Westwood One, Inc. 2005 Equity Compensation Plan
 
SECTION  1.  PURPOSE  The  purpose  of  the  Westwood   One,  Inc.  2005  Equity
Compensation Plan (the "Plan") is to furnish a material  incentive to Employees,
officers, Consultants and Directors of the Company or an Affiliate and by making
available to them the benefits of common stock  ownership in the Company through
stock options and other awards.  It is believed that these increased  incentives
stimulate the efforts and continued  success of the Company and its  affiliates,
as well as assist in the  recruitment of Employees,  Consultants,  Directors and
officers of the Company or an Affiliate.
 
SECTION 2.  DEFINITIONS As used in the Plan, the following  terms shall have the
meanings set forth below:
 
(a)  "Affiliate" shall mean each of the following:  (a) any Subsidiary;  (b) any
     Parent;  (c)  any  corporation,   trade  or  business  (including,  without
     limitation,  a partnership or limited liability  company) which is directly
     or indirectly controlled 50% or more (whether by ownership of stock, assets
     or an equivalent  ownership  interest or voting interest) by the Company or
     one of its Affiliates; and (d) any other entity in which the Company or any
     of its Affiliates has a material equity interest and which is designated as
     an "Affiliate" by resolution of the Committee.
(b)  "Award" shall mean any Option,  Stock Appreciation Right,  Restricted Stock
     Award,  Performance  Award,  Restricted  Stock  Unit,  or any other  right,
     interest  or option  relating  to Shares  (including,  without  limitation,
     deferred stock units and dividend  equivalent rights), as determined by the
     Committee.  The Committee may, in its  discretion,  permit a Participant to
     defer the payment or vesting of any Award solely to the extent permitted by
     Section 409A of the Code.
(c)  "Award  Agreement"  shall mean any  written  agreement,  contract  or other
     instrument  or  document  evidencing  any Award  granted  by the  Committee
     hereunder,  which in the sole and absolute discretion of the Committee may,
     but need not, be signed or acknowledged by the Company and the Participant.
(d)  "Board" shall mean the Board of Directors of the Company.
(e)  "Cause"  shall  mean  with  respect  to  a  Participant's   Termination  of
     Employment or Termination of  Consultancy,  the following:  (a) in the case
     where there is no employment  agreement,  consulting  agreement,  change in
     control  agreement or similar agreement in effect between the Company or an
     Affiliate  and the  Participant  at the time of the  grant of the Award (or
     where there is such an agreement  but it does not define  "cause" (or words
     of like import)),  termination  due to a Participant's  dishonesty,  fraud,
     moral  turpitude or willful  misconduct,  as determined by the Committee in
     its sole  discretion;  or (b) in the  case  where  there  is an  employment
     agreement,  consulting  agreement,  change in control  agreement or similar
     agreement in effect between the Company or an Affiliate and the Participant
     at the time of the grant of the Award  that  defines  "cause"  (or words of
     like import), "cause" as defined under such agreement;  provided,  however,
     that with regard to any  agreement  under which the  definition  of "cause"
     only  applies on  occurrence  of a change in control,  such  definition  of
     "cause" shall not apply until a change in control  actually takes place and
     then only with  regard  to a  termination  thereafter.  With  respect  to a
     Participant's Termination of Directorship,  "cause" means an act or failure
     to act that  constitutes  cause for removal of a director under  applicable
     Delaware law.
(f)  "Change in Control" shall mean the  occurrence of any of the  following:(i)
     the  acquisition by any Person (as  hereinafter  defined) of 35% or more of
     the  outstanding  Shares (the  "Outstanding  Company Stock") (other than an
     acquisition by the Company or any employee  benefit plan (or related trust)
     sponsored  or  maintained  by the Company or any Person that  controls,  is
     controlled by or is under common control within the Company or other than a
     Non-Qualifying  Business Combination (as defined below));  (ii) individuals
     who, as of the Effective Date constitute the Board (the "Incumbent Board"),
     cease  for any  reason  to  constitute  at least a  majority  of the  Board
     provided that,  for purposes of this Section,  any individual who becomes a
     director subsequent to the Effective Date whose election, or nomination for
     election by the Company's stockholders,  was approved by a vote of at least
     a majority of the directors then  comprising  the Incumbent  Board shall be
     considered  as though such  individual  who initially  assumes  office as a
     result of an actual or  threatened  election  contest  with  respect to the
     election or removal of directors or other actual or threatened solicitation
     of proxies or  consents  by or on behalf of a Person  other than the Board;
     (iii) consummation of a reorganization,  merger or consolidation or sale or
     other  disposition of all or substantially all of the assets of the Company
     or the  acquisition of assets or stock of another  corporation (a "Business
     Combination"),  in each case, unless,  following such Business Combination,
     the  Persons  who  had  Beneficial  Ownership  (as  defined  below)  of the
     Outstanding  Company Stock immediately  prior to such Business  Combination
     have Beneficial  Ownership  immediately  following the consummation of such
     Business  Combination,  directly  or  indirectly,  of more  than 50% of the
     combined voting power of the then outstanding  securities  entitled to vote
     generally  in the election of  directors  of the  corporation  resulting or
     surviving from such Business Combination,  including, without limitation, a
     corporation  which as a result of such  transaction owns the Company or all
     or substantially all of the Company's assets either directly or through one
     or more  subsidiaries (the "Surviving  Entity"),  in substantially the same
     proportions  as  their  ownership   immediately   prior  to  such  Business
     Combination of the Outstanding  Company Stock (a Business  Combination that
     satisfies this exception shall be a "Non-Qualifying Business Combination");
     (iv) approval by the stockholders of the Company of a complete  liquidation
     or  dissolution  of the  Company;  or (v)  the  consummation  of any  other
     transaction involving a significant issuance of the Company's securities, a
     change in the  composition  of the Board or other  material  event that the
     Board determines to be a Change in Control for purposes of this Section.
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     Notwithstanding  the  foregoing  provisions  of  this  definition,   unless
     otherwise  determined by the Board, no Change in Control shall be deemed to
     have  occurred  if (1) a  Participant  is a member  of a group  that  first
     announces a proposal  which,  if  successful,  would  result in a Change in
     Control  and  which  proposal  (including  any  modifications  thereof)  is
     ultimately  successful,  (2) the Participant acquires a two percent (2%) or
     more equity  interest in the entity which  ultimately  acquires the Company
     pursuant to the  transaction  described in clause (1) above;  or (3) to the
     extent Section 409A of the Code is applicable, such event is not considered
     to be a "Change in Control Event" for purposes of Section 409A of the Code.
 
