Document:

Exhibit 4.2

                                 AMENDED BY-LAWS
                                       OF
                            FIDELITY FEDERAL BANCORP

                                    ARTICLE I

     Section 1. Name. The name of the corporation is Fidelity Federal Bancorp
("Corporation").

     Section 2. Registered Office and Registered Agent. The street address of
the Registered Office of the Corporation is One Indiana Square, Suite 2800,
Indianapolis, Indiana 46204, and the name of its Registered Agent at that office
is John W. Tanselle.

     Section 3. Seal. Unless otherwise required by law, the Corporation shall
not be required to use a seal. If the Board of Directors of the Corporation
determines that the Corporation shall use a seal, the seal shall be circular in
form and mounted upon a metal die, suitable for impressing the same upon paper.
About the upper periphery of the seal shall appear the words "Fidelity Federal
Bancorp" and about the lower periphery thereof the word "Indiana". In the center
of the seal shall appear the word "Seal".

                                   ARTICLE II

     The fiscal year of the Corporation shall begin each year on the first day
of January and end on the last day of December.

                                   ARTICLE III

                                  Capital Stock

     Section 1. Number of Shares and Classes of Capital Stock. The total number
of shares of capital stock which the Corporation shall have authority to issue
shall be as set forth in the Corporation's Articles of Incorporation from time
to time. Subject to the provisions in the Articles of Incorporation regarding
cumulative voting for directors, the capital stock shall have unlimited voting
rights and shall be entitled to receive the net assets of the Corporation upon
dissolution.

     Consideration for Shares. The shares of stock of the Corporation shall be
issued or sold in such manner and for such amount of consideration, received or
to be received, as may be fixed

                                        1
<PAGE>

from time to time by the Board of Directors. Upon payment of the consideration
fixed by the Board of Directors, such shares of stock shall be fully paid and
nonassessable.

     Section 3. Payment for Shares. The consideration determined by the Board of
Directors to be required for the issuance of shares of capital stock of the
Corporation may consist of any tangible or intangible property or benefit to the
Corporation, including cash, promissory notes, services performed, contracts for
services to be performed, or other securities of the Corporation.

     If the Board of Directors authorizes the issuance of shares for promissory
notes or for promises to render services in the future, the Corporation shall
report in writing to the shareholders the number of shares authorized to be so
issued with or before the notice of the next shareholders' meeting.

     The Corporation may place in escrow shares issued for a contract for future
services or benefits or a promissory note, or make other arrangements to
restrict the transfer of the shares, and may credit distributions in respect of
the shares against their purchase price, until the services are performed, the
note is paid, or the benefits received. If the services are not performed, the
note is not paid, or the benefits are not received, the shares escrowed or
restricted and the distributions credited may be cancelled in whole or in part.

     When payment of the consideration for which a share was authorized to be
issued shall have been received by the Corporation, such share shall be declared
and taken to be fully paid and not liable to any further call or assessment, and
the holder thereof shall not be liable for any further payments thereon. In the
absence of actual fraud in the transaction, the judgment of the Board of
Directors as to the value of such property, labor or services received as
consideration, or the value placed by the Board of Directors upon the corporate
assets in the event of a share dividend, shall be conclusive.

     Section 4. Certificate for Shares. Each holder of capital stock of the
Corporation shall be entitled to a stock certificate, signed by the President or
a Vice President and the Secretary or any Assistant Secretary of the
Corporation, stating the name of the registered holder, the number of shares
represented by such certificate, and that such shares are fully paid and
nonassessable, provided, that if such shares are not fully paid, the
certificates shall be legibly stamped to indicate the percent which has been
paid, and as further payments are made, the certificate shall be stamped
accordingly.

     If the Corporation is authorized to issue shares of more than one class,
every certificate shall state the kind and class of shares represented thereby,
and the relative rights, interests, preferences and restrictions of such class,
or a summary thereof; provided, that such statement may be omitted from the
certificate if it shall be conspicuously set forth upon the face or back of the
certificate that such statement, in full, will be furnished by the Corporation
to any shareholder upon written request and without charge.

     Section 5. Facsimile Signatures. If a certificate is countersigned by the
written signature of a transfer agent other than the Corporation or its
employee, the signatures of the

                                        2
<PAGE>

officers of the Corporation may be facsimiles. If a certificate is countersigned
by the written signature of a registrar other than the Corporation or its
employee, the signatures of the transfer agent and the officers of the
Corporation may be facsimiles. In case any officer, transfer agent, or registrar
who has signed or whose facsimile signature has been placed upon a certificate
shall have ceased to be such officer, transfer agent, or registrar before such
certificate is issued, it may be issued by the Corporation with the same effect
as if he were such officer, transfer agent, or registrar at the date of its
issue.

         Section 6. Transfer of Shares. The shares of capital stock of the
Corporation shall be transferable only on the books of the Corporation upon
surrender of the certificate or certificates representing the same, properly
endorsed by the registered holder or by his duly authorized attorney or
accompanied by proper evidence of succession, assignment or authority to
transfer.

         The Corporation may impose restrictions on the transfer or registration
of transfer of capital stock of the Corporation by means of these By-laws, the
Articles of Incorporation, or by an agreement with shareholders. Shareholders
may agree between themselves to impose a restriction on the transfer or
registration of transfer of shares. A restriction which is authorized by the
Indiana Business Corporation Law and which has its existence noted conspicuously
on the front or back of the Corporation's stock certificate is valid and
enforceable against the holder or a transferee of the holder of the
Corporation's stock certificate. If noted on the certificate the restriction is
enforceable against a person without knowledge of the restriction.

         Section 7. Cancellation. Every certificate surrendered to the
Corporation for exchange or transfer shall be cancelled, and no new certificate
or certificates shall be issued in exchange for any existing certificate until
such existing certificate shall have been so cancelled, except in cases provided
for in Section 9 of this Article III.

         Section 8. Transfer Agent and Registrar. The Board of Directors may
appoint a transfer agent and a registrar for each class of capital stock of the
Corporation and may require all certificates representing such shares to bear
the signature of such transfer agent and registrar. Shareholders shall be
responsible for notifying the transfer agent and registrar for the class of
stock held by such shareholder in writing of any changes in their addresses from
time to time, and failure so to do shall relieve the Corporation, its
shareholders, directors, officers, transfer agent and registrar of liability for
failure to direct notices, dividends, or other documents or property to an
address other than the one appearing upon the records of the transfer agent and
registrar of the Corporation.

         Section 9. Lost, Stolen or Destroyed Certificates. The Corporation may
cause a new certificate or certificates to be issued in place of any certificate
or certificates theretofore issued by the Corporation alleged to have been lost,
stolen or destroyed, upon the making of an affidavit of that fact by the person
claiming the certificate of stock to be lost, stolen or destroyed. When
authorizing such issue of a new certificate or certificates, the Corporation
may, in its discretion and as a condition precedent to the issuance thereof,
require the owner of such lost, stolen or

                                        3
<PAGE>

destroyed certificate or certificates, or his legal representative, to give the
Corporation a bond in such sum and in such form as it may direct to indemnify
against any claim that may be made against the Corporation with respect to the
certificate alleged to have been lost, stolen or destroyed or the issuance of
such new certificate. The Corporation, in its discretion, may authorize the
issuance of such new certificates without any bond when, in its judgment, it is
proper to do so.

         Section 10. Registered Shareholders. The Corporation shall be entitled
to recognize the exclusive right of a person registered on its books as the
owner of such shares to receive dividends, to vote as such owner, to hold liable
for calls and assessments, and to treat as owner in all other respects, and
shall not be bound to recognize any equitable or other claims to or interest in
such share or shares on the part of any other person, whether or not it shall
have express or other notice thereof, except as otherwise provided by the laws
of Indiana.

                                   ARTICLE IV

                            Meetings of Shareholders

         Section 1. Place of Meeting; Conference Telephone Meetings. Meetings of
shareholders of the Corporation shall be held at such place, within or without
the State of Indiana, as may from time to time be designated by the Board of
Directors, or as may be specified in the notices or waivers of notice of such
meetings. A shareholder may participate in a shareholders' meeting by means of a
conference telephone or similar communications equipment by which all persons
participating in the meeting can communicate with each other, and participating
by these means constitutes presence in person at the meeting.

         Section 2. Annual Meeting. The annual meeting of shareholders for the
election of directors, and for the transaction of such other business as may
properly come before the meeting, shall be held on such day and at such time
within six (6) months following the close of the Corporation's fiscal year as
the Board of Directors may set by resolution. Failure to hold the annual meeting
within such time period shall not work any forfeiture or a dissolution of the
Corporation, and shall not affect otherwise valid corporate acts.

         Section 3. Special Meetings. Special meetings of the shareholders, for
any purpose or purposes, unless otherwise prescribed by statute or by the
Articles of Incorporation, may be called by the Board of Directors or the
President and shall be called by the President or Secretary at the request in
writing of a majority of the Board of Directors, or at the request of
shareholders holding of record not less than one-fourth of all the shares
outstanding and entitled by the Articles of Incorporation to vote on the
business for which the meeting is being called. Such request by the shareholders
shall be in writing, signed by all of such shareholders (or their duly
authorized proxies), dated and delivered to the Corporation's secretary.

                                        4
<PAGE>

         Section 4. Notice of Meetings. A written or printed notice, stating the
place, day and hour of the meeting, and in case of a special meeting, or when
required by any other provision of the Indiana Business Corporation Law, or of
the Articles of Incorporation, as now or hereafter amended, or these By-Laws,
the purpose or purposes for which the meeting is called, shall be delivered or
mailed by the Secretary, or by the officers or persons calling the meeting, to
each shareholder of record entitled by the Articles of Incorporation, as now or
hereafter amended, and by the Indiana Business Corporation Law to vote at such
meeting, at such address as appears upon the records of the Corporation, at
least ten (10) days and no more than sixty (60) days before the date of the
meeting. Notice of any such meeting may be waived in writing by any shareholder,
if the waiver sets forth in reasonable detail the purpose or purposes for which
the meeting is called, and the time and place thereof. Attendance at any such
meeting in person, or by proxy, shall constitute a waiver of notice of such
meeting. Each shareholder, who has in the manner above provided waived notice of
the shareholders' meeting, or who personally attends a shareholders' meeting, or
is represented thereat by a proxy authorized to appear by an instrument of
proxy, shall be conclusively presumed to have been given due notice of such
meeting. Notice of any adjourned meeting of shareholders shall not be required
to be given if the time and place thereof are announced at the meeting at which
the adjournment is taken, except as may be expressly required by law.

