Document:

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                                                                    Exhibit 10.2

                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT (this "Agreement") is made and entered into
as of this 25th day of July, 2000, by and between Classic Bancshares, Inc. (the
"Company") and Lisah M. Frazier (the "Employee").

         WHEREAS, the Employee is currently serving as the Senior Vice President
and Chief Financial Officer of the Company and of its wholly-owned subsidiary,
Classic Bank (the "Bank"); and

         WHEREAS, the Employee has an existing change in control severance
agreement with the Bank, dated as of December 27, 1995 (the "Severance
Agreement"), which the Employee is willing to terminate in consideration of
this Agreement becoming effective; and

         WHEREAS, the board of directors of the Company (the "Board of
Directors") believes it is in the best interests of the Company and its
subsidiaries to enter into this Agreement with the Employee in order to assure
continuity of management and to reinforce and encourage the continued attention
and dedication of the Employee to her assigned duties without distraction in the
face of potentially disruptive circumstances arising from the possibility of a
change in control of the Company or the Bank, although no such change is now
contemplated; and

         WHEREAS, the Board of Directors has approved and authorized the
execution of this Agreement with the Employee to take effect as stated in
Section 2 hereof;

         NOW, THEREFORE, in consideration of the foregoing and of the respective
covenants and agreements of the parties herein, it is AGREED as follows:

         1.  DEFINITIONS.

                  (a) The term "Change in Control" means the occurrence of any
one of the following events: (1) an event of a nature that results in an
acquisition of control of the Company or the Bank within the meaning of the Bank
Holding Company Act or the Change in Bank Control Act and applicable regulations
thereunder (or any successor statute or regulation); (2) an event with respect
to the Company that would be required to be reported in response to Item 1 of
the Current Report on Form 8-K, as in effect on the date of this Agreement,
pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 (the
"Exchange Act"); (3) any person (as the term is used in Sections 13(d) and 14(d)
of the Exchange Act) is or becomes the beneficial owner (as defined in Rule
13d-3 under the Exchange Act) directly or indirectly of securities of the
Company or the Bank representing 20% or more of the combined voting power of the
Company's or the Bank's outstanding securities; (4) individuals who are members
of the Board of Directors of the Company as of the date of this Agreement (the
"Incumbent Board") cease for any reason to constitute at least a majority
thereof, PROVIDED THAT any person becoming a director subsequent to the date of
this Agreement whose election was approved by a vote of at least three-

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quarters of the directors comprising the Incumbent Board, or whose nomination
for election by the Company's stockholders was approved by the nominating
committee serving under the Incumbent Board, shall be considered a member of the
Incumbent Board; (5) consummation of a reorganization, merger, consolidation or
similar transaction in which the Company is not the resulting entity; (6)
consummation of a reorganization, merger, consolidation or similar transaction
in which the Company is the resulting entity and at the completion of which the
stockholders of the Company who were stockholders of the Company immediately
prior to the transaction hold less than 60% of the outstanding stock of the
Company immediately after consummation of the transaction; or (7) a sale of all
or substantially all of the assets of the Company or a transaction or related
transactions at the conclusion of which all or substantially all of the assets
of the Bank (i) are not directly or indirectly held by the Company or (ii) are
directly or indirectly held by the Company but the stockholders of the Company
immediately prior to the transaction or related transactions hold less than 60%
of the outstanding stock of the Company immediately after the transaction or
related transactions; PROVIDED THAT the term "Change in Control" shall not
include an acquisition of securities by an employee benefit plan of the Company
or any of its subsidiaries. In the application of regulations under the Bank
Holding Company Act or the Change in Bank Control Act to a determination of a
Change in Control under this Agreement, determinations to be made by the
applicable federal banking regulator under such regulations shall be made by the
Board of Directors.

                  (b) The term "Consolidated Subsidiaries" means any subsidiary
or subsidiaries of the Company (or its successors) that are part of the
consolidated group of the Company (or its successors) for federal income tax
reporting (the "Consolidated Group").

                  (c) The term "Date of Termination" means the date upon which
the Employee's employment with the Company or the Bank or both ceases, as
specified in a notice of termination pursuant to Section 8 of this Agreement.

                  (d) The term "Effective Date" means April 1, 2000.

                  (e) The term "Involuntarily Termination" means the termination
of the employment of Employee (i) by either the Company or the Bank or both
without her express written consent; or (ii) by the Employee by reason of a
material diminution of or interference with her duties, responsibilities or
benefits, including (without limitation) any of the following actions unless
consented to in writing by the Employee: (1) a change in the principal workplace
of the Employee to a location outside of a 30 mile radius from the Bank's
headquarters as of the date hereof; (2) a material demotion of the Employee; (3)
a material reduction in the number or seniority of personnel reporting to the
Employee or a material reduction in the frequency with which, or in the nature
of the matters with respect to which, such personnel are to report to the
Employee, other than as part of a Bank- or Company-wide reduction in staff; (4)
a reduction in the Employee's salary or a material adverse change in the
Employee's perquisites, benefits, contingent benefits or vacation, other than as
part of an overall program applied uniformly and with equitable effect to all
members of the senior management of the Bank or the Company; (5) a material
permanent increase in the required hours of work or the workload of the
Employee; or (6) the failure of the Board of Directors (or a board of directors
of any successor of the

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Company) to elect her as Senior Vice President and Chief Financial Officer of
the Company (or any successor of the Company) or any action by the Board of
Directors (or the board of directors of any successor of the Company) removing
her from any of such offices, or the failure of the board of directors of the
Bank (or any successor of the Bank) to elect her as Senior Vice President and
Chief Financial Officer of the Bank (or any successor of the Bank) or any action
by such board (or the board of any successor of the Bank) removing her from any
of such offices. The term "Involuntary Termination" does not include Termination
for Cause or termination of employment due to death or permanent disability or
suspension or temporary or permanent prohibition from participation in the
conduct of the affairs of a depository institution under Section 8 of the
Federal Deposit Insurance Act.

                  (f) The terms "Termination for Cause" and "Terminated For
Cause" mean termination of the employment of the Employee with either the
Company or the Bank, as the case may be, because of the Employee's personal
dishonesty, incompetence, willful misconduct, breach of a fiduciary duty
involving personal profit, intentional failure to perform stated duties, willful
violation of any law, rule, or regulation (excluding violations which do not
have a material adverse effect on the Company or the Bank) or final
cease-and-desist order, or material breach of any provision of this Agreement.
No act or failure to act by the Employee shall be considered willful unless the
Employee acted or failed to act with an absence of good faith and without a
reasonable belief that her action or failure to act was in the best interest of
the Company. The Employee shall not be deemed to have been Terminated for Cause
unless and until there shall have been delivered to the Employee a copy of a
resolution, duly adopted by the affirmative vote of not less than a majority of
the entire membership of the Board of Directors at a meeting of the Board duly
called and held for such purpose (after reasonable notice to the Employee and an
opportunity for the Employee, together with the Employee's counsel, to be heard
before the Board), stating that in the good faith opinion of the Board of
Directors the Employee has engaged in conduct described in the preceding
sentence and specifying the particulars thereof in detail.

         2. TERM; TERMINATION OF SEVERANCE AGREEMENT. The term of this Agreement
shall be a period of three years commencing on the Effective Date, subject to
earlier termination as provided herein. Beginning on the first anniversary of
the Effective Date, and on each anniversary thereafter, the term of this
Agreement shall be extended for a period of one year in addition to the
then-remaining term, PROVIDED THAT the Company has not given notice to the
Employee in writing at least 90 days prior to such anniversary that the term of
this Agreement shall not be extended further, and PROVIDED FURTHER THAT the
Employee has not received an unsatisfactory performance review by either the
Board of Directors or the board of directors of the Bank. Reference herein to
the term of this Agreement shall refer to both such initial term and such
extended terms. The Employee's Severance Agreement shall terminate immediately
prior to the Effective Date.

        3. EMPLOYMENT. The Employee is employed as Senior Vice President and
Chief Financial Officer of the Company and as Senior Vice President and Chief
Financial Officer of the Bank. As such, the Employee shall render such
administrative and management services as are customarily performed by persons
situated in similar executive capacities, and shall have

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such other powers and duties as the Board of Directors or the board of directors
of the Bank may prescribe from time to time. The Employee shall also render
services to any subsidiary or subsidiaries of the Company or the Bank as
requested by the Company or the Bank from time to time consistent with her
executive position. The Employee shall devote her best efforts and reasonable
time and attention to the business and affairs of the Company and the Bank to
the extent necessary to discharge her responsibilities hereunder. The Employee
may (i) serve on corporate or charitable boards or committees and (ii) manage
personal investments, so long as such activities do not interfere materially
with performance of her responsibilities hereunder.

         4.  CASH COMPENSATION.

                    (a) SALARY. The Company agrees to pay the Employee during
the term of this Agreement a base salary (the "Company Salary") the annualized
amount of which shall be not less than the annualized aggregate amount of the
Employee's base salary from the Company and any Consolidated Subsidiaries in
effect at the Effective Date, PROVIDED THAT any amounts of salary actually paid
to the Employee by any Consolidated Subsidiaries shall reduce the amount to be
paid by the Company to the Employee. The Company Salary shall be paid no less
frequently than monthly and shall be subject to customary tax withholding. The
amount of the Employee's Company Salary shall be increased (but shall not be
decreased) from time to time in accordance with the amounts of salary approved
by the Board of Directors or the board of directors of any of the Consolidated
Subsidiaries after the Effective Date.