     For purposes of this  definition  of Change in Control,  "Person"  means an
     individual,  partnership, joint venture corporation,  trust, unincorporated
     organization, government or agency or political subdivision thereof), group
     (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) or
     any other entity,  and "Beneficial  Ownership" means  beneficial  ownership
     within the meaning of Rule 13d-3 promulgated under the Exchange Act.
(g)  "Code" shall mean the Internal  Revenue Code of 1986,  as amended from time
     to time, and any successor thereto.
(h)  "Committee"  shall  mean the  Compensation  Committee  of the Board or such
     other persons or committee (or  subcommittee) to which it has delegated any
     authority  under this Plan,  as may be  appropriate.  The  Committee  shall
     consist  of two or more  directors  each of whom  shall  qualify  as: (i) a
     "non-employee  director" for purposes of Rule 16b-3 under the Exchange Act;
     (ii) an "outside  director" for purposes of Section 162(m) of the Code; and
     (iii) an  "independent  director"  for  purposes of Section 303A of the New
     York Stock Exchange  Listed Company Manual or such other  applicable  stock
     exchange rules. Notwithstanding anything herein, the Board shall act as the
     Committee  under  this  Plan  with  respect  to any  grants  of  Awards  to
     Directors.
(i)  "Consultant"  means any natural person who provides bona fide consulting or
     advisory  services  to  the  Company  or an  Affiliate,  which  are  not in
     connection  with the  offer  and sale of  securities  in a  capital-raising
     transaction.
(j)  "Company" shall mean Westwood One, Inc., a Delaware corporation.
(k)  "Covered  Employee" shall mean a "covered  employee"  within the meaning of
     Section 162(m)(3) of the Code, or any successor provision thereto.
(l)  "Director"  shall  mean a member of the Board of the  Company or any of its
     Affiliates who is not an employee of the Company or any Affiliate.
(m)  "Effective  Date" shall mean the date the Plan is approved by the Company's
     stockholders in accordance  with applicable law. (n) "Employee"  shall mean
     any  employee of the  Company or any  Affiliate.  For any and all  purposes
     under this Plan, the term "Employee" shall not include a person hired as an
     independent contractor,  leased employee,  consultant or a person otherwise
     designated  by the  Committee,  at the  time  of hire  as not  eligible  to
     participate  in or receive  benefits  under the Plan or not on the payroll,
     even if such ineligible  person is  subsequently  determined to be a common
     law employee of the Company.
(o)  "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended.
(p)  "Fair Market Value" shall mean, with respect to Shares, as of any date, the
     last sales price reported for the Shares on the applicable date as reported
     on the New York Stock  Exchange for that date or, if no prices are reported
     for that date,  the last sales  price  reported  on the next date for which
     such prices were reported,  unless  otherwise  determined by the Committee.
     For purposes of the exercise of any Stock Appreciation Right the applicable
     date shall be the date a notice of exercise  is  received by the  Committee
     or, if not a day on which the New York  Stock  Exchange  is open,  the last
     sales price reported on the next date for which such prices were reported.
(q)  "Incentive  Stock Option" shall mean an Option granted under Section 6 that
     is  intended  to meet the  requirements  of Section  422 of the Code or any
     successor provision thereto.
(r)  "Nonqualified  Stock  Option"  shall mean  either an Option  granted  under
     Section  6 that is not  intended  to be an  Incentive  Stock  Option  or an
     Incentive Stock Option that has been disqualified.
(s)  "Option"  shall  mean any right  granted  to a  Participant  under the Plan
     allowing such  Participant  to purchase  Shares at such price or prices and
     during such period or periods as the Committee shall determine.
(t)  "Parent"  shall  mean any  parent  corporation  of the  Company  within the
     meaning  of Section  424(e) of the Code.  (u)  "Participant"  shall mean an
     Employee, an officer of the Company or an Affiliate, Consultant or Director
     who is selected by the Committee from time to time in their sole discretion
     to receive an Award under the Plan.
(v)  "Performance  Award"  shall mean any Award of  Performance  Shares  granted
     under the Plan which has performance criteria. (w) "Performance Goal" shall
     have the meaning set forth in Section 11.
(x)  "Performance Period" shall mean that period established by the Committee at
     the time any Performance  Award is granted or at any time thereafter during
     which any Performance Goals specified by the Committee with respect to such
     Award are to be measured.
(y)  "Performance  Share" shall mean any grant  pursuant to Section 11 of a unit
     valued by reference to a  designated  number of Shares,  which value may be
     paid to the Participant by delivery of such property as the Committee shall
     determine,  including, without limitation, cash, Shares, other property, or
     any combination thereof,  upon achievement of such Performance Goals during
     the Performance Period as the Committee shall establish at the time of such
     grant or thereafter.
(z)  "Person" shall mean any individual, corporation,  partnership, association,
     limited  liability  company,  joint-stock  company,  trust,  unincorporated
     organization or government or political subdivision thereof.
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(aa) "Retirement"  shall mean:  (i) with respect to an Employee or an officer of
     the Company or an Affiliate,  any combination of an Employee's or officer's
     age and years of continuous  service with the Company or an Affiliate  that
     is greater than 70 or such other date as approved by the Committee; or (ii)
     with  respect to a  Director,  the failure to stand for  reelection  or the
     failure to be reelected  after a Director has attained age 75 or five years
     of continuous service or such other date as approved by the Committee.
(bb) "Restricted  Stock" shall mean any Share issued with the  restriction  that
     the holder  may not sell,  transfer,  pledge or assign  such Share and with
     such other  restrictions  as the  Committee,  in its sole  discretion,  may
     impose (including, without limitation, any restriction on the right to vote
     such Share,  and the right to receive  any cash  dividends  or  performance
     restriction),  which restrictions may lapse separately or in combination at
     such time or times, in installments or otherwise, as the Committee may deem
     appropriate.
(cc) "Restricted  Stock  Award"  shall mean an award of  Restricted  Stock under
     Section 7. (dd)  "Restricted  Stock Unit" shall mean an award under Section
     9. (ee) "Section 162(m) Performance Goals" shall have the meaning set forth
     in Section 11. (ff)  "Shares"  shall mean the shares of common stock of the
     Company.
(dd) "Restricted Stock Unit" shall mean an award under Section 9.
(ee) "Section  162(m)  Performance  Goals"  shall have the  meaning set forth in
     Section 11.
(ff) "Shares" shall mean the shares of common stock of the Company.
(gg) "Stock  Appreciation  Right" shall mean any right  granted to a Participant
     pursuant to Section 8 to receive,  upon  exercise by the  Participant,  the
     excess of (i) the Fair  Market  Value of one Share on the date of  exercise
     or, if the Committee shall so determine in the case of any such right other
     than one  related  to any  Incentive  Stock  Option,  at any time  during a
     specified  period  before the date of exercise over (ii) the grant price of
     the  right  on the date of  grant,  or if  granted  in  connection  with an
     outstanding Option on the date of grant of the related Option, as specified
     by the Committee in its sole discretion,  which,  except in connection with
     an adjustment provided in Section 4, shall not be less than the Fair Market
     Value of one  Share  on such  date of  grant  of the  right or the  related
     Option,  as the case may be. Any  payment by the Company in respect of such
     right  may be made in cash,  Shares,  other  property,  or any  combination
     thereof, as the Committee, in its sole discretion, shall determine.
(hh) "Subsidiary"  shall mean any  subsidiary  corporation of the Company within
     the meaning of Section 424(f) of the Code.
(ii) "Ten Percent  Stockholder" shall mean a person owning stock possessing more
     than 10% of the total combined  voting power of all classes of stock of the
     Company or its Subsidiaries or its Parent.
(jj) "Termination"  shall mean a  Termination  of  Consultancy,  Termination  of
     Directorship or Termination of Employment,  as applicable.  Notwithstanding
     the foregoing,  the Committee may otherwise define Termination in the Award
     Agreement  or, if no rights of a  Participant  are reduced,  may  otherwise
     define Termination thereafter.
(kk) "Termination  of  Consultancy"  shall mean that the Consultant is no longer
     acting as a consultant to the Company or an  Affiliate,  except that if the
     Consultant becomes an Employee,  a Director or officer of the Company or an
     Affiliate upon the termination of his or her consultancy,  unless otherwise
     determined by the Committee,  no Termination of Consultancy shall be deemed
     to occur until such time as such  Consultant is no longer a Consultant,  an
     Employee, a Director or officer of the Company or an Affiliate.
(ll) "Termination  of  Directorship"  shall mean that the  Director is no longer
     acting as a director  of the  Company or an  Affiliate;  except that if the
     Director  becomes an Employee,  officer of the Company or an Affiliate or a
     Consultant  upon  the  termination  of  his  or  her  directorship,  unless
     otherwise determined by the Committee, no Termination of Directorship shall
     be  deemed  to occur  until  such  time as such  Consultant  is no longer a
     Consultant,  an  Employee,  officer  of the  Company or an  Affiliate  or a
     Director.
(mm) "Termination  of Employment"  shall mean a termination  of employment  (for
     reasons other than a military or personal  leave of absence  granted by the
     Company) of a Participant from the Company and its Affiliates,  except that
     if the  Employee  becomes a  Consultant,  an officer  of the  Company or an
     Affiliate  or a Director  upon the  termination  of his or her  employment,
     unless otherwise determined by the Committee,  no Termination of Employment
     shall be deemed to occur until such time as Eligible  Employee is no longer
     an Employee,  officer of the Company or an  Affiliate,  a  Consultant  or a
     Director.
 
