Document:

Exhibit 10.2

			
	Textron Financial Corporation		11575 Great Oaks Way
	Subsidiary of Textron Inc.		Suite 210
Alpharetta, Georgia  30022
(770) 360-9600

PROGRAM AGREEMENT 

dated as of May 10, 2004 

Attention:  General Managers 

Ladies and Gentlemen: 

Textron Financial Corporation
(“Textron Financial”) is pleased to propose the following Builder Network
Financing Facility Program (“Program”) to the following entities: 

	  	All American Homes of Colorado, LLC;

All American Homes of Indiana, LLC;
All American Homes of Iowa, LLC;
All American Homes of Kansas, LLC;

All American Homes of North Carolina, LLC;
All American Homes of Ohio, LLC;

All American Homes of Tennessee, LLC;
and Mod-U-Kraf Homes, LLC 

(collectively referred to herein as
“Company”), for its U.S. builders (the “Builders”). The
above listed entities are independent of one another, and are not jointly or severally
liable for the transactions of every other entity. The following Program provides the
terms and conditions under which Textron Financial may be the provider of inventory
financing to the Builders for their acquisition of modular housing inventory
(“Homes”) from the Company. As hereinafter provided, for the term of this
Program Agreement Textron Financial shall be the exclusive provider of inventory financing
to the Builders of the Company for the acquisition of Homes to the extent that the Company
provides interest free periods or other interest or interest rate subventions or
equivalent incentive programs to such Builders. This Program (and any programs
contemplated hereunder) are not committed lines of credit, and all financing shall be
subject to Textron Financial’s credit and documentation requirements. Nothing
contained herein shall limit Textron Financial’s right to provide or decline to
provide inventory financing to Builders, in amounts and upon terms which shall be
determined by Textron Financial, in its sole and absolute discretion, and without notice
to the Company other than as set forth herein. Textron Financial will notify the Company
in writing in the event it declines to provide a line of credit for inventory financing to
any Builder which shall have applied for the same (however, the failure of Textron
Financial to do so shall not affect Textron Financial’s decision not to extend credit
to such Builder and shall not create any liability on the part of Textron Financial to the
Company). The Company’s obligations hereunder will be guaranteed by All American
Homes, LLC (the “Parent”) as provided for in that certain Guaranty Agreement of
even date herewith (the “Guaranty”). 

			
	1.	Definitions	 
	 	 	 
		A.	Homes shall be further sub-defined as follows:
	 	 	 
	 	 	Model Home:   A Home at a permanent location used as a model for sales of Spec Homes;
	 	 	 
	 	 	Spec Home:  A Home at a permanent location available for immediate sale; and
	 	 	 
	 	 	Display Home:  A Home at a commercial sales location temporarily affixed to the land.
	 	 	 
	 	 	References to the term Home herein,  unless  otherwise noted shall refer  collectively to every type of modular floor
                  plan available for financing.
	 	 	 
	 	B.	Invoices  funded by  Textron  Financial  may  consist of  various  types of costs.  There may be more than one of the
                  following types of cost on any one invoice:
	 	 	 
	 	 	(i)   Unit  Cost - the  cost of the  modular  home,  together  with  delivery  and  attachment  of the Home to the
     foundation as evidenced on the invoice from the Company;
	 	 	 
	 	 	(iii)   Soft Cost - the costs  incurred by Builder for the foundation for the Home,  utility  connections,  costs to
     increase curb and sales appeal including,  but not limited to, driveway,  decking,  landscape and furniture,  and the
     costs of labor associated therewith.
	 	 	 
	2.	Program Terms
	 	 	 
	 	2.1	Payments and Funding:
	 	 	 
	 	 	Payments shall be made to the Company for the Unit Cost unless it is a Builder buyout as outlined
     in section  2.6.  Payments shall be made to the Builder, for Soft Costs.  Payments shall be as follows:
	 	 	 
	 	 	 ALL PERCENTAGES ARE LISTED AFTER GIVING EFFECT TO AN INVOICE OR
     ADVANCE DISCOUNT OF 150 BASIS POINTS

					
	 	A.	Model Home:	 	 
	 	 	 	 	 
	 	 	Model Home:	Advance Amount:	 
	 	 	Unit Cost	100%	 
	 	 	Soft Costs	Lesser of actual costs or 50% of (Unit Cost)	 
	 	 	Textron Financial must have a first position, recorded mortgage on all Model Home lots.

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	 	B.	Spec Home:	 	 
	 	 	 	 	 
	 	 	Spec Home:	Advance Amount:	 
	 	 	Unit Cost	100%	 
	 	 	Soft Costs	Lesser of actual costs or 50% of (Unit Cost)	 
	 	 	 	 	 
	 	 	Textron Financial must have a first position, recorded mortgage on all Spec Home lots.

					
	 	C.	Display Home:	 	 
	 	 	 	 	 
	 	 	Display Home:	Advance Amount:	 
	 	 	Unit Cost	100%	 
	 	 	Soft Costs	Lesser of actual costs or 20% of (Unit Cost)	 
	 	 	 	 	 
	 	 	          Textron Financial
     requires that Builders do not allow any liens to be filed on Display Homes while financed
     by Textron Financial Builder must provide Textron Financial with sufficient information to
     enable Textron Financial to complete a fixture filing on Display Home and Display Home location.

	 	 	
	 	 	The parties acknowledge that Soft Costs
     invoices may be bundled; provided, however, that Textron Financial will do no more than three fundings
     on Soft Costs per Home.  Soft Costs invoices may be presented to Textron Financial by Builder and Textron
     Financial will confirm with the presenter that it has reviewed the invoices for reasonableness and
     confirmed that the work has been completed in a satisfactory manner and that the invoices or the costs
     have not been submitted to Textron Financial for payment prior to the current submission.  Textron
     Financial shall require Builder to have all contractor and other workman liens released upon payment.
     Payments shall be made by Textron Financial to the party designated by the presenter; provided, however
     that Textron Financial shall have the right to otherwise direct payment in the event it reasonably
     believes there is need to do so to protect Textron  Financial's financial and collateral interests

			
	 	2.2  Payment to	 
	 	Company	100% of net  Unit Cost (after giving effect to any discounts)
	 	 	 
	 	2.3  Interest Rate and	 
	 	Payments:	(A)   Free Flooring Period:  A loan by Textron
     Financial to a Builder under an inventory line of credit to finance the acquisition of a Home by such
     Builder from the Company, shall be interest free to such Builder for a period not to exceed 90 days (the
     "Free Flooring Period") to be designated by the Company.  In lieu of interest being paid to Textron
     Financial  during the Free Flooring Period, Company agrees that Textron Financial shall discount each
     Invoice paid by 150 basis points.  In the event the Prime Rate (as defined below) shall exceed

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	 	 	5.5%,  then the discount
     on each Invoice purchased or advance of Unit Cost, or Soft Cost thereafter, and while the Prime
     Rate is in excess of 5.5% shall be increased  by 6.25 basis points for every .25% increase in the
     Prime Rate over 5.5%.  Unless otherwise agreed in writing by Textron Financial and the Company,
     interest shall be payable by the Builder monthly, in arrears, and shall be due and payable by the
     fifteenth (15th) day of the month following the month in which such interest accrues.

	 	 	 
	 	 	 In the event the Company notifies Textron Financial
     that a home has not been set up by the Builder to the agreed upon specifications of the Company, the Company
     shall have the right to notify Textron Financial within 120 days from the original invoice date that they will
     not subsidize the first 90 days of interest.  Textron Financial will then be responsible for collecting
     interest for that time period from the Builder and will refund the above referenced discount to the Company.

	 	 	 
	 	 	During the term of this Program
     Agreement the Company agrees to provide free flooring  periods to Builders only with respect to Homes
     financed under lines of credit extended by Textron Financial and agrees not to provide (or permit any of
     its affiliates to provide) any interest free periods or other interest or interest rate subventions or
     equivalent incentive programs for any Builder in connection with such Builder's obtaining financing for
     Companies Modular Housing from sources other than Textron Financial.

	 	 	 
	 	 	(B)   Builder Rate:  
     Each  Builder will pay interest to Textron Financial from the date any respective invoice or reimbursement
     of costs is paid by Textron Financial ("Invoice Purchase Date") in accordance with the agreements between
     such Builder and Textron  Financial at a basic rate of interest as follows:

				
				
	 	Interest Rate from:
Invoice Purchase	 	 
	 	Date:	Free flooring period	Day 1 - 90
	 	 	Prime Rate	Day 91 - 360
	 	 	Prime + .50%	Day 361 - 720
	 	 	Prime + 1.00%	Day 721 - 1080
	 	 	Minimum Prime 5.5%	 
	 	 	 	 
	 	Documentation Fee:	Generally,
     one time upfront fee of $500 per Home, although Textron reserves the right to increase the fee
     dependent upon state jurisdiction and costs of document filing.

	 	 	 	 
	 	Curtailments/	 	 
	 	Maturity:	Based
     on original invoice date.  Curtailments will be 1% per month starting day 361 and monthly
     thereafter until day 1051.  Homes will be due in full day 1081.
	 
	 	 	 	 

			
	 	 	Note that
     the above Builder Rates, Documentation Fees and Curtailments assume minimum outstandings
     to  Textron Financial at the end of year one of this program of $25,000,000.  In the event
     outstandings at that time do not meet or

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	 	 	exceed
     $25,000,000, the parties agree to discuss alternative rate structures.  At maturity of any loan
     in respect of a Home and irrespective of its credit limit, each Builder will pay a maturity rate of
     interest on such loan in  accordance with the agreements between such Builder and Textron Financial,
     which shall be [Prime + 4.00%].  A default rate of interest may be as provided in the agreements
     between each Builder and Textron Financial and shall be instituted upon defaults of a Builderfor such
     actions which shall include but not be limited to non-payment of sold and unpaid and non-payment after
     demand of matured inventory.  Unless otherwise agreed in writing by Textron Financial, interest shall
     be payable by each Builder monthly, in arrears, and shall be due and payable by the fifteenth (15th)
     day of the month following the month in which such interest accrues.

