<PAGE>

                                                                    EXHIBIT 10.1

                        CORE MOLDING TECHNOLOGIES, INC.
                      2006 LONG-TERM EQUITY INCENTIVE PLAN

                                  ARTICLE ONE

                     ESTABLISHMENT, OBJECTIVES AND DURATION

     1.1  ESTABLISHMENT OF THE PLAN.  Core Molding Technologies, Inc., a
Delaware corporation (the "Company"), hereby adopts, effective March 30, 2006,
the Core Molding Technologies, Inc. 2006 Long-Term Equity Incentive Plan as set
forth in this document. The Plan permits the grant of Nonqualified Stock
Options, Incentive Stock Options, Stock Appreciation Rights, Restricted Stock,
Performance Shares and Performance Units, and Other Incentive Awards.

     1.2  OBJECTIVES OF THE PLAN.  The objectives of the Plan are to optimize
the profitability and growth of the Company through incentives which are
consistent with the Company's goals and which link and align the personal
interests of Participants with an incentive for excellence in individual
performance; and to promote teamwork.

     The Plan is further intended to provide flexibility to the Company in its
ability to motivate, attract and retain the services of Participants who make
significant contributions to the Company's success and to allow Participants to
share in the success of the Company.

     1.3  DURATION OF THE PLAN.  The Plan shall commence on the Effective Date,
as described in Section 1.1 hereof, and shall remain in effect, subject to the
right of the Board of Directors to amend or terminate the Plan at any time
pursuant to Article 16 hereof, until all Shares subject to it shall have been
purchased or acquired according to the Plan's provisions. However, in no event
may an Award be granted under the Plan on or after December 31, 2015.

                                  ARTICLE TWO

                                  DEFINITIONS

     Whenever used in the Plan, the following terms shall have the meanings set
forth below, and when the meaning is intended, the initial letter of the word
shall be capitalized:

     "Award" means, individually or collectively, a grant under this Plan of
Nonqualified Stock Options, Incentive Stock Options, Stock Appreciation Rights,
Restricted Stock, Performance Shares or Performance Units, or Other Incentive
Awards.

     "Award Agreement" means an agreement entered into by the Company and each
Participant setting forth the terms and provisions applicable to Awards granted
under this Plan.

     "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.

     "Board" or "Board of Directors" means the Board of Directors of the
Company.

     "Change in Control" of the Company means any one or more of the following:

          (a) The Company is merged, consolidated or reorganized into or with
     another corporation, partnership, limited liability company, trust, or
     other legal person (collectively referred herein as a "Business Entity"),
     and immediately after such merger, consolidation, or reorganization less
     than fifty percent (50%) of the combined voting power of the
     then-outstanding securities of such Business Entity immediately after such
     transaction are held in the aggregate by the holders of voting stock of the
     Company immediately prior to such transaction;

                                       1
<PAGE>

          (b) The Company sells all or substantially all of its assets to any
     other Business Entity, and less than fifty percent (50%) of the combined
     voting power of the then-outstanding securities of such Business Entity
     immediately after such sale are held in the aggregate by the holders of
     voting stock of the Company immediately prior to such sale; or

          (c) There is a report filed on Schedule 13D or Schedule 14D-1 (or any
     successor schedule, form or report), each as promulgated pursuant to the
     Securities Exchange Act of 1934 ("Exchange Act"), disclosing that any
     person (as the term "person" is used in Section 13(d)(3) or Section
     14(d)(2) of the Exchange Act) or group of persons acting in concert has
     become the beneficial owner (as the term "beneficial owner" is defined
     under Rule 13d-3 or any successor rule or regulation promulgated under the
     Exchange Act) of securities representing fifty percent (50%) or more of the
     voting stock of the Company.

          (d) The Company files a report or proxy statement with the Securities
     and Exchange Commission pursuant to the Exchange Act disclosing in response
     to Form 8-K or Schedule 14A (or any successor schedule, form or report or
     item therein) that a change in control of the Company has or may have
     occurred or will or may occur in the future pursuant to any then-existing
     contract or transaction; or

          (e) If during any period of two consecutive years, individuals who at
     the beginning of any such period constitute the Directors of the Company
     cease for any reason to constitute at least a majority thereof, provided,
     however, that for purposes of this paragraph (e) each Director who is first
     elected, or first nominated for election by the Company's stockholders, by
     a vote of at least two-thirds of the Directors of the Company (or a
     committee thereof) then still in office who were Directors of the Company
     at the beginning of any such period will be deemed to have been a Director
     of the Company at the beginning of such period.

     "Code" means the Internal Revenue Code of 1986, as amended from time to
time.

     "Committee" means the Compensation Committee of the Board, as specified in
Article 3 herein, or such other Committee appointed by the Board to administer
the Plan with respect to grants of Awards.

     "Common Stock" means the common stock of the Company.

     "Company" means Core Molding Technologies, Inc., a Delaware corporation,
and the Company's Subsidiaries, as well as any successor to any of such entities
as provided in Article 19 herein.

     "Director" means any individual who is a member of the Board of Directors
of the Company.

     "Disability" shall have the meaning ascribed to such term in the
Participant's governing long-term disability plan. To the extent that a
Participant is not covered under a long-term disability plan, the term
"Disability" shall have the meaning ascribed to the term "permanent and total
disability" under Section 22(e)(3) of the Code, or any successor provision
thereto.