SECTION 3. ADMINISTRATION
 
The Committee shall administer the Plan. The Committee shall have full power and
authority,  subject to such  orders or  resolutions  not  inconsistent  with the
provisions of the Plan as may from time to time be adopted by the Board,  to (a)
select the Employees,  officers of the Company or an Affiliate,  Consultants and
Directors  to whom  Awards  may  from  time to time be  granted  hereunder;  (b)
determine  the  type or  types  of  Award  to be  granted  to  each  Participant
hereunder;  (c)  determine  the number of Shares to be covered by or relating to
each Award  granted  hereunder;  (d)  determine  the terms and  conditions,  not
inconsistent  with the  provisions of the Plan, of any Award granted  hereunder;
(e) determine whether, to what extent and under what circumstances Awards may be
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settled  in cash,  Shares  or other  property  or  canceled  or  suspended;  (f)
determine whether, to what extent, and under what circumstances payment of cash,
Shares,  other property and other amounts  payable with respect to an Award made
under the Plan shall be deferred either  automatically or at the election of the
Participant  in accordance  with Code Section 409A; (g) interpret and administer
the Plan and any  instrument  or  agreement  entered  into  under the Plan;  (h)
establish  such rules and  regulations  and appoint such agents as it shall deem
appropriate  for the proper  administration  of the Plan; and (i) make any other
determination  and take any other action that the Committee  deems  necessary or
desirable for  administration  of the Plan.  The Committee  may, in its sole and
absolute  discretion,  and subject to the  provisions of the Plan,  from time to
time delegate any or all of its  authority to  administer  the Plan to any other
persons  or  committee  as it deems  necessary  or  appropriate  for the  proper
administration  of the Plan, except that no such delegation shall be made in the
case of Awards  intended to be  qualified  under  Section  162(m) of the Code or
Awards  granted to  Participants  who are subject to Section 16 of the  Exchange
Act. The decisions of the Committee shall be final,  conclusive and binding with
respect to the  interpretation and administration of the Plan and any grant made
under it. The Committee shall make, in its sole discretion,  all  determinations
arising in the  administration,  construction or  interpretation of the Plan and
Awards under the Plan, including the right to construe disputed or doubtful Plan
or Award terms and provisions,  and any such  determination  shall be conclusive
and binding on all persons,  except as otherwise  provided by law. A majority of
the  members of the  Committee  may  determine  its actions and fix the time and
place of its meetings.
 
The Committee  shall be authorized to make  adjustments in Awards in recognition
of  unusual or  nonrecurring  events  affecting  the  Company  or its  financial
statements or changes in applicable laws,  regulations or accounting principles.
Except as provided  in Section 11, the  Committee  shall be  authorized  to make
adjustments  in  Performance  Award  criteria or in the terms and  conditions of
other Awards in  recognition  of unusual or  nonrecurring  events  affecting the
Company or its financial  statements or changes in applicable laws,  regulations
or  accounting  principles.  The  Committee  may correct any defect,  supply any
omission or reconcile any  inconsistency  in the Plan or any Award in the manner
and to the extent it shall deem desirable to carry it into effect.  In the event
that the Company shall assume  outstanding  employee benefit awards or the right
or obligation to make future such awards in connection  with the  acquisition of
or combination with another  corporation or business entity,  the Committee may,
in its discretion,  make such  adjustments in the terms of Awards under the Plan
as it shall deem appropriate.
 
To the extent  applicable,  this Plan is intended to comply with the  applicable
requirements  of Rule 16b-3 of the Exchange Act and Sections  162(m) and 409A of
the Code and, and this Plan shall be limited,  construed  and  interpreted  in a
manner so as to comply therewith.
 
The Committee may include in any Award  Agreement  restrictions  and  conditions
that provide for the  forfeiture  of any Award or permits the Company to recover
amounts from Participants who engage in detrimental  activity (as defined in the
Award Agreement).
 
SECTION 4. SHARES SUBJECT TO THE PLAN
 
Subject to  adjustment,  9,200,000  Shares shall be  authorized  for issuance of
Awards  granted under the Plan.  For purposes of  determining  the Share reserve
under this  Section  4, each Share  issued  pursuant  to an Award of  Restricted
Stock, Performance Awards,  Restricted Stock Units or deferred stock units shall
count as three Shares.
 
Any Shares issued hereunder may consist,  in whole or in part, of authorized and
unissued  Shares,  treasury  Shares or Shares  purchased  in the open  market or
otherwise.
 
The maximum number of Shares subject to any Option,  Stock Appreciation Right or
any equity-based Award that is intended to be  "performance-based  compensation"
within the  meaning of Section  162(m)(4)(C)  of the Code that may be granted to
each  Participant  shall not exceed  1,500,000  Shares (subject to adjustment as
provided below) during any three year period, of which up to 500,000 (subject to
adjustment as provided below) may be used for Restricted Stock, Restricted Stock
Units,  deferred  stock  units  and  equity-based  Performance  Awards  that are
intended to be  "performance-based  compensation"  within the meaning of Section
162(m)(4)(C) of the Code. With respect to non-equity  based  Performance  Awards
settled in cash that are intended to be "performance-based  compensation" within
the meaning of Section  162(m)(4)(C) of the Code, the maximum amount that may be
paid to each Participant  during each fiscal year of the Company with respect to
such Awards is $5,000,000.
 
