Document:

Exhibit 4.1

[LOGO]

 THE ISLAND HOLDING COMPANY, INC.

 2001 STOCK INCENTIVE PLAN

 (As Adopted April 10, 2001)

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                        THE ISLAND HOLDING COMPANY, INC.
                            2001 STOCK INCENTIVE PLAN

      1.    Purpose.

      The purpose of this Plan is to strengthen The Island Holding Company,
Inc., a Delaware corporation (the "Company"), by providing an incentive to its
employees, officers and directors and thereby encouraging them to devote their
abilities and industry to the success of the Company's business enterprise. It
is intended that this purpose be achieved by extending to employees (including
future employees who have received a formal written offer of employment),
officers and directors of the Company and its Subsidiaries an added long-term
incentive for high levels of performance and unusual efforts through the grant
of Incentive Stock Options and Nonqualified Stock Options (as each term is
herein defined).

      2.    Definitions.

            For purposes of the Plan:

            2.1 "Agreement" means the written agreement between the Company and
an Optionee evidencing the grant by the Company of an Option and setting forth
the terms and conditions thereof.

            2.2   "Board" means the Board of Directors of the Company.

            2.3   "Cause" means:

                  (a) in the case of an Optionee whose employment with the
Company or a Subsidiary is subject to the terms of an employment agreement
between such Optionee and the Company or Subsidiary, which employment agreement
includes a definition of "Cause", the term "Cause" as used in this Plan or any
Agreement shall have the meaning set forth in such employment agreement during
the period that such employment agreement remains in effect; and

                  (b) in all other cases, (i) the commission by an Optionee of
any act or omission that would constitute a crime under federal, state or
equivalent foreign law, (ii) the commission by an Optionee of any act of moral
turpitude, (iii) fraud, dishonesty or other acts or omissions by an Optionee
that result in a breach of any fiduciary or other material duty to the Company
and/or the Subsidiaries or (iv) continued alcohol or other substance abuse that
renders an Optionee incapable of performing his or her material duties to the
satisfaction of the Company and/or the Subsidiaries.

            2.4 "Change in Capitalization" means any increase or reduction in
the number of Shares, or any change (including, but not limited to, in the case
of a spin-off, dividend or other distribution in respect of Shares, a change in
value) in the Shares or exchange of Shares for a different number or kind of
shares or other securities of the Company or another corporation, by reason of a
reclassification, recapitalization, merger, consolidation, reorganization,
spin-off, split-up, issuance of warrants or rights or debentures, stock
dividend, stock split or reverse stock split, cash dividend, property dividend,
combination or exchange of shares, repurchase of shares, change in corporate
structure or otherwise.

            2.5   A "Change in Control" shall mean the occurrence of any of
the following:

                  (a) An acquisition (other than directly from Datek or the
Company) of any Voting Securities of the Company by any "Person" (as the term
person is used for purposes of Section 13(d) or 14(d) of the Exchange Act),
immediately after which such Person has "Beneficial Ownership" (within the
meaning of Rule 13d-3 promulgated under the Exchange Act) of Voting Securities
representing fifty percent (50%) or more of the then outstanding combined voting
power of the Company's then outstanding Voting Securities; provided, however, in
determining whether a Change in Control has occurred pursuant to this Section
2.5(a), Voting Securities which are acquired in a "Non-Control Acquisition" (as
hereinafter defined) shall not constitute any direct or indirect acquisition
which would cause a Change in Control. A "Non-Control Acquisition" shall mean an
acquisition by (i) an employee benefit plan (or a trust forming a part thereof)
maintained by (A) the Company or (B) any corporation or other Person of which a
majority of its voting power or its voting equity securities or equity interest
is owned, directly or indirectly, by the Company (for purposes of this
definition, a "Related Entity"), (ii) Datek, the Company or any Related Entity,
or (iii) any Person in connection with a "Non-Control Transaction" (as
hereinafter defined);

                  (b)   The consummation of:

                        (i)   A merger, consolidation or reorganization with
or into the Company or in which securities of the Company are issued (a
"Merger"), unless such Merger is a "Non-Control Transaction." A "Non-Control
Transaction" shall mean a Merger where:

                              (A)   the stockholders of the Company or Datek,
immediately before such Merger own directly or indirectly immediately following
such Merger at least fifty percent (50%) of the combined voting power of the
outstanding Voting Securities of (x) the corporation or other entity surviving
or resulting from such Merger (the "Surviving Corporation") if fifty percent
(50%) or more of the combined voting power of the then outstanding Voting
Securities of the Surviving Corporation is not Beneficially Owned, directly or
indirectly by another Person (a "Parent Corporation"), or (y) if there are one
or more Parent Corporations, the ultimate Parent Corporation; or

                              (B)   in which the Company is merged with or
into Datek or any subsidiary of Datek.

                        (ii)  A complete liquidation or dissolution of the
                  Company; or

                        (iii) The sale or other disposition of all or
substantially all of the assets of the Company to any Person (other than a
transfer to Datek or a Related Entity or under conditions that would constitute
a Non-Control Transaction with the disposition of assets being regarded as a
Merger for this purpose or the distribution to the Company's stockholders of the
stock of a Related Entity or any other assets).

            Notwithstanding the foregoing, a Change in Control shall not be
deemed to occur solely because any Person (the "Subject Person") acquired
Beneficial Ownership of more than the permitted amount of the then outstanding
Voting Securities as a result of the acquisition of Voting Securities by the
Company which, by reducing the number of Voting Securities then outstanding,
increases the proportional number of Voting Securities Beneficially Owned by the
Subject Persons, provided that if a Change in Control would occur (but for the
operation of this sentence) as a result of the acquisition of Voting Securities
by the Company, and after such acquisition by the Company, the Subject Person
becomes the Beneficial Owner of any additional Voting Securities which increases
the percentage of the then outstanding Voting Securities Beneficially Owned by
the Subject Person, then a Change in Control shall occur.

            2.6   "Code" means the Internal Revenue Code of 1986, as amended.

            2.7 "Committee" means a committee, as described in Section 3.1,
appointed by the Board from time to time to administer the Plan and to perform
the functions set forth herein.

            2.8   "Company" means The Island Holding Company, Inc.

            2.9   "Datek" means Datek Online Holdings Corp., a Delaware
corporation.

            2.10  "Director" means a director of the Company.

            2.11  "Disability" means:

                  (a) in the case of an Optionee whose employment with the
Company or a Subsidiary is subject to the terms of an employment agreement
between such Optionee and the Company or Subsidiary, which employment agreement
includes a definition of "Disability", the term "Disability" as used in this
Plan or any Agreement shall have the meaning set forth in such employment
agreement during the period that such employment agreement remains in effect; or

                  (b)   the term "Disability" as used in the Company's
long-term disability plan, if any; or

                  (c) in all other cases, the term "Disability" as used in this
Plan or any Agreement shall mean a physical or mental infirmity which impairs
the Optionee's ability to perform substantially his or her duties for a period
of one hundred eighty (180) consecutive days.

            2.12 "Eligible Individual" means any director, officer or employee
of the Company or a Subsidiary who is designated by the Committee as eligible to
receive Options subject to the conditions set forth herein.

            2.13  "Exchange Act" means the Securities Exchange Act of 1934,
as amended.

