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                                                                Exhibit No. 10.1

                         RENAL TREATMENT CENTERS, INC.

                     AMENDED AND RESTATED 1990 STOCK PLAN
                     ------------------------------------



     1.   Purpose.  This 1990 Stock Plan (the "Plan") is intended to provide
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incentives:  (a) to the officers and other employees of Renal Treatment Centers,
Inc. (the "Company"), its parent (if any) and any present or future subsidiaries
of the Company (collectively, "Related Corporations") by providing them with
opportunities to purchase stock in the Company pursuant to options granted
hereunder which qualify as "incentive stock options" under Section 422(b) of the
Internal Revenue Code of 1986 (the "Code") ("ISO" or "ISOs"); (b) to directors,
officers, employees and consultants of the Company and Related Corporations by
providing them with opportunities to purchase stock in the Company pursuant to
options granted hereunder which do not qualify as ISOs ("Non-Qualified Option"
or "Non-Qualified Options"); (c) to directors, officers, employees and
consultants of the Company and Related Corporations by providing them with
awards of stock in the Company ("Awards"); and (d) to directors, officers,
employees and consultants of the Company and Related Corporations by providing
them with opportunities to make direct purchases of stock in the Company
("Purchases").  Both ISOs and Non-Qualified Options are referred to hereinafter
individually as an "Option" and collectively as "Options".  Options, Awards and
authorizations to make Purchases are referred to hereinafter collectively as
"Stock Rights".  As used herein, the terms "parent" and "subsidiary" mean
"parent corporation" and "subsidiary corporation", respectively, as those terms
are defined in Section 424 of the Code.

     2.   Administration of the Plan.
          -------------------------- 
 
          A.   Board or Committee Administration.  The Plan shall be 
               ---------------------------------                    
     administered by the Board of Directors of the Company (the "Board").  The
     Board may appoint a Stock Plan Committee (the "Committee") of two or more
     directors to administer the Plan.  A director of the Company shall be
     eligible to serve on the Committee only if he or she qualifies as a "non-
     employee director" for purposes of Rule 16b-3 under the Securities Exchange
     Act of 1934.  In addition, each member of the Committee shall be an
     "outside director" within the meaning of Section 162(m) of the Code.
     Hereinafter, all references in this Plan to the "Committee" shall mean the
     Board if no Committee has been appointed.  Subject to ratification of the
     grant or authorization of each Stock Right by the Board (if so required by
     applicable state law), and subject to the terms of the Plan, the Committee
     shall have the authority to (i) determine the employees of the Company and
     Related Corporations (from among the class of employees eligible under
     paragraph 3 to receive ISOs) to whom ISOs may be granted, and to determine
     (from among the class of individuals and entities eligible under paragraph
     3 to receive Non-Qualified Options and Awards and to make Purchases) to
     whom Non-Qualified Options, Awards and authorizations to make Purchases
     may be granted; (ii) determine the time or times at which Options or Awards
     may be granted or Purchases made; (iii) determine the option price of
     shares subject to each Option, which price shall not be less than the
     minimum price specified in paragraph 6, and the purchase price of shares
     subject to each Purchase; (iv) determine whether each 
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     Option granted shall be an ISO or a Non-Qualified Option; (v) determine
     (subject to paragraph 7) the time or times when each Option shall become
     exercisable and the duration of the exercise period; (vi) determine whether
     restrictions such as repurchase options are to be imposed on shares subject
     to Options, Awards and Purchases and the nature of such restrictions, if
     any; and (vii) interpret the Plan and prescribe and rescind rules and
     regulations relating to it. If the Committee determines to issue a Non-
     Qualified Option, it shall take whatever actions it deems necessary, under
     Section 422 of the Code and the regulations promulgated thereunder, to
     ensure that such Option is not treated as an ISO. The interpretation and
     construction by the Committee of any provisions of the Plan or of any Stock
     Right granted under it shall be final unless otherwise determined by the
     Board or except as may be specified in the instrument evidencing the grant
     of a stock right. The Committee may from time to time adopt such rules and
     regulations for carrying out the Plan as it may deem best. No member of the
     Board or the Committee shall be liable for any action or determination made
     in good faith with respect to the Plan or any Stock Right granted under it.

          B.   Committee Actions.  The Committee may select one of its members
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     as its chairman, and shall hold meetings at such time and places as it may
     determine.  Acts by a majority of the Committee, or acts reduced to or
     approved in writing by a majority of the members of the Committee, shall be
     the valid acts of the Committee.  From time to time the Board may increase
     the size of the Committee and appoint additional members thereof, remove
     members (with or without cause) and appoint new members in substitution
     therefor, fill vacancies however caused, or remove all members of the
     Committee and thereafter directly administer the Plan.

