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                                                                   EXHIBIT 10(j)

                              GUEST SUPPLY, INC.
                         1996 LONG TERM INCENTIVE PLAN



          SECTION 1.  Purpose.  The purposes of this Guest Supply, Inc. 1996
Long Term Incentive Plan (the "Plan") are to encourage selected employees,
officers, directors and consultants of, and other individuals providing services
to, Guest Supply, Inc. (together with any successor thereto, the "Company") and
its Affiliates (as defined below) to acquire a proprietary interest in the
growth and performance of the Company, to generate an increased incentive to
contribute to the Company's future success and prosperity thus enhancing the
value of the Company for the benefit of its shareholders, and to enhance the
ability of the Company and its Affiliates to attract and retain exceptionally
qualified individuals upon whom, in large measure, the sustained progress,
growth and profitability of the Company depend.

          SECTION 2.  Definitions.  As used in the Plan, the following terms
shall have the meanings set forth below:

          "Affiliate" shall mean (i) any entity that, directly or through one or
more intermediaries, is controlled by the Company and (ii) any entity in which
the Company has a significant equity interest, as determined by the Committee.

          "Award" shall mean any Option, Stock Appreciation Right, Restricted
Security, Performance Award, or Other Stock-Based Award granted under the Plan.

          "Award Agreement" shall mean any written agreement, contract or other
instrument or document evidencing any Award granted under the Plan.

          "Board" shall mean the Board of Directors of the Company.

          "Cause", as used in connection with the termination of a Participant's
employment, shall mean (i) with respect to any Participant employed under a
written employment agreement with the Company or an Affiliate of the Company
which agreement includes a definition of "cause," "cause" as defined in such
agreement or, if such agreement contains no such definition, a material breach
by the Participant of such agreement, or (ii) with respect to any other
Participant, the failure to perform adequately in carrying out such
Participant's employment responsibilities, including any directives from the
Board, or engaging in such behavior in his personal or business life as to lead
the Committee in its reasonable judgment to determine that it is in the best
interests of the Company to terminate his employment.

          "Common Stock" shall mean the common stock of the Company, without par
value.

          "Code" shall mean the Internal Revenue Code of 1986, as amended from
time to time, and the regulations promulgated thereunder.

          "Committee" shall mean the Stock Option Committee or any other
committee of the Board designated by the Board to administer the Plan and
composed of not less than three outside directors, as described in Section
162(m) of the Code, each of whom, to the extent necessary to comply with Rule
16b-3 only, is a "disinterested person" within the meaning of Rule 16b-3 as in
effect at April 30, 1991.

          "Common Shares" shall mean any or all, as applicable, of the Common
Stock and such other securities or property as may become the subject of Awards,
or become subject to Awards,
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pursuant to an adjustment made under Section 4(b) of the Plan and any other
securities of the Company or any Affiliate or any successor that may be so
designated by the Committee.

          "Employee" shall mean any employee of the Company or of any Affiliate.

          "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended.

          "Fair Market Value" shall mean (A) with respect to any property other
than the Common Shares, the fair market value of such property determined by
such methods or procedures as shall be established from time to time by the
Committee; and (B) with respect to the Common Shares, the last sale price
regular way on the date of reference, or, in case no sale takes place on such
date, the average of the high bid and low asked prices, in either case on the
principal national securities exchange on which the Common Shares are listed or
admitted to trading, or if the Common Shares are not listed or admitted to
trading on any national securities exchange, the last sale price reported on the
National Market System of the National Association of Securities Dealers
Automated Quotation System ("NASDAQ") on such date, or the average of the
closing high bid and low asked prices in the over-the-counter market reported on
NASDAQ on such date, whichever is applicable, or if there are no such prices
reported on NASDAQ on such date, as furnished to the Committee by any New York
Stock Exchange member selected from time to time by the Committee for such
purpose. If there is no bid or asked price reported on any such date, the Fair
Market Value shall be determined by the Committee in accordance with the
regulations promulgated under Section 2031 of the Code, or by any other
appropriate method selected by the Committee.

          "Good Reason", as used in connection with the termination of a
Participant's employment, shall mean (i) with respect to any Participant
employed under a written employment agreement with the Company or an Affiliate
of the Company, "good reason" as defined in such written agreement or, if such
agreement contains no such definition, a material breach by the Company of such
agreement, or (ii) with respect to any other Participant, a failure by the
Company to pay such Participant any amount otherwise vested and due and a
continuation of such failure for 30 business days following notice to the
Company thereof.

          "Incentive Stock Option" shall mean an option granted under Section
6(a) of the Plan that is intended to meet the requirements of Section 422 of the
Code or any successor provision thereto.

