Document:

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                                                                    Exhibit 10.2

                 2002 DEVELOPERS DIVERSIFIED REALTY CORPORATION

                             EQUITY-BASED AWARD PLAN

SECTION 1.     PURPOSE; DEFINITIONS.

               The purpose of the 2002 Developers Diversified Realty
Corporation Equity-Based Award Plan (the "Plan") is to enable Developers
Diversified Realty Corporation (the "Company") and its Subsidiaries (as defined
below) to attract, retain and reward employees and directors of the Company, its
Subsidiaries and Affiliates designated by the Company's Board of Directors and
strengthen the mutuality of interests between those employees and directors and
the Company's shareholders by offering the employees and directors equity or
equity-based incentives thereby increasing their proprietary interest in the
Company's business and enhancing their personal interest in the Company's
success.

               For purposes of the Plan, the following terms are defined as
follows:

               (a) "Affiliate" means any entity (other than the Company and
               any Subsidiary) that is designated by the Board as a
               participating employer under the Plan.

               (b) "Award" means any award of Stock Options, Share
               Appreciation Rights, Restricted Shares, Deferred Shares, Share
               Purchase Rights or Other Share-Based Awards under the Plan.

               (c) "Board" means the Board of Directors of the Company.

               (d) "Cause" means, unless otherwise provided by the Committee,
               (i) "Cause" as defined in any Individual Agreement to which
               the participant is a party, or (ii) if there is no such
               Individual Agreement or if it does not define Cause: (A)
               conviction of the participant for committing a felony under
               federal law or in the law of the state in which such action
               occurred, (B) dishonesty in the course of fulfilling the
               participant's employment duties, (C) willful and deliberate
               failure on the part of the participant to perform his or her
               employment duties in any material respect, or (D) prior to a
               Change in Control, such other events as shall be determined by
               the Committee. The Committee shall, unless otherwise provided
               in an Individual Agreement with the participant, have the sole
               discretion to determine whether "Cause" exists, and its
               determination shall be final.

               (e) "Change in Control" has the meaning set forth in Section
               12(b).

               (f) "Change in Control Price" has the meaning set forth in
               Section 12(d).

               (g) "Code" means the Internal Revenue Code of 1986, as amended
               from time to time, and any successor thereto.

               (h) "Committee" means the Granting Committee of the Board of
               the Company or any other committee authorized by the Board to
               administer the Plan of which all the members are both Outside
               Directors and Non-Employee Directors.

               (i) "Company" means Developers Diversified Realty Corporation,
               an Ohio corporation, or any successor corporation.

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               (j) "Deferred Shares" means an Award of the right to receive
               Shares at the end of a specified deferral period granted
               pursuant to Section 8.

               (k) "Disability" means a permanent and total disability as
               defined in Section 22(e)(3) of the Code.

               (l) "Dividend Equivalent" means a right, granted to a
               participant under Section 10 hereof, to receive cash, Shares,
               other Awards or other property equal in value to dividends
               paid with respect to a specified number of Shares, or other
               periodic payments.

               (m) "Exchange Act" means the Securities Exchange Act of 1934,
               as amended.

               (n) "Fair Market Value" means, as of a given date, (in order
               of applicability): (i) the closing price of a Common Share on
               the principal exchange on which the Common Shares are then
               trading, if any, on the day immediately prior to such date, or
               if Common Shares were not traded on the day previous to such
               date, then on the next preceding trading day during which a
               sale occurred; or (ii) if Common Shares are not traded on an
               exchange but are quoted on NASDAQ or a successor quotation
               system, (A) the last sale price (if Common Shares are then
               listed as a National Market Issue under the NASD National
               Market System) or (B) if Common Shares are not then so listed,
               the mean between the closing representative bid and asked
               prices for Common Shares on the day previous to such date as
               reported by NASDAQ or such successor quotation system; or
               (iii) if Common Shares are not publicly traded on an exchange
               and not quoted on NASDAQ or a successor quotation system, the
               mean between the closing bid and asked prices for Common
               Shares, on the day previous to such date, as determined in
               good faith by the Committee; or (iv) if Common Shares are not
               publicly traded, the fair market value established by the
               Committee acting in good faith.

               (o) "Incentive Stock Option" means any Stock Option intended
               to be and designated as, and that otherwise qualifies as, an
               "Incentive Stock Option" within the meaning of Section 422 of
               the Code or any successor section thereto.

               (p) "Individual Agreement" means an employment or similar
               agreement between a participant and the Company or one of its
               Subsidiaries or Affiliates.

               (q) "Non-Employee Director" has the meaning set forth under
               Section 16 of the Exchange Act.

               (r) "Non-Qualified Stock Option" means any Stock Option that
               is not an Incentive Stock Option.

               (s) "Other Share-Based Awards" means an Award granted pursuant
               to Section 10 that is valued, in whole or in part, by
               reference to, or is otherwise based on, Shares.

               (t) "Outside Director" has the meaning set forth in Section
               162(m) of the Code and the regulations promulgated thereunder.

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               (u) "Plan" means the 2002 Developers Diversified Realty
               Corporation Equity-Based Award Plan, as amended from time to
               time.

               (v) "Potential Change in Control" has the meaning set forth in
               Section 12(c).

               (w) "Retirement" means retirement from active employment with
               the Company, a Subsidiary or Affiliate at the earlier to occur
               of: (a) a participant attaining the age of 55 or (b) a
               participant attaining the age of 50 and accruing 15 years of
               credited service for the Company, a Subsidiary or Affiliate.

               (x) "Restricted Shares" means an Award of Shares that is
               granted pursuant to Section 7 and is subject to restrictions.

               (y) "Section 16 Participant" means a participant under the
               Plan who is subject to Section 16 of the Exchange Act.

               (z) "Share Appreciation Right" means an Award of a right to
               receive an amount from the Company that is granted pursuant to
               Section 6.

               (aa) "Shares" means the Common Shares, without par value, of
               the Company.

               (bb) "Stock Option" or "Option" means any option to purchase
               Shares (including Restricted Shares and Deferred Shares, if
               the Committee so determines) that is granted pursuant to
               Section 5.

               (cc) "Share Purchase Right" means an Award of the right to
               purchase Shares that is granted pursuant to Section 9.

               (dd) "Subsidiary" means any corporation (other than the
               Company) in an unbroken chain of corporations beginning with
               the Company if each of the corporations (other than the last
               corporation in the unbroken chain) owns stock possessing 50%
               or more of the total combined voting power of all classes of
               stock in one of the other corporations in that chain.

SECTION 2.     ADMINISTRATION.

               The Plan shall be administered by the Committee. The Committee
shall consist of not less than three directors of the Company, all of whom shall
be Outside Directors and Non-Employee Directors. Those directors shall be
appointed by the Board and shall serve as the Committee at the pleasure of the
Board. The functions of the Committee specified in the Plan shall be exercised
by the Board if and to the extent that no Committee exists that has the
authority to so administer the Plan.

               The Committee shall have full power to interpret and
administer the Plan and full authority to select the individuals to whom Awards
will be granted (other than Awards to directors of the Company that must be
approved by the Board) and to determine the type and amount of any Award to be
granted to each participant, the consideration, if any, to be paid for any
Award, the timing of each Award, the terms and conditions of any Award granted
under the Plan, and the terms and conditions of the related agreements that will
be entered into with participants. As to the selection of and grant of Awards to
participants who are not executive officers of the Company or any Subsidiary or
Affiliate, or Section 16 Participants, the Committee

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may delegate its responsibilities to members of the Company's management in any
manner consistent with applicable law.

