Document:

January 15, 2008

Mr. Brian T. Maloney
22 Starview Drive
Flemington, NJ  08822

Dear Brian,

This Letter Agreement, Release and Waiver of Claims will outline the terms of
your separation from Unisys:

1.    This correspondence will confirm that your employment with Unisys has
been terminated without cause as defined in your April 26, 2006 offer letter
thereby entitling you to the separation benefits described therein.
Additionally, and in exchange for the mutual promises contained in this Letter
Agreement, Unisys will also provide you with the benefits described herein.
For purposes of this Letter Agreement, Release and Waiver of Claims, your last
day of work will be January 15, 2008 ("Departure Date"). The effective date of
your termination will be up to October 15, 2008 as described further herein
("Continuation Period").  You will not be required to report to the office
after the Departure Date.  In the event you obtain full-time employment <F1>
prior to June 30, 2008, Unisys will pay you any remaining salary payments up
until said date, in a lump sum, less lawful deductions.  The salary you receive
after the Departure Date will not be considered program compensation for
purposes of any employee benefit plan, including, but not limited to, the
Unisys Savings Plan.  You will not be eligible for any vacation accrual after
the Departure Date and your accrued and unused vacation balance will be paid to
you in your final paycheck.

2.    During the Continuation Period, your current health and welfare benefits
will be continued pursuant to the terms of the applicable plan documents.  You
will remain eligible for your 2007 Financial Counseling in the amount of up to
$5,000 and your 2007 Executive Physical, such services to be performed in 2008
for the 2007 tax year.  Also, you will be entitled to exercise the stock
options and restricted share units previously granted to you in accordance with
the terms of the 2003 Long-Term Incentive and Equity Compensation Plan ("Stock
Option Plans").<F2>  Your participation in the Unisys Short-Term and Long-Term
Disability Plans, the Executive Death Benefit Only Program, the Personal
Liability Umbrella Insurance, and the 2005 Deferred Compensation Plan will
terminate on the Departure Date.

3.    You will be eligible to participate in the Right Associates Executive
Outplacement Program for six months.  We have made the necessary arrangements
for you and you should contact Mr. James Clontz @ 717.290.7050 to begin the
outplacement process no later than February 15, 2008.  As you know, you have a
duty to mitigate the termination payments provided hereunder and you agree to
exercise your best efforts toward obtaining new employment.  This provision is
a material condition of this agreement.

4.    In the event that you remain unemployed on June 30, 2008, Unisys will
continue your employment under the terms described herein until up to October
15, 2008, in 30 day increments, or until you obtain suitable, full-time
employment, or cease actively seeking employment, whichever first occurs.  You
should call me at least two weeks in advance to request each one of these
extensions.

5.    You recognize that this Agreement is in the form of a personal services
contract that cannot be assigned.  Accordingly, the payments and benefits
provided to you during the Continuation Period are not susceptible to descent
 or devise to your heirs or successors, except as may be provided by the terms
of the applicable plan documents.

6.    As an additional condition of your continued employment, you specifically
agree that you will conduct yourself in a manner consistent with Unisys work
rules, Code of Ethical Conduct and the highest professional standards. Both
parties agree that neither party will negatively comment about the other,
publicly or privately, about you or, in the case of Unisys (or its subsidiaries
or affiliates), about any of its products, services or other businesses, its
present or past Board of Directors, its officers, or employees, except that you
may give truthful testimony before a court or governmental agency, if duly
subpoenaed to testify.

7.    You agree that the meaning, effect and terms of this Letter Agreement,
Release and Waiver of Claims have been fully explained to you to your
satisfaction and that you understand that this Letter Agreement, Release and
Waiver of Claims settles, bars, and waives any and all Claims (as defined
below) that you have or could possibly have against, among others, Unisys and
any of its employees, agents or assigns as of the date of this Letter
Agreement, Release and Waiver of Claims.

8.    You have up to twenty-one (21) days from receipt of this Letter
Agreement, Release and Waiver of Claims to decide whether to agree to it.  We
advise you to consult with an attorney of your choice, and at your cost, if you
so desire.

9.    You have seven (7) days from the day you sign this Letter Agreement,
Release and Waiver of Claims to revoke your acceptance of it, and the terms and
conditions of this Letter Agreement, Release and Waiver of Claims shall not
become effective or enforceable until this revocation period has expired.

10.   Notwithstanding any provision of this Agreement to the contrary, Unisys
shall administer this Agreement in a manner that is consistent with the
requirements of Section 409A of the Internal Revenue Code of 1986, as amended.

In consideration for the foregoing promises, which you acknowledge are adequate
and satisfactory to you, and intending to be legally bound, you knowingly and
voluntarily agree as follows:

A.    You agree to release and forever discharge Unisys Corporation and its
parents, subsidiaries, affiliates and associated benefit and compensation
plans, and its and their officers, directors, employees and agents, as well as
all predecessors, successors and assigns, heirs, executors, fiduciaries,
trustees, attorneys, and administrators of the foregoing, (collectively,
"Releasees") from any and all causes of action, suits, debts, claims and
demands in law or in equity (collectively, "Claims") which you have ever had,
now have or hereafter may have or which your heirs, executors or administrators
may have, by reason of any matter, cause, or thing whatsoever at any time in
the past up to the date of your signature below, and particularly but without
limitation, any Claims arising from or relating in any way to your employment
relationship with Unisys or the termination thereof, including but not limited
to, any Claims for alleged violations of Title VII of the Civil Rights Act of
1964, 42 U.S.C. 2000e et seq., as amended, the Civil Rights Act of 1866, 42
U.S.C. 1981, as amended (including, but not limited to, 42 U.S.C. 1981a), the
Americans with Disabilities Act of 1990, 42 U.S.C. 12101 et seq., as amended,
the Age Discrimination in Employment Act, 29 U.S.C. 621 et seq., as amended,
the Federal Health Insurance Portability and Accountability Act of 1996, as
amended, the Employee Retirement Income Security Act of 1974, 29 U.S.C. 1001 et
seq., as amended, the Family Medical Leave Act, 29 U.S.C. 2601 et seq., as
amended, as well as any Claims for breach of any employment contract or
agreement (written, oral, or implied), wrongful discharge, breach of the
covenant of good faith and fair dealing, promissory and/or equitable estoppel,
tort claims of any nature, and any Claims which may have been asserted under
the common law or any other federal, state or local law, as well as all claims
for counsel fees and costs.  Provided, however, that this provision ("Release")
shall not discharge in any way your right to contest any claimed breach of this
Letter Agreement, Release and Waiver of Claims.  Provided further that this
Release shall not apply to any Claims that by law may not be waived or released
or for which any waiver or release is null and void.

B.   You further agree and covenant that neither you, nor any person,
organization, or other entity on your behalf, will file, charge, claim, sue, or
cause or permit to be filed, charged, or claimed, any civil action, suit, or
legal proceeding seeking any type of personal relief, or share in any remedy
against any of the Releasees, involving any matter occurring at any time in the
past up to the date of your signature on this Letter Agreement, Release and
Waiver of Claims, or involving any continuing effects of any actions or
practices which may have arisen or occurred on or prior to the date of your
signature on this Letter Agreement, Release and Waiver of Claims.

C.   You further agree that Unisys Corporation and all other Releasees have
satisfied in full all obligations they had from the first date of your
association with any of them through the date of your signature below regarding
your wages, bonuses, commissions, or other compensation of any kind (including,
but not limited to, salaries, stock options, benefits, pensions, vacations,
overtime, expense reimbursements, sick and personal days, and relocation
expenses).  Provided, however, that this provision shall not discharge in any
way your right to receive a reimbursement of business expenses from American
Express.  A final reconciliation of your business expense account will be
completed in March and the ending balance, if any, will be distributed to you
by March 31, 2008.

