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                                                                   EXHIBIT 4.1

                        MEDICAL ACTION INDUSTRIES INC.
                     1994 STOCK INCENTIVE PLAN, AS AMENDED

                             SECTION 1 DEFINITIONS

1.1 DEFINITIONS. Whenever used herein, the masculine pronoun shall be deemed
to include the feminine and the singular to include the plural, unless the
context clearly indicates otherwise, and the following capitalized words and
phrases are used herein within the meaning thereafter ascribed:

      (a) "BOARD OF DIRECTORS" means the board of directors of the Company.

      (b) "CHANGE IN CONTROL" means the first to occur of the following
events:

            (i) any person (as defined in Section 3(a)(9) of the Exchange Act
      and as used in Sections 13(d) and 14(d) thereof), excluding the Company,
      any Subsidiary and any employee benefit plan sponsored or maintained by
      the Company or any Subsidiary (including any trustee of such plan acting
      as trustee), but including 'group' as defined in Section 13(d)(3) of the
      Exchange Act (a "Person"), becomes the beneficial owner of shares of the
      Company having at least twenty (20%) percent of the total number of
      votes that may be cast for the election of directors of the Company (the
      "Voting Shares"); provided that no Change of Control will occur as a
      result of an acquisition of stock by the Company which increases,
      proportionately, the stock representing the voting power of the Company,
      and provided further that if such person or group acquires stock
      representing more than twenty percent (20%) of the voting power of the
      Company by reason of share purchases by the Company, and after such
      share purchases by the Company acquires any additional shares
      representing the voting power of the Company, then a Change in Control
      shall occur;

            (ii) the shareholders of the Company shall approve any merger or
      other business combination of the Company, sale of the Company's assets
      or combination of the foregoing transactions (a "Transaction") other
      than a Transaction involving only the Company and one or more of its
      Subsidiaries, or a Transaction immediately following which the
      shareholders of the Company immediately prior to the Transaction
      continue to have a majority of the voting power in the resulting entity
      excluding for this purpose any shareholder owning directly or indirectly
      more than ten percent (10%) of the shares of the other company involved
      in the merger; or

            (iii) within any 24-month period beginning on or after June 30,
      1994, who were directors of the Company immediately before the beginning
      of such period (the "Incumbent Directors") shall cease (for any reason
      other than death) to constitute at least a majority of the Board of
      Directors or the board of directors of any successor to the Company,
      provided that any director who was not a director as of July 1, 1994
      shall be deemed to be an Incumbent Director if such director was elected
      to the Board of Directors by, or on the recommendation of or with the
      approval of, at least two-thirds of the directors who then qualified as
      Incumbent Directors either actually or by prior operation of this clause
      (iii);

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      and provided further that any director elected to the Board of Directors
      to avoid or settle a threatened or actual proxy contest shall in no
      event be deemed to be an Incumbent Director.

      (c) "CODE" means the Internal Revenue Code of 1986, as amended.

      (d) "COMMITTEE" means the committee appointed by the Board of Directors
to administer the Plan. The Committee shall consist of at least two members of
the Board of Directors, each of whom shall be a "disinterested person", as
defined in Rule 16b-3 as promulgated under the Exchange Act.

      (e) "COMPANY" means Medical Action Industries Inc., a Delaware
corporation.

      (f) "DISABILITY" has the same meaning as provided in the long-term
disability plan or policy maintained or, if applicable, most recently
maintained, by the Company or, if applicable, any affiliate of the Company for
the Participant. If no long-term disability plan or policy was ever maintained
on behalf of the Participant or, if the determination of Disability relates to
an Incentive Stock Option, disability shall mean the condition described in
Code Section 22(e)(3), as amended from time to time. In the event of a
dispute, the determination of Disability shall be made by the Committee and
shall be supported by advice of a physician competent in the area to which
such Disability relates.

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

      (h) "FAIR MARKET VALUE" with regard to a date means the closing price at
which Stock shall have been sold on the last trading date prior to that date
as reported by the National Association of Securities Dealers Automated
Quotation System (or, if applicable, as reported by a national securities
exchange selected by the Committee on which the shares of Stock are then
actively traded) and published in The Wall Street Journal; provided that, for
purposes of granting awards other than Incentive Stock Options, Fair Market
Value of the shares of Stock may be determined by the Committee by reference
to the average market value determined over a period certain or as of
specified dates, to a tender offer price for the shares of Stock (if
settlement of an award is triggered by such an event) or to any other
reasonable measure of fair market value.

      (i) "OPTION" means a non-qualified stock option or an incentive stock
option.

      (j) "OVER 10% OWNER" means an individual who at the time an Incentive
Stock Option is granted owns Stock possessing more than 10% of the total
combined voting power of the Company or one of its Subsidiaries, determined by
applying the attribution rules of Code Section 424(d).

      (k) "PARTICIPANT" means an individual who receives a Stock Incentive
hereunder.

      (l) "PLAN" means the Medical Action Industries Inc 1994 Stock Incentive
Plan.

      (m) "STOCK" means the Company's common stock, $.001 par value.

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      (n) "STOCK INCENTIVE AGREEMENT" means an agreement between the Company
and a Participant or other documentation evidencing an award of a Stock
Incentive.

      (o) "STOCK INCENTIVE PROGRAM" means a written program established by the
Committee, pursuant to which Stock Incentives are awarded under the Plan under
uniform terms, conditions and restrictions set forth in such written program.

      (p) "STOCK INCENTIVES" means, collectively, Incentive Stock Options,
Non-Qualified Stock Options and Stock Awards.

