# Exhibit 10.1 IONICS,
INCORPORATED

# 1997 STOCK INCENTIVE
PLAN                                         (as amended through March 27, 2003)

|1. |  | Purpose.
 The purpose of this Plan is to enable officers and other key employees of, and
consultants to, Ionics, Incorporated (the "Company") and any present or future parent or
subsidiary of the Company (collectively, "Related Corporations") to (i) own shares of
Stock in the Company, (ii) participate in the shareholder value which has been created,
(iii) have a mutuality of interest with other shareholders and (iv) enable the Company to
attract, retain and motivate key employees and consultants of particular merit.  As used
herein, the terms "parent" and "subsidiary" mean "parent corporation" and "subsidiary
corporation," respectively, as those terms are defined in Section 424 of the Code.
|-- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2. |  | Definitions.
 For the purposes of the Plan, the following terms shall have the meanings set forth
below:
|-- |  | --------------------------------------------------------------------------------------------------------

| | (a) |  | Award
means the grant or sale pursuant to the Plan of any Stock Options and Long-Term
Performance          Awards.
| | --- |  | ------------------------------------------------------------------------------------------------------------------

| | (b) |  | Board
means the Board of Directors of the Company.
| | --- |  | --------------------------------------------------

| | (c) |  | Code
means the Internal Revenue Code of 1986, as amended from time to time, or any statute
successor          thereto, and any regulations issued from time to time thereunder.
| | --- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) |  | Company
means Ionics, Incorporated, a corporation organized under the laws of the Commonwealth of
         Massachusetts (or any successor corporation).
| | --- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e) |  | Disability
means "permanent and total disability" as defined under Section 22(e)(3) of the Code or
any          successor statute.
| | --- |  | ----------------------------------------------------------------------------------------------------------------------------------

| | (f) |  | Effective
Date means the date that the Plan is approved by both the Board of Directors of the
Company          and the stockholders of the Company, and if not approved on the same
day, the date of the last approval.
| | --- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (g) |  | Fair
Market Value means, as of any given date, the last reported sales price of the Stock as
reported in          The Wall Street Journal for such date, or if no such sale is
reported on the last preceding trade date          to the sales date, or if the Stock is
not publicly traded on or as of such date, the fair market value          of the Stock as
determined by the Committee in good faith based on the available facts and circumstances
         at the time.
| | --- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (i) |  | Incentive
Stock Option means any Stock Option intended to be and designated as an "Incentive Stock
         Option" within the meaning of Section 422 of the Code.
| | --- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (j) |  | Long-Term
Performance Award means an Award made pursuant to Section 7 below that is payable in cash
         and/or Stock in accordance with the terms of the grant, based on Company,
business unit and/or          individual performance over a period of at least one year.
| | --- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (k) |  | Non-Qualified
Stock Option means any Stock Option that is not an Incentive Stock Option.
| | --- |  | ----------------------------------------------------------------------------------------

| | (l) |  | Participant
means an employee or consultant to whom an Award is granted pursuant to the Plan.
| | --- |  | ---------------------------------------------------------------------------------------------

| | (m) |  | Plan
means the Ionics, Incorporated 1997 Stock Incentive Plan, as set forth herein and as it
may be          amended from time to time.
| | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------

| | (n) |  | Retirement
means a termination of employment, for reasons other than death, which satisfies the
         requirements for normal, early, late or disability retirement in accordance with
the Ionics,          Incorporated Retirement Plan or any successor plan.
| | --- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (o) |  | Stock
means the common stock, $1.00 par value per share, of the Company.
| | --- |  | ------------------------------------------------------------------------

| | (p) |  | Stock
Option or Option means any option to purchase shares of Stock granted pursuant to Section
6 below.
| | --- |  | --------------------------------------------------------------------------------------------------------

In addition the term Change in
Control shall have meaning set forth in Section 8.2.

