Document:

EXHIBIT 4.3
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                            CAS MEDICAL SYSTEMS, INC.
                          EMPLOYEE STOCK PURCHASE PLAN

            1. INTRODUCTION

            The CAS Medical Systems, Inc. Employee Stock Purchase Plan (the
"Plan") is designed to provide Eligible Employees with the opportunity to own
common stock ("Common Stock") in CAS Medical Systems, Inc. (the "Company")
through a payroll-deduction based employee stock purchase plan, thereby
stimulating Eligible Employees' interest in the growth and prosperity of the
Company.

            The Plan is intended to be a qualified employee stock purchase plan
under Section 423 of the Internal Revenue Code of 1986, as amended (the "Code"),
or any successor provision thereto, and the Plan shall be construed in
accordance with such purpose.

            2. ELIGIBLE EMPLOYEES

            An "Eligible Employee" is any person (i) who is an employee of the
Company or a U.S. subsidiary of the Company designated as a "participating
subsidiary" (each such entity being referred to as a "Participating Employer")
by the Company's Compensation Committee (the "Committee") and (ii) who is
customarily employed for at least twenty (20) hours a week as of the Initial
Payroll Deduction Date (as defined below). An Eligible Employee shall be
eligible to purchase Common Stock under this Plan in accordance with the terms
of the Plan.

            Any provision of this Plan to the contrary notwithstanding, no
otherwise Eligible Employee shall be granted a Purchase Right under this Plan:

                  (a) if, immediately after the grant such Eligible Employee
would own shares and/or hold outstanding Purchase Rights to purchase stock
possessing five percent (5%) or more of the total combined voting power or value
of all classes of stock of the company or any subsidiary of the Company; or

                  (b) that permits the Eligible Employee to purchase more than
$25,000 worth of Common Stock (or such greater amount as may be then permitted
by Section 423, or any successor provision, of the Code), based on the Fair
Market Value of the Shares determined at the time such Purchase Right is
granted, for each calendar year in which such Purchase Rights are outstanding
under all employee stock purchase plans of the Company and its subsidiaries; or

                  (c) that permits the Eligible Employee to purchase more than
1,500 shares during any Offering Period.

<PAGE>

            An Eligible Employee who elects to participate as provided in
Paragraph 4 shall be a referred to as a "Participant".

            3. OFFERING

            While the Plan is in effect, two Offering Periods shall commence in
each calendar year, unless otherwise determined by the Committee. The Offering
Periods shall consist of the six-month periods commencing on each January 1 and
July 1, except that the first offering period shall, unless otherwise determined
by the Committee, commence on July 1, 2004 and extend through December 31, 2004.
The first day of the Offering Period shall be known as the "Offering Date".

            For each Offering Period, the last business day of the term of the
Offering Period shall be the date of exercise (the "Purchase Date") unless the
Committee determines otherwise. For each Offering, the purchase price per share
of stock (the "Purchase Price" or "Exercise Price") will be the lower of the
average of the high and low price of the Common Stock on the OTC Bulletin Board
(the "Average Price") on (i) the Offering Date or (ii) the Purchase Date, less
fifteen percent (15%) (the "Discount"). Notwithstanding the foregoing, the
Committee may determine in its discretion and in advance of the commencement of
the Offering Period that a smaller Discount shall apply. In no event shall the
Committee determine a Purchase Price that is less than the lowest price that
employee stock purchase plans are permitted to establish under Section 423 (or
any successor provision) of the Code nor shall a Purchase Right granted under
this Plan be exercisable for a period of time longer than that permitted under
Section 423 (or any successor provision) of the Code.

            The Committee shall in its discretion determine the terms and
conditions under which each Offering shall be made and shall authorize and
determine in advance of the Offering the aggregate number of shares of Common
Stock that may be issued pursuant to each Offering. The Committee shall
determine the exact number of shares of Common Stock utilized in each Offering
and shall report such information to the Treasurer or his or her delegate. The
terms of such Offering shall comply in all respects with Section 423 of the
Code, including the Purchase Price and the duration of the exercise period for
such Offering.

            Notice of each Offering will be given to Eligible Employees with
full details as to the aggregate number of shares offered, the Purchase Price
per share for the Offering, the restrictions on the maximum number of shares
purchasable by the Participant with respect to each Offering Period, the amount
of payroll deductions to be made, and any pro rata reduction required in
accordance with Paragraph 5.

            Under the terms of this Plan, all Eligible Employees granted a
Purchase Right pursuant to an Offering shall have the same rights and privileges
with respect to such Purchase Right, except that the number of shares of Common
Stock that may be purchased by any Eligible Employee will be based on his or her
total Payroll Deductions during the Offering Period.

<PAGE>

            4. PAYROLL DEDUCTIONS; PURCHASE OF COMMON STOCK

            An Eligible Employee may become a Participant in the Plan by filing
on or before the Offering Date of an Offering a completed Stock Purchase form
provided by the Company (i) authorizing Payroll Deductions (as described herein)
and (ii) subscribing to purchase that number of shares of Common Stock
purchasable based on the total Payroll Deductions deducted with respect to the
Offering Period and the Purchase Price determined in accordance with Paragraph
3. Any such Stock Purchase form pursuant to this Paragraph 4 shall remain in
effect for subsequent Offerings unless such Participant completes and files a
new Stock Purchase form and Payroll Deduction authorization, which shall be
applied only to future Offerings. A Participant may cancel his participation in
any Offering in accordance with Paragraph 8.

            (a) Eligible Employees may elect to authorize their Participating
Employer to make Payroll Deductions from Compensation in terms of either whole
percentage amounts or whole dollar amounts (subject to any minimum percentage or
dollar amount per payroll period that the Committee shall establish); provided,
however, that no Payroll Deduction for any Offering Period shall exceed ten
percent (10%) percent of a Participant's Compensation during the period that
begins on the Offering Date and ends on the Purchase Date.

            "Compensation" shall mean a Participant's base salary earnings for
the Offering Period, except that, with respect to Participants paid partially or
entirely on commission, "Compensation" shall mean such Participant's Average
Benefit Base Rate of compensation for the Offering Period. "Average Benefit Base
Rate" shall equal an amount, determined by taking the prior year's year regular
earnings from January 1 through August 31 of such year, plus commissions for the
same period, divided by 8 and multiplied by the number of months in the Offering
Period.

            (b) Unless the Committee shall specify otherwise, deductions shall
begin in the first pay period commencing after the Offering Date (the "Initial
Payroll Deduction Date"). All Payroll Deductions may be used by the Company for
general corporate purposes. A separate bookkeeping account ("Book Account")
shall be maintained by the Company for each Participant, and the amount of each
Participant's Payroll Deductions shall be credited to such account. Except as
provided in Paragraph 9, no interest shall be paid on the balance of the
Employee's Book Account. Payroll Deductions shall not be held in any segregated
account or trust fund and may be commingled with the general assets of the
Company and used for general corporate purposes.

            (c) Unless the Committee shall specify otherwise, each Participant
will be granted an allotment for the number of shares of Common Stock which are
purchasable, computed as the aggregate Payroll Deduction designated by such
Participant on such Participant's Stock Purchase form to be deducted during the
term of the Offering divided by the Purchase Price (determined in accordance
with Paragraph 3), subject to the provisions of Paragraph 5 below. If such
amount does not result in a whole number of shares of Common Stock, the number
of shares will be decreased to the next lowest whole number.

<PAGE>

            (d) Unless an Employee exercises his right to cancel and makes a
request of the Committee prior to the Purchase Date to withdraw his Book Account
in cash, the amount of an Employee's Book Account shall automatically be used to
exercise his Purchase Right on the Purchase Date. The Employee's Purchase Right
will be exercised, in purchases of whole shares of Common Stock, to the extent
of the amount in the Employee's Book Account; provided, however, the Employee is
not limited in the exercise of his Purchase Right to the amount credited to his
Book Account. The Employee may supplement the amount of his Book Account to
exercise his Purchase Right (for the number of shares of Common Stock that the
Employee had elected to purchase during the Offering Period pursuant to
Paragraph 4) by paying cash and/or tendering Shares (if permitted) to the Plan
Administrator.