     "Effective Date" shall have the meaning ascribed to such term in Section
1.1 hereof.

     "Employee" means any employee of the Company. Nonemployee Directors shall
not be considered Employees under this Plan unless specifically designated
otherwise.

     "Exchange Act" means the Securities Exchange Act of 1934, as amended from
time to time, or any successor act thereto.

     "Fair Market Value" shall be determined on the basis of the average of the
high and low sale prices on the principal securities exchange on which the
Shares are publicly traded or, if there is no such sale on the relevant date,
then on the last previous day on which a sale was reported.

     "Freestanding SAR" means an SAR that is granted independently of any
Options, as described in Article 7 herein.

     "Incentive Stock Option" or "ISO" means an option to purchase Shares
granted under Article 6 herein and which is designated as an Incentive Stock
Option and which is intended to meet the requirements of Code Section 422.

                                       2
<PAGE>

     "Insider" shall mean an individual who is, on the relevant date, an
officer, director or ten percent (10%) beneficial owner of any class of the
Company's equity securities that it registered pursuant to Section 12 of the
Exchange Act, as defined under Section 16 of the Exchange Act.

     "Named Executive Officer" means a Participant who, as of the date of
vesting and/or payout of an Award, as applicable, is one of the group of
"covered employees," as defined in the regulations promulgated under Code
Section 162(m), or any successor statute.

     "Nonemployee Director" means an individual who is a member of the Board of
Directors of the Company but who is not an Employee of the Company or a
Subsidiary.

     "Nonqualified Stock Option" or "NQSO" means an option to purchase Shares
granted under Article 6 herein and which is not intended to meet the
requirements of Code Section 422.

     "Option" means an Incentive Stock Option or a Nonqualified Stock Option, as
described in Article 6 herein.

     "Option Price" means the price at which a Share may be purchased by a
Participant pursuant to an Option.

     "Other Incentive Award" means an award granted pursuant to Article 10
hereof.

     "Participant" means an Employee or Nonemployee Director who has outstanding
an Award granted under the Plan.

     "Performance-Based Exception" means the performance-based exception from
the tax deductibility limitations of Code Section 162(m).

     "Performance Period" means the time period during which performance goals
must be achieved with respect to an Award, as determined by the Committee.

     "Performance Share" means an Award granted to a Participant, as described
in Article 9 herein.

     "Performance Unit" means an Award granted to a Participant, as described in
Article 9 herein.

     "Period of Restriction" means the period during which the transfer of
Shares of Restricted Stock is limited in some way (based on the passage of time,
the achievement of performance goals, and/or upon the occurrence of other events
as determined by the Committee at its discretion), and the Shares are subject to
a substantial risk of forfeiture, as provided in Article 8 herein.

     "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.

     "Restricted Stock" means an Award granted to a Participant pursuant to
Article 8 herein.

     "Retirement" means the normal retirement date on which a Participant
qualifies for full retirement benefits under the Company's qualified retirement
plan, as identified by the Committee. In the event that a Participant is not
covered under any qualified retirement plan maintained by the Company, the term
'Retirement' shall mean the date on which such Participant attains age 65.

     "Shares" means the shares of common stock of the Company.

     "Share Pool" means the number of shares authorized for issuance under
paragraph 4.1, as adjusted for awards and payouts under paragraph 4.2 and as
adjusted for changes in corporate capitalization under paragraph 4.3.

     "Stock Appreciation Right" or "SAR" means an Award, granted alone or in
connection with a related Option, designated as an SAR, pursuant to the terms of
Article 7 herein.

     "Subsidiary" means any corporation, partnership, joint venture, affiliate
or other entity in which the Company has a majority voting interest, and which
the Committee designates as a participating entity in the Plan.

                                       3
<PAGE>

     "Tandem SAR" means an SAR that is granted in connection with a related
Option pursuant to Article 7 herein, the exercise of which shall require
forfeiture of the right to purchase a Share under the related Option (and when a
Share is purchased under the Option, the Tandem SAR shall similarly be
canceled).

                                 ARTICLE THREE

                                 ADMINISTRATION

     3.1  THE COMMITTEE.  The Plan shall be administered by the Compensation
Committee of the Board or by any other Committee appointed by the Board. The
members of the Committee shall be appointed from time to time by, and shall
serve at the discretion of, the Board of Directors. Notwithstanding any
provision contained herein, to the extent that any Award is designed to comply
with the Performance-Based Exception, the Committee shall satisfy the
requirements contained in Section 1.162-27(c)(4) of the final regulations
promulgated by the Internal Revenue Service under Section 162(m) of the Code.
For purposes of granting Awards under the Plan, the Committee shall be composed
of not less than the minimum number of persons from time to time required by
Rule 16b-3 under the Exchange Act, each of whom shall be a "non-employee
director" within the meaning of Rule 16b-3 under the Exchange Act, or any
successor rule or regulation.

     3.2  AUTHORITY OF THE COMMITTEE.  Except as limited by law or by the
Certificate of Incorporation or Bylaws. of the Company, and subject to the
provisions herein, the Committee shall have full power to select Employees and
Nonemployee Directors who shall participate in the Plan; determine the sizes and
types of Awards; determine the terms and conditions of Awards in a manner
consistent with the Plan; construe and interpret the Plan and any agreement or
instrument entered into under the plan; establish, amend or waive rules and
regulations for the Plan's administration; and (subject to the provisions of
Article 16 herein) amend the terms and conditions of any outstanding Award to
the extent such terms and conditions are within the discretion of the Committee
as provided in the Plan. Further, the Committee shall make all other
determinations which may be necessary or advisable for the administration of the
Plan. As permitted by law, the Committee may delegate its authority as
identified herein.

