<PAGE>
 
                                                                   EXHIBIT 10.21


                                BWAY CORPORATION
                              AMENDED AND RESTATED
                         1995 LONG-TERM INCENTIVE PLAN
                         -----------------------------

                                    Recitals
                                    --------

     This amendment amends and restates the 1995 Long-Term Incentive Plan
established in June of 1995 to (a) reflect the change in the Company's name to
BWAY Corporation, (b) increase the aggregate number of shares of common stock
that may be issued under this Plan to 750,000 shares and (c) account for recent
amendments to Rule 16b-3 under the Exchange Act which changed requirements with
respect to administration of, and eligibility to participate in, the Plan.

     Concurrently with its adoption of this amendment and restatement of the
Plan, the Board is freezing the existing formula plan for directors.  Future
grants of options to non-employee directors shall be made pursuant to this Plan
only.

1.  Purpose.
    ------- 

     This plan shall be known as the BWAY Corporation Amended and Restated 1995
Long-Term Incentive Plan (the "Plan").  The purpose of the Plan shall be to
promote the long-term growth and profitability of BWAY Corporation (the
"Company") and its subsidiaries by (i) providing certain directors, officers and
key employees of the Company and its subsidiaries with incentives to maximize
stockholder value and otherwise contribute to the success of the Company and
(ii) enabling the Company to attract, retain and reward the best available
persons for positions of substantial responsibility.  Grants of incentive or
nonqualified stock options, stock appreciation rights ("SARs") in tandem with
options, restricted stock, performance awards, or any combination of the
foregoing may be made under the Plan.

2.  Definitions.
    ----------- 

     (a)  "Board of Directors" and "Board" mean the board of directors of BWAY
           ------------------       -----                                     
Corporation.

     (b)  "Cause" means the occurrence of one of the following events:
           -----                                                      
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               (i) Conviction of a felony or any crime or offense lesser than a
felony involving the property of the Company or a subsidiary; or

               (ii) Conduct that has caused demonstrable and serious injury to
the Company or a subsidiary, monetary or otherwise; or

               (iii) Willful refusal to perform or substantial disregard of
duties properly assigned, as determined by the Company.

     (c)  "Change in Control" means the occurrence of one of the following
           -----------------                                              
events:

               (i) if any "person" or "group" as those terms are used in
Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended
("Exchange Act"), other than an Exempt Person, is or becomes the "beneficial
owner" (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of securities of the Company representing 50% or more of the
combined voting power of the Company's then outstanding securities; or

               (ii) during any period of two consecutive years, individuals who
at the beginning of such period constitute the Board and any new director whose
election by the Board or nomination for election by the Company's stockholders
was approved by at least two-thirds (2/3) of the directors then still in office
who either were directors at the beginning of the period or whose election was
previously so approved, cease for any reason to constitute a majority thereof;
or

               (iii) the stockholders of the Company approve a merger or
consolidation of the Company with any other corporation, other than a merger or
consolidation which would result in all or a portion of the voting securities of
the Company outstanding immediately prior thereto continuing to represent
(either by remaining outstanding or by being converted into voting securities of
the surviving entity) more than 50% of the combined voting power of the voting
securities of the Company or such surviving entity outstanding immediately after
such merger or consolidation, or the stockholders of the Company approve a plan
of complete liquidation of the Company or an agreement for the sale or
disposition by the Company of all or substantially all the Company's assets,
other than a sale to an Exempt Person.

                                      -2-
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     (d)  "Code"  means the Internal Revenue Code of 1986, as amended.
           ----                                                       

     (e)  "Committee" means the compensation committee of the Board.  The
           ---------                                                     
membership of the Committee shall be constituted so as to comply at all times
with the applicable requirements of Rule 16b-3 under the Exchange Act and
Section 162(m) of the Code.

