Document:

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                                                                    EXHIBIT 10.4

                                 LEASE AGREEMENT

         THIS LEASE, made this 1st day of January, 2000, by and between GBC
PROPERTIES, LLC, a Georgia limited liability company, first party, (hereinafter
called "Landlord") and GWINNETT BANKING COMPANY, a Georgia banking corporation,
second party (hereinafter called "Tenant");

                              W I T N E S S E T H:

         1.       PREMISES. Landlord, for and in consideration of the rents,
covenants, agreements and stipulations hereinafter mentioned, reserved, and
contained, to be paid, kept and performed by the Tenant, has leased and rented,
and by these presents does lease and rent, unto the said Tenant, and said Tenant
hereby agrees to lease and take upon the terms and conditions which hereinafter
appear, the following described property (hereinafter called the "premises"),
being known as 165 Nash Street, Lawrenceville, Georgia 30246, together with all
improvements located thereon. No easement for light or air is included in the
premises.

         2.       TERM. To have and to hold the same for a term of five (5)
years beginning on the 1st day of January, 2000 and ending on the 31st day of
December 2004, at midnight, unless sooner terminated as hereinafter provided.

         3.       RENTAL. Tenant agrees to pay Landlord at the office of
Landlord in Lawrenceville promptly on the first day of each month in advance,
during the term of this lease, a monthly rental of Eighteen and No/100ths
Dollars ($18.00) per square foot.

         4.       UTILITY BILLS. Tenant shall pay all utility bills, including,
but not limited to water, sewer, gas, electricity, fuel, light, and heat bills
for the leased premises and Tenant shall pay all charges for garbage collection
or other sanitary services rendered to the leased premises or used by Tenant in
connection therewith. If Tenant fails to pay any of said utility bills or
charges for garbage collection or other sanitary services, Landlord may pay the
same and such payment may be added to the rental of the premises next due as
additional rental hereunder.

         5.       USE OF THE PREMISES. The premises shall be used for banking
and related purposes and no other. The premises shall not be used for any
illegal purposes; nor in any manner to create any nuisance or trespass; nor in
any manner to vitiate the insurance or increase the rate of insurance on the
premises.

         6.       ABANDONMENT OF LEASED PREMISES. Tenant agrees not to abandon
or vacate the leased premises during the term of this lease, and agrees to use
said premises for purpose herein leased until the expiration hereof.

         7.       REPAIRS BY TENANT. Tenant accepts the leased premises in their
present condition and as suited for the uses intended by Tenant. Tenant shall,
throughout the initial term of this lease and all renewals thereof, at its
expense, maintain in good order and repair the leased premises, including the
building and other improvements located thereon, except those repairs expressly
required to be made by Landlord. Tenant further agrees to care for the grounds
around

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the building, including mowing of grass, paving, care of shrubs and general
landscaping. Tenant agrees to return said premises to Landlord at the
expiration, or prior to termination, of this lease in as good condition and
repair as when first received, natural wear and tear, damage by storm, fire,
lightning, earthquake or other casualty alone excepted. Elevators (if any) are
accepted by Tenant as in satisfactory operating condition on this date, and
Tenant, at its own expense, shall maintain said elevators in good operating
condition during the term of this lease, or any extension thereof.

         8.       TAXES. Tenant covenants and agrees to pay all taxes, charges
and assessments of every kind and nature that may be liens upon the premises as
they become due, and that any tax, charge, assessment or lien not paid when due
by the Tenant may be paid by Landlord and such payment may be added to the
rental of the premises next due as additional rental hereunder. Such taxes for
the calendar year in which the lease terminates shall be prorated between the
parties as of the date of termination. Tenant may contest in good faith the
validity or amount of any tax assessment or other charge for which it is
responsible hereunder. If required to perfect such contest, Tenant may include
Landlord as a party thereto. Tenant shall hold Landlord harmless against all
costs and expenses in connection with such contest. Tenant shall not be
obligated to pay any tax which may be levied or assessed with respect to or
because of the income or other benefit derived by Landlord from, or by virtue
of, this lease or the ownership of the premises, or any corporate franchise or
excise tax which may be levied against Landlord or any corporate successor to
Landlord's interest.

