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|                                            |                                 |                                                                      |   | Page |
|-------------------------------------------------|--------------------------------------|---------------------------------------------------------------------------|--------|------|
| TABLE OF CONTENTS                               |
| ARTICLE 1. ESTABLISHMENT, PURPOSE, AND DURATION | 1                                    |
|        1.1        |        | Establishment of the Plan                                                 | 1      |
| 1.2                                             |                                 | Purpose of the Plan                                                       | 1      |
| 1.3                                             |                                 | Duration of the Plan                                                      | 1      |
| ARTICLE 2. DEFINITIONS                          | 1                                    |
| ARTICLE 3. ADMINISTRATION                       | 5                                    |
| 3.1                                             |                                 | The Committee                                                             | 5      |
| 3.2                                             |                                 | Authority of the Committee                                                | 5      |
| 3.3                                             |                                 | Decisions Binding                                                         | 5      |
| 3.4                                             |                                 | Employees in Foreign Countries                                            | 5      |
| 3.5                                             |                                 | No Option or SAR Repricing Without Shareholder Approval                   | 5      |
| ARTICLE 4. SHARES SUBJECT TO THE PLAN           | 6                                    |
| 4.1                                             |                                 | Number of Shares                                                          | 6      |
| 4.2                                             |                                 | Other Plan Limits                                                         | 6      |
| 4.3                                             |                                 | Nonexclusivity of the Plan                                                | 6      |
| 4.4                                             |                                 | Adjustments in Authorized Shares                                          | 6      |
| ARTICLE 5. ELIGIBILITY AND PARTICIPATION        | 6                                    |
| ARTICLE 6. STOCK OPTIONS                        | 7                                    |
| 6.1                                             |                                 | Grant of Options                                                          | 7      |
| 6.2                                             |                                 | Agreement                                                                 | 7      |
| 6.3                                             |                                 | Option Price                                                              | 7      |
| 6.4                                             |                                 | Duration of Options                                                       | 7      |
| 6.5                                             |                                 | Exercise of Options                                                       | 8      |
| 6.6                                             |                                 | Payment                                                                   | 8      |
| 6.7                                             |                                 | Transferability                                                           | 9      |
| 6.8                                             |                                 | Shareholder Rights                                                        | 9      |
| ARTICLE 7. STOCK APPRECIATION RIGHTS            | 9                                    |
| 7.1                                             |                                 | Grants of SARs                                                            | 9      |
| 7.2                                             |                                 | Duration of SARs                                                          | 10     |
| 7.3                                             |                                 | Exercise of SAR                                                           | 10     |
| 7.4                                             |                                 | Determination of Payment of Cash and/or Common Stock Upon Exercise of SAR | 11     |
| 7.5                                             |                                 | Nontransferability                                                        | 11     |
| 7.6                                             |                                 | Shareholder Rights                                                        | 11     |
| ARTICLE 8. RESTRICTED STOCK; STOCK AWARDS       | 11                                   |
| 8.1                                             |                                 | Grants                                                                    | 11     |
| 8.2                                             |                                 | Restricted Period; Lapse of Restrictions                                  | 11     |
| 8.3                                             |                                 | Rights of Holder; Limitations Thereon                                     | 12     |
| 8.4                                             |                                 | Delivery of Unrestricted Shares                                           | 12     |
| 8.5                                             |                                 | Nonassignability of Restricted Stock                                      | 13     |
| 8.6                                             |                                 | Payment of Stock Awards                                                   | 13     |
| ARTICLE 9. PERFORMANCE UNIT AWARDS              | 13                                   |
| 9.1                                             |                                 | Award                                                                     | 13     |
| 9.2                                             |                                 | Earning the Award                                                         | 13     |
| 9.3                                             |                                 | Payment                                                                   | 14     |
| 9.4                                             |                                 | Shareholder Rights                                                        | 14     |
| ARTICLE 10. BENEFICIARY DESIGNATION             | 14                                   |
| ARTICLE 11. DEFERRALS                           | 14                                   |
| ARTICLE 12. RIGHTS OF PARTICIPANTS              | 14                                   |
| 12.1                                            |                                 | Employment                                                                | 14     |
| 12.2                                            |                                 | Participation                                                             | 15     |

