Document:

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                              RETAIL VENTURES, INC.

                                  Exhibit 4(a)

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                                                                    Exhibit 4(a)

                              AMENDED AND RESTATED
                              RETAIL VENTURES, INC.
                     NON-EMPLOYEE DIRECTOR STOCK OPTION PLAN

         1. PURPOSE. This plan (the "Plan") is intended as an incentive and to
encourage stock ownership by directors of RETAIL VENTURES, INC., an Ohio
corporation (the "Company") who are not employees of the Company or any
subsidiary or parent of the Company ("Non-employee Directors") by the granting
of stock options (the "Options") as provided herein. By encouraging such stock
ownership, the Company seeks to attract, retain and motivate highly qualified
Non-employee Directors.

         2. EFFECTIVE DATE. The Plan shall become effective on September 24,
1992 (the "Effective Date").

         3. ADMINISTRATION.

            (a) The Plan shall be administered by the Board of Directors of the
Company (the "Board"),

            (b) Subject to the provisions of the Plan, the Board is authorized
to establish, amend and rescind such rules and regulations as it may deem
appropriate for its conduct and for the proper administration of the Plan, to
make all determinations under and interpretations of, and to take such actions
in connection with, the Plan or the Options granted thereunder as it may deem
necessary or advisable. All actions taken by the Board under the Plan shall be
final and binding on all persons. No member of the Board shall be liable for any
action taken or determination made relating to the Plan, except for willful
misconduct.

         4. ELIGIBILITY AND TERMS. On the first New York Stock Exchange ("NYSE")
trading day in each calendar quarter, each Non-employee Director shall be
granted under this Plan an option to purchase 1,000 shares of the Company's
Common Shares without par value at an exercise price equal to 100% of the fair
market value of the shares on the date of grant. Each Option shall not be
exercisable until a period of one year from the date of grant and shall
terminate on the NYSE trading day following the tenth anniversary of the date of
grant, except that in the event of the Optionee's termination of service as a
result of disability or death as specified in subparagraph 9(b) of this Plan,
the Option shall be immediately exercisable to the extent and for the period
specified in subparagraph 9(b); (ii) in the event of the Optionee's termination
of service as specified in subparagraph 9(a), the Option shall be immediately
exercisable to the extent and for the period specified in subparagraph 9(a); and
(iii) in the event of a liquidation or merger as specified in subparagraph
10(b), the Option shall be immediately exercisable in full for the period
specified in subparagraph 10(b).

         5. STOCK SUBJECT TO PLAN. The stock subject to Options under the Plan
shall be Common Shares without par value of the Company ("Shares"). The Shares
issued pursuant to Options granted under the Plan may be authorized and unissued
Shares, Shares purchased on the open market or in a private transaction, or
Shares held as treasury stock. The aggregate number of Shares for which options
may be granted under the Plan shall not exceed 250,000, subject to adjustment in
accordance

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with the terms of paragraph 10 hereof. The unpurchased Shares subject to
terminated or expired options may again be offered under the Plan. Proceeds from
the sale of shares under Options shall constitute general funds of the Company.

         6. OPTION AGREEMENT. Within a reasonable time after the date of grant,
all options granted shall be evidenced by stock option agreements in writing
("Stock Option Agreements"), in the form attached hereto as Exhibit A, or in
such other form and containing such terms and conditions not inconsistent with
the provisions of this Plan as the Board shall from time to time determine. Any
action under paragraph 10 may be reflected in an amendment to or restatement of
such Stock Option Agreements.

         7. TRANSFERABILITY OF OPTIONS. An Optionee may transfer an Option
either (a) to members of his or her immediate family (as defined in Rule 16a-1
promulgated under the 1934 Act), to one or more trusts for the benefit of such
family members, or to partnerships in which such family members are the only
partners, provided that the Optionee does not receive any consideration for the
transfer, or (b) if such transfer is approved by the Board. Any Options held by
such transferees are subject to the same terms and conditions that applied to
such options immediately prior to transfer.

         8. EXERCISE OF OPTIONS.

            (a) Notwithstanding the terms and conditions of any Stock Option
Agreement to the contrary, (i) in the event of the Optionee's termination of
service as a result of disability or death as specified in subparagraph 9(b),
the Options shall he immediately exercisable to the extent and for the period
specified in subparagraph 9(b); (ii) in the event of Optionee's termination of
service as specified in subparagraph 9(a), the Options shall be immediately
exercisable to the extent and for the period specified in subparagraph 9(a); and
(iii) in the event of a liquidation or merger as specified in subparagraph
10(b), the options shall be immediately exercisable in full for the period
specified in subparagraph 10(b).