     3.3  DECISIONS BINDING.  All determinations and decisions made by the
Committee pursuant to the provisions of the Plan and all related orders and
resolutions of the Board shall be final, conclusive and binding on all persons,
including the Company, its stockholders, Employees, Participants and their
estates and beneficiaries.

                                  ARTICLE FOUR

                 SHARES SUBJECT TO THE PLAN AND MAXIMUM AWARDS

     4.1  NUMBER OF SHARES AVAILABLE FOR GRANTS.  Subject to adjustment as
provided in Section 4.3 herein, the number of Shares hereby reserved for
issuance under the Plan shall be Three Million (3,000,000). The Committee shall
determine the appropriate methodology for calculating the number of Shares
issued pursuant to the Plan.

     Unless and until the Committee determines that an Award to a Named
Executive Officer shall not be designed to comply with the Performance-Based
Exception, the following rules shall apply to grants of such Awards under the
Plan:

          (a) The maximum aggregate number of Shares (including Options, SARs,
     Restricted Stock, Performance Units and Performance Shares paid out in
     Shares, or Other Incentive Awards paid out in Shares) that may be granted
     or that may vest, as applicable, in any fiscal year pursuant to any Award
     held by any Named Executive Officer shall be Two Hundred Thousand
     (200,000). For this purpose, to the extent that any Option is canceled (as
     described in Section 1.162-27 (e) (2) (vi) (B) of the final regulations
     under Section 162(m) of the Code, such canceled Option shall continue to be
     counted against the maximum number of Shares for which Options may be
     granted to a Named Executive Officer under the Plan; and

                                       4
<PAGE>

          (b) The maximum aggregate cash payout (including Performance Units and
     Performance Shares paid out in cash, or Other Incentive Awards paid out in
     cash) with respect to Awards granted in any fiscal year which may be made
     to any Named Executive Officer shall be One Hundred Twenty-Five Thousand
     Dollars ($125,000).

     4.2  LAPSED AWARDS.  If any Award granted under this Plan is canceled,
terminates, expires, or lapses for any reason (with the exception of the
termination of a Tandem SAR upon exercise of the related Option, or the
termination of a related Option upon exercise of the corresponding Tandem SAR),
any Shares subject to such Award again shall be available for the grant of an
Award under the Plan.

     4.3  ADJUSTMENTS IN AUTHORIZED SHARES.  In the event of any change in
corporate capitalization, such as a stock split, or a corporate transaction,
such as any merger, consolidation, separation, including a spin-off, or other
distribution of stock or property of the Company, any reorganization (whether or
not such reorganization comes within the definition of such term in Code Section
368), or any partial or complete liquidation of the Company, such adjustment
shall be made in the number and class of Shares available in the Share Pool and
in the number and class of and/or price of Shares subject to outstanding Awards
granted under the Plan, as may be determined to be appropriate and equitable by
the Committee, in its sole discretion, to prevent dilution or enlargement of
rights; provided, however, that the number of Shares subject to any Award shall
always be a whole number.

                                  ARTICLE FIVE

                         ELIGIBILITY AND PARTICIPATION

     5.1  ELIGIBILITY.  Persons eligible to participate in this Plan include (a)
all officers and key employees of the Company, as determined by the Committee,
including Employees who are members of the Board and Employees who reside in
countries other than the United States of America and (b) all Nonemployee
Directors.

     5.2  ACTUAL PARTICIPATION.  Subject to the provisions of the Plan, the
Committee may, from time to time, select from all eligible Employees and
Nonemployee Directors those to whom Awards shall be granted and shall determine
the nature and amount of each Award.

                                  ARTICLE SIX

                                 STOCK OPTIONS

     6.1  GRANT OF OPTIONS.  Subject to the terms and provisions of the Plan,
Options may be granted, either by the Committee or the Board, to one or more
Participants in such number, and upon such terms, and at any time and from time
to time as shall be determined by the Committee. The Committee or the Board
shall have the authority to grant Incentive Stock Options or to grant
Nonqualified Stock Options or to grant both types of Options. In the case of
Incentive Stock Options, the terms and conditions of such grants shall be
subject to, and comply with, such rules as may be prescribed by Section 422 of
the Code, as from time to time amended, and any regulations implementing such
statute, including, without limitation, the requirements of Code Section 422(d)
which limit the aggregate Fair Market Value of Shares (determined at the time
that such Option is granted) for which Incentive Stock Options are exercisable
for the first time to $100,000 per calendar year, and the requirement that
Incentive Stock Options may only be granted to Employees. Each provision of the
Plan and of each written Award Agreement relating to an Option designated as an
Incentive Stock Option shall be construed so that such Option qualifies as an
Incentive Stock Option, and any provision that cannot be so construed shall be
disregarded.

     6.2  AWARD AGREEMENT.  Each Option grant shall be evidenced by an Award
Agreement that shall specify the Option Price, the duration of the Option, the
number of Shares to which the Option pertains, and such other provisions as the
Committee shall determine. The Award Agreement also shall specify whether the
Option is intended to be an ISO or an NQSO.