	 	 	 
	 	 	 (C)   Interest Rate Terms:  
     The interest rates set forth above are annual rates (interest to be calculated on the basis of a 360
     day year for the actual number of days elapsed) and are variable and will be adjusted  monthly.  For
     any month, Prime shall be greater  of: (i) the highest  prime rate of interest announced during such
     month by the Wall Street Journal or such money center bank as Textron  Financial  shall  select from
     time to time, or (ii) Minimum Prime of 5.5%  ("Minimum Prime").  Application  of  payments  to  accrued
     interest  and  loan  balances,  other  than as to immediately  available  funds,  may occur up to two
     business days after such payments are deposited into Textron  Financial's  account to allow for clearance
     of checks and other  similar  instruments and the obtaining of good funds.  Payments  owing from the
     Company,  the Parent or any affiliate to Textron Financial under this Program Agreement, the Repurchase
     Agreement (as defined below), the Risk Pool or under any other  agreement  between the Company and
     Textron  Financial  that are no paid,  when due,  shall bear interest at Prime + 4% until paid in full
     and such  interest  shall be payable upon demand.

	 	 	 
	 	 	Textron Financial will send
     Builders monthly statements for the payment of interest, and will send billing statements to the
     Company monthly for any amounts to be paid by the Company.

	 	 	 
	 	2.4  Invoice Funding	 
	 	Disbursement:	Textron  Financial will fund
     the proceeds of any loan made in respect of a  manufacturer's  invoice for a Home the later of 10 days
     from Textron Financial's receipt of such invoice or 10 days from the invoice date (assuming  such invoice
     and the line of credit of the applicable  Builder are in order and Textron  Financial has approved such
     invoice) with Automated  Clearing  House funds.  All loans to Builders are booked by Textron Financial
     on the date on which the aforesaid invoice is received  and  approved by Textron Financial notwithstanding
     the Company's agreement to delay disbursement of proceeds of such loan as set forth above.

	 	 	 
	 	2.5  Repurchase Agreement [and
	 	Risk Pool Indemnity]
	 	from Company:	(A)   Repurchase Agreement:  
     The Company shall provide repurchase support through a repurchase agreement of even date herewith ("Repurchase

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	 	 	Agreement")
     as more  fully  set  forth  in said Repurchase  Agreement.  The  execution  and  delivery of the
     Repurchase Agreement is a condition precedent to this Program Agreement's becoming effective.

	 	 	 
	 	 	 (B)   Risk Pool Indemnity.  
     TFC shall provide inventory financing to certain Builders, to be determined through mutual written
     agreement of the parties, which may not otherwise qualify for credit approval under normal Textron
     Financial credit underwriting standards (the "Risk Pool").  From time to time the parties shall prepare
     a writing designating the Builders included in the Risk Pool. In addition to and separate from any obligations
     of the Company under the Repurchase Agreement, and on an annual calendar year basis ("Contract  Year"),
     the maximum amount the Company shall be liable to Textron Financial for regarding this indemnity shall be
     the lesser of (i) 20% of the average annual net outstandings on all Textron Financial company Risk Pool
     accounts calculated on a past 12 full month rolling basis (beginning 12 months after the first outstandings
     are funded in the Risk Pool) or if such period is less than 12 months after the first outstandings
     are funded in the Risk Pool, then the monthly average for the total number of months that have
     passed since the initial funding of a Risk Pool account, or (ii) $2,000,000 (Risk Pool Indemnity
     Maximum").  Company will pay Textron Financial within thirty (30) days of request of such losses.
     Textron Financial will, in accordance with its internal company policies, charge losses against
     the Risk Pool within the time period that such losses are recognized by Textron Financial.
     Company's Risk Pool Indemnity liability shall be refreshed in full as of the first day of each
     Contract Year despite any losses that may or may not have been charged against the Risk Pool
     during the prior Contract Year.  After the Risk Pool Indemnity Maximum has been incurred in any
     Contract Year, all remaining credit risk with respect to, and losses occurring from, the Risk Pool
     during that Contract Year will be assumed by Textron Financial (except for the obligations of
     Company and Coachman Industries, Inc. under the respective Repurchase Agreement and Guaranty. as
     agreed to in the Repurchase Agreement).  In such event, the Risk Pool will be fully refreshed on
     the first day of the following Contract Year.  The terms "loss" or "losses" as used in this
     Section shall be defined as any amount owed to Textron Financial by Builders.  Textron Financial
     shall provide reasonable information and proof substantiating any loss submitted for reimbursement
     by Company hereunder.  In the event Textron Financial  subsequently recovers losses that were
     previously charged to the Company, these recoveries will be returned to the Company.  If those
     recoveries were in the same Contract Year as the  charge-off, that recovery amount will offset the
     charge-off for the calculation the Company's maximum obligation.

	 	 	 
	 	2.6  Builder	 
	 	buyout:	The lesser of (i) the
     outstanding balance of any loan advanced in connection  with a Home or (ii)
     the same advance percentage for Unit Costs, and Soft Costs in Model Homes, Display Homes or Spec
     Homes, provided that all amounts advanced shall be due in full upon the earlier of sale of the
     particular Home whose acquisition was financed by such loan, or 36 months from date of the
     original manufacturer's invoice for such Home, or funding of such Soft Costs after which the
     maturity or default rate of interest shall apply.

	 		 
	3.	Other General Terms:	

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	 	3.1  Facility Limit:	Initially
     $65,000,000 (said facility limit to consist of unpaid outstanding principal of loans to
     Builders plus unpurchased invoice approvals issued by Textron Financial for Builders).

	 	 	 
	 	3.2  Initial Term
and Renewal	 
	 	Terms:	Initial three
     year term subject to automatic one year renewals thereafter unless, not less than 90
     days prior to the last day of any then current term  (including,  without  limitation,  the initial
     term),  either the Company or Textron  Financial  shall have given the other party  hereto  written
     notice of its decision not to have the term of this Program Agreement  automatically  extended;  in
     any such case,  the term of this  Program  Agreement  shall  terminate  on the last day of the then
     current term hereof.  The  expiration  of the initial three year term, or any renewal term, of this
     Program  Agreement  shall  not  relieve  the  Company  of (a)  any of its  unperformed  obligations
     hereunder or (b) any of its obligations  under the Repurchase  Agreement,  any Risk Pool Indemnity,
     or any other agreement with Textron  Financial in respect of loans made or any  commitments  issued
     pursuant to the Program prior to such expiration.

	 	 	 
	 	3.3  Textron Financial	 

	 	Early Termination:	Textron
     Financial may terminate the term of this Program Agreement prior to its scheduled
     termination  date by giving the Company not less than twenty (20) days' prior written notice of its
     intent to so terminate as a result of (a) any default by the Company under this Program  Agreement,
     the Repurchase  Agreements,  or any Risk Pool Indemnity,  which remains uncured for the greater of
     thirty  (30) days after  receipt by the Company of written  notice of the  existence  thereof  from
     Textron  Financial or such other cure period provided for herein or therein,  provided that no such
     thirty (30) day cure  period  shall be provided  if such  default or breach is not  susceptible  to
     being cured or, if curable,  the Company shall have not promptly  commenced  efforts to effect such
     cure and diligently pursued the same during such 30-day period, (b) a reasonable  determination by
     Textron Financial that the annual financial  statements  delivered to Textron Financial pursuant to
     Section 3.5 hereof  reflect a material  adverse  change in the financial  condition of the Company,
     (c) a reasonable  determination by Textron Financial that the annual financial statements delivered
     to Textron  Financial  pursuant  to Section  3.5 hereof  reflect a material  adverse  change in the
     financial  condition of the Parent, (d) the termination by the Company of the Repurchase  Agreement
     in accordance  with the terms thereof,  and (e) any default by the Parent under the Guaranty (after
     the expiration of any applicable  cure period) or the  termination of the continuing  nature of the
     Guaranty by the Parent.  Notwithstanding such early termination,  the Company shall be obligated in
     accordance with all the terms and conditions under the Program,  including without  limitation this
     Program  Agreement,  the Repurchase  Agreement,  any Risk Loss  Indemnity,  and any other agreement
     between the  Company  and Textron  Financial,  until such times as all  obligations,  monetary  and
     otherwise, in respect of the Program and loans made or  commitments/approvals  issued prior to such
     early termination date are satisfied with Textron  Financial.  For the avoidance of doubt, upon the
     early termination date,  Textron Financial shall have no obligations to advance any additional sums
     or make any additional loans under the Program.

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	 	3.4  Company Early	 
	 	Termination:	The Company may
     terminate the term of this Program  Agreement  prior to its scheduled  termination
     date by giving Textron  Financial not less than twenty (20) days prior written notice of its intent
     to so  terminate in the event of any  material  breach by Textron  Financial of any of its material
     obligations  under this Program  Agreement or any of the other  agreements  contemplated  herein to
     which  Textron  Financial is a party.  Notwithstanding  such early  termination,  the Company shall
     continue to be  obligated in  accordance  with all of the terms and  conditions  under the Program,
     including  without  limitation this Program  Agreement,  the Repurchase  Agreements,  any Risk Loss
     Indemnity,  and any other  agreement  between the Company and  Textron  Financial  entered  into in
     connection with the  transactions  contemplated by this Program  Agreement,  until such time as all
     obligations,   monetary   and   otherwise,   in   respect  of  the   Program   and  loans  made  or
     commitments/approvals  issued  prior to such early  termination  date are  satisfied  with  Textron
     Financial.  For the avoidance of doubt, upon the early  termination  date,  Textron Financial shall
     have no obligations to advance any additional sums to Builders under the Program.

	 	 	 
	 	3.5  Covenants:	Commencing
     with fiscal year ended December 31, 2004 and for each fiscal year during the term of this Program Agreement, the Company shall
     deliver (if not available by public records through SEC filings) to Textron Financial audited
     consolidated financial statements of (a) the Company and its consolidated subsidiaries and (b) the
     Parent and its consolidated subsidiaries (including among such consolidated subsidiaries the
     Company) for each such fiscal year, prepared in accordance with generally accepted accounting
     principles, immediately upon the submission of the same to its other lenders or 90 days after the
     end of each such fiscal year, whichever is earlier.  The Parent shall deliver to Textron Financial
     unaudited, internally prepared consolidated financial statements of the Parent and its
     consolidated subsidiaries (including the Company) within thirty (30) days of the end of each
     fiscal quarter during the term of this Program Agreement.