     (f)  "Competition" is deemed to occur if a person whose employment with
           -----------                                                      
the Company or its subsidiaries has terminated obtains a position as a full time
or part-time employee of, as a member of the board of directors of, or as a
consultant or advisor with or to, or acquires an ownership interest in excess of
5% of, a corporation, partnership, firm or other entity that engages in any of
the businesses of the Company or any subsidiary with which the person was
involved in a management role at any time during his or her last five years of
employment with the Company or any subsidiary.

     (g)  "Disability" means a permanent and total disability as defined in
           ----------                                                      
the Company's Long-Term Disability Plan or as otherwise approved by the
Committee.

     (h)  "Exchange Act" means the Securities Exchange Act of 1934, as
           ------------                                               
amended.

     (i)  "Exempt Person" means (i) the Chairman of the Company on the
           -------------                                              
effective date of this Plan, (ii) any person who owns 15% or more of the
outstanding shares of Common Stock on the effective date of this Plan, (iii) any
person (or group of related persons) that becomes the owner of 15% or more of
the outstanding shares of Common Stock as a result of a gift or bequest from a
person included in (i) or (ii) above, (iv) any person, entity or group under the
control of any party included in clause (i), (ii) or (iii), and (v) a trustee or
other fiduciary holding securities under an employee benefit plan of the
Company.

     (j)  "Fair Market Value" of a share of Common Stock of the Company
           -----------------                                           
means, with respect to the date in question, the officially-quoted closing
selling price of the stock on the Nasdaq National Market (the "Market") or if

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the Common Stock is not listed or quoted in the Market, the Fair Market Value
shall be the fair value of the Common Stock determined in good faith by the
Board; provided, however, that when shares received upon exercise of an option
are immediately sold in the open market, the net sale price received may be used
to determine the Fair Market Value of any shares used to pay the exercise price
or withholding taxes and to compute the withholding taxes.

     (k)  "Incentive Stock Option" means an option conforming to the
           ----------------------                                   
requirements of Section 422 of the Code.

     (l)  "Non-Employee Director" has the meaning given to such term in Rule
           ---------------------                                            
16b-3 under the Exchange Act.

     (m)  "Nonqualified Stock Option" means any stock option other than an
           -------------------------                                      
Incentive Stock Option.

     (n)  "Retirement" means retirement as defined under the Company's
           ----------                                                 
Pension Plan or termination of one's employment on retirement with the approval
of the Committee.

     (o)  "Subsidiary" means a corporation or other entity of which
           ----------                                              
outstanding shares or ownership interest representing 50% or more of the
combined voting power of such corporation or other entity are owned directly or
indirectly by the Company.

3.    Administration.
      -------------- 

          The Plan shall be administered by the Committee. The Committee shall
consist of at least two Non-Employee Directors.  Subject to the provisions of
the Plan, the Committee shall be authorized to (i) select persons to participate
in the Plan, (ii) determine the form and substance of grants made under the Plan
to each participant, and the conditions and restrictions, if any, subject to
which such grants will be made, (iii) interpret the Plan and (iv) adopt, amend,
or rescind such rules and regulations for carrying out the Plan as it may deem
appropriate.  Decisions of the Committee on all matters relating to the Plan
shall be in the Committee's sole discretion and shall be conclusive and binding
on all parties.  The validity, construction, and effect of the Plan and any
rules and regulations relating to the Plan shall be determined in accordance

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with applicable federal and state laws and rules and regulations promulgated
pursuant thereto.

4.    Shares Available for the Plan.
      ----------------------------- 

          Subject to adjustments as provided in Section 15, an aggregate of
750,000 shares of Common Stock, par value $.01 per share, of the Company
(hereinafter the "Shares") may be issued pursuant to the Plan.  Such Shares may
be in whole or in part authorized and unissued, or shares which have been
reacquired by the Company and held as treasury shares.  If any grant under the
Plan expires or terminates unexercised, becomes unexercisable or is forfeited as
to any Shares, such unpurchased or forfeited Shares shall thereafter be
available for further grants under the Plan unless, in the case of options
granted under the Plan, related SARs are exercised.

