Document:

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                                                                   EXHIBIT 10(b)

                            INDEMNIFICATION AGREEMENT

         THIS INDEMNIFICATION AGREEMENT made this ___ day of ______ 200_,
between Myers Industries, Inc., an Ohio corporation (the "Company") and
______________, a director, officer, employee, agent or representative (as
hereinafter defined) of the Company (the "Indemnitee").

                                R E C I T A L S:

         A. The Company and the Indemnitee are each aware of the exposure to
litigation of officers, directors, employees, agents and representatives of the
Company as such persons exercise their duties to the Company;

         B. The Company and the Indemnitee are also aware of conditions in the
insurance industry that have affected and may continue to affect the Company's
ability to obtain appropriate liability insurance on an economically acceptable
basis;

         C. The Company desires to continue to benefit from the services of
highly qualified, experienced and otherwise competent persons such as the
Indemnitee;

         D. The Indemnitee desires to serve or to continue to serve the Company
as a director, officer, employee, or agent or as a director, officer, employee,
agent, or trustee of another corporation, joint venture, trust or other
enterprise in which the Company has a direct or indirect ownership interest, for
so long as the Company continues to provide, on an acceptable basis, adequate
and reliable indemnification against certain liabilities and expenses which may
be incurred by the Indemnitee.

         NOW, THEREFORE, in consideration of the foregoing premises and the
mutual covenants herein contained, the parties hereto agree as follows:

         1. INDEMNIFICATION. The Company shall indemnify the Indemnitee with
respect to his activities as a director, officer, employee or agent of the
Company and/or as a person who is serving or has served at the request of the
Company ("representative") as a director, officer, employee, agent or trustee of
another corporation, joint venture trust or other enterprise, domestic or
foreign, in which the Company has a direct or indirect ownership interest (an
"affiliated entity") against expenses (including, without limitation, attorneys'
fees, judgments, fines and amounts paid in settlement) actually and reasonably
incurred by him ("Expenses") in connection with any claim against Indemnitee
which is the subject of any threatened, pending or completed action, suit or
other type of proceeding, whether civil, criminal, administrative, investigative
or otherwise and whether formal or informal (a "Proceeding"), to which
Indemnitee was, is or is threatened to be made a party by reason of facts which
include Indemnitee's being or having been such a director, officer, employee,

                                      -1-
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agent or representative, to the extent of the highest and most advantageous to
the Indemnitee, as determined by the Indemnitee, of one or any combination of
the following:

                  (a) The benefits provided by the Company's Amended Code of
Regulations ("Regulations") in effect on the date hereof, a copy of the relevant
portions of which are attached hereto as Exhibit A;

                  (b) The benefits provided by the Amended and Restated Articles
of Incorporation, Regulations or their equivalent of the Company in effect at
the time Expenses are incurred by Indemnitee;

                  (c) The benefits allowable under Ohio law in effect at the
date hereof;

                  (d) The benefits allowable under the law of the jurisdiction
under which the Company exists at the time Expenses are incurred by the
Indemnitee;

                  (e) The benefits available under any liability insurance
obtained by the Company; and

                  (f) Such other benefits as are or may be otherwise available
to Indemnitee.

         Combination of two or more of the benefits provided by (a) through (f)
shall be available to the extent that the Applicable Document, as hereafter
defined, does not require that the benefits provided therein be exclusive of
other benefits. The document or law providing for the benefits listed in items
(a) through (f) above is called the "Applicable Document" in this Agreement.
Company hereby undertakes to use its best efforts to assist Indemnitee, in all
proper and legal ways, to obtain the benefits selected by Indemnitee under item
(a) through (f) above.

       For purposes of this Agreement, references to "other enterprises" shall
include employee benefit plans for employees of the Company or of any affiliated
entity without regard to ownership of such plans; references to "fines" shall
include any excise taxes assessed on the Indemnitee with respect to any employee
benefit plan; references to "serving at the request of the Company" shall
include any service as a director, officer, employee or agent of the Company
which imposes duties on, or involves services by, the Indemnitee with respect to
an employee benefit plan, its participants or beneficiaries; references to the
masculine shall include the feminine; references to the singular shall include
the plural and vice versa; and if the Indemnitee acted in good faith and in a
manner he reasonably believed to be in the interest of the participants and
beneficiaries of an employee benefit plan, he shall be deemed to have acted in a
manner consistent with the standards required for indemnification by the Company
under the Applicable Documents.

         2. INSURANCE. The Company may, but need not, maintain liability
insurance for so long as Indemnitee's services are covered hereunder, provided
and to the extent that such insurance is available on a basis acceptable to the
Company. However, the Company agrees that the provisions
hereof shall remain in effect regardless of whether liability or other insurance
coverage is at any time obtained or retained by the Company; except that any
payments in fact made to Indemnitee under

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an insurance policy obtained or retained by the Company shall reduce the
obligation of the Company to make payments hereunder by the amount of the
payments made under any such insurance policy.

