The  purpose of the Plan is to aid the Company  and its  Affiliates  in
recruiting and retaining employees and to motivate such employees to exert their
best efforts on behalf of the Company and its Affiliates by providing incentives
through the  granting of Awards.  The Company  expects that it will benefit from
the added  interest  which such key  employees  will have in the  welfare of the
Company as a result of their proprietary interest in the Company's success.
         The following  capitalized  terms used in the Plan have the  respective
meanings set forth in this Section:
         (a)   "ACT" means the Securities  Exchange Act of 1934, as amended,  or
               any successor thereto.
         (b)   "AFFILIATE"  means  any  entity  that is  consolidated  with  the
               Company for  financial  reporting  purposes  or any other  entity
               designated  by the Board in which the Company or an Affiliate has
               a direct or indirect interest of at least forty percent (40%).
         (c)   "AWARD"  means an  Option,  Stock  Appreciation  Right,  Share of
               Restricted Stock or Other  Stock-Based  Award granted pursuant to
               the Plan.
         (d)   "BOARD" means the Board of Directors of the Company.
         (e)   "CHANGE IN CONTROL"  means the occurrence of any of the following
               (i)   any person or persons acting in concert  (excluding Company
                     benefit plans)  becomes the beneficial  owner of securities
                     of the Company  having at least 25% of the voting  power of
                     the Company's then outstanding securities (unless the event
                     causing the 25%  threshold to be crossed is an  acquisition
                     of voting  common  securities  directly  from the  Company,
                     other  than  upon  the  conversion  of   convertible   debt
                     securities  or other  securities  and/or  the  exercise  of
                     options or warrants); or
               (ii)  any  merger or other  business  combination  involving  the
                     Company,  sale of substantially all of the Company's assets
                     or   combination   of  the  foregoing   transactions   (the
                     "Transactions")   other  than  a  Transaction   immediately
                     following  which the  stockholders  of the  Company and any
                     trustee or fiduciary of any Company  employee  benefit plan
                     immediately  prior to the  Transaction  own at least 65% of
                     the  voting  power,  directly  or  indirectly,  of (A)  the
                     surviving  corporation in any such merger or other business
                     combination;  (B) the purchaser of the Company's assets; or
                     (C) both the surviving corporation and the purchaser in the
                     event of any combination of Transactions; or
               (iii) within any 24 month period,  the persons who were directors
                     immediately  before  the  beginning  of  such  period  (the
                     "Incumbent  Directors")  shall cease (for any reason  other
                     than death) to  constitute at least a majority of the Board
                     or the board of  directors  of a successor  to the Company.
                     For this  purpose,  any  director who was not a director at
                     the  beginning  of such  period  shall be  deemed  to be an
                     Incumbent  Director  if such  director  was  elected to the
                     Board by, or on the  recommendation of or with the approval
                     of, at least two-thirds of the directors who then qualified
                     as Incumbent  Directors  (so long as such  director was not
                     nominated by a person who has expressed an intent to effect
                     a Change in Control  or engage in a proxy or other  control
         (f)   "CODE" means the Internal  Revenue Code of 1986,  as amended,  or
               any successor thereto.
         (g)   "COMMITTEE" means the Compensation and Personnel Committee of the
         (h)   "COMPANY" means EMCOR Group, Inc., a Delaware corporation.
         (i)   "EFFECTIVE  DATE" means the date the  adoption of the Plan by the
               Board is approved by the Company's stockholders.
         (j)   "EXERCISE  PRICE"  means the  purchase  price per Share under the
               terms of an Option as determined pursuant to Section 6(a).
         (k)   "FAIR MARKET VALUE" means,  on a given date,  (i) if there should
               be a public  market for the Shares on such date,  the  average of
               the high  and low  prices  of the  Shares  on the New York  Stock
               Exchange  or, if the  Shares are not  listed or  admitted  on any
               national  securities  exchange,  the  arithmetic  mean of the per
               Share closing bid price and per Share closing asked price on such
               date as quoted on the National  Association of Securities Dealers
               Automated  Quotation  System (or such market in which such prices
               are regularly  quoted) (the  "NASDAQ"),  or, if no sale of Shares
               shall have been reported on the New York Stock Exchange or quoted
               on the NASDAQ on such date, then the  immediately  preceding date
               on which  sales of the  Shares  have been so  reported  or quoted
               shall be used,  and (ii) if there  should not be a public  market
               for the Shares on such date,  the Fair Market  Value shall be the
               value established by the Committee in good faith.