          "Non-Qualified Stock Option" shall mean an option granted under
Section 6(a) of the Plan that is not intended to be an Incentive Stock Option.
Any stock option granted by the Committee which is not designated an Incentive
Stock Option shall be deemed a Non-Qualified Stock Option.

          "Option" shall mean an Incentive Stock Option or a Non-Qualified Stock
Option.

          "Other Stock-Based Award" shall mean any right granted under Section
6(e) of the Plan.

          "Participant" shall mean any individual granted an Award under the
Plan.

          "Performance Award" shall mean any right granted under Section 6(d) of
the Plan.

          "Person" shall mean any individual, corporation, partnership,
association, joint-stock company, trust, unincorporated organization, or
government or political subdivision thereof.
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          "Released Securities" shall mean securities that were Restricted
Securities but with respect to which all applicable restrictions have expired,
lapsed or been waived in accordance with the terms of the Plan or the applicable
Award Agreement.

          "Restricted Securities" shall mean any Common Shares granted under
Section 6(c) of the Plan, any right granted under Section 6(c) of the Plan that
is denominated in Common Shares or any other Award under which issued and
outstanding Common Shares are held subject to certain restrictions.

          "Rule 16b-3" shall mean Rule 16b-3 promulgated by the Securities and
Exchange Commission under the Exchange Act, or any successor rule or regulation
thereto as in effect from time to time.

          "Securities Act" shall mean the Securities Act of 1933, as amended.

          "Stock Appreciation Right" shall mean any right granted under Section
6(b) of the Plan.

          SECTION 3.  Administration.  The Plan shall be administered by the
Committee. Subject to the terms of the Plan and applicable law, and in addition
to other express powers and authorizations conferred on the Committee by the
Plan, the Committee shall have full power and authority to: (i) designate
Participants; (ii) determine the type or types of Awards to be granted to an
eligible Employee or other individual under the Plan; (iii) determine the number
and classification of Common Shares to be covered by (or with respect to which
payments, rights or other matters are to be calculated in connection with)
Awards; (iv) determine the terms and conditions of any Award; (v) determine
whether, to what extent, and under what circumstances Awards may be settled or
exercised in cash, Common Shares, other securities, other Awards or other
property, or canceled, forfeited or suspended, and the method or methods by
which Awards may be settled, exercised, canceled, forfeited or suspended; (vi)
determine requirements for the vesting of Awards or performance criteria to be
achieved in order for Awards to vest; (vii) determine whether, to what extent
and under what circumstances cash, Common Shares, other securities, other
Awards, other property and other amounts payable with respect to an Award under
the Plan shall be deferred either automatically or at the election of the holder
thereof or of the Committee; (viii) interpret and administer the Plan and any
instrument or agreement relating to, or Award made under, the Plan; (ix)
establish, amend, suspend or waive such rules and regulations and appoint such
agents as it shall deem appropriate for the proper administration of the Plan;
and (x) make any other determination and take any other action that the
Committee deems necessary or desirable for the administration of the Plan.
Unless otherwise expressly provided in the Plan, all designations,
determinations, interpretations and other decisions under or with respect to the
Plan or any Award shall be within the sole discretion of the Committee, may be
made at any time and shall be final, conclusive and binding upon all Persons,
including the Company, any Affiliate, any Participant, any holder or beneficiary
of any Award, any shareholder and any Employee. Notwithstanding the foregoing,
the maximum number of Awards which may be granted to any one Participant under
this Plan in any two-year period shall not exceed 100,000 Common Shares, subject
to the adjustments provided in Section 4(b) hereof and no Awards under this Plan
shall be granted after December 31, 2005.
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                                       4

          SECTION 4.  Common Shares Available for Awards.

          (a)    Common Shares Available.  Subject to adjustment as provided in
Section 4(b):

               (i)    Calculation of Number of Common Shares Available.  The
     number of Common Shares available for granting Awards under the Plan shall
     be 400,000, any or all of which may be or may be based on Common Stock, any
     other security which becomes the subject of Awards, or any combination
     thereof. Initially 400,000 shares of Common Stock shall be reserved for
     Awards hereunder. Further, if, after the effective date of the Plan, any
     Common Shares covered by an Award granted under the Plan or to which such
     an Award relates, are forfeited, or if an Award otherwise terminates or is
     canceled without the delivery of Shares or of other consideration, then the
     Common Shares covered by such Award or to which such Award relates, or the
     number of Common Shares otherwise counted against the aggregate number of
     Common Shares available under the Plan with respect to such Award, to the
     extent of any such forfeiture, termination or cancellation, shall again be,
     or shall become, available for granting Awards under the Plan.