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

| | (a) |  | Board
or Committee Administration.  The Plan shall be administered by the Board or, subject to
paragraph      3(d) (relating to compliance with Section 162(m) of the Code), by a
committee appointed by the Board (the      "Committee"), which shall initially be the
Compensation Committee of the Board.  Hereinafter, all references      in this Plan to
the "Committee" shall mean the Board if no Committee has been appointed.  Subject to
     ratification of the grant or authorization of each Award by the Board (if so
required by applicable state      law), and subject to the terms of the Plan, the
Committee shall have the authority to (i) determine to whom      (from among the class of
employees eligible under Section 5 to receive Incentive Stock Options) Incentive
     Stock Options shall be granted, and to whom (from among the class of individuals and
entities eligible under      Section 5 to receive Non-Qualified Stock Options and
Long-Term Performance Awards) Non-Qualified Stock      Options and Long-Term Performance
Awards may be granted, (ii) determine the time or times at which Awards      shall be
granted; (iii) determine the purchase price of shares subject to each Option, which
prices shall      not be less than the minimum price specified in Section 6.2(a); (iv)
determine whether each Option granted      shall be an Incentive Stock Option or a
Non-Qualified Stock Option; (v) determine (subject to Sections      6.2(b) and 6.2(c))
the time or times when each Option shall become exercisable and the duration of the
     exercise period; (vi) extend the period during which outstanding Options may be
exercised; (vii) determine      whether restrictions such as repurchase options are to be
imposed on shares subject to Awards and the nature      of such restrictions, if any; and
(viii) interpret the Plan and prescribe and rescind rules and regulations      relating
to it.  If the Committee determines to issue a Non-Qualified Stock Option, it shall take
whatever      actions it deems necessary, under Section 422 of the Code and the
regulations promulgated thereunder, to      ensure that such Non-Qualified Stock Option
is not treated as an Incentive Stock Option.  The interpretation      and construction by
the Committee of any provisions of the Plan or of any Award granted under it shall be
     final unless otherwise determined by the Board.  The Committee may from time to time
adopt such rules and      regulations for carrying out the Plan as it may deem advisable.
 No member of the Board or the Committee      shall be liable for any action or
determination made in good faith with respect to the Plan or any Award      granted under
it.
| | --- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) |  | Committee
Actions.  The Committee may select one of its members as its chairman, and shall hold
meetings      at such time and places as it may determine.  A majority of the Committee
shall constitute a quorum and acts      of a majority of the members of the Committee at
a meeting at which a quorum is present, or acts reduced to      or approved in writing by
all the members of the Committee (if consistent with applicable state law), shall      be
the valid acts of the Committee.  From time to time the Board may increase the size of
the Committee and      appoint additional members thereof, remove members (with or
without cause) and appoint new members in      substitution therefor, fill vacancies
however caused, or remove all members of the Committee and thereafter      directly
administer the Plan.
| | --- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) |  | Grant
of Awards to Board Members.  Awards may be granted to members of the Board who are
otherwise      eligible to receive Awards under the Plan.  All grants of Awards to
members of the Board shall in all      respects be made in accordance with the provisions
of this Plan applicable to other eligible persons.      Members of the Board who either
(i) are eligible to receive grants of Awards pursuant to the Plan or (ii)      have been
granted Awards may vote on any matters affecting the administration of the Plan or the
grant of      any Awards pursuant to the Plan, except that no such member shall act upon
the granting to himself or      herself of Awards, but any such member may be counted in
determining the existence of a quorum at any      meeting of the Board during which
action is taken with respect to the granting to such member of Awards.
| | --- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) |  | Performance-Based
Compensation.  The Board, in its discretion, may take such action as may be necessary
     to ensure that Stock Options granted under the Plan qualify as "qualified
performance-based compensation"      within the meaning of Section 162(m) of the Code and
applicable regulations promulgated thereunder      ("Performance-Based Compensation").
 Such action may include, in the Board's discretion, some or all of the      following:
(i) if the Board determines that Stock Options granted under the Plan generally shall
constitute      Performance-Based Compensation, the Plan shall be administered, to the
extent required for such Stock      Options to constitute Performance-Based Compensation,
by a Committee consisting solely of two or more      "outside directors" (as defined in
applicable regulations promulgated under Section 162(m) of the Code); and      (ii) Stock
Options and Stock Grants granted under the Plan may be subject to such other terms and
conditions      as are necessary for compensation recognized in connection with the
exercise or disposition of such Stock      Option or the disposition of Stock acquired
pursuant to such Stock Option to constitute Performance-Based      Compensation.
| | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4. |  | Shares
of Stock Subject to the Plan.
|-- |  | ------------------------------------

