Document:

Exhibit 10.1

                AGREEMENT EFFECTIVE MARCH 1, 2006 BY AND BETWEEN

            THE JOSEPH A. BANK MFG. CO., INC. (HAMPSTEAD DISTRIBUTION

                 CENTERS & HAMPSTEAD NATIONAL TAILORING SERVICE)

                                       AND

                  UNITE HERE MID-ATLANTIC REGIONAL JOINT BOARD

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                                TABLE OR CONTENTS

ARTICLE I COVERAGE.............................................................1

ARTICLE II UNION RECOGNITION...................................................1

ARTICLE III UNION SECURITY.....................................................2

ARTICLE IV.....................................................................3

ARTICLE V REPORTING PAY........................................................5

ARTICLE VI HOURS OF WORK.......................................................6

ARTICLE VII EQUIPMENT BREAKDOWN TIME AND WAITING TIME..........................7

ARTICLE VIII VACATIONS.........................................................8

ARTICLE IX HOLIDAYS...........................................................10

ARTICLE X BEREAVEMENT PAY:....................................................12

ARTICLE XI EQUAL DIVISION OF WORK.............................................13

ARTICLE XII PAYMENT OF WAGES AND CHECKOFF.....................................13

ARTICLE XIII - INSURANCE......................................................14

ARTICLE XIV PENSION...........................................................14

ARTICLE XV HEALTH AND WELFARE FUND............................................15

ARTICLE XVI MILITARY SERVICE..................................................15

ARTICLE XVII DISCHARGES AND DISCIPLINE........................................15

ARTICLE XVIII GRIEVANCE AND ARBITRATION PROCEDURE.............................16

ARTICLE XIX CIVIL RIGHTS......................................................18

ARTICLE XX STRIKES, STOPPAGES AND LOCKOUTS....................................18

ARTICLE XXI LEAVE OF ABSENCE..................................................19

ARTICLE XXII MORE FAVORABLE PRACTICES.........................................20

ARTICLE XXIII JURY DUTY.......................................................21

ARTICLE XXIV TECHNOLOGICAL CHANGE.............................................21

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ARTICLE XXV SEPARABILITY......................................................23

ARTICLE XXVI VOLUNTARY CHECKOFF FOR POLITICAL CONTRIBUTIONS...................23

ARTICLE XXVII SAFETY AND HEALTH STUDY COMMITTEE...............................23

ARTICLE XXVIII FEDERAL FUNDS..................................................24

ARTICLE XXIX SUB PROGRAM......................................................24

ARTICLE XXX ORGANIZATIONAL HIRING.............................................24

ARTICLE XXXI PERSONAL DAYS OFF WITHOUT PAY....................................25

ARTICLE XXXII MANAGEMENT RIGHTS...............................................26

ARTICLE XXXIII SUCCESSORS AND ASSIGNS.........................................27

ARTICLE XXXIV TERM OF AGREEMENT...............................................28

EXHIBIT 1.....................................................................29

APPENDIX A....................................................................30

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         AGREEMENT effective March 1, 2006 by and between The Joseph A. Bank
Mfg. Co., Inc. (hereinafter referred to as the "Employer") and the UNITE HERE
MID-ATLANTIC REGIONAL JOINT BOARD, an unincorporated association (hereinafter
referred to as the "Union"), for and on behalf of itself and the employees now
employed, or hereafter to be employed by the Employer at its Hampstead,
Maryland, Distribution Centers and National Tailoring Service branch, located at
500 Hanover Pike and 626 Hanover Pike in Hampstead, Maryland.

         In consideration of the mutual covenants, promises and agreements
herein contained, the parties hereto agree as follows:

                                    ARTICLE I

                                    COVERAGE:

         The term "Employees" as used in this Agreement shall include all
employees of the Employer's Hampstead, Maryland Distribution Centers and
Hampstead Maryland, National Tailoring Service branch in the classifications
listed in Appendix A, and shall exclude executive, administrative, office
clericals, supervisors and guards as defined in the National Labor Relations
Act. The collective bargaining agreement is gender neutral, and wherever the
pronouns "he" or "his" are used in the interests of brevity, they are intended
to mean female employees as well.

                                   ARTICLE II

                               UNION RECOGNITION:

         A.       The Employer recognizes the Union as the exclusive collective
bargaining agent for the employees in the bargaining unit described above with
reference to wages, hours and working conditions.

         B.       The Employer shall recognize and deal with such
representatives of the employees as the Union may elect or appoint and shall
permit such representatives elected or appointed by the

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Union to visit its Hampstead Distribution Centers and Hampstead NTS at any time
during working hours in accordance with existing rules.

         C.       The Employer agrees to make available to the Union such
payroll and production records as the Union may reasonably require as the
collective bargaining agent and/or contracting party hereunder.

                                   ARTICLE III

                                 UNION SECURITY:

         A.       In the manner and to the extent permitted by law, membership
in the Union on completion of the trial period of each employee or on and after
the 30th day following execution of this Agreement, whichever is later, shall be
required as a condition of continued employment of each employee. In the event
that the trial period is less than thirty (30) days, membership in the Union
shall not be required until thirty (30) days after the date of employment. All
employees who are now members or hereafter become members of the Union shall, as
a condition of continued employment, remain members in good standing during the
term of this Agreement.

         B.       Trial Period: Hampstead Distribution Centers and Hampstead
NTS; all new experienced employees shall have a trial period of two (2) weeks.
All new inexperienced employees shall have a trial period of ninety (90) days.

         It is agreed that the Employer shall pay to an employee who has
completed his probationary period indicated in the collective bargaining
agreement at least twenty-five (25) cents an hour above the then existing
Federal or State minimum wage, whichever is higher. This provision is not to
substitute for or supersede higher straight-time hourly rates and incentive base
rates, if any exist.

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                                   ARTICLE IV

A. WAGES:

   1.     Effective March 1, 2006, the Employer shall grant a wage increase of
          fifty cents ($0.50) per hour to all employees in the bargaining unit.

   2.     Effective March 1, 2007, the Employer shall grant a wage increase of
          fifty cents ($0.50) per hour to all employees in the bargaining unit.

   3.     Effective March 1, 2008, the Employer shall grant a wage increase of
          fifty cents ($0.50) per hour to all employees in the bargaining unit.

   4.     If an employee is temporarily transferred from one job to another at
          the request of the Employer, he shall, while working on the job to
          which he has been transferred, be paid (a) if an hourly paid employee,
          his regular hourly straight-time rate of pay prevailing at the time of
          the transfer or the hourly straight-time rate of the job to which he
          is transferred, whichever shall be higher; or (b) if an incentive paid
          employee, his regular straight time hourly incentive rate(1) or
          regular straight-time hourly rate for the job to which he is
          transferred, whichever shall be higher.

   5.     For all employees hired on and after March 1, 2006, the minimum
          starting rate shall be $9.00 per hour.

B. INCENTIVE PLAN:

   1.     During the term of this Agreement, the Employer will maintain an
          incentive earnings plan based on standard times for each position in
          the Distribution Centers which involves repetitive job tasks directly
          relating to the flow of merchandise within a

--------------------
(1)   An incentive employee's regular straight-time hourly incentive rate is the
employee's average straight-time hourly earnings for the first twenty-six weeks
of each year, effective the pay period including August 1 of that year, and the
second twenty-six (26) weeks of the year, effective the pay period including
February 1 of the subsequent year.

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          Distribution Centers. The Employer will set rates using a time study
          based upon fair and equitable accepted industrial engineering methods.
          Incentive rates will allow a reasonably experienced and reasonably
          skilled employee working with good effort and following the prescribed
          methods to earn a bonus above the employee's regular straight time
          hourly pay for the employee's performance of his job. The Employer
          will continue its present incentive plan until any modifications are
          made as a result of the time study specified in this Article.

   2.     The Employer will maintain written job methods for all jobs to which
          an incentive earning plan applies, and job standards will be
          established according to the method described in this Article. The
          Employer may use a qualified industrial engineer to establish job
          standards and to document changes in methods, materials or equipment
          which may result in an adjustment to the job standards.

   3.     The Union reserves the right to have a Union time study engineer
          review new or changed job standards as they relate to incentive rates
          when the Employer makes such changes, or if the department average is
          regularly below standard. The study will be paid for by the Union. The
          study will be conducted at a mutually agreed upon time which will not
          interfere with the Employer's operations. Upon the Union's request,
          the parties and/or the parties' respective time study engineers will
          discuss any job standards the Employer has set for incentive earnings
          plan positions, but the Union waives any right to grieve or otherwise
          challenge the terms of the incentive earnings plan maintained by the
          Employer.

   4.     The Employer and the Union agree that a new operation, changed
          operation or different machinery may temporarily affect an Employee's
          earnings while in the

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          process of learning and adjusting thereto. The Employer, therefore,
          agrees that in the absence of a retraining incentive, to pay an
          Employee thus affected his regular straight time hourly incentive rate
          until a new incentive rate is fixed in accordance with provisions of
          this Article, if the job will have an incentive rate assigned to it.
          In the alternative, the Employer may use a retraining incentive which
          shall be so fixed as to enable the Employee reasonably to maintain his
          regular straight time hourly incentive rate while in the process of
          learning and adjusting to the new operation, changed operation or
          different machinery.

                                    ARTICLE V

                                 REPORTING PAY:

         Employees who report for work at their regular starting time, or at
such hour designated by the Employer, shall be paid their regular straight-time
hourly incentive rate, or regular straight-time hourly rate of pay, whichever is
applicable, for all work performed between the hour they report for work and the
hour that they are dismissed, but in no event shall they be paid less than six
(6) hours, or four (4) hours on Saturday. This clause shall not apply in the
event of power failure, fire, or other cause over which the Employer has no
control. In the case of the first five (5) hours of call in pay, failure of
other employees to report for work shall be considered cause over which the
Employer has no control only if an emergency arises which it could not foresee
and it had taken adequate steps to train and provide relief workers. Excessive
absenteeism shall relieve the Employer of the obligation to pay the sixth hour
of call in pay.

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                                   ARTICLE VI

                                 HOURS OF WORK:

         1.  Regular Work Week: The regular hours of work for all employees may
be eight (8) consecutive hours in any one day, from Monday to Friday inclusive.
The time when work shall begin and end each day shall be agreed upon by the
Employer and the Union.

