Document:

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                                                                    EXHIBIT 4.2

                         REGISTRATION RIGHTS AGREEMENT

         This Registration Rights Agreement (this "AGREEMENT") is made and
entered into as of the 4th day of December, 2003, by and among HEICO
Corporation, a Florida corporation (the "COMPANY"), and SMT Partners, a Texas
partnership (along with its permitted assigns, the "SELLERS").

                                    RECITALS

         A.     SMT Partners and Sierra Microwave Technology, LLC, a Delaware
limited liability company (the "BUYER") and an indirect subsidiary of the
Company, are parties to that certain Asset Purchase Agreement, dated the date
hereof (the "ASSET PURCHASE AGREEMENT");

         B.     Pursuant to the terms of the Asset Purchase Agreement, the
Company has issued to the Sellers 242,522 shares of Class "A" common stock
("HEICO STOCK"), no par value, of the Company (the "REGISTRABLE SECURITIES");
and

         C.     Pursuant to the terms of the Asset Purchase Agreement, the
Company has agreed to grant the Sellers certain registration rights with
respect to the Registrable Securities.

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

SECTION 1.      DEFINITIONS.

         For purposes of this Agreement, the following definitions shall apply:

         (a)    "BUSINESS DAY" shall mean any day on which commercial banks are
not authorized or required to close in the United States.

         (b)    The terms "REGISTER," and "REGISTRATION" refer to registration
under the Securities Act of 1933, as amended (the "ACT"), effected by preparing
and filing a registration statement in compliance with the Act, and the
declaration or ordering of effectiveness of such registration statement or
amendment thereto.

SECTION 2.      REGISTRATION RIGHTS.

         (a)    The Company shall, as expeditiously as reasonably possible, use
its commercially reasonable efforts to effect the registration under the Act of
such Registrable Securities; provided however, that the holders of a majority
in interest of the Registrable Securities may permit the Company to discontinue
any registration at any time prior to the effective date of such registration.
If any Seller proposes to distribute the Registrable Securities in an
underwritten offering, then the Company shall have the right to select the lead
book running underwriter, and such Seller shall have the right to select one
co-managing underwriter reasonably acceptable to the Company; provided however
that if more than one Seller proposes to distribute the Registrable Securities
in an underwritten offering, then the Company shall have the right to

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select the lead book running underwriter, and such Sellers shall collectively
have the right to select one co-managing underwriter reasonably acceptable to
the Company.

         (b)    The Company may suspend the effectiveness of any such
registration statement in the event, and for such period of time as, such a
suspension is required by the rules and regulations of the Securities and
Exchange Commission ("SEC") as applied to the Company, and may suspend use of
the prospectus included in the Registration Statement if such prospectus ceases
to meet the requirements of Section 10 of the Act. The Company will immediately
advise the Sellers of any such suspension, and will use its commercially
reasonable efforts to cause such suspension to terminate at the earliest
possible date. The Sellers agree that following receipt of any such notice, and
until such suspension is terminated, the Sellers will not make use of the
suspended prospectus and will make no sales requiring delivery of such
prospectus.

         (c)    Whenever required under this Section to effect the registration
of any Registrable Securities, the Company shall, as expeditiously as
reasonably possible:

                (i)     Prepare and file with the SEC a registration statement
(the "REGISTRATION STATEMENT") with respect to such Registrable Securities and
use its commercially reasonable efforts to cause such registration to become
effective as provided in Section 2(a) above, and keep such Registration
Statement effective until the earlier of (i) the Registrable Securities have
been disposed of pursuant to an effective registration statement, (ii) the
Registrable Securities have been sold in a transaction exempt from the
registration and prospectus delivery requirements of the Act so that all
transfer restriction and restrictive legends with respect thereto are removed
upon the consummation of such sale or (iii) the Registrable Securities have
been distributed to the public pursuant to Rule 144 promulgated under the Act
(or any similar rule or regulation promulgated by the Commission) ("RULE 144").

                (ii)    Prepare and file with the SEC such amendments and
supplements to such Registration Statement and the prospectus used in
connection with such Registration Statement as may be necessary to comply with
the provisions of the Act with respect to the disposition of all securities
covered by such Registration Statement and notify the holders of the filing and
effectiveness of such Registration Statement and any amendments or supplements.

                (iii)   Furnish to the Sellers such number of copies of a
current prospectus conforming with the requirements of the Act, copies of the
Registration Statement, any amendment or supplement thereto and any documents
incorporated by reference therein and such other documents as the Sellers may
reasonably require in order to facilitate the disposition of Registrable
Securities owned by the Sellers.

                (iv)    Use its commercially reasonable efforts to register and
qualify the securities covered by such Registration Statement under such
securities or "Blue Sky" laws of such jurisdictions in the United States as
shall be reasonably requested by the Sellers and keep such registration or
qualification effective as long as required to permit sale of Registrable
Securities thereunder, provided that the Company shall not be required in
connection therewith

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or as a condition thereto to qualify to do business or to file a general
consent to service of process in any such states or jurisdictions.

                (v)     Notify the Sellers immediately of the happening of any
event as a result of which the prospectus included in such Registration
Statement, as then in effect, includes an untrue statement of material fact or
omits to state a material fact required to be stated therein or necessary to
make the statements therein not misleading in light of the circumstances then
existing, and use its commercially reasonable efforts to promptly update and/or
correct such prospectus.

                (vi)    List the Registrable Securities covered by such
Registration Statement on any securities exchange or national market in the
United States on which the Registrable Securities are then listed.

         (d)    Notwithstanding anything to the contrary set forth herein, the
Company shall have no obligations to register any Registrable Securities if the
Sellers are eligible to sell any of the Registrable Shares during the one year
after the date hereof.

SECTION 3.        ALLOCATION OF SECURITIES INCLUDED IN REGISTRATION STATEMENT.

         In the case of a registration pursuant to the second sentence of
Section 2(a), if the managing underwriter of such offering shall advise the
Company and the Sellers in writing that the total amount of securities
requested to be included therein exceeds the amount of securities which can be
sold in such offering or the amount of securities which can be sold in such
offering at the price at which securities could be sold without such inclusion,
the Company shall include in such registration: (i) first, all Registrable
Securities of the Sellers, (ii) second, all shares of Common Stock proposed to
be sold by the Company and (iii) third, according to such priorities as the
Company may agree with the holders of other securities seeking to participate
in any registration.

SECTION 4.        LIMITATIONS ON SALE OR DISTRIBUTION OF SECURITIES.

         (a)    If a registration under this Agreement shall be in connection
with an underwritten public offering, the Sellers shall be deemed to have
agreed by acquisition of the Registrable Securities not to effect any public
sale or distribution (including the filing of a Form 144 indicating an
intention to sell or making any sale pursuant to Rule 144 under the Act) of any
Registrable Securities and not to effect any such public sale or distribution
of any other equity security of the Company or of any security convertible into
or exchangeable or exercisable for any equity security of the Company (other
than as part of such underwritten public offering) within 30 days before the
expected effective date of the Registration Statement (as determined by the
Company in its sole discretion) until 180 days after the effective date of such
Registration Statement.

         (b)    Except pursuant to a firm commitment underwriting, the sale of
the Registrable Securities must be conducted by the Sellers in accordance with
the following procedures (the "SALE PROCEDURES"): If a Seller provides the
Company with a written notice of its intent to sell

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any Registrable Securities, then within three business days following the
receipt of such notice, the Company shall designate in writing to such Seller a
securities broker (the "BROKER") to sell the Registrable Securities, on behalf
of such Seller. Each Seller agrees to only sell the Registrable Securities by
placing a standing order to sell (the "SELL ORDER") with the Broker no more
than 10,000 shares of the HEICO Stock. The Sell Order shall instruct the Broker
to sell the HEICO Stock at the best available market prices, in the Broker's
judgment, during the 14-day period following the date such Seller places the
Sell Order (the "SALE PERIOD"). On the date on which all of the shares of HEICO
Stock covered by the Sell Order have been sold by the Broker, such Seller may
provide an additional Sell Order to the Broker in accordance with the
provisions of this Section; provided, however, that the aggregate number of
shares of HEICO Stock that may be sold by all of the Sellers pursuant to this
paragraph shall not exceed 25,000 shares during any five trading day period.

SECTION 5.        INFORMATION.

         The Sellers will furnish to the Company in connection with any
registration under this Agreement such information regarding themselves, the
number of shares of Registrable Securities owned by each Seller and the number
of shares to be registered, the number of shares or amount of other securities
of the Company held by the Sellers, the intended method of disposition of such
Registrable Securities as shall be reasonably required to effect the
registration of the Registrable Securities held by such holder of Registrable
Securities.

