Document:

Exhibit 10.1

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                                      Adept Technology, Inc.
Notice of Grant of Stock Options      ID: 94-2900635
and Option Agreement                  3011 Triad Drive
(AMENDED)                             Livermore, CA 94551

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Robert Bucher                                   Option Number:       R00001745
                                                 Plan:               2003

                                                 ID:                 00000001667

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Effective 5/5/06, you have been granted a(n) Non-Qualified Stock Option to buy
65,000 shares of Adept Technology, Inc. (the Company) stock at $13.9400 per
share.

Effective 10/16/06, pursuant to its terms, the Non-Qualified Stock Option shall
be exercisable for up to 60,000 shares of Company stock at $13.9400 per share.

The total option price of the shares granted is $836,400.00

Shares in each period will become fully vested on the date shown.

                Shares      Vest Type         Full Vest      Expiration
               --------   --------------    ------------     ----------

                 7,500     On Vest Date      10/16/2006       5/5/2016
                52,500          Monthly      10/16/2010       5/5/2016

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By your signature and the Company's signature below, you and the Company agree
that these options are granted under and governed by the terms and conditions of
the Company's Stock Option Plan as amended and the Option Agreement, all of
which are attached and made a part of this document.

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/s/ Steven L. Moore                                            10-17-06
----------------------------                                   -----------------
Adept Technology, Inc.                                         Date

/s/ Robert H. Bucher                                           10-17-06
----------------------------                                   -----------------
Robert Bucher                                                  Date

<PAGE>

                             ADEPT TECHNOLOGY, INC.
                              OPTION AGREEMENT FOR
                               "PERFORMANCE BASED"
                           NONQUALIFIED STOCK OPTIONS

II.  Agreement

The terms of this Option Agreement apply to any Options granted under the Adept
Technology, Inc. 2003 Stock Option Plan (the "Plan"), which are identified as
nonqualified stock options and are evidenced by a Notice of Grant attached as
Part I of this Option Agreement.

TERMS OF OPTION

     FOR GOOD AND VALUABLE CONSIDERATION, Adept Technology, Inc. (the
     "Company"), has granted to the Participant named in the notice of grant
     attached as Part I of this Option Agreement (the "Notice of Grant") a
     "performance based" nonqualified stock option (the "Option") to purchase up
     to the number of shares of the Company's common stock (the "Common Stock"),
     set forth in the Notice of Grant, at the purchase price per share and upon
     the other terms and subject to the conditions set forth in this Option
     Agreement (as amended from time to time), including the Notice of Grant,
     and the Plan. The performance objectives of these "performance based
     options" include specified financial objectives (including profits and
     earnings growth) as well as certain corporate strategic goals as determined
     and identified to the Participant on or before the date hereof. For
     purposes of this Option Agreement, any reference to the Company shall
     include a reference to any Subsidiary.

NON-QUALIFIED STOCK OPTION

     The Option is not intended to be an incentive stock option under Section
     422 of the Internal Revenue Code of 1986, as amended (the "Code") and will
     be interpreted accordingly.

<PAGE>

EXERCISE OF OPTION

     The Option shall not be exercisable as of the date the Option is granted
     (the "Grant Date") set forth in the Notice of Grant. After the Grant Date,
     to the extent not previously exercised, and subject to termination or
     acceleration as provided in this Option Agreement and the Plan, the Option
     shall be exercisable to the extent it becomes vested, as described below,
     to purchase up to that number of shares of Common Stock as set forth in the
     Notice of Grant provided that (except as set forth in Section 4.A below)
     Participant remains employed with the Company and does not experience a
     termination of employment.

     A. Vesting

     6/48th of the total number of shares subject to the options shall vest on
     the date on which Adept's Compensation Committee confirms that specified
     performance objectives have been met. Thereafter, the Performance Options
     shall vest at 1/48th of the total number of shares subject to the options
     per month in equal installments. The vesting period and/or exercisability
     of an Option may be adjusted by the Administrator to reflect the decreased
     level of employment during any period in which the Participant is on an
     approved leave of absence or is employed on a less than full time basis,
     provided that the Administrator may take into consideration any accounting
     consequences to the Company.

     B. Exercise

     To exercise the Option (or any part thereof), Participant shall deliver to
     the Company a "Notice of Exercise" on a form specified by the
     Administrator, specifying the number of whole shares of Common Stock
     Participant wishes to purchase and how Participant's shares of Common Stock
     should be registered (in Participant's name only or in Participant's and
     Participant's spouse's names as community property or as joint tenants with
     right of survivorship).

     The exercise price per share (the "Exercise Price") of the Option is set
     forth in the Notice of Grant. The Company shall not be obligated to issue
     any shares of Common Stock until Participant shall have paid the total
     Exercise Price for that number of shares of Common Stock. The Exercise
     Price may be paid in cash or by certified or cashiers' check or by such
     other method as permitted by the Administrator.

     Fractional shares may not be exercised. Shares of Common Stock will be
     issued as soon as practical after exercise.

     Notwithstanding the above, the Company shall not be obligated to deliver
     any shares of Common Stock during any period when the Company determines
     that the exercisability of the Option or the delivery of shares hereunder
     would violate any federal, state or other applicable laws, and the Option
     may be rescinded if necessary to ensure compliance with federal, state or
     other applicable laws.

<PAGE>

EXPIRATION OF OPTION

     Except as provided in this Section 4, the Option shall expire and cease to
     be exercisable as of the expiration date set forth in the Notice of Grant
     in the column titled "Expiration" (the "Expiration Date").

     A.   Upon the date of a termination of the Participant's employment as a
          result of the death or Total and Permanent Disablement (as defined in
          the Plan) of the Participant, the Option shall become fully
          exercisable, and shall be exercisable by the Participant's estate,
          heir or beneficiary for a period commencing on the date of termination
          of the Participant's employment and expiring upon the earlier of six
          (6) months following the date of termination of the Participant's
          employment or the Expiration Date of the Option.

     B.   Upon Retirement (as defined in the Plan) of the Participant, (i) any
          part of the Option that is unexercisable as of such Retirement shall
          remain unexercisable and shall terminate as of such date, and (ii)any
          part of the Option that is exercisable as of such Retirement shall
          expire upon the earlier of twelve (12) months following such
          Retirement or the Expiration Date of the Option

     C.   Upon the date of a termination of the Participant's employment for
          cause (as determined under applicable law), the Option shall
          immediately terminate and shall not be exercisable.

     D.   Upon a termination of the Participant's employment with the Company
          for any reason other than the death, Total and Permanent Disablement
          or Retirement of the Participant or for cause, (i) any part of the
          Option that is unexercisable as of such termination date shall remain
          unexercisable and shall terminate as of such date, and (ii) any part
          of the Option that is exercisable as of such termination date shall
          expire upon the earlier of thirty (30) days following such date or the
          Expiration Date of the Option.

RESTRICTIONS ON RESALES OF OPTION SHARES

     The Company may impose such restrictions, conditions or limitations as it
     determines appropriate as to the timing and manner of any resales by the
     Participant or other subsequent transfers by the Participant of any shares
     of Common Stock issued as a result of the exercise of the Option, including
     without limitation (a) restrictions under an insider trading policy, (b)
     restrictions designed to delay and/or coordinate the timing and manner of
     sales by Participant and other optionholders and (c) restrictions as to the
     use of a specified brokerage firm for such resales or other transfers.

<PAGE>

INCOME TAXES

     To the extent required by applicable federal, state, local or foreign law,
     the Participant shall make arrangements satisfactory to the Company for the
     satisfaction of any withholding tax obligations that arise by reason of an
     Option exercise or disposition of shares issued as a result of an Option
     exercise. The Company shall not be required to issue shares or to recognize
     the disposition of such shares until such obligations are satisfied.

NON-TRANSFERABILITY OF OPTION

     The Participant may not assign or transfer the Option to anyone other than
     by will or the laws of descent and distribution and the Option shall be
     exercisable only by the Participant during his or her lifetime. The Company
     may cancel the Participant's Option if the Participant attempts to assign
     or transfer it in a manner inconsistent with this Section 7.

THE PLAN AND OTHER AGREEMENTS

     In addition to the terms of this Option Agreement, the Option shall be
     subject to the terms of the Plan, which are incorporated into this Option
     Agreement by this reference. Capitalized terms not otherwise defined herein
     shall have the meaning set forth in the Plan.

