Document:

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                                                                   EXHIBIT 10.12

                              CONSULTING AGREEMENT

         This Consulting Agreement (this "AGREEMENT") is entered into this 8th
day of January, 2001 by and between Richard G. Richmond ("CONSULTANT") and Young
Innovations, Inc., a Missouri corporation (the "COMPANY").

         WHEREAS, Consultant desires to provide consulting services to the
Company and the Company desires Consultant to provide such services; and

         NOW, THEREFORE, in consideration of the foregoing and the covenants and
agreements contained herein, the parties hereto agree as follows:

         1.   Consulting Arrangement.

              (a)    Consulting Services. Consultant agrees to perform
consulting and advisory services and related duties as may be requested by the
Company or any of its affiliates from time to time in connection with the
Company's business (collectively, the "SERVICES"), including the following:

                     (i)     managing the Company's relationship with
International Assembly, Inc.

                     (ii)    providing technical, training and manufacturing
assistance; and

                     (iii)   visiting customers and suppliers of the Company.

              (b)    Place of Performance. The principal place for performance
of the Services shall be at the Company's headquarters or via telephone,
facsimile or e-mail. Consultant may be obliged, from time to time, and for
reasonable periods of time, to travel in the performance of the Services,
including travel to Mexico and elsewhere.

              (c)    Commitment. During the Consulting Term and in accordance
with the Company's request for Services, Consultant shall devote approximately
seven (7) days per month to providing Services.

              (d)    Consulting Fee. During the Consulting Term, the Company
shall pay to Consultant a monthly fee of SEVEN THOUSAND THREE HUNDRED SIXTY
SEVEN DOLLARS ($7,367.00), payable on the last business day of each month;
provided, however, that the amount to be paid to Consultant for the first month
of the Term shall be $5,465.84.

              (e)    Expenses. Consultant is authorized to incur reasonable
expenses in connection with the performance of the Services; provided, however,
that any expenses which are not in the ordinary course shall be subject to the
prior written approval of the Company's Chief Financial Officer. The Company
will reimburse Consultant in a timely manner at least monthly for all such
expenses upon presentation of an itemized written accounting therefor (together
with such vouchers and other verifications as the Company may require). The

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Company shall not reimburse Consultant for expenses which have not been approved
in advance by the Company's Chief Financial Officer.

              (f)    Term.

                     (i)     The term of this Section 1 shall commence January
8, 2001, and shall continue through December 31, 2001 (the "CONSULTING TERM")
unless otherwise terminated pursuant to this Section 1(f).

                     (ii)    Either party may terminate this Section 1 upon 90
days written notice to the other party.

                     (iii)   Upon the termination of this Section 1, the Company
shall pay to Consultant the consulting fees and expenses due to Consultant as
accrued to the date of such termination. The obligation of the Company for the
payment of any further consulting fees or expenses shall automatically cease
upon such termination, and Consultant or Consultant's personal representative
shall have no claim against the Company for compensation for loss of engagement
or otherwise in respect thereof.

                     (iv)    All obligations of the Company and rights of
Consultant under this Section 1 shall cease upon any termination of this Section
1, except as otherwise provided herein. Notwithstanding anything to the contrary
contained in this Agreement, the provisions of Sections 2, 4 and 10 shall
survive any termination of this Agreement and shall remain in full force and
effect.

         2.   Nondisclosure and Noncompetition.

              (a)    Consideration and Acknowledgements. Consultant acknowledges
and agrees that the covenants described in this Section 2 are essential terms of
this Agreement and that this Agreement would not be entered into by the Company
in the absence of the covenants described herein. Consultant acknowledges and
agrees that the covenants set forth in this Section are necessary for the
protection of the business interests of the Company. Consultant further
acknowledges that these covenants are supported by adequate consideration as set
forth elsewhere in this Agreement, that full compliance with these covenants
will not prevent Consultant from earning a livelihood following the termination
of Section 1, and that these covenants do not place undue restraint on
Consultant and are not in conflict with any public interest. Consultant
acknowledges and agrees that the covenants set forth in this Section 2 are
reasonable and enforceable in every respect under applicable law.

              (b)    Term. The covenants set forth in this Section 2 shall
remain in force for a period commencing on the date hereof and ending on January
8, 2003 (the "NON-COMPETE PERIOD").