         3. PAYMENT OF EXPENSES. At Indemnitee's request, after receipt of
written notice pursuant to Section 6 hereof and an undertaking in the form of
Exhibit B attached hereto by or on behalf of Indemnitee to repay such amounts so
paid on Indemnitee's behalf if it shall ultimately be determined under the
Applicable Document that Indemnitee is not entitled to be indemnified by the
Company for such Expenses, the Company shall pay the Expenses as and when
incurred by Indemnitee. That portion of Expenses which represents attorneys'
fees and other costs incurred in defending any proceeding shall be paid by the
Company within thirty (30) days of its receipt of such request, together with
reasonable documentation (consistent, in the case of attorneys' fees, with
Company practice in payment of legal fees) evidencing the amount and nature of
such Expenses, subject to its also having received such a notice and
undertaking.

         4. ADDITIONAL RIGHTS. The indemnification provided in this Agreement
shall not be exclusive of any other indemnification or right to which Indemnitee
may be entitled and shall continue after Indemnitee has ceased to occupy a
position as an officer, director, employee, agent or representative as described
in Section 1 above with respect to Proceedings relating to or arising out of
Indemnitee's acts or omissions during his service in such position.

         5. NOTICE TO COMPANY. Indemnitee shall provide to the Company prompt
written notice of any Proceeding brought, threatened, asserted or commenced
against Indemnitee with respect to which Indemnitee may assert a right to
indemnification hereunder; provided that failure to provide such notice shall
not, in any way, limit Indemnitee's rights under this Agreement.

         6. COOPERATION IN DEFENSE AND SETTLEMENT. Indemnitee shall not make any
admission or effect any settlement without the Company's written consent unless
Indemnitee shall have determined to undertake his own defense in such matter and
has waived the benefits of this Agreement. The Company shall not settle any
Proceeding to which Indemnitee is a party in any manner which would impose any
Expense on Indemnitee without his written consent. Neither Indemnitee nor the
Company will unreasonably withhold consent to any proposed settlement.
Indemnitee and the Company shall cooperate to the extent reasonably possible
with each other and with the Company's insurers, in attempts to defend and/or
settle such Proceeding.

         7. ASSUMPTION OF DEFENSE. Except as otherwise provided below, to the
extent that it may wish, the Company jointly with any other indemnifying party
similarly notified will be entitled to assume Indemnitee's defense in any
Proceeding, with counsel mutually satisfactory to Indemnitee and the Company.
After notice from the Company to Indemnitee of the Company's election so to
assume such defense, the Company will not be liable to Indemnitee under this
Agreement for Expenses subsequently incurred by Indemnitee in connection with
the defense thereof other than reasonable costs of investigation or as otherwise
provided below. Indemnitee shall have the right to employ counsel in such
Proceeding, but the fees and expenses of such counsel incurred after notice from
the Company of its assumption of the defense thereof shall be at Indemnitee's
expense unless:

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                  (a) The employment of counsel by Indemnitee has been
authorized by the Company;

                  (b) Counsel employed by the Company initially is unacceptable
or later becomes unacceptable to Indemnitee and such unacceptability is
reasonable under then existing circumstances;

                  (c) Indemnitee shall have reasonably concluded that there may
be a conflict of interest between Indemnitee and the Company in the conduct of
the defense of such Proceeding; or

                  (d) The Company shall not have employed counsel promptly to
assume the defense of such Proceeding, in each of which cases the fees and
expenses of counsel shall be at the expense of the Company and subject to
payment pursuant to this Agreement. The Company shall not be entitled to assume
the defense of Indemnitee in any Proceeding brought by or on behalf of the
Company or as to which Indemnitee shall have made either of the conclusions
provided for in clause (b) or (c) above.