                  (b) BONUSES. The Employee shall be entitled to participate in
an equitable manner with all other executive officers of the Company and the
Bank in such performance-based and discretionary bonuses, if any, as are
authorized and declared by the Board of Directors for executive officers of the
Company and by the board of directors of the Bank for executive officers of the
Bank. No other compensation provided for in this Agreement shall be deemed a
substitute for the Employee's right to participate in such bonuses when and as
declared.

                  (c) EXPENSES. The Employee shall be entitled to receive prompt
reimbursement for all reasonable expenses incurred by the Employee in performing
services under this Agreement in accordance with the policies and procedures
applicable to the executive officers of the Company and the Bank, PROVIDED THAT
the Employee accounts for such expenses as required under such policies and
procedures.

         5.  BENEFITS.

                  (a) PARTICIPATION IN BENEFIT PLANS. The Employee shall be
entitled to participate, to the same extent as executive officers of the Company
and the Bank generally, in all plans of the Company and the Bank relating to
pension, retirement, thrift, profit-sharing, savings, group or other life
insurance, hospitalization, medical and dental coverage, travel and accident
insurance, education, cash bonuses, and other retirement or employee benefits or
combinations thereof. In addition, the Employee shall be entitled to be
considered for benefits under all of the stock and stock option related plans in
which the Company's or the Bank's executive officers are

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eligible or become eligible to participate.

                  (b) HEALTH BENEFITS. The Employee shall be entitled, for the
benefit of herself and her spouse, to the same group hospitalization, medical,
dental, prescription drug and other health benefits as are available to
executive officers of the Company and/or the Bank generally on terms as
favorable to her, including amounts of coverage and deductibles and other costs
to her, as apply to executive offices of the Company and/or the Bank generally,
PROVIDED THAT when the Employee or her spouse is eligible for Medicare coverage,
her coverage under this Section 5(b) shall be secondary to Medicare coverage
(the "Health Benefits").

                  (c) OTHER FRINGE BENEFITS. The Employee shall be eligible to
participate in, and receive benefits under, any other fringe benefit plans or
perquisites which are or may become generally available to the Company's or the
Bank's executive officers.

         6. VACATIONS; LEAVE. The Employee shall be entitled to annual paid
vacation in accordance with the policies established by the Board of Directors
and the board of directors of the Bank for executive officers of the Company and
the Bank, and to voluntary leaves of absence, with or without pay, from time to
time at such times and upon such conditions as the Board of Directors may
determine in its discretion.

         7.  TERMINATION OF EMPLOYMENT.

                  (a) INVOLUNTARY TERMINATION. In the event of the Involuntary
Termination of the Employee, if the Employee has offered to continue to provide
services as contemplated by this Agreement, and such offer has been declined,
then, subject to Section 7(b) of this Agreement, the Company shall, as
liquidated damages:

                           (i) during the remaining term of this Agreement
following the Date of Termination (the "Remaining Term"), (A) pay to the
Employee in cash monthly one-twelfth of the Company Salary at the annual rate in
effect immediately prior to the Date of Termination and one-twelfth of the
average annual amount of cash bonus and cash incentive compensation of the
Employee, based on the average amounts of such compensation earned by the
Employee for the two full fiscal years preceding the Date of Termination,
PROVIDED THAT such payments shall be reduced by the amounts of cash
compensation, if any, actually paid to the Employee by the Consolidated
Subsidiaries for such period; and (B) continue to provide the benefits described
in Section 5(c) and Section 5(d) of this Agreement;

                           (ii) within 30 days following the date on which the
term of this Agreement expires (the "Expiration Date"), pay to the Employee in a
lump sum in cash an amount equal to the excess of (A) the present value of the
aggregate benefits to which she would be entitled under any and all qualified
and non-qualified defined benefit pension plans covering executive officers of
the Company or the Bank if she were 100% vested thereunder, had continued to be
employed by the Company and the Bank during the Remaining Term and had received
as covered

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compensation during such period the amounts payable to her under Section 7(a)(i)
hereof, over (B) the present value of the benefits to which she is actually
entitled under such plans as of the Expiration Date;

                           (iii) within 30 days following the Expiration Date,
pay to the Employee in a lump sum in cash an amount equal to the present value
of the employer contributions to which she would have been entitled under any
and all qualified and non-qualified defined contribution plans maintained by or
covering executive officers of the Company or the Bank if she were 100% vested
thereunder, had continued to be employed by the Company and the Bank during the
Remaining Term and had received as covered compensation during such period the
amounts payable to her under Section 7(a)(i) hereof and assuming that she had
made during such period the maximum amount of employee contributions, if any,
required or permitted under such plans for an individual receiving such covered
compensation;

                           (iv) during the Remaining Term, the Company shall
provide the Health Benefits to the Employee on the same terms as if she had
continued to be employed under this Agreement; and

                           (v) following the expiration of the term of this
Agreement, the Company shall make the Health Benefits available to the Employee,
PROVIDED THAT the Employee reimburses the Company for the amount the Company
pays to third parties that is attributable to the Health Benefits for the
Employee and her spouse.

         For purposes of this Section 7, present value shall be determined by
using the UP-1984 mortality table and the same discount rate as would apply to a
determination of present value under Section 280G of the Internal Revenue Code
of 1986, as amended (the "Code").

                (b) REDUCTION OF THE COMPANY'S OBLIGATION UNDER SECTION 7(a)(i).

                           (i) The Company's obligations under Section 7(a)(i)
hereof (A) to pay cash compensation shall be reduced by the amount of the
Employee's cash income, if any, earned from providing services other than to the
Company (or its successors) or the Consolidated Subsidiaries during the
Remaining Term; and (B) to provide benefits described in Section 5(c) and
Section 5(d) shall be suspended during such time, if any, that an employer other
than the Company or its successors or the Consolidated Subsidiaries provides
comparable benefits during the Remaining Term. For purposes of this Section
7(b), the term "cash income" shall include amounts of salary, wages, bonuses,
incentive compensation and fees paid to the Employee in cash but shall not
include shares of stock, stock options, stock appreciation rights or other
earned income not paid to the Employee in cash.

                           (ii) The Employee agrees that in the event she
becomes entitled to liquidated damages pursuant to Section 7(a), throughout the
Remaining Term, she shall promptly inform the Company of the nature and amounts
of cash income and benefits comparable to those described in Section 5(c) and
Section 5(d) which she earns from providing services other than to the Company
(or its successors) or the Consolidated Subsidiaries, and the nature of benefits
she receives from another employer that are similar to the Health Benefits, and
shall provide such documentation of such cash income and benefits as the Company
may reasonably request. In the

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event of changes to such cash income and benefits from time to time, the
Employee shall inform the Company of such changes, in each case within 30 days
after the change occurs, and shall provide such documentation concerning the
change as the Company may request.

                           (iii) To the extent, if any, that the Employee
receives from another employer following Involuntary Termination benefits
substantially similar to the Health Benefits on terms substantially as favorable
to her as the Health Benefits, the Company's obligation to provide the Health
Benefits under Section 7(a) shall be reduced so long as the Employee receives
such substantially similar benefits from another employer.

                  (c) CHANGE IN CONTROL. Subject to Section 7(d) below, if, in
connection with or within 18 months following a Change in Control, the Employee
experiences Involuntary Termination, the Company shall pay to the Employee (in
addition to any payments and benefits to which the Employee is entitled under
Section 7(a) hereof) within 30 days following the Date of Termination, in a lump
sum in cash, an amount equal to 299% of the Employee's "base amount" as defined
in Section 280G of the Code, PROVIDED THAT the sum of the payments to be made
under Section 7(a)(i)(A) and under this Section 7(c) shall not exceed three
times the sum of the Employee's annual salary as of immediately prior to such
Involuntary Termination and average annual amount of cash bonus and cash
incentive compensation of the Employee calculated as provided in Section
7(a)(i)(A).

                  (d) CERTAIN REDUCTION OF PAYMENTS. Notwithstanding any other
provisions of this Agreement, if payments and benefits under this Agreement,
together with any other payments and benefits received or to be received by the
Employee in connection with a change in control, would cause any amount to be
nondeductible by the Bank or the Company for federal income tax purposes
pursuant to Section 280G of the Code, then payments and benefits under this
Agreement shall be reduced (not less than zero) to the extent necessary so as to
maximize payments and benefits to the Employee without causing any amount to
become nondeductible by the Bank or the Company by reason of Section 280G of the
Code. The Employee shall determine the allocation of such reduction among
payments and benefits to the Employee.

                  (e) TERMINATION FOR CAUSE. In the event of Termination for
Cause, the Company shall pay the Employee her Company Salary through the Date of
Termination and the Company and its subsidiaries shall have no further
obligation to the Employee under this Agreement after the Date of Termination.

                  (f) VOLUNTARY TERMINATION. The Employee may terminate her
employment at any time by a notice pursuant to Section 8 of this Agreement. If
the Employee terminates her employment other than by reason of any of the
actions that constitute Involuntary Termination under Section 1(e)(ii) of this
Agreement, such termination of employment shall constitute a "Voluntary
Termination" and the Company shall be obligated to the Employee for the amount
of her Company Salary and benefits only through the Date of Termination, at the
time such payments are due, and shall have no further obligation to the Employee
under this Agreement except pursuant to Section 5(b) hereof.