            (e) Any Payroll Deductions not applied to the purchase of Shares on
the Purchase Date (because not sufficient to purchase whole Shares) shall remain
in the Participant's Book Account for the purchase of shares of Common Stock
under the next Offering, unless such Participant withdraws from such next
Offering, or is not eligible to participate in such Offering (including because
of his premature disposition of Shares acquired under the Plan under
subparagraph (f) below), in which case such amount shall be distributed in cash
to the Participant after the Purchase Date without interest. Any Payroll
Deductions not applied to the purchase of shares of Common Stock by reason of
the limitation on the maximum number of Shares purchasable by an Employee on the
Purchase Date shall be promptly returned in cash to the Employee without
interest.

            (f) If a Participant Disposes of Shares acquired under this Plan
prior to having held such Shares for a twelve (12) month period from the
Purchase Date, then the Participant shall be ineligible to purchase additional
shares under any Offering in effect as of the date of disposition, any Payroll
Deductions taken with respect to the Offering Period for such Offering shall be
returned in accordance subparagraph (e), and the Participant shall further be
ineligible to participate in the purchase of Shares during the next succeeding
Offering Period.

            5. OVERSUBSCRIPTIONS

            In the event the number of shares for which subscriptions are
received exceeds the number of shares offered as determined under Paragraph 3,
the number of shares allotted to each Participant will be proportionately
reduced.

            6. RIGHTS AS A STOCKHOLDER

            A Participant will have none of the rights or privileges of a
stockholder of the Company until the full purchase price of such Participant's
shares has been paid and such shares of Common Stock have been issued to the
Participant and recorded in the books of the Company (or its transfer agent).

<PAGE>

            7. ISSUANCE OF STOCK

            Unless a Participant cancels such Participant's Purchase Right as
provided below, it will be exercised and become an obligation to take the shares
of Common Stock as of the Purchase Date. Within a reasonable time after the
Purchase Date, the number of shares purchased by a Participant, determined as
provided in Paragraph 4, will be credited to such Participant.

            The shares will be issued in the name of the employee or, upon such
employee's request, jointly in such employee's name and that of a family member
as specified on such employee's Stock Purchase Registration form.

            The Committee, in its discretion, may impose restrictions on the
transferability of shares of Common Stock acquired pursuant to this Plan, and
may cause to be placed on all stock certificates, other evidences of ownership,
legends or other indicators setting forth any such restrictions on
transferability instructing the transfer agent to notify the Company of any
transfer of such shares, and may require that any shares acquired pursuant to
the Plan be held in the Participants' Book Accounts until the expiration of any
restrictions. Such restrictions, if any, shall apply uniformly to all
Participants with respect to any Offering.

            8. RIGHT TO CANCEL

            Prior to the final Payroll Deduction to be made pursuant to any
Offering, a Participant may cancel all or any part of such Participant's right
to purchase by filing a notice of cancellation with the Company. Promptly after
the Company's receipt of such notice, the Participant will receive the Payroll
Deductions then credited to his Book Account, without interest thereon. Rights
to purchase which have been canceled pursuant to this Paragraph may not be
reinstated at a later date. However, the Participant may participate with
respect to future Offerings, provided he remains an Eligible Employee.

            9. TERMINATION OF EMPLOYMENT

            If a Participant (i) dies, (ii) retires on or after reaching age 55
with 10 years of service, or (iii) terminates due to disability (as defined in
the Company's long-term disability plan) prior to such Participant's final
Payroll Deduction for an Offering, such Participant or such Participant's legal
representative may, within a period of three (3) months following the
Participant's death or retirement either:

                  (a) cancel such Participant's Purchase Right and request
payment in cash of the entire amount which has been deducted under the Plan plus
interest as computed below, or

<PAGE>

                  (b) receive the number of full shares of Common Stock which
the Payroll Deductions will purchase, at the Purchase Price, and receive the
balance, if any, in cash.

            Notice of choice between (a) and (b) above shall be given to the
Company in writing and if such notice is not received within the prescribed
period, the Company shall act in accordance with (a) above.

            If a Participant's employment is otherwise terminated, such
Participant's only right will be to receive in cash the amount which has been
deducted under the Plan, together with interest, calculated at the average
passbook rate (or such other rate as the Committee shall determine), on the
average balance of Payroll Deductions credited to such Participant's Book
Account during the during the Offering Period up to the Participant's
termination date.

            A Participant who remains an employee, but whose name is temporarily
taken off the payroll because of leave of absence, temporary disability,
temporary layoff, military service or for service with another organization to
the mutual benefit of the Company and the employee, may cancel such
Participant's right to purchase and receive the amounts accumulated to such
Participant's credit, or make special arrangements to continue payments, or to
suspend them. In the event that the Participant's Payroll Deductions are
suspended pursuant to this paragraph, but the Participant nevertheless wishes to
exercise his Purchase Right in full, then payment of the Purchase Price must be
made not later than the Purchase Date.

            10. DESIGNATION OF BENEFICIARY.

            (a) A Participant may file a written designation of a beneficiary
who is to receive any shares of Common Stock and/or cash, if any from the
Participant's Book Account under the Plan in the event of such Participant's
death subsequent to the end of an Offering but prior to delivery to the
Participant of such shares of Common Stock or cash. In addition, a Participant
may file a written designation of a beneficiary who is to receive any cash from
the Participant's Book Account under the Plan in the event of such Participant's
death during an Offering.

(b) The Participant may change such beneficiary designation at any time by
written notice to the Committee. In the event of the death of the Participant
and in the absence of a validly designated, surviving, beneficiary under the
Plan, the Company shall deliver such shares of Common Stock and/or cash to the
executor or administrator of the estate of the Participant, or if none has been
appointed, then to the surviving spouse of the Participant or, if none, to such
other person as the Company may designate.

            11. RIGHTS NOT TRANSFERABLE

            No right under this Plan, other than stock issued pursuant to the
terms of the Plan not otherwise subject to restrictions on transfer ("Released
Stock"), shall be assignable, alienable, saleable, or transferable by a

<PAGE>

Participant other than by will or by the laws of descent and distribution. Each
right under this Plan shall be exercisable during the Participant's lifetime
only by the Participant, or, if permissible under applicable law, by the
Participant's guardian or legal representative. No right hereunder (other than
Released Stock) may be pledged, alienated, attached, or otherwise encumbered and
any purported pledge, alienation, attachment, or encumbrance thereof shall be
void and unenforceable against the Company or any affiliate.

            12. ADMINISTRATION

            The Plan shall be administered by the Compensation Committee (the
"Committee") designated by the Board of Directors of the Company to administer
the Plan, which committee shall be composed of persons then serving as Directors
of the Company. The Committee shall have full authority to:

            (i) determine when and how Purchase Rights shall be granted and the
provisions of each Offering of such Purchase Rights;

            (ii) designate from time to time which subsidiaries of the Company
shall be eligible to participate in the Plan;

            (iii) construe and interpret the Plan and Purchase Rights granted
under the Plan;

            (iv) establish rules for the administration of the Plan and make
administrative decisions regarding the Plan; and

            (v) remedy any defect, or omission or inconsistency in the Plan in a
manner and to the extent necessary or expedient to make the Plan fully
effective.

            All designations, determinations, interpretations, and other
decisions made by the Committee under or with respect to the Plan shall be
final, conclusive, and binding upon all persons, including the Company, any
affiliate, any Participant, any holder or beneficiary of any right of
participation, and any employee of the Company or of any affiliate.

            The Committee may delegate any one or more of its administrative
functions (other than those set forth in (i) and (ii) above) to any
individual(s) of its choice, in which case the use of the term "Committee" when
used in reference to such functions under the Plan shall refer to such
delegatee.

            13. ADJUSTMENT UPON CHANGES IN SECURITIES; CORPORATE TRANSACTIONS.

            (a) In the event a stock dividend, extraordinary cash dividend,
spin-off, split-up, combination, exchange of shares, merger, consolidation,
reorganization, recapitalization, or other similar corporate event affects the
Common Stock such that an adjustment is required in order to preserve the

<PAGE>

benefits or potential benefits intended to be made available under the Plan,
then the Committee shall, in its sole discretion, and in such manner as the
Committee may deem equitable, adjust the maximum number of shares available
under the Plan, the number and kind of shares subject to outstanding rights to
purchase, and the terms relating to the purchase price with respect to such
outstanding rights and take such other actions as the Committee, in its opinion,
deems appropriate under the circumstances.