         (l)   "ISO"  means an Option  that is also an  incentive  stock  option
               granted pursuant to Section 6(d).
         (m)   "OPTION" means a stock option granted pursuant to Section 6.
         (n)   "OTHER  STOCK-BASED  AWARDS"  means  awards  granted  pursuant to
               Section 9.
         (o)   "PARTICIPANT"  means an employee or  prospective  employee of the
               Company or an  Affiliate  who is  selected  by the  Committee  to
               participate in the Plan.
         (p)   "PERFORMANCE-BASED AWARDS" means certain Other Stock-Based Awards
               granted pursuant to Section 9(b).
         (q)   "PLAN" means the 2005 Management Stock Incentive Plan, as amended
               from time to time.
         (r)   "RESTRICTED STOCK" means any Share granted under Section 8.
         (s)   "SHARES"  means shares of common  stock of the Company,  $.01 par
               value per share.
         (t)   "STOCK  APPRECIATION  RIGHT"  means  a stock  appreciation  right
               granted pursuant to Section 7.
         (u)   "SUBSIDIARY"  means  a  subsidiary  corporation,  as  defined  in
               Section 424(f) of the Code (or any successor section thereto), of
               the Company.
         The  total  number of  Shares  which  may be  issued  under the Plan is
600,000.  The Shares may  consist,  in whole or in part,  of unissued  Shares or
treasury Shares. The issuance of Shares or the payment of cash upon the exercise
of an Award or in  consideration  of the cancellation or termination of an Award
shall reduce the total number of Shares  available under the Plan as applicable.
Stock  Appreciation  Rights to be settled in Shares  shall also reduce the total
number of Shares  available  under the Plan  regardless  of the actual number of
Shares issued upon settlement of the Stock Appreciation Rights. Shares which are
subject  to  Awards  which  terminate  or  lapse  without  the  payment  of cash
consideration or Shares may be granted again under the Plan.
         (a)   The Plan  shall  be  administered  by the  Committee,  which  may
               delegate  its  duties  and  powers  in  whole  or in  part to any
               subcommittee   thereof   consisting   solely   of  at  least  two
               individuals   who  are  intended  to  qualify  as   "Non-Employee
               Directors" within the meaning of Rule 16b-3 under the Act (or any
               successor  rule thereto)  and, to the extent  required by Section
               162(m) of the Code (or any successor section  thereto),  "outside
               directors" within the meaning thereof.
         (b)   Awards may, in the discretion of the Committee, be made under the
               Plan in assumption of, or in substitution for, outstanding awards
               previously  granted by the Company or its Affiliates.  The number
               of Shares  underlying  such  substitute  awards  shall be counted
               against the aggregate number
               of Shares  available for Awards under the Plan.  The Committee is
               authorized to interpret the Plan, to establish, amend and rescind
               any rules and  regulations  relating to the Plan, and to make any
               other determinations that it deems necessary or desirable for the
               administration  of the Plan. The Committee may correct any defect
               or supply any omission or reconcile any inconsistency in the Plan
               in the manner and to the extent the Committee  deems necessary or
               desirable.  Any decision of the  Committee in the  interpretation
               and  administration of the Plan, as described  herein,  shall lie
               within  its sole and  absolute  discretion  and  shall be  final,
               conclusive and binding on all parties concerned  (including,  but
               not  limited  to,   Participants   and  their   beneficiaries  or
               successors).   The  Committee  shall  have  the  full  power  and
               authority to make, and establish the terms and conditions of, any
               Award to any person eligible to be a Participant, consistent with
               the  provisions  of the  Plan and to waive  any  such  terms  and
               conditions   at  any   time   (including,   without   limitation,
               accelerating or waiving any vesting conditions).
         (c)   The Committee  shall require payment in cash of any amount it may
               determine to be necessary to withhold for federal,  state,  local
               or other taxes as a result of the  exercise,  grant or vesting of
               an  Award.   Unless  the  Committee  specifies   otherwise,   the
               Participant may elect to pay a portion or all of such withholding
               taxes by (a) delivery in Shares or (b) having Shares  withheld by
               the  Company  with a  Fair  Market  Value  equal  to the  minimum
               statutory  withholding  rate  from any  Shares  that  would  have
               otherwise been received by the Participant.