In the event of any  merger,  reorganization,  consolidation,  recapitalization,
stock  dividend,   stock  split,  reverse  stock  split,   spin-off  or  similar
transaction or other change in corporate  structure  affecting the Shares,  such
adjustments and other  substitutions  shall be made to the Plan and to Awards as
the  Committee,  in  its  sole  discretion,   deems  equitable  or  appropriate,
including,  without limitation,  such adjustments in the aggregate number, class
and kind of securities that may be delivered under the Plan, in the aggregate or
to any one Participant,  in the number, class, kind and option or exercise price
of securities  subject to outstanding  Awards granted under the Plan (including,
if the Committee  deems  appropriate,  the  substitution  of similar  options to
purchase the shares of, or other awards  denominated  in the shares of,  another
company)  as  the  Committee  may  determine  to  be  appropriate  in  its  sole
discretion;  provided,  however,  that the number of Shares subject to any Award
shall  always be a whole  number and further  provided  that in no event may any
change  be  made  to  an  Incentive  Stock  Option  which  would   constitute  a
modification within the meaning of Section 424(h)(3) of the Code.
 
If an Award should  expire,  become  forfeited or become  unexercisable  for any
reason without having been exercised or  nonforfeitable in full, the unpurchased
shares  that are  subject  thereto  shall,  unless  the  Plan  shall  have  been
terminated, become available for future grant under the Plan.
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SECTION 5. ELIGIBILITY
 
Awards may be granted  to  eligible  Employees,  officers  of the  Company or an
Affiliate, Consultants and Directors, as determined by the Committee in its sole
discretion. Incentive Stock Options may be granted only to Employees or officers
of the Company, the Parent or a Subsidiary.
 
Each Option shall be designated in the Award Agreement either an Incentive Stock
Option  or  a  Nonqualified   Stock  Option.   However,   notwithstanding   such
designations,  to the extent that the aggregate Fair Market Value (determined as
of the time of grant) of Shares  with  respect to which  Options  designated  as
Incentive  Stock  Options are  exercisable  for the first time by a  Participant
during any calendar year (under all plans of the Company) exceeds $100,000, such
excess shall be treated as a separate Nonqualified Stock Option.
 
The Plan  shall not  confer  upon any  Participant  any right  with  respect  to
continuation  of employment,  consulting or directorship  relationship  with the
Company,  nor shall it interfere in any way with such Participant's right or the
Company's  right to  terminate  his or her  employment,  consulting  or director
relationship at any time, with or without cause.
 
Awards  shall not be granted in a manner  which would be  considered a repricing
without stockholder approval.
 
SECTION 6.  STOCK OPTIONS
 
Options may be granted hereunder to any Participant, either alone or in addition
to other  Awards  granted  under the Plan and shall be subject to the  following
terms and conditions:
 
The Option price per Share shall be  determined  by the Committee on the date of
grant, but shall not be not less than the Fair Market Value of the Shares on the
date the Option is granted;  provided,  however, if an Incentive Stock Option is
granted to a Ten  Percent  Stockholder,  the Option  price per Share shall be no
less than 110% of the Fair Market  Value of the Shares on the date the Option is
granted.  The Award  Agreement  shall state the number of Shares  subject to the
Option and the vesting term, as determined by the Committee.  The exercisability
period for  Incentive  Stock  Options  shall not exceed ten years from the grant
date, provided,  however, the term of an Incentive Stock Option granted to a Ten
Percent  Stockholder may not exceed five years. A Nonqualified  Stock Option may
be  exercisable  for a period of up to ten years.  Subject  to  Section  11, the
Committee may in its discretion make any Options exercisable.
 
All Options shall terminate upon their expiration,  their surrender, upon breach
by the  Participant of any provisions of the Option,  or in accordance  with any
other rules and procedures  incorporated into the terms and conditions governing
the Options as the Committee  shall deem  advisable or  appropriate.  The Option
shall contain a provision that all the  applicable  terms and conditions of this
Plan are incorporated by reference therein.
 
Options  shall be  exercisable  only to the  extent  the  Participant  is vested
therein,  subject to any  restriction  that the Committee shall determine and be
specified in the Award Agreement.  Unless otherwise determined by the Committee,
an Option will be deemed exercised by the Participant, or in the event of death,
an option shall be deemed  exercised by the estate of the  Participant,  or by a
person who acquired the right to exercise such option by bequest or inheritance,
upon  delivery  of (i) a  written  notice  of  exercise  to the  Company  or its
representative,  or by using  other  methods  of notice as the  Committee  shall
adopt, and (ii) accompanying payment of the Option price as follows: (1) in cash
or by check, bank draft or money order payable to the order of the Company;  (2)
solely to the extent  permitted by applicable law, if the Common Stock is traded
on the New York Stock  Exchange,  any other national  securities  exchange,  the
Nasdaq Stock Market or quoted on a national  quotation  system  sponsored by the
National  Association  of  Securities  Dealers,  and the  Committee  authorizes,
through a procedure whereby the Participant delivers irrevocable instructions to
a broker  reasonably  acceptable  to the  Committee  to deliver  promptly to the
Company an amount  equal to the purchase  price;  or (3) on such other terms and
conditions as may be acceptable to the Committee (including, without limitation,
the  relinquishment  of  Options or by payment in full or in part in the form of
Shares  owned by the  Participant  for a period of at least  six  months or such
other period necessary to avoid a charge, for accounting  purposes,  against the
Company's  earnings as reported in the Company's  financial  statements (and for
which  the  Participant  has  good  title  free  and  clear  of  any  liens  and
encumbrances)  based on the Fair Market  Value of the Shares on the payment date
as  determined  by the  Committee).  No  Shares  shall be issued  until  payment
therefor,  as provided herein,  has been made or provided for in accordance with
any  restrictions  as the Committee  shall adopt.  The notice of exercise,  once
delivered, shall be irrevocable.
 
Except  as  otherwise  provided  herein or unless  otherwise  determined  by the
Committee  at  grant,  Options  that  are  not  vested  as  of  the  date  of  a
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Participant's  Termination  for any reason shall  terminate and expire as of the
date of such  Termination.  The Option shall also be subject to such other terms
and conditions, as the Committee shall deem advisable or appropriate, consistent
with the  provisions  of the Plan as herein set forth.  In  addition,  Incentive
Stock Options  shall  contain such other  provisions as may be necessary to meet
the requirements of the Code and the Treasury Department rulings and regulations
issued hereunder with respect to Incentive Stock Options.
 
Unless otherwise  determined by the Committee at grant, all Options granted to a
Participant  (other than a Director)  will vest in  accordance  with the vesting
schedule  provided  in  the  Award  Agreement,   and  upon  such   Participant's
Termination, all then vested Options will remain exercisable as follows, subject
to the  original  stated  term of the  Option  (i)  three  years in the event of
Retirement; (ii) one year in the event of the Participant's death (in which case
the Participant's  estate or legal  representative may exercise such Option); or
(iii) three months for any other Termination (other than for Cause).
 
Unless otherwise  determined by the Committee at grant, all Options granted to a
Director shall vest as follows:  (i) one-third on each  anniversary of the grant
date,  provided  that the  Participant  remains a  Director  on each  applicable
vesting  date;  and (ii) all  outstanding  Options shall  immediately  vest upon
Retirement, failure to be re-elected or death.
 
Unless  otherwise  determined  by the  Committee  at  grant,  upon a  Director's
Termination all then vested Options shall remain exercisable as follows, subject
to the  original  stated term of the Option:  (i) five years in the event of the
Retirement  of a  Director;  or (ii) one year in the event of the  Participant's
death (in  which  case the  Participant's  estate  or legal  representative  may
exercise such Option),  voluntary  resignation that is not considered Retirement
or failure to be re-elected.
 