         Section 5. Addresses of Shareholders. The address of any shareholder
appearing on the records of the Corporation or appearing on the records
maintained by the Transfer Agent if the Corporation has appointed a Transfer
Agent shall be deemed to be the latest address of such shareholder for the class
of stock held by such shareholder.

         Section 6. Voting at Meetings.

         (a) Quorum. The holders of record of a majority of the issued and
outstanding stock of the Corporation entitled to vote at such meeting, present
in person or by proxy, shall constitute a quorum at all meetings of stockholders
for the transaction of business, except where otherwise provided by law, the
Articles of Incorporation or these By-Laws. In the absence of a quorum, any
officer entitled to preside at, or act as secretary of, such meeting shall have
the power to adjourn the meeting from time to time until a quorum shall be
constituted. At any such adjourned meeting at which a quorum shall be present,
any business may be transacted which might have been transacted at the original
meeting, but only those stockholders entitled to vote at the original meeting
shall be entitled to vote at any adjournment or adjournments thereof unless a
new record date is fixed by the Board of Directors for the adjourned meeting.

         (b) Voting Rights. Except as otherwise provided by law or by the
provisions of the Articles of Incorporation, every shareholder shall have the
right at every shareholders' meeting to one vote for each share of stock having
voting power, registered in his name on the books of the Corporation on the date
for the determination of shareholders entitled to vote, on all matters coming
before the meeting including the election of directors. At any meeting of the
shareholders, every shareholder having the right to vote shall be entitled to
vote in person, or by

                                        5
<PAGE>

proxy executed in writing by the shareholder or a duly authorized
attorney-in-fact and bearing a date not more than eleven months prior to its
execution, unless a longer time is expressly provided therein.

         (c) Required Vote. When a quorum is present at any meeting, action on a
matter (other than the election of directors) is approved if the votes cast
favoring the action exceed the votes cast opposing the action unless the Indiana
Business Corporation Law or the Articles of Incorporation require a greater
number of affirmative votes. Unless otherwise provided in the Articles of
Incorporation, directors are elected by a plurality of the votes cast by the
shares entitled to vote in the election at a meeting at which a quorum is
present.

         (d) Validity of a Vote, Consent, Waiver or Proxy Appointment. If the
name on a vote, consent, waiver, or proxy appointment corresponds to the name of
a shareholder, the Corporation if acting in good faith may accept the vote,
consent, waiver, or proxy appointment and give it effect as the act of the
shareholder. The Corporation may reject a vote, consent, waiver, or proxy
appointment if the authorized tabulation officer, acting in good faith, has a
reasonable basis for doubt about the validity of the signature, or the
signatory's authority. If so accepted or rejected, the Corporation and its
officer are not liable in damages to the shareholder for any consequences of the
rejection. Any of the Corporation's actions based on an acceptance or rejection
of a vote, consent, waiver or proxy appointment under this Section is valid
unless a court of competent jurisdiction determines otherwise.

         Section 7. Voting List. The transfer agent (or, if the Corporation has
no transfer agent, the Secretary) of the Corporation shall make before each
meeting of shareholders, a complete list of the shareholders entitled by the
Articles of Incorporation, as now or hereafter amended, to vote at such meeting,
arranged in alphabetical order, with the address and number of shares so
entitled to vote held by each shareholder. Such list shall be produced and kept
open at the time and place of the meeting of shareholders and subject to the
inspection of any shareholder during the holding of such meeting.

         Section 8. Fixing of Record Date to Determine Shareholders Entitled to
Vote. The Board of Directors may prescribe a period not exceeding seventy (70)
days prior to meetings of the shareholders, during which no transfer of stock on
the books of the Corporation may be made; or, in lieu of prohibiting the
transfer of stock may fix a day and hour not more than seventy (70) days prior
to the holding of any meeting of shareholders as the time as of which
shareholders entitled to notice of, and to vote at, such meeting shall be
determined, and all persons who are holders of record of voting stock at such
time, and no others, shall be entitled to notice of, and to vote at, such
meeting. In the absence of such a determination, such date and time shall be the
close of business on the tenth (10th) day prior to the date of such meeting. Any
determination of shareholders entitled to notice of or to vote at a shareholders
meeting is effective for any adjournment of the meeting unless the Board of
Directors fixes a new record date, which is only required if the meeting is
adjourned to a date more than one hundred twenty (120) days after the date fixed
for the original meeting.

                                        6
<PAGE>

         Section 9. Shareholder Nominations for Election of Directors or
Proposals For New Business. Any shareholder desiring to make a nomination for
the election of directors at the annual meeting of the shareholders must submit
written notice thereof to the Secretary of the Corporation not less than sixty
(60) days prior to the date of such meeting; provided, however, that in the
event that less than seventy (70) days notice or prior public disclosure of the
date of such meeting is given or made to shareholders, notice by the shareholder
to the Corporation, to be timely, must be so received not later than the close
of business on the 10th day following the day on which notice by the Corporation
of the date of such meeting was mailed to shareholders or such public disclosure
was made.

         Section 10. Consent Action by Shareholders. Any action required or
permitted to be taken at a shareholders' meeting may be taken without a meeting,
if one (1) or more written consents describing the action taken are signed by
all the shareholders entitled to vote on the action, and delivered to the
Corporation for inclusion in the minutes or filing with the corporate records.
Action taken under this section is effective when the last shareholder entitled
to vote on the action signs the consent, unless the consent specifies a
different, prior or subsequent effective date.

                                    ARTICLE V

                               Board of Directors

         Section 1. Election, Number and Term of Office. Directors shall be
elected at the annual meeting of shareholders, or, if not so elected, at a
special meeting of shareholders called for that purpose, by the holders of the
shares of stock entitled by the Articles of Incorporation to elect directors.

         The number of directors of the Corporation to be elected by the holders
of the shares of stock entitled by the Articles of Incorporation to elect
directors shall be nine (9) unless changed by amendment of this section.

         All directors elected by the holders of such shares, except in the case
of earlier resignation, removal or death, shall hold office until their
respective successors are chosen and qualified. Directors need not be
shareholders of the Corporation.

         Section 2. Vacancies. Any vacancy occurring on the Board of Directors
caused by resignation, death or other incapacity shall be filled by a majority
vote of the remaining members of the Board of Directors, until the annual
meeting of the shareholders at which the term of the class of the director whose
vacancy the new director is filling expires. If the vote of the remaining
members of the Board shall result in a tie, such vacancy, at the discretion of
the Board of Directors, may be filled by vote of the shareholders at a special
meeting called for that

                                        7
<PAGE>

purpose. No decrease in the number of directors shall have the effect of
shortening the term of any incumbent director.

         Any vacancy on the Board of Directors caused by an increase in the
number of directors shall be filled by a majority vote of the members of the
Board of Directors, and such new director's term may expire at the annual
meeting of any of the three classes of directors as may be determined by the
directors who elect such new director, the intent being to elect as nearly as
possible one-third (1/3) of the members of the Board of Directors each year.

         Section 3. Annual Meeting of Directors. The Board of Directors shall
meet each year immediately after the annual meeting of the shareholders, at the
place where such meeting of the shareholders has been held either within or
without the State of Indiana, for the purpose of organization, election of
officers, and consideration of any other business that may properly come before
the meeting. No notice of any kind to either old or new members of the Board of
Directors for such annual meeting shall be necessary.

         Section 4. Regular Meetings. Regular meetings of the Board of
Directors, if any, shall be held at such times and places, either within or
without the State of Indiana, as may be fixed by the directors. Such regular
meetings of the Board of Directors may be held without notice or upon such
notice as may be fixed by the directors.

         Section 5. Special Meetings. Special meetings of the Board of Directors
may be called by the President or by not less than a majority of the members of
the Board of Directors. Notice of the time and place, either within or without
the State of Indiana, of a special meeting shall be served upon or telephoned to
each director at least twenty-four hours, or sent by mail, telegraph, cable,
telecopy or over-night courier to each director at his usual place of business
or residence at least forty-eight hours prior to the time of the meeting.
Directors, in lieu of such notice, may sign a written waiver of notice either
before the time of the meeting, at the meeting or after the meeting. Attendance
by a director in person at any such special meeting shall constitute a waiver of
notice.

         Section 6. Conference Telephone Meetings. A member of the Board of
Directors may participate in a meeting of the Board by means of a conference
telephone or similar communications equipment by which all persons participating
in the meeting can communicate with each other, and participation by these means
constitutes presence in person at the meeting.

         Section 7. Quorum. A majority of the actual number of directors elected
and qualified, from time to time, shall be necessary to constitute a quorum for
the transaction of any business except the filling of vacancies, and the act of
a majority of the directors present at the meeting, at which a quorum is
present, shall be the act of the Board of Directors, unless the act of a greater
number is required by the Indiana Business Corporation Law, by the Articles of
Incorporation, or by these By-Laws. A director, who is present at a meeting of
the Board of Directors or a committee of the Board of Directors, at which action
on any corporate matter is

                                        8
<PAGE>

taken, shall be conclusively presumed to have assented to the action taken,
unless (a) he objects at the beginning of the meeting (or promptly upon his
arrival) to holding the meeting or transacting business at the meeting, (b) his
dissent or abstention from the action taken is entered in the minutes of the
meeting, or (c) he delivers written notice of his dissent or abstention to the
presiding officer of the meeting before its adjournment or to the Secretary of
the Corporation immediately after adjournment of the meeting. The right of
dissent or abstention is not available to a director who votes in favor of the
action taken.

