AMERICAN MANAGEMENT SYSTEMS INC
AMENDED STOCK OPTION PLAN F
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>4
<FILENAME>w62724exv10w1.htm
<DESCRIPTION>AMENDED STOCK OPTION PLAN F
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<P align="right"><FONT size="2">EXHIBIT 10.1</FONT>
<P align="center"><FONT size="2"><B>AMERICAN MANAGEMENT SYSTEMS, INCORPORATED<BR>
STOCK OPTION PLAN FOR EMPLOYEES<BR>
(As Amended Effective as of May&nbsp;10, 2002)<sup>1</sup></B>
</FONT>

<P align="left"><FONT size="2"><B>Section&nbsp;1. &nbsp;&nbsp;&nbsp;&nbsp;Purpose</B>
</FONT>

<P>
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<TR>
        <TD width="90%"></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The purpose of this Stock Option Plan for Employees of American Management
Systems (the &#147;Company&#148;) is to reward valued employees with grants of stock
options, thereby giving them a stake in the Company&#146;s success.</font></td>
</tr>
<tr>
        <td><font size="2"><B>Section&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Definitions</B></FONT></TD>
</TR>

</TABLE>
<P>
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        <TD width="90%"></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;<B>&#147;Affiliate&#148;</B> means (i)&nbsp;any entity that directly or indirectly, is
controlled by, or controls or is under common control with, the Company, and
(ii)&nbsp;any entity in which the Company has a significant equity interest, in
either case as determined by the Board.</FONT></TD>
</TR>

<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">

        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;<B>&#147;Board&#148;</B> means the Board of Directors of the Company.</FONT></TD>
</TR>

<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">

        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;&nbsp;<B>&#147;Code&#148;</B> means the Internal Revenue Code of 1986, as amended.</FONT></TD>
</TR>

<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) &nbsp;&nbsp;&nbsp;<B>&#147;Committee&#148;</B> means the Stock Option/Award Committee, a committee
consisting of at least two members of the Board.</FONT></TD>
</TR>

<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) &nbsp;&nbsp;&nbsp;<B>&#147;Common Stock&#148;</B> means the $0.01 par value common stock of the Company.</FONT></TD>
</TR>

<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) &nbsp;&nbsp;&nbsp;<B>&#147;Company&#148;</B> means American Management Systems, Incorporated.</FONT></TD>
</TR>

<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) &nbsp;&nbsp;&nbsp;<B>&#147;Employee&#148;</B> means any individual performing services as an employee for
the Company or any current Affiliate (including an entity that becomes an
Affiliate after the adoption of the Plan).</FONT></TD>
</TR>

<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) &nbsp;&nbsp;&nbsp;<B>&#147;Exercise Price&#148;</B> means the price that is required to be paid to
exercise an Option and receive the shares that are subject to the Option.</FONT></TD>
</TR>

<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Fair Market Value&#148;</B> means the closing bid price of the Common Stock
quoted over the National Association of Securities Dealers Automated Quotation
System (&#147;NASDAQ&#148;) in the national market on the date of grant of the Option or
if there is no trade on such date, the closing bid price on the last preceding
date upon which such Common Stock was traded. Notwithstanding the foregoing,
in no event shall Fair Market Value be less than the par value per share of the
Common Stock.</FONT></TD>
</TR>

<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Option&#148;</B> means a right granted under the Plan to an Employee that
entitles the Employee to purchase from the Company a stated number of shares of
Common Stock in exchange for the payment of the Exercise Price. Options
granted under the Plan do not, and are not intended to, qualify as &#147;incentive
stock options&#148; under Section&nbsp;422 of the Code.</FONT></TD>
</TR>

<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) &nbsp;&nbsp;&nbsp;<B>&#147;Option Agreement&#148;</B> means an agreement evidencing an Option between the
Company and the Optionee.</FONT></TD>
</TR>

<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Optionee&#148;</B> means an Employee to whom an Option has been granted that
has not been fully exercised.</FONT></TD>
</TR>

<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;<B>&#147;Plan&#148;</B> means this Stock Option Plan for Employees.</FONT></TD>
</TR>