               The Committee shall have the authority to adopt, alter and
repeal such rules, guidelines and practices governing the Plan as it shall, from
time to time, deem advisable; to interpret the terms and provisions of the Plan
and any Award issued under the Plan (and any agreement relating thereto); to
direct employees of the Company or other advisors to prepare such materials or
perform such analyses as the Committee deems necessary or appropriate; and
otherwise to supervise the administration of the Plan.

               Any interpretation or administration of the Plan by the
Committee, and all actions and determinations of the Committee, shall be final,
binding and conclusive on the Company, its shareholders, Subsidiaries,
Affiliates, all participants in the Plan, their respective legal
representatives, successors and assigns, and all persons claiming under or
through any of them. No member of the Board or of the Committee shall incur any
liability for any action taken or omitted, or any determination made, in good
faith in connection with the Plan.

SECTION 3.     SHARES SUBJECT TO THE PLAN.

               (a) Aggregate Shares Subject to the Plan. Subject to
               adjustment as provided in Section 3(c), the total number of
               Shares reserved and available for Awards under the Plan is
               3,100,000. Any Shares issued hereunder may consist, in whole
               or in part, of authorized and unissued shares or treasury
               shares.

               (b) Forfeiture or Termination of Awards of Shares. If any
               Shares subject to any Award granted hereunder are forfeited or
               an Award otherwise terminates or expires without the issuance
               of Shares, the Shares subject to that Award shall again be
               available for distribution in connection with future Awards
               under the Plan as set forth in Section 3(a), unless the
               participant who had been awarded those forfeited Shares or the
               expired or terminated Award has theretofore received dividends
               or other benefits of ownership with respect to those Shares.
               For purposes hereof, a participant shall not be deemed to have
               received a benefit of ownership with respect to those Shares
               by the exercise of voting rights, or by the accumulation of
               dividends that are not realized because of the forfeiture of
               those Shares or the expiration or termination of the related
               Award without issuance of those Shares.

               (c) Adjustment. In the event of any merger, reorganization,
               consolidation, recapitalization, share dividend, share split,
               combination of shares or other change in corporate structure
               of the Company affecting the Shares, such substitution or
               adjustment shall be made in the aggregate number of Shares
               reserved for issuance under the Plan, in the number and option
               price of Shares subject to outstanding options granted under
               the Plan, in the number and purchase price of Shares subject
               to outstanding Share Purchase Rights granted under the Plan,
               in the number of Share Appreciation Rights granted under the
               Plan, in the number of underlying Shares any Dividend
               Equivalent Rights granted under the Plan will be based on, and
               in the number of Shares subject to Restricted Share Awards,
               Deferred Share Awards and any other outstanding Awards granted
               under the Plan as may be approved by the Committee, in its
               sole discretion, but the number of Shares subject to any Award
               shall always be a whole number. Any fractional Shares shall be
               eliminated.

               (d) Annual Award Limit. No participant may be granted Stock
               Options or other Awards under the Plan with respect to an
               aggregate of more than 500,000 Shares (subject to adjustment
               as provided in Section 3(c) hereof) during any calendar year.

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SECTION 4.     ELIGIBILITY.

               Grants may be made from time to time to those officers,
employees and directors of the Company who are designated by the Committee in
its sole and exclusive discretion. Eligible persons may include, but shall not
necessarily be limited to, officers and directors of the Company and any
Subsidiary or Affiliate; however, Stock Options intended to qualify as Incentive
Stock Options shall be granted only to eligible persons while actually employed
by the Company, a Subsidiary or an Affiliate. The Committee may grant more than
one Award to the same eligible person. No Award shall be granted to any eligible
person during any period of time when such eligible person is on a leave of
absence. Awards to be granted to directors, which may include members of the
Committee, must be approved and granted by the Board.

SECTION 5.     STOCK OPTIONS.

               (a) Grant. Stock Options may be granted alone, in addition to
               or in tandem with other Awards granted under the Plan or cash
               awards made outside the Plan. The Committee shall determine
               the individuals to whom, and the time or times at which,
               grants of Stock Options will be made, the number of Shares
               purchasable under each Stock Option, and the other terms and
               conditions of the Stock Options in addition to those set forth
               in Sections 5(b) and 5(c). Any Stock Option granted under the
               Plan shall be in such form as the Committee may from time to
               time approve.

               Stock Options granted under the Plan may be of two types which
               shall be indicated on their face: (i) Incentive Stock Options
               and (ii) Non-Qualified Stock Options. Subject to Section 5(c),
               the Committee shall have the authority to grant to any
               participant Incentive Stock Options, Non-Qualified Stock
               Options or both types of Stock Options.

               (b) Terms and Conditions. Options granted under the Plan shall
               be evidenced by an agreement ("Option Agreements"), shall be
               subject to the following terms and conditions and shall
               contain such additional terms and conditions, not inconsistent
               with the terms of the Plan, as the Committee shall deem
               desirable:

                        (1) Option Price. The option price per share of
               Shares purchasable under a Non-Qualified Stock Option or an
               Incentive Stock Option shall be determined by the Committee at
               the time of grant and shall be not less than 100% of the Fair
               Market Value of the Shares at the date of grant (or, with
               respect to an Incentive Stock Option, 110% of the Fair Market
               Value of the Shares at the date of grant in the case of a
               participant who at the date of grant owns Shares possessing
               more than 10% of the total combined voting power of all
               classes of stock of the Company or its parent or Subsidiary
               corporations (as determined under Sections 424(d), (e) and (f)
               of the Code)).

                        (2) Option Term. The term of each Stock Option shall
               be determined by the Committee and may not exceed ten years
               from the date the Option is granted (or, with respect to an
               Incentive Stock Option, five years in the case of a
               participant who at the date of grant owns Shares possessing
               more than 10% of the total combined voting power of all
               classes of stock of the Company or its parent or Subsidiary
               corporations (as determined under Sections 424(d), (e) and (f)
               of the Code)).

                        (3) Exercise. Stock Options shall be exercisable at
               such time or times and shall be subject to such terms and
               conditions as shall be determined by the Committee at or after
               grant; but, except as provided in Section 5(b)(6) and Section
               13, unless otherwise determined

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               by the Committee at or after grant, no Stock Option shall be
               exercisable prior to six months and one day following the date
               of grant. If any Stock Option is exercisable only in
               installments or only after specified exercise dates, the
               Committee may waive, in whole or in part, such installment
               exercise provisions, and may accelerate any exercise date or
               dates, at any time at or after grant, based on such factors as
               the Committee shall determine in its sole discretion.

                        (4) Method of Exercise. Subject to any installment
               exercise provisions that apply with respect to any Stock
               Option, and the six month and one day holding period set forth
               in Section 5(b)(3), a Stock Option may be exercised in whole
               or in part, at any time during the Option period, by the
               holder thereof giving to the Company written notice of
               exercise specifying the number of Shares to be purchased.

                        That notice shall be accompanied by payment in full
               of the Option price of the Shares for which the Option is
               exercised, in cash or Shares or by check or such other
               instrument as the Committee may accept. The value of each such
               Share surrendered or withheld shall be 100% of the Fair Market
               Value of the Shares on the date the option is exercised.

                        No Shares shall be issued on an exercise of an Option
               until full payment has been made. Except in connection with
               the tandem award of Dividend Equivalent Rights, a participant
               shall not have rights to dividends or any other rights of a
               shareholder with respect to any Shares subject to an Option
               unless and until the participant has given written notice of
               exercise, has paid in full for those Shares, has given, if
               requested, the representation described in Section 15(a), and
               those Shares have been issued to him.