D.   You also agree that as of the date of your signature below, Unisys
Corporation and all other Releasees have satisfied in full all obligations they
ever had regarding leaves of absence and other time off of any kind (including,
but not limited to, short-term disability leave, family medical leave, military
leave, vacations, meal and rest periods, sick and personal days, and personal
leave), and that you have not suffered any adverse employment action as a
result of seeking or taking any such leave of absence or time off.

E.   The parties agree that they will keep the contents of this Agreement and
all discussions leading up to it as confidential.  The parties agree that they
can disclose that this agreement exists and can discuss the general contents of
the agreement but will not disclose specifics of the agreement to any third
party, except as may be required by law.  You are permitted, however, to
discuss the full terms of this Agreement with your family, attorney and
financial advisor.

F.   You understand and agree that neither this Letter Agreement, Release and
Waiver of Claims, nor the furnishing of the consideration for the Release, nor
the negotiations leading up to this Letter Agreement, Release and Waiver of
Claims shall be deemed or construed at any time for any purpose as an admission
by Unisys of liability or responsibility for any wrongdoing of any kind.

G.   You acknowledge that you have previously signed an Employee Proprietary
Information, Invention and Non-Competition Agreement, and you understand that
your duties and obligations under that Agreement continue beyond your
employment termination.  Without prejudice to the Employee Proprietary
Information, Invention and Non-Competition Agreement, any Stock Option
Agreements and any Restricted Stock Unit Agreements which you previously
signed, you agree to the following Confidentiality Provisions:

1.   You acknowledge that, by reason of the position which you held within
Unisys that you have become familiar with highly confidential and/or
proprietary information relating to the business of Unisys such as various
customer lists, sales and marketing strategies and plans, bids, projections,
costs, financial data, personnel information developments, improvements,
processes, methods, tools and customer relationships.  You further recognize
that the business of Unisys is highly competitive, and that Unisys has a
legitimate business interest in preserving the highly unique and specialized
skills that you have developed, as well as any and all trade secrets and other
highly confidential and/or proprietary information that you may acquire from
them, which are essential to the continued success of Unisys, and that Unisys
will suffer irreparable harm should such skills or confidential information be
utilized by a competitor. You further acknowledge that all such confidential
and/or proprietary information and trade secrets acquired through your
employment are owned and shall continue to be owned by Unisys.

2.   You also agree that you will not, at any time, whether during your term of
employment or thereafter, disclose to any unauthorized person, firm or
corporation any information acquired by you in confidence through your
employment with Unisys, it being understood that all such confidential and/or
proprietary information constitutes trade secrets that are material to the
successful conduct of Unisys and belong exclusively to Unisys.  By way of
example and not limitation, such confidential and/or proprietary information
and trade secrets include any and all information, not otherwise available to
the public, concerning: (a) marketing plans, business plans, strategies,
forecasts, unpublished financial statements, budgets, bids, projections and
costs; (b) personnel information; (c) customer lists, customer and supplier
transaction histories, identities, contacts, volumes, characteristics,
agreements and prices; (d) information regarding promotional, operational,
program management, sales, marketing, research and development techniques,
methods and reports and (e) other trade secrets.  You specifically acknowledge
that such confidential and/or proprietary information and trade secrets have
commercial value to Unisys, the unauthorized disclosure of which could be
detrimental to the interests of Unisys, whether or not such information is
specifically identified as "Confidential" and/or "Proprietary" information by
Unisys.  Provided, however, that the restrictions of this paragraph shall not
extend to any information or materials that are either known to the public or
that can be derived, compiled or learned by a third party without significant
effort or expense.

3.   You further acknowledge that the restrictions contained in these
Confidentiality Provisions, in view of the nature of the work performed by
Unisys, are reasonable and necessary in order to protect the legitimate
interests of Unisys, and that any violation thereof may result in irreparable
injuries to Unisys, and you therefore acknowledge that, in the event of any
violation of any of these restrictions, Unisys shall be entitled to obtain from
any court of competent jurisdiction preliminary and permanent injunctive relief
as well as damages and an equitable accounting of all earnings, profits and
other benefits arising from such violation, which rights shall be cumulative
and in addition to any other rights or remedies to which Unisys may be entitled.

H.   You represent that you have returned or will on or before the end of the
Continuation Period return to Unisys all company information including and
without limitation, company-related reports, files, memoranda, records,
software, lap top computers, credit cards, computer access codes, disk and
instructional manuals, I.D. badges, keys, library books, and other physical or
personal property which you have received or prepared or helped prepare in
connection with your employment with Unisys; and you have not retained and will
not retain any copies, duplicates or reproductions or excerpts thereof.

I.   Except for the provisions of the Employee Proprietary Information,
Invention and Non-Competition Agreement, any Stock Option Agreements, and any
Restricted Stock Unit Agreements, whose terms survive the termination of your
employment, this Letter Agreement, Release and Waiver of Claims supersedes all
prior agreements, whether written or oral, between you and Unisys relating to
your employment, the termination of your employment and the additional matters
provided for herein.  No provision of this Letter Agreement, Release and Waiver
of Claims may be modified, waived or discharged unless such waiver,
modification or discharge is agreed to in writing and signed by you and an
authorized representative of Unisys.  The validity, interpretation,
construction and performance of this Letter Agreement, Release and Waiver of
Claims shall be governed by the laws of the Commonwealth of Pennsylvania
without giving effect to the provisions thereof relating to conflicts of laws.
It is further agreed that if, for any reason, any part or provision hereof is
determined to be illegal, void, or unenforceable, the remainder shall remain
binding and in effect.

J.   In the event that Unisys is contacted by any of your prospective
employers, we will provide them with a positive reference in an agreed upon
form.  You agree to direct any such prospective employers to me, at extension
5221, and I will provide them with this reference letter.

K.   If in connection with any contemplated or filed litigation involving
Unisys, you are called upon to assist Unisys; to provide evidence; or to
testify in any manner, you agree to cooperate fully with Unisys.  If requested
by Unisys, you agree to be present and participate in the trial of any such
matter.  You will, to the extent permitted by applicable law, be reimbursed for
your reasonable costs and expenses, including lost salary.  You will to the
extent permitted by law, be reimbursed for your attorneys' fees.  In addition,
if you are sued or threatened with suit because of any lawful conduct,
undertaken within your course and scope of employment, Unisys will defend and
hold you harmless from any such claims, to the extent permitted by the Articles
of Incorporation and the bylaws of Unisys and Delaware Corporation Law.

If you agree to the terms set forth above, please sign and date this Letter
Agreement, Release and Waiver of Claims in the space provided below and return
it to me.  Should you have any further questions regarding this matter, please
do not hesitate to contact me.

Yours truly,

Patricia A. Bradford
Senior Vice President
Worldwide Human Resources and Training

Agreed: ____________________________       Date:  _____________
         Brian T. Maloney

<FN>
<F1> For purposes of this Agreement, a consulting arrangement that provides for
employment for less than 20 hours per week and for a term of not more than 6
weeks will not be considered full-time employment.

<F2> Please consult your Plan documents for rules governing the exercise of
your stock options and restricted share units.winland2008equityincentplan.htm

    Exhibit
10.1

    

    WINLAND
ELECTRONICS, INC.

    2008
EQUITY INCENTIVE PLAN

    

    SECTION
1.

    DEFINITIONS

    

    As used herein, the following terms
shall have the meanings indicated below:

    

    (a)           “Administrator”
shall mean the Board or the Committee, as the case may be.

    

    (b)           “Affiliate”
shall mean a Parent or Subsidiary of the Company.