              (ii)    Accounting for Awards.  For purposes of this Section 4,

                 (A) if an Award is denominated in or based upon Common Shares,
          the number of Common Shares covered by such Award or to which such
          Award relates shall be counted on the date of grant of such Award
          against the aggregate number of Common Shares available for granting
          Awards under the Plan and against the maximum number of Awards
          available to any Participant; and

                 (B) Awards not denominated in Common Shares may be counted
          against the aggregate number of Common Shares available for granting
          Awards under the Plan and against the maximum number of Awards
          available to any participant in such amount and at such time as the
          Committee shall determine under procedures adopted by the Committee
          consistent with the purposes of the Plan;

     provided, however, that Awards that operate in tandem with (whether granted
     simultaneously with or at a different time from), or that are substituted
     for, other Awards may be counted or not counted under procedures adopted by
     the Committee in order to avoid double counting. Any Common Shares that are
     delivered by the Company, and any Awards that are granted by, or become
     obligations of, the Company, through the assumption by the Company or an
     Affiliate of, or in substitution for, outstanding awards previously granted
     by an acquired company shall, in the case of Awards granted to Participants
     who are officers or directors of the Company for purposes of Section 16 of
     the Exchange Act, be counted against the Common Shares available for
     granting Awards under the Plan.

             (iii)    Sources of Common Shares Deliverable Under Awards.  Any
     Common Shares delivered pursuant to an Award may consist, in whole or in
     part, of authorized and unissued Common Shares or of treasury Common
     Shares.

          (b)    Adjustments.  In the event that the Committee shall determine
that any dividend or other distribution (whether in the form of cash, Common
Shares, other securities or other property), recapitalization, stock split,
reverse stock split, reorganization, merger, consolidation, split-up, spin-off,
combination, repurchase or exchange of Common Shares or other securities of the
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                                       5

Company, issuance of warrants or other rights to purchase Common Shares or other
securities of the Company, or other similar corporate transaction or event
affects the Common Shares such that an adjustment is determined by the Committee
to be appropriate in order to prevent dilution or enlargement of the benefits or
potential benefits intended to be made available under the Plan, then the
Committee shall, in such manner as it may deem equitable, adjust any or all of
(i) the number and kind of Common Shares (or other securities or property) which
thereafter may be made the subject of Awards, (ii) the number and kind of Common
Shares (or other securities or property) subject to outstanding Awards, and
(iii) the grant or exercise price with respect to any Award or, if deemed
appropriate, make provision for a cash payment to the holder of an outstanding
Award; provided, however, that the number of Common Shares subject to any Award
denominated in Common Shares shall always be a whole number.

          In connection with any merger or consolidation in which the Company is
not the surviving corporation and which results in the holders of the
outstanding voting securities of the Company (determined immediately prior to
such merger or consolidation) owning less than a majority of the outstanding
voting securities of the surviving corporation (determined immediately following
such merger or consolidation), or any sale or transfer by the Company of all or
substantially all its assets or any tender offer or exchange offer for or the
acquisition, directly or indirectly, by any person or group of all or a majority
of the then outstanding voting securities of the Company, all outstanding
Options under the Plan shall become exercisable in full, notwithstanding any
other provision of the Plan or of any outstanding Options granted thereunder, on
and after (i) the fifteenth day prior to the effective date of such merger,
consolidation, sale, transfer or acquisition or (ii) the date of commencement of
such tender offer or exchange offer, as the case may be. The provisions of the
foregoing sentence shall apply to any outstanding Options which are Incentive
Stock Options to the extent permitted by Section 422(d) of the Code and such
outstanding Options in excess thereof shall, immediately upon the occurrence of
the event described in clause (i) or (ii) of the foregoing sentence, be treated
for all purposes of the Plan as Non-Qualified Stock Options and shall be
immediately exercisable as such as provided in the foregoing sentence.

          SECTION 5.  Eligibility.  Any Employee, including any officer or
employee-director of the Company or of any Affiliate, and any consultant of, or
other individual providing services to, the Company or any Affiliate shall be
eligible to be designated a Participant. A non-employee director shall be
eligible to receive Non-Qualified Stock Options under the Plan.

          SECTION 6.  Awards.

          (a)    Options.  The Committee is hereby authorized to grant to
eligible individuals options to purchase Common Shares (each, an "Option") which
shall contain the following terms and conditions and with such additional terms
and conditions, in either case not inconsistent with the provisions of the Plan,
as the Committee shall determine:

               (i)    Exercise Price.  The purchase price per Common Share
     purchasable under an Option shall be determined by the Committee; provided,
     however, that such purchase price shall not be less than one hundred
     percent (100%) of the Fair Market Value of a Common Share on the date of
     grant of such Option, or such other price as required under Subsection
     6(a)(iv) hereof.