SECTION 6.        INDEMNIFICATION

         (a)    The Company shall indemnify, defend and hold harmless each
Seller (each, an "INDEMNIFIED PARTY") from and against, and shall reimburse
such indemnified party with respect to, any and all claims, suits, demands,
causes of action, losses, damages, liabilities, costs or expenses
("LIABILITIES") to which such indemnified party may become subject under the
Act or otherwise, arising from or relating to (A) any untrue statement or
alleged untrue statement of any material fact contained in such Registration
Statement, any prospectus contained therein or any amendment or supplement
thereto, or (B) the omission or alleged omission to state therein a material
fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances in which they were made, not misleading;
provided, however, that the Company shall not be liable in any such case to the
extent that any such Liability arises out of or is based upon an untrue
statement or omission so made in conformity with information furnished by such
indemnified party specifically for use in the Registration Statement; provided
further, that the Company shall not be liable in any such case to the extent
that any such Liability arises out of or is based upon an untrue statement or
alleged untrue statement or omission or alleged omission made in any
preliminary prospectus if (i) a Seller under an obligation to send or deliver a
copy of the prospectus with or prior to the delivery of written confirmation of
the sale of Registrable Securities to the person asserting such Liability who
purchased such Registrable Securities which are the subject thereof from such
Seller failed to do so and (ii) the prospectus would have corrected such untrue
statement or omission; and provided further, that the Company shall not be
liable in any such case to the extent that any Liability arises out of or is
based upon

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an untrue statement or alleged untrue statement or omission or alleged omission
in the prospectus, if such untrue statement or alleged untrue statement,
omission or alleged omission is corrected in an amendment or supplement to the
prospectus and if, having previously been furnished by or on behalf of the
Company with copies of the prospectuses so amended or supplemented and having
been obligated to deliver such prospectuses, such Seller thereafter failed to
deliver such prospectus as so amended or supplemented, prior to or concurrently
with the sale of Registrable Securities to the person asserting such Liability
who purchased such Registrable Securities which are the subject thereof from
such Seller.

         (b)    The Sellers shall, jointly and severally, indemnify, defend and
hold harmless the Company, and its officers, directors, employees, agents,
partners, or controlling persons (within the meaning of the Act) (each, an
"INDEMNIFIED PARTY") from and against, and shall reimburse such indemnified
party with respect to, any and all Liabilities to which such indemnified party
may become subject under the Act or otherwise, arising from or relating to (A)
any untrue statement or alleged untrue statement of any material fact contained
in such Registration Statement, any prospectus contained therein or any
amendment or supplement thereto, or (B) the omission or alleged omission to
state therein a material fact required to be stated therein or necessary to
make the statements therein, in light of the circumstances in which they were
made, not misleading; provided, that the Sellers will be liable in any such
case to the extent, and only to the extent, that any such Liability arises out
of or is based upon an untrue statement or alleged untrue statement or omission
or alleged omission made in such Registration Statement, prospectus or
amendment or supplement thereto in reliance upon information furnished by the
Sellers specifically for use in the Registration Statement.

         (c)    Promptly after receipt by any indemnified party of notice of the
commencement of any action, such indemnified party shall, if a claim in respect
thereof is to be made against another party (the "INDEMNIFYING PARTY")
hereunder, notify such party in writing thereof, but the omission so to notify
shall not relieve the indemnifying party from any Liability which it may have
to the indemnified party other than under this section and shall only relieve
it from any Liability which it may have to the indemnified party under this
section if and to the extent it is actually prejudiced by such omission. In
case any such action shall be brought against any indemnified party and such
indemnified party shall notify the indemnifying party of the commencement
thereof, the indemnifying party shall be entitled to participate in and, to the
extent it shall wish, to assume and undertake the defense thereof with counsel
reasonably satisfactory to such indemnified party, and, after notice from the
indemnifying party to the indemnified party of its election so to assume and
undertake the defense thereof, the indemnifying party shall not be liable to
the indemnified party under this section for any legal expenses subsequently
incurred by the indemnified party in connection with the defense thereof other
than reasonable costs of investigation and of liaison with counsel so selected,
provided, however, that if the defendants in any such action include both the
indemnifying party and such indemnified party and the indemnified party shall
have reasonably concluded based upon a written opinion of counsel that there
may be reasonable defenses available to it which are different from those
available to the indemnifying party or if the interests of the indemnified
party reasonably may be deemed to conflict with the interests of the
indemnifying party, the indemnified party shall have the right to select a
separate counsel and to assume such legal

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defenses and otherwise to participate in the defense of such action, with
(subject to the following sentence) the reasonable expenses and fees of such
separate counsel and other reasonable expenses related to such participation to
be reimbursed by the indemnifying party as incurred. If the Company is the
indemnifying party it shall pay the reasonable expenses and fees of only one
separate counsel whose selection is approved by the largest group of similarly
situated indemnified parties as measured by the aggregate value of securities
registered by such group. Any indemnified party who chooses not to be
represented by the foregoing separate counsel shall be entitled, at its own
expense, to be represented by counsel of its own selection.

SECTION 7.        REGISTRATION EXPENSES.

         In connection with any registration pursuant to this Agreement, the
Company will, whether or not any registration pursuant to this Agreement shall
become effective, from time to time promptly upon receipt of bills or invoices
relating thereto, pay all expenses, other than Selling Expenses (as hereinafter
defined), incident to the Company's performance of or compliance with this
Agreement (the "REGISTRATION EXPENSES"), including without limitation all
registration, filing and NASD fees, fees and expenses of compliance with
securities or blue sky laws, word processing, duplicating and printing
expenses, messenger and delivery expenses, fees and disbursements of counsel
for the Company and the Company's independent public accountants (other than
any expenses related to a "cold comfort" letter) and other persons retained by
the Company. "Selling Expenses" means all fees and expenses of the Sellers'
counsel, financial advisors and accountants, fees and expenses related to a
"cold "comfort" letter and underwriting discounts and commissions applicable to
the Registrable Securities to be sold by the Sellers, shall be paid by the
Sellers. In connection with any registration pursuant to this Agreement, the
Sellers will, whether or not any registration pursuant to this Agreement shall
become effective, from time to time promptly upon receipt of bills or invoices
relating thereto, pay all Selling Expenses.

SECTION 8.        MISCELLANEOUS.

         (a)    Notices.

                (i)     All notices, requests, demands, or other communications
required or permitted hereunder shall be in writing and shall be deemed to have
been duly given upon actual receipt, or upon the expiration of four days after
the date of mailing, fully pre-paid, registered or return receipt requested, to
the parties at the following addresses:

                If to the Company:            HEICO Corporation
                                              825 Brickell Bay Drive, Suite 1644
                                              Miami, Florida 33131
                                              Attention: Mr. Victor Mendelson
                                                         General Counsel
                                              Telecopy No. (305) 374-6742

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                                              With a copy to:

                                              Akerman Senterfitt
                                              One Southeast Third Avenue
                                              28th Floor
                                              Miami, Florida 33131-1714
                                              Attention:  Carl Roston
                                              Telecopy No. (305) 374-5095

                  If to the Sellers:          c/o SMT Partners
                                              One Sierra Way
                                              Georgetown, TX 78626
                                              Telecopy No. (512) 869-2430]

                                              Attn: Troy J. Rodriguez

                                              With a copy to:

                                              Winston Krause, Esq.
                                              P.O. Box 5399
                                              Austin, TX 78763
                                              Telecopy No. (512) 477-6808

                (ii)   Any party may change the address to which notices,
requests, demands or other communications to such party shall be delivered or
mailed by giving notice thereof to the other parties hereto in the manner
provided herein.

         (b)    Counterparts; Interpretation. This Agreement may be executed in
any number of counterparts, each of which shall be deemed an original, and all
of which shall constitute one and the same instrument. This Agreement
supersedes all prior discussions and agreements between the parties with
respect to the subject matter hereof, and this Agreement contains the sole and
entire agreement among the parties with respect to the matters covered hereby.
This Agreement shall not be altered or amended except by an instrument in
writing signed by or on behalf of all of the parties hereto. No ambiguity in
any provision hereof shall be construed against a party by reason of the fact
it was drafted by such party or its counsel. For purposes of this Agreement:
"HEREIN", "HEREBY", "HEREUNDER", "HEREWITH", "HEREAFTER" and "HEREINAFTER"
refer to this Agreement in its entirety, and not to any particular subsection
or paragraph. References to "INCLUDING" means including without limiting the
generality of any description preceding such term. Nothing expressed or implied
in this Agreement is intended, or shall be construed, to confer upon or give
any person other than the parties hereto any rights or remedies under or by
reason of this Agreement.