    

    (c)           “Award”
shall mean any grant of an Option, Restricted Stock Award, Stock Appreciation
Right or Performance Award.

    

    (d)           “Committee”
shall mean a Committee of two or more directors who shall be appointed by and
serve at the pleasure of the Board.  If the Company’s securities are
registered pursuant to Section 12 of the Securities Exchange Act of 1934, as
amended, then, to the extent necessary for compliance with Rule 16b-3, or any
successor provision, each of the members of the Committee shall be a
“non-employee director.”  Solely for purposes of this Section 1(a),
“non-employee director” shall have the same meaning as set forth in Rule 16b-3,
or any successor provision, as then in effect, of the General Rules and
Regulations under the Securities Exchange Act of 1934, as
amended.  Further, to the extent necessary for compliance with the
limitations set forth in Internal Revenue Code Section 162(m), each of the
members of the Committee shall be an “outside director” within the meaning of
Code Section 162(m) and the regulations issued thereunder.

    

    (e)           The
“Company” shall mean Winland Electronics, Inc., a Minnesota
corporation.

    

    (f)           “Fair
Market Value” as of any date shall mean (i) if such stock is listed on the
American Stock Exchange, or any other established stock exchange, the price of
such stock at the close of the regular trading session of such market or
exchange on such date, as reported by The Wall Street
Journal or a comparable reporting service, or, if no sale of such stock
shall have occurred on such date, on the next preceding date on which there was
a sale of stock; (ii) if such stock is not so listed on the American Stock
Exchange, or any other established stock exchange, the average of the closing
“bid” and “asked” prices quoted by the OTC Bulletin Board, the pink sheets, or
any comparable reporting service on such date or, if there are no quoted “bid”
and “asked” prices on such date, on the next preceding date for which there are
such quotes; or (iii) if such stock is not publicly traded as of such date, the
per share value as determined by the Board, or the Committee, in its sole
discretion by applying principles of valuation with respect to the Company’s
Common Stock.

    

    (g)           The
“Internal Revenue Code” is the Internal Revenue Code of 1986, as amended from
time to time.

    

    (h)           “Non-Employee
Director” shall mean members of the Board who are not employees of the Company
or any subsidiary.

    

    (i)           “Option”
means an incentive stock option or nonqualified stock option granted pursuant to
the Plan.

    

    (j)           “Option
Stock,” “Stock” or “Common Stock” shall mean Common Stock of the Company
(subject to adjustment as described in Section 14 reserved for Options,
Restricted Stock Awards, Stock Appreciation Rights and Performance Shares
pursuant to this Plan.

    

    (k)           “Parent”
shall mean any corporation which owns, directly or indirectly in an unbroken
chain, fifty percent (50%) or more of the total voting power of the Company’s
outstanding stock.

    

    (l)           The
“Participant” means a key employee of the Company or any Subsidiary to whom an
incentive stock option has been granted pursuant to Section 9; a consultant or
advisor to, or director (including a Non-Employee Director), key employee or
officer, of the Company or any Subsidiary to whom a nonqualified stock option
has been granted pursuant to Section 10; a Non-Employee Director to whom a
nonqualified stock option has been granted pursuant to Section 14; or a
consultant or advisor to, or director, key employee or officer, of the Company
or any Subsidiary to whom a Restricted Stock Award has been granted pursuant to
Section 11; or a consultant or advisor to, or director, key employee or officer,
of the Company or any Subsidiary to whom a Performance Award has been granted
pursuant to Section 12; or a consultant or advisor to, or director, key employee
or officer, of the Company or any Subsidiary to whom a Stock Appreciation Right
has been granted pursuant to Section 13.

    

    (m)           “Performance
Award” shall mean any Performance Shares or Performance Units granted pursuant
to Section 12 hereof.

    

    (n)           “Performance
Objective(s)” shall mean one or more performance objectives established by the
Administrator, in its sole discretion, for Awards under this
Plan.  For any Awards that are intended to qualify as
“performance-based compensation” under the Internal Revenue Code Section 162(m),
the Performance Objectives shall be limited to any one, or a combination of, (i)
revenue, (ii) net income, (iii) earnings per share, (iv) return on equity, (v)
return on assets, (vi) increase in revenue, (vii) increase in share price or
earnings, (viii) return on investment, or (ix) increase in market share, in all
cases including, if selected by the Administrator, threshold, target and maximum
levels.

    

    (o)           “Performance
Period”  shall mean the period, established at the time any
Performance Award is granted or at any time thereafter, during which any
Performance Objectives specified by the Administrator with respect to such
Performance Award are to be measured.

    

    (p)           “Performance
Share” shall mean any grant pursuant to Section 12 hereof of an Award, which
value, if any, shall be paid to a Participant by delivery of shares of Common
Stock of the Company upon achievement of such Performance Objectives during the
Performance Period as the Administrator shall establish at the time of such
grant or thereafter.

    

    (q)           “Performance
Unit” shall mean any grant pursuant to Section 12 hereof of an Award, which
value, if any, shall be paid to a Participant by delivery of cash upon
achievement of such Performance Objectives during the Performance Period as the
Administrator shall establish at the time of such grant or
thereafter.

    

    (r)           The
“Plan” means the Winland Electronics, Inc. 2008 Equity Incentive Plan, as
amended hereafter from time to time, including the form of Agreements as they
may be modified by the Administrator from time to time.

    

    (s)           “Restricted
Stock Award” shall mean any grant of restricted shares of Common Stock of the
Company pursuant to Section 11 hereof.

    

    (t)           “Stock
Appreciation Right” shall mean a grant pursuant to Section 13
hereof.

    

    (u)           A
“Subsidiary” shall mean any corporation of which fifty percent (50%) or more of
the total voting power of the Company’s outstanding Stock is owned, directly or
indirectly in an unbroken chain, by the Company.

    

    SECTION
2.

    PURPOSE

    

    The purpose of the Plan is to promote
the success of the Company and its Subsidiaries by facilitating the employment
and retention of competent personnel and by furnishing incentive to officers,
directors, employees, consultants, and advisors upon whose efforts the success
of the Company and its Subsidiaries will depend to a large degree.

    

    It is the intention of the Company to
carry out the Plan through the granting of Options which will qualify as
“incentive stock options” under the provisions of Section 422 of the Internal
Revenue Code, or any successor provision, pursuant to Section 9 of this Plan,
through the granting of “nonqualified stock options” pursuant to Sections 10 and
14 of this Plan, through the granting of Restricted Stock Awards pursuant to
Section 11 of this Plan, through the granting of Performance Awards pursuant to
Section 12 of this Plan and through the granting of Stock Appreciation Rights
pursuant to Section 13 of this Plan.  Adoption of this Plan shall be
and is expressly subject to the condition of approval by the shareholders of the
Company within twelve (12) months before or after the adoption of the Plan by
the Board of Directors.  In no event shall any Options, Restricted
Stock Awards, Performance Awards or Stock Appreciation Rights be granted prior
to the date this Plan is approved by the shareholders of the
Company.

    

    SECTION
3.

    EFFECTIVE DATE OF
PLAN

    

    The Plan shall be effective as of the
date of adoption by the Board of Directors, subject to approval by the
shareholders of the Company as required in Section 2.

    

    SECTION
4.

