Document:

EXHIBIT 10.3

                              THE CIT GROUP, INC.

                                November 1, 1999

Mr. Albert R. Gamper, Jr.
650 CIT Drive
Livingston, New Jersey 07039

Dear Al:

      Reference is made to your employment agreement, dated December 29, 1989
(the "Employment Agreement"), with The CIT Group, Inc. (the "Company"), as
amended by letter agreements dated November 16, 1992, December 20, 1994, and
April 1, 1997. The Board of Directors (the "Board") of the Company is pleased to
extend your employment agreement with the Company on the following terms and
conditions, all other terms and conditions being null and void:

      1. Term. This letter agreement will be effective as of November 1, 1999.
The term of this Agreement (the "Term") will be for a period of thirty-eight
months beginning on November 1, 1999 and, except as otherwise provided in
paragraph 4 below, ending on December 31, 2002. This letter agreement and the
Term may be extended for one or more additional periods as provided in paragraph
7 or by written agreement signed by you and the Company at any time prior to the
end of the Term then in effect.

      2. Duties and Authority. During the Term, you shall serve as the Chief
Executive Officer, President, Chairman of the Executive Committee and a member
of the Board of the Company. You agree to accept the position of Chairman of the
Board of the Company if the position is offered to you. Subject to the overall
direction and control of the Board, as Chief Executive Officer and President,
you shall have general charge and control of the business and affairs of the
Company, which shall include but shall not be limited to responsibility
for overall policy making as well as day-to-day operations (including hiring and
firing of personnel, establishing credit policy, personnel compensation and the
nature and pricing of the business of the Company). You agree to devote
substantially all of your business time and energies to the business of the
Company and to faithfully, diligently and competently perform your duties
hereunder, except that you may devote a reasonable amount of time to serving as
a director of not-for-profit institutions, and with the approval of the Board,
of business corporations. You

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shall not be assigned any duties that are inconsistent with your status as Chief
Executive Officer of the Company.

      3. Compensation and Benefits. In full consideration for all services
rendered by you in all capacities during the Term, you will receive the
following compensation and benefits:

            (a) Base Salary. An annual base salary of $875,000 payable in
accordance with the customary payroll practices of the Company. Your Base Salary
and performance will be reviewed by the Board during the Term pursuant to normal
Company practices. Your Base Salary may be increased (but not reduced) by the
Board from time to time, based upon your performance and responsibilities,
pursuant to the Company's standard procedures for salary adjustments.

            (b) Bonuses. You will participate in all executive bonus and
incentive compensation plans (collectively, "Incentive Plans") now or hereafter
maintained by the Company for which your level of employment makes you eligible
in accordance with the Company's policies and the terms of such Incentive Plans.

            (c) Expense Reimbursement. The Company will reimburse you for your
ordinary and necessary business and travel expenses incurred by you in the
performance of your duties. When traveling on Company business or personal
travel, you shall be authorized for security reasons to travel on CIT's
corporate aircraft. The cost of your personal travel on CIT's corporate aircraft
shall be imputed to you as income. If you are flying on commercial airlines for
Company business, first class is authorized.

            (d) Other Benefits. You will be eligible to participate in all
employee retirement and welfare benefit plans now or hereafter maintained by or
on behalf of the Company, including the Company's Executive Retirement Program
and receive all fringe benefits and vacations, for which your level of
employment makes you eligible in accordance with the Company's policies and the
terms of such plans. In addition, the Company will provide you with (i) a
supplemental pension benefit and (ii) a supplemental savings benefit, in each
case in an amount equal to the value of the benefit you would be entitled to
receive under the Company's Retirement Plan or Savings Incentive Plan, as the
case may be, but for the limitations on the amount of such benefits imposed by
Internal Revenue Code Sections 415 and 401(a)(17). In connection with your
benefits under the Company's Executive Retirement Program, the Company will not
unreasonably withhold its consent to your retirement.

            (e) Additional Benefits. In addition to the benefits described
above, the Company shall provide the following special benefits to you:

                  (1) Attorney and Accountant Expense Reimbursement. The Company
            shall reimburse you for up to $25,000 annually for attorneys' fees
            and

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            disbursements incurred by you for tax advice or other legal counsel
            and for accounting fees incurred by you for tax advice or other
            financial planning;

                  (2) Office and Staff. The Company shall provide you with
            suitable offices located in northern New Jersey, and you shall not
            be required to relocate your residence from the New Jersey area. You
            may also employ secretaries and assistants of your own selection as
            you deem appropriate or necessary. The Company shall also provide
            you with a car and driver substantially equivalent to that enjoyed
            by you under the your past employment agreement.

                  (3) Dues. The Company shall reimburse you for the full cost
            (annual dues plus initiation fees) of one country club or luncheon
            club membership of your choice; and

                  (4) Indemnification and Insurance. The Company will provide
            you with suitable director's and officer's liability insurance to
            the extent available on commercially reasonable terms. The Company
            shall not amend the provisions of Article ELEVENTH and TWELFTH of
            its Restated Certificate of Incorporation or Article X of its
            By-Laws in any manner adverse to you without your consent.

            (f) Modifications. The Company may at any time or from time to time
amend, modify, suspend or terminate any bonus, incentive compensation or other
benefit plans or programs provided hereunder for any reason and without your
consent; provided that, without your consent, the Company may not reduce the
aggregate value of the benefits provided to the Executive hereunder, or
administer the Company Executive Retirement Program in a manner substantially
inconsistent with past practices.

      4.   Termination of the Executive's Employment.

            (a) Termination Date. The effective date of your termination of
employment with the Company shall be the "Termination Date."

