Document:

<PAGE>
                                                                EXHIBIT 4(f)(67)

                 AMENDMENT NO. 4 TO LOAN AND SECURITY AGREEMENT

            AMENDMENT NO. 4 TO LOAN AND SECURITY AGREEMENT (this "Amendment"),
dated as of November 14, 2005, among CAC WAREHOUSE FUNDING CORPORATION II, as
borrower (the "Borrower"), CREDIT ACCEPTANCE CORPORATION, as Originator (the
"Originator"), WACHOVIA CAPITAL MARKETS, LLC, as deal agent (the "Deal Agent")
and collateral agent (the "Collateral Agent"), WACHOVIA BANK, NATIONAL
ASSOCIATION, as liquidity agent for the VFCC Purchaser Group (the "Liquidity
Agent") and as the sole Investor (the "Investor") and VARIABLE FUNDING CAPITAL
CORPORATION, as a lender (and together with the Liquidity Agent, the "Lenders").

            Capitalized terms used and not defined in this Amendment shall have
the meanings given such terms in the Loan and Security Agreement, dated as of
September 30, 2003 (the "Loan Agreement"), among the Borrower, the Originator,
the Investors, the Lenders, the Deal Agent, the Backup Servicer and the
Collateral Agent.

                             PRELIMINARY STATEMENTS

            WHEREAS, each of the signatories hereto is party to the Loan
Agreement; and WHEREAS, each of the signatories hereto wishes to amend the Loan
Agreement as hereinafter provided;

            NOW, THEREFORE, in consideration of the mutual covenants contained
herein and in the Loan Agreement, and other good and valuable consideration, the
receipt and adequacy of which is hereby expressly acknowledged, and intending to
be legally bound hereby, the signatories hereto agree as follows:

      Section 1. Amendment. Section 1.1 of the Loan Agreement is hereby amended
by deleting the definition of "Commitment Termination Date" in its entirety and
replacing it with the following:

"With respect to each Purchaser Group, February 15, 2006, or with respect to any
Purchaser Group such later date to which the Commitment Termination Date may be
extended in the sole discretion of such Purchaser Group in accordance with the
terms of Section 2.1(b).".

      Section 2. Conditions to Effectiveness. This Amendment shall become
effective on and as of the date hereof, upon the receipt by the Deal Agent of an
executed counterpart of this Amendment from each party hereto.

      Section 3. Severability of Provisions. Any provision of this Amendment
which is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof or
affecting the validity or enforceability of such provision in any other
jurisdiction.

<PAGE>

      Section 4. Captions. The captions in this Amendment are for convenience of
reference only and shall not define or limit any of the terms or provisions
hereof.

      Section 5. Agreement to Remain in Full Force and Effect. Except as amended
hereby, the Loan Agreement shall remain in full force and effect and is hereby
ratified, adopted and confirmed in all respects. All references in the Loan
Agreement to "herein," or words of like import, and all references to the Loan
Agreement in any agreement or document shall hereafter be deemed to refer to the
Loan Agreement as amended hereby.

      Section 6. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

      Section 7. Execution in Counterparts. This Amendment may be executed in
any number of counterparts and by different parties hereto on separate
counterparts, each of which counterparts, when so executed and delivered, shall
be deemed to be an original and all of which counterparts, taken together, shall
constitute but one and the same Amendment.

      Section 8. Representations and Warranties. The Borrower hereby certifies
that (i) the representations and warranties made by it in Section 4.1 of the
Loan Agreement are true and correct as of the date hereof, as though made on and
as of the date hereof and (ii) as of the date hereof, there is no Termination
Event or Servicer Termination Event or event which, with the passage of time of
the giving of notice, could result in a Termination Event or a Servicer
Termination Event.

      Section 9. Waiver of Notice. Each of the parties hereto hereby waives any
notice in connection with the execution and delivery of this Amendment.

                            [Signature page follows]

<PAGE>

            IN WITNESS WHEREOF, the parties hereto have caused this Amendment to
be executed as of the date and year first above written.

                                    CAC WAREHOUSE FUNDING
                                    CORPORATION II, as Borrower

                                    By:  /s/ Douglas W. Busk
                                       -----------------------------------------
                                       Name: Douglas W. Busk
                                       Title: Treasurer

                                    CREDIT ACCEPTANCE
                                    CORPORATION, as Originator

                                    By:  /s/ Douglas W. Busk
                                       -----------------------------------------
                                       Name: Douglas W. Busk
                                       Title: Treasurer

                                    WACHOVIA CAPITAL MARKETS,
                                    LLC, as Deal Agent and Collateral Agent

                                    By:  /s/ Curtis Sidden
                                       -----------------------------------------
                                       Name: Curtis Sidden
                                       Title: Managing Director

                                    WACHOVIA BANK, NATIONAL
                                    ASSOCIATION, as Liquidity Agent and
                                    the Sole Investor

                                    By:  /s/ Justin Zakocs
                                       -----------------------------------------
                                       Name: Justin Zakocs
                                       Title: Vice President

                                    VARIABLE FUNDING CAPITAL
                                    CORPORATION, as a Lender

                                    By: Wachovia Capital Markets, LLC, as
                                    attorney-in-fact
                                    By:  /s/ Douglas R. Wilson, SR.
                                       -----------------------------------------
                                       Name: Douglas R. Wilson, SR.
                                       Title: Vice President<PAGE>

                                                                    Exhibit 10.1

                               BSQUARE CORPORATION
                           SECOND AMENDED AND RESTATED
                                   STOCK PLAN

<PAGE>
                                                                               .
                                                                               .
                                                                               .

<TABLE>
<S>                                                                        <C>
1.  DEFINITIONS.........................................................    1

2.  PURPOSES............................................................    4

3.  ADMINISTRATION......................................................    4
   (A) COMMITTEE........................................................    4
   (B) APPOINTMENT OF COMMITTEE.........................................    4
   (C) POWERS; REGULATIONS..............................................    4
   (D) DELEGATION TO EXECUTIVE OFFICER..................................    5

4.  ELIGIBILITY.........................................................    5

5.  STOCK...............................................................    5

6.  TERMS AND CONDITIONS OF OPTIONS.....................................    6
   (A) NUMBER OF SHARES AND TYPE OF OPTION..............................    6
   (B) DATE OF GRANT....................................................    6
   (C) OPTION PRICE.....................................................    6
   (D) DURATION OF OPTIONS..............................................    7
   (E) VESTING SCHEDULE AND EXERCISABILITY OF OPTIONS...................    7
   (F) ACCELERATION OF VESTING..........................................    8
   (G) TERM OF OPTION...................................................    8
   (H) EXERCISE OF OPTIONS..............................................    9
   (I) PAYMENT UPON EXERCISE OF OPTION..................................    9
   (J) RIGHTS AS A SHAREHOLDER..........................................   10
   (K) TRANSFER OF OPTION...............................................   10
   (L) SECURITIES REGULATION AND TAX WITHHOLDING........................   11
   (M) STOCK SPLIT, REORGANIZATION OR LIQUIDATION.......................   12
   (N) APPROVED TRANSACTIONS; CONTROL PURCHASE..........................   13

7.  TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS...................   14
   (A) AWARD OF STOCK APPRECIATION RIGHTS...............................   14
   (B) RESTRICTIONS OF TANDEM SARS......................................   14
   (C) AMOUNT OF PAYMENT UPON EXERCISE OF SARS..........................   14
   (D) FORM OF PAYMENT UPON EXERCISE OF SARS............................   15
   (E) TAX WITHHOLDING; STOCK ADJUSTMENTS; APPROVED TRANSACTIONS;
       ETC..............................................................

8.  RESTRICTED STOCK AWARDS.............................................   15
   (A) NATURE OF RESTRICTED STOCK AWARDS................................   15
   (B) RIGHTS AS A SHAREHOLDER..........................................   15
   (C) RESTRICTIONS.....................................................   15
   (D) VESTING OF RESTRICTED STOCK......................................   16
   (E) WAIVER, DEFERRAL AND REINVESTMENT OF DIVIDENDS...................   16
   (F) TAX WITHHOLDING; STOCK ADJUSTMENTS; APPROVED TRANSACTIONS;
       ETC..............................................................

9.  UNRESTRICTED STOCK AWARDS...........................................   16
   (A) GRANT OR SALE OF UNRESTRICTED STOCK..............................   16
   (B) ELECTIONS TO RECEIVE UNRESTRICTED STOCK IN LIEU OF COMPENSATION..   16
   (C) RESTRICTIONS ON TRANSFERS........................................   16
   (D) TAX WITHHOLDING; STOCK ADJUSTMENTS; APPROVED TRANSACTIONS;
       ETC..............................................................