    ADMINISTRATION

    

    The Plan shall be administered by the
Board of Directors of the Company (hereinafter referred to as the “Board”) or by
a Committee which may be appointed by the Board from time to time to administer
the Plan (hereinafter collectively referred to as the
“Administrator”).  Except as otherwise provided herein, the
Administrator shall have all of the powers vested in it under the provisions of
the Plan, including but not limited to exclusive authority to determine, in its
sole discretion, whether an Award shall be granted; the individuals to whom, and
the time or times at which, such Awards shall be granted; the number of shares
subject to each such Award, the Option price and the performance criteria, if
any, and any other terms and conditions of each Award.  The
Administrator shall have full power and authority to administer and interpret
the Plan, to make and amend rules, regulations and guidelines for administering
the Plan, to prescribe the form and conditions of the respective agreements
evidencing each Award (which may vary from Participant to Participant), and to
make all other determinations necessary or advisable for the administration of
the Plan.  The Administrator’s interpretation of the Plan, and all
actions taken and determinations made by the Administrator pursuant to the power
vested in it hereunder, shall be conclusive and binding on all parties
concerned.

    

    No member of the Board or the Committee
shall be liable for any action taken or determination made in good faith in
connection with the administration of the Plan.  In the event the
Board appoints a Committee as provided hereunder, any action of the Committee
with respect to the administration of the Plan shall be taken pursuant to a
majority vote of the Committee members or pursuant to the written resolution of
all Committee members.

    

    SECTION
5.

    PARTICIPANTS

    

    The Administrator shall from time to
time, at its discretion and without approval of the shareholders, designate
those employees, officers, directors, consultants, and advisors of the Company
or of any Subsidiary to whom Awards shall be granted under this Plan; provided,
however, that consultants or advisors shall not be eligible to receive Awards
hereunder unless such consultant or advisor renders bona fide services to the
Company or Subsidiary and such services are not in connection with the offer or
sale of securities in a capital raising transaction and do not directly or
indirectly promote or maintain a market for the Company’s
securities.  The Administrator shall, from time to time, at its
discretion and without approval of the shareholders, designate those employees
of the Company or any Subsidiary to whom Awards shall be granted under this
Plan; provided, however, that Non-Employee Directors will be granted
nonqualified stock options pursuant to Section 14 of the Plan without any
further action by the Administrator.  The Administrator may grant
additional Awards under this Plan to some or all Participants then holding
Awards, or may grant Awards solely or partially to new Participants. In
designating Participants, the Administrator shall also determine the number of
shares subject to each Award granted to each Participant and, with respect to
Performance Awards, the performance criteria applicable to each Participant. The
Administrator may from time to time designate individuals as being ineligible to
participate in the Plan.

    

    Notwithstanding anything in the Plan to
the contrary, for any Awards granted under the Plan that are intended to qualify
as “performance-based compensation” under Internal Revenue Code Section 162(m),
the following limits will apply:

    

    (a)           In
no event shall a Participant be granted Options or Stock Appreciation Rights
during any fiscal year of the Company covering in the aggregate more than 10% of
the total outstanding Stock of the Company, subject to adjustment as provided in
Section 15; provided, however, that a share of Stock subject to a Stock
Appreciation Right that is granted in tandem with an Option shall count as one
share against this limitation.

    

    (b)           In
no event shall a Participant be granted Restricted Stock Awards or, to the
extent payable in or measured by the value of shares of Stock during any fiscal
year of the Company covering in the aggregate more than 10% of the total
outstanding stock of the Company, subject to adjustment as provided in Section
15.

    

    (c)           To
the extent payable in or measured by the value of shares of Stock, in no event
shall a Participant be granted Performance Awards during any fiscal year of the
Company covering in the aggregate more than 10% of the total outstanding stock
of the Company, subject to adjustment as provided in Section 15.

    

    SECTION
6.

    STOCK

    

    The Stock to be optioned under this
Plan shall consist of authorized but unissued shares of Common
Stock.  300,000 shares of Stock shall be reserved and available for
Awards under the Plan; provided, however, that the total number of shares of
Stock reserved for Awards under this Plan shall be subject to adjustment as
provided in Section 15 of the Plan.  In the event that any outstanding
Option, Stock Appreciation Right, Performance Share Award or Restricted Stock
Award under the Plan for any reason expires or is terminated prior to the
exercise of the Option or Stock Appreciation Right, prior to the achievement of
the performance criteria under the Performance Share Award, or prior to the
lapsing of the risks of forfeiture on the Restricted Stock Award, the shares of
Stock allocable to the unexercised portion of such Option or Stock Appreciation
Right, to the unearned portion of the Performance Share Award or to the
forfeited portion of the Restricted Stock Award shall continue to be reserved
for Options, Stock Appreciation Rights, Performance Share Awards and Restricted
Stock Awards under the Plan and may be optioned or awarded
hereunder.

    

    SECTION
7.

    DURATION OF
PLAN

    

    Incentive stock options may be granted
pursuant to the Plan from time to time during a period of ten (10) years from
the effective date as defined in Section 3.  Other Awards may be
granted pursuant to the Plan from time to time after the effective date of the
Plan and until the Plan is discontinued or terminated by the Board.

    

    SECTION
8.

    PAYMENT

    

    Participants may pay for shares upon
exercise of Options granted pursuant to this Plan (i) in cash, or with a
personal check or certified check or, (ii) by the transfer from the Participant
to the Company of previously acquired shares of Common Stock, (iii) through the
withholding of shares of Stock from the number of shares otherwise issuable upon
the exercise of the Option (e.g., a net share settlement), or (iv) by a
combination thereof.  Any stock tendered as part of such payment shall
be valued at such stock’s then Fair Market Value, or such other form of payment
as may be authorized by the Administrator.  In the event the Optionee
elects to pay the exercise price in whole or in part with previously acquired
shares of Common Stock or through a net share settlement, the Fair Market Value
of the shares of Stock delivered or withheld shall equal the total exercise
price for the shares being purchased in such manner.  The
Administrator may, in its sole discretion, limit the forms of payment available
to the Participant and may exercise such discretion any time prior to the
termination of the Option granted to the Participant or upon any exercise of the
Option by the Participant.  “Previously-owned shares” means shares of
the Company’s Common Stock which the Participant has owned for at least six (6)
months prior to the exercise of the Option, or for such other period of time, if
any, as may be required by generally accepted accounting
principles.

    

    With respect to payment in the form of
Common Stock of the Company, the Administrator may require advance approval or
adopt such rules as it deems necessary to assure compliance with Rule 16b-3, or
any successor provision, as then in effect, of the General Rules and Regulations
under the Securities Exchange Act of 1934, if applicable.

    

    

    SECTION
9.

    TERMS AND CONDITIONS OF
INCENTIVE STOCK OPTIONS

    

    Each incentive stock option granted
pursuant to this Section 9 shall be evidenced by a written incentive stock
option agreement (the “Option Agreement”).  The Option Agreement shall
be in such form as may be approved from time to time by the Administrator and
may vary from Participant to Participant; provided, however, that each
Participant and each Option Agreement shall comply with and be subject to the
following terms and conditions:

    

    (a)           Number of Shares and Option
Price.  The Option Agreement shall state the total number of
shares covered by the incentive stock option.  Except as permitted by
Section 424(a) of the Internal Revenue Code, or any successor provision, the
option price per share shall not be less than one hundred percent (100%) of the
per share Fair Market Value of the Company’s Common Stock on the date the
Administrator grants the Option; provided, however, that if a Participant owns
stock possessing more than ten percent (10%) of the total combined voting power
of all classes of stock of the Company or of its Parent or any Subsidiary, the
option price per share of an incentive stock option granted to such Participant
shall not be less than one hundred ten percent (110%) of the per share Fair
Market Value of the Company’s Common Stock on the date of the grant of the
Option.  The Administrator shall have full authority and discretion in
establishing the option price and shall be fully protected in so
doing.

    

    (b)           Term and Exercisability of
Incentive Stock Option.  The term during which any incentive
stock option granted under the Plan may be exercised shall be established in
each case by the Administrator.  Except as permitted by Internal
Revenue Code Section 424(a), in no event shall any incentive stock option be
exercisable during a term of more than ten (10) years after the date on which it
is granted; provided, however, that if a Participant owns stock possessing more
than ten percent (10%) of the total combined voting power of all classes of
stock of the Company or of its Parent or any Subsidiary, the incentive stock
option granted to such Participant shall be exercisable during a term of not
more than five (5) years after the date on which it is granted.