         9.       DESTRUCTION OF, OR DAMAGE TO, THE PREMISES. If the premises
are totally destroyed by storm, fire, lightning, earthquake or other casualty,
this lease shall terminate as of the date of such destruction, and rental shall
be accounted for as between Landlord and Tenant as of that date. If the premises
are damaged but not wholly destroyed by any such casualties, rental shall abate
in such proportion as use of the premises has been destroyed, and Landlord shall
restore the premises to substantially the same condition as before such damage
as speedily as practicable, whereupon full rental shall recommence.

         10.      INDEMNITY. Tenant agrees to indemnify and save harmless the
Landlord against all claims for damages to persons or property by reason of use
or occupancy of the leased premises, and all expenses incurred by Landlord
because thereof, including attorneys' fees and court costs.

         11.      GOVERNMENTAL ORDERS. Tenant agrees, at its own expense, to
promptly comply with all requirements of any legally constituted public
authority made necessary by reason of Tenant's occupancy of said premises.
Landlord agrees to promptly comply with any such requirements if not made
necessary by reason of Tenant's occupancy. It is mutually agreed, however,
between Landlord and Tenant, that if in order to comply with such requirements,
the cost to Landlord or Tenant, as the case may be, shall exceed a sum equal to
one year's rent, then Landlord or Tenant who is obligated to comply with such
requirements is privileged to terminate this lease by giving written notice of
termination to the other party, by registered mail, which termination shall
become effective sixty (60) days after receipt of such notice, and which notice
shall eliminate necessity of compliance with such requirement by the party
giving such notice unless the party receiving such notice of termination shall,
before termination becomes effective,

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pay to the party giving notice all cost of compliance in excess of one year's
rent, or secure payment of said sum in a manner satisfactory to the party giving
notice.

         12.      CONDEMNATION. If the whole of the leased premises, or such
portion thereof as will make the premises unusable for the purposes herein
leased, be condemned by any legally constituted authority for any public use or
purpose, then in either of said events the term hereby granted shall cease from
the date when possession thereof is taken by public authorities, and rental
shall be accounted for as between Landlord and Tenant as of said date. Such
termination, however, shall be without prejudice to the rights of either
Landlord or Tenant to recover compensation and damage caused by condemnation
from the condemnor. It is further understood and agreed that neither the Tenant
nor Landlord shall have any rights in any award made to the other by any
condemnation authority notwithstanding the termination of the lease as herein
provided.

         13.      ASSIGNMENT AND SUBLETTING. Tenant may sublease portions of the
leased premises to others provided such sublessee's operation is a part of the
general operation of Tenant and under the supervision and control of Tenant, and
provided such operation is within the purposes for which said premises shall be
used. Except as provided in the preceding sentence, Tenant shall not, without
the prior written consent of Landlord endorsed hereon, assign this lease or any
interest hereunder, or sublet the premises or any part thereof, or permit the
use of the premises by any party other than Tenant. Consent to any assignment or
sublease shall not destroy this provision, and all later assignments or
subleases shall be made likewise only on the prior written consent of Landlord.
Assignee of Tenant, at option of Landlord, shall become directly liable to
Landlord for all obligations of Tenant hereunder, but no sublease or assignment
by Tenant shall relieve Tenant of any liability hereunder.

         14.      REMOVAL OF FIXTURES. Tenant may (if not in default hereunder)
prior to the expiration of this lease, or any extension thereof, remove all
fixtures and equipment which it has placed in the premises, provided Tenant
repairs all damage to the premises caused by such removal.

         15.      CANCELLATION OF LEASE BY LANDLORD. It is mutually agreed that
in the event the Tenant shall default in the payment of rent, including
additional rent, herein reserved, when due, and fails to cure said default
within five (5) days after written notice thereof from Landlord; or if Tenant
shall be in default in performing any of the terms or provisions of this lease
other than the provision requiring the payment of rent, and fails to cure such
default within thirty (30) days after the date of receipt of written notice of
default from Landlord; or if Tenant is adjudicated bankrupt or declared
insolvent; or if a permanent receiver is appointed for Tenant's property and
such receiver is not removed within sixty (60) days after written notice from
Landlord to Tenant to obtain such removal; or if, whether voluntarily or
involuntarily, Tenant takes advantage of any debtor relief proceedings under any
present or future law, whereby the rent or any part thereof is, or is proposed
to be, reduced or payment thereof deferred; or if Tenant makes an assignment for
benefit of creditors; or if Tenant's effects should be levied upon or attached
under process against Tenant, not satisfied or dissolved within thirty (30) days
after written notice from Landlord to Tenant to obtain satisfaction thereof;
then, and in any of said events, Landlord at its option may at once, or within
six (6) months thereafter (but only during continuance of such default or
condition), terminate this lease by written notice to Tenant; whereupon this
lease shall end.