            (b) An Option shall be exercisable only upon delivery of a written
notice to the Company's Treasurer, or any other officer of the Company
designated by the Board to accept such notices on its behalf, specifying the
number of Shares for which it is exercised.

            (c) within five business days following the date of exercise of an
Option, the Optionee or other person exercising the option shall make full
payment of the Option Price (i) in cash; (ii) with the consent of the Board, by
tendering previously acquired Shares (valued at their fair market value, as of
the trading day immediately prior to such date of tender); (iii) with the
consent of the Board, with a full recourse promissory note of the Optionee for
the portion of the option Price in excess of the par value of Shares subject to
the Option, under terms and conditions determined by the Board; (iv) with the
consent of the Board, any combination of (i), (ii), or (iii); or (v) with the
consent of the Board, if the Shares subject to the Option have been registered
under the 1933 Act and there is a regular public market for the Shares, by
delivering to the Company on the date of exercise of the Option written notice
of exercise together with:

                  (A) written instructions to forward a copy of such notice of
         exercise to a broker or dealer, as defined in section 3(a)(4) and
         3(a)(5) of the 1934 Act ("Broker"), designated in such notice and to
         deliver to the

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         specified account maintained with the Broker by the person exercising
         the Option a certificate for the Shares purchased upon the exercise of
         the option, and

                  (B) a copy of irrevocable instructions to the Broker to
         deliver promptly to the Company a sum equal to the purchase price of
         the Shares purchased upon exercise of the option.

            (d) If cash payments sufficient to allow for any withholding of
taxes are not being made at the time of exercise of an option, the Optionee or
other person exercising such option shall pay to the Company an amount equal to
the withholding amount required to be made less any amount withheld by the
Company under paragraph 15.

         9. TERMINATION OF SERVICES.

            (a) Upon termination of service as a Director of the Company, other
than (i) termination by reason of death or disability (as defined in
subparagraph 22(a) of the Plan), or (ii) termination for cause (as defined in
subparagraph 22(d) of the Plan), the Optionee shall have 90 days after the date
of termination (but not later than the expiration date of the Stock Option
Agreement) to exercise all Options held by him or her to the extent the same
were exercisable on the date of termination; provided, however, if such
termination is due to the Optionee's retirement with the consent of the Company,
such Option shall then be exercisable to the extent of 100% of the Shares
subject thereto. The Board shall determine in each case whether a termination of
service shall be considered a retirement with the consent of the Company and,
subject to applicable law, whether a leave of absence shall be considered a
termination of service. The Board may cancel an Option during the 90-day period
after termination of service referred to in this paragraph if the Optionee
engages in employment or activities contrary, in the sole opinion of the Board,
to the best interests of the Company or any parent or subsidiary of the Company.

            (b) Upon termination of service by reason of death or disability,
all Options previously granted to such Optionee may be exercised by the
Optionee, the Optionee's personal representative, or the person or persons to
whom his or her rights under the options pass by will or the laws of descent or
distribution whether or not the same were exercisable on the date of death or
disability at any time during the period ending one year after date of death or
termination of employment by reason of disability (but not later than the
expiration date of the Stock option Agreement).

            (c) Upon termination of service for cause, all Options held by such
Optionee shall terminate on the date of termination.

         10. REORGANIZATIONS.

            (a) In the event of a stock split, stock dividend, combination or
exchange of shares, exchange for other securities, reclassification,
reorganization, redesignation or other change in the Company's capitalization,
the aggregate number of Shares for which Options may be granted under this Plan,
the number of Shares subject to outstanding options and the Option Price of the
Shares subject to outstanding options shall be proportionately adjusted or
substituted to reflect the same. The Board shall

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make such other adjustments to the Options, the provisions of the Plan and the
Stock option Agreements as may be appropriate and equitable, which adjustments
may provide for the elimination of fractional Shares.

            (b) if the Company shall liquidate or dissolve, or shall be a party
to a merger or consolidation in which the Company shall not be the surviving
corporation, other than a merger or consolidation involving only a change in
state of incorporation or an internal reorganization not involving a substantial
change in underlying ownership, the Company shall give written notice thereof to
all holders of Options granted under the Plan at least 30 days prior to the
effective date of such liquidation, dissolution, merger or consolidation, and
the holders shall have the right within such 30-day period to exercise their
Options to the extent of 100% of the Shares subject thereto regardless of
restrictions an exercise or vesting percentages contained in the Stock Option
Agreements; provided, however, that in no event shall such options be exercised
after the specific expiration date set forth therein. To the extent such Options
shall not have been exercised on or prior to the effective date of such
liquidation, dissolution, merger or consolidation, they shall terminate on that
date.