    

    The Option Agreement shall state when
the incentive stock option becomes exercisable and shall also state the maximum
term during which the Option may be exercised.  In the event an
incentive stock option is exercisable immediately, the manner of exercise of the
Option in the event it is not exercised in full immediately shall be specified
in the Option Agreement.  The Administrator may accelerate the
exercisability of any incentive stock option granted hereunder which is not
immediately exercisable as of the date of grant.

    

    (c)           Nontransferability.  No
incentive stock option shall be transferable, in whole or in part, by the
Participant other than by will or by the laws of descent and
distribution.  During the Participant’s lifetime, the incentive stock
option may be exercised only by the Participant.  If the Participant
shall attempt any transfer of any incentive stock option granted under the Plan
during the Participant’s lifetime, such transfer shall be void and the incentive
stock option, to the extent not fully exercised, shall terminate.

    

    (d)           No Rights as
Shareholder.  A Participant (or the Participant’s successor or
successors) shall have no rights as a shareholder with respect to any shares
covered by an incentive stock option until the date of the issuance of a stock
certificate evidencing such shares.  No adjustment shall be made for
dividends (ordinary or extraordinary, whether in cash, securities or other
property), distributions or other rights for which the record date is prior to
the date such stock certificate is actually issued (except as otherwise provided
in Section 15 of the Plan).

    

    (e)           Withholding.  The
Company or its Affiliate shall be entitled to withhold and deduct from future
wages of the Participant all legally required amounts necessary to satisfy any
and all withholding and employment-related taxes attributable to the
Participant’s exercise of an incentive stock option or a “disqualifying
disposition” of shares acquired through the exercise of an incentive stock
option as defined in Code Section 421(b).  In the event the
Participant is required under the Option Agreement to pay the Company or its
Affiliate, or make arrangements satisfactory to the Company or its Affiliate
respecting payment of, such withholding and employment-related taxes, the
Administrator may, in its discretion and pursuant to such rules as it may adopt,
permit the Participant to satisfy such obligation, in whole or in part, by
delivering shares of the Company’s Common Stock or by electing to have the
Company or its Affiliate withhold shares of Common Stock otherwise issuable to
the Participant as a result of the exercise of the incentive stock
option.  Such shares shall have a Fair Market Value equal to the
minimum required tax withholding, based on the minimum statutory withholding
rates for federal and state tax purposes, including payroll taxes, that are
applicable to the supplemental income resulting from such exercise or
disqualifying disposition.  In no event may Participant deliver
shares, nor may the Company or its Affiliate withhold shares having a Fair
Market Value in excess of such statutory minimum required tax
withholding.  The Participant’s election to have shares withheld for
this purpose shall be made on or before the later of (i) the date the incentive
stock option is exercised or, the date of the disqualifying disposition, as the
case may be, or (ii) the date that the amount of tax to be withheld is
determined under applicable tax law.  Such election shall be approved
by the Administrator and otherwise comply with such rules as the Administrator
may adopt to assure compliance with Rule 16b-3, or any successor provision, as
then in effect, of the General Rules and Regulations under the Securities
Exchange Act of 1934, if applicable.

    

    (f)           Other
Provisions.  The Option Agreement authorized under this Section
9 shall contain such other provisions as the Administrator shall deem
advisable.  Any such Option Agreement shall contain such limitations
and restrictions upon the exercise of the Option as shall be necessary to ensure
that such Option will be considered an “incentive stock option” as defined in
Section 422 of the Internal Revenue Code or to conform to any change
therein.

    

    SECTION
10.

    TERMS AND CONDITIONS OF
NONQUALIFIED STOCK OPTIONS

    

    Each nonqualified stock option granted
pursuant to this Section 10 shall be evidenced by a written nonqualified stock
option agreement (the “Option Agreement”).  The Option Agreement shall
be in such form as may be approved from time to time by the Administrator and
may vary from Participant to Participant; provided, however, that each
Participant and each Option Agreement shall comply with and be subject to the
following terms and conditions:

    

    (a)           Number of Shares and Option
Price.  The Option Agreement shall state the total number of
shares covered by the nonqualified stock option.  Unless otherwise
determined by the Administrator, the option price per share shall be one hundred
percent (100%) of the per share Fair Market Value of the Company’s Common Stock
on the date the Administrator grants the Option.

    

    (b)           Term and Exercisability of
Nonqualified Stock Option.  The term during which any
nonqualified stock option granted under the Plan may be exercised shall be
established in each case by the Administrator.  The Option Agreement
shall state when the nonqualified stock option becomes exercisable and shall
also state the maximum term during which such option may be
exercised.  In the event a nonqualified stock option is exercisable
immediately, the manner of exercise of the Option in the event it is not
exercised in full immediately shall be specified in the Option
Agreement.   The Administrator may accelerate the exercisability
of any nonqualified stock option granted hereunder which is not immediately
exercisable as of the date of grant.

    

    (c)           Transferability.  A
nonqualified stock option shall be transferable, in whole or in part, by the
Participant by will or by the laws of descent and distribution.  In
addition, the Administrator may, in its sole discretion, permit the Participant
to transfer any or all nonqualified stock options to any member of the
Participant’s “immediate family” as such term is defined in Rule 16a-1(e)
promulgated under the Securities Exchange Act of 1934, or any successor
provision, or to one or more trusts whose beneficiaries are members of such
Participant’s “immediate family” or partnerships in which such family members
are the only partners; provided, however, that the Participant cannot receive
any consideration for the transfer and such transferred nonqualified stock
option shall continue to be subject to the same terms and conditions as were
applicable to such nonqualified stock option immediately prior to its
transfer.

    

    (d)           No Rights as
Shareholder.  A Participant (or the Participant’s successor or
successors) shall have no rights as a shareholder with respect to any shares
covered by a nonqualified stock option until the date of the issuance of a stock
certificate evidencing such shares.  No adjustment shall be made for
dividends (ordinary or extraordinary, whether in cash, securities or other
property), distributions or other rights for which the record date is prior to
the date such stock certificate is actually issued (except as otherwise provided
in Section 15 of the Plan).

    

    (e)           Withholding.  The
Company or its Affiliate shall be entitled to withhold and deduct from future
wages of the Participant all legally required amounts necessary to satisfy any
and all withholding and employment-related taxes attributable to the
Participant’s exercise of a nonqualified stock option.  In the event
the Participant is required under the Option Agreement to pay the Company or its
Affiliate, or make arrangements satisfactory to the Company or its Affiliate
respecting payment of, such withholding and employment-related taxes, the
Administrator may, in its discretion and pursuant to such rules as it may adopt,
permit the Participant to satisfy such obligation, in whole or in part, by
delivering shares of the Company’s Common Stock or by electing to have the
Company or its Affiliate withhold shares of Common Stock otherwise issuable to
the Participant as a result of the exercise of the nonqualified stock
option.  Such shares shall have a Fair Market Value equal to the
minimum required tax withholding, based on the minimum statutory withholding
rates for federal and state tax purposes, including payroll taxes, that are
applicable to the supplemental income resulting from such
exercise.  In no event may the Participant deliver shares, nor may the
Company or its Affiliate withhold shares having a Fair Market Value in excess of
such statutory minimum required tax withholding.  The Participant’s
election to deliver shares or to have shares withheld for this purpose shall be
made on or before the later of (i) the date the nonqualified stock option is
exercised, or (ii) the date that the amount of tax to be withheld is determined
under applicable tax law.  Such election shall be approved by the
Administrator and otherwise comply with such rules as the Administrator may
adopt to assure compliance with Rule 16b-3, or any successor provision, as then
in effect, of the General Rules and Regulations under the Securities Exchange
Act of 1934, if applicable.