                  (g) DEATH. In the event of the death of the Employee while
employed under this

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Agreement and prior to any termination of employment, (i) the Company shall pay
to the Employee's estate, or such person as the Employee may have previously
designated in writing, the Company Salary which was not previously paid to the
Employee and which she would have earned if she had continued to be employed
under this Agreement through the last day of the calendar month in which the
Employee died and (ii) the Company shall pay to the Employee's estate, or such
person as the Employee may have previously designated in writing, the amounts of
any benefits or awards which, pursuant to the terms of any applicable plan or
plans, were earned with respect to the fiscal year in which the Employee died
and which the Employee would have been entitled to receive if she had continued
to be employed, and the amount of any bonus or incentive compensation for such
fiscal year which the Employee would have been entitled to receive if she had
continued to be employed, pro-rated in accordance with the portion of the fiscal
year prior to her death; PROVIDED THAT such amounts shall be payable when and as
ordinarily payable under the applicable plans.

                  (h) DISABILITY. If the Employee becomes disabled as defined in
the then current disability plan of the Company or the Bank, or if the Employee
is otherwise unable due to disability to serve in her present capacity, the
Employee shall be entitled to receive the group and other disability income
benefits, if any, of the type then provided by the Company and the Bank for
executive officers (the "Disability Benefits"). In the event of such disability,
this Agreement shall not be suspended. However, the Company shall be obligated
to pay the Employee compensation pursuant to Sections 4(a) and (b) hereof only
to the extent that such compensation, at the rate then in effect and in the
absence of such disability, would exceed (on an after tax basis) the Disability
Benefits she receives. In addition, the Company shall have the right, upon
resolution of the Board of Directors, to discontinue paying cash compensation
pursuant to Sections 4(a) and (b) beginning six months following a determination
that Employee qualifies for benefits under this Section 7(h).

         8. NOTICE OF TERMINATION. In the event that the Company or the Bank, or
both, desire to terminate the employment of the Employee during the term of this
Agreement, the Company or the Bank, or both, shall deliver to the Employee a
written notice of termination, stating whether such termination constitutes
Termination for Cause or Involuntary Termination, setting forth in reasonable
detail the facts and circumstances that are the basis for the termination, and
specifying the date upon which employment shall terminate, which date shall be
at least 30 days after the date upon which the notice is delivered, except in
the case of Termination for Cause. In the event that the Employee determines in
good faith that she has experienced an Involuntary Termination of her
employment, she shall send a written notice to the Company stating the
circumstances that constitute such Involuntary Termination and the date upon
which her employment shall have ceased due to such Involuntary Termination. In
the event that the Employee desires to effect a Voluntary Termination, she shall
deliver a written notice to the Company, stating the date upon which employment
shall terminate, which date shall be at least 90 days after the date upon which
the notice is delivered, unless the Company and the Employee agree to a date
sooner.

         9. ATTORNEYS'FEES. The Company shall pay all legal fees and related
expenses (including the costs of experts, evidence and counsel) incurred by the
Employee as a result of (i) the

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Employee's contesting or disputing any termination of employment or (ii) the
Employee's seeking to obtain or enforce any right or benefit provided by this
Agreement or by any other plan or arrangement maintained by the Company (or its
successors) or the Consolidated Subsidiaries under which the Employee is or may
be entitled to receive benefits; PROVIDED THAT the Company's obligation to pay
such fees and expenses is subject to the Employee's prevailing with respect to
the matters in dispute in any action initiated by the Employee or the Employee's
having been determined to have acted reasonably and in good faith with respect
to any action initiated by the Company or the Bank.

         10.  NO ASSIGNMENTS.

                  (a) This Agreement is personal to the parties hereto, and no
party may assign or delegate any of its rights or obligations hereunder without
first obtaining the written consent of the other party, PROVIDED, HOWEVER, THAT
the Company shall require any successor or assign (whether direct or indirect,
by purchase, merger, consolidation or otherwise) by an assumption agreement in
form and substance satisfactory to the Employee, to expressly assume and agree
to perform this Agreement in the same manner and to the same extent that the
Company would be required to perform it if no such succession or assignment had
taken place. Failure of the Company to obtain such an assumption agreement prior
to the effectiveness of any such succession or assignment shall be a breach of
this Agreement and shall entitle the Employee to compensation and benefits from
the Company in the same amount and on the same terms as provided in Section 7
hereof in the event of Involuntary Termination in connection with a Change in
Control. For purposes of implementing the provisions of this Section 10(a), the
date on which any such succession becomes effective shall be deemed the Date of
Termination.

                  (b) This Agreement and all rights of the Employee hereunder
shall inure to the benefit of and be enforceable by the Employee's personal and
legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees.

         11. NOTICE. For the purposes of this Agreement, notices and all other
communications provided for in this Agreement shall be in writing and shall be
deemed to have been duly given when personally delivered or sent by certified
mail, return receipt requested, postage prepaid, to the Company at its home
office, to the attention of the Board of Directors with a copy to the Secretary
of the Company, or, if to the Employee, to such home or other address as the
Employee has most recently provided in writing to the Company.

         12. AMENDMENTS. No amendments or additions to this Agreement shall be
binding unless in writing and signed by both parties, except as herein otherwise
provided.

         13. HEADINGS. The headings used in this Agreement are included solely
for convenience and shall not affect, or be used in connection with, the
interpretation of this Agreement.

         14. SEVERABILITY. The provisions of this Agreement shall be deemed
severable and the invalidity or unenforceability of any provision shall not
affect the validity or enforceability of the other provisions hereof.

<PAGE>

         15. GOVERNING LAW. This Agreement shall be governed by the laws of the
Commonwealth of Kentucky.

         16. ARBITRATION. Any dispute or controversy arising under or in
connection with this Agreement shall be settled exclusively by arbitration in
accordance with the rules of the American Arbitration Association then in
effect. Judgment may be entered on the arbitrator's award in any court having
jurisdiction.

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

             THIS AGREEMENT CONTAINS A BINDING ARBITRATION PROVISION WHICH MAY
BE ENFORCED BY THE PARTIES.

<TABLE>
<S>                                          <C>
Attest:                                      CLASSIC BANCSHARES, INC.

/s/ C. CYRUS REYNOLDS                        /s/ DAVID B. BARBOUR
----------------------------------           --------------------------------------------
Secretary                                    By: David B. Barbour
                                             Its: President and Chief Executive Officer

                                             EMPLOYEE

                                             /s/ LISAH M. FRAZIER
                                             --------------------------------------------
                                             Lisah M. Frazier
</TABLE><PAGE>
                                                                   Exhibit 10.22

                          FORM OF AMENDED AND RESTATED
                           WRIGHT MEDICAL GROUP, INC.
                           1999 EQUITY INCENTIVE PLAN

         WHEREAS, the Company previously adopted, effective as of December 7,
1999, the Wright Acquisition Holdings, Inc. 1999 Equity Incentive Plan (the
"Plan"), which allows for the grant of equity-based awards in the form of stock
options, restricted stock and other equity based incentives to employees,
directors and consultants of the Company and its subsidiaries to incentivise
them and align their interests with those of the stockholders of the Company;
and

         WHEREAS, Section 15 of the Plan provides that the Plan may be amended
at any time, in whole or in part, by action of the Company's Board of Directors;
and

         WHEREAS, it is now desired to amend and restate the Plan in its
entirety to reflect such amendments to the Plan as have been approved by the
Company's Board of Directors since its original effective date.

         NOW THEREFORE, pursuant to the authority granted by the Company's Board
of Directors, the Plan is hereby amended and restated, effective as of
____________, 2001, as follows:

1.       PURPOSE

         (a) The purpose of the Plan is to provide a means through which the
Company may attract able persons to become and remain directors of the Company
or any Related Entity and enter and remain in the employ of the Company or any
Related Entity and to provide a means whereby employees, directors and
consultants of the Company and any Related Entity can acquire and maintain Stock
ownership, or be paid incentive compensation measured by reference to the value
of Stock, thereby strengthening their commitment to the welfare of the Company
and promoting an identity of interest between stockholders and these employees,
directors and consultants.

         (b) So that the appropriate incentive can be provided, the Plan
provides for granting Incentive Stock Options, Nonqualified Stock Options, Stock
Appreciation Rights, Restricted Stock Awards, Phantom Stock Unit Awards,
Performance Share Unit Awards and Stock Bonus Awards, or any combination of the
foregoing.

2.       DEFINITIONS

         The following definitions shall be applicable throughout the Plan.

         (a) "Award" means, individually or collectively, any Incentive Stock
Option, Nonqualified Stock Option, Stock Appreciation Right, Restricted Stock
Award, Phantom Stock Unit Award, Performance Share Unit Award or Stock Bonus
Award.

<PAGE>

         (b) "Award Period" means a period of time within which performance is
measured for the purpose of determining whether an Award of Performance Share
Units has been earned.