         11. SALE OF OPTION SHARES. If any class of equity securities of the
company is registered pursuant to Section 12 of the 1934 Act, any Optionee or
other person exercising the Option who is subject to Section 16 of the 1934 Act
by virtue of his or her relationship to the Company shall not sell or otherwise
dispose of the shares subject to Option unless at least six months have elapsed
from the date of grant of the Option.

         12. RIGHTS AS SHAREHOLDER. The Optionee shall have no rights as a
shareholder with respect to any Shares covered by an Option until the date of
issuance of a stock certificate to the Optionee for such Shares.

         13. NO CONTRACT OF EMPLOYMENT. Nothing in the Plan or in any Option or
Stock Option Agreement shall confer on any Optionee any right to continue in the
service of the Company or any parent or subsidiary of the Company or interfere
with the right of the Company to terminate such Optionee's services at any time.
The establishment of the Plan shall in no way, now or hereafter, reduce, enlarge
or modify the relationship between the Company or any parent or subsidiary of
the Company and the Optionee. Options granted under the Plan shall not be
affected by any change of duties or position as long as the Optionee continues
to serve as a Director of the Company.

         14. AGREEMENTS AND REPRESENTATIONS OF OPTIONEES. As a condition to the
exercise of an Option, the Board may, in its sole determination, require the
Optionee to represent in writing that the Shares being purchased are being
purchased only for investment and without any present intent at the time of the
acquisition of such Shares to sell or otherwise dispose of the same.

         15. WITHHOLDING TAXES. The Company shall have the right to withhold
from any compensation for services payable by the Company to or with respect to
an Optionee, amounts sufficient to satisfy any federal, state or local
withholding tax liability attributable to such Optionee's (or any beneficiary's
or personal representative's) receipt or disposition of Shares purchased under
any Option or to take any such other action as it deems necessary to enable it
to satisfy any such tax withholding obligations. The Board, in its sole
discretion, may permit Optionees to elect to have Shares that would be acquired
upon exercise of Options (valued at their fair market value as of the date of
exercise) withheld by the Company in satisfaction of such Optionees, withholding
tax liabilities,

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         16. COMPLIANCE WITH LAWS AND REGULATIONS. The Plan, the grant and
exercise of Options thereunder, and the obligation of the Company to sell and
deliver the Shares under such options, shall be subject to all applicable
federal and state laws, rules and regulations and to such approvals by any
government or regulatory agency as may be required. Options issued under this
Plan shall not be exercisable prior to (i) the date upon which the Company shall
have registered the Shares for which Options may be issued hereunder under the
1933 Act, and (ii) the completion of the listing of such shares on the New York
Stock Exchange and any registration or qualification of such Shares under state
law, or any ruling or regulation of any government body which the Company shall,
in its sole discretion, determine to be necessary or advisable in connection
therewith, or alternatively, unless the Company shall have received an opinion
from counsel to the Company stating that the exercise of such options may be
effected without registering the Shares subject to such Options under the 1933
Act, or under state or other law.

         17. ASSUMPTION. The Plan may be assumed by the successors and assigns
of the Company.

         18. EXPENSES. All expenses and costs in connection with administration
of the Plan shall be borne by the Company.

         19. AMENDMENT, MODIFICATION AND TERMINATION OF THE PLAN. The Board may
terminate, amend or modify the Plan at any time without further action on the
part of the shareholders of the company; provided, however, that (a) any
amendment to the Plan which requires the approval of the shareholders of the
Company under the Code or the regulations promulgated thereunder shall be
subject to approval by the shareholders of the Company in accordance with the
Code or such regulations; and (b) any amendment to the Plan which requires the
approval of the shareholders of the Company under the rules promulgated under
section 16 Of the 1,934 Act shall be subject to the approval of the shareholders
of the company in accordance with such rules. No amendment, modification or
termination of the Plan shall in any manner adversely affect any option
previously granted to an Optionee under the Plan without the consent of the
Optionee.

         20. TERM OF PLAN. The Plan shall become effective on the Effective
Date, subject to the approval of the Plan by the holders of a majority of the
shares of stock of the Company present and entitled to vote at a meeting within
twelve months of the date of the Plan's adoption by the Board, and all Options
granted prior to such approval shall be subject to such approval. The Plan shall
terminate on the tenth anniversary of the Effective Date, or such earlier date
as may be determined by the Board, Termination of the Plan, however, shall not
affect the rights of Optionees tinder Options previously granted to them, and
all unexpired options shall continue in force and operation after termination of
the Plan except as they may lapse or be terminated by their own terms and
conditions.