| | (a) |  | Stock.
 The Stock subject to Awards shall be authorized but unissued shares of Stock or shares
of Stock      reacquired by the Company in any manner.  Subject to adjustment as provided
in subsection (c) of this      Section 4, the aggregate number of shares of Stock that
may be issued pursuant to the Plan shall be (i)      1,550,000* (which number includes
the aggregate number of shares with respect to which no options have been      granted
under the 1979 Stock Option Plan on the Effective Date), plus (ii) such number of shares
as to which      options granted under the 1979 Stock Option Plan terminate or expire
without being fully exercised, plus      (iii) effective as of January 1, 1998 and each
of the three successive years thereafter, a number of shares      of Stock equal to two
percent (2%) of the total number of shares of Stock issued and outstanding as of the
     close of business on December 31 of the preceding year.  Subject to adjustment as
provided in subsection (c)      of this Section 4, no more than an aggregate of 750,000
shares of
| | --- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Stock
may be issued pursuant to the exercise of Incentive Stock Options granted under the Plan
(including      shares issued pursuant to the exercise of Incentive Stock Options granted
under the Plan that are the      subject of disqualifying dispositions within the meaning
of Sections 421, 422 and 424 of the Code and the      regulations thereunder); and no
more than an aggregate of 150,000 shares of Stock may be issued in      connection with
Long-Term Performance Awards granted under this Plan.  If any Award granted under the
Plan      shall expire or terminate for any reason without having been exercised in full
or shall cease for any reason      to be exercisable in whole or in part, the unpurchased
shares subject to such Award shall again be available      for grants of Awards under the
Plan.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | No
employee of the Company or any Related Corporation may be granted Options (or any other
Award) to      acquire, in the aggregate, more than 200,000 shares of Stock during any
12-month period under the Plan.  If      any Option granted under the Plan shall expire
or terminate for any reason without having been exercised in      full or shall cease for
any reason to be exercisable in whole or in part, the unpurchased shares subject to
     such Option shall be included in the determination of the aggregate number of shares
of Stock deemed to have      been granted to such employee under the Plan.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) |  | Computation
of Available Shares.  For the purpose of computing the total number of shares of Stock
     available for Plan purposes at any time during which the Plan is in effect, there
shall be debited against      the total number of shares determined to be available
pursuant to paragraphs (a) and (c) of this Section 4      the maximum number of shares of
Stock subject to issuance upon exercise of Options or upon settlement of      other
Awards theretofore made under the Plan.  In addition, however, shares related to the
unexercised or      undistributed portion of any terminated, expired or forfeited Award
for which no material benefit was      received by a Participant (e.g. dividends, but not
including voting rights), or to the portion of any Award      settled in cash, shall be
recredited to the number remaining upon such termination, expiration or forfeiture
     and thereafter again be available for distribution in connection with future Awards
under the Plan.
| | --- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) |  | Other
Adjustment.  In the event of any merger, reorganization, consolidation, recapitalization,
Stock       dividend, or other change in corporate structure affecting the Stock, such
substitution or adjustment shall       be made in the aggregate number of shares reserved
for issuance under the Plan, and in the number and       option price of shares subject
to outstanding Options and other Stock-based Awards granted under the Plan,       as may
be determined to be appropriate by the Committee in its sole discretion provided that the
number of       shares subject to any Award shall always be a whole number.
| | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5. |  | Eligibility.
 Incentive Stock Options may be granted only to employees of the Company and any Related
     Corporation.  Officers and other key employees of or consultants to the Company, who
are responsible for or      contribute to, as determined by the Committee in its sole
discretion, the management, growth and/or      profitability of the business of the
Company and/or any Related Corporation are eligible for Awards under      the Plan.
|-- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6. |  | Stock
Options.
|-- |  | --------------