              (c)    Definitions. As used in this Section 2, the following terms
have the following meanings:

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                     (i)     "COMPANY" shall mean Young Innovations, Inc.,
including any parent, subsidiary or affiliate as of the date of this Agreement
or at any time during the Non-compete Period.

                     (ii)    "CONFIDENTIAL INFORMATION" shall include any and
all information not generally available to the public through legitimate means
regardless of any past, current or anticipated future business, product, system,
service, process, or practice of the Company, as well as any and all information
relating to Consultant's business, research, development, purchasing,
accounting, advertising, marketing, manufacturing, merchandising and selling.
Confidential Information includes but is not limited to information that may
constitute a "trade secret" under applicable law.

                     (iii)   "COMPETING BUSINESS" means any product, system,
service, process or practice produced, provided, marketed or sold anywhere in
the geographic area where the Company is then conducting any business by any
person or entity other than the Company which competes directly or indirectly
with any product, system, service, process or practice produced, provided,
marketed, sold, or under development by the Company at any time during
Consultant's employment.

                     (iv)    "COMPETING ORGANIZATION" means any person or entity
which is engaged in, or is planning to become engaged in research, development,
production, manufacturing, marketing or selling of a Competing Business within
the area in which the Company is then conducting any business or has affirmative
plans to conduct business while these covenants are in effect.

              (d)    Non-Disclosure of Confidential Information. Except as
necessary to perform the Services, Consultant agrees not to use any Confidential
Information, or disclose any Confidential Information to any person or entity,
either during or at any time after termination of Section 1, without the
Company's prior written consent, unless required to do so by a court of
competent jurisdiction, or by an administrative or legislative body (including a
committee thereof) with purported or apparent jurisdiction to order Consultant
to divulge, disclose or make accessible such information.

              (e)    Non-Competition. Consultant agrees that during the
Noncompete Period, Consultant will not render services to, give advice to,
become employed by or otherwise affiliate with, directly or indirectly, any
Competing Organization, nor will he (on behalf of himself or any other person or
entity) engage directly or indirectly in any Competing Business, unless
otherwise agreed to in writing by the Company.

              (f)    Non-Inducement. Consultant agrees that during the
Noncompete Period, he will not directly or indirectly assist or encourage any
person or entity in carrying out any activity that would be prohibited by the
provisions of this Section 2 if such activity were carried out by Consultant.
Consultant also specifically agrees that during the Noncompete Period he will
not directly or indirectly induce any other employee of the Company to leave the
employ of the Company or to carry out, directly or indirectly, any such activity
that would be prohibited by the provisions of this Section 2 if such activity
were carried out by Consultant; provided, however, that Consultant shall not be
in violation of this provision if an employee of the

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Company decides to join the new employer of Consultant if Consultant did not
intentionally direct or solicit such employee to leave.

              (g)    Inventions and Patents. Consultant agrees to promptly and
fully disclose in writing and does hereby assign to the Company every invention,
innovation, copyright, or improvement made or conceived by Consultant during the
period that he provides Services that relates directly or indirectly to his
engagement with the Company pursuant to this Agreement. Consultant further
agrees that both during and after this Agreement terminates, without charge to
the Company but at the Company's expense, he will execute, acknowledge and
deliver any documents, including applications for Letters Patent, as may be
necessary, or in the opinion of the Company, advisable to (i) obtain, enjoy
and/or enforce Letters Patent for those inventions, innovations or improvements
in the United States and in any other country; (ii) obtain, enjoy or enforce the
right to claim the priority of the first filed patent application anywhere in
the world; or (iii) vest title in the Company and its successors, assigns or
nominees. Additionally, Consultant agrees that for a period of one (1) year
after termination of Section 1, any invention, development, innovation, or
improvement within the scope of this Section 2 shall be presumed to have been
made during his retention as a consultant pursuant to this Agreement by the
Company. Consultant shall have the burden of clearly and convincingly
establishing otherwise. This Agreement does not apply to any invention for which
no equipment, supplies, facility or trade secret information of the Company was
used and which was developed entirely on Consultant's own time, and (i) which
does not relate (A) directly to the business of the Company or (B) to the
Company's actual or demonstrably anticipated research or development, or (ii)
which does not result from any work performed by Consultant for the Company.