            (b) In the event of a Corporate Transaction, then (i) any surviving
or acquiring entity may continue or assume the Purchase Rights outstanding under
the Plan or may substitute similar rights (including a right to acquire the same
consideration paid to stockholders in the Corporate Transaction) for those
outstanding under the Plan, or (ii) if any surviving or acquiring entity does
not assume such Purchase Rights or substitute similar rights for Purchase Rights
outstanding under the Plan, then the Participants' accumulated Payroll
Deductions shall be used to purchase shares of Common Stock immediately prior to
the Corporate Transaction under the then ongoing Offering, and the Participants'
Purchase Rights under the ongoing Offering shall terminate immediately after
such purchase.

            14. AMENDMENT OR TERMINATION

            The Board of Directors of the Company may, from time to time amend,
suspend or discontinue this Plan for the purpose of meeting any changes in legal
requirements or for any other purpose permitted by law; provided however that
shareholder approval will be required for any amendment that (i) increases the
number of shares of Common Stock that can be issued under the Plan (except for
any adjustment authorized in Paragraph 12(a), or (ii) changes the corporations
whose employees may be offered Purchase Rights under the Plan (except for
changes authorized in Paragraph 2(i). The Committee may also amend or alter the
Plan from time to time in a manner not inconsistent with the Board's power to
amend, suspend or discontinue the Plan.

            15. SHARES OF COMMON STOCK SUBJECT TO THE PLAN; SHAREHOLDER APPROVAL

            (a) The number of shares of Common Stock that may be purchased
through the exercise of Purchase Rights under the Plan shall not exceed one
hundred fifty-thousand (150,000) shares. The shares subject to purchase under
the Plan may consist, in whole or in part, of authorized but unissued shares,
not reserved for any other purpose, or shares acquired by the Plan Administrator
in the market. If any Purchase Right or portion thereof terminates for any
reason without being exercised, then the shares not purchased under such
Purchase Right shall again become available for issuance under the Plan.

            (b) The Plan will be submitted for the approval of the Company's
shareholders within twelve (12) months before or after the Effective Date. No
Purchase Rights may be exercised prior to such shareholder approval. If Company
shareholders do not grant such approval, this Plan shall be rendered void and
without effect and any Payroll Deductions collected from Participants shall be
refunded.

<PAGE>

            16. DEFINITIONS

            Whenever used herein, the following terms shall have the respective
meanings set forth below:

"Board" means the Board of Directors of the Company. Any power reserved to the
Board hereunder may be exercised by the Committee or by any other duly
authorized committee of the Board that the Board may designate from time to
time.

"Committee" means the Executive Compensation and Development Committee, or a
successor committee, appointed by the Board in accordance with Paragraph 12.

"Company" means CAS Medical Systems, Inc. and any successor thereto.

"Corporate Transaction" means the occurrence, in a singe transaction or in a
series of related transactions of any one or more of the following events:

            (i) a sale, lease, license or other disposition of all or
substantially all of the assets of the Company;

            (ii) a sale or other disposition of more than 50% of the outstanding
securities of the Company;

            (iii) a merger, consolidation or similar transaction following which
the Company is the surviving corporation, but the shares of Common Stock
outstanding immediately preceding such transaction are converted or exchanged by
virtue of the merger, consolidation or similar transaction into other property,
whether in the form of cash, securities, or otherwise; or

            (iv) a merger, consolidation or similar transaction following which
the Company is not the surviving corporation.

"Disposes" means, for purposes of Paragraph 4(f), any sale or disposition of
Shares or the withdrawal of Shares from the Book Account maintained for a
Participant by the Plan Administrator.

"Effective Date" means July 1, 2004.

"Fair Market Value" means, on any date, the average of the high and the low
price of a share of Common Stock as reported on the OTC Bulletin Board, or any
other established stock exchange on which the Common Stock is traded.

"Offering" means the grant to Eligible Employees of Purchase Rights to purchase
shares of Common Stock under the Plan.

<PAGE>

"Offering Date" means the date selected by the Committee for an Offering to
commence, which unless otherwise specified by the Committee shall be January 1
and July 1 of each year. The Offering Date shall be the date on which the
Purchase Right is granted in accordance with Treasury Regulation Section
1.421-7(c)(1).

"Plan Administrator" means the Committee, unless the Committee has delegated the
particular administrative function to another person in accordance with
Paragraph 12, in which case "Plan Administrator" shall refer to that person as
regards that particular function.

"Purchase Date" means the date on which Purchase Rights granted under the Plan
shall be exercised and as of which purchases of shares of Common Stock shall be
carried out in accordance with such Offering.

"Purchase Right" means a right to purchase shares of Common Stock granted
pursuant to the Plan.

Dated as of February 19, 2004EXHIBIT 4.3
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              CAS MEDICAL SYSTEMS, INC. 2003 EQUITY INCENTIVE PLAN
              ----------------------------------------------------

            SECTION 1.  PURPOSE.

            The purposes of this CAS Medical Systems, Inc. 2003 Equity Incentive
Plan (the "PLAN") are (1) to make available to key employees and directors
certain compensatory arrangements related to the growth in value of the common
stock of the Company so as to generate an increased incentive to contribute to
the Company's future financial success and prosperity, (2) to enhance the
ability of the Company and its Affiliates to attract and retain exceptionally
qualified individuals whose efforts can affect the financial growth and
profitability of the Company, and (3) to align generally the interests of key
employees and directors of the Company and its Affiliates with the interests of
the Company's stockholders.

            SECTION 2.  DEFINITIONS.

            As used in the Plan, the following terms shall have the meanings set
forth below:

            (a) "AFFILIATE" shall mean (i) any entity that, directly or through
one or more intermediaries, is controlled by the Company or (ii) any entity in
which the Company has a significant equity interest, as determined by the
Committee.

            (b) "AWARD" shall mean any Option, Restricted Stock Award,
Restricted Stock Unit, Dividend Equivalent, Other Stock-Based Award, Performance
Award or Substitute Award, granted under the Plan.

            (c) "AWARD AGREEMENT" shall mean any written agreement, contract, or
other instrument or document evidencing any Award granted under the Plan.

            (d) "BOARD OF DIRECTORS" shall mean the Board of Directors of the
Company as it may be composed from time to time.

            (e) "CODE" shall mean the Internal Revenue Code of 1986, as amended
from time to time, or any successor code thereto.

            (f) "COMMITTEE" shall mean the Board of Directors, excluding any
director who is not a "Non-Employee Director" within the meaning of Rule 16b-3,
or any such other committee designated by the Board of Directors to administer
the Plan, which committee shall be composed of not less than the minimum number
of members of the Board of Directors from time to time required by Rule 16b-3 or
any applicable law, each of whom is a Non-Employee Director within the meaning
of Rule 16b-3.

            (g) "COMPANY" shall mean CAS Medical Systems, Inc., or any successor
thereto.

            (h) "COMPANY SERVICE" shall mean any service with the Company or any
Affiliate in which the Company have at least a 51% ownership interest.

            (i) "COVERED AWARD" means an Award, other than an Option or other
Award with an exercise price per Share not less than the Fair Market Value of a
Share on the date of grant of such Award, to a Covered Employee, if it is
designated as such by the Committee at the time it is granted. Covered Awards
are subject to the provisions of Section 13 of this Plan.
<PAGE>

            (j) "COVERED EMPLOYEES" means Participants who are designated by the
Committee prior to the grant of an Award who are, or are expected to be at the
time taxable income will be realized with respect to the Award, "COVERED
EMPLOYEES" within the meaning of Section 162(m).

            (k) "DIVIDEND EQUIVALENT" shall mean any right granted under Section
6(c) of the Plan.

            (l) "EFFECTIVE DATE" shall mean the date that the Plan was approved
by the Board of Directors of the Company.

            (m) "EMPLOYEE" shall mean any employee or employee director of the
Company or of any Affiliate.

            (n) "FAIR MARKET VALUE" shall mean, with respect to any property
(including, without limitation, any Shares or other securities), the fair market
value of such property determined by such methods, or procedures as shall be
established from time to time by the Committee.