| | 6.1 |  | Provision
for Grant.  Stock Options may be granted alone, in addition to or in tandem with other
Awards      under the Plan.  Any Stock Option granted under the Plan shall be in such
form as the Committee may from      time to time approve.  The Committee shall have the
authority to grant any optionee who is an employee of      the Company, or of any Related
Corporation, Incentive Stock Options, Non-Qualified Stock Options, or both      types of
Stock Options.  To the extent that any Stock Option does not qualify as an Incentive
Stock Option,      it shall constitute a      separate Non-Qualified Stock Option.  In
the case of any other person eligible for an Award under the Plan,      any Stock Option
granted under the Plan shall be a Non-Qualified Stock Option.
| | --- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Anything
in the Plan to the contrary notwithstanding, no term of this Plan relating to Incentive
Stock      Options shall be interpreted, amended or altered, nor shall any discretion or
authority granted under the      Plan be so exercised, so as to disqualify the Plan under
Section 422 of the Code, or, without the consent of      the optionee(s) affected, to
disqualify any Incentive Stock Option under such Section 422.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 6.2 |  | Terms
and Conditions.  Options granted under the Plan shall be subject to the following terms
and      conditions and shall contain such additional terms and conditions, not
inconsistent with the terms of the      Plan, as the Committee shall deem appropriate:
| | --- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (a) |  | Option
Price.  The option price per share of Stock purchasable under a Stock Option shall be
determined          by the Committee at the time of grant but shall be not less than 100%
of the Fair Market Value of the          Stock at the time of grant.  However, any
Incentive Stock Option granted to any optionee who, at the          time the option is
granted, owns more than 10% of the voting power of all classes of stock of the
         Company or of a parent or subsidiary corporation (in each case as defined in
Section 424 of the Code)          shall have an exercise price no less than 110% of Fair
Market Value per share on date of the grant.
| |  | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (b) |  | Option
Term.  The term of each Stock Option shall be fixed by the Committee, but no Stock Option
shall          be exercisable more than ten years after the date on which the Option is
granted.  However, any          Incentive Stock Option granted to any optionee who, at
the time the Option is granted, owns more than          10% of the voting power of all
classes of stock of the Company or of a parent or subsidiary corporation          (in
each case as defined in Section 424 of the Code) may not have a term of more than five
years.  No          Stock Option may be exercised by any person after expiration of the
term of the Option.
| |  | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (c) |  | Exercisability.
 Stock Options shall be exercisable at such time or times and subject to such terms and
         conditions as shall be determined by the Committee at or after grant, provided,
however, that, except as          provided in Sections 6.2(f), 6.2(g) and 8, unless
otherwise determined by the Committee at or after          grant, no Stock Option shall
be exercisable during the six months following the date of the granting of          the
Option.  If the Committee provides, in its discretion, that any Stock Option is
exercisable only in          installments, the Committee may waive such installment
exercise provisions at any time at or after grant          in whole or in part, based on
such factors as the Committee shall determine, in its sole discretion.
| |  | --- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (d) |  | Method
of Exercise.  Subject to whatever installment exercise provisions apply pursuant to
Section          6.2(c), Stock Options may be exercised in whole or in part at any time
and from time to time during the          option period, by giving written notice of
exercise to the Company specifying the number of shares to be          purchased.  Such
notice shall be accompanied by payment in full of the purchase price, either by
         certified or bank check, or such other instrument as the Committee may accept.
 As determined by the          Committee, in its sole discretion, payment in full or in
part may also be made in the form of          unrestricted Stock already owned by the
optionee (based, in each case, on the Fair Market Value of the          Stock on the date
the option is exercised, as determined by the Committee); provided, however, that, in
         the case of an Incentive Stock Option, the right to make a payment in the form
of already owned shares          may be authorized only at the time the Option is
granted.
| |  | --- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | If
 payment of the Option exercise price of a Stock Option is made in whole or in part in
the form          of unrestricted Stock already owned by the Participant, the Company may
require that the Stock has been          owned by the Participant for a specified minimum
period of time, for the purpose of avoiding any charge          to the Company's
earnings, limiting the pyramiding of Stock Option exercises, or such other purposes as
         the Company deems appropriate.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | No
 shares of Stock shall be issued until full payment therefor has been made.  An optionee
shall          generally have the rights to dividends or other rights of a shareholder
with respect to shares subject          to the Option when the optionee has given written
notice of exercise, has paid in full for such shares,          and, if requested, has
given the representation described in Section 11.1.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (e) |  | Transferability.
 No Stock Option shall be transferable by the optionee otherwise than by will or by the
         laws of descent and distribution, and all Stock Options shall be exercisable,
during the optionee's          lifetime, only by the optionee, provided, however, the
Committee may grant Non-Qualified Stock Options          that are transferable, without
payment of consideration, to immediate family members of the optionee or          to
trusts for such family members, or to partnerships in which such immediate family members
are the          only parties, subject to such limits as the Committee may establish, and
the transferee shall remain          subject to all of the terms and conditions
applicable to such Non-Qualified Stock Options prior to such          transfer.
| |  | --- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (f) |  | Termination
by Reason of Death.  If an optionee's employment by or association with the Company  or
any          Related Corporation terminates by reason of death, any Stock Option held by
such optionee may thereafter          be exercised, to the extent then exercisable at the
time of death, or on such accelerated basis as the          Committee may determine at or
after grant, by the legal representative of the estate or by the legatee          of the
optionee under the will of the optionee, for a period of 90 days (or such shorter period
as the          Committee may specify at grant) from the date of such death or until the
expiration of the stated term          of such Stock Option, whichever period is the
shorter.
| |  | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (g) |  | Termination
by Reason of Disability or Retirement.  If an optionee's employment by or association
with          the Company or any Related Corporation terminates by reason of Disability
or Retirement, any Stock          Option held by such optionee may thereafter be
exercised by the optionee, to the extent it was          exercisable at the time of
termination, or on such accelerated basis as the Committee may determine at          or
after grant, for a period of 90 days (or such shorter period as the Committee may specify
at grant)          from the date of such termination of employment or until the
expiration of the stated term of such Stock          Option, whichever period is the
shorter; provided, however, that, if the optionee dies within such          90-day period
(or such shorter period as the Committee shall specify at grant), any unexercised Stock
         Option held by such optionee shall thereafter be exercisable to the extent to
which it was exercisable          at the time of death for a period of 90 days from the
date of such death or until the expiration of the          stated term of such Stock
Option, whichever period is the shorter.
| |  | --- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (h) |  | Other
Termination.  Unless otherwise determined by the Committee at grant, if an optionee's
employment          by or association with the Company or any Related Corporation
terminates for any reason other than          death, Disability or Retirement, the Stock
Option shall thereupon terminate, except that in the          Committee's sole
discretion, based upon such factors as the Committee may deem appropriate, the
         Committee may specify that such Stock Option may be exercised, to the extent
exercisable at termination,          or on such accelerated basis as the Committee may
determine at or after grant, for a period of 90 days          (or such shorter period as
the Committee shall specify at grant) from the date of such termination or          until
the expiration of the stated term of such Stock Option, whichever period is shorter.
| |  | --- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (i) |  | Extension
of Exercisability Period.  The Committee or Board of Directors pursuant to the authority
         granted in Section 3(a) may in its discretion grant Stock Options which provide
for longer periods of          exercisability following the termination of an optionee's
employment by or association with the Company          or any Related Company than is
provided in Subsections 6.2(f), 6.2(g), and 6.2(h), provided that any          extended
exercisability period shall not extend beyond the expiration of the stated term of the
Stock          Option.  Notwithstanding Sections 6.2(f), 6.2(g) and 6.2(h), the Committee
or the Board of Directors may          also in its discretion amend outstanding Stock
Options to extend the period during which they remain          exercisable, provided that
any extended exercisability period shall not extend beyond the expiration of          the
stated term of the Stock Option.
| |  | --- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (j) |  | Incentive
Stock Option Limitations.  To the extent required for "incentive stock option"
         status under Section 422 of the Code, the aggregate Fair Market Value
(determined as of the time of          grant) of the Stock with respect to which
Incentive Stock Options granted are exercisable for the first          time by the
optionee during any calendar year under the Plan and/or any other stock option plan of
the          Company and any parent or subsidiary corporation (within the meaning of
Section 424 of the Code) shall          not exceed $100,000.  The Company intends to
designate any Options granted in excess of the $100,000          limitation as
Non-Qualified Stock Options, and the Company shall issue certificates to the optionee
with          respect to the Options that are Non-Qualified Options and Options that are
Incentive Stock Options.
| |  | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (k) |  | Cashless
Exercise; Satisfaction of Tax Withholdings.  To the extent permitted under applicable
         laws and regulations, at the request of a Participant, the Company agrees to
cooperate in a "cashless          exercise" of an Option.  The cashless exercise shall be
effected by the Participant delivering to a          registered securities broker
acceptable to the Company instructions to sell a sufficient number of          shares of
Stock for which such Option is then exercisable to cover the costs and expenses
associated          with such exercise and sale.  Under any Option, the Committee may
permit a Participant to pay any          applicable withholding taxes by delivering a
sufficient number of previously owned shares of Common          Stock to the Company to
satisfy such taxes.
| |  | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7. |  | Long-Term
Performance Awards
|-- |  | ----------------------------