     This Option Agreement, including the Notice of Grant, and the Plan
     constitute the entire understanding between the Participant and the Company
     regarding the Option. Any prior agreements, commitments or negotiations
     concerning the Option are superseded.

LIMITATION OF INTEREST IN SHARES SUBJECT TO OPTION

     Neither the Participant (individually or as a member of a group) nor any
     beneficiary or other person claiming under or through the Participant shall
     have any right, title, interest, or privilege in or to any shares of Common
     Stock allocated or reserved for the purpose of the Plan or subject to the
     this Option Agreement except as to such shares of Common Stock, if any, as
     shall have been issued to such person upon exercise of the Option or any
     part of it. Nothing in the Plan, this Option Agreement, including the
     Notice of Grant, or any other instrument executed pursuant to the Plan
     shall confer upon the Participant any right to continue in the Company's
     employ or service nor limit in any way the Company's right to terminate the
     Participant's employment at any time for any reason.

<PAGE>

GENERAL

     In the event that any provision of this Option Agreement is declared to be
     illegal, invalid or otherwise unenforceable by a court of competent
     jurisdiction, such provision shall be reformed, if possible, to the extent
     necessary to render it legal, valid and enforceable, or otherwise deleted,
     and the remainder of this Option Agreement shall not be affected except to
     the extent necessary to reform or delete such illegal, invalid or
     unenforceable provision.

     The headings preceding the text of the sections hereof are inserted solely
     for convenience of reference, and shall not constitute a part of this
     Option Agreement, nor shall they affect its meaning, construction or
     effect.

     This Option Agreement shall inure to the benefit of and be binding upon the
     parties hereto and their respective permitted heirs, beneficiaries,
     successors and assigns.

All questions arising under the Plan or under this Option Agreement shall be
decided by the Administrator in its total and absolute discretion.EXHIBIT 10.1

E-Z-EM, INC.

2004 STOCK AND INCENTIVE AWARD PLAN

As Amended by the Board of Directors on August 22,
2006

1.          Purposes.
The
primary purposes of this Plan are (a) to provide competitive equity incentives
that will enable the Company to attract, retain, motivate and reward persons
who render services that benefit the Company or other enterprises in which the
Company has a significant interest, and (b) to align the interests of such
persons with the interests of the Company’s shareholders generally.

2.       Definitions.
Unless otherwise required by the context, the following terms, when used in
this Plan, shall have the meanings set forth in this Section 2.

          (a)     “Affiliate”
means an affiliate as defined in Rule 12b-2 promulgated under Section 12 of the
Exchange Act.

          (b)     “Allied
Enterprise” means a business enterprise, other than the Company or a
Subsidiary, in which the Committee determines the Company has a significant
interest, contingent or otherwise.  

          (c)     “Appreciation-Only
Award” means (i) Options and Stock Appreciation Rights the exercise price of
which is equal to at least 100% of Fair Market Value on the date on which the
Options or Stock Appreciation Rights are granted, and (ii)  Linked Stock Appreciation Rights that are
granted as an alternative to the related Option after the date of grant of such
Option, the exercise price of which Stock Appreciation Rights is equal to at
least 100% of Fair Market Value on the date on which such Option was granted.  

          (d)     “Award”
means an award granted under this Plan in one of the forms provided for in
Section 3(a).

          (e)     “Beneficiary”
means a person or entity (including but not limited to a trust or estate),
designated in writing by a Service Provider or other rightful holder of an
Award, on such forms and in accordance with such terms and conditions as the
Committee may prescribe, to whom such Service Provider’s or other rightful
holder’s rights under the Plan shall pass in the event of the death of such
Service Provider or other rightful holder.
In the event that the person or entity so designated is not living or in
existence at the time of the death of the Service Provider or other rightful
holder of the Award, or in the event that no such person or entity has been so
designated, the “Beneficiary” shall mean the legal representative of the estate
of the Service Provider or other rightful holder, or the person or entity to
whom the Service Provider’s or other rightful holder’s rights with respect to
the Award pass by will or the laws of descent and distribution.

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          (f)     “Board”
or “Board of Directors” means the Board of Directors of the Company, as
constituted from time to time.

          (g)     “Change
in Control” means that any of the following events has occurred:

                    (i)     The
acquisition, directly or indirectly, by any Person (including Affiliates of
such Person), other than the Company or a Related Party as defined in clause
(ii) below of this Section 2(g), of beneficial ownership, as that term is
defined in Rule 13d-3 under the Exchange Act, of capital stock of the Company
entitled to exercise fifty (50%) percent or more of the outstanding voting
power of all capital stock of the Company.
For this purpose, “Person” shall have the meaning given in Section
3(a)(9) of the Exchange Act, as modified and used in Sections 13(d)(3) and
14(d)(2) thereof; or

                    (ii)     There
is consummated a merger, consolidation, recapitalization or reorganization of
the Company or a Subsidiary, reverse split of any class of voting securities of
the Company entitled to vote generally in the election of directors (“Voting
Securities”), or an acquisition of securities or assets by the Company or a
Subsidiary, other than (A) any such transaction in which the holders of
outstanding Voting Securities immediately prior to the transaction receive,
with respect to such Voting Securities (or, in the case of a transaction in
which the Company is the surviving corporation or a transaction involving a
Subsidiary, retain), voting securities of the surviving or transferee entity
representing more than fifty percent (50%) of the total voting power
outstanding immediately after such transaction, or (B) any such transaction
which would result in a Related Party beneficially owning more than 50 percent
of the voting securities of the surviving entity outstanding immediately after
such transaction.  For this purpose, the
term “Related Party” shall mean (I) a Subsidiary, (II) an employee or group of
employees of the Company or any Subsidiary, (III) a trustee or other fiduciary
holding securities under an employee benefit plan of the Company or any
Subsidiary, or (IV) a corporation or other form of business entity owned directly
or indirectly by the stockholders of the Company in substantially the same
proportion as their ownership of Voting Securities; or

                    (iii)     The
stockholders of the Company approve a plan of complete liquidation or
dissolution of the Company or an agreement for the sale or disposition by the
Company of all or substantially all of the Company’s assets, other than any
such transaction which would result in a Related Party owning or acquiring more
than 50 percent of the assets owned by the Company immediately prior to the
transaction; or

                    (iv)     The
persons who were members of the Board of Directors immediately before a tender
or exchange offer for shares of Common Stock by any person other than the
Company or a Related Party, or before a merger or consolidation of the Company
or a Subsidiary, or before an actual or threatened contested election of the
Board of Directors, or before any combination of such transactions, cease to
constitute a majority of the Board of Directors as a result of such transaction
or transactions; or   

                    (v)     Any
other event that the Committee determines (whether at the time an Award is
granted or at any time thereafter) should be treated as a change in control for
purposes of the Plan.

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          (h)     “Code”
means the Internal Revenue Code of 1986, as amended and in effect from time to
time.  References to a particular section
of the Code shall include references to any related Treasury Regulations and to
successor provisions of the Code.

          (i)     “Committee”
means the committee appointed by the Board of Directors to administer the Plan
pursuant to the provisions of Section 12(a) below.

          (j)     “Common
Stock” means common stock of the Company, par value $.10 per share.

          (k)     “Company”
means E-Z-EM, Inc., a Delaware corporation, and, except for purposes of
determining under Section 2(g) hereof whether or not a Change in Control has occurred,
shall include its successors.      

          (l)     “Dollar-Denominated
Awards” means Performance Unit Awards and any other Incentive Award the amount
of which is based on a specified amount of money (other than an amount of money
determined by reference to the Fair Market Value of a specified number of shares
of Common Stock).  Options and Stock
Appreciation Rights are not Dollar-Denominated Awards.

          (m)     “Effective
Date” means the date (if any) on which the shareholders of the Company approve
the Plan either (i) at a duly held stockholders’ meeting, or (ii) by the
written consent of the holders of a majority of the securities of the Company
entitled to vote, in accordance with any applicable provisions of the Delaware
General Corporation Law.

          (n)     “Employee”
means any person who is employed by the Company or a Subsidiary on a full-time
or part-time basis, including an officer or director if he is so employed.

          (o)     “Exchange
Act” means the Securities Exchange Act of 1934, as amended from time to time.