          Without limiting the generality of the foregoing provisions of this
Section 4 or the generality of the provisions of Sections 3, 6 or 17 or any
other section of this Plan, the Committee may, at any time or from time to time,
and on such terms and conditions (that are consistent with and not in
contravention of the other provisions of this Plan) as the Committee may, in its
sole discretion, determine, enter into agreements (or take other actions with
respect to the options) for new options containing terms (including exercise
prices) more (or less) favorable than the outstanding options.

5.    Participation.
      ------------- 

          Participation in the Plan shall be limited to those directors
(including Non-Employee Directors) and officers and key employees of the Company
and its Subsidiaries selected by the Committee.  Nothing in the Plan or in any
grant thereunder shall confer any right on an employee to continue in the employ
of the Company or shall interfere in any way with the right of the Company to
terminate an employee at any time.

          Incentive Stock Options or Nonqualified Stock Options, SARs in tandem
with options, restricted stock awards, performance awards, or any combination
thereof, may be granted to such persons and for such number of Shares as the
Committee shall determine (such individuals to whom grants are made being
sometimes herein called "optionees" or "grantees" as the case may be).  A grant

                                      -5-
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of any type made hereunder in any one year to an eligible employee shall neither
guarantee nor preclude a further grant of that or any other type to such
employee in that year or subsequent years.

6.    Incentive and Nonqualified Options.
      ---------------------------------- 

          The Committee may from time to time grant to eligible participants
Incentive Stock Options, Nonqualified Stock Options, or any combination thereof.
In any one calendar year, the Committee shall not grant to any one participant,
options to purchase a number of shares of Common Stock in excess of 250,000.
The options granted shall take such form as the Committee shall determine,
subject to the following terms and conditions.

          (a)  Price.  The price per Share deliverable upon the exercise of each
               -----                                                            
option ("exercise price") shall be established by the Committee, except that in
the case of the grant of any Incentive Stock Option, the exercise price may not
be less than 100% of the Fair Market Value of the Shares at the close of the
market on the day next preceding grant of the option unless otherwise permitted
by Section 422 of the Code.  In the case of the grant of any Incentive Stock
Option to an employee who, at the time of the grant, owns more than 10% of the
total combined voting power of all classes of stock of the Company or any of its
Subsidiaries, such price per Share, if required by the Code, shall not be less
that 110% of the Fair Market Value of the Shares at the close of the market on
the day next preceding grant of the option.

          (b)  Payment.  Options may be exercised in whole or in part, upon
               -------                                                     
payment of the exercise price of the Shares to be acquired. Payment shall be
made in cash (including check, bank draft or money order) or, in the discretion
of the Committee, (i) in cash and/or shares of Common Stock and/or by delivery
of the optionee's promissory note (if in accordance with policies approved by
the Committee), or (ii) by special arrangement through a broker selected by the
Committee.  The fair market value of shares of  Common Stock tendered on
exercise of options shall be the Fair Market Value of such shares as of the
close of the market on the day next preceding exercise of the option.

          (c)  Withholding Tax.  Unless otherwise determined by the Committee, a
               ---------------                                                  
participant may elect to deliver shares of Common Stock (or have the company

                                      -6-
<PAGE>
 
withhold shares acquired upon exercise of the option) to satisfy in whole or in
part, the amount the Company is required to withhold for taxes in connection
with the exercise of an option.  Such election must be made on or before the
date the amount of tax to be withheld is determined.  Once made, the election
shall be irrevocable.  The fair market value of the shares to be withheld or
delivered will be the Fair Market Value as of the close of the market on the day
next preceding the date the amount of tax to be withheld is determined.