                                       5
<PAGE>

     6.3  OPTION PRICE.  The Option Price for each grant of an Option under this
Plan shall be at least equal to one hundred percent (100%) of the Fair Market
Value of a Share on the date the Option is granted. Notwithstanding any
provision contained herein, in the case of an Incentive Stock Option, the
exercise price at the time such Incentive Stock Option is granted to any
Employee who, at the time of such grant, owns (within the meaning of Section
424(d) of the Code) more than ten percent of the voting power of all classes of
stock of the Company or a Subsidiary, shall not be less than 110% of the per
Share Fair Market Value on the date of grant.

     6.4  DURATION OF OPTIONS.  Each Option shall expire at such time as the
Committee shall determine at the time of grant; provided, however, that in the
case of an Incentive Stock Option, an Employee may not exercise such Incentive
Stock Option after the date which is ten years (five years in the case of a
Participant who owns more than ten percent of the voting power of the Company or
a Subsidiary) after the date on which such Incentive Stock Option is granted.

     6.5  EXERCISE OF OPTIONS.  Options granted under this Article 6 shall be
exercisable at such times and be subject to such restrictions and conditions as
the Committee shall in each instance approve, which need not be the same for
each grant or for each Participant.

     6.6  PAYMENT.  Options granted under this Article 6 shall be exercised by
the delivery of a written notice of exercise to the Company, setting forth the
number of Shares with respect to which the Option is to be exercised,
accompanied by full payment for the Shares.

     The Option Price upon exercise of any Option shall be payable to the
Company in full either: (a) in cash or its equivalent, or (b) by tendering
previously acquired Shares having an aggregate Fair Market Value at the time of
exercise equal to the total Option Price (provided that the Shares that are
tendered must have been held by the Participant for at least six (6) months
prior to their tender to satisfy the Option Price), or (c) by a combination of
(a) and (b).

     As soon as practicable after receipt of a written notification of exercise
and full payment, the Company shall deliver to the Participant, in the
Participant's name, Share certificates in an appropriate amount based upon the
number of Shares purchased under the Option(s).

     6.7  RESTRICTIONS ON SHARE TRANSFERABILITY.  The Committee may impose such
restrictions on any Shares acquired pursuant to the exercise of an Option
granted under this Article 6 as it may deem advisable, including, without
limitation, restrictions under applicable federal securities laws, under the
requirements of any stock exchange or market upon which such Shares are then
listed and/or traded, and under any blue sky or state securities laws applicable
to such Shares.

     6.8  TERMINATION OF EMPLOYMENT.  Each Option Award Agreement shall set
forth the extent to which the Participant shall have the right to exercise the
Option following termination of the Participant's employment with (or service
to) the Company and/or its Subsidiaries. Such provisions shall be determined in
the sole discretion of the Committee, shall be included in the Award Agreement
entered into with each Participant, need not be uniform among all Options issued
pursuant to the Plan, and may reflect distinctions based on the reasons for
termination of employment or service.

     6.9  NONTRANSFERABILITY OF OPTIONS.

     (a) INCENTIVE STOCK OPTIONS. No ISO granted under the Plan may be sold,
transferred, pledged, assigned, or otherwise alienated or hypothecated, other
than by will or by the laws of descent and distribution. Further, all ISOs
granted to a Participant under the Plan shall be exercisable during his or her
lifetime only by such Participant.

     (b) NON-QUALIFIED STOCK OPTIONS. Except as otherwise provided in a
Participant's Award Agreement, no NQSO granted under this Article 6 may be sold,
transferred, pledged, assigned, or otherwise alienated or hypothecated, other
than by will or by the laws of descent and distribution. Further, except as
otherwise provided in a Participant's Award Agreement, all NQSOs granted to a
Participant under this Article 6 shall be exercisable during his or her lifetime
only by such Participant.

                                       6
<PAGE>

                                 ARTICLE SEVEN

                           STOCK APPRECIATION RIGHTS

     7.1  GRANT OF SARs.  Subject to the terms and conditions of the Plan, SARs
may be granted to Participants at any time and from time to time as shall be
determined by the Committee. The Committee may grant Freestanding SARs, Tandem
SARs, or any combination of these forms of SAR.

     The Committee shall have complete discretion in determining the number of
SARs granted to each Participant (subject to Article 4 herein) and, consistent
with the provisions of the Plan, in determining the terms and conditions
pertaining to such SARs.

     Unless otherwise designated by the Committee at the time of grant, the
grant price of a Freestanding SAR shall equal the Fair Market Value of a Share
on the date of grant of the SAR. The grant price of Tandem SARs shall equal the
Option Price of the related Option.

     7.2  EXERCISE OF TANDEM SARs.  Tandem SARs may be exercised for all or part
of the Shares subject to the related Option upon the surrender of the right to
exercise the equivalent portion of the related Option. A Tandem SAR may be
exercised only with respect to the Shares for which its related Option is then
exercisable.

     Notwithstanding any other provision of this Plan to the contrary, with
respect to a Tandem SAR granted in connection with an ISO: (i) the Tandem SAR
will expire no later than the expiration of the underlying ISO; (ii) the value
of the payout with respect to the Tandem SAR may be for no more than one hundred
percent (100%) of the difference between the Option Price of the underlying ISO
and the Fair Market Value of the Shares subject to the underlying ISO at the
time the Tandem SAR is exercised; and (iii) the Tandem SAR may be exercised only
when the Fair Market Value of the Shares subject to the ISO exceeds the Option
Price of the ISO.