                        (5) Non-Transferability of Options. No Stock Option
               shall be transferable by any participant other than by will or
               by the laws of descent and distribution or pursuant to a
               qualified domestic relations order (as defined in the Code or
               the Employment Retirement Income Security Act of 1974, as
               amended) except that, if so provided in the Option Agreement,
               the participant may transfer the Option, other than an
               Incentive Stock Option, during his lifetime to one or more
               members of his family, to one or more trusts for the benefit
               of one or more of his family, or to a partnership or
               partnerships of members of his family, or to a charitable
               organization as defined in Section 501(c)(3) of the Code,
               provided that no consideration is paid for the transfer and
               that the transfer would not result in the loss of any
               exemption under Rule 16b-3 of the Exchange Act with respect to
               any Option. The transferee of an Option will be subject to all
               restrictions, terms and conditions applicable to the Option
               prior to its transfer, except that the Option will not be
               further transferable by the transferee other than by will or
               by the laws of descent and distribution.

                        (6) Termination of Employment

                        (i)      Termination by Death. Subject to Sections
                                 5(b)(3) and 5(c), if any participant's
                                 employment with the Company or any
                                 Subsidiary or Affiliate terminates by reason
                                 of death, any Stock Option held by that
                                 participant shall become immediately and
                                 automatically vested and exercisable. If
                                 termination of a participant's employment is
                                 due to death, then any Stock Option held by
                                 that participant may thereafter be exercised
                                 for a period of two years (or with respect
                                 to an Incentive Stock Option, for a period
                                 of one year) (or such other period as the
                                 Committee may specify at or after grant)
                                 from the date of death. Notwithstanding the
                                 foregoing, in no event will any Stock Option
                                 be exercisable after the expiration of the
                                 option period of such

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                                 Option. The balance of the Stock Option
                                 shall be forfeited if not exercised within
                                 two years.

                        (ii)     Termination by Reason of Disability. Subject
                                 to Sections 5(b)(3) and 5(c), if a
                                 participant's employment with the Company or
                                 any Subsidiary or Affiliate terminates by
                                 reason of Disability, any Stock Option held
                                 by that participant shall become immediately
                                 and automatically vested and exercisable. If
                                 termination of a participant's employment is
                                 due to Disability, then any Stock Option
                                 held by that participant may thereafter be
                                 exercised by the participant or by the
                                 participant's duly authorized legal
                                 representative if the participant is unable
                                 to exercise the Option as a result of the
                                 participant's Disability, for a period of
                                 two years (or with respect to an Incentive
                                 Stock Option, for a period of one year) (or
                                 such other period as the Committee may
                                 specify at or after grant) from the date of
                                 such termination of employment; and if the
                                 participant dies within that two year period
                                 (or such other period as the Committee may
                                 specify at or after grant), any unexercised
                                 Stock Option held by that participant shall
                                 thereafter be exercisable by the estate of
                                 the participant (acting through its
                                 fiduciary) for the duration of the two-year
                                 period from the date of that termination of
                                 employment. Notwithstanding the foregoing,
                                 in no event will any Stock Option be
                                 exercisable after the expiration of the
                                 option period of such Option. The balance of
                                 the Stock Option shall be forfeited if not
                                 exercised within two years.

                        (iii)    Termination for Cause. Unless otherwise
                                 determined by the Committee at or after the
                                 time of granting any Stock Option, if a
                                 participant's employment with the Company or
                                 any Subsidiary or Affiliate terminates for
                                 Cause, any unvested Stock Options will be
                                 forfeited and terminated immediately upon
                                 termination and any vested Stock Options
                                 held by that participant shall terminate 30
                                 days after the date employment terminates.
                                 Notwithstanding the foregoing, in no event
                                 will any Stock Option be exercisable after
                                 the expiration of the option period of such
                                 Option. The balance of the Stock Option
                                 shall be forfeited.

                        (iv)     Other Termination. Unless otherwise
                                 determined by the Committee at or after the
                                 time of granting any Stock Option, if a
                                 participant's employment with the Company or
                                 any Subsidiary or Affiliate terminates for
                                 any reason other than death, Disability, or
                                 for Cause all Stock Options held by that
                                 participant shall terminate three months
                                 after the date employment terminates.
                                 Notwithstanding the foregoing, in no event
                                 will any Stock Option be exercisable after
                                 the expiration of the option period of such
                                 Option. The balance of the Stock Option
                                 shall be forfeited.

                        (v)      Leave of Absence. In the event a participant
                                 is granted a leave of absence by the Company
                                 or any Subsidiary or Affiliate to enter
                                 military service or because of sickness, his
                                 employment with the Company or such
                                 Subsidiary or Affiliate will not be
                                 considered terminated, and he shall be
                                 deemed an employee of the Company or such
                                 Subsidiary or Affiliate during such leave of
                                 absence or any extension thereof granted by
                                 the Company or such Subsidiary or Affiliate.
                                 Notwithstanding the foregoing, in the case
                                 of an Incentive Stock Option, a leave of
                                 absence of more than 90 days will be

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                                 viewed as a termination of employment unless
                                 continued employment is guaranteed by
                                 contract or statute.

               (c) Incentive Stock Options. Notwithstanding Sections 5(b)(5)
               and (6), an Incentive Stock Option shall be exercisable by (i)
               a participant's authorized legal representative (if the
               participant is unable to exercise the Incentive Stock Option
               as a result of the participant's Disability) only if, and to
               the extent, permitted by Section 422 of the Code and (ii) by
               the participant's estate, in the case of death, or authorized
               legal representative, in the case of Disability, no later than
               10 years from the date the Incentive Stock Option was granted
               (in addition to any other restrictions or limitations that may
               apply). Anything in the Plan to the contrary notwithstanding,
               no term or provision of the Plan relating to Incentive Stock
               Options shall be interpreted, amended or altered, nor shall
               any discretion or authority granted under the Plan be
               exercised, so as to disqualify the Plan under Section 422 of
               the Code, or, without the consent of the participants
               affected, to disqualify any Incentive Stock Option under that
               Section 422 or any successor Section thereto.

                        (d) Buyout Provisions. The Committee may at any time
               buy out for a payment in cash, Shares, Deferred Shares or
               Restricted Shares an Option previously granted, based on such
               terms and conditions as the Committee shall establish and
               agree upon with the participant, but no such transaction
               involving a Section 16 Participant shall be structured or
               effected in a manner that would result in any liability on the
               part of the participant under Section 16(b) of the Exchange
               Act or the rules and regulations promulgated thereunder.

                        (e) Certain Reissuance of Stock Options. To the
               extent Common Shares are surrendered by a participant in
               connection with the exercise of a Stock Option in accordance
               with Section 5(b), the Committee may, in its sole discretion,
               grant new Stock Options to such participant (to the extent
               Common Shares remain available for Awards), subject to the
               following terms and conditions:

                        (1) The number of Common Shares shall be equal to the
               number of Common Shares being surrendered by the participant;

                        (2) The option price per Common Share shall be equal
               to the Fair Market Value of Common Shares, determined on the
               date of exercise of the Stock Options whose exercise caused
               such Award; and

                        (3) The terms and conditions of such Stock Options
               shall in all other respects replicate such terms and
               conditions of the Stock Options whose exercise caused such
               Award, except to the extent such terms and conditions are
               determined to not be wholly consistent with the general
               provisions of this Section 5, or in conflict with the
               remaining provisions of this Plan.

SECTION 6.     SHARE APPRECIATION RIGHTS.

