Document:

<PAGE>
                                                                    EXHIBIT 10.1

                               CLICK2LEARN, INC.

                   CHANGE OF CONTROL EXECUTIVE SEVERANCE PLAN
                              ADOPTED JUNE __, 2002

1.   PURPOSE OF PLAN.

The purpose of this Plan is to ensure that the interests of the Eligible
Executives of Click2learn, Inc. (the "Company") are aligned with the interests
of the stockholders generally in the event of a Change in Control. This Plan is
intended to provide the Eligible Executives with an incentive to complete such a
Change in Control transaction, even if as a result thereof they will no longer
be employed by the Company or its successor, while at the same time providing an
incentive for the Eligible Executives to continue employment with the Company or
its successor if such company desires to retain their services. This Plan is
also intended to be a welfare plan for a select group of management or highly
compensated employees within the meaning of the Employee Retirement Income
Security Act of 1974 ("ERISA").

2.   DEFINITIONS.

When used in this Plan the following terms shall have the meanings defined in
this Section:

"Change in Control" means any of the following transactions: (1) a merger or
consolidation in which the Company is not the surviving entity (other than a
merger or consolidation with a wholly-owned subsidiary, a reincorporation of the
Company in a different jurisdiction, or other transaction in which there is no
substantial change in the stockholders of the Company); (2) a merger in which
the Company is the surviving corporation but after which the owners of the
equity of the Company immediately prior to such merger cease to own their shares
or other equity interest in the Company; (3) the sale of substantially all of
the assets of the Company; (4) the acquisition, sale or transfer of more than
50% of the outstanding shares or equity interests of the Company by tender offer
or similar transaction; or (5) any of the foregoing transactions with respect to
any entity that controls, either directly or through one or more intermediary
entities, the Company.

"Eligible Executive" means any individual designated by resolution of the
Compensation Committee of the Company's Board of Directors (the "Compensation
Committee") as eligible to receive the benefits of this Plan; provided that such
individual is an active employee of the Company at the time the Company agrees
in writing to a Change in Control or, if a Change in Control is completed
without the agreement of the Company, at the time the Change in Control is
completed.

"Good Cause" means any of the following by or of an Eligible Executive: (1) a
failure or refusal to comply in any material respect with the reasonable
policies, standards or regulations of the Company or any successor; (2) a good
faith determination that performance is unsatisfactory after reasonable notice
of the ways in which performance is unsatisfactory and a reasonable opportunity
to correct any such deficiencies; (3) a failure or refusal in any material
respect to perform his or her duties (except for any failure due to ill health
or disability; (4) unprofessional, unethical or fraudulent conduct or conduct
that is materially detrimental to the reputation, character or standing of the
Company or any successor; (5) dishonest conduct or a deliberate attempt to do an
injury to the Company or any successor; (6) unauthorized disclosure, misuse or
theft of the proprietary information or intellectual property of the Company or
any successor; (7) a criminal act which would reflect badly on the Company or
any successor; or (8) death.

<PAGE>

Good Reason" means any of the following by the Company or any successor with
respect to an Eligible Executive: (1) a reduction in salary or target
compensation below that in effect immediately prior to the earlier of the
Company's written agreement to or the closing of a Change in Control; or (2) the
relocation of work location to a location more than fifty miles from the work
location immediately prior to the earlier of the Company's written agreement to
or the closing of a Change in Control.

3.   SEVERANCE BENEFITS.

If, in connection with, and prior to the closing of a Change in Control agreed
to in writing by the Company, or within 12 months following the closing of any
Change in Control, an Eligible Executive's employment is terminated either: (i)
by the Company or any successor to the Company other than for Good Cause or (ii)
by the Eligible Executive for Good Reason (either of (i) or (ii), a "Triggering
Event"), then such Eligible Executive shall be entitled to receive the following
benefits upon executing a release of claims agreement provided by the Company
after the Triggering Event:

     o    Acceleration of Stock Option Vesting. All of such Eligible Executive's
          stock options granted pursuant to the Company's 1998 Equity Incentive
          Plan (or any options received as a result of the Change of Control in
          exchange for such options) (the "1998 Plan") which are not exercisable
          on the date of such termination shall accelerate and become fully
          exercisable immediately following any such termination.

     o    Severance Pay. For the period of time set forth below, the Company or
          any successor shall continue to pay the Eligible Executive his or her
          then current base salary (less legally required payroll deductions) on
          normal payroll dates; provided, however, that at any time during such
          period the Company or its successor may elect to pay such amount or
          the then-unpaid portion thereof in a single lump sum payment. The
          period for such severance pay is determined based on the Eligible
          Executive's length of continuous employment with the Company and any
          successor (including employment with any company acquired by the
          Company) as follows:

<TABLE>
<CAPTION>

     Length of Employment              Severance Period
     --------------------              ----------------
     <S>                               <C>
      Less than 2 years                    3 months
         2 - 4 years                       6 months
         4 - 6 years                       9 months
       6 or more years                    12 months
</TABLE>

Notwithstanding anything else in this Plan, any Eligible Executive who does not
comply with his or her continuing obligations under his or her Employee
Invention, Confidentiality, Non-raiding and Non-competition Agreement with the
Company shall, unless such non-compliance is waived in writing by the Company in
its sole discretion, forfeit any rights to the benefits of this Section 3.