     7.3  EXERCISE OF FREESTANDING SARs.  Freestanding SARs may be exercised
upon whatever terms and conditions the Committee, in its sole discretion,
imposes upon them.

     7.4  SAR AGREEMENT.  Each SAR grant shall be evidenced by an Award
Agreement that shall specify the grant price, the term of the SAR, and such
other provisions as the Committee shall determine.

     7.5  TERM OF SARs.  The term of an SAR granted under the Plan shall be
determined by the Committee, in its sole discretion; provided, however, that
unless otherwise designated by the Committee, such term shall not exceed ten
(10) years.

     7.6  PAYMENT OF SAR AMOUNT.  Upon exercise of an SAR, a Participant shall
be entitled to receive payment from the Company in an amount determined by
multiplying:

          (a) The difference between the Fair Market Value of a Share on the
     date of exercise over the grant price; by

          (b) The number of Shares with respect to which the SAR is exercised.

     At the discretion of the Committee, the payment upon SAR exercise may be in
cash, in Shares of equivalent value, in Restricted Shares of equivalent value,
or in some combination thereof.

     7.7  TERMINATION OF EMPLOYMENT.  Each SAR Award Agreement shall set forth
the extent to which the Participant shall have the right to exercise the SAR
following termination of the Participant's employment with (or service to) the
Company and/or its Subsidiaries. Such provisions shall be determined in the sole
discretion of the Committee, shall be included in the Award Agreement entered
into with Participants, need not be uniform among all SARs issued pursuant to
the Plan, and may reflect distinctions based on the reasons for termination of
employment or service.

     7.8  NON-TRANSFERABILITY OF SARs.  Except as otherwise provided in a
Participant's Award Agreement, no SAR granted under the Plan may be sold,
transferred, pledged, assigned, or otherwise alienated or hypothecated, other
than by will or by the laws of descent and distribution. Further, except as

                                       7
<PAGE>

otherwise provided in a Participant's Award Agreement, all SARs granted to a
Participant under the Plan shall be exercisable during his or her lifetime only
by such Participant.

                                 ARTICLE EIGHT

                                RESTRICTED STOCK

     8.1  GRANT OF RESTRICTED STOCK.  Subject to the terms and provisions of the
Plan, the Committee, at any time and from time to time, may grant Shares of
Restricted Stock to Participants in such amounts as the Committee shall
determine.

     8.2  RESTRICTED STOCK AGREEMENT.  Each Restricted Stock grant shall be
evidenced by an Award Agreement that shall specify the Period(s) of Restriction,
the number of Shares of Restricted Stock granted, and such other provisions as
the Committee shall determine.

     8.3  TRANSFERABILITY.  Except as provided in this Article 8, the Shares of
Restricted Stock granted herein may not be sold, transferred, pledged, assigned,
or otherwise alienated or hypothecated until the end of the applicable Period of
Restriction established by the Committee and specified in the Restricted Stock
Award Agreement, or upon earlier satisfaction of any other conditions, as
specified by the Committee in its sole discretion and set forth in the
Restricted Stock Agreement. All rights with respect to the Restricted Stock
granted to a Participant under the Plan shall be available during his or her
lifetime only to such Participant.

     8.4  OTHER RESTRICTIONS.  Subject to Article 11 herein, the Committee may
impose such other conditions and/or restrictions on any Shares of Restricted
Stock granted pursuant to the Plan as it may deem advisable including, without
limitation, a requirement that Participants pay a stipulated purchase price for
each Share of Restricted Stock, a requirement that Participants own a certain
amount of Shares before vesting shall occur, restrictions based upon the
achievement of specific performance goals (Company-wide, divisional, and/or
individual), time-based restrictions on vesting following the attainment of the
performance goals, requirement and/or restrictions under applicable federal or
state securities laws.

     The Company shall retain the certificates representing Shares of Restricted
Stock in the Company's possession until such time as all conditions and/or
restrictions applicable to such Shares have been satisfied.

     Except as otherwise provided in this Article 8, Shares of Restricted Stock
covered by each Restricted Stock grant made under the Plan shall become freely
transferable by the Participant after the last day of the applicable Period of
Restriction.

     8.5  VOTING RIGHTS.  Unless otherwise designated by the Committee at the
time of grant, Participants holding Shares of Restricted Stock granted hereunder
may exercise full voting rights with respect to those Shares during the Period
of Restriction.

     8.6  DIVIDENDS AND OTHER DISTRIBUTIONS.  Unless otherwise designated by the
Committee at the time of grant, Participants holding Shares of Restricted Stock
granted hereunder may be credited with regular cash dividends paid with respect
to the underlying Shares while they are so held during the Period of
Restriction. The Committee may apply any restrictions to the dividends that the
Committee deems appropriate. Without limiting the generality of the preceding
sentence, if the grant of vesting of Restricted Stock granted to a Named
Executive Officer is designed to comply with the requirements of the
Performance-Based Exception, the Committee may apply any restrictions it deems
appropriate to the payment of dividends declared with respect to such Restricted
Stock, such that the dividends and/or the Restricted Stock maintain eligibility
for the Performance-Based Exception.