               (a) Grant. Share Appreciation Rights may be granted in
               connection with all or any part of an Option, either
               concurrently with the grant of the Option or, if the Option is
               a Non-Qualified Stock Option, by an amendment to the Option at
               any time thereafter during the term of the Option. Share
               Appreciation Rights may be exercised in whole or in part at
               such times under such conditions as may be specified by the
               Committee in the participant's Option Agreement.

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               (b) Terms and Conditions. The following terms and conditions
               will apply to all Share Appreciation Rights that are granted
               in connection with Options:

                        (1) Rights. Share Appreciation Rights shall entitle
               the participant, upon exercise of all or any part of the Share
               Appreciation Rights, to surrender to the Company, unexercised,
               that portion of the underlying Option relating to the same
               number of Shares as is covered by the Share Appreciation
               Rights (or the portion of the Share Appreciation Rights so
               exercised) and to receive in exchange from the Company an
               amount equal to the excess of (x) the Fair Market Value, on
               the date of exercise, of the Shares covered by the surrendered
               portion of the underlying Option over (y) the exercise price
               of the Shares covered by the surrendered portion of the
               underlying Option. The Committee may limit the amount that the
               participant will be entitled to receive upon exercise of the
               Share Appreciation Right.

                        (2) Surrender of Option. Upon the exercise of the
               Share Appreciation Right and surrender of the related portion
               of the underlying Option, the Option, to the extent
               surrendered, will not thereafter be exercisable. The
               underlying Option may provide that such Share Appreciation
               Rights will be payable solely in cash. The terms of the
               underlying Option shall provide a method by which an
               alternative fair market value of the Shares on the date of
               exercise shall be calculated based on one of the following:
               (x) the closing price of the Shares on the national exchange
               on which they are then traded on the business day immediately
               preceding the day of exercise; (y) the highest closing price
               of the Shares on the national exchange on which they have been
               traded during the 90 days immediately preceding the Change in
               Control; or (z) the greater of (x) and (y).

                        (3) Exercise. In addition to any further conditions
               upon exercise that may be imposed by the Committee, the Share
               Appreciation Rights shall be exercisable only to the extent
               that the related Option is exercisable, except that in no
               event will a Share Appreciation Right held by a Section 16
               Participant be exercisable within the first six months after
               it is awarded even though the related Option is or becomes
               exercisable, and each Share Appreciation Right will expire no
               later than the date on which the related Option expires. A
               Share Appreciation Right may be exercised only at a time when
               the Fair Market Value of the Shares covered by the Share
               Appreciation Right exceeds the exercise price of the Shares
               covered by the underlying Option.

                        (4) Method of Exercise. Share Appreciation Rights may
               be exercised by the participant giving written notice of the
               exercise to the Company, stating the number of Share
               Appreciation Rights the participant has elected to exercise
               and surrendering the portion of the underlying Option relating
               to the same number of Shares as the number of Share
               Appreciation Rights elected to be exercised.

                        (5) Payment. The manner in which the Company's
               obligation arising upon the exercise of the Share Appreciation
               Right will be paid will be determined by the Committee and
               shall be set forth in the participant's Option Agreement. The
               Committee may provide for payment in Shares or cash, or a
               fixed combination of Shares or cash, or the Committee may
               reserve the right to determine the manner of payment at the
               time the Share Appreciation Right is exercised. Shares issued
               upon the exercise of a Share Appreciation Right will be valued
               at their Fair Market Value on the date of exercise.

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SECTION 7.     RESTRICTED SHARES.

               (a) Grant. Restricted Shares may be issued alone, in addition
               to or in tandem with other Awards under the Plan or cash
               awards made outside the Plan. The Committee shall determine
               the individuals to whom, and the time or times at which,
               grants of Restricted Shares will be made, the number of
               Restricted Shares to be awarded to each participant, the price
               (if any) to be paid by the participant (subject to Section
               7(b)), the date or dates upon which Restricted Share Awards
               will vest, the period or periods within which those Restricted
               Share Awards may be subject to forfeiture, and the other terms
               and conditions of those Awards in addition to those set forth
               in Section 7(b).

                        The Committee may condition the grant of Restricted
               Shares upon the attainment of specified performance goals or
               such other factors as the Committee may determine in its sole
               discretion.

               (b) Terms and Conditions. Restricted Shares awarded under the
               Plan shall be subject to the following terms and conditions
               and such additional terms and conditions, not inconsistent
               with the provisions of the Plan, as the Committee shall deem
               desirable. A participant who receives a Restricted Share Award
               shall not have any rights with respect to that Award, unless
               and until the participant has executed an agreement evidencing
               the Award in the form approved from time to time by the
               Committee, has delivered a fully executed copy thereof to the
               Company, and has otherwise complied with the applicable terms
               and conditions of that Award.

                        (1) The purchase price (if any) for Restricted Shares
               shall be determined by the Committee at the time of grant.

                        (2) Awards of Restricted Shares must be accepted by
               executing a Restricted Share Award agreement and paying the
               price (if any) that is required under Section 7(b)(1).

                        (3) Each participant receiving a Restricted Share
               Award shall be issued a stock certificate in respect of those
               Restricted Shares. The certificate shall be registered in the
               name of the participant and shall bear an appropriate legend
               referring to the terms, conditions and restrictions applicable
               to the Award.

                        (4) The Committee shall require that the stock
               certificates evidencing the Restricted Shares be held in
               custody by the Company until the restrictions thereon shall
               have lapsed, and that, as a condition of any Restricted Shares
               Award, the participant shall have delivered to the Company a
               stock power, endorsed in blank, relating to the Shares covered
               by that Award.

                        (5) Subject to the provisions of this Plan and the
               Restricted Share Award agreement, during a period set by the
               Committee commencing with the date of any Award (the
               "Restriction Period"), the participant shall not be permitted
               to sell, transfer, pledge, assign or otherwise encumber the
               Restricted Shares covered by that Award. The Restriction
               Period shall not be less than three years in duration
               ("Minimum Restriction Period") unless otherwise determined by
               the Committee at the time of grant. Subject to these
               limitations and the Minimum Restriction Period requirement,
               the Committee, in its sole discretion, may provide for the
               lapse of restrictions in installments and may accelerate or
               waive restrictions, in whole or in part, based on service,
               performance or such other factors and criteria as the
               Committee may determine in its sole discretion.

                                 Page 10
<PAGE>

                        (6) Except as provided in this Section 7(b)(6) and
               Section 7(b)(5) and Section 7(b)(7), the participant shall
               have, with respect to the Restricted Shares awarded, all of
               the rights of a shareholder of the Company, including the
               right to vote the Shares and the right to receive any
               dividends. The Committee, in its sole discretion, as
               determined at the time of Award, may permit or require the
               payment of cash dividends to be deferred and subject to
               forfeiture and, if the Committee so determines, reinvested,
               subject to Section 14(f), in additional Restricted Shares to
               the extent Shares are available under Section 3, or otherwise
               reinvested. Unless the Committee or Board determines
               otherwise, Share dividends issued with respect to Restricted
               Shares shall be treated as additional Restricted Shares that
               are subject to the same restrictions and other terms and
               conditions that apply to the Shares with respect to which such
               dividends are issued.