| | 7.1 |  | Provision
for Grant.  Long-Term Performance Awards may be awarded either alone or in addition to
other      Awards granted under the Plan.  The Committee shall determine the nature,
length and starting date of the      performance period (the "Performance Period") for
each Long-Term Performance Award, which subject to Section      8 below shall be a period
of at least one year, and shall determine the performance objectives to be used in
     valuing Long-Term Performance Awards and determining the extent to which such
Long-Term Performance Awards      have been earned.  Performance objectives may vary from
Participant to Participant and between groups of      Participants and shall be based
upon such Company, business unit and/or individual performance factors and      criteria
as the Committee may deem appropriate, including, but not limited to, earnings per share
or return      on equity.  Performance Periods may overlap and Participants may
participate simultaneously with respect to      Long-Term Performance Awards that are
subject to different Performance Periods and/or different performance      factors and
criteria.
| | --- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.2 |  | Periodical
Determination of Performance.  At the beginning of each Performance Period, the Committee
     shall determine for each Long-Term Performance Award subject to such Performance
Period the range of dollar      values or number of shares of Stock to be awarded to the
Participant at the end of the Performance Period if      and to the extent that the
relevant measure(s) of performance for such Long-Term Performance Award is (are)
     met.  Such dollar values or number of shares of Stock may be fixed or may vary in
accordance with such      performance and/or other criteria as may be specified by the
Committee, in its sole discretion.
| | --- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.3 |  | Adjustment
of Awards.  In the event of special or unusual events or circumstances affecting the
     application of one or more performance objectives to a Long-Term Performance Award,
the Committee may revise      the performance objectives and/or underlying factors and
criteria applicable to the Long-Term Performance      Awards affected, to the extent
deemed appropriate by the Committee, in its sole discretion, to avoid      unintended
windfalls or hardship.
| | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.4 |  | Termination
of Employment.  Subject to Section 8 below and unless otherwise provided in the
applicable      Award agreement(s), if a Participant terminates employment or other
association with the Company or any      Related Corporation during a Performance Period
because of death, Disability or Retirement, such Participant      shall be entitled to a
payment with respect to each outstanding Long-Term Performance Award at the end of
     the applicable Performance Period (i) based, to the extent relevant under the terms
of the award, upon the      Participant's performance for the portion of such Performance
Period ending on the date of termination and      the performance of the applicable
business unit(s) for the entire Performance Period, and (ii) prorated,      where deemed
appropriate by the Committee, for the portion of the Performance Period during which the
     Participant was employed by or associated with the Company and any Related
Corporation, all as determined by      the Committee, in its sole discretion.  However,
the Committee may provide for an earlier payment in      settlement of such award in such
amount and under such terms and conditions as the Committee deems      appropriate.
| | --- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Subject
to Section 8 below, if a Participant terminates employment by or association with the
Company      and any Related Corporation during a Performance Period for any other
reason, then such Participant shall      not be entitled to any payment with respect to
Long-Term Performance Awards subject to such Performance      Period, unless the
Committee shall otherwise determine, in its sole discretion.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.5 |  | Form
of Payment.  The earned portion of a Long-Term Performance Award may be paid currently or
on a      deferred basis with such interest or earnings equivalent as may be determined
by the Committee, in its sole      discretion.  Payment shall be made in the form of cash
or whole shares of Stock, either in a lump sum      payment or in annual installments
commencing as soon as practicable after the end of the relevant      Performance Period,
all as the Committee shall determine at or after grant.
| | --- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8. |  | Change
in Control Provisions.
|-- |  | -----------------------------