            (b) By the Company. The Board by majority vote may terminate your
employment in its sole discretion at any time during the Term, with or without
Cause. For purposes of this letter agreement, "Cause" means (A) your gross
negligence, recklessness or malfeasance in the performance of your duties
hereunder, (B) your committing any criminal act, act of fraud or other
misconduct resulting or intending to result directly or indirectly in gain or
personal enrichment at the expense of the Company, or (C) your willfully
engaging in any conduct relating to the business of the Company that could
reasonably be expected to have a materially detrimental effect on the business
or financial condition of the Company.

            (c) By You. You may terminate your employment with the Company at
any time during the Term, with or without Good Reason, upon fifteen (15) days
prior written notice by you to the Company. For purposes of this letter
agreement,

                                      -3-

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"Good Reason" means the assignment to you of duties and responsibilities not
commensurate with your status as Chief Executive Officer of the Company, the
failure of the Company to provide compensation and benefits to your at the
levels required herein, you are required without your consent to relocate or
perform a significant portion of your duties under this Employment Agreement
outside a fifty (50) mile radius from your present principal place of
employment, or the failure of the Company to adhere in any substantial manner to
any of its other covenants herein. Termination of your employment by you
following the completion of a Change of Control contract extension as provided
in 7(a) will be deemed a "Good Reason" termination entitling you to the benefits
and payments covered in paragraph 5 reduced by the amount of any "Special
Payment" previously paid to you pursuant to paragraph 7(b). The failure of the
Company to offer to renew this Employment Agreement, at least ninety (90) days
prior to the Termination Date, on terms and conditions (including payment of
base salary and participation in incentive plans and benefits) at least as
favorable as in the final year of your last Term shall also be deemed a "Good
Reason" termination entitling you to the benefits and payments covered in
paragraph 5.

          5.   Severance Payment.

            (a) Without Cause and Good Reason Termination. If during the Term
the Company terminates your employment without Cause or you terminate your
employment for Good Reason, all compensation payable to your under paragraph 3
hereof will cease as of the Termination Date and the Company will provide to
you, subject to paragraph 6, the following sums and benefits:

                  (1) A payment of three times your Base Salary on the
                      Termination Date, plus three times the average annual
                      bonus you received in the prior two years, plus a pro-rata
                      annual bonus for that portion of the bonus year up to the
                      Termination Date based on the average annual bonus, if
                      any, paid in the prior two (2) full years; the sum of
                      which is payable in 24 equal installments at the end of
                      each of the 24 months following the Termination Date. If,
                      however, prior to the second anniversary of the
                      Termination Date, you violate the noncompetition
                      provisions of paragraph 6(b)(A), then the Company will
                      have no obligation to make any of the payments that remain
                      payable by the Company under this paragraph 5(a)(1) on or
                      after the date of such violation.

                  (2) Immediate vesting of each outstanding unvested stock
                      option, stock appreciation right, tandem

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                      option, tandem stock appreciation right, restricted stock,
                      performance share, performance unit, annual incentive
                      award, or any similar equity or incentive share or unit.

                  (3) All previously earned and accrued entitlements and
                      benefits from the Company, including any such entitlements
                      and benefits under the Company's pension, disability and
                      life insurance plans, policies and programs.

                  (4) Continued benefit coverage which permits you to continue
                      to receive, for three (3) years from the Termination Date,
                      at the Company's expense, life insurance and medical,
                      dental and disability benefits at least comparable to
                      those provided by the Company to you on the Termination
                      Date, provided that such benefits shall cease if you
                      obtain other employment with comparable benefits, as
                      determined by the Company. Three (3) years additional
                      benefit service and age credit under the Company's
                      Retirement Plan and the Executive Retirement Plan. (The
                      amount of any benefit payable as a result of such three
                      (3) year additional service and age credit shall be paid
                      from the applicable benefit or retirement plan as
                      permitted by the provisions of such applicable benefit or
                      retirement plan and the law, or in the event not paid from
                      the applicable benefit or retirement plan, such benefit
                      shall be paid by the Company.)

                  (5) The reasonable costs of outplacement services, a fully
                      equipped office and secretary to be utilized by you for up
                      to two years, and a car and driver for two years that are
                      substantially equivalent to the car and driver you had on
                      the Termination Date.

                  (6) Any awards due to you under the terms of the Company's
                      Long Term Equity Compensation Plan or any plan as may have
                      been hereafter adopted by the Company. Upon such payment,
                      all of your rights under all such plans will then
                      terminate.

                                      -5-

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                  (7) All benefits payable to you under the terms and
                      conditions of the Company's Executive Benefits Program, if
                      any.

      All of the amounts and benefits to be provided pursuant to clauses (4),
(5), (6) and (7) above shall be provided without duplication for the amounts and
benefits to be provided pursuant to clause (3) above.

            (b) For Cause Termination - or Termination By You Without Good
      Reason. If your employment is terminated by the Company for Cause or if
      you terminate your employment for any reason other than Good Reason, you
      will receive only the amounts specified in paragraph 5(a)(3). In the event
      you are eligible under the terms and conditions of the Company's various
      executive benefit plans, if any, you will also receive the benefits
      specified in paragraph 5(a)(7) provided you are not in breach of this
      Agreement.

            (c) Death or Disability. In the event of your death or your
      disability due to physical or mental illness or other disability which
      renders you unable, on other than a temporary basis, to perform the duties
      of your employment, the Employment Term will terminate as of the date of
      your death or disability and you or your estate will receive the benefits
      specified in paragraphs 5(a)(2), 5(a)(3), 5(a)(7) and, in the case of
      disability, you shall also receive the benefits specified in paragraph
      5(a)(4). In addition, you or your estate shall receive an amount equal to
      your Base Salary on the date of your death or disability for three years.
      Disability will be determined by the Board in a manner consistent with the
      Company's Long Term Disability Plan.