     8.7  TERMINATION OF EMPLOYMENT.  Each Restricted Stock Award Agreement
shall set forth the extent to which the Participant shall have the right to
receive unvested Restricted Shares following termination of the Participant's
employment with (or service to) the Company and/or its Subsidiaries. Such
provisions shall be determined in the sole discretion of the Committee, shall be
included in the Award Agreement entered into with each Participant, need not be
uniform among all Shares of Restricted Stock issued pursuant to the Plan, and
may reflect distinctions based on the reasons for termination of employment

                                       8
<PAGE>

or service; provided, however, that, except in the cases of terminations
connected with a Change in Control, terminations by reason of death or
Disability, and except for Restricted Shares paid to Participants upon SAR
exercise, the vesting of Shares of Restricted Stock which qualify for the
Performance-Based Exception and which are held by Named Executive Officers shall
not occur prior to the time they otherwise would have, but for the employment
termination.

                                  ARTICLE NINE

                    PERFORMANCE UNITS AND PERFORMANCE SHARES

     9.1  GRANT OF PERFORMANCE UNITS AND PERFORMANCE SHARES.  Subject to the
terms of the Plan, Performance Units and/or Performance Shares may be granted to
Participants in such amounts and upon such terms, and at any time and from time
to time, as shall be determined by the Committee.

     9.2  VALUE OF PERFORMANCE UNITS/SHARES.  Each Performance Unit shall have
an initial value that is established by the Committee at the time of grant. Each
Performance Share shall have an initial value equal to the Fair Market Value of
a Share on the date of grant. The Committee shall set performance goals in its
discretion which, depending on the extent to which they are met, will determine
the number and/or value of Performance Units/Shares that will be paid out to the
Participant. For purposes of this Article 9, the time period during which the
performance goals must be met shall be called a "Performance Period."

     9.3  EARNING OF PERFORMANCE UNITS/SHARES.  Subject to the terms of this
Plan, after the applicable Performance Period has ended, the holder of
Performance Units/Shares shall be entitled to receive payout on the number and
value of Performance Units/Shares earned by the Participant over the Performance
Period, to be determined as a function of the extent to which the corresponding
performance goals have been achieved, as established by the Committee.

     9.4  FORM AND TIMING OF PAYMENT OF PERFORMANCE UNITS/SHARES.  Subject to
the terms of this Plan, the Committee, in its sole discretion, may pay earned
Performance Units/Shares in the form of cash or in Shares (or in a combination
thereof) which have an aggregate Fair Market Value equal to the value of the
earned Performance Units/Shares at the close of the applicable Performance
Period. Such Shares may be granted subject to any restrictions deemed
appropriate by the Committee.

     At the discretion of the Committee, Participants may be entitled to receive
any dividends declared with respect to Shares which have been earned in
connection with grants of Performance Units and/or Performance Shares which have
been earned, but not yet distributed to Participants (such dividends shall be
subject to the same accrual, forfeiture, and payout restrictions as apply to
dividends earned with respect to Shares of Restricted Stock, as set forth in
Section 8.6 herein). In addition, Participants may, at the discretion of the
Committee, be entitled to exercise their voting rights with respect to such
Shares.

     9.5  TERMINATION OF EMPLOYMENT DUE TO DEATH, DISABILITY OR RETIREMENT.
Unless otherwise designated by the Committee, and set forth in the Participant's
Award Agreement, in the event the employment (or service) of a Participant is
terminated due to death, Disability or Retirement during a Performance Period,
the Participant shall receive a prorated payout of the Performance Units/Shares.
The prorated payout shall be determined by the Committee, shall be based upon
the length of time that the Participant held the Performance Units/Shares during
the Performance Period and shall further be adjusted based on the achievement of
the preestablished performance goals.

     Payment of earned Performance Units/Shares shall be made at a time
specified by the Committee in its sole discretion and set forth in the
Participant's Award Agreement. Notwithstanding the foregoing, with respect to
Named Executive Officers who retire during a Performance Period, payments shall
be made at the same time as payments are made to Participants who did not
terminate employment during the applicable Performance Period.

     9.6  TERMINATION OF EMPLOYMENT FOR OTHER REASONS.  In the event that a
Participant's employment (or service) terminates for any reason other than those
reasons set forth in Section 9.5
                                       9
<PAGE>

herein, all Performance Units/Shares shall be forfeited by the Participant to
the Company unless determined otherwise by the Committee, as set forth in the
Participant's Award Agreement.

     9.7  NONTRANSFERABILITY.  Except as otherwise provided in a Participant's
Award Agreement, Performance Units/Shares may not be sold, transferred, pledged,
assigned or otherwise alienated or hypothecated, other than by will or by the
laws of descent and distribution. Further, except as otherwise provided in a
Participant's Award Agreement, a Participant's rights under the Plan shall be
exercisable during the Participant's lifetime only by the Participant or the
Participant's legal representative.

                                  ARTICLE TEN

                             OTHER INCENTIVE AWARDS

     10.1  GRANT OF OTHER INCENTIVE AWARDS.  Subject to the terms and provisions
of the Plan, Other Incentive Awards may be granted to Participants in such
amount, upon such terms, and at any time and from time to time as shall be
determined by the Committee.

     10.2  OTHER INCENTIVE AWARD AGREEMENT.  Each Other Incentive Award grant
shall be evidenced by an Award Agreement that shall specify the amount of the
Other Incentive Award granted, the terms and conditions applicable to such
grant, the applicable Performance Period and performance goals, and such other
provisions as the Committee shall determine, subject to the terms and provisions
of the Plan.