	 	 	 
	 	3.6  Documentation:	All legal
     documentation ("Lending  Documents")  entered  into between the parties to this Program
     Agreement and any third parties as applicable  must be  satisfactory  to Textron  Financial and its
     counsel.

	 	 	 
	4.  Other Agreements:	 
	 	 	 
	 	4.1  Default	Should Company
     fail to perform any act contemplated  herein or any covenant  contained herein,  and
     the same shall  continue  after five (5)  business  days  written  notice to Company  from  Textron
     Financial  regarding  such  failure,  then the Company  shall be in default  under the  Program.  A
     default under the Program Agreement shall also be deemed a default under the Repurchase  Agreement,
     any Risk Loss  Indemnity,  and any other agreement  between the Company and Textron  Financial and,
     upon default  hereunder,  Textron  Financial shall have all of the rights and remedies provided for
     in this Program  Agreement,  in the Repurchase  Agreement,  any Risk Loss  Indemnity,  and any such
     other agreement and all of the rights and remedies afforded Textron Financial at law and in equity.

	 	 	 
	 	4.2  Company	 

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	 	Disclaimers:	Solely as between
     Company and Textron  Financial,  Company hereby  disclaims any present or future
     security  interest or other  interest in its favor in the  collateral  financed or  refinanced  for
     Builders  by Textron  Financial  (and in any  proceeds  thereof),  effective  with  respect to each
     Builder as of the date that  Textron  Financial  first  advances  funds on behalf of such  Builder,
     unless and until Company exercises its obligations, if any, under the Repurchase Agreement.

	 	 	 
	 	4.3  No Partnership	 
	 	or Agency:	Textron
     Financial  and Company  agree that  neither  this  Program  Agreement  nor the  Repurchase
     Agreement,  nor  any  Risk  Loss  Indemnity  create  any  partnership,   joint  venture  or  agency
     relationship  between them. In addition,  this Agreement  does not constitute  either party hereto,
     or any of their  officers,  directors or  employees,  as the agent or legal  representative  of the
     other for any purpose whatsoever.

	 	 	 
	 	4.4  Entire	 
	 	Agreement:	This Program
     Agreement,  together with any other written  agreements  duly executed by the parties
     contemporaneously  herewith or subsequent hereto  addressing the same subject matter,  contains the
     entire understanding of the parties with respect to the subject matter hereof.

	 	 	 
	 	4.5  Set-Off:	Company
     grants  Textron  Financial  the right to set-off any amounts owed to Textron  Financial by
     Company  against any amounts  that may  otherwise  be due  Company,  provided  however  that before
     Textron  Financial  exercises any such right it shall give Company five (5) days written  notice of
     its intent to take such action.

	 	 	 
	 	4.6  No Third Party	 
	 	Beneficiaries:	The provisions
     of this Program Agreement are for the exclusive  benefit of the parties hereto,  and
     nothing  contained herein shall create any rights in any Builder or any other entity claiming to be
     a third party  beneficiary,  nor shall it affect or impair any rights which either party hereto may
     have against any Builder or any other party.

	 	4.7  Negotiated	 
	 	Document:	This Program
     Agreement  is a  negotiated  document and shall not be construed to have meaning less
     favorable  to one party  merely  because  that party is deemed to be the  draftsman of this Program
     Agreement or any part of it.

	 	 	 
	 	4.8  Assignments:	The
     Company  may not  assign  any of its  rights or  obligations  hereunder  under the  Repurchase
     Agreement or under any Risk Loss Indemnity without the prior written consent of Textron  Financial,
     which consent shall not be unreasonably withheld.

	 	 	 
	 	4.9  Governing	 
	 	Law:	THIS  AGREEMENT
     SHALL BE GOVERNED BY AND  CONSTRUED  IN  ACCORDANCE  WITH THE LAWS OF THE STATE OF
     RHODE ISLAND,  WITHOUT REFERENCE TO CONFLICT OF LAW PRINCIPLES.  If any provision of this Agreement
     in any way contravenes the public  policy of any 

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	 		state or
     jurisdiction  where this  Agreement is sought to be enforced,  such provision  shall be
     deemed not to be a part of this Agreement and this Agreement shall remain in full force
     and effect except as to the deletion of such provision.

	 	 	 
	 	4.10  Waiver
of Jury	 
	 	Trial:	THE PARTIES
     HERETO  HEREBY  WAIVE  THEIR  RIGHT TO TRIAL BY JURY OF ANY MATTER  ARISING OUT OF OR
     RELATING TO THIS PROGRAM AGREEMENT OR THE SUBJECT MATTER HEREOF.

	 	 	 
	 	4.11  Counterparts:	This Agreement
     may be executed in counteparts.

	 	 	 
	 	4.12  No Committed	 
	 	Line of Credit:	Nothing herein shall
     constitute a committed  line of credit as to any  particular  Builder,  and
     Textron  Financial shall not be bound to finance any particular  Builder or any particular goods or
     inventory.

	 	 	 
	 	4.13  Affiliate	 
	 	Defined:	As used herein,
     any party which  controls,  is controlled by or under common  control with another
     party shall be deemed an "affiliate" of such other party.  As used in the preceding  sentence,  the
     term "control"  means the possession,  directly or indirectly,  of the power to cause the direction
     of the management and policies of a party,  whether through the ownership of voting securities,  by
     contract or otherwise.

	 	 	 
	 	4.14  Further	 
	 	Assurances:	Company further agrees
     to do, execute and deliver,  or cause to be done,  executed and delivered,
     and agrees to use its best efforts to cause its  permitted  successors  and assigns to do,  execute
     and deliver,  or cause to be done,  executed and  delivered,  all such further acts,  transfers and
     assurances,  for the better  assuring,  conveying  and  confirming  unto Textron  Financial and its
     successors and assigns, all and singular,  the rights and benefits under this Program Agreement and
     otherwise  implementing  the  intention  of the parties  under this Program  Agreement,  as Textron
     Financial and its successors and assigns reasonably shall request.

	 	 	 
	 	4.15  Notices:	All notices
     pursuant to this  Program  Agreement  shall be in writing  and shall be sent:  (1) by
     certified mail, return receipt requested;  or (2) via facsimile to the fax number below, provided a
     copy is sent the same day by nationally  recognized  overnight  courier with receipt  acknowledged.
     Notices  shall be sent to the  address  of the  applicable  party set forth  below,  or such  other
     address as such party may designate from time to time in a notice to the other party.

Upon due execution by Textron
Financial and Company, this Agreement shall constitute a binding contract between Textron
Financial and Company as of the date first set forth above. 

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Textron Financial
Corporation 

By:       ____________________________

Name:  ____________________________

Title:    ____________________________

			
	Address for notices:	Textron Financial Corporation	 
	 	11575 Great Oaks Way
Suite 210
Alpharetta, Georgia 30022	 

[REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK] 

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	 	Attention to the following:	 
	 	 	 
	 	Thomas J. Low
Division President
Facsimile: (770) 777-3348	 
	 	 	 
	 	Thomas H. Kaiser
Vice President and Assistant General Counsel
Facsimile: (770) 360-1458	 

		
	COMPANIES:	 
	 	 
	All American Homes of Colorado, LLC	All American Homes of Indiana, LLC
	 	 
	By:_______________________________	By:_______________________________
	 	 
	Name:_____________________________	Name:_____________________________
	 	 
	Title:______________________________	Title:______________________________
	 	 
	 	 
	All American Homes of Iowa, LLC	All American Homes of Kansas, LLC
	 	 
	By:_______________________________	By:_______________________________
	 	 
	Name:_____________________________	Name:_____________________________
	 	 
	Title:______________________________	Title:______________________________
	 	 
	 	 
	All American Homes of North Carolina, LLC	All American Homes of Ohio, LLC
	 	 
	By:_______________________________	By:_______________________________
	 	 
	Name:_____________________________	Name:_____________________________
	 	 
	Title:______________________________	Title:______________________________
	 	 
	 	 
	All American Homes of Tennessee, LLC	Mod-U-Kraf Homes, LLC
	 	 
	By:_______________________________	By:_______________________________
	 	 
	Name:_____________________________	Name:_____________________________
	 	 
	Title:______________________________	Title:______________________________
	 	 

-12-

			
	Address for notices:	All American Homes of Colorado, LLC
3333 E. Center Drive
Milliken, CO  80543	All American Homes of Indiana, LLC
1418 S. 13th Street
Decatur, IN  46733
	 	 	 
	 	Attention to the following:
Asst. General Manager - Troy Biggs	Attention to the following:
General Manager - Ryan Scott
	 	 	 
	 	Facsimile: (970) 587-0545	Facsimile: (260) 724-8987
	 	 	 
	 	All American Homes of Iowa, LLC
P.O. Box 219
1551 15th Avenue SE
Dyersville, IA 52040	All American Homes of Kansas, LLC
P.O. Box 259
126 Nichols Road
Osage City, KS  66523
	 	 	 
	 	Attention to the following:
General Manager - Del Herr	Attentino to the following:
Asst. General Manager - Quintin Robert
	 	 	 
	 	Facsimile: (563) 875-8381	Facsimile: (785) 528-4795
	 	 	 
	 	All American Homes of North Carolina, LLC
2015 U.S. 221 South Hwy.
P.O. Box 929
Rutherfordton, NC 28139	All American Homes of Ohio, LLC
4005 All American Way
Zanesville, OH  43701
	 	 	 
	 	Attention to the following:
General Manager - Neil Sayers	Attention to the following:
General Manager - David Johnson
	 	 	 
	 	Facsimile: (828) 248-4188	Facsimile: (740) 450-2909
	 	 	 
	 	All American Homes of Tennessee, LLC
P.O. Box 890
102 Evergreen Drive
Springfield, TN  37172	Mod-U-Kraf Homes, LLC
P.O. Box 573
260 Weaver Street
Rocky Mount, VA  24151
	 	 	 
	 	Attention to the following:
General Manager - Carel Whiteside	Attention to the following:
General Manager - Jeff Powell
	 	 	 
	 	Facsimile: (615)382-8303	Facsimile: (540) 483-2228
	 	 	 
	Cc:     	Kathy Samovitz
Corporate Counsel for All American Homes
Coachmen Administrative Services, Inc.
P.O. Box 3300
2831 Dexter Drive
Elkhart, IN 46514	

-13-

REPURCHASE AGREEMENT 

This Repurchase Agreement (this
“Agreement”) is entered into as of May, 10, 2004, between the undersigned
Manufacturer (“Manufacturer”) and Textron Financial Corporation (“Textron
Financial”). 