         8. ENFORCEMENT. In the event that any dispute or controversy shall
arise under this Agreement between Indemnitee and the Company with respect to
whether the Indemnitee is entitled to indemnification in connection with any
Proceeding or with respect to the amount of Expenses incurred, then with respect
to each such dispute or controversy Indemnitee may seek to enforce the Agreement
through legal action or, at Indemnitee's sole option and request, through
arbitration. If arbitration is requested, such dispute or controversy shall be
submitted by the parties to binding arbitration in the City of Akron, State of
Ohio, before a single arbitrator agreeable to both parties; provided that
indemnification in respect of any claim, issue or matter in a Proceeding brought
against Indemnitee by or in the right of the Company and as to which Indemnitee
shall have been adjudged to be liable for negligence or misconduct in the
performance of his duty to the Company shall be submitted to arbitration only to
the extent permitted under the Company's Code of Regulations and applicable law
then in effect. If the parties cannot agree on a designated arbitrator within 15
days after arbitration is requested in writing by either of them, the
arbitration shall proceed in the City of Akron, State of Ohio, before an
arbitrator appointed by the American Arbitration Association. In either case,
the Arbitration proceeding shall commence promptly under the rules then in
effect of that Association and the arbitrator agreed to by the parties or
appointed by that Association shall be an attorney other than an attorney who
has, or is associated with a firm having associated with it an attorney which
has, been retained by or performed services for the Company or Indemnitee at any
time during the five years preceding the commencement of arbitration. The award
shall be rendered in such form that judgment may be entered thereon in any court
having jurisdiction thereof. The prevailing party shall be entitled to prompt
reimbursement of any costs and expenses (including, without limitation,
reasonable attorneys' fees) incurred in connection with such legal action or
arbitration; provided that Indemnitee shall not be obligated to reimburse the
Company unless the arbitrator or court which resolves the dispute determines
that Indemnitee acted in bad faith in bringing such action or arbitration.

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         9. EXCLUSIONS. Notwithstanding the scope of indemnification which may
be available to Indemnities from time to time under any Applicable Document, no
indemnification, reimbursement or payment shall be required of the Company
hereunder with respect to:

                  (a) Any claim or any part thereof as to which Indemnitee shall
have been adjudged by a court of competent jurisdiction from which no appeal is
or can be taken to have acted in willful misfeasance, or willful disregard of
his duties, except to the extent that such court shall determine upon
application that, despite the adjudication of liability, but in view of all the
circumstances of the case, Indemnitee is fairly and reasonably entitled to
indemnity for such expenses as the court shall deem Proper;

                  (b) Any claim or any part thereof arising under Section 16(b)
of the Exchange Act pursuant to which Indemnitee shall be obligated to pay any
penalty, fine, settlement or judgment;

                  (c) Any obligation of Indemnitee based upon or attributable to
the Indemnitee gaining in fact any personal gain, profit or advantage to which
he was not entitled; or

                  (d) Any Proceeding initiated by Indemnitee without the consent
or authorization of the Board of Directors of the Company, provided that this
exclusion shall not apply with respect to any claims brought to Indemnitee to
enforce his rights under this Agreement or in any Proceeding initiated by
another person or entity whether or not such claims were brought by Indemnitee
against a person or entity who was otherwise a party to such Proceeding.

         Nothing in this Section 9 shall eliminate or diminish Company's
obligations to advance that portion of Indemnitee's Expenses which represent
attorneys' fees and other costs incurred in defending any proceeding pursuant to
Section 3 of this Agreement.

         10. EXTRAORDINARY TRANSACTIONS. The Company covenants and agrees that
in the event of any merger, consolidation or reorganization in which the Company
is not the surviving entity, any sale of all or substantially all of the assets
of the Company or any liquidation of the Company (each such event is hereinafter
referred to as an "extraordinary transaction"), the Company shall:

                  (a) Have the obligations of the Company under this Agreement
expressly assumed by the survivor, purchaser or successor, as the case may be,
in such extraordinary transaction; or

                  (b) Otherwise adequately provide for the satisfaction of the
Company's obligations under this Agreement, in a manner acceptable to
Indemnitee.

         11. NO PERSONAL LIABILITY. Indemnitee agrees that neither the Directors
nor any officer, employee, representative or agent of the Company shall be
personally liable for the satisfaction of the Company's obligations under this
Agreement, and Indemnitee shall look solely to the assets of the Company for
satisfaction of any claims hereunder.

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         12. SEVERABILITY. If any provision, phrase or other portion of this
Agreement should be determined by any court of competent jurisdiction to be
invalid, illegal or unenforceable, in whole or in part, and such determination
should become final, such provision, phrase or other portion shall be deemed to
be severed or limited, but only to the extent required to render the remaining
provisions and portions of the Agreement enforceable, and the Agreement as thus
amended shall be enforced to give effect to the intention of the parties insofar
as that is possible.

         13. SUBROGATION. In the event of any payment under this Agreement, the
Company shall be subrogated to the extent thereof to all rights to
indemnification or reimbursement against any insurer or other entity or person
vested in the Indemnitee, who shall execute all instruments and take all other
actions as shall be reasonably necessary for the Company to enforce such rights.

         14. GOVERNING LAW. The parties hereto agree that this Agreement shall
be construed and enforced in accordance with and governed by the laws of the
State of Ohio.

         15. NOTICES. All notices, requests, demands and other communications
hereunder shall be in writing and shall be considered to have been duly given if
delivered by hand and receipted for by the party to whom the notice, request,
demand or other communication shall have been directed, or mailed by Certified
mail, return receipt requested, with postage prepaid;

                  (a)      If to the Company, to:

                             Myers Industries, Inc.
                             1293 South Main Street
                                Akron, Ohio 44301
                              Attention: President

                  (b)      If to Indemnitee, to:

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or to such other or further address as shall be designated from time to time by
the Indemnitee or the Company to the other.