         (a)   No  Award  may  be  granted   under  the  Plan  after  the  tenth
               anniversary  of the Effective  Date,  but Awards granted prior to
               such tenth anniversary may extend beyond that date.
         (b)   No Option or Stock  Appreciation  Right, once granted  hereunder,
               may be repriced.
         The  maximum  number of Shares  covered by Options  that may be awarded
during any calendar year to any  Participant  shall be 200,000.  Options granted
under the Plan  shall be,  as  determined  by the  Committee,  non-qualified  or
incentive  stock options for federal  income tax  purposes,  as evidenced by the
related  Award  agreements,  and  shall  be  subject  to the  foregoing  and the
following  terms and  conditions  and to such other  terms and  conditions,  not
inconsistent therewith, as the Committee shall determine:
         (a)   EXERCISE PRICE.  The Exercise Price per Share shall be determined
               by the  Committee,  but  shall  not be less than 100% of the Fair
               Market Value of the Shares on the date an Option is granted.
         (b)   EXERCISABILITY.   Options   granted   under  the  Plan  shall  be
               exercisable  at such time and upon such terms and  conditions  as
               may be  determined  by the  Committee,  but in no event  shall an
               Option be  exercisable  more than ten years  after the date it is
               granted, except as provided in Section 16 of the Plan.
         (c)   EXERCISE OF OPTIONS.  Except as otherwise provided in the Plan or
               in an Award  agreement,  an Option may be  exercised  for all, or
               from time to time any part,  of the  Shares  for which it is then
               exercisable. For purposes of this Section 6, the exercise date of
               an Option  shall be the date a notice of  exercise is received by
               the  Company,  together  with  provision  for payment of the full
               purchase price in accordance with this Section 6(c). The purchase
               price for the Shares as to which an Option is exercised  shall be
               paid to the Company,  at the election of the Committee,  pursuant
               to one or  more  of the  following  methods:  (i) in  cash or its
               equivalent (e.g., by check);  (ii) in Shares having a Fair Market
               Value equal to the aggregate  Exercise Price for the Shares being
               purchased  and  satisfying  such  other  requirements  as  may be
               imposed by the  Committee;  provided,  that such Shares have been
               held by the  Participant  for no less  than six  months  (or such
               other period as established from time to time by the Committee in
               order to avoid adverse  accounting  treatment  applying generally
               accepted accounting principles);  (iii) partly in cash and partly
               in such  Shares;  or (iv) if  there is a  public  market  for the
               Shares  at  such  time,   through  the  delivery  of  irrevocable
               instructions  to a  broker  to  sell  Shares  obtained  upon  the
               exercise of the Option and to deliver  promptly to the Company an
               amount out of the proceeds of such sale equal
               to the aggregate  Exercise Price for the Shares being  purchased.
               No Participant shall have any rights to dividends or other rights
               of a  stockholder  with  respect  to Shares  subject to an Option
               until the Participant has given written notice of exercise of the
               Option,  paid in full for such  Shares and,  if  applicable,  has
               satisfied any other conditions  imposed by the Committee pursuant
               to the Plan.
         (d)   ISOS.  The  Committee  may grant  Options under the Plan that are
               intended to be ISOs. Such ISOs shall comply with the requirements
               of Section 422 of the Code (or any successor section thereto). No
               ISO may be granted to any  Participant  who,  at the time of such
               grant,  owns more than ten percent of the total  combined  voting
               power  of  all  classes  of  stock  of  the  Company  or  of  any
               Subsidiary,  unless  (i) the  Exercise  Price  for such ISO is at
               least  110% of the Fair  Market  Value of a Share on the date the
               ISO is granted and (ii) the date on which such ISO  terminates is
               a date not later than the day preceding the fifth  anniversary of
               the  date  on  which  the ISO is  granted.  Any  Participant  who
               disposes of Shares  acquired  upon the  exercise of an ISO either
               (I) within two years  after the date of grant of such ISO or (II)
               within  one  year  after  the  transfer  of  such  Shares  to the
               Participant,  shall notify the Company of such disposition and of
               the amount  realized upon such  disposition.  All Options granted
               under the Plan are  intended  to be ISOs,  unless the  applicable
               Award agreement  expressly  states that the Option is intended to
               be a nonqualified stock option. If an Option is intended to be an
               ISO, and if for any reason such Option (or portion thereof) shall
               not   qualify   as  an  ISO,   then,   to  the   extent  of  such
               nonqualification,  such  Option  (or  portion  thereof)  shall be
               regarded as a  nonqualified  stock option granted under the Plan;
               provided that such Option (or portion thereof) otherwise complies
               with the  Plan's  requirements  relating  to  nonqualified  stock
               options.  In no event  shall  any  member of the  Committee,  the
               Company or any of its Affiliates (or their respective  employees,
               officers or directors)  have any liability to any Participant (or
               any other  Person) due to the failure of an Option to qualify for
               any reason as an ISO.