RECITALS 

               	 	A.	Manufacturer sells various floor plans of modular homes (“Homes”) to
                    Independent Builders (“Builders”) who frequently desire to finance such purchases;

	 	B.	Such Homes remain inventory of the Builder(s), typically for
                    use as model homes, until sold by the Builder; and 

	 	C.	Textron Financial is in the business of financing the acquisition of various types of inventory,
                    including such Homes for Builders. 

                    

AGREEMENT 

In order to induce Textron Financial
to finance the acquisition of Homes by a Builder and/or to induce Textron Financial to
refinance Homes already in the possession of a Builder, Manufacturer agrees with Textron
Financial as follows: 

     1.     
          Sale of Homes; Warranties of Manufacturer. When a Builder orders Homes from
          Manufacturer and requests that Textron Financial finance the acquisition of such
          Homes, Manufacturer shall deliver or cause to be delivered to Textron Financial
          one or more invoices evidencing the Unit cost (“Unit Invoice”), which
          shall include delivery and attachment to the foundation; and Unit soft costs
          (“Soft Cost Invoice”). These costs and the invoices related thereto
          shall collectively be referred to as the Total Invoice Cost. By delivery of any
          Unit Invoice to Textron Financial, Manufacturer shall represent and warrant to
          Textron Financial that: 

          	 	(a) 	
               Manufacturer has good title to such Homes and will, upon payment by Textron
               Financial of the net invoice cost therefor transfer title to such Homes to such
               Builder free and clear of liens, claims and encumbrances; 

          	 	(b) 	
               Such Homes are current models, are in unused condition and are free of defects;
                

          	 	(c) 	
               The Unit cost of such Homes represents the true cost of such Homes to such
               Builder; 

          	  	(d) 	
               Such Homes were ordered by such Builder from Manufacturer (the
               “Order”), the Order was accepted by Manufacturer and such Builder
               requested that Textron Financial finance its acquisition of such Homes as
               evidenced by the issuance of an approval number by Textron Financial, which has
               not been prior revoked and is no more than one hundred and eighty (180) days
               old; 

          	 	(e)
	
                Such Homes conform in all respects to the Order and will not be shipped to such
               Builder prior to Textron Financial’s approval of such Unit Invoice for
               payment; 

          	 	(f)	
               All Unit Invoices comply with all applicable federal, state and local laws; and 

          	  	(g)	
               All Unit Invoices presented to Textron Financial have been reviewed by
               Manufacturer, and Manufacturer agrees that all Unit Invoice amounts are accurate
               and reasonable, and that no party other than Manufacturer or Builder has any
               ownership interest in the Unit Invoices at the time of presentation of the same
               to Textron Financial. 

          	  	(h) 	
               Manufacturer shall further represent and warrant to Textron Financial that such
               Units are free and clear of liens, claims and encumbrances of all parties other
               than Textron Financial. 

In the event that Textron Financial,
with the approval of Manufacturer, refinances Homes or other costs associated with the
Homes already in the possession of a Builder, Manufacturer shall execute a letter
substantially in the form attached hereto as Exhibit A. Each such letter executed by
Manufacturer shall be considered an Unit Invoice for purposes of Manufacturer’s
obligations under this Agreement. By delivery of such an executed letter to Textron
Financial, Manufacturer shall make to Textron Financial the representations and warranties
set forth in Subparagraphs (b), (c), (f) and (g) of this Paragraph with respect to the
Homes or Invoices identified thereon. 

     2.     
          Payment Obligations. Textron Financial will establish a credit limit for each
          Builder approved by Textron Financial for the extension of credit. Such credit
          limit shall not constitute a committed line of credit and Textron Financial
          shall not be bound to finance any particular Homes, Unit set-up costs or Unit
          Soft costs. Textron Financial shall be obligated to pay the Total Invoice Cost,
          less any discount applicable to Textron Financial from time to time (the
          “Net Invoice Cost”), for invoices which Textron Financial approves and
          pays. Payments for Set Up Invoices and Soft Cost Invoices shall not exceed those
          percentages set forth in that certain Program Agreement entered into between
          Textron Financial and Manufacturer dated _____________, as the same may be
          amended from time to time. Manufacturer will secure from Textron Financial an
          approval number for Homes to be delivered to a Builder before they are
          manufactured. Manufacturer may ship its Homes in reliance upon an approval
          number issued by an authorized Textron Financial employee, or through Textron
          Financial’s online automated approval system. Manufacturer will not seek an
          approval number for Invoices, nor deliver to a Builder, Homes for which it does
          not have a bona fide order from an authorized representative of the Builder.
          Manufacturer will not forward to Textron Financial its Invoice and certificate
          of origin for payment unless it has received an approval number from Textron
          Financial and unless the Homes have been shipped. Textron Financial agrees: (a)
          it shall pay to Manufacturer the Net Invoice Cost within ten (10) business days
          of an invoice date or Textron Financial’s receipt of the Invoice, whichever
          is later; (b) it will pay the Net Invoice Cost to Manufacturer for any Home that
          has a valid approval number from Textron Financial; (c) it will only request
          Manufacturer to repurchase a Home after it has made a legal repossession of same
          unless otherwise agreed to, in writing, by and between Textron Financial and
          Manufacturer. 

     3.     
          Repurchase Obligations of Manufacturer. Should Textron Financial at any time
          repossess or otherwise come into actual or constructive possession of any Homes
          financed or refinanced by Textron Financial for any Builder regardless of the
          manner or method of possession, within thirty-seven (37) months following the
          date of Textron Financial’s purchase date of such Invoice for such Homes or
          Soft Costs Invoices (the “Repurchase Period”), Manufacturer shall
          repurchase such Homes from Textron Financial and repay to Textron Financial the
          Total Invoice Costs upon the following terms and conditions: 

          	 	(a)	
               Manufacturer shall repurchase from Textron Financial all Homes and Invoices
               evidencing the Total Invoice Costs within thirty (30) calendar days upon receipt
               of notice (“Repurchase Notice”) from Textron Financial that such Homes
               are in Textron Financial’s possession, wherever located and in whatever
               condition. Beyond warranty of title or ability to transfer Builder’s title
               to Manufacturer, and Textron Financial’s representation that it is
               transferring all of its right, title and interest to Manufacturer, such transfer
               shall be without any express or implied warranties including merchantability or
               fitness for a particular purpose; 

          	 	(b)	
               The repurchase price for such Homes (the “Repurchase Price”) shall be
               equal to: (i) the outstanding principal balance, accrued interest and
               delinquency charges owing to Textron Financial by the applicable Builder with
               respect to the Total Invoice Cost, plus (ii) all reasonable expenses incurred by
               Textron Financial in connection with the repossession, foreclosure and/or
               maintenance of such Homes and Invoices related thereto. 

          	 	(c) 	
               The Repurchase Price shall be determined as of the date of the Repurchase
               Notice. 

               

          	 	(d)  	
               In the event that a purported sale from Manufacturer to Builder is subject to a
               lien in favor of Manufacturer or anyone claiming under or through Manufacturer,
               or is not otherwise marketable or saleable upon delivery due to damage in
               shipment, defects or non-compliance with applicable federal, state or local
               rule, laws or regulations or if Manufacturer breaches any of its representations
               or warranties hereunder (collectively “Non-conforming Homes”), then
               upon written demand by Textron Financial, Manufacturer shall pay Textron
               Financial the Repurchase Price with respect to such item(s) of Non-conforming
               Homes regardless of whether Textron Financial comes into possession of such
               Non-conforming Homes and the provisions of paragraph 3 shall not apply and the
               time limitation on Manufacturer’s obligation to repurchase in paragraph 3
               shall not apply; provided however, if such Homes are deemed to be Non-conforming
               Homes due to a manufacturing defect or damage in shipment, Manufacturer’s
               obligation to pay the Repurchase Price on account of such defect or damage shall
               be subject to notice from Textron Financial to Manufacturer of such
               non-conformance or damage, and Manufacturer shall be given a reasonable time to
               make satisfactory repairs. Accordingly, if Manufacturer corrects and/or repairs
               such damage or non-conformance, then such Homes shall no longer be deemed to be
               Non-conforming Homes, and Textron Financial shall not issue a repurchase demand
               on such Homes by virtue of such defect or non-conformance. 

          	 	(e)	
               If Manufacturer fails to pay the Repurchase Price within thirty (30) days from
               the date on which Textron Financial gives written notice that such Homes are in
               Textron Financial’s possession, then Textron Financial shall be entitled to
               interest on the Repurchase Price retroactive to the date of such notice at the
               Prime Rate as published in the Wall Street Journal (or as published in such
               other form as may be designated by Textron Financial from time to time), as such
               rate may change from time to time, plus four percent (4%) calculated on the
               outstanding average daily balance. Textron Financial shall have no obligation to
               deliver any item of Homes to any particular location in order to demand the
               Repurchase Price: provided, however, Manufacturer will not be liable for such
               Repurchase Price unless Textron Financial takes actual or constructive legal
               possession of the Homes. 

     4.     
          The passage of the Repurchase Period referenced above will be suspended
          temporarily for all affected Homes and Invoices comprising the Total Invoice
          Costs, as of the date any of the following events occur, and will not resume
          until the date Textron Financial obtains possession of the Homes by court order
          or consent of all relevant parties, and shall be automatically extended to 30
          days after the date Textron Financial obtains such possession: (i) Textron
          Financial institutes any type of legal action to obtain possession of any Homes
          from Builder; (ii) any legal action is instituted as a result of a dispute with
          another creditor regarding priority rights in the Homes; (iii) a voluntary or
          involuntary bankruptcy action is filed by or on behalf of the Builder; or (iv)
          any legal proceeding is filed or any governmental proceedings or order which
          prevents Textron Financial from obtaining possession of the Homes. 