10. EFFECTIVE DATE; TERM................................................   16

11. NO OBLIGATIONS TO EXERCISE AWARD....................................   20
</TABLE>

<PAGE>

<TABLE>
<S>                                                                        <C>
12. NO RIGHT TO AWARDS OR TO EMPLOYMENT.................................   20

13. APPLICATION OF FUNDS................................................   20

14. INDEMNIFICATION OF COMMITTEE........................................   20

15. SHAREHOLDERS AGREEMENT..............................................   21

16. SEPARABILITY........................................................   21

17. NON-EXCLUSIVITY OF THE PLAN.........................................   21

18. EXCLUSION FROM PENSION AND PROFIT-SHARING COMPUTATION...............   21

19. AMENDMENT OF PLAN...................................................   21
</TABLE>
<PAGE>

                               BSQUARE CORPORATION
                           SECOND AMENDED AND RESTATED
                                   STOCK PLAN

1. DEFINITIONS.

     Capitalized terms not defined elsewhere in the Plan shall have the
following meanings (whether used in the singular or plural).

     (a)  "AGREEMENT" means a written agreement approved by the Committee
          evidencing Awards granted under the Plan.

     (b)  "APPROVED TRANSACTION" means

          (i)  a firm commitment underwritten public offering pursuant to an
               effective registration statement under the Securities Act
               covering the offer and sale of Common Stock for the account of
               the Company to the public with aggregate proceeds paid to the
               Company of not less than $10,000,000 (after the deduction of
               underwriting commissions and offering expenses);

          (ii) the acquisition of the Company by another entity by means of
               merger, consolidation or other transaction or series of related
               transactions resulting in the exchange of the outstanding shares
               of the Company for securities of, or consideration issued, or
               caused to be issued by, the acquiring entity or any of its
               affiliates, provided, that after such event the shareholders of
               the Company immediately prior to the event own less than a
               majority of the outstanding voting equity securities of the
               surviving entity immediately following the event;

          (iii) any liquidation or dissolution of the Company; and

          (iv) any sale, lease, exchange or other transfer not in the ordinary
               course of business (in one transaction or a series of related
               transactions) of all, or substantially all, of the assets of the
               Company.

     (c)  "AWARD" means any award granted under the Plan, including Options,
          Stock Awards and SARs.

     (d)  "AWARDEE" means any person to whom an Award is granted under the Plan
          (as well as any permitted transferee of an Award).

     (e)  "BOARD" means the Board of Directors of the Company.

     (f)  "CODE" means the Internal Revenue Code of 1986, as amended from time
          to time, or any successor statute or statutes thereto. Reference to
          any specific section of the Code shall include any successor section.

     (g)  "COMMITTEE" shall mean the Board, or the committee appointed by the
          Board pursuant to Section 3(b) of the Plan, if it is administering the
          Plan.

                                        1

<PAGE>

     (h)  "COMMON STOCK" means the Common Stock, no par value, of the Company.

     (i)  "COMPANY" means BSQUARE CORPORATION, a Washington corporation.

     (j)  "CONTROL PURCHASE" means any transaction (or series of related
          transactions) in which any person, corporation or other entity
          (including any "person" as defined in Sections 13(d)(3) and 14(d)(2)
          of the Exchange Act, but excluding the Company and any employee
          benefit plan sponsored by the Company):

          (i)  purchases any Common Stock (or securities convertible into Common
               Stock) for cash, securities or any other consideration pursuant
               to a tender offer or exchange offer unless by the terms of such
               offer the offeror, upon consummation thereof, would be the
               "beneficial owner" (as that term is defined in Rule 13d-3 under
               the Exchange Act) of less than 30% of the shares of Common Stock
               then outstanding; or

          (ii) becomes the "beneficial owner," directly or indirectly, of
               securities of the Company representing fifty percent (50%) or
               more of the combined voting power of the then outstanding
               securities of the Company ordinarily (and apart from rights
               accruing under special circumstances) having the right to vote in
               the election of directors (calculated as provided in Rule
               13d-3(d) under the Exchange Act in the case of rights to acquire
               the Company's securities);

          provided, however, that the foregoing shall not constitute a Control
          Purchase if the transactions or related transactions received the
          prior approval of a majority of all of the directors of the Company,
          excluding for such purpose the votes of directors who are directors or
          officers of, or have a material financial interest in any Person
          (other than the Company) who is a party to the event specified in
          either clauses (i) or (ii).

     (k)  "COVERED EMPLOYEE" has the meaning given to it by Section 162(m)(3) of
          the Code.

     (l)  "DATE OF GRANT" means that date the Committee has deemed to be the
          effective date of the Award for purposes of the Plan.

     (m)  "DISABILITY" means any medically determinable physical or mental
          impairment which can be expected to result in death or which has
          lasted or can be expected to last for a continuous period of not less
          than twelve (12) months that renders the Awardee unable to engage in
          any substantial gainful activity.

     (n)  "EFFECTIVE DATE" means at the time specified in the resolutions of the
          Board adopting the Plan.

     (o)  "EMPLOYEES" means individuals employed by the Company or a Related
          Corporation.

     (p)  "EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended
          from time to time, or any successor statute or statutes thereto.
          Reference to any specific section of the Exchange Act shall include
          any successor section.

     (q)  "EXECUTIVE OFFICER" shall be defined in Section 3(d).

                                        2

<PAGE>

     (r)  "FAIR MARKET VALUE" means, if the Common Stock is publicly traded, the
          last sales price (or, if no last sales price is reported, the average
          of the high bid and low asked prices) for a share of Common Stock on
          that day (or, if that day is not a trading day, on the next preceding
          trading day), as reported by the principal exchange on which the
          Common Stock is listed, or, if the Common Stock is publicly traded but
          not listed on an exchange, as reported by The Nasdaq Stock Market, or
          if such prices or quotations are not reported by The Nasdaq Stock
          Market, as reported by any other available source of prices or
          quotations selected by the Committee. If the Common Stock is not
          publicly traded or if the Fair Market Value is not determinable by any
          of the foregoing means, the Fair Market Value on any day shall be
          determined in good faith by the Committee on the basis of such
          considerations as the Committee deems important.

     (s)  "IMMEDIATE FAMILY MEMBER" means a spouse, children or grandchildren of
          the Optionee.

     (t)  "INCENTIVE STOCK OPTION" means an Option that is an incentive stock
          option within the meaning of Section 422 of the Code.

     (u)  "NON-EMPLOYEE DIRECTOR" has the meaning given to it by Rule 16b-3
          promulgated under the Exchange Act of 1934.

     (v)  "NON-INSIDERS" has the meaning given to by Section 162(m)(3) of the
          Code.

     (w)  "NON-QUALIFIED STOCK OPTION" means an Option that is not an Incentive
          Stock Option.

     (x)  "OPTION" means an option with respect to shares of Common Stock
          awarded pursuant to Section 6.

     (y)  "OPTIONEE" means any person to whom an Option is granted under the
          Plan (as well as any permitted transferee of an Option).

     (z)  "OUTSIDE DIRECTOR" has the meaning given to it by the regulations
          promulgated under Section 162(m) of the Code.

     (aa) "PLAN" means the BSQUARE CORPORATION Second Amended and Restated Stock
          Plan.

     (bb) "QUALIFIED PERFORMANCE-BASED COMPENSATION" has the meaning given to it
          by the regulations promulgated under Section 162(m) of the Code.

     (cc) "RELATED CORPORATION" means any corporation (other than the Company)
          that is a "parent corporation" of the Company or "subsidiary
          corporation" of the Company, as defined in Sections 424(e) and 424(f),
          respectively, of the Code.

     (dd) "RESTRICTED STOCK AWARDS" means Awards granted pursuant to Section 8.

     (ee) "SARS" means Awards granted pursuant to Section 7.

     (ff) "SECTION 16 INSIDERS" means individuals who are subject to Section
          16(b) of the Exchange Act with respect to the Common Stock.

                                        3

<PAGE>

     (gg) "SECURITIES ACT" means the Securities Act of 1933, as amended from
          time to time, or any successor statute or statutes thereto. References
          to any specific section of the Securities Act shall include any
          successor section.

     (hh) "STOCK AWARDS" means Restricted and Unrestricted Stock Awards granted
          pursuant to Sections 8 and 9, respectively.

