Document:

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                                                                  EXHIBIT 10.513

                            INDEMNIFICATION AGREEMENT

         This Indemnification Agreement (the "Agreement") is made as of
_______________ by and between Cygnus, Inc., a Delaware corporation (the
"Corporation"), and ____________________ (the "Indemnitee").

                                    RECITALS

         The Corporation and Indemnitee recognize the increasing difficulty in
obtaining liability insurance for directors, officers and key employees, the
significant increases in the cost of such insurance and the general reductions
in the coverage of such insurance. The Corporation and Indemnitee further
recognize the substantial increase in corporate litigation in general,
subjecting directors, officers and key employees to expensive litigation risks
at the same time as the availability and coverage of liability insurance has
been severely limited. Indemnitee does not regard the current protection
available as adequate under the present circumstances, and Indemnitee and agents
of the Corporation may not be willing to continue to serve as agents of the
Corporation without additional protection. The Corporation desires to attract
and retain the services of highly qualified individuals, such as Indemnitee, and
to indemnify its directors, officers and key employees so as to provide them
with the maximum protection permitted by law.

                                    AGREEMENT

         In consideration of the mutual promises made in this Agreement, and for
other good and valuable consideration, receipt of which is hereby acknowledged,
the Corporation and Indemnitee hereby agree as follows:

         1. INDEMNIFICATION.

                  (a) THIRD-PARTY PROCEEDINGS. The Corporation shall indemnify
Indemnitee if Indemnitee is or was a party or is threatened to be made a party
to any threatened, pending or completed action, suit or proceeding, whether
civil, criminal, administrative or investigative (other than an action by or in
the right of the Corporation) by reason of the fact that Indemnitee is or was a
director, officer, employee or agent of the Corporation, or any subsidiary of
the Corporation, by reason of any action or inaction on the part of Indemnitee
while an officer or director or by reason of the fact that Indemnitee is or was
serving at the request of the Corporation as a director, officer, employee or
agent of another corporation, partnership, joint venture, trust or other
enterprise, against expenses, liabilities, damages and losses (including
attorneys' fees), judgments, fines, excise taxes and amounts paid in settlement
(if the Corporation approves such settlement in advance, not be to unreasonably
withheld) actually and reasonably incurred or suffered by Indemnitee in
connection with such action, suit or proceeding if Indemnitee acted in good
faith and in a manner Indemnitee reasonably believed to be in or not opposed to
the best interests of the Corporation and, with respect to any criminal action
or proceeding, had no reasonable cause to believe Indemnitee's conduct was
unlawful. The termination of any action, suit or proceeding by judgment, order,
settlement, conviction, or upon a plea of nolo contendere or its equivalent,
shall not, of itself, create a presumption that Indemnitee did not act in good
faith and in a manner which Indemnitee reasonably believed to be

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in or not opposed to the best interests of the Corporation, and, with respect to
any criminal action or proceeding, shall not create a presumption that
Indemnitee had reasonable cause to believe that Indemnitee's conduct was
unlawful.

                  (b) PROCEEDINGS BY OR IN THE RIGHT OF THE CORPORATION. The
Corporation shall indemnify Indemnitee if Indemnitee was or is a party or is
threatened to be made a party to any threatened, pending or completed action or
proceeding by or in the right of the Corporation or any subsidiary of the
Corporation to procure a judgment in its favor by reason of the fact that
Indemnitee is or was a director, officer, employee or agent of the Corporation,
or any subsidiary of the Corporation, by reason of any action or inaction on the
part of Indemnitee while an officer or director or by reason of the fact that
Indemnitee is or was serving at the request of the Corporation as a director,
officer, employee or agent of another corporation, partnership, joint venture,
trust or other enterprise, against expenses, liabilities, damages and losses
(including attorneys' fees) and, to the fullest extent permitted by law, amounts
paid in settlement (if the Corporation approves such settlement in advance, not
to be unreasonably withheld), in each case to the extent actually and reasonably
incurred by Indemnitee in connection with the defense or settlement of such
action or suit if Indemnitee acted in good faith and in a manner Indemnitee
reasonably believed to be in or not opposed to the best interests of the
Corporation, except that no indemnification shall be made with respect to any
claim, issue or matter as to which Indemnitee shall have been finally
adjudicated by court order or judgment to be liable to the Corporation unless
and only to the extent that the Delaware Court of Chancery or the court in which
such action or proceeding is or was pending shall determine upon application
that, in view of all the circumstances of the case, Indemnitee is fairly and
reasonably entitled to indemnity for such expenses which such court shall deem
proper.

                  (c) MANDATORY PAYMENT OF EXPENSES. To the extent that
Indemnitee has been successful on the merits or otherwise in defense of any
action, suit or proceeding referred to in Section l(a) or Section l(b) or the
defense of any claim, issue or matter therein, Indemnitee shall be indemnified
against expenses (including attorneys' fees) actually and reasonably incurred by
Indemnitee in connection therewith.

         2. NO EMPLOYMENT RIGHTS. Nothing contained in this Agreement is
intended to create in Indemnitee any right to continued employment.