          C.   Authority of the Board.  Notwithstanding anything to the
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     contrary set forth in the Plan, all authority granted hereunder to the
     Committee may be exercised at any time and from time to time by the Board
     at its election.  All decisions, determinations and interpretations of the
     Board shall be final and binding on all Optionees and Grantees and all
     other holders of Options, Stock Appreciation Rights and Awards granted
     under the Plan.

     3.   Eligible Employees and Others.  ISOs may be granted to any employee
          -----------------------------                                      
of the Company or any Related Corporation.  Those officers and directors of the
Company who are not employees may not be granted ISOs under the Plan.  Non-
Qualified Options, Awards and authorizations to make Purchases may be granted to
any employee, officer or director (whether or not also an employee) or
consultant of the Company or any Related Corporation.  The Committee may take
into consideration a recipient's individual circumstances in determining whether
to grant an ISO, a Non-Qualified Option, an Award or an authorization to make a
Purchase.  Granting of any Stock Right to any individual or entity shall neither
entitle that individual or entity to, nor disqualify him from, participation in
any other grant of Stock Rights.

     4.   Stock.  The stock subject to Options, Awards and Purchases shall be
          -----                                                              
authorized but unissued shares of Common Stock of the Company, par value $.01
per share (the "Common Stock"), or shares of Common Stock reacquired by the
Company in any manner.  The aggregate 

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number of shares which may be issued pursuant to the Plan is 3,987,000, subject
to adjustment as provided in paragraph 13. Moreover, for the period commencing
on January 1, 1994 until September 27, 2000, no employee shall be granted
options for more than 500,000 shares pursuant to this Plan. Any such shares may
be issued as ISOs, Non-Qualified Options or Awards, or to persons or entities
making Purchases, so long as the number of shares so issued does not exceed such
number, as adjusted. If any Option granted under the Plan shall expire or
terminate for any reason without having been exercised in full or shall cease
for any reason to be exercisable in whole or in part, or if the Company shall
reacquire any unvested shares issued pursuant to Awards or Purchases, the
unpurchased shares subject to such Options and any unvested shares so reacquired
by the Company shall again be available for grants of Stock Rights under the
Plan.

     5.   Granting of Stock Rights.  Stock Rights may be granted under the
          ------------------------                                        
Plan at any time on or after September 28, 1990 and prior to September 27, 2000.
The date of grant of a Stock Right under the Plan will be the date specified by
the Committee at the time it grants the Stock Right; provided, however, that
such date shall not be prior to the date on which the Committee acts to approve
the grant.  The Committee shall have the right, with the consent of the
optionee, to convert an ISO granted under the Plan to a Non-Qualified Option
pursuant to paragraph 16.

     6.   Minimum Option Price; ISO Limitations.
          ------------------------------------- 

          A.   Price for Non-Qualified Options.  The exercise price per share
               -------------------------------                               
     specified in the agreement relating to each Non-Qualified Option granted
     under the Plan shall in no event be less than the lesser of (i) the book
     value per share of Common Stock as of the end of the fiscal year of the
     Company immediately preceding the date of such grant, or (ii) fifty percent
     (50%) of the fair market value per share of Common Stock on the date of
     such grant.

          B.   Price for ISOs.  The exercise price per share specified in the
               --------------                                                
     agreement relating to each ISO granted under the Plan shall not be less
     than the fair market value per share of Common Stock on the date of such
     grant.  In the case of an ISO to be granted to an employee owning stock
     possessing more than ten percent (10%) of the total combined voting power
     of all classes of stock of the Company or any Related Corporation, the
     price per share specified in the agreement relating to such ISO shall not
     be less than one hundred ten percent (110%) of the fair market value per
     share of Common Stock on the date of grant.

          C.   $100,000 Annual Limitation on ISOs.  Each eligible employee may
               ----------------------------------                             
     be granted ISOs only to the extent that, in the aggregate under this Plan
     and all incentive stock option plans of the Company and any Related
     Corporation, such ISOs do not become exercisable for the first time by such
     employee during any calendar year in a manner which would entitle the
     employee to purchase more than $100,000 in fair market value (determined at
     the time the ISOs were granted) of Common Stock in that year.  Any options
     granted to an employee in excess of such amount will be granted as Non-
     Qualified Options.