To the extent that the  Participant  was not  entitled to exercise the Option at
the date of such Termination, or if Participant does not exercise such Option to
the  extent so  entitled  within the time  specified  herein,  the Option  shall
terminate.
 
Unless  otherwise  determined  by the  Committee  at  grant,  in the  event of a
Termination  for Cause,  all  outstanding  Options  (whether vested or unvested)
shall immediately terminate upon such Termination.
 
SECTION 7. RESTRICTED STOCK
 
A Restricted  Stock Award shall be subject to  restrictions  (if any) imposed by
the  Committee  at the  time of  grant  for a period  of time  specified  by the
Committee  (the  "Restriction  Period").  Restricted  Stock Awards may be issued
hereunder  to  Participants  for  no  cash  consideration  or for  such  minimum
consideration  as may be required by applicable law, either alone or in addition
to other Awards granted under the Plan. Any Restricted Stock grant shall also be
subject  to such  other  terms  and  conditions,  as the  Committee  shall  deem
advisable or  appropriate,  consistent with the provisions of the Plan as herein
set forth.
 
Any Restricted  Stock issued  hereunder may be evidenced in such manner,  as the
Committee, in its sole discretion,  shall deem appropriate,  including,  without
limitation,  book entry  registration  or  issuance  of a stock  certificate  or
certificates.  In the event any stock  certificates  are  issued in  respect  of
Shares of Restricted  Stock awarded under the Plan, such  certificates  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 Award.
 
Except as  otherwise  provided  in an Award  Agreement,  the  Participant  shall
possess all incidents of ownership  with respect to Shares of  Restricted  Stock
during the  Restriction  Period,  including  the right to  receive  or  reinvest
dividends  with  respect  to such  Shares  (which  may be  subject  to the  same
restrictions as the Restricted Stock) and to vote such Shares.  Certificates for
unrestricted  Shares shall be delivered to the Participant  promptly after,  and
only after, the Restriction Period shall expire without forfeiture in respect of
such Awards of Restricted Stock except as the Committee, in its sole discretion,
shall otherwise determine to use another system, such as book entries by the
transfer agent, as evidencing ownership of shares of Restricted Stock.
 
During  the  Restriction  Period,  the  recipient  of such  Award  shall  not be
permitted to sell, transfer,  pledge, hypothecate or assign shares of Restricted
Stock  awarded  under  the  Plan  except  by will or the  laws  of  descent  and
distribution. Any attempt to dispose of any Restricted Stock in contravention of
any such restrictions shall be null and void and without effect.
 
The Restricted Stock Award Agreement shall contain such other terms,  provisions
and  conditions,  not  inconsistent  with the Plan as may be  determined  by the
Committee in its sole  discretion.  In addition,  the  provisions  of Restricted
Stock Award Agreement need not be the same with respect to each purchaser
 
The  Committee  shall  establish  the vesting  schedule (if any)  applicable  to
Restricted  Stock granted  hereunder,  which vesting  schedule shall specify the
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period  of  time,  the  increments  in  which a  Participant  shall  vest in the
Restricted  Stock and/or any applicable  Performance Goal (as defined in Section
11) requirements, subject to any restrictions that the Committee shall determine
and specify in the applicable Award Agreement.  The Committee may also condition
the grant of Restricted  Stock upon the  attainment of  Performance  Goals.  Any
Restricted  Stock Award that is  intended to comply with the  "performance-based
compensation" within the meaning of Section 162(m)(4)(C) of the Code shall vest,
or be granted, subject to the attainment of Section 162(m) Performance Goals and
Sections 11 and 13 hereof.
 
Unless  otherwise  determined  by the Committee at grant,  upon a  Participant's
Termination  for  any  reason  during  the  Restriction   Period,  all  unvested
Restricted Stock shall be forfeited.
 
SECTION 8. STOCK APPRECIATION RIGHTS
 
Stock  Appreciation  Rights may be granted hereunder to any Participant,  either
alone ("freestanding") or in addition to other Awards granted under the Plan and
may, but need not,  relate to a specific  Option  granted  under  Section 6. The
provisions  of Stock  Appreciation  Rights need not be the same with  respect to
each recipient.  Any Stock  Appreciation  Right related to a Nonqualified  Stock
Option  may be  granted  at the same time such  Option is granted or at any time
thereafter before exercise or expiration of such Option.  Any Stock Appreciation
Right related to an Incentive Stock Option must be granted at the same time such
Option is granted.  In the case of any Stock  Appreciation  Right related to any
Option,  the Stock  Appreciation  Right or applicable  portion  thereof shall be
exercisable  only at such time and to the extent of the related Option and shall
terminate and no longer be exercisable  upon the  Termination or exercise of the
related Option,  except that a Stock  Appreciation Right granted with respect to
less than the full  number of Shares  covered by a related  Option  shall not be
reduced  until and then only to the extent the  exercise or  termination  of the
related   Option  exceeds  the  number  of  Shares  not  covered  by  the  Stock
Appreciation  Right.  The  Committee  may impose  such terms and  conditions  or
restrictions  on the grant of any Stock  Appreciation  Right,  as it shall  deem
advisable or appropriate;  provided that a freestanding Stock Appreciation Right
shall not have an exercise  price less than Fair Market  Value of a Share on the
date of grant or a term of greater than ten years. Any Stock Appreciation Right
that is settled in any form other than Shares shall comply with Section 409A of
the Code.
 
SECTION 9.  RESTRICTED STOCK UNITS
 
Restricted  Stock Units may be issued either alone, in addition to, or in tandem
with other Awards  granted under the Plan and/or cash awards made outside of the
Plan.  After the Committee  determines that it will grant Restricted Stock Units
under the Plan, it shall  determine the conditions and  restrictions  related to
the Award, including the Restricted Unit Period (as defined below) applicable to
the  Award,  the  imposition,  if  any,  of  any  performance--based   condition
(including  attainment of Performance  Goals) or other restriction on the Award,
the  number of  Restricted  Stock  Units,  which  shall be set forth in an Award
Agreement.
 
With respect to an Award of Restricted Stock Units, which becomes nonforfeitable
due to the lapse of time, the Committee shall prescribe in the Award  Agreement,
the  period in which such  Restricted  Stock Unit  becomes  nonforfeitable  (the
"Restricted Unit Period").  Notwithstanding  any provision to the contrary,  the
Restricted Stock Unit, which becomes  nonforfeitable  due to the satisfaction of
certain  pre-established  performance-based  objectives or any other  conditions
imposed by the Committee, the measurement date of whether such performance-based
objectives or other  conditions  have been satisfied  shall be a date no earlier
than the first anniversary of the date of the award.
 
The  Committee may also  condition the grant of Restricted  Stock Units upon the
attainment  of  Performance  Goals.  Any  Restricted  Stock  Unit  Award that is
intended to comply with the "performance-based  compensation" within the meaning
of Section  162(m)(4)(C)  of the Code shall vest, or be granted,  subject to the
attainment of Section 162(m) Performance Goals and Sections 11 and 13 hereof.
 