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After an authorized assignment or subletting of the entire premises covered by
this lease, the occurring of any of the foregoing defaults or events shall
affect this lease only if caused by, or happening to, the assignee or sublessee.
Any notice provided in this paragraph may be given by Landlord, or its attorney.
Upon such termination by Landlord, Tenant will at once surrender possession of
the premises to Landlord and remove all of Tenant's effects therefrom; and
Landlord may forthwith re-enter the premises and repossess itself thereof, and
remove all persons and effects therefrom, using such force as may be necessary
without being guilty of trespass, forcible entry or detainer or other tort.

         16.      RELETTING BY LANDLORD. Landlord, as Tenant's agent, without
terminating this lease, upon Tenant's breaching this contract, may at Landlord's
option enter upon and rent the premises at the best price obtainable by
reasonable effort, without advertisement and by private negotiations and for any
term Landlord deems proper. Tenant shall be liable to Landlord for the
deficiency, if any, between Tenant's rent hereunder and the price obtained by
Landlord on reletting.

         17.      EXTERIOR SIGNS. Tenant shall place no signs upon the outside
walls or roof of the leased premises except with the written consent of the
Landlord. Any and all signs placed on the within leased premises by Tenant shall
be maintained in compliance with rules and regulations governing such signs and
the Tenant shall be responsible to Landlord for any damage caused by
installation, use, or maintenance of said signs, and Tenant agrees upon removal
of said signs to repair all damages incident to such removal.

         18.      ENTRY FOR CARDING, ETC. Landlord may card the premises "For
Rent" or "For Sale" thirty (30) days before the termination of this lease.
Landlord may enter the premises at reasonable hours to exhibit same to
prospective purchasers or tenants and to make repairs required of Landlord under
the terms hereof, or to make repairs to Landlord's adjoining property, if any.

         19.      EFFECT FOR TERMINATION OF LEASE. No termination of this lease
prior to normal ending thereof, by lapse of time or otherwise, shall affect
Landlord's right to collect rent for the period prior to termination thereof.

         20.      MORTGAGEE'S RIGHTS. Tenant's rights shall be subject to any
bona fide mortgage or deed to secure debt which is now, or may hereafter be,
placed upon the premises by Landlord.

         21.      NO ESTATE IN LAND. This contract shall create the relationship
of Landlord and Tenant between the parties hereto; no estate shall pass out of
Landlord. Tenant has only a usufruct, not subject to levy and sale, and not
assignable by Tenant except by Landlord's consent.

         22.      HOLDING OVER. If Tenant remains in possession of the premises
after expiration of the term hereof, with Landlord's acquiescence and without
any express agreement of the parties, Tenant shall be a tenant at will at the
rental rate in effect at end of lease; and there shall be no renewal of this
lease by operation of law.

         23.      ATTORNEY'S FEES AND HOMESTEAD. If any rent owing under this
lease is collected by or through an attorney at law, Tenant agrees to pay
fifteen percent (15%) thereof as attorneys' fees. Tenant waives all homestead
rights and exemptions which it may have under any law as

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against any obligation owing under this lease. Tenant hereby assigns to Landlord
its homestead and exemption.

         24.      RIGHTS CUMULATIVE. All rights, powers and privileges conferred
hereunder upon the parties hereto shall be cumulative but not restrictive to
those given by law.

         25.      SERVICE OF NOTICE. Tenant hereby appoints as his agent to
receive service of all dispossessory or distraint proceedings and notices
hereunder, and all notices required under this lease, the person in charge of
the leased premises at the time, or occupying said premises; and if no person is
in charge of or occupying said premises, then such service or notice may be made
by attaching the same on the main entrance to said premises. A copy of all
notices under this lease shall also be sent to Tenant's last known address, if
different from said premises.

         26.      WAIVER OF RIGHTS. No failure of Landlord to exercise any power
given Landlord hereunder, or to insist upon strict compliance by Tenant with its
obligations hereunder, and no custom or practice of the parties at variance with
the terms hereof shall constitute a waiver of Landlord's right to demand exact
compliance with the terms hereof.

