Document:

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                                  EXHIBIT 10.38

                                   ROTO-ROOTER
                        DEFERRED COMPENSATION PLAN NO. 2

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         The purpose of this Plan is to provide certain deferred compensation
benefits to a select group of management and highly compensated employees of
designated affiliates of Roto-Rooter, Inc. This Plan amends and restates in its
entirety the October 1, 1993 Roto-Rooter Management Company Deferred
Compensation Plan.

         The Plan's benefits are not insured by the Pension Benefit Guaranty
Corporation. The Plan is intended to provide deferred compensation within the
scope of Sections 201(2), 301(a)(3) and 401(a)(1) of the Employee Retirement
Income Security Act of 1974 ("ERISA"), as amended. The Plan is intended to be an
unfunded arrangement for purposes of ERISA.

SECTION 1. DEFINITIONS

         1.1 "Account" or "Deferred Compensation Account" means the bookkeeping
account maintained for each Participant.

         1.2 "Beneficiary" means the person or entity designated by a
Participant in a "Designation of Beneficiary" form prescribed by and filed with
the Committee for this Plan. A "Beneficiary" may include the Participant's
estate or a trust. A Participant may at any time change a designation of a
Beneficiary by filing a new Designation of Beneficiary form with the Employer.
If a Participant has not made an effective designation, or if a Beneficiary does
not survive the Participant, then "Beneficiary" means the Participant's estate.
In the event the Committee has any doubt as to the proper person or entity
entitled to receive payments under the Plan, then the Committee may cause
payments to be withheld until the matter is decided by a court of competent
jurisdiction.

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

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

         1.5 "Committee" means the committee designated to administer the Plan
as described in Section 2.

         1.6 "Company" means Roto-Rooter Management Company or Roto-Rooter, Inc.

         1.7 "Compensation" means, for purposes of this Plan, the amount of
compensation paid to an Employee during each calendar month computed in
accordance with the definition of "Compensation" as set forth in the Retirement
and Savings Plan.

         1.8 "Deferred Compensation Benefit(s)" means the benefits described in
this Plan.

         1.9 "Deferred Compensation Plan" or "Plan" means this Roto-Rooter
Deferred Compensation Plan No. 2, as amended from time to time.

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         1.10 "Eligible Employee" means a management or highly compensated
Employee designated by the Board of Directors from time to time as eligible to
participate in the Plan. The Board of Directors may revoke this designation at
any time.

         1.11 "Employee" means any person who is employed by the Employer.

         1.12 "Employer" means the Company and any other entity which has
adopted this Plan with the authorization of the Company.

         1.13 "Entry Date" means the first day of each calendar month.

         1.14 "Participant" means each Eligible Employee who joins the Plan and
participates in the Plan.

         1.15 "Permanent Disability" means an Employee's termination of service
with the Employer due to a physical or mental disability which permanently
disables the Employee from performing the customary duties of the Employee's
regular job with the Employer.

         1.16 "Plan Year" means the twelve-month period beginning on January 1.

         1.17 "Retirement" means (a) normal retirement from employment with the
Employer at age 65; (b) early retirement from employment with the Employer from
age 55 to 65 with no fewer than 10 years of Service; or (c) postponed retirement
from employment with the Employer after age 65.

         1.18 "Retirement and Savings Plan" means the Roto-Rooter Retirement and
Savings Plan, as amended from time to time.

         1.19 "Valuation Date" means the last business day of each month.

SECTION 2. ADMINISTRATION

         2.1 PLAN ADMINISTRATOR. The Plan shall be administered by a Committee
whose members are designated from time to time by the Company. The Committee
shall consist of no fewer than three individuals.

         2.2 DUTIES OF PLAN ADMINISTRATOR. The Committee may establish such
rules and regulations, not inconsistent with the provisions of the Plan, as it
deems necessary for the proper administration of the Plan, and may amend or
revoke any rule or regulation so established. The Committee may make such
determinations and interpretations under or in connection with the Plan as it
deems necessary or advisable. Subject to the provisions of Section 8.5 of this
Plan, all such rules, regulations, determinations and interpretations shall be
binding and conclusive upon the Company, the Employer, their shareholders,
Employees, Participants, and upon their respective legal representatives,
beneficiaries, successors and assigns and upon all other persons claiming under
or through any of them.

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         2.3 METHOD OF ACTION. Any action required or permitted to be taken by
the Committee under this Plan may be taken in accordance with the applicable
provision(s) of the By-Laws of the Company.

SECTION 3. PARTICIPATION

         3.1 GENERAL. Each Eligible Employee who becomes a Participant is
eligible to receive benefits under the Plan.

         3.2 PARTICIPATION DATE. Each Employee who becomes an Eligible Employee
becomes a Participant on the Entry Date that coincides with or immediately
follows the date the Employee becomes an Eligible Employee.