         Section 8. Consent Action by Directors. Any action required or
permitted to be taken at any meeting of the Board of Directors or of any
committee thereof may be taken without a meeting, if one (1) or more written
consents describing the action taken are signed by all members of the Board of
Directors or such committee, as the case may be, and such written consent is
filed with the minutes of proceedings of the Board of Directors or committee, or
filed with the corporate records reflecting the action taken. Action taken under
this section is effective when the last director signs the consent, unless the
consent specifies a different, prior or subsequent effective date.

         Section 9. Removal of Directors. Unless otherwise provided in Articles
of Incorporation, any or all members of the Board of Directors may be removed,
with or without cause, only by the affirmative vote of a majority of the total
number of shares entitled to vote for the election of directors at a meeting
called for that purpose.

         Section 10. Resignations. Any director may resign at any time by giving
written notice to the Board of Directors, to the President or to the Secretary.
Any such resignation shall take effect upon receipt of such notice or at any
later time specified therein, and, unless otherwise specified therein, the
acceptance of such resignation shall not be necessary to make it effective.

         Section 11. Distributions. The Board of Directors shall have power,
subject to any restrictions and limitations contained in the Indiana Business
Corporation Law or in the Articles of Incorporation, to declare and pay
distributions upon the outstanding capital stock of the Corporation to its
shareholders as and when they deem expedient.

         Section 12. Fixing of Record Date to Determine Shareholders Entitled to
Receive Corporate Benefits. The Board of Directors may fix a record date,
declaration date and payment date with respect to any share dividend or
distribution to the Corporation's shareholders. If no record date is fixed for
the determination of shareholders entitled to receive payment of a distribution,
the end of the day on which the resolution of the Board of Directors declaring
such dividend is adopted shall be the record date for such determination.

         Section 13. Interest of Directors in Contracts. Any contract or other
transaction between the Corporation and any corporation in which this
Corporation owns a majority of the capital stock or between the Corporation and
any corporation which owns a majority of the capital stock of the Corporation
shall be valid and binding, notwithstanding that the directors or

                                        9
<PAGE>

officers of this Corporation are identical or that some or all of the directors
or officers, or both, are also directors or officers of such other corporation.

         Any contract or other transaction with the Corporation in which a
director of the Corporation has a direct or indirect interest is not voidable by
the Corporation solely because of the director's interest in the transaction, if
any one (1) of the following is true:

         (a) The material facts of the transaction and the director's interest
were disclosed or known to the Board of Directors or a committee of the Board of
Directors and the Board of Directors or committee authorized, approved, or
ratified the transaction; or

         (b) The material facts of the transaction and the director's interest
were disclosed or known to the shareholders entitled to vote and they
authorized, approved, or ratified the transaction; or

         (c)      The transaction was fair to the Corporation.

         A transaction is authorized, approved, or ratified if it receives the
affirmative vote of a majority of the directors on the Board of Directors or on
the committee who have no direct or indirect interest in the transaction, but it
cannot be authorized, approved or ratified by a single director. If a majority
of the directors who have no direct or indirect interest in the transaction vote
to authorize, approve or ratify the transaction, a quorum is present for the
purposes of this Section. The presence of, or a vote cast by, a director with a
direct or indirect interest in the transaction does not affect the validity of
any transaction if it is otherwise authorized, approved, or ratified as provided
in this Section.

         Shares owned by or voted under the control of a director who has a
direct or indirect interest in the transaction, and shares owned by or voted
under the control of an entity in which the director has a direct or indirect
interest, may be counted in a vote of shareholders to determine whether to
authorize, approve, or ratify a conflict of interest transaction under
Subsection (b).

         For purposes of this Section, a director of the Corporation has an
indirect interest in a transaction if:

               (i) Another entity in which the director has a material financial
          interest or in which the director is a general partner is a party to
          the transaction; or

               (ii) Another entity of which the director is a director, officer
          or trustee is a party to the transaction and the transaction is, or is
          required to be, considered by the Board of Directors of the
          Corporation.

                                       10
<PAGE>

         This Section shall not be construed to invalidate any contract or other
transaction which would otherwise be valid under the common and statutory law
applicable thereto.

         Section 14. Committees. The Board of Directors may, by resolution
adopted by a majority of the actual number of directors elected and qualified,
from time to time, designate from among its members an executive committee and
one or more other committees, each of which, to the extent provided in the
resolution, the Articles of Incorporation, or these By-Laws, may exercise all of
the authority of the Board of Directors of the Corporation. The executive
committee shall act as the nominating committee for selecting the nominees for
election as directors of the Corporation. However, no such committee has the
authority to (a) authorize distributions (except a committee may authorize or
approve a reacquisition of shares if done according to a formula or method, or
within a range, prescribed by the Board of Directors), (b) approve or propose to
shareholders action that the Indiana Business Corporation Law requires to be
approved by shareholders, (c) fill vacancies on the Board of Directors or any of
its committees, (d) amend the Articles of Incorporation, (e) adopt, amend or
repeal the By-laws, (f) approve a plan of merger not requiring shareholder
approval, or (g) authorize or approve the issuance or sale or a contract for
sale of shares, or determine the designation and relative rights, preferences,
and limitations of a class or series of shares, except the Board of Directors
may authorize a committee to take the action described in this subsection within
limits prescribed by the Board of Directors. No member of any such committee
shall continue to be a member thereof after he ceases to be a director of the
Corporation.

                                   ARTICLE VI

                                    Officers

         Section 1. Principal Officers. The principal officers of the
Corporation shall be a Chairman of the Board, a Vice Chairman, a President, a
Treasurer, a Secretary, and such Vice Presidents as may be determined from time
to time by the Board of Directors. The Corporation may also have, at the
discretion of the Board of Directors, such other subordinate officers as may be
appointed in accordance with the provisions of these By-Laws. The same
individual may hold more than one office at any time, and a single individual
may hold all of the offices at any time.

         Section 2. Election and Term of Office. The principal officers of the
Corporation shall be chosen annually by the Board of Directors at the annual
meeting thereof. Each such officer shall hold office until his successor shall
have been duly chosen and qualified, or until his death, or until he shall
resign, or shall have been removed in the manner hereinafter provided.

         Section 3. Removal. Any principal officer may be removed, either with
or without cause, at any time, by resolution adopted at any meeting of the Board
of Directors by a majority of the actual number of directors elected and
qualified from time to time.

                                       11
<PAGE>

         Section 4. Subordinate Officers. In addition to the principal officers
enumerated in Section 1 of this Article VI, the Corporation may have one or more
Assistant Treasurers, one or more Assistant Secretaries and such other officers,
agents and employees as the Board of Directors may deem necessary, each of whom
shall hold office for such period, may be removed with or without cause, have
such authority, and perform such duties as the President, or the Board of
Directors, may from time to time determine. The Board of Directors may delegate
to any principal officer the power to appoint and to remove any such subordinate
officers, agents or employees.

         Section 5. Resignations. Any officer may resign at any time by giving
written notice to the Board of Directors, to the President or to the Secretary.
Any such resignation shall take effect upon receipt of such notice or at any
later time specified therein, and, unless otherwise specified therein, the
acceptance of such resignation shall not be necessary to make it effective.

         Section 6. Vacancies. Any vacancy in any office for any cause may be
filled for the unexpired portion of the term in the manner prescribed in these
By-Laws for election or appointment to such office for such term.

         Section 7. Chairman of the Board. The Chairman of the Board, who shall
be chosen from among the directors, shall preside at all meetings of
shareholders and at all meetings of the Board of Directors. He shall perform
such other duties and have such other powers as, from time to time, may be
assigned to him by the Board of Directors.

         Section 8. Vice Chairman. The Vice Chairman, who shall be chosen from
among the directors, shall, in the absence of the Chairman of the Board preside
at all meetings of shareholders and at all meetings of the Board of Directors.
He shall perform such other duties and have such other powers as, from time to
time, may be assigned to him by the Board of Directors.

         Section 9. President. The President shall be the chief executive
officer of the Corporation and as such shall have general supervision of the
affairs of the Corporation, subject to the control of the Board of Directors. He
shall be an ex officio member of all standing committees. Subject to the control
and direction of the Board of Directors, the President may enter into any
contract or execute and deliver any instrument in the name and on behalf of the
Corporation. In general, he shall perform all duties and have all the powers
incident to the office of President, as herein defined, and all such other
duties and powers as, from time to time, may be assigned to him by the Board of
Directors. In performing all the duties incident to the office of President, the
President shall report directly to the executive committee and chairman of the
executive committee.

         Section 10. Vice Presidents. The Executive Vice Presidents, if one or
more has been appointed, and then the Vice Presidents in the order of their
seniority, unless otherwise determined by the Board of Directors, shall, in the
absence or disability of the President and

                                       12
<PAGE>

Executive Vice President, perform the duties and exercise the powers of the
President. They shall perform such other duties and have such other powers as
the President or the Board of Directors may from time to time assign.

         Section 11. Treasurer. The Treasurer shall have charge and custody of,
and be responsible for, all funds and securities of the Corporation and shall
deposit all such funds in the name of the Corporation in such banks or other
depositories as shall be selected by the Board of Directors. He shall upon
request exhibit at all reasonable times his books of account and records to any
of the directors of the Corporation during business hours at the office of the
Corporation where such books and records shall be kept; shall render upon
request by the Board of Directors a statement of the condition of the finances
of the Corporation at any meeting of the Board of Directors or at the annual
meeting of the shareholders; shall receive, and give receipt for, moneys due and
payable to the Corporation from any source whatsoever; and in general, shall
perform all duties incident to the office of Treasurer and such other duties as
from time to time may be assigned to him by the President or the Board of
Directors. The Treasurer shall give such bond, if any, for the faithful
discharge of his duties as the Board of Directors may require.