         2.  Overtime: Time and one-half shall be paid for all work outside the
regular daily hours. As long as the regular work week shall be from Monday to
Friday inclusive, time and one-half shall be paid for all work performed on
Saturdays and double time for work performed on Sunday irrespective of the
number of hours worked during the week. Hours paid at an overtime or premium
rate (E.G., double time for Sunday work) shall not be duplicated or pyramided;
that is, the overtime and/or premium rate shall only be paid once for the same
hours.

         In the event the Employer deems it necessary for business reasons to
institute a multi-shift operation during the regular work week Monday through
Friday, inclusive, it will give the Union no less than thirty (30) days notice
of such intention, and the parties shall meet promptly for the purpose of
negotiating a shift premium(s).

         3.  In the event the Employer deems it necessary for business
reasons to adopt a seven day operation, Saturday and/or Sunday will become part
of a regular five day work week for those employees scheduled regularly to work
either or both of those days and Saturday and Sunday premium pay will not be
applicable to those employees so scheduled.

         It is further understood, however, that premium pay of time and
one-half for Saturday work and double time for Sunday work, whichever is
appropriate, will continue to be applicable to those employees for whom Saturday
or Sunday work constitutes a sixth or seventh consecutive work day.

         4.  No work shall be performed on a designated holiday except by
mutual agreement of the parties, and, if agreed upon, at double time. Overtime
pay for work on a designated holiday shall

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be in addition to holiday pay to which the employee is entitled pursuant to the
provisions hereinafter set forth in HOLIDAYS, Article IX, Sections B1 or B2,
which is applicable.

         5.  Notice of Overtime: The Employer agrees to give reasonable
notice to the employees and the appropriate union shop committee representative
when overtime is to be worked. The Employer will not require overtime until it
has made reasonable efforts, in conjunction with the Union Shop Committee, to
encourage voluntary overtime first. In the event the parties fail to fill
overtime needs with volunteers, no employee will be forced to work overtime more
than three (3) consecutive days in a work week.

                                   ARTICLE VII

                   EQUIPMENT BREAKDOWN TIME AND WAITING TIME:

         An employee paid on an incentive basis who is required to wait for work
due to equipment breakdown beyond his control shall be compensated at his
straight-time hourly incentive rate for all such waiting time in excess of
fifteen (15) minutes per day. An employee paid on an incentive basis who is
required to wait for work due to a cause beyond his control other than for
equipment breakdown shall be compensated at his straight-time hourly incentive
rate for all such waiting time in excess of thirty (30) minutes per day.
However, in no event will the combined unpaid equipment down time and waiting
time exceed thirty (30) minutes per day. Any employee who finds it necessary to
wait for work shall, on each separate occasion, notify his immediate supervisor
both at the beginning and end of such waiting period. Payment for waiting time
shall cover only such time as follows such notification. The Employer may
transfer such employees to other equipment during equipment down time, in the
same department or to another department if the employee is qualified to perform
the required work, and the employee will be paid his straight-time hourly
incentive rate.

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                                  ARTICLE VIII

                                   VACATIONS:

         A.  Hampstead Distribution Centers and NTS:

         1.  Vacation Period: It is mutually agreed that eligible employees
shall accrue vacation according to the following schedule:

         COMPLETED YEARS OF SERVICE            VACATION ENTITLEMENT
         --------------------------            --------------------

         One year but less than  two (2)       One week's vacation with pay

         Two years but less than three (3)     Two week's vacation with pay

         Three years but less than twenty(20)  Three week's vacation with pay

         Twenty years but less than twenty-    Four week's vacation with pay
         five (25)

         Twenty-five years or more             Five (5) week's vacation with pay

The pay for each vacation day will be calculated in the same manner as the pay
for a holiday is calculated pursuant to Article IX, Section B.

         2.  Individual employees may bid for an available week(s) in order of
seniority or such other rational system as mutually agreed to with the Union. If
mutually agreed to with the Union, an employee may elect to work during the
employee's week(s) of vacation at straight time in addition to vacation pay.

         3.  All scheduled vacations are subject to approval of the Employer
based upon business needs.

         4.  Where a dispute arises between two (2) or more employees seeking to
schedule the same vacation period, preference shall be determined by order of
seniority.

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         B.  General Vacation Conditions:

         1.  An employee who has been in the employ of the Employer a
sufficient length of time to have earned a paid vacation as herein set forth but
whose employment has been terminated because of business shall be entitled to
vacation pay pro-rated as of the date of termination of employment.

         2.  Vacation pay for weekly vacations shall be paid on the pay day
immediately preceding the applicable vacation period.

         3.  Where an employee has been regularly scheduled to work less than
the regular work week for his operation, the work eligibility and vacation pay
for such employee shall be adjusted pro-rata.

         4.  Retired and Permanently Disabled Employees: Employees who retire or
receive Federal Old Age Social Security Retirement Benefits, or become totally
and permanently disabled so as to become eligible for and subsequently receive
disability insurance benefits pursuant to the Social Security Act, as amended,
shall receive pro-rata vacation pay for any untaken vacation for which they were
eligible. The vacation pay herein provided shall be paid upon presentation to
the Employer of proof of retirement or the Certificate of Award issued by the
Social Security Administration, as appropriate.

         5.  Employees may take vacation time in one (1) day increments subject
to:

                  a. Mutual agreement between the employee and his supervisor on
         the vacation day to be taken, provided the employee requests the
         vacation day at least one full week in advance. The Company's agreement
         will not be unreasonably withheld.

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                  b. Where more than one (1) employee seeks to take the same
         vacation day off, the Company shall have the right to limit the number
         of employees permitted off in order not to interfere with the
         production process.

                  c. Where more than one employee seeks the same vacation day
         off and production requirements will not so permit, the choice shall be
         made by seniority.

         6.  Subject to the provisions of this Article, the Employer will
determine how many employees may be spared for vacation purposes at a given time
in each job classification and shift. Further, effective with calendar year
2007, at the beginning of each calendar year, a minimum number of vacation weeks
in each major job classification will be established which shall be selected by
employees on a seniority basis.

         7.  Vacation time is scheduled to begin as of the last day of an
employee's regularly scheduled workweek.

                                   ARTICLE IX

                                    HOLIDAYS:

         A.  1. All employees shall be entitled to the following eleven
(11) holidays with pay subject to paragraph E:

         New Years Day; National Observance of Martin Luther King, Jr.'s
Birthday;

         Good Friday; Easter Monday; Memorial Day; Independence Day; Labor Day;

         Thanksgiving Day; Friday After Thanksgiving Day; Last Weekday Prior to
Christmas Day; Christmas Day.

         The Employer and the Union may substitute two other holidays for those
listed above, by mutual agreement.

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         Should any of the above holidays fall on Saturday, the holiday will be
observed on Friday if the Saturday is not a scheduled work day. Should any of
the above holidays fall on Sunday, Monday shall be considered the holiday.

         2. In the event of back-to-back paid holidays, if an employee is absent
without reasonable excuse, either the day before or the day after the paid
holiday, he shall lose only one holiday's pay.

         B.  The pay for each holiday shall be:

             1. For employees of the Hampstead Distribution Centers who are
regularly scheduled to work forty (40) or more hours per week, eight (8) times
their regular straight-time hourly incentive rate or regular straight-time
hourly rate of pay, whichever is applicable. For employees of the Hampstead
Distribution Centers who are regularly scheduled to work less than eight (8)
hours daily, their regular straight-time hourly incentive rate or regular
straight time hourly rate of pay, whichever is applicable, times the daily hours
they are regularly scheduled to work.

             2. For Hampstead NTS employees, eight (8) times the employee's then
current straight-time hourly rate of pay.

         C.  Any employee who, without reasonable excuse, is absent from work or
who does not work all his scheduled hours on the work day before or the work day
after a holiday shall not be entitled to holiday pay. Reasonable excuse shall be
limited to the following:

             1. Illness of the employee;

             2. Death in the immediate family of the employee;

             3. Lack of work for the employee.

         D.  Notwithstanding the provisions of this Article IX, it is
understood that holiday pay shall not be paid to any employees of the Employer's
Hampstead Distribution Centers or Hampstead

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NTS, whichever is applicable, if such operation is shutdown for five (5)
consecutive weeks as follows:

             1. The entire two (2) weeks immediately preceding the week in which
such paid holiday occurs; and

             2. The entire week during which such paid holiday occurs; and

             3. The entire two (2) weeks immediately following the week in which
such paid holiday occurs.

         E.  Trial Period, Intervening Holidays: If a holiday falls within
the initial trial period, the employee shall receive his holiday pay on the
first full pay period following the successful completion of the trial period.
If the employee does not complete the initial trial period for any reason, no
holiday pay is payable. This paragraph shall not apply to employees who have
completed their initial trial period with any employer in contractual relations
with the Union.

                                    ARTICLE X

                                BEREAVEMENT PAY:

         A.  An employee who has been on the payroll of the Employer for
six (6) months or more shall be granted bereavement pay in the event of a death
in his immediate family.

         B.  The immediate family is defined as father, mother, sister,
brother, spouse, children, mother-in-law, father-in-law, brother-in-law,
daughter-in-law, son-in-law, grandmother, grandfather and grandchildren.

         C.  Bereavement pay shall be paid for the day before, the day of
and the day following the funeral when these days fall on days the employee
would otherwise have worked. In the event that the death occurs outside the
United States and notice thereof does not reach the employee until after the
funeral, bereavement pay shall be paid for the three (3) days following receipt
of notice provided that such days are days on which the employee would otherwise
have worked.

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         D.  For each day of bereavement leave, pay shall be calculated for
Hampstead Distribution Centers employees scheduled to work forty (40) hours per
week at the rate of eight (8) times the employee's regular straight-time hourly
incentive rate if an incentive paid employee, or eight (8) times the employee's
regular straight-time hourly rate if paid on that basis. Distribution Center
employees scheduled to work less than eight (8) hours daily shall for each day
of bereavement leave receive their regular straight-time hourly incentive rate
or regular straight-time hourly rate of pay, whichever is applicable, times the
daily hours they are regularly scheduled to work. Hampstead NTS employees shall
receive eight (8) times their regular straight-time hourly rate of pay for each
day of bereavement leave.