         16. TERMINATION. This Agreement may be terminated by either party upon
not less than sixty (60) days' prior written notice delivered to the other
party, but such termination shall not in any way diminish the obligations of
Company hereunder with respect to Indemnitee's activities prior to the effective
date of termination.

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         17. AMENDMENTS. This Agreement and the rights and duties of Indemnitee
and the Company hereunder may not be amended, modified or terminated except by
written instrument signed and delivered by the parties hereto.

         This Agreement is and shall be binding upon and shall inure to the
benefits of the parties hereto and their respective heirs, executors,
administrators, successors and assigns.

         IN WITNESS WHEREOF, the undersigned have executed this Agreement in
triplicate as of the date first above written.

                                               Myers Industries, Inc.

                                               By:
                                                  ------------------------------
                                               Its:
                                                  ------------------------------

                                               Indemnitee

                                               ---------------------------------
                                                         --------------<PAGE>   1
                                                                   EXHIBIT 10(c)

                   AMENDED AND RESTATED MYERS INDUSTRIES, INC.
                             1992 STOCK OPTION PLAN

1.       ESTABLISHMENT, PURPOSE, AND EFFECTIVE DATE OF PLAN.

         1.1 Establishment. Myers Industries, Inc., an Ohio corporation and its
subsidiaries ("Company") hereby ammend the "1992 Stock Option Plan") ("Plan")
for key employees of the Company, and for Directors of the Company who are not
employees of the Company. The Plan permits the grant of "Employee Stock Options"
to certain key employees and the grant of "Director Stock Options" to Eligible
Directors of the Company based upon a fixed formula.

         1.2 Purpose. The purpose of the Plan is to advance the interests of the
Company by encouraging and providing for the acquisition of an equity interest
in the Company by key employees and Directors of the Company and by enabling the
Company to attract and retain the services of such key employees and Directors
upon whose judgment, interest, and special effort the successful conduct of its
operations is largely dependent.

         1.3 Effective Date. The Amended and Restated Plan shall become
effective as of December 14, 1998, the date of its adoption by the Board of
Directors of the Company.

2.       DEFINITIONS.

         2.1 Definitions. Whenever used herein, the following terms shall have
their meanings set forth below:

         "Administrator" means the Vice President-Finance of the Company who
shall administer the Director Stock Option program.

         "Award" means any Option.

         "Board" means the Board of Directors of the Company.

         "Code" means the Internal Revenue Code of 1986, as amended.

         "Committee" means the Committee of the Company's Board of Directors
which shall consist of three or more Directors appointed to the Board to
administer the Employee Stock Option program. These Directors shall be
"non-employee directors" within the meaning of Rule 16b-3 of the Securities
Exchange Act of 1934 ("Exchange Act").

         "Common Stock" means the common stock of the Company, without par
value.

         "Company" means Myers Industries, Inc. and its subsidiaries.

<PAGE>   2

         "Disability" means disability as determined by the Committee, in the
case of the Employee Stock Option program, and the Administrator in the case of
the Director Stock Option program.

         "Director Stock Option" means an Option granted to an Eligible
Director. Each Director Stock Option shall be a nonqualified stock option the
grant of which is not intended to fall under the provisions of Section 422A of
the Code.

         "Eligible Director" means any statutory director of the Company who is
not an employee of the Company.

         "Employee Stock Option" means any Option granted to an eligible
employee as either a qualified stock option or a non-qualified stock option.

         "Fair Market Value" means the closing price of the Common Stock as
reported on the principal United States securities exchange registered under the
Exchange Act on which such Common Stock is listed, which is the American Stock
Exchange, Inc., or if such Common Stock is not in the future listed on any such
exchange, the highest closing bid quotation with respect to a share of such
Common Stock on the National Association of Securities Dealers, Inc. Automated
Quotations System or any substantially equivalent system then in use on a
particular date. In the event that there are no Common Stock transactions on
such date, the Fair Market Value shall be determined as of the immediately
preceding date on which there were Common Stock transactions.

         "Option" means the right to purchase Common Stock at a stated price for
a specified period of time. For purposes of the Plan an Employee Stock Option
may be either (i) an incentive stock option within the meaning of Section 422A
of the Code or (ii) a nonqualified stock option whose grant is intended not to
fall under the provisions of Section 422A. All Director Stock Options will be
nonqualified stock options whose grant is intended not to fall under the
provisions of Section 422A.

         "Option Agreement" means an agreement entered into between the Company
and an employee pursuant to the Employee Stock Option program in the form
prescribed by the Committee, or between the Company and an Eligible Director
pursuant to the Director Stock Option program in the form prescribed by the
Administrator.

