*The settlement will include "an independent, democratic and viable Palestinian state living side by side in peace and security with Israel."

*Without mentioning specific final borders, the plan seeks to "end the occupation that began in 1967," when Israel captured the West Bank, Gaza Strip and eastern Jerusalem from Jordan. The Palestinians demand the land for their state.

MONITORING COMPLIANCE:

*"The Quartet" — the United States, United Nations, European Union and Russia — "will meet regularly at senior levels to evaluate the parties' performance."

PHASE I:

The Palestinian Authority must:

*Issue "an unequivocal statement reiterating Israel's right to exist in peace and security and calling for an immediate and unconditional cease-fire."

*"Undertake visible efforts on the ground to arrest, disrupt and restrain individuals and groups" conducting and planning terror attacks against Israelis.

*Dismantle "terrorist capabilities and infrastructure." End all incitement against Israel.

*Bring all security organizations under control of the Palestinian Authority interior minister.

*Hold free, open and fair elections.

Israel must:

*Issue an "unequivocal statement affirming its commitment to the two-state vision of an independent, viable, sovereign Palestinian state (and) calling for an immediate end to violence against Palestinians anywhere."

*Freeze all construction in Jewish settlements in the West Bank and Gaza Strip.

*Immediately dismantle illegal settlement outposts built since March 2001.

*Stop demolishing terrorists' homes.

*Withdraw progressively from Palestinian Authority areas it has reoccupied since the intifada began in September 2000.

PHASE II (as early as end of 2003):

*Israel moves to "enhance maximum territorial contiguity'' for the Palestinians.

*Palestinian constitution ratified.

*An international conference launches the process leading to the establishment of a Palestinian state with provisional borders.

*Quartet members will promote international recognition of the Palestinian state and U.N. membership.

PHASE III (2004-2005):

*Second international conference will finalize the permanent-status solution for Palestinian state in 2005, including borders, Jerusalem, refugees, settlements — and peace between Israel and other Arab states.