     10.3  NONTRANSFERABILITY.  Except as otherwise provided in a Participant's
Award Agreement, Other Incentive Awards may not be sold, transferred, pledged,
assigned or otherwise alienated or hypothecated, other than by will or by the
laws of descent and distribution.

     10.4  FORM AND TIMING OF PAYMENT OF OTHER INCENTIVE AWARDS.  Payment of
Other Incentive Awards shall be made at such times and in such form, in cash, in
Shares, or in Restricted Shares (or a combination thereof), as established by
the Committee subject to the terms of the Plan. Such Shares may be granted
subject to any restrictions deemed appropriate by the Committee. Without
limiting the generality of the foregoing, annual incentive awards may be paid in
the form of Shares and/or Other Incentive Awards (which may or may not be
subject to restrictions, at the discretion of the Committee).

                                 ARTICLE ELEVEN

                              PERFORMANCE MEASURES

     Unless and until the Committee proposes for shareholder vote and
shareholders approve a change in the general performance measures set forth in
this Article 11, the attainment of which may determine the degree of payout
and/or vesting with respect to Awards to Named Executive Officers which are
designed to qualify for the Performance-Based Exception, the performance
measure(s) to be used for purposes of such grants shall be chosen from among the
following alternatives, as reported on the Company's annual 10-K report:

          (a) Return on Assets ("ROA") which equals net income divided by total
     assets.

          (b) Return on Sales ("ROS") which equals net income divided by net
     sales.

          (c) Return on Equity ("ROE") which equals net income divided by total
     equity.

          (d) Cash Flow Return on Investment ("CFROI") which equals net cash
     flows divided by owners' equity.

          (e) Operating Income.

          (f) Earnings Before Income Taxes ("EBIT") which equals net income plus
     taxes.

          (g) Net Earnings which equals net earnings as reported.

          (h) Earnings Per Share.

                                       10
<PAGE>

     The Committee shall have the discretion to adjust the determinations of the
degree of attainment of the preestablished performance goals; provided, however,
that Awards which are designed to qualify for the Performance-Based Exception,
and which are held by Named Executive Officers, may not be adjusted upward (the
Committee shall retain the discretion to adjust such Awards downward).

     In the event that applicable tax and/or securities laws change to permit
Committee discretion to alter the governing performance measures without
obtaining shareholder approval of such changes, the Committee shall have sole
discretion to make such changes without obtaining shareholder approval. In
addition, in the event that the Committee may make such grants for the
Performance-Based Exception, the Committee may make such grants without
satisfying the requirements of Code Section 162(m) and, thus, which use
performance measures other than those specified above. To the extent that the
Committee determines that it is advisable to grant Awards in compliance with the
Performance-Based Exception, the Committee must certify, in writing, prior to
the payment of any compensation under the Award, that the performance goals and
any other material terms were in fact satisfied.

                                 ARTICLE TWELVE

                            BENEFICIARY DESIGNATION

     Each Participant under the Plan may, from time to time, name any
beneficiary or beneficiaries (who may be named contingently or successively) to
whom any benefit under the Plan is to be paid in case of his or her death before
he or she receives any or all of such benefit. Each such designation shall
revoke all prior designations by the same Participant, shall be in a form
prescribed the Company, and will be effective only when filed by the Participant
in writing with the Company during the Participant's lifetime. In the absence of
any such designation, benefits remaining unpaid at the Participant's death shall
be paid to the Participant's estate.

                                ARTICLE THIRTEEN

                                   DEFERRALS

     The Committee may permit a Participant to defer such Participant's receipt
of the payment of cash or the delivery of Shares that would otherwise be due to
such Participant by virtue of the exercise of an Option or SAR, the lapse or
waiver of restrictions with respect to Restricted Stock, or the satisfaction of
any requirements or goals with respect to Performance Units/Shares or Other
Incentive Awards. If any such deferral election is required or permitted, the
Committee shall, in its sole discretion, establish rules and procedures for such
payment deferrals. Any such deferral shall be made in a manner consistent with
the requirements of Section 409A of the Code.

                                ARTICLE FOURTEEN

                 RIGHTS OF EMPLOYEES AND NONEMPLOYEE DIRECTORS

     14.1  EMPLOYMENT.  Nothing in the Plan shall interfere with or limit in any
way the right of the Company to terminate any Participant's employment at any
time, nor confer upon any Participant any right to continue in the employ of the
Company.

     14.2  PARTICIPATION.  No Employee or Nonemployee Director shall have the
right to be selected to receive an Award under this Plan or, having been so
selected, to be selected to receive a future Award.

                                       11
<PAGE>

                                ARTICLE FIFTEEN

                               CHANGE IN CONTROL

     15.1  TREATMENT OF OUTSTANDING AWARDS.  Upon the occurrence of a Change in
Control, unless otherwise specifically prohibited under applicable laws, or by
the rules and regulations of any governing governmental agencies or national
securities exchanges:

          (a) Any and all Options and SARs granted hereunder shall become
     immediately exercisable, and shall remain exercisable throughout their
     entire term, and any cash or property received upon exercise of any Option
     or SAR shall be free from further restriction;

          (b) Any restriction periods and restrictions imposed on Restricted
     Shares shall lapse; and

          (c) Unless otherwise specified in Participant's Award Agreement at
     time of grant, the target payout opportunities attainable under all
     outstanding Awards of Performance Units and Performance Shares and Other
     Incentive Awards shall be deemed to have been fully earned for the entire
     Performance period(s) as of the effective date of the Change in Control.
     The vesting of all such Awards shall be accelerated as of the effective
     date of the Change in Control and, in full settlement of such Awards, there
     shall be paid out to Participants (in Shares for Awards normally paid in
     Shares and in cash for Awards normally paid in cash) within thirty (30)
     days following the effective date of the Change in Control a pro rata
     portion of all targeted Award opportunities associated with such
     outstanding Awards, based on the number of complete and partial calendar
     months within the Performance Period which had elapsed as of such effective
     date.