          (d) Terms of Options.  The term during which each option may be
              ----------------                                           
exercised shall be determined by the Committee, but, except as otherwise
provided herein, in no event shall an option be exercisable in whole or in part
in the case of a Nonqualified Stock Option, more than ten years and one day from
the date it is granted or, in the case of an Incentive Stock Option, ten years
from the date it is granted; and, in the case of the grant of an Incentive Stock
Option to an employee who at the time of the grant owns more than 10% of the
total combined voting power of all classes of stock of the Company or any of its
Subsidiaries, in no event shall such option be exercisable, if required by the
Code, more than five years from the date of the grant.  All rights to purchase
shares pursuant to an option shall, unless sooner terminated, expire at the date
designated by the Committee.  The Committee shall determine the date on which
each option shall become exercisable and may provide that an option shall become
exercisable in installments.  The shares constituting each installment may be
purchased in whole or in part at any time after such installment becomes
exercisable, subject to such minimum exercise requirements as are designated by
the Committee.  Unless otherwise provided herein or in the terms of the related
grant, an optionee may exercise an option only if he or she is, and has been
continuously since the date the option was granted, a director, officer or
employee of the Company or a Subsidiary.  Prior to the exercise of the option
and delivery of the Shares represented thereby, the optionee shall have no right
to any dividends or be entitled to any voting rights on any Shares covered by
outstanding options.

          (e)  Limitations on Grants. If required by the Code, the aggregate
               ---------------------                                        
Fair Market Value (determined as of the grant date) of Shares for which an
Incentive Stock Option is exercisable for the first time during any calendar
year may not exceed $100,000.

                                      -7-
<PAGE>
 
          (f) Termination of Employment; Change in Control.
              -------------------------------------------- 

              (i) If a participant ceases to be a director, officer or employee
of the Company or any Subsidiary due to death or Disability, all of the
participant's options, and SARs shall become fully vested and exercisable and
shall remain so for a period of one year from the date of termination of
employment, but in no event after the expiration date of the option.
Notwithstanding the foregoing, if the Disability giving rise to the termination
of employment is not within the meaning of Section 422(e)(3) of the Code,
Incentive Stock Options not exercised by such participant within 90 days after
the date of termination of employment will cease to qualify as Incentive Stock
Options and will be treated as Nonqualified Stock Options under the Plan if
required to be so treated under the Code.

              (ii) If a participant ceases to be a director, officer or employee
of the Company or a Subsidiary upon the occurrence of his or her Retirement, (A)
each of his or her options and SARs that was exercisable on the date of
Retirement shall remain exercisable for, and shall otherwise terminate at the
end of, a period of up to five years after the date of Retirement, but in no
event after the expiration date of the option; provided that the participant
does not engage in Competition during such five-year period unless he or she
receives written consent to do so from the Board or the Committee, and (B) all
of the participant's options and SARs that were not exercisable on the date of
Retirement shall be forfeited immediately upon such cessation. Notwithstanding
the foregoing, Incentive Stock Options not exercised by such participant within
90 days after Retirement will cease to qualify as Incentive Stock Options and
will be treated as Nonqualified Stock Options under the Plan if required to be
so treated under the Code.

              (iii) If a participant ceases to be a director, officer or
employee of the Company or a Subsidiary due to Cause, all of his or her options
and SARs shall be forfeited immediately upon such cessation.

              (iv) Unless otherwise determined by the Committee, if a
participant ceases to be an employee of the Company or a Subsidiary for any
reason other than death, Disability, Retirement or Cause, (A) each of his or her
options and SARs that was exercisable on the date of termination shall remain

                                      -8-
<PAGE>
 
exercisable for, and shall otherwise terminate at the end of, a period of 90
days after the date of termination of employment, but in no event after the
expiration date of the option; provided that participant does not engage in
Competition during such 90-day period unless he or she receives written consent
to do so from the Board or the Committee, and (B) all of the participant's
options and SARs that were not exercisable on the date of such termination shall
be forfeited.

              (v)  If there is a Change in Control of the Company, all of the
participant's options and SARs shall become fully vested and exercisable.

