text: **8. EMPLOYEE BENEFIT PLANS**
  
  In July 1998, the Company adopted the 1998 Stock Incentive Plan (""Stock Incentive Plan'') to provide 
  for grants of options to purchase shares of common stock, restricted stock and other equity-based compensa- 
  tion (""Equity-Based Compensation Units'') to employees and non-employee directors of the Company who 
  are eligible to participate in the Stock Incentive Plan. The Company accounts for stock-based compensation in 
  accordance with Accounting Principles Board Opinion No. 25, ""Accounting for Stock Issued to Employees'' 
  (""APB 25''), and related interpretations. Stock options are granted at prices equal to the fair market value of 
  the Company's common stock on the date of grant; therefore, no compensation expense is recognized. 
  Compensation expense resulting from grants of restricted stock or stock units is recognized during the vesting 
  period. 
  
  Options granted under the Stock Incentive Plan are non-qualiÑed and are granted at a price equal to the 
  fair market value of the Company's common stock at the date of grant. Generally, options granted have a term 
  of ten years from the date of grant, and vest in increments of 25% per year over a four year period beginning on 
  the Ñrst anniversary date of the grant. Options granted to non-employee directors have a term of ten years and 
  vest immediately at the date of grant. In May 2002, the Company's stockholders approved and adopted an 
  amendment and restatement of the Stock Incentive Plan, which modiÑed a number of its provisions, including 
  an increase in the number of shares of common stock reserved for issuance under the Stock Incentive Plan 
  from 20.0 million to 27.0 million. As of December 31, 2004, there were 6.0 million stock options reserved for 
  future grants under the Stock Incentive Plan. 