    

    (f)           Other
Provisions.  The Option Agreement authorized under this Section
10 shall contain such other provisions as the Administrator shall deem
advisable.

    

    SECTION
11.

    RESTRICTED STOCK
AWARDS

    

    Each Restricted Stock Award granted
pursuant to this Section 11 shall be evidenced by a written restricted stock
agreement (the “Restricted Stock Agreement”).  The Restricted Stock
Agreement shall be in such form as may be approved from time to time by the
Administrator and may vary from Participant to Participant; provided, however,
that each Participant and each Restricted Stock Agreement shall comply with and
be subject to the following terms and conditions:

    

    (a)           Number of
Shares.  The Restricted Stock Agreement shall state the total
number of shares of Stock covered by the Restricted Stock Award.

    

    (b)           Risks of
Forfeiture.  The Restricted Stock Agreement shall set forth the
risks of forfeiture, if any, including risks of forfeiture based on Performance
Objectives, which shall apply to the shares of Stock covered by the Restricted
Stock Award, and shall specify the manner in which such risks of forfeiture
shall lapse.  The Administrator may, in its sole discretion, modify
the manner in which such risks of forfeiture shall lapse but only with respect
to those shares of Stock which are restricted as of the effective date of the
modification.

    

    (c)           Issuance of Restricted
Shares.  The Company shall cause to be issued one or more stock
certificates representing such shares of Stock in the Participant’s name, and
shall hold each such certificate until such time as the risk of forfeiture and
other transfer restrictions set forth in the Participant’s Restricted Stock
Agreement have lapsed with respect to the shares represented by the
certificate.  The Company may place a legend on such certificates
describing the risks of forfeiture and other transfer restrictions set forth in
the Participant’s Restricted Stock Agreement and providing for the cancellation
of such certificates if the shares of Stock subject to the Restricted Stock
Award are forfeited.

    

    (d)           Rights as
Shareholder.  Until the risks of forfeiture have lapsed or the
shares subject to such Restricted Stock Award have been forfeited, the
Participant shall be entitled to vote the shares of Stock represented by such
stock certificates and shall receive all dividends attributable to such shares,
but the Participant shall not have any other rights as a shareholder with
respect to such shares.

    

    (e)           Withholding
Taxes.  The Company or its Affiliate shall be entitled to
withhold and deduct from future wages of the Participant all legally required
amounts necessary to satisfy any and all withholding and employment-related
taxes attributable to the Participant’s Restricted Stock Award.  In
the event the Participant is required under the Restricted Stock Agreement to
pay the Company or its Affiliate, or make arrangements satisfactory to the
Company or its Affiliate respecting payment of, such withholding and
employment-related taxes, the Administrator may, in its discretion and pursuant
to such rules as it may adopt, permit the Participant to satisfy such
obligations, in whole or in part, by delivering shares of Common Stock,
including shares of Stock received pursuant to a Restricted Stock Award on which
the risks of forfeiture have lapsed.  Such shares shall have a Fair
Market Value equal to the minimum required tax withholding, based on the minimum
statutory withholding rates for federal and state tax purposes, including
payroll taxes, that are applicable to the supplemental income resulting from the
lapsing of the risks of forfeiture on such Restricted Stock.  In no
event may the Participant deliver shares having a Fair Market Value in excess of
such statutory minimum required tax withholding.  The Participant’s
election to deliver shares of Common Stock for this purpose shall be made on or
before the date that the amount of tax to be withheld is determined under
applicable tax law.  Such election shall be approved by the
Administrator and otherwise comply with such rules as the Administrator may
adopt to assure compliance with Rule 16b-3, or any successor provision, as then
in effect, of the General Rules and Regulations under the Securities Exchange
Act of 1934, if applicable.

    

    (f)           Nontransferability.  No
Restricted Stock Award shall be transferable, in whole or in part, by the
Participant, other than by will or by the laws of descent and distribution,
prior to the date the risks of forfeiture described in the Restricted Stock
Agreement have lapsed.  If the Participant shall attempt any transfer
of any Restricted Stock Award granted under the Plan prior to such date, such
transfer shall be void and the Restricted Stock Award shall
terminate.

    

    (g)           Other
Provisions.  The Restricted Stock Agreement authorized under
this Section 11 shall contain such other provisions as the Administrator shall
deem advisable.

    

    SECTION
12.

    PERFORMANCE
AWARDS

    

    Each Performance Award granted pursuant
to this Section 12 shall be evidenced by a written performance award agreement
(the “Performance Award Agreement”).  The Performance Award Agreement
shall be in such form as may be approved from time to time by the Administrator
and may vary from Participant to Participant; provided, however, that each
Participant and each Performance Award Agreement shall comply with and be
subject to the following terms and conditions:

    

    (a)           Awards.  Performance
Awards in the form of Performance Units or Performance Shares may be granted to
any Participant in the Plan. Performance Units shall consist of monetary awards
which may be earned or become vested in whole or in part if the Company or the
Participant achieves certain Performance Objectives established by the
Administrator over a specified Performance Period.  Performance Shares
shall consist of shares of Stock or other Awards denominated in shares of Stock
that may be earned or become vested in whole or in part if the Company or the
Participant achieves certain Performance Objectives established by the
Administrator over a specified Performance Period.

    

    (b)           Performance Objectives,
Performance Period and Payment.  The Performance Award
Agreement shall set forth:

    

    (i)           the
number of Performance Units or Performance Shares subject to the Performance
Award, and the dollar value of each Performance Unit;

    

    (ii)           one
or more Performance Objectives established by the Administrator;

    

    (iii)           the
Performance Period over which Performance Units or Performance Shares may be
earned or may become vested;

    

    (iv)           the
extent to which partial achievement of the Performance Objectives may result in
a payment or vesting of the Performance Award, as determined by the
Administrator; and

    

    (v)           the
date upon which payment of Performance Units will be made or Performance Shares
will be issued, as the case may be, and the extent to which such payment or the
receipt of such Performance Shares may be deferred.

    

    (c)           Withholding
Taxes.  The Company or its Affiliate shall be entitled to
withhold and deduct from future wages of the Participant all legally required
amounts necessary to satisfy any and all withholding and employment-related
taxes attributable to the Participant’s Performance Award.  In the
event the Participant is required under the Performance Award Agreement to pay
the Company or its Affiliate, or make arrangements satisfactory to the Company
or its Affiliate respecting payment of, such withholding and employment-related
taxes, the Administrator may, in its discretion and pursuant to such rules as it
may adopt, permit the Participant to satisfy such obligations, in whole or in
part, by delivering shares of Common Stock, including shares of Stock received
pursuant to the Performance Award.  Such shares shall have a Fair
Market Value equal to the minimum required tax withholding, based on the minimum
statutory withholding rates for federal and state tax purposes, including
payroll taxes.  In no event may the Participant deliver shares having
a Fair Market Value in excess of such statutory minimum required tax
withholding.  The Participant’s election to deliver shares of Common
Stock for this purpose shall be made on or before the date that the amount of
tax to be withheld is determined under applicable tax law.  Such
election shall be approved by the Administrator and otherwise comply with such
rules as the Administrator may adopt to assure compliance with Rule 16b-3, or
any successor provision, as then in effect, of the General Rules and Regulations
under the Securities Exchange Act of 1934, if applicable.

    

    (d)           Nontransferability.  No
Performance Award shall be transferable, in whole or in part, by the
Participant, other than by will or by the laws of descent and
distribution.  If the Participant shall attempt any transfer of any
Performance Award granted under the Plan, such transfer shall be void and the
Performance Award shall terminate.