          6.   Confidentiality and Competitive Activity.

            (a) You acknowledge that you have acquired and will continue to
acquire during the Term, confidential information regarding the business of the
Company, Dai-Ichi Kangyo Bank (DKB) and their respective subsidiaries and
affiliates. Accordingly, you agree that, without the written consent of the
Board, you will not, at any time, disclose to any unauthorized person or
otherwise use any such confidential information. For this purpose, confidential
information means non-public information concerning the financial data, business
strategies, product development (and proprietary product data), customer lists,
marketing plans, and other proprietary information concerning the Company or DKB
and their respective subsidiaries and affiliates, except for specific items
which have become publicly available other than as a result of your breach of
this letter agreement.

            (b) During the Term and, if you resign with or without Good Reason
or your employment is terminated by the Company with or without Cause, you
retire under the terms of the Company's Retirement Plan prior to the end of the
Term or you resign following the expiration of this Employment Agreement, then
for two years after the Termination Date, you will not, without the written
consent of the Board,

                                      -6-

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directly or indirectly, (A) knowingly engage or be interested in (as owner,
partner, stockholder, employee, director, officer, agent, consultant or
otherwise), with or without compensation, any business in the United States
which is in competition with any line of business actively being conducted on
the Termination Date by the Company or any of its subsidiaries; provided that if
your employment has been terminated by the Company without Cause, or you have
terminated your employment with the Company for Good Reason (except in the event
of a termination of your employment within eighteen months of a Change of
Control), you may so compete from and after the six month anniversary of the
Termination Date in which event you shall forfeit your right to receive future
severance payments pursuant to paragraph 5(a)(1) hereof, and (B) whether or not
your termination of employment occurred without Cause or for Good Reason, hire
any person who was employed by the Company or any of its subsidiaries or
affiliates (other than persons employed in a clerical or other non-professional
position) within the six-month period preceding the date of such hiring, or
solicit, entice, persuade or induce any person or entity doing business with the
Company or DKB and their respective subsidiaries and affiliates, to terminate
such relationship or to refrain from extending or renewing the same. Nothing
herein, however, will prohibit you from acquiring or holding not more than one
percent of any class of publicly traded securities of any such business;
provided that such securities entitle you to no more than one percent of the
total outstanding votes entitled to be cast by securityholders of such business
in matters on which such securityholders are entitled to vote. Notwithstanding
anything in the foregoing to the contrary, in the event of a Change of Control,
the provisions of clause (A) and clause (B) shall apply following termination of
your employment for any reason.

            (c) Remedy for Breach. You hereby acknowledge that the provisions of
this paragraph 6 are reasonable and necessary for the protection of the Company,
DKB and their respective subsidiaries and affiliates. In addition, you further
acknowledge that the Company, DKB and their respective subsidiaries and
affiliates will be irrevocably damaged if such covenants are not specifically
enforced. Accordingly, you agree that, in addition to any other relief to which
the Company may be entitled, the Company will be entitled to seek and obtain
injunctive relief (without the requirement of any bond) from a court of
competent jurisdiction for the purposes of restraining you from an actual or
threatened breach of such covenants. In addition, and without limiting the
Company's other remedies, in the event of any breach by you of such covenants,
the Company will have no obligation to pay any of the amounts that remain
payable by the Company under paragraph 5(a)(1).

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          7.   Change of Control.

            (a) Termination/Contract Extension. In the event of a Change of
Control during the Term, you may elect, on 90 days prior written notice, to
terminate your employment upon the first anniversary of the change of control,
and have such termination deemed "Good Reason." In the event the first
anniversary of such a Change of Control occurs after the end of the Term, the
Term shall be extended to the earlier of: (i) ninety (90) days after the end of
the Term or (2) the first anniversary of the Change of Control.

            (b) Special Payment. In addition to the compensation and benefits
already required under the provisions of your Employment Agreement, if a Change
of Control should occur on or prior to December 31, 2002, you will receive a
special payment (the "Special Payment"). The amount of such Special Payment
shall equal the sum of your prior four years' annual bonuses under The CIT Group
Bonus Plan and will be payable over a one-year period as follows: 1/2 of the
payment shall be paid to you within 30 days after the date of the Change of
Control; 1/2 shall be paid to you on or before the first anniversary date of
such Change of Control. Notwithstanding the foregoing provisions of this
paragraph, all or any part of such Special Payment shall not be payable to you:
if during the one-year period commencing on the date of a Change of Control, and
ending on the first anniversary of such date: (i) your employment is
involuntarily terminated by the Company for "Cause" as defined in the Employment
Agreement; (ii) you voluntarily terminate employment with the Company for any
reason other than "Good Reason" as defined in the Employment Agreement; (iii)
you breach any non-competition or confidentiality covenant under Section 6 of
the Employment Agreement or (iv) you have received previously a payment pursuant
to paragraph 5(a)(1). For purposes of this Paragraph (b) "Special Payment", a
termination of your employment on account of your death, disability or
retirement on or after age 55 under the terms of the Company's retirement plan
(provided such is consistent with Section 7(a)) shall constitute a termination
for "Good Reason." In the absence of a separate beneficiary designation, your
beneficiary under the Group Life Insurance Plan will receive any Special Payment
remaining to be paid upon your death.