            2.14 "Exercise Event" means the first to occur of (x) an Initial
Public Offering of the Company and (y) a Change in Control of the Company (i) in
which a majority of the Shares outstanding immediately before such Change in
Control, are acquired for, or converted or exchanged into, cash, cash
equivalents or marketable securities or (ii) after giving effect to which either
the Company or the entity resulting from or surviving such Change in Control, or
any Parent of them, is subject to the reporting requirements under Section 13 of
the Exchange Act with respect to any class of equity securities.

            2.15 "Fair Market Value" on any date means the closing sales prices
of the Shares on such date on the principal national securities exchange on
which such Shares are listed or admitted to trading, or, if such Shares are not
so listed or admitted to trading, the average of the per Share closing bid price
and per Share closing asked price on such date as quoted on the National
Association of Securities Dealers Automated Quotation System or such other
market in which such prices are regularly quoted, or, if there have been no
published bid or asked quotations with respect to Shares on such date, the Fair
Market Value shall be the value established by the Committee in good faith and,
in the case of an Incentive Stock Option, in accordance with Section 422 of the
Code.

            2.16 "Incentive Stock Option" means an Option satisfying the
requirements of Section 422 of the Code and designated by the Committee as an
Incentive Stock Option.

            2.17 "Initial Public Offering" means the consummation of the first
widely distributed underwritten public offering of Shares pursuant to a
registration statement (other than a Form S-8 or successor forms) filed with,
and declared effective by, the Securities and Exchange Commission.

            2.18 "Nonemployee Director" means a director of the Company who is a
"nonemployee director" within the meaning of Rule 16b-3 promulgated under the
Exchange Act.

            2.19 "Nonqualified Stock Option" means an Option which is not an
Incentive Stock Option.

            2.20 "Option" means a Nonqualified Stock Option, an Incentive Stock
Option, or any or all of them.

            2.21 "Optionee" means a person to whom an Option has been granted
under the Plan, for so long as such person continues to hold such Option.

            2.22 "Parent" means any corporation which is a parent corporation
(within the meaning of Section 424(e) of the Code) with respect to the Company.

            2.23 "Performance-Based Compensation" means any Option that is
intended to constitute "performance based compensation" within the meaning of
Section 162(m)(4)(C) of the Code and the regulations promulgated thereunder or
with respect to which it is intended that the deduction limitation contained in
Section 162(m) of the Code might not apply.

            2.24  "Plan" means The Island Holding Company, Inc. 2001 Stock
Incentive Plan, as amended and restated from time to time.

            2.25 "Plan Effective Date" means April 10, 2001, the date as of
which the Plan was adopted and became effective.

            2.26 "Pooling Transaction" means an acquisition of the Company in a
transaction which is intended to be treated as a "pooling of interests" under
generally accepted accounting principles.

            2.27  "Securities Act" means the Securities Act of 1933, as
amended.

            2.28 "Shares" means the shares of Class A-1 Common Stock, par value
$0.001 per share, of the Company, and any other securities into which such
shares are changed or for which such shares are exchanged.

            2.29 "Subsidiary" means (i) except as provided in subsection (ii)
below, any corporation which is a subsidiary corporation within the meaning of
Section 424(f) of the Code with respect to the Company, and (ii) in relation to
the eligibility to receive Options other than Incentive Stock Options and
continued employment for purposes of Options (unless the Committee determines
otherwise), any entity, whether or not incorporated, in which the Company
directly or indirectly owns 50% or more of the outstanding equity or other
ownership interests.

            2.30 "Successor Corporation" means a corporation, or a parent or
subsidiary thereof within the meaning of Section 424(a) of the Code, which
issues or assumes a stock option in a transaction to which Section 424(a) of the
Code applies.

            2.31 "Ten-Percent Stockholder" means an Eligible Individual, who, at
the time an Incentive Stock Option is to be granted to him or her, owns (within
the meaning of Section 422(b)(6) of the Code) stock possessing more than ten
percent (10%) of the total combined voting power of all classes of stock of the
Company, or of a Parent or a Subsidiary.

            2.32 "Transition Period" means the period beginning with an Initial
Public Offering and ending as of the earlier of (i) the date of the first annual
meeting of shareholders of the Company at which directors are to be elected that
occurs after the close of the third calendar year following the calendar year in
which the Initial Public Offering occurs or (ii) the expiration of the "reliance
period" under Treasury Regulation ss. 1.162-27(f)(2).

            2.33 "Voting Securities" means with respect to any entity, the
shares of equity securities of such entity, as required by the context,
generally allowed to vote in the election of the board of directors of such
entity.

      3.    Administration.

            3.1 The Plan shall be administered by the Committee, which shall
hold meetings at such times as may be necessary for the proper administration of
the Plan. The Committee shall keep minutes of its meetings. The Committee shall
be appointed by the Board in accordance with the charter and by-laws of the
Company and any agreements by and among the stockholders of the Company.

            3.2 No member of the Committee shall be liable for any action,
failure to act, determination or interpretation made in good faith with respect
to this Plan or any transaction hereunder. The Company hereby agrees to
indemnify each member of the Committee for all costs and expenses and, to the
extent permitted by applicable law, any liability incurred in connection with
defending against, responding to, negotiating for the settlement of or otherwise
dealing with any claim, cause of action or dispute of any kind arising in
connection with any actions in administering this Plan or in authorizing or
denying authorization to any transaction hereunder.

            3.3 Subject to the express terms and conditions set forth herein,
the Committee shall have the power from time to time to:

                  (a) select those Eligible Individuals to whom Options shall be
granted under the Plan and to determine the number of Shares and the particular
series of Shares (which shall be the Series A-1F Common Stock if no other
designation shall be made), in respect of which each Option is granted, the
terms and conditions (which need not be identical) of each such Option,
including the exercise price per Share, the vesting schedule and the duration of
each Option, and make any amendment or modification to any Option Agreement
consistent with the terms of the Plan;

                  (b) to construe and interpret the Plan and the Options granted
hereunder and to establish, amend and revoke rules and regulations for the
administration of the Plan, including, but not limited to, correcting any defect
or supplying any omission, or reconciling any inconsistency in the Plan or in
any Agreement, in the manner and to the extent it shall deem necessary or
advisable, including so that the Plan and the operation of the Plan complies
with Rule 16b-3 under the Exchange Act, the Code to the extent applicable and
other applicable law, and otherwise to make the Plan fully effective. All
decisions and determinations by the Committee in the exercise of this power
shall be final, binding and conclusive upon the Company, its Subsidiaries, the
Optionees, and all other persons having any interest therein;

                  (c) to determine the duration and purposes for leaves of
absence which may be granted to an Optionee on an individual basis without
constituting a termination of employment or service for purposes of the Plan;

                  (d)   to exercise its discretion with respect to the powers
and rights granted to it as set forth in the Plan; and

                  (e) generally, to exercise such powers and to perform such
acts as are deemed necessary or advisable to promote the best interests of the
Company with respect to the Plan.

      4.    Stock Subject to the Plan; Grant Limitations.

            4.1 The maximum number of Shares that may be made the subject of
Options granted under the Plan is 2,500,000 Shares. The Company shall reserve
for the purposes of the Plan, out of its authorized but unissued Shares or out
of Shares held in the Company's treasury, or partly out of each, such number of
Shares as shall be determined by the Board.

            4.2 Upon the granting of an Option, the number of Shares available
under Section 4.1 for the granting of further Options shall be reduced in
connection with the granting of an Option, by the number of Shares in respect of
which the Option is granted or denominated; provided, however, that if any
Option is exercised by tendering Shares, either actually or by attestation, to
the Company as full or partial payment of the exercise price, the maximum number
of Shares available under Section 4.1 shall be increased by the number of Shares
so tendered.