         (e)   ATTESTATION. Wherever in this Plan or any agreement evidencing an
               Award a Participant  is permitted to pay the Exercise Price of an
               Option  or  taxes  relating  to  the  exercise  of an  Option  by
               delivering  Shares,  the Participant  may,  subject to procedures
               satisfactory to the Committee,  satisfy such delivery requirement
               by presenting  proof of beneficial  ownership of such Shares,  in
               which  case the  Company  shall  treat the  Option  as  exercised
               without  further payment and shall withhold such number of Shares
               from the Shares acquired by the exercise of the Option.
         (a)   GRANTS.  The Committee may grant (i) a Stock  Appreciation  Right
               independent  of an Option or (ii) a Stock  Appreciation  Right in
               connection  with  an  Option,  or  a  portion  thereof.  A  Stock
               Appreciation  Right  granted  pursuant  to  clause  (ii)  of  the
               preceding  sentence  (A) may be granted  at the time the  related
               Option  is  granted  or at any  time  prior  to the  exercise  or
               cancellation  of the  related  Option,  (B) shall  cover the same
               number of Shares  covered by an Option (or such lesser  number of
               Shares as the Committee may  determine)  and (C) shall be subject
               to the same terms and  conditions  as such Option except for such
               additional  limitations as are contemplated by this Section 7 (or
               such  additional  limitations  as may  be  included  in an  Award
               agreement).  The  maximum  number  of  Shares  covered  by  Stock
               Appreciation  Rights that may be awarded during any calendar year
               to any Participant shall be 200,000.
         (b)   TERMS. The exercise price per Share of a Stock Appreciation Right
               shall be an amount  determined  by the  Committee but in no event
               shall such amount be less than the Fair  Market  Value of a Share
               on the date the Stock  Appreciation  Right is granted;  provided,
               however,  that,  notwithstanding the foregoing,  in the case of a
               Stock  Appreciation  Right granted in conjunction with an Option,
               or a portion thereof, the exercise price may not be less than the
               Exercise  Price of the related  Option.  Each Stock  Appreciation
               Right   granted   independent   of  an  Option  shall  entitle  a
               Participant upon exercise to an amount equal to (i) the excess of
               (A) the Fair Market Value on the exercise  date of one Share over
               (B) the exercise price per Share, times (ii) the number of Shares
               covered by the Stock Appreciation  Right. Each Stock Appreciation
               Right granted in
               conjunction with an Option, or a portion thereof, shall entitle a
               Participant to surrender to the Company the  unexercised  Option,
               or any  portion  thereof,  and to  receive  from the  Company  in
               exchange  therefor  an amount  equal to (I) the excess of (x) the
               Fair Market Value on the exercise  date of one Share over (y) the
               Exercise Price per Share, times (II) the number of Shares covered
               by the Option, or portion thereof, which is surrendered.  Payment
               shall be made in  Shares or in cash,  or  partly  in  Shares  and
               partly  in cash  (any such  Shares  valued  at such  Fair  Market
               Value),  all as  shall  be  determined  by the  Committee.  Stock
               Appreciation  Rights  may be  exercised  from  time to time  upon
               actual  receipt  by the  Company of  written  notice of  exercise
               stating  the  number of Shares  with  respect  to which the Stock
               Appreciation  Right is  being  exercised.  The  date a notice  of
               exercise is received by the Company  shall be the exercise  date.
               No  fractional  Shares  will  be  issued  in  payment  for  Stock
               Appreciation Rights, but instead cash will be paid for a fraction
               or, if the Committee  should so  determine,  the number of Shares
               will be rounded downward to the next whole Share.
         (c)   LIMITATIONS.  The Committee may impose,  in its discretion,  such
               conditions upon the  exercisability or  transferability  of Stock
               Appreciation Rights as it may deem fit.