            (c) Change of Control Defined. For purposes of this letter
agreement, a "Change of Control" shall be deemed to have occurred if: (1) any
Person or Group other than DKB or its Affiliates becomes the Beneficial Owner,
directly or indirectly, of securities representing a majority of the combined
voting power of the Company's then outstanding securities generally entitled to
vote for the election of directors (capitalized terms not otherwise defined
herein are used as defined under the Securities Exchange Act of 1934, as
amended, and the rules and regulations promulgated thereunder); or (2) as a
result of a cash tender offer, merger or other business combinations, sales or
assets or contested election, or any combination of the foregoing transactions
(a "Transaction"), the combination of the persons who were directors of the
Company immediately before the Transaction and persons designated by the persons
who

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were directors of the Company immediately before the Transaction, shall cease to
constitute a majority of the Board of the Company or of any successor to the
Company. Notwithstanding the foregoing, a Change of Control resulting from a
Change of Control of DKB shall not require the extension of the Term hereunder.

               8.   Miscellaneous.

            (a) Survival; Notices. The obligations of the Company in paragraph 5
and your obligations in paragraph 6 will survive the termination of this letter
agreement. Any notice, consent or other communication made or given in
connection with this letter agreement will be in writing and will be deemed to
have been duly given when delivered or five days after mailed by United States
registered or certified mail, return receipt requested, to the parties at the
address set forth on the first page of this letter agreement (attention: General
Counsel, if to the Company).

            (b) Entire Agreement. This letter agreement supersedes any and all
existing agreements between you and the Company or any of its subsidiaries or
affiliates relating to the terms of your employment.

            (c) Amendments and Waivers. No provisions of this letter agreement
may be amended, modified, waived or discharged except as agreed to in writing by
you and the Board. The failure of a party to insist upon strict adherence to any
term of this letter agreement on any occasion will not be considered a waiver
thereof or deprive that party of the right thereafter to insist upon strict
adherence to that term or any other term of this letter agreement.

            (d) Successors. This letter agreement shall be binding upon and
inure to the benefit of you and the Company and its successors and permitted
assigns. Neither this letter agreement nor any of the rights of the parties
hereunder may be assigned by either party hereto except that the Company may
assign its rights and obligations hereunder to a corporation or other entity
that acquires substantially all of its assets. Any assignment or transfer of
this letter agreement in violation of the foregoing provisions will be void.

            (e) Governing Law. This letter agreement will be governed by and
construed in accordance with the laws of the State of New York applicable to
agreements made and/or to be performed in that State.

            (f) Legal Counsel; Offsets and Reductions. In the event you obtain
legal counsel to enforce your rights under this letter agreement, the Company
will pay you reasonable legal fees if you recover any amount on such claim.
Except as provided in paragraph 6, if your employment is terminated by the
Company, your severance shall not be subject to any offsets or reductions for
your subsequently earned income or reduction by reason of any claim by the
Company.

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            (g) Severability. If the provision of this letter agreement is
invalid or unenforceable, the balance of this letter agreement will remain in
effect, and if such provision is inapplicable to any person or circumstance, it
will nevertheless remain applicable to all other persons and circumstances.

            (h) Withholdings. The Company is authorized to withhold from any
benefit provided or payment due hereunder the amount of withholding taxes due
any federal, state, or local authority in respect of such benefit or payment and
to take such other action as may be necessary in the opinion of the Company to
satisfy all obligations for the payment of such withholding taxes.

            (i) Tax Gross-Up. In the event that any payment made to you pursuant
to this employment agreement with the Company becomes subject to excise taxes
under Section 4999 of the Internal Revenue Code of 1986, as amended (the
"Code"), the Company will pay to you the amount of such excise taxes plus all
federal, state and local taxes applicable to the Company's payment of such
excise taxes including any additional excise taxes due under Section 4999 of the
Code with respect to payments made pursuant to this letter agreement.

The determination of amounts required to be paid under this letter agreement
shall be made by an independent auditor selected and paid by the Company. Such
independent auditor shall be a nationally recognized United States public
accounting firm, which may be the independent accounting firm used by the
Company to audit its financial statements.

      If you are in agreement with the terms of this letter, please so indicate
by signing and returning the enclosed copy of this letter, whereupon this letter
shall constitute a binding agreement between you and the Company.

                                             Very truly yours,

                                             THE CIT GROUP, INC.

                                             By: /s/ Hisao Kobayashi
                                                --------------------------------
                                                  Name: Hisao Kobayashi
                                                  Title: Chairman

Agreed:
/s/ Albert R. Gamper, Jr.
------------------------------------
    Albert R. Gamper, Jr.

                                      -10-Exhibit 10.23:

                             1997 STOCK OPTION PLAN
                                       OF
                            HUDSON TECHNOLOGIES, INC.

     1. Purpose

     Hudson Technologies, Inc. (the "Company") desires to attract and retain the
best available talent and encourage the highest level of performance in order to
continue to serve the best interests of the Company, and its shareholder(s).  By
affording key personnel the opportunity to acquire proprietary  interests in the
Company and by providing  them  incentives to put forth maximum  efforts for the
success of the business, the 1997 Stock Option Plan of Hudson Technologies, Inc.
(the  "1997  Plan")  is  expected  to  contribute  to the  attainment  of  those
objectives.

     The word  "Parent" as used  herein,  shall mean any  corporation  that owns
fifty percent or more of the voting stock of the Company.

     The word  "Subsidiary"  or  "Subsidiaries"  as used herein,  shall mean any
corporation,  fifty percent or more of the voting stock of which is owned by the
Company.