     (ii) "TEN PERCENT SHAREHOLDER" means a person who owns more than ten
          percent of the total combined voting power of the Company or any
          related corporation as determined with reference to Section 424(d) of
          the Code.

     (jj) "UNRESTRICTED STOCK AWARDS" means Awards granted pursuant to Section
          9.

2. PURPOSES.

     The purposes of the Plan are to retain the services of directors, valued
key employees and consultants of the Company and such other persons as the
Committee shall select in accordance with Section 4, to encourage such persons
to acquire a greater proprietary interest in the Company, thereby strengthening
their incentive to achieve the objectives of the shareholders of the Company,
and to serve as an aid and inducement in hiring new employees and to provide an
equity incentive to directors, consultants and other persons selected by the
Committee.

3. ADMINISTRATION.

     (A)  COMMITTEE.

     The Plan shall be administered by the Board unless the Board appoints a
separate committee of the board to administer the Plan pursuant to Section 3(b)
below. A majority of the members of the Committee shall constitute a quorum, and
all actions of the Committee shall be taken by a majority of the members
present. Any action may be taken by a written instrument signed by all of the
members of the Committee and any action so taken shall be fully effective as if
it had been taken at a meeting.

     (B)  APPOINTMENT OF COMMITTEE.

     The Board may appoint a committee consisting of two or more of its members
to administer the Plan. The Board shall consider whether a director is (i) an
Outside Director and (ii) a Non-Employee Director when appointing any such
Committee and shall appoint solely two or more individuals who qualify as
Outside Directors if the Board intends for compensation attributable to Options
to be Qualified Performance-Based Compensation. The Committee shall have the
powers and authority vested in the Board hereunder (including the power and
authority to interpret any provision of the Plan or of any Option). The members
of any such Committee shall serve at the pleasure of the Board.

     (C)  POWERS; REGULATIONS.

     Subject to the provisions of the Plan, and with a view to effecting its
purpose, the Committee shall have sole authority, in its absolute discretion,
to:

          (i)  construe and interpret the Plan;

          (ii) define the terms used in the Plan;

                                        4

<PAGE>

          (iii) prescribe, amend and rescind rules and regulations relating to
               the Plan;

          (iv) correct any defect, supply any omission or reconcile any
               inconsistency in the Plan;

          (v)  grant Awards under the Plan;

          (vi) determine the individuals to whom Awards shall be granted under
               the Plan and the type of Award;

          (vii) determine the time or times at which Awards shall be granted
               under the Plan;

          (viii) determine the number of shares of Common Stock subject to each
               Award, the exercise price of each Award, the duration of each
               Award and the times at which each Award shall become exercisable;

          (ix) determine all other terms and conditions of Awards; and

          (x)  make all other determinations necessary or advisable for the
               administration of the Plan.

     All decisions, determinations and interpretations made by the Committee
shall be binding and conclusive on all participants in the Plan and on their
legal representatives, heirs and beneficiaries.

     (D)  DELEGATION TO EXECUTIVE OFFICER.

     The Committee may by resolution delegate to one or more executive officers
(the "Executive Officer") of the Company the authority to grant Awards under the
Plan to employees of the Company who, at the time of grant, are not Section 16
Insiders nor Covered Employees; provided, however, that the authority delegated
to the Executive Officer under this Section 3 shall not exceed that of the
Committee under the provisions of the Plan and shall be subject to such
limitations, in addition to those specified in this Section 3, as may be
specified by the Committee at the time of delegation.

4. ELIGIBILITY.

     Incentive Stock Options may be granted to any individual who, at the time
such Options are granted, is an Employee, including Employees who are also
directors of the Company. Other Awards may be granted to Employees and to such
other persons as the Committee shall select. Awards may be granted in
substitution for outstanding options or equity-based awards of another
corporation in connection with the merger, consolidation, acquisition of
property or stock or other reorganization between such other corporation and the
Company or any subsidiary of the Company. At such point as the Company first
becomes subject to the periodic reporting requirements of Section 12 of the
Exchange Act, no person shall be eligible to receive in any fiscal year Awards
for more than 500,000 shares of Common Stock (subject to adjustment as set forth
herein).

5. STOCK.

     The Company is authorized to grant up to a total of 9,857,755 shares of the
Company's authorized but unissued, or reacquired, Common Stock pursuant to
Awards under the Plan; provided, however, that the number of shares reserved for
issuance under the Plan during each of the Company's fiscal years beginning on
January 1, 2003 shall be increased annually by an amount equal to the lesser of
(A) four percent (4%) of the Company's outstanding shares at the end of the
previous fiscal year, (B) an amount determined by the Board of Directors or (C)
1,500,000 shares. The number of shares with respect to which Awards may be
granted hereunder (including the amount of the annual increase described in this
Section 5) is subject to adjustment as set forth herein. In the event that any
outstanding Award expires or is terminated for any reason, the shares of Common
Stock allocable to the unexercised or forfeited portion of such Award may again
be subject to an Award granted to the same Awardee or to a different person
eligible under Section 4; provided, however, that any expired or terminated
Awards will be

                                        5

<PAGE>

counted against the maximum number of shares with respect to which Awards may be
granted to any particular person as set forth in Section 4.

6. TERMS AND CONDITIONS OF OPTIONS.

     Each Option granted under the Plan shall be evidenced by an Agreement.
Agreements may contain such provisions, not inconsistent with the Plan, as the
Committee or Executive Officer, in its discretion, may deem advisable. All
Options also shall comply with the following requirements:

     (A)  NUMBER OF SHARES AND TYPE OF OPTION.

     Each Agreement shall state the number of shares of Common Stock to which it
pertains and whether the Option is intended to be an Incentive Stock Option or a
Non-Qualified Stock Option. In the absence of action to the contrary by the
Committee or Executive Officer in connection with the grant of an Option, all
Options shall be Non-Qualified Stock Options. The aggregate Fair Market Value
(determined at the Date of Grant) of the Common Stock with respect to which the
Incentive Stock Options granted to the Optionee and any incentive stock options
granted to the Optionee under any other stock option plan of the Company, any
Related Corporation or any predecessor corporation are exercisable for the first
time by the Optionee during any calendar year shall not exceed $100,000, or such
other limit as may be prescribed by the Code. If

          (i)  an Optionee holds one or more Incentive Stock Options under the
               Plan (and/or any incentive stock options under any other stock
               option plan of the Company, any Related Corporation or any
               predecessor corporation), and

          (ii) the aggregate Fair Market Value of the shares of Common Stock
               with respect to which, during any calendar year, such Options
               become exercisable for the first time exceeds $100,000 (said
               value to be determined as provided above),

then such Option or Options are intended to qualify under Section 422 of the
Code with respect to the maximum number of such shares as can, in light of the
foregoing limitation, be so qualified, with the shares so qualified to be the
shares subject to the Option or Options earliest granted to the Optionee. If an
Option that would otherwise qualify as an Incentive Stock Option becomes
exercisable for the first time in any calendar year for shares of Common Stock
that would cause such aggregate Fair Market Value to exceed $100,000, then the
portion of the Option in respect of such shares shall be deemed to be a
Non-Qualified Stock Option.

     (B)  DATE OF GRANT.

     Each Agreement shall state the Date of Grant.

     (C)  OPTION PRICE.

     Each Agreement shall state the price per share of Common Stock at which it
is exercisable. The exercise price shall be fixed by the Committee or Executive
Officer at whatever price the Committee or Executive Officer may determine in
the exercise of its sole discretion; provided, however, that the per share
exercise price for an Incentive Stock Option shall not be less than the Fair
Market Value at the Date of Grant; provided further, that with respect to
Incentive Stock Options granted to Ten Percent Shareholders of the Company, the
per share exercise price shall not be less than 110 percent (110%) of the Fair
Market Value at the Date of Grant; and, provided further, that Options granted
in substitution for outstanding

                                        6

<PAGE>

options of another corporation in connection with the merger, consolidation,
acquisition of property or stock or other reorganization involving such other
corporation and the Company or any subsidiary of the Company may be granted with
an exercise price equal to the exercise price for the substituted option of the
other corporation, subject to any adjustment consistent with the terms of the
transaction pursuant to which the substitution is to occur.

     (D)  DURATION OF OPTIONS.

     On the Date of Grant, the Committee or Executive Officer shall designate,
subject to Section 6(g), the expiration date of the Option, which date shall not
be later than ten (10) years from the Date of Grant in the case of Incentive
Stock Options; provided, however, that the expiration date of any Incentive
Stock Option granted to a Ten Percent Shareholder shall not be later than five
(5) years from the Date of Grant. In the absence of action to the contrary by
the Committee in connection with the grant of an Option, and except in the case
of Incentive Stock Options granted to Ten Percent Shareholders, all Options
granted under this Section 6 shall expire ten (10) years from the Date of Grant.