         Section 12. Secretary. The Secretary shall keep or cause to be kept in
the books provided for that purpose the minutes of the meetings of the
shareholders and of the Board of Directors; shall duly give and serve all
notices required to be given in accordance with the provisions of these By-Laws
and by the Indiana Business Corporation Law; shall be custodian of the records
and of the seal of the Corporation and see that the seal is affixed to all
documents, the execution of which on behalf of the Corporation under its seal is
duly authorized in accordance with the provisions of these By-Laws; and, in
general, shall perform all duties incident to the office of Secretary and such
other duties as may, from time to time, be assigned to him by the President or
the Board of Directors.

         Section 13. Salaries. The salaries of the principal officers shall be
fixed from time to time by the Board of Directors, and the salaries of any
subordinate officers may be fixed by the President.

         Section 14. Voting Corporation's Securities. Unless otherwise ordered
by the Board of Directors, the President and Secretary, and each of them, are
appointed attorneys and agents of the Corporation, and shall have full power and
authority in the name and on behalf of the Corporation, to attend, to act, and
to vote all stock or other securities entitled to be voted at any meetings of
security holders of corporations, or associations in which the Corporation may
hold securities, in person or by proxy, as a stockholder or otherwise, and at
such meetings shall possess and may exercise any and all rights and powers
incident to the ownership of such securities, and which as the owner thereof the
Corporation might have possessed and exercised, if present, or to consent in
writing to any action by any such other corporation or association. The Board of
Directors by resolution from time to time may confer like powers upon any other
person or persons.

                                       13
<PAGE>

                                   ARTICLE VII

                                   Amendments

         The power to make, alter, amend, or repeal these By-Laws is vested in
the Board of Directors, but the affirmative vote of a majority of the actual
number of directors elected and qualified, from time to time, shall be necessary
to effect any alteration, amendment or repeal of these By-Laws.

                                       14<PAGE>

                                                                    EXHIBIT 4.3

                         HARRY'S FARMERS MARKET, INC.
                         2000 LONG-TERM INCENTIVE PLAN

                                   ARTICLE 1
                                    PURPOSE

     1.1  GENERAL.  The purpose of the Harry's Farmers Market, Inc. 2000 Long-
          -------
Term Incentive Plan (the "Plan") is to promote the success, and enhance the
value, of Harry's Farmers Market, Inc. (the "Corporation"), by linking the
personal interests of its employees, officers, and consultants to those of the
Corporation's shareholders and by providing such persons with an incentive for
outstanding performance. The Plan is further intended to provide flexibility to
the Corporation in its ability to motivate, attract, and retain the services of
employees upon whose judgment, interest, and special effort the successful
conduct of the Corporation's operation is largely dependent. Accordingly, the
Plan permits the grant of incentive awards from time to time to selected
employees, officers or consultants.

                                   ARTICLE 2
                                EFFECTIVE DATE

     2.1  EFFECTIVE DATE.  The Plan shall be effective as of the date upon which
          --------------
it shall be approved by the Board (the "Effective Date"). However, the Plan
shall be submitted to the shareholders of the Corporation for approval within 12
months of the Board's approval thereof. No Incentive Stock Options (as defined
below) granted under the Plan may be exercised prior to approval of the Plan by
the shareholders and if the shareholders fail to approve the Plan within 12
months of the Board's approval thereof, any Incentive Stock Options previously
granted hereunder shall be automatically converted to Non-Qualified Stock
Options (as defined below) without any further act. In the discretion of the
Committee, Awards (as defined below) may be made to Covered Employees (as
defined below) that are intended to constitute qualified performance-based
compensation under Code Section 162(m). Any such Awards shall be contingent upon
the shareholders having approved the Plan.

                                   ARTICLE 3
                                  DEFINITIONS

     3.1  DEFINITIONS.  When a word or phrase appears in this Plan with the
          -----------
initial letter capitalized, and the word or phrase does not commence a sentence,
the word or phrase shall generally be given the meaning ascribed to it in this
Section or in Section 1.1 unless a clearly different meaning is required by the
context.  The following words and phrases shall have the following meanings:

          (a) "Award" means any Option, Stock Appreciation Right, Restricted
     Stock Award, Performance Share Award, Dividend Equivalent Award, or Other
<PAGE>

     Stock-Based Award, or any other right or interest relating to Stock or
     cash, granted to a Participant under the Plan.

          (b) "Award Agreement" means any written agreement, contract, or other
     instrument or document evidencing an Award.

          (c) "Board" means the Board of Directors of the Corporation.

          (d) "Cause" as a reason for a Participant's termination of employment
     shall have the meaning assigned such term in the employment agreement, if
     any, between such Participant and the Corporation or an affiliated company,
     provided, however that if there is no such employment agreement in which
     such term is defined, "Cause" shall mean any of the following acts by the
     Participant, as determined by the Board: gross neglect of duty, prolonged
     absence from duty without the consent of the Corporation, intentionally
     engaging in any activity that is in conflict with or adverse to the
     business or other interests of the Corporation, or willful misconduct,
     misfeasance or malfeasance of duty which is reasonably determined to be
     detrimental to the Corporation.

          (d) "Change of Control" means and includes the occurrence of any one
     of the following events:

              (i)  individuals who, at the Effective Date, constitute the Board
          (the "Incumbent Directors") cease for any reason to constitute at
          least a majority of the Board, provided that any person becoming a
          director after the Effective Date and whose election or nomination for
          election was approved by a vote of at least a majority of the
          Incumbent Directors then on the Board (either by a specific vote or by
          approval of the proxy statement of the Corporation in which such
          person is named as a nominee for director, without written objection
          to such nomination) shall be an Incumbent Director; provided, however,
                                                              --------  -------
          that no individual initially elected or nominated as a director of the
          Corporation as a result of an actual or threatened election contest
          (as described in Rule 14a-11 under the 1934 Act ("Election Contest")
          or other actual or threatened solicitation of proxies or consents by
          or on behalf of any "person" (as such term is defined in Section
          3(a)(9) of the 1934 Act and as used in Section 13(d)(3) and 14(d)(2)
          of the 1934 Act) other than the Board ("Proxy Contest"), including by
          reason of any agreement intended to avoid or settle any Election
          Contest or Proxy Contest, shall be deemed an Incumbent Director;

              (ii) any person becomes a "beneficial owner" (as defined in Rule
          13d-3 under the 1934 Act), directly or indirectly, of securities of
          the Corporation representing 25% or more of the combined voting power
          of the Corporation's then outstanding securities eligible to vote for
          the

                                      -2-
<PAGE>

          election of the Board (the "Company Voting Securities"); provided,
                                                                   --------
          however, that the event described in this paragraph (ii) shall not be
          -------
          deemed to be a Change of Control of the Corporation by virtue of any
          of the following acquisitions: (A) any acquisition by a person who is
          on the Effective Date the beneficial owner of 25% or more of the
          outstanding Company Voting Securities, (B) an acquisition by the
          Corporation which reduces the number of Company Voting Securities
          outstanding and thereby results in any person acquiring beneficial
          ownership of more than 25% of the outstanding Company Voting
          Securities; provided, that if after such acquisition by the
                      --------  ----
          Corporation such person becomes the beneficial owner of additional
          Company Voting Securities that increases the percentage of outstanding
          Company Voting Securities beneficially owned by such person, a Change
          of Control of the Corporation shall then occur, (C) an acquisition by
          any employee benefit plan (or related trust) sponsored or maintained
          by the Corporation or any Parent or Subsidiary, (D) an acquisition by
          an underwriter temporarily holding securities pursuant to an offering
          of such securities, or (E) an acquisition pursuant to a Non-Qualifying
          Transaction (as defined in paragraph (iii)); or

               (iii)  the consummation of a reorganization, merger,
          consolidation, statutory share exchange or similar form of corporate
          transaction involving the Corporation that requires the approval of
          the Corporation's shareholders, whether for such transaction or the
          issuance of securities in the transaction (a "Reorganization"), or the
          sale or other disposition of all or substantially all of the
          Corporation's assets to an entity that is not an affiliate of the
          Corporation (a "Sale"), unless immediately following such
          Reorganization or Sale: (A) more than 50% of the total voting power of
          (x) the corporation resulting from such Reorganization or the
          corporation which has acquired all or substantially all of the assets
          of the Corporation (in either case, the "Surviving Corporation"), or
          (y) if applicable, the ultimate parent corporation that directly or
          indirectly has beneficial ownership of 100% of the voting securities
          eligible to elect directors of the Surviving Corporation (the "Parent
          Corporation"), is represented by the Company Voting Securities that
          were outstanding immediately prior to such Reorganization or Sale (or,
          if applicable, is represented by shares into which such Company Voting
          Securities were converted pursuant to such Reorganization or Sale),
          and such voting power among the holders thereof is in substantially
          the same proportion as the voting power of such Company Voting
          Securities among the holders thereof immediately prior to the
          Reorganization or Sale, (B) no person (other than (x) the Corporation,
          (y) any employee benefit plan (or related trust) sponsored or
          maintained by the Surviving Corporation or the Parent Corporation, or
          (z) a person who immediately prior to the Reorganization or Sale was
          the beneficial owner of 25% or more of the outstanding Company Voting
          Securities) is the beneficial owner, directly or indirectly, of 25% or
          more

                                      -3-
<PAGE>

          of the total voting power of the outstanding voting securities
          eligible to elect directors of the Parent Corporation (or, if there is
          no Parent Corporation, the Surviving Corporation), and (C) at least a
          majority of the members of the board of directors of the Parent
          Corporation (or, if there is no Parent Corporation, the Surviving
          Corporation) following the consummation of the Reorganization or Sale
          were Incumbent Directors at the time of the Board's approval of the
          execution of the initial agreement providing for such Reorganization
          or Sale (any Reorganization or Sale which satisfies all of the
          criteria specified in (A), (B) and (C) above shall be deemed to be a
          "Non-Qualifying Transaction").