              (ii)    Time and Method of Exercise.  Subject to the terms of
     Section 6(a)(iii), the Committee shall determine the time or times at which
     an Option may be exercised in whole or in part, and the method or methods
     by which, and the form or forms (including,
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                                       6

     without limitation, cash, Common Shares, outstanding Awards, or other
     property, or any combination thereof, having a Fair Market Value on the
     exercise date equal to the relevant exercise price) in which, payment of
     the exercise price with respect thereto may be made or deemed to have been
     made.

             (iii)    Exercisability Upon Death, Retirement and Termination of
     Employment. Subject to the condition that no Option may be exercised in
     whole or in part after the expiration of the Option period specified in the
     applicable Award Agreement:

                 (A) Subject to the terms of paragraph (D) below, upon the death
          of a Participant while employed or within 3 months of retirement or
          disability as defined in paragraph (B) below, the Person or Persons to
          whom such Participant's rights with respect to any Option held by such
          Participant are transferred by will or the laws of descent and
          distribution may, prior to the expiration of the earlier of: (1) the
          outside exercise date determined by the Committee at the time of
          granting the Option, or (2) nine months after such Participant's
          death, purchase any or all of the Common Shares with respect to which
          such Participant was entitled to exercise such Option immediately
          prior to such Participant's death, and any Options not so exercisable
          will lapse on the date of such Participant's death;

                 (B) Subject to the terms of paragraph (D) below, upon
          termination of a Participant's employment with the Company (x) as a
          result of retirement pursuant to a retirement plan of the Company or
          an Affiliate or disability (as determined by the Committee) of such
          Participant, (y) by the Company other than for Cause, or (z) by the
          Participant with Good Reason, such Participant may, prior to the
          expiration of the earlier of: (1) the outside exercise date determined
          by the Committee at the time of granting the Option, or (2) three
          months after the date of such termination, purchase any or all of the
          Common Shares with respect to which such Participant was entitled to
          exercise any Options immediately prior to such termination, and any
          Options not so exercisable will lapse on such date of termination;

                 (C) Subject to the terms of paragraph (D) below, upon
          termination of a Participant's employment with the Company under any
          circumstances not described in paragraphs (A) or (B) above, such
          Participant's Options shall be canceled to the extent not theretofore
          exercised;

                 (D) Upon (i) the death of the Participant, or (ii) termination
          of the Participant's employment with the Company (x) by the Company
          other than for Cause (y) by the Participant with Good Reason or (z) as
          a result of retirement or disability as defined in paragraph (B)
          above, the Company shall have the right to cancel all of the Options
          such Participant was entitled to exercise at the time of such death or
          termination (subject to the terms of paragraphs (A) or (B) above) for
          a payment in cash equal to the excess, if any, of the Fair Market
          Value of one Common Share on the date of death or termination over the
          exercise price of such Option for one Common Share times the number of
          Common Shares subject to the Option and exercisable at the time of
          such death or termination; and

                 (E) Upon expiration of the respective periods set forth in each
          of paragraphs (A) through (C) above, the Options of a Participant who
          has died or whose
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                                       7

          employment has been terminated shall be canceled to the extent not
          theretofore canceled or exercised.

                 (F) For purposes of paragraphs (A) through (D) above, the
          period of service of an individual as a director or consultant of the
          Company or an Affiliate shall be deemed the period of employment.

              (iv)    Incentive Stock Options.  The following provisions shall
     apply only to Incentive Stock Options granted under the Plan:

                 (A) No Incentive Stock Option shall be granted to any eligible
          Employee who, at the time such Option is granted, owns securities
          possessing more than ten percent (10%) of the total combined voting
          power of all classes of securities of the Company or of any Affiliate,
          except that such an Option may be granted to such an Employee if at
          the time the Option is granted the option price is at least one
          hundred ten percent (110%) of the Fair Market Value of the Common
          Shares (determined in accordance with Section 2) subject to the
          Option, and the Option by its terms is not exercisable after the
          expiration of five (5) years from the date the Option is granted; and

                 (B) To the extent that the aggregate Fair Market Value of the
          Common Shares with respect to which Incentive Stock Options (without
          regard to this subsection) are exercisable for the first time by any
          individual during any calendar year (under all plans of the Company
          and its Affiliates) exceeds $100,000, such Options shall be treated as
          Non-Qualified Stock Options. This subsection shall be applied by
          taking Options into account in the order in which they were granted.
          If some but not all Options granted on any one day are subject to this
          subsection, then such Options shall be apportioned between Incentive
          Stock Option and Non-Qualified Stock Option treatment in such manner
          as the Committee shall determine. For purposes of this subsection, the
          Fair Market Value of any Common Shares shall be determined, in
          accordance with Section 2, as of the date the Option with respect to
          such Common Shares is granted.