                        (7) No Restricted Shares shall be transferable by a
               participant other than by will or by the laws of descent and
               distribution or pursuant to a qualified domestic relations
               order (as defined in the Code or the Employment Retirement
               Income Security Act of 1974, as amended) except that, if so
               provided in the Restricted Shares Agreement, the participant
               may transfer the Restricted Shares, during his lifetime to one
               or more members of his family, to one or more trusts for the
               benefit of one or more of his family, to a partnership or
               partnerships of members of his family, or to a charitable
               organization as defined in Section 501(c)(3) of the Code,
               provided that no consideration is paid for the transfer and
               that the transfer would not result in the loss of any
               exemption under Rule 16b-3 of the Exchange Act with respect to
               any Restricted Shares. The transferee of Restricted Shares
               will be subject to all restrictions, terms and conditions
               applicable to the Restricted Shares prior to its transfer,
               except that the Restricted Shares will not be further
               transferable by the transferee other than by will or by the
               laws of descent and distribution.

                        (8) Unless otherwise determined by the Committee at
               or after the time of granting any Restricted Shares, if a
               participant's employment with the Company or any Subsidiary or
               Affiliate terminates by reason of death, any Restricted Shares
               held by that participant shall thereafter vest and any
               restriction shall lapse.

                        (9) Unless otherwise determined by the Committee at
               or after the time of granting any Restricted Shares, if a
               participant's employment with the Company or any Subsidiary or
               Affiliate terminates by reason of Disability, any Restricted
               Shares held by that participant shall thereafter vest and any
               restriction shall lapse.

                        (10) Unless otherwise determined by the Committee at
               or after the time of granting any Restricted Shares, if a
               participant's employment with the Company or any Subsidiary or
               Affiliate terminates for any reason other than death or
               Disability, the Restricted Shares held by that participant
               that are unvested or subject to restriction at the time of
               termination shall thereupon be forfeited.

               (c) Minimum Value. In order to better ensure that Award
               payments actually reflect the performance of the Company and
               service of the participant, the Committee may provide, in its
               sole discretion, for a tandem performance-based or other award
               designed to guarantee a minimum value, payable in cash or
               Shares, to the recipient of a Restricted Share Award, subject
               to such performance, future service, deferral and other terms
               and conditions as may be specified by the Committee.

                                 Page 11
<PAGE>

SECTION 8.     DEFERRED SHARES.

               (a) Grant. Deferred Shares may be awarded alone, in addition
               to or in tandem with other Awards granted under the Plan or
               cash awards made outside the Plan. The Committee shall
               determine the individuals to whom, and the time or times at
               which, Deferred Shares shall be awarded, the number of
               Deferred Shares to be awarded to any participant, the duration
               of the period (the "Deferral Period") during which, and the
               conditions under which, receipt of the Shares will be
               deferred, and the other terms and conditions of the Award in
               addition to those set forth in Section 8(b).

                        The Committee may condition the grant of Deferred
               Shares upon the attainment of specified performance goals or
               such other factors as the Committee shall determine in its
               sole discretion.

               (b) Terms and Conditions. Deferred Share Awards shall be
               subject to the following terms and conditions and shall
               contain such additional terms and conditions, not inconsistent
               with the terms of the Plan, as the Committee shall deem
               desirable:

                        (1) The purchase price for Deferred Shares shall be
               determined at the time of grant by the Committee. Subject to
               the provisions of the Plan and the Award agreement referred to
               in Section 8(b)(9), Deferred Share Awards may not be sold,
               assigned, transferred, pledged or otherwise encumbered during
               the Deferral Period. At the expiration of the Deferral Period
               (or the Elective Deferral Period referred to in Section
               8(b)(8), where applicable), stock certificates shall be
               delivered to the participant, or the participant's legal
               representative, for the Shares covered by the Deferred Share
               Award. The Deferral Period applicable to any Deferred Share
               Award shall not be less than six months and one day ("Minimum
               Deferral Period").

                        (2) Unless otherwise determined by the Committee at
               grant, amounts equal to any dividends declared during the
               Deferral Period with respect to the number of Shares covered
               by a Deferred Share Award will be paid to the participant
               currently, or deferred and deemed to be reinvested in
               additional Deferred Shares, or otherwise reinvested, all as
               determined by the Committee, in its sole discretion, at or
               after the time of the Award.

                        (3) No Deferred Shares shall be transferable by a
               participant other than by will or by the laws of descent and
               distribution or pursuant to a qualified domestic relations
               order (as defined in the Code or the Employment Retirement
               Income Security Act of 1974, as amended) except that, if so
               provided in the Deferred Shares Agreement, the participant may
               transfer the Deferred Shares during his lifetime to one or
               more members of his family, to one or more trusts for the
               benefit of one or more of his family, to a partnership or
               partnerships of members of his family, or to a charitable
               organization as defined in Section 501(c)(3) of the Code,
               provided that no consideration is paid for the transfer and
               that the transfer would not result in the loss of any
               exemption under Rule 16b-3 of the Exchange Act with respect to
               any Deferred Shares. The transferee of Deferred Shares will be
               subject to all restrictions, terms and conditions applicable
               to the Deferred Shares prior to its transfer, except that the
               Deferred Shares will not be further transferable by the
               transferee other than by will or by the laws of descent and
               distribution.

                        (4) Unless otherwise determined by the Committee at
               or after the time of granting any Deferred Shares, if a
               participant's employment by the Company or any Subsidiary or

                                 Page 12
<PAGE>

               Affiliate terminates by reason of death, any Deferred Shares
               held by such participant shall thereafter vest or any
               restriction shall lapse.

                        (5) Unless otherwise determined by the Committee at
               or after the time of granting any Deferred Shares, if a
               participant's employment by the Company or any Subsidiary or
               Affiliate terminates by reason of Disability, any Deferred
               Shares held by such participant shall thereafter vest or any
               restriction lapse.

                        (6) Unless otherwise determined by the Committee at
               or after the time of granting any Deferred Share Award, if a
               participant's employment by the Company or any Subsidiary or
               Affiliate terminates for any reason other than death or
               Disability, all Deferred Shares held by such participant which
               are unvested or subject to restriction shall thereupon be
               forfeited.

                        (7) Based on service, performance or such other
               factors or criteria as the Committee may determine, the
               Committee may, at or after grant, accelerate the vesting of
               all or any part of any Deferred Share Award or waive a portion
               of the Deferral Period for all or any part of such Award,
               subject in all cases to the Minimum Deferral Period
               requirement.

                        (8) A participant may elect to further defer receipt
               of a Deferred Share Award (or an installment of an Award) for
               a specified period or until a specified event (the "Elective
               Deferral Period"), subject in each case to the Committee's
               approval and the terms of this Section 8 and such other terms
               as are determined by the Committee, all in its sole
               discretion. Subject to any exceptions approved by the
               Committee, such election must be made at least 12 months prior
               to completion of the Deferral Period for such Deferred Share
               Award (or such installment).

                        (9) Each such Award shall be confirmed by, and
               subject to the terms of, a Deferred Share Award agreement
               evidencing the Award in the form approved from time to time by
               the Committee.

               (c) Minimum Value Provisions. In order to better ensure that
               Award payments actually reflect the performance of the Company
               and service of the participant, the Committee may provide, in
               its sole discretion, for a tandem performance-based or other
               Award designed to guarantee a minimum value, payable in cash
               or Shares to the recipient of a Deferred Share Award, subject
               to such performance, future service, deferral and other terms
               and conditions as may be specified by the Committee.

SECTION 9.     SHARE PURCHASE RIGHTS.