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|-----------------------------------------------------|--------------------------------------|-----------------------------------------|------|
| ARTICLE 13. CHANGE IN CONTROL                       | 15                                   |
|        13.1           |        | Definition                              | 15   |
| ARTICLE 14. AMENDMENT, MODIFICATION AND TERMINATION | 16                                   |
| 14.1                                                |                                 | Amendment, Modification and Termination | 16   |
| 14.2                                                |                                 | Awards Previously Granted               | 16   |
| 14.3                                                |                                 | Compliance With Code Section 162(m)     | 16   |
| ARTICLE 15. WITHHOLDING                             | 16                                   |
| 15.1                                                |                                 | Tax Withholding                         | 16   |
| 15.2                                                |                                 | Share Withholding                       | 17   |
| ARTICLE 16. INDEMNIFICATION                         | 17                                   |
| ARTICLE 17. SUCCESSORS                              | 17                                   |
| ARTICLE 18. LEGAL CONSTRUCTION                      | 17                                   |
| 18.1                                                |                                 | Gender and Number                       | 17   |
| 18.2                                                |                                 | Severability                            | 17   |
| 18.3                                                |                                 | Requirements of Law                     | 17   |
| 18.4                                                |                                 | Regulatory Approvals and Listing        | 17   |
| 18.5                                                |                                 | Securities Law Compliance               | 18   |
| 18.6                                                |                                 | Governing Law                           | 18   |
| 18.7                                                |                                 | Code Section 409A                       | 18   |

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|         | (a)    |         | “Agreement” means an agreement entered into by each Participant and the Company, setting forth the terms and provisions applicable to Awards granted to Participants under this Plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|--------------------------------------------|--------|--------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                       |   |
|                                       | (b)    |                                       | “Award” means, individually or collectively, a grant under this Plan of Incentive Stock Options, Nonqualified Stock Options, Restricted Stock, Stock Awards, Performance Unit Awards or Stock Appreciation Rights.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                       |   |
|                                       | (c)    |                                       | “Beneficial Owner” or “Beneficial Ownership” shall have the meaning ascribed to such term in Rule 13d-3 of the General Rules and Regulations under the Exchange Act.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                                       |   |
|                                       | (d)    |                                       | “Board” or “Board of Directors” means the Board of Directors of the Company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                       |   |
|                                       | (e)    |                                       | “Cause” means: (i) with respect to the Company or any Subsidiary which employs the Participant or for which the Participant primarily performs services, the commission by the Participant of an act of fraud, embezzlement, theft or proven dishonesty, or any other illegal act or practice (whether or not resulting in criminal prosecution or conviction), or any act or practice which the Committee shall, in good faith, deem to have resulted in the Participant’s becoming unbondable under the Company’s or the Subsidiary’s fidelity bond; (ii) the willful engaging by the Participant in misconduct which is deemed by the Committee, in good faith, to be materially injurious to the Company or any Subsidiary, monetarily or otherwise; or (iii) the willful and continued failure or habitual neglect by the Participant to perform his duties with the Company or the Subsidiary substantially in accordance with the operating and personnel policies and procedures of the Company or the Subsidiary generally applicable to all their employees. For purposes of this Plan, no act or failure to act by the Participant shall be deemed to be “willful” unless done or omitted to be done by the Participant not in good faith and without reasonable belief that the Participant’s action or omission was in the best interest of the Company and/or the Subsidiary. Notwithstanding the foregoing, if the Participant has entered into an employment agreement that is binding as of the date of employment termination, and if such employment agreement defines “Cause,” then the definition of “Cause” in such agreement shall apply to the Participant in this Plan. “Cause” under either (i), (ii) or (iii) shall be determined by the Committee. |
|                                       |   |