          (p)     “Fair
Market Value” on a particular date means as follows:

	
   

  	
   

  	
   

  
	
   

  	
            (i)          The
  mean between the high and low sale prices of a share of Common Stock on such
  date, as reported by the Wall Street Journal or such other source as the
  Committee may consider acceptable or, if on such date the Common Stock is
  publicly traded but sale prices are not quoted by a source acceptable to the
  Committee, the mean of the closing bid and asked prices of a share of Common
  Stock on such date as furnished by a professional market maker making a
  market in the Common Stock; or

  
	
   

  	
   

  	
   

  
	
   

  	
            (ii)          If
  in (i) above, there were no sales on such date reported as provided above,
  the respective prices on the most recent prior day on which a sale was so
  reported.

  

In the case of
an Incentive Stock Option, if the foregoing method of determining fair market
value should be inconsistent with Section 422 of the Code, “Fair Market Value”
shall be 

A-3

determined by
the Committee in a manner consistent with Section 422 of the Code and shall
mean the value as so determined.  

          (q)     “General
Counsel” means the General Counsel of the Company serving from time to time.

          (r)     “Incentive
Award” means an amount of money that is paid or a number of shares of Common
Stock that are issued, or a right to be paid an amount of money or to be issued
a number of shares of Common Stock that is granted, subject to and in
accordance with Section 5 and the other applicable provisions of the Plan.  The term “Incentive Award” does not include
Options or Stock Appreciation Rights.

          (s)     “Incentive
Stock Option” means an option, including an Option as the context may require,
intended to meet the requirements of Section 422 of the Code.

          (t)     “Linked
Stock Appreciation Rights” means Stock Appreciation Rights that are linked to
all or any part of an Option, subject to and in accordance with Section 8(a),
8(b) and the other applicable provisions of the Plan.

          (u)     “Non-Statutory
Stock Option” means an option, including an Option as the context may require,
which is not intended to be an Incentive Stock Option.

          (v)     “Option”
means an option granted under this Plan to purchase shares of Common Stock.
Options may be Incentive Stock Options or Non-Statutory Stock Options.

          (w)     “1983
Plan” means the E-Z-EM, Inc. 1983 Stock Option Plan as amended and in effect
from time to time.

          (x)     “1984
Plan” means the E-Z-EM, Inc. 1984 Directors and Consultants Stock Option Plan
as amended and in effect from time to time.

          (y)     “Performance-Based
Compensation” means compensation that satisfies the requirements applicable to
“performance-based compensation” under Code Section 162(m)(4)(C).

          (z)     “Performance Share
Award” means a right granted
subject to and in accordance with Section 5 and the other applicable provisions
of the Plan (including, without limitation, Section 5.II.,  5.II.(d), and 6(e)) to receive a specified
number of shares of Common Stock, and/or an amount of money determined by
reference to the Fair Market Value of a specified number of shares of Common
Stock, at a future time or times if a specified performance goal is attained
and any other terms or conditions set forth or incorporated by reference in the
written instrument documenting the Performance Share Award are satisfied.  

          (aa)     “Performance
Unit Award” means a right granted subject to and in accordance with  Section 5 and the other applicable provisions
of the Plan (including, without limitation, Section 5.II.,  5.II.(d),
and 6(e))  to receive a specified
amount of money (other than an amount 

A-4

of money
determined by reference to the Fair Market Value of a specified number of
shares of Common Stock), or shares of Common Stock having a Fair Market Value
equal to such specified amount of money, at a future time or times if a
specified performance goal is attained and any other terms or conditions set
forth or incorporated by reference in the written instrument documenting the
Performance Unit Award are satisfied.  

          (bb)     “Plan”
means the E-Z-EM, Inc. Stock and Incentive Award Plan set forth in these pages,
as amended from time to time.

          (cc)     “Restricted
Stock Award” means shares of Common Stock which are issued to a Service
Provider in accordance with Section 5.I. and the other applicable provisions of
the Plan  subject to restrictions and/or
forfeiture provisions specified by the Committee that will cease to apply at a
future time or times if continued employment conditions and/or other terms and
conditions set forth or incorporated by reference in the written instrument
documenting the Restricted Stock Award are satisfied.  

          (dd)     “Restricted
Stock Unit Award” means shares of Common Stock that will be issued to a Service
Provider at a future time or times subject to and in accordance with Section
5.I. below and the other applicable provisions of the Plan if continued
employment conditions and/or other terms and conditions set forth or
incorporated by reference in the written instrument documenting the Restricted
Stock Unit Award are satisfied. 

          (ee)     “SEC
Rule 16b-3” means Rule 16b-3 of the Securities and Exchange Commission
promulgated under the Exchange Act, as such rule or any successor rule may be
in effect from time to time.

          (ff)     “Service
Provider” means a person who renders, has rendered or who the Committee expects
to render services that benefit or will benefit the Company or a Subsidiary or
an Allied Enterprise, in the capacity of employee, director, independent
contractor, agent, advisor, consultant, representative or otherwise, and
includes but is not limited to (i) Employees, (ii) personal service
corporations, limited liability companies and similar entities through which
any such person renders, has rendered or is expected to render such services,
and (iii) members of the Board who are not
Employees.

          (gg)     “Stock
Appreciation Right” means a right granted subject to and in accordance with
Section 8 and the other applicable provisions of the Plan.

          (hh)     “Subsidiary”
means a corporation or other form of business association of which shares (or
other ownership interests) having more than 50% of the voting power are owned or
controlled, directly or indirectly, by the Company; provided, however, that in
the case of an Incentive Stock Option, the term “Subsidiary” shall mean a
Subsidiary (as defined by the preceding clause) which is also a “subsidiary
corporation” as defined in Section 424(f) of the Code.

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3.       Grants
of Awards

          (a)     Subject
to the provisions of the Plan, the Committee may at any time, and from time to
time, grant the following types of awards to any Service Provider:

	
   

  	
   

  	
   

  
	
   

  	
            (i)          Incentive
  Awards, which may but need not be in the form of Performance Share Awards,
  Performance Unit Awards, Restricted Stock Awards, or Restricted Stock Unit
  Awards;

  
	
   

  	
   

  	
   

  
	
   

  	
            (ii)          Options;
  and

  
	
   

  	
   

  	
   

  
	
   

  	
            (iii)          Stock
  Appreciation Rights.

  

Any provision
above of this Section 3(a) to the contrary notwithstanding, the Committee may
grant Incentive Stock Options only to Service Providers who are Employees.

          (b)     After
an Award has been granted,

	
   

  	
   

  	
   

  
	
   

  	
            (i)          the
  Committee may waive any term or condition thereof that could have been
  excluded from such Award when it was granted, and 

  
	
   

  	
   

  	
   

  
	
   

  	
            (ii)          with
  the written consent of the affected participant, may amend any Award after it
  has been granted to include (or exclude) any provision which could have been
  included in (or excluded from) such Award when it was granted,

  

and no
additional consideration need be received by the Company in exchange for such
waiver or amendment.

          (c)     The
Committee may (but need not) grant any Award linked to another Award,
including, without limitation, Options linked to Stock Appreciation
Rights.  Linked Awards may be granted as
either alternatives or supplements to one another.  The terms and conditions of any such linked Awards shall be
determined by the Committee, subject to the provisions of the Plan.

          (d)     No Service Provider shall acquire
any rights in
or to or with respect to any Award unless and until a written instrument
signed by an officer of the Company and
setting forth or incorporating by reference the terms and conditions of such
Award is delivered to the Service Provider and is returned to the designated
Company representative subscribed by the Service Provider within the time, if
any, prescribed therefor by the Committee or its delegate. Any such instrument
shall be consistent with this Plan and incorporate it by reference.  Subscribing such instrument and returning it
to the designated Company representative as aforesaid shall constitute the
Service Provider’s irrevocable agreement to and acceptance of the terms and
conditions of the Award set forth or incorporated by reference in such
instrument and the terms and conditions of the Plan applicable to such Award.

          (e)     The
Committee may grant Awards that qualify as Performance-Based Compensation, as
well as Awards that do not qualify as Performance-Based Compensation.  Any

A-6

provision of
the Plan to the contrary notwithstanding, the Plan shall be interpreted,
administered and construed to permit the Committee to grant Awards that qualify
as Performance-Based Compensation as well as Awards that do not so qualify, and
any provision of the Plan that cannot be so interpreted, administered or
construed shall to that extent be disregarded.