               (a) Grant. Share Purchase Rights may be granted alone, in
               addition to or in tandem with other Awards granted under the
               Plan or cash awards made outside the Plan. The Committee shall
               determine the individuals to whom, and the time or times at
               which, grants of Share Purchase Rights will be made, the
               number of Shares which may be purchased pursuant to the Share
               Purchase Rights, and the other terms and conditions of the
               Share Purchase Rights in addition to those set forth in
               Section 9(b). The Shares subject to the Share Purchase Rights
               may be purchased, as determined by the Committee at the time
               of grant:

                        (1) at the Fair Market Value of such Shares on the
               date of grant; or

                                    Page 13
<PAGE>

                        (2) at 85% of the Fair Market Value of such Shares on
               the date of grant if the grant of Share Purchase Rights is
               made in lieu of cash compensation.

               Subject to Section 9(b) hereof, the Committee may also impose
such deferral, forfeiture or other terms and conditions as it shall determine,
in its sole discretion, on such Share Purchase Rights or the exercise thereof.

               Each Share Purchase Right Award shall be confirmed by, and be
               subject to the terms of, a Share Purchase Rights Agreement
               which shall be in form approved by the Committee.

               (b) Terms and Conditions. Share Purchase Rights may contain
               such additional terms and conditions not inconsistent with the
               terms of the Plan as the Committee shall deem desirable, and
               shall generally be exercisable for such period as shall be
               determined by the Committee. However, Share Purchase Rights
               granted to Section 16 Participants shall not become
               exercisable earlier than six months and one day after the
               grant date. Share Purchase Rights shall not be transferable by
               a participant other than by will or by the laws of descent and
               distribution.

SECTION 10.    OTHER SHARE-BASED AWARDS.

               (a) Grant. Other Awards of Shares and other Awards that are
               valued, in whole or in part, by reference to, or are otherwise
               based on, Shares, including, without limitation, performance
               shares, convertible preferred shares, convertible debentures,
               exchangeable securities, dividend equivalent rights and Share
               Awards or options valued by reference to Book Value or
               Subsidiary performance, may be granted alone, in addition to
               or in tandem with other Awards granted under the Plan or cash
               awards made outside the Plan.

               At the time the Shares or Other Share-Based Awards are
               granted, the Committee shall determine the individuals to whom
               and the time or times at which such Shares or Other
               Share-Based Awards shall be awarded, the number of Shares to
               be used in computing an Award or which are to be awarded
               pursuant to such Awards, the consideration, if any, to be paid
               for such Shares or Other Share-Based Awards, and all other
               terms and conditions of the Awards in addition to those set
               forth in Section 10(b). The Committee will also have the
               right, at its sole discretion, to settle such Awards in
               Shares, Restricted Shares or cash in an amount equal to then
               value of the Shares or Other Share-Based Awards.

               The provisions of Other Share-Based Awards need not be the
same with respect to each participant.

               (b) Terms and Conditions. Other Share-Based Awards shall be
               subject to the following terms and conditions and shall
               contain such additional terms and conditions, not inconsistent
               with the terms of the Plan, as the Committee shall deem
               desirable:

                        (1) Subject to the provisions of this Plan and the
               Award agreement referred to in Section 10(b)(5) below, Shares
               awarded or subject to Awards made under this Section 10 may
               not be sold, assigned, transferred, pledged or otherwise
               encumbered prior to the date on which the Shares are issued,
               or, if later, the date on which any applicable restriction,
               performance, holding or deferral period or requirement is
               satisfied or lapses. All Shares or Other Share-Based Awards
               granted under this Section 10 shall be subject to a minimum

                                 Page 14
<PAGE>

               holding period (including any applicable restriction,
               performance and/or deferral periods) of six months and one day
               ("Minimum Holding Period").

                        (2) Subject to the provisions of this Plan and the
               Award agreement and unless otherwise determined by the
               Committee at the time of grant, the recipient of an Other
               Share-Based Award shall be entitled to receive, currently or
               on a deferred basis, interest or dividends or interest or
               dividend equivalents with respect to the number of Shares
               covered by the Award, as determined at the time of the Award
               by the Committee, in its sole discretion, and the Committee
               may provide that such amounts (if any) shall be deemed to have
               been reinvested in additional Shares or otherwise reinvested.

                        (3) Subject to the Minimum Holding Period, any Other
               Share-Based Award and any Shares covered by any such Award
               shall vest or be forfeited to the extent, at the times and
               subject to the conditions, if any, provided in the Award
               agreement, as determined by the Committee in its sole
               discretion.

                        (4) In the event of the participant's Disability or
               death, or in cases of special circumstances, the Committee
               may, in its sole discretion, waive, in whole or in part, any
               or all of the remaining limitations imposed hereunder or under
               any related Award agreement (if any) with respect to any part
               or all of any Award under this Section 10, provided that the
               Minimum Holding Period requirement may not be waived, except
               in case of a participant's death.

                        (5) Each Award shall be confirmed by, and subject to
               the terms of, an agreement or other instrument evidencing the
               Award in the form approved from time to time by the Committee,
               the Company and the participant.

                        (6) Shares (including securities convertible into
               Shares) issued on a bonus basis under this Section 10 shall be
               issued for no cash consideration. Shares (including securities
               convertible into Shares) purchased pursuant to a purchase
               right awarded under this Section 10 shall bear a price of at
               least 85% of the Fair Market Value of the Shares on the date
               of grant. The purchase price of such Shares, and of any Other
               Share-Based Award granted hereunder, or the formula by which
               such price is to be determined, shall be fixed by the
               Committee at the time of grant.

                        (7) In the event that any "derivative security," as
               defined in Rule 16a-1(c) (or any successor thereto)
               promulgated by the Securities and Exchange Commission under
               Section 16 of the Exchange Act, is awarded pursuant to this
               Section 10 to any Section 16 Participant, such derivative
               security shall not be transferable other than by will or by
               the laws of descent and distribution.

               (c) Dividend Equivalent Rights. A Dividend Equivalent Right is
               an Award entitling the recipient to receive credits based on
               cash distributions that would have been paid on the Shares
               specified in the Dividend Equivalent Right (or other award to
               which it relates) if such Shares had been issued to and held
               by the recipient. A Dividend Equivalent Right may be granted
               hereunder to any participant as a component of another Award
               or as a freestanding award.

                        (1) Terms And Conditions. In addition to the terms
               and conditions set forth in Section 10(b), Dividend Equivalent
               Rights shall be subject to the following additional terms and
               conditions. Dividend Equivalents credited to the holder of a
               Dividend Equivalent Right

                                 Page 15
<PAGE>

               may be paid currently or may be deemed to be reinvested in
               additional Shares, which may thereafter accrue additional
               equivalents. Any such reinvestment shall be at Fair Market
               Value on the date of reinvestment. Dividend Equivalent Rights
               may be settled in cash or Shares or a combination thereof, in
               a single installment or installments, all determined in the
               sole discretion of the Committee. A Dividend Equivalent Right
               granted as a component of another Award may provide that such
               Dividend Equivalent Right shall be settled upon exercise,
               settlement, or payment of, or lapse of restrictions on, such
               other award, and that such Dividend Equivalent Right shall
               expire or be forfeited or annulled under the same conditions
               as such other award. A Dividend Equivalent Right granted as a
               component of another Award may also contain terms and
               conditions different from such other Award.

                        (2) Interest Equivalents. Any Award under this Plan
               that is settled in whole or in part in cash on a deferred
               basis may provide in the Award Agreement for interest
               equivalents to be credited with respect to such cash payment.
               Interest equivalents may be compounded and shall be paid upon
               such terms and conditions as may be specified by the grant.