         27.      TIME OF ESSENCE. Time is of the essence of this agreement.

         28.      EXTENSION OF TERM. At the expiration of the initial five (5)
year term of this lease and at the expiration of each extension period as
provided in this paragraph, provided that Tenant is not in default under any of
the terms or conditions of this lease, the term of this lease shall be
automatically extended for two (2) additional five (5) year periods pursuant to
the same terms and conditions as this lease, except as such terms and conditions
may be modified by the terms and conditions set forth below. Written notice of
such modifications shall be provided by Landlord to Tenant at least ten (10)
days prior to the end of the current term of the lease or any extension period
as provided herein. Either party desiring to terminate this lease shall give to
the other party written notice of the intent not to renew the term of the lease
at least ten (10) days prior to the end of the current term thereof, in which
case this lease shall terminate and be of no further force and effect at the end
of said term period.

         29.      CPI INCREASES. On the first day of the initial extension
period as described above and on the first day of each subsequent extension
period, the rental described in Paragraph 3 of this lease shall be adjusted and
changed. Such adjustment and change in the rental amount shall be determined in
accordance with adjustments in the Consumer Price Index ("CPI") as provided for
herein. The CPI is herein defined as the "United States Department of Labor,
Bureau of Labor Statistics, Consumer Price Index, United States, for all urban
consumers, All Items (1982-84 = 100)."

         At the beginning of each extension period as provided above, the rental
shall be adjusted by the "percentage change" in the CPI on the initial day of
each extension period as compared to the CPI prevailing sixty (60) months prior
to such date. All such adjustments shall be made retroactive to such five-year
anniversary date. All such adjustments shall be made to the nearest one-eighth
of a percentage point (0.125%).

         Landlord shall notify Tenant in writing of the amount of the newly
adjusted rental and same shall be due on the first day of the applicable
extension period and each month thereafter

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until adjusted again. However, in no event shall the rental due and payable
hereunder be less than the rental provided for during the initial term of this
lease, regardless of the value of the dollar as reflected by said CPI figure.

         In the event the amount of CPI increase is not known until after the
first month of the period for which the adjustment is to be made, due to delays
in publication of the CPI, or any other reason, then, upon notification of the
increase by Landlord, Tenant shall pay the full amount of the increase which is
due for any prior month during the adjustment period within thirty (30) days
following receipt of Landlord's written notice of the amount due.

         In the event the CPI is discontinued, ceases to incorporate significant
items now incorporated therein, or if a substantial change is made in such CPI,
the parties hereto shall use in its place any similar index established and
compiled by an agency of the United States Government, and, if no such index is
available, the parties shall attempt to agree on an alternative formula and, if
agreement cannot be reached, the matter shall be submitted to arbitration under
the rules of the American Arbitration Association then in effect.

         The rental, as escalated, shall constitute the "rental" as such term is
used throughout the lease.

         30.      BANKRUPTCY OR INSOLVENCY. Notwithstanding any other provisions
contained in this lease, in the event (a) Tenant or its successors or assigns
shall become insolvent or bankrupt, or if it or their interest under this lease
shall be levied upon or sold under execution or other legal process, or (b) the
depository institution then operating on the premises is closed, or is taken
over by any depository institution supervisory authority ("Authority"), Landlord
may, in either such event, terminate this lease only with the concurrence of any
receiver or liquidator appointed by such Authority; provided, that in the event
this lease is terminated by the receiver or liquidator, the maximum claim of
Landlord for rent, damages, or indemnity for injury resulting from the
termination, rejection, or abandonment of the unexpired lease shall by law in no
event be in an amount equal to all accrued and unpaid rent to the date of
termination.

         31.      INSURANCE. Tenant covenants and agrees to keep the premises,
including the building and other improvements located thereon, fully insured
against loss by fire and other hazards and to maintain public liability
insurance with respect to the premises and the conduct and operation of Tenant's
business therein as may, from time to time, be required by Landlord in amounts,
with companies and with mortgage clause approved by Landlord, naming Landlord as
an additional insured. Landlord shall deliver the policies of insurance and any
renewals thereof to Landlord, and any premium of insurance not paid when due by
Tenant may be paid by Landlord and any sum so paid shall be additional rental
due hereunder. Landlord and Tenant hereby waive any right each may have against
the other on account of any loss or damage occasioned to Landlord or to Tenant,
as the case may be, their respective property, the premises or its contents,
arising from any risk generally covered by "Special Form" or All Risk insurance
coverage; and Landlord and Tenant, each on behalf of their respective insurance
companies insuring the foregoing against any such loss or damage, waive any
right of subrogation that it might have against the other.