          (f)        The
Plan is intended to enable the Committee to grant Options that qualify for the
tax treatment applicable to incentive stock options under Section 422 of the
Code, as well as Options and other Awards that do not qualify for such tax
treatment. Any provision of the Plan to the contrary notwithstanding, the Plan
shall be interpreted, administered and construed to enable the Committee to
grant Options that qualify for the tax treatment applicable to incentive stock
options under Section 422 of the Code as well as Options and other Awards that
do not qualify for such tax treatment, and any provision of the Plan that
cannot be so interpreted, administered or construed shall to that extent be
disregarded.

4.        Stock Subject
to this Plan; Award Limits

           (a)       Subject
to the provisions below of Sections 4(c) and 4(d) and Section 10, 

	
 

	
 

	
 

	
 

	
          (i)          the
  maximum aggregate number of shares of Common Stock which may be issued
  pursuant to Awards is 1,050,000 shares of Common Stock, plus (A) the number
  of shares of Common Stock, if any, that remain available immediately prior to
  the Effective Date for grants of options under the 1983 Plan,plus
  (B) the number of shares of Common Stock, if any, that remain available
  immediately prior to the Effective Date for grants of options under the 1984
  Plan, plus (C) the number of shares of Common Stock, if any, that, if (notwithstanding
  Section 11 below) options could be granted under the 1983 Plan or the 1984
  Plan on or after the Effective Date, would become available on or after the
  Effective Date for grants of options under either the 1983 Plan or the 1984
  Plan as a result of options granted before the Effective Date terminating on
  or after the Effective Date without having been exercised in whole or in
  part. Not more than 800,000 of such maximum aggregate number of shares may be
  issued pursuant to Options that are Incentive Stock Options; and 

	
 

	
 

	
 

	
 

	
          (ii)          the
  maximum number of shares of Common Stock with respect to which Options or
  Stock Appreciation Rights may be granted during any calendar year to any
  Employee or other Service Provider is 200,000 shares of Common Stock; and 

	
 

	
 

	
 

	
 

	
          (iii)          the
  maximum number of shares of Common Stock with respect to which any and all
  Awards other than Appreciation-Only Awards and Dollar-Denominated Awards may
  be granted in any one calendar year to any Employee or other Service Provider
  is 100,000 shares of Common Stock; and 

	
 

	
 

	
 

	
 

	
          (iv)          no
  Employee or other Service Provider may receive more than $400,000 (or the
  equivalent thereof in shares of Common Stock, based on Fair Market Value on
  the date as of which the number of shares is determined) in payment of
  Dollar-Denominated Awards that are granted to such Employee or other Service
  Provider in any one calendar year.

A-7

If, after any
Award is earned or exercised, the issuance or transfer of shares of Common
Stock or payment of money is deferred, any amounts equivalent to dividends or
other earnings during the deferral period (including shares which may be
distributed in payment of any such amounts) shall be disregarded in applying the
per Employee or other Service Provider limitations set forth above in clauses
(ii), (iii) and (iv) of this Section 4(a). If, in connection with an
acquisition of another company or all or part of the assets of another company
by the Company or a Subsidiary, or in connection with a merger or other
combination of another company with the Company or a Subsidiary, the Company
either (A) assumes stock options or other stock incentive obligations of such
other company, or (B) grants stock options or other stock incentives in
substitution for stock options or other stock incentive obligations of such
other company, then none of the shares of Common Stock that are issuable or
transferable pursuant to such stock options or other stock incentives that are
assumed or granted in substitution by the Company shall be charged against the
limitations set forth in this Section 4(a) above. 

          (b)          Shares
which may be issued pursuant to Awards may be authorized but unissued shares of
Common Stock, or shares of Common Stock held in the treasury, whether acquired
by the Company specifically for use under this Plan or otherwise, as the
Committee may from time to time determine, provided, however, that any shares
acquired or held by the Company for the purposes of this Plan shall, unless and
until issued to a Service Provider or other rightful holder of an Award in
accordance with the terms and conditions of such Award, be and at all times
remain treasury shares of the Company, irrespective of whether such shares are entered
in a special account for purposes of this Plan, and shall be available for any
corporate purpose.

          (c)          Subject
to Section 4(e) below, the maximum aggregate number of shares set forth in
Section 4(a)(i) above (including the maximum aggregate number of shares that
may be issued pursuant to Options that are Incentive Stock Options) shall be
charged only for the number of shares which are actually issued under the Plan;
if any shares of Common Stock subject to an Award shall not be issued to a
Service Provider and shall cease to be issuable to a Service Provider because
of the termination, expiration, forfeiture or cancellation, in whole or in
part, of such Award or the settlement of such Award in cash or for any other
reason, or if any such shares shall, after issuance, be reacquired by the
Company because of a Service Provider’s failure to comply with the terms and
conditions of an Award, the shares not so issued, or the shares so reacquired
by the Company, as the case may be, shall no longer be charged against the
limitations provided for in Section 4(a)(i) above and may again be made subject
to Awards. 

          (d)          Subject
to Section 4(e) below, if the purchase price of shares subject to an Option is
paid in shares of Common Stock in accordance with the provisions of clause (iv)
of Section 7(b) below, or if shares of Common Stock that are issued or issuable
pursuant to an Award are withheld by the Company in accordance with Section
13(e) below in full or partial satisfaction of withholding taxes due in respect
of the Award or due in respect of the grant, exercise, vesting, distribution or
payment of the Award, the number of shares surrendered to the Company in
payment of the purchase price of the shares subject to the Option, or the
number of shares that are withheld by the Company in payment of such
withholding taxes, shall be added back to the maximum aggregate number of
shares which may be issued pursuant to Awards under Section 4(a)(i) above, so
that the maximum aggregate number of shares which may be issued pursuant to 

A-8

Awards and
pursuant to Options that are Incentive Stock Options under Section 4(a)(i)
above shall have been charged only for the net number of shares that were
issued by the Company pursuant to the Option exercise or the Award.

           (e)          If
and to the extent that the General Counsel determines that Section 4(c) or
Section 4(d) above or Section 8(f) below shall cause the Company or the Plan to
fail to satisfy any rules or listing standards that apply to the Company from
time to time (whether of the American Stock Exchange, The Nasdaq Stock Market
or any other stock exchange or self-regulatory organization), or shall prevent
Incentive Stock Options granted under the Plan from qualifying as Incentive
Stock Options under Code Section 422, then to that extent (and only to that
extent) Section 4(c), Section 4(d) or Section 8(f) shall be disregarded. For
example, if the General Counsel determines that one or more of the
aforementioned Sections of the Plan will prevent Incentive Stock Options
granted under the Plan from qualifying as Incentive Stock Options under Code
Section 422 if such Sections of the Plan are applied in determining the number
of shares of Common Stock that are available from time to time to be issued
pursuant to Options that are Incentive Stock Options, and determines that such
Sections of the Plan will not prevent Incentive Stock Options granted under the
Plan from qualifying as Incentive Stock Options under Code Section 422 if such
Sections of the Plan are applied in determining the number of shares of Common
Stock that are available from time to time to be issued pursuant to Options
that are Non-Statutory Stock Options or other Awards that are not Incentive
Stock Options, then such Sections of the Plan shall be disregarded for purposes
of determining the number of shares of Common Stock that are available from
time to time to be issued pursuant to Options that are Incentive Stock Options,
but not for purposes of determining the number of shares of Common Stock that
are available from time to time to be issued pursuant to Options that are
Non-Statutory Stock Options or other Awards that are not Incentive Stock
Options.

5.          Incentive
Awards

             I.          Generally.
Incentive Awards shall be subject to the following provisions:

                          (a)          Incentive
Awards may be granted in lieu of, or as a supplement to, any other compensation
that may have been earned by the Service Provider prior to the date on which
the Incentive Award is granted. The amount of an Incentive Award may be based
upon (i) a specified number of shares of Common Stock or the Fair Market Value
of a specified number of shares of Common Stock, or (ii) an amount of money not
determined by reference to the Fair Market Value of a specified number of
shares of Common Stock. Any Incentive Award may be paid in the form of money or
shares of Common Stock valued at their Fair Market Value on the payment date,
or a combination of money and such shares, as the Committee may provide.
Performance Share Awards, Performance Unit Awards, Restricted Stock Awards and
Restricted Stock Unit Awards are specific forms of Incentive Awards, but are
not the only forms in which Incentive Awards may be made.