            4.3 Whenever any outstanding Option or portion thereof expires, is
cancelled, is settled in cash (including the settlement of tax withholding
obligations using Shares) or is otherwise terminated for any reason without
having been exercised or payment having been made in respect of the entire
Option, the Shares allocable to the expired, cancelled, settled or otherwise
terminated portion of the Option may again be the subject of Options granted
hereunder.

      5.    Option Grants for Eligible Individuals.

            5.1 Authority of Committee. Subject to the provisions of the Plan,
the Committee shall have full and final authority to select those Eligible
Individuals who will receive Options, and the terms and conditions of the grant
to such Eligible Individuals shall be set forth in an Agreement. Incentive Stock
Options may be granted only to Eligible Individuals who are employees of the
Company or any Subsidiary.

            5.2 Exercise Price. The purchase price or the manner in which the
exercise price is to be determined for Shares under each Option shall be
determined by the Committee and set forth in the Agreement; provided, however,
that the exercise price per Share under each Incentive Stock Option shall not be
less than 100% of the Fair Market Value of a Share on the date the Option is
granted (110% in the case of an Incentive Stock Option granted to a Ten-Percent
Stockholder).

            5.3 Maximum Duration. Except as otherwise determined by the
Committee at the time of the grant, Options granted hereunder shall have a term
of, and shall not be exercisable after the expiration of, ten (10) years from
the date it is granted (five (5) years in the case of an Incentive Stock Option
granted to a Ten-Percent Stockholder); provided, however, the Committee may
provide that an Option (other than an Incentive Stock Option) may, upon the
death of the Optionee prior to the expiration of the Option, be exercised for up
to one (1) year following the date of the Optionee's death even if such period
extends beyond ten (10) years from the date the Option is granted. The Committee
may, subsequent to the granting of any Option, extend the term thereof, but in
no event shall the term as so extended exceed the maximum term provided for in
the preceding sentence.

            5.4   Vesting; Exercisability.

                  (a) Except as otherwise determined by the Committee at the
time of the grant, each Option shall become vested with respect to twenty-five
percent (25%) of the total number of Shares covered by the Option on each of the
first four (4) anniversaries of the day before the date of the grant. The
Optionee must be in the employ or service of the Company on any scheduled date
of vesting, otherwise vesting will not occur. Any fractional number of Shares
resulting from the application of the foregoing percentages shall be rounded to
the next higher whole number of Shares. The Committee may accelerate the vesting
of any Option or portion thereof at any time.

                  (b) Except as otherwise determined by the Committee at the
time of grant, a vested Option may be exercised at any time on or after the
occurrence of an Exercise Event. Options that become vested after the occurrence
of an Exercise Event may be exercised at any time after they become vested. To
the extent not exercised, installments shall accumulate and be exercisable, in
whole or in part, at any time after becoming exercisable, but not later than the
date the Option expires.

            5.5 Deferred Delivery of Option Shares. The Committee may, in its
discretion permit Optionees to elect to defer the issuance of Shares upon the
exercise of one or more Nonqualified Stock Options granted pursuant to the Plan.
The terms and conditions of such deferral shall be determined at the time of the
grant of the Option or thereafter and shall be set forth in the Agreement
evidencing the Option.

            5.6 Limitations on Incentive Stock Options. To the extent that the
aggregate Fair Market Value (determined as of the date of the grant) of Shares
with respect to which Incentive Stock Options granted under the Plan and
"incentive stock options" (within the meaning of Section 422 of the Code)
granted under all other plans of the Company or its Subsidiaries (in either case
determined without regard to this Section 5.6) are exercisable by an Optionee
for the first time during any calendar year exceeds $100,000, such Incentive
Stock Options shall be treated as Nonqualified Stock Options. In applying the
limitation in the preceding sentence in the case of multiple Option grants,
Options which were intended to be Incentive Stock Options shall be treated as
Nonqualified Stock Options according to the order in which they were granted
such that the most recently granted Options are first treated as Nonqualified
Stock Options.

            5.7 Non-Transferability. No Option shall be transferable by the
Optionee except by will or by the laws of descent and distribution, and an
Option shall be exercisable during the lifetime of such Optionee only by the
Optionee or his or her guardian or legal representative. The terms of an Option
shall be final, binding and conclusive upon the beneficiaries, executors,
administrators, heirs and successors of the Optionee.

            5.8 Method of Exercise. The exercise of an Option shall be made only
by a written notice delivered in person or by mail to the Secretary of the
Company at the Company's principal executive office, specifying the number of
Shares to be exercised and, to the extent applicable, accompanied by payment
therefor and otherwise in accordance with the Agreement pursuant to which the
Option was granted; provided, however, that Options may not be exercised by an
Optionee for twelve months following a hardship distribution to the Optionee, to
the extent such exercise is prohibited under Treasury Regulation ss.
1.401(k)-1(d)(2)(iv)(B)(4). The exercise price for any Shares purchased pursuant
to the exercise of an Option shall be paid, in either of the following forms (or
any combination thereof): (a) cash or (b) the transfer, either actually or by
attestation, to the Company of Shares that have been held by the Optionee for at
least six (6) months (or such lesser period as may be permitted by the
Committee) prior to the exercise of the Option, such transfer to be upon such
terms and conditions as determined by the Committee or (c) a combination of cash
and the transfer of Shares; provided, however, that the Committee may determine
that the exercise price shall be paid only in cash. In addition, Options may be
exercised through a registered broker-dealer pursuant to such cashless exercise
procedures which are, from time to time, deemed acceptable by the Committee. Any
Shares transferred to the Company as payment of the exercise price under an
Option shall be valued at their Fair Market Value on the day preceding the date
of exercise of such Option. If requested by the Committee, the Optionee shall
deliver the Agreement evidencing the Option to the Secretary of the Company who
shall endorse thereon a notation of such exercise and return such Agreement to
the Optionee. No fractional Shares (or cash in lieu thereof) shall be issued
upon exercise of an Option and the number of Shares that may be purchased upon
exercise shall be rounded to the nearest number of whole Shares.

            5.9 Rights of Optionees. No Optionee shall be deemed for any purpose
to be the owner of any Shares subject to any Option unless and until (a) the
Option shall have been exercised pursuant to the terms thereof, (b) the Company
shall have issued and delivered Shares to the Optionee, and (c) the Optionee's
name shall have been entered as a stockholder of record on the books of the
Company. Thereupon, the Optionee shall have full voting, dividend and other
ownership rights with respect to such Shares, subject to such terms and
conditions as may be set forth in the applicable Agreement.

      6.    Effect of a Termination of Employment.

                  (a) Except as otherwise determined by the Committee at the
time of grant or at any time thereafter, in the event an Optionee leaves the
employ of the Company and the Subsidiaries or ceases to serve as a Nonemployee
Director of the Company for any reason other than his or her termination for
Cause, each Option previously granted to him or her that has not already been
exercised, expired or otherwise been cancelled, and that was vested and
exercisable on the date of termination of employment or service, shall terminate
thirty (30) days after the date of such Optionee's termination of employment or
service, or on the date of termination specified in the Option, as the case may
be, whichever comes first. Any Option that was not both vested and exercisable
on the date of termination shall expire on that date.

                  (b) If an Optionee's employment by the Company and the
Subsidiaries or service as a Nonemployee Director of the Company is terminated
for Cause, each Option previously granted to him or her that has not already
been exercised, expired or otherwise been cancelled shall terminate at the same
time the termination for Cause becomes effective.