     5.     
          Events of Default. The following are events of default under this Agreement: 

	 	(a) 	
                Manufacturer fails in the performance of any obligation when due under this
          Agreement;

          	  	(b) 	
               Manufacturer sustains a materially adverse change in its financial condition,
               assets or prospects, as determined by Textron Financial in its sole discretion; 

          	 	(c) 	
               Manufacturer fails to give Textron Financial at least fourteen (14) days advance
               written notice of Manufacturer’s intentions to sell, lease, transfer or
               otherwise dispose of substantially all of Manufacturer’s assets; or
               consolidate with or merge with any entity, or permit any other entity to
               consolidate or merge into Manufacturer, except where said merger involves the
               parent company or wholly owned subsidiary of the parent company; or 

          	  	(d)	
               Manufacturer or Textron Financial commences a case or an order of relief is
               entered under any bankruptcy, reorganization, insolvency, liquidation or similar
               law. 

               

     6.     
          Textron Financial’s Remedies After Default. Upon a default hereunder, and
          at any time thereafter, any Manufacturer obligation herein described and any
          other amounts then owing by Manufacturer to Textron Financial shall become
          immediately due and payable. In addition, in the case of a default as described
          above in section 5(c), Manufacturer will be liable for all obligations that
          arise as a result of any funding by Textron Financial to any party other than
          Manufacturer until such required written notice as described in section 5(c) is
          received by Textron Financial. Textron Financial shall have all other rights and
          remedies allowed by law. 

     7.     
          Waivers; Binding Effect; Governing Law. The obligations of Manufacturer under
          this Agreement are absolute and unconditional. Manufacturer shall not be
          released from such obligations for any reason, nor shall such obligations be
          reduced, diminished or discharged for any reason, including without limitation,
          (a) any instance of modification of, or indulgence granted by Textron Financial
          with respect to, the obligations of any Builder owing to Textron Financial
          (collectively, the “Obligations” and, individually, an
          “Obligation”), (b) any failure of Textron Financial to timely enforce
          any right or remedy available to Textron Financial in connection with the
          Obligations, (c) any modification of any agreement securing performance of any
          Obligation or the substitution or the release of collateral thereunder, (d) the
          invalidity of any agreement forming a part of the Obligations. Manufacturer
          waives: (i) any right to require Textron Financial to proceed against a Builder
          or to pursue any other remedy prior to exercising Textron Financial’s
          rights under this Agreement, other than as may be expressly set forth herein,
          (ii) notice of the acceptance of this Agreement by Textron Financial, the
          non-performance of any Obligation of any Builder owing to Textron Financial, or
          the amount of the Obligations outstanding at any time, (iii) demand and
          presentation for payment upon the applicable Builder, (iv) protest and notice of
          protest and diligence of bringing suit against any Builder,; and (vi) any other
          defense to Manufacturer’s obligations under this Agreement. Textron
          Financial’s failure to exercise any rights 

granted hereunder shall not operate
as a waiver of those rights. This Agreement shall be binding upon the parties hereto and
shall inure to the benefit of their successors and assigns. This Agreement shall be
governed by, and construed in accordance with, the laws of the State of Rhode Island,
without reference to applicable conflict of law principles. 

     8.     
          Termination by Manufacturer. This Agreement shall continue in full force and
          effect until terminated by either party by written notice to the other party.
          Such termination shall be effective thirty (30) days after receipt of such
          notice, but such termination shall not affect the liabilities of Manufacturer
          with respect to Invoices paid by Textron Financial and Invoices and Homes
          approved for payment and financing by Textron Financial prior to the effective
          date of such termination, even though such Invoices are paid by Textron
          Financial thereafter, and such termination shall not affect the rights and
          obligations of the parties as to any transaction entered into prior to the
          receipt of such notice of termination, including without limitation transactions
          for which approvals are pending or which will not be completed until after the
          effective date of termination. It is specifically agreed between the parties
          that termination shall not limit or relieve Manufacturer from its repurchase
          obligations hereunder for Homes and Invoices financed prior to the effective
          date of the termination notice which obligations shall survive termination of
          this Agreement. 

     9.     
          Miscellaneous. 

          	 	(a)	
               Textron Financial and Manufacturer acknowledge and agree that this Agreement
               does not create any partnership, joint venture or agency relationship between
               them. 

          	  	(b) 	
               All remedies in this Agreement shall be cumulative and not alternative. 

          	 	(c) 	
               If Textron Financial is required to enforce its rights hereunder through legal
               proceedings or otherwise, Manufacturer shall pay court costs and Textron
               Financial’s reasonable attorney fees. 

          	 	(d)	
               Textron Financial may assign this Agreement, but Manufacturer may not assign its
               rights or delegate its duties hereunder without the prior written consent of
               Textron Financial. 

          	 	(e)	
               This Agreement contains the entire agreement between the parties with respect to
               the subject matter hereof. Neither this Agreement nor any provisions hereof may
               be changed, waived, discharged or terminated orally, but only by an instrument
               in writing signed by the party against whom enforcement of the change, waiver,
               discharge or termination is sought. 

          	 	(f)	
               Any notice required or permitted hereunder shall be in writing, and shall be
               either delivered or mailed in the United States mail, certified or registered,
               return receipt requested with proper postage prepaid, to the party to be
               notified at the address for such party in this Agreement. Any such notice shall
               be deemed effectively given and received for all purposes upon the earlier of
               (i) the delivery of such notice to the address of the party notified; (ii)
               refusal to accept delivery by the party being notified; or (iii) two (2) days
               after the notice is deposited in the United States mail, certified or registered
               mail, return receipt requested, properly addressed to the party notified. Any
               party may change its address for notice by giving the other party written notice
               of change of address. 

          	 	(g)	
               The provisions of this Agreement are for the exclusive benefit of the parties
               hereto, and nothing contained herein shall affect or impair any rights which
               either party hereto may have against Builder or any other party. 

               

Executed as of the date first set
forth above. 

	Textron Financial:

TEXTRON FINANCIAL CORPORATION	 	MANUFACTURER(S):

ALL AMERICAN HOMES OF COLORADO, LLC
	

By:                                         		

By:                                         
	Print Name:  Don Poskus
Print Title:  AVP, Credit
        
Address:  P.O. Box 3090
Alpharetta, GA 30023 	 	Print Name:  
Print Title:  
Address:
			

SIGNATURES CONTINUE ON
FOLLOWING PAGE 

	 	ALL AMERICAN HOMES OF INDIANA, LLC

	 	By:                                                                                   
	 	Print Name:  
Print Title:  
Address:

	 	ALL AMERICAN HOMES OF IOWA, LLC

	 	By:                                                                                   
	 	Print Name:  
Print Title:  
Address:

	 	ALL AMERICAN HOMES OF KANSAS, LLC

	 	By:                                                                                   
	 	Print Name:  
Print Title:  
Address:

    

	 	ALL AMERICAN HOMES OF NORTH CAROLINA, LLC

	 	By:                                                                                   
	 	Print Name:  
Print Title:  
Address:

	 	ALL AMERICAN HOMES OF OHIO, LLC

	 	By:                                                                                   
	 	Print Name:  
Print Title:  
Address:

	 	ALL AMERICAN HOMES OF TENNESSEE, LLC

	 	By:                                                                                   
	 	Print Name:  
Print Title:  
Address:

	 	MOD-U-KRAF HOMES, LLC

	 	By:                                                                                   
	 	Print Name:  
Print Title:  
Address:

EXHIBIT A
(Form of Refinance
Letter) 

Address 

, , 20 

Re:    That certain  Repurchase  Agreement  dated as of , , 20,  between  ("Manufacturer")  and Textron  Financial  Corporation  ("Textron
Financial") (the "Repurchase Agreement")

Dear      : 

Textron Financial desires to provide
certain financial accommodations to (“Builder”) secured by those Homes
identified on this Exhibit A incorporated herein by reference (“Homes”). As a
condition of Textron Financial providing such financial accommodations to Builder,
however, Manufacturer must agree that all of the Homes shall be subject to all of its
liabilities and obligations under the Repurchase Agreement as if Textron Financial had
originally financed the Builder’s acquisition of the Homes pursuant to and in
reliance on the terms of the Repurchase Agreement. 

Please acknowledge
Manufacturer’s agreement that all of the Homes shall be subject to all of
Manufacturer’s liabilities and obligations under the Repurchase Agreement as if
Textron Financial originally financed the Builder’s acquisition of the Homes pursuant
to and in reliance on the terms of the Repurchase Agreement by signing below and by
signing Exhibit A, and return your original signatures to me via facsimile and U.S. Mail. 

Thank you. 

	 	 
	 	TEXTRON FINANCIAL CORPORATION
	 	 
	 	By:                                                                       
Print Name:
              
Title:                  

Acknowledged and agreed to: 

Address

By:                                          
Print Name:        
Title:
Date:

EXHIBIT A 

Manufacturer                                             
Invoice Date                                             
Serial Number                                             
AmountExhibit 10.5

                           ORTHOFIX INTERNATIONAL N.V.
               AMENDED AND RESTATED 2004 LONG-TERM INCENTIVE PLAN
                      adopted by the Board: April 15, 2004
                     approved by shareholders: June 29, 2004
                     amended and restated: November 5, 2004

1.       Purposes of the Plan

                  The purposes of the Plan are to provide an incentive to
certain officers, employees, directors and consultants of the Company and its
Subsidiaries to increase their interest in the Company's success by offering
them an opportunity to obtain a proprietary interest in the Company through the
grant of equity-based awards.

2.       Definitions and Rules of Construction

                  (a)   Definitions. For purposes of the Plan, the following
capitalized words shall have the meanings set forth below:

                  "Award" means an Option, Restricted Share Unit, Performance
         Share Unit, Stock Appreciation Right or Other Award granted by the
         Committee pursuant to the terms of the Plan.

                  "Award Document" means an agreement, certificate or other type
         or form of document or documentation approved by the Committee which
         sets forth the terms and conditions of an Award. An Award Document may
         be in written, electronic or other media, may be limited to a notation
         on the books and records of the Company and, unless the Committee
         requires otherwise, need not be signed by a representative of the
         Company or a Participant.

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

                  "CEO" means the Chief Executive Officer of the Company.

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

                  "Committee" means the Compensation Committee of the Board or
         such other committee appointed by the Board to administer the Plan.

                  "Common Shares" means the Common Shares of the Company, par
         value $0.10 per share, or such other class of shares or other
         securities as may be applicable under Section 13(b) of the Plan.

