          December 31, 2001                       300,000

          March 31, 2002                          375,000
          June, 30, 2002                          425,000
          September 30, 2002                      475,000
          December 31, 2002                       525,000

          March 31, 2003                          575,000
</TABLE>

          (d) SENIOR SECURED DEBT TO TOTAL CAPITALIZATION RATIO. Permit, as at
     the last day of any fiscal quarter ending during Stage 1, the ratio of (a)
     Senior Secured Debt on such day to (b) Total Capitalization on such day to
     exceed 0.45 to 1.

                                 AMENDMENT NO. 2
<PAGE>
                                     - 4 -

          II. STAGE 2 FINANCIAL COVENANTS. During Stage 2:

          (a) SENIOR LEVERAGE RATIO. Permit the Senior Leverage Ratio as at the
     last day of any fiscal quarter set forth below to exceed the ratio set
     forth below opposite such fiscal quarter:

<TABLE>
<CAPTION>
          Fiscal Quarter Ending                   Senior Leverage Ratio
          ---------------------                   ---------------------
<S>                                               <C>
          June 30, 2003                           6.0 to 1
          September 30, 2003                      5.0 to 1
          December 31, 2003                       4.0 to 1

          March 31, 2004                          3.0 to 1
          June 30, 2004                           3.0 to 1
          September 30, 2004                      2.5 to 1
          December 31, 2004                       2.0 to 1

          March 31, 2005                          2.0 to 1
          June 30, 2005                           2.0 to 1
          September 30, 2005                      2.0 to 1
          December 31, 2005                       2.0 to 1

          March 31, 2006                          2.0 to 1
          June 30, 2006                           2.0 to 1
          September 30, 2006                      2.0 to 1
          December 31, 2006                       2.0 to 1
</TABLE>

          (b) TOTAL LEVERAGE RATIO. Permit the Total Leverage Ratio as at the
     last day of any fiscal quarter set forth below to exceed the ratio set
     forth below opposite such fiscal quarter:

<TABLE>
<CAPTION>
          Fiscal Quarter Ending                   Total Leverage Ratio
          ---------------------                   --------------------
<S>                                               <C>
          June 30, 2003                           9.0 to 1
          September 30, 2003                      8.0 to 1
          December 31, 2003                       8.0 to 1

          March 31, 2004                          7.0 to 1
          June 30, 2004                           7.0 to 1
          September 30, 2004                      7.0 to 1
          December 31, 2004                       7.0 to 1

                                AMENDMENT NO. 2

<PAGE>
                                     - 5 -

          March 31, 2005                          6.0 to 1
          June 30, 2005                           6.0 to 1
          September 30, 2005                      6.0 to 1
          December 31, 2005                       6.0 to 1

          March 31, 2006                          6.0 to 1
          June 30, 2006                           6.0 to 1
          September 30, 2006                      6.0 to 1
          December 31, 2006                       6.0 to 1
</TABLE>

          (c) INTEREST COVERAGE RATIO. Permit the Interest Coverage Ratio as at
     the last day of any fiscal quarter set forth below to be less than the
     ratio set forth below opposite such fiscal quarter:

<TABLE>
<CAPTION>
          Fiscal Quarter Ending                   Interest Coverage Ratio
          ---------------------                   -----------------------
<S>                                               <C>
          June 30, 2003                           1.25 to 1
          September 30, 2003                      1.50 to 1
          December 31, 2003                       1.75 to 1

          March 31, 2004                          2.00 to 1
          June 30, 2004                           2.50 to 1
          September 30, 2004                      2.75 to 1
          December 31, 2004                       2.75 to 1

          March 31, 2005                          2.75 to 1
          June 30, 2005                           2.75 to 1
          September 30, 2005                      2.75 to 1
          December 31, 2005                       2.75 to 1

          March 31, 2006                          2.75 to 1
          June 30, 2006                           2.75 to 1
          September 30, 2006                      2.75 to 1
          December 31, 2006                       2.75 to 1
</TABLE>

          (d) PRO FORMA DEBT SERVICE COVERAGE. Permit the Pro Forma Debt Service
     Coverage Ratio as at the last day of any fiscal quarter set forth below to
     be less than the ratio set forth below opposite such fiscal quarter:

<TABLE>
<CAPTION>
                                                  Pro Forma Debt Service
          Fiscal Quarter Ending                   Coverage Ratio
          ---------------------                   ----------------------
<S>                                               <C>
          June 30, 2003                           waived
          September 30, 2003                      1.00 to 1
          December 31, 2003                       1.00 to 1