         3. EXPENSES; INDEMNIFICATION PROCEDURE.

                  (a) ADVANCEMENT OF EXPENSES. The Corporation shall advance all
expenses incurred by Indemnitee in connection with the investigation, defense,
settlement or appeal of any civil or criminal action, suit or proceeding
referred to in Section l(a) or Section l(b) of this Agreement (including amounts
actually paid in settlement of any such action, suit or proceeding as to which
Indemnitee is entitled to indemnification hereunder). Indemnitee hereby
undertakes to repay such amounts advanced only if, and to the extent that, it
shall ultimately be determined that Indemnitee is not entitled to be indemnified
by the Corporation as authorized hereby.

                  (b) NOTICE/COOPERATION BY INDEMNITEE. Indemnitee shall, as a
condition precedent to his or her right to be indemnified under this Agreement,
give the Corporation notice in writing as soon as practicable of any claim made
against Indemnitee for which

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indemnification will or could be sought under this Agreement. Notice to the
Corporation shall be directed to the Chief Executive Officer of the Corporation
and shall be given in accordance with the provisions of Section 12(d) below. In
addition, Indemnitee shall give the Corporation such information and cooperation
as it may reasonably require and as shall be within Indemnitee's power.

                  (c) PROCEDURE. Any indemnification and advances provided for
in Section 1 and this Section 3 shall be made no later than sixty (60) days
after receipt of the written request of Indemnitee. If a claim under this
Agreement, under any statute, or under any provision of the Corporation's
Certificate of Incorporation or By-laws providing for indemnification, is not
paid in full by the Corporation within sixty (60) days after a written request
for payment thereof has first been received by the Corporation, Indemnitee may,
but need not, at any time thereafter bring suit against the Corporation to
recover the unpaid amount of the claim and, subject to Section 11 of this
Agreement, Indemnitee shall also be entitled to be paid for the expenses
(including attorneys' fees) of bringing such suit. It shall be a defense to any
such action (other than an action brought to enforce a claim for expenses
incurred in defending any proceeding in advance of its final disposition where
the required undertaking if any is required, has been tendered to the
Corporation) that Indemnitee has not met the standards of conduct which makes it
permissible under the General Corporation Law of the State of Delaware for the
Corporation to indemnify Indemnitee for the amount claimed, but the burden of
proving such defense shall be on the Corporation and Indemnitee shall be
entitled to receive interim payments of expenses pursuant to Section 3(i) unless
and until such defense may be finally adjudicated by court order or judgment
from which no further right of appeal exists. It is the parties' intention that
if the Corporation contests Indemnitee's right to indemnification, such question
shall be for the court to decide, and neither the failure of the Corporation
(including its Board of Directors, any committee or subgroup of the Board of
Directors, independent legal counsel, or its shareholders) to have made a
determination that indemnification of Indemnitee is proper in the circumstances
because Indemnitee has met the applicable standard of conduct required by
applicable law, nor an actual determination by the Corporation (including its
Board of Directors, any committee or subgroup of the Board of Directors,
independent legal counsel, or its shareholders) that Indemnitee has not met such
applicable standard of conduct, shall create a presumption that Indemnitee has
or has not met the applicable standard of conduct.

                  (d) NOTICE TO INSURERS. If, at the time the Corporation
receives notice of a claim pursuant to Section 3(b) hereof, it has director and
officer liability insurance in effect, the Corporation shall give prompt notice
of such proceedings to the insurers in accordance with the procedures set forth
in the respective policies. The Corporation shall thereafter take all necessary
or desirable action to cause such insurers to pay, on behalf of the Indemnitee,
all amounts payable as a result of such proceeding in accordance with the terms
of such policies.

                  (e) SELECTION OF COUNSEL. In the event Section 3(a) hereof
obligates the Corporation to pay the expenses of any proceeding against
Indemnitee, the Corporation, if appropriate, shall be entitled to assume the
defense of such proceeding, with counsel approved by Indemnitee, upon the
delivery to Indemnitee of written notice of its election so to do. After
delivery of such notice, approval of such counsel by Indemnitee and the
retention of such counsel by the Corporation, the Corporation will not be liable
to Indemnitee under this Agreement for any fees of counsel subsequently incurred
by Indemnitee with respect to the same

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proceeding, provided that (i) Indemnitee shall have the right to employ counsel
in any such proceeding at Indemnitee's expense; and (ii) if (a) the Corporation
previously authorized the Indemnitee's employment, (b) Indemnitee shall have
reasonably concluded that there may be a conflict of interest between the
Corporation and Indemnitee in the conduct of any such defense or (c) the
Corporation shall not, in fact, have employed counsel to assume the defense of
such proceeding, then the fees and expenses of Indemnitee's counsel shall be at
the expense of the Corporation.