     2. Scope and Duration

     Options  under the 1997 Plan may be granted in the form of incentive  stock
options ("Incentive Options") as provided in Section 422 of the Internal Revenue
Code of 1986,  as amended (the  "Code"),  or in the form of  nonqualified  stock
options ("Non-Qualified  Options").  (Unless otherwise indicated,  references in
the 1997 Plan to "options" include Incentive Options and Non-Qualified Options.)
The maximum  aggregate  number of shares as to which options may be granted from
time to time under the 1997 Plan is 2,000,000* shares of the Common Stock of the
Company ("Common Stock"),  which shares may be, in whole or in part,  authorized
but unissued shares or shares  reacquired by the Company.  The maximum number of
shares with respect to which  options may be granted to any employee  during the
term of the 1997 Plan is 500,000. Except as otherwise provided in Paragraph 7(b)
hereof, if an option shall expire,  terminate or be surrendered for cancellation
for any reason without having been exercised in full, the shares  represented by
the option or portion thereof not so exercised shall (unless the 1997 Plan shall
have been terminated)  become  available for subsequent  option grants under the
1997 Plan. As provided in Paragraph 13, the 1997 Plan shall become  effective on
June 12, 1997, and unless  terminated  sooner pursuant to Paragraph 14, the 1997
Plan shall terminate on June 11, 2007, and no option shall be granted  hereunder
after that date.

*Increased to 2,000,000 shares by shareholder resolution made August 19,1999

     3. Administration

     The 1997  Plan  shall be  administered  by the  Board of  Directors  of the
Company, or, at their discretion, by a committee which is appointed by the Board
of Directors to perform such function  (the  "Committee").  The Committee  shall
consist  of not less than two  members of the Board of  Directors,  each of whom
shall  serve  at  the  pleasure  of  the  Board  of  Directors  and  shall  be a
"Non-Employee  Director" as defined in Rule l6b-3 under the Securities  Exchange
Act of 1934 (the "Act").  Vacancies occurring in the membership of the Committee
shall be filled by appointment by the Board of Directors.

     The Board of  Directors  or the  Committee,  as the case may be, shall have
plenary  authority in its discretion,  subject to and not inconsistent  with the
express provisions of the 1997 Plan, to grant options, to determine the purchase
price of the Common Stock covered by each option,  the term of each option,  the
persons to whom,  and the time or times at which,  options  shall be granted and
the number of shares to be  covered  by each  option;  to  designate  options as
Incentive  Options or  Non-Qualified  Options;  to interpret  the 1997 Plan;  to
prescribe, amend and rescind rules and regulations relating to the 1997 Plan; to
determine the terms and provisions of the option  agreements  (which need not be
identical)  entered into in connection  with options under the 1997 Plan; and to
make  all  other   determinations   deemed   necessary  or  advisable   for  the
administration of the 1997 Plan. The Board of Directors or the Committee, as the
case may be, may delegate to one or more of its members or to one or more agents
such administrative duties as it may deem advisable,  and the Board of Directors
or the  Committee,  as the case may be, or any  person to whom it has  delegated
duties as aforesaid may employ one or more persons to render advice with respect
to any responsibility  the Board of Directors or the Committee,  as the case may
be, or such person may have under the 1997 Plan.

                                       46
<PAGE>

     4. Eligibility; Factors to be Considered in Granting Options

     Incentive  Options  shall be limited to persons  who are  employees  of the
Company or, if  applicable,  its  Parent,  or the  Company's  present and future
Subsidiaries  and at the date of grant of any  option  are in the  employ of the
Company or its Parent or the  Company's  present  and  future  Subsidiaries.  In
determining  the  employees to whom  Incentive  Options shall be granted and the
number of shares to be covered by each Incentive Option,  the Board of Directors
or the  Committee,  as the case may be,  shall take into  account  the nature of
employees' duties,  their present and potential  contributions to the success of
the Company and such other factors as it shall deem relevant in connection  with
accomplishing the purposes of the 1997 Plan. An employee who has been granted an
option or options  under the 1997 Plan may be granted  an  additional  option or
options,  subject,  in the case of Incentive Options, to such limitations as may
be  imposed  by  the  Code  on  such  options.   Except  as  provided  below,  a
Non-Qualified  Option may be granted to any person,  including,  but not limited
to, employees,  independent agents,  consultants and attorneys, who the Board of
Directors or the Committee,  as the case may be,  believes has  contributed,  or
will contribute, to the success of the Company.

     5. Option Price

     The  purchase  price of the Common  Stock  covered by each option  shall be
determined  by the Board of Directors or the  Committee,  as the case may be. In
the case of Incentive  Options,  the purchase  price shall not be less than 100%
(110% if granted to an employee  referred to in  Paragraph  8(b)  hereof) of the
Fair Market  Value (as defined in  Paragraph  15 below) of a share of the Common
Stock on the date on which the option is granted.  In the case of  Non-Qualified
Options  the  purchase  price per share of Common  Stock  covered by each option
shall be such  price,  not less than the par value a share of Common  Stock,  as
shall be determined by the Board of Directors or the Committee,  as the case may
be. Such purchase prices shall be subject to adjustment as provided in Paragraph
12 below.  The Board of  Directors or the  Committee,  as the case may be, shall
determine  the date on which an  option is  granted;  in the  absence  of such a
determination, the date on which the Board of Directors or the Committee, as the
case may be, adopts a resolution granting an option shall be considered the date
on which such option is granted.

     6. Term of Options

     The term of each option  shall be  determined  by the Board of Directors or
the  Committee,  as the case  may be,  provided,  however,  that the term of any
option  cannot be more than 10 years from the date of grant  (five  years in the
case of an Incentive Option granted to an employee referred to in Paragraph 8(b)
hereof).  All options  granted  pursuant to the 1997 Plan are subject to earlier
termination as provided in Paragraphs 10 and 11 below.