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

         (d) "Cause" means the Company or a Related Entity having cause to
terminate a Participant's employment or service in accordance with the
provisions of any existing employment, consulting or any other agreement between
the Participant and the Company or a Related Entity or, in the absence of such
an employment, consulting or other agreement, upon (i) the determination by the
Committee that the Participant has ceased to perform his duties to the Company
or a Related Entity (other than as a result of his incapacity due to physical or
mental illness or injury), which failure amounts to intentional and extended
neglect of his duties, (ii) the Committee's determination that the Participant
has engaged or is about to engage in conduct injurious to the Company or a
Related Entity, or (iii) the Participant having plead no contest to a charge of
a felony or having been convicted of a felony.

         (e) "Code" means the Internal Revenue Code of 1986, as amended.
Reference in the Plan to any section of the Code shall be deemed to include any
amendments or successor provisions to such section and any regulations under
such section.

         (f) "Committee" means the full Board, the Compensation Committee of the
Board or such other committee as the Board may appoint to administer the Plan.

         (g) "Common Stock" means the common stock, par value $0.01 per share,
of the Company.

         (h) "Company" means Wright Medical Group, Inc., a Delaware corporation,
and any successor thereto.

         (i) "Date of Grant" means the date on which the granting of an Award is
authorized, or such other date as may be specified in such authorization.

         (j) "Disability" means the complete and permanent inability by reason
of illness or accident to perform the duties of the occupation at which a
Participant was employed or served when such disability commenced or, if the
Participant was retired when such disability commenced, the inability to engage
in any substantial gainful activity, in either case as determined by the
Committee based upon medical evidence acceptable to it.

         (k) "Eligible Person" means any (i) person regularly employed by the
Company or any Related Entity; provided, HOWEVER, that no such employee covered
by a collective bargaining agreement shall be an Eligible Person unless and to
the extent that such eligibility is set forth in such collective bargaining
agreement or in an agreement or instrument relating thereto; (ii) director of
the Company or any Related Entity; or (iii) consultant to the Company or any
Related Entity.

         (l) "Exchange Act" means the Securities Exchange Act of 1934.

                                       2
<PAGE>

         (m) "Fair Market Value" on a given date means (i) if the Stock is
listed on a national securities exchange, the mean between the highest and
lowest sale prices reported as having occurred on the primary exchange with
which the Stock is listed and traded on the date prior to such date, or, if
there is no such sale on that date, then on the last preceding date on which
such a sale was reported; (ii) if the Stock is not listed on any national
securities exchange but is quoted in the National Market System of the National
Association of Securities Dealers Automated Quotation System on a last sale
basis, the average between the high bid price and low ask price reported on the
date prior to such date, or, if there is no such sale on that date, then on the
last preceding date on which a sale was reported; (iii) if the Stock is not
listed on a national securities exchange nor quoted in the National Market
System of the National Association of Securities Dealers Automated Quotation
System on a last sale basis, the amount determined by the Committee to be the
fair market value based upon a good faith attempt to value the Stock accurately;
or (iv) notwithstanding clauses (i) - (iii) above, with respect to Awards
granted as of the consummation of an IPO, the price at which Stock is sold to
the public in the IPO.

         (n) "Holder" means a Participant who has been granted an Award.

         (o) "Incentive Stock Option" means an Option granted by the Committee
to a Participant under the Plan which is designated by the Committee as an
Incentive Stock Option pursuant to Section 422 of the Code.

         (p) "IPO" means the initial offering of Common Stock to the public
through an effective registration statement.

         (q) "Non-Employee Director" means a "non-employee director" within the
meaning of Rule 16b-3 of the Exchange Act or any successor rule or regulation.

         (r) "Nonqualified Stock Option" means an Option granted under the Plan
which is not designated as an Incentive Stock Option.

         (s) "Normal Termination" means termination of employment or service
with the Company or any Related Entity:

         (i)      Upon retirement pursuant to the retirement plan of the Company
                  or any Related Entity, as may be applicable at the time to the
                  Participant in question;

         (ii)     On account of Disability;

         (iii)    With the written approval of the Committee; or

         (iv)     By the Company or any Related Entity without Cause.

         (t) "Option" means an Award granted under Section 7 of the Plan.

                                       3
<PAGE>

         (u) "Option Period" means the period described in Section 7(c).

         (v) "Option Price" means the exercise price set for an Option described
in Section 7(a).

         (w) "Participant" means an Eligible Person who has been selected by the
Committee to participate in the Plan and to receive an Award.

         (x) "Performance Goals" means the performance objectives of the Company
or a Related Entity during an Award Period or Restricted Period established for
the purpose of determining whether, and to what extent, Awards will be earned
for an Award Period or Restricted Period.

         (y) "Performance Share Unit" means a hypothetical investment equivalent
equal to one share of Stock granted in connection with an Award made under
Section 9 of the Plan.

         (z) "Phantom Stock Unit" means a hypothetical investment equivalent
equal to one share of Stock granted in connection with an Award made under
Section 10 of the Plan.

         (aa) "Plan" means the Wright Medical Group, Inc. 1999 Equity Incentive
Plan, as may be amended from time to time.

         (bb) "Qualified Committee" means a committee composed of at least two
Qualified Directors.

         (cc) "Qualified Director" means a person who is (i) an Non-Employee
Director and (ii) an "outside director" within the meaning of Section 162(m) of
the Code.

         (dd) "Related Entity" means, when referring to a subsidiary, any
business entity (other than the Company) which, at the time of the granting of
an Award, is in an unbroken chain of entities ending with the Company, if stock
or voting interests possessing 50% or more of the total combined voting power of
all classes of stock or other ownership interests of each of the entities other
than the Company is owned by one of the other entities in such chain and, when
referring to a parent entity, the term "Related Entity" shall mean any entity in
an unbroken chain of entities ending with the Company if, at the time of the
granting of the Award, each of the entities other than the Company owns stock or
other ownership interests possessing 50% or more of the total combined voting
power of all classes of stock (or other ownership interests) in one of the other
entities in such chain. In addition, with respect to an Incentive Stock Option,
the definition of "Related Entity" as used in this Plan shall apply by only
considering entities that are corporations.

         (ee) "Restricted Period" means, with respect to any share of Restricted
Stock or any Phantom Stock Unit, the period of time determined by the Committee
during which such Award is subject to the restrictions set forth in Section 11.

                                       4
<PAGE>

         (ff) "Restricted Stock" means shares of Stock issued or transferred to
a Participant subject to forfeiture and the other restrictions set forth in
Section 11.

         (gg) "Restricted Stock Award" means an Award of Restricted Stock
granted under Section 11 of the Plan.

         (hh) "Securities Act" means the Securities Act of 1933, as amended.

         (ii) "Stock" means the Common Stock or such other authorized shares of
stock of the Company as from time to time may be authorized for use under the
Plan.

         (jj) "Stock Appreciation Right" or "SAR" means an Award granted under
Section 8 of the Plan.

         (kk) "Stock Bonus" means an Award granted under Section 11 of the Plan.

         (ll) "Stock Option Agreement" means the agreement between the Company
and a Participant who has been granted an Option pursuant to Section 7 which
defines the rights and obligations of the parties as required in Section 7(d).

         (mm) "Vested Unit" shall have the meaning ascribed thereto in Section
10(e).

3.       EFFECTIVE DATE, DURATION AND SHAREHOLDER APPROVAL

         The Plan was originally effective as of December 7, 1999, the date of
adoption of the Plan by the Board. This amended and restated Plan shall be
effective as ____________, 2001. The effectiveness of the Plan and the validity
of any and all Awards granted pursuant to the Plan is contingent upon approval
of the Plan by the stockholders of the Company in a manner which complies with
(i) Section 422(b)(1) and, to the extent provided in Section 16 herein, Section
162(m) of the Code and (ii) the requirements of the primary national securities
exchange with which the Stock is listed, if so listed, and/or the National
Market System of the National Association of Securities Dealers Automated
Quotation System, if the Stock is quoted thereon. Unless and until the
stockholders approve the Plan in compliance with the applicable requirements, no
Award granted under the Plan shall be effective.

         The expiration date of the Plan, after which no Awards may be granted
hereunder, shall be December 7, 2009; PROVIDED, HOWEVER, that the administration
of the Plan shall continue in effect until all matters relating to the payment
of Awards previously granted have been settled.

4.       ADMINISTRATION

         The Committee shall administer the Plan; PROVIDED, HOWEVER, that as of
and after the date the Company first becomes subject to Section 16 of the
Exchange Act, the Plan shall be administered by the full Board or a committee of
the Board composed of at least two persons, each member of which, at the time he
takes any action with respect to an Award under the Plan, shall be a
Non-Employee Director; and FURTHER PROVIDED, that as of and after the date that
the

                                       5
<PAGE>

exemption for the Plan under Section 162(m) of the Code expires, as set forth in
Section 16 herein, to the extent that the Company determines that an Award is
intended to comply with Section 162(m) of the Code, the Plan shall be
administered by a Qualified Committee. The majority of the members of the
Committee shall constitute a quorum. The acts of a majority of the members
present at any meeting at which a quorum is present or acts approved in writing
by a majority of the Committee shall be deemed the acts of the Committee.
Subject to the provisions of the Plan, the Committee shall have exclusive power
to:

         (a) Select the Eligible Persons to participate in the Plan;

         (b) Determine the nature and extent of the Awards to be made to each
Participant;

         (c) Determine the time or times when Awards will be made to
Participants;

         (d) Determine the duration of each Award Period and Restricted Period;

         (e) Determine the conditions to which the payment of Awards may be
subject;

         (f) Establish the Performance Goals for each Award Period;

         (g) Prescribe the form of Stock Option Agreement or other form or forms
evidencing Awards; and

         (h) Cause records to be established in which there shall be entered,
from time to time as Awards are made to Participants, the date of each Award,
the number of Incentive Stock Options, Nonqualified Stock Options, SARs, Phantom
Stock Units, Performance Share Units, shares of Restricted Stock and Stock
Bonuses awarded by the Committee to each Participant, the expiration date, the
Award Period and the duration of any applicable Restricted Period.