      (q) "SUBSIDIARY" means any corporation (other than the Company) in an
unbroken chain of corporations beginning with the Company if, with respect to
Incentive Stock Options, at the time of the granting of the Option, each of
the corporations other than the last corporation in the unbroken chain owns
stock possessing 50% or more of the total combined voting power of all classes
of stock in one of the other corporations in the chain.

                      SECTION 2 THE STOCK INCENTIVE PLAN

2.1 PURPOSE OF THE PLAN. The Plan is intended to (a) provide incentive to
officers and key employees of the Company and its affiliates to stimulate
their efforts toward the continued success of the Company and to operate and
manage the business in a manner that will provide for the long-term growth and
profitability of the Company; (b) encourage stock ownership by officers and
key employees by providing them with a means to acquire a proprietary interest
in the Company, acquire shares of Stock, or to receive compensation which is
based upon appreciation in the value of Stock; and (c) provide a means of
obtaining, rewarding and retaining key personnel.

2.2 STOCK SUBJECT TO THE PLAN. Subject to adjustment in accordance with
Section 5.2, 1,350,000 shares of Stock (the "Maximum Plan Shares") are hereby
reserved exclusively for issuance pursuant to Stock Incentives. At no time
shall the Company have outstanding Stock Incentives in excess of the Maximum
Plan shares; for this purpose, the outstanding Stock Incentives and shares of
Stock issued in respect of Stock Incentives shall be computed in accordance
wit Rule 16b-3(a)(1) as promulgated under the Exchange Act. To the extent
permitted by Rule 16b-3(a)(1) as promulgated under the Exchange Act, the
shares of Stock attributable to the nonvested, unpaid, unexercised,
unconverted or otherwise unsettled portion of any Stock Incentive that is
forfeited or cancelled or expires or terminates for any reason without
becoming vested, paid, exercised, converted or otherwise settled in full shall
again be available for purposes of the Plan.

2.3 ADMINISTRATION OF THE PLAN. The Plan shall be administered by the
Committee. The Committee shall have full authority in its discretion to
determine the officers and key employees of the Company or its affiliates to
whom Stock Incentives shall be granted and the terms and provisions of Stock
Incentives subject to the Plan; provided, however, that any award of a Stock
Incentive to any employee who is also a member of the Board of Directors shall
be approved by the majority of the "disinterested persons", as defined in Rule
16b-3 as promulgated under the Exchange Act, then serving as members of the
Board of Directors, upon the recommendation of the Committee. Subject to the
provisions of the Plan, the Committee shall have full and conclusive

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authority to interpret the Plan; to prescribe, amend and rescind rules and
regulations relating to the Plan; to determine the terms and provisions of the
respective Stock Incentive Agreements and to make all other determinations
necessary or advisable for the proper administration of the Plan. The
Committee's determinations under the Plan need not be uniform and may be made
by it selectively among persons who receive, or are eligible to receive,
awards under the Plan (whether or not such persons are similarly situated).
The Committee's decisions shall be final and binding on all Participants.

2.4 ELIGIBILITY AND LIMITS. Stock Incentives may be granted only to officers
and key employees of the Company, or any affiliate of the Company; provided,
however, that directors who serve on the Committee shall not be eligible to
receive awards that are subject to Section 16 of the Exchange Act while they
are members of the Committee and that an incentive stock option may only be
granted to an employee of the Company or any Subsidiary. In the case of
incentive stock options, the aggregate Fair Market Value (determined as at the
date an incentive stock option is granted) of stock with respect to which
stock options intended to meet the requirements of Code Section 422 become
exercisable for the first time by an individual during any calendar year under
all plans of the Company and its Subsidiaries shall not exceed $100,000;
provided further, that if the limitation is exceeded, the incentive stock
option(s) which cause the limitation to be exceeded shall be treated as
non-qualified stock option(s).

                      SECTION 3 TERMS OF STOCK INCENTIVES

3.1 TERMS AND CONDITIONS OF ALL STOCK INCENTIVES.

      (a) The number of shares of Stock as to which a Stock Incentive shall be
granted shall be determined by the Committee in its sole discretion, subject
to the provisions of Section 2.2 as to the total number of shares available
for grants under the Plan.

      (b) Each Stock Incentive shall either be evidenced by a Stock Incentive
Agreement in such form and containing such terms, conditions and restrictions
as the Committee may determine to be appropriate, or be made subject to the
terms of a Stock Incentive Program, containing such terms, conditions and
restrictions as the Committee may determine to be appropriate. Each Stock
Incentive Agreement or Stock Incentive Program shall be subject to the terms
of the Plan and any provisions contained in the Stock Incentive Agreement or
Stock Incentive Program that are inconsistent with the Plan shall be null and
void.

      (c) The date a Stock Incentive is granted shall be date on which the
Committee has approved the terms and conditions of the Stock Incentive and has
determined the recipient of the Stock Incentive and the number of shares
covered by the Stock Incentive.

      (d) Each Stock Incentive Agreement or Stock Incentive Program shall
provide that, in the event of a Change in Control, the Stock Incentive shall
be cashed out on the basis of any price not greater than the highest price
paid for a share of Stock in any transaction reported by the National
Association of Securities Dealers Automated Quotation System or any national
securities exchange selected by the Committee on which the shares of Stock are
then actively traded during a specified period immediately preceding or ending
on the date of the Change in Control or offered

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for a share of Stock in any tender offer occurring during a specified period
immediately preceding or ending on the date the tender offer commenced;
provided that, in no case shall any such specified period exceed one (1) year
(the "Change in Control Price"). For purposes of this Subsection the cash-out
of a Stock Incentive shall be determined as follows:

            (i) Options shall be cashed out on the basis of the excess, if
      any, of the Change in Control Price (but not more than the Fair Market
      Value of the Stock on the date of the cash-out in the case of Incentive
      Stock Options) over the Exercise Price with or without regard to whether
      the Option may otherwise be exercisable only in part; and

            (ii) Stock Awards shall be cashed out in an amount equal to the
      Change in Control Price with or without regard to any conditions or
      restrictions otherwise applicable to any such Stock Incentive.