| | 8.1 |  | Consequences
of Event.  In the event of a Change in Control, in addition to the adjustment provided
for      in Section 4(c), the Committee may in its discretion determine whether, with
respect to all Stock Options      granted and Awards made before the Change in Control,
the following acceleration and valuation provisions      shall apply:
| | --- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (a) |  | Any
Stock Options awarded under the Plan not previously exercisable shall thereupon become
fully          exercisable.
| |  | --- |  | ----------------------------------------------------------------------------------------------------------------------

| |  | (b) |  | Any
outstanding Long-Term Performance Awards shall be paid out in cash within thirty days
following the          Change in Control based on prorated target results for the
Performance Periods in question.
| |  | --- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
case of any reorganization, merger or consolidation of the Company into or with another
company or in      the case of any sale or conveyance to another company or entity of the
property of the Company as a whole or      substantially as a whole, each Stock Option
shall be automatically converted into a stock option or other      award which covers
shares of stock or other securities equivalent in kind and value to the shares or other
     securities the optionee or holder would have held if the Stock Option or other Award
had been exercised or      received in full prior to such reorganization, merger,
consolidation, sale or conveyance and no disposition      thereof had subsequently been
made, and the option price under each Stock Option shall be proportionately      adjusted.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 8.2 |  | Change
in Control.  For purposes of this Plan, a "Change in Control" means the happening of any
of the      following:
| | --- |  | ----------------------------------------------------------------------------------------------------------------------