A Participant who is awarded  Restricted  Stock Units shall possess no incidents
of ownership with respect to such Awards  provided that the Award  Agreement may
provide for payments in lieu of dividends to such Participant.
 
Awards that are valued by reference to, or are otherwise based on, Shares may be
granted  hereunder to Participants,  either alone or in addition to other Awards
granted under the Plan, and Restricted  Stock Units shall also be available as a
form of  payment  in the  settlement  of other  Awards  granted  under the Plan.
Restricted  Stock  Units  may be  paid in  Shares,  cash  or any  other  form of
property,  as the Committee  shall  determine.  Subject to the provisions of the
Plan,  the  Committee  shall have sole and complete  authority to determine  the
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Employees, officers of the Company or an Affiliate,  Directors or Consultants to
whom and the time or times at which  such  Awards  shall be made,  the number of
Shares to be granted  pursuant to such Awards,  and all other  conditions of the
Awards.  Any  Restricted  Stock Unit Awards shall be subject to such other terms
and conditions as the Committee shall deem advisable or appropriate,  consistent
with the  provisions  of the Plan as herein  set  forth.  Unless  the  Committee
determines otherwise to address specific  considerations,  Restricted Stock Unit
Awards  granted under the Plan shall have a vesting  period of not less than one
year.
 
Solely to the extent  permitted by the Committee and pursuant to Section 409A of
the Code, a Participant may elect to defer the payment of Restricted Stock Units
in a manner that  complies  with Section 409A of the Code,  as determined by the
Committee in its sole discretion.
 
Shares  subject to Awards granted under this Section 9 may be issued for no cash
consideration or for such minimum consideration as may be required by applicable
law. To the extent applicable,  Restricted Stock Units shall comply with Section
409A of the Code.
 
SECTION 10.  FURTHER ELECTIONS
 
Each  Director  may  elect  to  have  all  or  any  portion  of  their  director
compensation  (as  determined  by the  Committee)  to be received in the form of
deferred  Shares at the discretion of the Committee.  Such election must be made
in writing subject to the rules prescribed by the Committee,  which shall comply
with  Section  409A of the Code.  If a  Participant  elects to receive  deferred
Shares, the Company on account will hold such Shares for the Participant and the
deferred  Shares will be maintained on behalf of the Director until  Termination
or such other period the Participant may have elected in accordance with Section
409A of the Code.  The  period of  deferral  will be for a minimum  of one year.
During the deferral  period,  the Participant will have no right to transfer any
rights  under  his or her  deferred  Shares  and will  have no other  rights  of
ownership  therein.  Any election  that does not comply with Section 409A of the
Code shall be deemed to be amended to comply  with  Section  409A of the Code as
determined by the Committee and to the extent such  provision  cannot be amended
to comply therewith, such provision shall be null and void.
 
SECTION 11. PERFORMANCE AWARDS
 
Performance  Awards  may  be  paid  in  cash,  Shares,  other  property,  or any
combination  thereof,  and may be subject to such other terms and  conditions as
the  Committee  shall  deem  advisable  or  appropriate,   consistent  with  the
provisions of the Plan as set forth,  in the sole discretion of the Committee at
the time of payment.  The performance levels to be achieved for each Performance
Period  and the  amount of the  Award to be  distributed  shall be  conclusively
determined by the Committee.  Performance Awards may be paid in a lump sum or in
installments  following  the close of the  Performance  Period or, in accordance
with procedures established by the Committee, on a deferred basis. The Committee
may  designate  whether any  Performance  Award,  either alone or in addition to
other Awards granted under the Plan, being granted to any Employee or officer of
the Company or an Affiliate is intended to be  "performance-based  compensation"
as that term is used in Section 162(m) of the Code.  Any such awards  designated
to be  "performance-based  compensation" shall be conditioned on the achievement
of one or more  performance  measures,  to the extent  required by Code  Section
162(m), and shall be issued in accordance with Section 13.
 
Unless  otherwise  determined  by  the  Committee,  the  grant,  vesting  and/or
exercisability of Performance Awards shall be conditioned,  in whole or in part,
on the attainment of performance targets, in whole or in part, related to one or
more  performance  goals over a  Performance  Period.  For any such  Performance
Awards that are intended to qualify as  "performance-based  compensation" within
the meaning of Section  162(m)(4)(C)  of the Code,  the  performance  targets on
which the grant, vesting and/or exercisability are conditioned shall be selected
by the Committee from among the following goals (the "Section 162(m) Performance
Goals"):  enterprise value or value creation  targets of the Company,  Operating
Income before  Depreciation and Amortization,  Operating Income, Free Cash Flow,
Net  Income,  Net  Income  Per  Share,  Revenues,   earnings  per  share,  total
shareholder return,  return on equity,  share price, return in excess of cost of
capital,  profit in  excess of cost of  capital,  return  on  assets,  return on
invested capital,  operating margin, or any combination thereof, or in reference
to other  companies  or indices.  In  addition,  for any Awards not  intended to
qualify  as  "performance-based  compensation"  within  the  meaning  of Section
162(m)(4)(C) of the Code, the Committee may establish  performance targets based
on other performance  goals as it deems  appropriate  (together with the Section
162(m) Performance Goals, the "Performance Goals"). The Performance Goals may be
described in terms of objectives that are related to the individual  Participant
or objectives that are Company-wide  measured on an absolute or cumulative basis
or on the basis of percentage of improvement over time, or measured  relative to
selected peer companies or a market index.
 
The  Committee  retains the right to reduce any Award  below the maximum  amount
that could be paid based on the degree to which the Performance Goals related to
such Award were  attained.  The Committee may not increase any Award intended to
qualify  as  "performance-based  compensation"  within  the  meaning  of Section
162(m)(4)(C) of the Code in any manner that would adversely affect the treatment
of such Award.
 
In  the  event  that,  during  any  Performance  Period,  any  recapitalization,
reorganization,  merger,  acquisition,  divestiture,   consolidation,  spin-off,
combination, liquidation, dissolution, sale of assets or other similar corporate
transaction or event, or any other  extraordinary  event or circumstance  occurs
which has the effect,  as determined by the Committee,  in its sole and absolute
discretion,  of distorting the  applicable  performance  criteria  involving the
Company,  including,  without limitation,  changes in accounting standards,  the
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Committee may adjust or modify, as determined by the Committee,  in its sole and
absolute  discretion,  the calculation of the  Performance  Goals, to the extent
necessary to prevent reduction or enlargement of the Participant's  Awards under
the  Plan  for  such  Performance  Period   attributable  to  such  transaction,
circumstance or event. All  determinations  that the Committee makes pursuant to
this Section shall be conclusive and binding on all persons for all purposes.
 