            (o) "INCENTIVE STOCK OPTION" or "ISO" shall mean an option granted
under Section 6(a) of the Plan that is intended to meet the requirements of
Section 422 of the Code, or any successor provision thereto.

            (p) "NON-QUALIFIED STOCK OPTION" shall mean an option granted under
Section 6(a) of the Plan that is not intended to be an Incentive Stock Option.

            (q) "OPTION" shall mean an Incentive Stock Option or a Non-Qualified
Stock Option.

            (r) "OTHER STOCK-BASED AWARD" shall mean any Award granted under
Section 6(d) of the Plan.

            (s) "PARTICIPANT" shall mean an Employee or member of the Board of
Directors who is granted an Award under the Plan.

            (t) "PERFORMANCE AWARD" shall mean any Award granted hereunder that
complies with Section 6(e)(ii) of the Plan.

            (u) "PERFORMANCE GOALS" means one or more objective performance
goals, established by the Committee at the time an Award is granted, and based
upon the attainment of targets for one or any combination of the following
criteria, which may be determined solely by reference to the Company's
performance or the performance of a subsidiary or an Affiliate (or any business
unit thereof) or based on comparative performance relative to other companies:
(i) net income; (ii) earnings before income taxes; (iii) earnings per share;
(iv) return on stockholders' equity; (v) expense management; (vi) profitability
of an identifiable business unit or product; (vii) revenue growth; (viii)
earnings growth; (ix) total stockholder return; (x) cash flow; (xi) return on
assets; (xii) pre-tax operating income; (xiii) net economic profit (operating
earnings minus a charge for capital); (xiv) customer satisfaction; (xv) provider
satisfaction; (xvi) employee satisfaction; (xvii) strategic innovation; or
(xviii) any combination of the foregoing. Performance Goals shall be set by the
Committee within the time period prescribed by Section 162(m).

            (v) "PERSON" shall mean any individual, corporation, partnership,
association, joint-stock company, trust, unincorporated organization, or
government or political subdivision thereof.

            (w) "RELEASED SECURITIES" shall mean securities that were Restricted
Securities with respect to which all applicable restrictions have expired,
lapsed, or been waived.

            (x) "RESTRICTED SECURITIES" shall mean Awards of Restricted Stock or
other Awards under which issued and outstanding Shares are held subject to
certain restrictions.

            (y) "RESTRICTED STOCK" shall mean any Share granted under Section
6(b) of the Plan.

                                      -2-
<PAGE>

            (z) "RESTRICTED STOCK UNIT" shall mean any right granted under
Section 6(b) of the Plan that is denominated in Shares.

            (aa) "RULE 16B-3" shall mean Rule 16b-3 promulgated by the
Securities and Exchange Commission under the Securities Exchange Act of 1934 as
amended, or any successor rule and the regulation thereto.

            (bb) "SECTION 162(M)" means Section 162(m) of the Code or any
successor thereto, and the Treasury Regulations thereunder.

            (cc) "SHARE" or "SHARES" shall mean share(s) of the common stock of
the Company, and such other securities or property as may become the subject of
Awards pursuant to the adjustment provisions of Section 4(c).

            (dd) "SUBSTITUTE AWARD" shall mean an Award granted in assumption
of, or in substitution for, an outstanding award previously granted by a company
acquired by the Company or with which the Company combines.

            SECTION 3.  ADMINISTRATION.

            (a) The Plan shall be administered by the Committee. Subject to the
terms of the Plan and applicable law, the Committee shall have full power and
authority to designate Participants and:

            (i)     determine the type or types of Awards to be granted to each
                    Participant under the Plan;

            (ii)    determine the number of Shares to be covered by (or with
                    respect to which payments, rights, or other matters are to
                    be calculated in connection with) Awards;

            (iii)   determine the terms and conditions of any Award;

            (iv)    determine whether, to what extent, and under what
                    circumstances Awards may be settled or exercised in cash,
                    Shares, other securities, other Awards, or other property,
                    or to what extent, and under what circumstances Awards may
                    be canceled, forfeited, or suspended, and the method or
                    methods by which Awards may be settled, exercised, canceled,
                    forfeited, or suspended;

            (v)     determine whether, to what extent, and under what
                    circumstances cash, Shares, other securities, other Awards,
                    other property, and other amounts payable with respect to an
                    Award under the Plan shall be deferred either automatically
                    or at the election of the holder thereof or of the
                    Committee;

            (vi)    interpret and administer the Plan and any instrument or
                    agreement relating to the Plan, or any Award made under the
                    Plan, including any Award Agreement;

            (vii)   establish, amend, suspend, or reconcile such rules and
                    regulations and appoint such agents as it shall deem
                    appropriate for the proper administration of the Plan; and

            (viii)  make any other determination and take any other action that
                    the Committee deems necessary or desirable for the
                    administration of the Plan.

            (b) Unless otherwise expressly provided in the Plan, all
designations, determinations, interpretations, and other decisions under or with
respect to the Plan, any Award, or any Award Agreement, shall be within the sole
discretion of the Committee, may be made at any time, and shall be final,
conclusive, and binding upon all Persons, including the Company, any Affiliate,
any Participant, any holder or beneficiary of any Award, and any employee of the
Company or of any Affiliate.

                                      -3-
<PAGE>

            (c) The Committee may delegate to one or more executive officers of
the Company or to a committee of executive officers of the Company the authority
to grant Awards to Employees who are not officers or directors of the Company
and to amend, modify, cancel or suspend Awards to such employees, subject to
Sections 7 and 9.

            SECTION 4.  SHARES AVAILABLE FOR AWARDS.

            (a) Maximum Shares Available. The maximum number of Shares that may
be issued to Participants pursuant to Awards under the Plan shall be 1,000,000
Shares (the "PLAN MAXIMUM"), subject to adjustment as provided in Section 4(c)
below. Only 250,000 Shares may be issued pursuant to Awards of Restricted Stock
and Restricted Stock Units under Section 6(b) of the Plan. Pursuant to any
Awards, the Company may in its discretion issue treasury Shares or authorized
but previously unissued Shares pursuant to Awards hereunder. For the purpose of
accounting for Shares available for Awards under the Plan, the following shall
apply:

            (i)     Only Shares relating to Awards actually issued or granted
                    hereunder shall be counted against the Plan Maximum. Shares
                    corresponding to Awards that by their terms expired, or that
                    are forfeited, canceled or surrendered to the Company
                    without full consideration paid therefor shall not be
                    counted against the Plan Maximum.

            (ii)    Shares that are forfeited by a Participant after issuance,
                    or that are reacquired by the Company after issuance without
                    full consideration paid therefor, shall be deemed to have
                    never been issued under the Plan and accordingly shall not
                    be counted against the Plan Maximum.

            (iii)   Awards not denominated in Shares shall be counted against
                    the Plan Maximum in such amount and at such time as the
                    Committee shall determine under procedures adopted by the
                    Committee consistent with the purposes of the Plan.

            (iv)    Substitute Awards shall not be counted against the Plan
                    Maximum, and clauses (i) and (ii) of this Section shall not
                    apply to such Awards.

            (v)     The maximum number of Shares that may be the subject of
                    Awards made to a single Participant in any two year period
                    shall be 750,000.

            (vi)    With respect to any performance period no Participant may be
                    granted Awards of incentive stock or incentive units that
                    vest upon the achievement of performance objectives in
                    respect of more than 750,000 Shares of common stock or, if
                    such Awards are settled in cash, the fair market value
                    thereof determined at the time of payment, each subject to
                    adjustment as provided in Section 4(c) below.

            (b) Shares Available for ISOs. The maximum number of Shares for
which ISOs may be granted under the Plan shall not exceed the Plan Maximum as
defined in Section 4(a) above, subject to adjustment as provided in Section 4(c)
below.