         4. ADDITIONAL INDEMNIFICATION RIGHTS; NONEXCLUSIVITY.

                  (a) SCOPE. Notwithstanding any other provision of this
Agreement, the Corporation hereby agrees to indemnify the Indemnitee to the
fullest extent permitted by law, notwithstanding that such indemnification is
not specifically authorized by the other provisions of this Agreement, the
Corporation's Certificate of Incorporation, the Corporation's By-laws or by
statute. In the event of any change, after the date of this Agreement, in any
applicable law, statute, or rule expanding the right of a Delaware corporation
to indemnify a member of its board of directors or an officer, such changes
shall be deemed to be within the purview of Indemnitee's rights and the
Corporation's obligations under this Agreement. In the event of any change in
any applicable law, statute or rule narrowing the right of a Delaware
corporation to indemnify a member of its board of directors or an officer, such
changes, to the extent not otherwise required by such law, statute or rule to be
applied to this Agreement shall have no effect on this Agreement or the parties'
rights and obligations hereunder.

                  (b) NONEXCLUSIVITY. The indemnification provided by this
Agreement shall not be deemed exclusive of any rights to which Indemnitee may be
entitled under the Corporation's Certificate of Incorporation, its By-laws, any
agreement, any vote of stockholders or disinterested members of the
Corporation's Board of Directors, the General Corporation Law of the State of
Delaware, or otherwise, both as to action in Indemnitee's official capacity and
as to action in another capacity while holding such office. The indemnification
provided under this Agreement shall continue as to Indemnitee for any action
taken or not taken while serving in an indemnified capacity even though he or
she may have ceased to serve in any such capacity at the time of any action,
suit or other covered proceeding.

         5. PARTIAL INDEMNIFICATION. If Indemnitee is entitled under any
provision of this Agreement to indemnification by the Corporation for some or a
portion of the expenses, judgments, fines or penalties actually or reasonably
incurred in the investigation, defense, appeal or settlement of any civil or
criminal action, suit or proceeding, but not, however, for the total amount
thereof, the Corporation shall nevertheless indemnify Indemnitee for the portion
of such expenses, judgments, fines or penalties to which Indemnitee is entitled.

         6. MUTUAL ACKNOWLEDGMENT. Both the Corporation and Indemnitee
acknowledge that in certain instances, federal law or public policy may override
applicable state law and prohibit the Corporation from indemnifying its
directors and officers under this Agreement or otherwise. For example, the
Corporation and Indemnitee acknowledge that the Securities and Exchange
Commission (the "SEC") has taken the position that indemnification is not
permissible for liabilities arising under certain federal securities laws, and
federal legislation prohibits indemnification for certain violations of the
Employee Retirement Income Security Act of 1974

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("ERISA"). Indemnitee understands and acknowledges that the Corporation has
undertaken or may be required in the future to undertake with the SEC to submit
the question of indemnification to a court in certain circumstances for a
determination of the Corporation's right under public policy to indemnify
Indemnitee.

         7. OFFICER AND DIRECTOR LIABILITY INSURANCE. The Corporation shall,
from time to time, make the good faith determination whether or not it is
practicable for the Corporation to obtain and maintain a policy or policies of
insurance with reputable insurance companies providing the officers and
directors of the Corporation with coverage for losses from wrongful acts, or to
ensure the Corporation's performance of its indemnification obligations under
this Agreement. Among other considerations, the Corporation will weigh the costs
of obtaining such insurance coverage against the protection afforded by such
coverage. In all policies of director and officer liability insurance,
Indemnitee shall be named as an insured in such a manner as to provide
Indemnitee the same rights and benefits as are accorded to the most favorably
insured of the Corporation's directors, if Indemnitee is a director; or of the
Corporation's officers, if Indemnitee is not a director of the Corporation but
is an officer; or of the Corporation's key employees, if Indemnitee is not an
officer or director but is a key employee. Notwithstanding the foregoing, the
Corporation shall have no obligation to obtain or maintain such insurance if the
Corporation determines in good faith that such insurance is not reasonably
available, if the premium costs for such insurance are disproportionate to the
amount of coverage provided, if the coverage provided by such insurance is
limited by exclusions so as to provide an insufficient benefit, or if Indemnitee
is covered by similar insurance maintained by a parent or subsidiary of the
Corporation.

         8. SEVERABILITY. Nothing in this Agreement is intended to require or
shall be construed as requiring the Corporation to do or fail to do any act in
violation of applicable law. The Corporation's inability, pursuant to court
order, to perform its obligations under this Agreement shall not constitute a
breach of this Agreement. The provisions of this Agreement shall be severable as
provided in this Section 8. If this Agreement or any portion hereof shall be
invalidated on any ground by any court of competent jurisdiction, then the
Corporation shall nevertheless indemnify Indemnitee to the full extent permitted
by any applicable portion of this Agreement that shall not have been
invalidated, and the balance of this Agreement not so invalidated shall be
enforceable in accordance with its terms.