         (a)   GRANT. Subject to the provisions of the Plan, the Committee shall
               determine the number of Shares of Restricted  Stock to be granted
               to each Participant, the duration of the period during which, and
               the conditions,  if any, under which, the Restricted Stock may be
               forfeited to the Company,  and the other terms and  conditions of
               such Awards.
         (b)   TRANSFER  RESTRICTIONS.  Shares  of  Restricted  Stock may not be
               sold,  assigned,  transferred,  pledged or otherwise  encumbered,
               except as provided in the Plan or the applicable Award agreement.
               Certificates  issued in  respect  of Shares of  Restricted  Stock
               shall be registered in the name of the  Participant and deposited
               by such  Participant,  together  with a stock  power  endorsed in
               blank,  with the  Company.  After the  lapse of the  restrictions
               applicable to such Shares of Restricted  Stock, the Company shall
               deliver such certificates to the Participant or the Participant's
               legal representative.
         (c)   DIVIDENDS.  Dividends paid on any Shares of Restricted  Stock may
               be paid  directly  to the  Participant,  withheld  by the Company
               subject to vesting of the Restricted Shares pursuant to the terms
               of the  applicable  Award  agreement,  or may  be  reinvested  in
               additional  Shares of  Restricted  Stock,  as  determined  by the
               Committee in its sole discretion.
         (d)   PERFORMANCE-BASED   GRANTS.   Notwithstanding   anything  to  the
               contrary herein, certain Shares of Restricted Stock granted under
               this  Section  8 may,  at the  discretion  of the  Committee,  be
               granted in a manner  which is  deductible  by the  Company  under
               Section  162(m) of the Code (or any successor  section  thereto).
               The  restrictions  applicable  to a such  Restricted  Stock shall
               lapse based  wholly or  partially  on the  attainment  of written
               performance  goals  approved by the  Committee  for a performance
               period  established  by the  Committee  (i) while the outcome for
               that performance  period is  substantially  uncertain and (ii) by
               the  earlier  of  (A)  90  days  after  the  commencement  of the
               performance  period to which the performance  goal relates or (B)
               the number of days  which is equal to 25 percent of the  relevant
               performance   period.   The  performance  goals,  which  must  be
               objective,  shall be based upon one or more of the  criteria  set
               forth in Section 9(b) below. The Committee shall determine in its
               discretion  whether,  with respect to a performance  period,  the
               applicable  performance  goals  have been met with  respect  to a
               given Participant and, if they have, shall so certify.
         (a)   GENERALLY.  The Committee,  in its sole discretion,  may grant or
               sell  Awards of Shares and Awards  that are valued in whole or in
               part by reference to, or are  otherwise  based on the Fair Market
               Value  of,  Shares  ("Other  Stock-Based  Awards").   Such  Other
               Stock-Based  Awards shall be in such form,  and dependent on such
               conditions, as the Committee shall determine,
               including, without limitation, the right to receive, or vest with
               respect to, one or more Shares (or the  equivalent  cash value of
               such  Shares)  upon  the  completion  of a  specified  period  of
               service,  the  occurrence  of an event and/or the  attainment  of
               performance  objectives.  Other Stock-Based Awards may be granted
               alone or in addition to any other Awards  granted under the Plan.
               Subject  to the  provisions  of the  Plan,  the  Committee  shall
               determine  the number of Shares to be  awarded  to a  Participant
               under (or otherwise  related to) such Other  Stock-Based  Awards;
               whether such Other  Stock-Based  Awards shall be settled in cash,
               Shares or a combination  of cash and Shares;  and all other terms
               and conditions of such Awards (including, without limitation, the
               vesting  provisions  thereof  and  provisions  ensuring  that all
               Shares  so   awarded   and   issued   shall  be  fully  paid  and
         (b)   PERFORMANCE-BASED   AWARDS.   Notwithstanding   anything  to  the
               contrary herein,  certain Other Stock-Based  Awards granted under
               this  Section  9  and  performance-based   grants  of  Shares  of
               Restricted  Stock may be granted in a manner which is  deductible
               by the Company under Section 162(m) of the Code (or any successor
               section thereto)  ("Performance-Based  Awards").  A Participant's
               Performance-Based   Award  shall  be  determined   based  on  the
               attainment of written performance goals approved by the Committee
               for a performance  period  established by the Committee (I) while
               the  outcome  for  that   performance   period  is  substantially
               uncertain  and  (II) by the  earlier  of  (A)90  days  after  the
               commencement of the  performance  period to which the performance
               goal  relates  or (B) the  number  of days  which  is equal to 25
               percent  of the  relevant  performance  period.  The  performance
               goals,  which must be objective,  shall be based upon one or more
               of the following  criteria:  (i) consolidated  earnings before or
               after  taxes   (including   earnings  before   interest,   taxes,
               depreciation and amortization);  (ii) net income; (iii) operating
               income;  (iv) earnings per Share; (v) book value per Share;  (vi)
               return on shareholders' equity; (vii) expense management;  (viii)
               return on investment; (ix) improvements in capital structure; (x)
               profitability of an identifiable  business unit or product;  (xi)
               maintenance or improvement of profit margins;  (xii) stock price;
               (xiii) market share;  (xiv) revenues or sales; (xv) costs;  (xvi)
               cash flow; (xvii) working capital;  and (xviii) return on assets.