    

    (e)           No Rights as
Shareholder.  A Participant (or the Participant’s successor or
successors) shall have no rights as a shareholder with respect to any shares
covered by a Performance Award until the date of the issuance of a stock
certificate evidencing such shares.  No adjustment shall be made for
dividends (ordinary or extraordinary, whether in cash, securities or other
property), distributions or other rights for which the record date is prior to
the date such stock certificate is actually issued (except as otherwise provided
in Section 15 of the Plan).

    

    (f)           Other
Provisions.  The Performance Award Agreement authorized under
this Section 12 shall contain such other provisions as the Administrator shall
deem advisable.

    

    SECTION
13.

    STOCK APPRECIATION
RIGHTS

    

    Each Stock Appreciation Right granted
pursuant to this Section 13 shall be evidenced by a written stock appreciation
right agreement (the “Stock Appreciation Right Agreement”).  The Stock
Appreciation Right Agreement shall be in such form as may be approved from time
to time by the Administrator and may vary from Participant to Participant;
provided, however, that each Participant and each Stock Appreciation Right
Agreement shall comply with and be subject to the following terms and
conditions:

    

    (a)           Awards.  A
Stock Appreciation Right shall entitle the Participant to receive, upon
exercise, cash, shares of Stock, or any combination thereof, having a value
equal to the excess of (i) the Fair Market Value of a specified number of shares
of Stock on the date of such exercise, over (ii) a specified exercise
price.  Unless otherwise determined by the Administrator, the
specified exercise price shall not be less than 100% of the Fair Market Value of
such shares of Stock on the date of grant of the Stock Appreciation
Right.  A Stock Appreciation Right may be granted independent of or in
tandem with a previously or contemporaneously granted Option.

    

    (b)           Term and
Exercisability.  The term during which any Stock Appreciation
Right granted under the Plan may be exercised shall be established in each case
by the Administrator.  The Stock Appreciation Right Agreement shall
state when the Stock Appreciation Right becomes exercisable and shall also state
the maximum term during which such Stock Appreciation Right may be
exercised.  In the event a Stock Appreciation Right is exercisable
immediately, the manner of exercise of such Stock Appreciation Right in the
event it is not exercised in full immediately shall be specified in the Stock
Appreciation Right Agreement.  The Administrator may accelerate the
exercisability of any Stock Appreciation Right granted hereunder which is not
immediately exercisable as of the date of grant.  If a Stock
Appreciation Right is granted in tandem with an Option, the Stock Appreciation
Right Agreement shall set forth the extent to which the exercise of all or a
portion of the Stock Appreciation Right shall cancel a corresponding portion of
the Option, and the extent to which the exercise of all or a portion of the
Option shall cancel a corresponding portion of the Stock Appreciation
Right.

    

    (c)           Withholding
Taxes.  The Company or its Affiliate shall be entitled to
withhold and deduct from future wages of the Participant all legally required
amounts necessary to satisfy any and all withholding and employment-related
taxes attributable to the Participant’s Stock Appreciation Right.  In
the event the Participant is required under the Stock Appreciation Right to pay
the Company or its Affiliate, or make arrangements satisfactory to the Company
or its Affiliate respecting payment of, such withholding and employment-related
taxes, the Administrator may, in its discretion and pursuant to such rules as it
may adopt, permit the Participant to satisfy such obligations, in whole or in
part, by delivering shares of Common Stock or by electing to have the Company
withhold shares of Common Stock otherwise issuable to the Participant as a
result of the exercise of the Stock Appreciation Right.  Such shares
shall have a Fair Market Value equal to the minimum required tax withholding,
based on the minimum statutory withholding rates for federal and state tax
purposes, including payroll taxes, that are applicable to the supplemental
income resulting from such exercise.  In no event may the Participant
deliver shares, nor may the Company or any Affiliate withhold shares, having a
Fair Market Value in excess of such statutory minimum required tax
withholding.  The Participant’s election to deliver shares or to have
shares withheld for this purpose shall be made on or before the later of (i) the
date the Stock Appreciation Right is exercised, or (ii) the date that the amount
of tax to be withheld is determined under applicable tax law.  Such
election shall be approved by the Administrator and otherwise comply with such
rules as the Administrator may adopt to assure compliance with Rule 16b-3, or
any successor provision, as then in effect, of the General Rules and Regulations
under the Securities Exchange Act of 1934, if applicable.

    

    (d)           Nontransferability.  No
Stock Appreciation Right shall be transferable, in whole or in part, by the
Participant, other than by will or by the laws of descent and
distribution.  If the Participant shall attempt any transfer of any
Stock Appreciation Right granted under the Plan, such transfer shall be void and
the Stock Appreciation Right shall terminate.

    

    (e)           No Rights as
Shareholder.  A Participant (or the Participant’s successor or
successors) shall have no rights as a shareholder with respect to any shares
covered by a Stock Appreciation Right until the date of the issuance of a stock
certificate evidencing such shares.  No adjustment shall be made for
dividends (ordinary or extraordinary, whether in cash, securities or other
property), distributions or other rights for which the record date is prior to
the date such stock certificate is actually issued (except as otherwise provided
in Section 15 of the Plan).

    

    (f)           Other
Provisions.  The Stock Appreciation Right Agreement authorized
under this Section 13 shall contain such other provisions as the Administrator
shall deem advisable, including but not limited to any restrictions on the
exercise of the Stock Appreciation Right which may be necessary to comply with
Rule 16b-3 of the Securities Exchange Act of 1934, as amended.

    

    SECTION
14.

    AUTOMATIC OPTION GRANTS TO
NON-EMPLOYEE DIRECTORS

    

    (a)           Upon Joining
Board.  Each Non-Employee Director of the Company whose initial
election or appointment to the Board of Directors occurs on or after the date
this Plan is approved by the Company’s shareholders shall, as of the date of
such election, automatically be granted an option to purchase 5,500 shares of
Common Stock at an option price per share equal to 100% of the Fair Market Value
of the Common Stock on such date.  Options granted pursuant to this
subsection (a) shall be immediately exercisable upon grant.

    

    (b)           Upon Re-election to
Board.  Each Non-Employee Director who, on and after the date
this Plan is approved by the Company’s shareholders, is re-elected as a director
of the Company or whose term of office continues after a meeting of shareholders
at which directors are elected shall, as of the date of such re-election or
shareholder meeting, automatically be granted an option to purchase 5,500 shares
of the Common Stock at an option price per share equal to 100% of the Fair
Market Value of the Common Stock on the date of such re-election or shareholder
meeting.  Options granted pursuant to this subsection (b) shall be
immediately exercisable in full.

    

    (c)           General.  No
director shall receive more than one option to purchase shares pursuant to this
Section 14 in any one fiscal year.  All options granted pursuant to
this Section 14 shall be designated as nonqualified options and shall be subject
to the same terms and provisions as are then in effect with respect to granting
of nonqualified options to officers and employees of the Company, except that
the option shall expire ten (10) years after the date of grant; provided,
however, that in the event of the death of the optionee, the option shall expire
on the earlier of (i) six (6) months after the date of death and (ii) ten (10)
years after the date of grant.

    

    SECTION
15.

    RECAPITALIZATION, SALE,
MERGER, EXCHANGE

    OR
LIQUIDATION

    

    In the event of an increase or decrease
in the number of shares of Common Stock resulting from a stock dividend, stock
split, reverse split, combination or reclassification of the Common Stock, or
any other increase or decrease in the number of issued shares of Common Stock
effected without receipt of consideration by the Company, the Board may, in its
sole discretion, adjust the number of shares of Stock reserved under Section 6
hereof, the number of shares of Stock underlying the automatic option grants in
Section 14 hereof, the number of shares of Stock covered by each outstanding
Award, and, if applicable, the price per share thereof to reflect such
change.  Additional shares which may become covered by the Award
pursuant to such adjustment shall be subject to the same restrictions as are
applicable to the shares with respect to which the adjustment
relates.