     7. Exercise of Options

     (a)  Subject  to the  provisions  of the  1997  Plan and  unless  otherwise
provided  in the option  agreement,  options  granted  under the 1997 Plan shall
become exercisable as determined by the Board of Directors or Committee.  In its
discretion, the Board of Directors or the Committee, as the case may be, may, in
any case or cases,  prescribe  that options  granted  under the 1997 Plan become
exercisable in installments or provide that an option may be exercisable in full
immediately upon the date of its grant. The Board of Directors or the Committee,
as the case may be, may, in its sole  discretion,  also  provide  that an option
granted pursuant to the 1997 Plan shall immediately  become  exercisable in full
upon the happening of any of the  following  events;  (i) the first  purchase of
shares of Common Stock  pursuant to a tender offer or exchange offer (other than
an offer by the  Company)  for all, or any part of, the Common  Stock,  (ii) the
approval by the  shareholder(s)  of the Company of an agreement  for a merger in
which  the  Company  will  not  survive  as  an   independent,   publicly  owned
corporation, a consolidation, or a sale, exchange or other disposition of all or
substantially all of the Company's assets, (iii) with respect to an employee, on
his 65th  birthday,  or (iv) with  respect  to an  employee,  on the  employee's
involuntary  termination  from  employment,  except as  provided  in  Section 10
herein.  In the event of a question or  controversy  as to whether or not any of
the events  hereinabove  described has taken place, a determination by the Board
of  Directors or the  Committee,  as the case may be, that such event has or has
not occurred shall be conclusive  and binding upon the Company and  participants
in the 1997 Plan.

     (b) Any  option  at any time  granted  under  the 1997  Plan may  contain a
provision to the effect that the optionee (or any persons  entitled to act under
Paragraph 11 hereof) may, at any time at which Fair Market Value is in excess of
the  exercise  price and prior to  exercising  the option,  in whole or in part,
request that the Company purchase all or any portion of the option as shall then
be exercisable at a price (the "Purchase Price") equal to the difference between

                                       47
<PAGE>

(i) an amount  equal to the  option  price  multiplied  by the  number of shares
subject to that portion of the option in respect of which such request  shall be
made and (ii) an amount  equal to such number of shares  multiplied  by the fair
market value of the Company's Common Stock (within the meaning of Section 422 of
the Code and the treasury  regulations  promulgated  thereunder)  on the date of
purchase.  The Company shall have no obligation to make any purchase pursuant to
such request,  but if it elects to do so, such portion of the option as to which
the request is made shall be surrendered to the Company.  The Purchase Price for
the  portion of the option to be so  surrendered  shall be paid by the  Company,
less any  applicable  withholding  tax  obligations  imposed upon the Company by
reason  of the  purchase,  at the  election  of the  Board of  Directors  or the
Committee,  as the case may be,  either in cash or in  shares  of  Common  Stock
(valued as of the date and in the manner  provided in clause (ii) above),  or in
any  combination  of cash and Common  Stock,  which may consist,  in whole or in
part,  of shares of  authorized  but  unissued  Common Stock or shares of Common
Stock held in the Company's treasury.  No fractional share of Common Stock shall
be issued or transferred and any fractional  share shall be disregarded.  Shares
covered by that portion of any option  purchased by the Company  pursuant hereto
and  surrendered  to the  Company  shall not be  available  for the  granting of
further  options  under  the 1997  Plan.  All  determinations  to be made by the
Company  hereunder shall be made by the Board of Directors or the Committee,  as
the case may be.

     (c) An option may be exercised,  at any time or from time to time (subject,
in the case of Incentive Options,  to such restrictions as may be imposed by the
Code),  as to  any or  all  full  shares  as to  which  the  option  has  become
exercisable  until the expiration of the period set forth in Paragraph 6 hereof,
by the  delivery to the Company,  at its  principal  place of  business,  of (i)
written  notice of exercise in the form  specified  by the Board of Directors or
the  Committee,  as the case may be,  specifying  the number of shares of Common
Stock  with  respect to which the  option is being  exercised  and signed by the
person  exercising the option as provided  herein,  (ii) payment of the purchase
price;  and (iii) in the case of Non-Qualified  Options,  payment in cash of all
withholding tax obligations  imposed on the Company by reason of the exercise of
the option.  Upon  acceptance  of such notice,  receipt of payment in full,  and
receipt of payment of all withholding tax  obligations,  the Company shall cause
to be issued a certificate representing the shares of Common Stock purchased. In
the event the person  exercising the option  delivers the items specified in (i)
and (ii) of this Subsection (c), but not the item specified in (iii) hereof,  if
applicable,  the option shall still be considered  exercised upon  acceptance by
the  Company  for the full  number of shares of Common  Stock  specified  in the
notice of exercise  but the actual  number of shares  issued shall be reduced by
the smallest  number of whole shares of Common Stock which,  when  multiplied by
the  Fair  Market  Value of the  Common  Stock  as of the  date  the  option  is
exercised, is sufficient to satisfy the required amount of withholding tax.

     (d) Except as otherwise provided in subsection (b) of this Paragraph 7, the
purchase price of the shares as to which an option is exercised shall be paid in
full at the time of exercise.  Payment shall be made in cash,  which may be paid
by check or other instrument acceptable to the Company; in addition,  subject to
compliance with applicable laws and regulations and such conditions as the Board
of  Directors  or the  Committee,  as the case may be, may impose,  the Board of
Directors or the Committee, as the case may be, in its sole discretion, may on a
case-by-case  basis  elect to accept  payment  in shares of Common  Stock of the
Company which are already owned by the option holder,  valued at the Fair Market
Value  thereof  (as  defined  in  Paragraph  15 below) on the date of  exercise;
provided,  however,  that with respect to Incentive Options,  no such discretion
may be exercised unless the option agreement permits the payment of the purchase
price in that manner.