                                AMENDMENT NO. 2

<PAGE>
                                     - 6 -

          March 31, 2004                          1.00 to 1
          June 30, 2004                           1.00 to 1
          September 30, 2004                      1.25 to 1
          December 31, 2004                       1.25 to 1

          March 31, 2005                          1.50 to 1
          June 30, 2005                           1.50 to 1
          September 30, 2005                      1.50 to 1
          December 31, 2005                       1.50 to 1

          March 31, 2006                          1.75 to 1
          June 30, 2006                           2.00 to 1
          September 30, 2006                      2.00 to 1
          December 31, 2006                       2.00 to 1"
</TABLE>

          2.5. LIMITATION ON DISPOSITION OF PROPERTY. Section 6.5 of the Credit
Agreement is hereby amended by inserting in Section 6.5(c), immediately after
the words "Sections 6.4(a) and (b)", the following: "and Section 6.10(ii)".

          2.6. LIMITATION ON SALES AND LEASEBACKS. Section 6.10 of the Credit
Agreement is hereby amended by (a) inserting "(i)" immediately after the words
"except for" and (b) inserting, immediately after the words "Section 6.5(e)",
the following: "and (ii) any such arrangements for equipment having an aggregate
fair market value not exceeding $3,000,000".

          2.7. LIMITATION ON CAPITAL EXPENDITURES. Section 6.15 of the Credit
Agreement is hereby amended in its entirety to read as follows:

          "6.15 LIMITATION ON CAPITAL EXPENDITURES. Make or commit to make any
     Capital Expenditure, except Capital Expenditures of the Company and its
     Subsidiaries in the ordinary course of business in an aggregate amount not
     exceeding (a) $120,000,000 in fiscal year 2000, (b) $25,000,000 in fiscal
     year 2001 and (c) for each fiscal year thereafter, the amount set forth
     below opposite such fiscal year:

<TABLE>
<CAPTION>
          Fiscal Year                             Capital Expenditures
          -----------                             --------------------
<S>                                               <C>
          2002                                    $25,000,000
          2003                                    $25,000,000
          2004                                    $35,000,000
          2005                                    $35,000,000
          2006                                    $35,000,000
</TABLE>

     ; PROVIDED that (i) up to 25% of any such amount referred to above, if not
     so expended in the fiscal year for which it is permitted, may be carried
     over for expenditure in the next succeeding fiscal year, (ii) up to 25% of
     the amount referred to above for any fiscal year

                                 AMENDMENT NO. 2
<PAGE>
                                     - 7 -

     may be expended in the immediately prior fiscal year (but any amount so
     expended in any such prior fiscal year may not be expended in such fiscal
     year) and (iii) Capital Expenditures made pursuant to this Section during
     any fiscal year shall be deemed made, FIRST, in respect of amounts
     permitted for such fiscal year as provided above and, SECOND, in respect of
     amounts carried over from the prior fiscal year pursuant to subclause (i)
     above; and PROVIDED, FURTHER, that no more than 20% of Capital Expenditures
     in any fiscal year may be incurred for expenditures not related to the
     Company's and its Subsidiaries' core CLEC access business as conducted as
     of the Closing Date and similar or related businesses. Notwithstanding the
     foregoing limitations, the Company and its Subsidiaries may make Capital
     Expenditures with (i) the proceeds of any Reinvestment Deferred Amount
     received in connection with a Recovery Event, (ii) the Available Amount at
     the time any such Capital Expenditure is made, and (iii) the proceeds from
     any sale and leaseback transaction permitted by Section 6.10."

          Section 3. REPRESENTATIONS AND WARRANTIES. Each of the Company and the
Borrower represents and warrants to the Lenders that (a) after giving effect to
the amendments set forth in Section 2 of this Amendment No. 2, no Default or
Event of Default shall have occurred and be continuing and (b) the
representations and warranties set forth in Section 3 of the Credit Agreement
are true and complete on the date hereof as if made on and as of the date hereof
(or, if any such representations and warranties expressly relate to any earlier
date, as of such earlier date), after giving effect to such amendments and as if
each reference in said Section 3 to "this Agreement" included reference to this
Amendment No. 2.

          Section 4. CONDITIONS PRECEDENT. As provided in Section 2 of this
Amendment No. 2, the amendments to the Credit Agreement set forth in said
Section 2 shall become effective as of the date hereof upon satisfaction of the
following conditions precedent:

          4.1. AMENDMENT NO. 2; SUBSIDIARY GUARANTOR CONFIRMATION. The
Administrative Agent shall have received one or more counterparts of (i) this
Amendment No. 2, duly executed and delivered by the Company, the Borrower and
the Required Lenders (or the Administrative Agent, with the written consent of
the Required Lenders provided in the form of the Lender Consent attached hereto
as Exhibit A) and (ii) a Confirmation, in form and substance satisfactory to the
Administrative Agent, from each of the Subsidiary Guarantors of their
obligations under the Guarantee and Collateral Agreement after giving effect to
this Amendment No. 2.