               The foregoing criteria may relate to the Company,  one or more of
               its Subsidiaries or one or more of its divisions or units, or any
               combination of the  foregoing,  and may be applied on an absolute
               basis  and/or be relative to one or more peer group  companies or
               indices, or any combination  thereof,  all as the Committee shall
               determine.  In addition,  to the degree  consistent  with Section
               162(m)  of the  Code  (or any  successor  section  thereto),  the
               performance   goals   may  be   calculated   without   regard  to
               extraordinary items. The Committee shall determine whether,  with
               respect to a performance period, the applicable performance goals
               have been met with  respect to a given  Participant  and, if they
               have, shall so certify and ascertain the amount of the applicable
               Performance-Based Award. No Performance-Based Awards will be paid
               for such performance  period until such  certification is made by
               the Committee. The amount of the Performance-Based Award actually
               paid  to  a  given  Participant  may  be  less  than  the  amount
               determined by the  applicable  performance  goal formula,  at the
               discretion of the Committee.  The amount of the Performance-Based
               Award determined by the Committee for a performance  period shall
               be paid to the  Participant  at such  time as  determined  by the
               Committee  in  its  sole   discretion   after  the  end  of  such
               performance period; provided, however, that a Participant may, if
               and to the extent  permitted by the Committee and consistent with
               the  provisions  of  Section  162(m) of the Code,  elect to defer
               payment  of  a  Performance-Based   Award.   Notwithstanding  the
               foregoing,  the maximum amount of  Performance-Based  Awards that
               may be granted during a calendar year to any Participant shall be
               (x) with respect to Other Stock-Based Awards and Awards of Shares
               of Restricted  Stock,  that are denominated or payable in shares,
               100,000 shares and (y) with respect to Other  Stock-Based  Awards
               that are not denominated or payable in shares, $5,000,000.
         Notwithstanding  anything  to  the  contrary  herein  (other  than  the
provisions of Section 11 hereof), no Award of Shares shall vest in full prior to
three  years from the date of grant  thereof if a condition  to such  vesting is
based,  in whole or in part,  upon the passage of time, and if the vesting of an
Award of Shares is
based, in whole or in part, upon the performance of the Company's  shares or any
aspect of the Company's  operations,  such performance  shall be measured over a
period of no less than one year from the grant of such Award.
         Notwithstanding  any other provisions in the Plan to the contrary,  the
following provisions shall apply to all Awards granted under the Plan:
         (a)   GENERALLY.  In the event of any change in the outstanding  Shares
               after the  Effective  Date by reason  of any  Share  dividend  or
               split, reorganization,  recapitalization,  merger, consolidation,
               spin-off, combination,  combination or transaction or exchange of
               Shares  or  other  corporate  exchange,  or any  distribution  to
               shareholders  of Shares other than regular cash  dividends or any
               transaction  similar to the foregoing,  the Committee in its sole
               discretion  and  without  liability  to any  person may make such
               substitution or adjustment,  if any, as it deems to be equitable,
               as to (i) the number or kind of Shares or other securities issued
               or  reserved  for  issuance  pursuant  to the Plan or pursuant to
               outstanding  Awards,  (ii) the maximum number of Shares for which
               Awards  (including  limits  established  for Restricted  Stock or
               Other  Stock-Based  Awards) may be granted during a calendar year
               to any Participant, (iii) the Exercise Price or exercise price of
               any Stock Appreciation Right and/or (iv) any other affected terms
               of such Awards.