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         32.      DEFINITIONS. "Landlord" as used in this lease shall include
first party, its representatives, assigns and successors in title to the
premises. "Tenant" as used in this lease shall include second party, its
representatives, and if this lease shall be validly assigned or sublet, shall
include also Tenant's assignees or sublessees, as to the premises covered by
such assignment or sublease. "Landlord" and "Tenant" include male and female,
singular and plural, corporation, partnership, limited liability company, or
individual, as may fit the particular parties.

         This lease contains the entire agreement of the parties hereto and no
representations, inducements, promises or agreements, oral or otherwise, between
the parties, not embodied herein, shall be of any force or effect.

                      [SIGNATURES APPEAR ON FOLLOWING PAGE]

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         IN WITNESS WHEREOF, the parties herein have hereunto set their hands
and seals the day and year first above written.

Signed, sealed and delivered as to        GBC PROPERTIES, LLC, a Georgia limited
Landlord, in the presence of:             liability company

-------------------------------------
                                          By:                             (SEAL)
                                              ----------------------------
                                              Name:
-------------------------------------              ----------------------------
Notary Public                                 Title:
                                                    ---------------------------

Signed, sealed and delivered as to        GWINNETT BANKING COMPANY, a
Tenant, the presence of:                  Georgia banking corporation

-------------------------------------
                                          By:                             (SEAL)
                                              ----------------------------
                                              Name:
-------------------------------------              ----------------------------
Notary Public                                 Title:
                                                    ---------------------------

                                                    [BANK SEAL]

                                       8<PAGE>   1
                                                   [as amended; restated for SEC
                                                           filing purposes only]

                                                                    EXHIBIT 4.1

                                 AMSURG CORP.
                           1997 STOCK INCENTIVE PLAN

SECTION 1.  PURPOSE; DEFINITIONS.

         The purpose of the AmSurg Corp. 1997 Stock Incentive Plan (the "Plan")
is to enable AmSurg Corp., a Tennessee corporation (the "Corporation") to
attract, retain and reward key employees of and consultants to the Corporation
and its Subsidiaries and Affiliates, and directors who are not also employees
of the Corporation, and to strengthen the mutuality of interests between such
key employees, consultants, and directors by awarding such key employees,
consultants, and directors performance-based stock incentives and/or other
equity interests or equity-based incentives in the Corporation, as well as
performance-based incentives payable in cash. The creation of the Plan shall
not diminish or prejudice other compensation programs approved from time to
time by the Board.

         For purposes of the Plan, the following terms shall be defined as set
forth below:

         A.       "Affiliate" means any entity other than the Corporation and
its Subsidiaries that is designated by the Board as a participating employer
under the Plan, provided that the Corporation directly or indirectly owns at
least 20% of the combined voting power of all classes of stock of such entity
or at least 20% of the ownership interests in such entity.

         B.       "Board" means the Board of Directors of the Corporation.

         C.       "Cause" has the meaning provided in Section 5(j) of the Plan.

         D.       "Change in Control" has the meaning provided in Section 10(b)
of the Plan.

         E.       "Change in Control Price" has the meaning provided in Section
10(d) of the Plan.

         F.       "Common Stock" means (i) prior to the Distribution, the
Corporation's Common Stock, without par value, and (ii) following the
Distribution, the Corporation's Class A Common Stock, without par value.

         G.       "Code" means the Internal Revenue Code of 1986, as amended
from time to time, and any successor thereto.

         H.       "Committee" means the Committee referred to in Section 2 of
the Plan.

         I.       "Corporation" means AmSurg Corp., a corporation organized
under the laws of the State of Tennessee or any successor corporation.

<PAGE>   2

         J.       "Disability" means disability as determined in accordance
with Corporation's policies in effect from time to time.

         K.       "Distribution" means the Distribution contemplated by that
certain Distribution Agreement, dated as of March 7, 1997, by and between
American Healthcorp, Inc. and the Corporation.