                          (b)          Any
shares of Common Stock that are to be issued pursuant to an Incentive Award,
and any money to be paid in respect of an Incentive Award, may be issued or
paid to the Service Provider at the time such Award is granted, or at any time
subsequent thereto, or in installments from time to time, as the Committee
shall determine. In the event that any 

A-9

such issuance
or payment shall not be made to the Service Provider at the time an Incentive
Award is granted, the Committee may but need not provide that, until such
shares are issued or money is paid in respect of the Award or until the Award
is forfeited, and subject to such terms and conditions as the Committee may
impose, the Award shall earn amounts equivalent to interest, dividends or
another investment return specified by the Committee, which amounts may be paid
as earned or deferred and reinvested, and which amounts may be paid either in
money or shares of Common Stock, all as the Committee may provide. 

                          (c)          Incentive
Awards shall be subject to such terms and conditions, including, without
limitation, restrictions on the sale or other disposition of the shares issued
or transferred pursuant to such Award, and conditions calling for forfeiture of
the Award or the shares issued pursuant thereto in designated circumstances, as
the Committee may determine; provided, however, that upon the issuance of
shares pursuant to any such Award, the recipient shall, with respect to such
shares, be and become a shareholder of the Company fully entitled to receive
dividends, to vote and to exercise all other rights of a shareholder except to
the extent otherwise provided in the Award. In the case of a Restricted Stock
Award, the recipient shall pay the par value of the shares to be issued
pursuant to the Award unless such payment is not required by applicable law.

          II.           Performance
Share Awards and Performance Unit Awards

                          (a)          Subject
to the terms and conditions of the Plan, the Committee may grant any Service
Provider a Performance Share Award and/or a Performance Unit Award. The
Committee may but need not provide that a specified portion of the Performance
Share Award or Performance Unit Award will be earned if the specified
performance goal applicable to the Award is partially attained. 

                          (b)          Subject
to Section 6(b) below, the specified performance goal applicable to a
Performance Share Award or Performance Unit Award may but need not consist,
without limitation, of any one or more of the following: completion of a
specified period of employment with or other service that benefits the Company
or a Subsidiary or an Allied Enterprise, achievement of financial or operational
goals, and/or the occurrence of a specified circumstance or event. The
performance goal applicable to Performance Share Awards and Performance Unit
Awards, and the other terms and conditions of such awards, need not be the same
for each award or each Service Provider to whom an award is granted. A Service
Provider may (but need not) be granted Performance Share Awards and Performance
Unit Awards each year, and the performance period applicable to any such Award
may overlap with one or more years included in the performance period
applicable to any earlier- or later-granted Award. Subject to Section 6(d)
below, the Committee may retain discretion to adjust the determinations of the
degree of attainment of the performance objectives applicable to Performance
Share Awards and Performance Unit Awards.

                          (c)          Subject
to Section 6(e) below, the Committee may but need not provide that, if the
Service Provider’s death or disability or another circumstance or event
specified by the Committee occurs before the performance goal applicable to a
Performance Share Award or Performance Unit Award is attained, and irrespective
of whether the performance goal is 

A-10

thereafter attained, the Performance Share Award or Performance Unit
Award will be earned in whole or in part (as the Committee may specify). 

                          (d)          The
Committee may but need not provide for a Service Provider’s Performance Share
Award or Performance Unit Award to be forfeited in whole or in part if such
Participant’s employment by or other service that benefits the Company, a
Subsidiary or an Allied Enterprise terminates for any reason before shares are
issued or money is paid (as applicable) in full settlement of such Performance
Share Award or Performance Unit Award. 

                          (e)          Except
as otherwise provided in the instrument evidencing a Performance Share Award or
Performance Unit Award, Performance Share Awards and Performance Unit Awards
may not be sold, transferred, pledged, assigned, or otherwise alienated or
hypothecated, other than by will or by the laws of descent and distribution or
to a Beneficiary.

6.          Performance
Measures and Other Provisions
Applicable to Performance-Based Compensation Awards

             (a)          Awards
that the Committee intends to qualify as Performance-Based Compensation shall
be granted and administered in a manner that will enable such Awards to qualify
as Performance-Based Compensation. 

             (b)          The
performance goal applicable to any Award (other than an Appreciation-Only
Award) that the Committee intends to qualify as Performance-Based Compensation
shall be based on earnings per share, total shareholder return, Common Stock
price performance or any one or more of the following performance measures on
a consolidated Company, business unit or divisional level, or by product or
product line, as the Committee may specify: net sales, net income, operating
profit, return on equity, return on capital, or cash flow.The Committee shall select the
performance measure or measures on which the performance goal applicable to any
such Award shall be based and shall establish the levels of performance at
which such Award is to be earned in whole or in part. Any such performance
measure or combination of such performance measures may apply to the Service
Provider’s Award in its entirety or to any designated portion or portions of
the Award, as the Committee may specify. Any such performance measure or
combination of such performance measures may be based on absolute performance
or performance relative to an index or one or more other companies that the
Committee may specify. The foregoing performance measures shall be determined
in accordance with generally accepted accounting principles (“GAAPs”) to the
extent that GAAPs define such performance measures, and otherwise shall be
determined in accordance with any customary and reasonable definition the
Committee approves. However, notwithstanding the preceding sentence, unless the
Committee determines otherwise prior to payment of an Award to which this
Section 6(b) applies, and subject to any exercise of “negative discretion” by
the Committee, extraordinary, unusual or non-recurring items; discontinued
operations; effects of accounting changes; effects of currency fluctuations;
effects of financing activities (by way of example, without limitation, effect
on earnings per share of issuing convertible debt securities); expenses for
restructuring or productivity initiatives; non-operating items; effects of
acquisitions and acquisition expenses; and effects of divestitures and
divestiture expenses, any of which affect any performance goal applicable to
such Award (including, without limitation, earnings per share 

A-11

but excluding
total shareholder return and Common Stock price performance) shall be
automatically excluded or included in determining the extent to which the
performance goal has been achieved, whichever will produce the higher Award. 

          (c)          Any
provision of the Plan to the contrary notwithstanding, but subject to Section
6(e), Section 9 and Section 10 below, Awards to which Section 6(b) above
applies shall (i) “be paid solely on account of the attainment of one or more
preestablished, objective performance goals” (within the meaning of Treasury
Regulation 1.162-27(e)(2) or its successor) over a period of one year or
longer, which performance goals shall be based upon one or more of the
performance measures set forth in Section 6(b) above, and (ii) be subject to
such other terms and conditions as the Committee may impose. 

          (d)          The
terms of the performance goal applicable to any Award to which Section 6(b)
above applies shall preclude discretion to increase the amount of
compensation that would otherwise be due upon attainment of the goal.

          (e)          An
Award to which Section 6(b) above applies
may be earned in whole or in part if the Service Provider’s death or disability
or a Change in Control or another circumstance or event specified by the
Committee occurs before the performance goal applicable to the Award is
attained, and irrespective of whether the performance goal applicable to the
Award is thereafter attained, but only if and to the extent that (i) the Committee
so provides with respect to such Award, and (ii) the Award will nevertheless
qualify as Performance-Based Compensation if the performance goal applicable to
such Award is attained and the Service Provider’s death or disability, a Change
in Control or any such other circumstance or event specified by the Committee
does not occur. 

7.        Options. Options
shall be subject to the following provisions and such other terms and
conditions, consistent with the following provisions, as the Committee may
provide in the instrument evidencing the Options:

          (a)          Subject
to the provisions of Section 10, the purchase price per share shall be, in the
case of an Incentive Stock Option, not less than 100% of the Fair Market Value
of a share of Common Stock on the date the Incentive Stock Option is granted
(or in the case of any optionee who, at the time such Incentive Stock Option is
granted, owns stock possessing more than 10 percent of the total combined
voting power of all classes of stock of his employer corporation or of its
parent or subsidiary corporation, not less than 110% of the Fair Market Value
of a share of Common Stock on the date the Incentive Stock Option is granted)
and, in the case of a Non-Statutory Stock Option, not less than the par value
of a share of Common Stock on the date the Non-Statutory Stock Option is
granted. Subject to the foregoing limitations, the purchase price per share
may, if the Committee so provides at the time of grant of an Option, be indexed
to the increase or decrease in an index or in stock prices of one or more other
companies specified by the Committee.