         (b)   CHANGE IN CONTROL.  In the event of a Change in Control after the
               Effective Date, the Committee may, but shall not be obligated to,
               (i)  accelerate,  vest or cause the  restrictions  to lapse  with
               respect to, all or any portion of an Award or (ii) cancel  Awards
               for fair  value  (as  determined  in the sole  discretion  of the
               Committee)  which, in the case of Options and Stock  Appreciation
               Rights,   may  equal  the  excess,   if  any,  of  value  of  the
               consideration to be paid in the Change in Control  transaction to
               holders of the same number of Shares  subject to such  Options or
               Stock Appreciation Rights (or, if no consideration is paid in any
               such transaction,  the Fair Market Value of the Shares subject to
               such Options or Stock  Appreciation  Rights)  over the  aggregate
               exercise  price of such Options or Stock  Appreciation  Rights or
               (iii)  provide for the  issuance of  substitute  Awards that will
               substantially  preserve  the  otherwise  applicable  terms of any
               affected Awards previously granted hereunder as determined by the
               Committee  in its  sole  discretion  or (iv)  provide  that for a
               period of at least 30 days prior to the Change in  Control,  such
               Options or Stock  Appreciation  Rights shall be exercisable as to
               all Shares  subject  thereto and that upon the  occurrence of the
               Change in  Control,  such  Options or Stock  Appreciation  Rights
               shall terminate and be of no further force and effect.
         The granting of an Award under the Plan shall impose no  obligation  on
the Company or any Affiliate to continue the  employment  of a  Participant  and
shall not lessen or affect the Company's or Subsidiary's  right to terminate the
employment of such  Participant.  No  Participant or other person shall have any
claim to be granted any Award,  and there is no  obligation  for  uniformity  of
treatment of Participants,  or holders or beneficiaries of Awards. The terms and
conditions of Awards and the Committee's determinations and interpretations with
respect thereto need not be the same with respect to each  Participant  (whether
or not such Participants are similarly situated).
         The Plan shall be binding on all  successors and assigns of the Company
and a Participant,  including without limitation, the estate of such Participant
and the executor,  administrator  or trustee of such estate,  or any receiver or
trustee in bankruptcy or representative of the Participant's creditors.
         Unless  otherwise  determined by the  Committee,  an Award shall not be
transferable or assignable by the  Participant  otherwise than by will or by the
laws of descent  and  distribution.  An Award  exercisable  after the death of a
Participant  may be  exercised  by the  legatees,  personal  representatives  or
distributees of the Participant.
         The Board may amend,  alter or discontinue  the Plan, but no amendment,
alteration  or  discontinuation  shall be made,  (a)  without  the  approval  of
stockholders  of the  Company,  if such action  would  (except as is provided in
Section 11 of the Plan),  (i) increase  the total number of Shares  reserved for
the purposes of the Plan or the maximum number of Shares for which Awards may be
granted  to  any  Participant  or  (ii)  materially   modify   requirements  for
participation  in the Plan,  (b) without the consent of a  Participant,  if such
action  would  diminish  any of the  rights of the  Participant  under any Award
theretofore  granted  to such  Participant  under  the Plan or (c)  without  the
approval  of  stockholders  of the  Company  (i) to Section  5(b),  relating  to
repricing  of  Options  or Stock  Appreciation  Rights,  (ii) to  Section  6(a),
relating  to the  exercise  price of stock  options,  or  (iii) to  Section  10,
relating to vesting of Awards of Shares;  provided,  however, that the Committee
may amend the Plan in such manner as it deems  necessary  to permit the granting
of Awards meeting the requirements of the Code or other applicable laws.
         With  respect to  Participants  who reside or work  outside  the United
States of  America  and who are not (and who are not  expected  to be)  "covered
employees"  within the meaning of Section 162(m) of the Code, the Committee may,
in its sole  discretion,  amend the terms of the Plan or Awards with  respect to
such  Participants in order to conform such terms with the requirements of local
law or to obtain more favorable tax or other  treatment for a  Participant,  the
Company or an Affiliate.
17.      CHOICE OF LAW
         The Plan shall be governed by and construed in accordance with the laws
of the State of Delaware without regard to conflicts of laws.
         The Plan shall be effective as of the Effective Date.