            (c) Adjustments to Avoid Dilution. Notwithstanding paragraphs (a)
and (b) above, in the event of a stock or extraordinary cash dividend, split-up
or combination of Shares, merger, consolidation, reorganization,
recapitalization, or other change in the corporate structure or capitalization
affecting the outstanding common stock of the Company, such that an adjustment
is determined by the Committee to be appropriate in order to prevent dilution or
enlargement of the benefits or potential benefits intended to be made available
under the Plan or any Award, then the Committee may make appropriate adjustments
to (i) the number or kind of Shares available for the future granting of Awards
hereunder, (ii) the number and type of Shares subject to outstanding Awards, and
(iii) the grant, purchase, or exercise price with respect to any Award; or if it
deems such action appropriate, the Committee may make provision for a cash
payment to the holder of an outstanding Award; PROVIDED, HOWEVER, that with
respect to any ISO no such adjustment shall be authorized to the extent that
such would cause the ISO to violate Code

                                      -4-
<PAGE>

Section 422 or any successor provision thereto. The determination of the
Committee as to the adjustments or payments, if any, to be made shall be
conclusive.

            (d) Other Plans. Shares issued under other plans of the Company
shall not be counted against the Plan Maximum under the Plan.

            SECTION 5.  ELIGIBILITY.

            Any director of the Company or any Employee shall be eligible to be
designated a Participant.

            SECTION 6.  AWARDS.

            (a) Options. The Committee is hereby authorized to grant Options to
Participants with the following terms and conditions and with such additional
terms and conditions, not inconsistent with the provisions of the Plan, as the
Committee shall determine:

            (i)     EXERCISE PRICE. The exercise price per Share under an Option
                    shall be determined by the Committee; provided, however,
                    that except in the case of Substitute Awards, no Option
                    granted hereunder may have an exercise price of less than
                    100% of Fair Market Value of a Share on the date of grant.

            (ii)    TIMES AND METHOD OF EXERCISE. The Committee shall determine
                    the time or times at which an Option may be exercised in
                    whole or in part; in no event, however, shall the period for
                    exercising an Option extend more than 10 years from the date
                    of grant. The Committee shall also determine the method or
                    methods by which Options may be exercised, and the form or
                    forms (including without limitation, cash, Shares, other
                    Awards, or other property, or any combination thereof,
                    having a Fair Market Value on the exercise date equal to the
                    relevant exercise price), in which payment of the exercise
                    price with respect thereto may be made or deemed to have
                    been made.

            (iii)   INCENTIVE STOCK OPTIONS. The terms of any Incentive Stock
                    Option granted under the Plan shall comply in all respects
                    with the provisions of Section 422 of the Code, or any
                    successor provision thereto, and any regulations promulgated
                    thereunder.

            (iv)    TERMINATION. In the event that a Participant terminates
                    employment or director status or becomes disabled, Options
                    granted hereunder shall be exercisable only as specified
                    below:

                    (A) DISABILITY OR DEATH. Except as otherwise provided in an
                    employment agreement with a Participant or as the Committee
                    may otherwise provide, if a Participant becomes disabled or
                    dies, any outstanding Option granted to such a Participant,
                    whether or not full or partial vesting has occurred with
                    respect to such Option at the time of the disability or
                    death, shall be exercisable during the ten (10) year period
                    beginning on the date of grant (or during such shorter
                    period if the original term is less than ten (10) years)
                    even though the disability or death occurs prior to the last
                    day of such option term. Any vesting requirements under the
                    Option shall be deemed to be satisfied as of the date of
                    disability or death.

                    (B) TERMINATION FOR REASONS OTHER THAN DEATH OR DISABILITY.
                    Except as otherwise provided in an employment agreement with
                    a Participant or as the Committee may otherwise provide, if
                    a Participant terminates employment or director status for
                    reasons other than death or disability, any vested,
                    unexercised portion of an Option that is at least partially
                    vested at the time of the termination shall be forfeited in
                    its entirety if not exercised by the Participant within
                    three (3) months of the date of termination of employment or
                    director status, unless the Committee has in its sole
                    discretion established an additional exercise period (but in
                    any case not longer than the original option term). Any
                    portion of such partially vested Option that is not vested
                    at the time of

                                      -5-
<PAGE>

                    termination shall be forfeited unless the Committee has in
                    its sole discretion established that a Participant may
                    continue to satisfy the vesting requirements beyond the date
                    of his or her termination of employment or director status.
                    Except as otherwise provided in an employment agreement with
                    a Participant, any outstanding Option granted to a
                    Participant terminating employment or director status other
                    than for death or disability, for which no vesting has
                    occurred at the time of the termination shall be forfeited
                    on the date of termination and the Committee shall have no
                    discretion to extend the exercise period of such Option.

                    (C) SALE OF BUSINESS. Except as otherwise provided in an
                    employment agreement with a Participant or as the Committee
                    may otherwise provide, in the event the "BUSINESS UNIT,"
                    (defined as a division, subsidiary, unit or other
                    delineation that the Committee in its sole discretion may
                    determine) for which the Participant performs substantially
                    all of his or her services is assigned, sold, outsourced or
                    otherwise transferred, including an asset, stock or joint
                    venture transaction, to an unrelated third party such that
                    after such transaction the Company owns or controls directly
                    or indirectly less than 51% of the business unit, the
                    affected Participant shall become 100% vested in all
                    outstanding Options as of the date of the closing of such
                    transaction, whether or not fully or partially vested, and
                    such Participant shall be entitled to exercise such Options
                    during the three (3) months following the closing of such
                    transaction, unless the Committee has in its sole discretion
                    established an additional exercise period (but in any case
                    not longer than the original option term). Except as
                    otherwise provided in an employment agreement with a
                    Participant or as the Committee may otherwise provide, all
                    Options which are unexercised at the end of such three (3)
                    months shall be automatically forfeited.

                    (D) CONDITIONS IMPOSED ON UNVESTED OPTIONS. Notwithstanding
                    the foregoing provisions describing the additional exercise
                    periods for Options upon termination of employment or
                    director status, the Committee may in its sole discretion
                    condition the right of a Participant to exercise any portion
                    of a partially vested Option for which the Committee has
                    established an additional exercise period on the
                    Participant's agreement to adhere to such conditions and
                    stipulations which the Committee may impose, including, but
                    not limited to, restrictions on the solicitation of
                    employees or independent contractors, disclosure of
                    confidential information, covenants not to compete,
                    refraining from denigrating through adverse or disparaging
                    communication, written or oral, whether or not true, the
                    operations, business, management, products or services of
                    the Company or its current or former employees and
                    directors, including without limitation, the expression of
                    personal views, opinions or judgements. The unvested Options
                    of any Participant for whom the Committee has given an
                    additional exercise period subject to such conditions
                    subsequent as set forth in this Section 6(a)(iv)(D) shall be
                    forfeited immediately upon a breach of such conditions.

                    (E) FORFEITURE FOR GROSS MISCONDUCT. Notwithstanding
                    anything to the contrary herein, any Participant who engages
                    in "GROSS MISCONDUCT", as defined herein, (including any
                    Participant who may otherwise qualify for disability status)
                    shall forfeit all outstanding, unexercised Options, whether
                    vested or unvested, as of the date such Gross Misconduct
                    occurs. For purposes of the Plan, Gross Misconduct shall be
                    defined to mean (i) the Participant's conviction of a felony
                    (or crime of similar magnitude in non-U.S. jurisdictions) in
                    connection with the performance or nonperformance of the
                    Participant's duties or (ii) the Participant's willful act
                    or failure to act in a way that results in material injury
                    to the business or reputation of the Company or employees of
                    the Company.

                    (F) VESTING. For purposes of the Plan, any reference to the
                    "VESTING" of an Option shall mean any events or conditions
                    which, if satisfied, entitle a Participant to exercise an
                    Option with respect to all or a portion of the shares
                    covered by the Option. The complete vesting of an Option
                    shall be subject to Section 6(a)(iv)(E) hereof. Such vesting
                    events or conditions may be set forth in the Notice of Grant
                    or otherwise be determined by the Committee.

                                      -6-
<PAGE>

            (b) Restricted Stock and Restricted Stock Units. The Committee is
hereby authorized to grant Awards of Restricted Stock and or Restricted Stock
Units to Participants with the following terms and conditions.