         (c)    Governing Law. The provisions of this Agreement shall be
governed by and construed in accordance with the laws of the State of Florida
(excluding any conflict of law rule

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or principle that would refer to the laws of another jurisdiction). Each party
hereto irrevocably submits to the jurisdiction of the Circuit Court of the
State of Florida, Miami-Dade County, in any action or proceeding arising out of
or relating to this Agreement, and each party hereby irrevocably agrees that
all claims in respect of any such action or proceeding must be brought and/or
defended in such court; provided, however, that matters which are under the
exclusive jurisdiction of the Federal courts shall be brought in the Federal
District Court for the Southern District of Florida. Each party hereto consents
to service of process by any means authorized by the applicable law of the
forum in any action brought under or arising out of this Agreement, and each
party irrevocably waives, to the fullest extent each may effectively do so, the
defense of an inconvenient forum to the maintenance of such action or
proceeding in any such court. EACH PARTY HERETO HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT IT MAY LEGALLY AND EFFECTIVELY DO
SO, TRIAL BY JURY IN ANY SUIT, ACTION OR PROCEEDING ARISING HEREUNDER.

         (d)    Successors and Assigns; Assignment. This Agreement shall be
binding upon and shall inure to the benefit of the parties hereto and their
respective heirs, executors, legal representatives, and successors; provided,
however, that no party may assign this Agreement or any rights hereunder, in
whole or in part, without the consent of the other parties, except that the
Sellers may assign their rights herein to partners thereof who are signatories
to the Asset Purchase Agreement to whom the Registrable Securities are
distributed if such partners agree in writing (in a manner reasonably
acceptable to HEICO) to be bound by and subject to the terms hereof as if they
were original Sellers parties to this Agreement.

         (e)    Partial Invalidity and Severability. All rights and restrictions
contained herein may be exercised and shall be applicable and binding only to
the extent that they do not violate any applicable laws and are intended to be
limited to the extent necessary to render this Agreement legal, valid and
enforceable. If any terms of this Agreement not essential to the commercial
purpose of this Agreement shall be held to be illegal, invalid or unenforceable
by a court of competent jurisdiction, it is the intention of the parties that
the remaining terms hereof shall constitute their agreement with respect to the
subject matter hereof and all such remaining terms shall remain in full force
and effect. To the extent legally permissible, any illegal, invalid or
unenforceable provision of this Agreement shall be replaced by a valid
provision which will implement the commercial purpose of the illegal, invalid
or unenforceable provision.

         (f)    Waiver. Any term or condition of this Agreement may be waived at
any time by the party which is entitled to the benefit thereof, but only if
such waiver is evidenced by a writing signed by such party. No failure on the
part of a party hereto to exercise, and no delay in exercising, any right,
power or remedy created hereunder, shall operate as a waiver thereof, nor shall
any single or partial exercise of any right, power or remedy by any such party
preclude any other future exercise thereof or the exercise of any other right,
power or remedy. No waiver by any party hereto to any breach of or default in
any term or condition of this Agreement shall constitute a waiver of or assent
to any succeeding breach of or default in the same or any other term or
condition hereof.

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         (g)    Headings. The headings as to contents of particular paragraphs
of this Agreement are inserted for convenience only and shall not be construed
as a part of this Agreement or as a limitation on the scope of any terms or
provisions of this Agreement.

         (h)    Expenses. Except as otherwise expressly provided herein, all
legal and other costs and expenses incurred in connection with this Agreement
and the transactions contemplated hereby shall be paid by the parties as each
party incurs such expenses.

         (i)    Gender. Where the context requires, the use of the singular form
herein shall include the plural, the use of the plural shall include the
singular, and the use of any gender shall include any and all genders.

         (j)    Attorneys' Fees. In the event of any litigation arising under
the terms of this Agreement, the prevailing party or parties shall be entitled
to recover its or their reasonable attorneys fees and court costs from the
other party or parties.

                        [Signatures on following page.]

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         IN WITNESS WHEREOF, the parties have executed this Agreement or caused
this Agreement to be duly executed by their duly authorized officers as of the
day and year first above written.

                                    HEICO CORPORATION

                                    By: /s/ Victor Mendelson
                                        ---------------------------------------
                                        Name:  Victor Mendelson
                                        Title: Executive Vice President
                                               and General Counsel

                                    SMT PARTNERS

                                    By: /s/ Troy J. Rodriguez
                                       -----------------------------------------
                                       Name:   Troy J. Rodriguez
                                       Title:  Managing Partner<PAGE>

                                                                     Exhibit 4.2

                      EVANS BANCORP, INC. 1999 STOCK OPTION
                          AND LONG-TERM INCENTIVE PLAN
                   (AS AMENDED AND RESTATED JANUARY 27, 2003)

1.   PURPOSE.

     Evans Bancorp, Inc., a New York corporation (the "Corporation"), has
     adopted the Evans Bancorp, Inc. Stock Option and Long-Term Incentive Plan,
     effective as of January 19, 1999.

     The purpose of the Evans Bancorp, Inc. Stock Option and Long-Term Incentive
     Plan (the "Plan") is to enable the Corporation and its subsidiaries to
     attract, retain, and reward employees non-employee directors and
     consultants ("Eligible Persons") by offering them an opportunity to have a
     greater proprietary interest in and closer identity with the Corporation
     and with its financial success. An option granted under the Plan to an
     Eligible Person to purchase shares of the Corporation's common stock, $.50
     par value ("Common Stock"), may be an incentive stock option ("ISO") as
     defined in Section 422 of the Internal Revenue Code of 1986 as heretofore
     or hereafter amended ("Code") or a nonqualified stock option ("NSO")
     (collectively referred to as "Options") and may be accompanied by stock
     appreciation rights ("SARs"). An Option that is not an ISO shall be an NSO.
     Shares of Common Stock ("Restricted Stock") may be granted or offered for
     sale to Eligible Persons either separately from or in tandem with the grant
     of an Option. Grants of Options and SARs, and grants of Restricted Stock to
     Eligible Persons, shall be collectively referred to as "Awards." Proceeds
     received by the Corporation from the sale of Restricted Stock, or shares of
     Common Stock pursuant to Options granted under the Plan, shall be used for
     general corporate purposes.

2.   ADMINISTRATION.

     The Plan shall be administered by a committee ("Committee") appointed by
     the Board. The Committee shall be composed of not fewer than two members.
     Except for Director Options described in Section 5A, the Committee Members
     shall not be eligible to receive Awards under the Plan. Subject to the
     express provisions of the Plan, the Committee may interpret the Plan,
     prescribe, amend and rescind rules and regulations relating to it,
     determine the terms and provisions of Awards to Eligible Persons under the
     Plan (which need not be identical), and make such other determinations as
     it deems necessary and advisable for the administration of the Plan. The
     Committee may delegate decisions with respect to Awards to Eligible Persons
     who are not elected officers or directors of the Corporation or its
     subsidiaries to such elected officer or officers of the Corporation as the
     Committee determines. The decisions of the Committee under the Plan shall
     be conclusive and binding. No member of the Board or the Committee shall be
     liable for any action taken or determination made hereunder in good faith.
     Service on the Committee shall constitute service as a director of the
     Corporation so that the members of the Committee shall be entitled to
     indemnification and reimbursement as directors of the Corporation pursuant
     to its bylaws.

3.   ELIGIBILITY.

     Eligible Persons who have been selected by the Committee to receive an
     Award shall participate in the Plan. Non-employee directors shall also
     participate in the Plan as provided in Section 5A. (Eligible Persons who
     participate in the Plan shall be referred to as "Participants"). SARs may
     be granted only to an Eligible Person to whom an Option has been granted.
     Shares of Restricted Stock may be granted or sold to Eligible Persons.
     ISO's may be granted only to an employee of the Corporation ("Employee").
     The Committee shall determine, within the limits of the express provisions
     of the Plan, those Eligible Persons to whom, and the time or times at which
     Awards shall be granted. Except for Director Options, the Committee shall
     also determine, with respect to Awards to Eligible Persons, the number of
     shares of Common Stock to be subject to each such Award; the type of
     Options (ISO or NSO); the duration of each Option; the exercise price under
     each Option; the time or times within which (during the term of the Option)
     all or portions of each Option may be exercised; whether cash, Common
     Stock, Options or other property may be accepted in full or partial payment
     upon exercise of an Option; whether an Option shall include SARs and the
     terms of the SARs; the base price with respect to each Nontandem SAR
     (hereinafter defined); the restrictions to be imposed on shares of
     Restricted Stock; whether the shares of Restricted Stock shall be granted
     or sold; and any other terms and conditions of such Awards. In making such
     determinations, the Committee may take into account the nature of the
     services rendered by the Eligible Person, his present and potential
     contributions to the Corporation's success and such other factors as the
     Committee in its discretion shall deem relevant.