7.   Stock Appreciation Rights.
     ------------------------- 

          The Committee shall have the authority to grant SARs under this Plan
to any optionee, either at the time of grant of an option or thereafter by
amendment to an option.  The exercise of an option shall result in an immediate
forfeiture of its related SAR to the extent the option is exercised, and the
exercise of an SAR shall cause an immediate forfeiture of its related option to
the extent the SAR is exercised.  SARs shall be subject to such other terms and
conditions as the Committee may specify.  An SAR shall expire at the same time
as the related option expires and shall be transferable only when, and under the
same conditions as, the related option is transferable.

          SARs shall be exercisable only when, to the extent and on the
conditions that the related option is exercisable.  No SAR may be exercised
unless the Fair Market Value of a share of Common Stock of the Company on the
date of exercise exceeds the exercise price of the option to which the SAR
corresponds.

          Upon the exercise of an SAR, the optionee shall be entitled to a
distribution in an amount equal to the difference between the Fair Market Value
of a share of Common Stock of the Company on the date of exercise and the
exercise price of the option to which the SAR is related multiplied by the
number of Shares as to which the SAR is exercised.  The Committee shall decide
whether such distribution shall be in cash, in shares, or in a combination
thereof.

                                      -9-
<PAGE>
 
          All SARs will be exercised automatically on the last day prior to the
expiration date of the related option, so long as the Fair Market Value of a
share of the Company's Common Stock on that date exceeds the exercise price of
the related option.

8.   Restricted Stock.
     ---------------- 

          The Committee may at any time and from time to time grant Shares of
restricted stock under the Plan to such participants and in such amounts as it
determines.  Each grant of restricted stock shall specify the applicable
restrictions on such Shares, the duration of such restrictions (which shall be
at least one year), and the time or times at which such restrictions shall lapse
with respect to all or a specified number of Shares that are part of the grant.

          The participant will be required to deposit Shares with the Company
during any period of restriction thereon and to execute a blank stock power
therefor.  Except as otherwise provided by the Committee, during such period of
restriction the participant shall have all of the rights of a holder of Common
Stock, including but not limited to the rights to receive dividends (or amounts
equivalent to dividends) and to vote.

          Except as otherwise provided by the Committee, on a Change in Control
or on termination of a grantee's employment due to death, Disability or
Retirement with the consent of the Company during any period of restriction all
restrictions on Shares granted to such grantee shall lapse. On termination of a
grantee's employment for any other reason, all restricted stock granted to such
grantee on which the restrictions have not lapsed shall be forfeited to the
Company.

9.   Performance Awards.
     ------------------ 

          Performance awards may be granted on a contingent basis to
participants at any time and from time to time as determined by the Committee.
The Committee shall have complete discretion in determining the size and
composition of performance awards so granted to a participant and the
appropriate period over which performance is to be measured ("performance
cycle").  Performance awards may include (i) specific dollar-value target awards
(ii) performance units, the value of each such unit being determined by the

                                      -10-
<PAGE>
 
Committee at the time of issuance, and/or (iii) performance Shares, the value of
each such Share being equal to the Fair Market Value of a share of the Company's
Common Stock.

          The value of each performance award may be fixed or it may be
permitted to fluctuate based on a performance factor (e.g., return on equity)
selected by the Committee.

          The Committee shall establish performance goals and objectives for
each performance cycle on the basis of such criteria and objectives as the
Committee may select from time to time.  During any performance cycle, the
Committee shall have the authority to adjust the performance goals and
objectives for such cycle for such reasons as it deems equitable.

          The Committee shall determine the portion of each performance award
that is earned by a participant on the basis of the Company's performance over
the performance cycle in relation to the performance goals for such cycle. The
earned portion of a performance award may be paid out in Shares, cash, or a
combination of both, as the Committee may determine.

          A participant must be an employee of the Company at the end of the
performance cycle in order to be entitled to payment of a performance award
issued in respect of such cycle; provided, however, that, except as otherwise
determined by the Committee, if a participant ceases to be an employee of the
Company upon the occurrence of his or her death, Retirement, or Disability prior
to the end of the performance cycle, the participant shall earn a proportionate
portion of the performance award based upon the elapsed portion of the
performance cycle and the Company's performance over that portion of such cycle.