      (e) Any Stock Incentive may be granted in connection with all or any
portion of a previously or contemporaneously granted Stock Incentive. Exercise
or vesting of a Stock Incentive granted in connection with another Stock
Incentive may result in a pro rata surrender or cancellation of any related
Stock Incentive, as specified in the applicable Stock Incentive Agreement or
Stock Incentive Program.

      (f) Stock Incentives shall not be transferable or assignable except by
will or by the laws of descent and distribution and shall be exercisable,
during the Participant's lifetime, only by the Participant, or in the event of
the Disability of the Participant, by the legal representative of the
Participant.

3.2 TERMS AND CONDITIONS OF OPTIONS. Each Option granted under the Plan shall
be evidenced by a Stock Incentive Agreement. At the time any Option is
granted, the Committee shall determine whether the Option is to be an
incentive stock option described in Code Section 422 or a non-qualified stock
option, and the Option shall be clearly identified as to its status as an
incentive stock option or a non-qualified stock option. An incentive stock
option may only be granted within ten (10) years from the earlier of the date
the Plan is adopted or approved by the Company's stockholders.

      (a) OPTION PRICE. Subject to adjustment in accordance with Section 5.2
and the other provisions of this Section 3.2, the exercise price (the
"Exercise Price") per share of Stock purchasable under any Option shall be as
set forth in the applicable Stock Incentive Agreement, but in no event shall
it be less than the Fair Market Value on the date the Option is granted. With
respect to each grant of an incentive stock option to a Participant who is an
Over 10% Owner, the Exercise Price shall not be less than 110% of the Fair
Market Value on the date the Option is granted. The Exercise Price of an
Option may not be amended or modified after the grant of the Option, and an
Option may not be surrendered in consideration of or exchanged for a grant of
a new Option having an Exercise Price below that of an Option which was
surrendered or exchanged.

      (b) OPTION TERM. Any incentive stock option granted to a Participant who
is not an Over 10% Owner shall not be exercisable after the expiration of ten
(10) years after the date the

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Option is granted. Any incentive stock option granted to an Over 10% Owner
shall not be exercisable after the expiration of five (5) years after the date
the Option is granted. The term of any non-qualified stock option plan shall
be as specified in the applicable Stock Incentive Agreement.

      (c) PAYMENT. Payment for all shares of Stock purchased pursuant to
exercise of an Option shall be made in any form or manner authorized by the
Committee in the Stock Incentive Agreement or by amendment thereto, including,
but not limited to, cash or, if the Stock Incentive Agreement provides, (i) by
delivery to the Company of a number of shares of Stock which have been owned
by the holder for at least six (6) months prior to the date of exercising
having an aggregate Fair Market Value of not less than the product of the
Exercise Price multiplied by the number of shares the Participant intends to
purchase upon exercise of the Option on the date of delivery; (ii) in a
cashless exercise through a broker; or (iii) by having a number of shares of
Stock withheld, the Fair Market Value of which as of the date of exercise is
sufficient to satisfy the Exercise Price. In its discretion, the Committee
also may authorize (at the time an Option is granted or thereafter) Company
financing to assist the Participant as to payment of the Exercise Price on
such terms as may be offered by the Committee in its discretion. Any such
financing shall require the payment by the Participant of interest on the
amount financed at a rate not less than the "applicable federal rate" under
the Code. Payment shall be made at the time that the Option or any part
thereof is exercised, and no shares shall be issued or delivered upon exercise
of an Option until full payment has been made by the Participant. The holder
of an Option as such shall have none of the rights of a stockholder.

      (d) CONDITIONS TO THE EXERCISE OF AN OPTION. Each Option granted under
the Plan shall be exercisable by whom, at such time or times, or upon the
occurrence of such event or events, and in such amounts, as the Committee
shall specify in the Stock Incentive Agreement; provided, however, that
subsequent to the grant of an Option, the Committee, at any time before
complete termination of such Option, may accelerate the time or times at which
such Option may be exercised in whole or in part, including, without
limitation, upon a Change in Control and may permit the Participant or any
other designated person to exercise the Option, or any portion thereof, for
all or part of the remaining Option term, notwithstanding any provision of the
Stock Incentive Agreement to the contrary.

      (e) TERMINATION OF INCENTIVE STOCK OPTION. With respect to an incentive
stock option, in the event of termination of employment of a Participant, the
Option or portion thereof held by the Participant which is unexercised shall
expire, terminate, and become unexercisable no later than the expiration of
three (3) months after the date of termination of employment; provided,
however, that in the case of a holder whose termination of employment is due
to death or Disability, one (1) year shall be substituted for such three (3)
month period. For purposes of this Subsection (e), termination of employment
of the Participant shall not be deemed to have occurred if the Participant is
employed by another corporation (or a parent or subsidiary corporation of such
other corporation) which has assumed the incentive stock option of the
Participant in a transaction to which Code Section 424(a) is applicable.

      (f) SPECIAL PROVISIONS FOR CERTAIN SUBSTITUTE OPTIONS. Notwithstanding
anything to the contrary in this Section 3.2, any Option issued in
substitution for an option previously issued by another entity, which
substitution occurs in connection with a transaction to which Code Section

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424(a) is applicable, may provide for an exercise price computed in accordance
with such Code Section and the regulations thereunder and may contain such
other terms and conditions as the Committee may prescribe to cause such
substitute Option to contain as nearly as possible the same terms and
conditions (including the applicable vesting and termination provisions) as
those contained in the previously issued option being replaced thereby.