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|         | (f)    |         | “Code” means the Internal Revenue Code of 1986, as amended from time to time, or any successor act thereto.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|--------------------------------------------|--------|--------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                       |   |
|                                       | (g)    |                                       | “Committee” means (i) the committee appointed by the Board to administer the Plan with respect to grants of Awards, as specified in Article 3; or (ii) in the absence of such appointment, the Board itself.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                       |   |
|                                       | (h)    |                                       | “Common Stock” means the common stock of the Company, no par value per share.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                       |   |
|                                       | (i)    |                                       | “Company” means Krispy Kreme Doughnuts, Inc., a North Carolina corporation, or any successor thereto as provided in Article 17.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                                       |   |
|                                       | (j)    |                                       | “Corresponding SAR” means an SAR that is granted in relation to a particular Option and that can be exercised only upon the surrender to the Company, unexercised, of that portion of the Option to which the SAR relates.                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                                       |   |
|                                       | (k)    |                                       | “Covered Employee” means a Participant who would be considered a “covered employee” as defined in the regulations promulgated under Code Section 162(m), or any successor statute.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                       |   |
|                                       | (l)    |                                       | “Director” means any individual who is a member of the Board of Directors of the Company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                       |   |
|                                       | (m)    |                                       | “Disability” shall mean a condition where the Participant either (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months; or (ii) is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than three (3) months, receiving income replacement benefits for a period of not less than three (3) months under an accident and health plan covering employees of the Company. |

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|         | (n)    |         | “Effective Date” shall have the meaning ascribed to such term in Section 1.1.                                                                                                                                                                                                                                                                    |
|--------------------------------------------|--------|--------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                       |   |
|                                       | (o)    |                                       | “Employee” means any employee of the Company or any Parent, Subsidiary, or affiliate of the Company. Directors who are not otherwise employed by the Company or a Parent, Subsidiary or affiliate of the Company are not considered Employees under this Plan.                                                                                   |
|                                       |   |
|                                       | (p)    |                                       | “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, or any successor act thereto.                                                                                                                                                                                                                            |
|                                       |   |
|                                       | (q)    |                                       | “Fair Market Value” shall be determined as follows:                                                                                                                                                                                                                                                                                              |
|                                       |   |
|                                       |   |                                       | (i)                                                                                                                                                                                                                                                                                                                                                          |         | If, on the relevant date, the Shares are traded on a national or regional securities exchange or on The Nasdaq National Market System (“Nasdaq”) and closing sale prices for the Shares are customarily quoted, on the basis of the closing sale price on the principal securities exchange on which the Shares may then be traded or, if there is no such sale on the relevant date, then on the last previous day on which a sale was reported; |
|                                       |   |
|                                       |   |                                       | (ii)                                                                                                                                                                                                                                                                                                                                                         |   | If, on the relevant date, the Shares are not listed on any securities exchange or traded on Nasdaq, but nevertheless are publicly traded and reported on Nasdaq without closing sale prices for the Shares being customarily quoted, on the basis of the mean between the closing bid and asked quotations in such other over-the-counter market as reported by Nasdaq; but, if there are no bid and asked quotations in the over-the-counter market as reported by Nasdaq on that date, then the mean between the closing bid and asked quotations in the over-the-counter market as reported by Nasdaq on the immediately preceding day such bid and asked prices were quoted; and |
|                                       |   |
|                                       |   |                                       | (iii)                                                                                                                                                                                                                                                                                                                                                        |   | If, on the relevant date, the Shares are not publicly traded as described in (i) or (ii), on the basis of the good faith determination of the Committee. |
|                                       |   |
|                                       | (r)    |                                       | “Incentive Stock Option” or “ISO” means an option to purchase Shares granted under Article 6 which is designated as an Incentive Stock Option and is intended to meet the requirements of Code Section 422.                                                                                                                          |
|                                       |   |
|                                       | (s)    |                                       | “Initial Value” means, with respect to a Corresponding SAR, the Option Price per share of the related Option, and with respect to an SAR granted independently of an Option, the Fair Market Value of one share of Common Stock on the date of grant.                                                                                            |
|                                       |   |
|                                       | (t)    |                                       | “Insider” shall mean an Employee who is, on the relevant date, an officer or a director, or a beneficial owner of ten percent (10%) or more of any class of the Company’s equity securities that is registered pursuant to Section 12 of the Exchange Act or any successor provision, all as defined under Section 16 of the Exchange Act. |
|                                       |   |
|                                       | (u)    |                                       | “Nonqualified Stock Option” or “NQSO” means an option to purchase Shares granted under Article 6, and which is not intended or otherwise fails to meet the requirements of Code Section 422.                                                                                                                                         |