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

          (f) "Committee" means the committee of the Board described in Article
     4.

          (g) "Corporation" means Harry's Farmers Market, Inc., a Georgia
     corporation.

          (h) "Covered Employee" means a covered employee as defined in Code
     Section 162(m)(3).

          (i) "Disability" shall mean any illness or other physical or mental
     condition of a Participant that renders the Participant incapable of
     performing his customary and usual duties for the Corporation, or any
     medically determinable illness or other physical or mental condition
     resulting from a bodily injury, disease or mental disorder which, in the
     judgment of the Committee, is permanent and continuous in nature.  The
     Committee may require such medical or other evidence as it deems necessary
     to judge the nature and permanency of the Participant's condition.
     Notwithstanding the above, with respect to an Incentive Stock Option,
     Disability shall mean Permanent and Total Disability as defined in Section
     22(e)(3) of the Code.

          (j) "Dividend Equivalent" means a right granted to a Participant under
     Article 11.

          (k) "Effective Date" has the meaning assigned such term in Section
     2.1.

          (l) "Fair Market Value", on any date, means (i) if the Stock is listed
     on a securities exchange or is traded over the Nasdaq National or Small Cap
     Market, the closing sales price on such exchange or over such system on
     such date or, in the absence of reported sales on such date, the closing
     sales price on the immediately preceding date on which sales were reported,
     or (ii) if the Stock is

                                      -4-
<PAGE>

     not listed on a securities exchange or traded over the Nasdaq National or
     Small Cap Market, the mean between the bid and offered prices as quoted by
     Nasdaq for such date, provided that if it is determined that the fair
     market value is not properly reflected by such Nasdaq quotations, Fair
     Market Value will be determined by such other method as the Committee
     determines in good faith to be reasonable.

          (m) "Incentive Stock Option" means an Option that is intended to meet
     the requirements of Section 422 of the Code or any successor provision
     thereto.

          (n) "Non-Qualified Stock Option" means an Option that is not an
     Incentive Stock Option.

          (o) "Option" means a right granted to a Participant under Article 7 of
     the Plan to purchase Stock at a specified price during specified time
     periods.  An Option may be either an Incentive Stock Option or a Non-
     Qualified Stock Option.

          (p) "Other Stock-Based Award" means a right, granted to a Participant
     under Article 12, that relates to or is valued by reference to Stock or
     other Awards relating to Stock.

          (q) "Parent" means a corporation which owns or beneficially owns a
     majority of the outstanding voting stock or voting power of the
     Corporation. Notwithstanding the above, with respect to an Incentive Stock
     Option, Parent shall have the meaning set forth in Section 424(e) of the
     Code.

          (r) "Participant" means a person who, as an employee, officer or
     consultant of the Corporation or any Parent or Subsidiary, has been granted
     an Award under the Plan.

          (s) "Performance Share" means a right granted to a Participant under
     Article 9, to receive cash, Stock, or other Awards, the payment of which is
     contingent upon achieving certain performance goals established by the
     Committee.

          (t) "Plan" means the Harry's Farmers Market, Inc. 2000 Long-Term
     Incentive Plan, as amended from time to time.

          (u) "Restricted Stock Award" means Stock granted to a Participant
     under Article 10 that is subject to certain restrictions and to risk of
     forfeiture.

          (v) "Retirement" means a Participant's termination of employment with
     the Corporation, Parent or Subsidiary after attaining any normal or early
     retirement age specified in any pension, profit sharing or other retirement
     program sponsored by the Corporation, or, in the event of the
     inapplicability thereof with

                                      -5-
<PAGE>

     respect to the person in question, as determined by the Committee in its
     reasonable judgment.

          (w)  "Stock" means the no par value Class A common stock of the
     Corporation and such other securities of the Corporation as may be
     substituted for Stock pursuant to Article 14.

          (x)  "Stock Appreciation Right" or "SAR" means a right granted to a
     Participant under Article 8 to receive a payment equal to the difference
     between the Fair Market Value of a share of Stock as of the date of
     exercise of the SAR over the grant price of the SAR, all as determined
     pursuant to Article 8.

          (y)  "Subsidiary" means any corporation, limited liability company,
     partnership or other entity of which a majority of the outstanding voting
     stock or voting power is beneficially owned directly or indirectly by the
     Corporation. Notwithstanding the above, with respect to an Incentive Stock
     Option, Subsidiary shall have the meaning set forth in Section 424(f) of
     the Code.

          (z)  "1933 Act" means the Securities Act of 1933, as amended from time
     to time.

          (aa) "1934 Act" means the Securities Exchange Act of 1934, as amended
     from time to time.

                                   ARTICLE 4
                                ADMINISTRATION

     4.1  COMMITTEE.  The Plan shall be administered by a committee (the
          ---------
"Committee") appointed by the Board (which Committee shall consist of two or
more directors) or, at the discretion of the Board from time to time, the Plan
may be administered by the Board.  It is intended that the directors appointed
to serve on the Committee shall be "non-employee directors" (within the meaning
of Rule 16b-3 promulgated under the 1934 Act) and "outside directors" (within
the meaning of Code Section 162(m) and the regulations thereunder).  However,
the mere fact that a Committee member shall fail to qualify under either of the
foregoing requirements shall not invalidate any Award made by the Committee,
which Award is otherwise validly made under the Plan.  The members of the
Committee shall be appointed by, and may be changed at any time and from time to
time in the discretion of, the Board.  During any time that the Board is acting
as administrator of the Plan, it shall have all the powers of the Committee
hereunder, and any reference herein to the Committee (other than in this Section
4.1) shall include the Board.

     4.2  ACTION BY THE COMMITTEE.  For purposes of administering the Plan, the
          -----------------------
following rules of procedure shall govern the Committee.  A majority of the
Committee shall constitute a quorum.  The acts of a majority of the members
present at

                                      -6-
<PAGE>

any meeting at which a quorum is present, and acts approved unanimously in
writing by the members of the Committee in lieu of a meeting, shall be deemed
the acts of the Committee. Each member of the Committee is entitled to, in good
faith, rely or act upon any report or other information furnished to that member
by any officer or other employee of the Corporation or any Parent or Subsidiary,
the Corporation's independent certified public accountants, or any executive
compensation consultant or other professional retained by the Corporation to
assist in the administration of the Plan.

     4.3  AUTHORITY OF COMMITTEE.  Except as provided below, the Committee has
          ----------------------
the exclusive power, authority and discretion to:

          (a) Designate Participants;

          (b) Determine the type or types of Awards to be granted to each
     Participant;

          (c) Determine the number of Awards to be granted and the number of
     shares of Stock to which an Award will relate;

          (d) Determine the terms and conditions of any Award granted under the
     Plan, including but not limited to, the exercise price, grant price, or
     purchase price, any restrictions or limitations on the Award, any schedule
     for lapse of forfeiture restrictions or restrictions on the exercisability
     of an Award, and accelerations or waivers thereof, based in each case on
     such considerations as the Committee in its sole discretion determines;

          (e) Accelerate the vesting or lapse of restrictions of any outstanding
     Award, based in each case on such considerations as the Committee in its
     sole discretion determines;

          (f) Determine whether, to what extent, and under what circumstances an
     Award may be settled in, or the exercise price of an Award may be paid in,
     cash, Stock, other Awards, or other property, or an Award may be canceled,
     forfeited, or surrendered;

          (g) Prescribe the form of each Award Agreement, which need not be
     identical for each Participant;

          (h) Decide all other matters that must be determined in connection
     with an Award;

          (i) Establish, adopt or revise any rules and regulations as it may
     deem necessary or advisable to administer the Plan;

                                      -7-
<PAGE>

          (j) Make all other decisions and determinations that may be required
     under the Plan or as the Committee deems necessary or advisable to
     administer the Plan; and

          (k) Amend the Plan or any Award Agreement as provided herein.

     Not withstanding the above, the Board or the Committee may expressly
delegate to a special committee consisting of one or more directors who are also
officers of the Corporation some or all of the Committee's authority under
subsections (a) through (g) above with respect to those eligible Participants
who, at the time of grant are not, and are not anticipated to be become, either
(i) Covered Employees or (ii) persons subject to the insider trading
restrictions of Section 16 of the 1934 Act.

     4.4  DECISIONS BINDING.  The Committee's interpretation of the Plan, any
          -----------------
Awards granted under the Plan, any Award Agreement and all decisions and
determinations by the Committee with respect to the Plan are final, binding, and
conclusive on all parties.

                                   ARTICLE 5
                          SHARES SUBJECT TO THE PLAN

     5.1  NUMBER OF SHARES.  Subject to adjustment as provided in Section 14.1,
          ----------------
the aggregate number of shares of Stock reserved and available for Awards or
which may be used to provide a basis of measurement for or to determine the
value of an Award (such as with a Stock Appreciation Right or Performance Share
Award) shall be 250,000, of which not more than 10% may be granted as Awards of
Restricted Stock or unrestricted Stock Awards.

     5.2  LAPSED AWARDS.  To the extent that an Award is canceled, terminates,
          -------------
expires or lapses for any reason, any shares of Stock subject to the Award will
again be available for the grant of an Award under the Plan and shares subject
to SARs or other Awards settled in cash will be available for the grant of an
Award under the Plan.

     5.3  STOCK DISTRIBUTED.  Any Stock distributed pursuant to an Award may
          -----------------
consist, in whole or in part, of authorized and unissued Stock, treasury Stock
or Stock purchased on the open market.

     5.4  LIMITATION ON AWARDS.  Notwithstanding any provision in the Plan to
          --------------------
the contrary (but subject to adjustment as provided in Section 14.1), the
maximum number of shares of Stock with respect to one or more Options and/or
SARs that may be granted during any one calendar year under the Plan to any one
Participant shall be 250,000.  The maximum fair market value (measured as of the
date of grant) of any Awards other than Options and SARs that may be received by
any one Participant (less any consideration paid by the Participant for such
Award) during any one calendar year under the Plan shall be $2,000,000.