            (i)     RESTRICTIONS. Shares of Restricted Stock and Restricted
                    Stock Units shall be subject to such restrictions as the
                    Committee may impose (including, without limitation,
                    continued employment or director service over a specified
                    period or the attainment of specified Performance Objectives
                    (as defined in Section 6(e)(ii)(B)) or Performance Goals, in
                    accordance with Section 13), which restrictions may lapse
                    separately or concurrently at such time or times, in such
                    installments or otherwise, as the Committee may deem
                    appropriate. Notwithstanding the foregoing and except as
                    provided in Section 8(a)(ii) below, (A) any Awards of
                    Restricted Stock or Restricted Stock Units as to which the
                    sole restriction relates to the passage of time and
                    continued employment or director service must have a
                    restriction period of not less than three years and (B) any
                    Award not described in Clause (A) must have a restriction
                    period of not less than one year subject, in the case of
                    both (A) and (B), to the proviso to Section 6(b)(iii) below.

            (ii)    REGISTRATION. Any Restricted Stock granted under the Plan
                    may be evidenced in such manner as the Committee may deem
                    appropriate including, without limitation, book-entry
                    registration or issuance of a stock certificate or
                    certificates. In the event any stock certificate is issued
                    in respect of Shares of Restricted Stock granted under the
                    Plan, such 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 such Restricted Stock.

            (iii)   TERMINATION. Except as otherwise provided in an employment
                    agreement with a Participant or as the Committee may
                    otherwise provide, upon termination of employment or
                    director service of a Participant for any reason during the
                    applicable restriction period, all Restricted Stock and all
                    Restricted Stock Units, or portion thereof, still subject to
                    restriction shall be forfeited and reacquired by the
                    Company; provided, however, that in the event termination of
                    employment or director service is due to the death or
                    disability of the Participant, the Committee may waive in
                    whole or in part any or all remaining restrictions with
                    respect to Restricted Stock or Restricted Stock Units.

            (c) Dividend Equivalents. The Committee may grant to Participants
Dividend Equivalents under which the holders thereof shall be entitled to
receive payments equivalent to dividends with respect to a number of Shares
determined by the Committee, and the Committee may provide that such amounts
shall be deemed to have been reinvested in additional Shares or otherwise
reinvested. Subject to the terms of the Plan, such Awards may have such terms
and conditions as the Committee shall determine.

            (i)     TERMINATION. Except as otherwise provided in an employment
                    agreement with a Participant or as the Committee may
                    otherwise provide, upon termination of the Participant's
                    employment or director service for any reason during the
                    term of a Dividend Equivalent, the right of a Participant to
                    payment under a Dividend Equivalent shall terminate as of
                    the date of termination; provided, however, that in the
                    event the Participant's employment or director service
                    terminates because of the death or disability of a
                    Participant the Committee may determine that such right
                    terminates at a later date.

            (d) Other Stock-Based Awards. The Committee is hereby authorized to
grant to Participants such other Awards that are denominated or payable in,
valued in whole or in part by reference to, or otherwise based on or related to
Shares (including without limitation securities convertible into Shares), as are
deemed by the Committee to be consistent with the purposes of the Plan;
provided, however, that such grants must comply with Rule 16b-3 and applicable
law.

                                      -7-
<PAGE>

            (i)     CONSIDERATION. If applicable, Shares or other securities
                    delivered pursuant to a purchase right granted under this
                    Section 6(d) shall be purchased for such consideration,
                    which may be paid by such method or methods and in such form
                    or forms, including without limitation cash, Shares, other
                    securities, other Awards or other property, or any
                    combination thereof, as the Committee shall determine;
                    provided, however, that except in the case of Substitute
                    Awards, no derivative security (as defined in Rule 16b-3)
                    awarded hereunder may have an exercise price of less than
                    100% of Fair Market Value of a Share on the date of grant.

            (ii)    TERMINATION. In granting any Stock-Based Award pursuant to
                    this Section 6(d) the Committee shall also determine what
                    effect the termination of employment or director service of
                    the Participant holding such Award shall have on the rights
                    of the Participant pursuant to the Award.

            (e) General. The following general provisions shall apply to all
Awards granted hereunder, subject to the terms of other sections of this Plan or
any Award Agreement.

            (i)     AWARD AGREEMENTS. Each Award granted under this Plan shall
                    be evidenced by an Award Agreement which shall specify the
                    relevant material terms and conditions of the Award and
                    which shall be signed by the Participant receiving such
                    Award, if so indicated by the Award.

            (ii)    PERFORMANCE AWARDS. Subject to the other terms of this Plan,
                    the payment, release or exercisability of any Award, in
                    whole or in part, may be conditioned upon the achievement of
                    such Performance Objectives (as defined below) during such
                    performance periods as are specified by the Committee.
                    Hereinafter in this Section 6(e)(ii) the terms payment, pay,
                    and paid also refer to the release or exercisability of a
                    Performance Award, as the case may require.

                    (A) TERMS. The Committee shall establish the terms and
                    conditions of any Performance Award including the
                    Performance Objectives (as defined below) to be achieved
                    during any performance period, the length of any performance
                    period, any event the occurrence of which will entitle the
                    holder to payment, and the amount of any Performance Award
                    granted.

                    (B) PERFORMANCE OBJECTIVES. The Committee shall establish
                    "PERFORMANCE OBJECTIVES" the achievement of which shall
                    entitle the Participant to payment under a Performance
                    Award. Performance Objectives may be any measure of the
                    business performance of the Company, or any of its divisions
                    or Affiliates, including but not limited to the growth in
                    book or market value of capital stock, the increase in the
                    earnings in total or per share, or any other financial or
                    non-financial indicator specified by the Committee.

                    (C) FULFILLMENT OF CONDITIONS AND PAYMENT. The Committee
                    shall determine in a timely manner whether all or part of
                    the conditions to payment of a Performance Award have been
                    fulfilled and, if so, the amount, if any, of the payment to
                    which the Participant is entitled.

            (iii)   RULE 16B-3 SIX MONTH LIMITATIONS. To the extent required in
                    order to render the grant of an Award, the exercise of an
                    Award or any derivative security, or the sale of securities
                    corresponding to an Award, an exempt transaction under
                    Section 16(b) of the Securities Exchange Act of 1934 only,
                    any equity security granted under the Plan to a Participant
                    must be held by such Participant for at least six months
                    from the date of grant, or in the case of a derivative
                    security granted pursuant to the Plan to a Participant, at
                    least six months must elapse from the date of acquisition of
                    the derivative security to the date of disposition of the
                    derivative security (other than upon exercise or conversion)
                    or its underlying equity security. Terms used in the
                    preceding sentence shall, for the purposes of such sentence
                    only, have the meanings if any, assigned or attributed to
                    them under Rule 16b-3.

                                      -8-
<PAGE>

            (iv)    LIMITS ON TRANSFER OF AWARDS. No Award (other than Released
                    Securities), and no right under any such Award shall be
                    assignable, alienable, pledgeable, attachable, encumberable,
                    saleable, or transferable by a Participant other than by
                    will or by the laws of descent and distribution or pursuant
                    to a domestic relations order (or, in the case of Awards
                    that are forfeited or canceled, to the Company); and any
                    purported assignment, sale, transfer, thereof shall be void
                    and unenforceable against the Company or Affiliate. If the
                    Committee so indicates in writing to a Participant, he or
                    she may designate one or more beneficiaries who may exercise
                    the rights of the Participant and receive any property
                    distributable with respect to any Award upon the death of
                    the Participant.

            (v)     EXERCISABILITY. Each Award, and each right under any Award,
                    shall be exercisable, during the Participant's lifetime only
                    by the Participant or, if permissible under applicable law,
                    by the Participant's guardian or legal representative or by
                    a transferee receiving such Award pursuant to a domestic
                    relations order referred to above.

            (vi)    NO CASH CONSIDERATION FOR AWARDS. Awards may be granted for
                    no cash consideration, or for such minimal cash
                    consideration as the Committee may specify, or as may be
                    required by applicable law.

            (vii)   AWARDS MAY BE GRANTED SEPARATELY OR TOGETHER. Awards may, in
                    the discretion of the Committee, be granted either alone or
                    in addition to, in tandem with, or in substitution for any
                    other Award or any award granted under any other plan of the
                    Company or any Affiliate. Awards granted in addition to or
                    in tandem with other Awards or in addition to or in tandem
                    with awards granted under any other plan of the Company or
                    any Affiliate may be granted either at the same time as or
                    at a different time from the grant of such other Awards or
                    awards. Performance Awards and Awards which are not
                    Performance Awards may be granted to the same Participant.

