**AMENDED      AND RESTATED**

**KATY      INDUSTRIES, INC.**

**1995      LONG-TERM INCENTIVE PLAN**

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|   | (a) | The                maximum aggregate number of Shares that may be granted or that may                vest,                as applicable, pursuant to any Award held by any Named Executive                Officer                shall be 100,000 Shares. |
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|   | (b) | The                maximum aggregate cash payout with respect to Awards granted in any                fiscal                year which may be made to any Named Executive Officer shall be                $500,000. |
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|   | (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. |
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|   | (b) | Nonqualified                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. |
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|   | (a) | The                difference between the Fair Market Value of a Share on the date of                exercise over the grant price; by |
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|   | (b) | The                number of Shares with respect to which the SAR is                exercised. |
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|   | (a) | Return                on Assets (ROA); |
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|   | (b) | Cash                Flow Return on Investment (CFROI); |
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|   | (c) | Earnings                Before Income Taxes (EBIT); or |
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|   | (d) | Net                Earnings. |
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|   | (a) | Any                and all Options and SARs granted hereunder shall become immediately                exercisable, and shall remain exercisable throughout their entire                term; |
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|   | (b) | Any                restriction periods and restrictions imposed on Restricted Shares                shall                lapse; |
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|   | (c) | 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 there shall be paid out in cash to Participants 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; and |
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|   | (d) | Subject                to Article 16 herein, the Committee shall have the authority to make                any                modifications to the Awards as determined by the Committee to be                appropriate before the effective date of the Change in                Control. |
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