         The Committee shall have the authority, subject to the provisions of
the Plan, to establish, adopt, or revise such rules and regulations and to make
all such determinations relating to the Plan as it may deem necessary or
advisable for the administration of the Plan. The Committee's interpretation of
the Plan or any documents evidencing Awards granted pursuant thereto and all
decisions and determinations by the Committee with respect to the Plan shall be
final, binding, and conclusive on all parties unless otherwise determined by the
Board.

5.       GRANT OF AWARDS; SHARES SUBJECT TO THE PLAN

         The Committee may, from time to time, grant Awards of Options, Stock
Appreciation Rights, Restricted Stock, Phantom Stock Units, Performance Share
Units and/or Stock Bonuses to one or more Eligible Persons; provided, HOWEVER,
that:

                  (a) Subject to Section 13, the aggregate number of shares of
         Stock made subject to all Awards may not exceed 4,767,051 shares of
         Common Stock;

                                       6
<PAGE>

                  (b) Such shares shall be deemed to have been used in payment
         of Awards whether they are actually delivered or the Fair Market Value
         equivalent of such shares is paid in cash. In the event any Option, SAR
         not attached to an Option, Restricted Stock Award, Phantom Stock Unit
         or Performance Share Unit shall be surrendered, terminate, expire, or
         be forfeited, the number of shares of Stock no longer subject thereto
         shall thereupon be released and shall thereafter be available for new
         Awards under the Plan;

                  (c) Stock delivered by the Company in settlement of Awards
         under the Plan may be authorized and unissued Stock or Stock held in
         the treasury of the Company or may be purchased on the open market or
         by private purchase;

                  (d) Following the date that the exemption from the application
         of Section 162(m) of the Code described in Section 16 (or any other
         exemption having similar effect) ceases to apply to Awards, no
         Participant may receive Options or SARs under the Plan with respect to
         more than 200,000 shares of Stock in any one year; and

                  (e) The Committee may, in its sole discretion, require a
         Participant to pay consideration for an Award in an amount and in a
         manner as the Committee deems appropriate.

6.       ELIGIBILITY

         Participation shall be limited to Eligible Persons who have received
written notification from the Committee, or from a person designated by the
Committee, that they have been selected to participate in the Plan.

7.       DISCRETIONARY GRANT OF STOCK OPTIONS

         The Committee is authorized to grant one or more Incentive Stock
Options or Nonqualified Stock Options to any Eligible Person; PROVIDED, HOWEVER,
that no Incentive Stock Options shall be granted to any Eligible Person who is
not an employee of the Company or a Related Entity. Each Option so granted shall
be subject to the following conditions, or to such other conditions as may be
reflected in the applicable Stock Option Agreement.

         (a) OPTION PRICE. The exercise price ("Option Price") per share of
Stock for each Option shall be set by the Committee at the time of grant;
PROVIDED, HOWEVER, that no Incentive Stock Option shall be granted with a per
share exercise price that is less than the Fair Market Value of a share of Stock
at the Date of Grant.

         (b) MANNER OF EXERCISE AND FORM OF PAYMENT. Options which have become
exercisable may be exercised by delivery of written notice of exercise to the
Committee accompanied by payment of the Option Price. The Option Price shall be
payable in cash and/or shares of Stock valued at the Fair Market Value at the
time the Option is exercised or, in the discretion of the Committee, either (i)
in other property having a fair market value on the date of exercise equal to
the Option Price, or (ii) by delivering to the Committee a copy of irrevocable

                                       7
<PAGE>

instructions to a stockbroker to deliver promptly to the Company an amount of
sale or loan proceeds sufficient to pay the Option Price.

         (c) OPTION PERIOD AND EXPIRATION. Options shall vest and become
exercisable in such manner and on such date or dates determined by the Committee
and shall expire after such period, not to exceed ten years from the Date of
Grant, as may be determined by the Committee (the "Option Period"); PROVIDED,
HOWEVER, that notwithstanding any vesting dates set by the Committee, the
Committee may in its sole discretion accelerate the exercisability of any
Option, which acceleration shall not affect the terms and conditions of any such
Option other than with respect to exercisability. If an Option is exercisable in
installments, such installments or portions thereof which become exercisable
shall remain exercisable until the Option expires. Unless otherwise stated in
the applicable Option Agreement, the Option shall expire earlier than the end of
the Option Period in the following circumstances:

         (i)      If prior to the end of the Option Period, the Holder shall
                  undergo a Normal Termination, the Option shall expire on the
                  earlier of the last day of the Option Period or the date that
                  is thirty days after the date of such Normal Termination. In
                  such event, the Option shall remain exercisable by the Holder
                  until its expiration, only to the extent the Option was
                  exercisable at the time of such Normal Termination.

         (ii)     If the Holder dies prior to the end of the Option Period and
                  while still in the employ or service of the Company or any
                  Related Entity or within thirty days of Normal Termination,
                  the Option shall expire on the earlier of the last day of the
                  Option Period or the date that is thirty days after the date
                  of death of the Holder. In such event, the Option shall remain
                  exercisable by the person or persons to whom the Holder's
                  rights under the Option pass by will or the applicable laws of
                  descent and distribution until its expiration, only to the
                  extent the Option was exercisable by the Holder at the time of
                  death.

         (iii)    If the Holder ceases employment or service with the Company or
                  any Related Entity for reasons other than Normal Termination
                  or death, the Option shall expire immediately upon such
                  cessation of employment or service.

         (d) STOCK OPTION AGREEMENT - OTHER TERMS AND CONDITIONS. Each Option
granted under the Plan shall be evidenced by a Stock Option Agreement, which
shall contain such provisions as may be determined by the Committee and, except
as may be specifically stated otherwise in such Stock Option Agreement, which
shall be subject to the following terms and conditions:

         (i)      Each Option issued pursuant to this Section 7 or portion
                  thereof that is exercisable shall be exercisable for the full
                  amount or for any part thereof.

                                       8
<PAGE>

         (ii)     Each share of Stock purchased through the exercise of an
                  Option issued pursuant to this Section 7 shall be paid for in
                  full at the time of the exercise. Each Option shall cease to
                  be exercisable, as to any share of Stock, when the Holder
                  purchases the share or exercises a related SAR or when the
                  Option expires.

         (iii)    Subject to Section 12(k), Options issued pursuant to this
                  Section 7 shall not be transferable by the Holder except by
                  will or the laws of descent and distribution and shall be
                  exercisable during the Holder's lifetime only by such Holder.

         (iv)     Each Option issued pursuant to this Section 7 shall vest and
                  become exercisable by the Holder in accordance with the
                  vesting schedule established by the Committee and set forth in
                  the Stock Option Agreement.

         (v)      Each Stock Option Agreement may contain a provision that, upon
                  demand by the Committee for such a representation, the Holder
                  shall deliver to the Committee at the time of any exercise of
                  an Option issued pursuant to this Section 7 a written
                  representation that the shares to be acquired upon such
                  exercise are to be acquired for investment and not for resale
                  or with a view to the distribution thereof. Upon such demand,
                  delivery of such representation prior to the delivery of any
                  shares issued upon exercise of an Option issued pursuant to
                  this Section 7 shall be a condition precedent to the right of
                  the Holder or such other person to purchase any shares. In the
                  event certificates for Stock are delivered under the Plan with
                  respect to which such investment representation has been
                  obtained, the Committee may cause a legend or legends to be
                  placed on such certificates to make appropriate reference to
                  such representation and to restrict transfer in the absence of
                  compliance with applicable federal or state securities laws.

         (vi)     Each Incentive Stock Option Agreement shall contain a
                  provision requiring the Holder to notify the Company in
                  writing immediately after the Holder makes a disqualifying
                  disposition of any Stock acquired pursuant to the exercise of
                  such Incentive Stock Option. A disqualifying disposition is
                  any disposition (including any sale) of such Stock before the
                  later of (a) two years after the Date of Grant of the
                  Incentive Stock Option or (b) one year after the date the
                  Holder acquired the Stock by exercising the Incentive Stock
                  Option.

         (e) INCENTIVE STOCK OPTION GRANTS TO 10% STOCKHOLDERS. Notwithstanding
anything to the contrary in this Section 7, if an Incentive Stock Option is
granted to a Holder who owns stock representing more than ten percent of the
voting power of all classes of stock of the Company or of a Related Entity, the
Option Period shall not exceed five years from the Date

                                       9
<PAGE>

of Grant of such Option and the Option Price shall be at least 110 percent of
the Fair Market Value (on the Date of Grant) of the Stock subject to the Option.

         (f) $100,000 PER YEAR LIMITATION FOR INCENTIVE STOCK OPTIONS. To the
extent the aggregate Fair Market Value (determined as of the Date of Grant) of
Stock for which Incentive Stock Options are exercisable for the first time by
any Participant during any calendar year (under all plans of the Company and its
Subsidiaries) exceeds $100,000, such excess Incentive Stock Options shall be
treated as Nonqualified Stock Options.