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<PAGE>

4.   COMMON STOCK.

     The total number of shares of Common Stock that may be subject to Awards
     (including ISOs and Director Options)] under the Plan shall be 250,000
     shares. Such total number of shares shall be adjusted in accordance with
     the provisions of Section 12 hereof, and a share of Common Stock subject to
     an Option and its related Tandem SAR (hereinafter defined) shall only be
     counted once. Such shares may be either authorized but unissued shares or
     reacquired shares. In the event that (a) any Option granted under the Plan
     expires unexercised or is terminated, surrendered or canceled (other than
     in connection with the exercise of a Tandem SAR) without being exercised,
     in whole or in part, for any reason, or (b) any Nontandem SAR granted under
     the Plan expires unexercised or is terminated, surrendered or canceled
     without being exercised, in whole or in part, for any reason, or (c) any
     Restricted Stock granted under the Plan is forfeited or reacquired by the
     Corporation in connection with the violation of any restrictions imposed
     upon such shares pursuant to the Plan, then the number of shares of Common
     Stock theretofore subject to such Option, or SAR, or constituting such
     Restricted Stock, or the unexercised, terminated, surrendered, forfeited,
     canceled or reacquired portion thereof shall be added to the remaining
     number of shares of Common Stock that may be made subject to Awards under
     the Plan. Such Awards include Awards to former holders of such Options,
     SARs, or Restricted Stock and, with respect to Awards to Eligible Persons,
     upon such terms and conditions as the Committee shall determine, which
     terms may be more or less favorable than those applicable to such former
     holders of Options, SARs or Restricted Stock.

5.   OPTIONS.

     The following provisions shall apply to each Option granted to an Eligible
     Person:

     (a)  Options (other than Director Options) may be granted to Eligible
          Persons at any time and from time to time as shall be determined by
          the Committee. Except for Director Options, the Committee shall have
          complete discretion in determining the number of shares of Common
          Stock subject to Options granted to each Eligible Person. The
          Committee may grant any type of Option to purchase Common Stock that
          is permitted by law at the time of the grant, including ISOs. Unless
          otherwise expressly provided at the time of grant, Options granted
          under the Plan will not be ISOs.

     (b)  Each Option shall be evidenced by a written agreement specifying the
          type of Option granted, the Option exercise price, the terms for
          payment of the exercise price, the duration of the Option, the number
          of shares of Common Stock to which the Option pertains and the terms
          of related SARs, if any (the "Option Agreement"). An Option Agreement
          may also contain a vesting schedule, a noncompetition agreement, a
          confidentiality provision, provisions for forfeiture in the event of
          termination of the Eligible Person's employment by the Corporation and
          such restrictions and conditions and other terms as the Committee
          shall determine. Option Agreements need not be identical.

     (c)  The Committee, in its discretion, shall have the power to accelerate
          the dates for exercise of any or all Options, or any part thereof,
          granted to an Eligible Person under the Plan.

     (d)  In the discretion of the Committee, the grant of any Option may be
          accompanied by a Reload Option. A Reload Option may be granted to an
          Eligible Person who is an Option holder and who satisfies all or part
          of the exercise price of the Option with shares of Common Stock. The
          Reload Option represents an additional Option to acquire the same
          number of shares of Common Stock as is used by the Eligible Person to
          pay for the original Option. A Reload Option is subject to all of the
          same terms and conditions as the original Option except that (i) the
          exercise price of the shares of Common Stock subject to the Reload
          Option will be determined at the time the original Option is exercised
          and (ii) such Reload Option will conform to all provisions of the Plan
          at the time the original Option is exercised

          5A.  Director Options. Each Director of the Corporation who is not an
               employee of the Corporation or any subsidiary of the Corporation
               (a "Non-Employee Director") shall be granted options (the
               "Director Options"), subject to the following terms and
               conditions:

               (a)  GRANT. As of the date of the 2003 Annual Meeting of
                    Stockholders and the date of each Annual Meeting of
                    Stockholders held thereafter during the term of this Plan,
                    each Non-Employee Director elected at such meeting or
                    continuing in office after such meeting shall receive an
                    option to purchase 1,000 shares. In the event a Non-Employee
                    Director serves as Chairman of the Board of Directors, he
                    shall receive an option to purchase 2,500 shares instead of
                    1,000 shares and in the event a Non-Employee Director serves
                    as Vice Chairman of the Board of Directors, he shall receive
                    an option to purchase 1,500 shares instead of 1,000 shares.

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     (b)  EXERCISE PRICE. The exercise price per share for the Director Options
          shall be 100% of the Fair Market Value of the Common Stock at the time
          the Director Option is granted. In no event may the exercise price be
          less than the par value of the Common Stock subject to such Director
          Option.

     (c)  VESTING. The Director Options granted shall vest six months from the
          date of grant, unless compliance with such holding period is not
          required to qualify for an exemption from potential liability under
          Section 16 of the Securities Exchange Act of 1934, as amended from
          time and any successor thereto.

     (d)  TERM. The term of the Director Options shall be ten years.

     (e)  EXPIRATION. Notwithstanding the provisions of Section 8 of this Plan,
          in the event a Non-Employee Director is removed for cause, then the
          unexercised portion of the vested Director Option shall expire thirty
          days after the date he or she is no longer a Director. In the event
          that the Non-Employee Director ceases to serve as a Director for any
          other reason including death or disability, then the unexercised
          portion of the vested Director Option shall expire on the earlier of
          three years from the date the Non-Employee Director ceases to serve as
          a Director or the expiration of the ten year term of the Director
          Option.

     (f)  DESIGNATION. All of the Director Options shall be designated NSO's.

     (g)  OTHER PROVISIONS. Subject to the provisions of this Section 5A, all of
          the provisions of this Plan not inconsistent with this Section 5A
          shall apply to the Director Options.

6.   REQUIRED TERMS AND CONDITIONS OF ISOs.

     The provisions of each ISO granted to an Employee under this Section 6
     shall be interpreted in a manner consistent with Section 422 of the Code
     and with all regulations issued thereunder. Each ISO granted to an Employee
     shall be in such form and subject to such restrictions and conditions and
     other terms as the Committee may determine at the time of grant, subject to
     the general provisions of the Plan, Section 422 of the Code, the applicable
     Option Agreement and the following specific rules:

     (a)  EXERCISE PRICE. Except as otherwise provided, the per share exercise
          price of each ISO shall be at least 100% of the Fair Market Value of
          the Common Stock at the time such ISO is granted, provided that in the
          case of an ISO granted to an Employee who at the time of grant owns
          (as defined in Section 424(d) of the Code) stock of the Corporation or
          its parent or subsidiaries possessing more than 10% of the total
          combined voting power of all classes of stock of any such corporation,
          the exercise price shall be at least 110% of the Fair Market Value of
          the Common Stock subject to the ISO at the time such ISO is granted
          and the ISO by its terms shall not be exercisable after the expiration
          of five years from the date the ISO is granted. In no event may the
          exercise price be less than the par value of the Common Stock subject
          to such ISO.

     (b)  MAXIMUM TERM. Subject to earlier termination as provided in Section 8,
          each ISO shall expire on the date determined in the applicable Option
          Agreement at the time the ISO is granted, provided that no ISO shall
          be exercisable after the expiration of 10 years from the date it is
          granted, except as otherwise provided in subsection (a) next above.

     (c)  TIME OF EXERCISE. The Committee shall specify in the Option Agreement,
          at the time each ISO is granted, the duration of each ISO and the time
          or times within which (during the term of the ISO) all or portions of
          each ISO may be exercised, except to the extent that other terms of
          exercise are specifically provided by other provisions of the Plan.

     (d)  VALUE OF SHARES. The aggregate Fair Market Value (determined at the
          time of grant) of Common Stock with respect to which ISOs are
          exercisable for the first time by an Employee during any calendar year
          (under all option plans of the Corporation or of a corporation which,
          at the time such ISO was granted, is a parent or subsidiary of the
          Corporation, or is a predecessor corporation of any such corporation)
          shall not exceed $100,000. If the aggregate Fair Market Value
          (determined at the time of grant) of the stock subject to an Option,
          which first becomes exercisable in any calendar year and during this
          period exceeds the limitation of this subsection, so much of the
          Option that does not exceed the applicable dollar limit shall be an
          ISO and the remainder shall be an NSO; but in all other respects, the
          original Option Agreement shall remain in full force and effect.

     (e)  CONVERSION. The Committee may, in its sole discretion, cause the
          Corporation to convert an ISO to an NSO upon such terms and conditions
          and in such manner as the Committee deems equitable.

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7.   REQUIRED TERMS AND CONDITIONS OF NSOs.

     Each NSO granted to an Eligible Person shall be in such form and subject to
     such restrictions and conditions and other terms as the Committee may
     determine at the time of grant, subject to the general provisions of the
     Plan, the applicable Option Agreement, and the following specific rules:

     (a)  EXERCISE PRICE. The number of shares of Common Stock subject to each
          NSO and the per share exercise price of each NSO shall be determined
          by the Committee at the time the NSO is granted, provided that such
          exercise price shall not be less than 100% of the Fair Market Value of
          the Common Stock on the date the NSO is granted. In no event may the
          exercise price be less than the par value of the Common Stock subject
          to such NSO.

     (b)  MAXIMUM TERM. Subject to earlier termination as provided in Section 8,
          each such NSO shall expire on the date determined in the applicable
          Option Agreement at the time the NSO is granted, provided that such
          date shall not be more than ten years after the date of grant.