          4.2. ADDITIONAL EQUITY ISSUANCES. The Administrative Agent shall have
received satisfactory evidence that the Company shall have received not less
than $75,000,000 of aggregate cash proceeds from the issuance of additional
equity of the Company.

          4.3 FEES AND EXPENSES. The Administrative Agent shall have received
(i) for the account of each Lender that delivers to the Administrative Agent its
written consent to this Amendment No. 2 no later than 10:30 a.m. New York time
on March 30, 2001, a consent fee in the amount of 0.125% of the sum (determined
without duplication) of the aggregate amount of such Lender's outstanding Loans
and Commitments under the Credit Agreement and (ii) all fees and other amounts
due and payable on or prior to the date hereof, including, to the extent

                                 AMENDMENT NO. 2
<PAGE>
                                     - 8 -

invoiced, reimbursement or payment of all out-of-pocket expenses required to be
reimbursed or paid by the Company or the Borrower under the Credit Agreement.

          4.4 OTHER DOCUMENTS. The Administrative Agent shall have received such
other documents as the Administrative Agent or any Lender or Milbank, Tweed,
Hadley & McCloy LLP, special New York counsel to the Administrative Agent, may
reasonably request.

          Section 5. MISCELLANEOUS. Except as herein provided, the Credit
Agreement shall remain unchanged and in full force and effect. This Amendment
No. 2 may be executed in any number of counterparts, all of which taken together
shall constitute one and the same amendatory instrument and any of the parties
hereto may execute this Amendment No. 2 by signing any such counterpart. This
Amendment No. 2 shall be governed by, and construed in accordance with, the law
of the State of New York.

                                 AMENDMENT NO. 2
<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused this Amendment No.
2 to be duly executed and delivered as of the day and year first above written.

                                        BIRCH TELECOM, INC.

                                        By /s/ David E. Scott
                                          --------------------------------------
                                        Name: David E. Scott
                                        Title: President and Chief Executive
                                               Officer

                                        BIRCH TELECOM FINANCE, INC.

                                        By /s/ David E. Scott
                                          --------------------------------------
                                        Name: David E. Scott
                                        Title: President and Chief Executive
                                               Officer

                                        LENDERS

                                        LEHMAN COMMERCIAL PAPER INC,
                                        individually, as Swingline Lender and
                                        as Administrative Agent

                                        By /s/ G. Andrew Keith
                                          --------------------------------------
                                        Name: G. Andrew Keith
                                        Title: Authorized Signatory

                                AMENDMENT NO. 2

<PAGE>

                                                                       EXHIBIT A

                                 LENDER CONSENT

          Reference is made to the Amended and Restated Credit Agreement dated
as of February 2, 2000 (as amended and in effect from time to time, the "CREDIT
AGREEMENT") among Birch Telecom, Inc., a Delaware corporation (the "COMPANY"),
Birch Telecom Finance, Inc., a Delaware corporation (the "BORROWER"), the
Lenders named therein, and Lehman Commercial Paper Inc. ("LCPI"), as
administrative agent (in such capacity, the "ADMINISTRATIVE AGENT"), providing,
subject to the terms and conditions thereof, for extensions of credit to be made
by the Lenders to the Borrower in an aggregate principal or face amount not
exceeding $195,000,000. Capitalized terms used and not otherwise defined herein
are deemed to have the respective meanings assigned to such terms in the Credit
Agreement.

          The undersigned Lender party to the Credit Agreement hereby (i)
consents to Amendment No. 2 to the Credit Agreement dated as of March 30, 2001,
substantially in the form to which this Lender Consent is attached (the
"AMENDMENT NO. 2")and (ii) authorizes and directs the Administrative Agent to
execute and deliver Amendment No. 2 on behalf of such Lender.