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|        | (v)    |        | “Option” means an Incentive Stock Option or a Nonqualified Stock Option.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|--------------------------------------|--------|--------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                 |   |
|                                 | (w)    |                                 | “Option Price” means the price at which a Share may be purchased by a Participant pursuant to an Option, as determined by the Committee.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                 |   |
|                                 | (x)    |                                 | “Parent” means a “parent corporation,” whether now or hereafter existing as defined in Code Section 424(e).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                 |   |
|                                 | (y)    |                                 | “Participant” means an Employee, Director, consultant or other person who performs services for the Company or a Parent, Subsidiary, or affiliate of the Company, who has been granted an Award under the Plan which is outstanding.                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                                 |   |
|                                 | (z)    |                                 | “Performance Unit Award” means an Award, which, in accordance with the terms of Article 9 and the other provisions of the Plan and subject to an Agreement, will entitle the Participant, or his estate or beneficiary in the event of the Participant’s death, to receive cash, Common Stock or a combination thereof.                                                                                                                                                                                                                                                                                                                           |
|                                 |   |
|                                 | (aa)   |                                 | “Person” shall have the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d) thereof, including a “group” as defined in Section 13(d) thereof.                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                 |   |
|                                 | (bb)   |                                 | “Plan” means this Krispy Kreme Doughnuts, Inc. 2000 Stock Incentive Plan, including any amendments thereto.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                 |   |
|                                 | (cc)   |                                 | “Restricted Stock” means an Award of Common Stock (or the right to receive a share of Common Stock in the future, i.e., a restricted stock unit) granted in accordance with the terms of Article 8 and the other provisions of the Plan, and which is nontransferable and subject to a substantial risk of forfeiture. Shares of Common Stock shall cease to be Restricted Stock when, in accordance with the terms hereof and the applicable Agreement, they become transferable and free of substantial risk of forfeiture.                                                                                                                           |
|                                 |   |
|                                 | (dd)   |                                 | “Retirement” shall mean, unless an Agreement provides otherwise, retiring from employment with the Company or any Subsidiary on or after attaining age sixty five (65), or pursuant to a policy or agreement approved by the Board.                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                 |   |
|                                 | (ee)   |                                 | “SAR” means a stock appreciation right that entitles the holder to receive, with respect to each share of Common Stock encompassed by the exercise of such SAR, the amount determined by the Committee and specified in an Agreement. In the absence of such specification, the holder shall be entitled to receive in cash, with respect to each share of Common Stock encompassed by the exercise of such SAR, the excess of the Fair Market Value on the date of exercise over the Initial Value. References to “SARs” include both Corresponding SARs and SARs granted independently of Options, unless the context requires otherwise. |
|                                 |   |
|                                 | (ff)   |                                 | “Shares” means the shares of Common Stock of the Company (including any new, additional or different stock or securities resulting from the changes described in Section 4.3).                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |

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|        | (gg)   |        | “Stock Award” means a grant of Shares under Article 8 that is not generally subject to restrictions and pursuant to which a certificate for the Shares is transferred to the Employee.                                                                                                                                                                                                                                                                                           |
|--------------------------------------|--------|--------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                 |   |
|                                 | (hh)   |                                 | “Subsidiary” means (i) in the case of an ISO, any company during any period in which it is a “subsidiary corporation” (as that term is defined in Code Section 424(f)), and (ii) in the case of all other Awards, in addition to a “subsidiary corporation” as defined above, a partnership, limited liability company, joint venture or other entity in which the Company controls fifty percent (50%) or more of the voting power or equity interests. |

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|        | (a)    |        | General. Options granted under the Plan shall be exercisable at such times and be subject to such restrictions and conditions as the Committee shall in each instance approve, including conditions related to the employment of or provision of services by the Participant with the Company or any Parent, Subsidiary or other entity, which need not be the same for each grant or for each Participant. Each Option shall be exercisable for such number of Shares and at such time or times, including periodic installments, as may be determined by the Committee at the time of the grant, subject to the provisions of Section 6.5(b) herein. Except as otherwise provided in the Agreement and Article 13, the right to purchase Shares that are exercisable in periodic installments shall be cumulative so that when the right to purchase any Shares has accrued, such Shares or any part thereof may be purchased at any time thereafter until the expiration or termination of the Option. The exercise or partial exercise of either an Option or its Corresponding SAR shall result in the termination of the other to the extent of the number of Shares with respect to which the Option or Corresponding SAR is exercised.                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|--------------------------------------|--------|--------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                 |   |
|                                 | (b)    |                                 | Vesting Restrictions. Notwithstanding the provisions of Section 6.5(a), Options granted to an Employee under the Plan shall be subject to a minimum vesting period of three years (which may include installment vesting within such three-year period) or one year if the vesting is based on performance criteria other than continued service; provided, however, that (i) the Committee may provide for acceleration of vesting of all or a portion of an Option in the event of a Participant’s death, Disability, or Retirement, or upon the occurrence of a Change in Control of the Company; and (ii) the Committee may provide for the grant of an Option without a minimum vesting period or may accelerate the vesting of all or a portion of an Option for any reason, but only with respect to Awards for no more than an aggregate of ten percent (10%) of the total number of Shares authorized for issuance under the Plan pursuant to Section 4.1 herein (and including in the calculation of whether such ten percent (10%) threshold has been met any Awards granted to Employees without minimum vesting periods pursuant to subpart (iii) of Section 7.3(b) or subpart (iii) of Section 8.2(b) herein), upon such terms and conditions as the Committee shall determine, including, but not limited to, Options that are substituted for other equity awards in connection with mergers, consolidations or other similar transactions, Options that are granted as an inducement to be employed by the Company, a Subsidiary or an affiliate or to replace forfeited awards from a former employer, or Options that are granted in exchange for foregone cash compensation. |

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|        | (a)    |        | To Immediate Family and Related Entities. Unless an Agreement provides otherwise, a Participant may transfer an Option granted hereunder, including, but not limited to, transfers to members of his or her Immediate Family (as defined below), to one or more trusts for the benefit of such Immediate Family members, to one or more partnerships where such Immediate Family members are the only partners, or to one or more limited liability companies (or similar entities) where such Immediate Family Members are the only members or beneficial owners of the entity, if (i) the Participant does not receive any consideration in any form whatsoever for such transfer, (ii) such transfer is permitted under applicable tax laws, and (iii) if the Participant is an Insider, such transfer is permitted under Rule 16b-3 of the Exchange Act as in effect from time to time. For purposes hereof, “Immediate Family” shall mean the Participant and the Participant’s spouse, children and grandchildren. |
|--------------------------------------|--------|--------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                 |   |
|                                 | (b)    |                                 | Transfers Incident to Divorce. A Participant may transfer a Nonqualified Stock Option granted hereunder to a former spouse incident to such Participant’s divorce from the former spouse.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                                 |   |
|                                 | (c)    |                                 | Conditions. Any Option transferred pursuant to this Section 6.7 shall continue to be subject to the same terms and conditions in the hands of the transferee as were applicable to such Option immediately prior to the transfer thereof. Any reference in any such Agreement to the employment by or performance of services for the Company by the Participant shall continue to refer to the employment of, or performance by, the transferring Participant. Any Option that is granted pursuant to any Agreement that did not initially expressly allow the transfer of said Option and that has not been amended to expressly permit such transfer, shall not be transferable by the Participant other than by will or by the laws of descent and distribution and such Option thus shall be exercisable in the Participant’s lifetime only by the Participant.                                                                                                                                                                 |