3.3 TERMS AND CONDITIONS OF STOCK AWARDS. The number of shares of Stock
subject to a Stock Award and restrictions or conditions on such shares, if
any, shall be as the Committee determines, and the certificate for such shares
shall bear evidence of any restrictions or conditions. Subsequent to the date
of the grant of the Stock Award, the Committee shall have the power to permit,
in its discretion, an acceleration of the expiration of an applicable
restriction period with respect to any part or all of the shares awarded to a
Participant. The Committee may require a cash payment from the Participant in
an amount no greater than the aggregate Fair Market Value of the shares of
Stock awarded determined at the date of grant in exchange for the grant of a
Stock Award or may grant a Stock Award without the requirement of a cash
payment. In the event that shares of Stock subject to Stock Awards are
forfeited by a Participant, such shares of Stock may again be subject to a new
Stock Award under the Plan.

3.4 TREATMENT OF AWARDS UPON TERMINATION OF EMPLOYMENT. Except as otherwise
provided by Plan Section 3.2(e), any award under this Plan to a Participant
who has terminated employment may be cancelled, accelerated, paid or
continued, as provided in the applicable Stock Incentive Agreement or Stock
Incentive Program, or, in the absence of such provision, as the Committee may
determine. The portion of any award exercisable in the event of continuation
or the amount of any payment due under a continued award may be adjusted by
the Committee to reflect the Participant's period of service from the date of
grant through the date of the Participant's termination of employment or such
other factors as the Committee determines are relevant to its decision to
continue the award.

                        SECTION 4 RESTRICTIONS ON STOCK

4.1 ESCROW OF SHARES. Any certificates representing the shares of Stock issued
under the Plan shall be issued in the Participant's name, but, if the
applicable Stock Incentive Agreement or Stock Incentive Program so provides,
the shares of Stock shall be held by a custodian designated by the Committee
(the "Custodian"). Each applicable Stock Incentive Agreement or Stock
Incentive Program providing for transfer of shares of Stock to the Custodian
shall appoint the Custodian as the attorney-in-fact for the Participant for
the term specified in the applicable Stock Incentive Agreement or Stock
Incentive Program, with full power and authority in the Participant's name,
place and stead to transfer, assign and convey to the Company any shares of
Stock held by the Custodian for such Participant, if the Participant forfeits
the shares under the terms of the applicable Stock Incentive Agreement or
Stock Incentive Program. During the period that the Custodian holds the shares
subject to this Section, the Participant shall be entitled to all rights,
except as provided in the applicable Stock Incentive Agreement or Stock
Incentive Program, applicable to shares of Stock not so held. Any dividends
declared on shares of Stock held by the Custodian shall, as the Committee may
provide in the applicable Stock Incentive Agreement or Stock Incentive
Program, be paid directly to the Participant or, in the alternative, be
retained by the Custodian or by the Company until the expiration of the term
specified in the applicable Stock

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Incentive Agreement or Stock Incentive Program and shall then be delivered,
together with any proceeds, with the shares of Stock to the Participant or to
the Company, as applicable.

4.2 RESTRICTIONS ON TRANSFER. The Participant shall not have the right to make
or permit to exist any disposition of the shares of Stock issued pursuant to
the Plan except as provided in the Plan or the applicable Stock Incentive
Agreement or Stock Incentive Program. Any disposition of the shares of Stock
issued under the Plan by the Participant not made in accordance with the Plan
or the applicable Stock Incentive Agreement or Stock Incentive Program shall
be void. The Company shall not recognize, or have the duty to recognize, any
disposition not made in accordance with the Plan and the applicable Stock
Incentive Agreement or Stock Incentive Program, and the shares so transferred
shall continue to be bound by the Plan and the applicable Stock Incentive
Agreement or Stock Incentive Program.

                         SECTION 5 GENERAL PROVISIONS

5.1 WITHHOLDING. The Company shall deduct from all cash distributions under
the Plan any taxes required to be withheld by federal, state or local
government. Whenever the Company proposes or is required to issue or transfer
shares of Stock under the Plan or upon the vesting of any Stock Award, the
Company shall have the right to require the recipient to remit to the Company
an amount sufficient to satisfy any federal, state and local withholding tax
requirements prior to the delivery of any certificate or certificates for such
shares or the vesting of such Stock Award. A Participant may pay the
withholding tax in cash, or, if the applicable Stock Incentive Agreement or
Stock Incentive Program provides, a Participant may elect to have the number
of shares of Stock he is to receive reduced by, or with respect to a Stock
Award, tender back to the Company, the smallest number of whole shares of
Stock which, when multiplied by the Fair Market Value of the shares of Stock
determined as of the Tax Date (defined below), is sufficient to satisfy
federal, state and local, if any, withholding taxes arising from exercise or
payment of a Stock Incentive (a "Withholding Election"). A Participant may
make a Withholding Election only if both of the following conditions are met:

      (a) The Withholding Election must be made on or prior to the date on
which the amount of tax required to be withheld is determined (the "Tax Date")
by executing and delivering to the Company a properly completed notice of
Withholding Election as prescribed by the Committee; and

      (b) Any Withholding Election made will be irrevocable except on six
months advance written notice delivered to the Company; however, the Committee
may in its sole discretion disapprove and give no effect to the Withholding
Election.

5.2 CHANGES IN CAPITALIZATION; MERGER; LIQUIDATION.

      (a) The number of shares of Stock reserved for the grant of Options and
Stock Awards; the number of shares of Stock reserved for issuance upon the
exercise or payment, as applicable, of each outstanding Option, and upon
vesting or grant, as applicable, of each Stock Award; the Exercise Price of
each outstanding Option shall be proportionately adjusted for any increase or
decrease in the number of issued shares of Stock resulting from a subdivision
or combination of

<PAGE>

shares or the payment of a stock dividend in shares of Stock to holders of
outstanding shares of Stock or any other increase or decrease in the number of
shares of Stock outstanding effected without receipt of consideration by the
Company.