              (h)    Enforcement of These Covenants. Consultant acknowledges
that full compliance with all of the covenants set forth in this Section 2 is
necessary to enable the Company to do business with its customers and suppliers
and to prevent damage to the Company for which there will be no adequate remedy
at law. In the event of a breach of any of these covenants, Consultant therefore
acknowledges and agrees that the Company shall be entitled to injunctive relief
and the Company shall further be entitled to such other relief, including money
damages, as may be deemed appropriate by a court of competent jurisdiction. In
the event of a court action based upon an alleged breach of any of these
covenants, the prevailing party (as determined by a court ruling on the merits
of the dispute) will be reimbursed by the other party for reasonable attorneys'
fees and costs incurred as a result of the dispute. If any court should at any
time find any one of these covenants to be unenforceable or unreasonable as to
scope, territory or period of time, then the scope, territory or period of time
of the covenant shall be that determined by the court to be reasonable, and the
parties hereby agree that the court has the authority to so modify any of these
covenants as necessary to make the covenant enforceable.

              (i)    Existence of Other Obligations. Consultant represents and
warrants that he is not currently subject to any contractual or other
obligations to any former employer or other entity, including but not limited to
obligations not to use or disclose confidential information, or to refrain from
competing with any person or entity.

              (j)    Waiver. Consultant agrees that the Company's failure to
enforce any of the covenants of this Section 2 in any particular instance shall
not be deemed to be a waiver of

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the covenant in that or any subsequent instance, nor shall it be deemed a waiver
by the Company's of any other rights at law or under this Agreement.

              (k)    Breach. Consultant agrees that any breach of Section 2
above will result in irreparable damage to the Company for which the Company
will have no adequate remedy at law, and, therefore if such a breach should
occur, Consultant consents to any temporary restraining order, a preliminary or
permanent injunction or any other form of equitable relief or decree of specific
performance by any court of competent jurisdiction in favor of the Company
enjoining any such breach, without prejudice to any other right or remedy to
which the Company shall be entitled. It is further agreed that the existence of
any claim or cause of action on the part of the Consultant against the Company,
whether arising from this Agreement or otherwise, shall in no way constitute a
defense to the enforcement provisions of Section 2 of this Agreement. In the
event that any portion of this Agreement shall be determined by any court of
competent jurisdiction to be unenforceable by reason of its scope such
provisions shall be interpreted, modified or rewritten to include as much of the
scope set forth in Section 2 as will render such restrictions valid and
enforceable. Each of the covenants herein shall be deemed a separate and
severable covenant. In the event Consultant breaches any provision of this
Agreement, the Company shall be entitled to recover all costs of enforcement,
including reasonable attorneys' fees. It is the desire and intent of the parties
that the provisions of Section 2 shall be enforced to the fullest extent
permissible under the laws and public policies applied in each jurisdiction in
which such enforcement is sought. Accordingly, a court of competent jurisdiction
is directed to modify any provision to the extent necessary to render such
provision enforceable.

         3.   Payment. Assuming that Consultant is not in breach of Section 2,
the Company will pay Consultant an aggregate of $168,174, to be paid in 12 equal
monthly installments of $14,014.50 each in connection with the obligations of
Consultant set forth in Section 2 (the "NONCOMPETE PAYMENTS"). The Noncompete
Payments shall be paid on the last business day of each month commencing January
31, 2001 and ending December 31, 2001.

         4.   Status. The relationship of Consultant to the Company shall be
that of an independent contractor and nothing in this Agreement shall be deemed
to create any employment relationship between the Company and Consultant.
Consultant shall not in any way obligate or create liability on the part of the
Company or any of its affiliates without the Company's prior written consent.
Nothing contained in this Agreement shall be construed to constitute Consultant
as the employee or agent of the Company, nor shall Consultant have any authority
to bind, contract for, or act on behalf of the Company or any of its affiliates.