</TABLE>
<P>
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        <TD width="96%"><FONT size="2"><sup>1</sup> Revised February&nbsp;22, 2002, effective on the same date, and May&nbsp;10, 2002,
effective on the same date.</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2">1</FONT>
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<P align="left"><FONT size="2"><B>Section&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Administration</B>
</FONT>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
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        <TD width="90%"></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Plan shall be implemented and administered by the Board. The Board
shall have the authority and discretion to adopt and revise such rules and
regulations as it shall deem necessary for the administration of the Plan, and
to determine, consistent with the provisions of the Plan, the Employees to be
granted Options, the times at which Options shall be granted, the Exercise
Price of the shares subject to each Option, the number of shares subject to
each Option, the vesting schedule of Options or whether the Options shall be
immediately vested, the times when Options shall terminate, whether the
Exercise Price of Options shall be paid in cash or stock, and all other terms
of Options. The Board also shall have the authority to amend or cancel
previously-granted Options; provided, however, that no such amendment or
cancellation shall be effective without the consent of the Optionee if it would
adversely affect the Optionee, or to the extent permitted by Section&nbsp;7(f); and
provided, further, that no adjustment to decrease the Exercise Price of a
previously-granted Option, whether by amending the exercise price of the Option
or by canceling the Option and reissuing a replacement or substitute stock
option having a lower exercise price, may be made (except to the extent
permitted by Section&nbsp;7(f) hereof).<sup>2</sup></FONT></TD>
</TR>

</TABLE>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
        <TD width="90%"></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board may delegate its authority under this Section&nbsp;3 to the Committee
with respect to grants to new Employees and grants of Options with respect to
less than 25,000 shares of Common Stock, in which case all references in the
Plan to the Board in connection with the administration of the Plan shall be
read as references to the Committee. Acts of a majority of the members of the
Committee at a meeting at which a quorum is present, or acts approved in
writing by a majority of the members of the Committee, shall be the valid acts
of the Committee. The Committee&#146;s actions, including any interpretation or
construction of any provisions of the Plan or any Option granted hereunder,
shall be final, conclusive and binding unless otherwise determined by the
Committee at its next regularly scheduled meeting.</FONT></TD>
</TR>

</TABLE>
<P align="left"><FONT size="2"><B>Section&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eligibility; Participation; Special Limitations</B>
</FONT>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
        <TD width="90%"></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All Employees, other than &#147;officers&#148; of the Company as defined for
purposes of Sections&nbsp;16(a) and 16(b) of the Securities Exchange Act of 1934 and
&#147;covered employees&#148; within the meaning of Section&nbsp;162(m) of the Code, of the
Company shall be eligible to be granted Options. Nothing contained in the
Plan, or in any Option, shall confer upon any Employee the right to continued
employment, or shall interfere in any way with the right of the Company or a
Affiliate to terminate the employment of such Employee at any time.</FONT></TD>
</TR>

</TABLE>
<P align="left"><FONT size="2"><B>Section&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basis of Grant</B>
</FONT>

<P>
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<TR>
        <TD width="90%"></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Options shall be granted to such Employees as the Board may determine from time to time.</FONT></TD>
</TR>

</TABLE>
<P align="left"><FONT size="2"><B>Section&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Number of Shares and Options</B>
</FONT>

<P>
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        <TD width="90%"></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares subject to Options may be authorized and unissued shares or shares
previously acquired or to be acquired by the Company and held in treasury. The
number of shares that may be delivered pursuant to Options granted under the
Plan is 1,000,000 shares, subject to adjustment in accordance with Section
7(f). To the extent that any shares of Common Stock that are subject to an
Option are (i)&nbsp;not delivered because the Option is forfeited, cancelled or
surrendered without consideration, or settled in cash, or (ii)&nbsp;withheld
pursuant to Section&nbsp;7(c) or 9 to pay the Exercise Price or satisfy the
Employee&#146;s tax obligations, such shares shall not be deemed to have been
delivered for this purpose. The maximum number of shares which may be subject
to Options granted to any single Employee during any two (2)&nbsp;consecutive
calendar years shall be 500,000 shares, subject to adjustment in accordance
with Section&nbsp;7(f).<sup>3</sup></FONT></TD>
</TR>

</TABLE>
<P align="left"><FONT size="2"><B>Section&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Terms and Conditions of Options</B>
</FONT>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
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        <TD width="90%"></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<b>Option Agreements</B>. Each Option shall be evidenced by an Option
Agreement. Option Agreements (which need not be identical) shall designate the
number of shares and the Exercise Price of the Options to which they pertain, shall set forth the expiration date of the Option,
shall set forth the vesting schedule of the</FONT></TD>
</TR>