      (b) In the event of a merger, consolidation or other reorganization of
the Company or tender offer for shares of Stock, the Committee may make such
adjustments with respect to awards and take such other action as it deems
necessary or appropriate to reflect such merger, consolidation, reorganization
or tender offer, including, without limitation, the substitution of new
awards, or the adjustment of outstanding awards, the acceleration of awards or
the removal of restrictions on outstanding awards. Any adjustment pursuant to
this Section 5.2 may provide, in the Committee's discretion, for the
elimination without payment therefor of any fractional shares that might
otherwise become subject to any Stock Incentive, but shall not otherwise
diminish the then value of the Stock Incentive.

      (c) The existence of the Plan and the Stock Incentives granted pursuant
to the Plan shall not affect in any way the right or power of the Company to
make or authorize any adjustment, reclassification, reorganization or other
change in its capital or business structure, any merger or consolidation of
the Company, any issue of debt or equity securities having preference or
priorities as to the Stock or the rights thereof, the dissolution or
liquidation of the Company, any sale or transfer of all or any part of its
business or assets, or any other corporate act or proceeding.

5.3 CASH AWARDS. The Committee may, at any time and in its discretion, grant
to any holder of a Stock Incentive the right to receive, at such times and in
such amounts as determined by the Committee in its discretion, a cash amount
which is intended to reimburse such person for all or a portion of the
federal, state and local income taxes imposed upon such person as a
consequence of the receipt of the Stock Incentive or the exercise of rights
thereunder.

5.4 COMPLIANCE WITH CODE. All incentive stock options to be granted hereunder
are intended to comply with Code Section 422, and all provisions of the Plan
and all incentive stock options granted hereunder shall be construed in such
manner as to effectuate that intent.

5.5 RIGHT TO TERMINATE EMPLOYMENT. Nothing in the Plan or in any Stock
Incentive shall confer upon any Participant the right to continue as an
employee or officer of the Company or any of its affiliates or affect the
right of the Company or any of its affiliates to terminate the Participant's
employment at any time.

5.6 NON-ALIENATION OF BENEFITS. Other than as specifically provided with
regard to the death of a Participant, no benefit under the Plan shall be
subject in any manner to anticipation, alienation, sale, transfer, assignment,
pledge, encumbrance or charge; and any attempt to do so shall be void. No such
benefit shall, prior to receipt by the Participant, be in any manner liable
for or subject to the debts, contracts, liabilities, engagements or torts of
the Participant.

5.7 LISTING AND LEGAL COMPLIANCE. The Committee may suspend the exercise or
payment of any Stock Incentive so long as it determines that securities
exchange listing or registration or qualification under any securities laws is
required in connection therewith and has not been completed on terms
acceptable to the Committee.

<PAGE>

5.8 TERMINATION AND AMENDMENT OF THE PLAN. The Board of Directors at any time
may amend or terminate the Plan without stockholder approval; provided,
however, that the Board of Directors may condition any amendment on the
approval of stockholders of the Company if such approval is necessary or
advisable with respect to tax, securities or other applicable laws. No such
termination or amendment without the consent of the holder of a Stock
Incentive shall adversely affect the rights of the Participant under such
Stock Incentive.

5.9 STOCKHOLDER APPROVAL. The Plan shall be submitted to the stockholders of
the Company for their approval within twelve (12) months before or after the
adoption of the Plan by the Board of Directors of the Company. If such
approval is not obtained, any Stock Incentive granted hereunder shall be void.

5.10 CHOICE OF LAW. The laws of the State of Delaware shall govern the Plan,
to the extent not preempted by federal law.

5.11 EFFECTIVE DATE OF PLAN. The Plan shall become effective upon the date the
Plan is approved by the stockholders of the Company and shall terminate on
August 9, 2009.<PAGE>
                                                                     EXHIBIT 4.1

         THIS NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF SECTION 2.05 OF
THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE
DEPOSITARY NAMED BELOW OR A NOMINEE OF THE DEPOSITARY. THIS NOTE IS NOT
EXCHANGEABLE FOR NOTES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE
DEPOSITARY OR ITS NOMINEE EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE
INDENTURE, AND NO TRANSFER OF THIS NOTE (OTHER THAN A TRANSFER OF THIS NOTE AS A
WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE
DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY) MAY BE
REGISTERED EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

         UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (THE "DEPOSITARY"), TO THE
COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND ANY
PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

                              THE COCA-COLA COMPANY

                          4.00% Notes due June 1, 2005

No. 1                                                            $______________

CUSIP No. 191216 AJ 9

         THE COCA-COLA COMPANY, a Delaware corporation (hereinafter called the
"Company", which term includes any successor corporation under the Indenture
hereinafter referred to), for value received, hereby promises to pay to CEDE &
CO., or its registered assigns, the principal sum of ______________ United
States Dollars (U.S.$______________) on June 1, 2005 and to pay interest thereon
from March 8, 2002, or from the most recent Interest Payment Date to which
interest has been paid or duly provided for, semi-annually on June 1 and
December 1 in each year, commencing December 1, 2002 at the rate of 4.00% per
annum (calculated on the basis of a 360-day year comprised of twelve 30-day
months, rounded to the nearest cent), until the principal hereof is paid or made
available for payment. The interest so payable, and punctually

<PAGE>

paid or duly provided for, on any Interest Payment Date will, as provided in
such Indenture, be paid to the Person in whose name this Security (or one or
more Predecessor Securities) is registered at the close of business on the
Regular Record Date for such interest, which shall be the May 15 or November 15
(whether or not a Business Day), as the case may be, next preceding such
Interest Payment Date. Any such interest which is payable but is not so
punctually paid or duly provided for will forthwith cease to be payable to the
Holder on such Regular Record Date and may either be paid to the Person in whose
name this Security (or one or more Predecessor Securities) is registered at the
close of business on a Special Record Date for the payment of such Defaulted
Interest to be fixed by the Trustee, notice whereof shall be given to Holders of
Securities of this Series not less than 10 days prior to such Special Record
Date, or be paid at any time in any other lawful manner not inconsistent with
the requirements of any securities exchange on which the Securities of this
Series may be listed, and upon such notice as may be required by such exchange,
all as more fully provided in said Indenture.