          (b)          The
purchase price of shares subject to an Option may be paid in whole or in part
(i) in money, (ii) by bank-certified, cashier’s or personal check subject to
collection, (iii) if so provided in the Option and subject to Section 402 of
the Sarbanes-Oxley Act of 2002 as 

A-12

amended from
time to time and subject to such terms and conditions as the Committee may
impose, by delivering to the Company a properly executed exercise notice
together with a copy of irrevocable instructions to a stockbroker to sell
immediately some or all of the shares acquired by exercise of the option and to
deliver promptly to the Company an amount of sale proceeds (or, in lieu of or
pending a sale, loan proceeds) sufficient to pay the purchase price, or (iv) if
so provided in the Option and subject to such terms and conditions as may be
specified in the Option, in shares of Common Stock which are surrendered to the
Company actually or by attestation. Shares of Common Stock thus surrendered
shall be valued at their Fair Market Value on the date of exercise. 

          (c)          Options
may be granted for such lawful consideration, including but not limited to
money or other property, tangible or intangible, or labor or services received
or to be received by the Company, a Subsidiary or an Allied Enterprise, as the
Committee may determine when the Option is granted. The consideration for the
grant of options may consist of the discharge of an obligation of the Company
or an Affiliate. Subject to the foregoing and the other provisions of this
Section 7, each Option may be exercisable in full at the time of grant or may
become exercisable in one or more installments and at such time or times and
subject to such terms and conditions, as the Committee may determine. Without
limiting the foregoing, an Option may (but need not) provide by its terms that
it will become exercisable in whole or in part upon the completion of specified
periods of service or earlier achievement of one or more performance objectives
specified therein, or that it will become exercisable only if one or more
performance goals specified therein are achieved. The Committee may at any time
accelerate the date on which an Option becomes exercisable, and no additional
consideration need be received by the Company in exchange for such
acceleration. Unless otherwise provided in the instrument evidencing the
Option, an Option, to the extent it becomes exercisable, may be exercised at
any time in whole or in part until the expiration or termination of the Option.

          (d)          Subject
to Section 13(a) below, each Option shall be exercisable during the life of the
optionee only by him or his guardian or legal representative, and after death
only by his Beneficiary. Notwithstanding any other provision of this Plan, (i)
no Option shall be exercisable after the tenth anniversary of the date on which
the Option was granted, and (ii) no Incentive Stock Option which is granted to
any optionee who, at the time such Option is granted, owns stock possessing
more than 10 percent of the total combined voting power of all classes of stock
of his employer corporation or of its parent or subsidiary corporation, shall
be exercisable after the expiration of five (5) years from the date such Option
is granted. If an Option is granted for a term of less than ten years, the
Committee may, at any time prior to the expiration of the Option, extend its
term for a period ending not later than on the tenth anniversary of the date on
which the Option was granted, and no additional consideration need be received
by the Company in exchange for such extension. Subject to the foregoing
provisions of this Section 7(d), the Committee may but need not provide for an
Option to be exercisable after termination of the Service Provider’s employment
or other service for any period and subject to any terms and conditions that
the Committee may determine.

          (e)          An
Option may, but need not, be an Incentive Stock Option; provided that the
aggregate Fair Market Value (determined as of the time the option is granted)
of the stock with respect to which Incentive Stock Options may be exercisable
for the first time by any Employee 

A-13

during any
calendar year (under all plans, including this Plan, of his employer
corporation and its parent and subsidiary corporations) shall not exceed
$100,000 unless the Code is amended to allow a higher dollar amount.

          (f)          Shares
purchased pursuant to the exercise of an Option shall be issued to the person
exercising the Option as soon as practicable after the Option is properly
exercised. However, the Committee may (but need not) permit the person
exercising an Option to elect to defer the issuance of shares purchased
pursuant to the exercise of the Option on such terms and subject to such
conditions and for such periods of time as the Committee may in its discretion
provide. In the event of such deferral, the Committee may (but need not) pay
the person who exercised the Option amounts equivalent to any dividends paid on
or reinvested in such shares during the deferral period. Such amounts may be
paid in cash or shares, as the Committee may provide. 

          (g)          The
Committee shall not have the authority to
reduce the purchase price of shares under outstanding Options, except as
permitted by Section 10 below (relating to adjustments for changes in
capitalization and similar adjustments). If the Committee grants an
Option under which the purchase price of the optioned shares is indexed to the
increase or decrease in a specified index or in stock prices of one or more
other specified companies, as permitted by Section 7(a) above, a reduction in
the purchase price resulting from a decrease in the index shall not be deemed
to violate the first sentence of this Section 7(g).

          (h)          No
Employee shall make any elective contribution or employee contribution to the
Plan (within the meaning of Treasury Regulation Section
1.401(k)-1(d)(2)(iv)(B)(4) or a successor thereto) during the six months after
the Employee’s receipt of a hardship distribution from a plan of the Company or
a related party within the provisions of Code Sections 414(b), (c), (m) or (o) containing
a cash or deferred arrangement under Section 401(k) of the Code. The preceding
sentence shall not apply if and to the extent that the General Counsel
determines it is not necessary to qualify any such plan as a cash or deferred
arrangement under Section 401(k) of the Code.

          (i)          No
option shall be exercisable unless and until the Company (i) obtains the
approval of all regulatory bodies whose approval the General Counsel may deem
necessary or desirable, and (ii) complies with all legal requirements deemed
applicable by the General Counsel.

          (j)          An
Option shall be considered exercised if and when written notice, signed by the
person exercising the Option and stating the number of shares with respect to
which the Option is being exercised, is received by the designated
representative of the Company on a properly completed form approved for this
purpose by the Committee, accompanied by full payment of the Option exercise
price in one or more of the forms authorized in the instrument evidencing such
Option and described in Section 7(b) above for the number of shares to be
purchased. No Option may at any time be exercised with respect to a fractional
share unless the instrument evidencing such Option expressly provides otherwise.

A-14

8.       Stock Appreciation Rights.
Stock Appreciation Rights shall be subject
to such terms and conditions, not inconsistent with the Plan, as shall from
time to time be determined by the Committee and to the following terms and
conditions:

          (a)     Stock
Appreciation Rights that are granted under the Plan may be linked to all or any
part of an Option (“Linked Stock Appreciation Rights”), or may be granted
without any linkage to an Option (“Free-Standing Stock Appreciation Rights”). Linked
Stock Appreciation Rights may be granted on the date of grant of the related
Option or on any date thereafter, as the Committee may determine.

          (b)     Linked
Stock Appreciation Rights may be granted either as an alternative or a
supplement to the Option to which they are linked (the “related” Option). Linked
Stock Appreciation Rights that are granted as an alternative to the related
Option may only be exercised when the related Option is exercisable, and at no
time may a number of such Linked Stock Appreciation Rights be exercised that
exceeds the number of shares with respect to which the related Option is then
exercisable. Upon exercise of Linked Stock Appreciation Rights that are granted
as an alternative to an Option, the holder shall be entitled to receive the
amount determined pursuant to Section 8(e) below. Exercise of each such Linked
Stock Appreciation Right shall cancel the related Option with respect to one
share of Common Stock purchaseable under the Option. Linked Stock Appreciation
Rights that are granted as a supplement to the related Option shall entitle the
holder to receive the amount determined pursuant to Section 8(e) below if and
when the holder purchases shares under the related Option or at any subsequent
time specified in the instrument evidencing such Stock Appreciation Rights.