     (c)  TIME OF EXERCISE. The Committee shall specify in the Option Agreement
          at the time each NSO is granted, the duration of each NSO and the time
          or times within which (during the term of the NSO) all or portions of
          each NSO may be exercised, except to the extent that other terms of
          exercise are specifically provided by other provisions of the Plan.

8.   EXPIRATION OF OPTIONS GRANTED TO ELIGIBLE PERSONS; TERMINATION OF
     EMPLOYMENT, DISABILITY OR DEATH, OR RETIREMENT.

     (a)  GENERAL RULE. Except with respect to Options expiring pursuant to
          subsection 8(b), (c) or (d) below, each Option granted to an Eligible
          Person shall, expire on the expiration date or dates set forth in the
          applicable Option Agreement. Each Option expiring pursuant to
          subsection 8(b), (c) or (d) below shall expire on the date set forth
          in subsection 8(b), (c) or (d) notwithstanding any restrictions and
          conditions that may be contained in an Eligible Person's Option
          Agreement.

     (b)  EXPIRATION UPON TERMINATION OF EMPLOYMENT. An Option granted to an
          Eligible Person shall expire on the first to occur of (i) the
          applicable date or dates determined pursuant to subsection 8(a) or
          (ii) the date that the employment or period of service of the Eligible
          Person with the Corporation and its subsidiaries terminates for any
          reason other than death or disability pursuant to subsection 8(c) or
          retirement pursuant to subsection 8(d). Notwithstanding the preceding
          provisions of this subsection 8(b), the Committee, in its sole
          discretion, may permit an Eligible Person (i) to exercise an Option
          that is exercisable immediately prior to the termination of employment
          or termination of his period of service, notwithstanding any
          restrictions and conditions that may be contained in his Option
          Agreement during a period not to exceed one month following his
          termination of employment or period of service, and/or (ii) to
          exercise an Option that becomes exercisable after termination of
          employment or termination of his period of service and prior to the
          termination of such one month period, during such period. In no event,
          however, may the Committee permit such Eligible Person to exercise an
          Option under this subsection 8(b) after the expiration date or dates
          set forth in the applicable Option Agreement.

     (c)  EXPIRATION UPON DISABILITY OR DEATH. If the employment or period of
          service of an Eligible Person with the Corporation and its
          subsidiaries terminates by reason of disability (as determined by the
          Committee) or death, his unexpired Options or portions thereof, if
          any, held on the date of disability or death that would expire
          pursuant to the terms of his Option Agreement during the 12-month
          period commencing on the date of disability or death, shall expire on
          the last day of such 12-month period. During such 12-month period, any
          such Option or portion thereof referred to in the preceding sentence
          may be exercised by such Eligible Person, or the person specified in
          Section 9, with respect to the same number of shares and in the same
          manner and to the same extent as if the Eligible Person had continued
          as an employee, director or consultant of the Corporation or its
          subsidiaries during such 12-month period. Any unexpired Option or
          portion thereof held by the Eligible Person on the date of disability
          or death, that would expire pursuant to the terms of his Option
          Agreement on a date more than 12 months after the date of disability
          or death, shall expire unexercised on the date of disability or death.

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     (d)  EXPIRATION UPON RETIREMENT. If the employment of an Eligible Person
          with the Corporation and its subsidiaries terminates due to retirement
          under any qualified retirement plan maintained by the Corporation
          and/or any of its subsidiaries, his Option shall expire on the earlier
          to occur of (i) the applicable expiration date or dates set forth in
          the applicable Option Agreement(s) or (ii) the first anniversary of
          the date of such termination of employment. If an Eligible Person who
          has so retired dies prior to exercising in full an Option that has not
          expired pursuant to the preceding sentence, then notwithstanding the
          preceding sentence, such Option shall expire on the first anniversary
          of the date of the Eligible Person's death. During the period
          commencing on the date of retirement or death, as the case may be, and
          ending on the applicable later expiration date, the Options may be
          exercised by such Eligible Person, or the person specified in Section
          9, with respect to the same number of shares and in the same manner
          and to the same extent as if the Eligible Person had continued as a
          full-time employee of the Corporation or its subsidiaries during such
          period.

9.   METHOD OF EXERCISE OF OPTIONS.

     Any Option granted under the Plan may be exercised by the Participant, by a
     legatee or legatees of such Option under the Participant's last will, by
     his executors, personal representatives or distributees, or by his assignee
     or assignees as provided in Section 14 below, by delivering to the
     Secretary of the Corporation written notice of the number of shares of
     Common Stock with respect to which the Option is being exercised,
     accompanied by full payment to the Corporation of the exercise price of the
     shares being purchased under the Option, and by satisfying all other
     conditions provided for in the Plan. Except as otherwise provided in the
     Plan or in any Option Agreement, the exercise price of Common Stock upon
     exercise of any Option by an Eligible Person shall be paid in full (i) in
     cash, (ii) in Common Stock valued at its Fair Market Value on the date of
     exercise, (iii) in cash by a broker-dealer to whom the holder of the Option
     has submitted an exercise notice consisting of a fully endorsed Option,
     (iv) by agreeing to surrender SARs then exercisable by him valued pursuant
     to subsection 10(b) below on the date of exercise, (v) by agreeing to
     surrender Options then exercisable by him valued at the excess of the
     aggregate Fair Market Value of the Common Stock subject to such Options on
     the date of exercise over the aggregate option price of such Common Stock,
     (vi) by directing the Corporation to withhold such number of shares of
     Common Stock otherwise issuable upon exercise of such Option having an
     aggregate Fair Market Value on the date of exercise equal to the exercise
     price of the Option, or (vii) by such other medium of payment as the
     Committee, in its discretion, shall authorize, or by any combination of
     (i), (ii), (iii), (iv), (v) and (vi), at the discretion of the Committee or
     in any manner provided in the Option Agreement. In the case of payment
     pursuant to (ii), (iii), (iv), (v) or (vi) above, the Participant's
     election must be made on or prior to the date of exercise of the Option and
     must be irrevocable. In lieu of a separate election governing each exercise
     of an Award, a Participant may file a blanket election which shall govern
     all future exercises of Awards until revoked by the Participant. The
     Corporation shall issue, in the name of the Participant (or, if applicable,
     the legatee(s), executor(s), personal representative(s), or distributee(s)
     of a deceased Participant, or the assignee(s) as provided in Section 14),
     stock certificates representing the total number of shares of Common Stock
     issuable pursuant to the exercise of any Option as soon as reasonably
     practicable after such exercise, provided that any Common Stock purchased
     by an Eligible Person through a broker-dealer pursuant to clause (iii)
     above shall be delivered to such broker-dealer in accordance with 12 CFR
     Section 220.3(e)(4).

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10.  REQUIRED TERMS OF STOCK APPRECIATION RIGHTS.

     If deemed by the Committee to be in the best interests of the Corporation,
     an Eligible Person who receives an Option may also be granted a SAR. Each
     SAR shall be granted subject to such restrictions and conditions and other
     terms as the Committee may specify in the Option Agreement at the time the
     Option is granted, or as the Committee may determine at the time of grant,
     subject to the general provisions of the Plan, and the following specific
     rules:

     (a)  GRANT OF SARs. SARs will be granted, if at all, at the time of
          granting of an Option and may be granted either in addition to the
          related Option ("Nontandem SAR") or in tandem with the related Option
          ("Tandem SAR"). At the time of grant of a Nontandem SAR, the Committee
          shall specify the base price of Common Stock to be used in connection
          with the calculation described in subsection (b)(i) below. The base
          price of a Nontandem SAR shall not be less than 80% of the Fair Market
          Value of a share of Common Stock on the date of grant, provided that
          the Board shall approve any base price that is less than 100% of the
          Fair Market Value of the Common Stock on the date of grant. The number
          of shares of Common Stock subject to a Tandem SAR shall not exceed one
          for each share of Common Stock subject to the Option. The number of
          shares of Common Stock subject to a Nontandem SAR shall be one for
          each share of Common Stock subject to the Option. No Tandem SAR may be
          granted to an Eligible Person in connection with an ISO in a manner
          that will disqualify the ISO under Section 422 of the Code unless the
          Eligible Person consents thereto.

     (b)  VALUE OF SARs. Upon exercise, a SAR shall entitle the Eligible Person
          to receive from the Corporation the number of shares of Common Stock
          having an aggregate Fair Market Value equal to the following:

          (i)  in the case of a Nontandem SAR, the excess of the Fair Market
               Value of one share of Common Stock as of the date on which the
               SAR is exercised over the base price specified in such SAR,
               multiplied by the number of shares of Common Stock then subject
               to the SAR, or the portion thereof being exercised.

          (ii) in the case of a Tandem SAR, the excess of the Fair Market Value
               of one share of Common Stock as of the date on which the SAR is
               exercised over the exercise price per share specified in such
               Option, multiplied by the number of shares then subject to the
               Option, or the portion thereof as to which the SAR is being
               exercised.