         If either a date for payment of principal or interest on this Security
or the Maturity of this Security falls on a day that is not a Business Day, the
related payment of principal or interest will be made on the next succeeding
Business Day as if made on the date the payment was due. No interest will accrue
on any amounts payable for the period from and after the date for payment of
principal of or interest on this Security or the Maturity of this Security
provided such payment is made on such next succeeding Business Day. For this
purpose, "Business Day" means any day which is a day on which commercial banks
settle payments and are open for general business in The City of New York.

         Payment of the principal of and interest on this Security will be made
at the office or agency of the Company maintained for that purpose in the
Borough of Manhattan, The City of New York, New York in such coin or currency of
the United States of America as at the time of payment is legal tender for
payment of public and private debts; provided, however, that at the option of
the Company payment of interest may be made by check drawn upon any Paying Agent
and mailed on or prior to an Interest Payment Date to the address of the Person
entitled thereto as such address shall appear in the Securities Register, or,
upon written application by the Holder to the Securities Registrar setting forth
wire instructions not later than the relevant Record Date, by wire transfer to a
Dollar account.

         Reference is hereby made to the further provisions of this Security set
forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

         Unless the certificate of authentication hereon has been executed by
the Trustee referred to on the reverse hereof, directly or through an
authenticating agent, by the manual signature of an authorized officer, this
Security shall not be entitled to any benefit under the Indenture or be valid or
obligatory for any purpose.

                                      -2-

<PAGE>

         IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed under its corporate seal.

Dated: March 8, 2002

                                       THE COCA-COLA COMPANY

                                       By:
                                          --------------------------------------
                                          Name: David M. Taggart
                                          Title: Vice President and Treasurer

                                       [Seal]

Attest:

---------------------------------
Name: Susan E. Shaw
Title: Secretary

                    (Trustee's Certificate of Authentication)

         This is one of the Securities of the Series provided for in the
within-mentioned Indenture.

                                       BANKERS TRUST COMPANY,
                                       as Trustee

                                       By:
                                          --------------------------------------
                                          Authorized Officer

                                      -3-

<PAGE>

                                    [Reverse]

         This Note (as defined herein) is one of a duly authorized issue of
debentures, notes or other evidences of indebtedness of the Company (herein
called the "Securities"), issued and to be issued in one or more Series under an
Indenture, dated as of April 26, 1988, as amended and supplemented by that First
Supplemental Indenture dated as of February 24, 1992 (as so amended and
supplemented, herein called the "Indenture"), between the Company and Bankers
Trust Company, as Trustee (herein called the "Trustee", which term includes any
successor trustee under the Indenture), to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective
rights, limitations of rights, duties and immunities thereunder of the Company,
the Trustee and the Holders of the Securities and of the terms upon which the
Securities are, and are to be, authenticated and delivered. The Securities may
be issued in one or more Series, which different Series may be issued in various
aggregate principal amounts, may mature at different times, may bear interest
(if any) at different rates, may be denominated and bear interest, if any, in
Dollars or in a Foreign Currency, may be subject to different redemption
provisions (if any), may be subject to different sinking, purchase or analogous
funds (if any), may be subject to different covenants and Events of Default and
may otherwise vary as in the Indenture provided. This Security is one of a
Series of Securities of the Company designated as set forth on the face hereof
(herein called the "Notes"), limited in aggregate principal amount to
$500,000,000.

         No sinking fund is provided for the Notes.

         In the event of a deposit or withdrawal of an interest in this Note,
including an exchange, redemption or transfer of this Note in part only, the
Trustee, as custodian of the Depositary, shall make an adjustment on its records
to reflect such deposit or withdrawal in accordance with the rules and
procedures of The Depository Trust Company applicable to, and as in effect at
the time of, such transaction.

         If an Event of Default with respect to the Notes shall occur and be
continuing, the principal of the Notes may be declared due and payable in the
manner and with the effect provided in the Indenture. Upon payment (i) of the
amount of principal so declared due and payable and (ii) of interest on any
overdue principal and overdue interest (in each case to the extent that the
payment of such interest shall be legally enforceable), all of the Company's
obligations in respect of the payment of such principal of and interest, if any,
on the Notes shall terminate.

         The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each Series under the
Indenture at any time by the Company and the Trustee with the consent of the
Holders of not less than a majority in aggregate principal amount of the
Securities at the time outstanding of each Series to be affected by such
amendment or modification. The Indenture also contains provisions permitting the
Holders of specified percentages in aggregate principal amount

                                      R-1

<PAGE>

of the Securities of each Series at the time outstanding, on behalf of the
Holders of all Securities of such Series, to waive compliance by the Company
with certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of
this Note shall be conclusive and binding upon such Holder and upon all future
Holders of this Note and of any Note issued upon the registration of transfer
hereof or in exchange herefor or in lieu hereof, whether or not notation of such
consent or waiver is made upon this Note. The Indenture contains provisions
setting forth certain conditions to the institution of proceedings by Holders of
Securities with respect to the Indenture or for any remedy under the Indenture.
Section 12.01(a) of the Indenture also contains provisions applicable to the
Notes relating to the Company's ability to discharge its obligations with
respect to the Notes and under the Indenture with respect to the Notes, upon the
deposit of money, U.S. Government Obligations or other government obligations,
in an amount sufficient to pay and discharge the principal of and interest on
the Notes to the Maturity of the Note, in certain specified circumstances. The
lien and sale and lease back provisions described in Sections 5.03 and 5.04 of
the Indenture will not be applicable to the Notes.