      7.    Adjustment Upon Changes in Capitalization.

                  (a) In the event of a Change in Capitalization, the Committee
shall conclusively determine the appropriate adjustments, if any, to (i) the
maximum number and class of Shares or other stock or securities with respect to
which Options may be granted under the Plan and (ii) subject to Section 8, the
number and class of Shares or other stock or securities which are subject to
outstanding Options granted under the Plan and the exercise price therefor, if
applicable.

                  (b) Any such adjustment in the Shares or other stock or
securities (i) subject to outstanding Incentive Stock Options (including any
adjustments in the exercise price) shall be made in such manner as not to
constitute a modification as defined by Section 424(h)(3) of the Code and only
to the extent otherwise permitted by Sections 422 and 424 of the Code or (ii)
subject to outstanding Options that are intended to qualify as Performance-Based
Compensation shall be made in such a manner as not to adversely affect the
treatment of the Options as Performance-Based Compensation.

                  (c) If, by reason of a Change in Capitalization, an Optionee
shall be entitled to exercise an Option with respect to new, additional or
different shares of stock or securities of the Company or any other corporation,
such new, additional or different shares shall thereupon be subject to all of
the conditions, restrictions and performance criteria which were applicable to
the Shares subject to the Option, as the case may be, prior to such Change in
Capitalization.

      8.    Effect of Certain Transactions.

      Except as otherwise provided in an Agreement, in the event of (a) the
liquidation or dissolution of the Company or (b) a merger or consolidation of
the Company with or into any other corporation or other entity (a
"Transaction"), the Plan and the Options issued hereunder shall continue in
effect in accordance with their respective terms, except that following a
Transaction either (i) each outstanding Option shall be treated as provided for
in the agreement entered into in connection with the Transaction or (ii) if not
so provided in such agreement, each Optionee shall be entitled to receive in
respect of each Share subject to any outstanding Options, upon exercise of any
Option following the Transaction, the same number and kind of stock, securities,
cash, property or other consideration that each holder of a Share was entitled
to receive in the Transaction in respect of a Share; provided, however, that
such stock, securities, cash, property, or other consideration shall remain
subject to all of the conditions, restrictions and performance criteria which
were applicable to the Options prior to such Transaction.

      9.    Interpretation.

      Following the required registration of any equity security of the Company
pursuant to Section 12 of the Exchange Act:

                  (a) The Plan is intended to comply with Rule 16b-3 promulgated
under the Exchange Act and the Committee shall interpret and administer the
provisions of the Plan or any Agreement in a manner consistent therewith. Any
provisions inconsistent with such Rule shall be inoperative and shall not affect
the validity of the Plan.

                  (b) Unless otherwise expressly stated in the relevant
Agreement, each Option granted under the Plan is intended to be
Performance-Based Compensation. The Committee shall not be entitled to exercise
any discretion otherwise authorized hereunder with respect to such Options if
the ability to exercise such discretion or the exercise of such discretion
itself would cause the compensation attributable to such Options to fail to
qualify as Performance-Based Compensation.

      10.   Pooling Transactions.

      Notwithstanding anything contained in the Plan or any Agreement to the
contrary, in the event of a Change in Control which is also intended to
constitute a Pooling Transaction, the Committee shall take such actions, if any,
as are specifically recommended by an independent accounting firm retained by
the Company to the extent reasonably necessary in order to assure that the
Pooling Transaction will qualify as such, including but not limited to (a)
deferring the vesting, exercise, payment, settlement or lapsing of restrictions
with respect to any Option, (b) providing that the payment or settlement in
respect of any Option be made in the form of cash, Shares or securities of a
successor or acquirer of the Company, or a combination of the foregoing, and (c)
providing for the extension of the term of any Option to the extent necessary to
accommodate the foregoing, but not beyond the maximum term permitted for any
Option.

      11.   Market Standoff.

      In connection with any underwritten public offering by the Company of its
equity securities pursuant to an effective registration statement filed under
the Securities Act, including the Company's Initial Public Offering, a person
shall not sell, make any short sale of, loan, hypothecate, pledge, grant any
option for the purchase of, or otherwise dispose or transfer for value or
otherwise agree to engage in any of the foregoing transactions with respect to,
any Share issued pursuant to an Option granted under the Plan without the prior
written consent of the Company or its underwriters. Such limitations shall be in
effect for such period of time as may be requested by the Company or such
underwriters and agreed to by the Company's officers and directors with respect
to their Shares; provided, however, that in no event shall such period exceed
180 days. Holders of Shares issued pursuant to an Option granted under the Plan
shall be subject to the market standoff provisions of this paragraph only if the
officers and directors of the Company are also subject to similar arrangements.

      In the event of any stock split, stock dividend, recapitalization,
combination of Shares, exchange of Shares or other change affecting the
Company's outstanding Shares effected as a class without the Company's receipt
of consideration, then any new, substituted or additional securities distributed
with respect to the Shares acquired pursuant to an Option granted under the Plan
shall be immediately subject to the provisions of this Section 10, to the same
extent the Shares are at such time covered by such provisions.

      In order to enforce the limitations of this Section 10, the Company may
impose stop-transfer instructions with respect to the Shares acquired pursuant
to an Option granted under the Plan until the end of the applicable standoff
period.

      12.   Termination and Amendment of the Plan or Modification of Options.

            12.1 Plan Amendment or Termination. The Plan shall terminate on the
day preceding the tenth anniversary of the date of its adoption by the Board and
no Option may be granted thereafter. The Board may sooner terminate the Plan and
the Board may at any time and from time to time amend, modify or suspend the
Plan; provided, however, that:

                  (a) no such amendment, modification, suspension or termination
shall impair or adversely alter any Options theretofore granted under the Plan,
except with the consent of the Optionee, nor shall any amendment, modification,
suspension or termination deprive any Optionee of any Shares which he or she may
have acquired through or as a result of the Plan; and

                  (b) to the extent necessary under any applicable law,
regulation or exchange requirement no amendment shall be effective unless
approved by the stockholders of the Company in accordance with applicable law,
regulation or exchange requirement.

            12.2 Modification of Options. No modification of an Option shall
adversely alter or impair any rights or obligations under the Option without the
consent of the Optionee.

      13.   Non-Exclusivity of the Plan.

      The adoption of the Plan by the Board shall not be construed as amending,
modifying or rescinding any previously approved incentive arrangement or as
creating any limitations on the power of the Board to adopt such other incentive
arrangements as it may deem desirable, including, without limitation, the
granting of stock options otherwise than under the Plan, and such arrangements
may be either applicable generally or only in specific cases.

      14.   Limitation of Liability.

      As illustrative of the limitations of liability of the Company, but not
intended to be exhaustive thereof, nothing in the Plan shall be construed to:

                  (a)   give any person any right to be granted an Option
other than at the sole discretion of the Committee;

                  (b) give any person any rights as a shareholder of the Company
or any other rights whatsoever with respect to Shares except as specifically
provided in the Plan;

                  (c)   limit in any way the right of the Company or any
Subsidiary to terminate the employment of any person at any time; or

                  (d) be evidence of any agreement or understanding, expressed
or implied, that the Company will employ any person at any particular rate of
compensation or for any particular period of time.

      15.   Regulations and Other Approvals; Governing Law.

            15.1 Except as to matters of federal law, the Plan and the rights of
all persons claiming hereunder shall be construed and determined in accordance
with the laws of the State of Delaware without giving effect to conflicts of
laws principles thereof.