         21. LIMITATION OF LIABILITY. The liability of the Company under this
Plan or in connection with any exercise of an Option is limited to the
obligations expressly set forth in the Plan and in any Stock Option Agreements,
and no term or provision of this Plan or of any Stock option Agreements shall be
construed to impose any further or additional duties, obligations or costs on
the Company not expressly set forth in the Plan or the Stock Option Agreements.

         22. DEFINITIONS.

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            (a) Disability. "Disability," as used herein, shall mean a physical
or mental condition resulting from bodily injury, disease, or mental disorder
which renders the Optionee incapable of continuing the Optionee's usual and
customary service with the Company or any parent or subsidiary of the Company.

            (b) Fair Market Value. If the Shares are publicly traded, the term
"fair market value" as used in this Plan shall mean (a) the average of the
highest and lowest sale prices quoted in the NASDAQ National Market System, if
the shares are so quoted, (b) the mean between the bid and asked prices as
reported by NASDAQ, if the Shares are not quoted in the National Market System,
or (c) if the Shares are listed on a securities exchange, the mean between the
high and low prices at which the shares are quoted or traded on such exchange,
in each case on the date the Option is granted or, if there be no quotation or
sale on that date, the next previous date on which the Shares were quoted or
traded.

            (c) Parent and Subsidiary. The terms "subsidiary" and "parent" as
used in the Plan shall have the respective meanings set forth in sections 424(f)
and (e) of the Code.

            (d) Termination For Cause. The term "termination of employment or
service for cause" shall mean termination of employment or service for (a) the
commission of an act of dishonesty, including but not limited to
misappropriation of funds or property of the Company; (b) the engagement in
activities or conduct injurious to the reputation of the Company; (c) the
conviction or entry of a guilty or no contest plea to a misdemeanor (involving
an act of moral turpitude) or a felony; (d) the violation of any of the terms
and conditions of any written agreement the person may have from time to time
with the Company or any of its subsidiaries (following 30 days, written notice
from the Company specifying the violation and the employee's failure to cure
such violation within such 30-day period) or (e) any refusal to comply with the
written directives, policies or regulations established from time to time by the
Board.<PAGE>

                              RETAIL VENTURES, INC.

                                  Exhibit 4(a)

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                                                                    Exhibit 4(a)

                              AMENDED AND RESTATED
                              RETAIL VENTURES, INC.
                             1991 STOCK OPTION PLAN

     1. PURPOSE. This plan (the "Plan") is intended as an incentive and to
encourage stock ownership by certain key employees of and other key persons who
render services to RETAIL VENTURES, INC., an Ohio corporation (the "Company")
and any current or future subsidiaries or parent by the granting of stock
options (the "Options") as provided herein. By encouraging such stock ownership,
the Company seeks to attract, retain and motivate employees of training,
experience and ability. The Options granted under the Plan may be either
incentive stock options ("ISOs") which meet the requirements of Section 422 of
the Internal Revenue Code of 1986, as amended (the "Code"), or options which do
not meet such requirements ("Non-statutory options").

     2. EFFECTIVE DATE. The Plan shall become effective on June 4, 1991 (the
"Effective Date")

     3. ADMINISTRATION.

        (a) The Plan shall be administered by the Board of Directors of the
Company (the "Board") unless the Board shall designate a committee (the
"Committee") of not less than three members of the Board. If any class of equity
securities of the Company is registered under Section 12 of the Securities
Exchange Act of 1934, as amended (the 111934 Act"), all members of the Committee
shall be "disinterested persons" as defined in Rule l6b-3(c)(2)(i) under the
1934 Act. The Board may remove or add members of the Committee. If the Board
does not appoint a Committee, any reference in the Plan or iii any stock option
agreements under the Plan shall mean the Board.

        (b) Subject to the provisions of the Plan, the Committee is authorized
to establish, amend and rescind such rules and regulations as it may deem
appropriate for its conduct and for the proper administration of the Plan, to
make all determinations under and interpretations of, and to take such actions
in connection with, the Plan or the options granted thereunder as it may deem
necessary or advisable. All actions taken by the Committee under the Plan shall
be final and binding on all persons. No member of the Committee shall be liable
for any action taken or determination made relating to the Plan, except for
willful misconduct.