     (E)  VESTING SCHEDULE AND EXERCISABILITY OF OPTIONS

     No Option shall be exercisable until it has vested. The vesting schedule
for each Option shall be specified by the Committee or Executive Officer at the
time of grant of the Option; provided, however, that if no vesting schedule is
specified at the time of grant, the Option shall be vested according to the
following schedule:

<TABLE>
<CAPTION>
    Number of Years of
   Continuous Employment         Portion of Total
With the Company Following   Option Which Will Become
        Grant Date                    Vested
--------------------------   ------------------------
<S>                          <C>
             1                          25%
             2                          50%
             3                          75%
             4                         100%
</TABLE>

     The Committee or Executive Officer may specify a vesting schedule for all
or any portion of an Option based on the achievement of performance objectives
established in advance of the commencement by the Optionee of services related
to the achievement of the performance objectives. Performance objectives shall
be expressed in terms of one or more of the following: return on equity, return
on assets, share price, market share, sales, earnings per share, costs, net
earnings, net worth, inventories, cash and cash equivalents, gross margin or the
Company's performance relative to its internal business plan. Performance
objectives may be in respect of the performance of the Company as a whole
(whether on a consolidated or unconsolidated basis), a Related Corporation, or a
subdivision, operating unit, product or product line of the foregoing.
Performance objectives may be absolute or relative and may be expressed in terms
of a progression or a range. An Option which is exercisable (in whole or in
part) upon the achievement of one or more performance objectives may be
exercised only upon completion of the following process: (a) the Optionee must
deliver written notice to the Company that the performance objective has been
achieved and demonstrating, if necessary, how the objective has been satisfied,
(b) within 45 days after receipt of such notice, the Committee will make a good
faith determination whether such performance objective has been achieved and
deliver written notice to the Optionee detailing the results of such
determination; if the Company fails to respond with such 45-day period, then the
performance objective shall be presumed to

                                        7

<PAGE>

have been achieved and (c) upon receipt of written notice from the Company that
the performance objective has been achieved (or upon expiration of such 45-day
period without a determination by the Company), the Optionee may exercise the
Option; upon receipt of written notice from the Company that the performance
objective has not been achieved, the Optionee shall have 15 days to appeal the
Company's determination and the Company shall have 15 days after the receipt of
such appeal to consider the issues presented by the Optionee and make a
determination on the appeal, which determination shall be conclusive and binding
on the Optionee.

     (F)  ACCELERATION OF VESTING.

     Except to the extent that such acceleration would render unavailable
"pooling of interests" accounting treatment for any reorganization, merger or
consolidation of the Company, the vesting of one or more outstanding Options may
be accelerated by the Board at such times and in such amounts as it shall
determine in its sole discretion.

     (G)  TERM OF OPTION.

     Any vested Option granted to an Optionee shall terminate, to the extent not
previously exercised, upon the occurrence of the first of the following events:

          (i)  as designated by (x) the Board in accordance with Section 6(n)
               hereof or (y) the Committee or the Executive Officer in
               accordance with Section 6(d) hereof;

          (ii) the date of the Optionee's termination of employment or
               contractual relationship with the Company or any Related
               Corporation for cause (as determined in the sole discretion of
               the Committee);

          (iii) the expiration of ninety (90) days from the date of the
               Optionee's termination of employment or contractual relationship
               with the Company or any Related Corporation for any reason
               whatsoever other than cause, death or Disability unless the
               exercise period is extended by the Committee a date not later
               than the expiration date of the Option;

          (iv) the expiration of one year from (A) the date of death of the
               Optionee or (B) cessation of the Optionee's employment or
               contractual relationship by reason of Disability unless the
               exercise period is extended by the Committee until a date not
               later than the expiration date of the Option; or

          (v)  any other event specified by the Committee at the time of grant
               of the Option.

     If an Optionee's employment or contractual relationship is terminated by
death, any Option granted to the Optionee shall be exercisable only by the
person or persons to whom such Optionee's rights under such Option shall pass by
the Optionee's will or by the laws of descent and distribution of the state or
county of the Optionee's domicile at the time of death. The Committee shall
determine whether an Optionee has incurred a Disability on the basis of medical
evidence reasonably acceptable to the Committee. Upon making a determination of
Disability, the Committee shall, for purposes of the Plan, determine the date of
an Optionee's termination of employment or contractual relationship.

                                        8

<PAGE>

     Unless accelerated in accordance with Section 6(f), any unvested Option
granted to an Optionee shall terminate immediately upon termination of
employment of the Optionee by the Company for any reason whatsoever, including
death or Disability. For purposes of the Plan, transfer of employment between or
among the Company and/or any Related Corporation shall not be deemed to
constitute a termination of employment with the Company or any Related
Corporation. For purposes of this subsection with respect to Incentive Stock
Options, employment shall be deemed to continue while the Optionee is on
military leave, sick leave or other bona fide leave of absence (as determined by
the Committee). The foregoing notwithstanding, employment shall not be deemed to
continue beyond the first ninety (90) days of such leave, unless the Optionee's
re-employment rights are guaranteed by statute or by contract.

     (H)  EXERCISE OF OPTIONS.

     If less than all of the shares included in an Option are purchased, the
remainder may be purchased at any subsequent time prior to the expiration date
with respect to, or the termination of, the Option. No portion of any Option may
be exercised for less than one hundred (100) shares (as adjusted pursuant to
Section 6(m)); provided, however, that if the Option is less than one hundred
(100) shares, it may be exercised with respect to all shares for which it is
vested. Only whole shares may be issued upon exercise of an Option, and to the
extent that an Option covers less than one (1) share, it is unexercisable.

     An Option or any portion thereof may be exercised by giving written notice
to the Company upon such terms and conditions as the Agreement evidencing the
Option may provide and in accordance with such other procedures for the exercise
of an Option as the Committee may establish from time to time. Such notice shall
be accompanied by payment in the amount of the aggregate exercise price for such
shares, which payment shall be in the form specified in Section 6(i). The
Company shall not be obligated to issue, transfer or deliver a certificate of
Common Stock to the holder of any Option until provision has been made by the
holder, to the satisfaction of the Company, for the payment of the aggregate
exercise price for all shares for which the Option shall have been exercised and
for satisfaction of any tax withholding obligations associated with such
exercise. Options granted to an Optionee are, during the Optionee's lifetime,
exercisable only by the Optionee or a transferee who takes title to the Option
in the manner permitted by Section 6(k).

     (I)  PAYMENT UPON EXERCISE OF OPTION.

     Upon the exercise of an Option, the Optionee shall pay to the Company the
aggregate exercise price therefor in cash, by certified or cashier's check. In
addition, such Optionee may pay for all or any portion of the aggregate exercise
price by complying with one or more of the following alternatives:

          (1) by delivering to the Company whole shares of Common Stock then
     owned by such Optionee, or, subject to the prior approval of the Committee,
     by the Company withholding whole shares of Common Stock otherwise issuable
     to the Optionee upon exercise of the Option, which shares of Common Stock
     received or withheld shall be valued for such purpose at their Fair Market
     Value on the date of exercise.

          (2) by delivering a properly executed exercise notice together with
     irrevocable instructions to a broker to promptly deliver to the Company the
     amount of sale or loan proceeds required to pay the exercise price;

          (3) by any combination of the foregoing methods of payment; or

                                        9

<PAGE>

          (4) by complying with any other payment mechanism, including through
     the execution of a promissory note, as may be permitted for the issuance of
     equity securities under applicable securities and other laws and approved
     by the Committee at the time of exercise.

     (J)  RIGHTS AS A SHAREHOLDER.

     An Optionee shall have no rights as a shareholder with respect to any
shares of Common Stock issuable upon exercise of the Option until such holder
becomes a record holder of such shares. Subject to the provisions of Sections
6(m), no rights shall accrue to an Optionee and no adjustments shall be made on
account of dividends (ordinary or extraordinary, whether in cash, securities or
other property) or distributions or other rights declared on, or created in, the
Common Stock for which the record date is prior to the date such Optionee
becomes a record holder of the shares of Common Stock issuable upon exercise of
such Option.

     (K)  TRANSFER OF OPTION.