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          D.   Determination of Fair Market Value.  If, at the time an Option
               ----------------------------------                            
     is granted under the Plan, the Company's Common Stock is publicly traded,
     "fair market value" shall be determined on the date such Option is granted
     (or on the first preceding business day for which the prices or quotes
     discussed in this sentence are available, if the date of grant is not a
     business day) and shall mean (i) the closing price (on that date) or the
     average of the high and low prices (on that date) of the Common Stock on
     the principal national securities exchange on which the Common Stock is
     traded, if the Common Stock is then traded on a national securities
     exchange; or (ii) the last reported sale price (on that date) of the Common
     Stock on the NASDAQ National Market List, if the Common Stock is not then
     traded on a national securities exchange; or (iii) the closing bid price
     (or average of bid prices) last quoted (on that date) by an established
     quotation service for over-the-counter securities, if the Common Stock is
     not reported on the NASDAQ National Market List.

     7.   Option Duration.  Subject to earlier termination as provided in
          ---------------                                                
paragraphs 9 and 10, each Option shall expire on the date specified by the
Committee, but not more than (i) ten years and one day from the date of grant in
the case of Non-Qualified Options, (ii) ten years from the date of grant in the
case of ISOs generally, and (iii) five years from the date of grant in the case
of ISOs granted to an employee owning stock possessing more than ten percent
(10%) of the total combined voting power of all classes of stock of the Company
or any Related Corporation.  Subject to earlier termination as provided in
paragraphs 9 and 10, the term of each ISO shall be the term set forth in the
original instrument granting such ISO, except with respect to any part of such
ISO that is converted into a Non-Qualified Option pursuant to paragraph 16.

     8.   Exercise of Option.  Subject to the provisions of paragraphs 9
          ------------------                                            
through 12, each Option granted under the Plan shall be exercisable as follows:
 
          A.   Vesting.  The Option shall either be fully exercisable on the
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     date of grant or shall become exercisable thereafter in such installments
     as the Committee may specify.  The Committee may also establish certain
     conditions, including, without limitation, performance criteria with
     respect to the Company and/or the optionee, which must be satisfied before
     an Option may be exercised.

          B.   Full Vesting of Installments.  Once an installment becomes
               ----------------------------                              
     exercisable it shall remain exercisable until expiration or termination of
     the Option, unless otherwise specified by the Committee.

          C.   Partial Exercise.  Each Option or installment may be exercised
               ----------------                                              
     at any time or from time to time, in whole or in part, for up to the total
     number of shares with respect to which it is then exercisable.

          D.   Acceleration of Vesting.  The Committee shall have the right to
               -----------------------                                        
     accelerate the date of exercise of any installment of any Option upon such
     circumstances and upon such terms and conditions as the Committee shall
     deem appropriate; provided that the Committee shall not, without the
     consent of an optionee, accelerate the exercise date of 

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<PAGE>
 
     any installment of any Option granted to any employee as an ISO (and not
     previously converted into a Non-Qualified Option pursuant to paragraph 16)
     if such acceleration would violate the annual vesting limitation contained
     in Section 422(d) of the Code, as described in paragraph 6(C).

     9.   Termination of Employment.  If an ISO optionee ceases to be employed 
          -------------------------                                  
by the Company and all Related Corporations other than by reason of death or
disability as defined in paragraph 10, no further installments of his ISOs shall
become exercisable, and his ISOs shall terminate after the passage of ninety
(90) days from the date of termination of his employment, but in no event later
than on their specified expiration dates, except to the extent that such ISOs
(or unexercised installments thereof) have been converted into Non-Qualified
Options pursuant to paragraph 16. Employment shall be considered as continuing
uninterrupted during any bona fide leave of absence (such as those attributable
to illness, military obligations or governmental service) provided that the
period of such leave does not exceed 90 days or, if longer, any period during
which such optionee's right to reemployment is guaranteed by statute. A bona
fide leave of absence with the written approval of the Committee shall not be
considered an interruption of employment under the Plan, provided that such
written approval contractually obligates the Company or any Related Corporation
to continue the employment of the optionee after the approved period of absence.
ISOs granted under the Plan shall not be affected by any change of employment
within or among the Company and Related Corporations, so long as the optionee
continues to be an employee of the Company or any Related Corporation. Nothing
in the Plan shall be deemed to give any grantee of any Stock Right the right to
be retained in employment or other service by the Company or any Related
Corporation for any period of time.