        (c) Each member of the Committee shall be indemnified by the Company
against costs, expenses and liabilities (other than amounts paid in settlements
to which the Company does not consent, which consent shall not be unreasonably
withheld) reasonably incurred by such member in connection with any action to
which he may be a party by reason of service as a member of the Committee,
except in relation to matters as to which he shall be adjudged in such action to
be personally guilty of negligence or willful misconduct in the performance of
his duties. The foregoing right to indemnification shall be in addition to such
other rights as the Committee member may enjoy as a matter of law, by reason of
insurance coverage of any kind, or otherwise.

     4. ELIGIBILITY.

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        (a) Options and/or Tax Offset Payments may be granted to such key
employees of (or, in the case of Nonstatutory Options only, to others who render
services to) the Company or its subsidiaries or parent as the Committee shall
select from time to time (the "Optionees"); provided, however, that no member of
the Board of Directors who is not an officer or employee of the Company shall be
eligible to receive any option hereunder. The term "key employees" shall include
those executive, administrative, operational and managerial employees who are
determined by the Committee to be eligible for options under the Plan. The terms
"subsidiary" and "parent" as used in the Plan shall have the respective meanings
set forth in sections 424(f) and (e) of the Code. More than one option may be
granted to one individual.

        (b) No ISO may be granted to an individual who, at the time an ISO is
granted, is considered under section 422(b)(6) of the Code as owning stock
possessing more than 10 percent of the total combined voting power of all
classes of stock of the Company or of its parent or any subsidiary corporation;
provided, however, this restriction shall not apply if at the time such ISO is
granted the option price per Share of such ISO shall be at least 110% of the
fair market value of such Share, and such ISO by its terms is not exercisable
after the expiration of five years from the date it is granted. This
subparagraph 4(b) has no application to Options granted under the Plan as
Non-statutory Options.

        (c) The aggregate fair market value (determined as of the date the ISO
is granted) of shares with respect to which ISOs are exercisable for the first
time by any Optionee during any calendar year under the Plan or any other ISO
plan of the Company or a parent or subsidiary of the Company may not exceed
$100,000, This subparagraph 4(c) has no application to Options granted under the
Plan as Non-statutory options.

     5. STOCK SUBJECT TO PLAN. The stock subject to Options under the Plan shall
be Common Shares without par value of the Company ("Shares"), either authorized
and unissued Shares, Shares purchased on the open market or in a private
transaction, or Shares held as treasury stock. The aggregate number of Shares
for which options may be granted under the Plan, in the aggregate and to any one
individual, shall not exceed 4,000,000, subject to adjustment in accordance with
the terms of paragraph 13 hereof. The unpurchased Shares subject to terminated
or expired options may again be offered under the Plan. The Committee, in its
sole discretion, may permit the exercise of any option as to full Shares or
fractional Shares. Proceeds from the sale of Shares under Options shall
constitute general funds of the Company.

     6. TERMS AND CONDITIONS OF OPTIONS.

        (a) At the time of grant, the Committee shall determine whether the
Options granted are to be ISOs or Non-statutory Options and shall enter into
stock option agreements with the recipients accordingly. All Options and/or Tax
Offset Payments granted shall be authorized by the Committee .and, within a
reasonable time after the date of grant, shall be evidenced by stock option
agreements in Writing ("Stock Option Agreements"), in the form attached hereto
as Exhibit A, or in such other form and containing such terms and conditions not
inconsistent with the provisions of this Plan as the Committee shall from time
to time determine. Any action under paragraph 13 may be reflected in an
amendment to or restatement of such Stock Option Agreements.

        (b) The Committee may grant Options and/or Tax Offset Payments having
terms and provisions which vary from those specified in the Plan if such options
are granted in substitution for, or

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in connection with the assumption of, existing options granted by another
corporation and assumed or otherwise agreed to be provided for by the Company
pursuant to or by reason of a transaction involving a corporate merger,
consolidation, acquisition of property or stock, separation, reorganization or
liquidation to which the Company is a party.

     7. PRICE. The option price per Share (the "Option Price") of each Option
granted under the Plan shall be determined by the Committee; provided, however,
the Option Price of each ISO granted under the Plan shall not be less than the
fair market value (determined without regard to any restrictions other than a
restriction which, by its terms, will never lapse) of a Share on the date of
grant of such Option. In the event that the Shares are publicly traded, the term
"fair market value" shall mean (a) the average of the highest and lowest sale
prices quoted in the NASDAQ National market system, if the shares are so quoted,
(b) the mean between the bid and asked prices as reported by NASDAQ, if the
Shares are not quoted in the National Market System, or (c) if the Shares are
listed on a securities exchange, the mean between the high and low prices at
which the shares are quoted or traded on such exchange, in each case on the date
the option is granted or, if there be no quotation or sale on that date, the
next previous date on which the Shares were quoted or traded. An Option shall be
considered granted on the date the Committee acts to grant the option or such
later date as the Committee shall specify.