         E.  No bereavement pay will be granted unless the employee
notifies the Employer and requests leave. At its discretion, the Employer may
require evidence of death and kinship.

                                   ARTICLE XI

                             EQUAL DIVISION OF WORK:

         During any slack season or whenever there is insufficient work, the
available work shall be divided, insofar as is practicable, equally among all
regular employees of the Employer in order that continuity of employment may be
maintained unless the Employer and the Union shall mutually agree upon a lay-off
and the conditions applicable thereto.

         It is understood that this clause has been mutually interpreted to
provide for seniority of the employee as the basis for layoff.

                                   ARTICLE XII

                         PAYMENT OF WAGES AND CHECKOFF:

         A.  The Employer agrees to pay its employees on a prescribed day in
each week.

         B.  The Employer shall deduct from the wages of its employees upon
written authorization of the employees, union dues, initiation fees and
assessments. The amounts deducted

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pursuant to such authorization shall be transmitted at intervals to the properly
designated official of the Union, together with a list of names of the employees
from whom the deductions were made on forms to be provided by the Union. Sums
deducted by the Employer as union dues, initiation fees or assessments shall be
kept separate and apart from general funds of the Employer and shall be deemed
trust funds. The above mentioned monies are to be paid to the UNITE HERE
Mid-Atlantic Regional Joint Board, UNITE, immediately after it is collected at
least once a month.

                                  ARTICLE XIII

                                   INSURANCE:

         The Employer will continue its participation in the UNITE HERE National
Health Fund by continuing to make contributions at the rate of 25.69% of the
gross wages payable for the preceding pay period for all employees who have
completed their trial period (as defined in Article III.B of this Agreement).

         The Employer's obligation to make contributions to the UNITE HERE
National Health Fund shall not be increased from the amount set forth above,
other than through formal written amendment of this Agreement or with the
Employer's written consent.

                                   ARTICLE XIV

                                     PENSION

         The monthly benefit under the pension plan shall be increased to $10.25
for the year of benefit service during the period from March 1, 2006 through
February 28, 2007; be increased to $11.25 for the year of benefit service during
the period from March 1, 2007 through February 29, 2008; and be increased to
$12.25 for each year of benefit service subsequent to March 1, 2008.

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                                   ARTICLE XV

                            HEALTH AND WELFARE FUND:

         The Employer agrees to contribute sums of money equal to two (2)
percent of its payroll to the to be used to provide health and welfare benefits
to the members. The terms and provisions of Exhibit I attached hereto being
specifically incorporated herein by reference.

         The Employer's obligation to make contributions to the Mid-Atlantic
Regional Joint Board Health and Welfare Fund shall not be increased from the
amount set forth above, other than through formal written amendment of this
Agreement or with the Employer's written consent.

                                   ARTICLE XVI

                                MILITARY SERVICE:

         In the event that an employee enlists or is conscripted into the Armed
Forces of the United States of America or is called into service as a member of
the National Guard or Army, Navy, Air Force or Marine Corps Reserves, he shall,
upon discharge from service be reinstated with all his rights and privileges
enjoyed by him at the time he entered service; provided, that he shall request
reinstatement within the period fixed by law and provided that the Employer
shall have the right to discharge any person whom it hired by reason of the
entry into military service of the person to be reinstated.

                                  ARTICLE XVII

                           DISCHARGES AND DISCIPLINE:

         A.  No employee covered by this Agreement shall be discharged
without just cause. The Union shall present all complaints of discharge without
just cause to the Employer within seven (7) days after the discharge. If the
complaint cannot be adjusted by mutual consent, it shall be submitted to the
Arbitrator hereinafter designated in this Agreement for determination pursuant
to the procedure provided. The Arbitrator shall issue his decision and award
within seven (7) days from

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the conclusion of the hearing of the discharge in dispute. If the Arbitrator
finds that the employee was discharged without just cause, he shall order
reinstatement and may require the payment of back pay in such amount as, in his
judgment, the circumstances warrant. This paragraph shall not apply to an
employee during his trial period.

         B.  In the manner and to the extent permitted by law, it shall not
be a violation of this Agreement nor grounds for discharge, discipline or
permanent replacement for employees covered by this Agreement to refuse
voluntarily to cross a lawful picket line.

                                  ARTICLE XVIII

                      GRIEVANCE AND ARBITRATION PROCEDURE:

         A.  Any complaint, grievance or dispute arising under, out of or
relating directly or indirectly to the provisions of this Agreement between the
Union or any employees and the Employer, or the interpretation or performance
thereof, shall, in the first instance be taken up for adjustment by a
representative of the Union and a representative of the Employer. Any and all
matters in dispute, including a dispute concerning the interpretation or
application of the arbitration provision, which have not been adjusted pursuant
to the procedure therein provided shall be referred for arbitration and final
determination to the Arbitrator herein designated, and his decision or award
shall be final, conclusive and binding on all parties; and the parties hereby
stipulate and consent that the Arbitrator may make findings, decisions and
awards which may be enforced by appropriate judgment thereon to be entered in a
Court of Law or Equity.

         Any grievance which is submitted to arbitration shall be heard by one
of the members of a panel of three arbitrators, who shall be Jerome H. Ross,
Charles Feigenbaum, and Joseph M. Sharnoff. These arbitrators shall hear
grievances on a rotating basis in the order set forth above, provided that if
the arbitrator whose turn it is to hear a grievance cannot meet the timetable
set forth herein, the next available arbitrator shall hear the case and the
rotation shall continue from there. If

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none of the arbitrators can hear the case within said timetable, then the
arbitrator who can hear it first will be utilized and the rotation will continue
from there.

         Hearings shall be held no later than fifteen calendar days after the
arbitrator has received his assignment at a place mutually agreeable to the
Union and the Company. The hearing shall be conducted by the arbitrator in
whatever manner will most expeditiously permit the full presentation of all
evidence and arguments for both parties, provided, however, that the parties
shall have the right to file written briefs with the arbitrator within seven
calendar days following the closing of the hearing record.

         The award of the arbitrator shall be rendered no later than ten
calendar days from the day the hearing concluded or the briefs are submitted
unless an extension of time is mutually agreed upon by the parties. A lengthy
opinion shall not be requested or required from the arbitrator. Rather, the
arbitrator is instructed to issue an award and a summary statement of no more
than five pages which briefly sets forth the basis for the award. The parties
may request the arbitrator to notify them of his award by telephone after the
award has been mailed.

         The decision of the arbitrator shall be limited to the matter presented
to him; he shall have no authority to amend, alter or change any provision of
this Agreement. The decision of the arbitrator shall be final and conclusive on
the Company, the Union and the employee(s) involved. The arbitrator's fees and
expenses shall be borne equally by the Union and the Company.

         Except as expressly provided otherwise in the Agreement, with respect
to any dispute subject to arbitration or any claim, demand, or act arising under
the Agreement which is subject to arbitration, the procedure established in this
Agreement for the adjustment thereof shall be the exclusive means for its
determination. No proceeding or action in a court of law or equity or
administrative tribunal shall be initiated with respect thereto other than to
compel arbitration or to

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enforce, modify, or vacate an award. This paragraph shall constitute a complete
defense to or ground for a stay of an action instituted contrary hereto.

                                   ARTICLE XIX

                                  CIVIL RIGHTS:

         1.  The Employer and the Union shall not discriminate nor
perpetuate the effect of past discrimination, if any, against any employee or
applicants for employment on account of race, color, religion, creed, sex, or
national origin. This clause shall be interpreted broadly to be co-extensive
with all federal, state or local anti-discrimination laws and where available,
judicial interpretations thereof.

         2.  Upon the request of either party, representatives of the
Employer and the Union shall meet to review compliance with this provision and
to mutually agree upon such steps as are necessary to achieve compliance.

                                   ARTICLE XX

                        STRIKES, STOPPAGES AND LOCKOUTS:

         A.  This Agreement provides for an orderly adjustment of
differences. Strikes, stoppages, and lockouts are therefore prohibited. If a
strike, stoppage or lockout shall occur then the parties agree that any remedy
sought by either party arising from such act shall be resolved through the
medium of the arbitration machinery and the aggrieved party shall have the right
to demand an immediate hearing on twenty-four (24) hours notice before the
Arbitrator.

         B.  In the event either party fails to comply with the decision or
award of the Arbitrator within ten (10) days after service of a copy thereof,
the other party shall be free to call a strike, stoppage or lockout as the case
may be, unless the failure to comply is the result of a suit filed by either
party in the U.S. District Court for the District of Maryland within ten (10)
days from the date of receipt of the Award seeking to set aside or modify the
award.

                                      -18-
<PAGE>

                                   ARTICLE XXI

                                LEAVE OF ABSENCE:

         A.  Leave of absence shall be granted an employee upon request if
the employee is ill or a member of his immediate family is seriously ill.
Illness shall be certified by a doctor's certificate. Leave on account of
illness shall include leave of absence in maternity cases. Leave of absence
shall be for an initial period of not more than one (1) month. In the event of a
leave of absence for personal illness including maternity, the leave of absence
may be extended to an additional period of one (1) month each up to a total of
one (1) year unless the employee was employed for less than six (6) months. In
the event of a leave of absence because of serious illness in the employee's
immediate family, the initial leave and extension shall not extend for more than
three months unless mutually agreed otherwise. Such employee shall upon return
to work from such leave be reinstated to his previous job. In the case where a
job or operation has been abolished during employee's absence such provision
shall apply to re-employment as would have applied had such employee been at
work at the time the job or operation was abolished.

         B.  Leaves of absence shall be granted for justifiable personal
reasons. The Employer may limit the number of leaves for personal reasons
granted at any given time to avoid an unreasonable effect on the Employer's
ability to operate. Such leaves may be limited to an initial period of two (2)
weeks with extensions granted by mutual agreement.

         C.  An employee who becomes a paid officer of the Union shall be
entitled to a leave of absence for the term of his office.