                  "Company" means Orthofix International N.V. or any successor
         to substantially all of its business.

                  "Discounted Option" means a Nonqualified Stock Option or a
         Stock Appreciation Right with an exercise price that is below Fair
         Market Value per share on the date of grant (or, if the exercise price
         is not fixed on the date of grant, on such date as the exercise price
         is fixed).

                  "Effective Date" means the date on which the Plan is approved
         by the shareholders of the Company.

                  "Eligible Individual" means an individual described in Section
         4(a) of the Plan.

<PAGE>

                  "Exchange Act" means the Securities Exchange Act of 1934, as
         amended, and the rules and regulations thereunder.

                  "Fair Market Value" means, with respect to a Common Share, the
         fair market value thereof as of the relevant date of determination, as
         determined in accordance with a valuation methodology approved by the
         Committee.

                  "Incentive Stock Option" means an Option that is intended to
         comply with the requirements of Section 422 of the Code or any
         successor provision thereto.

                  "Nonqualified Stock Option" means an Option that is not
         intended to comply with the requirements of Section 422 of the Code or
         any successor provision thereto.

                  "Option" means an Incentive Stock Option or Nonqualified Stock
         Option granted pursuant to Section 7 of the Plan.

                  "Other Award" means any form of Award other than an Option,
         Restricted Share Unit, Performance Share Unit or Stock Appreciation
         Right granted pursuant to Section 11 of the Plan.

                  "Participant" means an Eligible Individual who has been
         granted an Award under the Plan.

                  "Performance Period" means the period established by the
         Committee and set forth in the applicable Award Document over which
         Performance Targets are measured.

                  "Performance Share Unit" means a right to receive a Target
         Number of Common Shares (or cash, if applicable) payable at the end of
         a Performance Period, subject to the Participant's continued employment
         and the achievement of the applicable Performance Targets, granted
         pursuant to Section 9 of the Plan.

                  "Performance Target" means the targets established by the
         Committee and set forth in the applicable Award Document.

                  "Plan" means the Orthofix International N.V. Amended and
         Restated 2004 Long-Term Incentive Plan as described herein.

                  "Prior Plan" means the Orthofix International N.V. Staff Share
         Option Plan.

                  "Restricted Share Unit" means a right to receive a Common
         Share (or cash, if applicable) in the future, subject to time vesting
         and the Participant's continued employment with the Company, granted
         pursuant to Section 8 of the Plan.

                  "Stock Appreciation Right" means a right to receive all or
         some portion of the appreciation on Common Shares granted pursuant to
         Section 10 of the Plan.

                  "Subsidiary" means (i) a domestic or foreign corporation or
         other entity with respect to which the Company, directly or indirectly,
         has the power, whether through the ownership of voting securities, by
         contract or otherwise, to elect at least a majority of the members of
         such corporation's board of directors or analogous governing body or
         (ii) any other domestic or foreign corporation or other entity in which
         the Company, directly or indirectly, has an equity or similar interest
         and which the Committee designates as a Subsidiary for purposes of the
         Plan. For

                                       2
<PAGE>

         purposes of determining eligibility for the grant of Incentive Stock
         Options under the Plan, the term "Subsidiary" shall be defined in the
         manner required by Section 424(f) of the Code.

                  "Target Number" means the target number of Common Shares
         established by the Committee and set forth in the applicable Award
         Document.

                  (b)   Rules of Construction. The masculine pronoun shall be
deemed to include the feminine pronoun and the singular form of a word shall be
deemed to include the plural form, unless the context requires otherwise. Unless
the text indicates otherwise, references to sections are to sections of the
Plan.

3.       Administration

                  (a)   Committee. The Plan shall be administered by the
Committee, which shall have full power and authority, subject to the express
provisions hereof, to:

                  (i)   select the Participants from the Eligible Individuals;

                  (ii)  grant Awards in accordance with the Plan;

                  (iii) determine the number of Common Shares subject to each
         Award or the cash amount payable in connection with an Award;

                  (iv)  determine the terms and conditions of each Award,
         including, without limitation, those related to term, vesting,
         forfeiture, payment, settlement, exercisability, Performance Periods,
         Performance Targets, Target Numbers, and the effect, if any, of a
         Participant's termination of employment with the Company or any of its
         Subsidiaries or a change in control of the Company, and including the
         authority to amend the terms and conditions of an Award after the
         granting thereof to a Participant in a manner that is not, without the
         consent of the Participant, prejudicial to the rights of such
         Participant in such Award;

                  (v)   specify and approve the provisions of the Award
         Documents delivered to Participants in connection with their Awards;

                  (vi)  construe and interpret any Award Document delivered
         under the Plan;

                  (vii) prescribe, amend and rescind rules and procedures
         relating to the Plan;

                 (viii) employ such legal counsel, independent auditors and
         consultants as it deems desirable for the administration of the Plan
         and to rely upon any opinion or computation received therefrom;

                  (ix)  vary the terms of Awards to take account of tax,
         securities law and other regulatory requirements of foreign
         jurisdictions; and

                  (x)   make all other determinations and take any other action
         desirable or necessary to interpret, construe or implement properly the
         provisions of the Plan or any Award Document.

                  (b)   Plan Construction and Interpretation. The Committee
shall have full power and authority, subject to the express provisions hereof,
to construe and interpret the Plan.

                                       3
<PAGE>

                  (c)   Determinations of Committee Final and Binding. All
determinations by the Committee in carrying out and administering the Plan and
in construing and interpreting the Plan shall be final, binding and conclusive
for all purposes and upon all persons interested herein.

                  (d)   Delegation of Authority. The Committee may designate one
or more of its members or persons other than its members to carry out its
responsibilities under such conditions or limitations as it may set, except that
the Committee may not delegate its authority with regard to Awards (including
decisions concerning the timing, pricing and amount of Common Shares subject to
an Award) granted to Eligible Individuals (i) who are officers or directors for
purposes of Section 16(b) of the Exchange Act or (ii) whose compensation for
such fiscal year may be subject to the limit on deductible compensation pursuant
to Section 162(m) of the Code.

                  (e)   Liability of Committee. No member of the Board or
Committee, the CEO, or any officer or employee of the Company to whom any duties
or responsibilities are delegated hereunder shall be liable for any action or
determination made in connection with the operation, administration or
interpretation of the Plan and the Company shall indemnify, defend and hold
harmless each such person from any liability arising from or in connection with
the Plan, except where such liability results directly from such person's fraud,
willful misconduct or failure to act in good faith. In the performance of its
responsibilities with respect to the Plan, the Committee shall be entitled to
rely upon information and advice furnished by the Company's officers, the
Company's accountants, the Company's counsel and any other party the Committee
deems necessary, and no member of the Committee shall be liable for any action
taken or not taken in reliance upon any such advice.

                  (f)   Action by the Board. Anything in the Plan to the
contrary notwithstanding, any authority or responsibility that, under the terms
of the Plan, may be exercised by the Committee may alternatively be exercised by
the Board.

4.       Eligibility

                  (a)   Eligible Individuals. Awards may be granted to officers,
employees, directors and consultants of the Company or any of its Subsidiaries.
The Committee shall have the authority to select the persons to whom Awards may
be granted and to determine the number and terms of Awards to be granted to each
such Participant. Under this Plan, references to "employment," "employed," etc.
include Participants who are consultants of the Company or its Subsidiaries.

                  (b)   Grants to Participants. The Committee shall have no
obligation to grant any Eligible Individual an Award or to designate an Eligible
Individual as a Participant solely by reason of such Eligible Individual having
received a prior Award or having been previously designated as a Participant.
The Committee may grant more than one Award to a Participant and may designate
an Eligible Individual as a Participant for overlapping periods of time.

5.       Common Shares Subject to the Plan

                  (a)   Plan Limit. The maximum number of shares of Common
Shares that may be awarded for all purposes under the Plan shall be the
aggregate of:

                  (i)   2,000,000 shares;

                  (ii)  the number of shares previously authorized but not
         reserved for options under the Prior Plan as of the date the Plan is
         approved; and

                                       4
<PAGE>

                  (iii) any shares corresponding to an award, or portion
         thereof, under the Prior Plan that are forfeited or expire for any
         reason without having been exercised or settled after the date the Plan
         is approved (collectively, the "Plan Limit").

Shares issued upon exercise of Awards may be either authorized and unissued
shares or shares held by the Company in its treasury.

                  (b)   Rules Applicable to Determining Shares Available for
Issuance. For purposes of determining the number of Common Shares that remain
available for issuance under the Plan, the number of Common Shares corresponding
to Awards under the Plan that are forfeited or expire for any reason without
having been exercised or settled, the number of Common Shares tendered or
withheld to pay the exercise price of an Award and the number of shares withheld
from any Award to satisfy a Participant's tax withholding obligations shall be
added back to the Plan Limit and again be available for the grant of Awards.

                  (c)   Special Limits. Anything to the contrary in Section 5(a)
above notwithstanding, but subject to Section 13(b), the following special
limits shall apply to Common Shares available for Awards under the Plan:

                  (i)   the maximum number of Common Shares that, in the
         aggregate, may be subject to Discounted Options, Restricted Stock Units
         payable in Common Shares, Performance Share Units payable in Common
         Shares, and Other Awards payable in Common Shares shall equal 400,000
         shares; provided, however, that in no event shall the number of Common
         Shares subject to Discounted Options and Other Awards payable in Common
         Shares exceed 200,000 shares;

                  (ii)  the maximum number of Common Shares that may be subject
         to Options granted to any Eligible Individual in any calendar year
         shall equal 200,000 shares, plus any shares which were available under
         this Section 5(c)(ii) for Awards to such Eligible Individual in any
         prior calendar year but which were not covered by such Awards; and

                  (iii) the maximum number of Common Shares that may be subject
         to Restricted Share Units, Performance Share Units, Stock Appreciation
         Rights or Other Awards granted to any Eligible Individual in any
         calendar year shall equal 200,000 shares, plus any shares which were
         available under this Section 5(c)(iii) for Awards to such Eligible
         Individual in any prior calendar year but which were not covered by
         such Awards.