     Cash shall be delivered in lieu of any fractional shares. The Committee, in
     its discretion, shall be entitled to cause the Corporation to elect to
     settle any part or all of its obligation arising out of the exercise of a
     SAR by the payment of cash in lieu of all or part of the shares of Common
     Stock it would otherwise be obligated to deliver in an amount equal to the
     Fair Market Value of such shares on the date of exercise.

     (c)  EXERCISE OF TANDEM SARs. A Tandem SAR shall be exercisable during such
          time, and be subject to such restrictions and conditions and other
          terms, as the Committee shall specify in the applicable Option
          Agreement at the time such Tandem SAR is granted. Notwithstanding the
          preceding sentence, the Tandem SAR shall be exercisable only at such
          time as the Option to which it relates is exercisable and shall be
          subject to the restrictions and conditions and other terms applicable
          to such Option. Upon the exercise of a Tandem SAR, the unexercised
          Option, or the portion thereof to which the exercised portion of the
          Tandem SAR is related, shall expire. The exercise of any Option shall
          cause the expiration of the Tandem SAR related to such Option, or
          portion thereof, that is exercised.

     (d)  EXERCISE OF NONTANDEM SARs.

          (i) A Nontandem SAR granted under the Plan shall be exercisable during
          such time, and be subject to such restrictions and conditions and
          other terms, as the Committee shall specify in the Option Agreement at
          the time the Nontandem SAR is granted, which restrictions and
          conditions and other terms need not be the same for all Eligible
          Persons. Without limiting the generality of the foregoing, the
          Committee may specify a minimum number of full shares with respect to
          which any exercise of a Nontandem SAR must be made.

          (ii) Subject to earlier termination as provided in the last sentence
          of this paragraph (ii), a Nontandem SAR granted under the Plan shall
          expire on the date specified by the Committee in the Option Agreement,
          provided that such date shall not be more than ten years after the
          date of grant. The Committee shall specify in the Option Agreement at
          the time each Nontandem SAR is granted, the time during which the
          Nontandem SAR may be exercised prior to its expiration and other
          provisions relevant to the SAR. The Committee, in its discretion,
          shall have the power to accelerate the dates for exercise of any or
          all Nontandem SARs or any part thereof, granted under the Plan.
          Notwithstanding the foregoing, any Nontandem SAR granted to an
          Eligible Person under the Plan shall expire, notwithstanding any
          restrictions and conditions that may be contained in his applicable
          Option Agreement, following a termination of his employment with the
          Corporation and its subsidiaries in the same manner as an Option held
          by such Eligible Person would expire pursuant to the provisions of
          Section 8.

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     (e)  PARTIES ENTITLED TO EXERCISE SARs. A SAR may be exercised only by the
          Eligible Person (or by a legatee or legatees of such SAR under his
          last will, by his executors, personal representatives or distributees,
          or by an assignee or assignees pursuant to Section 14 below).

     (f)  SETTLEMENT OF SARs. As soon as is reasonably practicable after the
          exercise of a SAR, the Corporation shall (i) issue, in the name of the
          Eligible Person, stock certificates representing the total number of
          full shares of Common Stock to which the Eligible Person is entitled
          pursuant to subsection (b) hereof and cash in an amount equal to the
          Fair Market Value, as of the date of exercise, or any resulting
          fractional shares, and (ii) if the Committee causes the Corporation to
          elect to settle all or part of its obligations arising out of the
          exercise of the SAR in cash, deliver to the Eligible Person an amount
          in cash equal to the Fair Market Value, as of the date of exercise, of
          the shares of Common Stock it would otherwise be obligated to deliver.

11.  RESTRICTED STOCK AWARDS TO ELIGIBLE PERSONS.

     The Committee may from time to time cause the Corporation to grant, or sell
     for such amount of cash, Common Stock or such other consideration as the
     Committee deems appropriate (which amount may be less than the Fair Market
     Value of the Common Stock on the date of grant or sale), shares of
     Restricted Stock under the Plan to such Eligible Persons, and subject to
     such restrictions and conditions and other terms as the Committee may
     determine at the time of grant or sale, subject to the general provisions
     of the Plan, the applicable Restricted Stock Agreement, and the following
     specific rules:

     (a)  GRANT OR SALE. Restricted Stock may be granted or sold to an Eligible
          Person either separately from, or in tandem with, the grant of an
          Option (with or without SARs) to Eligible Persons. In the case of
          Restricted Stock granted or sold in tandem with the grant of an
          Option: (i) the exercise of the Option shall cause the forfeiture (or
          sale at the purchase price paid for the Restricted Stock) to the
          Corporation of the Restricted Stock related to the Option, or portion
          thereof that is exercised, and (ii) the lapse of restrictions
          applicable to such Restricted Stock shall cause the expiration of the
          unexercised Option, or pro rata portion thereof, related to such
          Restricted Stock. Restricted Stock not granted or sold in tandem with
          the grant of an Option shall have no effect on, and shall not be
          affected by, the exercise of any Option by the holder of such
          Restricted Stock.

     (b)  RESTRICTED STOCK AGREEMENTS. Shares of Restricted Stock issued to an
          Eligible Person under the Plan shall be governed by a Restricted Stock
          Agreement which shall specify whether the shares of Restricted Stock
          are granted or sold to the Eligible Persons and whether such
          Restricted Stock is issued separate from, or in tandem with, the grant
          of an Option and such other provisions as the Committee shall
          determine.

     (c)  ISSUANCE OF RESTRICTED STOCK. The Corporation shall issue, in the name
          of the Eligible Person, stock certificates representing the total
          number of shares of Restricted Stock granted or sold to the Eligible
          Person, as soon as may be reasonably practicable after such grant or
          sale, which shall be held by the Secretary of the Corporation as
          provided in subsection (h) hereof.

     (d)  RIGHTS OF STOCKHOLDERS. Subject to the provisions of subsections (c)
          and (e) hereof and subsection 13(b), and the restrictions set forth in
          the related Restricted Stock Agreement, the Eligible Persons receiving
          a grant of or purchasing Restricted Stock shall thereupon be a
          stockholder with respect to all of the shares represented by such
          certificate or certificates and shall have the rights of a stockholder
          with respect to such shares, including the right to vote such shares
          and to receive dividends and other distributions paid with respect to
          such shares.

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     (e)  RESTRICTIONS; FORFEITURE OR RESALE. Any share of Restricted Stock
          granted to an Eligible Person pursuant to the Plan shall be forfeited,
          and any share of Restricted Stock sold to an Eligible Person pursuant
          to the Plan shall, at the Corporation's option, be resold to the
          Corporation for an amount equal to the value of the cash and/or
          property paid therefor, and, in either case, such shares shall revert
          to the Corporation, if (i) the Eligible Person violates a
          non-competition or confidentiality agreement or other condition set
          forth in the Restricted Stock Agreement, (ii) the Eligible Person's
          employment with the Corporation or its subsidiaries terminates prior
          to a date or dates for expiration of the forfeiture or resale
          provisions set forth in his Restricted Stock Agreement, which date
          shall not be earlier than the first anniversary of such grant or sale,
          (iii) the date the Eligible Person's employment with the Corporation
          terminates for cause, or (iv) the date there occurs a violation of any
          provision of the applicable Restricted Stock Agreement. The
          Corporation shall exercise its right to require a forfeiture, and
          exercise its right to require a resale of the Restricted Stock
          pursuant to this subsection (e), by giving notice to the Eligible
          Persons at any time within the 30-day period following (i) the date
          that the Corporation acquires knowledge of his violation of a
          noncompetition or confidentiality agreement or other condition, or
          (ii) his termination of employment with the Corporation or its
          subsidiaries prior to such date set forth in the Restricted Stock
          Agreement. Upon receipt of such notice, the Secretary of the
          Corporation shall promptly cancel shares of Restricted Stock that are
          forfeited or resold to the Corporation, and the corporation shall make
          payment therefor, if applicable, as soon as reasonably practicable
          after the date of said surrender.

     (f)  ACCELERATION. The Committee, in its discretion, shall have the power
          to accelerate the date on which the restrictions of this Section 11 or
          contained in any Restricted Stock Agreements shall lapse with respect
          to any or all shares of Restricted Stock granted or sold under the
          Plan that have been outstanding for at least one year.

     (g)  TERMINATION OF EMPLOYMENT. Notwithstanding the foregoing, if the
          Eligible Person's employment terminates (i) upon the Eligible Person's
          retirement [as described in subsection 10(d)], (ii) because of his
          death or disability (as determined by the Committee), or (iii) under
          circumstances described in subsection 10(e), any restrictions of this
          Section 11 or in any Restricted Stock Agreement shall lapse.

     (h)  RESTRICTED STOCK CERTIFICATES. The Secretary of the Corporation shall
          hold the certificate or certificates representing shares of Restricted
          Stock issued under the Plan on behalf of each Participant who holds
          such shares, whether by grant or sale, until such time as the
          Restricted Stock is forfeited, resold to the Corporation, or the
          restrictions lapse.