     Options granted under the Plan and the rights and privileges conferred by
the Plan may not be transferred, assigned, pledged or hypothecated in any manner
(whether by operation of law or otherwise) other than by will, by applicable
laws of descent and distribution or pursuant to a domestic relations order (as
defined in the Code or Title I of the Employment Retirement Income Security Act
of 1974 or the rules or regulations thereunder), and shall not be subject to
execution, attachment or similar process; provided, however, that solely with
respect to Non-Qualified Stock Options, the Committee may, in its discretion,
authorize all or a portion of the Options to be granted to an Optionee to be on
terms which permit transfer by such Optionee to:

          (i)  Immediate Family Members,

          (ii) a trust or trusts for the exclusive benefit of such Immediate
               Family Members, or

          (iii) a partnership in which such Immediate Family Members are the
               only partners, provided that:

               (x)  there may be no consideration for any such transfer,

               (y)  the Agreement evidencing such Options must be approved by
                    Committee, and must expressly provide for transferability in
                    a manner consistent with this Section, and

               (z)  subsequent transfers of transferred Options shall be
                    prohibited other than by will, by applicable laws of descent
                    and distribution or pursuant to a domestic relations order
                    (as defined in the Code or Title I of the Employment
                    Retirement Income Security Act of 1974 or the rules or
                    regulations thereunder).

Following transfer, any such Options shall continue to be subject to the same
terms and conditions as were applicable immediately prior to transfer, provided
that for purposes of Section 6(l)(2), the term "Optionee" shall be deemed to
refer to the initial transferor. The events of termination of employment of
Section 6(g) shall continue to be applied with respect to the original Optionee,
following which the options shall be exercisable by the transferee only to the
extent, and for the periods, specified in Section 6(g). Upon any attempt to
transfer, assign, pledge, hypothecate or otherwise dispose of any Option or of

                                       10

<PAGE>

any right or privilege conferred by the Plan contrary to the provisions hereof,
or upon the sale, levy or any attachment or similar process upon the rights and
privileges conferred by the Plan, such Option shall thereupon terminate and
become null and void.

     (L)  SECURITIES REGULATION AND TAX WITHHOLDING.

          (1) No shares of Common Stock shall be issued upon exercise of an
Option unless the exercise of such Option and the issuance and delivery of such
shares shall comply with all relevant provisions of law, including, without
limitation, any applicable state securities laws, the Securities Act, the
Exchange Act, the rules and regulations thereunder and the requirements of any
stock exchange upon which such shares may then be listed, and such issuance
shall be further subject to the approval of counsel for the Company with respect
to such compliance, including the availability of an exemption from registration
for the issuance and sale of such shares. The inability of the Company to obtain
from any regulatory body the authority deemed by the Company to be necessary for
the lawful issuance and sale of any shares under the Plan, or the unavailability
of an exemption from registration for the issuance and sale of any shares under
the Plan, shall relieve the Company of any liability with respect to the
non-issuance or sale of such shares.

     As long as the Common Stock is not registered under the Exchange Act, the
Company intends that all offers and sales of Options and shares of Common Stock
issuable upon exercise of Options shall be exempt from registration under the
provisions of Section 5 of the Securities Act, and the Plan shall be
administered in a manner so as to preserve such exemption. The Company also
intends that the Plan shall constitute a written compensatory benefit plan,
within the meaning of Rule 701(b) promulgated under the Securities Act, and that
each Option granted pursuant to the Plan at a time when the Common Stock is not
registered under the Exchange Act shall, unless otherwise specified by the
Committee at the time the Option is granted or at any time thereafter, be
granted in reliance on the exemption from the registration requirements of
Section 5 of the Securities Act provided by Rule 701.

     As a condition to the exercise of an Option, the Committee may require the
Optionee to represent and warrant in writing at the time of such exercise that
the shares of Common Stock issuable upon exercise of the Option are being
purchased only for investment and without any then-present intention to sell or
distribute such shares. At the option of the Committee, a stop-transfer order
against such shares may be placed on the stock books and records of the Company,
and a legend indicating that such shares may not be pledged, sold or otherwise
transferred unless an opinion of counsel is provided stating that such transfer
is not in violation of any applicable law or regulation, may be stamped on the
certificates representing such shares in order to assure an exemption from
registration. The Committee also may require such other documentation as it
shall, in its discretion, deem necessary from time to time to comply with
federal and state securities laws. THE COMPANY HAS NO OBLIGATION TO UNDERTAKE
REGISTRATION OF ANY OPTION OR ANY SHARES OF COMMON STOCK ISSUABLE UPON THE
EXERCISE OF ANY OPTION.

          (2) The Optionee shall pay to the Company by certified or cashier's
check, promptly upon exercise of the Option or, if later, the date that the
amount of such obligations becomes determinable, all applicable federal, state,
local and foreign withholding taxes that the Committee, in accordance with the
applicable rules and regulations, determines to result from the exercise of the
Option or from a transfer or other disposition of shares of Common Stock
acquired upon exercise of the Option or otherwise related to the Option or
shares of Common Stock acquired upon exercise of the Option, which determination
by the Committee of the amount due shall be binding upon the Optionee. Upon
approval of the Committee, such Optionee may satisfy such obligation by
complying with one or more of the following alternatives selected by the
Committee:

                                       11
<PAGE>

               (A) by delivering to the Company whole shares of Common Stock
          then owned by such Optionee, or by the Company withholding whole
          shares of Common Stock otherwise issuable to the Optionee upon
          exercise of the Option, which shares of Common Stock received or
          withheld shall have a Fair Market Value on the date of exercise (as
          determined by the Committee in good faith) equal to the tax obligation
          to be paid by such Optionee upon such exercise;

               (B) by executing appropriate loan documents approved by the
          Committee by which such Optionee borrows funds from the Company to pay
          the withholding taxes due under this Section 6(l)(2), with such
          repayment terms as the Committee shall select;

               (C) by any combination of the foregoing methods of payment; or

               (D) by complying with any other payment mechanism as may be
          permitted for the issuance of equity securities under applicable
          securities and other laws and approved by the Committee from time to
          time.

          (3) The issuance, transfer or delivery of certificates of Common Stock
pursuant to the exercise of an Option may be delayed, at the discretion of the
Committee, until the Committee is satisfied that the applicable requirements of
the federal and state securities laws and the withholding provisions of the Code
have been met.

     (M) STOCK SPLIT, REORGANIZATION OR LIQUIDATION.

          (1) Upon the occurrence of any of the following events, the Committee
shall, with respect to each outstanding Option, proportionately adjust the
number of shares of Common Stock issuable upon exercise of such Option, the per
share exercise price or both so as to preserve the rights of the Optionee
substantially proportionate to the rights of such Optionee prior to such event,
and to the extent that such action shall include an increase or decrease in the
number of shares of Common Stock issuable upon exercise of outstanding Options,
the number of shares available under Section 5 (including the amount of the
annual increase in the number of shares reserved for issuance described in
Section 5) shall automatically be increased or decreased, as the case may be,
proportionately, without further action on the part of the Committee, the
Company, the Company's shareholders, or any Optionee:

               (i)  the Company shall at any time be involved in a transaction
                    described in Section 424(a) of the Code (or any successor
                    provision) or any "corporate transaction" described in the
                    regulations promulgated thereunder;

               (ii) the Company subdivides its outstanding shares of Common
                    Stock into a greater number of shares of Common Stock (by
                    stock dividend, stock split, reclassification or otherwise)
                    or combines its outstanding shares of Common Stock into a
                    smaller number of shares of Common Stock (by reverse stock
                    split, reclassification or otherwise); or

               (iii) any other event with substantially the same effect shall
                    occur.

          (2) If the Company shall at any time declare an extraordinary dividend
with respect to the Common Stock, whether payable in cash or other property, or
is involved in any recapitalization, spin-

                                       12

<PAGE>

off, combination, exchange of shares, warrants or rights offering to purchase
Common Stock, or other similar event (including a merger or consolidation other
than one that constitutes an Approved Transaction), the Committee may, in the
exercise of its sole discretion and with respect to each outstanding Option,
proportionately adjust the number of shares of Common Stock issuable upon
exercise of such Option, the per share exercise price or both so as to preserve
the rights of the Optionee substantially proportionate to the rights of such
Optionee prior to such event, and to the extent that such action shall include
an increase or decrease in the number of shares of Common Stock issuable upon
exercise of outstanding Options, the number of shares available under Section 5
of the Plan shall automatically be increased or decreased, as the case may be,
proportionately, without further action on the part of the Committee, the
Company, the Company's shareholders, or any Optionee.