SECTION 12. CHANGE IN CONTROL PROVISIONS
 
Unless the Committee shall determine otherwise at the time of grant with respect
to a particular  Award, and  notwithstanding  any other provision of the Plan to
the  contrary,  upon a  Termination  of a  Participant  (other  than a Director)
without Cause during the 24-month period  following a Change in Control and upon
a Change in Control with respect to a Participant who is a Director:
 
(i)  any Options and Stock Appreciation  Rights  outstanding,  and which are not
     then  exercisable  and vested,  shall become  immediately  fully vested and
     exercisable;
(ii) the  restrictions  and deferral  limitations  applicable to any  Restricted
     Stock shall lapse, and such Restricted Stock shall immediately  become free
     of  all   restrictions   and   limitations  and  become  fully  vested  and
     transferable to the full extent of the original grant;
(iii)all  Performance  Awards  shall be  considered  to be earned and payable in
     full, based on the applicable performance criteria or, if not determinable,
     at the target level and any deferral or other  restriction  shall lapse and
     such Performance Awards shall be immediately settled or distributed; and
(iv) the restrictions and deferral  limitations and other conditions  applicable
     to any Restricted Stock Units or other Awards shall immediately  lapse, and
     any such  Restricted  Stock Units or other  Awards shall become free of all
     restrictions,  limitations  or  conditions  and  become  fully  vested  and
     transferable to the full extent of the original grant.
 
Notwithstanding  any other  provision  of the Plan,  in the event of a Change in
Control, the Committee may, in its discretion, provide that each Option or Stock
Appreciation  Right  shall,  upon the  occurrence  of a Change  in  Control,  be
cancelled in exchange for a cash payment to be made within 60 days of the Change
in Control in an amount equal to the amount by which the per share price paid in
the applicable transaction for the Shares exceeds the purchase price per Award.
 
Notwithstanding  any other  provision  of the Plan,  in the event of a merger or
consolidation  in which the Company is not the surviving  entity or in the event
of any transaction that results in the acquisition of  substantially  all of the
Company's  outstanding  Shares  by a single  person  or  entity or by a group of
persons  and/or  entities  acting  in  concert,  or in the  event of the sale or
transfer  of  all or  substantially  all of the  Company's  assets  (all  of the
foregoing being referred to as an "Acquisition  Event"), then the Committee may,
in its  sole  discretion,  terminate  all  outstanding  and  unexercised  Awards
effective  as of the date of the  Acquisition  Event,  by  delivering  notice of
termination  to  each  Participant  at  least  20  days  prior  to the  date  of
consummation of the Acquisition  Event, in which case during the period from the
date on which such notice of termination is delivered to the consummation of the
Acquisition  Event,  each such  Participant  shall have the right to exercise in
full all of his or her Awards that are then  outstanding  (without regard to any
limitations on exercisability otherwise contained in the Award Agreements),  but
any such  exercise  shall be contingent  on the  occurrence  of the  Acquisition
Event, and, provided that, if the Acquisition Event does not take place within a
specified period after giving such notice for any reason whatsoever,  the notice
and exercise  pursuant  thereto shall be null and void. If an Acquisition  Event
occurs but the Committee does not terminate the  outstanding  Awards pursuant to
this  paragraph,  then the other  provisions of this Section 12 shall apply,  as
determined by the Committee.
 
SECTION 13. CODE SECTION 162(m) PROVISIONS
 
Notwithstanding any other provision of the Plan, if the Committee  determines at
the time, a Performance Award is granted to a Participant who is then an officer
that  such  Participant  is, or is likely to be as of the end of the tax year in
which the Company would ordinarily claim a tax deduction in connection with such
Award, a Covered  Employee,  then the Committee may provide that this Section 13
is applicable to such Award.
 
If a  Performance  Award is  subject to this  Section  13,  then the  lapsing of
restrictions  thereon and the  distribution  of cash,  Shares or other  property
pursuant thereto,  as applicable,  shall be subject to the achievement of one or
more Section 162(m) Performance Goals.
 
The Committee  shall have the power to impose such other  restrictions on Awards
subject to this Section 13, as it may deem  necessary or  appropriate  to ensure
that such Awards qualify as "performance-based  compensation" within the meaning
of Section 162(m)(4)(C) of the Code
 
Notwithstanding  the  foregoing,  if any Award is  intended  to comply  with the
"performance  based"  compensation  exception under Section  162(m)(4)(C) of the
Code and if the grant of such Award or the lapse of restrictions is based on the
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attainment of Section 162(m)  Performance  Goals,  the Committee shall establish
such goals and the  applicable  number of Awards to be granted or the applicable
vesting  percentage  of the Award  applicable  to each  Participant  or class of
Participants in writing prior to the beginning of the applicable  fiscal year or
at such  later  date as  otherwise  determined  by the  Committee  and while the
outcome of the Section  162(m)Performance  Goals are substantially  uncertain in
accordance with Section 162(m) of the Code.
 
SECTION 14. AMENDMENTS AND TERMINATION
 
The Board or the Committee may amend, alter,  suspend,  discontinue or terminate
the Plan or any portion  thereof at any time;  provided,  however,  that no such
amendment, alteration, suspension,  discontinuation or termination shall be made
without (a) stockholder approval if such approval is necessary to qualify for or
comply  with  applicable  law  or  stock  exchange  rules   (including   without
limitation,  Section 162(m) of the Code, Section 422 of the Code with respect to
Incentive Stock Options and New York Stock Exchange  Rules),  (b) the consent of
the affected  Participant,  if such action would materially impair the rights of
such Participant  under any outstanding  Award or (c) approval of the holders of
at least a majority of the outstanding  Shares with respect to any alteration or
amendment to the Plan which  increases the maximum number of Shares which may be
issued  under the Plan or the  number  of Shares  which may be issued to any one
Participant,  extends  the  term of the  Plan or of  Awards  granted  hereunder,
changes  the  eligibility  criteria  in Section 5, or reduces  the  exercise  or
purchase  price  of  Awards  below  that  is  now  provided  for  in  the  Plan.
Notwithstanding  the foregoing,  the Committee may amend this Plan and any Award
Agreement to comply with applicable law, including, without limitation,  Section
409A of the Code and may  amend  any  Award  Agreement  at any  time  without  a
Participant's consent.
 
The Committee may delegate to another  committee  (or  subcommittee),  as it may
appoint, the authority to take any action consistent with the terms of the Plan,
either before or after an Award has been granted, which such other committee (or
subcommittee) deems necessary or advisable to comply with any government laws or
regulatory  requirements  of a foreign  country,  including  but not limited to,
granting  Awards,  modifying or amending the terms and conditions  governing any
Awards,  or  establishing  any local country plans as sub-plans to this Plan. In
addition,  under  all  circumstances,  the  Committee  may make  non-substantive
administrative  changes  to the Plan as to  conform  with or take  advantage  of
governmental requirements, statutes or regulations.
 
SECTION 15. DIVIDENDS
 
Subject to the provisions of the Plan and any Award Agreement,  the recipient of
an  Award  (including,  without  limitation,  any  deferred  Award)  may,  if so
determined by the Committee, be entitled to receive,  currently or on a deferred
basis, cash or stock dividends,  or cash payments in amounts  equivalent to cash
or stock dividends on Shares ("dividend equivalents") with respect to the number
of Shares  covered by the Award,  as  determined by the  Committee,  in its sole
discretion,  and the  Committee  may provide that such amounts (if any) shall be
deemed to have been reinvested in additional Shares or otherwise reinvested.
 