               (v)    Terms and Conditions of Options Granted to Directors.
     Notwithstanding any provision contained in the Plan to the contrary, during
     any period when any member of the Committee shall not be a "disinterested
     person" as defined in Rule 16b-3, as such Rule was in effect at April 30,
     1991, then, the terms and conditions of Options granted under the Plan to
     any director of the Company during such period shall be as follows:

                 (A) The price at which each Common Share subject to an option
          may be purchased shall, subject to any adjustments which may be made
          pursuant to Section 4, in no event be less than the Fair Market Value
          of a Common Share on the date of grant, and provided further that in
          the event the option is intended to be an Incentive Stock Option and
          the optionee owns on the date of grant securities possessing more than
          ten percent (10%) of the total combined voting power of all classes of
          securities of the Company or of any Affiliate, the price per share
          shall not be less than one hundred ten percent (110%) of the Fair
          Market Value per Common Share on the date of grant.
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                 (B) The Option may be exercised to purchase Common Shares
          covered by the Option not sooner than six (6) months following the
          date of grant. The Option shall terminate and no Common Shares may be
          purchased thereunder more than ten (10) years after the date of grant,
          provided that if the Option is intended to be an Incentive Stock
          Option and the Optionee owns on the date of grant securities
          possessing more than ten percent (10%) of the total combined voting
          power of all classes of securities of the Company or of any Affiliate,
          the Option shall terminate and no Common Shares may be purchased
          thereunder more than five (5) years after the date of grant.

                 (C) The maximum number of Common Shares which may be subject to
          options granted to all directors pursuant to this Section 6(a)(v)
          shall be 300,000 shares in the aggregate. The maximum number of Common
          Shares which may be subject to options granted to any director of the
          Company who is an Employee shall be 100,000 shares and the maximum
          number of Common Shares which may be subject to options granted to any
          director of the Company who is not an Employee shall be 20,000 shares.

          (b)    Stock Appreciation Rights.  The Committee is hereby authorized
to grant to eligible Employees "Stock Appreciation Rights." Each Stock
Appreciation Right shall consist of a right to receive the excess of (i) the
Fair Market Value of one Common Share on the date of exercise or, if the
Committee shall so determine in the case of any such right other than one
related to any Incentive Stock Option, at any time during a specified period
before or after the date of exercise over (ii) the grant price of the right as
specified by the Committee, which shall not be less than one hundred percent
(100%) of the Fair Market Value of one Common Share on the date of grant of the
Stock Appreciation Right (or, if the Committee so determines, in the case of any
Stock Appreciation Right retroactively granted in tandem with or in substitution
for another Award, on the date of grant of such other Award). Subject to the
terms of the Plan and any applicable Award Agreement, the grant price, term,
methods of exercise, methods of settlement, and any other terms and conditions
of any Stock Appreciation Right granted under the Plan shall be as determined by
the Committee. The Committee may impose such conditions or restrictions on the
exercise of any Stock Appreciation Right as it may deem appropriate.

          (c)    Restricted Securities.

               (i)    Issuance.  The Committee is hereby authorized to grant to
     eligible Employees "Restricted Securities" which shall consist of the right
     to receive, by purchase or otherwise, Common Shares which are subject to
     such restrictions as the Committee may impose (including, without
     limitation, any limitation on the right to vote such Common Shares or the
     right to receive any dividend or other right or property), which
     restrictions may lapse separately or in combination at such time or times,
     in such installments or otherwise, as the Committee may deem appropriate.

              (ii)    Registration.  Restricted Securities granted under the
     Plan may be evidenced in such manner as the Committee may deem appropriate,
     including, without limitation, book-entry registration or issuance of a
     stock certificates or certificates. In the event any stock certificate is
     issued in respect of Restricted Securities granted under the Plan, such
     certificate shall be registered in the name of the Participant and shall
     bear an appropriate legend referring to the terms, conditions and
     restrictions applicable to such Restricted Securities.
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                                       9

             (iii)    Forfeiture.  Except as otherwise determined by the
     Committee, upon termination of a Participant's employment for any reason
     during the applicable restriction period, all of such Participant's
     Restricted Securities which had not become Released Securities by the date
     of termination of employment shall be forfeited and reacquired by the
     Company; provided, however, that the Committee may, when it finds that a
     waiver would be in the best interests of the Company, waive in whole or in
     part any or all remaining restrictions with respect to such Participant's
     Restricted Securities. Unrestricted Common Shares, evidenced in such manner
     as the Committee shall deem appropriate, shall be issued to the holder of
     Restricted Securities promptly after such Restricted Securities become
     Released Securities.