    

    Unless otherwise provided in the
agreement evidencing an Award, in the event of an acquisition of the Company
through the sale of substantially all of the Company’s assets and the consequent
discontinuance of its business or through a merger, consolidation, exchange,
reorganization, reclassification, extraordinary dividend, divestiture (including
a spin-off),  liquidation, recapitalization, stock split, stock
dividend or otherwise (collectively referred to as a “transaction”), the Board
may provide for one or more of the following:

    

    (a)           the
equitable acceleration of the exercisability of any outstanding Options or Stock
Appreciation Rights, the vesting and payment of any Performance Awards, or the
lapsing of the risks of forfeiture on any Restricted Stock Awards;

    

    (b)           the
complete termination of this Plan, the cancellation of outstanding Options or
Stock Appreciation Rights not exercised prior to a date specified by the Board
(which date shall give Participants a reasonable period of time in which to
exercise such Option or Stock Appreciation Right prior to the effectiveness of
such transaction), the cancellation of any Performance Award and the
cancellation of any Restricted Stock Awards for which the risks of forfeiture
have not lapsed;

    

    (c)           
that Participants holding outstanding Options and Stock Appreciation Rights
shall receive, with respect to each share of Stock subject to such Option or
Stock Appreciation Right, as of the effective date of any such transaction, cash
in an amount equal to the excess of the Fair Market Value of such Stock on the
date immediately preceding the effective date of such transaction over the price
per share of such Options or Stock Appreciation Rights; provided that the Board
may, in lieu of such cash payment, distribute to such Participants shares of
Common Stock of the Company or shares of stock of any corporation succeeding the
Company by reason of such transaction, such shares having a value equal to the
cash payment herein;

    

    (d)           
that Participants holding outstanding Restricted Stock Awards and Performance
Share Awards shall receive, with respect to each share of Stock subject to such
Awards, as of the effective date of any such transaction, cash in an amount
equal to the Fair Market Value of such Stock on the date immediately preceding
the effective date of such transaction; provided that the Board may, in lieu of
such cash payment, distribute to such Participants shares of Common Stock of the
Company or shares of stock of any corporation succeeding the Company by reason
of such transaction, such shares having a value equal to the cash payment
herein;

    

    (e)           the
continuance of the Plan with respect to the exercise of Options or Stock
Appreciation Rights which were outstanding as of the date of adoption by the
Board of such plan for such transaction and the right to exercise such Options
and Stock Appreciation Rights as to an equivalent number of shares of stock of
the corporation succeeding the Company by reason of such transaction;
and

    

    (f)           the
continuance of the Plan with respect to Restricted Stock Awards for which the
risks of forfeiture have not lapsed as of the date of adoption by the Board of
such plan for such transaction and the right to receive an equivalent number of
shares of stock of the corporation succeeding the Company by reason for such
transaction.

    

    (g)           the
continuance of the Plan with respect to Performance Awards and, to the extent
applicable, the right to receive an equivalent number of shares of stock of the
corporation succeeding the Company by reason for such transaction.

    

    The Board may restrict the rights of or
the applicability of this Section 15 to the extent necessary to comply with
Section 16(b) of the Securities Exchange Act of 1934, the Internal Revenue Code
or any other applicable law or regulation.  The grant of an Award
pursuant to the Plan shall not limit in any way the right or power of the
Company to make adjustments, reclassifications, reorganizations or changes of
its capital or business structure or to merge, exchange or consolidate or to
dissolve, liquidate, sell or transfer all or any part of its business or
assets.

    

    SECTION
16.

    INVESTMENT
PURPOSE

    

    No shares of Stock shall be issued
pursuant to the Plan unless and until there has been compliance, in the opinion
of Company’s counsel, with all applicable legal requirements, including without
limitation, those relating to securities laws and stock exchange listing
requirements.  As a condition to the issuance of Stock to Participant,
the Administrator may require Participant to (a) represent that the shares of
Stock are being acquired for investment and not resale and to make such other
representations as the Administrator shall deem necessary or appropriate to
qualify the issuance of the shares as exempt from the Securities Act of 1933 and
any other applicable securities laws, and (b) represent that Participant shall
not dispose of the shares of Stock in violation of the Securities Act of 1933 or
any other applicable securities laws.

    

    As a further condition to the grant of
any Option or the issuance of Stock to Participant, Participant agrees to the
following:

    

    (a)           In
the event the Company advises Participant that it plans an underwritten public
offering of its Common Stock in compliance with the Securities Act of 1933, as
amended, and the underwriter(s) seek to impose restrictions under which certain
shareholders may not sell or contract to sell or grant any option to buy or
otherwise dispose of part or all of their stock purchase rights of the Common
Stock underlying Awards, Participant will not, for a period not to exceed 180
days from the prospectus, sell or contract to sell or grant an option to buy or
otherwise dispose of any Option granted to Participant pursuant to the Plan or
any of the underlying shares of Common Stock without the prior written consent
of the underwriter(s) or its representative(s).

    

    (b)           In
the event the Company makes any public offering of its securities and determines
in its sole discretion that it is necessary to reduce the number of issued but
unexercised stock purchase rights so as to comply with any state’s securities or
Blue Sky law limitations with respect thereto, the Board shall have the right
(i) to accelerate the exercisability of any Option and the date on which such
Option must be exercised, provided that the Company gives Participant prior
written notice of such acceleration, and (ii) to cancel any Options or portions
thereof which Participant does not exercise prior to or contemporaneously with
such public offering.

    

    (c)           In
the event of a transaction (as defined in Section 15 of the Plan), Participant
will comply with Rule 145 of the Securities Act of 1933 and any other
restrictions imposed under other applicable legal or accounting principles if
Participant is an “affiliate” (as defined in such applicable legal and
accounting principles) at the time of the transaction, and Participant will
execute any documents necessary to ensure compliance with such
rules.

    

    The Company reserves the right to place
a legend on any stock certificate issued in connection with an Award pursuant to
the Plan to assure compliance with this Section 15.

    

    SECTION
17.

    AMENDMENT OF THE
PLAN

    

    The Board may from time to time,
insofar as permitted by law, suspend or discontinue the Plan or revise or amend
it in any respect; provided, however, that no such revision or amendment, except
as is authorized in Section 15, shall impair the terms and conditions of any
Award which is outstanding on the date of such revision or amendment to the
material detriment of the Participant without the consent of the
Participant.  Notwithstanding the foregoing, no such revision or
amendment shall (i) materially increase the number of shares subject to the Plan
except as provided in Section 15 hereof, (ii) change the designation of the
class of employees eligible to receive Awards, (iii) decrease the price at which
Options may be granted, or (iv) materially increase the benefits accruing to
Participants under the Plan without the approval of the shareholders of the
Company if such approval is required for compliance with the requirements of any
applicable law or regulation.  Furthermore, the Plan may not, without
the approval of the shareholders, be amended in any manner that will cause
incentive stock options to fail to meet the requirements of Section 422 of the
Internal Revenue Code.

    

    

    SECTION
18.

    NO OBLIGATION TO EXERCISE
OPTION

    

    The granting of an Option or Stock
Appreciation Right shall impose no obligation upon the Participant to exercise
such Option or Stock Appreciation Right.  Further, the granting of an
Award hereunder shall not impose upon the Company or any Affiliate any
obligation to retain the Participant in its employ for any
period.

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