          In the event of a Change in Control, a participant shall earn no less
than the portion of the performance award that the participant would have earned
if the performance cycle(s) had terminated as of the date of the Change in
Control.

10.  Withholding Taxes.
     ----------------- 

          The Company may require, as a condition to any grant or exercise under
the Plan or to the delivery of certificates for Shares issued hereunder, that
the grantee pay to the Company, in cash, any federal, state or local taxes of

                                      -11-
<PAGE>
 
any kind required by law to be withheld with respect to any grant or any
delivery of Shares.  The Company, to the extent permitted or required by law,
shall have the right to deduct from any payment of any kind (including salary or
bonus) otherwise due to a grantee any federal, state or local taxes of any kind
required by law to be withheld with respect to any grant or to the delivery of
Shares under the Plan, or to retain or sell without notice a sufficient number
of the Shares to be issued to such grantee to cover any such taxes, provided
that the Company shall not sell any such Shares if such sale would be considered
a sale by such grantee for purposes of Section 16 of the Exchange Act that is
not exempt from matching thereunder.

11.  Written Agreement; Vesting.
     -------------------------- 

          Each employee to whom a grant is made under the Plan shall enter into
a written agreement with the Company that shall contain such provisions,
including without limitation vesting requirements, consistent with the
provisions of the Plan, as may be approved by the Committee.  Unless the
Committee determines otherwise, no grant under this Plan may be exercised within
six months of the date such grant is made.

12.  Transferability.
     --------------- 

          Unless the agreement pursuant to which a grant is made provides
otherwise, no option, tandem SAR, performance award, or restricted stock granted
under the Plan shall be transferable by an employee otherwise than by will or
the laws of descent and distribution or pursuant to a qualified domestic
relations order as defined by the Code.  An option, SAR, or performance award
may be exercised only by the optionee or grantee thereof or his guardian or
legal representative; provided that Incentive Stock Options may be exercised by
such guardian or legal representative only if permitted by the Code and any
regulations promulgated thereunder.

13.  Listing and Registration.
     ------------------------ 

          If the Committee determines that the listing, registration or
qualification upon any securities exchange or under any law of Shares subject to
any option, SAR, performance award, or restricted stock grant is necessary or
desirable as a condition of, or in connection with, the granting of same or the

                                      -12-
<PAGE>
 
issue or purchase of Shares thereunder, no such option or SAR may be exercised
in whole or in part, no such performance award paid out and no Shares issued
unless such listing, registration or qualification is effected free of any
conditions not acceptable to the Committee.

14.  Transfer of Employee.
     -------------------- 

          Transfer of an employee from the Company to a Subsidiary, from a
Subsidiary to the Company, and from one Subsidiary to another shall not be
considered a termination of employment; nor shall it be considered a termination
of employment if an employee is placed on military or sick leave or such other
leave of absence which is considered by the Committee as continuing intact the
employment relationship.

15.  Adjustments.
     ----------- 

          In the event of a reorganization, recapitalization, stock

split, stock dividend, combination of shares, merger, consolidation,
distribution of assets, or any other change in the corporate structure or shares
of the Company, the Committee shall make such adjustment as it deems appropriate
in the number and kind of Shares or other property reserved for issuance under
the Plan, in the number and kind of Shares or other property covered by grants
made under the Plan, and in the exercise price of outstanding options.  In the
event of any merger, consolidation or other reorganization in which the Company
is not the surviving or continuing corporation or in which a Change in Control
is to occur, all of the Company's obligations regarding options, SARs
performance awards, and restricted stock that were granted hereunder and that
are outstanding on the date of such event shall, on such terms as may be
approved by the Committee prior to such event, be assumed by the surviving or
continuing corporation or canceled in exchange for property (including cash).