         D.  FAMILY AND MEDICAL LEAVE  PURSUANT TO THE FMLA ACT:

         1.  An employee who has been employed by the Employer for at least
twelve (12) months (and who has worked at least 1,250 hours during the twelve
(12) months immediately preceding the employee's request for leave under the
paragraph) shall be entitled to at least twelve

                                      -19-
<PAGE>

(12) weeks of unpaid Family Leave, within any twelve (12) month period, without
loss of seniority rights for the following reasons:

         a.       For the birth or placement of a child for adoption or foster
                  care; or

         b.       To care for a spouse, child or parent with a serious health
                  condition as such terms are defined by the Family and Medical
                  Leave Act of 1993 ("FMLA"); or

         c.       To take medical leave when the employee is unable to work
                  because of the employee's own serious health condition as
                  defined in the FMLA.

         2.  An employee requesting Family Leave shall present satisfactory
proof of the reason for such leave.

         3.  Family Leave may be taken on an intermittent basis under 1b) and c)
above when there is a medical necessity for such intermittent leave as provided
in the FMLA.

         4.  Leave pursuant to FMLA shall be coordinated with any other leave of
absence provided for in this Agreement. They shall not be cumulated, and one
shall be offset against the other.

         E.  Child Care Facilities: The Employer and the Union shall
establish a local committee to study the availability of child care facilities.

                                  ARTICLE XXII

                            MORE FAVORABLE PRACTICES:

         Any custom or practice existing at the time of the execution of this
Agreement more favorable to the employees than the provisions hereof shall be
continued as heretofore. It is understood that this clause is to be mutually
interpreted to provide that prior contrary past practices do not prevail over
subsequently negotiated contract provisions.

                                      -20-
<PAGE>

                                  ARTICLE XXIII

                                   JURY DUTY:

         Hampstead Distribution Centers employees scheduled to work forty (40)
hours per week and Hampstead NTS employees called for involuntary trial jury
duty will be paid each day for the period of such jury duty the difference, if
any, between the pay received for such jury duty and their regular straight-time
hourly rate or straight-time hourly incentive rate, whichever is applicable, for
up to eight (8) hours. Hampstead Distribution Centers employees called to such
jury duty who are scheduled to work less than eight (8) hours daily shall
receive for each day of jury duty the difference, if any, between the pay
received for such jury service and their straight-time hourly rate or
straight-time hourly incentive rate for the daily hours they are regularly
scheduled to work. The employee shall present a receipt for the amount of jury
duty pay received. An employee who receives a notice to serve as a juror must
notify the Employer not later than the next work day.

                                  ARTICLE XXIV

                              TECHNOLOGICAL CHANGE:

         The parties hereto anticipate the possibility of technological change
in the equipment of the Employer's Hampstead Distribution Centers and Hampstead
NTS designed to improve productivity and efficiency.

         The Employer and the Union recognize that such change should not reduce
the wages of the workers affected thereby or result in workers losing employment
provided they are capable of being trained within a reasonable period of time to
operate the new or modified equipment involved.

         In the interests of improving productivity and efficiency and at the
same time protecting the earning opportunity and job security of the employee
affected by technological change the parties hereto are agreed that:

         1.  The Employer shall give prior notice to the Union of such change.

                                      -21-
<PAGE>

         2.  Rates for newly introduced or changed equipment shall be
established by mutual agreement.

         3.  Reasonable training periods for the new or modified equipment shall
be established by mutual agreement.

         4.  During any required training period, employees employed on the new
or modified equipment shall be paid on the basis of wages earned plus the
difference, if any, between the expected earnings under the newly established
rates and their prior earnings.

         5.  Where the new or changed equipment eliminates the need for an
employee or employees or an employee employed on the new or modified equipment
is unable after the agreed upon training period to perform the new or changed
job satisfactorily, the employee or employees so affected shall not be
terminated.

         Instead, if a job is available on a substantially equivalent operation
with the opportunity for substantially equivalent earnings, the employee or
employees may be transferred to such job or jobs. When so transferred, employees
will receive a period of re-training equal to the normal training period for
similarly experienced workers during which they will receive their former
average hourly earnings.

         If there are no jobs available on a substantially equivalent operation
with the opportunity for substantially equivalent earnings to which the affected
employee or employees may transfer, they shall have the option to (a) accept any
other available job and receive the normal training period on such job during
which they will receive their former average hourly earnings or (b) they can
leave the employee of the Employer voluntarily and receive severance pay in an
amount mutually agreed to by the Employer and the Union.

                                      -22-
<PAGE>

         A displaced employee who at first elects to take an available job which
does not provide substantially equivalent earning opportunity, at the completion
of the normal training period may at that time elect to accept severance pay and
voluntarily leave the employ of the Employer. In that event the employee's
severance pay shall be reduced by any makeup pay paid the employee during his
normal training period.

         In the event an employee elects to accept severance pay, he shall
retain for one year his seniority and recall rights to his former job if such an
opening becomes available.

                                   ARTICLE XXV

                                  SEPARABILITY:

         Should any part or provision of this Agreement be rendered or declared
illegal by reasons of any existing or subsequently enacted legislation or by any
decree of a court of competent jurisdiction or by the decision of any authorized
government agency such invalidation of such part or provision shall not
invalidate the remainder thereof. In such event, the parties agree to negotiate
substitute provisions.

                                  ARTICLE XXVI

                 VOLUNTARY CHECKOFF FOR POLITICAL CONTRIBUTIONS:

         In the event that voluntary authorization to deduct voluntary political
contributions weekly from an individual member's pay is signed, the Employer
agrees to deduct the said amount and remit the said sum to the UNITE HERE TIP
(Attention: Tom Snyder, 275 Seventh Avenue, New York, NY 1001). The Union shall
reimburse the Employer for any expense incurred due to this provision.

                                  ARTICLE XXVII

                       SAFETY AND HEALTH STUDY COMMITTEE:

         A Safety and Health Study Committee composed of an equal number of
Management members and Union members from the bargaining unit shall be
established. It will meet regularly at

                                      -23-
<PAGE>

dates, times, and place to be determined by the Employer after consultation with
the Union. The employees shall be paid their established hourly straight-time
rate of pay by the Employer while attending such meetings.

                                 ARTICLE XXVIII

                                 FEDERAL FUNDS:

         The Union shall cooperate with the Employer to facilitate the
availability of federal funds for training programs.

                                  ARTICLE XXIX

                                  SUB PROGRAM:

         Should the employees agree to purchase additional insurance coverage
provided by the Amalgamated Life Insurance Company, the Employer shall check off
the employees' cost of the program, upon presentation of proper authorization,
and pay the same over to the Amalgamated Life Insurance Company as required by
the contract between the employees and the Amalgamated Life Insurance Company.

                                   ARTICLE XXX

                             ORGANIZATIONAL HIRING:

         The Employer agrees that it will hire employees who have been
discharged from other employers during an organizing campaign conducted by the
Union. The Employer is not required by this Section to hire an employee who is
not qualified to perform the job that is being applied for. The Employer is not
required to employ such applicants if it does not have jobs available. Any
employee hired under this Section is subject to the Employer's regular
probationary period for new employees.

         The Employer is not required to unlawfully give preference to employees
applying under this section.

                                      -24-
<PAGE>

         The Union will hold the Employer harmless for any liability, included
but not limited to attorney's fees imposed by enforcement of this clause.

                                  ARTICLE XXXI

                          PERSONAL DAYS OFF WITHOUT PAY

         In the administration of the Employer's Absence and Lateness Policy,
the parties are agreed that:

         1)  Starting from March 1, 2003, employees who have a perfect
attendance record for six (6) consecutive months under the criteria set forth in
the Attendance and Lateness Policy will be entitled to one (1) personal day off
without pay to be taken within the next consecutive six (6) months.

         EXAMPLE: Those employees who have perfect attendance records measured
by the six (6) consecutive months ending August 31, 2003 will thereafter be
entitled to one (1) personal day off without pay to be taken within the next
consecutive six (6) months, without that time off being counted as an
occurrence.

         2)  Personal days off shall be scheduled by mutual agreement between
the employee so entitled and his/her immediate supervisor. The Employer's
agreement shall not be unreasonably withheld.

         3)  The Employer shall have the right to limit the number of employees
who chose to take the same day as a personal day off when granting such requests
would interfere with production needs. In the event that only a certain number
of employees may be permitted to take the same personal day off, the choice
shall be decided by seniority.

         4)  Personal days off may not be cumulated and no more than two (2)
personal days off may be taken in any one contract year.

                                      -25-
<PAGE>

                                  ARTICLE XXXII

                                MANAGEMENT RIGHTS

         A.  Except as expressly and specifically limited elsewhere in this
Agreement, the Employer reserves and retains any and all management rights
previously vested in or exercised by the Employer. Such rights of management
include, but are not limited to: control over all matters concerning the
operation, management and administration of its business; to plan, direct,
control, increase, decrease or diminish operations in whole or in part; to
determine the locations of its facilities or any parts thereof and to relocate
same; to determine services to be rendered; to subcontract work or functions, in
whole or in part; to transfer work among facilities; to discontinue or introduce
new or improved methods, techniques, processes, or equipment; to suspend,
discipline or discharge employees for just cause, or to layoff employees for
lack of work or for other causes; to separate trial period or probationary
employees during their trial/probationary period without recourse; to change the
work schedule and/or the work week; to determine when and whether overtime shall
be worked; the direction, instruction and control of employees including, but
not limited to, the determination of the qualifications and abilities of the
employees to perform the work in a satisfactory manner; to determine the
qualifications and skills required for each classification and the
qualifications and standards necessary for any of the jobs it may have or may
create in the future and whether such standards and levels are being met; to
determine the number of employees it shall employ at any one time, the number
assigned to any particular classification and the policies affecting the
selection and training of new employees; to select, hire, layoff, reclassify,
promote or transfer employees; to determine job content and to create new job
classifications or to revise the content of existing jobs; to establish
performance standards; to determine the hours of work, the starting and quitting
times, and the processes, methods and procedures to be employed; to adopt and
from time to time modify, rescind, or change and to enforce reasonable rules,
including rules of

                                      -26-
<PAGE>

conduct and safety rules, for the orderly conduct of its operations, including
to impose discipline, up to and including discharge, for violation thereof; and
to perform all other functions inherent in the administration and/or management
of the business.