     10.  Death; Disability.
          ----------------- 

          A.   Death.  If an ISO optionee ceases to be employed by the Company 
               -----                                                  
     and all Related Corporations by reason of his death, any ISO of his may be
     exercised, to the extent of the number of shares with respect to which he
     could have exercised it on the date of his death (or to such greater extent
     as may be specified in the instrument evidencing the grant of such ISO), by
     his estate, personal representative or beneficiary who has acquired the ISO
     by will or by the laws of descent and distribution, at any time prior to
     the earlier of the specified expiration date of the ISO or 180 days from
     the date of the optionee's death.

          B.   Disability.  If an ISO optionee ceases to be employed by the
               ----------                                                  
     Company and all Related Corporations by reason of his disability, he shall
     have the right to exercise any ISO held by him on the date of termination
     of employment, to the extent of the number of shares with respect to which
     he could have exercised it on that date (or to such greater extent as may
     be specified in the instrument evidencing the grant of such ISO), at any
     time prior to the earlier of the specified expiration date of the ISO or
     180 days from the date of the termination of the optionee's employment.
     For the purposes of the Plan, the term "disability" shall mean "permanent
     and total disability" as defined in Section 22(e)(3) of the Code or
     successor statute.

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<PAGE>
 
     11.  Assignability.  No Option or right to make Purchases shall be
          -------------                                                
assignable or transferable by the optionee or grantee thereof except by will or
by the laws of descent and distribution, and during the lifetime of the optionee
or grantee, each Option or right to make Purchases shall be exercisable only by
him or his guardian.

     12.  Terms and Conditions of Options.  Options shall be evidenced by
          -------------------------------                                
instruments (which need not be identical) in such forms as the Committee may
from time to time approve.  Such instruments shall conform to the terms and
conditions set forth in paragraphs 6 through 11 hereof and may contain such
other provisions as the Committee deems advisable which are not inconsistent
with the Plan, including restrictions applicable to shares of Common Stock
issuable upon exercise of Options.  In granting any Non-Qualified Option, the
Committee may specify that such Non-Qualified Option shall be subject to the
restrictions set forth herein with respect to ISOs, or to such other termination
and cancellation provisions as the Committee may determine.  The Committee may
from time to time confer authority and responsibility on one or more of its own
members and/or one or more officers of the Company to execute and deliver such
instruments.  The proper officers of the Company are authorized and directed to
take any and all action necessary or advisable from time to time to carry out
the terms of such instruments.
 
     13.  Adjustments.  Upon the occurrence of any of the following events,
          -----------                                                      
an optionee's rights with respect to Options granted to him hereunder shall be
adjusted as hereinafter provided, unless otherwise specifically provided in the
written agreement between the optionee and the Company relating to such Option:

          A.   Stock Dividends and Stock Splits.  If the shares of Common
               --------------------------------                          
     Stock shall be subdivided or combined into a greater or smaller number of
     shares or if the Company shall issue any shares of Common Stock as a stock
     dividend on its outstanding Common Stock, the number of shares of Common
     Stock deliverable upon the exercise of Options shall be appropriately
     increased or decreased proportionately, and appropriate adjustments shall
     be made in the purchase price per share to reflect such subdivision,
     combination or stock dividend.

          B.   Consolidations or Mergers.  If the Company is to be
               -------------------------                          
     consolidated with or acquired by another entity in a merger, sale of all or
     substantially all of the Company's assets or otherwise (an "Acquisition"),
     the Committee or the board of directors of any entity assuming the
     obligations of the Company hereunder (the "Successor Board"), shall, as to
     outstanding Options, either (i) make appropriate provision for the
     continuation of such Options by substituting on an equitable basis for the
     shares then subject to such Options the consideration payable with respect
     to the outstanding shares of Common Stock in connection with the
     Acquisition; or (ii) upon written notice to the optionees, provide that all
     Options must be exercised, to the extent then exercisable (or to such
     greater extent as may be specified in the instrument evidencing the grant
     of the Option), within a specified number of days of the date of such
     notice, at the end of which period the Options shall terminate; or (iii)
     terminate all Options in exchange for a cash payment equal to the excess of
     the fair market value of the shares subject to such Options to the 

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     extent then exercisable (or to such greater extent as may be specified in
     the instrument evidencing the grant of the Option) over the exercise price
     thereof.

          C.   Recapitalization or Reorganization.  In the event of a
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     recapitalization or reorganization of the Company (other than a transaction
     described in subparagraph B above) pursuant to which securities of the
     Company or of another corporation are issued with respect to the
     outstanding shares of Common Stock, an optionee upon exercising an Option
     shall be entitled to receive for the purchase price paid upon such exercise
     the securities he would have received if he had exercised his Option prior
     to such recapitalization or reorganization.