         "Option Price" means the price at which each share of Common Stock
subject to an Option may be purchased, determined in accordance with Section
7.4.

         "Participant" means any individual being a key employee designated by
the Committee to participate in the Plan pursuant to Section 3.1 herein.

         "Retirement" means termination of employment upon the normal retirement
age se by the Board of Directors.

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         "Return on Common Equity" means the result obtained by dividing "Net
Income" by the "Common Shareholders Equity," as such terms are defined by the
Company's accountant.

         2.2 Gender and Number. Except when otherwise indicated by the context,
words in the masculine gender when used in the Plan shall include the feminine
gender, the singular shall include the plural, and the plural shall include the
singular.

3.       ELIGIBILITY AND PARTICIPATION.

         3.1 Employee Stock Option. Participants in the Plan shall be selected
by the Committee from among those employees of the Company who in the opinion of
the Committee are in a position to contribute materially to the Company's
continued growth, development, and long-term financial success. Persons serving
on the Committee shall not be eligible to be a Participant.

         3.2 Director Stock Options. Eligible Directors are entitled to
participate in the Plan solely with respect to the grant of Director Stock
Options. The selection of Eligible Directors is not subject to the discretion of
the Committee or Administrator. Persons serving on the Committee who are
Eligible Directors may receive grants of Director Stock Options.

4.       ADMINISTRATION.

         4.1 The Committee. The Committee shall be responsible for the
administration of the Plan as it relates solely to Employee Stock Options. The
Committee, by majority action thereof, is authorized to interpret the Plan, to
prescribe, amend, and rescind rules and regulations relating to the Plan, to
provide for conditions and assurances deemed necessary or advisable to protect
the interests of the Company, and to make all other determinations necessary or
advisable for the administration of the Plan, but only to the extent not
contrary to the explicit provisions of the Plan. Determinations,
interpretations, or other actions made or taken by the Committee pursuant to the
provisions of the Plan relating to Employee Stock Options shall be final and
binding and conclusive for all purposes and upon all persons whomsoever.

         4.2 The Administrator. The Administrator, being the Vice
President-Finance of the Company, shall be responsible for the administration of
the Plan as it relates solely to Director Stock Options. The Administrator is
authorized to interpret the Plan, to prescribe, amend, and rescind rules and
regulations relating to the Plan, to provide for conditions and assurances
deemed necessary or advisable to protect the interests of the Company, and to
make all other determinations necessary or advisable for the administration of
the Plan, but only to the extent not contrary to the explicit provisions of the
Plan. Determinations, interpretations, or other actions made or taken by the
Administrator pursuant to the provisions of the Plan relating to Director Stock
Options shall be final and binding and conclusive for all purposes and upon all
persons whomsoever.

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<PAGE>   4

5.       STOCK SUBJECT TO PLAN.

         5.1 Number. The total number of shares of Common Stock subject to
issuance under the Plan shall be Two Hundred Thousand (200,000) shares of
capital stock of the Company; One Hundred Seventy Thousand (170,000) issuable as
Employee Stock Options and Thirty Thousand (30,000) issuable as Director Stock
Options, in each case subject to the number of options already granted under the
Plan, prior to the date of this Amended and Restated Plan. The shares to be
delivered under the Plan may consist, in whole or in part, of authorized but
unissued Common Stock or issued Common Stock reacquired and held as treasury
stock not reserved for any other purpose.

         5.2 Unused Stock. In the event any shares of Common Stock that are
subject to an Option which, for any reason, expires or is terminated unexercised
or are reacquired by the Company, such shares again shall become available for
issuance under the Plan.

         5.3 Adjustment in Capitalization. In the event that subsequent to the
date of adoption of the Plan by the Board, the shares of Common Stock should as
a result of a stock split, stock dividend, combination or exchange of shares,
exchange for other securities, reclassification, reorganization, redesignation,
merger, consolidation, recapitalization or other such change, be increased or
decreased or changed into or exchanged for a different number or kind of shares
of Common Stock or other securities of the Company or of another corporation,
then (a) there shall automatically be substituted for each share of Common Stock
subject to an unexercised Option (in whole or in part) granted under the Plan
and each share of Common Stock available for additional grants of Options under
the Plan the number and kind of shares of Common Stock or other securities into
which each outstanding share of Common Stock shall be changed or for which each
such share shall be exchanged, (b) the Option Price shall be increased or
decreased proportionately so that the aggregate purchase price for the
securities subject to the Option shall remain the same as immediately prior to
such event, and (c) the Board shall make such other adjustments to the
securities subject to Options and the provisions of the Plan and Option
Agreements as may be appropriate and equitable. Any such adjustment may provide
for the elimination of fractional shares.