            (viii)  FORMS OF PAYMENT UNDER AWARDS. Subject to the terms of the
                    Plan and of any applicable Award Agreement, payments or
                    transfers to be made by the Company or an Affiliate upon the
                    grant, exercise, or payment of an Award may be made in such
                    form or forms as the Committee shall determine, including,
                    without limitation, cash, Shares, other securities, other
                    Awards, or other property, or any combination thereof, and
                    may be made in a single payment or transfer, in
                    installments, or on a deferred basis, in each case in
                    accordance with rules and procedures established by the
                    Committee. Such rules and procedures may include, without
                    limitation, provisions for the payment or crediting of
                    reasonable interest on installment or deferred payments or
                    the grant or crediting of Dividend Equivalents in respect of
                    installment or deferred payments.

            (ix)    TERM OF AWARDS. Except as provided in Sections 6(a)(ii) or
                    6(a)(iv), the term of each Award shall be for such period as
                    may be determined by the Committee.

            (x)     SHARE CERTIFICATES. All certificates for Shares or other
                    securities delivered under the Plan pursuant to any Award or
                    the exercise thereof shall be subject to such stop transfer
                    orders and other restrictions as the Committee may deem
                    advisable under the Plan or the rules, regulations, and
                    other requirements of the Securities and Exchange
                    Commission, any stock exchange upon which such Shares or
                    other securities 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 such certificates to make
                    appropriate reference to such restrictions. Unrestricted
                    certificates representing Shares, evidenced in such manner
                    as the Committee shall deem appropriate, shall be delivered
                    to the holder of Restricted Stock, Restricted Stock Units or
                    any other relevant Award promptly after such related Shares
                    shall become Released Securities.

                                      -9-
<PAGE>

            SECTION 7.  AMENDMENT AND TERMINATION OF AWARDS.

            Except to the extent prohibited by applicable law and unless
otherwise expressly provided in an Award Agreement or in the Plan, the following
shall apply to all Awards.

            (a) Amendments to Awards. Subject to Section 6(b)(i), the Committee
may waive any conditions or rights under, amend any terms of, or amend, alter,
suspend, discontinue, cancel or terminate, any Award heretofore granted without
the consent of any relevant Participant or holder or beneficiary of an Award;
provided, however, that no such amendment, alteration, suspension,
discontinuance, cancellation or termination that would be adverse to the holder
of such Award may be made without such holder's consent. Notwithstanding the
foregoing, the Committee shall not amend any outstanding Option to change the
exercise price thereof to any price that is lower than the original exercise
price thereof except in connection with an adjustment authorized under Section
4(c).

            (b) Adjustments of Awards Upon Certain Acquisitions. In the event
the Company or an Affiliate shall issue Substitute Awards, the Committee may
make such adjustments, not inconsistent with the terms of the Plan, in the terms
of Awards as it shall deem appropriate in order to achieve reasonable
comparability or other equitable relationship between the assumed awards and the
Substitute Awards granted under the Plan.

            (c) Adjustments of Awards Upon the Occurrence of Certain Unusual or
Nonrecurring Events. The Committee shall be authorized to make adjustments in
the terms and conditions of, and the criteria included in, Awards in recognition
of unusual or nonrecurring events (including, without limitation, the events
described in Section 4(c) hereof) affecting the Company, any Affiliate, or the
financial statements of the Company or any Affiliate, or of changes in
applicable laws, regulations, or accounting principles, whenever the Committee
determines that such adjustments are appropriate in order to prevent dilution or
enlargement of the benefits or potential benefits to be made available under the
Plan or an Award Agreement.

            (d) Correction of Defects, Omissions, and Inconsistencies. The
Committee may correct any defect, supply any omission, or reconcile any
inconsistency in any Award Agreement in the manner and to the extent it shall
deem desirable to carry the Plan into effect.

            SECTION 8. ACCELERATION UPON A CHANGE OF CONTROL. In the event of a
Change of Control (as defined in Section 8(b) below) the following shall apply:

            (a)     Effect on Awards.

            (i)     OPTIONS. In the event of a Change of Control, (1) all
                    Options outstanding on the date of such Change of Control
                    shall become immediately and fully exercisable without
                    regard to any vesting schedule provided for in the Option.

            (ii)    RESTRICTED STOCK AND RESTRICTED STOCK UNITS. In the event of
                    a Change of Control, all restrictions applicable to any
                    Restricted Stock or Restricted Stock Unit shall terminate
                    and be deemed to be fully satisfied for the entire stated
                    restricted period of any such Award, and the total number of
                    underlying Shares shall become Released Securities. The
                    Participant shall immediately have the right to the prompt
                    delivery of certificates reflecting such Released
                    Securities.

            (iii)   DIVIDEND EQUIVALENTS. In the event of a Change of Control,
                    the holder of any outstanding Dividend Equivalent shall be
                    entitled to surrender such Award to the Company and to
                    receive payment of an amount equal to the amount that would
                    have been paid over the remaining term of the Dividend
                    Equivalent, as determined by the Committee.

            (iv)    OTHER STOCK-BASED AWARDS. In the event of a Change of
                    Control, all outstanding Other Stock-Based Awards of
                    whatever type shall become immediately vested and payable in
                    an amount that assumes that the Awards were outstanding for
                    the entire period stated therein, as determined by the
                    Committee.

                                      -10-
<PAGE>

            (v)     PERFORMANCE AWARDS. In the event of a Change of Control,
                    Performance Awards for all performance periods, including
                    those not yet completed, shall immediately become fully
                    vested and payable in accordance with the following:

                    (A) NON-FINANCIAL PERFORMANCE OBJECTIVES. The total amount
                    of Performance Awards conditioned on nonfinancial
                    Performance Objectives and those conditioned on financial
                    performance shall be immediately payable (or exercisable or
                    released, as the case may be) as if the Performance
                    Objectives had been fully achieved for the entire
                    performance period.

                    (B) FINANCIAL PERFORMANCE OBJECTIVES. For Performance Awards
                    conditioned on financial Performance Objectives and payable
                    in cash, the Committee shall determine the amount payable
                    under such Award by taking into consideration the actual
                    level of attainment of the Performance Objectives during
                    that portion of the performance period that had occurred
                    prior to the date of the Change of Control, and with respect
                    to the part of the performance period that had not occurred
                    prior to the date of the Change of Control, the Committee
                    shall determine an anticipated level of attainment taking
                    into consideration available historical data and the last
                    projections made by the Company's Chief Financial Officer
                    prior to the Change of Control. The amount payable shall be
                    the present value of the amount so determined by the
                    Committee discounted using a factor that is the Prime Rate
                    as established by Chase Manhattan Bank, N.A. as of the date
                    of the Change of Control.

            (vi)    DETERMINATION FINAL. The Committee's determination of
                    amounts payable under this Section 8(a) shall be final.
                    Except as otherwise provided in Section 8(a)(1), any amounts
                    due under this Section 8(a) shall be paid to Participants
                    within 30 days after such Change of Control.

            (vii)   EXCLUSION. The provisions of this Section 8(a) shall not be
                    applicable to any Award granted to a Participant if any
                    Change of Control results from such Participant's beneficial
                    ownership (within the meaning of Rule 13d-3 under the
                    Securities and Exchange Act of 1934, as amended (the
                    "EXCHANGE ACT")) of Shares or other Company common stock or
                    Company voting securities.