         (g) VOLUNTARY SURRENDER. The Committee may permit the voluntary
surrender of all or any portion of any Nonqualified Stock Option issued pursuant
to this Section 7 and its corresponding SAR, if any, granted under the Plan to
be conditioned upon the granting to the Holder of a new Option for the same or a
different number of shares as the Option surrendered or require such voluntary
surrender as a condition precedent to a grant of a new Option to such
Participant. Such new Option shall be exercisable at an Option Price, during an
Option Period, and in accordance with any other terms or conditions specified by
the Committee at the time the new Option is granted, all determined in
accordance with the provisions of the Plan without regard to the Option Price,
Option Period, or any other terms and conditions of the Nonqualified Stock
Option surrendered.

8.       STOCK APPRECIATION RIGHTS

         Any Option granted under the Plan may include SARs, either at the Date
of Grant or, except in the case of an Incentive Stock Option, by subsequent
amendment. The Committee also may award SARs independent of any Option. An SAR
shall confer on the Holder thereof the right to receive in shares of Stock, cash
or a combination thereof the value equal to the excess of the Fair Market Value
of one share of Stock on the date of exercise over the exercise price for the
SAR, with respect to every share of Stock for which the SAR is granted. An SAR
shall be subject to such terms and conditions not inconsistent with the Plan as
the Committee shall impose, including, but not limited to, the following:

         (a) VESTING. SARs granted in connection with an Option shall become
exercisable, be transferable and shall expire according to the same vesting
schedule, transferability rules and expiration provisions as the corresponding
Option. An SAR granted independent of an Option shall become exercisable, be
transferable and shall expire in accordance with a vesting schedule,
transferability rules and expiration provisions as established by the Committee
and reflected in an Award agreement.

         (b) AUTOMATIC EXERCISE. If on the last day of the Option Period (or in
the case of an SAR independent of an Option, the period established by the
Committee after which the SAR shall expire), the Fair Market Value of the Stock
exceeds the Option Price (or in the case of an SAR granted independent of an
Option, the Fair Market Value of the Stock on the Date of Grant), the Holder has
not exercised the SAR or the corresponding Option, and neither the SAR nor the
corresponding Option has expired, such SAR shall be deemed to have been
exercised by the Holder on such last day and the Company shall make the
appropriate payment therefor.

                                       10
<PAGE>

         (c) PAYMENT. Upon the exercise of an SAR, the Company shall pay to the
Holder an amount equal to the number of shares subject to the SAR multiplied by
the excess, if any, of the Fair Market Value of one share of Stock on the
exercise date over the Option Price, in the case of an SAR granted in connection
with an Option, or the Fair Market Value of one share of Stock on the Date of
Grant, in the case of an SAR granted independent of an Option. The Company shall
pay such excess in cash, in shares of Stock valued at Fair Market Value, or any
combination thereof, as determined by the Committee. Fractional shares shall be
settled in cash.

         (d) METHOD OF EXERCISE. A Holder may exercise an SAR after such time as
the SAR vests by filing an irrevocable written notice with the Committee or its
designee, specifying the number of SARs to be exercised, and the date on which
such SARs were awarded.

         (e) EXPIRATION. Each SAR shall cease to be exercisable, as to any share
of Stock, when the Holder exercises the SAR or exercises a related Option, with
respect to such share of Stock. Except as otherwise provided, in the case of
SARs granted in connection with Options, an SAR shall expire on a date
designated by the Committee which is not later than seven years after the Date
of Grant of the SAR.

9.       PERFORMANCE SHARES

         (a) AWARD GRANTS. The Committee is authorized to establish Performance
Share programs to be effective over designated Award Periods determined by the
Committee. The Committee may grant Awards of Performance Share Units to Eligible
Persons in accordance with such Performance Share programs. At the beginning of
each Award Period, the Committee will establish written Performance Goals based
upon financial objectives for the Company for such Award Period and a schedule
relating the accomplishment of the Performance Goals to the Awards to be earned
by Participants. Performance Goals may include absolute or relative growth in
earnings per share or rate of return on stockholders' equity or other
measurement of corporate performance and may be determined on an individual
basis or by categories of Participants. The Committee shall determine the number
of Performance Share Units to be awarded, if any, to each Eligible Person who is
selected to receive such an Award. The Committee may add new Participants to a
Performance Share program after its commencement by making pro rata grants.

         (b) DETERMINATION OF AWARD. At the completion of a Performance Share
Award Period, or at other times as specified by the Committee, the Committee
shall calculate the number of shares of Stock earned with respect to each
Participant's Performance Share Unit Award by multiplying the number of
Performance Share Units granted to the Participant by a performance factor
representing the degree of attainment of the Performance Goals.

         (c) PARTIAL AWARDS. A Participant for less than a full Award Period,
whether by reason of commencement or termination of employment or otherwise,
shall receive such portion of an Award, if any, for that Award Period as the
Committee shall determine.

         (d) PAYMENT OF PERFORMANCE SHARE UNIT AWARDS. Performance Share Unit
Awards shall be payable in that number of shares of Stock determined in
accordance with Section 9(b);

                                       11
<PAGE>

PROVIDED, HOWEVER, that, at its discretion, the Committee may make payment to
any Participant in the form of cash upon the specific request of such
Participant. The amount of any payment made in cash shall be based upon the Fair
Market Value of the Stock on the day prior to payment. Payments of Performance
Share Unit Awards shall be made as soon as practicable after the completion of
an Award Period.

         (e) ADJUSTMENT OF PERFORMANCE GOALS. The Committee may, during the
Award Period, make such adjustments to Performance Goals as it may deem
appropriate, to compensate for, or reflect, (i) extraordinary or non-recurring
events experienced during an Award Period by the Company or by any Related
Entity whose performance is relevant to the determination of whether Performance
Goals have been attained; (ii) any significant changes that may have occurred
during such Award Period in applicable accounting rules or principles or changes
in the Company's method of accounting or in that of any Related Entity whose
performance is relevant to the determination of whether an Award has been earned
or (iii) any significant changes that may have occurred during such Award Period
in tax laws or other laws or regulations that alter or affect the computation of
the measures of Performance Goals used for the calculation of Awards; PROVIDED,
HOWEVER, that following the date that the exemption from the application of
Section 162(m) of the Code described in Section 16 herein (or any other
exemption having similar effect) ceases to apply to Performance Share Unit
Awards, with respect to such Awards intended to qualify as "performance-based
compensation" under Section 162(m) of the Code, such adjustment shall be made
only to the extent that the Committee determines that such adjustments may be
made without a loss of deductibility of the compensation includible with respect
to such Award under Section 162(m) of the Code.

10.      RESTRICTED STOCK AWARDS AND PHANTOM STOCK UNITS

         (a) AWARD OF RESTRICTED STOCK AND PHANTOM STOCK UNITS.

         (i)      The Committee shall have the authority (1) to grant Restricted
                  Stock and Phantom Stock Unit Awards, (2) to issue or transfer
                  Restricted Stock to Eligible Persons, and (3) to establish
                  terms, conditions and restrictions applicable to such
                  Restricted Stock and Phantom Stock Units, including the
                  Restricted Period, which may differ with respect to each
                  grantee, the time or times at which Restricted Stock or
                  Phantom Stock Units shall be granted or become vested and the
                  number of shares or units to be covered by each grant.

         (ii)     The Holder of a Restricted Stock Award shall execute and
                  deliver to the Company an Award agreement with respect to the
                  Restricted Stock setting forth the restrictions applicable to
                  such Restricted Stock. If the Committee determines that the
                  Restricted Stock shall be held in escrow rather than delivered
                  to the Holder pending the release of the applicable
                  restrictions, the Holder additionally shall execute and
                  deliver to the Company (i) an escrow agreement satisfactory to
                  the Committee, and (ii) the appropriate blank stock powers
                  with respect to the Restricted Stock covered by such
                  agreements. If a Holder shall fail to execute a Restricted
                  Stock agreement

                                       12
<PAGE>

                  and, if applicable, an escrow agreement and stock powers, the
                  Award shall be null and void. Subject to the restrictions set
                  forth in Section 10(b), the Holder shall generally have the
                  rights and privileges of a stockholder as to such Restricted
                  Stock, including the right to vote such Restricted Stock. At
                  the discretion of the Committee, cash dividends and stock
                  dividends with respect to the Restricted Stock may be either
                  currently paid to the Holder or withheld by the Company for
                  the Holder's account, and interest may be paid on the amount
                  of cash dividends withheld at a rate and subject to such terms
                  as determined by the Committee. Cash dividends or stock
                  dividends so withheld by the Committee shall not be subject to
                  forfeiture.

         (iii)    Upon the Award of Restricted Stock, the Committee shall cause
                  a stock certificate registered in the name of the Holder to be
                  issued and, if it so determines, deposited together with the
                  stock powers with an escrow agent designated by the Committee.
                  If an escrow arrangement is used, the Committee shall cause
                  the escrow agent to issue to the Holder a receipt evidencing
                  any stock certificate held by it registered in the name of the
                  Holder.