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|        | (a)    |        | General. An SAR may be exercised in whole at any time or in part from time to time and at such times and in compliance with such requirements as the Committee shall determine as set forth in the Agreement (subject to the provisions of Section 7.3(b) herein); provided, however, that a Corresponding SAR that is related to an Incentive Stock Option may be exercised only to the extent that the related Option is exercisable and only when the Fair Market Value of the Shares exceeds the Option Price of the related ISO. An SAR granted under this Plan may be exercised with respect to any number of whole Shares less than the full number of Shares for which the SAR could be exercised. A partial exercise of an SAR shall not affect the right to exercise the SAR from time to time in accordance with this Plan and the applicable Agreement with respect to the remaining Shares subject to the SAR. The exercise of either an Option or Corresponding SAR shall result in the termination of the other to the extent of the number of Shares with respect to which the Option or its Corresponding SAR is exercised.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|--------------------------------------|--------|--------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                 |   |
|                                 | (b)    |                                 | Vesting Restrictions. Notwithstanding the provisions of Section 7.3(a), SARs granted to an Employee under the Plan shall be subject to a minimum vesting period of three years (which may include installment vesting within such three-year period) or one year if the vesting is based on performance criteria other than continued service; provided, however, that (i) the Committee may provide for acceleration of vesting of all or a portion of an SAR in the event of a Participant’s death, Disability, or Retirement, or upon the occurrence of a Change in Control of the Company; and (ii) the Committee may provide for the grant of an SAR without a minimum vesting period or may accelerate the vesting of all or a portion of an SAR for any reason, but only with respect to Awards for no more than an aggregate of ten percent (10%) of the total number of Shares authorized for issuance under the Plan pursuant to Section 4.1 herein (and including in the calculation of whether such ten percent (10%) threshold has been met any Awards granted to Employees without minimum vesting periods pursuant to subpart (iii) of Section 6.5(b) or subpart (iii) of Section 8.2(b) herein), upon such terms and conditions as the Committee shall determine, including, but not limited to, SARs that are substituted for other equity awards in connection with mergers, consolidations or other similar transactions, SARs that are granted as an inducement to be employed by the Company, a Subsidiary or an affiliate or to replace forfeited awards from a former employer, or SARs that are granted in exchange for foregone cash compensation. |

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|        | (a)    |        | General. At the time a grant of Restricted Stock is made, the Committee shall establish a period or periods of time (the “Restricted Period”) applicable to such grant (subject to the provisions of Section 8.2(b) herein). Subject to the other provisions of this Article 8, at the end of the Restricted Period all restrictions shall lapse and the Restricted Stock shall vest in the Participant.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|--------------------------------------|--------|--------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                 |   |
|                                 | (b)    |                                 | Vesting Restrictions. Notwithstanding the provisions of Section 8.2(a), Restricted Stock granted to an Employee under the Plan shall be subject to a minimum vesting period of three years (which may include installment vesting within such three-year period) or one year if the vesting is based on performance criteria other than continued service; provided, however, that (i) the Committee may provide for acceleration of vesting of all or a portion of a Restricted Stock award in the event of a Participant’s death, Disability, or Retirement, or upon the occurrence of a Change in Control of the Company; and (ii) the Committee may provide for the grant of Restricted Stock without a minimum vesting period or may accelerate the vesting of all or a portion of a Restricted Stock award for any reason, but only with respect to Awards for no more than an aggregate of ten percent (10%) of the total number of Shares authorized for issuance under the Plan pursuant to Section 4.1 herein (and including in the calculation of whether such ten percent (10%) threshold has been met any Awards granted to Employees without minimum vesting periods pursuant to subpart (iii) of Section 6.5(b) or subpart (iii) of Section 7.3(b) herein), upon such terms and conditions as the Committee shall determine, including, but not limited to, Restricted Stock that is substituted for other equity awards in connection with mergers, consolidations or other similar transactions, Restricted Stock that is granted as an inducement to be employed by the Company, a Subsidiary or an affiliate or to replace forfeited awards from a former employer, or Restricted Stock that is granted in exchange for foregone cash compensation. |