                                      -8-
<PAGE>

                                   ARTICLE 6
                                  ELIGIBILITY

     6.1  GENERAL.  Awards may be granted only to individuals who are employees,
          -------
officers or consultants of the Corporation or a Parent or Subsidiary.

                                   ARTICLE 7
                                 STOCK OPTIONS

     7.1  GENERAL.  The Committee is authorized to grant Options to Participants
          -------
on the following terms and conditions:

          (a) EXERCISE PRICE.  The exercise price per share of Stock under an
              --------------
     Option shall be determined by the Committee, provided that the exercise
     price for any Option shall not be less than the Fair Market Value as of the
     date of the grant.

          (b) TIME AND CONDITIONS OF EXERCISE.  The Committee shall determine
              -------------------------------
     the time or times at which an Option may be exercised in whole or in part.
     The Committee also shall determine the performance or other conditions, if
     any, that must be satisfied before all or part of an Option may be
     exercised.  The Committee may waive any exercise provisions at any time in
     whole or in part based upon factors as the Committee may determine in its
     sole discretion so that the Option becomes exerciseable at an earlier date.

          (c) PAYMENT.  The Committee shall determine the methods by which the
              -------
     exercise price of an Option may be paid, the form of payment, including,
     without limitation, cash, shares of Stock, or other property (including
     "cashless exercise" arrangements), and the methods by which shares of Stock
     shall be delivered or deemed to be delivered to Participants; provided,
     however, that if shares of Stock are used to pay the exercise price of an
     Option, such shares must have been held by the Participant for at least six
     months.

          (d) EVIDENCE OF GRANT.  All Options shall be evidenced by a written
              -----------------
     Award Agreement between the Corporation and the Participant.  The Award
     Agreement shall include such provisions, not inconsistent with the Plan, as
     may be specified by the Committee.

          (e) EXERCISE TERM.  In no event may any Option be exercisable for more
              -------------
     than ten years from the date of its grant.

     7.2  INCENTIVE STOCK OPTIONS.  The terms of any Incentive Stock Options
          -----------------------
granted under the Plan must comply with the following additional rules:

                                      -9-
<PAGE>

          (a) EXERCISE PRICE.  The exercise price per share of Stock shall be
              --------------
     set by the Committee, provided that the exercise price for any Incentive
     Stock Option shall not be less than the Fair Market Value as of the date of
     the grant.

          (b) EXERCISE.  In no event may any Incentive Stock Option be
              --------
     exercisable for more than ten years from the date of its grant.

          (c) LAPSE OF OPTION.  An Incentive Stock Option shall lapse under the
              ---------------
     earliest of the following circumstances; provided, however, that the
     Committee may, prior to the lapse of the Incentive Stock Option under the
     circumstances described in paragraphs (3), (4) and (5) below, provide in
     writing that the Option will extend until a later date, but if an Option is
     exercised after the dates specified in paragraphs (3), (4) and (5) below,
     it will automatically become a Non-Qualified Stock Option:

              (1) The Incentive Stock Option shall lapse as of the option
          expiration date set forth in the Award Agreement.

              (2) The Incentive Stock Option shall lapse ten years after it is
          granted, unless an earlier time is set in the Award Agreement.

              (3) If the Participant terminates employment for any reason other
          than as provided in paragraph (4) or (5) below, the Incentive Stock
          Option shall lapse, unless it is previously exercised, three months
          after the Participant's termination of employment; provided, however,
          that if the Participant's employment is terminated by the Corporation
          for Cause (as determined by the Corporation), the Incentive Stock
          Option shall (to the extent not previously exercised) lapse
          immediately.

              (4) If the Participant terminates employment by reason of his
          Disability, the Incentive Stock Option shall lapse, unless it is
          previously exercised, one year after the Participant's termination of
          employment.

              (5) If the Participant dies while employed, or during the three-
          month period described in paragraph (3) or during the one-year period
          described in paragraph (4) and before the Option otherwise lapses, the
          Option shall lapse one year after the Participant's death.  Upon the
          Participant's death, any exercisable Incentive Stock Options may be
          exercised by the Participant's beneficiary, determined in accordance
          with Section 13.6.

          Unless the exercisability of the Incentive Stock Option is accelerated
     as provided in Article 13, if a Participant exercises an Option after
     termination of employment, the Option may be exercised only with respect to
     the shares that were otherwise vested on the Participant's termination of
     employment.

                                      -10-
<PAGE>

          (d) INDIVIDUAL DOLLAR LIMITATION.  The aggregate Fair Market Value
              ----------------------------
     (determined as of the time an Award is made) of all shares of Stock with
     respect to which Incentive Stock Options are first exercisable by a
     Participant in any calendar year may not exceed $100,000.00.

          (e) TEN PERCENT OWNERS.  No Incentive Stock Option shall be granted to
              ------------------
     any individual who, at the date of grant, owns stock possessing more than
     ten percent of the total combined voting power of all classes of stock of
     the Corporation or any Parent or Subsidiary unless the exercise price per
     share of such Option is at least 110% of the Fair Market Value per share of
     Stock at the date of grant and the Option expires no later than five years
     after the date of grant.

          (f) EXPIRATION OF INCENTIVE STOCK OPTIONS.  No Award of an Incentive
              -------------------------------------
     Stock Option may be made pursuant to the Plan after the day immediately
     prior to the tenth anniversary of the Effective Date.

          (g) RIGHT TO EXERCISE.  During a Participant's lifetime, an Incentive
              -----------------
     Stock Option may be exercised only by the Participant or, in the case of
     the Participant's Disability, by the Participant's guardian or legal
     representative.

          (h) DIRECTORS.  The Committee may not grant Incentive Stock Options to
              ---------
     its directors.

                                   ARTICLE 8
                           STOCK APPRECIATION RIGHTS

     8.1  GRANT OF STOCK APPRECIATION RIGHTS.  The Committee is authorized to
          ----------------------------------
grant Stock Appreciation Rights to Participants on the following terms and
conditions:

          (a) RIGHT TO PAYMENT.  Upon the exercise of a Stock Appreciation
              ----------------
     Right, the Participant to whom it is granted has the right to receive the
     excess, if any, of:

              (1) The Fair Market Value of one share of Stock on the date of
          exercise; over

              (2) The grant price of the Stock Appreciation Right as determined
          by the Committee, which shall not be less than the Fair Market Value
          of one share of Stock on the date of grant in the case of any Stock
          Appreciation Right related to an Incentive Stock Option.

          (b) OTHER TERMS.  All awards of Stock Appreciation Rights shall be
              -----------
     evidenced by an Award Agreement.  The terms, methods of exercise, methods

                                      -11-
<PAGE>

     of settlement, form of consideration payable in settlement, and any other
     terms and conditions of any Stock Appreciation Right shall be determined by
     the Committee at the time of the grant of the Award and shall be reflected
     in the Award Agreement.

                                   ARTICLE 9
                              PERFORMANCE SHARES

     9.1  GRANT OF PERFORMANCE SHARES.  The Committee is authorized to grant
          ---------------------------
Performance Shares to Participants on such terms and conditions as may be
selected by the Committee.  The Committee shall have the complete discretion to
determine the number of Performance Shares granted to each Participant.  All
Awards of Performance Shares shall be evidenced by an Award Agreement.

     9.2  RIGHT TO PAYMENT.  A grant of Performance Shares gives the Participant
          ----------------
rights, valued as determined by the Committee, and payable to, or exercisable
by, the Participant to whom the Performance Shares are granted, in whole or in
part, as the Committee shall establish at grant or thereafter.  The Committee
shall set performance goals and other terms or conditions to payment of the
Performance Shares in its discretion which, depending on the extent to which
they are met, will determine the number and value of Performance Shares that
will be paid to the Participant.

     9.3  OTHER TERMS.  Performance Shares may be payable in cash, Stock, or
          -----------
other property, and have such other terms and conditions as determined by the
Committee and reflected in the Award Agreement.

                                  ARTICLE 10
                            RESTRICTED STOCK AWARDS

     10.1 GRANT OF RESTRICTED STOCK.  The Committee is authorized to make Awards
          -------------------------
of Restricted Stock to Participants in such amounts and subject to such terms
and conditions as may be selected by the Committee.  All Awards of Restricted
Stock shall be evidenced by a Restricted Stock Award Agreement.

     10.2 ISSUANCE AND RESTRICTIONS.  Restricted Stock shall be subject to such
          -------------------------
restrictions on transferability and other restrictions as the Committee may
impose (including, without limitation, limitations on the right to vote
Restricted Stock or the right to receive dividends on the Restricted Stock).
These restrictions may lapse separately or in combination at such times, under
such circumstances, in such installments, upon the satisfaction of performance
goals or otherwise, as the Committee determines at the time of the grant of the
Award or thereafter.

     10.3 FORFEITURE.  Except as otherwise determined by the Committee at the
          ----------
time of the grant of the Award or thereafter, upon termination of employment
during the applicable restriction period or upon failure to satisfy a
performance goal during the

                                      -12-
<PAGE>

applicable restriction period, Restricted Stock that is at that time subject to
restrictions shall be forfeited and reacquired by the Corporation; provided,
however, that the Committee may provide in any Award Agreement that restrictions
or forfeiture conditions relating to Restricted Stock will be waived in whole or
in part in the event of terminations resulting from specified causes, and the
Committee may in other cases waive in whole or in part restrictions or
forfeiture conditions relating to Restricted Stock.

     10.4 CERTIFICATES FOR RESTRICTED STOCK.  Restricted Stock granted under the
          ---------------------------------
Plan may be evidenced in such manner as the Committee shall determine.  If
certificates representing shares of Restricted Stock are registered in the name
of the Participant, certificates must bear an appropriate legend referring to
the terms, conditions, and restrictions applicable to such Restricted Stock.