          (c)     Stock
Appreciation Rights may be granted for such lawful consideration, including but
not limited to money or other property, tangible or intangible, or labor or
services received or to be received by the Company, a Subsidiary or an Allied
Enterprise, as the Committee may determine when the Stock Appreciation Rights
are granted. The consideration for the grant of Stock Appreciation Rights may
consist of the discharge of an obligation of the Company or an Affiliate. Subject
to the foregoing and the other provisions of this Section 8, Stock Appreciation
Rights may be exercisable in full at the time of grant or may become
exercisable in one or more installments and at such time or times and subject
to such terms and conditions, as the Committee may determine. Without limiting
the foregoing, Stock Appreciation Rights may (but need not) provide by their
terms that they will become exercisable in whole or in part upon the completion
of specified periods of service or earlier achievement of one or more specified
performance objectives, or that they will become exercisable only if one or
more specified performance goals are achieved. The Committee may at any time
accelerate the date on which Stock Appreciation Rights become exercisable, and
no additional consideration need be received by the Company in exchange for
such acceleration. Unless otherwise provided in the Plan or the instrument
evidencing the Stock Appreciation Rights, Stock Appreciation Rights, to the
extent they become exercisable, may be exercised at any time in whole or in
part until they expire or terminate.

          (d)     No
Free-Standing Stock Appreciation Rights or Linked Stock Appreciation Rights
that are granted as a supplement to the related Option shall be exercisable
after the tenth anniversary of the date on which the Stock Appreciation Rights
were granted, and no Linked 

A-15

Stock Appreciation Rights
that are granted as an alternative to the related Option shall be exercisable
after the related Option ceases to be exercisable. If the Committee grants
Stock Appreciation Rights for a lesser term than that permitted by the preceding
sentence, the Committee may, at any time prior to expiration of the Stock
Appreciation Rights, extend their term to the maximum term permitted by the
preceding sentence, and no additional consideration need be received by the
Company in exchange for such extension. Subject to the foregoing provisions of
this Section 8(d), the Committee may but need not provide for Stock
Appreciation Rights to be exercisable after termination of the Service Provider’s
employment or other service for any period and subject to any terms and
conditions that the Committee may determine.

          (e)     Upon
exercise of Stock Appreciation Rights, the holder thereof shall be entitled to
receive an amount of money, or a number shares of Common Stock that have a Fair
Market Value on the date of exercise of such Stock Appreciation Rights, or a
combination of money and shares valued at Fair Market Value on such date, as
the Committee may determine, equal to the amount by which the Fair Market Value
of a share of Common Stock on the date of such exercise exceeds the Exercise
Price (as hereafter defined) of the Stock Appreciation Rights, multiplied by
the number of Stock Appreciation Rights exercised; provided that in no event
shall a fractional share be issued unless the instrument evidencing such Stock
Appreciation Rights expressly provides otherwise. In the case of Linked Stock
Appreciation Rights that are granted as an alternative to the related Option,
the Exercise Price shall be the price at which shares may be purchased under
the related Option. In the case of Linked Stock Appreciation Rights that are
granted as a supplement to the related Option, and in the case of Free-Standing
Stock Appreciation Rights, the Exercise Price shall be the Fair Market Value of
a share of Common Stock on the date the Stock Appreciation Rights are granted,
unless the Committee specifies a different price when the Stock Appreciation
Rights are granted (which shall not be less than the par value of the Common
Stock and which may be indexed to the increase or decrease in an index or in
stock prices of one or more other companies specified by the Committee). 

          (f)     Subject
to Section 4(e) above, (i) the limitations set forth in Section 4(a)(i) above
shall be charged only for the number of shares which are actually issued in
settlement of Stock Appreciation Rights; and (ii) in the case of an exercise of
Linked Stock Appreciation Rights that were granted as an alternative to the
related Option, if the number of shares of Common Stock previously charged
against such limitations on account of the portion of the Option that is
cancelled in connection with such exercise in accordance with Section 8(b)
exceeds the number of shares (if any) actually issued pursuant to such
exercise, the excess shall be added back to the maximum aggregate number of
shares available for issuance under the Plan.

          (g)     Subject
to Section 13(a) below, Stock Appreciation Rights shall be exercisable during
the life of the Service Provider only by him or his guardian or legal
representative, and after death only by his Beneficiary.

          (h)     The Committee shall not have the
authority to
reduce the exercise price of outstanding Stock Appreciation Rights, except as permitted
by Section 10 below (relating to adjustments for changes in capitalization and
similar adjustments). If the Committee grants Stock Appreciation Rights the
exercise price of which is indexed to the increase or decrease in a
specified index or in stock prices of one or more other specified companies, as
permitted by 

A-16

Section 8(e) above, a
reduction in the exercise price resulting from a decrease in the index shall
not be deemed to violate the first sentence of this Section 8(h).

9.       Certain Change in Control,
Termination of
Service, Death and Disability Provisions.

          The
Committee may at any time, and subject to such terms and conditions as it may
impose:

                    (a)     authorize
the holder of an Option or Stock Appreciation Rights to exercise the Option or
Stock Appreciation Rights (i) on and after a Change in Control, or (ii) after
the termination of the participant’s employment or other applicable service
that benefits the Company or a Subsidiary or an Allied Enterprise, or (iii)
after the participant’s death or disability, whether or not the Option or Stock
Appreciation Rights would otherwise be or become exercisable on or after any
such event, provided that in no event may an Option or Stock Appreciation
Rights be exercised after the expiration of their term;

                    (b)     grant
Options and Stock Appreciation Rights which become exercisable only in the
event of a Change in Control; 

                    (c)     provide
for Stock Appreciation Rights to be exercised automatically and only for money
in the event of a Change in Control;

                    (d)     authorize
any Award to become non-forfeitable, fully earned and payable (i) upon a Change
in Control, or (ii) after the termination of the Service Provider’s employment
with or other applicable service that benefits the Company or a Subsidiary or
an Allied Enterprise, or (iii) after the Service Provider’s death or
disability, whether or not the Award would otherwise be or become
non-forfeitable, fully earned and payable upon or after any such event; 

                    (e)     grant
Awards which become non-forfeitable, fully earned and payable only in the event
of a Change in Control; and 

                    (f)     provide
in advance or at the time of a Change in Control for outstanding Awards to be
cancelled in the event of a Change in Control and for money to be paid at the
time of such Change in Control in settlement of the Awards, or for awards
relating to stock of another company to be granted at the time of such Change
in Control in substitution for the cancelled Awards, either at the election of
the participant or at the election of the Committee.

10.     Adjustment Provisions. In
the event that any recapitalization, or
reclassification, split-up, reverse split, or consolidation of shares of Common
Stock shall be effected, or the outstanding shares of Common Stock shall be, in
connection with a merger or consolidation of the Company or a sale by the
Company of all or a part of its assets, exchanged for a different number or
class of shares of stock or other securities or property of the Company or any
other entity or person, or a spin-off or a record date for determination of
holders of Common Stock entitled to receive a dividend or other distribution
payable in Common Stock or other property 

A-17

(other than normal cash
dividends) shall occur, (a) the maximum aggregate number and the class of
shares or other securities or property that may be issued in accordance with
Section 4(a)(i) above pursuant to Awards (including Incentive Stock Options)
thereafter granted, (b) the maximum number and the class of shares or other
securities or property with respect to which Options or Stock Appreciation
Rights, or Awards other than Appreciation-Only Awards and Dollar-Denominated
Awards, may be granted during any calendar year to any Employee or other
Service Provider pursuant to Section 4(a)(ii) or 4(a)(iii) above, (c) the
number and the class of shares or other securities or property that may be
issued under outstanding Awards, (d) the exercise price or purchase price to be
paid per share under outstanding and future Awards, and (e) the price to be
paid per share by the Company or a Subsidiary for shares or other securities or
property issued pursuant to Awards which are subject to a right of the Company
or a Subsidiary to reacquire such shares or other securities or property, shall
in each case be equitably adjusted; provided that with respect to Incentive
Stock Options any such adjustments shall comply with Sections 422 and 424 of
the Code.

11.     Effective Date and Duration of
Plan; Effect
on 1983 Plan and 1984 Plan. The Plan shall be effective on the Effective Date. No options shall be
granted under the 1983 Plan or the 1984 Plan on or after the Effective Date. If
the Plan is not approved by shareholders of the Company, the Plan (including
the preceding sentence) shall be null, void and of no force or effect. If the
Plan is approved by shareholders of the Company, Awards may be granted within
ten years after the Effective Date, but not thereafter. In no event shall an
Incentive Stock Option be granted under the Plan more than ten (10) years from
the date the Plan is adopted by the Board, or the date the Plan is approved by
the shareholders of the Company, whichever is earlier.