4.   OTHER BENEFITS.

This Plan is intended to provide the minimum benefits to be received by an
Eligible Executive whose employment is terminated as provided herein. Nothing in
this Plan shall be deemed to amend any employment agreement between an Eligible
Executive and the Company that provides severance benefits to such Eligible
Executive. However, any such Eligible Executive shall be permitted to
participate in the Severance Pay benefits of Section 3 to the extent that his or
her employment agreement and other plans, programs and arrangements do not
provide severance benefits greater in the aggregate than those Severance Pay
benefits provided in this Plan and then only to the extent of the difference
between the Severance Pay benefits provided under this Plan and under such
employment agreement, plans, programs

<PAGE>
and arrangements. Nothing in this Plan shall be deemed to limit the rights of an
Eligible Executive to receive any other benefits provided to employees generally
either (i) upon termination of employment; (ii) pursuant to the 1998 Plan; or
(iii) as a result of a Change in Control.

5.   AMENDMENT AND TERMINATION

The Company reserves the right, through the Compensation Committee to amend this
Plan at any time, for any reason and without notice; provided, however, that no
amendment may have the effect of reducing any benefit to which an Eligible
Executive is then entitled following a Triggering Event under the terms of this
Plan. Unless terminated earlier by the Company, this plan shall automatically
terminate upon the earlier of (a) 10 years from the date of adoption, and (b) 30
months after a Change in Control. All amendments must be in writing. No person
is authorized to make promises regarding benefits under this Plan except as
provided in this document. Neither the Company nor its respective affiliates,
successors, directors, officers, stockholders, employees and agents, will be
bound by or liable to anyone for any promise, commitment or other statement that
is not contained in Plan, as amended from time to time.

6.   ADMINISTRATION

The Compensation Committee has all power and authority necessary or convenient
to administer this Plan, including, but not limited to, the exclusive authority
and discretion: (a) to construe and interpret this Plan; (b) to decide all
questions of eligibility for and the amount of benefits under this Plan; (c) to
prescribe procedures to be followed and the forms to be used by Eligible
Executives pursuant to this Plan; and (d) to request and receive from all
Eligible Executives such information as it determines is necessary for the
proper administration of this Plan.

7.   CLAIMS PROCEDURES

Eligible Executives have the right under ERISA and this Plan to file a written
claim for benefits. To file a claim, the Eligible Executive must send the
written claim to the Human Resources Director for the Company or its successor.
If such claim is denied in whole or in part, the Eligible Executive will receive
written notice of the Human Resources Director's decision within 30 days after
the claim is received. Such written notice will include the following
information: (a) specific reasons for the denial, (b) specific reference to
pertinent Plan provisions on which the denial is based; (c) a description of any
additional material or information necessary for the perfection of the claim and
an explanation of why it is needed; and (d) steps to be taken if the Eligible
Executive wishes to appeal the denial of the claim, including a statement of the
Eligible Executive's right to bring a civil action under Section 502(a) of ERISA
upon an adverse decision on appeal.

If the Eligible Executive submits a claim according to the procedures above and
does not hear from the Human Resources Director within 30 days, the Eligible
Executive may consider the claim denied. The following appeal procedures give
the rules for appealing a denied claim.

If a claim for benefits is denied, in whole or in part, or if the Eligible
Executive believes benefits under this Plan have not been properly provided, the
Eligible Executive may appeal this denial in writing within 10 days after the
denial is received. The Compensation Committee of the Company or its successor
will conduct a review and make a final decision within 30 days after receiving
you're the Eligible Executive's written request for review. The decision will be
in writing and will include the following information: (a) specific reasons for
the denial; (b) specific reference to pertinent Plan provisions on which the
denial is based; (c) a statement of the Eligible Executive's right to access and
receive copies, upon request and free of charge, of all documents and other
information relevant to such claim for benefits; and (d) a statement of the
right to bring a civil action under Section 502(a) of ERISA. If the Compensation

<PAGE>

Committee does not respond within the applicable time frame, the Eligible
Executive may consider the appeal denied.