         (iv)     The terms and conditions of a grant of Phantom Stock Units
                  shall be reflected in a written Award agreement. No shares of
                  Stock shall be issued at the time a Phantom Stock Unit Award
                  is made, and the Company will not be required to set aside a
                  fund for the payment of any such Award. Holders of Phantom
                  Stock Units shall receive an amount equal to the cash
                  dividends paid by the Company upon one share of Stock for each
                  Phantom Stock Unit then credited to such Holder's account
                  ("Dividend Equivalents"). The Committee shall, in its sole
                  discretion, determine whether to credit to the account of, or
                  to currently pay to, each Holder of an Award of Phantom Stock
                  Units such Dividend Equivalents. Dividend Equivalents credited
                  to a Holder's account shall be subject to forfeiture on the
                  same basis as the related Phantom Stock Units, and may bear
                  interest at a rate and subject to such terms as are determined
                  by the Committee.

(B)      RESTRICTIONS.

         (i)      Restricted Stock awarded to a Participant shall be subject to
                  the following restrictions until the expiration of the
                  Restricted Period, and to such other terms and conditions as
                  may be set forth in the applicable Award agreement: (1) if an
                  escrow arrangement is used, the Holder shall not be entitled
                  to delivery of the stock certificate; (2) the shares shall be
                  subject to the restrictions on transferability set forth in
                  the Award agreement; (3) the shares shall be subject to
                  forfeiture to the extent provided in subparagraph (d) and the
                  Award Agreement and, to the extent such shares are forfeited,
                  the stock certificates shall be returned to the Company, and

                                       13
<PAGE>

                  all rights of the Holder to such shares and as a shareholder
                  shall terminate without further obligation on the part of the
                  Company.

         (ii)     Phantom Stock Units awarded to any Participant shall be
                  subject to (1) forfeiture until the expiration of the
                  Restricted Period, to the extent provided in subparagraph (d)
                  and the Award agreement, and to the extent such Awards are
                  forfeited, all rights of the Holder to such Awards shall
                  terminate without further obligation on the part of the
                  Company and (2) such other terms and conditions as may be set
                  forth in the applicable Award agreement.

         (iii)    The Committee shall have the authority to remove any or all of
                  the restrictions on the Restricted Stock and Phantom Stock
                  Units whenever it may determine that, by reason of changes in
                  applicable laws or other changes in circumstances arising
                  after the date of the Restricted Stock Award or Phantom Stock
                  Award, such action is appropriate.

         (c) RESTRICTED PERIOD. The Restricted Period of Restricted Stock and
Phantom Stock Units shall commence on the Date of Grant and shall expire from
time to time as to that part of the Restricted Stock and Phantom Stock Units
indicated in a schedule established by the Committee and set forth in a written
Award agreement.

         (d) FORFEITURE PROVISIONS. Except to the extent determined by the
Committee and reflected in the underlying Award agreement, in the event a Holder
terminates employment with the Company and all Related Entities during a
Restricted Period for any reason, that portion of the Award with respect to
which restrictions have not expired shall be completely forfeited to the
Company.

         (e) DELIVERY OF RESTRICTED STOCK AND SETTLEMENT OF PHANTOM STOCK UNITS.
Upon the expiration of the Restricted Period with respect to any shares of Stock
covered by a Restricted Stock Award, the restrictions set forth in Section 10(b)
and the Award agreement shall be of no further force or effect with respect to
shares of Restricted Stock which have not then been forfeited. If an escrow
arrangement is used, upon such expiration, the Company shall deliver to the
Holder, or his beneficiary, without charge, the stock certificate evidencing the
shares of Restricted Stock which have not then been forfeited and with respect
to which the Restricted Period has expired (to the nearest full share) and any
cash dividends or stock dividends credited to the Holder's account with respect
to such Restricted Stock and the interest thereon, if any.

         Upon the expiration of the Restricted Period with respect to any
Phantom Stock Units covered by a Phantom Stock Unit Award, the Company shall
deliver to the Holder, or his beneficiary, without charge, one share of Stock
for each Phantom Stock Unit which has not then been forfeited and with respect
to which the Restricted Period has expired ("Vested Unit") and cash equal to any
Dividend Equivalents credited with respect to each such Vested Unit and the
interest thereon, if any; PROVIDED, HOWEVER, that, if so noted in the applicable
Award agreement, the Committee may, in its sole discretion, elect to pay cash or
part cash and part Stock in lieu of

                                       14
<PAGE>

delivering only Stock for Vested Units. If cash payment is made in lieu of
delivering Stock, the amount of such payment shall be equal to the Fair Market
Value of the Stock as of the date on which the Restricted Period lapsed with
respect to such Vested Unit.

         (f) STOCK RESTRICTIONS. Each certificate representing Restricted Stock
awarded under the Plan shall bear the following legend until the end of the
Restricted Period with respect to such Stock:

                  "Transfer of this certificate and the shares represented
                  hereby is restricted pursuant to the terms of a Restricted
                  Stock Agreement, dated as of , between Wright Medical Group,
                  Inc. and . A copy of such Agreement is on file at the offices
                  of the Company at 5677 Airline Road, Arlington, Tennessee
                  38002."

Stop transfer orders shall be entered with the Company's transfer agent and
registrar against the transfer of legended securities.

11.      STOCK BONUS AWARDS

         The Committee may issue unrestricted Stock under the Plan to Eligible
Persons, alone or in tandem with other Awards, in such amounts and subject to
such terms and conditions as the Committee shall from time to time in its sole
discretion determine. Stock Bonus Awards under the Plan shall be granted as, or
in payment of, a bonus, or to provide incentives or recognize special
achievements or contributions.

12.      GENERAL

         (a) ADDITIONAL PROVISIONS OF AN AWARD. Awards under the Plan also may
be subject to such other provisions (whether or not applicable to the benefit
awarded to any other Participant) as the Committee determines appropriate
including, without limitation, provisions to assist the Participant in financing
the purchase of Stock upon the exercise of Options, provisions for the
forfeiture of or restrictions on resale or other disposition of shares of Stock
acquired under any Award, provisions giving the Company the right to repurchase
shares of Stock acquired under any Award in the event the Participant elects to
dispose of such shares, and provisions to comply with Federal and state
securities laws and Federal and state tax withholding requirements. Any such
provisions shall be reflected in the applicable Award agreement.

         (b) PRIVILEGES OF STOCK OWNERSHIP. Except as otherwise specifically
provided in the Plan, no person shall be entitled to the privileges of stock
ownership in respect of shares of Stock which are subject to Awards hereunder
until such shares have been issued to that person.

         (c) GOVERNMENT AND OTHER REGULATIONS. The obligation of the Company to
make payment of Awards in Stock or otherwise shall be subject to all applicable
laws, rules, and regulations, and to such approvals by governmental agencies as
may be required. Notwithstanding any terms or conditions of any Award to the
contrary, the Company shall be under no obligation to offer to sell or to sell
and shall be prohibited from offering to sell or

                                       15
<PAGE>

selling any shares of Stock pursuant to an Award unless such shares have been
properly registered for sale pursuant to the Securities Act with the Securities
and Exchange Commission or unless the Company has received an opinion of
counsel, satisfactory to the Company, that such shares may be offered or sold
without such registration pursuant to an available exemption therefrom and the
terms and conditions of such exemption have been fully complied with. The
Company shall be under no obligation to register for sale under the Securities
Act any of the shares of Stock to be offered or sold under the Plan. If the
shares of Stock offered for sale or sold under the Plan are offered or sold
pursuant to an exemption from registration under the Securities Act, the Company
may restrict the transfer of such shares and may legend the Stock certificates
representing such shares in such manner as it deems advisable to ensure the
availability of any such exemption.

         (d) TAX WITHHOLDING. Notwithstanding any other provision of the Plan,
the Company or any Related Entity, as appropriate, shall have the right to
deduct from all Awards cash and/or Stock, valued at Fair Market Value on the
date of payment, in an amount necessary to satisfy all Federal, state or local
taxes as required by law to be withheld with respect to such Awards and, in the
case of Awards paid in Stock, the Holder or other person receiving such Stock
may be required to pay prior to delivery of such Stock, the amount of any such
taxes which are required to be withheld, if any, with respect to such Stock.
Subject in particular cases to the disapproval of the Committee, shares of Stock
of equivalent Fair Market Value in payment of such withholding tax obligations
may be accepted if the Holder of the Award elects to make payment in such
manner.

         (e) CLAIM TO AWARDS AND EMPLOYMENT RIGHTS. No employee or other person
shall have any claim or right to be granted an Award under the Plan or, having
been selected for the grant of an Award, to be selected for a grant of any other
Award. Neither the Plan nor any action taken hereunder shall be construed as
giving any Participant any right to be retained in the employ or service of the
Company or any Related Entity.

         (f) DESIGNATION AND CHANGE OF BENEFICIARY. Each Participant may file
with the Committee a written designation of one or more persons as the
beneficiary who shall be entitled to receive the rights or amounts payable with
respect to an Award due under the Plan upon his death. A Participant may, from
time to time, revoke or change his beneficiary designation without the consent
of any prior beneficiary by filing a new designation with the Committee. The
last such designation received by the Committee shall be controlling; PROVIDED,
HOWEVER, that no designation, or change or revocation thereof, shall be
effective unless received by the Committee prior to the Participant's death, and
in no event shall it be effective as of a date prior to such receipt. If no
beneficiary designation is filed by the Participant, the beneficiary shall be
deemed to be his or her spouse or, if the Participant is unmarried at the time
of death, his or her estate.