     (e) Except as provided in Paragraphs 10 and 11 below,  no option granted to
an employee may be exercised at any time by such  employee  unless such employee
is then an employee of the Company or a Subsidiary or Parent.

     8. Incentive Options

     (a) With respect to Incentive  Options  granted,  the aggregate Fair Market
Value  (determined in accordance with the provisions of Paragraph 15 at the time
the  Incentive  Option is granted) of the Common Stock or any other stock of the
Company or its current or future  Subsidiaries  with respect to which  incentive
stock options,  as defined in Section 422 of the Code, are  exercisable  for the
first time by any employee  during any calendar year (under all incentive  stock
option  plans of the Company  and its parent and  subsidiary  corporation's,  as
those terms are defined in Section 424 of the Code) shall not exceed $100,000.

     (b) No  Incentive  Option may be awarded to any  employee  who  immediately
prior to the date of the granting of such Incentive Option owns more than 10% of
the  combined  voting power of all classes of stock of the Company or any of its
Subsidiaries  unless the exercise  price under the Incentive  Option is at least
110% of the Fair  Market  Value and the option  expires  within 5 years from the
date of grant.

                                       48
<PAGE>

     (c) In the  event  of  amendments  to the  Code or  applicable  regulations
relating to Incentive Options  subsequent to the date hereof,  the provisions of
the 1997 Plan and the provisions of outstanding  option  agreements  between the
Company and any  optionee  with respect to options  issued  pursuant to the 1997
Plan shall  automatically,  and without any action on the part of any person, be
modified  to  conform  to  such  amendments,  provided,  however,  that  no such
amendment  shall  occur  without  the  express  approval  of the Company and the
optionee if the effect of such amendment were to result in the granting of a new
option pursuant to Section 424(h) of the Code or any successor provision.

     9. Transferability of Options

     Incentive  Options  granted  under the 1997 Plan shall not be  transferable
otherwise  than by will or the laws of descent and  distribution,  and Incentive
Options  may be  exercised  during  the  lifetime  of the  optionee  only by the
optionee.  Non-Qualified  Options are only transferable if such right is granted
by the  Board of  Directors,  or the  Committee,  as the  case may be,  and such
provision is contained in the option agreement with respect to the Non-Qualified
Options.  No  transfer  of an option by the  optionee  by will or by the laws of
descent and  distribution  or  otherwise  shall be effective to bind the Company
unless the Company shall have been  furnished  with written notice thereof and a
copy of the will and/or such other evidence as the Company may deem necessary to
establish the validity of the transfer and the  acceptance by the  transferor or
transferees of the terms and conditions of such option.

     10. Termination of Employment

     In the event that the  employment of an employee to whom an option has been
granted  under  the  1997  Plan  shall be  terminated  (except  as set  forth in
Paragraph 11 below),  such option may be,  subject to the provisions of the 1997
Plan,  exercised  (to the extent that the  employee was entitled to do so at the
termination  of his  employment)  at any time within three (3) months after such
termination,  but not  later  than  the  date on which  the  option  terminates;
provided, however, that any option which is held by an employee whose employment
is terminated for cause or voluntarily without the consent of the Company shall,
to the extent not theretofore exercised,  automatically terminate as of the date
of  termination  of  employment.  As used  herein,  "cause"  shall mean  conduct
amounting to fraud,  dishonesty,  or engaging in competition or solicitations in
competition with the Company and breaches of any applicable employment agreement
between the Company and the  optionee.  Options  granted to employees  under the
1997 Plan shall not be  affected  by any change of duties or position so long as
the  holder  continues  to be a regular  employee  of the  Company or any of its
current or future  Subsidiaries or Parent. Any option agreement or any rules and
regulations  relating to the 1997 Plan may contain such  provisions as the Board
of Directors or the Committee,  as the case may be, shall approve with reference
to the determination of the date employment  terminates and the effect of leaves
of absence.  Nothing in the 1997 Plan or in any option  granted  pursuant to the
1997 Plan shall  confer upon any employee any right to continue in the employ of
the Company or any of the  Subsidiaries  or Parent or  affiliated  companies  or
interfere  in any way with the right of the  Company or any such  Subsidiary  or
Parent or affiliated companies to terminate such employment at any time.

     11. Death or Disability of Employee

     If an employee to whom an option has been granted under the 1997 Plan shall
die while  employed by the Company or a Parent or a  Subsidiary  or within three
(3) months after the termination of such employment  (other than termination for
cause or voluntary termination without the consent of the Company or the consent
of the Parent for an employee of the  Parent,  as the case may be),  such option
may be  exercised,  to the extent  exercisable  by the  employee  on the date of
death,  by a legatee or legatees of the employee under the employee's last will,
or by the employee's personal representative or distributees, at any time within
one year after the date of the employee's  death, but not later than the date on
which the option terminates.  In the event that the employment of an employee to
whom an option has been granted  under the 1997 Plan shall be  terminated as the
result of a disability,  such option may be exercised, to the extent exercisable
by the  employee  on the date of such  termination,  at any time within one year
after the date of such  termination,  but not  later  than the date on which the
option terminates.