     8. OPTION PERIOD. Each Stock Option Agreement shall set forth the period
during which it may be exercised, which period shall not exceed 10 years from
the date any ISO is granted (the "Option Period").

     9. NON-TRANSFERABILITY OF OPTIONS. An Option shall not be transferable by
the Optionee otherwise than by will or the laws of descent and distribution and
may be exercised, during the lifetime of the Optionee, only by him or by his
guardian or legal representative. Notwithstanding the foregoing, an Optionee may
transfer a Nonstatutory Option either (a) to members of his or her immediate
family (as defined in Rule 16a-1 promulgated under the 1934 Act), to one or more
trusts for the benefit of such family members, or to partnerships in which such
family members are the only partners, provided that the Optionee does not
receive any consideration for the transfer, or (b) if such transfer is approved
by the committee. Any Non-statutory Options held by such transferees are subject
to the same terms and conditions that applied to such Non-statutory Options
immediately prior to transfer.

     10. TAX OFFSET PAYMENTS. The Committee has the authority and discretion
under the Plan to make cash grants to Optionees which are intended to offset a
portion of the taxes which may become payable upon exercise of options by the
Optionee, accruing on exercise of a Non-statutory Option and/or on certain
dispositions of Shares acquired under ISOs ("Tax Offset Payments"). Such Tax
Offset Payments shall be in an amount determined by multiplying a percentage
established by the Committee times the difference between the fair market value
of a Share on the date of exercise as determined by the Committee in accordance
with paragraph 7 and the option Price (or, if the Tax Offset Payment is being
made on account of the disposition of Shares acquired under an ISO, the
difference between the fair market value of a Share on the date of disposition
if less than the fair market value on the date of exercise, and the option
Price), and times the number of Shares as to which the Option is being exercised
or the number of Shares acquired under an ISO of which an Optionee is disposing.
The percentage shall be established, from time to time, by the Committee at that
rate which the Committee, in its sole discretion, determines to be appropriate
and in the best interest of the Company to assist

<PAGE>

Optionees in the payment of federal income taxes incurred on exercise of a
Non-statutory Option. The dispositions of shares acquired under ISOs for which a
Tax Offset Payment shall accrue shall be determined by the Committee in its sole
discretion. The Company shall have the right to withhold and pay over to any
governmental entities (federal, state or local) all amounts under a Tax Offset
Payment for payment of any income or other taxes incurred on exercise.

     11. EXERCISE OF OPTIONS.

        (a) Options granted hereunder will be exercisable upon the terms and
conditions and in accordance with the vesting percentages determined by the
Committee at its sole discretion. Notwithstanding the foregoing or the terms and
conditions of any Stock Option Agreement to the contrary, in the event of the
Optionee's termination of employment as a result of disability or death as
specified in subparagraph 12(b), the options shall be immediately exercisable in
full. for the period specified in subparagraph 12(b); (ii) in the event of
Optionee's termination of employment as specified in subparagraph 12(a), the
options shall be immediately exercisable to the extent and for the period
specified in subparagraph 12(a); and (iii) in the event of a liquidation or
merger as specified in subparagraph 13(b), the options shall be exercisable for
the 30-day period after written notice thereof as specified in subparagraph
13(b).

        (b) An Option shall be exercisable only upon delivery of a written
notice to the Committee, any member of the Committee, the Company's Treasurer,
or any other officer of the Company designated by the Committee to accept such
notices on its behalf, specifying the number of Shares for which it is
exercised.

        (c) Within five business days following the date of exercise of an
Option, the Optionee or other person exercising the Option shall make full
payment of the Option Price (i) in cash; (ii) with the consent of the Committee,
by tendering previously acquired Shares (valued at their fair market value, as
determined by the Committee, as of such date of tender); (iii) with the consent
of the Committee, with a full recourse promissory note of the Optionee for the
portion of the Option Price in excess of the par value of Shares subject to the
Option, under terms and conditions determined by the Committee, provided, that
such promissory note, in the case of exercise of an ISO, shall provide for
interest at no less than the "applicable federal rate" as determined pursuant to
the Code; (iv) with the consent of the Committee, any combination of (i), (ii),
or (iii); or (v) with the consent of the Committee, if the Shares subject to the
option have been registered under the 1933 Act and there is a regular public
market for the Shares, by delivering to the Company on the date of exercise of
the option written notice of exercise together with;

                (A) written instructions to forward a copy of such notice of
        exercise to a broker or dealer, as defined in section 3(a)(4) and
        3(a)(5) of the 1934 Act ("Broker"), designated in such notice and to
        deliver to the specified account maintained with the Broker by the
        person exercising the option a certificate for the Shares purchased upon
        the exercise of the Option, and

                (B) a copy of irrevocable instructions to the Broker to deliver
        promptly to the Company a sum equal to the purchase price of the Shares
        purchased upon exercise of the Option.