                        (3) Termination of Employment. Except as may
               otherwise be provided by the Committee either in the Award
               Agreement or in writing after the Award Agreement is issued, a
               participant's rights in all Dividend Equivalent Rights or
               interest equivalents (other than any accrued but unpaid
               Dividend Equivalent Rights or interest equivalents) shall
               automatically terminate upon the date that a participant's
               employment with the Company or any Subsidiary or Affiliate
               terminates for any reason other than death or Disability. Any
               accrued but unpaid Dividend Equivalent Rights or interest
               equivalents shall be paid by the Company within three months
               after the termination of the participant's employment with the
               Company or any Subsidiary or Affiliate.

SECTION 11.    FORM AND TIMING OF PAYMENT UNDER AWARDS; DEFERRALS.

               Subject to the terms of the Plan and any applicable Award
Agreement, payments to be made by the Company, a Subsidiary or Affiliate upon
the exercise of an Option or other Award or settlement of an Award may be made
in such forms as the Committee shall determine, including, without limitation,
cash, Shares, other Awards or other property, and may be made in a single
payment or transfer, in installments, or on a deferred basis. The settlement of
any Award may be accelerated, and cash paid in lieu of Shares in connection with
such settlement, in the discretion of the Committee or upon occurrence of one or
more specified events. Installment or deferred payments may be required by the
Committee or permitted at the election of the participant on terms and
conditions established by the Committee. Payments may include, without
limitation, provisions for the payment or crediting of a reasonable interest
rate on installment or deferred payments or the grant or crediting of Dividend
Equivalents or other amounts in respect of installment or deferred payments
denominated in Shares.

SECTION 12.    CHANGE IN CONTROL PROVISION.

               (a) Impact of Event. In the event of: (i) a "Change in
               Control" as defined in Section 12(b) or (ii) a "Potential
               Change in Control" as defined in Section 12(c), the following
               acceleration and valuation provisions shall apply:

                        (1) Any Stock Options awarded under the Plan not
               previously exercisable and vested shall become fully
               exercisable and vested;

                                 Page 16
<PAGE>

                        (2) Any Share Appreciation Rights shall become
               immediately exercisable;

                        (3) The restrictions applicable to any Restricted
               Share Awards, Deferred Shares, Share Purchase Rights and Other
               Share-Based Awards shall lapse and such Shares and Awards
               shall be deemed fully vested; and

                        (4) The value of all outstanding Awards, in each case
               to the extent vested, shall, unless otherwise determined by
               the Committee in its sole discretion at or after grant but
               prior to any Change in Control or Potential Change in Control,
               be cashed out on the basis of the "Change in Control Price" as
               defined in Section 12(d) as of the date such Change in Control
               or such Potential Change in Control is determined to have
               occurred.

         Notwithstanding the provisions of Sections 12(a)(l) through (3), the
         acceleration of exercisability or lapse of restrictions with respect to
         Awards granted to any Section 16 Participant which have been held by
         such participant for less than six months and one day as of the date
         that such Change in Control or Potential Change in Control is
         determined to have occurred must be approved by the Committee or the
         Board.

               (b) Definition of Change in Control. For purposes of Section
               12(a), a "Change in Control" means the occurrence of any of
               the following: (i) the Board or shareholders of the Company
               approve a consolidation or merger in which the Company is not
               the surviving corporation, the sale of substantially all of
               the assets of the Company, or the liquidation or dissolution
               of the Company; (ii) any person or other entity (other than
               the Company or a Subsidiary or any Company employee benefit
               plan (including any trustee of any such plan acting in its
               capacity as trustee)) purchases any Shares (or securities
               convertible into Shares) pursuant to a tender or exchange
               offer without the prior consent of the Board of Directors, or
               becomes the beneficial owner of securities of the Company
               representing 20% or more of the voting power of the Company's
               outstanding securities; or (iii) during any two-year period,
               individuals who at the beginning of such period constitute the
               entire Board of Directors cease to constitute a majority of
               the Board of Directors, unless the election or the nomination
               for election of each new director is approved by at least
               two-thirds of the directors then still in office who were
               directors at the beginning of that period.

               (c) Definition of Potential Change in Control. For purposes of
               Section 12(a), a "Potential Change in Control" means the
               happening of any one of the following:

                        (1) The approval by the shareholders of the Company
               of an agreement by the Company, the consummation of which
               would result in a Change in Control of the Company as defined
               in Section 12(b); or

                        (2) The acquisition of beneficial ownership, directly
               or indirectly, by any entity, person or group (other than the
               Company or a Subsidiary or any Company employee benefit plan
               (including any trustee of any such plan acting in its capacity
               as trustee)) of securities of the Company representing 5% or
               more of the combined voting power of the Company's outstanding
               securities and the adoption by the Board of a resolution to
               the effect that a Potential Change in Control of the Company
               has occurred for purposes of this Plan.

               (d) Change in Control Price. For purposes of this Section 12,
               "Change in Control Price" means the highest price per share
               paid in any transaction reported on the New York Stock
               Exchange Composite Index (or, if the Shares are not then
               traded on the New York Stock Exchange, the highest price paid
               as reported for any national exchange on which the Shares

                                 Page 17
<PAGE>

               are then traded) or paid or offered in any bona fide
               transaction related to a Change in Control or Potential Change
               in Control of the Company, at any time during the 60-day
               period immediately preceding the occurrence of the Change in
               Control (or, when applicable, the occurrence of the Potential
               Change in Control event), in each case as determined by the
               Committee.

SECTION 13.    AMENDMENTS AND TERMINATION.

               The Board may at any time, in its sole discretion, amend,
alter or discontinue the Plan, but no such amendment, alteration or
discontinuation shall be made that would impair the rights of a participant
under an Award theretofore granted, without the participant's consent. The
Company shall submit to the shareholders of the Company, for their approval, any
amendments to the Plan required pursuant to Section 162(m) of the Code or that
would materially increase the benefits accruing to participants under the Plan
or the number of Shares subject to the Plan so long as such approval is required
by law or regulation (including any applicable regulation of an exchange on
which the Shares are traded).

               The Committee may at any time, in its sole discretion, amend
the terms of any Award, but no such amendment shall be made that would impair
the rights of a participant under an Award theretofore granted, without the
participant's consent; nor shall any such amendment be made that would make the
applicable exemptions provided by Rule 16b-3 under the Exchange Act unavailable
to any Section 16 Participant holding the Award without the participant's
consent.

               Subject to the above provisions, the Board shall have all
necessary authority to amend the Plan, clarify any provision or to take into
account changes in applicable securities and tax laws and accounting rules, as
well as other developments.

SECTION 14.    UNFUNDED STATUS OF PLAN.

               The Plan is intended to constitute an "unfunded" plan for
incentive and deferred compensation. With respect to any payment not yet made to
a participant by the Company, nothing contained herein shall give that
participant any rights that are greater than those of a general creditor of the
Company.

SECTION 15.    GENERAL PROVISIONS.

               (a) The Committee may require each participant acquiring
               Shares pursuant to an Award under the Plan to represent to and
               agree with the Company in writing that the participant is
               acquiring the Shares without a view to distribution thereof.
               The certificates for any such Shares may include any legend
               which the Committee deems appropriate to reflect any
               restrictions on transfer.

               All Shares or other securities delivered under the Plan shall
               be subject to such stop-transfer orders and other restrictions
               as the Committee may deem advisable under the rules,
               regulations and other requirements of the Securities and
               Exchange Commission, any stock exchange upon which the Shares
               are then listed, and any applicable federal or state
               securities laws, and the Committee may cause a legend or
               legends to be put on any certificate for any such Shares to
               make appropriate reference to those restrictions.