| |  | (a) |  | The
acquisition, other than from the Company, by any individual, entity or group (within the
meaning of          Section 12(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934,
as amended (the "Exchange Act")) of          beneficial ownership (within the meaning of
Rule 13d-3 promulgated under the Exchange Act) of 20% or          more of either (i) the
then outstanding shares of common stock of the Company (the "Outstanding Company
         Common Stock") or (ii) the combined voting power of the then outstanding voting
securities of the          Company entitled to vote generally in the election of
directors (the "Company Voting Securities");          provided, however, that any
acquisition by (x) any noncorporate shareholder of the Company as of the
         effective date of the initial registration of an offering of Stock under the
Securities Act of 1933, (y)          the Company or any of its subsidiaries, or any
employee benefit plan (or related trust) sponsored or          maintained by the Company
or any of its subsidiaries, or (z) any corporation with respect to which,
         following such acquisition, more than 60% of, respectively, the then outstanding
shares of common stock          of such corporation and combined voting power of the then
outstanding voting securities of such          corporation entitled to vote generally in
the election of directors is then beneficially owned, directly          or indirectly, by
all or substantially all of the individuals and entities who were the beneficial
         owners, respectively, of the Outstanding Company Common Stock and Company Voting
Securities immediately          prior to such acquisition in substantially the same
proportion as their ownership, immediately prior to          such acquisition, of the
Outstanding Company Common Stock and Company Voting Securities, as the case may
         be, shall not constitute a Change in Control of the Company; or
| |  | --- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (b) |  | Continuing
Directors constitute less than a majority of the Board, where a Continuing Director is
(i)          each person who was a director of the Company on January 2, 1997, and (ii)
each person who subsequently          becomes a director of the Company and whose
election or nomination was approved by a vote of at least a          majority of the
Continuing Directors in office at the time of the election or nomination unless that
         person became a director in connection with an actual or threatened election
contest; or
| |  | --- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (c) |  | Approval
by the shareholders of the Company of a reorganization, merger or consolidation (a
"Business          Combination"), in each case, with respect to which all or
substantially all of the individuals and          entities who were the respective
beneficial owners of the Outstanding Company Common Stock and Company          Voting
Securities immediately prior to such Business Combination do not own beneficially,
directly or          indirectly, more than 60% of, respectively, the then outstanding
shares of common stock and the combined          voting power of the then outstanding
voting securities entitled to vote generally in the election of          directors, as
the case may be, of the corporation resulting from such Business Combination in
         substantially the same proportion as their ownership immediately prior to such
Business Combination of          the Outstanding Company Common Stock and Company Voting
Securities, as the case may be; or
| |  | --- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (d) |  | a
complete liquidation or dissolution of the Company or a sale or other disposition of all
or          substantially all of the assets of the Company other than to a corporation
with respect to which,          following such sale or disposition, more than 60% of,
respectively, the then outstanding shares of          common stock and the combined
voting power of the then outstanding voting securities entitled to vote
         generally in the election of directors is then owned beneficially, directly or
indirectly, by all or          substantially all of the individuals and entities who were
the beneficial owners, respectively, of the          Outstanding Company Common Stock and
Company Voting Securities immediately prior to such sale or          disposition in
substantially the same proportion as their ownership of the Outstanding Company Common
         Stock and Company Voting Securities, as the case may be, immediately prior to
such sale or disposition.
| |  | --- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|9. |  | Amendment
and Termination.  The Board may terminate or amend the Plan at any time and from time to
time; provided, however, that the Board may not, without approval of the shareholders of
the Company, increase the maximum number of shares of Stock issuable under the Plan or
change the description of the individuals eligible to receive Awards.  No termination of
or amendment to the Plan may adversely affect the rights of a Participant with respect to
any Award theretofore granted under the Plan without such Participant's consent.
|-- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
Committee may amend the terms of any Award theretofore granted, prospectively or
retroactively, but, subject to Section 4 above, no such amendment shall (i) decrease the
exercise price of an outstanding Stock Option, or (ii) effect the simultaneous
cancellation of an outstanding Stock Option and new grant of a replacement Stock Option,
or (iii) without the Participant's consent, impair the rights of any Participant.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10. |  | Unfunded
Status of Plan.  The Plan is intended to constitute an "unfunded" plan for incentive and
deferred compensation.  With respect to any payments not yet made to a Participant by the
Company, nothing contained herein shall give any such Participant any rights that are
greater than those of any other general creditor of the Company.  In its sole discretion,
the Committee may authorize the creation of trusts or other arrangements to meet the
obligations created under the Plan to deliver Stock or payments in lieu of or with
respect to Awards hereunder; provided, however, unless the Committee otherwise determines
with the consent of the affected Participant, the existence of such trusts or other
arrangements shall be consistent with the "unfunded" status of the Plan.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|11. |  | General
Provisions.
|--- |  | -------------------