          D.   Modification of ISOs.  Notwithstanding the foregoing, any
               --------------------                                     
     adjustments made pursuant to subparagraphs A, B or C with respect to ISOs
     shall be made only after the Committee, after consulting with counsel for
     the Company, determines whether such adjustments would constitute a
     "modification" of such ISOs (as that term is defined in Section 425 of the
     Code) or would cause any adverse tax consequences for the holders of such
     ISOs.  If the Committee determines that such adjustments made with respect
     to ISOs would constitute a modification of such ISOs, it shall offer the
     holder of such ISOs the option to convert the ISOs into Non-Qualified
     Options as provided in paragraph 16 or refrain from making such
     adjustments.

          E.   Dissolution or Liquidation.  In the event of the proposed
               --------------------------                               
     dissolution or liquidation of the Company, each Option will terminate
     immediately prior to the consummation of such proposed action or at such
     other time and subject to such other conditions as shall be determined by
     the Committee.

          F.   Issuances of Securities.  Except as expressly provided herein,
               -----------------------                                       
     no issuance by the Company of shares of stock of any class, or securities
     convertible into shares of stock of any class, shall affect, and no
     adjustment by reason thereof shall be made with respect to, the number or
     price of shares subject to Options.  No adjustments shall be made for
     dividends paid in cash or in property other than securities of the
     Company.

          G.   Fractional Shares.  No fractional shares shall be issued under
               -----------------                                             
     the Plan and the optionee shall receive from the Company cash in lieu of
     such fractional shares.

          H.   Adjustments.  Upon the happening of any of the events
               -----------                                          
     described in subparagraphs A, B or C above, the class and aggregate number
     of shares set forth in paragraph 4 hereof that are subject to Stock Rights
     which previously have been or subsequently may be granted under the Plan
     shall also be appropriately adjusted to reflect the events described in
     such subparagraphs.  The Committee or the Successor Board shall determine
     the specific adjustments to be made under this paragraph 13 and, subject to
     paragraph 2, its determination shall be conclusive.

     If any person or entity owning restricted Common Stock obtained by exercise
of a Stock Right made hereunder receives shares or securities or cash in
connection with a corporate

                                      -7-
<PAGE>
 
transaction described in subparagraphs A, B or C above as a result of owning
such restricted Common Stock, such shares or securities or cash shall be subject
to all of the conditions and restrictions applicable to the restricted Common
Stock with respect to which such shares or securities or cash were issued,
unless otherwise determined by the Committee or the Successor Board.

     14.  Means of Exercising Stock Rights.  A Stock Right (or any part or
          --------------------------------                                
installment thereof) shall be exercised by giving written notice to the Company
at its principal office address.  Such notice shall identify the Stock Right
being exercised and specify the number of shares as to which such Stock Right is
being exercised, accompanied by full payment of the purchase price therefor
either (a) in United States dollars in cash or by check, or (b) at the
discretion of the Committee, through delivery of shares of Common Stock having a
fair market value equal as of the date of the exercise to the cash exercise
price of the Stock Right, or (c) at the discretion of the Committee, by delivery
of the grantee's personal recourse note bearing interest payable not less than
annually at no less than 100% of the lowest applicable Federal rate, as defined
in Section 1274(d) of the Code, or (d) at the discretion of the Committee, by
any combination of (a), (b) and (c) above.  If the Committee exercises its
discretion to permit payment of the exercise price of an ISO by means of the
methods set forth in clauses (b), (c), or (d) of the preceding sentence, such
discretion shall be exercised in writing at the time of the grant of the ISO in
question.  The holder of a Stock Right shall not have the rights of a
shareholder with respect to the shares covered by his Stock Right until the date
of issuance of a stock certificate to him for such shares.  Except as expressly
provided above in paragraph 13 with respect to changes in capitalization and
stock dividends, no adjustment shall be made for dividends or similar rights for
which the record date is before the date such stock certificate is issued.