         Subject to the next preceding sentence hereof, no reference herein to
the Indenture and no provision of this Note or of the Indenture shall alter or
impair the obligation of the Company, which is absolute and unconditional, to
pay the principal of and interest on this Note at the times, place and rate, and
in the coin or currency, herein prescribed.

         As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Note is registrable in the Securities Register,
upon surrender of this Security for registration of transfer at the office or
agency of the Company in any place where the principal of and interest on this
Security are payable, duly endorsed, or accompanied by a written instrument of
transfer in form satisfactory to the Company duly executed, by the Holder hereof
or his attorney duly authorized in writing, and thereupon one or more new Notes,
of authorized denominations and for the same aggregate principal amount, will be
issued to the designated transferee or transferees.

         The Notes are issuable only in registered form without coupons in
denominations of $1,000 and any integral multiple thereof. As provided in the
Indenture and subject to certain limitations therein set forth, this Note is
exchangeable for a like aggregate principal amount of Notes of different
authorized denominations, as requested by the Holder surrendering the same.

         No service charge shall be made for any such registration of transfer
or exchange, but the Company may require payment of a sum sufficient to cover
any tax or other governmental charge payable in connection therewith.

         The Company shall pay additional amounts ("Additional Amounts") to a
beneficial owner of this Note that is a non-United States person in order to
ensure that every net payment with respect to this Note will not be less, due to
payment of U.S. withholding tax, than the amount then due and payable. For this
purpose, a "net payment" on this Note means a payment by the Company or a Paying
Agent, including payment of

                                      R-2

<PAGE>

principal and interest, after deduction for any present or future tax,
assessment or other governmental charge of the United States. These Additional
Amounts will constitute additional interest on this Note.

         The Company shall not be required to pay Additional Amounts, however,
in any of the circumstances described in items (1) through (14) below.

         (1)      Additional Amounts will not be payable if a payment on this
Note is reduced as a result of any tax, assessment or other governmental charge
that is imposed or withheld solely by reason of the Holder or the beneficial
owner:
                  (a)      having a relationship with the United States as a
         citizen, resident or otherwise;
                  (b)      having had such a relationship in the past; or
                  (c)      being considered as having had such a relationship.

         (2)      Additional Amounts will not be payable if a payment on this
Note is reduced as a result of any tax, assessment or other governmental charge
that is imposed or withheld solely by reason of the Holder or the beneficial
owner:
                  (a)      being treated as present in or engaged in a trade or
         business in the United States;
                  (b)      being treated as having been present in or engaged in
         a trade or business in the United States in the past; or
                  (c)      having or having had a permanent establishment in the
         United States.

         (3)      Additional Amounts will not be payable if a payment on this
Note is reduced as a result of any tax, assessment or other governmental charge
that is imposed or withheld solely by reason of the Holder or the beneficial
owner being or having been a:
                  (a)      personal holding company;
                  (b)      foreign personal holding company;
                  (c)      foreign private foundation or other foreign
         tax-exempt organization;
                  (d)      passive foreign investment company;
                  (e)      controlled foreign corporation; or
                  (f)      corporation which has accumulated earnings to avoid
         United States federal income tax.

         (4)      Additional Amounts will not be payable if a payment on this
Note is reduced as a result of any tax, assessment or other governmental charge
that is imposed or withheld solely by reason of the Holder or the beneficial
owner (a) owning or having owned, actually or constructively, 10 percent or more
of the total combined voting power of all classes of stock of the Company
entitled to vote or (b) being a bank which acquired this Note in consideration
of an Extension of Credit made pursuant to a loan agreement entered into in the
ordinary course of business.

                                      R-3

<PAGE>

For purposes of items (1) through (4) above, "beneficial owner" means a
fiduciary, settlor, beneficiary, member or shareholder of the holder if the
holder is an estate, trust, partnership, limited liability company, corporation
or other entity, or a person holding a power over an estate or trust
administered by a fiduciary holder.

         (5)      Additional Amounts will not be payable to any Holder of this
Note that is a:
                  (a)      fiduciary;
                  (b)      partnership;
                  (c)      limited liability company; or
                  (d)      other fiscally transparent entity

or that is not the sole beneficial owner of this Note, or any portion of this
Note to the extent that a beneficiary or settlor in relation to the fiduciary,
or a beneficial owner or member of the partnership, limited liability company or
other fiscally transparent entity, would not have been entitled to the payment
of an Additional Amount had the beneficiary, settlor, beneficial owner or member
received directly its beneficial or distributive share of the payment.

         (6)      Additional Amounts will not be payable if a payment on this
Note is reduced as a result of any tax, assessment or other governmental charge
that is imposed or withheld solely by reason of the failure of the beneficial
owner or any other person to comply with applicable certification,
identification, documentation or other information reporting requirements. This
exception to the obligation to pay Additional Amounts will only apply if
compliance with such reporting requirements is required by statute or regulation
of the United States or by an applicable income tax treaty to which the United
States is a party as a precondition to exemption from such tax, assessment or
other governmental charge.

         (7)      Additional Amounts will not be payable if a payment on this
Note is reduced as a result of any tax, assessment or other governmental charge
that is collected or imposed by any method other than by withholding from a
payment on this Note by the Company or a Paying Agent.