6.       DURATION OF PLAN.

         The Plan shall remain in effect, subject to the Board's right to
earlier terminate the Plan pursuant to Section 11 hereof, until all Common Stock
subject to it shall have been purchased or acquired pursuant to the provisions
hereof. Notwithstanding the foregoing, no Option may be granted under the Plan
on or after the tenth (10th) anniversary of the Plan's effective date.

7.       STOCK OPTIONS.

         7.1 Grant of Employee Stock Options. Subject to the provisions of
Sections 5 and 7, Employee Stock Options may be granted to Participants at any
time and from time to time as shall be determined by the Committee. The
Committee shall have complete discretion in determining the number of Options
granted to each Participant. The Committee also shall determine whether an
Option is to be an incentive stock option within the meaning of Code Section
422A ("ISO"), or a

                                       -4-

<PAGE>   5

nonqualified stock option whose grant is intended not to fall within the
provisions of Section 422A ("NQSO"). However, in no event shall the aggregate
Fair Market Value (determined at the date of grant) of the stock of which
incentive stock options are first exercisable in a particular calendar year
exceed $100,000, or such other limit as may be required by the Code.

             Nothing in this Section 7 shall be deemed to prevent the grant of
NQSOs in excess of the maximum established by Section 422A of the Code.

         7.2 Grant of Director Stock Options. Subject to the provisions of
Sections 5 and 7, Director Stock Options shall be granted to Eligible Directors
as provided in this Section 7.2 and neither the Administrator nor the Committee
shall have any discretion with respect to any matters set forth in this Section
7.2

             Commencing immediately after the adjournment of the Company's
Annual Meeting of Shareholders ("Annual Meeting") in 1999 and immediately after
the adjournment of the Annual Meeting each year thereafter, any Eligible
Director who was an Eligible Director immediately preceding such Annual Meeting
and who has been elected as a director at such Annual Meeting shall
automatically be granted a Director Stock Option for One Thousand (1,000) shares
of Common Stock if, but only if, the Return on Common Equity of the Company as
set forth in the Company's annual report to shareholders for the immediately
preceding fiscal year is equal to or greater than ten percent (10%).

         7.3 Option Agreement. Each Option shall be evidenced by an Option
Agreement that shall specify the type of Option granted, the Option Price, the
duration of the Option, the number of shares of Common Stock to which the Option
pertains, and such other provisions as the Committee shall determine for the
Employee Stock Options, and as the Administrator shall determine for the
Director Stock Options.

         7.4 Option Price. Employee Stock Options granted as ISOs, and all
Director Stock Options, shall have an Option Price that is equal to the Fair
Market Value of the Common Stock on the date the Option is granted. An ISO,
however, shall only be granted to a person who owns, directly or indirectly,
Common Stock possessing more than ten percent (10%) of the total combined voting
power of all classes of Common Stock of the Company, if the price of any such
Option is at least one hundred and ten percent (110%) of the Fair Market Value
of the Common Stock subject to the Option. NQSOs granted as Employee Stock
Options must have an option price which is not less than the amount allowed by
applicable law, which option price may be less than the Fair Market Value on the
day of grant.

         7.5 Duration of Options. Each Employee Stock Option shall expire at
such time as the Committee shall determine at the time the option is granted,
provided, however, that all Employee Stock Options, whether as an ISO or NQSO,
must be exercisable no later than ten (10) years and one day from the date of
its grant. An Employee Stock Option granted to a person who owns, directly or
indirectly, Common Stock possessing more than ten percent (10%) of the total
combined voting power of all classes of Common Stock of the Company must be
exercisable no later than five (5)

                                       -5-

<PAGE>   6

years from the date it is granted. Director Stock Options must be exercisable no
later than ten (10) years and one day from the date of its grant.

         7.6 Exercise of Options. All Employee Stock Options granted under the
Plan shall be exercisable at such times and be subject to such restrictions and
conditions as the Committee shall in each instance approve, which need not be
the same for all Participants. Director Stock Options granted under the Plan
shall be exercisable one year after the date of its grant. No Option may be
exercised until six months after the date of its grant.

         7.7 Payment. The Option Price upon exercise of any Option shall be
payable to the Company in full either (i) in cash or its equivalent, or (ii) by
tendering shares of previously acquired Common Stock having a Fair Market Value
at the time of exercise equal to the total Option Price, or (iii) by a
combination of (i) and (ii). The proceeds from such a payment shall be added to
the general funds of the Company and shall be used for general corporate
purposes. As soon as practicable after receipt of full payment (including the
necessary tax withholding), the Company shall deliver to the Participant or the
Eligible Director, as the case may be, Common Stock certificates in an
appropriate amount based upon the number of Options exercised, issued in the
name of the Participant or the Eligible Director, as the case may be.