         9. EXCEPTIONS. Any other provision herein to the contrary
notwithstanding, the Corporation shall not be obligated pursuant to the terms of
this Agreement:

                  (a) CLAIMS INITIATED BY INDEMNITEE. To indemnify or advance
expenses to Indemnitee with respect to proceedings or claims initiated or
brought voluntarily by Indemnitee and not by way of defense, except with respect
to proceedings brought to establish or enforce a right to indemnification under
this Agreement or any other statute or law or otherwise as required under
Section 145 of the Delaware General Corporation Law, but such indemnification or
advancement of expenses may be provided by the Corporation in specific cases if
the Board of Directors finds it to be appropriate;

                  (b) LACK OF GOOD FAITH. To indemnify Indemnitee for any
expenses incurred by Indemnitee with respect to any proceeding instituted by
Indemnitee to enforce or interpret this

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Agreement, if a court of competent jurisdiction determines that each of the
material assertions made by Indemnitee in such proceeding was not made in good
faith or was frivolous or the court determines that indemnification hereunder is
unlawful;

                  (c) INSURED CLAIMS. To indemnify Indemnitee for expenses or
liabilities of any type whatsoever (including, but not limited to, judgments,
fines, ERISA excise taxes or penalties, and amounts paid in settlement) if, and
then only to the extent that, such expenses or liabilities have been paid
directly to Indemnitee by an insurance carrier under a policy of officers' and
directors' liability insurance maintained by the Corporation; or

                  (d) CLAIMS UNDER SECTION 16(b). To indemnify Indemnitee for
expenses or the payment of profits arising from the purchase and sale by
Indemnitee of securities in violation of Section 16(b) of the Securities
Exchange Act of 1934, as amended, or any similar successor statute.

         10. CONSTRUCTION OF CERTAIN PHRASES.

                  (a) For purposes of this Agreement, references to the
"Corporation" shall include, in addition to the resulting corporation, any
constituent corporation (including any constituent of a constituent) absorbed in
a consolidation or merger which, if its separate existence had continued, would
have had power and authority to indemnify its directors, officers, and employees
or agents, so that if Indemnitee is or was a director, officer, employee or
agent of such constituent corporation, or is or was serving at the request of
such constituent corporation as a director, officer, employee or agent of
another corporation, partnership, joint venture, trust or other enterprise,
Indemnitee shall stand in the same position under the provisions of this
Agreement with respect to the resulting or surviving corporation as Indemnitee
would have with respect to such constituent corporation if its separate
existence had continued.

                  (b) For purposes of this Agreement, references to "other
enterprises" shall include employee benefit plans; references to "fines" shall
include any excise taxes assessed on Indemnitee with respect to an employee
benefit plan; and references to "serving at the request of the Corporation"
shall include any service as a director, officer, employee or agent of the
Corporation imposing duties on, or involving services by, such director,
officer, employee or agent with respect to an employee benefit plan, its
participants, or beneficiaries; and if Indemnitee acted in good faith and in a
manner Indemnitee reasonably believed to be in the interest of the participants
and beneficiaries of an employee benefit plan, Indemnitee shall be deemed to
have acted in a manner "not opposed to the best interests of the Corporation" as
referred to in this Agreement.

         11. ATTORNEYS' FEES. In the event that any action is instituted by
Indemnitee under this Agreement to enforce or interpret any of the terms hereof,
Indemnitee shall be entitled to be paid all court costs and expenses, including
reasonable attorneys' fees, incurred by Indemnitee with respect to such action,
unless as a part of such action, the court of competent jurisdiction determines
that each of the material assertions made by Indemnitee as a basis for such
action were not made in good faith or were frivolous. In the event of an action
instituted by or in the name of the Corporation under this Agreement or to
enforce or interpret any of the terms of this Agreement, Indemnitee shall be
entitled to be paid all court costs and expenses, including

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attorneys' fees, incurred by Indemnitee in defense of such action (including
with respect to Indemnitee's counterclaims and cross-claims made in such
action), unless as a part of such action the court determines that each of
Indemnitee's material defenses to such action were made in bad faith or were
frivolous.

         12. MISCELLANEOUS.

                  (a) GOVERNING LAW. This Agreement and all acts and
transactions pursuant hereto and the rights and obligations of the parties
hereto shall be governed, construed and interpreted in accordance with the laws
of the State of Delaware, without giving effect to principles of conflicts of
law.

                  (b) ENTIRE AGREEMENT; ENFORCEMENT OF RIGHTS. This Agreement
sets forth the entire agreement and understanding of the parties relating to the
subject matter herein and merges all prior discussions between them. No
modification of or amendment to this Agreement, nor any waiver of any rights
under this Agreement, shall be effective unless signed in writing by the parties
to this Agreement. The failure by either party to enforce any rights under this
Agreement shall not be construed as a waiver of any rights of such party.

                  (c) CONSTRUCTION. This Agreement is the result of negotiations
between and has been reviewed by each of the parties hereto and their respective
counsel, if any; accordingly, this Agreement shall be deemed to be the product
of all of the parties hereto, and no ambiguity shall be construed in favor of or
against any one of the parties hereto.

                  (d) NOTICES. Any notice, demand or request required or
permitted to be given under this Agreement shall be in writing and shall be
deemed sufficient when delivered personally or sent by telegram or fax or
forty-eight (48) hours after being deposited in the U.S. mail, as certified or
registered mail, with postage prepaid, and addressed to the party to be notified
at such party's address as set forth below or as subsequently modified by
written notice.