SECTION 4. CONTRIBUTIONS

         The Employer shall establish on its books of account a reserve fund
equal to the value of all Plan benefits currently accrued in favor of
Participants. The entire cost of this Plan shall be paid from the general assets
of the Employer. It is the intent of the Employer to so pay benefits under the
Plan as they become due; provided, however, that the Employer may, in its sole
discretion, establish or cause to be established a separate trust, pursuant to a
trust agreement, and a separate trust account for each Participant and direct
that some or all of a Participant's benefits under the Plan be paid from the
general assets of the Employer which are transferred to such trust and held in
such trust as property of the Employer subject to the claims of the Employer's
creditors until such time as benefit payments pursuant to the Plan are made from
such assets in accordance with such trust agreement. Until any such payment is
so made, neither the Plan nor any Participant or Beneficiary shall have any
preferred claim on, or any beneficial ownership interest in, such assets. No
liability for the payment of benefits under the Plan shall be imposed upon any
officer, director, employee, or stockholder of the Employer or Company.

SECTION 5. PARTICIPANT ACCOUNTS; INVESTMENTS

         5.1 PARTICIPANT ACCOUNTS. The Committee will establish a separate
Account for each Participant. Each Participant's Account will be credited with
the annual benefit amount described in Section 6.1. The Committee may also
establish such Sub-Accounts as may be necessary to reflect specific investments
which are elected by a Participant pursuant to Section 5.3.

         5.2 STATEMENTS OF PARTICIPANTS' ACCOUNTS. The Committee shall cause to
be delivered or mailed to each Participant a statement setting forth the status
of the Participant's Account as of the end of the calendar quarter, or more
frequently as shall be determined by the Committee.

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         5.3 INVESTMENTS. In the event general assets of the Employer are
transferred to a separate trust account for a Participant as permitted under
Section 4, such Participant may make an investment election in the manner and
form prescribed by the Committee directing the manner in which amounts contained
in such separate trust account shall be invested; provided, however, that all
such elections shall be subject to the approval of the Employer and the Employer
has the right to restrict such investment to certain designated investment
funds. The portion of a Participant's trust account, if any, which is not
invested pursuant to the Participant's investment election hereunder shall be
invested in the trust in a manner to be determined by the Employer.

         5.4 INVESTMENT EXPERIENCE. In addition to crediting each Participant' s
Account with the annual benefit amount described in Section 6.1, each such
Account shall be adjusted as of each Valuation Date as follows:

                  (a) The portion, if any, of a Participant's Account which is
not contained in a separate trust account, shall be credited with interest at a
rate to be established by the Employer from time to time.

                  (b) The portion, if any, of a Participant's Account which is
contained in a separate trust account shall be credited or debited with the
investment earnings or investment losses, as the case may be, specifically
experienced by such Account.

SECTION 6. ANNUAL BENEFIT AMOUNTS

         6.1 ELECTIVE AND MATCHING BENEFITS.

                  (a) Each Participant who is a participant in the Retirement
and Savings Plan shall be entitled to make a salary reduction election as
described below. As of each Valuation Date, there will be credited to the
Account of each such Participant the amount elected by the Participant pursuant
to a salary reduction agreement executed by the Participant.

                  (b) The election under subsection (a) shall be made before the
beginning of each Plan Year. Such salary reduction contributions shall commence
with the first payment of Compensation made after the date on which such salary
reduction election is effective.

                  (c) As of each Valuation Date, the Account of each Participant
who makes the election under subsection (a) shall be credited with an amount
equal to the contribution which would have been allocated as a matching
contribution to the account of such Participant under the Retirement and Savings
Plan (without regard to the limitations under Code Section 401(m)) had the
Participant's salary reduction amount under subsection (a) been contributed to
the Retirement and Savings Plan.

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                  (d) As soon as practicable after the end of each Plan Year,
but not later than January 31 of the next ensuing year, the Employer shall
determine the maximum amount of salary reduction contributions which could have
been made by such Participant for such Plan Year under the Retirement and
Savings Plan consistent with the limitations under Code Sections 402(g) and
401(k)(3). The lesser of (i) such maximum amount or (ii) the amount of the
salary reduction contribution made by such Participant for such Plan Year under
subsection (a) shall be distributed to such Participant by no later than March
15 of such next ensuing year, unless such Participant makes the election
pursuant to subsection (e).

                  (e) As part of the election under subsection (a), a
Participant may also elect to have the amount described in subsection (d)
contributed to the Retirement and Savings Plan in which case the Employer shall
cause such amount (exclusive of any earnings thereon) to be contributed directly
to the Retirement and Savings Plan. In addition, the Employer's matching
contribution made pursuant to subsection (c) (exclusive of any earnings thereon)
attributable to the amount of salary reduction contributions contributed
directly to the Retirement and Savings Plan under subsection (d) shall be
contributed directly to the Retirement and Savings Plan, subject to the
limitations under Code Section 401(m).

                  (f) Notwithstanding any provision herein to the contrary, a
Participant shall not be eligible to make a salary reduction contribution
hereunder for any Plan Year unless such Participant has first elected to make
the maximum salary reduction contribution equal to 5% of Compensation under the
Retirement and Savings Plan for such Plan Year.