            15.2 The obligation of the Company to sell or deliver Shares with
respect to Options granted under the Plan shall be subject to all applicable
laws, rules and regulations, including all applicable federal and state
securities laws, and the obtaining of all such approvals by governmental
agencies as may be deemed necessary or appropriate by the Committee.

            15.3 The Board may make such changes as may be necessary or
appropriate to comply with the rules and regulations of any government
authority, or to obtain for Eligible Individuals granted Incentive Stock Options
the tax benefits under the applicable provisions of the Code and regulations
promulgated thereunder.

            15.4 Each Option is subject to the requirement that, if at any time
the Committee determines, in its discretion, that the listing, registration or
qualification of Shares issuable pursuant to the Plan is required by any
securities exchange or under any state or federal law, or the consent or
approval of any governmental regulatory body is necessary or desirable as a
condition of, or in connection with, the grant of an Option or the issuance of
Shares, no Options shall be granted or payment made or Shares issued, in whole
or in part, unless listing, registration, qualification, consent or approval has
been effected or obtained free of any conditions as acceptable to the Committee.

            15.5 Notwithstanding anything contained in the Plan or any Agreement
to the contrary, in the event that the disposition of Shares acquired pursuant
to the Plan is not covered by a then current registration statement under the
Securities Act, and is not otherwise exempt from such registration, such Shares
shall be restricted against transfer to the extent required by the Securities
Act and Rule 144 or other regulations thereunder. The Committee may require any
individual receiving Shares pursuant to an Option granted under the Plan, as a
condition precedent to receipt of such Shares, to represent and warrant to the
Company in writing that the Shares acquired by such individual are acquired
without a view to any distribution thereof and will not be sold or transferred
other than pursuant to an effective registration thereof under said Act or
pursuant to an exemption applicable under the Securities Act or the rules and
regulations promulgated thereunder. The certificates evidencing any of such
Shares shall be appropriately amended or have an appropriate legend placed
thereon to reflect their status as restricted securities as aforesaid.

            15.6 Notwithstanding anything in this Plan to the contrary, the
Company may make any necessary or desirable modifications or amendments to the
Plan or Options, including termination of any or all Options without payment
therefore, in order to obtain or perfect any exemption or other relief from the
Securities and Exchange Commission in connection with this Plan or any other
equity plan of the Company or any of its Subsidiaries.

      16.   Miscellaneous.

      16.1 Multiple Agreements. The terms of each Option may differ from other
Options granted under the Plan at the same time, or at some other time. The
Committee may also grant more than one Option to a given Eligible Individual
during the term of the Plan, either in addition to, or in substitution for, one
or more Options previously granted to that Eligible Individual.

      16.2  Withholding of Taxes.

                  (a) At such times as an Optionee recognizes taxable income in
connection with the receipt of Shares or cash hereunder (a "Taxable Event"), the
Optionee shall pay to the Company an amount equal to the federal, state and
local income taxes and other amounts as may be required by law to be withheld by
the Company in connection with the Taxable Event (the "Withholding Taxes") prior
to the issuance, or release from escrow, of such Shares or the payment of such
cash. The Company shall have the right to deduct from any payment of cash to an
Optionee an amount equal to the Withholding Taxes in satisfaction of the
obligation to pay Withholding Taxes. The Committee may provide in the Agreement
at the time of grant, or at any time thereafter, that the Optionee, in
satisfaction of the obligation to pay Withholding Taxes to the Company, may
elect to have withheld a portion of the Shares then issuable to him or her
having an aggregate Fair Market Value equal to the Withholding Taxes.

                  (b) If an Optionee makes a disposition, within the meaning of
Section 424(c) of the Code and regulations promulgated thereunder, of any Share
or Shares issued to such Optionee pursuant to the exercise of an Incentive Stock
Option within the two-year period commencing on the day after the date of the
grant or within the one-year period commencing on the day after the date of
transfer of such Share or Shares to the Optionee pursuant to such exercise, the
Optionee shall, within ten (10) days of such disposition, notify the Company
thereof, by delivery of written notice to the Company at its principal executive
office.

            16.3 Post-Transition Period. Following the Transition Period, any
Option granted under the Plan which is intended to be Performance-Based
Compensation, shall be subject to the approval of the material terms of the Plan
by a majority of the shareholders of the Company in accordance with Section
162(m) of the Code and the regulations promulgated thereunder.

      17.   Shareholder Approval.

      Notwithstanding anything in this Plan to the contrary, the adoption of
this Plan and all Options granted hereunder are subject to the approval of the
Plan by the holders of more than 75% of the voting power of all stock of the
Company outstanding at the Plan Effective Date.Exhibit 4.2

ISLAND HOLDING COMPANY, INC.

2002 CALIFORNIA STOCK APPRECIATION RIGHT PLAN

(As Adopted June 8, 2002)

<PAGE>

                          ISLAND HOLDING COMPANY, INC.
              2002 CALIFORNIA STOCK APPRECIATION RIGHT PLAN
   --------------------------------------------------------------------------

      1.    Purpose.

            The purpose of this Plan is to strengthen Island Holding Company,
Inc., a Delaware corporation (the "Company"), by providing an equity based
incentive to its employees, officers and directors residing in California and to
the employees, officers and directors of its Subsidiaries who reside in
California and thereby encouraging them to devote their abilities and industry
to the success of the business enterprise of the Company and its Subsidiaries.
It is intended that this purpose be achieved by extending to employees
(including future employees who have received a formal written offer of
employment), officers and directors of the Company and its Subsidiaries an added
long-term incentive for high levels of performance and unusual efforts through
the grant of Island SARs (as such term is herein defined).

      2.    Definitions.

            For purposes of the Plan:

            2.1 "Agreement" means the written agreement between the Company and
a Grantee evidencing the grant by the Company of an Island SAR and setting forth
the terms and conditions thereof.

            2.2   "Award" means a grant by the Company of an Island SAR.

            2.3   "Board" means the Board of Directors of the Company.

            2.4   "Cause" means:

                  (a) in the case of a Grantee whose employment with the Company
or a Subsidiary is subject to the terms of an employment agreement between such
Grantee and the Company or Subsidiary, which employment agreement includes a
definition of "Cause", the term "Cause" as used in this Plan or any Agreement
shall have the meaning set forth in such employment agreement during the period
that such employment agreement remains in effect; and

                  (b) in all other cases, (i) the commission by a Grantee of any
act or omission that would constitute a crime under federal, state or equivalent
foreign law, (ii) the commission by a Grantee of any act of moral turpitude,
(iii) fraud, dishonesty or other acts or omissions by a Grantee that result in a
breach of any fiduciary or other material duty to the Company and/or the
Subsidiaries or (iv) continued alcohol or other substance abuse that renders a
Grantee incapable of performing his or her material duties to the satisfaction
of the Company and/or the Subsidiaries.

            2.5 "Change in Capitalization" means any increase or reduction in
the number of Shares, or any change (including, but not limited to, in the case
of a spin-off, dividend or other distribution in respect of Shares, a change in
value) in the Shares or exchange of Shares for a different number or kind of
shares or other securities of the Company or another corporation, by reason of a
reclassification, recapitalization, merger, consolidation, reorganization,
spin-off, split-up, issuance of warrants or rights or debentures, stock
dividend, stock split or reverse stock split, cash dividend, property dividend,
combination or exchange of shares, repurchase of shares, change in corporate
structure or otherwise.