</TABLE>
<P>
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<tr>
        <td><font size="2"><sup>2</sup> Revised May&nbsp;10, 2002, effective as of February&nbsp;22, 2002.</font></td>
</tr>
<tr>
        <td><font size="2"><sup>3</sup> Revised February&nbsp;22, 2002, effective on the same date.</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2">2</FONT>
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<P><FONT size="2">Options or state that the Options are vested immediately, and shall include all other terms and conditions of the
Options that are not included in the Plan. Option Agreements shall be in
writing, dated as of the date the Option is granted, and shall be executed on
behalf of the Company by such officers as the Board shall authorize. Option
Agreements generally shall be in such form and contain such additional
provisions as the Board shall prescribe, but in no event shall they contain
provisions inconsistent with the provisions of the Plan.
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
        <TD width="90%"></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<b>Vesting and Exercise of Options. </B>Options shall vest either
immediately or periodically pursuant to a schedule selected by the Board at the
same time the Option is granted, provided that the maximum vesting period shall
be ten (10)&nbsp;years. Optionees may exercise at any time or from time to time all
of any portion of an Option, but only to the extent that the Option is vested
at that time.</FONT></TD>
</TR>

</TABLE>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
        <TD width="90%"></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;<b>Exercise Price. </B>The price at which all Options may be exercised shall
be no less than the Fair Market Value of the Common Stock on the date of grant.
Payment of the Exercise Price may be (i)&nbsp;in cash, (ii)&nbsp;by delivery to the
Company of (x)&nbsp;irrevocable instructions to deliver to a broker the stock
certificates representing the shares for which the Option is being exercised,
and (y)&nbsp;irrevocable instructions to the broker to sell such shares and promptly
deliver to the Company the portion of the proceeds equal to the Exercise Price,
or in the sole discretion of the Board, (iii)&nbsp;by delivery to the Company
(either directly or by attestation) of shares of Common Stock already held by
the Participant, or, (iv)&nbsp;partly in cash and partly by exchange of such Common
Stock, or (v)&nbsp;in any other form of valid consideration permitted by the
Committee in its discretion, provided that for purposes of clauses (iii)&nbsp;and
(iv)&nbsp;the value of such Common Stock shall be the Fair Market Value on the date
of exercise, and further provided that such Common Stock shall have been held
by the Optionee for a period of at least six (6)&nbsp;months prior to the date of
exercise. The Board may permit deferred payment of all or any part of the
Exercise Price of the shares purchased pursuant to the Plan, provided the par
value of the shares must be paid in cash.</FONT></TD>
</TR>

<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;<b>Suspension or Termination of Options. </B>All Options shall expire, and
all rights granted under Option Agreements shall become null and void, on the
date specified in the Option Agreement, which date shall be no later than ten
(10)&nbsp;years after the Options are granted.</FONT></TD>
</TR>

<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;<b>Non-Transferability of Options. </B>Options are not transferable by the
Optionee otherwise than by will or the laws of descent and distribution, or
pursuant to a domestic relations order. Except as permitted by the preceding
sentence, no Option nor any right granted under an Option Agreement shall be
transferred, assigned, pledged, hypothecated or disposed of in any other way
(whether by operation of law or otherwise), or be subject to execution,
attachment or similar process, and each Option shall be exercisable during the
Optionee&#146;s lifetime only by the Optionee. Upon any attempt to transfer,
assign, pledge, hypothecate or otherwise dispose of such Options or of such
other rights contrary to the provisions hereof, or to subject such Options or
such other rights to execution, attachment or similar process, such Options and
such other rights shall immediately terminate and become null and void.</FONT></TD>
</TR>

<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;<b>Adjustment Provisions. </B>Except as otherwise provided in this
subsection (f), in the event of changes in the Common Stock by reason of any
stock split, combination of shares, stock dividend, reclassification, merger,
consolidation, reorganization, recapitalization or similar adjustment, or by
reason of the dissolution or liquidation of the Company, appropriate
adjustments may be made in (i)&nbsp;the aggregate number of or class of shares
available under the Plan, and (ii)&nbsp;the number, class and Exercise Price of
shares remaining subject to all outstanding Options. Whether any adjustment or
modification is to be made as a result of the occurrence of any of the events
specified in this section, and the extent thereof, shall be determined by the
Board, whose determination shall be binding and conclusive. Existence of the
Plan or of Option Agreements pursuant to the Plan shall in no way impair the
right of the Company or its stockholders to make or effect any adjustments,
recapitalizations, reorganizations or other changes in the Company&#146;s capital
structure or its business, or any merger, consolidation, dissolution or
liquidation of the Company, or any issue of bonds, debentures, preferred or
prior preference stock ahead of or affecting the Common Stock of the Company,
or any grant of Options on its stock not pursuant to the Plan.</FONT></TD>
</TR>