                                  ARTICLE 11
                             DIVIDEND EQUIVALENTS

     11.1 GRANT OF DIVIDEND EQUIVALENTS.  The Committee is authorized to grant
          -----------------------------
Dividend Equivalents to Participants subject to such terms and conditions as may
be selected by the Committee.  Dividend Equivalents shall entitle the
Participant to receive payments equal to dividends with respect to all or a
portion of the number of shares of Stock subject to an Award, as determined by
the Committee.  The Committee may provide that Dividend Equivalents be paid or
distributed when accrued or be deemed to have been reinvested in additional
shares of Stock, or otherwise reinvested.

                                  ARTICLE 12
                           OTHER STOCK-BASED AWARDS

     12.1 GRANT OF OTHER STOCK-BASED AWARDS.  The Committee is authorized,
          ---------------------------------
subject to limitations under applicable law, to grant to Participants such other
Awards that are payable in, valued in whole or in part by reference to, or
otherwise based on or related to shares of Stock, as deemed by the Committee to
be consistent with the purposes of the Plan, including without limitation shares
of Stock awarded purely as a "bonus" and not subject to any restrictions or
conditions, convertible or exchangeable debt securities, other rights
convertible or exchangeable into shares of Stock, and Awards valued by reference
to book value of shares of Stock or the value of securities of or the
performance of specified Parents or Subsidiaries.  The Committee shall determine
the terms and conditions of such Awards.

                                      -13-
<PAGE>

                                  ARTICLE 13
                        PROVISIONS APPLICABLE TO AWARDS

     13.1 STAND-ALONE, TANDEM, AND SUBSTITUTE AWARDS.  Awards granted under the
          ------------------------------------------
Plan may, in the discretion of the Committee, be granted either alone or in
addition to, in tandem with, or in substitution for, any other Award granted
under the Plan. If an Award is granted in substitution for another Award, the
Committee may require the surrender of such other Award in consideration of the
grant of the new Award.  Awards granted in addition to or in tandem with other
Awards may be granted either at the same time as or at a different time from the
grant of such other Awards.

     13.2 EXCHANGE PROVISIONS.  The Committee may at any time offer to exchange
          -------------------
or buy out any previously granted Award for a payment in cash, Stock, or another
Award (subject to Section 14.1 and Section 15.2), based on the terms and
conditions the Committee determines and communicates to the Participant at the
time the offer is made, and after taking into account any factors deemed
relevant, including without limitation, tax, securities and accounting effects
of such an exchange.

     13.3 TERM OF AWARD.  The term of each Award shall be for the period as
          -------------
determined by the Committee, provided that in no event shall the term of any
Incentive Stock Option or a Stock Appreciation Right granted in tandem with the
Incentive Stock Option exceed a period of ten years from the date of its grant
(or, if Section 7.2(e) applies, five years from the date of its grant).

     13.4 FORM OF PAYMENT FOR AWARDS.  Subject to the terms of the Plan and any
          --------------------------
applicable law or Award Agreement, payments or transfers to be made by the
Corporation or a Parent or Subsidiary on the grant or exercise of an Award may
be made in such form as the Committee determines at or after the time of grant,
including without limitation, cash, Stock, other Awards, or other property, or
any combination, and may be made in a single payment or transfer, in
installments, or on a deferred basis, in each case determined in accordance with
rules adopted by, and at the discretion of, the Committee.

     13.5 LIMITS ON TRANSFER.  No right or interest of a Participant in any
          ------------------
unexercised or restricted Award may be pledged, encumbered, or hypothecated to
or in favor of any party other than the Corporation or a Parent or Subsidiary,
or shall be subject to any lien, obligation, or liability of such Participant to
any other party other than the Corporation or a Parent or Subsidiary.  No
unexercised or restricted Award shall be assignable or transferable by a
Participant other than by will or the laws of descent and distribution or,
except in the case of an Incentive Stock Option, pursuant to a domestic
relations order that would satisfy Section 414(p)(1)(A) of the Code if such
Section applied to an Award under the Plan; provided, however, that the
Committee may (but need not) permit other transfers where the Committee
concludes that such transferability (i) does not result in accelerated taxation,
(ii) does not cause any Option intended to be an Incentive Stock Option to fail
to be described in Code Section 422(b), and (iii) is

                                      -14-
<PAGE>

otherwise appropriate and desirable, taking into account any factors deemed
relevant, including without limitation, state or federal tax or securities laws
applicable to transferable Awards.

     13.6 BENEFICIARIES.  Notwithstanding Section 13.5, a Participant may, in
          -------------
the manner determined by the Committee, designate a beneficiary to exercise the
rights of the Participant and to receive any distribution with respect to any
Award upon the Participant's death.  A beneficiary, legal guardian, legal
representative, or other person claiming any rights under the Plan is subject to
all terms and conditions of the Plan and any Award Agreement applicable to the
Participant, except to the extent the Plan and Award Agreement otherwise
provide, and to any additional restrictions deemed necessary or appropriate by
the Committee.  If no beneficiary has been designated or survives the
Participant, payment shall be made to the Participant's estate.  Subject to the
foregoing, a beneficiary designation may be changed or revoked by a Participant
at any time provided the change or revocation is filed with the Committee.

     13.7 STOCK CERTIFICATES.  All Stock certificates delivered under the Plan
          ------------------
are subject to any stop-transfer orders and other restrictions as the Committee
deems necessary or advisable to comply with federal or state securities laws,
rules and regulations and the rules of any national securities exchange or
automated quotation system on which the Stock is listed, quoted, or traded.  The
Committee may place legends on any Stock certificate to reference restrictions
applicable to the Stock.

     13.8 ACCELERATION UPON DEATH OR DISABILITY.  Notwithstanding any other
          -------------------------------------
provision in the Plan or any Participant's Award Agreement to the contrary, upon
the Participant's death or Disability during his employment, all outstanding
Options, Stock Appreciation Rights, and other Awards in the nature of rights
that may be exercised shall become fully exercisable and all restrictions on
outstanding Awards shall lapse.  Any Option or Stock Appreciation Rights Awards
shall thereafter continue or lapse in accordance with the other provisions of
the Plan and the Award Agreement.  To the extent that this provision causes
Incentive Stock Options to exceed the dollar limitation set forth in Section
7.2(d), the excess Options shall be deemed to be Non-Qualified Stock Options.

     13.9 ACCELERATION UPON A CHANGE OF CONTROL.  Except as otherwise provided
          -------------------------------------
in the Award Agreement, upon the occurrence of a Change of Control, all
outstanding Options, Stock Appreciation Rights, and other Awards in the nature
of rights that may be exercised shall become fully exercisable and all
restrictions on outstanding Awards shall lapse; provided, however that such
acceleration will not occur if, in the opinion of the Corporation's accountants,
such acceleration would preclude the use of "pooling of interest" accounting
treatment for a Change of Control transaction that (a) would otherwise qualify
for such accounting treatment, and (b) is contingent upon qualifying for such
accounting treatment.  To the extent that this provision causes Incentive Stock
Options to exceed the dollar limitation set forth in Section 7.2(d), the excess
Options shall be deemed to be Non-Qualified Stock Options.

                                      -15-
<PAGE>

     13.10  ACCELERATION UPON CERTAIN EVENTS NOT CONSTITUTING A CHANGE OF
            -------------------------------------------------------------
CONTROL.  In the event of the occurrence of any circumstance, transaction or
-------
event not constituting a Change of Control (as defined in Section 3.1) but which
the Board deems to be, or to be reasonably likely to lead to, an effective
change in control of the Corporation of a nature that would be required to be
reported in response to Item 6(e) of Schedule 14A of the 1934 Act, the Committee
may in its sole discretion declare all outstanding Options, Stock Appreciation
Rights, and other Awards in the nature of rights that may be exercised to be
fully exercisable, and/or all restrictions on all outstanding Awards to have
lapsed, in each case, as of such date as the Committee may, in its sole
discretion, declare, which may be on or before the consummation of such
transaction or event.  To the extent that this provision causes Incentive Stock
Options to exceed the dollar limitation set forth in Section 7.2(d), the excess
Options shall be deemed to be Non-Qualified Stock Options.

     13.11  ACCELERATION FOR ANY OTHER REASON.  Regardless of whether an event
            ---------------------------------
has occurred as described in Section 13.9 or 13.10 above, the Committee may, in
its sole discretion, at any time determine that all or a portion of a
Participant's Options, Stock Appreciation Rights, and other Awards in the nature
of rights that may be exercised shall become fully or partially exercisable,
and/or that all or a part of the restrictions on all or a portion of the
outstanding Awards shall lapse, in each case, as of such date as the Committee
may, in its sole discretion, declare. The Committee may discriminate among
Participants and among Awards granted to a Participant in exercising its
discretion pursuant to this Section 13.11.

     13.12  EFFECT OF ACCELERATION.  If an Award is accelerated under Section
            ----------------------
13.9 or 13.10, the Committee may, in its sole discretion, provide (i) that the
Award will expire after a designated period of time after such acceleration to
the extent not then exercised, (ii) that the Award will be settled in cash
rather than Stock, (iii) that the Award will be assumed by another party to the
transaction giving rise to the acceleration or otherwise be equitably converted
in connection with such transaction, or (iv) any combination of the foregoing.
The Committee's determination need not be uniform and may be different for
different Participants whether or not such Participants are similarly situated.

     13.13  PERFORMANCE GOALS.  The Committee may determine that any Award
            -----------------
granted pursuant to this Plan to a Participant (including, but not limited to,
Participants who are Covered Employees) shall be determined solely on the basis
of (a) the achievement by the Corporation or a Parent or Subsidiary of a
specified target return, or target growth in return, on equity or assets, (b)
the Corporation's stock price, (c) the Corporation's total shareholder return
(stock price appreciation plus reinvested dividends) relative to a defined
comparison group or target over a specific performance period, (d) the
achievement by the Corporation or a Parent or Subsidiary, or a business unit of
any such entity, of a specified target, or target growth in, net income or
earnings per share, or (e) any combination of the goals set forth in (a) through
(d) above.  If an Award is made

                                      -16-
<PAGE>

on such basis, the Committee shall establish goals prior to the beginning of the
period for which such performance goal relates (or such later date as may be
permitted under Code Section 162(m) or the regulations thereunder), and the
Committee has the right for any reason to reduce (but not increase) the Award,
notwithstanding the achievement of a specified goal. Any payment of an Award
granted with performance goals shall be conditioned on the written certification
of the Committee in each case that the performance goals and any other material
conditions were satisfied.