| | 11.1 |  | Investment
Representation.  The Committee may require each person acquiring shares pursuant to an
      Award under the Plan to represent to and agree with the Company in writing that the
Participant is       acquiring the shares for investment without a view to distribution
thereof.  The certificates for such       shares may include any legend which the
Committee deems appropriate to reflect any restrictions on       transfer.  All
certificates for shares of Stock or other securities delivered under the Plan shall be
      subject to such stock-transfer orders and other restrictions as the Committee may
deem advisable under the       rules, regulations, and other requirements of any stock
exchange upon which the Stock is then listed, and       any applicable Federal or state
securities law, and the Committee may cause a legend or legends to be put       on any
such certificates to make appropriate reference to such restrictions.
| | ---- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 11.2 |  | Adoption
of Other Plans.  Nothing contained in this Plan shall prevent the Board of Directors from
     adopting other or additional compensation arrangements, subject to stockholder
approval if such approval is      required; and such arrangements may be either generally
applicable or applicable only in specific cases.
| | ---- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 11.3 |  | No
Employment Rights.  Neither the establishment or continuation of the Plan, nor the grant
of any      Award hereunder, shall confer upon any employee or consultant of the Company
or any Related Corporation any      right to continued employment or association with the
Company and any Related Corporation, nor shall it      interfere in any way with the
right of the Company and any Related Corporation to terminate the employment      or
association of any of its employees or consultants at any time.
| | ---- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 11.4 |  | Participant
Not to Compete.  In consideration of the Company's grant of an Award, a Participant shall
     agree in the agreement setting forth the terms of such Award that during the period
of his  employment by or      other service with the Company or any Related Corporation,
and for a period of at least two (2) years after      the date such employment or service
terminates, he will not without the consent of the Board accept or      perform work for
any entity whose business is competitive with the business carried on by the Company and
     any Related Corporation, or engage in activities which are significantly competitive
with the business of      the Company and any Related Corporation.  In the event a
Participant breaches such agreement, the      Participant shall forfeit all rights to any
unexercised Options or unearned Awards held as of the date of      such breach.
| | ---- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 11.5 |  | Tax
Withholding.  No later than the date as of which an amount first becomes includible in
the gross      income of the Participant for Federal income tax purposes with respect to
any Award, the Participant shall      pay to the Company, or make arrangements
satisfactory to the Committee regarding the payment of, any      Federal, state, or local
taxes of any kind required by law to be withheld with respect to such amount.      Unless
otherwise determined by the Committee, the minimum required withholding obligations may
be settled      with Stock.  The obligations of the Company under the Plan shall be
conditional on such payment or      arrangements and the Company shall, to the extent
permitted by law, have the right to deduct any such taxes      from any payment of any
kind otherwise due to the Participant.
| | ---- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 11.6 |  | Payments
on Death.  The Committee shall establish such procedures as it deems appropriate for a
     Participant to designate a beneficiary to whom any amounts payable in the event of
the Participant's death      are to be paid.
| | ---- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 11.7 |  | Governing
Law.  The Plan and all Awards and actions taken thereunder shall be governed by and
     construed in accordance with the laws of the Commonwealth of Massachusetts, without
regard to the conflict      of laws principles thereof.
| | ---- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|12. |  | Term
of Plan.  The Plan shall become effective upon the approval of the Plan by the
shareholders of the Company.  No Award shall be granted pursuant to the Plan on or after
the tenth anniversary of the Plan's approval by shareholders, but Awards theretofore
granted may extend beyond that date.
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------