16.  Termination and Modification of the Plan.
     ---------------------------------------- 

          The Board of Directors, without further approval of the stockholders,
may modify or terminate the Plan, except that no modification shall become
effective without prior approval of the stockholders of the Company if
stockholder approval would be required for continued compliance with the

                                      -13-
<PAGE>
 
performance-based compensation exception of Section 162(m) of the Code.

17.  Amendment or Substitution of Awards under the Plan.
     -------------------------------------------------- 

          The terms of any outstanding award under the Plan may be amended from
time to time by the Committee in its discretion in any manner that it deems
appropriate (including, but not limited to, acceleration of the date of exercise
of any award and/or payments thereunder); provided that no such amendment shall
adversely affect in a material manner any right of a participant under the award
without his written consent, unless the Committee determines in its discretion
that there have occurred or are about to occur significant changes in the
participant's position, duties or responsibilities, or significant changes in
economic, legislative, regulatory, tax, accounting or cost/benefit conditions
which are determined by the Committee in its discretion to have or to be
expected to have a substantial effect on the performance of the Company, or any
subsidiary, affiliate, division or department thereof, on the Plan or on any
award under the Plan.  However, the Committee may not reduce the exercise price
of an outstanding option.  The Committee may, in its discretion, permit holders
of awards under the Plan to surrender outstanding awards in order to exercise or
realize rights under other awards, or in exchange for the grant of new awards,
or require holders of awards to surrender outstanding awards as a condition
precedent to the grant of new awards under the Plan.

          The Committee may amend or modify the grant of any outstanding option,
tandem SAR, performance award, or restricted stock in any manner to the extent
that the Committee would have had the authority to make such grant as so
modified or amended, including without limitation to change the date or dates as
of which (i) an option or SAR becomes exercisable, (ii) a performance award is
to be determined or paid, or (iii) restrictions on Shares are to be removed.  No
modification may be made that would materially adversely affect any grant
previously made under the Plan without the approval of the grantee.  The
Committee shall be authorized to make minor or administrative modifications to
the Plan as well as modifications to the Plan that may be dictated by
requirements of federal or state laws applicable to the Company or that may be
authorized or made desirable by such laws.

                                      -14-
<PAGE>
 
18.  Commencement Date; Termination Date.
     ----------------------------------- 

          The Board and the stockholders initially approved the Plan as of June,
1995.  On August 20, 1996, the Board approved an amendment and restatement of
the Plan. Unless previously terminated upon the adoption of a resolution of the
Board terminating the Plan, the Plan shall terminate at the close of business on
May 31, 2005.  No termination of the Plan shall materially and adversely affect
any of the rights or obligations of any person, without his consent, under any
grant of options or other incentives theretofore granted under the Plan.

                                      -15-
<PAGE>
 
                           STOCK OPTION PLAN PROPOSAL


TERM

          The 1995 Plan will terminate on May 31, 2005 unless sooner terminated
by the Board.  Termination of the 1995 Plan will not affect grants made prior to
termination, but no grants will be made after termination.

ADMINISTRATION

          The 1995 Plan is administered by a committee appointed by the Board
(the "Committee") composed of two or more persons not eligible to receive awards
      ---------                                                                 
under the 1995 Plan.

          Subject to the terms of the 1995 Plan, the Committee has authority to
(i) select employees to participate in the 1995 Plan, (ii) determine the form of
grants and the conditions and restrictions, if any, subject to which grants will
be made and become payable under the 1995 Plan, (iii) construe and interpret the
1995 Plan, and (iv) adopt, amend or rescind such rules and regulations and make
such other determinations for carrying out the 1995 Plan, as the Committee deems
necessary or appropriate.

ELIGIBILITY

          Directors, officers and key employees of the Company and its
subsidiaries selected by the Committee may participate in the 1995 Plan.
Selection for participation with respect to one form of award under the 1995
Plan does not automatically result in selection for participation with respect
to other forms of awards under the 1995 Plan unless such result is specified by
the  Committee or by the terms of the 1995 Plan.

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