Full Name of Lender:
                    --------------------------------------------

By:
   -----------------------------------------

Name:
     ---------------------------------------

Title:
      --------------------------------------

Date:                   , 2001
     -------------------

                                 AMENDMENT NO. 2<PAGE>

                                                                    Exhibit 10.1

                            WIT SOUNDVIEW GROUP, INC.
                             STOCK INCENTIVE PLAN(1)
              (INCLUDING AMENDMENTS MADE THROUGH JANUARY 22, 2001)

1.    RESTATEMENT, PURPOSE AND TYPES OF AWARDS

      Wit SoundView Group, Inc., a Delaware corporation (the "Corporation"),
maintained the Wit SoundView Group, Inc. and Its Subsidiaries Stock Option and
Restricted Stock Purchase Plan (the "Prior Plan"). The Prior Plan is hereby
amended and restated, as set forth herein (the "Plan"), effective March 1, 1999,
subject to the approval of the shareholders of the Corporation within twelve
months of such effective date. Notwithstanding anything herein to the contrary,
nothing in this Plan shall adversely affect the rights or obligations, under any
Award granted under the Prior Plan, of any grantee or holder of the Award
without such person's approval.

      The purpose of the Plan is to promote the long-term growth and
profitability of the Corporation by: (i) providing key people with incentives to
improve stockholder value and to contribute to the growth and financial success
of the Corporation; and (ii) enabling the Corporation to attract, retain and
reward the best-available persons.

      The Plan permits the granting of stock options (including incentive stock
options qualifying under Code section 422 and nonqualified stock options), stock
appreciation rights, restricted or unrestricted stock awards, phantom stock,
performance and other awards, or any combination of the foregoing.

2.    DEFINITIONS

      Under this Plan, except where the context otherwise indicates, the
following definitions apply:

      (a) "AFFILIATE" shall mean any entity, whether now or hereafter existing,
which controls, is controlled by, or is under common control with, the
Corporation (including, but not limited to, joint ventures, limited liability
companies, and partnerships). For this purpose, "control" shall mean ownership
of 50% or more of the total combined voting power or value of all classes of
stock or interests of the entity.

      (b) "AWARD" shall mean any stock option, stock appreciation right, stock
award, phantom stock award, or performance award.

      (c) "BOARD" shall mean the Board of Directors of the Corporation.

      (d) "CHANGE IN CONTROL" shall be deemed to have occurred if:

            (i)   the date of the acquisition by any "person" (within the
                  meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act),
                  excluding the Corporation or any of its subsidiaries or
                  affiliates or any employee benefit plan sponsored by any of
                  the foregoing, of beneficial ownership (within the meaning of
                  Rule 13d-3 under the Exchange Act) of the Threshold Percentage
                  (as defined herein) or more of either (x) the then outstanding
                  shares of common stock of the Corporation or (y) the then
                  outstanding voting securities entitled to vote generally in
                  the election of directors. For purposes of Awards granted
                  before

--------------------
(1)   Adjusted to reflect increase in authorized shares from 20,000,000 to 25,
      000,000 approved by shareholders on May 28, 1999, 7 for 10 reverse split
      on June 2, 1999, increase of authorized shares from 17,500,000 to
      27,350,000 approved by shareholders on January 27, 2000 and additional
      20,000,000 shares added by Board of Directors on January 22, 2001.

<PAGE>

                  January 22, 2001, the Threshold Percentage shall be 25%, and
                  for purposes of Awards granted on or after January 22, 2001,
                  the Threshold Percentage shall be 50%; or

            (ii)  the date the individuals who constitute the Board as of the
                  date of the Corporation's initial public offering (the
                  "Incumbent Board") cease for any reason to constitute at least
                  a majority of the members of the Board, provided that any
                  individual becoming a director subsequent to the effective
                  date of the initial public offering whose election, or
                  nomination for election by the Corporation's stockholders, was
                  approved by a vote of at least a majority of the directors
                  then comprising the Incumbent Board (other than any individual
                  whose nomination for election to Board membership was not
                  endorsed by the Corporation' management prior to, or at the
                  time of, such individual's initial nomination for election)
                  shall be, for purposes of the Plan, considered as though such
                  person were a member of the Incumbent Board; or

            (iii) the consummation of a merger, consolidation, recapitalization,
                  reorganization, sale or disposition of all or a substantial
                  portion of the Corporation's assets, a reverse stock split of
                  outstanding voting securities, the issuance of shares of stock
                  of the Corporation in connection with the acquisition of the
                  stock or assets of another entity, provided, however, that a
                  Change in Control shall not occur under this clause (iii) if
                  consummation of the transaction would result in at least 51%
                  of the total voting power represented by the voting securities
                  of the Corporation (or, if not the Corporation, the entity
                  that succeeds to all or substantially all of the Corporation's
                  business) outstanding immediately after such transaction being
                  beneficially owned (within the meaning of Rule 13d-3
                  promulgated pursuant to the Exchange Act) by at least 75% of
                  the holders of outstanding voting securities of the
                  Corporation immediately prior to the transaction, with the
                  voting power of each such continuing holder relative to other
                  such continuing holders not substantially altered in the
                  transaction.