         (g) PAYMENTS TO PERSONS OTHER THAN PARTICIPANTS. If the Committee shall
find that any person to whom any amount is payable under the Plan is unable to
care for his affairs because of illness or accident, or is a minor, or has died,
then any payment due to such person or his estate (unless a prior claim therefor
has been made by a duly appointed legal representative) may, if the Committee so
directs, be paid to his spouse, child, relative, an institution maintaining

                                       16
<PAGE>

or having custody of such person, or any other person deemed by the Committee to
be a proper recipient on behalf of such person otherwise entitled to payment.
Any such payment shall be a complete discharge of the liability of the Committee
and the Company therefor.

         (h) NO LIABILITY OF COMMITTEE MEMBERS. No member of the Committee shall
be personally liable by reason of any contract or other instrument executed by
such member or on his behalf in his capacity as a member of the Committee nor
for any mistake of judgment made in good faith, and the Company shall indemnify
and hold harmless each member of the Committee and each other employee, officer
or director of the Company to whom any duty or power relating to the
administration or interpretation of the Plan may be allocated or delegated,
against any cost or expense (including counsel fees) or liability (including any
sum paid in settlement of a claim) arising out of any act or omission to act in
connection with the Plan unless arising out of such person's own fraud or
willful bad faith; PROVIDED, HOWEVER, that approval of the Board shall be
required for the payment of any amount in settlement of a claim against any such
person. The foregoing right of indemnification shall not be exclusive of any
other rights of indemnification to which such persons may be entitled under the
Company's Articles of Incorporation or By-Laws, as a matter of law, or
otherwise, or any power that the Company may have to indemnify them or hold them
harmless.

         (i) GOVERNING LAW. The Plan shall be governed by and construed in
accordance with the internal laws of the State of Delaware without regard to the
principles of conflicts of law thereof.

         (j) FUNDING. No provision of the Plan shall require the Company, for
the purpose of satisfying any obligations under the Plan, to purchase assets or
place any assets in a trust or other entity to which contributions are made or
otherwise to segregate any assets, nor shall the Company maintain separate bank
accounts, books, records or other evidence of the existence of a segregated or
separately maintained or administered fund for such purposes. Holders shall have
no rights under the Plan other than as unsecured general creditors of the
Company, except that insofar as they may have become entitled to payment of
additional compensation by performance of services, they shall have the same
rights as other employees under general law.

         (k) NONTRANSFERABILITY. A person's rights and interest under the Plan,
including amounts payable, may not be sold, assigned, donated, or transferred or
otherwise disposed of, mortgaged, pledged or encumbered except, in the event of
a Holder's death, to a designated beneficiary to the extent permitted by the
Plan, or in the absence of such designation, by will or the laws of descent and
distribution; PROVIDED, HOWEVER, the Committee may, in its sole discretion,
allow for transfer of Awards other than Incentive Stock Options to other persons
or entities.

         (l) RELIANCE ON REPORTS. Each member of the Committee and each member
of the Board shall be fully justified in relying, acting or failing to act, and
shall not be liable for having so relied, acted or failed to act in good faith,
upon any report made by the independent public accountant of the Company and any
Related Entity and upon any other information furnished in connection with the
Plan by any person or persons other than himself.

                                       17
<PAGE>

         (m) RELATIONSHIP TO OTHER BENEFITS. No payment under the Plan shall be
taken into account in determining any benefits under any pension, retirement,
profit sharing, group insurance or other benefit plan of the Company except as
otherwise specifically provided in such other plan.

         (n) EXPENSES. The expenses of administering the Plan shall be borne by
the Company.

         (o) PRONOUNS. Masculine pronouns and other words of masculine gender
shall refer to both men and women.

         (p) 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.

         (q) SHAREHOLDERS AGREEMENT. As a condition to receiving an Award under
the Plan each Participant receiving Stock or rights to acquire Stock under the
Plan shall agree to enter into a shareholders agreement to be approved by the
Board at such time as the Board deems appropriate.

13.      CHANGES IN CAPITAL STRUCTURE

         Awards granted under the Plan and any agreements evidencing such
Awards, the maximum number of shares of Stock subject to all Awards and the
maximum number of shares of Stock with respect to which any one person may be
granted Options or SARs during any year, if applicable, shall be subject to
equitable adjustment or substitution, as determined by the Committee in its sole
discretion, as to the number, price or kind of a share of Stock or other
consideration subject to such Awards (i) in the event of changes in the
outstanding Stock or in the capital structure of the Company by reason of stock
dividends, stock splits, reverse stock splits, recapitalizations,
reorganizations, mergers, consolidations, combinations, exchanges, or other
relevant changes in capitalization occurring after the Date of Grant of any such
Award or (ii) in the event of any change in applicable laws or any change in
circumstances which results in or would result in any substantial dilution or
enlargement of the rights granted to, or available for, Participants in the
Plan, or which otherwise warrants equitable adjustment because it interferes
with the intended operation of the Plan. In addition, in the event of any such
adjustment or substitution, the aggregate number of shares of Stock available
under the Plan shall be appropriately adjusted by the Committee, whose
determination shall be conclusive. Following the date that the exemption from
the application of Section 162(m) of the Code described in Section 16 (or any
other exemption having similar effect) ceases to apply to Awards, with respect
to Awards intended to qualify as "performance-based compensation" under Section
162(m) of the Code, such adjustments or substitutions shall be made only to the
extent that the Committee determines that such adjustments or substitutions may
be made without a loss of deductibility for such Awards under Section 162(m) of
the Code. The Company shall give each Participant notice of an adjustment
hereunder and, upon notice, such adjustment shall be conclusive and binding for
all purposes.

                                       18
<PAGE>

         Notwithstanding the above, in the event of any of the following:

                           A. The Company is merged or consolidated with another
                  corporation or entity and, in connection therewith,
                  consideration is received by shareholders of the Company in a
                  form other than stock or other equity interests of the
                  surviving entity;

                           B. All or substantially all of the assets of the
                  Company are acquired by another person;

                           C. The reorganization or liquidation of the Company;
                  or

                           D. The Company shall enter into a written agreement
                  to undergo an event described in clauses A, B or C above,

then the Committee may, in its discretion and upon at least 10 days advance
notice to the affected persons, cancel any outstanding Awards and pay to the
Holders thereof, in cash, the value of such Awards based upon the price per
share of Stock received or to be received by other shareholders of the Company
in the event. The terms of this Section 13 may be varied by the Committee in any
particular Award agreement.

14.      NONEXCLUSIVITY OF THE PLAN

         Neither the adoption of this Plan by the Board nor the submission of
this Plan to the stockholders of the Company for approval shall be construed as
creating any limitations on the power of the Board to adopt such other incentive
arrangements as it may deem desirable, including, without limitation, the
granting of stock options otherwise than under this Plan, and such arrangements
may be either applicable generally or only in specific cases.

15.      AMENDMENTS AND TERMINATION

         The Board may at any time terminate the Plan. Subject to Section 13,
with the express written consent of an individual Participant, the Board or the
Committee may cancel or reduce or otherwise alter outstanding Awards if, in its
judgment, the tax, accounting, or other effects of the Plan or potential payouts
thereunder would not be in the best interest of the Company. The Board or the
Committee may, at any time, or from time to time, amend or suspend and, if
suspended, reinstate, the Plan in whole or in part.

16.      EFFECT OF SECTION 162(M) OF THE CODE

         The Plan, and all Awards issued thereunder, are intended to be exempt
from the application of Section 162(m) of the Code, which restricts under
certain circumstances the Federal income tax deduction for compensation paid by
a public company to named executives in excess of $1 million per year. The
exemption is based on Treasury Regulation Section 1.162-27(f), in the form
existing on the effective date of the Plan, with the understanding that such
regulation generally exempts from the application of Section 162(m) of the Code
compensation

                                       19
<PAGE>

paid pursuant to a plan that existed before a company becomes publicly held.
Under such Treasury Regulation, this exemption is available to the Plan for the
duration of the period that lasts until the earlier of (i) the expiration or
material modification of the Plan, (ii) the exhaustion of the maximum number of
shares of Stock available for Awards under the Plan, as set forth in Section
5(a), or (iii) the first meeting of shareholders at which directors are to be
elected that occurs after the close of the third calendar year following the
calendar year in which the Company first becomes subject to the reporting
obligations of Section 12 of the Exchange Act. The Committee may, without
shareholder approval, amend the Plan retroactively and/or prospectively to the
extent it determines necessary in order to comply with any subsequent
clarification of Section 162(m) of the Code required to preserve the Company's
Federal income tax deduction for compensation paid pursuant to the Plan. To the
extent that the Committee determines as of the Date of Grant of an Award that
(i) the Award is intended to comply with Section 162(m) of the Code and (ii) the
exemption described above is no longer available with respect to such Award,
such Award shall not be effective until any stockholder approval required under
Section 162(m) of the Code has been obtained.

         IN WITNESS WHEREOF, the undersigned has caused this amended and
restated Plan to be executed on behalf of the Company as of the date first
written above.

                                     WRIGHT MEDICAL GROUP, INC.

                                     By:
                                         ------------------------------------
                                         F. Barry Bays, President and Chief
                                         Executive Officer

                                       20

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