            2.6   A "Change in Control"  shall mean the  occurrence  of any of
the following:

                  (a) An acquisition (other than directly from the Company) of
any voting securities of the Company (the "Voting Securities") by any "Person"
(as the term person is used for purposes of Section 13(d) or 14(d) of the
Exchange Act), immediately after which such Person has "Beneficial Ownership"
(within the meaning of Rule 13d-3 promulgated under the Exchange Act) of Voting
Securities representing fifty percent (50%) or more of the then outstanding
combined voting power of the Company's then outstanding Voting Securities;
provided, however, in determining whether a Change in Control has occurred
pursuant to this Section 2.5(a), Voting Securities which are acquired in a
"Non-Control Acquisition" (as hereinafter defined) shall not constitute an
acquisition which would cause a Change in Control. A "Non-Control Acquisition"
shall mean any direct or indirect acquisition by (i) an employee benefit plan
(or a trust forming a part thereof) maintained by (A) the Company or (B) any
corporation or other Person of which a majority of its voting power or its
voting equity securities or equity interest is owned, directly or indirectly, by
the Company (for purposes of this definition, a "Related Entity"), (ii) the
Company or any Related Entity, or (iii) any Person in connection with a
"Non-Control Transaction" (as hereinafter defined);

                  (b)   The consummation of:

                        (i)   A merger,  consolidation or reorganization  with
or into the Company or in which securities of the Company are issued (a
"Merger"), unless such Merger is a "Non-Control Transaction." A "Non-Control
Transaction" shall mean a Merger where the stockholders of the Company,
immediately before such Merger, own directly or indirectly immediately following
such Merger at least fifty percent (50%) of the combined voting power of the
outstanding Voting Securities of (x) the corporation or other entity surviving
or resulting from such Merger (the "Surviving Corporation") if fifty percent
(50%) or more of the combined voting power of the then outstanding Voting
Securities of the Surviving Corporation is not Beneficially Owned, directly or
indirectly by another Person (a "Parent Corporation"), or (y) if there are one
or more Parent Corporations, the ultimate Parent Corporation;

                        (ii)  A complete liquidation or dissolution of the
                  Company; or

                        (iii) The  sale  or  other   disposition   of  all  or
substantially all of the assets of the Company to any Person (other than a
transfer to a Related Entity or under conditions that would constitute a
Non-Control Transaction with the disposition of assets being regarded as a
Merger for this purpose or the distribution to the Company's stockholders of the
stock of a Related Entity or any other assets).

            Notwithstanding the foregoing, a Change in Control shall not be
deemed to occur solely because any Person (the "Subject Person") acquired
Beneficial Ownership of more than the permitted amount of the then outstanding
Voting Securities as a result of the acquisition of Voting Securities by the
Company which, by reducing the number of Voting Securities then outstanding,
increases the proportional number of Voting Securities Beneficially Owned by the
Subject Persons, provided that if a Change in Control would occur (but for the
operation of this sentence) as a result of the acquisition of Voting Securities
by the Company, and after such acquisition by the Company, the Subject Person
becomes the Beneficial Owner of any additional Voting Securities which increases
the percentage of the then outstanding Voting Securities Beneficially Owned by
the Subject Person, then a Change in Control shall occur.

            2.7   "Code" means the Internal Revenue Code of 1986, as amended.

            2.8 "Committee" means a committee, as described in Section 3.1,
appointed by the Board from time to time to administer the Plan and to perform
the functions set forth herein.

            2.9   "Company" means Island Holding Company, Inc.

            2.10  "Director" means a director of the Company.

            2.11  "Disability" means:

                  (a) in the case of a Grantee whose employment with the Company
or a Subsidiary is subject to the terms of an employment agreement between such
Grantee and the Company or Subsidiary, which employment agreement includes a
definition of "Disability", the term "Disability" as used in this Plan or any
Agreement shall have the meaning set forth in such employment agreement during
the period that such employment agreement remains in effect; or

                  (b)   the  term   "Disability"  as  used  in  the  Company's
long-term disability plan, if any; or

                  (c) in all other cases, the term "Disability" as used in this
Plan or any Agreement shall mean a physical or mental infirmity which impairs
the Grantee's ability to perform substantially his or her duties for a period of
one hundred eighty (180) consecutive days.

            2.12 "Eligible Individual" means any director or non-voting observer
to the Board, officer or employee of the Company or a Subsidiary who is
designated by the Committee as eligible to receive Island SARs subject to the
conditions set forth herein.

            2.13  "Exchange  Act" means the  Securities  Exchange Act of 1934,
as amended.

            2.14 "Exercise Event" means the first to occur of (x) an Initial
Public Offering of the Company and (y) a Change in Control of the Company (i) in
which a majority of the Shares outstanding immediately before such Change in
Control, are acquired for, or converted or exchanged into, cash, cash
equivalents or marketable securities or (ii) after giving effect to which either
the Company or the entity resulting from or surviving such Change in Control, or
any Parent of them, is subject to the reporting requirements under Section 13 of
the Exchange Act with respect to any class of equity securities.

            2.15  "Exercise  Price"  shall have the  meaning  ascribed to that
term in Section 5.3

            2.16 "Fair Market Value" on any date means the closing sales prices
of the Shares on such date on the principal national securities exchange on
which such Shares are listed or admitted to trading, or, if such Shares are not
so listed or admitted to trading, the average of the per Share closing bid price
and per Share closing asked price on such date as quoted on the National
Association of Securities Dealers Automated Quotation System or such other
market in which such prices are regularly quoted, or, if there have been no
published bid or asked quotations with respect to Shares on such date, the Fair
Market Value shall be the value established by the Committee in good faith.

            2.17 "Grantee" means a person to whom an Award has been granted
under the Plan, for so long as such person continues to hold such Award.

            2.18 "Initial Public Offering" means the consummation of the first
widely distributed underwritten public offering of Shares pursuant to a
registration statement (other than a Form S-8 or successor forms) filed with,
and declared effective by, the Securities and Exchange Commission.

            2.19 "Island SAR" means, with respect to any Island SAR issued
hereunder, a right to receive from the Company a payment in cash as set forth in
Section 5.3 on the terms and conditions provided in Section 5 hereof.

            2.20 "Nonemployee Director" means a director of the Company who is a
"nonemployee director" within the meaning of Rule 16b-3 promulgated under the
Exchange Act.

            2.21 "Parent" means any corporation which is a parent corporation
(within the meaning of Section 424(e) of the Code) with respect to the Company.

            2.22 "Performance-Based Compensation" means any Award that is
intended to constitute "performance-based compensation" within the meaning of
Section 162(m)(4)(C) of the Code and the regulations promulgated thereunder or
with respect to which it is intended that the deduction limitation contained in
Section 162(m) of the Code might not apply.

            2.23  "Plan"  means  the  Island   Holding   Company,   Inc.  2002
California  Stock  Appreciation  Right Plan, as amended and restated from time
to time.

            2.24 "Plan Effective Date" means June 8, 2002, the date as of which
the Plan was adopted and became effective.

            2.25  "Securities  Act"  means  the  Securities  Act of  1933,  as
amended.

            2.26 "Shares" means the shares of common stock, par value $0.001 per
share, of the Company, and any other securities into which such shares are
changed or for which such shares are exchanged.