         B.  The Employer has and shall retain the right to move, sell,
close, or liquidate the facilities or operations covered by this Agreement, in
whole or in part, and to separate its employees in connection with said moving,
selling, closing, or liquidation of these facilities or any portion thereof;
however, in the event the Employer decides to do so, it will negotiate with the
Union concerning the effects thereof upon the employees. It is fully understood
and agreed that the decision to move, sell, close or liquidate shall rest solely
with the Employer and its obligation shall be limited to advising the Union
concerning such decision and negotiating with the Union over the effects thereof
on the employees.

         C.  It is expressly understood and agreed that the rights of
management set forth in this Article shall not be subject to impairment by an
arbitration award under any provision of this Agreement, and that the Union
waives any right it may have to bargain over the exercise of these rights during
the term of this Agreement. Notwithstanding the foregoing, the Union may grieve
whether a right of management is expressly and specifically limited in this
Agreement. The Employer agrees, upon the Union's request, to meet and discuss
with the Union any exercise of its Management Rights pursuant to this Article.

         D.  The Employer shall have the right to engage in alcohol and
drug testing of employees where required to do so by law or regulation.

                                 ARTICLE XXXIII

                             SUCCESSORS AND ASSIGNS:

         This Agreement shall be binding upon the parties hereto and thereafter
upon any successor, purchaser, transferee, lessee or assignee of the Employer's
Hampstead Distribution Centers and/or

                                      -27-
<PAGE>

Hampstead National Tailoring Service. The Employer shall give notice in writing
of the existence of this Agreement to any successor, purchaser, transferee,
lessee or assignee with a copy to the Union no later than the effective date of
such purchase, sale, transfer, lessee or assignment.

                                  ARTICLE XXXIV

                               TERM OF AGREEMENT:

         This Agreement shall be effective upon the date hereof and shall remain
in full force and effect until midnight February 28, 2009. It shall be
automatically renewed from year to year thereafter unless on or before December
31, 2008, or December 31 of any year thereafter, notice in writing by certified
mail is given by either the Employer or the Union to the other of its desire to
propose changes in this Agreement or of intention to terminate the same, in
either of which events this Agreement shall terminate upon the ensuing February
28 (or 29 in a Leap Year).

         IN WITNESS WHEREOF, the parties hereto have caused their signatures to
be affixed effective the day and year hereinabove first written.

                                  THE JOSEPH A BANK MFG. CO., INC.

                                  By
                                    ---------------------------------

                                  UNITE HERE MID-ATLANTIC REGIONAL JOINT BOARD

                                  By
                                    ---------------------------------
                                    Harold L. Bock
                                    International Vice President and
                                    Regional Director

                                      -28-
<PAGE>

                                    EXHIBIT 1

SUPPLEMENTAL AGREEMENT dated as of March 1, 2006 by and between THE JOSEPH A.
BANK MFG., CO., INC. (hereinafter called the "Employer") and the UNITE HERE
MID-ATLANTIC REGIONAL JOINT BOARD (hereinafter called the "Union").

         WITNESSETH:

         The Employer and the Union have executed a Collective Bargaining
Agreement wherein the Employer agreed to contribute 2% of its gross payroll to a
fund to be used to provide medical benefits to employees, subject to such
conditions as the Trustees may determine with reference to length of service in
the clothing industry and length of payment by the Employer of contributions to
the Fund. Subject to the provisions of Article XV of the Collective Bargaining
Agreement, the Trustees shall have the right at any time and from time to time
to modify, change, amend or terminate to any extent any or all of the terms or
provisions of such plan and to make rules and regulations to carry out the
provisions hereof.

         This SUPPLEMENTAL AGREEMENT, EXHIBIT I, is hereby made a part of the
Collective Bargaining Agreement and shall run concurrent to the date of its
expiration.

                                         THE JOSEPH A. BANK MFG. CO., INC.

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

                                         UNITE HERE MID-ATLANTIC REGIONAL JOINT
                                         BOARD

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

                                      -29-
<PAGE>

                                   APPENDIX A

Catalog Picker
Examiner
Finisher
Housekeeper
Maintenance
Marker
Mechanic
Monogrammer
New Store Stager
Operator
Operator-OHC
Operator-RSU
Operator-RSU-2nd
Packer
Packer-2nd
Picker Presser
Put Away Stocker
Returns Processor
Returns Stocker
Ripper
RSU Scanner
Shipper
Shipper & Receiver
Tailor
Truck Driver
Vendor Dock Worker
Vendor Receiver
Vendor Receiver-2ndExhibit 10.1 to Form 10-Q -- Qy Fy'06

    EXHIBIT
      10.1

    

    

    

    

    

    

    

    

    

    

    

    

    ACI
      HOLDING, INC.

    

    

    1994
      STOCK OPTION PLAN

    

    as
      amended by 

    the
      Board of Directors on February 22, 2002

    and
      again by the Board of Directors on March 7, 2006 

    

    

    

     

     

     

     

     

     

     

    
      
        
          
             

            

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

    

     

    
 

    TABLE
      OF CONTENTS

    

    
 

    1.
      PURPOSE

     

    2.
      ADMINISTRATION

     

           
      2.1. Board

     

           
      2.2. Committee

     

         
2.3.
      No
      Liability

     

    3. STOCK

     

    4.
      ELIGIBILITY

     

    5. EFFECTIVE
      DATE AND TERM OF THE PLAN

     

    5.1. Effective
      Date

     

           
      5.2. Term

     

    6. GRANT
      OF
      OPTIONS

     

    6.1. General

     

           
      6.2. Limitation on Grants of Options to Executives

     

    7. LIMITATION
      ON INCENTIVE STOCK OPTIONS

     

    8.
      OPTION
      AGREEMENTS

     

    9.
      OPTION
      PRICE

     

    10.
      TERM
      AND EXERCISE OF OPTIONS

     

            
      10.1. Term

     

            
      10.2. Option Period and Limitations on Exercise

     

            
      10.3. Method of Exercise

     

    11. TRANSFERABILITY

     

    11.1. Transferability
      of Options

     

    11.2. Stock
      and Warrant Holders' Agreement and
      Voting Agreement

     

    12. TERMINATION
      OF EMPLOYMENT

     

    13.
      RIGHTS IN THE EVENT OF DEATH OR DISABILITY

     

    13.1. Death

     

    13.2. Disability

     

    14. USE
      OF
      PROCEEDS

     

    15.
      SECURITIES ACT OF 1933

     

    16.
      SECURITIES EXCHANGE ACT OF 1934; RULE
      16b-3

     

           
      16.1. General

     

           
16.2.
      Stock
      Option Committee

     

           
16.3.
      Action
      by the Board

     

           
16.4.
      Additional Restrictions on Transfer of Stock

     

          
16.5.
      Additional
      Requirement of Stockholders' Approval

     

    17. AMENDMENT
      AND TERMINATION OF THE PLAN

     

    18.
      EFFECT OF CHANGE IN CAPITALIZATION

     

    18.1. Changes
      in Stock

     

    18.2.
      Reorganization with Corporation
      Surviving

     

    18.3.
      Other Reorganizations; Sale of
      Assets/Stock

     

    18.4.
      Adjustments

     

    18.5.
      No Limitations on Corporation

     

    19. DISCLAIMER
      OF RIGHTS

     

    20.
      NONEXCLUSIVITY OF THE PLAN

    

    

    
      
        
           

          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    ACI
      HOLDING, INC.

    

    1994
      STOCK OPTION PLAN

    as
      amended by 

    the
      Board of Directors on February 22, 2002

    and
      again by the Board of Directors on March 7, 2006

    

    

     

    ACI
      HOLDING, INC., a Delaware corporation (the “Corporation”), sets forth herein the
      terms of this Stock Option Plan (the “Plan”) as follows:

     

    

     

    
      	1.  	
              PURPOSE

            

    

     

     

    The
      Plan
      is intended to advance the interests of the Corporation by providing eligible
      individuals (as designated pursuant to Section 4 below) an opportunity to
      acquire (or increase) a proprietary interest in the Corporation, which thereby
      will create a stronger incentive to expend maximum effort for the growth and
      success of the Corporation and its subsidiaries and will encourage such eligible
      individuals to remain in the employ or service of the Corporation or that of
      one
      or more of its subsidiaries. Each stock option granted under the Plan (an
“Option”) is intended to be an “incentive stock option” (“Incentive Stock
      Option”) within the meaning of Section 422 of the Internal Revenue Code of 1986,
      or the corresponding provision of any subsequently enacted tax statute, as
      amended from time to time (the “Code”), except to the extent that any such
      Option would exceed the limitations set forth in Section 7 below and except
      for
      Options specifically designated at the time of grant as not being “incentive
      stock options.”

     

     

    
      	2.  	
              ADMINISTRATION

            

    

     

     

    
      	2.1.  	
              Board

            

    

     

     

    The
      Plan
      shall be administered by the Board of Directors of the Corporation (the
“Board”), which shall have the full power and authority to take all actions and
      to make all determinations required or provided for under the Plan or any Option
      granted or Option Agreement (as defined in Section 8 below) entered into
      hereunder and all such other actions and determinations not inconsistent with
      the specific terms and provisions of the Plan deemed by the Board to be
      necessary or appropriate to the administration of the Plan or any Option granted
      or Option Agreement entered into hereunder. The interpretation and construction
      by the Board of any provision of the Plan or of any Option granted or Option
      Agreement entered into hereunder shall be final and conclusive.

     

     

    
      	2.2.  	
              Committee

            

    

     

     

    The
      Board
      may from time to time appoint a Stock Option Committee (the “Committee”). The
      Board, in its sole discretion, may provide that the role of the Committee shall
      be limited to making recommendations to the Board concerning any determinations
      to be made and actions to be taken by the Board pursuant to or with respect
      to
      the Plan, or the Board may delegate to the Committee such powers and authorities
      related to the administration of the Plan, as set forth in Section 2.1 above,
      as
      the Board shall determine, consistent with the Certificate of Incorporation
      and
      By-laws of the Corporation and applicable law. In the event that the Plan or
      any
      Option granted or Option Agreement entered into hereunder provides for any
      action to be taken by or determination to be made by the Board, such action
      may
      be taken by or such determination may be made by the Committee if the power
      and
      authority to do so has been delegated to the Committee by the Board as provided
      for in this Section. Unless otherwise expressly determined by the Board, any
      such action or determination by the Committee shall be final and
      conclusive.