         7.8 Restrictions on Stock Transferability. The Committee shall impose
such restrictions on any shares of Common Stock acquired pursuant to the
exercise of an Option under the Plan as it may deem advisable, including,
without limitation, restrictions under applicable Federal securities law, under
the requirements of any stock exchange upon which such shares of Common Stock
are then listed under any blue sky or state securities laws applicable to such
shares.

         7.9 Termination of Employment for Specific Reasons. In the event the
employment of a Participant is terminated for resignation, retirement,
Disability or death, any outstanding Option granted pursuant to the Plan and any
rights thereunder shall be exercisable by the Participant (or in the case of a
deceased Participant by his legal representative) only to the extent of the
accrued right to exercise such Option at the date of such termination. An
employee will not be deemed terminated for leaves of absence related to illness
or military leave. The Committee may, in its sole direction, permit the exercise
of all or any portion of the Option not otherwise exercisable and may provide
that all or some portion of the Option shall not terminate upon or by virtue of
such employment termination.

             To the extent that any such Option is exercisable at termination
or, as the result of Committee approval, becomes exercisable at termination, the
Option will remain exercisable for the earlier of the expiration date of the
Option, or the following time periods beginning after the event which gives rise
to the basis for termination: (a) resignation or retirement, three (3) months;
(b) Disability, twelve (12) months; and (c) death, six (6) months.

                  If at any time the Committee determines that a Participant has
committed an act adverse to the interests of the Company, including but not
limited to acts in competition with the Company or otherwise adverse to or not
in the best interests of the Company, the Committee may

                                       -6-

<PAGE>   7

rescind the right of the Participant to exercise all or part of any Options then
held, whether vested or unvested, said Options thereupon becoming null, void and
of no effect.

         7.10 Termination of Employment for Other Than Section 7.9 Reasons. If
the employment of the Participant shall terminate for any reason other than one
of those specified in Section 7.9 of the Plan, the rights under any then
outstanding Option granted pursuant to the Plan which, pursuant to the terms of
the Option Agreement between the Participant and the Company, is exercisable as
of the date of such termination, shall terminate upon the expiration date of the
Option or three (3) months after such date of termination of employment,
whichever first occurs. In its sole discretion, the Committee may extend the
three (3) months up to twelve (12) months, but in no event beyond the expiration
date of the Option.

         7.11 Termination of Eligible Director Shares. In the event that an
Eligible Director ceases to be an Eligible Director for any reason, the rights
under any outstanding Director Stock Options granted shall become immediately
vested and exercisable pursuant to the terms of the original grant. If an
Eligible Director ceases to be such by reason of death, any period shall be
extended to the sooner of twelve months or the expiration date of the Director
Stock Option.

         7.12 Nontransferability of Options. No Option granted under the Plan
may be sold, transferred, pledged, assigned, or otherwise alienated or
hypothecated, otherwise than by will or by the laws of descent and distribution.
All Options granted to a Participant or an Eligible Director under the Plan
shall be exercisable during his lifetime only by such Participant or Eligible
Director.

8.       BENEFICIARY DESIGNATION.

         Each Participant or Eligible Director under the Plan may, from time to
time, name any beneficiary or beneficiaries (who may be named contingently or
successively) to whom any benefit under the Plan is to be paid in case of his
death before he receives any or all of such benefit. Each designation will
revoke all prior designations by the same Participant or Eligible Director,
shall be in a form prescribed by the Committee or Administrator (as the case
requires), and will be effective only when filed by the Participant or Eligible
Director in writing with the Committee or Administrator (as the case requires)
during his lifetime. In the absence of any such designation, benefits remaining
unpaid at the Participant's or Eligible Director's death shall be paid to his
estate.

9.       RIGHTS OF EMPLOYEES.

         9.1 Employment. Nothing in the Plan shall interfere with or limit in
any way the right of the Company to terminate any Participant's employment at
any time, nor confer upon any Participant any right to continue in the employ of
the Company.

         9.2 Participation. No employee shall have a right to be selected as a
Participant, or, having been so selected, to be selected again as a Participant.

10.      CHANGE IN CONTROL.

                                       -7-

<PAGE>   8

         10.1 General. In the event that (a) the Company is a party to a merger
or consolidation agreement, (b) the Company is a party to an agreement to sell
substantially all of its assets, or (c) there is change in control of the
Company as defined in Section 10.3 below, the Committee in the case of Employee
Options, may, in their sole discretion, provide that all outstanding Options
shall become immediately exercisable. All Director Stock Options shall become
immediately exercisable.

         10.2 Limitation on Payments. If the receipt of any payment under this
Section by any Participant shall, in the opinion of independent tax counsel
selected by the Company, result in the payment by such Participant of any excise
tax provided for in Section 280G and Section 4999 of the Code, or any sections
of similar import, then the amount of such payment shall be reduced to the
extent required, in the opinion of independent tax counsel, to prevent the
imposition of such excise tax.