                                 Page 18
<PAGE>

               (b) Nothing contained in this Plan shall prevent the Board
               from adopting other or additional compensation arrangements,
               subject to shareholder approval if such approval is required,
               and such arrangements may be either generally applicable or
               applicable only in specific cases.

               (c) Neither the adoption of the Plan, nor its operation, nor
               any document describing, implementing or referring to the
               Plan, or any part thereof, shall confer upon any participant
               under the Plan any right to continue in the employ, or as a
               director, of the Company or any Subsidiary or Affiliate, or
               shall in any way affect the right and power of the Company or
               any Subsidiary or Affiliate to terminate the employment, or
               service as a director, of any participant under the Plan at
               any time with or without assigning a reason therefor, to the
               same extent as the Company or any Subsidiary or Affiliate
               might have done if the Plan had not been adopted.

               (d) For purposes of this Plan, a transfer of a participant
               between the Company and any Subsidiary or Affiliate shall not
               be deemed a termination of employment.

               (e) No later than the date as of which an amount first becomes
               includable in the gross income of the participant for federal
               income tax purposes with respect to any Award under the Plan,
               the participant shall pay to the Company, or make arrangements
               satisfactory to the Committee regarding the payment of, any
               federal, state or local taxes or other items of any kind
               required by law to be withheld with respect to that amount.
               Subject to the following sentence, unless otherwise determined
               by the Committee, withholding obligations may be settled with
               Shares, including unrestricted Shares previously owned by the
               participant or Shares that are part of the Award that gives
               rise to the withholding requirement. Notwithstanding the
               foregoing, any right by a Section 16 Participant to elect to
               settle any tax withholding obligation with Shares that are
               part of an Award must be set forth in the agreement evidencing
               that Award or be approved by the Committee in its sole
               discretion. The obligations of the Company under the Plan
               shall be conditional on those payments or arrangements and the
               Company and its Subsidiaries and Affiliates shall, to the
               extent permitted by law, have the right to deduct any such
               taxes from any payment of any kind otherwise payable to the
               participant.

               (f) The actual or deemed reinvestment of dividends or dividend
               equivalents in additional Restricted Shares (or in Deferred
               Shares or other types of Awards) at the time of any dividend
               payment shall be permissible only if sufficient Shares are
               available under Section 3 for reinvestment (taking into
               account then outstanding Stock Options).

               (g) The Plan, all Awards made and actions taken thereunder and
               any agreements relating thereto shall be governed by and
               construed in accordance with the laws of the State of Ohio.

               (h) All agreements entered into with participants pursuant to
               the Plan shall be subject to the Plan.

               (i) The provisions of Awards need not be the same with respect
               to each participant.

SECTION 16.    SHAREHOLDER APPROVAL; EFFECTIVE DATE OF PLAN.

               The Plan was adopted by the Board on February 28, 2002 and is
subject to approval by a majority of the holders of the Company's outstanding
Shares, in accordance with applicable law. If the Plan is not so approved within
twelve (12) months after the date the Plan is adopted by the Board of Directors,
the

                                    Page 19
<PAGE>

Plan and any Grants made hereunder shall be null and void. However, if the
Plan is so approved, no further shareholder approval shall be required with
respect to the granting of Awards pursuant to the Plan.

SECTION 17.    TERM OF PLAN.

               No Award shall be granted pursuant to the Plan on or after
February 28, 2012, but Awards granted prior to that date may extend beyond that
date.

                                    Page 20<PAGE>
                                                                     Exhibit 4.7
                              TERMINATION AGREEMENT

         THIS TERMINATION AGREEMENT is entered into this 15th day of May, 2002,
by and among Ceres Group, Inc., a Delaware corporation (the "Company"), and the
persons and entities set forth on the signature page attached hereto.

         WHEREAS, the Company and certain individuals and entities are parties
to an Amended and Restated Voting Agreement, dated July 25, 2000, and any
amendments thereto (the "Voting Agreement"), pursuant to which the parties
regulated certain aspects of their relationship as holders of common stock, par
value $0.001 per share, of the Company;

         WHEREAS, the Company and the parties listed on the signature parties
hereto representing the Required Holders (as defined in the Voting Agreement)
agreed to terminate the Voting Agreement if the stockholders of the Company
voted, at the annual meeting on May 15, 2002, to amend the Company's bylaws to
provide for a staggered Board of Directors, which would divide the Company's
Board into three classes, each with three directors, serving staggered terms of
office of three years (the "Staggered Board Amendment");

         Whereas, the Company's stockholders approved the Staggered Board
Amendment at the May 15, 2002 Annual Meeting

         NOW, THEREFORE, in consideration of the agreements and covenants herein
contained and for other good and valuable consideration, the parties hereto
agree as follows:

         1. Pursuant to Section 4.2 of the Voting Agreement, the Company and the
Required Holders hereby terminate the Voting Agreement effective May 15, 2002
and agree that the Voting Agreement shall be of no further force or effect.

         2. The Company agrees that, upon written request by any of the parties
to the Voting Agreement, it shall inform the Company's transfer agent that the
legend applicable to the Voting Agreement may be removed from any applicable
stock certificate held by such party.

         3. All questions concerning the construction, validity and
interpretation of this Termination Agreement, and the performance of the
obligations imposed by this Agreement, shall be governed by the laws of the
State of Ohio applicable to contracts made and wholly performed in that state.

<PAGE>

IN WITNESS WHEREOF, the parties hereby execute this Termination Agreement as of
the date set forth above.

                                     CERES GROUP, INC.

                                     /s/ Kathleen L. Mesel
                                     ---------------------------------------
                                     By:  Kathleen L. Mesel
                                     Its:  Corporate Secretary

<PAGE>

                            TERMINATION AGREEMENT TO
                   THE AMENDED AND RESTATED VOTING AGREEMENT
                        CONSENT OF THE REQUIRED HOLDERS

                  INTERNATIONAL MANAGED CARE
                  (BERMUDA), L.P.

                  By: Insurance Partner Offshore (Bermuda), L.P.,
                         its general partner

                          By: Insurance GenPar (Bermuda), L.P.,
                                 its general partner

                                   By: Insurance GenPar (Bermuda)
                                         MGP, L.P., its general partner

                                         By: Insurance GenPar (Bermuda)
                                                MGP, Ltd., its general Partner

                                         /s/ Bradley Cooper
                                         -------------------------------------
                                         By:  Bradley Cooper
                                         Title:  SVP

                  INTERNATIONAL MANAGED CARE, LLC

                  By: Insurance Partner, L.P.,
                         its managing member

                          By: Insurance GenPar, L.P.,
                                 its general partner

                                   By: Insurance GenPar MGP, L.P.,
                                          its general partner

                                            By: Insurance GenPar MGP, Inc.,
                                                   its general Partner

                                            /s/ Bradley Cooper
                                            -----------------------------------
                                            By:  Bradley Cooper
                                            Title:  SVP

                          /S/ Peter W. Nauert
                          -----------------------------------------------------
                          PETER W. NAUERT
<PAGE>

                 CASTLE CREEK CAPITAL PARTNERS
                 FUND IIA, LP

                 By: Castle Creek Capital, LLC, its general partner

                 /s/ William J. Ruh
                 -------------------------------------------------------------
                 By:  William J. Ruh
                 Title:  Executive Vice President

                 CASTLE CREEK CAPITAL PARTNERS
                 FUND IIB, LP

                 By: Castle Creek Capital, LLC, its general partner

                 /s/ William J. Ruh
                 -------------------------------------------------------------
                 By:  William J. Ruh
                 Title:  Executive Vice President

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