                  (g) For the Plan Year ending December 31, 1995, the Account of
each Participant shall be credited with the discretionary matching contribution
which would have been made on behalf of such Participant under the Retirement
and Savings Plan, but which the Participant has elected to be contributed to
this Plan.

         6.2 VESTING.

                  (a) A Participant shall at all times have a fully vested
interest in amounts credited to his Account which are attributable to salary
reduction contributions made by such Participant pursuant to Section 6.1(a). In
addition, a Participant will have a fully vested interest in all amounts
credited to his Account hereunder upon Retirement, severance while eligible for
Retirement, Permanent Disability or upon death prior to Retirement or Permanent
Disability.

                  (b) Except as provided in subsection (a), a Participant shall
have a vested interest in amounts credited to the Participant's Account
hereunder equal to the Participant's vested percentage of the Participant's
Employer Contributions Account under the Retirement and Savings Plan.

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                  (c) All amounts forfeited hereunder shall revert to the credit
of the Employer. A Participant shall be credited with a year of service for
vesting purposes for each Plan Year during which he completes at least 1,000
hours of service with the Employer.

SECTION 7. DISTRIBUTION OF BENEFITS

         7.1 TIME OF PAYMENT.

                  (a) The Participant shall elect the date on which the payment
of the vested portion of the Deferred Compensation Benefits shall commence
("Payment Date"). The vested portion of the Deferred Compensation Benefits shall
be valued and paid to the Participant or his Beneficiary commencing as of the
Valuation Date coinciding with or next following the Payment Date. The Payment
Date shall not be subject to modification unless one of the following events
occurs:

                           (1) The Participant makes an election to change the
Payment Date which is then in effect ("Modified Payment Date") provided that any
such subsequent election must occur (i) no earlier than 1 year after the date on
which the election then in effect was made and (ii) no less than 2 years prior
to the Payment Date then in effect.

                           (2) The Committee, in its sole and absolute
discretion, consents to the Participant's election of a Modified Payment Date.

                           (3) Section 7.3 applies.

                           (4) The Participant elects a Modified Payment Date
and the election does not satisfy (1), (2) or (3) above. In such event, the
Participant's Account shall be reduced by an amount equal to 10% of the value of
the Account as of the Valuation Date coincident with or next following the
Modified Payment Date.

                  (b) In no event shall the Payment Date or Modified Payment
Date be later than the date on which the Participant attains age 70.

                  (c) All elections available to the Participant hereunder shall
also be available to the Participant's Beneficiary upon the Participant's death.

         7.2 FORM OF PAYMENTS.

                  (a) The vested portion of the Deferred Compensation Benefits
will be paid to the Participant or his Beneficiary according to one of the
following methods, as elected by the Participant on or before the effective date
of the Participant's participation in the Plan ("Form of Payment Election"):

                           (1) A single lump sum payment.

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                           (2) Annual installments over a period not to exceed
the life expectancy of the Participant as of the Payment Date or Modified
Payment Date, whichever is applicable. The amount of each installment shall be
determined by dividing the Participant's Account balance as of the Valuation
Date immediately preceding the applicable installment payment date by the
remaining number of installment payments. Installment payments will be adjusted
for the Account's share of earnings or losses described in Section 5.4. If a
Participant dies before receiving all of the installment payments, then his
Beneficiary will receive the remaining installments.

                  (b) The Participant's Form of Payment Election shall not be
subject to modification unless one of the following events occurs:

                           (1) The Participant makes an election to change the
Form of Election Payment which is then in effect provided that any such
subsequent election must occur (i) no earlier than 1 year after the date on
which the election then in effect was made and (ii) no less than 2 years prior
to the Payment Date then in effect.

                           (2) The Committee, in its sole and absolute
discretion, consents to the Participant's election to change the Form of
Election Payment.

                           (3) Section 7.3 applies.

                           (4) The Participant elects to change the Form of
Election Payment and the election does not satisfy (1), (2) or (3) above. In
such event, the Participant's Account shall be reduced by an amount equal to 10%
of the value of the Account as of the Valuation Date coincident with or next
following the Payment Date or Modified Payment Date, whichever is applicable.

                  (c) All elections available to the Participant hereunder shall
also be available to the Participant's Beneficiary upon the Participant's death.

         7.3 WITHDRAWALS IN THE CASE OF UNFORESEEABLE EMERGENCIES.
Notwithstanding the preceding, a Participant may, during his employment with the
Employer, apply in the form and manner determined by the Committee to withdraw
any portion of his vested Account by reason of an unforeseeable emergency. An
unforeseeable emergency is a severe financial hardship to the Participant
resulting from a sudden and unexpected illness or accident of the Participant or
of a dependent (as defined in Code Section 152(a)) of the Participant, loss of
the Participant's property due to casualty, or other similar extraordinary and
unforeseeable circumstances arising as a result of events beyond the control of
the Participant. Withdrawals hereunder shall not be made to the extent that such
hardship is or may be relieved through reimbursement or compensation by
insurance or otherwise, by liquidation of the Participant's assets, to the
extent the liquidation of such assets would not itself cause severe financial
hardship, or by cessation of deferrals under the Plan. Withdrawals of amounts
because of an unforeseeable emergency must only be permitted to the extent
reasonably needed to satisfy the emergency need.