<PAGE>

        (d) If Tax offset Payments sufficient to allow for withholding of taxes
are not being made at the time of exercise of an Option, the Optionee or other
person exercising such option shall pay to the Company an amount equal to the
withholding amount required to he made less any amount withheld by the Company
under paragraph 18.

     12. TERMINATION OF EMPLOYMENT OR OTHER SERVICES.

        (a) Upon termination of employment or service with the Company, any
parent or subsidiary of the Company, or any successor corporation to either the
Company or any parent or subsidiary of the Company, other than (i) by reason of
death or disability, or (ii) for cause by reason of the Optionee's dishonesty or
disloyalty, the Optionee shall have 30 days after the date of termination (but
not later than the expiration date of the Stock Option Agreement) to exercise
all Options held by him to the extent the same were exercisable on the date of
termination; provided, however, if such date of termination is after the
Optionee has attained age 60 or 30 years of employment or service, such option
shall then be exercisable to the extent of 100% of the Shares subject thereto.

        (b) Upon termination of such employment or service by reason of death or
disability, all options previously granted to such Optionee may be exercised by
the Optionee, the Optionee's personal representative, or the person or persons
to whom his rights under the Option pass by will or the laws of descent or
distribution at any time during the period ending one year after date of death
or termination of employment by reason of disability (but not later than the
expiration date of the Stock Option Agreement). Such Options shall then be
exercisable to the extent of 100% of the Shares subject thereto.

        (c) Upon termination of such employment or service for cause by reason
of the Optionee's dishonesty or disloyalty, all Options held by him shall
terminate on the date of termination.

        (d) "Disability," as used herein, shall mean a physical or mental
condition resulting from bodily injury, disease, or mental disorder which
renders the Optionee incapable of continuing the Optionee's usual and customary
employment with the Company.

     13. REORGANIZATIONS.

        (a) In the event of a stock split, stock dividend, combination or
exchange of shares, exchange for other securities, reclassification,
reorganization, redesignation or other change in the Company's capitalization,
the aggregate number of Shares for which Options may be granted under this Plan,
the number of Shares subject to outstanding Options and the Option Price of the
Shares subject to outstanding Options shall be proportionately adjusted or
substituted to reflect the same. The Committee shall make such other adjustments
to the Options, the provisions of the Plan and the Stock option Agreements as
may be appropriate and equitable, which adjustments may provide for the
elimination of fractional Shares.

        (b) If the Company shall liquidate or dissolve, or shall be a party to a
merger or consolidation in which the Company shall not be the surviving
corporation, other than a merger or consolidation involving only a change in
state of incorporation or an internal reorganization not involving a substantial
change in underlying ownership, the Company shall give written notice thereof

<PAGE>

to all holders of Options granted under the Plan at least 30 days prior to the
effective date of such liquidation, dissolution, merger or consolidation, and
the holders shall have the right within such 30-day period to exercise their
options in full regardless of restrictions on exercise contained in the Stock
Option Agreements; provided, however, that in no event shall such options be
exercised after the specific expiration date set forth therein. To the extent
such Options shall not have been exercised on or prior to the effective date of
such liquidation, dissolution, merger or consolidation, they shall terminate on
that date.

     14. SALE OF OPTION SHARES. The Optionee or other person exercising the
Option shall not sell or otherwise dispose of the Shares subject to Option
unless at least six months have elapsed from the date of grant.

     15. RIGHTS AS SHAREHOLDER. The Optionee shall have no rights as a
shareholder with respect to any Shares covered by an option until the date of
issuance of a stock certificate to the Optionee for such shares.

     16. NO CONTRACT OF EMPLOYMENT. Nothing in the Plan or in any Option or
Stock Option Agreement shall confer on any Optionee any right to continue in the
service of the Company or any parent or subsidiary of the Company or interfere
with the right of the Company to terminate such Optionee's employment or other
services at any time. The establishment of the Plan shall in no way, now or
hereafter, reduce, enlarge or modify the employment relationship between the
Company or any parent or subsidiary of the Company and the Optionee, options
granted under the Plan shall not be affected by any change of duties or position
as long as the Optionee continues to be employed by the Company or any parent or
subsidiary of the Company.