         5.   Employment Agreement. Consultant and the Company hereby agree that
the Employment Agreement between Consultant and the Company dated October 25,
1999 (the "EMPLOYMENT AGREEMENT") is hereby terminated effective January 8, 2001
and that the Employment Agreement shall thereafter be null and void and of no
further force and effect. More specifically, the Company shall have no
obligations to pay any amounts to Consultant pursuant to Sections 4 and 6 of the
Employment Agreement. In connection with the foregoing, Consultant hereby
resigns as an officer and employee of the Company and each of its subsidiaries.
In addition, Consultant hereby resigns as a director of each subsidiary of the
Company; provided, however, that Consultant shall continue to be a director of
International Assembly, Inc. Neither the Company nor the Consultant shall have
any liability or obligation
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under the Employment Agreement following termination of the Employment Agreement
except that Consultant shall continue to be subject to the obligations under
Sections 6(f) and 8(a), (b), (c), (d), (g), (h) and (j) of the Employment
Agreement. Consultant hereby irrevocably and unconditionally, fully and forever
acquits, releases and discharges and agrees to hold harmless the Company and its
affiliates, officers, directors, employees, agents, representatives, successors
and assigns (collectively, the "RELEASED PARTIES") from any and all present and
future claims, actions, causes of action, suits, charges, complaints, debts,
sums of money, accounts, reckonings, bonds, bills, specialties, covenants,
contracts, controversies, agreements, promises, variances, damages, judgments,
liabilities or obligations of any kind whatsoever in law or in equity (the
"CLAIMS") which the Consultant and its heirs, beneficiaries, executors,
trustees, administrators, successors and assigns in any capacity can, shall or
may have against the Released Parties; provided, however, that this Release does
not release the Company from any obligations or claims under this Agreement or
with respect to any outstanding stock options of the Company granted to
Consultant. The foregoing includes all Claims that now exist or may hereafter
accrue based on matters now unknown as well as known, and matters unanticipated
as well as anticipated, in any way whatsoever, including Claims directly or
indirectly resulting or causing to result from the status of the Consultant as a
shareholder, creditor, officer, employee, agent or representative of the
Company.

         6.   Complete Agreement; Rules of Construction. Except as specifically
set forth in Section 5, this Agreement contains the full and complete
understanding of the parties hereto with regard to the subject matter contained
herein. Except as specifically set forth in Section 5, no other agreements or
undertakings of the parties shall in any manner limit or alter the nature and
scope of the terms hereof unless in writing duly executed by both parties and
expressly providing that the same shall be controlling over any conflicting
terms contained herein. The word "INCLUDING" shall mean including, without
limitation. The Article, Section and other headings contained herein are for
reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement.

         7.   Assignment. This Agreement is personal as to the rights and
interests of Consultant, and as such, Consultant may not assign or transfer his
rights, duties or obligations under this Agreement, in whole or in part, without
the prior written consent of the Company. This Agreement shall be binding upon
and will inure to the benefit of the successors of the Company and may be
assigned or transferred by the Company, in whole or in part.

         8.   Severability. Subject to Section 2(k), in the event that any
portion, provision, paragraph, sentence, or word of this Agreement shall be
found to be invalid or unenforceable by a court of competent jurisdiction, the
Agreement shall be deemed amended to delete therefrom such portion, provision,
paragraph, sentence or word adjudicated to be invalid or unenforceable; such
amendment shall have no effect upon the validity or enforceability of the
balance of this Agreement and such amendment is to apply only with respect to
the operation of this Agreement in the particular jurisdiction in which such
adjudication is made.

         9.   Waiver. The failure of the Company to insist, in any one or more
instances, upon performance of any of the terms or conditions of this Agreement,
shall not be construed as a waiver or relinquishment of any rights granted
hereunder or the future performance of any such term, covenant or condition. No
amendment or waiver of any provision of this Agreement shall

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in any event be effective unless the same shall be in writing and signed by the
parties hereto, and then such waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given.

         10.  Jurisdiction; Service of Process. Each of the parties hereto
agrees that any action or proceeding initiated or otherwise brought to judicial
proceedings by either Consultant or the Company concerning the subject matter of
this Agreement shall be litigated in the United States District Court for the
Eastern District of Missouri or, in the event such court cannot or will not
exercise jurisdiction, in the state courts of the State of Missouri (the
"COURTS"). Each of the parties hereto expressly submits to the jurisdiction and
venue of the Courts and consents to process being served in any suit, action or
proceeding of the nature referred to above either (a) by the mailing of a copy
thereof by registered or certified mail, postage prepaid, return receipt
requested, to his or its address as set forth herein or (b) by serving a copy
thereof upon such party's authorized agent for service of process (to the extent
permitted by applicable law, regardless of whether the appointment of such agent
for service of process for any reason shall prove to be ineffective or such
agent for service of process shall accept or acknowledge such service); provided
that, to the extent lawful and practicable, written notice of said service upon
said agent shall be mailed by registered or certified mail, postage prepaid,
return receipt requested, to the party at his or its address as set forth
herein. Each party hereto agrees that such service, to the fullest extent
permitted by law, (i) shall be deemed in every respect effective service of
process upon him or it in any such suit, action or proceeding and (ii) shall be
taken and held to be valid personal service upon and personal delivery to him or
it. Each party hereto waives any claim that the Courts are an inconvenient forum
or an improper forum based on lack of venue or jurisdiction. Except as
specifically provided in this Agreement, each party shall bear its own costs and
attorneys' fees incurred in connection with any such actions or proceedings.