      (e) "CODE" shall mean the Internal Revenue Code of 1986, as amended, and
any regulations promulgated thereunder.

      (f) "COMMON STOCK" shall mean shares of common stock of the Corporation,
$.01 par value.

      (g) "EXCHANGE ACT" shall mean the Securities Exchange Act of 1934, as
amended.

      (h) "FAIR MARKET VALUE" of a share of the Corporation's Common Stock for
any purpose at particular date shall be determined by the Administrator using
such methods and procedures as it shall from time to time determine in good
faith; provided, however, that (i) if the shares of the Common Stock are traded
on a registered national securities exchange or through a market operated by the
Nasdaq Stock Market, Inc., (including the OTC Bulletin Board), the last regular
way sales price for the primary trading session reported through any applicable
consolidated or other transaction reporting plan approved by the SEC pursuant to
the Exchange Act or (ii) if there was no such sale on a given day, the average
of the closing bid and asked prices reported through any applicable quotation
reporting plan approved by the SEC.

      (i) "GRANT AGREEMENT" shall mean a written document memorializing the
terms and conditions of an Award granted pursuant to the Plan and shall
incorporate the terms of the Plan.

                                       -2-

<PAGE>

      (j) "PARENT" shall mean a corporation, whether now or hereafter existing,
within the meaning of the definition of "parent corporation" provided in Code
section 424(e), or any successor thereto.

      (k) "SUBSIDIARY" AND "SUBSIDIARIES" shall mean only a corporation or
corporations, whether now or hereafter existing, within the meaning of the
definition of "subsidiary corporation" provided in Section 424(f) of the Code,
or any successor thereto.

3.    ADMINISTRATION

      (a) ADMINISTRATION OF THE PLAN. The Plan shall be administered by the
Board or by such committee or committees as may be appointed by the Board from
time to time (the Board, committee or committees hereinafter referred to as the
"Administrator").

      (b) POWERS OF THE ADMINISTRATOR. The Administrator shall have all the
powers vested in it by the terms of the Plan, such powers to include authority,
in its sole and absolute discretion, to grant Awards under the Plan, prescribe
Grant Agreements evidencing such Awards and establish programs for granting
Awards.

      The Administrator shall have full power and authority to take all other
actions necessary to carry out the purpose and intent of the Plan, including,
but not limited to, the authority to: (i) determine the eligible persons to
whom, and the time or times at which Awards shall be granted; (ii) determine the
types of Awards to be granted; (iii) determine the number of shares to be
covered by or used for reference purposes for each Award; (iv) impose such
terms, limitations, restrictions and conditions upon any such Award as the
Administrator shall deem appropriate; (v) modify, amend, extend or renew
outstanding Awards, or accept the surrender of outstanding Awards and substitute
new Awards (provided however, that, except as provided in Section 7(d) of the
Plan, any modification that would materially adversely affect any outstanding
Award shall not be made without the consent of the holder); (vi) accelerate or
otherwise change the time in which an Award may be exercised or becomes payable
and to waive or accelerate the lapse, in whole or in part, of any restriction or
condition with respect to such Award, including, but not limited to, any
restriction or condition with respect to the vesting or exercisability of an
Award following termination of any grantee's employment or other relationship
with the Corporation; and (vii) establish objectives and conditions, if any, for
earning Awards and determining whether Awards will be paid after the end of a
performance period.

      The Administrator shall have full power and authority, in its sole and
absolute discretion, to administer and interpret the Plan and to adopt and
interpret such rules, regulations, agreements, guidelines and instruments for
the administration of the Plan and for the conduct of its business as the
Administrator deems necessary or advisable.

      (c) NON-UNIFORM DETERMINATIONS. The Administrator's determinations under
the Plan (including without limitation, determinations of the persons to receive
Awards, the form, amount and timing of such Awards, the terms and provisions of
such Awards and the Grant Agreements evidencing such Awards) need not be uniform
and may be made by the Administrator selectively among persons who receive, or
are eligible to receive, Awards under the Plan, whether or not such persons are
similarly situated.

      (d) LIMITED LIABILITY. To the maximum extent permitted by law, no member
of the Administrator shall be liable for any action taken or decision made in
good faith relating to the Plan or any Award thereunder.

                                       -3-
<PAGE>

      (e) INDEMNIFICATION. To the maximum extent permitted by law and by the
Corporation's charter and by-laws, the members of the Administrator shall be
indemnified by the Corporation in respect of all their activities under the
Plan.