            2.27 "Subsidiary" means (i) except as provided in subsection (ii)
below, any corporation which is a subsidiary corporation within the meaning of
Section 424(f) of the Code with respect to the Company, and (ii) in relation to
continued employment for purposes of Awards (unless the Committee determines
otherwise), any entity, whether or not incorporated, in which the Company
directly or indirectly owns 50% or more of the outstanding equity or other
ownership interests.

            2.28 "Successor Corporation" means a corporation, or a parent or
subsidiary thereof within the meaning of Section 424(a) of the Code, which
issues or assumes a stock option in a transaction to which Section 424(a) of the
Code applies.

      3.    Administration.

            3.1 The Plan shall be administered by the Committee, which shall
hold meetings at such times as may be necessary for the proper administration of
the Plan. The Committee shall keep minutes of its meetings. The Committee shall
be appointed by the Board in accordance with the charter and by-laws of the
Company and any agreements by and among the stockholders of the Company.

            3.2 No member of the Committee shall be liable for any action,
failure to act, determination or interpretation made in good faith with respect
to this Plan or any transaction hereunder. The Company hereby agrees to
indemnify each member of the Committee for all costs and expenses and, to the
extent permitted by applicable law, any liability incurred in connection with
defending against, responding to, negotiating for the settlement of or otherwise
dealing with any claim, cause of action or dispute of any kind arising in
connection with any actions in administering this Plan or in authorizing or
denying authorization to any transaction hereunder.

            3.3 Subject to the express terms and conditions set forth herein,
including Section 4 hereof, the Committee shall have the power from time to time
to:

                  (a) take all necessary action to grant Awards to Eligible
Individuals pursuant to the terms of the Plan and make any amendment or
modification to any Agreement consistent with the terms of the Plan;

                  (b) to construe and interpret the Plan and the Awards granted
hereunder and to establish, amend and revoke rules and regulations for the
administration of the Plan, including, but not limited to, correcting any defect
or supplying any omission, or reconciling any inconsistency in the Plan or in
any Agreement, in the manner and to the extent it shall deem necessary or
advisable, including so that the Plan and the operation of the Plan complies
with Rule 16b-3 under the Exchange Act, the Code to the extent applicable and
other applicable law, and otherwise to make the Plan fully effective. All
decisions and determinations by the Committee in the exercise of this power
shall be final, binding and conclusive upon the Company, its Subsidiaries, the
Grantees, and all other persons having any interest therein;

                  (c) to determine the duration and purposes for leaves of
absence which may be granted to a Grantee on an individual basis without
constituting a termination of employment or service for purposes of the Plan;

                  (d)   to exercise its discretion  with respect to the powers
and rights granted to it as set forth in the Plan; and

                  (e) generally, to exercise such powers and to perform such
acts as are deemed necessary or advisable to promote the best interests of the
Company with respect to the Plan.

      4.    Stock Subject to the Plan; Grant Limitations.

            4.1 The maximum number of Shares that may be made the subject of
Island SARs granted under the Plan is 500,000 Shares.

      5.    Island SARs.

            5.1 Authority of Committee. Upon the adoption of the Plan by the
Board and subject to the approval of the Company's shareholders as provided in
Section 14, and subject to the provisions of the Plan, the Committee shall have
full and final authority to select those Eligible Individuals who will receive
Island SARs, and determine the terms and conditions of the Island SAR grants
which shall be set forth in an Agreement.

            5.2   Exercise  Price.  The Exercise  Price for the Shares covered
by Island SARs granted  hereunder  shall be as determined by the Committee and
set forth in the Agreement.

            5.3 Terms of Island SARs. Island SARs granted hereunder may be
exercised hereunder only after the Island SAR has become exercisable, and then
only as to the Shares covered by such Island SAR that are or have become vested.
Upon a permitted exercise by a Grantee of an Island SAR issued to such Grantee
hereunder, the Grantee shall be entitled to receive an amount determined by
multiplying (i) the excess of the Fair Market Value of a Share on the date
preceding the date of exercise of such Island SAR over the Exercise Price of the
Island SAR, by (ii) the number of Shares as to which the Island SAR is being
exercised. Payment shall be made within 90 days of the date of any exercise.
Notwithstanding the foregoing, if at the time of a scheduled payment under this
Section 5.3 the Company is prohibited from making such a payment by the
operation of restrictions under one of the Company's instrument of indebtedness
or for other legal or regulatory reasons, the Company will make the payment once
such prohibitions cease with interest calculated at the rate of 6% per annum
from the date the payment was scheduled to be made until the date of actual
payment.

            5.4 Maximum Duration. Except as otherwise determined by the
Committee at the time of the grant, Island SARs granted hereunder shall have a
term of, and shall not be exercisable after the expiration of, ten (10) years
from the date it is granted; provided, however, the Committee may provide that
an Island SAR may, upon the death of the Grantee prior to the expiration of the
Island SAR, be exercised for up to one (1) year following the date of the
Grantee's death even if such period extends beyond ten (10) years from the date
the Island SAR is granted. The Committee may, subsequent to the granting of any
Island SAR, extend the term thereof, but in no event shall the term as so
extended exceed the maximum term provided for in the preceding sentence.

            5.5   Vesting; Exercisability.

                  (a) Except as otherwise determined by the Committee at the
time of the grant, each Island SAR shall become vested with respect to
twenty-five percent (25%) of the total number of Shares covered by the Island
SAR on each of the first four (4) anniversaries of the day before the date of
the grant. The Grantee must be in the employ or service of the Company on any
scheduled date of vesting, otherwise vesting will not occur. Any fractional
number of Shares resulting from the application of the foregoing percentages
shall be rounded to the next higher whole number of Shares. The Committee may
accelerate the vesting of any Island SAR or portion thereof at any time.

                  (b) Except as otherwise determined by the Committee at the
time of grant, a vested Island SAR may be exercised in accordance with the Plan
at any time on or after the occurrence of an Exercise Event. Island SARs that
become vested after the occurrence of an Exercise Event may be exercised in
accordance with the Plan at any time after they become vested. To the extent not
exercised, installments shall accumulate and be exercisable, in whole or in
part, at any time after becoming exercisable, but not later than the date the
Island SAR expires.

            5.6 Non-Transferability. No Island SAR shall be transferable by the
Grantee otherwise than by will or by the laws of descent and distribution, and
an Island SAR shall be exercisable during the lifetime of such Grantee only by
the Grantee or his or her guardian or legal representative. The terms of an
Island SAR shall be final, binding and conclusive upon the beneficiaries,
executors, administrators, heirs and successors of the Grantee. Any attempt to
transfer the Island SAR in violation of these prohibitions will be void.

            5.7 Method of Exercise. Island SARs shall be exercised by a Grantee
only by a written notice delivered in person or by mail to the Secretary of the
Company at the Company's principal executive office, specifying the number of
Shares with respect to which the Island SAR is being exercised. If requested by
the Committee, the Grantee shall deliver the Agreement evidencing the Island SAR
being exercised to the Secretary of the Company who shall endorse thereon a
notation of such exercise and return such Agreement to the Grantee.

            5.8   Form of  Payment.  Payment  of the amount  determined  under
Section 5.3 shall be made solely in cash.

      6.    Effect of a Termination of Employment.

            (a) Except as otherwise determined by the Committee at the time of
grant or at any time thereafter, in the event a Grantee leaves the employ of the
Company and the Subsidiaries or ceases to serve as a Nonemployee Director of the
Company for any reason other than his or her termination for Cause, each Island
SAR previously granted to him or her that has not already been exercised,
expired or otherwise been cancelled, and that was vested and exercisable on the
date of termination of employment or service, shall terminate thirty (30) days
after the date of such Grantee's termination of employment or service, or on the
date of termination specified in the Island SAR, as the case may be, whichever
comes first. Any Island SAR that was not both vested and exercisable on the date
of termination shall expire on that date.