     17. AGREEMENTS AND REPRESENTATIONS OF OPTIONEES. As a condition to the
exercise of an Option, the Committee may in its sole determination require the
Optionee to represent in writing that the Shares being purchased are being
purchased only for investment and without any present intent at the time of the
acquisition of such Shares to sell or otherwise dispose of the same.

     18. WITHHOLDING TAXES. The Company shall have the right to withhold from
any salary, wages, or other compensation for services payable by the Company to
or with respect to an Optionee, amounts sufficient to satisfy any federal, state
or local withholding tax liability attributable to such Optionee's (or any
beneficiary's or personal representative's) receipt or disposition of Shares
purchased under any option or to take any such other action as it deems
necessary to enable it to satisfy any such tax withholding obligations.

     19. EXCHANGES. The Committee may permit the voluntary surrender of all or a
portion of any Option granted under the Plan to be conditioned upon the granting
to the Participant of a new option for the same or a different number of Shares
as the Option surrendered, or may require such voluntary surrender as a
condition precedent to a grant of a new Option to such Optionee. Subject to the
provisions of the Plan, such new Option shall be exercisable at the same price,
during such period and on such other terms and conditions as are specified by
the Committee at the time the new option is granted. Upon surrender, the Options
surrendered shall be canceled and the Shares previously subject to them shall be
available for the grant of other Options. The Committee may also grant Tax
Offset Payments to any Optionee surrendering such Option for a new Option.

<PAGE>

     20. COMPLIANCE WITH LAWS AND REGULATIONS. The Plan, the grant and exercise
of options thereunder, and the obligation of the Company to sell and deliver the
Shares under such options, shall be subject to all applicable federal and state
laws, rules and regulations and to such approvals by any government or
regulatory agency as may be required. Options issued under this Plan shall not
be exercisable prior to (i) the date upon which the Company shall have
registered the Shares for which Options may be issued hereunder under the 1933
Act, and (ii) the completion of any registration or qualification of such shares
under state law, or any ruling or regulation of any government body which the
Company shall, in its sole discretion, determine to be necessary or advisable in
connection therewith, or alternatively, unless the Company shall have received
an opinion from counsel to the Company stating that the exercise of such Options
may be effected without registering the shares subject to such options under the
1933 Act, or under state or other law.

     21. ASSUMPTION. The Plan may be assumed by the successors and assigns of
the Company.

     22. EXPENSES. All expenses and costs in connection with administration of
the Plan shall be borne by the Company.

     23. AMENDMENT, MODIFICATION AND TERMINATION OF THE PLAN. The Board may
terminate, amend or modify the Plan at any time; provided, however, that no such
action of the Board without approval of the Shareholders, may (a) materially
increase the number of Shares for which options may be granted under the Plan,
except as provided in paragraph 13; (b) increase the maximum option Period; (c)
materially modify the requirements as to eligibility for participation in the
Plan; (d) materially increase the benefits accruing to Optionees; (e) permit the
granting of IS0s to anyone other than an employee of the Company or a parent or
subsidiary of the Company; (f) increase the minimum ISO option Price; (g)
increase the maximum ISOs that can be exercised per Optionee as set forth in
subparagraph 4(C); or (h) if the Company has a class of equity securities
registered under section 12 of the 1934 Act, transfer the administration of the
Plan to any person who is not a "disinterested person" as that term is defined
in Rule 16b-3(c)(2)(i) under the 1934 Act. No amendment, modification or
termination of the Plan shall in any manner adversely affect any option
previously granted to an Optionee under the Plan without the consent of the
Optionee or the transferee of such Option.

     24. TERM OF PLAN. The Plan shall become effective on the date of its
adoption by the Board, subject to the approval of the Plan by the holders of a
majority of the shares of stock of the Company entitled to vote within twelve
months of the Effective Date, and all Options granted prior to such approval
shall be subject to such approval. The Plan shall terminate on the tenth
anniversary of the Effective Date, or such earlier date as may be determined by
the Board. Termination of the Plan, however, shall not affect the rights of
Optionees under Options previously granted to them, and all unexpired options
shall continue in force and operation after termination of the Plan except as
they may lapse or be terminated by their own terms and conditions.

     25. LIMITATION OF LIABILITY. The liability of the Company under this Plan
or in connection with any exercise of an Option is limited to the obligations
expressly set forth in the Plan and in any Stock Option Agreements, and no term
or provision of this Plan or of any Stock Option Agreements shall be construed
to impose any further or additional duties, obligations or costs on the Company
not expressly set forth in the Plan or the Stock Option Agreements.

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