          (d)    Performance Awards.  The Committee is hereby authorized to
grant to eligible Employees "Performance Awards." Each Performance Award shall
consist of a right, (i) denominated or payable in cash, Common Shares, other
securities or other property (including, without limitation, Restricted
Securities), and (ii) which shall confer on the holder thereof rights valued as
determined by the Committee and payable to, or exercisable by, the holder of the
Performance Award, in whole or in part, upon the achievement of such performance
goals during such performance periods as the Committee shall establish. Subject
to the terms of the Plan and any applicable Award Agreement, the performance
goals to be achieved during any performance period, the length of any
performance period, the amount of any Performance Award granted, the termination
of a Participant's employment and the amount of any payment or transfer to be
made pursuant to any Performance Award shall be determined by the Committee and
by the other terms and conditions of any Performance Award. The Committee shall
issue performance goals prior to the commencement of the performance period to
which such performance goals pertain.

          (e)    Other Stock-Based Awards.  The Committee is hereby authorized
to grant to eligible Employees "Other Stock-Based Awards." Each Other Stock-
Based Award shall consist of a right (i) which is other than an Award or right
described in Section 6(a), (b), (c) or (d) above and (ii) which is denominated
or payable in, valued in whole or in part by reference to, or otherwise based on
or related to, Common Shares (including, without limitation, securities
convertible into Common Shares) as are deemed by the Committee to be consistent
with the purposes of the Plan; provided, however, that such right shall comply,
to the extent deemed desirable by the Committee, with Rule 16b-3 and applicable
law. Subject to the terms of the Plan and any applicable Award Agreement, the
Committee shall determine the terms and conditions of Other Stock-Based Awards.
Common Shares or other securities delivered pursuant to a purchase right granted
under this Section 6(e) shall be purchased for such consideration, which may be
paid by such method or methods and in such form or forms, including, without
limitation, cash, Common Shares, other securities, other Awards, other property,
or any combination thereof, as the Committee shall determine.

          (f)    General.

               (i)    No Cash Consideration for Awards.  Awards may be granted
     for no cash consideration or for such minimal cash consideration as may be
     required by applicable law.

              (ii)    Awards May Be Granted Separately or Together.  Awards may,
     in the discretion of the Committee, be granted either alone or in addition
     to, in tandem with, or in substitution for any other Award, except that in
     no event shall an Incentive Stock Option be granted together with a Non-
     Qualified Stock Option in such a manner that the exercise of one Option
     affects the right to exercise the other. Awards granted in addition to or
     in tandem with
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                                       10

     other Awards may be granted either at the same time as or at a different
     time from the grant of such other awards.

             (iii)    Forms of Payment Under Awards.  Subject to the terms of
     the Plan and of any applicable Award Agreement, payments or transfers to be
     made by the Company or an Affiliate upon the grant, exercise or payment of
     an Award may be made in such form or forms as the Committee shall
     determine, including, without limitation, cash, Common Shares, other
     securities, other Awards, or other property, or any combination thereof,
     and may be made in a single payment or transfer, in installments, or on a
     deferred basis, in each case in accordance with rules and procedures
     established by the Committee. Such rules and procedures may include,
     without limitation, provisions for the payment or crediting of reasonable
     interest on installment or deferred payments. In accordance with the above,
     the Committee may elect (i) to pay a Participant (or such Participant's
     permitted transferee) upon the exercise of an Option in whole or in part,
     in lieu of the exercise thereof and the delivery of Common Shares
     thereunder, an amount of cash equal to the excess, if any, of the Fair
     Market Value of one Common Share on the date of such exercise over the
     exercise price of such Option for one Common Share times the number of
     Common Shares subject to the Option or portion thereof so exercised or (ii)
     to settle other stock denominated Awards in cash.

              (iv)    Limits on Transfer of Awards.

                 (A) No award (other than Released Securities), and no right
          under any such Award, may be assigned, alienated,  pledged,  attached,
          sold or otherwise transferred or encumbered by a Participant otherwise
          than by will or by the laws of descent and distribution (or, in the
          case of Restricted Securities, to the Company) and any such purported
          assignment, alienation, pledge, attachment, sale or other transfer or
          encumbrance shall be void and unenforceable against the Company or any
          Affiliate.

                 (B) Each award, and each right under any Award, shall be
          exercisable, during the Participant's lifetime only by the Participant
          or if permissible under applicable law, by the Participant's guardian
          or legal representative.