         11.  Governing Law. This Agreement shall be governed as to its
validity and effect by the internal laws of the State of Missouri, without
regard to its rules regarding conflicts of law.

         12.  Notices. All notices, requests, demands and other communications
hereunder shall be in writing and shall be personally delivered, sent by
overnight carrier (such as Express Mail, Federal Express, etc.) or sent by
facsimile transmission with confirming copy sent by overnight courier and a
delivery receipt obtained and addressed to the intended recipient as follows:

              If to the Company:

              Young Innovations, Inc.
              2401 Harnish Drive, Suite 100
              Algonquin, IL 60102
              Attention:  Arthur L. Herbst, Jr.
              Telephone No.: (847) 458-5405
              Facsimile No.: (847) 458-6257

              With a copy to:

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              McDermott, Will & Emery
              227 West Monroe Street
              Chicago, IL  60606
              Telephone No.:  (312) 984-6957
              Facsimile No.:  (312) 984-3669
              Attn:  John P. Tamisiea

        If to Consultant:

              Richard G. Richmond

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              Telephone No.:
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              Facsimile No.:
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        With a copy to:

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              -------------------
              Telephone No.:
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              Facsimile No.:
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Any party may change its address or add or change parties for receiving notice
by giving the other party notice in the manner set forth above.

         13.  Authorship. The parties agree that the terms and language of this
Agreement were the result of negotiations between the parties and, as a result,
there shall be no presumption that any ambiguities in this Agreement shall be
resolved against any party. Any controversy over construction of this Agreement
shall be decided without regard to events of authorship or negotiation.

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              IN WITNESS WHEREOF, the parties have duly executed this Agreement
as of the date and year first above written.

                                  YOUNG INNOVATIONS, INC.

                                  By:
                                     -------------------------------------------
                                  Title:
                                        ----------------------------------------

                                  ----------------------------------------------
                                  Richard G. Richmond

                                       9<PAGE>   1
                                                                    EXHIBIT 10.6

                       COMMUNITY CENTRAL BANK CORPORATION
                         2000 EMPLOYEE STOCK OPTION PLAN

                             -----------------------

                      As adopted by the Board of Directors
                               on February 1, 2000

                             -----------------------

ARTICLE I - PURPOSE

         The purpose of the 2000 Employee Stock Option Plan (the "Plan") of
Community Central Bank Corporation (the "Company") is to enable key employees of
the Company or any Subsidiary to participate in the Company's future growth and
profitability by offering them long-term performance-based incentive
compensation. The Plan also provides a means through which the Company and its
Subsidiaries can attract and retain key employees.

ARTICLE II - DEFINITIONS

         2.1      The following terms have the meaning described below when used
in the Plan:

         (a)      "Board of Directors" shall mean the board of directors of the
Company.

         (b)      "Code" shall mean the Internal Revenue Code of 1986, as
amended, and as it may be further amended from time to time.

         (c)      "Common Stock" shall mean the Common Stock of the Company.

         (d)      "Company" shall mean Community Central Bank Corporation.

         (e)      "Fair Market Value" on a particular date shall mean (i) if the
Common Stock is quoted on the OTC Bulletin Board (the "Bulletin Board"), the
mean between the closing high bid and low asked quotations for such day (or, in
the event that the Common Stock was not quoted on such day, the most recent
preceding business day on which the Common Stock was quoted) of the Common Stock
on the Bulletin Board, (ii) if the Common Stock is quoted on The Nasdaq Stock
Market ("Nasdaq"), the mean between the closing high bid and low asked
quotations for such day of the Common Stock on Nasdaq, or (iii) if neither
clause (i) nor (ii) is applicable, a value determined by any fair and reasonable
means prescribed by the Board of Directors.