6.       Awards in General

                  (a)   Types of Awards. Awards under the Plan may consist of
Options, Restricted Share Units, Performance Share Units, Stock Appreciation
Rights and Other Awards. Any Award described in Sections 7 through 11 of the
Plan may be granted singly or in combination or tandem with any other Awards, as
the Committee may determine. Awards under the Plan may be made in combination
with, in replacement of, or as alternatives to awards or rights under any other
compensation or benefit plan of the Company, including the plan of any acquired
entity.

                  (b)   Terms Set Forth in Award Document. The terms and
conditions of each Award shall be set forth in an Award Document in a form
approved by the Committee for such Award, which shall contain terms and
conditions not inconsistent with the Plan. The terms of Awards may vary among
Participants and the Plan does not impose upon the Committee any requirement to
make Awards subject to uniform terms. Accordingly, the terms of individual Award
Documents may vary.

                                       5
<PAGE>

                  (c)   Minimum Vesting Requirements. All Awards shall be
subject to the following minimum vesting requirements:

                  (i)   An Award that is not intended to be "performance-based
         compensation" (as described below in Section 6(g)) shall vest or the
         restrictions applicable to such Award shall lapse, as the case may be,
         no sooner than a rate of thirty three and one-third percent (33 1/3%)
         per year on each of the first (1st), second (2nd) and third (3rd)
         anniversaries of the date of grant; provided, however, that the
         exercisability of any portion of an Award relating to a fractional
         share shall be deferred until such time, if any, that such portion can
         be exercised as a whole Common Share; provided further, that in no
         event shall the number of Common Shares underlying all Awards granted
         to a member of the Board who is not an employee of the Company or its
         Subsidiaries that vest or with respect to which restrictions lapse, as
         the case may be, during any fiscal year of the Company exceed 6,000
         Common Shares.

                  (ii)  An Award that is intended to be "performance-based
         compensation" (as described below in Section 6(g)) shall vest or the
         restrictions applicable to such Award shall lapse, as the case may be,
         no sooner than twelve (12) months following the date of grant; provided
         further, that in no event shall the number of Common Shares underlying
         all Awards granted to a member of the Board who is not an employee of
         the Company or its Subsidiaries that vest or with respect to which
         restrictions lapse, as the case may be, during any fiscal year of the
         Company exceed 6,000 Common Shares.

                  Notwithstanding any of the foregoing, the Committee may, in
its sole discretion, accelerate the vesting or the lapse of restrictions of an
Award in the event of a Participant's termination of employment or a Change in
Control of the Company in accordance with Section 6(d).

                  (d)   Termination of Employment and Change in Control. The
Committee shall specify at or after the time of grant of an Award the provisions
governing the disposition of an Award in the event of a Participant's
termination of employment with the Company or any of its Subsidiaries. In
connection with a Participant's termination of employment, the Committee shall
have the discretion to accelerate the vesting, exercisability or settlement of,
eliminate the restrictions and conditions applicable to, or extend the
post-termination exercise period of an outstanding Award, which provisions may
be specified in the applicable Award Document or determined at a subsequent
time. Similarly, the Committee shall have full authority to determine the
effect, if any, of a change in control of the Company on the vesting,
exercisability, settlement, payment or lapse of restrictions applicable to an
Award, which effect may be specified in the applicable Award Document or
determined at a subsequent time.

                  (e)   Dividends and Dividend Equivalents. The Committee may
provide Participants with the right to receive dividends or payments equivalent
to dividends or interest with respect to an outstanding Award, which payments
can either be paid currently or deemed to have been reinvested in Common Shares,
and can be made in Common Shares, cash or a combination thereof, as the
Committee shall determine.

                  (f)   Rights of a Shareholder. A Participant shall have no
rights as a shareholder with respect to Common Shares covered by an Award until
the date the Participant or his nominee becomes the holder of record of such
shares. No adjustment shall be made for dividends or other rights for which the
record date is prior to such date, except as provided in Section 13(b).

                  (g)   Performance-Based Awards. The Committee may determine
whether any Award under the Plan is intended to be "performance-based
compensation" as that term is used in Section 162(m) of the Code. Any such
Awards designated to be "performance-based compensation" shall be

                                       6
<PAGE>

conditioned on the achievement of one or more Performance Targets, to the extent
required by Section 162(m) of the Code. The Performance Targets that may be used
by the Committee for such Awards will be based on measurable and attainable
financial goals for the Company, one or more of its operating divisions or
Subsidiaries or any combination of the above such as net income, net revenue,
cash flow, operating margin, operating revenue, pre-tax income, pre-tax
operating income, operating income growth, return on assets, total shareholder
return, share price, return on equity, diluted earnings per share or earnings
per share growth, or a combination thereof as selected by the Committee, and
quantifiable non-financial goals. Each Participant is assigned a Target Number
payable if Performance Targets are achieved. If a Participant's performance
exceeds such Participant's Performance Targets, Awards may be greater than the
Target Number, but may not exceed 200% of such Participant's Target Number. The
Committee retains the right to reduce any Award if it believes that individual
performance does not warrant the Award calculated by reference to the result. In
the event that all members of the Committee are not "outside directors" as that
term is defined in Section 162(m) of the Code, the grant and terms of Awards
intended to qualify as "performance-based compensation" will be made by a
subcommittee of the Committee consisting of two or more "outside directors" for
purposes of Section 162(m) of the Code.

                  (h)   Awards to Non-Employee Directors. The Committee may
grant Awards to members of the Board who are not employees of the Company or its
Subsidiaries; provided, however, that the number of Common Shares underlying
Awards granted to each non-employee director shall not exceed 30,000 Common
Shares during any consecutive sixty (60)-month period; provided further, that
the vesting requirements set forth in Section 6(c) above are satisfied.

7.       Terms and Conditions of Options

                  (a)   General. The Committee, in its discretion, may grant
Options to eligible Participants subject to the terms and conditions herein and
shall determine whether such Options shall be Incentive Stock Options or
Nonqualified Stock Options. Each Option shall be evidenced by an Award Document
that shall expressly identify the Option as an Incentive Stock Option or
Nonqualified Stock Option, and be in such form and contain such provisions as
the Committee shall from time to time deem appropriate.

                  (b)   Exercise Price. The exercise price of an Option shall be
fixed by the Committee at the time of grant or shall be determined by a method
specified by the Committee at the time of grant; provided, however, that the
exercise price of an Option shall not be less than 100% of the Fair Market Value
per share on the date of grant unless, subject to the limitations on Discounted
Options set forth in Section 5(c)(i), the Committee elects to set the exercise
price below Fair Market Value on the date of grant (or, if the exercise price is
not fixed on the date of grant, on such date as the exercise price is fixed).
Payment of the exercise price of an Option shall be made in any form approved by
the Committee at the time of grant.

                  (c)   Term. An Option shall be effective for such term as
shall be determined by the Committee and as set forth in the Award Document
relating to such Option, and the Committee may extend the term of an Option
after the time of grant; provided, however, that the term of an Option may in no
event extend beyond the tenth anniversary of the date of grant of such Option.

                  (d)   Incentive Stock Options. The exercise price per share of
an Incentive Stock Option may not be less than 100% of the Fair Market Value per
share on the date of grant. No Incentive Stock Option may be issued pursuant to
the Plan to any individual who, at the time the Incentive Stock Option is
granted, owns stock possessing more than 10% of the total combined voting power
of all classes of stock of the Company or any of its Subsidiaries, unless (i)
the exercise price determined as of the date of grant is at least 110% of the
Fair Market Value on the date of grant of the Common Shares subject to

                                       7
<PAGE>

such Incentive Stock Option and (ii) the Incentive Stock Option is not
exercisable more than five years from the date of grant thereof. No Participant
shall be granted any Incentive Stock Option which would result in such
Participant receiving a grant of Incentive Stock Options that would have an
aggregate Fair Market Value in excess of $100,000, determined as of the time of
grant, that would be exercisable for the first time by such Participant during
any calendar year. The terms of any Incentive Stock Option granted under the
Plan shall comply in all respects with the provisions of Section 422 of the
Code, or any successor provision thereto, and any regulations promulgated
thereunder.

8.       Terms and Conditions of Restricted Share Units

                  The Committee is authorized to grant Restricted Share Units to
Eligible Individuals subject to the terms and conditions herein. A Restricted
Share Unit shall entitle a Participant to receive, subject to the terms,
conditions and restrictions set forth in the Plan and applicable Award Document,
one or more Common Shares in consideration of the Participant's employment with
the Company or any of its Subsidiaries. If and when the forfeiture provisions
lapse, the Restricted Share Units shall become Common Shares owned by the
corresponding Participant or, at the sole discretion of the Committee, cash, or
a combination of cash and Common Shares, with a value equal to the Fair Market
Value of the shares at the time of payment.

9.       Terms and Conditions of Performance Share Units

                  The Committee is authorized to grant Performance Share Units
to Eligible Individuals subject to the terms and conditions herein. A
Performance Share Unit shall entitle a Participant to receive, subject to the
terms, conditions and restrictions set forth in the Plan and applicable Award
Document, a Target Number of Common Shares based upon the achievement of
Performance Targets over the applicable Performance Period. At the sole
discretion of the Committee, Performance Share Units shall be settled through
the delivery of Common Shares or cash, or a combination of cash and Common
Shares, with a value equal to the Fair Market Value of the Common Shares as of
the last day of the applicable Performance Period.

10.      Stock Appreciation Rights

                  (a)   General. The Committee is authorized to grant Stock
Appreciation Rights to Eligible Individuals subject to the terms and conditions
herein. A Stock Appreciation Right shall entitle a Participant to receive, upon
satisfaction of the conditions to payment specified in the applicable Award
Document, an amount equal to the excess, if any, of the Fair Market Value on the
exercise date of the number of Common Shares for which the Stock Appreciation
Right is exercised, over the exercise price for such Stock Appreciation Right
specified in the applicable Award Document. The exercise price per share of
Common Shares covered by a Stock Appreciation Right shall be fixed by the
Committee at the time of grant or, alternatively, shall be determined by a
method specified by the Committee at the time of grant, provided, however, that
the exercise price of a Stock Appreciation Right shall not be less than 100% of
the Fair Market Value per share on the date of grant unless, subject to the
limitations on Discounted Options set forth in Section 5(c)(i), the Committee
elects to set the exercise price below Fair Market Value on the date of grant
(or, if the exercise price is not fixed on the date of grant, on such date as
the exercise price is fixed). At the sole discretion of the Committee, payments
to a Participant upon exercise of a Stock Appreciation Right may be made in cash
or Common Shares, or in a combination of cash and Common Shares, having an
aggregate Fair Market Value as of the date of exercise equal to such cash
amount.