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SECTION 8. GENERAL PROVISIONS

         8.1 Nothing in the Plan shall confer upon any Employee any right to
continue in the employ of the Employer, or shall affect the right of the
Employer to terminate the employment of any Employee with or without cause.

         8.2 The Employer may make such provisions as it may deem appropriate
for the withholding of any taxes which the Employer determines it is required to
withhold in connection with any Deferred Compensation Benefit.

         8.3 Nothing in the Plan is intended to be a substitute for, or shall
preclude or limit the establishment or continuation of, any other plan, practice
or arrangement for the payment of compensation or fringe benefits to Employees
generally, or to any class or group of Employees, which the Employer now has or
may hereafter lawfully put into effect, including, without limitation, any
retirement, pension, thrift, group insurance, stock purchase, stock bonus or
stock option plan.

         8.4 The Plan may be amended or terminated by the Board of Directors at
any time in whole or in part; provided, however, that no such amendment or
termination shall adversely affect any Participant Account hereunder. Upon
termination of the Plan, each Participant will be entitled to a Deferred
Compensation Benefit equal to the Deferred Compensation Benefit to which the
Participant would be entitled had he been eligible for and retired on the date
the Plan terminated. Participants and Beneficiaries who, as of the date of Plan
termination, are otherwise entitled to receive Deferred Compensation Benefits
but have not yet received them will be entitled to receive those Deferred
Compensation Benefits. The Deferred Compensation Benefits described in this
Section will be paid at the time the Participant or Beneficiary would have been
entitled to receive them if the Plan had not terminated; provided, however, that
the Employer may accelerate the payment of all but not less than all of the
Deferred Compensation Benefits under the Plan, the payment of which would
otherwise be deferred.

         8.5 The Employer shall have all the powers and authorities as may be
necessary to carry out the provisions of the Plan, including the power and
authority to interpret and construe the provisions of the Plan, to make benefit
determinations and to resolve any disputes which arise under the Plan. Whenever
there is denied, whether in whole or in part, a claim for benefits under the
Plan filed by any person (herein referred to as the "Claimant"), the Committee
shall transmit a written notice of such decision to the Claimant, which notice
shall be written in a manner calculated to be understood by the Claimant and
shall contain a statement of the specific reasons for the denial of the claim
and a statement advising the Claimant that, within 60 days of the date on which
he receives such notice, he may obtain review of such decision in accordance
with the procedures hereinafter set forth. Within such 60-day period, the
Claimant or his authorized representative may request that the claim denial be
reviewed by the Board of Directors by filing with the Committee a written
request therefor, which request shall contain the following information:

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                  (a) the date on which the Claimant's request was filed with
the Committee; provided, however, that the date on which the Claimant's request
for review was in fact filed with the Committee shall control in the event that
the date of the actual filing is later than the date stated by the Claimant
pursuant to this paragraph;

                  (b) the specific portions of the denial of his claim which the
Claimant requests the Board of Directors to review;

                  (c) a statement by the Claimant setting forth the basis upon
which he believes the Board of Directors should reverse the previous denial of
his claim for benefits and accept his claim as made; and

                  (d) any written material (offered as exhibits) which the
Claimant desires the Board of Directors to examine in its consideration of his
position as stated pursuant to (c) above.

Within 60 days of the date determined pursuant to (a) above, the Company shall
conduct a full and fair review of the decision denying the Claimant's claim for
benefits. Within 60 days of the date of such hearing, the Company shall render
its written decision on review, written in a manner calculated to be understood
by the Claimant, specifying the reasons and Plan provisions upon which its
decision was based.

         8.6 No Participant or Beneficiary shall encumber or dispose of his
right to receive any Deferred Compensation Benefits.

         8.7 The obligation of the Employer to pay Deferred Compensation
Benefits merely constitutes the unsecured promise of the Employer to make
payments when due. No Participant or Beneficiary has any security interest in,
or a lien or prior claim upon, any Account or assets of the Employer. No Plan
provisions shall be construed so as to place any Account or other asset in trust
with the Employer for the benefit of a Participant, his Beneficiary, or his
estate.

         8.8 The provisions of the Plan shall not be construed as giving any
person, firm or corporation any legal or equitable right as against the
Employer, its officers, employees, or directors, except any rights specifically
provided for in the Plan or created in accordance with the terms of the Plan.

         8.9 Any Participant, regardless of age, whose employment with the
Employer is terminated for theft or embezzlement of Employer assets or for
accepting bribes from suppliers, or who resigns during the pendency or carrying
out of an investigation which establishes such conduct, shall forfeit all of his
Plan benefits.

         8.10 The invalidity or unenforceability of any particular provision of
the Plan shall not affect any other Plan provision. The Plan shall be construed
in all respects as if the invalid or unenforceable provision were omitted.

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         8.11 Masculine pronouns and similar words shall be read as the feminine
gender where appropriate. The singular form of words shall be read as plural
where appropriate.