                  (e) COUNTERPARTS. This Agreement may be executed in two or
more counterparts, each of which shall be deemed an original and all of which
together shall constitute one instrument.

                  (f) SUCCESSORS AND ASSIGNS. This Agreement shall be binding
upon the Corporation and its successors and assigns, and inure to the benefit of
Indemnitee and Indemnitee's heirs, legal representatives and assigns.

                  (g) SUBROGATION. In the event of payment under this Agreement,
the Corporation shall be subrogated to the extent of such payment to all of the
rights of recovery of Indemnitee, who shall execute all documents required and
shall do all acts that may be necessary to secure such rights and to enable the
Corporation to effectively bring suit to enforce such rights.

                  (h) CONCLUSIVE PRESUMPTION REGARDING STANDARDS OF CONDUCT. The
Indemnitee shall be conclusively presumed to have met the relevant standards of
conduct, if any, as defined by Delaware General Corporation Law, for
indemnification pursuant to this Agreement, unless a determination is made that
the Indemnitee has not met such standards in a

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written opinion by independent counsel to the Corporation, selection of whom has
been approved by the Indemnitee in writing, or by a court of competent
jurisdiction.

                            [Signature Page Follows]

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         The parties hereto have executed this Agreement as of the day and year
set forth on the first page of this Agreement.

                                               Cygnus, Inc.

                                               By:
                                                     ---------------------------

                                               Title:
                                                     ---------------------------

                                               Address:   400 Penobscot Drive
                                                          Redwood City, CA 94063

AGREED TO AND ACCEPTED:

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

Address:
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                                       9<PAGE>

                              DONNELLY CORPORATION
                              AMENDED AND RESTATED
                     NONEMPLOYEE DIRECTOR STOCK OPTION PLAN

1.   NAME AND PURPOSE.

     This plan shall be called the Nonemployee Director Stock Option Plan (the
     "Plan"). The Plan is intended to encourage stock ownership by nonemployee
     directors of Donnelly Corporation (the "Company"), to provide them with an
     additional incentive to manage the Company effectively and to contribute to
     its success, and to provide a form of compensation that will attract and
     retain highly qualified individuals to serve as members of the Board of
     Directors of the Company.

2.   EFFECTIVE DATE AND TERM OF THE PLAN.

     The Plan shall become effective October 29, 1993, subject to its approval
     by the shareholders of the Company. No options shall be granted prior to
     approval of the Plan by the shareholders of the Company. Options may not be
     granted under the Plan after October 29, 2003; provided, however, that all
     options outstanding as of that date shall remain or become exercisable
     pursuant to their respective terms and the terms of the Plan.

3.   ADMINISTRATION.

     The Board of Directors of the Company shall be responsible for the
     implementation of the Plan, including the delegation of the administration
     of the Plan to management of the Company. The Board of Directors shall at
     no time exercise any discretion with respect to the administration of the
     Plan.

4.   PARTICIPATION.

     Subject to the limitations set forth in this Section 4, each director of
     the Company, who is neither a contractual nor common law employee of the
     Company or any of its subsidiaries, shall, as of the dates set forth in
     Subsection 6(b), be granted options to purchase shares of the Company's
     Class A Common Stock in accordance with the terms and conditions of the
     Plan. An optionee may hold more than one option, but only on the terms and
     subject to the restrictions hereafter set forth.

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5.   STOCK AVAILABLE FOR OPTIONS.

     Subject to adjustments as provided in Subsection 6(i), the aggregate number
     of shares reserved for issuance under the terms of the Plan shall be
     125,000 shares of the Company's Class A Common Stock, par value $.10 per
     share, either authorized but unissued shares or shares repurchased by the
     Company (the "Shares"). If any outstanding option under the Plan expires or
     is terminated for any reason before October 29, 2003, the Shares allocable
     to the unexercised portion of such option may again be subject to options
     under the Plan; provided that Shares tendered to the Company under
     Subsection 6(e) or Section 10, as payment for Shares or withholding taxes,
     shall not be subject to subsequent option grants under the Plan.

6.   TERMS AND CONDITIONS OF OPTIONS.

     Options granted under this Plan shall be evidenced by agreements in such
     form as the Company shall from time to time approve, which agreements shall
     comply with and be subject to the following conditions:

          (a)  OPTIONEE'S AGREEMENT. Each optionee shall agree to continue to
               serve as a director of the Company if nominated and elected to
               serve as a director by the Company's shareholders. Such agreement
               shall not impose upon the Company, its Board of Directors, or its
               shareholders any obligation to retain the optionee as a director
               for any period.

          (b)  DATE OF OPTIONS. The options shall be granted at the same time
               that options are granted to other employees of the company. These
               options shall be granted to each person entitled to participate
               in the Plan under Section 4.

          (c)  NUMBER OF SHARES AND TERM OF OPTIONS. Subject to adjustments as
               provided in Subsection 6(i), each option (except for the option
               granted in February 2000) shall be for two thousand (2,000)
               shares of the Class A Common Stock of the Company. The option to
               be granted in February 2000, which relates to the six (6) month
               period ended December 31, 1999, shall be for one thousand (1,000)
               shares of the Class A Common Stock of the Company. The term of
               each option shall be for a period of ten (10) years from the date
               of grant of the option.