                  (b)   Stock Appreciation Rights in Tandem with Options. A
Stock Appreciation Right granted in tandem with an Option may be granted either
at the same time as such Option or subsequent

                                       8
<PAGE>

thereto. If granted in tandem with an Option, a Stock Appreciation Right shall
cover the same number of Common Shares as covered by the Option (or such lesser
number of shares as the Committee may determine) and shall be exercisable only
at such time or times and to the extent the related Option shall be exercisable,
and shall have the same term and exercise price as the related Option (which, in
the case of a Stock Appreciation Right granted after the grant of the related
Option, may be less than the Fair Market Value per share on the date of grant of
the tandem Stock Appreciation Right). Upon exercise of a Stock Appreciation
Right granted in tandem with an Option, the related Option shall be canceled
automatically to the extent of the number of shares covered by such exercise;
conversely, if the related Option is exercised as to some or all of the shares
covered by the tandem grant, the tandem Stock Appreciation Right shall be
canceled automatically to the extent of the number of shares covered by the
Option exercise.

11.      Other Awards

                  Subject to the terms and conditions herein, the Committee
shall have the authority to specify the terms and provisions of other forms of
equity-based or equity-related Awards not described above that the Committee
determines to be consistent with the purpose of the Plan and the interests of
the Company, which Awards may provide for cash payments based in whole or in
part on the value or future value of Common Shares, for the acquisition or
future acquisition of Common Shares, or any combination thereof.

12.      Certain Restrictions

                  (a)   Transfers. Unless the Committee determines otherwise on
or after the date of grant, no Award shall be transferable other than by will or
by the laws of descent and distribution or pursuant to a domestic relations
order; provided, however, that the Committee may, in its discretion and subject
to such terms and conditions as it shall specify, permit the transfer of an
Award for no consideration to a Participant's family members or to one or more
trusts or partnerships established in whole or in part for the benefit of one or
more of such family members (collectively, "Permitted Transferees"). Any Award
transferred to a Permitted Transferee shall be further transferable only by will
or the laws of descent and distribution or, for no consideration, to another
Permitted Transferee of the Participant. The Committee may in its discretion
permit transfers of Awards other than those contemplated by this Section 12(a).

                  (b)   Award Exercisable Only by Participant. During the
lifetime of a Participant, an Award shall be exercisable only by the Participant
or by a Permitted Transferee to whom such Award has been transferred in
accordance with Section 12(a). The grant of an Award shall impose no obligation
on a Participant to exercise or settle the Award.

13.      Recapitalization or Reorganization

                  (a)   Authority of the Company and Stockholders. The existence
of the Plan, the Award Documents and the Awards granted hereunder shall not
affect or restrict in any way the right or power of the Company or the
shareholders of the Company to make or authorize any adjustment,
recapitalization, reorganization or other change in the Company's capital
structure or business, any merger or consolidation of the Company, any issue of
stock or of options, warrants or rights to purchase stock or of bonds,
debentures, preferred or prior preference stocks whose rights are superior to or
affect the Common Shares or the rights thereof or which are convertible into or
exchangeable for Common Shares, or the dissolution or liquidation of the
Company, or any sale or transfer of all or any part of its assets or business,
or any other corporate act or proceeding, whether of a similar character or
otherwise.

                                       9
<PAGE>

                  (b)   Change in Capitalization. Notwithstanding any provision
of the Plan or any Award Document, the number and kind of shares authorized for
issuance under Section 5, including the maximum number of shares available under
the special limits provided for in Section 5(c), may be equitably adjusted in
the sole discretion of the Committee in the event of a stock split, stock
dividend, recapitalization, reorganization, merger, consolidation, extraordinary
dividend, split-up, spin-off, combination, exchange of shares, warrants or
rights offering to purchase Common Shares at a price substantially below Fair
Market Value or other similar corporate event affecting the Common Shares in
order to preserve, but not increase, the benefits or potential benefits intended
to be made available under the Plan. In addition, upon the occurrence of any of
the foregoing events, the number of outstanding Awards and the number and kind
of shares subject to any outstanding Award and the exercise price per share, if
any, under any outstanding Award may be equitably adjusted (including by payment
of cash to a Participant) in the sole discretion of the Committee in order to
preserve the benefits or potential benefits intended to be made available to
Participants granted Awards. Such adjustments shall be made by the Committee, in
its sole discretion, whose determination as to what adjustments shall be made,
and the extent thereof, shall be final. Unless otherwise determined by the
Committee, such adjusted Awards shall be subject to the same restrictions and
vesting or settlement schedule to which the underlying Award is subject.

14.      Term of the Plan

                  Unless earlier terminated pursuant to Section 16, the Plan
shall terminate on the 10th anniversary of the Effective Date, except with
respect to Awards then outstanding. No Awards may be granted under the Plan
after the 10th anniversary of the Effective Date.

15.      Effective Date

                  The Plan shall become effective on the Effective Date;
provided, however, that, if the Plan is not approved by the shareholders upon
submission to them for approval, the Plan shall be void ab initio and of no
further force and effect.

16.      Amendment and Termination

                  Notwithstanding anything herein to the contrary, the Board
may, at any time, terminate or, from time to time, amend, modify or suspend the
Plan; provided, however, that no termination, amendment, modification or
suspension of the Plan shall materially and adversely alter or impair the rights
of a Participant in any Award previously made under the Plan without the consent
of the holder thereof and no amendment which (i) increases the Plan Limit or
(ii) permits a reduction in the exercise price of Options or Stock Appreciation
Rights under circumstances other than in connection with a transaction or event
described in Section 13(b), shall be effective without shareholder approval.

17.      Miscellaneous

                  (a)   Tax Withholding. The Company or a Subsidiary, as
appropriate, may require any individual entitled to receive a payment in respect
of an Award to remit to the Company, prior to such payment, an amount sufficient
to satisfy any applicable tax withholding requirements. In the case of an Award
payable in Common Shares, the Company or a Subsidiary, as appropriate, may
permit such individual to satisfy, in whole or in part, such obligation to remit
taxes by directing the Company to withhold shares that would otherwise be
received by such individual or to repurchase shares that were issued to such
individual to satisfy the minimum statutory withholding rates for any applicable
tax withholding purposes, in accordance with all applicable laws and pursuant to
such rules as the Committee may establish from time to time. The Company or a
Subsidiary, as appropriate, shall also have the right

                                       10
<PAGE>

to deduct from all cash payments made to a Participant (whether or not such
payment is made in connection with an Award) any applicable taxes required to be
withheld with respect to such payments.

                  (b)   No Right to Awards or Employment. No person shall have
any claim or right to receive Awards under the Plan. Neither the Plan, the grant
of Awards under the Plan, nor any action taken or omitted to be taken under the
Plan shall be deemed to create or confer on any Eligible Individual any right to
be retained in the employ of the Company or any Subsidiary or other affiliate
thereof, or to interfere with or to limit in any way the right of the Company or
any Subsidiary or other affiliate thereof to terminate the employment of such
Eligible Individual at any time.

                  (c)   Section 16(b) of the Exchange Act. The Plan is intended
to comply in all respects with Section 16(b) of the Exchange Act.
Notwithstanding anything contained in the Plan or any Award Document under the
Plan to the contrary, if the consummation of any transaction under the Plan, or
the taking of any action by the Committee in connection with a change in control
of the Company, would result in the possible imposition of liability on a
Participant pursuant to Section 16(b) of the Exchange Act, the Committee shall
have the right, in its sole discretion, but shall not be obligated, to defer
such transaction or the effectiveness of such action to the extent necessary to
avoid such liability, but in no event for a period longer than 180 days.

                  (d)   Section 162(m) of the Code.  The Plan is intended to
comply in all respects with Section 162(m) of the Code.

                  (e)   Awards to Individuals Subject to Non-U.S. Jurisdictions.
To the extent that Awards under the Plan are awarded to individuals who are
domiciled or resident outside of the United States or to persons who are
domiciled or resident in the United States but who are subject to the tax laws
of a jurisdiction outside of the United States, the Committee may adjust the
terms of the Awards granted hereunder to such persons (i) to comply with the
laws of such jurisdiction and (ii) to permit the grant of the Award not to be a
taxable event to the Participant. The authority granted under the previous
sentence shall include the discretion for the Committee to adopt, on behalf of
the Company, one or more sub-plans applicable to separate classes of Eligible
Individuals who are subject to the laws of jurisdictions outside of the United
States.

                  (f)   Securities Law Restrictions. An Award may not be
exercised or settled and no Common Shares may be issued in connection with an
Award unless the issuance of such shares has been registered under the
Securities Act of 1933, as amended, and qualified under applicable state "blue
sky" laws and any applicable foreign securities laws, or the Company has
determined that an exemption from registration and from qualification under such
state "blue sky" laws is available. The Committee may require each Participant
purchasing or acquiring Common Shares pursuant to an Award under the Plan to
represent to and agree with the Company in writing that such Eligible Individual
is acquiring the Common Shares for investment purposes and not with a view to
the distribution thereof. All certificates for Common Shares delivered under the
Plan shall be subject to such stock-transfer orders and other restrictions as
the Committee may deem advisable under the rules, regulations, and other
requirements of the Securities and Exchange Commission, any exchange upon which
the Common Shares are then listed, and any applicable securities law, and the
Committee may cause a legend or legends to be put on any such certificates to
make appropriate reference to such restrictions.

                  (g)   Award Document. In the event of any conflict or
inconsistency between the Plan and any Award Document, the Plan shall govern and
the Award Document shall be interpreted to minimize or eliminate any such
conflict or inconsistency.

                                       11
<PAGE>

                  (h)   Application of Funds. The proceeds received by the
Company from the sale of Common Shares pursuant to Awards will be used for
general corporate purposes.

                  (i)   Governing Law. The Plan and all agreements entered into
under the Plan shall be construed in accordance with and governed by the laws of
the State of New York and without giving effect to principles of conflicts of
laws.

                                       12

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