If the Eligible Executive submits a written request to appeal a denied claim,
the Eligible Executive has the right to review pertinent Plan documents and to
send a written statement of the issues and any other documents to support the
claim. The Eligible Executive must pursue the claim and appeal rights described
above before seeking any other legal recourse regarding a claim for benefits.<PAGE>

                                                                    Exhibit 10.5

                      NIKE, INC. 1990 STOCK INCENTIVE PLAN

        1. Purpose. The purpose of this Stock Incentive Plan (the "Plan") is to
enable NIKE, Inc. (the "Company") to attract and retain as directors, officers,
employees, consultants, advisors and independent contractors people of
initiative and ability and to provide additional incentives to such persons.

        2. Shares Subject to the Plan. Subject to adjustment as provided below
and in paragraph 10, the shares to be offered under the Plan shall consist of
Class B Common Stock of the Company ("Shares"), and the total number of Shares
that may be issued under the Plan shall not exceed thirty-seven million
(37,500,000) Shares. If an option or stock appreciation right granted under the
Plan expires, terminates or is canceled, the unissued Shares subject to such
option or stock appreciation right shall again be available under the Plan. If
Shares sold or awarded as a bonus under the Plan are forfeited to the Company or
repurchased by the Company, the number of Shares forfeited or repurchased shall
again be available under the Plan.

        3. Effective Date and Duration of Plan.

           (a) Effective Date. The Plan shall become effective when adopted by
the Board of Directors of the Company. However, no option or stock appreciation
right granted under the Plan shall become exercisable until the Plan is approved
by the affirmative vote of the holders of a majority of the Common Stock of the
Company represented at a shareholders meeting at which a quorum is present and
any awards under the Plan prior to such approval shall be conditioned on and
subject to such approval. Subject to this limitation, options and stock
appreciation rights may be granted and Shares may be awarded as bonuses or sold
under the Plan at any time after the effective date and before termination of
the Plan.

           (b) Duration. The Plan shall continue in effect until all Shares
available for issuance under the Plan have been issued and all restrictions on
such Shares have lapsed. The Board of Directors may suspend or terminate the
Plan at any time except with respect to options and Shares subject to
restrictions then outstanding under the Plan. Termination shall not affect any
outstanding options, any right of the Company to repurchase Shares or the
forfeitability of Shares issued under the Plan.

        4. Administration.

           The Plan shall be administered by a committee appointed by the Board
of Directors of the Company consisting of not less than two directors (the
"Committee"), which shall determine and designate from time to time the
individuals to whom awards shall be made, the amount of the awards and the other
terms and conditions of the awards, except that only the Board of Directors may
amend or terminate the Plan as provided in paragraphs 3 and 13. Subject to the
provisions of the Plan, the Committee may from time to time adopt and amend
rules and regulations relating to administration of the Plan, advance the lapse
of any waiting period, accelerate any exercise date, waive or modify any
restriction applicable to Shares (except those restrictions imposed by law) and
make all other determinations in the judgment of the Committee necessary or
desirable for the administration of the Plan. The interpretation and
construction of the provisions of the Plan and related agreements by the
Committee shall be final and conclusive. The Committee may correct any defect or
supply any omission or reconcile any inconsistency in the Plan or in any related
agreement in the manner and to the extent it shall deem expedient to carry the
Plan into effect, and it shall be the sole and final judge of such expediency.
Notwithstanding anything to the contrary contained in this Paragraph 4, the
Committee may delegate to the Chief Executive Officer of the Company the
authority to grant awards with respect to a maximum of 50,000 Shares to any
eligible employee who is not, at the time of such grant, subject to the
reporting requirements and liability provisions contained in Section 16 of the
Securities Exchange Act of 1934 (the "Exchange Act") and the regulations
thereunder.

        5. Types of Awards; Eligibility. The Committee may, from time to time,
take the following action, separately or in combination, under the Plan: (i)
grant Incentive Stock Options, as defined in

                                   NIKE, INC. 1990 STOCK INCENTIVE PLAN - PAGE 1
<PAGE>

Section 422 of the Internal Revenue Code of 1986, as amended (the "Code"), as
provided in paragraph 6(b); (ii) grant options other than Incentive Stock
Options ("Non-Statutory Stock Options") as provided in paragraph 6(c); (iii)
award stock bonuses as provided in paragraph 7; (iv) sell shares subject to
restrictions as provided in paragraph 8; and (v) grant stock appreciation rights
as provided in paragraph 9. Any such awards may be made to employees, including
employees who are officers or directors, of the Company or any parent or
subsidiary corporation of the Company and to other individuals described in
paragraph 1 who the Committee believes have made or will make an important
contribution to the Company or its subsidiaries; provided, however, that only
employees of the Company shall be eligible to receive Incentive Stock Options
under the Plan. The Committee shall select the individuals to whom awards shall
be made. The Committee shall specify the action taken with respect to each
individual to whom an award is made under the Plan. At the discretion of the
Committee, an individual may be given an election to surrender an award in
exchange for the grant of a new award. No employee may be granted options or
stock appreciation rights under the Plan for more than 200,000 Shares in any
calendar year.