          (d)  OPTION PRICE. Each option shall state the per share purchase
               price at which a share may be purchased, which shall be one
               hundred percent (100%) of the fair market value of a share of
               Class A Common Stock on the date of the grant of the option. If
               the Shares are listed upon an established stock exchange or
               exchanges, fair market value shall be deemed to be the closing
               price of the shares on such exchange or exchanges on the day the
               option is granted or if no sale of the shares shall have been
               made on any stock exchange on that day, on the next preceding day
               on which there was a sale of the shares. If the Shares are not
               listed upon an established stock

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               exchange but are traded in the over-the-counter market, the fair
               market value per share shall be the closing sale price on the
               national market list as quoted in the National Association of
               Securities Dealers Automated Quotation System ("NASDAQ") on the
               day the option is granted or if no sale of shares is reflected in
               NASDAQ on that day, on the next preceding day on which there was
               a sale of shares reflected in NASDAQ.

          (e)  MEDIUM OF PAYMENT. The aggregate option price shall be payable to
               the Company either: (i) in United States dollars in cash or by
               check, bank draft, or money order payable to the order of the
               Company; (ii) through the delivery of unencumbered shares of
               Class A Common Stock with a fair market value on the date of the
               exercise equal to the aggregate option price provided such shares
               are utilized as payment to acquire at least 100 Shares; or (iii)
               by a combination of (i) and (ii) above. Fair market value will be
               determined in the manner specified in Subsection 6(d) except as
               to the date of determination.

          (f)  EXERCISE OF OPTIONS. No option shall be exercisable, either in
               whole or in part, prior to the first anniversary of the date of
               grant of the option, except that options under this Plan shall
               become immediately exercisable upon a "Change in Control" as
               defined in Subsection 6(i) of the Plan. Thereafter, an option
               shall be exercisable at any time or from time to time during the
               term of the option, upon written notice to the Company, as to any
               or all Shares covered by the option, until its termination or
               expiration in accordance with its terms. Notwithstanding the
               foregoing, an option shall not at any time be exercisable with
               respect to less than 100 shares unless the remaining shares
               covered by an option are less than 100 shares. The purchase price
               of the Shares purchased pursuant to an option shall be paid in
               full upon delivery to the optionee of certificates for such
               shares. Except as provided in Subsection 6(h), an option may be
               exercised by an optionee only while the optionee is a nonemployee
               director of the Company.

          (g)  OPTIONS NOT TRANSFERABLE. Options may not be sold, pledged,
               assigned, or transferred in any manner otherwise than by will or
               the laws of descent or distribution to the extent provided in
               Subsection 6(h). During the lifetime of an optionee, the options
               shall be exercisable only by the optionee. Following the death of
               an optionee, the options shall be exercisable only to the extent
               provided in Subsection 6(h).

          (h)  TERMINATION OF SERVICE AS A DIRECTOR.

               (i)  TERMINATION OF SERVICE FOR REASONS OTHER THAN DISABILITY,
                    DEATH OR REMOVAL. If an optionee ceases to serve the Company
                    as a nonemployee director for any reason other than those
                    set forth in Subsection 6(h)(ii)(iii) or (iv) (relating to
                    disability, death and removal from office as described more
                    fully in such subsections), each option held by the optionee
                    shall, subject to prior expiration according to its terms
                    and other limitations imposed by the Plan, terminate as
                    follows:

                                       3
<PAGE>

                    (1)  If the non-employee director ceased to serve as a
                         non-employee director because of such director's
                         retirement from the Board, then all options held by
                         such optionee shall remain exercisable for the
                         respective terms of such options. If the optionee dies
                         after retirement from the Board, the optionee's options
                         shall be exercisable in accordance with Subsection
                         6(h)(ii) below. Whether or not a director has retired
                         from the Board shall be determined by the board at the
                         time of the optionee's cessation of service as a
                         director.

                    (2)  If the non-employee director ceased to serve as a
                         non-employee director prior to such director's
                         retirement from the Board, then all options held by
                         such optionee shall terminate two (2) years following
                         the date of the optionee's cessation of service. If the
                         optionee dies during such two (2) year period following
                         the date of the optionee's cessation of service, the
                         optionee's options shall be exercisable, during such
                         two year period, in accordance with Subsection
                         6(h)(iii) below.

               (ii) TERMINATION OF SERVICE FOR DISABILITY. If any optionee
                    ceases to be a nonemployee director on account of physical
                    disability, each option held by such optionee shall remain
                    exercisable during the term of such option. If the optionee
                    dies after such disability, the optionee's options shall be
                    exercisable in accordance with Subsection 6(h)(iii) below.

              (iii) TERMINATION OF SERVICE FOR DEATH. If an optionee ceases to
                    be a nonemployee director by reason of death, each option
                    held by such optionee shall, to the extent rights to
                    purchase shares under the option have been accrued at the
                    time of death and shall not have been fully exercised, be
                    exercisable, in whole or in part, during the term of such
                    option, by the personal representative of the optionee's
                    estate or by any person or persons who have acquired the
                    option directly from the optionee by bequest or inheritance.