     15.  Term and Amendment of Plan.  This Plan was originally adopted by
          --------------------------                                      
the Board and approved by the stockholders on September 28, 1990.  The Plan
shall expire at the end of the day on September 27, 2000 (except as to Options
outstanding on that date).  Subject to the provisions of paragraph 5 above,
Stock Rights may be granted under the Plan prior to the date of stockholder
approval of the Plan or any amendment thereto for which stockholder approval is
required under this paragraph 15.  The Board may terminate or amend the Plan in
any respect at any time, subject to any required stockholder approval or any
stockholder approval that the Board may deem advisable for any reason, such as
for the purpose of obtaining or retaining any statutory or regulatory benefits
under tax, securities or other laws or satisfying any stock exchange listing
requirements.  In no event may action of the Board or stockholders alter or
impair the rights of a grantee, without his consent, under any Stock Right
previously granted to him.

     16.  Conversion of ISOs into Non-Qualified Options; Termination.  The
          ----------------------------------------------------------      
Committee, at the written request of any optionee, may in its discretion take
such actions as may be necessary to convert such optionee's ISOs (or any
installments or portions of installments thereof) that have not been exercised
on the date of conversion into Non-Qualified Options at any time prior to the
expiration of such ISOs, regardless of whether the optionee is an employee of
the Company or a Related Corporation at the time of such conversion.  Such
actions may include, but not be limited to, extending the exercise period or
reducing the exercise price of the appropriate installments of 

                                      -8-
<PAGE>
 
such ISOs. At the time of such conversion, the Committee (with the consent of
the optionee) may impose such conditions on the exercise of the resulting Non-
Qualified Options as the Committee in its discretion may deter mine, provided
that such conditions shall not be inconsistent with this Plan. Nothing in the
Plan shall be deemed to give any optionee the right to have such optionee's ISOs
converted into Non-Qualified Options, and no such conversion shall occur until
and unless the Committee takes appropriate action. The Committee, with the
consent of the optionee, may also terminate any portion of any ISO that has not
been exercised at the time of such termination.

     17.  Application of Funds.  The proceeds received by the Company from
          --------------------                                            
the sale of shares pursuant to Options granted and Purchases authorized under
the Plan shall be used for general corporate purposes.

     18.  Governmental Regulation.  The Company's obligation to sell and
          -----------------------                                       
deliver shares of the Common Stock under this Plan is subject to the approval of
any governmental authority required in connection with the authorization,
issuance or sale of such shares.

     19.  Withholding of Additional Income Taxes.  Upon the exercise of a
          --------------------------------------                         
Non-Qualified Option, the grant of an Award, the making of a Purchase of Common
Stock for less than its fair market value, the making of a Disqualifying
Disposition (as defined in paragraph 20) or the vesting of restricted Common
Stock acquired on the exercise of a Stock Right hereunder, the Company, in
accordance with Section 3402(a) of the Code, may require the optionee, Award
recipient or purchaser to pay additional withholding taxes in respect of the
amount that is considered compensation includible in such person's gross income.
The Committee in its discretion may condition (i) the exercise of an Option,
(ii) the grant of an Award, (iii) the making of a Purchase of Common Stock for
less than its fair market value, or (iv) the vesting of restricted Common Stock
acquired by exercising a Stock Right, on the grantee's payment of such
additional withholding taxes.

     20.  Notice to Company of Disqualifying Disposition.  Each employee who
          ----------------------------------------------                    
receives an ISO must agree to notify the Company in writing immediately after
the employee makes a Disqualifying Disposition of any Common Stock acquired
pursuant to the exercise of an ISO.  A Disqualifying Disposition is any
disposition (including any sale) of such Common Stock before the later of (a)
two years after the date the employee was granted the ISO, or (b) one year after
the date the employee acquired Common Stock by exercising the ISO.  If the
employee has died before such stock is sold, these holding period requirements
do not apply and no Disqualifying Disposition can occur thereafter.

     21.  Governing Law; Construction.  The validity and construction of the
          ---------------------------                                       
Plan and the instruments evidencing Stock Rights shall be governed by the laws
of the State of Delaware, or the laws of any jurisdiction in which the Company
or its successors in interest may be organized.  In construing this Plan, the
singular shall include the plural and the masculine gender shall include the
feminine and neuter, unless the context otherwise requires.

                                      -9-
<PAGE>
 
     22.  Compliance with Rule 16b-3.  The provisions of the Plan are intended 
          --------------------------                                 
to comply in all respects with the provisions of Rule 16b-3 under the Securities
Exchange Act of 1934 and any amendments thereto, and, if the Plan shall not so
comply, whether on the date of adoption or by reason of any later amendment to
or interpretation of Rule 16b-3, the provisions of the Plan shall be deemed to
be automatically amended so as to bring them into full compliance with such
rule.



Amended and Restated by the Board of Directors on January 8, 1997.

                                      -10-