        6. Option Grants.

           (a) Grant. The Committee may grant options under the Plan. With
respect to each option grant, the Committee shall determine the number of Shares
subject to the option, the option price, the period of the option, the time or
times at which the option may be exercised and whether the option is an
Incentive Stock Option or a Non-Statutory Stock Option.

           (b) Incentive Stock Options. Incentive Stock Options shall be subject
to the following terms and conditions:

               (i) An Incentive Stock Option may be granted under the Plan to an
employee possessing more than 10 percent of the total combined voting power of
all classes of stock of the Company or of any parent or subsidiary of the
Company only if the option price is at least 110 percent of the fair market
value of the Shares subject to the option on the date it is granted, as
described in paragraph 6(b)(iii), and the option by its terms is not exercisable
after the expiration of five years from the date it is granted.

               (ii) Subject to paragraphs 6(b)(i) and 6(d), Incentive Stock
Options granted under the Plan shall continue in effect for the period fixed by
the Committee, except that no Incentive Stock Option shall be exercisable after
the expiration of 10 years from the date it is granted.

               (iii) The option price per share shall be determined by the
Committee at the time of grant. Subject to paragraph 6(b)(i), the option price
shall not be less than 100 percent of the fair market value of the Shares
covered by the Incentive Stock Option at the date the option is granted. The
fair market value shall be deemed to be the closing price of the Class B Common
Stock of the Company as reported in the New York Stock Exchange Composite
Transactions in the Wall Street Journal on the day preceding the date the option
is granted, or if there has been no sale on that date, on the last preceding
date on which a sale occurred, or such other reported value of the Class B
Common Stock of the Company as shall be specified by the Committee.

               (iv) No Incentive Stock Option shall be granted on or after the
tenth anniversary of the last action by the Board of Directors approving an
increase in the number of shares available for issuance under the Plan, which
action was subsequently approved within 12 months by the shareholders.

           (c) Non-Statutory Stock Options. The option price for Non-Statutory
Stock Options shall be determined by the Committee at the time of grant. The
option price may not be less than 75 percent of the fair market value of the
Shares covered by the Non-Statutory Stock Option on the date the option is
granted. The fair market value of Shares covered by a Non-Statutory Stock Option
shall be determined pursuant to paragraph 6(b)(iii).

                                   NIKE, INC. 1990 STOCK INCENTIVE PLAN - PAGE 2
<PAGE>

           (d) Exercise of Options. Except as provided in paragraph 6(f), no
option granted under the Plan may be exercised unless at the time of such
exercise the optionee is employed by the Company or any parent or subsidiary
corporation of the Company and shall have been so employed continuously since
the date such option was granted. Absence on leave or on account of illness or
disability under rules established by the Committee shall not, however, be
deemed an interruption of employment for this purpose. Except as provided in
paragraphs 6(f), 10 and 11, options granted under the Plan may be exercised from
time to time over the period stated in each option in such amounts and at such
times as shall be prescribed by the Committee, provided that options shall not
be exercised for fractional shares. Unless otherwise determined by the
Committee, if the optionee does not exercise an option in any one year with
respect to the full number of Shares to which the optionee is entitled in that
year, the optionee's rights shall be cumulative and the optionee may purchase
those Shares in any subsequent year during the term of the option.

           (e) Nontransferability. Except as provided below, each stock option
granted under the Plan by its terms shall be nonassignable and nontransferable
by the optionee, either voluntarily or by operation of law, and each option by
its terms shall be exercisable during the optionee's lifetime only by the
optionee. A stock option may be transferred by will or by the laws of descent
and distribution of the state or country of the optionee's domicile at the time
of death. A Non-Statutory Stock Option shall also be transferable pursuant to a
qualified domestic relations order as defined under the Code or Title I of the
Employee Retirement Income Security Act. The Committee may, in its discretion,
authorize all or a portion of a Non-Statutory Stock Option granted to an
optionee to be on terms which permit transfer by the optionee to (i) the spouse,
children or grandchildren of the optionee ("Immediate Family Members"), (ii) a
trust or trusts for the exclusive benefit of Immediate Family Members, or (iii)
a partnership in which Immediate Family Members are the only partners, provided
that (x) there may be no consideration for any transfer, (y) the stock option
agreement pursuant to which the options are granted must expressly provide for
transferability in a manner consistent with this paragraph, and (z) subsequent
transfers of transferred options shall be prohibited except by will or by the
laws of descent and distribution. Following any transfer, options shall continue
to be subject to the same terms and conditions as were applicable immediately
prior to transfer, provided that for purposes of paragraphs 6(d), 6(g), 10 and
11 the term "optionee" shall be deemed to refer to the transferee. The events of
termination of employment of paragraph 6(f), shall continue to be applied with
respect to the original optionee, following which the options shall be
exercisable by the transferee only to the extent, and for the periods specified,
and all other references to employment, termination of employment, life or death
of the optionee, shall continue to be applied with respect to the original
optionee.