            (b)     Change of Control Defined. "A CHANGE OF CONTROL" shall be
                    deemed to have occurred if:

            (i)     there is an acquisition, in any one transaction or a series
                    of transactions, other than from the Company, by any
                    individual, entity or group (within the meaning of Section
                    13(d)(3) or 14(d)(2) of the Exchange Act), of beneficial
                    ownership (within the meaning of Rule 13(d)(3) promulgated
                    under the Exchange Act) of 50% or more of either the then
                    outstanding shares of Common Stock or the combined voting
                    power of the then outstanding voting securities of the
                    Company entitled to vote generally in the election of
                    directors, but excluding, for this purpose, any such
                    acquisition by the Company or any of its subsidiaries, or
                    any employee benefit plan (or related trust) of the Company
                    or its subsidiaries, or any corporation with respect to
                    which, following such acquisition, more than 50% of the then
                    outstanding shares of common stock of such corporation and
                    the combined voting power of the then outstanding voting
                    securities of such corporation entitled to vote generally in
                    the election of directors is then beneficially owned,
                    directly or indirectly, by the individuals and entities who
                    were the beneficial owners, respectively, of the common
                    stock and voting securities of the Company immediately prior
                    to such acquisition in substantially the same proportion as
                    their ownership, immediately prior to such acquisition, of
                    the then outstanding shares of Common Stock or the combined
                    voting power of the then outstanding voting securities of
                    the Company entitled to vote generally in the election of
                    directors, as the case may be; or

            (ii)    individuals who, as of March 1, 2003, constitute the Board
                    (as of such date, the "INCUMBENT BOARD") cease for any
                    reason to constitute at least a majority of the Board,
                    provided that any individual becoming a director subsequent
                    to March 1, 2003 whose election, or nomination for election
                    by the Company's stockholders, was approved by a vote of at
                    least a majority of the

                                      -11-
<PAGE>

                    directors then comprising the Incumbent Board shall be
                    considered as though such individual were a member of the
                    Incumbent Board, but excluding, for this purpose, any such
                    individual whose initial assumption of office is in
                    connection with an actual or threatened election contest
                    relating to the election of the directors of the Company (as
                    such terms are used in Rule 14(a)(11) or Regulation 14A
                    promulgated under the Exchange Act); or

            (iii)   there occurs either (A) the consummation of a
                    reorganization, merger or consolidation, in each case, with
                    respect to which the individuals and entities who were the
                    respective beneficial owners of the common stock and voting
                    securities of the Company immediately prior to such
                    reorganization, merger or consolidation do not, following
                    such reorganization, merger or consolidation, beneficially
                    own, directly or indirectly, more than 50% of, respectively,
                    the then outstanding shares of common stock and the combined
                    voting power of the then outstanding voting securities
                    entitled to vote generally in the election of directors, as
                    the case may be, of the corporation resulting from such
                    reorganization, merger or consolidation, or (B) an approval
                    by the stockholders of the Company of a complete liquidation
                    of dissolution of the Company or of the sale or other
                    disposition of all or substantially all of the assets of the
                    Company.

            SECTION 9.  AMENDMENT AND TERMINATION OF THE PLAN.

            Except to the extent prohibited by applicable law and unless
otherwise expressly provided in an Award Agreement or in the Plan, the Board of
Directors may amend, alter, suspend, discontinue, or terminate the Plan,
including without limitation any such action to correct any defect, supply any
omission or reconcile any inconsistency in the Plan, without the consent of any
stockholder, Participant, other holder or beneficiary of an Award, or Person;
provided that any such amendment, alteration, suspension, discontinuation, or
termination that would impair the rights of any Participant, or any other holder
or beneficiary of any Award heretofore granted shall not be effective without
the approval of the affected Participant(s); and PROVIDED further, that,
notwithstanding any other provision of the Plan or any Award Agreement, without
the approval of the stockholders of the Company no such amendment, alteration,
suspension, discontinuation or termination shall be made that would increase the
total number of Shares available for Awards under the Plan, except as provided
in Section 4 hereof.

            SECTION 10.  GENERAL PROVISIONS

            (a) No Rights to Awards. No Employee, Participant or other Person
shall have any claim to be granted any Award under the Plan, and there is no
obligation for uniformity of treatment of Employees, Participants, or holders or
beneficiaries of Awards under the Plan. The terms and conditions of Awards need
not be the same with respect to each recipient.

            (b) Withholding. The Company or any Affiliate shall be authorized to
withhold from any Award granted or any payment due or transfer made under any
Award or under the Plan the amount (in cash, Shares, other securities, other
Awards, or other property) of withholding taxes due in respect of an Award, its
exercise, or any payment or transfer under such Award or under the Plan and to
take such other action as may be necessary in the opinion of the Company or
Affiliate to satisfy all obligations for the payment of such taxes.

            (c) No Limit on Other Compensation Agreements. Nothing contained in
the Plan shall prevent the Company or any Affiliate from adopting or continuing
in effect other or additional compensation arrangements and such arrangements
may be either generally applicable or applicable only in specific cases.

            (d) No Right to Employment. The grant of an Award shall not be
construed as giving a Participant the right to be retained in the employ of the
Company or any Affiliate. Further, the Company or an Affiliate may at any time
dismiss a Participant from employment, free from any liability or any claim
under the Plan, unless otherwise expressly provided in the Plan or in any Award
Agreement.

                                      -12-
<PAGE>

            (e) Governing Law. The validity, construction, and effect of the
Plan and any rules and regulations relating to the Plan shall be determined in
accordance with the laws of the State of Delaware and applicable Federal law.

            (f) Severability. If any provision of the Plan or any Award is or
becomes or is deemed to be invalid, illegal, or unenforceable in any
jurisdiction, or as to any Person or Award, or would disqualify the Plan or any
Award under any law deemed applicable by the Committee, such provision shall be
construed or deemed amended to conform to applicable laws, or if it cannot be so
construed or deemed amended without, in the determination of the Committee,
materially altering the intent of the Plan or the Award, such provision shall be
stricken as to such jurisdiction, Person, or Award and the remainder of the Plan
and any such Award shall remain in full force and effect.

            (g) No Trust or Fund Created. Neither the Plan nor any Award shall
create or be construed to create a trust or separate fund of any kind or a
fiduciary relationship between the Company or any Affiliate and a Participant or
any other Person. To the extent that any Person acquires a right to receive
payments from the Company or any Affiliate pursuant to an Award, such right
shall be that of an unsecured general creditor of the Company or any Affiliate.

            (h) No Fractional Shares. No fractional Share shall be issued or
delivered pursuant to the Plan or any Award, and the Committee shall determine
whether cash, other securities, or other property shall be paid or transferred
in lieu of any fractional Shares, or whether such fractional Shares, or whether
such fractional Shares or any rights thereto shall be canceled, terminated, or
otherwise eliminated.

            (i) Headings. Headings are given to the sections and subsections of
the Plan solely as a convenience to facilitate reference. Such headings shall
not be deemed in any way material or relevant to the construction or
interpretation of the Plan or any provision thereof.

            SECTION 11.  EFFECTIVE DATE OF THE PLAN.

            The Plan shall be effective as of the date of its approval by the
Board of Directors of the Company.

            SECTION 12.  TERM OF THE PLAN.

            No Award shall be granted under the Plan after October 29, 2013.
However, unless otherwise expressly provided in the Plan or in an applicable
Award Agreement, any Award theretofore granted may extend beyond such date, and
the authority of the Committee hereunder to amend, alter, adjust, suspend,
discontinue, or terminate any such Award, or to waive any conditions or rights
under any such Award, and the authority of the Board of Directors of the Company
to amend the Plan, shall extend beyond such date.

            SECTION 13.  PARTICIPANTS SUBJECT TO SECTION 162(M).

            (a) Applicability. The provisions of this Section 13 shall be
applicable to all Covered Awards. Covered Awards shall be made subject to the
achievement of one or more preestablished Performance Goals, in accordance with
procedures to be established by the Committee from time to time. Notwithstanding
any provision of the Plan to the contrary, the Committee shall not, other than
upon a Change of Control, have discretion to waive or amend such Performance
Goals or to, except as provided in Section 4(c), increase the number of Shares
subject to Covered Awards or the amount payable pursuant to Covered Awards after
the Performance Goals have been established; provided, however, that the
Committee may, in its sole discretion, reduce the number of Shares subject to
Covered Awards or the amount which would otherwise be payable pursuant to
Covered Awards; and provided, further, that the provisions of Section 8 shall
override any contrary provision of this Section 13.

                                      -13-
<PAGE>

            (b) Certification. No shares shall be delivered and no payment shall
be made pursuant to a Covered Award unless and until the Committee shall have
certified in writing that the applicable Performance Goals have been attained.

            (c) Procedures. The Committee may from time to time establish
procedures pursuant to which Covered Employees will be permitted or required to
defer receipt of amounts payable under Awards made under the Plan.

            (d) Committee. Notwithstanding any other provision of the Plan, for
all purposes involving Covered Awards, the Committee shall consist of at least
two members of the Board of Directors, each of whom is an "OUTSIDE DIRECTOR"
within the meaning of Section 162(m).

Effective as of October 29, 2003

                                      -14-

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