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|         | (a)    |         | The Participant shall not be entitled to delivery of a certificate until the expiration or termination of the Restricted Period for the Shares represented by such certificate and the satisfaction of any and all other conditions prescribed by the Committee;                                                                                                                                                                                                                                                      |
|--------------------------------------------|--------|--------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                       |   |
|                                       | (b)    |                                       | None of the Shares of Restricted Stock may be sold, transferred, assigned, pledged, or otherwise encumbered or disposed of during the Restricted Period and until the satisfaction of any and all other conditions prescribed by the Committee; and                                                                                                                                                                                                                                                                   |
|                                       |   |
|                                       | (c)    |                                       | In the event of the forfeiture of any Shares of Restricted Stock, such forfeited Shares shall be transferred to the Company without further action by the Participant and shall, in accordance with Section 4.1, again be available for grant under the Plan. If the Participant paid any amount for the Shares of Restricted Stock that are forfeited, the Company shall pay the Participant the lesser of the Fair Market Value of the Shares on the date they are forfeited or the amount paid by the Participant. |

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|        | (a)    |        | The acquisition (other than from the Company) by any Person of Beneficial Ownership of fifty percent (50%) or more of the combined voting power of the Company’s then outstanding voting securities within a twelve (12)-month period; provided, however, that for purposes of this Section 13.1, Person shall not include any person who on the date hereof owns 25% or more of the Company’s outstanding securities, and a Change in Control shall not be deemed to occur solely because fifty percent (50%) or more of the combined voting power of the Company’s then outstanding securities is acquired by (i) a trustee or other fiduciary holding securities under one or more employee benefit plans maintained by the Company or any of its subsidiaries, or (ii) any corporation, which, immediately prior to such acquisition, is owned directly or indirectly by the Shareholders of the Company in the same proportion as their ownership of stock in the Company immediately prior to such acquisition.                                                                                                                                                                                                                                                  |
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|                                 | (b)    |                                 | Approval by Shareholders of the Company of (1) a merger or consolidation involving the Company if the Shareholders of the Company, immediately before such merger or consolidation do not, as a result of such merger or consolidation, own, directly or indirectly, more than fifty percent (50%) of the combined voting power of the then outstanding voting securities of the corporation resulting from such merger or consolidation in substantially the same proportion as their ownership of the combined voting power of the voting securities of the Company outstanding immediately before such merger or consolidation, or (2) a complete liquidation or dissolution of the Company, or (3) an agreement for the sale or other disposition of all or substantially all of the assets of the Company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
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|                                 | (c)    |                                 | A change in the composition of the Board such that the individuals who, as of the first date of such period, constitute the Board (such Board shall be hereinafter referred to as the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, for purposes of this Section 13.1 that any individual who becomes a member of the Board during such twelve (12)-month whose election, or nomination for election by the Company’s Shareholders, was approved by a vote of at least a majority of those individuals who are members of the Board and who were also members of the Incumbent Board (or deemed to be such pursuant to this proviso) shall be considered as though such individual were a member of the Incumbent Board; but, provided, further, that any such individual whose initial assumption of office occurs as a result of either an actual or threatened election contest (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act, including any successor to such Rule), or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board, shall not be so considered as a member of the Incumbent Board. |

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