      (f) EFFECT OF ADMINISTRATOR'S DECISION. All actions taken and decisions
and determinations made by the Administrator on all matters relating to the Plan
pursuant to the powers vested in it hereunder shall be in the Administrator's
sole and absolute discretion and shall be conclusive and binding on all parties
concerned, including the Corporation, its stockholders, any participants in the
Plan and any other employee, consultant, or director of the Corporation, and
their respective successors in interest.

4.    SHARES AVAILABLE FOR THE PLAN; MAXIMUM AWARDS

      (a)   SHARES AVAILABLE. Subject to adjustments as provided in Section
            7(d), the shares of Common Stock that may be issued with respect to
            Awards granted under the Plan (including, for purposes of this
            Section 4, the Prior Plan) shall not exceed an aggregate of
            47,350,000 shares of Common Stock. The Corporation shall reserve
            such number of shares for Awards under the Plan, subject to
            adjustments as provided in Section 7(d). If any Award, or portion of
            an Award, under the Plan expires or terminates unexercised, becomes
            unexercisable or is forfeited or otherwise terminated, surrendered
            or canceled as to any shares, or if any shares of Common Stock are
            surrendered to the Corporation in connection with any Award (whether
            or not such surrendered shares were acquired pursuant to any Award),
            the shares subject to such Award and the surrendered shares shall
            thereafter be available for further Awards under the Plan; provided,
            however, that any such shares that are surrendered to the
            Corporation in connection with any Award or that are forfeited after
            issuance shall not be available for purchase pursuant to incentive
            stock options intended to qualify under Code section 422.

      (b)   ANNUAL PER-PERSON LIMITS. During any calendar year, no participant
            may be granted Awards that may be settled by delivery of more than
            1million shares of Common Stock, subject to adjustment as provided
            in Section 7(d). In addition, with respect to Awards that may be
            settled in cash (in whole or in part), no participant may be paid
            during any calendar year cash amounts relating to such Awards that
            exceed the greater of the Fair Market Value of the number of shares
            of Common Stock set forth in the preceding sentence at the date of
            grant or the date of settlement of the Award. This provision sets
            forth two separate limitations, so that Awards that may be settled
            solely by delivery of Common Stock will not operate to reduce the
            amount of cash-only Awards, and vice versa; nevertheless, Awards
            that may be settled in Common Stock or cash must not exceed either
            limitation.

5.    PARTICIPATION

      Participation in the Plan shall be open to all employees, officers,
directors, and consultants of the Corporation, or of any Affiliate of the
Corporation, as may be selected by the Administrator from time to time.

                                       -4-
<PAGE>

6.    AWARDS

      The Administrator, in its sole discretion, establishes the terms of all
Awards granted under the Plan. Awards may be granted individually or in tandem
with other types of Awards. All Awards are subject to the terms and conditions
provided in the Grant Agreement.

      (a) STOCK OPTIONS. The Administrator may from time to time grant to
eligible participants Awards of incentive stock options as that term is defined
in Code section 422 or nonqualified stock options; provided, however, that
Awards of incentive stock options shall be limited to employees of the
Corporation or of any Parent or Subsidiary of the Corporation. Options intended
to qualify as incentive stock options under Code section 422 must have an
exercise price at least equal to Fair Market Value on the date of grant, but
nonqualified stock options may be granted with an exercise price less than Fair
Market Value. No stock option shall be an incentive stock option unless so
designated by the Administrator at the time of grant or in the Grant Agreement
evidencing such stock option.

      (b) STOCK APPRECIATION RIGHTS. The Administrator may from time to time
grant to eligible participants Awards of Stock Appreciation Rights ("SAR"). An
SAR entitles the grantee to receive, subject to the provisions of the Plan and
the Grant Agreement, a payment having an aggregate value equal to the product of
(i) the excess of (A) the Fair Market Value on the exercise date of one share of
Common Stock over (B) the base price per share specified in the Grant Agreement,
times (ii) the number of shares specified by the SAR, or portion thereof, which
is exercised. Payment by the Corporation of the amount receivable upon any
exercise of an SAR may be made by the delivery of Common Stock or cash, or any
combination of Common Stock and cash, as determined in the sole discretion of
the Administrator. If upon settlement of the exercise of an SAR a grantee is to
receive a portion of such payment in shares of Common Stock, the number of
shares shall be determined by dividing such portion by the Fair Market Value of
a share of Common Stock on the exercise date. No fractional shares shall be used
for such payment and the Administrator shall determine whether cash shall be
given in lieu of such fractional shares or whether such fractional shares shall
be eliminated.