         (8)      Additional Amounts will not be payable if a payment on this
Note is reduced as a result of any tax, assessment or other governmental charge
that is imposed or withheld by reason of a change in law, regulation, or
administrative or judicial interpretation that becomes effective more than 15
days after the payment becomes due or is duly provided for, whichever occurs
later.

         (9)      Additional Amounts will not be payable if a payment on this
Note is reduced as a result of any tax, assessment or other governmental charge
that is imposed or withheld by reason of the presentation by the beneficial
owner of this Note for payment more than 30 days after the date on which such
payment becomes due or is duly provided for, whichever occurs later.

                                      R-4

<PAGE>

         (10)     Additional Amounts will not be payable if a payment on this
Note is reduced as a result of any:
                  (a)      estate tax;
                  (b)      inheritance tax;
                  (c)      gift tax;
                  (d)      sales tax;
                  (e)      excise tax;
                  (f)      transfer tax;
                  (g)      wealth tax;
                  (h)      personal property tax; or
                  (i)      any similar tax, assessment or other governmental
         charge.

         (11)     Additional Amounts will not be payable if a payment on this
Note is reduced as a result of any tax, assessment, or other governmental charge
required to be withheld by any Paying Agent from a payment of principal or
interest on this Note if such payment can be made without such withholding by
any other Paying Agent.

         (12)     Additional Amounts will not be payable where withholding is
imposed on a payment to an individual and is required to be made pursuant to any
European Union Directive on the taxation of savings implementing the conclusions
of the ECOFIN Council meeting of November 26-27, 2000 or any law implementing or
complying with, or introduced in order to conform to, such Directive.

         (13)     Additional Amounts will not be payable on a Note presented for
payment by or on behalf of a beneficial owner who would have been able to avoid
such withholding or deduction by presenting the relevant Note to another Paying
Agent in a member state of the European Union.

         (14)     Additional Amounts will not be payable if a payment on this
Note is reduced as a result of any combination of items (1) through (13) above.

         Except as specifically provided herein, the Company shall not be
required to make any payment of any tax, assessment or other governmental charge
imposed by any government or a political subdivision or taxing authority of such
government.

         As used in this Note, "United States person" means (i) any individual
who is a citizen or resident of the United States; (ii) any corporation,
partnership or other entity created or organized in or under the laws of the
United States; (iii) any estate if the income of such estate falls within the
federal income tax jurisdiction of the United States regardless of the source of
such income; and (iv) a trust (a) that validly elects to be treated as a United
States person for federal income tax purposes or (b)(1) the administration over
which a United States court can exercise primary supervision and (2) all of the
substantial decisions over which one or more United States persons have the
authority to control. Additionally, "non-United States person" means a person
who is not a United States person, and "United States" means the United States
of America,

                                      R-5

<PAGE>

including any states or commonwealths and the District of Columbia, together
with its territories, its possessions and other areas within its jurisdiction.

         The Company may, at its option, redeem the Notes as a whole, but not in
part, for a Redemption Price equal to 100% of the principal amount of the Notes,
together with accrued interest to the Redemption Date, if either:

         (1)(a) the Company becomes or will become obligated to pay Additional
Amounts; and (b) the obligation to pay Additional Amounts arises as a result of
any change in the laws, regulations or rulings of the United States, or an
official position regarding the application or interpretation of such laws,
regulations or rulings, which change is announced or becomes effective on or
after March 8, 2002; or

         (2)(a) any act is taken by a taxing authority of the United States on
or after March 8, 2002, whether or not such act is taken in relation to the
Company or any affiliate, that results in a substantial probability that the
Company will or may be required to pay Additional Amounts; and (b) the Company
receives an opinion of reputable tax counsel to the effect that an act taken by
a taxing authority of the United States results in a substantial probability
that the Company will or may be required to pay Additional Amounts with respect
to the Notes, and delivers to the Trustee an Officers' Certificate, stating that
based on such opinion the Company is entitled to redeem the Notes pursuant to
the terms hereof.

         The Company, the Trustee and any agent of the Company or the Trustee
may treat the Person in whose name this Note is registered as the owner hereof
for all purposes, whether or not this Note is overdue, and neither the Company,
the Trustee nor any such agent shall be affected by notice to the contrary.

         All terms used in this Note which are defined in the Indenture shall
have the meanings assigned to them in the Indenture. The Notes are governed by
the laws of the State of New York.

                                      R-6

<PAGE>

                                  ABBREVIATIONS

         The following abbreviations, when used in the inscription of the face
of this Note, shall be construed as though they were written out in full
according to applicable laws or regulations:

         TEN COM           -        as tenants in common
         TEN ENT           -        as tenants by the entireties (Cust)
         JT TEN            -        as joint tenants with right of survivorship
                                    and not as tenants in common

         UNIF GIFT MIN ACT -        _________________ Custodian _____________
                                                                   (Minor)
                                  under Uniform Gifts to Minors Act__________
                                                                     (State)

         Additional abbreviations may also be used though not in the above list.

                                      R-7

<PAGE>

                               FORM OF ASSIGNMENT

         For value received ________________ hereby sell(s), assign(s) and
transfer(s) unto ________________ (Please insert social security or other
identifying number of assignee) the within Note, and hereby irrevocably
constitutes and appoints ____________________ as attorney to transfer the said
Note on the books of the Company, with full power of substitution in the
premises.

Dated:

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

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

                                       Signature(s)

                                       Signature(s) must be guaranteed by an
                                       Eligible Guarantor Institution with
                                       membership in an approved signature
                                       guarantee program pursuant to Rule
                                       17Ad-15 under the Securities Exchange
                                       Act of 1934.

                                      R-8

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