               (v)    Terms of Awards.  The term of each Award shall be for such
     period as may be determined by the Committee; provided, however, that in no
     event shall the term of any Option exceed a period of ten years from the
     date of its grant.

              (vi)    Rule 16b-3 Six-Month Limitations.  To the extent required
     in order to maintain the exemption provided under Rule 16b-3 only, any
     equity security offered pursuant to the Plan must be held for at least six
     months after the date of grant, and with respect to any derivative security
     issued pursuant to the Plan, at least six months must elapse from the date
     of acquisition of such derivative security to the date of disposition of
     the derivative security (other than upon exercise or conversion) or its
     underlying equity security. Terms used in the preceding sentence shall, for
     the purposes of such sentence only, have the meanings, if any, assigned or
     attributed to them under Rule 16b-3.

             (vii)    Common Share Certificates.  All certificates for Common
     Shares delivered under the Plan pursuant to any Award or the exercise
     thereof shall be subject to such stop transfer orders and other
     restrictions as the Committee may deem advisable under the Plan or the
     rules, regulations, and other requirements of the Securities and Exchange
     Commission, any stock exchange upon which such Common Shares are then
     listed, and any applicable
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                                       11

     Federal or state securities laws, and the Committee may cause a legend or
     legends to be put on any such certificates to make appropriate reference to
     such restrictions.

            (viii)    Delivery of Common Shares or Other Securities and Payment
     by Participant of Consideration. No Common Shares or other securities shall
     be delivered pursuant to any Award until payment in full of any amount
     required to be paid pursuant to the Plan or the applicable Award Agreement
     is received by the Company. Such payment may be made by such method or
     methods and in such form or forms as the Committee shall determine,
     including, without limitation, cash, Common Shares, other securities, other
     Awards or other property, or any combination thereof; provided that the
     combined value, as determined by the Committee, of all cash and cash
     equivalents and the Fair Market Value of any such Common Shares or other
     property so tendered to the Company, as of the date of such tender, is at
     least equal to the full amount required to be paid pursuant to the Plan or
     the applicable Award Agreement to the Company.

          SECTION 7.  Amendments; Adjustments and Termination.  Except to the
extent prohibited by applicable law and unless otherwise expressly provided in
an Award Agreement or in the Plan:

          (a)    Amendments to the Plan.  The Board may amend, alter, suspend,
discontinue, or terminate the Plan without the consent of any shareholder,
Participant, other holder or beneficiary of an Award, or other Person; provided,
however, that, subject to the Company's rights to adjust Awards under Sections
7(c) and (d), any amendment, alteration, suspension, discontinuation, or
termination that would impair the rights of any Participant, or any other holder
or beneficiary of any Award theretofore granted, shall not to that extent be
effective without the consent of such Participant, other holder or beneficiary
of an Award, as the case may be; and provided further, however, that
notwithstanding any other provision of the Plan or any Award Agreement, without
the approval of the shareholders of the Company no such amendment, alteration,
suspension, discontinuation, or termination shall be made that would:

               (i)    increase the total number of Common Shares available for
     Awards under the Plan, except as provided in Section 4 hereof; or

              (ii)    otherwise cause the Plan to cease to comply with any tax
     or regulatory requirement, including for these purposes any approval or
     other requirement which is or would be a prerequisite for exemptive relief
     from Section 16(b) of the Exchange Act.

          (b)    Amendments to Awards.  The Committee may waive any conditions
or rights under, amend any terms of, or alter, suspend, discontinue, cancel or
terminate, any Award theretofore granted, prospectively or retroactively;
provided, however, that, subject to the Company's rights to adjust Awards under
Sections 7(c) and (d), any amendment, alteration, suspension, discontinuation,
cancellation or termination that would impair the rights of any Participant or
holder or beneficiary of any Award theretofore granted, shall not to that extent
be effective without the consent of such Participant or holder or beneficiary of
an Award, as the case may be.

          (c)    Adjustment of Awards Upon Certain Acquisitions.  In the event
the Company or any Affiliate shall assume outstanding employee awards or the
right or obligation to make future such awards in connection with the
acquisition of another business or another corporation or business entity, the
Committee may make such adjustments, not inconsistent with the terms of the
Plan, in the terms of Awards as it shall deem appropriate in order to achieve
reasonable comparability or other
<PAGE>
 
                                       12

equitable relationship between the assumed awards and the Awards granted under
the Plan as so adjusted.