12.     Administration.

          (a)     The
Plan shall be administered by a committee of the Board consisting of two or
more directors appointed from time to time by the Board. No person shall be
appointed to or shall serve as a member of such committee unless at the time of
such appointment and service he shall shall satisfy any director independence
requirements then applicable to service on such committee under any rules or
listing standards (whether of the American Stock Exchange, The Nasdaq Stock
Market or any other stock exchange or self-regulatory organization) that apply
to the Company at such time. Unless the Board determines otherwise, such committee
shall also be comprised solely of “outside directors” within the meaning of
Section 162(m)(4)(C)(i) of the Code and Treasury Regulation Section
1.162-27(e)(3), and “non-employee directors” as defined in SEC Rule 16b-3. 

          (b)     The
Committee may establish such rules and regulations, not inconsistent with the
provisions of the Plan, as it may deem necessary for the proper administration
of the Plan, and may amend or revoke any rule or regulation so established. The
Committee shall, subject to the provisions of the Plan, have full power and
discretion to interpret, administer and construe the Plan and full authority to
make all determinations and decisions thereunder including without limitation
the authority and discretion to (i) determine the persons who are Service
Providers and select the Service Providers who are to participate in the Plan,
(ii) determine when Awards shall be granted, (iii) determine the number of
shares and/or amount of money to be made subject to each Award, (iv) determine
the type of Award to grant, (v) determine the terms and conditions of 

A-18

each Award, including the
exercise price, in the case of an Option or Stock Appreciation Rights, and
whether specific Awards shall be linked to one another and if so whether they
shall be alternative to or supplement one another, (vi) make any adjustments
pursuant to Section 10 of the Plan, and (vii) determine whether or not a
specific Award is intended to qualify as Performance-Based Compensation. Without limiting the generality of the foregoing,
the Committee shall have the authority to establish and administer performance
goals applicable to Awards, and the authority to certify that such performance
goals are attained, within the meaning of Treasury Regulation Section
1.162-27(c)(4). The interpretation by the Committee of the terms and
provisions of the Plan and any instrument issued thereunder, and its
administration thereof, and all action taken by the Committee, shall be final,
binding and conclusive on the Company, its stockholders, Subsidiaries, Allied
Enterprises, all participants and Service Providers, and upon their respective
Beneficiaries, successors and assigns, and upon all other persons claiming
under or through any of them.

          (c)     Members
of the Board of Directors and members of the Committee acting under this Plan
shall be fully protected in relying in good faith upon the advice of counsel
and shall incur no liability except for gross or willful misconduct in the
performance of their duties.

13.     General
Provisions.

          (a)     No
Award, including without limitation any Option or Stock Appreciation Rights,
shall be transferable by the Service Provider or other rightful holder of such
Award other than by will or the laws of descent and distribution or to a
Beneficiary. The preceding sentence and any other provision of the Plan to the
contrary notwithstanding, the Committee may (but need not) permit a Service
Provider to transfer any Award, other than an Incentive Stock Option or any
other Award that is linked to an Incentive Stock Option, during his lifetime to
such other persons and such entities and on such terms and subject to such
conditions as the Committee may provide in the written instrument documenting
such Award.

          (b)     Nothing
in this Plan or in any instrument executed pursuant hereto shall confer upon
any person any right to continue in the employment or other service of the
Company or a Subsidiary or an Allied Enterprise, or shall affect the right of
the Company or a Subsidiary or any Allied Enterprise to terminate the
employment or other service of any person at any time with or without cause or
assigning a reason therefor.

          (c)     No
shares of Common Stock shall be issued or transferred pursuant to an Award
unless and until all legal requirements applicable to the issuance or transfer
of such shares have, in the opinion of the General Counsel, been satisfied. Any
such issuance or transfer shall be contingent upon the person acquiring the
shares giving the Company any assurances the General Counsel may deem necessary
or desirable to assure compliance with all applicable legal requirements.

          (d)     No
person (individually or as a member of a group) and no Beneficiary or other
person claiming under or through him, shall have any right, title or interest
in or to any shares of Common Stock (i) allocated, or (ii) reserved for the
purposes of this Plan, or (iii) subject to any Award, except as to such shares
of Common Stock, if any, as shall have been issued to him. 

A-19

          (e)     The
Company and its Subsidiaries and any Allied Enterprises may make such
provisions as they may deem appropriate for the withholding of any taxes which
they determine they are required to withhold in connection with any Award. Without
limiting the foregoing, the Committee may, subject to such terms and conditions
as it may impose, permit or require any withholding tax obligation arising in
connection with any Award or the grant, exercise, vesting, distribution or
payment of any Award, up to the minimum required federal, state and local
withholding taxes, including payroll taxes, or such higher amount of taxes as
the Committee may specify, to be satisfied in whole or in part, with or without
the consent of the Service Provider or other rightful holder of the Award, by
having the Company withhold all or any part of the shares of Common Stock that
vest or would otherwise be issued or distributed at such time. Any shares so
withheld shall be valued at their Fair Market Value on the date of such
withholding.

          (f)     Nothing
in this Plan is intended to be a substitute for, or shall preclude or limit the
establishment or continuation of, any other plan, practice or arrangement for
the payment of compensation or fringe benefits to directors, officers,
employees, consultants or Service Providers generally, or to any class or group
of such persons, which the Company or any Subsidiary now has or may hereafter
lawfully put into effect, including, without limitation, any incentive
compensation, retirement, pension, group insurance, stock purchase, stock bonus
or stock option plan. A Service Provider may be granted an Award whether or not
he is eligible to receive similar or dissimilar incentive compensation under
any other plan or arrangement of the Company.

          (g)     The
Company’s obligation to issue shares of Common Stock or to pay money in respect
of any Award shall be subject to the condition that such issuance or payment
would not impair the Company’s capital or constitute a breach of or cause the
Company to be in violation of any covenant, warranty or representation made by
the Company in any credit agreement to which the Company is a party before the
date of grant of such Award.

          (h)     By
accepting any benefits under the Plan, each Service Provider, and each person
claiming under or through him, shall be conclusively deemed to have indicated
his acceptance and ratification of, and consent to, all provisions of the Plan
and any action or decision under the Plan by the Company, its agents and
employees, and the Board of Directors and the Committee.

          (i)     The
validity, construction, interpretation and administration of the Plan and of
any determinations or decisions made thereunder, and the rights of all persons
having or claiming to have any interest therein or thereunder, shall be
governed by, and determined exclusively in accordance with, the laws of the
State of Delaware, but without giving effect to the principles of conflicts of
laws thereof. Without limiting the generality of the foregoing, the period
within which any action arising under or in connection with the Plan must be
commenced, shall be governed by the laws of the State of Delaware, without
giving effect to the principles of conflicts of laws thereof, irrespective of
the place where the act or omission complained of took place and of the
residence of any party to such action and irrespective of the place where the
action may be brought. 

A-20

          (j)     A
Service Provider’s acceptance of any Award shall constitute his irrevocable and
unconditional waiver of the right to a jury trial in any action or proceeding
concerning the Award, the Plan or any rights or obligations of the Service
Provider or the Company under or with respect to the Award or the Plan.

          (k)     The
use of the masculine gender shall also include within its meaning the feminine.
The use of the singular shall include within its meaning the plural and vice
versa.

14.     Amendment and Termination.
Subject to any applicable shareholder
approval requirements of (a) Delaware or federal law, (b) any rules or listing
standards that apply to the Company from time to time (whether of the American
Stock Exchange, The Nasdaq Stock Market or any other stock exchange or
self-regulatory organization), or (c) the Code, the Plan may be amended by the
Board of Directors at any time and in any respect, including without limitation
to permit or facilitate qualification of Options theretofore or thereafter
granted (i) as Incentive Stock Options under the Code, or (ii) for such other
special tax treatment as may be enacted on or after the date on which the Plan
is approved by the Board, provided that, without stockholder approval, no
amendment shall increase the aggregate number of shares which may be issued
under the Plan, or shall permit the
exercise price of outstanding Options or Stock Appreciation Rights to be
reduced, except as permitted by Section 7(g), Section 8(h) and Section
10 hereof. The Plan may also be terminated at any time by the Board of
Directors. No amendment or termination of this Plan shall adversely affect any
Award granted prior to the date of such amendment or termination without the written
consent of the holder of such Award. 

***

A-21

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