           (f) Termination of Employment or Death.

               (i) Unless otherwise provided at the time of grant, in the event
the employment of the optionee by the Company or a parent or subsidiary
corporation of the Company terminates for any reason other than because of
retirement, physical disability or death, the option may be exercised at any
time prior to the expiration date of the option or the expiration of three
months after the date of such termination of employment, whichever is the
shorter period, but only if and to the extent the optionee was entitled to
exercise the option at the date of such termination.

               (ii) Unless otherwise provided at the time of grant, in the event
the employment of the optionee by the Company or a parent or subsidiary
corporation of the Company terminates as a result of the optionee's retirement,
the option may be exercised by the optionee to the extent specified in this
paragraph 6(f)(ii) at any time prior to the expiration date of the option or the
expiration of three months after the date of such termination of employment,
whichever is the shorter period. For purposes of this paragraph 6(f),
"retirement" means a termination of employment that occurs at a time when (A)
the optionee's retirement point total is at least 55, and (B) the optionee has
at least five full years of service as an employee of the Company or a parent or
subsidiary corporation of the Company. For purposes of this paragraph 6(f),
"retirement point total" means the sum of the optionee's age in full years plus
the optionee's full years of service as an employee of the Company or a parent
or subsidiary corporation of the Company. Upon retirement, the optionee may
exercise the portion of the option that the optionee was entitled to exercise
immediately prior to retirement plus a percentage of the remaining

                                   NIKE, INC. 1990 STOCK INCENTIVE PLAN - PAGE 3
<PAGE>

unvested portion of the option based on the optionee's retirement point total at
the time of retirement as set forth in the following table:

<TABLE>
<CAPTION>
                                               Percent of Unvested Option
                  Retirement Point Total        That Becomes Exercisable
                  ----------------------       --------------------------
                  <S>                           <C>
                         55 or 56                         20%
                            57                            40%
                            58                            60%
                            59                            80%
                            60                            100%
</TABLE>

               (iii) Unless otherwise provided at the time of grant, in the
event the employment of the optionee by the Company or a parent or subsidiary
corporation of the Company terminates because the optionee becomes disabled
(within the meaning of Section 22(e)(3) of the Code), the option may be
exercised by the optionee free of the limitations on the amount that may be
purchased in any one year specified in the option agreement at any time prior to
the expiration date of the option or the expiration of one year after the date
of such termination, whichever is the shorter period.

               (iv) Unless otherwise provided at the time of grant, in the event
of the death of the optionee while in the employ of the Company or a parent or
subsidiary corporation of the Company, the option may be exercised free of the
limitations on the amount that may be purchased in any one year specified in the
option agreement at any time prior to the expiration date of the option or the
expiration of one year after the date of such death, whichever is the shorter
period, but only by the person or persons to whom such optionee's rights under
the option shall pass by the optionee's will or by the laws of descent and
distribution of the state or country of domicile at the time of death.

               (v) The Committee, at the time of grant or at any time
thereafter, may extend the three-month and one-year expiration periods any
length of time not later than the original expiration date of the option, and
may increase the portion of an option that is exercisable, subject to such terms
and conditions as the Committee may determine.

               (vi) To the extent that the option of any deceased optionee or of
any optionee whose employment terminates is not exercised within the applicable
period, all further rights to purchase Shares pursuant to such option shall
cease and terminate.