          (d)    Adjustments of Awards Upon the Occurrence of Certain Unusual or
Non-recurring Events. The Committee is hereby authorized to make adjustments in
the terms and conditions of, and the criteria included in, Awards in recognition
of unusual or non-recurring events (including, without limitation, the events
described in Section 4(b) hereof) affecting the Company, any Affiliate, or the
financial statements of the Company or any Affiliate, or of changes in
applicable laws, regulations, or accounting principles, whenever the Committee
determines that such adjustments are appropriate in order to prevent dilution or
enlargement of the benefits or potential benefits intended to be made available
under the Plan.

          SECTION 8.  General Provisions.

          (a)    No Right to Awards.  No Employee or other Person shall have any
claim to be granted any Award under the Plan, and there is no obligation for
uniformity of treatment of Employees, or holders or beneficiaries of Awards
under the Plan. The terms and conditions of Awards need not be the same with
respect to each recipient.

          (b)    Delegation.  Subject to the terms of the Plan and applicable
law, the Committee may delegate to one or more officers or managers of the
Company or any Affiliate, or to a committee of such officers or managers, the
authority, subject to such terms and limitations as the Committee shall
determine, to grant Awards to, or to cancel, modify, waive rights with respect
to, alter, discontinue, suspend, or terminate Awards; provided, however, that,
no such delegation shall be permitted with respect to Awards held by Employees
who are officers or directors of the Company for purposes of Section 16 of the
Exchange Act, or any successor section thereto or who are otherwise subject to
such Section.

          (c)    Correction of Defects, Omissions, and Inconsistencies.  The
Committee may correct any defect, supply any omission, or reconcile any
inconsistency in the Plan or any Award in the manner and to the extent it shall
deem desirable to carry the Plan into effect.

          (d)    Withholding.  The Company or any Affiliate shall be authorized
to withhold from any Award granted, from any payment due or transfer made under
any Award or under the Plan or from any compensation or other amount owing to a
Participant the amount (in cash, Common Shares, other securities, other Awards,
or other property) of withholding taxes due in respect of an Award, its
exercise, or any payment or transfer under such Award or under the Plan and to
take such other action as may be necessary in the opinion of the Company or
Affiliate to satisfy all obligations for the payment of such taxes.

          (e)    No Limit on Other Compensation Arrangements.  Nothing contained
in the Plan shall prevent the Company or any Affiliate from adopting or
continuing in effect other or additional compensation arrangements, and such
arrangements may be either generally applicable or applicable only in specific
cases.

          (f)    No Right to Employment.  The grant of an Award shall not be
construed as giving a Participant the right to be retained in the employ of the
Company or any Affiliate. Further, the Company or an Affiliate may at any time
dismiss a Participant from employment, free from any liability, or any claim
under the Plan, unless otherwise expressly provided in the Plan or in any Award
Agreement.
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                                       13

          (g)    Governing Law.  The validity, construction, and effect of the
Plan and any rules and regulations relating to the Plan shall be determined in
accordance with the laws of the State of New Jersey and applicable Federal law.

          (h)    Severability.  If any provision of the Plan or any Award is or
becomes or is deemed to be invalid, illegal or unenforceable in any jurisdiction
or as to any Person or Award under any law deemed applicable by the Committee,
such provision shall be construed or deemed amended to conform to applicable
laws, or if it cannot be construed or deemed amended without, in the
determination of the Committee, materially altering the intent of the Plan or
the Award, such provision shall be stricken as to such jurisdiction, Person or
Award and the remainder of the Plan and any such Award shall remain in full
force and effect.

          (i)    No Trust or Fund Created.  Neither the Plan nor any Award shall
create or be construed to create a trust or separate fund of any kind or a
fiduciary relationship between the Company or any Affiliate and a Participant or
any other Person. To the extent that any Person acquires a right to receive
payments from the Company or any Affiliate pursuant to an Award, such right
shall be no greater than the right of any unsecured general creditor of the
Company or any Affiliate.

          (j)    No Fractional Common Shares.  No fractional Common Shares shall
be issued or delivered pursuant to the Plan or any Award, and the Committee
shall determine whether cash, other securities, or other property shall be paid
or transferred in lieu of any fractional Common Shares or whether such
fractional Common Shares or any rights thereto shall be canceled, terminated, or
otherwise eliminated.

          (k)    Headings.  Headings are given to the Sections and subsections
of the Plan solely as a convenience to facilitate reference. Such headings shall
not be deemed in any way material or relevant to the construction or
interpretation of the Plan or any provision thereof.

          SECTION 9.  Adoption, Approval and Effective Date of the Plan.  The
Plan shall be considered adopted and shall become effective on the date the Plan
is approved by the Board; provided, however, that the Plan and any Awards
granted under the Plan shall be void, if the shareholders of the Company shall
not have approved the adoption of the Plan within twelve (12) months after the
effective date, by a majority of votes cast thereon at a meeting of shareholders
duly called and held for such purpose.