SECTION 16. GENERAL PROVISIONS
 
(a)  The Committee shall determine and set forth in an Award Agreement the terms
     and  conditions of each Award.  Each  Agreement (i) shall state the date of
     grant and the name of the Participant,  (ii) shall specify the terms of the
     Award,  (iii) shall be signed by a person  designated by the Committee and,
     if so required by the Committee, by the Participant, (iv) shall incorporate
     the  Plan by  reference  and (v)  shall  be  delivered  or  otherwise  made
     available to the Participant.  The Agreement shall contain such other terms
     and  conditions  as are required by the Plan and, in  addition,  such other
     terms not  inconsistent  with the Plan as the Committee may deem advisable.
     The  Committee  shall have the  authority  to adjust the terms of the Award
     Agreements  relating  to an Award in a  jurisdiction  outside of the United
     States (i) to comply with the laws or such  jurisdiction  or (ii) to obtain
     more  favorable  tax treatment for the Company  and/or any  Subsidiary,  as
     applicable,  and/or  for  the  Participants  in  such  jurisdiction.   Such
     authority shall be  notwithstanding  the fact that the  requirements of the
     local jurisdiction may be more restrictive than the terms set forth in the
     Plan.
(b)  An Award may not be sold, pledged, assigned, hypothecated,  transferred, or
     disposed  of in any manner  other than by will or by the laws of descent or
     distribution and may be exercised,  during the lifetime of the Participant,
     only  by  the  Participant;  provided  that  the  Committee,  in  its  sole
     discretion,  may permit the donative  transfer of any award under the Plan,
     other than an Incentive Stock Option,  by the  Participant  subject to such
     terms and conditions as the Committee may establish.
(c)  No Participant  shall have the right to be selected to receive an Option or
     other Award under this Plan or, having been so selected,  to be selected to
     receive a future Award grant or Option.  The Awards under this Plan are not
     intended  to be treated as  compensation  for any  purpose  under any other
     Company plan.
(d)  No Participant shall have any claim to be granted any Award under the Plan,
     and there is no  obligation  for  uniformity  of  treatment of Employees or
     Participants under the Plan.
(e)  The  prospective  recipient  of any Award  under the Plan shall  not,  with
     respect to such Award,  be deemed to have become a Participant,  or to have
     any rights  with  respect to such Award,  until and unless  such  recipient
     shall have accepted any Award Agreement or other instrument  evidencing the
     Award.
(f)  Nothing in the Plan or any Award  granted under the Plan shall be deemed to
     constitute  an  employment  or service  contract  or confer or be deemed to
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     confer on any  Participant  any right to  continue in the employ or service
     of,  or to  continue  any  other  relationship  with,  the  Company  or any
     Affiliate or limit in any way the right of the Company or any  Affiliate to
     terminate a Participant's service at any time, with or without cause.
(g)  All  certificates for Shares delivered under the Plan pursuant to any Award
     shall be subject to such  stock-transfer  orders and other  restrictions as
     the Committee may deem  advisable  under the rules,  regulations  and other
     requirements of the Securities and Exchange Commission,  any stock exchange
     upon which the Shares are then listed,  and any applicable federal or state
     securities  law, and the  Committee may cause a legend or legends to be put
     on  any  such   certificates   to  make   appropriate   reference  to  such
     restrictions.
(h)  No  Award  granted  hereunder  shall  be  construed  as an  offer  to  sell
     securities of the Company,  and no such offer shall be outstanding,  unless
     and until the Committee in its sole discretion has determined that any such
     offer, if made,  would comply with all applicable  requirements of the U.S.
     federal  securities  laws and any other laws to which such offer,  if made,
     would be subject.
(i)  This  Plan is  intended  to  constitute  an  "unfunded"  plan  and  nothing
     contained  herein  shall  give any such  Participant  any  rights  that are
     greater than those of a general unsecured creditor of the Company.
(j)  The  Company  shall be  authorized  to withhold  from any Award  granted or
     payment due under the Plan the amount of  withholding  taxes due in respect
     of an Award or payment  hereunder  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.  The  Committee  shall  be
     authorized to establish  procedures for election by Participants to satisfy
     such obligation for the payment of such taxes by delivery of or transfer of
     Shares  to the  Company  (to the  extent  the  Participant  has  owned  the
     surrendered  shares  for  more  than six  months  if such a  limitation  is
     necessary  to  avoid  a  charge  to the  Company  for  financial  reporting
     purposes),  or by  directing  the  Company  to  retain  Shares  (up  to the
     employee's minimum required tax withholding rate) otherwise  deliverable in
     connection with the Award.
(k)  Nothing contained in the Plan shall prevent the Committee or the Board from
     adopting  other  or  additional  compensation   arrangements,   subject  to
     stockholder  approval if such approval is required;  and such  arrangements
     may be either generally applicable or applicable only in specific cases.
(l)  Any Award shall contain a provision  that it may not be exercised at a time
     when the  exercise  thereof  or the  issuance  of shares  thereunder  would
     constitute a violation of any federal or state law or listing  requirements
     of the New York  Stock  Exchange  for such  shares  or a  violation  of any
     foreign  jurisdiction  where Awards are or will be granted  under the Plan.
     The provisions of the Plan shall be construed,  regulated and  administered
     according  to the laws of the State of New York  without  giving  effect to
     principles  of conflicts  of law,  except to the extent  superseded  by any
     controlling Federal statute.
(m)  If any provision of the Plan is or becomes or is deemed invalid, illegal or
     unenforceable  in any  jurisdiction,  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 construed or deemed amended without,  in the determination of the
     Committee, materially altering the intent of the Plan, it shall be stricken
     and the remainder of the Plan shall remain in full force and effect.
(n)  Awards may be granted to Participants who are foreign nationals or employed
     outside the United States, or both, on such terms and conditions  different
     from those  applicable to Awards to Employees or officers of the Company or
     an Affiliate  employed in the United  States as may, in the judgment of the
     Committee,  be necessary or desirable in order to recognize  differences in
     local law or tax policy.  The Committee  also may impose  conditions on the
     exercise or vesting of Awards in order to minimize the Company's obligation
     with respect to tax  equalization  for Employees or officers of the Company
     or an Affiliate on assignments outside their home country.
(o)  If approved by the Committee in its sole discretion, an absence or leave of
     an Employee (or officer of the Company or an Affiliate) because of military
     or governmental service, disability or other reason shall not be considered
     an interruption of service for any purpose under the Plan.
 
SECTION 17. TERM OF PLAN
 
The Plan shall terminate on the tenth  anniversary of the Effective Date, unless
sooner  terminated  by the Board  pursuant to Section 14,  provided  that Awards
granted prior to such anniversary may extend beyond such date.
 
SECTION 18. COMPLIANCE WITH SECTION 16
 
With  respect  to  Participants  subject  to  Section  16 of  the  Exchange  Act
("Members"),  transactions  under  the  Plan are  intended  to  comply  with all
applicable conditions of Rule 16b-3 or its successors under the Exchange Act. To
the extent that  compliance  with any Plan provision  applicable  solely to such
Members that is included solely for purposes of complying with Rule 16b-3 is not
required in order to bring a transaction by such Member in compliance  with Rule
16b-3,  it shall be deemed null and void as to such  transaction,  to the extent
permitted  by law and  deemed  advisable  by the  Committee.  To the  extent any
provision  in the Plan or action by the  Committee  involving  such  Members  is
deemed not to comply with an  applicable  condition  of Rule 16b-3,  it shall be
deemed  null and void as to such  Members,  to the extent  permitted  by law and
deemed advisable by the Committee.