         8.12 The Plan shall be governed and construed in accordance with the
laws of the State of Ohio.

         8.13 The Employer, in its sole discretion, may direct that the Account
of a Participant be directly transferred to any other non-qualified deferred
compensation plan and/or trust maintained by the Company or any Employer. The
Employer, in its sole discretion, may also accept the direct transfer from
another non-qualified deferred compensation plan and/or trust maintained by the
Company or any Employer of any cash or other assets held in such plan and/or
trust for the benefit of an Employee. In the event of the acceptance of any such
direct transfer, such cash and/or other assets shall be held in an Account for
the benefit of such Employee.

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                                  EXHIBIT 10.39

                         CADRE COMPUTER RESOURCES, INC.
                            2000 STOCK INCENTIVE PLAN

     1. NAME AND PURPOSE. The purpose of this Plan, which shall be known as the
"Cadre Stock Incentive Plan" (hereinafter referred to as the "Plan") is to
advance the interests of Cadre Computer Resources, Inc. (hereinafter referred to
as the "Company") by providing a material incentive for the continued services
of those key employees of the Company who make significant contributions toward
the Company's success and development by encouraging those key employees to
increase their proprietary interest in the Company.

         2. DEFINITIONS. For purposes of this Plan, the following terms when
capitalized shall have the meaning designated herein unless a different meaning
is plainly required by the context. Where applicable, the masculine pronoun
shall mean or include the feminine and the singular shall include the plural.

                 (a) "Affiliate" shall mean a corporation or other form of
business association of which shares (or other ownership interests) having 50
percent or more of the voting power are owned or controlled, directly or
indirectly, by the Corporation.

                 (b)  "Board" shall mean the Board of Directors of the
Company.

                 (c) "Effective Date" shall mean the date on which this Plan
shall become effective, as provided in paragraph 18 below.

                 (d) "Fair Market Value" as applied to any date, the last
trading price of a share of Common Stock on the principal stock exchange on
which the Common Stock is listed, or, if it is not so listed, as reported by the
National Association of Securities Dealers Automated Quotation System on such
date or, if no such sales were made on such date, on the next preceding date on
which there were sales of Common Stock on such exchange or market, as the case
may be; provided, however, that if the Common Stock is not so listed, the
determination as to fair market value of the Company's common stock under this
Plan shall be determined by an appraisal firm retained by the Board for this
purpose. Such evaluations shall be conducted periodically at the direction of
the Board.

                 (e) "Key Employee" shall mean an employee of the Company or of
an affiliate who in the opinion of the Board can contribute significantly to the
growth and successful operations of the Company. The grant of a stock incentive
to an employee by the Board shall be deemed a determination by the Board that
such employee is a Key Employee. For the purposes of this Plan a

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director or officer of the Company or of an affiliate shall be deemed an
employee regardless of whether or not such director or officer is on the payroll
of, or otherwise paid for services by, the Company or an affiliate.

                 (f) "Option" shall mean an option to purchase shares of
Common Stock.

                 (g) "Participant" shall mean a Key Employee selected by the
Board to receive stock incentives granted under this Plan.

                 (h) "Stock Award" shall mean an issuance or transfer of shares
of Common Stock at the time the Stock Incentive is granted or as soon thereafter
as practicable, or an undertaking to issue or transfer such shares in the
future, including, without limitation, such an issuance, transfer or undertaking
with respect to Performance Units.

                 (i) "Stock Incentive" shall mean a stock incentive granted
under this Plan in one of the forms provided for in Section 3.

         3.  ADMINISTRATION; SELECTION OF PARTICIPANTS.

                 (a)  The Plan shall be administered by the Board.

                 (b) The Board shall select the Participants from among the Key
Employees and shall grant stock incentives to the Participants subject to the
provisions of the Plan.

                 (c) Subject to the express provisions of this Plan, the Board
shall have authority to adopt administrative regulations and procedures which
are consistent with the terms of this Plan; to adopt and amend such agreements
as they deem advisable; to determine the terms and provisions of such agreements
(including the number of shares with respect to which stock incentives are
granted to a Participant, the price for shares and the date or dates when the
incentives may be exercised)--which terms shall comply with the requirements of
Paragraphs 6 and 7 below; to construe and interpret such agreements; to impose
such limitations and restrictions as are deemed necessary or advisable by
counsel for the Company so that compliance with the Federal securities laws and
with the securities laws of the various states may be assured; and to make all
other determinations necessary or advisable for administering this Plan. A
decision by a majority of the Board shall govern all actions of the Board; such
decision may be made either at a meeting of the Board at which a majority of the
members are present or without a meeting by a writing signed by a majority of
the Board. All decisions and interpretations made by the Board shall be binding
and conclusive on the Company and all Participants, their legal representatives
and beneficiaries.

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                 (d) The Board may designate any officers or employees of the
Company to assist the Board in the administration of this Plan and to execute
documents on its behalf, and the Board may delegate to them such other
ministerial and limited discretionary duties as it sees fit.