     (i)  TERMS AND CONDITIONS. The Committee may prescribe such other
          restrictions and conditions and other terms applicable to the shares
          of Restricted Stock issued to an Eligible Person under the Plan that
          are neither inconsistent with nor prohibited by the Plan or any
          Restricted Stock Agreement, including, without limitation, terms
          providing for a lapse of the restrictions of this Section 11 or in any
          Restricted Stock Agreement, in installments.

12.  ADJUSTMENTS.

     (a)  Appropriate adjustment in the maximum number of shares of Common Stock
          issuable pursuant to the Plan, the number of shares subject to Awards
          under the Plan, the exercise price with respect to Options and Tandem
          SARs and the base price with respect to Nontandem SARs, shall be made
          to give effect to any increase or decrease in the number of shares of
          issued Common Stock resulting from a subdivision or consolidation of
          shares whether through reorganization, recapitalization, stock split,
          reverse stock split, spin-off, split off, spin-out, or other
          distribution of assets to stockholders, stock distributions or
          combination of shares, assumption and conversion of outstanding Awards
          due to an acquisition by the Corporation of the stock or assets of any
          other corporation, payment of stock dividends, other increase or
          decrease in the number of such shares outstanding effected, without
          receipt of consideration by the Corporation, or any other occurrence
          for which the Committee determines an adjustment is appropriate;
          provided, however, that no adjustment in the number of shares with
          respect to which Awards may be granted under the Plan, or in the
          number of shares subject to outstanding Awards, shall be made except
          in the event, and then only to the extent that such adjustment
          together with all respective prior adjustments which were not made as
          a result of this provision, involve a net change of more than ten
          percent (i) from the number of shares of Common Stock with respect to
          which Awards may be granted under the Plan, or (ii) with respect to
          each outstanding Option, from the respective number of shares of
          Common Stock subject thereto on the date of grant thereof. Without
          limiting the generality of the foregoing provisions of this paragraph,
          any such adjustment shall be deemed to have prevented any dilution and
          enlargement of an Eligible Person's rights, if such Eligible Person
          receives in any such adjustment, rights that are substantially similar
          (after taking into account the fact that the Eligible Person has not
          paid the applicable exercise price) to the rights the Eligible Person
          would have received had he exercised his outstanding Awards, and
          become a stockholder of the Corporation immediately prior to the event
          giving rise to such adjustment. Adjustments under this paragraph shall
          be made by the Committee whose decision as to the amount and timing of
          any such adjustment shall be conclusive and binding on all persons.

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     (b)  In the event that:

          (i)  Any person (as such term is used in Section 12 of the Securities
               Exchange Act of 1934 and the rules and regulations thereunder and
               including any Affiliate or Associate of such person, as defined
               in Rule 12b-2 under said Act, and any person acting in concert
               with such person) directly or indirectly acquires or otherwise
               become entitled to vote more than 50 percent of the voting power
               entitled to be cast at elections for directors ("Voting Power")
               of the Corporation; or

          (ii) There occurs any merger or consolidation of the Corporation, or
               any sale, lease or exchange of all or any substantial part of the
               consolidated assets of the Corporation and its subsidiaries to
               any other person and (A) in the case of a merger or
               consolidation, the holders of outstanding stock of the
               Corporation entitled to vote in elections of directors
               immediately before such merger or consolidation hold less than
               50% of the Voting Power of the survivor of such merger or
               consolidation or its parent; or (B) in the case of any such sale,
               lease or exchange, the Corporation does not own at least 50% of
               the Voting Power of the other person;

The Committee may, in its discretion, revise, alter, amend or modify any Option
Agreement or Restricted Stock Agreement with an Eligible Person and any then
outstanding and unexercised Option granted to an Eligible Person, any SAR, and
any share of Restricted Stock granted or sold to an Eligible Person, in any
manner that it deems appropriate, including, but not limited to, any of the
following respects:

     (A)  The Option and SAR may be deemed to pertain to and apply to the
          securities to which a holder of the number of shares of Common Stock
          subject to the unexercised portion of the Option would be entitled if
          he actually owned such shares immediately prior to the record date or
          other time any such event became effective, and the number of SARs may
          be adjusted as necessary to maintain the ratio between the number of
          SARs and the securities, cash and other property subject to the
          Option; and

     (B)  Subject to subsection 6(d), the dates upon which outstanding and
          unexercised Options may be exercised may be advanced (without regard
          to installment exercise limitations, if any);

     (C)  The dates upon which restrictions and conditions applicable to
          outstanding Restricted Stock shall lapse may be advanced (without
          regard to any installment limitations); and

     (D)  Shares of Restricted Stock may be surrendered in a merger,
          consolidation or share exchange involving the Corporation,
          notwithstanding any restrictions and conditions applicable to such
          shares, provided that the securities and/or other consideration
          received in exchange therefor shall be subject to the restrictions and
          conditions applicable to the Restricted Stock at the time of surrender
          and that the surrendering Eligible Persons agrees to any reasonable
          provisions requested by the Corporation to assure that any
          consideration received as a result of such surrender is subject to the
          same restrictions and conditions as those imposed on the Restricted
          Stock surrendered and that the consideration cannot be transferred in
          violation of any such restrictions.

     If the Committee believes that any such event is reasonably likely to
     occur, the Committee may so revise,alter, amend or modify as set forth
     above at any time before and contingent upon the consummation of such an
     event.

     (c)  In the case of dissolution of the Corporation, (i) every Option and
          SAR granted to an Eligible Person outstanding hereunder shall
          terminate notwithstanding any restrictions and conditions that may be
          contained in his Option Agreement and (ii) the restrictions and
          conditions on Restricted Stock held by an Eligible Person shall lapse
          and the holders of such Restricted Stock shall have all the rights of
          a stockholder with respect to participation in the dissolution. Each
          such Option and SAR holder shall have 30 days prior written notice of
          such event, during which time he shall have a right, subject to
          subsection 7(d), to exercise his partly or wholly unexercised Option
          and SAR (without regard to installment exercise limitations, if any).

     (d)  On the basis of information known to the Corporation, the Committee
          shall make all determinations relating to the applicability and
          interpretation of this Section 12, and all such determinations shall
          be conclusive and binding.

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13.  TERMS AND CONDITIONS OF AWARDS.

     (a)  Each Eligible Person shall agree to such restrictions and conditions
          and other terms in connection with the exercise of an Option or SAR,
          or the grant or sale of Restricted Stock, including restrictions and
          conditions on the disposition of the Common Stock acquired upon the
          exercise, grant or sale thereof, as the Committee may deem
          appropriate. The certificates delivered to a Participant or to the
          Secretary of the Corporation evidencing the shares of Common Stock
          acquired upon exercise of an Option may, and in the case of a grant or
          a sale of Restricted Stock to a Participant shall, bear a legend
          referring to the restrictions and conditions and other terms contained
          in the respective Option Agreement or Restricted Stock Agreement and
          the Plan, and the Corporation may place a stop transfer order with its
          transfer agent against the transfer of such shares. Each Eligible
          Person shall execute a written instrument stating that he is
          purchasing the Common Stock for investment and not with any present
          intention to sell the same.

     (b)  The obligation of the Corporation to sell and deliver Common Stock
          under the Plan shall be subject to all applicable laws, regulations,
          rules and approvals, including, but not by way of limitation, the
          effectiveness of a registration statement under the Securities Act of
          1933, if deemed necessary or appropriate by the Committee, of the
          Common Stock, Options, SARs and other securities reserved for issuance
          or that may be offered under the Plan. A Participant shall have no
          rights as a stockholder with respect to any shares covered by an
          Option granted to, or exercised by, him until the date of delivery of
          a stock certificate to him for such shares, or with respect to
          Restricted Stock granted or sold to him, until the date of delivery of
          a stock certificate representing such Restricted Stock to the
          Secretary of the Corporation on his behalf. No adjustment other than
          pursuant to Section 12(a) hereof shall be made for dividends or other
          rights for which the record date is prior to the date such stock
          certificate is delivered.

14.  NONTRANSFERABILITY.

     (a)  Except as provided in subsection 12(b)(iii)(D) and in subsection (b)
          next below, or in connection with unrestricted Common Stock issued
          pursuant to an Award, Awards granted under the Plan and any rights and
          privileges pertaining thereto, may not be transferred, assigned,
          pledged or hypothecated in any manner, by operation of law or
          otherwise, other than by will or by the laws of descent and
          distribution and shall not be subject to execution, attachment or
          similar process. The granting of an Option or SAR shall impose no
          obligation upon the applicable Participant to exercise such Option or
          SAR.