     

     

    
      	2.3.  	
              No
                Liability

            

    

     

     

    No
      member
      of the Board or of the Committee shall be liable for any action or determination
      made, or any failure to take or make an action or determination, in good faith
      with respect to the Plan or any Option granted or Option Agreement entered
      into
      hereunder.

     

     

    
      	3.  	
              STOCK

            

    

     

     

    The
      stock
      that may be issued pursuant to Options granted under the Plan shall be shares
      of
      Series B Common Stock of the Corporation (the “Stock”), which shares may be
      treasury shares or authorized but unissued shares. The number of shares of
      Stock
      that may be issued pursuant to Options granted under the Plan shall not exceed
      in the aggregate 477,744 shares of Stock, which number of shares is subject
      to
      adjustment as provided in Section 18 below. If any Option expires, terminates
      or
      is terminated for any reason prior to exercise in full, the shares of Stock
      that
      were subject to the unexercised portion of such Option shall be available for
      future Options granted under the Plan.

     

     

    
      	4.  	
              ELIGIBILITY

            

    

     

     

    Options
      may be granted under the Plan to any employee of the Corporation or any
“subsidiary corporation” thereof within the meaning of Section 424(f) of the
      Code (a “Subsidiary”) (including any such employee who is an officer or director
      of the Corporation or any Subsidiary) as the Board shall determine and designate
      from time to time prior to expiration or termination of the Plan. An individual
      may hold more than one Option, subject to such restrictions as are provided
      herein.

     

     

    
      	5.  	
              EFFECTIVE
                DATE AND TERM OF THE PLAN

            

    

     

     

    
      	5.1.  	
              Effective
                Date

            

    

     

     

    The
      Plan
      shall become effective as of the date of adoption by the Board, subject to
      stockholders’ approval of the Plan within one year of such effective date by a
      majority of the votes cast at a duly held meeting of the stockholders of the
      Corporation at which a quorum representing a majority of all outstanding stock
      is present, either in person or by proxy, and voting on the matter, or by
      written consent in accordance with applicable state law and the articles of
      incorporation and by-laws of the Corporation and in a manner that satisfies
      the
      requirements of Rule 16b-3(b) of the Exchange Act; provided,
      however,
      that
      upon approval of the Plan by the stockholders of the Corporation as set forth
      above, all options granted under the Plan on or after the effective date shall
      be fully effective as if the stockholders of the Corporation had approved the
      Plan on the effective date.

     

     

    
      	5.2.  	
              Term

            

    

     

     

    The
      plan
      shall have no termination date, but no grant of an ISO may occur after the
      date
      that is ten years after the effective date.

     

     

    
      	6.  	
              GRANT
                OF OPTIONS

            

    

     

     

    
      	6.1.  	
              General

            

    

     

     

    Subject
      to the terms and conditions of the Plan, the Board may, at any time and from
      time to time, grant to such eligible individuals as recommended by the Chief
      Executive Officer of the Corporation and approved by the Board (“Optionees”)
      Options to purchase such number of shares of the Stock on such terms and
      conditions as the Board may determine, including any terms or conditions which
      may be necessary to qualify such Options as “incentive stock options” under
      Section 422 of the Code. Such authority specifically includes the authority,
      in
      order to effectuate the purposes of the Plan but without amending the Plan,
      to
      modify grants to eligible individuals who are foreign nationals or are
      individuals who are employed outside the United States to recognize differences
      in local law, tax policy or custom. The date on which the Board approves the
      grant of an Option shall be considered the date on which such Option is
      granted.

     

     

    
      	6.2.  	
              Limitation
                on Grants of Options to
                Executives

            

    

     

     

    The
      maximum number of Shares subject to Options that can be awarded under the Plan
      to any executive officer of the Corporation, a subsidiary, or to any other
      person eligible for the grant of an Option under Section 4 is 238,872
      shares.

     

     

    
      	7.  	
              LIMITATION
                ON INCENTIVE STOCK OPTIONS

            

    

     

     

    An
      Option
      shall constitute an Incentive Stock Option only to the extent that the aggregate
      fair market value (determined at the time the Option is granted) of the Stock
      with respect to which Incentive Stock Options are exercisable for the first
      time
      by any Optionee during any calendar year (under the Plan and all other plans
      of
      the Optionee’s employer corporation and its parent and subsidiary corporations
      within the meaning of Section 422(d) of the Code) does not exceed $100,000.
      This
      limitation shall be applied by taking Options into account in the order in
      which
      they were granted.

     

     

    
      	8.  	
              OPTION
                AGREEMENTS

            

    

     

     

    All
      Options granted pursuant to the Plan shall be evidenced by written agreements
      (“Option Agreements”) to be executed by the Corporation and by the Optionee, in
      such form or forms as the Board shall from time to time determine. Option
      Agreements covering Options granted from time to time or at the same time need
      not contain similar provisions; provided,
      however, that all such Option Agreements shall comply with all terms of the
      Plan.

     

     

    
      	9.  	
              OPTION
                PRICE

            

    

     

     

    The
      purchase price of each share of the Stock subject to an Option (the “Option
      Price”) shall be fixed by the Board and stated in each Option Agreement;
      provided that the minimum Option Price with respect to 238,872 shares of Stock
      shall be $10.00 per share, and the minimum Option Price with respect to the
      remaining 238,872 shares of Stock shall be $20.00 per share. In the case of
      an
      Option that is intended to constitute an Incentive Stock Option, the option
      price shall be not less than the fair market value of a share of the Stock
      covered by the Option on the date the Option is granted (as determined in good
      faith by the Board); provided,
      however,
      that in
      the event the Optionee would otherwise be ineligible to receive an Incentive
      Stock Option by reason of the provisions of Sections 422(b)(6) and 424(d) of
      the
      Code (relating to stock ownership of more than ten percent), the Option Price
      of
      an Option which is intended to be an Incentive Stock Option shall be not less
      than the greater of par value or 110 percent of the fair market value of a
      share
      of the Stock covered by the Option at the time such Option is granted. In the
      event that the Stock is listed on an established national or regional stock
      exchange, is admitted to quotation on the National Association of Securities
      Dealers Automated Quotation System, or is publicly traded in an established
      securities market, in determining the fair market value of the Stock, the Board
      shall use the closing price of the Stock on such exchange or System or in such
      market (the highest such closing price if there is more than one such exchange
      or market) on the date the Option is granted (or, if there is no such closing
      price, then the Board shall use the mean between the highest bid and lowest
      asked prices or between the high and low prices on such date), or, if no sale
      of
      the Stock has been made on such day, on the next preceding day on which any
      such
      sale shall have been made.

     

     

    
      	10.  	
              TERM
                AND EXERCISE OF OPTIONS

            

    

     

     

    
      	10.1.  	
              Term

            

    

     

     

    Each
      Option granted under the Plan shall terminate and all rights to purchase shares
      thereunder shall cease upon the expiration of ten years from the date such
      Option is granted, or on such date prior thereto as may be fixed by the Board
      and stated in the Option Agreement relating to such Option; provided, however,
      that in the event the Optionee would otherwise be ineligible to receive an
      Incentive Stock Option by reason of the provisions of Sections 422(b)(6) and
      424(d) of the Code (relating to stock ownership of more than ten percent),
      an
      Option granted to such Optionee which is intended to be in Incentive Stock
      Option shall in no event be exercisable after the expiration of five years
      from
      the date it is granted.

     

     

    
      	10.2.  	
              Option
                Period and Limitations on
                Exercise

            

    

     

     

    Each
      Option granted under the Plan shall be exercisable, in whole or in part, at
      any
      time and from time to time over a period commencing on or after the date of
      grant and ending upon the expiration or termination of the Option, as the Board
      shall determine and set forth in the Option Agreement relating to such Option;
      provided, however, that, as set forth herein, no Option may become exercisable
      at a rate faster than 1/48th
      of the
      shares originally covered thereby for each month which shall have expired since
      the date the Option was granted. Any limitation on the exercise of an Option
      contained in any Option Agreement may be rescinded, modified or waived by the
      Board, in its sole discretion, at any time and from time to time after the
      date
      of grant of such Option, so as to accelerate the time at which the Option may
      be
      exercised. Notwithstanding the foregoing, Options that may be granted pursuant
      to the an offer to exchange Options to be made by the Company is 2001, may,
      except as limited by Section 16.5 of the Plan, become exercisable by an optionee
      in 18 equal monthly installments.

     

     

    
      	10.3.  	
              Method
                of Exercise

            

    

     

     

    An
      Option
      that is exercisable hereunder may be exercised by delivery to the Corporation
      on
      any business day, at its principal office addressed to the attention of the
      President, of written notice of exercise, which notice shall specify the number
      of shares with respect to which the Option is being exercised and shall be
      accompanied by payment in full of the Option Price of the shares for which
      the
      Option is being exercised. The minimum number of shares of Stock with respect
      to
      which an Option may be exercised, in whole or in part, at any time shall be
      the
      lesser of 100 shares or the maximum number of shares available for purchase
      under the Option at the time of exercise. Payment of the Option Price for the
      shares of Stock purchased pursuant to the exercise of an Option shall be made,
      as determined by the Board and set forth in the Option Agreement pertaining
      to
      an Option, either (i) in cash or by check payable to the order of the
      Corporation (which check may, in the discretion of the Corporation, be required
      to be certified); (ii) through the tender to the Corporation of shares of Stock,
      which shares shall be valued, for purposes of determining the extent to which
      the Option Price has been paid thereby, at their fair market value (determined
      in the manner described in Section 9 above) on the date of exercise; (iii)
      to
      the extent permitted by applicable law, by the delivery of a promissory note
      of
      the person exercising the Option to the Corporation on such terms as shall
      be
      set out in the Option Agreement; (iv) to the extent permitted by applicable
      law,
      by causing the Corporation to withhold shares of stock otherwise issuable
      pursuant to exercise of an option equal in value to the Option Price or portion
      thereof to be satisfied pursuant to this clause (iv); or (v) by a combination
      of
      the methods described in (i) and (ii); provided, however, that the Board may
      in
      its discretion impose and set forth in the Option Agreement pertaining to an
      Option such limitations or prohibitions on the use of shares of Stock to
      exercise Options as it deems appropriate. An attempt to exercise any Option
      granted hereunder other than as set forth above shall be invalid and of no
      force
      and effect. Promptly after the exercise of an Option and the payment in full
      of
      the Option Price of the shares of Stock covered thereby, the individual
      exercising the Option shall be entitled to the issuance of a Stock certificate
      or certificates evidencing his ownership of such shares. A separate Stock
      certificate or certificates shall be issued for any shares purchased pursuant
      to
      the exercise of an Option which is an Incentive Stock Option, which certificate
      or certificates shall not include any shares which were purchased pursuant
      to
      the exercise of an Option which is not an Incentive Stock Option. An individual
      holding or exercising an Option shall have none of the rights of a stockholder
      until the shares of Stock covered thereby are fully paid and issued to him,
      and,
      except as provided in Section 18 below, no adjustment shall be made for
      dividends or other rights for which the record date is prior to the date of
      such
      issuance. 