         (f)      "Incentive Stock Option" shall mean a stock option granted
under Article VI that is intended to meet the requirements of Section 422 of the
Code.

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         (g)      "Non-Qualified Stock Option" shall mean a stock option granted
under Article VI that is not intended to be an Incentive Stock Option.

         (h)      "Option" shall mean an Incentive Stock Option or Non-Qualified
Stock Option.

         (i)      "Participant" shall mean an eligible employee who has been
granted an Option.

         (j)      "Subsidiary" shall mean a corporation a majority of the
outstanding  voting  capital stock of which is owned by the Company.

ARTICLE III - ADMINISTRATION

         3.1      Stock Option Plan Administration. The Board of Directors of
the Company shall administer the Plan. The Board of Directors shall have full
power and authority to grant to eligible employees (as determined by the Board
of Directors) Options under Article VI of the Plan, to interpret the provisions
of the Plan and any agreements relating to Options granted under the Plan, and
to administer the Plan. In making determinations of eligibility for the Plan,
the Board of Directors may consider the position and responsibilities of the
employee, the nature and value of his or her services and accomplishments, the
present and potential contribution of the employee to the success of the
Company, and such other factors as the Board of Directors may deem relevant.

         (b)      Decisions of Board of Directors. All decisions made by the
Board of Directors pursuant to the provisions of the Plan shall be final,
conclusive and binding on all persons, including the Company, its shareholders
and employees, and beneficiaries of employees.

ARTICLE IV - SHARES SUBJECT TO THE PLAN

         4.1      (a) Number of Shares. Subject to adjustment as provided for in
Section 4.1(b), the maximum number of shares of Common Stock with respect to
which Options may be granted shall be 60,000 shares of Common Stock. Shares of
Common Stock shall be made available from the authorized but unissued shares of
the Company (including shares reacquired by the Company). If an Option granted
under the Plan shall expire or terminate for any reason, the shares subject to,
but not delivered, under such Option shall be available for other Options to be
issued under the Plan.

                  (b) Adjustments. All as may be deemed appropriate by the Board
of Directors, the aggregate number of shares of Common Stock which may be issued
under the Plan, the number of shares covered by each outstanding Option, and the
price per share in each Option, may be proportionately adjusted for any increase
or decrease in the number of issued shares of Common Stock of the Company
resulting from a subdivision or consolidation of shares or any other capital
adjustment, a stock split, the payment of a stock dividend, or other increase or
decrease in such shares effected without receipt of consideration by the
Company.

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ARTICLE V - ELIGIBILITY

         5.1      The persons eligible to participate in the Plan and receive
Options under the Plan are officers and other key employees of the Company and
its Subsidiaries, including directors who are full time employees, as determined
by the Board of Directors.

ARTICLE VI - STOCK OPTIONS

         6.1      Grant of Options. Subject to the limitations of the Plan, the
Board of Directors, after such consultation with and consideration of the
recommendations of management as the Board of Directors considers desirable,
shall select from eligible employees Participants to be granted Options and
determine the time when each Option shall be granted and the number of shares
subject to each Option. Options may be either Incentive Stock Options or
Non-Qualified Stock Options. More than one Option may be granted to the same
person. The Board of Directors may not grant a Participant Incentive Stock
Options which in the aggregate are first exercisable during any one calendar
year with respect to Common Stock the aggregate Fair Market Value of which
(determined as of the time of grant) exceeds $100,000.

         6.2      Option Agreements. Each Option under the Plan shall be
evidenced by an option agreement that shall be signed by an officer of the
Company and the Participant and shall contain such provisions as may be approved
by the Board of Directors. Any such option agreement may be amended from time to
time as approved by the Board of Directors and the Participant, provided that
the terms of such option agreement after being amended conform to the terms of
the Plan.

         6.3      Option Price. The price at which shares of Common Stock may be
purchased upon exercise of an Option shall be not less than one hundred percent
(100%) of the Fair Market Value of such shares on the date such Option is
granted.

         6.4      Exercise of Options.

         (a)      The period during which each Option may be exercised shall be
fixed by the Board of Directors at the time such Option is granted, but such
period in no event shall expire later than ten (10) years from the date the
Option is granted.

         (b)      Subject to the terms and conditions of the option agreement
and unless canceled prior to exercise, each Option shall be exercisable in whole
or in part in installments at such time or times as the Board of Directors may
prescribe and specify in the applicable option agreement.