      (c) STOCK AWARDS. The Administrator may from time to time grant restricted
or unrestricted stock Awards to eligible participants in such amounts, on such
terms and conditions, and for such consideration, including no consideration or
such minimum consideration as may be required by law, as it shall determine. A
stock Award may be paid in Common Stock, in cash, or in a combination of Common
Stock and cash, as determined in the sole discretion of the Administrator.

      (d) PHANTOM STOCK. The Administrator may from time to time grant Awards to
eligible participants denominated in stock-equivalent units ("phantom stock") in
such amounts and on such terms and conditions as it shall determine. Phantom
stock units granted to a participant shall be credited to a bookkeeping reserve
account solely for accounting purposes and shall not require a segregation of
any of the Corporation's assets. An Award of phantom stock may be settled in
Common Stock, in cash, or in a combination of Common Stock and cash, as
determined in the sole discretion of the Administrator. Except as otherwise
provided in the applicable Grant Agreement, the grantee shall not have the
rights of a stockholder with respect to any shares of Common Stock represented
by a phantom stock unit solely as a result of the grant of a phantom stock unit
to the grantee.

      (e) PERFORMANCE AWARDS. The Administrator may, in its discretion, grant
performance awards which become payable on account of attainment of one or more
performance goals established by the Administrator. Performance awards may be
paid by the delivery of Common Stock or cash, or any combination of Common Stock
and cash, as determined in the sole discretion of the Administrator. Performance
goals

                                       -5-
<PAGE>

established by the Administrator may be based on the Corporation's or an
Affiliate's operating income or one or more other business criteria selected by
the Administrator that apply to an individual or group of individuals, a
business unit, or the Corporation or an Affiliate as a whole, over such
performance period as the Administrator may designate.

      (f) OTHER AWARDS. The Administrator may, in its discretion, grant other
awards in such number, and upon such terms, and at any time and from time to
time, as shall be determined by the Administrator. Such awards may be
denominated in cash, in shares of Common Stock, in share-equivalent units, in
share appreciation units, in securities or debentures convertible into Common
Stock or in a combination of the foregoing and may be paid in cash or in shares
of Common Stock, all as determined by the Administrator. Such awards may be
issued alone or in tandem with other awards as described above, may be granted
based on or subject to performance measures, and may relate to annual bonus or
long-term performance awards.

7.    MISCELLANEOUS

      (a) WITHHOLDING OF TAXES. Grantees and holders of Awards shall pay to the
Corporation or its Affiliate, or make provision satisfactory to the
Administrator for payment of, any taxes required to be withheld in respect of
Awards under the Plan no later than the date of the event creating the tax
liability. The Corporation or its Affiliate may, to the extent permitted by law,
deduct any such tax obligations from any payment of any kind otherwise due to
the grantee or holder of an Award. In the event that payment to the Corporation
or its Affiliate of such tax obligations is made in shares of Common Stock, such
shares shall be valued at Fair Market Value on the applicable date for such
purposes.

      (b) LOANS. The Corporation or its Affiliate may make or guarantee loans to
grantees to assist grantees in exercising Awards and satisfying any withholding
tax obligations.

      (c) TRANSFERABILITY. Except as otherwise determined by the Administrator,
and in any event in the case of an incentive stock option or a stock
appreciation right granted with respect to an incentive stock option, no Award
granted under the Plan shall be transferable by a grantee otherwise than by will
or the laws of descent and distribution. Unless otherwise determined by the
Administrator in accord with the provisions of the immediately preceding
sentence, an Award may be exercised during the lifetime of the grantee, only by
the grantee or, during the period the grantee is under a legal disability, by
the grantee's guardian or legal representative.

      (d) ADJUSTMENTS; BUSINESS COMBINATIONS. In the event of changes in the
Common Stock of the Corporation by reason of any stock dividend, spin-off,
split-up, recapitalization, merger, consolidation, business combination or
exchange of shares and the like, the Administrator shall, in its discretion,
make appropriate adjustments to the maximum number and kind of shares reserved
for issuance or with respect to which Awards may be granted under the Plan as
provided in Section 4 of the Plan and to the number, kind and price of shares
covered by outstanding Awards, and shall, in its discretion and without the
consent of holders of Awards, make any other adjustments in outstanding Awards,
including but not limited to reducing the number of shares subject to Awards or
providing or mandating alternative settlement methods such as settlement of the
Awards in cash or in shares of Common Stock or other securities of the
Corporation or of any other entity, or in any other matters which relate to
Awards as the Administrator shall, in its sole discretion, determine to be
necessary or appropriate.