         4.  GRANTS OF STOCK INCENTIVES:

                 (a) Subject to the provisions of this Plan, the Board may at
any time, or from time to time, grant Stock Incentives under this Plan to, and
only to, Key Employees.

                 (b)  Stock Incentives may be granted in the following
forms:

                      (i)   a Stock Award, or
                      (ii)  an Option, or
                      (iii) a combination of a Stock Award and an Option.

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

         5.  SHARES SUBJECT TO THE PLAN.

                 (a) The maximum number shares to be issued and delivered by the
Company upon exercise of stock incentives granted under this Plan are 415,000
shares of the Company's common stock provided that no more than 215,000 shares
may be issued in the form of Stock Awards, all said shares to be either
authorized but unissued shares or treasury shares, in the discretion of the
Board.

                 (b) 185,000 shares maximum shall be issued to directors of the
Company or of an Affiliate under the Plan, subject; however, to adjustment as
provided in Paragraph 13 below. No stock incentive may be granted under this
Plan which could cause such maximum limit to be exceeded.

                 (c) Provided the common stock of the Company is not listed or
quoted as provided in Section 1(e), the Company shall have the right commencing
six months after grant to purchase from the holder any or all of the shares of
the Company's common stock which may be issued under this Plan for a price equal
to the fair market value of such shares on the date of purchase by the Company.

                 (d) If any shares of Common Stock subject to a Stock Incentive
shall not be issued or transferred and shall cease to be issuable or
transferable because of the termination, in whole or in part, of such Stock
Incentive or for any other reason, or

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if any such shares shall, after issuance or transfer, be reacquired by the
Corporation or an Affiliate because of an employee's failure to comply with the
terms and conditions of a Stock Incentive, the shares not so issued or
transferred, or the shares so reacquired by the Corporation or an Affiliate
shall no longer be charged against any of the limitations provided for in
paragraphs (a) or (b) of this Section 5 and may again be made subject to Stock
Incentives.

         6.  STOCK AWARDS.  Stock Incentives in the form of Stock
Awards shall be subject to the following provisions:

                 (a) A Stock Award shall be granted only in payment of incentive
compensation that has been earned or as incentive compensation to be earned,
including, without limitation, incentive compensation awarded concurrently with
or prior to the grant of the Stock Award.

                 (b) For the purposes of this Plan, in determining the value of
a Stock Award, all shares of Common Stock subject to such Stock Award shall be
valued at not less than 100 percent of the Fair Market Value of such shares on
the date such Stock Award is granted, regardless of whether or when such shares
are issued or transferred to the Key Employee and whether or not such shares are
subject to restrictions which affect their value.

                 (c) Shares of Common Stock subject to a Stock Award may be
issued or transferred to the Key Employee at the time the Stock Award is
granted, or at any time subsequent thereto, as the Board shall determine. In the
event that any such issuance or transfer shall not be made to the Key Employee
at the time the Stock Award is granted, the Board may provide for payment to
such Key Employee, in cash from time to time or at the time or times such shares
shall be issued or transferred to such Key Employee, of amounts not exceeding
the dividends which would have been payable to such Key Employee in respect of
such shares (as adjusted under Section 13) if they had been issued or
transferred to such Key Employee at the time such Stock Award was granted.

                 (d) A Stock Award shall be subject to such terms and
conditions, including, without limitation, restrictions on sale or other
disposition of the Stock Award or of the shares issued or transferred pursuant
to such Stock Award, as the Board may determine; provided, however, that upon
the issuance or transfer of shares pursuant to a Stock Award, the recipient
shall, with respect to such shares, be and become a stockholder of the
Corporation fully entitled to receive dividends, to vote and to exercise all
other rights of a stockholder except to the extent otherwise provided in the
Stock Award. Each Stock Award shall be evidenced by a written instrument in such
form as the Board shall determine, provided the Stock Award is consistent with
this Plan and incorporates it by reference.

                                       4
<PAGE>   5

         7.  TERMS OF OPTIONS.  Options granted under this Plan shall
be non-qualified stock options and shall contain such terms as
the Board shall determine subject to the following limitations
and requirements.

                 (a) Option price: The option price for shares of the Company's
common stock shall be the fair market value of such shares on the effective date
of the grant of such option.

                 (b) The participant shall have the right to require the Company
to repurchase shares purchased pursuant to this Plan upon written notice to the
Board. The effective date of such repurchase shall be the first stock valuation
date which follows such notice and a six month period from the date of exercise
of the option giving rise to the shares to be repurchased.

                 (c) Period within which option may be exercised: Each option
granted under this Plan shall be exercisable in full or in part six months after
it is granted, as the Board shall determine, and shall terminate (become
non-exercisable) not later than ten (10) years after the effective date of the
grant of such option.

                 (d) Unless otherwise provided in the Option, an Option, to the
extent it is or becomes exercisable, may be exercised at any time in whole or in
part until the expiration or termination of the Option. Any term or provision in
any outstanding Option specifying when the Option is exercisable or that it be
exercisable in installments may be modified at any time during the life of the
Option by the Board, provided, however, no such modification of an outstanding
Option shall, without the consent of the optionee, adversely affect any Option
theretofore granted to him.