</TABLE>
<P align="left"><FONT size="2"><B>Section&nbsp;8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rights as a Shareholder</B>
</FONT>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
        <TD width="90%"></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Optionees shall not have any of the rights and privileges of shareholders
of the Company in respect of any of the shares subject to any Option unless and
until a certificate, if any, representing such shares shall have been issued
and delivered.</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2">3</FONT>
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<P align="left"><FONT size="2"><B>Section&nbsp;9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Withholding</B>
</FONT>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
        <TD width="90%"></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To the extent required by applicable federal, state, local or foreign law,
an Optionee shall make arrangements satisfactory to the Company for the
satisfaction of any withholding tax obligations that arise by reason of an
Option exercise. The Company shall not be required to issue shares until such
obligations are satisfied. The Board may permit these obligations to be
satisfied by having the Company withhold a portion of the shares of Common
Stock that otherwise would be issued upon exercise of the Option, or to the
extent permitted, by permitting the Optionee to tender shares owned by the
Optionee.</FONT></TD>
</TR>

</TABLE>
<P align="left"><FONT size="2"><B>Section&nbsp;10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Successors</B>
</FONT>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
        <TD width="90%"></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The provisions of the Plan shall be binding upon, and inure to the benefit
of, all successors of any Optionee, including, without limitation, his estate
and the executors, administrators or trustees thereof, his heirs and legatees,
and any receiver, trustee in bankruptcy or representative of creditors of such
Optionee.</FONT></TD>
</TR>

</TABLE>
<P align="left"><FONT size="2"><B>Section&nbsp;11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Termination and Amendment of the Plan</B>
</FONT>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
        <TD width="90%"></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Plan shall remain in effect until terminated by the Board. The Board
shall have complete power and authority at any time to terminate the Plan or to
make such modification or amendment thereof as it deems advisable and may from
time to time suspend, discontinue or abandon the Plan, provided that no such
action by the Board shall adversely affect any right or obligation with respect
to any grant theretofore made.</FONT></TD>
</TR>

</TABLE>
<P align="left"><FONT size="2"><B>Section&nbsp;12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indemnification</B>
</FONT>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
        <TD width="90%"></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No member of the Board shall be liable for any action or determination
made in good faith with respect to the Plan or any Option granted under it. In
addition to such other rights of indemnification as they may have as directors
or otherwise, the members of the Board shall be indemnified by the Company
against the reasonable expenses, including attorneys&#146; fees actually and
necessarily incurred in connection with the defense of any action, suit or
proceeding, or in connection with any appeal therein, to which they or any of
them may be a party by reason of any action taken or failure to act under or in
connection with the Plan, Option Agreements or any Option, and against all
amounts paid by them in settlement thereof (provided such settlement is
approved by legal counsel selected by the Company) or paid by them in
satisfaction of a judgment in any such action, suit or proceeding, except in
relation to matters as to which it shall be adjudged in such action, suit or
proceeding that such member is liable for negligence or misconduct in the
performance of his duties; provided that within sixty (60)&nbsp;days after
institution of any such action, suit or proceeding a member shall in writing
offer the Company the opportunity, at its own expense, to defend the same.</FONT></TD>
</TR>

</TABLE>
<P align="left"><FONT size="2"><B>Section&nbsp;13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Merger of the Company</B>
</FONT>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
        <TD width="90%"></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless the surviving company assumes the Options or substitutes other
options having substantially equivalent value, if the Company shall (i)&nbsp;merge
or consolidate with another corporation under circumstances where the Company
is not the surviving corporation, (ii)&nbsp;sell all, or substantially all of its
assets, or (iii)&nbsp;liquidate or dissolve, then each Option shall terminate on the
date and immediately prior to the time such merger, consolidation, sale,
liquidation or dissolution becomes effective or is consummated, provided that
the Optionee shall have the right immediately prior to the effectiveness or
consummation of such merger, consolidation, sale, liquidation or dissolution,
to exercise any or all of the vested portion of the Option, unless such Option
has otherwise expired or been terminated pursuant to its terms or the terms
hereof. In the event of such merger, consolidation, sale, liquidation or
dissolution, any portion of an outstanding Option which would have vested
within one year after the date on which such merger, consolidation, sale,
liquidation or dissolution becomes effective or is consummated shall vest
immediately prior to the effectiveness or consummation of such merger,
consolidation, sale, liquidation or dissolution and shall be part of the vested
portion of the Option which the Optionee may exercise.</FONT></TD>
</TR>

</TABLE>
<P align="left"><FONT size="2"><B>Section&nbsp;14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Approval of Plan; Effective Date</B>
</FONT>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
        <TD width="90%"></TD>
</TR>
<TR valign="top">
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The plan was adopted by the Board on July&nbsp;27, 2001, and was effective as
of January&nbsp;1, 2001. The plan was amended by the Board on February&nbsp;22, 2002,
and May&nbsp;10, 2002.</FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">4</FONT>




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