          (3) The foregoing adjustments shall be made by the Committee or by the
applicable terms of any assumption or substitution document.

          (4) With respect to the foregoing adjustments, the number of shares
subject to an Option shall always be a whole number. The Committee may, if
deemed appropriate, provide for a cash payment to any Optionee in connection
with any adjustment made pursuant to this Section 6(m).

          (5) The grant of an Option shall not affect in any way the right or
power of the Company to make adjustments, reclassifications, reorganizations or
changes of its capital or business structure, to merge, consolidate or dissolve,
to liquidate or to sell or transfer all or any part of its business or assets.

     (N) APPROVED TRANSACTIONS; CONTROL PURCHASE.

     In the event of any Approved Transaction or Control Purchase, if so
provided for in the Agreement representing such Option, an Option may become
exercisable in full in respect of the aggregate number of shares thereunder
effective upon the Control Purchase or immediately prior to consummation of the
Approved Transaction. In the case of an Approved Transaction, the Company shall
provide notice of the pendency of the Approved Transaction at least fifteen (15)
days prior to the expected date of consummation thereof to each Optionee
entitled to acceleration. Each such Optionee shall thereupon be entitled to
exercise the vested portion of the Option at any time prior to consummation of
the Approved Transaction or immediately following the Control Purchase. Any such
exercise shall be contingent on such consummation.

     Following consummation of the Approved Transaction or Control Purchase, and
until such Option is terminated pursuant to Section 6(g) hereof, any vested
portion of Options that are not exercised shall remain exercisable, and any
unvested portions of any Options shall remain in effect and continue to vest in
accordance with the vesting schedule specified at the time of grant, and upon
such vesting shall become exercisable. Notwithstanding the foregoing, in its
reasonable discretion, the Board may determine that any or all outstanding
Options that are unvested at the time of, or are not exercised upon consummation
of, the Approved Transaction or Control Purchase shall thereafter terminate,
provided that, in making such determination, the Board shall consider the best
interests of the Optionees, the Company and its shareholders, and will make such
determination only if the action to be taken, in the opinion of the Board, is
appropriate in light of the circumstances under which such determination is
made.

     Moreover, except to the extent that such determination would render
unavailable "pooling of interests" accounting treatment for any reorganization,
merger or consolidation of the Company, the Board may take, or make effective
provision for the taking of, such action as in the opinion of the Board is
equitable and appropriate in order to substitute new stock options for any or
all outstanding Options that do

                                       13

<PAGE>

not become exercisable on an accelerated basis, or to assume such Options (which
assumption may be effected by any means determined by the Board, in its
discretion, including, but not limited to, by a cash payment to each Optionee,
in cancellation of the Options held by him or her, of such amount as the Board
determines, in its sole discretion, represents the then value of the Options)
and in order to make such new stock options or assumed Options, as nearly as
practicable, equivalent to the old Options, taking into account, to the extent
applicable, the kind and amount of securities, cash or other assets into or for
which the Common Stock may be changed, converted or exchanged in connection with
the Approved Transaction.

7. TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS.

     (A) AWARD OF STOCK APPRECIATION RIGHTS.

     Stock appreciation rights ("SARs") may be granted to eligible participants,
either on a free-standing basis (without regard to or in addition to the grant
of an Option) or on a tandem basis (related to the grant of an underlying
Option). SARs granted in tandem with or in addition to an Option may be granted
either at the same time as the Option or at a later time; provided, however,
that a tandem SAR shall not be granted with respect to any outstanding Incentive
Stock Option without the consent of the Awardee. SARs shall be evidenced by
Agreements stating the number of shares of Common Stock subject to the SAR
evidenced thereby and the terms and conditions of such SAR. In no event shall a
SAR be exercisable more than ten years from the date it is granted. The Awardee
shall have none of the rights of a shareholder of the Company with respect to
any shares of Common Stock represented by a SAR.

     (B) RESTRICTIONS OF TANDEM SARS.

     No Incentive Stock Option may be surrendered in connection with the
exercise of a tandem SAR unless the Fair Market Value of the Common Stock
subject to the Incentive Stock Option is greater than the exercise price for
such Incentive Stock Option. SARs granted in tandem with Options shall be
exercisable only to the same extent and subject to the same conditions as the
Options related thereto are exercisable. Additional conditions to the exercise
of any such tandem SAR may be prescribed.

     (C) AMOUNT OF PAYMENT UPON EXERCISE OF SARS.

     A SAR shall entitle the Awardee to receive, subject to the provisions of
the Plan and the applicable Agreement, a payment having an aggregate value equal
to the product of (i) the excess of (A) the Fair Market Value on the exercise
date of one share of Common Stock over (B) the base price per share specified in
the applicable Agreement, times (ii) the number of shares specified by the SAR,
or portion thereof, which is exercised. In the case of exercise of a tandem SAR,
such payment shall be made in exchange for the surrender of the unexercised
related Option (or any portion or portions thereof which the Awardee from time
to time determines to surrender for this purpose).

                                       14

<PAGE>

     (D) FORM OF PAYMENT UPON EXERCISE OF SARS.

     Payment by the Company of the amount receivable upon any exercise of a SAR
may be made by the delivery of Common Stock or cash, or any combination of
Common Stock and cash, as determined in the sole discretion of the Committee
from time to time. If upon settlement of the exercise of a SAR an Awardee is to
receive a portion of such payment in shares of Common Stock, the number of
shares shall be determined by dividing such portion by the Fair Market Value of
a share of Common Stock on the exercise date. No fractional shares shall be used
for such payment and the Committee shall determine whether cash shall be given
in lieu of such fractional shares or whether such fractional shares shall be
eliminated.

8. RESTRICTED STOCK AWARDS.

     (A) NATURE OF RESTRICTED STOCK AWARDS.

     A Restricted Stock Award is an Award pursuant to which the Company may, in
its sole discretion, grant or sell, at such purchase price as determined by the
Committee, in its sole discretion, shares of Common Stock subject to such
restrictions and conditions as the Committee may determine at the time of grant
("Restricted Stock"), which purchase price shall be payable in cash or other
form of consideration acceptable to the Committee. Conditions may be based on
continuing employment (or other service relationship) and/or achievement of
pre-established performance goals and objectives. The terms and conditions of
each such Agreement shall be determined by the Committee, and such terms and
conditions may differ among individual Awards and Awardees.

     (B) RIGHTS AS A SHAREHOLDER.

     Upon execution of an Agreement setting forth the Restricted Stock Award and
payment of any applicable purchase price, an Awardee shall have the rights of a
shareholder with respect to the voting of the Restricted Stock, subject to such
conditions contained in the applicable Agreement. Unless the Committee shall
otherwise determine, certificates evidencing the Restricted Stock shall remain
in the possession of the Company until such Restricted Stock is vested as
provided in Section 8(d) below, and the Awardee shall be required, as a
condition of the grant, to deliver to the Company a stock power endorsed in
blank.

     (C) RESTRICTIONS.

     Restricted Stock may not be sold, assigned, transferred, pledged or
otherwise encumbered or disposed of except as specifically provided herein or in
the applicable Agreement. If an Awardee's employment (or other service
relationship) with the Company terminates under the conditions specified in the
applicable Agreement, or upon such other event or events as may be stated in the
applicable Agreement, the Company or its assigns shall have the right or shall
agree, as may be specified in the applicable Agreement, to repurchase some or
all of the shares of Common Stock subject to the Award at such purchase price as
is set forth in such instrument.

                                       15

<PAGE>

     (D) VESTING OF RESTRICTED STOCK.

     The Committee at the time of grant shall specify the date or dates and/or
the attainment of pre-established performance goals, objectives and other
conditions on which Restricted Stock shall become vested, subject to such
further rights of the Company or its assigns as may be specified in the
applicable Agreement.

     (E) WAIVER, DEFERRAL AND REINVESTMENT OF DIVIDENDS.

     The Restricted Stock Award Agreement may require or permit the immediate
payment, waiver, deferral or investment of dividends paid on the Restricted
Stock.

9. UNRESTRICTED STOCK AWARDS.

     (A) GRANT OR SALE OF UNRESTRICTED STOCK.

     The Committee may, in its sole discretion, grant (or sell at a purchase
price determined by the Committee) an Unrestricted Stock Award to any Awardee,
pursuant to which such Awardee may receive shares of Common Stock free of any
vesting restrictions ("Unrestricted Stock") under the Plan. Unrestricted Stock
Awards may be granted or sold as described in the preceding sentence in respect
of past services or other valid consideration, or in lieu of any cash
compensation due to such individual.