     

     

    
      	11.  	
              TRANSFERABILITY

            

    

     

     

    
      	11.1.  	
              Transferability
                of Options

            

    

     

     

    During
      the lifetime of an Optionee, only such Optionee or any permitted transferee
      (or,
      in the event of legal incapacity or incompetency, the Optionee’s or permitted
      transferee’s guardian or legal representatives) may exercise the Option. No
      Option shall be assignable or transferable by the Optionee to whom it is
      granted, other than by will or the laws of descent and distribution or, except
      with respect to an Incentive Stock Option, pursuant to a domestic relations
      order (within the meaning of Rule 16a-12 of the Securities Exchange Act of
      1934,
      as amended).

     

     

    
      	11.2.  	
              Stock
                and Warrant Holders’ Agreement and Voting
                Agreement

            

    

     

     

    Shares
      of
      Stock acquired pursuant to exercise of an Option shall be subject to the ACI
      Holding, Inc. Stock and Warrant Holders’ Agreement entered into as of December
      31, 1993 (the “Stock and Warrant Holders’ Agreement”) and the Voting Agreement
      dated December 31, 1993, and the Board shall so provide in each Option
      Agreement.

     

     

    
      	12.  	
              TERMINATION
                OF EMPLOYMENT

            

    

     

     

    Upon
      the
      termination of the employment of an Optionee with the Corporation or a
      Subsidiary, other than by reason of the death or “permanent and total
      disability” (within the meaning of Section 22(e)(3) of the Code) of such
      Optionee, any Option granted to an Optionee pursuant to the Plan shall
      terminate, and such Optionee shall have no further right to purchase shares
      of
      Stock pursuant to such Option; provided,
      however,
      that in
      the event that such termination of employment is by reason of the Optionee’s
      retirement with the consent of the Corporation or a Subsidiary in accordance
      with the normal retirement policies of the Corporation or a Subsidiary, as
      the
      case may be, then such Optionee shall have the right (subject to the general
      limitations on exercise set forth in Section 10.2 above), at any time within
      three months after such retirement and prior to termination of the Option
      pursuant to Section 10.1 above, to exercise, in whole or in part, any Option
      held by such Optionee at the date of such retirement, whether or not such Option
      was exercisable immediately prior to such retirement; provided further,
      that
      the Board may provide, by inclusion of appropriate language in any Option
      Agreement, that an Optionee may (subject to the general limitations on exercise
      set forth in Section 10.2 above), in the event of termination of employment
      of
      the Optionee with the Corporation or a Subsidiary, exercise an Option, in whole
      or in part, at any time subsequent to such termination of employment and prior
      to termination of the Option pursuant to Section 10.2 above, either subject
      to
      or without regard to any installment limitation on exercise imposed pursuant
      to
      Section 10.2 above, as the Board, in its sole and absolute discretion, shall
      determine and set forth in the Option Agreement. Whether a termination of
      employment is to be considered by reason of retirement with the consent of
      the
      Corporation or a Subsidiary in accordance with the normal retirement policies
      of
      the Corporation or a Subsidiary, as the case may be, and whether a leave of
      absence or leave on military or government service shall constitute a
      termination of employment for purposes of the Plan, shall be determined by
      the
      Board, which determination shall be final and conclusive. For purposes of the
      Plan, a termination of employment with the Corporation or a Subsidiary shall
      not
      be deemed to occur if the Optionee is immediately thereafter employed with
      the
      Corporation or any other Subsidiary.

     

     

    
      	13.  	
              RIGHTS
                IN THE EVENT OF DEATH OR
                DISABILITY

            

    

     

     

    
      	13.1.  	
              Death

            

    

     

     

    If
      an
      Optionee dies while employed by the Corporation or a Subsidiary, the executors
      or administrators or legatees or distributees of such Optionee’s estate shall
      have the right (subject to the general limitations on exercise set forth in
      Section 10.2 above), at any time within one year after the date of such
      Optionee’s death and prior to termination of the Option pursuant to Section 10.1
      above, to exercise any Option held by such Optionee at the date of such
      Optionee’s death, whether or not such Option was exercisable immediately prior
      to such Optionee’s death; provided,
      however,
      that
      the Board may provide by inclusion of appropriate language in any Option
      Agreement that, in the event of the death of an Optionee, the executors or
      administrators or legatees or distributees of such Optionee’s estate may
      exercise an Option (subject to the general limitations on exercise set forth
      in
      Section 10.2 above), in whole or in part, at any time subsequent to such
      Optionee’s death and prior to termination of the Option pursuant to Section 10.1
      above, either subject to or without regard to any installment limitation on
      exercise imposed pursuant to Section 10.2 above, as the Board, in its sole
      and
      absolute discretion, shall determine and set forth in the Option
      Agreement.

     

     

    
      	13.2.  	
              Disability

            

    

     

     

    If
      an
      Optionee terminates employment with the Corporation or a Subsidiary by reason
      of
      the “permanent and total disability” (within the meaning of Section 22(e)(3) of
      the Code) of such Optionee, then such Optionee shall have the right (subject
      to
      the general limitations on exercise set forth in Section 10.2 above), at any
      time within one year after such termination of employment and prior to
      termination of the Option pursuant to Section 10.1 above, to exercise, in whole
      or in part, any Option held by such Optionee at the date of such termination
      of
      employment, whether or not such Option was exercisable immediately prior to
      such
      termination of employment; provided, however, that the Board may provide, by
      inclusion of appropriate language in any Option Agreement, that an Optionee
      may
      (subject to the general limitations on exercise set forth in Section 10.2
      above), in the event of the termination of employment of the Optionee with
      the
      Corporation or a Subsidiary by reason of the “permanent and total disability”
(within the meaning of Section 22(e)(3) of the Code) of such Optionee, exercise
      an Option, in whole or in part, at any time subsequent to such termination
      of
      employment and prior to termination of the Option pursuant to Section 10.1
      above, either subject to or without regard to any installment limitation on
      exercise imposed pursuant to Section 10.2 above as the Board, in its sole and
      absolute discretion, shall determine and set forth in the Option Agreement.
      Whether a termination of employment is to be considered by reason of “permanent
      and total disability” for purposes of this Plan shall be determined by the
      Board, which determination shall be final and conclusive.

     

     

    
      	14.  	
              USE
                OF PROCEEDS

            

    

     

     

    The
      proceeds received by the Corporation from the sale of Stock pursuant to Options
      granted under the Plan shall constitute general funds of the
      Corporation.

     

     

    
      	15.  	
              SECURITIES
                ACT OF 1933

            

    

     

     

    The
      Corporation shall not be required to sell or issue any shares of Stock under
      any
      Option if the sale or issuance of such shares would constitute a violation
      by
      the individual exercising the Option or the Corporation of any provisions of
      any
      law or regulation of any governmental authority, including without limitation
      any federal or state securities laws or regulations. If at any time the
      Corporation shall determine, in its discretion, that the listing, registration,
      or qualification of any shares subject to the Option upon any securities
      exchange or under any state or regulatory or self-regulatory body is necessary
      or desirable as a condition of, or in connection with, the issuance or purchase
      of shares, the Option may not be exercised in whole or in part unless such
      listing, registration, qualification, consent, or approval shall have been
      effected or obtained free of any conditions not acceptable to the Corporation,
      and any delay caused thereby shall in no way affect the date of termination
      of
      the Option. Specifically in connection with the Securities Act of 1933, as
      amended (the “Securities Act”), upon exercise of any Option, unless a
      registration statement under such Act is in effect with respect to the shares
      of
      Stock covered by such Option, the Corporation shall not be required to sell
      or
      issue such shares unless the Corporation has received evidence satisfactory
      to
      it that the holder of such Option may acquire such shares pursuant to an
      exemption from registration under such Act. Any determination in this connection
      by the Corporation shall be final, binding, and conclusive. The Corporation
      may,
      but shall in no event be obligated to, register any securities covered hereby
      pursuant to the Securities Act. The Corporation shall not be obligated to take
      any affirmative action in order to cause the exercise of an Option or the
      issuance of shares pursuant thereto to comply with any law or regulation of
      any
      governmental authority. As to any jurisdiction that expressly imposes the
      requirement that an Option shall not be exercisable unless and until the shares
      of Stock covered by such Option are registered or are subject to an available
      exemption from registration, the exercise of such Option (under circumstances
      in
      which the laws of such jurisdiction apply) shall be deemed conditioned upon
      the
      effectiveness of such registration or the availability of such an
      exemption.

     

    

     

    
      	16.  	
              SECURITIES
                EXCHANGE ACT OF 1934; RULE
                16b-3

            

    

     

     

    
      	16.1.  	
              General

            

    

     

     

    The
      Plan
      is intended to comply with Rule 16b-3 (“Rule 16b-3”) under the Securities
      Exchange Act of 1934, as amended (the “Exchange Act”), from and after the date
      on which the Corporation first registers a class of equity security under
      Section 12 of the Exchange Act (the “Registration Date”). From and after the
      Registration Date, any provision inconsistent with Rule 16b-3 (as in effect
      on
      the Registration Date) shall, to the extent permitted by law and determined
      to
      be advisable by the Committee (constituted in accordance with Section 16.2)
      or
      the Board (acting pursuant to Section 16.3), be inoperative and void. In
      addition, from and after the Registration Date the provisions set forth in
      Sections 16.2 through 16.5 shall apply.