               (iv) TERMINATION OF SERVICE FOR REMOVAL. If, at any time, an
                    optionee ceases to serve the Company as a nonemployee
                    director during his or her elected term (except for reasons
                    of disability) because he or she has either been removed
                    from the Board or has been asked to resign from the Board,
                    all exercisable options held by such optionee shall
                    terminate as of the 90th day following the date of such
                    cessation of service. Options which are not exercisable as
                    of the date the optionee's cessation of service shall
                    terminate 90 days after the date they become exercisable.

     (i)  ADJUSTMENT IN SHARES COVERED BY OPTION. The number of Shares covered
          by each outstanding option, and the purchase price per Share thereof,
          and the number of Shares subject to each option to be granted pursuant
          to Subsection 6(c), shall be

                                       4
<PAGE>

          proportionately adjusted for any increase or decrease in the number of
          issued and outstanding shares resulting from a split in or combination
          of Shares or the payment of a stock dividend on the Shares or any
          other increase or decrease in the number of such Shares effected
          without receipt of consideration by the Company.

          If the Company shall be the surviving corporation in any merger or
          consolidation or if the Company is merged into a wholly-owned
          subsidiary solely for purposes of changing the Company's state of
          incorporation, each outstanding option shall pertain to and apply to
          the securities to which a holder of the number of Shares subject to
          the option would have been entitled. Notwithstanding the remainder of
          this Section 6(i), upon the occurrence of a Change in Control, all
          options then outstanding under the Plan will be fully vested and
          exercisable and all restrictions will immediately cease, unless, in
          the case of a transaction described in clause (iii) or (iv) in the
          following definition of Change in Control, provisions are made in
          connection with such transaction for the continuance of the Plan and
          the assumption of or the substitution for such options with new
          options covering the stock of a successor corporation, or a parent or
          subsidiary thereof, with appropriate adjustments as to the number and
          kind of shares and prices. As used in this Plan, "Change in Control"
          shall mean a change in control of the Company of a nature that would
          be required to be reported in response to Item 6(e) of Schedule 14A of
          Regulation 14A promulgated under the Securities Exchange Act of 1934
          (the "Act"), provided that, for purposes of this Plan, a Change in
          Control shall be deemed to have occurred if: (i) any Person (other
          than the Company) is or becomes the "beneficial owner" (as defined in
          Rule 13d-3 under the Act), directly or indirectly, of securities of
          the Company which represent 20% or more of the combined voting power
          of the Company's then outstanding securities; (ii) during any period
          of two (2) consecutive years, individuals who at the beginning of such
          period constitute the Board of Directors of the Company (the "Board")
          cease for any reason to constitute at least a majority thereof, unless
          the election, or the nomination for election, by the Company's
          shareholders, of each new director is approved by a vote of at least
          two-thirds (2/3) of the directors then still in office who were
          directors at the beginning of the period but excluding any individual
          whose initial assumption of office occurs as a result of either an
          actual or threatened election contest (as such term is used in Rule
          14a-11 of Regulation 14A promulgated under the Act) or other actual or
          threatened solicitation of proxies or consents by or on behalf of a
          person other than the Board; (iii) there is consummated any
          consolidation or merger of the Company in which the Company is not the
          continuing or surviving corporation or pursuant to which shares of
          Class A Common Stock are converted into cash, securities or other
          property, other than a merger of the Company in which the holders of
          Class A Common Stock immediately prior to the merger have the same
          proportionate ownership of common stock of the surviving corporation
          immediately after the merger; (iv) there is consummated any
          consolidation or merger of the Company in which the Company is the
          continuing or surviving corporation in which the holders of Class A
          Common Stock immediately prior to the merger do not own at least fifty
          percent (50%), or such greater percentage as shall be set in any
          agreement with any optionee, or more of the stock of the surviving
          corporation

                                       5
<PAGE>

          immediately after the merger; (v) there is consummated any sale,
          lease, exchange or other transfer (in one transaction or a series of
          related transactions) of all, or substantially, all, of the assets of
          the Company; or (vi) the shareholders of the Company approve any plan
          or proposal of the liquidation or dissolution of the Company.

          In the event of a change in the Shares as presently constituted, which
          is limited to a change of all of its authorized shares with par value
          into the same number of shares with a different par value or without
          par value, the shares resulting from any such change shall be deemed
          to be the Shares within the meaning of the Plan.

          Except as provided in this Subsection 6(i), an optionee shall have no
          rights by reason of: (i) any split or combination of shares of stock
          of any class; (ii) the payment of any stock dividend or any other
          increase or decrease in the number of shares of stock of any class; or
          (iii) by reason of any dissolution, liquidation, merger, or
          consolidation or spin-off of assets or stock of another corporation.
          Except as provided in Subsection 6(i), any issue by the Company of
          shares of stock of any class, or securities convertible into shares of
          stock of any class, shall not affect, and no adjustment by reason
          thereof shall be made with respect to, the number or price of Shares
          subject to an option. The grant of an option pursuant to the Plan
          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, or to merge or to consolidate or to
          dissolve, liquidate or sell, or transfer all or any part of its
          business or assets.