     12. Adjustments Upon Changes in Capitalization, Etc.

     Notwithstanding  any  other  provision  of the  1997  Plan,  the  Board  of
Directors  or the  Committee,  as the case may be,  may,  at any  time,  make or
provide for such adjustments to the 1997 Plan, to the number and class of shares
issuable  thereunder or to any outstanding  options as it shall deem appropriate
to prevent dilution or enlargement of rights, including adjustments in the event
of  changes  in the  outstanding  Common  Stock by  reason  of stock  dividends,
split-ups, recapitalizations, mergers, consolidations, combinations or exchanges
of shares, separations, reorganizations, liquidations and the like. In the event
of any offer to holders of Common Stock generally relating to the acquisition of
their shares,

                                       49
<PAGE>

the  Board of  Directors  or the  Committee,  as the case may be,  may make such
adjustment as it deems  equitable in respect of outstanding  options and rights,
including in its discretion  revision of outstanding  options and rights so that
they  may be  exercisable  for  the  consideration  payable  in the  acquisition
transaction.  Any such determination by the Board of Directors or the Committee,
as the case may be, shall be conclusive.  Any fractional  shares  resulting from
such adjustments shall be eliminated.

     13. Effective Date

     The 1997 Plan shall become effective on June 12, 1997, the date of adoption
by the  Board  of  Directors,  subject  to  approval  of the  1997  Plan  by the
shareholders of the Company on or before June 11, 1998.

     14. Termination and Amendment

     The Board of  Directors  of the Company  may,  without the  approval of its
shareholders,  suspend,  terminate,  modify  or amend the 1997  Plan,  provided,
however,  that any amendment that would increase the aggregate  number of shares
which may be issued  under  the 1997  Plan,  materially  increase  the  benefits
accruing  to  participants  under  the  1997  Plan,  or  materially  modify  the
requirements  as to eligibility  for  participation  in the 1997 Plan,  shall be
subject to the approval of the  Company's  shareholder(s),  except that any such
increase  or  modification  that  may  result  from  adjustments  authorized  by
Paragraph 12 does not require  such  approval.  Except as provided  below and in
Paragraph 8(c) hereof, no suspension, termination,  modification or amendment of
the 1997 Plan shall  require the approval of any optionee.  Notwithstanding  the
foregoing,  no suspension,  termination,  modification  or amendment of the 1997
Plan shall be made  without  the  consent of the person to whom an option  shall
theretofore  have  been  granted  if it  adversely  effects  the  rights of such
optionee under such option.

     15. Miscellaneous

     As said term is used in the 1997 Plan,  the "Fair Market  Value" of a share
of Common  Stock on any day means:  (a) if the  principal  market for the Common
Stock  is  a  national  securities  exchange  or  the  National  Association  of
Securities  Dealers Automated  Quotations  System  ("NASDAQ),  the closing sales
price of the Common  Stock on such day as  reported  by such  exchange or market
system,  or on a consolidated  tape reflecting  transactions on such exchange or
market  system,  or (b) if the  principal  market for the Common  Stock is not a
national  securities  exchange and the Common Stock is not quoted on NASDAQ, the
mean  between the highest bid and lowest  asked  prices for the Common  Stock on
such day as reported by the National  Quotation Bureau,  Inc.;  provided that if
clauses (a) and (b) of this  paragraph  are both  inapplicable,  or if no trades
have been made or no quotes are available for such day, the Fair Market Value of
the Common Stock shall be determined by the Board of Directors or the Committee,
as the  case may be,  shall be  conclusive  as to the Fair  Market  Value of the
Common Stock.

     No shares of Common Stock shall be issued and delivered upon exercise of an
option  granted  under the 1997 Plan  unless and until (i) such shares of Common
Stock have been duly listed,  upon official  notice of issuance,  upon any stock
exchange(s) on which the Common Stock is listed,  (ii) a Registration  Statement
under the Securities Act of 1933, as amended,  with respect to such shares shall
be effective and any applicable  state  registration or  qualification  has been
complied with, or, in the opinion of either counsel to the Company or counsel to
the option holder  reasonably  acceptable to the Company,  exemptions  from such
federal and state  registration  requirements  are  available  and/or  (iii) the
person exercising such option delivers to the Company such documents, agreements
and  investment  and  other  representations  as the Board of  Directors  or the
Committee,  as the case may be, shall  determine to be in the best  interests of
the Company.

     During the term of the 1997 Plan,  the Board of Directors or the Committee,
as the case may be, in its discretion,  may offer one or more option holders the
opportunity  to  surrender  any or all  unexpired  options for  cancellation  or
replacement.  If any options are so  surrendered,  the Board of Directors or the
Committee,  as the case may be, may then grant new  Non-Qualified  or  Incentive
Options to such holders for the same or different numbers of shares at higher or
lower exercise prices than the surrendered options.  Such new options may have a
different  term and shall be subject to the provisions of the 1997 Plan the same
as any other option.

     Anything herein to the contrary notwithstanding,  the Board of Directors or
the Committee,  as the case may be, may, in their sole  discretion,  impose more
restrictive conditions on the exercise of an option granted pursuant to the 1997
Plan;  however,  any and all such  conditions  shall be  specified in the option
agreement limiting and defining such option.

                                       50
<PAGE>

     16. Privileges of Stock Ownership

     No person entitled to exercise any option granted under the 1997 Plan shall
have any of the rights or privileges of a shareholder  of the Company in respect
of any shares of stock issuable upon exercise of such option until  certificates
representing such shares shall have been issued.

     17. Compliance with SEC Regulations.

     It is the  Company's  intent that the 1997 Plan comply in all respects with
Rule  16b-3  of the Act  and  any  regulations  promulgated  thereunder.  If any
provision  of the 1997  Plan is later  found not to be in  compliance  with said
Rule, the provisions shall be deemed null and void.

                                       51

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