         (c)      No shares shall be delivered pursuant to any exercise of an
Option until payment in full of the option price therefor is received by the
Company. Such payment shall be made in cash or through the delivery of shares of
Common Stock of the Company with a value equal to the total option price or a
combination of cash and shares. Any shares so delivered shall be

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valued at their Fair Market Value on the exercise date. No Participant shall be
deemed to be a holder of any shares subject to any Option prior to the issuance
of such shares upon exercise of such Option.

         6.5      Ten-Percent Shareholder Rule. If a Participant owns more than
ten percent (10%) of the total combined voting power of all classes of the
Company or of any Subsidiary's stock at the time an Incentive Stock Option is
granted to such Participant, the option price to such Participant shall not be
less than one hundred ten percent (110%) of the Fair Market Value per share of
the Common Stock on the date of grant, and such Incentive Stock Option by its
terms shall not be exercisable after the expiration of five (5) years from the
date of grant.

         6.6      Non-Transferability of Options. No Option or any rights with
respect thereto shall be subject to any debts or liabilities of a Participant,
nor be assignable or transferable except by Will or the laws of descent and
distribution, nor be exercisable during the Participant's lifetime other than by
the Participant, nor shall Common Stock be issued to or in the name of one other
than the Participant; provided, however, that an Option may after the death or
disability of a Participant be exercised pursuant to Section 6.7; and provided
further that any Common Stock issued to a Participant hereunder may at the
request of the Participant, and with the consent of the Company, be issued in
the names of the Participant and one other person, as joint tenants with right
of survivorship and not as tenants in common, or in the name of a trust for the
benefit of the Participant or for the benefit of the Participant and others.

         6.7      Termination of Employment; Death and Disability. Subject to
the condition that no Option may be exercised in whole or in part after the
expiration of the option period specified in the applicable option agreement:

         (a)      Except as hereinafter provided, an Option may be exercised by
the Participant only while such Participant is in the employ of the Company or a
Subsidiary. In the event that the employment of a Participant to whom an Option
has been granted under the Plan shall terminate (except as set forth below) such
Option may be exercised, to the extent that the Option was exercisable on the
date of termination of employment, only until the earlier of three (3) months
after such termination or the original expiration date of the Option; provided,
however, that if termination of employment results from death or total and
permanent disability, such three (3) month period shall be extended to twelve
(12) months.

         (b)      In the event of the permanent disability of a Participant as
determined by the Board of Directors, an Option which is otherwise exercisable
may be exercised by the Participant's legal representative or guardian. In the
event of the death of the Participant, an Option which is otherwise exercisable
may be exercised by the person or persons whom the Participant shall have
designated in writing on forms prescribed by and filed with the Board of
Directors ("Beneficiaries"), or, if no such designation has been made, by the
person or persons to whom the Participant's rights shall have passed by Will or
the laws of descent and distribution ("Successors"). The Board of Directors may
require an indemnity and/or such evidence or other assurances as the Board of
Directors in its sole and absolute discretion may deem necessary in connection
with an exercise by a legal representative, guardian, Beneficiary or Successor.

                                       4
<PAGE>   5

ARTICLE VII - GENERAL PROVISIONS

         7.1      Change in Control.

         (a)      In the case of a Change in Control (as defined below) of the
Company, unless the Board of Directors determines otherwise, each Option then
outstanding shall become exercisable in full immediately prior to such Change in
Control.

         (b)      Any determination by the Board of Directors made pursuant to
subsection (a) above may be made as to all outstanding Options or only as to
certain Options specified by the Board of Directors and any such determinations
shall be made in cases covered by subparagraphs 7.1(c)(i) and (ii) below prior
to or as soon as practicable after the occurrence of such event and in the cases
covered by subparagraphs 7. 1 (c) (iii) or (iv) prior to the occurrence of such
event.