     13.14  TERMINATION OF EMPLOYMENT.  Whether military, government or other
            -------------------------
service or other leave of absence shall constitute a termination of employment
shall be determined in each case by the Committee at its discretion, and any
determination by the Committee shall be final and conclusive.  A termination of
employment shall not occur (i) in a circumstance in which a Participant
transfers from the Corporation to one of its Parents or Subsidiaries, transfers
from a Parent or Subsidiary to the Corporation, or transfers from one Parent or
Subsidiary to another Parent or Subsidiary, or (ii) in the discretion of the
Committee as specified at or prior to such occurrence, in the case of a spin-off
of the Participant's employer from the Corporation or any Parent or Subsidiary.
To the extent that this provision causes Incentive Stock Options to extend
beyond three months from the date a Participant is deemed to be an employee of
the Corporation, a Parent or Subsidiary for purposes of Section 424(f) of the
Code, the Options held by such Participant shall be deemed to be Non-Qualified
Stock Options.

     13.15  LOAN PROVISIONS.  With the consent of the Committee, the Corporation
            ---------------
may make, guarantee or arrange for a loan or loans to a Participant with respect
to the exercise of any Option granted under this Plan and/or with respect to the
payment of the purchase price, if any, of any Award granted hereunder and/or
with respect to the payment by the Participant of any or all federal and/or
state income taxes due on account of the granting or exercise of any Award
hereunder.  The Committee shall have full authority to decide whether to make a
loan or loans hereunder and to determine the amount, terms and provisions of any
such loan or loans, including the interest rate to be charged in respect of any
such loan or loans, whether the loan or loans are to be made with or without
recourse against the borrower, the terms on which the loan is to be repaid and
the conditions, if any, under which the loan or loans may be forgiven.

                                  ARTICLE 14
                         CHANGES IN CAPITAL STRUCTURE

     14.1   GENERAL.  In the event of a corporate transaction involving the
            -------
Corporation (including, without limitation, any stock dividend, stock split,
extraordinary cash dividend, recapitalization, reorganization, merger,
consolidation, split-up, spin-off, combination or exchange of shares), the
authorization limits under Section 5.1 and 5.4 shall be adjusted
proportionately, and the Committee may adjust Awards to preserve the benefits or
potential benefits of the Awards.  Action by the Committee may include: (i)
adjustment of the number and kind of shares which may be delivered under the
Plan; (ii) adjustment of the number and kind of shares subject to outstanding
Awards; (iii)

                                      -17-
<PAGE>

adjustment of the exercise price of outstanding Awards; and (iv) any other
adjustments that the Committee determines to be equitable. Without limiting the
foregoing, in the event a stock dividend or stock split is declared upon the
Stock, the authorization limits under Section 5.1 and 5.4 shall be increased
proportionately, and the shares of Stock then subject to each Award shall be
increased proportionately without any change in the aggregate purchase price
therefor.

                                  ARTICLE 15
                    AMENDMENT, MODIFICATION AND TERMINATION

     15.1 AMENDMENT, MODIFICATION AND TERMINATION.  The Board or the Committee
          ---------------------------------------
may, at any time and from time to time, amend, modify or terminate the Plan
without shareholder approval; provided, however, that the Board or Committee may
condition any amendment or modification on the approval of shareholders of the
Corporation if such approval is necessary or deemed advisable with respect to
tax, securities or other applicable laws, policies or regulations.

     15.2 AWARDS PREVIOUSLY GRANTED.  At any time and from time to time, the
          -------------------------
Committee may amend, modify or terminate any outstanding Award without approval
of the Participant; provided, however, that, subject to the terms of the
applicable Award Agreement, such amendment, modification or termination shall
not, without the Participant's consent, reduce or diminish the value of such
Award determined as if the Award had been exercised, vested, cashed in or
otherwise settled on the date of such amendment or termination, and provided
further that the original term of any Option may not be extended and, except as
otherwise provided in the anti-dilution provision of the Plan, the exercise
price of any Option may not be reduced.  No termination, amendment, or
modification of the Plan shall adversely affect any Award previously granted
under the Plan, without the written consent of the Participant.

                                  ARTICLE 16
                              GENERAL PROVISIONS

     16.1 NO RIGHTS TO AWARDS.  No Participant or any eligible participant
          -------------------
shall have any claim to be granted any Award under the Plan, and neither the
Corporation nor the Committee is obligated to treat Participants or eligible
participants uniformly.

     16.2 NO STOCKHOLDER RIGHTS.  No Award gives the Participant any of the
          ---------------------
rights of a shareholder of the Corporation unless and until shares of Stock are
in fact issued to such person in connection with such Award.

     16.3 WITHHOLDING.  The Corporation or any Parent or Subsidiary shall have
          -----------
the authority and the right to deduct or withhold, or require a Participant to
remit to the Corporation, an amount sufficient to satisfy federal, state, and
local taxes (including the Participant's FICA obligation) required by law to be
withheld with respect to any taxable event arising as a result of the Plan.
With respect to withholding required upon any

                                      -18-
<PAGE>

taxable event under the Plan, the Committee may, at the time the Award is
granted or thereafter, require or permit that any such withholding requirement
be satisfied, in whole or in part, by withholding from the Award shares of Stock
having a Fair Market Value on the date of withholding equal to the minimum
amount (and not any greater amount) required to be withheld for tax purposes,
all in accordance with such procedures as the Committee establishes.

     16.4 NO RIGHT TO CONTINUED SERVICE.  Nothing in the Plan or any Award
          -----------------------------
Agreement shall interfere with or limit in any way the right of the Corporation
or any Parent or Subsidiary to terminate any Participant's employment or status
as an officer or consultant at any time, nor confer upon any Participant any
right to continue as an employee, officer or consultant of the Corporation or
any Parent or Subsidiary.

     l6.5 UNFUNDED STATUS OF AWARDS.  The Plan is intended to be an "unfunded"
          -------------------------
plan for incentive and deferred compensation.  With respect to any payments not
yet made to a Participant pursuant to an Award, nothing contained in the Plan or
any Award Agreement shall give the Participant any rights that are greater than
those of a general creditor of the Corporation or any Parent or Subsidiary.

     16.6 INDEMNIFICATION.  To the extent allowable under applicable law, each
          ---------------
member of the Committee shall be indemnified and held harmless by the
Corporation from any loss, cost, liability, or expense that may be imposed upon
or reasonably incurred by such member in connection with or resulting from any
claim, action, suit, or proceeding to which such member may be a party or in
which he may be involved by reason of any action or failure to act under the
Plan and against and from any and all amounts paid by such member in
satisfaction of judgment in such action, suit, or proceeding against him
provided he gives the Corporation an opportunity, at its own expense, to handle
and defend the same before he undertakes to handle and defend it on his own
behalf.  The foregoing right of indemnification shall not be exclusive of any
other rights of indemnification to which such persons may be entitled under the
Corporation's Articles of Incorporation or Bylaws, as a matter of law, or
otherwise, or any power that the Corporation may have to indemnify them or hold
them harmless.

     16.7 RELATIONSHIP TO OTHER BENEFITS.  No payment under the Plan shall be
          ------------------------------
taken into account in determining any benefits under any pension, retirement,
savings, profit sharing, group insurance, welfare or benefit plan of the
Corporation or any Parent or Subsidiary unless provided otherwise in such other
plan.

     16.8 EXPENSES.  The expenses of administering the Plan shall be borne by
          --------
the Corporation and its Parents or Subsidiaries.

     16.9 TITLES AND HEADINGS.  The titles and headings of the Sections in the
          -------------------
Plan are for convenience of reference only, and in the event of any conflict,
the text of the Plan, rather than such titles or headings, shall control.

                                      -19-
<PAGE>

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

     16.11  FRACTIONAL SHARES.  No fractional shares of Stock shall be issued
            -----------------
and the Committee shall determine, in its discretion, whether cash shall be
given in lieu of fractional shares or whether such fractional shares shall be
eliminated by rounding up.

     16.12  GOVERNMENT AND OTHER REGULATIONS.  The obligation of the Corporation
            --------------------------------
to make payment of awards in Stock or otherwise shall be subject to all
applicable laws, rules, and regulations, and to such approvals by government
agencies as may be required. The Corporation shall be under no obligation to
register under the 1933 Act, or any state securities act, any of the shares of
Stock issued in connection with the Plan. The shares issued in connection with
the Plan may in certain circumstances be exempt from registration under the 1933
Act, and the Corporation may restrict the transfer of such shares in such manner
as it deems advisable to ensure the availability of any such exemption.

     16.13  GOVERNING LAW.  To the extent not governed by federal law, the Plan
            --------------
and all Award Agreements shall be construed in accordance with and governed by
the laws of the State of Georgia.

     16.14  ADDITIONAL PROVISIONS.  Each Award Agreement may contain such other
            ---------------------
terms and conditions as the Committee may determine; provided that such other
terms and conditions are not inconsistent with the provisions of this Plan.

     The foregoing is hereby acknowledged as being the Harry's Farmers Market,
Inc. 2000 Long-Term Incentive Plan as adopted by the Board on April 24, 2000.

                                             HARRY'S FARMERS MARKET, INC.

                                             By: /s/ John D. Branch
                                                 ------------------------------
                                             Name: John D. Branch
                                             Title: Senior Vice President and
                                                    Chief Financial Officer

                                      -20-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00019-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00019-of-00352.parquet"}]]