     (B) ELECTIONS TO RECEIVE UNRESTRICTED STOCK IN LIEU OF COMPENSATION.

     Upon the request of an Awardee and with the consent of the Committee, each
such Awardee may, pursuant to an advance written election delivered to the
Company no later than the date specified by the Committee, receive a portion of
the cash compensation otherwise due to such Awardee in the form of shares of
Unrestricted Stock either currently or on a deferred basis.

     (C) RESTRICTIONS ON TRANSFERS.

     The right to receive shares of Unrestricted Stock on a deferred basis may
not be sold, assigned, transferred, pledged or otherwise encumbered, other than
by will or the laws of descent and distribution.

10. SECURITIES REGULATION AND TAX WITHHOLDING.

     (a) No shares of Common Stock shall be issued upon exercise of an Award
unless the exercise of such Award and the issuance and delivery of such shares
shall comply with all relevant provisions of law, including, without limitation,
any applicable state securities laws, the Securities Act, the Exchange Act, the
rules and regulations thereunder and the requirements of any stock exchange upon
which such shares may then be listed, and such issuance shall be further subject
to the approval of counsel for the Company with respect to such compliance,
including the availability of an exemption from registration for the issuance
and sale of such shares. The inability of the Company to obtain from any
regulatory body the authority deemed by the Company to be necessary for the
lawful issuance and sale of any shares under the Plan, or the unavailability of
an exemption from registration for the issuance and sale of any shares under the
Plan, shall relieve the Company of any liability with respect to the
non-issuance or sale of such shares.

     As long as the Common Stock is not registered under the Exchange Act, the
Company intends that all offers and sales of Awards and shares of Common Stock
issuable upon exercise of Awards shall be

                                       16

<PAGE>

exempt from registration under the provisions of Section 5 of the Securities
Act, and the Plan shall be administered in a manner so as to preserve such
exemption. The Company also intends that the Plan shall constitute a written
compensatory benefit plan, within the meaning of Rule 701(b) promulgated under
the Securities Act, and that each Award granted pursuant to the Plan at a time
when the Common Stock is not registered under the Exchange Act shall, unless
otherwise specified by the Committee at the time the Award is granted or at any
time thereafter, be granted in reliance on the exemption from the registration
requirements of Section 5 of the Securities Act provided by Rule 701.

     As a condition to the exercise of an Award, the Committee may require the
Awardee to represent and warrant in writing at the time of such exercise that
the shares of Common Stock issuable upon exercise of the Award are being
purchased only for investment and without any then-present intention to sell or
distribute such shares. At the option of the Committee, a stop-transfer order
against such shares may be placed on the stock books and records of the Company,
and a legend indicating that such shares may not be pledged, sold or otherwise
transferred unless an opinion of counsel is provided stating that such transfer
is not in violation of any applicable law or regulation, may be stamped on the
certificates representing such shares in order to assure an exemption from
registration. The Committee also may require such other documentation as it
shall, in its discretion, deem necessary from time to time to comply with
federal and state securities laws. THE COMPANY HAS NO OBLIGATION TO UNDERTAKE
REGISTRATION OF ANY AWARD OR ANY SHARES OF COMMON STOCK ISSUABLE UPON THE
EXERCISE OF ANY AWARD.

     (b) The Awardee shall pay to the Company by certified or cashier's check,
promptly upon exercise of the Award or, if later, the date that the amount of
such obligations becomes determinable, all applicable federal, state, local and
foreign withholding taxes that the Committee, in accordance with the applicable
rules and regulations, determines to result from the exercise of the Award or
from a transfer or other disposition of shares of Common Stock acquired upon
exercise of the Award or otherwise related to the Award or shares of Common
Stock acquired upon exercise of the Award, which determination by the Committee
of the amount due shall be binding upon the Awardee. Upon approval of the
Committee, such Awardee may satisfy such obligation by complying with one or
more of the following alternatives selected by the Committee:

               (i) by delivering to the Company whole shares of Common Stock
          then owned by such Awardee, or by the Company withholding whole shares
          of Common Stock otherwise issuable to the Awardee upon exercise of the
          Award, which shares of Common Stock received or withheld shall have a
          Fair Market Value on the date of exercise (as determined by the
          Committee in good faith) equal to the tax obligation to be paid by
          such Awardee upon such exercise;

               (ii) by executing appropriate loan documents approved by the
          Committee by which such Awardee borrows funds from the Company to pay
          the withholding taxes due under this Section 10, with such repayment
          terms as the Committee shall select;

               (iii) by any combination of the foregoing methods of payment; or

               (iv) by complying with any other payment mechanism as may be
          permitted for the issuance of equity securities under applicable
          securities and other laws and approved by the Committee from time to
          time.

                                       17

<PAGE>

     (c) The issuance, transfer or delivery of certificates of Common Stock
pursuant to the exercise of an Award may be delayed, at the discretion of the
Committee, until the Committee is satisfied that the applicable requirements of
the federal and state securities laws and the withholding provisions of the Code
have been met.

11. STOCK SPLIT, REORGANIZATION OR LIQUIDATION.

     (a) Upon the occurrence of any of the following events, the Committee
shall, with respect to each outstanding Award, proportionately adjust the number
of shares of Common Stock issuable upon exercise of such Award, the per share
exercise price or both so as to preserve the rights of the Awardee substantially
proportionate to the rights of such Awardee prior to such event, and to the
extent that such action shall include an increase or decrease in the number of
shares of Common Stock issuable upon exercise of outstanding Awards, the number
of shares available under Section 5 (including the amount of the annual increase
in the number of shares reserved for issuance described in Section 5) shall
automatically be increased or decreased, as the case may be, proportionately,
without further action on the part of the Committee, the Company, the Company's
shareholders, or any Awardee:

               (i) the Company shall at any time be involved in a transaction
          described in Section 424(a) of the Code (or any successor provision)
          or any "corporate transaction" described in the regulations
          promulgated thereunder;

               (ii) the Company subdivides its outstanding shares of Common
          Stock into a greater number of shares of Common Stock (by stock
          dividend, stock split, reclassification or otherwise) or combines its
          outstanding shares of Common Stock into a smaller number of shares of
          Common Stock (by reverse stock split, reclassification or otherwise);
          or

               (iii) any other event with substantially the same effect shall
          occur.

     (b) If the Company shall at any time declare an extraordinary dividend with
respect to the Common Stock, whether payable in cash or other property, or is
involved in any recapitalization, spin-off, combination, exchange of shares,
warrants or rights offering to purchase Common Stock, or other similar event
(including a merger or consolidation other than one that constitutes an Approved
Transaction), the Committee may, in the exercise of its sole discretion and with
respect to each outstanding Award, proportionately adjust the number of shares
of Common Stock issuable upon exercise of such Award, the per share exercise
price or both so as to preserve the rights of the Awardee substantially
proportionate to the rights of such Awardee prior to such event, and to the
extent that such action shall include an increase or decrease in the number of
shares of Common Stock issuable upon exercise of outstanding Awards, the number
of shares available under Section 5 of the Plan shall automatically be increased
or decreased, as the case may be, proportionately, without further action on the
part of the Committee, the Company, the Company's shareholders, or any Awardee.

     (c) The foregoing adjustments shall be made by the Committee or by the
applicable terms of any assumption or substitution document.

     (d) With respect to the foregoing adjustments, the number of shares subject
to an Award shall always be a whole number. The Committee may, if deemed
appropriate, provide for a cash payment to any Awardee in connection with any
adjustment made pursuant to this Section 11.

                                       18

<PAGE>

     (e) The grant of an Award shall not affect in any way the right or power of
the Company to make adjustments, reclassifications, reorganizations or changes
of its capital or business structure, to merge, consolidate or dissolve, to
liquidate or to sell or transfer all or any part of its business or assets.

12. APPROVED TRANSACTIONS; CONTROL PURCHASE.

     In the event of any Approved Transaction or Control Purchase, if so
provided for in the Agreement representing such Award, an Award may become
exercisable in full in respect of the aggregate number of shares thereunder
effective upon the Control Purchase or immediately prior to consummation of the
Approved Transaction. In the case of an Approved Transaction, the Company shall
provide notice of the pendency of the Approved Transaction at least fifteen (15)
days prior to the expected date of consummation thereof to each Awardee entitled
to acceleration. Each such Awardee shall thereupon be entitled to exercise the
vested portion of the Award at any time prior to consummation of the Approved
Transaction or immediately following the Control Purchase. Any such exercise
shall be contingent on such consummation.