     

     

    
      	16.2.  	
              Stock
                Option Committee

            

    

     

     

    From
      and
      after the Registration Date, the Committee appointed pursuant to Section 2.2
      shall consist of not fewer than two members of the Board, neither of whom,
      during the period of service on such Committee and the year prior to service
      on
      such Committee, shall have been granted an Option under this Plan or been
      granted or awarded an option or other security under any plan of the Corporation
      other than as permitted under Rule 16b-3(c)(2)(i) and each of whom shall qualify
      (at the time of appointment to the Committee and during all periods of service
      on the Committee) in all respects as a “disinterested person” as defined in Rule
      16b-3.

     

     

    
      	16.3.  	
              Action
                by the Board

            

    

     

     

    From
      and
      after the Registration Date, the Board may act under the Plan other than by,
      or
      in accordance with the recommendations of, the Committee, constituted as set
      forth in Section 16.2 above, only if all members of the Board are “disinterested
      persons” as defined in Rule 16b-3.

     

     

    
      	16.4.  	
              Additional
                Restrictions on Transfer of
                Stock

            

    

     

     

    From
      and
      after the Registration Date, no director, officer or other “insider” of the
      Corporation subject to Section 16 of the Exchange Act shall be permitted to
      sell
      Stock (which such “insider” had received upon exercise of an Option) during the
      six months immediately following the grant of such Option.

     

     

    
      	16.5.  	
              Additional
                Requirement of Stockholders’
Approval

            

    

     

     

    From
      and
      after the Registration Date, no amendment by the Board shall, without approval
      by a majority of the votes cast at a duly held meeting of the stockholders
      of
      the Corporation at which a quorum representing a majority of all outstanding
      stock is present, either in person or by proxy, and voting on the amendment,
      or
      by written consent in accordance with applicable state law and the articles
      of
      incorporation and by-laws of the Corporation, materially increase the benefits
      accruing to Section 16 “insiders” under the Plan or take any other action that
      would require the approval of such stockholders pursuant to Rule
      16b-3.

     

     

    
      	17.  	
              AMENDMENT
                AND TERMINATION OF THE
                PLAN

            

    

     

     

    With
      the
      approval of at least two Management Directors (as defined in the Stock and
      Warrant Holders’ Agreement), the Board may, at any time and from time to time,
      amend, suspend or terminate the Plan as to any shares of Stock as to which
      Options have not been granted; provided,
      however,
      that no
      amendment by the Board shall, without approval by a majority of the votes cast
      at a duly held meeting of stockholders of the Corporation at which a quorum
      representing a majority of all outstanding stock is present, either in person
      or
      by proxy, and voting on the amendment, or by written consent in accordance
      with
      applicable state law and the articles of incorporation and by-laws of the
      Corporation, materially change the requirements as to eligibility to receive
      Options or increase the maximum number of shares of Stock in the aggregate
      that
      may be sold pursuant to Options granted under the Plan (except as permitted
      under Section 18 hereof). The Corporation may also retain the right in an Option
      Agreement to cause a forfeiture of the shares or gain realized by a holder
      of an
      Option on account of the holder taking actions in “competition with the
      Corporation,” as defined in the applicable Option Agreement. Except as permitted
      under Section 18 hereof, no amendment, suspension or termination of the Plan
      shall, without the consent of the holder of the Option, alter or impair rights
      or obligations under any Option theretofore granted under the Plan.

     

     

    
      	18.  	
              EFFECT
                OF CHANGE IN
                CAPITALIZATION

            

    

     

     

    
      	18.1.  	
              Changes
                in Stock

            

    

     

     

    If
      the
      number of outstanding shares of Stock is increased or decreased or changed
      into
      or exchanged for a different number or kind of shares or other securities of
      the
      Corporation by reason of the conversion of the outstanding shares of Series
      B
      Common Stock into shares of Series A Common Stock of the Corporation pursuant
      to
      the terms of the Charter of the Corporation, or by reason of any
      recapitalization, reclassification, stock split-up, combination of shares,
      exchange of shares, stock dividend or other distribution payable in capital
      stock, or other increase or decrease in such shares effected without receipt
      of
      consideration by the Corporation, occurring after the effective date of the
      Plan, the number and kinds of shares for the purchase of which Options may
      be
      granted under the Plan shall be adjusted proportionately and accordingly by
      the
      Corporation. In addition, the number and kind of shares for which Options are
      outstanding shall be adjusted proportionately and accordingly, so that the
      proportionate interest of the holder of the Option immediately following such
      event shall, to the extent practicable, be the same as immediately prior to
      such
      event. Any such adjustment in outstanding Options shall not change the aggregate
      Option Price payable with respect to shares subject to the unexercised portion
      of the Option outstanding but shall include a corresponding proportionate
      adjustment in the Option Price per share.

     

     

    
      	18.2.  	
              Reorganization
                with Corporation Surviving

            

    

     

     

    Subject
      to Section 18.3 hereof, if the Corporation shall be the surviving corporation
      in
      any reorganization, merger or consolidation of the Corporation with one or
      more
      other corporations, any Option theretofore granted pursuant to the Plan shall
      pertain to and apply to the securities to which a holder of the number of shares
      of Stock subject to such Option would have been entitled immediately following
      such reorganization, merger or consolidation, with a corresponding proportionate
      adjustment of the Option Price per share so that the aggregate Option Price
      thereafter shall be the same as the aggregate Option Price of the shares,
      remaining subject to the Option immediately prior to such reorganization, merger
      or consolidation.

     

     

    
      	18.3.  	
              Other
                Reorganizations; Sale of
                Assets/Stock

            

    

     

     

    Upon
      the
      dissolution or liquidation of the Corporation, or upon a merger, consolidation
      or reorganization of the Corporation with one or more other corporations in
      which the Corporation is not the surviving corporation, or upon a sale of
      substantially all of the assets of the Corporation to another corporation,
      or
      upon any transaction (including, without limitation, a merger or reorganization
      in which the Corporation is the surviving corporation) approved by the Board
      which results in any person or entity (other than persons who are holders of
      stock of the Corporation at the time the Plan is approved by the Stockholders
      and other than an Affiliate) owning 80 percent or more of the combined voting
      power of all classes of stock of the Corporation, the Plan and all Options
      outstanding hereunder shall terminate, except to the extent provision is made
      in
      writing in connection with such transaction for the continuation of the Plan
      and/or the assumption of the Options theretofore granted, or for the
      substitution for such Options of new options covering the stock of a successor
      corporation, or a parent or subsidiary thereof, with appropriate adjustments
      as
      to the number and kinds of shares and exercise prices, in which event the Plan
      and Options theretofore granted shall continue in the manner and under the
      terms
      so provided. In the event of any such termination of the Plan, each individual
      holding an Option shall have the right (subject to the general limitations
      on
      exercise set forth in Section 10.2 above), immediately prior to the occurrence
      of such termination and during a period of at least thirty days prior to such
      termination, to exercise such Option in whole or in part, whether or not such
      Option was otherwise exercisable at the time such termination occurs and without
      regard to any installment limitation on exercise imposed pursuant to Section
      10.2 above. The Board shall send written notice of an event that will result
      in
      such a termination to all individuals who hold Options not later than the thirty
      days prior to the termination.

     

     

    
      	18.4.  	
              Adjustments

            

    

     

     

    Adjustments
      under this Section 18 related to stock or securities of the Corporation shall
      be
      made by the Board, whose determination in that respect shall be final, binding
      and conclusive. No fractional shares of Stock or units of other securities
      shall
      be issued pursuant to any such adjustment, and any fractions resulting from
      any
      such adjustment shall be eliminated in each case by rounding downward to the
      nearest whole share or unit.

     

     

    
      	18.5.  	
              No
                Limitations on Corporation

            

    

     

     

    The
      grant
      of an Option pursuant to the Plan shall not affect or limit in any way the
      right
      or power of the Corporation to make adjustments, reclassifications,
      reorganizations or changes of its capital or business structure or to merge,
      consolidate, dissolve or liquidate, or to sell or transfer all or any part
      of
      its business or assets.

     

     

    
      	19.  	
              DISCLAIMER
                OF RIGHTS

            

    

     

     

    No
      provision in the Plan or in any Option granted or Option Agreement entered
      into
      pursuant to the Plan shall be construed to confer upon any individual the right
      to remain in the employ of the Corporation or any Subsidiary, or to interfere
      in
      any way with the right and authority of the Corporation or any Subsidiary either
      to increase or decrease the compensation of any individual at any time, or
      to
      terminate any employment or other relationship between any individual and the
      Corporation or any Subsidiary. The obligation of the Corporation to pay any
      benefits pursuant to this Plan shall be interpreted as a contractual obligation
      to pay only those amounts described herein, in the manner and under the
      conditions prescribed herein. The Plan shall in no way be interpreted to require
      the Corporation to transfer any amounts to a third party trustee or otherwise
      hold any amounts in trust or escrow for payment to any participant or
      beneficiary under the terms of the Plan.

     

     

    
      	20.  	
              NONEXCLUSIVITY
                OF THE PLAN

            

    

     

     

    Neither
      the adoption of the Plan nor the submission of the Plan to the stockholders
      of
      the Corporation for approval shall be construed as creating any limitations
      upon
      the right and authority of the Board to adopt such other incentive compensation
      arrangements (which arrangements may be applicable either generally to a class
      or classes of individuals or specifically to a particular individual or
      individuals) as the Board in its discretion determines desirable, including,
      without limitation, the granting of stock options otherwise than under the
      Plan.

     

     

    This
      Plan
      was duly adopted and approved by the Board of Directors of the Corporation
      on
      December 31, 1993 and was duly approved by the stockholders of the Corporation
      on _____________________________.

     

     

    

     

     

    _____________________________

     

     

    David
      P.
      Stokes, Secretary

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