            (b) If a Grantee's employment by the Company and the Subsidiaries or
service as a Nonemployee Director of the Company is terminated for Cause, each
Island SAR previously granted to him or her that has not already been exercised,
expired or otherwise been cancelled shall terminate at the same time the
termination for Cause becomes effective.

      7.    Adjustment Upon Changes in Capitalization.

            (a) In the event of a Change in Capitalization, the Committee shall
conclusively determine the appropriate adjustments, if any, to (i) the maximum
number and class of Shares or other stock or securities with respect to which
Island SARs may be granted under the Plan and (ii) subject to Section 8, the
number and class of Shares or other stock or securities which are subject to
outstanding Island SARs granted under the Plan and the exercise price therefor,
if applicable.

            (b) Any such adjustment in the Shares or other stock or securities
subject to outstanding Island SARs that are intended to qualify as
Performance-Based Compensation shall be made in such a manner as not to
adversely affect the treatment of the Island SARs as Performance-Based
Compensation.

            (c) If, by reason of a Change in Capitalization, a Grantee shall be
entitled to exercise an Island SAR with respect to new, additional or different
shares of stock or securities of the Company or any other corporation, such new,
additional or different shares shall thereupon be subject to all of the
conditions, restrictions and performance criteria which were applicable to the
Shares subject to the Island SAR, as the case may be, prior to such Change in
Capitalization.

      8.    Effect of Certain Transactions.

            Except as otherwise provided in an Agreement, in the event of (a)
the liquidation or dissolution of the Company or (b) a merger or consolidation
of the Company with or into any other corporation or other entity (a
"Transaction"), the Plan and the Island SARs issued hereunder shall continue in
effect in accordance with their respective terms, except that following a
Transaction either (i) each outstanding Island SAR shall be treated as provided
for in the agreement entered into in connection with the Transaction or (ii) if
not so provided in such agreement, each Grantee shall be entitled to receive in
respect of each Share subject to any outstanding Island SARs, upon exercise of
any Island SAR following the Transaction, the excess of the fair market value of
the same number and kind of stock, securities, cash, property or other
consideration that each holder of a Share was entitled to receive in the
Transaction in respect of a Share over the Exercise Price of the Island SAR.

      8.    Interpretation.

            Following the required registration of any equity security of the
Company pursuant to Section 12 of the Exchange Act, the Committee shall not be
entitled to exercise any discretion otherwise authorized hereunder with respect
to such Awards if the ability to exercise such discretion or the exercise of
such discretion itself would cause the compensation attributable to such Awards
to fail to qualify as Performance-Based Compensation. Each Award granted under
the Plan is intended to be Performance-Based Compensation.

      9.    Termination and Amendment of the Plan or Modification of Awards.

            9.1 Plan Amendment or Termination. The Plan shall terminate on the
day preceding the tenth anniversary of the date of its adoption by the Board and
no Award may be granted thereafter. The Board may sooner terminate the Plan and
the Board may at any time and from time to time amend, modify or suspend the
Plan; provided, however, that:

                  (a) no such amendment, modification, suspension or termination
shall impair or adversely alter any Awards theretofore granted under the Plan,
except with the consent of the Grantee; and

                  (b) to the extent necessary under any applicable law,
regulation or exchange requirement no amendment shall be effective unless
approved by the stockholders of the Company in accordance with applicable law,
regulation or exchange requirement.

            9.2 Modification of Awards. No modification of an Award shall
adversely alter or impair any rights or obligations under the Award without the
consent of the Grantee.

      10.   Non-Exclusivity of the Plan.

            The adoption of the Plan by the Board shall not be construed as
amending, modifying or rescinding any previously approved incentive arrangement
or as creating any limitations on the power of the Board to adopt such other
incentive arrangements as it may deem desirable, including, without limitation,
the granting of stock options otherwise than under the Plan, and such
arrangements may be either applicable generally or only in specific cases.

      11.   Limitation of Liability.

            As illustrative of the limitations of liability of the Company, but
not intended to be exhaustive thereof, nothing in the Plan shall be construed
to:

            (a)   give any person any right to be granted an Award  other than
at the sole discretion of the Committee;

            (b) give any person any rights as a shareholder of the Company or
any other rights whatsoever with respect to Shares, other than to receive a cash
payment pursuant to the terms of the Plan and Awards granted hereunder;

            (c)   limit in any way the right of the Company or any  Subsidiary
to terminate the employment of any person at any time; or

            (d) be evidence of any agreement or understanding, expressed or
implied, that the Company will employ any person at any particular rate of
compensation or for any particular period of time.

      12.   Regulations and Other Approvals; Governing Law.

            12.1 Except as to matters of federal law, the Plan and the rights of
all persons claiming hereunder shall be construed and determined in accordance
with the laws of the State of Delaware without giving effect to conflicts of
laws principles thereof.

            12.2 The obligation of the Company with respect to Awards granted
under the Plan shall be subject to all applicable laws, rules and regulations,
including all applicable federal and state securities laws, and the obtaining of
all such approvals by governmental agencies as may be deemed necessary or
appropriate by the Committee.

            12.3 The Board may make such changes as may be necessary or
appropriate to comply with the rules and regulations of any government
authority.

            12.4 Each Award is subject to the requirement that, if at any time
the Committee determines, in its discretion, that the listing, registration or
qualification of Awards issuable pursuant to the Plan is required by any
securities exchange or under any state or federal law, or the consent or
approval of any governmental regulatory body is necessary or desirable as a
condition of, or in connection with, the grant of an Award, no Awards shall be
granted or payment made thereon, in whole or in part, unless listing,
registration, qualification, consent or approval has been effected or obtained
free of any conditions as acceptable to the Committee.

            12.5 Notwithstanding anything in this Plan to the contrary, the
Company may make any necessary or desirable modifications or amendments to the
Plan or Awards, including the termination of any or all Awards without payment
therefore, in order to obtain or perfect any exemption or other relief from the
Securities and Exchange Commission in connection with this Plan or any other
equity plan of the Company or any of its Subsidiaries.

      13.   Miscellaneous.

            13.1 Multiple Agreements. The terms of each Award may differ from
other Awards granted under the Plan at the same time, or at some other time. The
Committee may also grant more than one Award to a given Eligible Individual
during the term of the Plan, either in addition to, or in substitution for, one
or more Awards previously granted to that Eligible Individual.

            13.2 Withholding of Taxes. At such times as a Grantee recognizes
taxable income in connection with the receipt of cash hereunder (a "Taxable
Event"), the Grantee shall pay to the Company an amount equal to the federal,
state and local income taxes and other amounts as may be required by law to be
withheld by the Company in connection with the Taxable Event (the "Withholding
Taxes") prior to the payment of such cash. The Company shall have the right to
deduct from any payment of cash to a Grantee an amount equal to the Withholding
Taxes in satisfaction of the obligation to pay Withholding Taxes.

14.   Shareholder Approval.

            Notwithstanding anything in this Plan to the contrary, the adoption
of this Plan and all Awards granted hereunder are subject to the approval of the
Plan by the holders of more than 75% of the voting power of all stock of the
Company outstanding at the Plan Effective Date.

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