     (b)  Notwithstanding the provisions of subsection (a) above, a Participant,
          at any time prior to his death, may assign all or any portion of an
          Award granted to him (other than an ISO) to (i) his spouse or lineal
          descendant, (ii) the trustee of a trust for the primary benefit of his
          spouse or lineal descendant, (iii) a partnership of which his spouse
          and lineal descendants are the only partners, or (iv) a tax exempt
          organization as described in Section 501(c)(3) of the Code. In such
          event, the spouse, lineal descendant, trustee, partnership or tax
          exempt organization will be entitled to all of the rights of the
          Participant with respect to the assigned portion of such Award, and
          such portion of the Award will continue to be subject to all of the
          terms, conditions and restrictions applicable to the Award, as set
          forth herein and in the related Option Agreement or Restricted Stock
          Agreement immediately prior to the effective date of the assignment.
          Any such assignment will be permitted only if (i) the Participant does
          not receive any consideration therefore, and (ii) the assignment is
          expressly permitted by the applicable Option Agreement or Restricted
          Stock Agreement as approved by the Committee. Any such assignment
          shall be evidenced by an appropriate written document executed by the
          Participant, and a copy thereof shall be delivered to the Corporation
          on or prior to the effective date of the assignment.

15.  INDEMNIFICATION OF THE COMMITTEE.

     In addition to such other rights of indemnification as they may have as
     members of the Board, or as members of the Committee, or as its delegatees,
     the members of the Committee and its delegatees shall be indemnified by the
     Corporation against (a) the reasonable expenses (as such expenses are
     incurred), including attorneys' fees actually and necessarily incurred in
     connection with the defense of any action, suit or proceeding (or in
     connection with any appeal therein), to which they or any of them may be a
     party by reason of any action taken or failure to act under or in
     connection with the Plan, any Option or SAR granted hereunder or any grant
     or sale of shares of Restricted Stock; and (b) against all amounts paid by
     them in settlement thereof (provided such settlement is approved by
     independent legal counsel selected by the Corporation) or paid by them in
     satisfaction of a judgment in any such action, suit or proceeding, except
     in relation to matters as to which it shall be adjudged in such action,
     suit or proceeding that such Committee member or delegatee is liable for
     gross negligence or misconduct in the performance of his duties; provided
     that within 60 days after institution of any such action, suit or
     proceeding a Committee member or delegatee shall in writing offer the
     Corporation the opportunity, at its own expense, to handle and defend the
     same.

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16. NO CONTRACT OF EMPLOYMENT.

     Neither the adoption of the Plan nor the grant of any Award shall be deemed
     to obligate the Corporation or any subsidiary to continue the employment or
     period of service of any Eligible Person for any particular period, nor
     shall the granting of an Award constitute a request or consent to postpone
     the retirement date of any Eligible Person.

17. TERMINATION AND AMENDMENT OF PLAN.

     (a)  No ISOs shall be granted under the Plan more than ten years after the
          first to occur of (i) the date the Plan was adopted by the Board, or
          (ii) the date the Plan was approved by the stockholders of the
          Corporation. The Board may at any time terminate, suspend or modify
          the Plan without the authorization of stockholders to the extent
          allowed by law, including, with respect to ISOs, Section 422 of the
          Code and regulations issued thereunder.

     (b)  No termination, suspension or modification of the Plan shall adversely
          affect any right acquired by any Participant under an Award granted
          before the date of such termination, suspension or modification,
          unless such Participant shall consent; but it shall be conclusively
          presumed that any adjustment for changes in capitalization as provided
          for herein does not adversely affect any such right. Any member of the
          Board who is an officer or employee of the Corporation shall be
          without vote on any proposed amendment to the Plan, or on any other
          matter which might affect that member's individual interest under the
          Plan.

18.  EFFECTIVE DATE OF PLAN.

     The Plan shall become effective upon adoption by the Board; provided,
     however, that it shall be submitted for approval by either written consent
     of all of holders of the outstanding Common Stock or by the holders of a
     majority of the outstanding shares of Common Stock of the Corporation
     present, or represented, and entitled to vote at a stockholders' meeting
     held within 12 months thereafter, and Awards granted prior to such
     stockholder approval shall become null and void if such stockholder
     approval is not obtained.

19. WITHHOLDING TAXES.

     Whenever the Corporation proposes or is required to issue or transfer
     shares of Common Stock to a Participant under the Plan, the Corporation
     shall have the right to require the Participant to remit to the Corporation
     an amount sufficient to satisfy all federal, state and local withholding
     tax requirements prior to the delivery of any certificate or certificates
     for such shares. If such certificates have been delivered prior to the time
     a withholding obligation arises, the Corporation shall have the right to
     require the Participant to remit to the Corporation an amount sufficient to
     satisfy all federal, state or local withholding tax requirements at the
     time such obligation arises and to withhold from other amounts payable to
     the Participant, as compensation or otherwise, as necessary. Whenever
     payments under the Plan are to be made to a Participant in cash, such
     payments shall be net of any amounts sufficient to satisfy all federal,
     state and local withholding tax requirements. In connection with an Award
     in the form of shares of Common Stock, a Participant may elect to satisfy
     his tax withholding obligation incurred with respect to the Taxable Date of
     the Award by (a) directing the Corporation to withhold a portion of the
     shares of Common Stock otherwise distributable to the Participant, or (b)
     by transferring to the Corporation a certain number of shares (either
     subject to a restricted Stock Award or previously owned), such shares being
     valued at the Fair Market Value thereof on the Taxable Date.
     Notwithstanding any provisions of the Plan to the contrary, a Participant's
     election pursuant to the preceding sentence (a) must be made on or prior to
     the Taxable Date with respect to such Award, and (b) must be irrevocable.
     In lieu of a separate election on each Taxable Date of an Award, a
     Participant may make a blanket election with the Committee that shall
     govern all future Taxable Dates until revoked by the Participant. If the
     holder of shares of Common Stock purchased in connection with the exercise
     of an ISO disposes of such shares within two years of the date such ISO was
     granted or within one year of such exercise, he shall notify the
     Corporation of such disposition and remit an amount necessary to satisfy
     applicable withholding requirements including those arising under federal
     income tax laws. If such holder does not remit such amount, the Corporation
     may withhold all or a portion of any salary then or in the future owed to
     such holder as necessary to satisfy such requirements. Taxable Date means
     the date a Participant recognizes income with respect to an Award under the
     Code or any applicable state income tax law.

20. LEAVES OF ABSENCE.

     The Committee shall be entitled to make such rules, regulations and
     determinations as it deems appropriate under the Plan regarding any leave
     of absence taken by an Eligible Person who is the recipient of any Award.
     Without limiting the generality of the foregoing, the Committee shall be
     entitled to determine (a) whether or not any such leave of absence shall
     constitute a termination of employment within the meaning of the Plan, and
     (b) the impact, if any, of any such leave of absence on Awards under the
     Plan theretofore made to any Eligible Person who takes such leave of
     absence.

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21.  GOVERNING LAW.

     The Plan, and all agreements hereunder, shall be construed in accordance
     with and governed by the laws of the State of New York and, in the case of
     ISOs, Section 422 of the Code and regulations issued thereunder.

22.  FAIR MARKET VALUE.

     "Fair Market Value" as of a given date for all purposes of the Plan and any
     Option Agreement or Restricted Stock Agreement means (a) if the Common
     Stock is listed on a national securities exchange, the average of the
     closing prices of the Common Stock on the Composite Tape for the 10
     consecutive trading days immediately preceding such given date; (b) if the
     Common Stock is traded on an exchange or market in which prices are
     reported on a bid and asked price, the average of the mean between the bid
     and the asked price for the Common Stock at the close of trading for the
     ten consecutive trading days immediately preceding such given date; and (c)
     if the Common Stock is not listed on a national securities exchange nor
     traded on the over-the-counter market, such value as the Committee, in good
     faith, shall determine. Notwithstanding any provision of the Plan to the
     contrary, no determination made with respect to the Fair Market Value of
     Common Stock subject to an ISO shall be inconsistent with Section 422 of
     the Code or regulations issued thereunder.

23.  SUCCESSORS.

     In the event of a sale of substantially all of the assets of the
     Corporation, or a merger, consolidation or share exchange involving the
     Corporation, all obligations of the Corporation under the Plan with respect
     to Awards granted hereunder shall be binding on the successor to the
     transaction. Employment or continuation of service of an Eligible Person
     with such a successor shall be considered employment or period of service
     of the Eligible Person with the Corporation for purposes of the Plan.

24.  NOTICES.

     Notices given pursuant to the Plan shall be in writing and shall be deemed
     received when personally delivered or five days after mailed by United
     States registered or certified mail, return receipt requested, addressee
     only, postage prepaid.

     Notice to the Corporation shall be directed to:

     Evans Bancorp, Inc.
     14 - 16 N. Main Street
     Angola, New York 14006

     Notices to or with respect to a Participant shall be directed to the
     Participant, or the executors, personal representatives or distributees of
     a deceased Participant, at the Participant's home address on the records of
     the Corporation.

                                       87

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