     15.2  TERMINATION, AMENDMENT AND MODIFICATIONS OF CHANGE IN CONTROL
PROVISIONS.  Notwithstanding any other provision of this Plan or any Award
Agreement provision, the provisions of this Article 15 may not be terminated,
amended or modified to affect adversely any Award theretofore granted under the
Plan without the prior written consent of the Participant with respect to said
Participant's outstanding Awards.

                                ARTICLE SIXTEEN

                    AMENDMENT, MODIFICATION AND TERMINATION

     16.1  AMENDMENT, MODIFICATION AND TERMINATION.  The Board may at any time
and from time to time alter, amend, suspend or terminate the Plan in whole or in
part.

     16.2  AWARDS PREVIOUSLY GRANTED.  No termination, amendment or modification
of the Plan shall adversely affect in any material way any Award previously
granted under the Plan, without the written consent of the Participant holding
such Award.

     16.3  COMPLIANCE WITH CODE SECTION 162(m).  At all times when Code Section
162(m) is applicable, all Awards granted under this Plan to Named Executive
Officers shall comply with the requirements of Code Section 162(m); provided,
however, that in the event the Committee determines that such compliance is not
desired with respect to any Award or Awards available for grant under the Plan,
then compliance with Code Section 162(m) will not be required. In addition, in
the event that changes are made to Code Section 162(m) to permit greater
flexibility with respect to any Award or Awards available under the Plan, the
Committee may, subject to this Article 16, make any adjustments it deems
appropriate.

                               ARTICLE SEVENTEEN

                                  WITHHOLDING

     17.1  TAX WITHHOLDING.  The Company shall have the power and the right to
deduct or withhold, or require a Participant to remit to the Company, an amount
sufficient to satisfy federal, state, and local taxes, domestic or foreign,
required by law or regulation to be withheld with respect to any taxable event
arising as a result of this Plan.
                                       12
<PAGE>

     17.2  SHARE WITHHOLDING.  With respect to withholding required upon the
exercise of Options or SARs, upon the lapse of restrictions on Restricted Stock,
or upon any other taxable event arising as a result of Awards granted hereunder,
Participants may elect, subject to the approval of the Committee, to satisfy the
withholding requirement, in whole or in part, by having the Company withhold
Shares having a Fair Market Value on the date the tax is to be determined equal
to the minimum statutory total tax which could be imposed on the transaction.
All such elections shall be irrevocable, made in writing, signed by the
Participant, and shall be subject to any restrictions or limitations that the
Committee, in its sole discretion, deems appropriate.

                                ARTICLE EIGHTEEN

                                INDEMNIFICATION

     Each person who is or shall have been a member of the Committee, or of the
Board, shall be indemnified by the Company against and from any loss, cost,
liability or expense that may be imposed upon or reasonably incurred by him or
her in connection with or resulting from any claim, action, suit or proceeding
to which he or she may be a party or in which he or she may be involved by
reason of any action taken or failure to act under the Plan. Such person shall
be indemnified by the Company for all amounts paid by him or her in settlement
thereof, with the Company's approval, or paid by him or her in satisfaction of
any judgment in any such action, suit or proceeding against him or her, provided
he or she shall give the Company an opportunity, at its own expense, to handle
and defend the same before he or she undertakes to handle and defend it on his
or her own behalf. The foregoing right of indemnification shall not be exclusive
of any other rights of indemnification to which such persons may be entitled
under the Company's Articles of Incorporation or Bylaws, as a matter of law, or
otherwise, or any power that the Company may have to indemnify them or hold them
harmless.

                                ARTICLE NINETEEN

                                   SUCCESSORS

     All obligations of the Company under the Plan with respect to Awards
granted hereunder shall be binding on any successor to the Company, whether the
existence of such successor is the result of a direct or indirect purchase,
merger, consolidation or otherwise, of all or substantially all of the business
and/or assets of the Company.

                                 ARTICLE TWENTY

                               LEGAL CONSTRUCTION

     20.1  GENDER AND NUMBER.  Except where otherwise indicated by the context,
any masculine term used herein shall also include the feminine, the plural shall
include the singular, and the singular shall include the plural.

     20.2  SEVERABILITY.  In the event any provision of the Plan shall be held
illegal or invalid for any reason, the illegality or invalidity shall not affect
the remaining parts of the Plan, and the Plan shall be construed and enforced as
if the illegal or invalid provision had not been included.

     20.3  REQUIREMENTS OF LAW.  The granting of Awards and the issuance of
Shares under the Plan shall be subject to all applicable laws, rules and
regulations, and to such approvals by any governmental agencies or national
securities exchanges as may be required.

     20.4  GOVERNING LAW.  To the extent not preempted by federal law, the Plan,
and all agreements hereunder, shall be construed in accordance with and governed
by the laws of the State of Delaware, without giving effect to the conflict of
laws principles thereof.

                                       13