         10.3 Definitions. For purposes of the Plan, a "change in control" shall
mean any of the following events:

                  (a) The acquisition of "beneficial ownership," as defined in
         Rule 13d-3 promulgated under the Exchange Act of twenty percent (20%)
         or more of the total voting capital Common Stock of the Company then
         issued and outstanding, by any person, or "group," as defined in
         Section 13(d)(3) of the Exchange Act; or

                  (b) Any person or group makes a filing under Section 13(d) or
         14(d) of the Exchange Act; or

                  (c) Individuals who were members of the Board of the Company
         immediately prior to a meeting of the shareholders of the Company
         involving a contest for the election of Directors do not constitute a
         majority of the Board immediately following such election, unless the
         election of such new Directors was recommended to the shareholders by
         management of the Company.

                  The Board has final authority to determine the exact date on
which a change in control has been deemed to have occurred under (a) and (b)
above.

11.      AMENDMENT, MODIFICATION AND TERMINATION OF PLAN.

         The Board may at any time terminate and, from time to time, may amend
or modify the Plan, provided, however, that no such action of the Board, without
approval of the shareholders, may:

                  (a) Increase the total amount of Common Stock which may be
         issued under the Plan, except as provided in Subsections 5.1 and 5.3 of
         the Plan.

                  (b) Change the provisions of the Plan regarding the Option
         Price except as permitted by Subsection 5.3.

                                       -8-

<PAGE>   9

                  (c) Materially increase the cost of the Plan or materially
         increase the benefits to Participants.

                  (d) Extend the period during which Options may be granted.

                  (e) Extend the maximum period after the date of grant during
         which Options may be exercised.

         No amendment, modification, or termination of the Plan shall in any
manner adversely affect any Options theretofore granted under the Plan, without
the consent of the Participant or the Eligible Director, as the case may be.

12.      TAX WITHHOLDING.

         (a) The Company shall have the right to withhold from any payments made
under the Plan or to collect as a condition of payment, any taxes required by
law to be withheld. At any time when a Participant or an Eligible Director, as
the case may be, is required to pay to the Company an amount required to be
withheld under applicable income tax laws in connection with a distribution of
common stock or upon exercise of an Option, the Participant or an Eligible
Director, as the case may be, may satisfy this obligation in whole or in part by
electing ("Election") to have the Company withhold from the distribution, shares
of common stock having a value equal to the amount required to be withheld. The
value of the shares to be withheld shall be based on the Fair Market Value of
the common stock on the date that the amount of tax to be withheld shall be
determined ("Tax Date").

         (b) Each Election must be made prior to the Tax Date. The Committee may
disapprove of any Election, may suspend or terminate the right to make
Elections, or may provide with respect to any grant that the right to make
elections shall not apply to such Grant. An Election is irrevocable.

         (c) If a Participant is an officer of the Company within the meaning of
Section 16 of the Exchange Act or if the person making the Election is an
Eligible Director, than an Election is subject to the following additional
restrictions:

                  (1) The Election must be made six (6) months prior to the Tax
         Date.

                  (2) No Election shall be effective for a Tax Date which occurs
         within six (6) months of the grant of the award, except that this
         limitation shall not apply in the event Death or Disability of the
         Participant or the Eligible Director, as the case may be, occurs prior
         to the expiration of the six-month period.

13.      INDEMNIFICATION.

                                       -9-

<PAGE>   10

         The Administrator and each person who is or shall have been the
Administrator, and each person who is or shall have been a member of the
Committee, shall be indemnified and held harmless by the Company against and
from any loss, cost, liability, or expense that may be imposed upon or
reasonably incurred by him in connection with or resulting from any claim,
action, suit, or proceeding to which he may be a party or in which he may be
involved by reason of any action taken or failure to act under the Plan and
against and from any and all amounts paid by him in settlement thereof, with the
Company's approval, or paid by him in satisfaction of any judgment in any such
action, suit, or proceeding against him, provided he shall give the Company an
opportunity, at its own expense, to handle and defend the same before he
undertakes to handle and defend it on his own behalf. The foregoing right of
indemnification shall not be exclusive of any other rights of indemnification to
which such persons may be entitled under the Company's Articles of Incorporation
or Code of Regulations, as a matter of law, or otherwise, or any power that the
Company may have to indemnify them or hold them harmless.

14.      REQUIREMENTS OF LAW.

         14.1 Requirements of Law. The granting of Options and the issuance of
shares of Common Stock upon the exercise of an Option shall be subject to all
applicable laws, rules, and regulations, and to such approvals by any
governmental agencies or national securities exchanges as may be required.

         14.2 Governing Law. The Plan, and all agreements hereunder, shall be
construed in accordance with and be governed by the laws of the State of Ohio.

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