     Following consummation of the Approved Transaction or Control Purchase, and
until such Award is terminated, any vested portion of Awards that are not
exercised shall remain exercisable, and any unvested portions of any Awards
shall remain in effect and continue to vest in accordance with the vesting
schedule specified at the time of grant, and upon such vesting shall become
exercisable. Notwithstanding the foregoing, in its reasonable discretion, the
Board may determine that any or all outstanding Awards that are unvested at the
time of, or are not exercised upon consummation of, the Approved Transaction or
Control Purchase shall thereafter terminate, provided that, in making such
determination, the Board shall consider the best interests of the Awardees, the
Company and its shareholders, and will make such determination only if the
action to be taken, in the opinion of the Board, is appropriate in light of the
circumstances under which such determination is made.

     Moreover, except to the extent that such determination would render
unavailable "pooling of interests" accounting treatment for any reorganization,
merger or consolidation of the Company, the Board may take, or make effective
provision for the taking of, such action as in the opinion of the Board is
equitable and appropriate in order to substitute new awards for any or all
outstanding Awards that do not become exercisable on an accelerated basis, or to
assume such Awards (which assumption may be effected by any means determined by
the Board, in its discretion, including, but not limited to, by a cash payment
to each Awardee, in cancellation of the Awards held by him or her, of such
amount as the Board determines, in its sole discretion, represents the then
value of the Awards) and in order to make such new stock options or assumed
Awards, as nearly as practicable, equivalent to the old Awards, taking into
account, to the extent applicable, the kind and amount of securities, cash or
other assets into or for which the Common Stock may be changed, converted or
exchanged in connection with the Approved Transaction.

13. EFFECTIVE DATE; TERM.

     The Plan shall be effective at the time specified in the resolutions of the
Board adopting the Plan (the "Effective Date"). Awards may be granted by the
Committee or Executive Officer from time to time thereafter until the tenth
anniversary of the Effective Date. Termination of the Plan shall not terminate
any Award granted prior to such termination. Issuance of Non-Qualified Stock
Options under the Plan shall be subject to the requirement of RCW 21.20.310(10)
that the Administrator of Securities of the Department of Financial Institutions
of the State of Washington be provided with notification of the adoption of the
Plan. No Non-Qualified Stock Option shall be granted hereunder until this
notification requirement has been satisfied. Issuance of Incentive Stock Options
under the Plan within twelve (12) months after the Effective Date shall be
subject to the approval of the Plan by the shareholders of the Company at a duly
held meeting

                                       19

<PAGE>

of shareholders at which a majority of all outstanding voting stock of the
Company is represented in person or by proxy. The approval required shall be a
majority of the votes cast on the proposal to approve the Plan. Such approval
may also be provided pursuant to a written consent in lieu of such meeting. No
Incentive Stock Option granted hereunder shall be exercisable until this
approval requirement has been satisfied. If this requirement is not satisfied
within twelve (12) months after the Effective Date, then, notwithstanding any
contrary provision in the Plan (a) no Incentive Stock Options may thereafter be
granted under the Plan, and (b) each Incentive Stock Option granted under the
Plan prior thereto shall automatically be deemed to be a Non-Qualified Stock
Option (except to the extent the Agreement evidencing the Option expressly
provides otherwise).

14. NO OBLIGATIONS TO EXERCISE AWARD.

     The grant of an Award shall impose no obligation upon the Awardee to
exercise such Award.

15. NO RIGHT TO AWARDS OR TO EMPLOYMENT.

     Whether or not any Awards are to be granted under the Plan shall be
exclusively within the discretion of the Committee, and nothing contained in the
Plan shall be construed as giving any person any right to participate under the
Plan. The grant of an Award to any Awardee shall in no way constitute any form
of agreement or understanding binding on the Company or any Related Corporation,
express or implied, that the Company or such Related Corporation will employ or
contract with such Awardee for any length of time, nor shall it interfere in any
way with the Company's or, where applicable, a Related Corporation's right to
terminate such Awardee's employment at any time, which right is hereby reserved.

16. APPLICATION OF FUNDS.

     The proceeds received by the Company from the sale of Common Stock issued
upon the exercise of Awards shall be used for general corporate purposes, unless
otherwise directed by the Board.

17. INDEMNIFICATION OF COMMITTEE.

     In addition to all other rights of indemnification they may have by virtue
of being a member of the Board or an executive officer of the Company, members
of the Committee and the Executive Officer shall be indemnified by the Company
for all reasonable expenses and liabilities of any type or nature, including
attorneys' fees, incurred in connection with any action, suit or proceeding to
which they or any of them are a party by reason of, or in connection with, the
Plan or any Award granted under the Plan, and against all amounts paid by them
in settlement thereof (provided that such settlement is approved by independent
legal counsel selected by the Company), except to the extent that such expenses
relate to matters for which it is adjudged that such Committee member or
Executive Officer is liable for willful misconduct; provided, however, that
within fifteen (15) days after the institution of any such action, suit or
proceeding, the Committee member or Executive Officer involved therein shall, in
writing, notify the Company of such action, suit or proceeding, so that the
Company may have the opportunity to make appropriate arrangements to prosecute
or defend the same.

                                       20

<PAGE>

18. SHAREHOLDERS AGREEMENT.

     Unless the Agreement evidencing an Award expressly provides otherwise, each
Awardee may be required, as a condition to the issuance of any shares of Common
Stock that such Awardee acquires upon the exercise of the Award, to execute and
deliver to the Company a shareholders agreement in such form as may be required
by the Company at the time of such exercise, or a counterpart thereof, together
with, unless the Awardee is unmarried, a spousal consent in the form required
thereby, unless the Awardee has previously executed and delivered such documents
and they are in effect at the time of exercise and apply by their terms to the
shares to be issued.

19. SEPARABILITY.

     With respect to Incentive Stock Options, if the Plan does not contain any
provision required to be included herein under Section 422 of the Code, such
provision shall be deemed to be incorporated herein with the same force and
effect as if such provision had been set out in full herein; provided, however,
that to the extent any Option that is intended to qualify as an Incentive Stock
Option cannot so qualify, the Option, to that extent, shall be deemed to be a
Non-Qualified Stock Option for all purposes of the Plan.

20. NON-EXCLUSIVITY OF THE PLAN.

     Neither the adoption of the Plan by the Board nor the submission of the
Plan to the shareholders 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 and the awarding of stock and cash otherwise than
pursuant to the Plan, and such arrangements may be either generally applicable
or applicable only in specific cases.

21. EXCLUSION FROM PENSION AND PROFIT-SHARING COMPUTATION.

     By acceptance of an Award, unless otherwise provided in the Agreement
evidencing the Award, the Awardee with respect to such Award shall be deemed to
have agreed that the Award is special incentive compensation that will not be
taken into account, in any manner, as salary, compensation or bonus in
determining the amount of any payment or other benefit under any pension,
retirement or other employee benefit plan, program or policy of the Company or
any of its affiliates.

22. AMENDMENT OF PLAN.

     The Board may, at any time, modify, amend or terminate the Plan or modify
or amend any Award granted pursuant to the Plan, including, without limitation,
such modifications or amendments as are necessary to maintain compliance with
applicable statutes, rules or regulations; provided, however, that no amendment
with respect to an outstanding Award which has the effect of reducing the
benefits afforded to the Awardee shall be made over the objection of such
Awardee; further provided, that the events triggering acceleration of vesting of
an outstanding Award may be modified, expanded or eliminated without the consent
of the Awardee. The Board may condition the effectiveness of any such amendment
on the receipt of shareholder approval at such time and in such manner as the
Committee may consider necessary for the Company to comply with or to avail the
Company, the Awardees or both of the benefits of any securities, tax, market
listing or other administrative or regulatory requirement which the Board
determines to be desirable. Without limiting the generality of the foregoing,
the Board may modify grants to persons who are eligible to receive Awards under
the Plan who are foreign nationals or employed outside the United States to
recognize differences in local law, tax policy or custom.

                                       21

<PAGE>

<TABLE>
<S>                                                                             <C>
Date Amended and Restated Plan was Approved by Board of Directors of Company:   January 29, 1998

Date Amended and Restated Plan was Approved by Shareholders of Company:         January 29, 1998

As Amended by the Board of Directors and Shareholders of the Company:           August 31, 1999
                                                                                May 2, 2000
                                                                                April 29, 2003
                                                                                May 12, 2005
</TABLE>

                                       22

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}]]