                 (e) Termination of option by reason of termination of
employment: If a Participant's employment with the Company or an Affiliate
terminates, all options granted under this Plan to such Participant shall
terminate, except in the following circumstances:

                 (f) If termination of employment was due to retirement under
the provisions of any retirement plan of the Company or an Affiliate or was
because of permanent disability, such option may be exercised on or before the
earlier of the expiration of the option or three (3) months following such
termination of employment.

                         (ii)  If termination of employment was due to the
death of a Participant who was an employee of the Company or an Affiliate at the
time of his death, such options may be exercised on or before the earlier of the
expiration of the option or one (1) year following the date of death.

                                       5
<PAGE>   6

                 (g) Each Option shall be exercisable during the life of the
optionee only by him or a transferee or assignee permitted by paragraph (i) of
this Section (7) and, after his death, only by his estate or by a person who
acquired the right to exercise the Option pursuant to one of the provisions of
paragraph (i) of this Section (7). An Option, to the extent that it shall not
have been exercised, shall terminate when the optionee ceases to be an employee
of the Corporation or an Affiliate, unless he ceases to be an employee because
of his resignation with the consent of the Board (which consent may be given
before or after resignation), or by reason of his death, incapacity or
retirement under a retirement plan of the Corporation or an Affiliate. Except as
provided in the next sentence, if the optionee ceases to be an employee by
reason of such resignation, the Option shall terminate three months after he
ceases to be an employee. If the optionee ceases to be an employee by reason of
such death, incapacity or retirement, or if he should die during the three-month
period referred to in the preceding sentence, the Option shall terminate fifteen
months after he ceases to be an employee. Where an Option is exercised more than
three months after the optionee ceased to be an employee, the Option may be
exercised only to the extent it could have been exercised three months after he
ceased to be an employee. A leave of absence for military or governmental
service or for other purposes shall not, if approved by the Board, be deemed a
termination of employment within the meaning of this paragraph (d); provided,
however, that an Option may not be exercised during any such leave of absence.
Notwithstanding the foregoing provisions of this paragraph (d) or any other
provision of this Plan, no Option shall be exercisable after expiration of the
term for which the Option was granted, which shall in no event exceed ten years.
Where an Option is granted for a term of less than ten years, the Board, may, at
any time prior to the expiration of the option, extend its term for a period
ending not later than ten years from the date the Option was granted.

                 (h) Total exercise: An optionee may not elect to exercise less
than 50 percent of any exercisable portion of an option granted to him under
this Plan.

                 (i)  No Option nor any right thereunder may be assigned
or transferred by the optionee except:

                           (i)  by will or the laws of descent and
distribution;
                             (ii) pursuant to a qualified domestic relations
order as defined by the Internal Revenue Code of 1986, as amended, or by the
Employee Retirement Income Security Act of 1974, as amended, or the rules
thereunder;

                             (iii) by an optionee who, at the time of the
transfer, is not subject to the provisions of Section 16 of the

                                       6
<PAGE>   7

1934 Act, provided such transfer is to, or for the benefit of (including but not
limited to trusts for the benefit of), the optionee's spouse or lineal
descendants of the optionee's parents; or

                           (iv) by an optionee who, at the time of the
transfer, is subject to the provisions of Section 16 of the 1934 Act, to the
extent, if any, such transfer would be permitted under Securities and Exchange
Commission Rule 16b-3 or any successor rule thereto, as such rule or any
successor rule thereto may be in effect at the time of the transfer.

                If so provided in the Option or if so authorized by the Board
and subject to such terms and conditions as are specified in the Option or by
the Board, the Corporation may, upon or without the request of the holder of the
Option and at any time or from time to time, cancel all or a portion of the
Option then subject to exercise and either (i) pay the holder an amount of money
equal to the excess, if any, of the Fair Market Value, at such time or times, of
the shares subject to the portion of the Option so canceled over the aggregate
purchase price of such shares, or (ii) issue or transfer shares of Common Stock
to the holder with a Fair Market Value, at such time or times, equal to such
excess.

                (j) Right to cancel: The Company shall have the right to cancel
all but not less than all unexercised options granted under the Plan at any time
prior to termination of the Plan upon payment to each optionee of an amount
equal to the remainder obtained (not less than zero) by subtracting the fair
market value of the shares subject to the option on the effective date of the
grant of the option from the fair market value of such shares on the date of
cancellation.

                (k) The maximum aggregate number of Stock Incentives in the form
of Options which may be granted to an individual employee of the Corporation or
an Affiliate in any calendar year shall not exceed 100,000 Options.

         8. PERIOD FOR GRANTING OPTIONS. No options shall be granted under this
Plan subsequent to the tenth anniversary of the day prior to the date on which
this Plan is approved and adopted by the majority vote of the stockholders of
the Company.