      Notwithstanding anything in the Plan to the contrary and without the
consent of holders of Awards, the Administrator, in its sole discretion, may
make any modifications to any Awards, including but not limited to

                                       -6-
<PAGE>

cancellation, forfeiture, surrender or other termination of the Awards in whole
or in part regardless of the vested status of the Award, in order to facilitate
any business combination that is authorized by the Board to comply with
requirements for treatment as a pooling of interests transaction for accounting
purposes under generally accepted accounting principles.

      The Administrator is authorized to make, in its discretion and without the
consent of holders of Awards, adjustments in the terms and conditions of, and
the criteria included in, Awards in recognition of unusual or nonrecurring
events affecting the Corporation, or the financial statements of the Corporation
or any Affiliate, or of changes in applicable laws, regulations, or accounting
principles, whenever the Administrator determines that such adjustments are
appropriate in order to prevent dilution or enlargement of the benefits or
potential benefits intended to be made available under the Plan.

      (e) SUBSTITUTION OF AWARDS IN MERGERS AND ACQUISITIONS. Awards may be
granted under the Plan from time to time in substitution for Awards held by
employees or directors of entities who become or are about to become employees
or directors of the Corporation or an Affiliate as the result of a merger or
consolidation of the employing entity with the Corporation or an Affiliate, or
the acquisition by the Corporation or an Affiliate of the assets or stock of the
employing entity. The terms and conditions of any substitute Awards so granted
may vary from the terms and conditions set forth herein to the extent that the
Administrator deems appropriate at the time of grant to conform the substitute
Awards to the provisions of the awards for which they are substituted.

      (f) ACCELERATION OF VESTING UPON A CHANGE IN CONTROL. ACCELERATION OF
VESTING UPON A CHANGE IN CONTROL. Notwithstanding any other provision of the
Plan to the contrary, all conditions and/or restrictions relating to the
continued performance of services and/or the achievement of performance
objectives with respect to the exercisability or full enjoyment of an Award
shall lapse immediately prior to a Change in Control; PROVIDED, HOWEVER, that
such lapse shall not occur if it is intended that the transaction constituting
such Change in Control be accounted for as a pooling of interests under
Accounting Principles Board Opinion No. 16 (or any successor thereto), and
operation of this Section 7(f) would otherwise violate Paragraph 47(c) thereof;
and PROVIDED FURTHER, that the automatic lapse of conditions and restrictions
provided for under this Section 7(f) shall not apply to an Award if and to the
extent that the Administrator so specifies in the original Grant Agreement
evidencing such Award or, with the written consent of the affected Participant,
in an amendment to an outstanding Grant Agreement(2)

      (g) TERMINATION, AMENDMENT AND MODIFICATION OF THE PLAN. The Board may
terminate, amend or modify the Plan or any portion thereof at any time.

      (h) NON-GUARANTEE OF EMPLOYMENT OR SERVICE. Nothing in the Plan or in any
Grant Agreement thereunder shall confer any right on an individual to continue
in the service of the Corporation or shall interfere in any way with the right
of the Corporation to terminate such service at any time with or without cause
or notice.

      (i) NO TRUST OR FUND CREATED. Neither the Plan nor any Award shall create
or be construed to create a trust or separate fund of any kind or a fiduciary
relationship between the Corporation and a grantee or any other person. To the
extent that any grantee or other person acquires a right to receive payments
from the Corporation pursuant to an Award, such right shall be no greater than
the right of any unsecured general creditor of the Corporation.

---------------------
(2)   Sections 7(f) and 2(d) were added by amendment on October 14, 1999 and
      further amended on January 22, 2001.

                                       -7-
<PAGE>

      (j) GOVERNING LAW. The validity, construction and effect of the Plan, of
Grant Agreements entered into pursuant to the Plan, and of any rules,
regulations, determinations or decisions made by the Administrator relating to
the Plan or such Grant Agreements, and the rights of any and all persons having
or claiming to have any interest therein or thereunder, shall be determined
exclusively in accordance with applicable federal laws and the laws of the State
of New York without regard to its conflict of laws principles.

      (k) EFFECTIVE DATE; TERMINATION DATE. The Plan is effective as of March 1,
1999, the date on which the Plan, as an amendment and restatement of the Prior
Plan, was approved by the Board, subject to the approval of the stockholders of
the Corporation within twelve months of such effective date. No Award shall be
granted under the Plan after the close of business March 1 2009. Subject to
other applicable provisions of the Plan, all Awards made under the Plan prior to
such termination of the Plan shall remain in effect until such Awards have been
satisfied or terminated in accordance with the Plan and the terms of such
Awards.

Date Approved by the Stockholders: April 6, 1999; amended January 27,2000; and
Amended by Board of Directors on January 22, 2001.

                                      -8-

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