           (g) Purchase of Shares. Unless the Committee determines otherwise,
Shares may be acquired pursuant to an option granted under the Plan only upon
receipt by the Company of notice in writing from the optionee of the optionee's
intention to exercise, specifying the number of Shares as to which the optionee
desires to exercise the option and the date on which the optionee desires to
complete the transaction, and if required in order to comply with the Securities
Act of 1933, as amended, containing a representation that it is the optionee's
present intention to acquire the Shares for investment and not with a view to
distribution. Unless the Committee determines otherwise, on or before the date
specified for completion of the purchase of Shares pursuant to an option, the
optionee must have paid the Company the full purchase price of such Shares in
cash (including, with the consent of the Committee, cash that may be the
proceeds of a loan from the Company) or with the consent of the Committee, in
whole or in part, in Common Stock of the Company valued at fair market value.
The fair market value of Common Stock of the Company provided in payment of the
purchase price shall be the closing price of the Common Stock of the Company as
reported in the New York Stock Exchange Composite Transactions in the Wall
Street Journal or such other reported value of the Common Stock of the Company
as shall be specified by the Committee, on the date the option is exercised, or
if such date is not a trading day, then on the immediately preceding trading
day. No Shares shall be issued until full payment therefor has been made. With
the consent of the Committee, an optionee may request the Company to apply
automatically the Shares to be received upon the exercise of a portion of a
stock option (even though stock certificates have not yet been issued) to
satisfy the purchase price for additional portions of the option. Each optionee
who has exercised an option shall immediately upon notification of the amount
due, if any, pay to the Company in cash amounts necessary to satisfy any
applicable federal, state and local tax withholding requirements. If

                                   NIKE, INC. 1990 STOCK INCENTIVE PLAN - PAGE 4
<PAGE>

additional withholding is or becomes required beyond any amount deposited before
delivery of the certificates, the optionee shall pay such amount to the Company
on demand. If the optionee fails to pay the amount demanded, the Company may
withhold that amount from other amounts payable by the Company to the optionee,
including salary, subject to applicable law. With the consent of the Committee,
an optionee may satisfy this obligation, in whole or in part, by having the
Company withhold from the Shares to be issued upon the exercise that number of
Shares that would satisfy the withholding amount due or by delivering Common
Stock of the Company to the Company to satisfy the withholding amount. Upon the
exercise of an option, the number of Shares reserved for issuance under the Plan
shall be reduced by the number of Shares issued upon exercise of the option.

        7. Stock Bonuses. The Committee may award Shares under the Plan as stock
bonuses. Shares awarded as a stock bonus shall be subject to the terms,
conditions, and restrictions determined by the Committee. The restrictions may
include restrictions concerning transferability and forfeiture of the Shares
awarded, together with such other restrictions as may be determined by the
Committee. The Committee may require the recipient to sign an agreement as a
condition of the award, but may not require the recipient to pay any monetary
consideration other than amounts necessary to satisfy tax withholding
requirements. The agreement may contain any terms, conditions, restrictions,
representations and warranties required by the Committee. The certificates
representing the Shares awarded shall bear any legends required by the
Committee. The Company may require any recipient of a stock bonus to pay to the
Company in cash upon demand amounts necessary to satisfy any applicable federal,
state or local tax withholding requirements. If the recipient fails to pay the
amount demanded, the Company may withhold that amount from other amounts payable
by the Company to the recipient, including salary, subject to applicable law.
With the consent of the Committee, a recipient may deliver Common Stock of the
Company to the Company to satisfy this withholding obligation. Upon the issuance
of a stock bonus, the number of Shares reserved for issuance under the Plan
shall be reduced by the number of Shares issued.

        8. Restricted Stock. The Committee may issue Shares under the Plan for
such consideration (including promissory notes and services) as determined by
the Committee, provided that in no event shall the consideration be less than 75
percent of fair market value of the Shares at the time of issuance. Shares
issued under the Plan shall be subject to the terms, conditions and restrictions
determined by the Committee. The restrictions may include restrictions
concerning transferability, repurchase by the Company and forfeiture of the
Shares issued, together with such other restrictions as may be determined by the
Committee. All Shares issued pursuant to this paragraph 8 shall be subject to a
purchase agreement, which shall be executed by the Company and the prospective
recipient of the Shares prior to the delivery of certificates representing such
Shares to the recipient. The purchase agreement may contain any terms,
conditions, restrictions, representations and warranties required by the
Committee. The certificates representing the Shares shall bear any legends
required by the Committee. The Company may require any purchaser of restricted
stock to pay to the Company in cash upon demand amounts necessary to satisfy any
applicable federal, state or local tax withholding requirements. If the
purchaser fails to pay the amount demanded, the Company may withhold that amount
from other amounts payable by the Company to the purchaser, including salary,
subject to applicable law. With the consent of the Committee, a purchaser may
deliver Common Stock of he Company to the Company to satisfy this withholding
obligation. Upon the issuance of restricted stock, the number of Shares reserved
for issuance under the Plan shall be reduced by the number of Shares issued.

        9. Stock Appreciation Rights.

           (a) Grant. Stock appreciation rights may be granted under the Plan by
the Committee, subject to such rules, terms, and conditions as the Committee
prescribes.

           (b) Exercise.