         9. COMBINATIONS OF STOCK AWARDS AND OPTIONS. Stock Incentives
authorized by paragraph (b)(iii) of Section 4 in the form of combinations of
Stock Awards and Options shall be subject to the following provisions:

                (a) A Stock Incentive may be a combination of any form of Stock
Award with any form of Option; provided, however, that the terms and conditions
of such Stock Incentive pertaining to a

                                       7
<PAGE>   8

Stock Award are consistent with Section 6 and the terms and conditions of such
Stock Incentive pertaining to an Option are consistent with Section 7.

                (b) Such combination Stock Incentive shall be subject to such
other terms and conditions as the Board may determine, including, without
limitation, a provision terminating in whole or in part a portion thereof upon
the exercise in whole or in part of another portion thereof. Such combination
Stock Incentive shall be evidenced by a written instrument in such form as the
Board shall determine, provided it is consistent with this Plan and incorporates
it by reference.

         10. METHOD OF EXERCISE. An incentive granted under this Plan may be
exercised only by written notice to the Board, signed by the Participant or in
the event of his death, by such other person as is entitled to exercise such
incentive. The notice of exercise shall be accompanied by the payment in cash of
the full option price for the shares. A certificate or certificates for the
shares of common stock of the Company purchased through the exercise of an
option shall be issued in regular course after the exercise of the option and
payment therefor. During the option period no person entitled to exercise any
option granted under this Plan shall have any of the rights or privileges of a
stockholder with respect to any shares of stock issuable upon exercise of such
option until certificates representing such shares shall have been issued and
delivered.

         11. NO EFFECT UPON EMPLOYMENT STATUS. The fact that an employee has
been designated a Key Employee or selected as a Participant shall not limit or
otherwise qualify the right of the Company or an Affiliate to terminate his
employment at any time.

         12. IMPLIED CONSENT OF PARTICIPANTS. Every Participant, by his
acceptance of an option under this Plan, shall be deemed to have consented to be
bound, on his own behalf and on behalf of his heirs, assigns, and legal
representatives, by all of the terms and conditions of this Plan.

         13. SHARE ADJUSTMENTS. In the event there is any change in the shares
of the Company's common stock resulting from stock splits, stock dividends,
combinations or exchanges of shares, or other similar capital adjustments,
equitable proportionate adjustments shall be made by the Board in (1) the number
of shares available for incentives under this Plan, (2) the number of shares
subject to incentives granted under this Plan, and (3) the price of such shares.

         14. MERGER, CONSOLIDATION, OR SALE OF ASSETS. In the event the Company
shall consolidate with, merge into, or transfer all or substantially all of its
assets to another corporation or

                                       8
<PAGE>   9

corporations (herein referred to as the "successor employer corporation"), such
successor employer corporation may obligate itself to continue this Plan and to
assume all obligations under the Plan. In the event that such successor employer
corporation does not obligate itself to continue this Plan as above provided,
this Plan shall terminate upon such consolidation, merger, or transfer, and any
option previously granted hereunder shall vest and shall be purchased by Company
for the difference between the option price and the fair market value of Common
Stock on the date of such consolidation, merger, or transfer of assets.

         15. COMPANY RESPONSIBILITY. All expenses of this Plan, including the
cost of maintaining records, shall be borne by the Company, except as provided
in Paragraph 16 below.

         16. SECURITIES LAWS. The Board shall take all necessary or appropriate
action to ensure that all incentive grants and all exercises thereof under this
Plan are in full compliance with all applicable Federal and state securities
laws.

         No shares of common stock shall be issued or transferred pursuant to a
stock incentive unless and until all legal requirements applicable to the
issuance or transfer of such shares have, in the opinion of counsel to the
company, been complied with. In connection with any such issuance or transfer
the person requiring the shares shall, or requested by the company, give
assurances, satisfactory to counsel for the company, that the shares are being
acquired for investment and not with the view to resale or distribution thereof
and assurances in respect of such other matters as the company may deem
desirable to assure compliance with all applicable legal requirements.

         17. AMENDMENT AND TERMINATION. The Board may terminate this Plan at any
time, and may amend the Plan at any time or from time to time, without obtaining
any approval of the Company's stockholders; except that the Plan may not be
amended without the consent of the Company's stockholders (1) to increase the
aggregate number of shares issuable under the Plan (excepting proportionate
adjustments made under Paragraph 13 to give effect to stock splits, etc.); (2)
to change the incentive price of optioned shares (excepting proportionate
adjustments made under Paragraph 13); (3) to change the requirement that the
price per share of common stock covered by an incentive granted under this Plan
not be less than 100 percent of the fair market value of the shares of the
Company's common stock on the date such incentive is granted; (4) to extend the
time within which incentives may be granted or the time within which a granted
incentive may be exercised; or (5) to change, without the consent of the
Participant (or his, or his estate's, legal representative), any incentive
previously granted to him under the Plan. If the Plan is terminated, any
unexercised incentive shall continue to be

                                       9
<PAGE>   10

exercisable in accordance with its terms, except as provided in
Paragraph 14 above.

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

         18. EFFECTIVE DATE. This Plan shall become effective as of the date it
is approved and adopted by majority vote of the stockholders of the Company and
the Board has approved. If not so approved and adopted, this Plan shall be of no
force and effect.

                                       10

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