     (j)  RIGHTS OF A SHAREHOLDER. An optionee shall have no rights as a
          shareholder with respect to any Shares covered by his or her option
          until the date on which the optionee becomes the holder of record of
          such shares or is entitled to become the-holder of record. No
          adjustment shall be made for dividends, distributions, or other rights
          for which the record date is prior to the date on which he or she
          shall have become the holder of record (or become entitled to be the
          holder of record) thereof, except as provided in Subsection 6(i)
          above.

     (k)  POSTPONEMENT OF DELIVERY OF SHARES AND REPRESENTATIONS. The Company,
          in its discretion, may postpone the issuance and/or delivery of Shares
          upon any exercise of an option and until completion of such stock
          exchange listing, or registration, or other qualification of such
          Shares under any state and/or federal law, rule or regulation as the
          Company may consider appropriate, and may require any person
          exercising an option to make such representations, including a
          representation that it is the optionee's intention to acquire Shares
          for investment and not with a view to distribution thereof, and
          furnish such information as it may consider appropriate in connection
          with the issuance or delivery of the Shares in compliance with
          applicable laws, rules, and regulations. In such event no Shares shall
          be issued to such holder unless and until the Company is satisfied
          with the accuracy of any such representations.

                                       6
<PAGE>

7.   ADJUSTMENTS IN SHARES AVAILABLE FOR OPTIONS.

     The adjustments in number and kind of Shares and the substitution of Shares
     affecting outstanding options in accordance with Subsection 6(i) hereof,
     shall also apply to the number and kind of Shares reserved for issuance
     pursuant to the Plan, but not yet covered by options.

8.   AMENDMENT OF THE PLAN.

     The Board of Directors, insofar as permitted by law, shall have the right
     from time to time, with respect to any Shares at the time not subject to
     options (but not with respect to Shares which are then subject to options),
     to suspend or discontinue the Plan or revise or amend it in any respect
     whatsoever, except that the provisions of the Plan set forth in Section 4
     and Subsections 6(b), (c), and (d) may not be amended more than once every
     six months (other than to comport with changes in the Internal Revenue Code
     or the rules and regulations promulgated thereunder), and except that,
     without approval of the shareholders of the Company, no such revision or
     amendment shall:

     (a)  increase the maximum number of Shares which may be subject to the Plan
          [except as contemplated in Subsection 6(i)],

     (b)  increase the maximum number of Shares which may be optioned to any one
          nonemployee director,

     (c)  materially increase the benefits accruing to option holders under the
          Plan,

     (d)  decrease the price at which options may be granted, or

     (e)  permit the granting of options under the Plan after October 29, 2003.

9.   RIGHT OF SHAREHOLDERS TO TERMINATE DIRECTOR'S SERVICE.

     Nothing in this Plan or in the grant of any option hereunder shall in any
     way limit or affect the right of the shareholders of the Company to remove
     any director or otherwise terminate his or her service as a director,
     pursuant to law, the Articles of Incorporation, or Bylaws of the Company.

10.  TAX WITHHOLDING.

     The exercise of any option under the Plan is subject to the satisfaction of
     withholding tax or other withholding liabilities, if any, under federal,
     state, and local laws in connection with

                                       7
<PAGE>

     such exercise. The exercise of an option shall not be effective unless
     applicable withholding shall have been effected. Each optionee may satisfy
     any such withholding tax obligation by any of the following means or by a
     combination of such means:

     (a)  Tendering a cash payment;

     (b)  Authorizing the Company to withhold from the Shares otherwise issuable
          to the optionee as a result of the exercise of the stock option, a
          number of Shares having a fair market value (as determined under
          Subsection 6(d) of this Plan) as of the date that the amount of tax to
          be withheld is to be determined ("Tax Date"), which shall be the date
          of exercise of the option, less than or equal to the amount of the
          withholding obligation; or

     (c)  Delivering to the Company unencumbered shares owned by the optionee
          prior to the date of exercise, having a fair market value (as
          determined under Subsection 6(d) of the Plan) as of the Tax Date, less
          than or equal to the amount of the withholding tax obligation.

     An optionee's election to pay the withholding tax obligation by the latter
     means of payment must either: (i) be made at least six months prior to the
     Tax Date and must be irrevocable for a period at least six months prior to
     the Tax Date; or (ii) the exercise of the option must be effective during
     the period beginning on the third business day following the date of
     release of the Company's quarterly or annual summary statement of sales and
     earnings and ending on the twelfth business day following such date.

11.  APPLICATION OF FUNDS.

     The proceeds received by the Company from the sale of Shares pursuant to
     options will be used for general corporate purposes.

12.  NO OBLIGATION TO EXERCISE OPTION.

     The granting of an option shall impose no obligation upon the optionee to
     exercise such option.

13.  CONSTRUCTION.

     This Plan shall be construed under the laws of the State of Michigan.

                                       8

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