               (i) A stock appreciation right shall be exercisable only at the
time or times established by the Committee. If a stock appreciation right is
granted in connection with an option, the stock appreciation right shall be
exercisable only to the extent and on the same conditions that the related
option could be exercised. Upon exercise of a stock appreciation right, any
option or portion thereof to

                                   NIKE, INC. 1990 STOCK INCENTIVE PLAN - PAGE 5
<PAGE>

which the stock appreciation right relates terminates. If a stock appreciation
right is granted in connection with an option, upon exercise of the option, the
stock appreciation right or portion thereof to which the option relates
terminates.

               (ii) The Committee may withdraw any stock appreciation right
granted under the Plan at any time and may impose any conditions upon the
exercise of a stock appreciation right or adopt rules and regulations from time
to time affecting the rights of holders of stock appreciation rights. Such rules
and regulations may govern the right to exercise stock appreciation rights
granted before adoption or amendment of such rules and regulations as well as
stock appreciation rights granted thereafter.

               (iii) Each stock appreciation right shall entitle the holder,
upon exercise, to receive from the Company in exchange therefor an amount equal
in value to the excess of the fair market value on the date of exercise of one
share of Class B Common Stock of the Company over its fair market value on the
date of grant (or, in the case of a stock appreciation right granted in
connection with an option, the option price per Share under the option to which
the stock appreciation right relates), multiplied by the number of Shares
covered by the stock appreciation right or the option, or portion thereof, that
is surrendered. Payment by the Company upon exercise of a stock appreciation
right may be made in Shares valued at fair market value, in cash, or partly in
Shares and partly in cash, all as determined by the Committee.

               (iv) For purposes of this paragraph 9, the fair market value of
the Class B Common Stock of the Company on the date a stock appreciation right
is exercised shall be the closing price of the Class B Common Stock of the
Company as reported in the New York Stock Exchange Composite Transactions in the
Wall Street Journal, or such other reported value of the Class B Common Stock of
the Company as shall be specified by the Committee, on the date the stock
appreciation right is exercised, or if such date is not a trading day, then on
the immediately preceding trading day.

               (v) No fractional shares shall be issued upon exercise of a stock
appreciation right. In lieu thereof, cash shall be paid in an amount equal to
the value of the fractional share.

               (vi) Each stock appreciation right granted under the Plan by its
terms shall be nonassignable and nontransferable by the holder, either
voluntarily or by operation of law, except by will or by the laws of descent and
distribution of the state or county of the holder's domicile at the time of
death, and each stock appreciation right by its terms shall be exercisable
during the holder's lifetime only by the holder; provided, however, that a stock
appreciation right not granted in connection with an Incentive Stock Option
shall also be transferable pursuant to a qualified domestic relations order as
defined under the Code or Title I of the Employee Retirement Income Security
Act.

               (vii) Each participant who has exercised a stock appreciation
right shall, upon notification of the amount due, pay to the Company in cash
amounts necessary to satisfy any applicable federal, state or local tax
withholding requirements. If the participant fails to pay the amount demanded,
the Company may withhold that amount from other amounts payable by the Company
to the participant including salary, subject to applicable law. With the consent
of the Committee a participant may satisfy this obligation, in whole or in part,
by having the Company withhold from any Shares to be issued upon the exercise
that number of Shares that would satisfy the withholding amount due or by
delivering Common Stock of the Company to the Company to satisfy the withholding
amount.

               (viii) Upon the exercise of a stock appreciation right for
Shares, the number of Shares reserved for issuance under the Plan shall be
reduced by the number of Shares issued. Cash payments of stock appreciation
rights shall not reduce the number of Shares reserved for issuance under the
Plan.

        10. Changes in Capital Structure. If the outstanding shares of Common
Stock of the Company are hereafter increased or decreased or changed into or
exchanged for a different number or kind of shares or other securities of the
Company or of another corporation by reason of any reorganization, merger,
consolidation, plan of exchange, recapitalization, reclassification, stock
split-up, combination of

                                   NIKE, INC. 1990 STOCK INCENTIVE PLAN - PAGE 6
<PAGE>

shares or dividend payable in shares, appropriate adjustment shall be made by
the Committee in the number and kind of shares available for awards under the
Plan, provided that this paragraph 10 shall not apply with respect to
transactions referred to in paragraph 11. In addition, the Committee shall make
appropriate adjustment in the number and kind of shares as to which outstanding
options and stock appreciation rights, or portions thereof then unexercised,
shall be exercisable, to the end that the optionee's proportionate interest is
maintained as before the occurrence of such event. The Committee may also
require that any securities issued in respect of or exchanged for Shares issued
hereunder that are subject to restrictions be subject to similar restrictions.
Notwithstanding the foregoing, the Committee shall have no obligation to effect
any adjustment that would or might result in the issuance of fractional shares,
and any fractional shares resulting from any adjustment may be disregarded or
provided for in any manner determined by the Committee. Any such adjustments
made by the Committee shall be conclusive. In the event of a merger,
consolidation or plan of exchange affecting the Company to which paragraph 11
does not apply, in lieu of providing for options and stock appreciation rights
as provided above in this paragraph 10, the Committee may, in its sole
discretion, provide a 30-day period prior to such event during which optionees
shall have the right to exercise options and stock appreciation rights in whole
or in part without any limitation on exercisability and upon the expiration of
such 30-day period all unexercised options and stock appreciation rights shall
immediately terminate.