         (c)      A Change in Control shall occur if:

                  (i)   Any "person" or "group of persons" as such terms are
defined in Section 13(d) and 14(c) of the Securities Exchange Act of 1934 (the
"Exchange Act") directly or indirectly purchases or otherwise becomes the
"beneficial owner" (as defined in the Exchange Act) or has the right to acquire
such beneficial ownership (whether or not such right is exercised immediately,
with the passage of time or subject to any condition) of voting securities
representing forty percent (40%) or more of the combined voting power of all
outstanding voting securities of the Company,

                  (ii)  During any period of two consecutive calendar years the
individuals who at the beginning of such period constitute the Board of
Directors cease for any reason to constitute at least the majority of the
members thereof unless (1) there are five or more directors then still in office
who were directors at the beginning of the period and (2) the election or the
nomination for election by the Company's shareholders of each new director was
approved by at least two-thirds (2/3) of the directors then still in office who
were directors at the beginning of the period,

                  (iii) The shareholders of the Company shall approve an
agreement to merge or consolidate the Company with or into another corporation
as a result of which less than fifty percent (50%) of the outstanding voting
securities of the surviving or resulting entity are or are to be owned by the
former shareholders of the Company (excluding from former shareholders a
shareholder who is or as a result of the transaction in question, becomes an
affiliate as defined in Rule 12b-2 under the Exchange Act of any party to such
consolidation or merger), or

                  (iv)  The shareholders of the Company shall approve the sale
of all or substantially all of the Company's business and/or assets to a person
or entity that is not a wholly-owned subsidiary of the Company.

         7.2      No Right of Continued Employment. Neither the establishment of
the Plan, the granting of Options or any action of the Company or of the Board
of Directors shall be held or

                                       5
<PAGE>   6

construed to confer upon any person any legal right to be continued in the
employ of the Company or its Subsidiaries, each of which expressly reserves the
right to discharge any employee whenever the interest of any such company in its
sole discretion may so require without liability to such company or the Board of
Directors, except as to any rights that may be expressly conferred upon such
employee under the Plan.

         7.3      No Segregation of Cash or Shares. The Company shall not be
required to segregate any shares of Common Stock that may at any time be
represented by Options, and the Plan shall constitute an "unfunded" plan of the
Company. No employee shall have rights with respect to shares of Common Stock
prior to the delivery of such shares. The Company shall not, by any provisions
of the Plan, be deemed to be a trustee of any Common Stock or any other property
and the liabilities of the Company to any employee pursuant to the Plan shall be
those of a debtor pursuant to such contract obligations as are created by or
pursuant to the Plan, and the rights of any employee, former employee or
beneficiary under the Plan shall be limited to those of a general creditor of
the Company.

         7.4      Delivery of Shares. No shares shall be delivered pursuant to
any exercise of an Option under the Plan unless the requirements of such laws
and regulations as may be deemed by the Board of Directors to be applicable
thereto are satisfied. All certificates for shares of Common Stock delivered
under the Plan shall be subject to such stock-transfer orders and other
restrictions as the Board of Directors may deem advisable under the rules,
regulations, and other requirements of the Securities and Exchange Commission,
any stock exchange or quotation system upon which the Common Stock is then
listed, and any applicable Federal or state securities law, and the Board of
Directors may cause a legend or legends to be put on any such certificates to
make appropriate reference to such restrictions.

         7.5      Governing Law. The Plan and all determinations made and action
taken pursuant thereto shall be governed by the laws of the State of Michigan
and construed in accordance therewith.

         7.6      Payments and Tax Withholding. The delivery of any shares of
Common Stock under the Plan shall be for the account of the Company and any such
delivery or distribution shall not be made until the recipient shall have made
satisfactory arrangements for the payment of any applicable withholding taxes.

                                       6
<PAGE>   7

ARTICLE VIII - AMENDMENT AND TERMINATION

         8.1      Amendment or Termination. The Board of Directors may amend or
terminate the Plan provided, however, that no such amendment or termination
shall adversely affect any Option then in effect unless the prior approval of
the Participant so affected is obtained. No Option may be granted under the Plan
after December 31, 2009.

ARTICLE IX - EFFECTIVENESS OF PLAN

         9.1      The Plan was adopted by the Board of Directors on February 1,
2000 subject to the approval of the shareholders of the Company.

ARTICLE X - SEVERABILITY

         10.1     If any provision of the Plan, or any term or condition of any
Option granted thereunder, is invalid, such provision, term, condition or
application shall to that extent be void (or, in the discretion of the Board of
Directors, such provision, term or condition may be amended so as to avoid such
invalidity or failure), and shall not affect other provisions, terms or
conditions or applications thereof, and to this extent such provisions, terms
and conditions are severable.

                                       7

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