        11. Special Acceleration in Certain Events.

            (a) Special Acceleration. Notwithstanding any other provisions of
the Plan, a special acceleration ("Special Acceleration") of options and stock
appreciation rights outstanding under the Plan shall occur with the effect set
forth in paragraph 11(b) at any time when the shareholders of the Company
approve one of the following ("Approved Transactions"):

                (i) Any consolidation, merger, plan of exchange, or transaction
involving the Company ("Merger") in which the Company is not the continuing or
surviving corporation or pursuant to which the Common Stock of the Company would
be converted into cash, securities or other property, other than a Merger
involving the Company in which the holders of the Common Stock of the Company
immediately prior to the Merger have the same proportionate ownership of common
stock of the surviving corporation after the Merger; or

                (ii) Any sale, lease, exchange, or other transfer (in one
transaction or a series of related transactions) of all or substantially all of
the assets of the Company or the adoption of any plan or proposal for the
liquidation or dissolution of the Company.

            (b) Effect on Outstanding Options and Stock Appreciation Rights.
Except as provided below in this paragraph 11(b), upon a Special Acceleration
pursuant to paragraph 11(a), all options and stock appreciation rights then
outstanding under the Plan shall immediately become exercisable in full during
the remainder of their terms; provided, the Committee may, in its sole
discretion, provide a 30-day period prior to an Approved Transaction during
which optionees shall have the right to exercise options and stock appreciation
rights, in whole or in part, without any limitation on exercisability, and upon
the expiration of such 30-day period all unexercised options and stock
appreciation rights shall immediately terminate.

        12. Corporate Mergers, Acquisitions, etc. The Committee may also grant
options, stock appreciation rights, and stock bonuses and issue restricted stock
under the Plan having terms, conditions and provisions that vary from those
specified in this Plan, provided that any such awards are granted in
substitution for, or in connection with the assumption of, existing options,
stock appreciation rights, stock bonuses, and restricted stock, awarded or
issued by another corporation and assumed or otherwise agreed to be provided for
by the Company pursuant to or by reason of a transaction involving a corporate
merger, consolidation, plan of exchange, acquisition of property or stock,
separation, reorganization or liquidation to which the Company or a parent or
subsidiary corporation of the Company is a party.

        13. Amendment of Plan. The Board of Directors may at any time, and from
time to time, modify or amend the Plan in such respects as it shall deem
advisable because of changes in the law while

                                   NIKE, INC. 1990 STOCK INCENTIVE PLAN - PAGE 7
<PAGE>

the Plan is in effect or for any other reason. Except as provided in paragraphs
6(f), 9, 10 and 11, however, no change in an award already granted shall be made
without the written consent of the holder of such award.

        14. Approvals. The obligations of the Company under the Plan are subject
to the approval of state and federal authorities or agencies with jurisdiction
in the matter. The Company will use its best efforts to take steps required by
state or federal law or applicable regulations, including rules and regulations
of the Securities and Exchange Commission and any stock exchange or trading
system on which the Company's shares may then be listed or admitted for trading,
in connection with the grants under the Plan. The foregoing notwithstanding, the
Company shall not be obligated to issue or deliver Class B Common Stock under
the Plan if such issuance or delivery would violate applicable state or federal
securities laws.

        15. Employment and Service Rights. Nothing in the Plan or any award
pursuant to the Plan shall (i) confer upon any employee any right to be
continued in the employment of the Company or any parent or subsidiary
corporation of the Company or shall interfere in any way with the right of the
Company or any parent or subsidiary corporation of the Company by whom such
employee is employed to terminate such employee's employment at any time, for
any reason, with or without cause, or to increase or decrease such employee's
compensation or benefits, or (ii) confer upon any person engaged by the Company
any right to be retained or employed by the Company or to the continuation,
extension, renewal, or modification of any compensation, contract, or
arrangement with or by the Company.

        16. Rights as a Shareholder. The recipient of any award under the Plan
shall have no rights as a shareholder with respect to any Shares until the date
of issue to the recipient of a stock certificate for such Shares. Except as
otherwise expressly provided in the Plan, no adjustment shall be made for
dividends or other rights for which the record date is prior to the date such
stock certificate is issued.

                                   NIKE, INC. 1990 STOCK INCENTIVE PLAN - PAGE 8

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