         L.       "Early Retirement" means retirement, for purposes of this
Plan with the express consent of the Corporation at or before the time of such
retirement, from active employment with the Corporation and any Subsidiary or
Affiliate prior to age 65, in accordance with any applicable early retirement
policy of the Corporation then in effect or as may be approved by the
Committee.

         M.       "Effective Date" has the meaning provided in Section 14 of
the Plan.

         N.       "Exchange Act" means the Securities Exchange Act of 1934, as
amended from time to time, and any successor thereto.

         O.       "Fair Market Value" means with respect to the Common Stock,
as of any given date or dates, unless otherwise determined by the Committee in
good faith, the reported closing price of a share of Common Stock on The Nasdaq
Stock Market National Market or such other market or exchange as is the
principal trading market for the Common Stock, or, if no such sale of a share
of Common Stock is reported on The Nasdaq Stock Market National Market or other
exchange or principal trading market on such date, the fair market value of a
share of Common Stock as determined by the Committee in good faith.

         P.       "Incentive Stock Option" means any Stock Option intended to
be and designated as an "Incentive Stock Option" within the meaning of Section
422 of the Code.

         Q.       "Immediate Family" means any child, stepchild, grandchild,
parent, stepparent, grandparent, spouse, sibling, mother-in-law, father-in-law,
son-in-law, daughter-in-law, brother-in-law, or sister-in-law, and shall
include adoptive relationships.

         R.       "Non-Employee Director" means a member of the Board who is a
Non-Employee Director within the meaning of Rule 16b-3(b)(3) promulgated under
the Exchange Act and an outside director within the meaning of Treasury
Regulation Sec. 162-27(e)(3) promulgated under the Code.

         S.       "Non-Qualified Stock Option" means any Stock Option that is
not an Incentive Stock Option.

         T.       "Normal Retirement" means retirement from active employment
with the Corporation and any Subsidiary or Affiliate on or after age 65.

         U.       "Other Stock-Based Award" means an award under Section 8
below that is valued in whole or in part by reference to, or is otherwise based
on, the Common Stock.

<PAGE>   3

         V.       "Outside Director" means a member of the Board who is not an
officer or employee of the Corporation or any Subsidiary or Affiliate of the
Corporation. A Board member who serves as a medical director but is not either
an officer or employee will be deemed to be an Outside Director.

         W.       "Outside Director Restricted Stock" means an award to an
Outside Director under Section 9 below.

         X.       "Plan" means this 1997 Stock Incentive Plan, as amended from
time to time.

         Y.       "Restricted Stock" means an award of shares of Common Stock
that is subject to restrictions under Section 7 of the Plan.

         Z.       "Restriction Period" has the meaning provided in Section 7 of
the Plan.

         AA.      "Retirement" means Normal or Early Retirement.

         BB.      "Section 162(m) Maximum" has the meaning provided in Section
3(a) hereof.

         CC.      "Stock Appreciation Right" means the right pursuant to an
award granted under Section 6 below to surrender to the Corporation all (or a
portion) of a Stock Option in exchange for an amount equal to the difference
between (i) the Fair Market Value, as of the date such Stock Option (or such
portion thereof) is surrendered, of the shares of Common Stock covered by such
Stock Option (or such portion thereof), subject, where applicable, to the
pricing provisions in Section 6(b)(ii), and (ii) the aggregate exercise price
of such Stock Option (or such portion thereof).

         DD.      "Stock Option" or "Option" means any option to purchase
shares of Common Stock (including Restricted Stock, if the Committee so
determines) granted pursuant to Section 5 below.

         EE.      "Subsidiary" means any corporation (other than the
Corporation) in an unbroken chain of corporations beginning with the
Corporation if each of the corporations (other than the last corporation in the
unbroken chain) owns stock possessing 50% or more of the total combined voting
power of all classes of stock in one of the other corporations in the chain.

SECTION 2.  ADMINISTRATION.

         The Plan shall be administered by a Committee of not less than two
Non-Employee Directors, who shall be appointed by the Board and who shall serve
at the pleasure of the Board. Decisions of the Committee may be ratified by the
Board. The functions of the Committee specified in the Plan may be exercised by
an existing Committee of the Board composed exclusively of Non-Employee
Directors. The initial Committee shall be the Compensation Committee of the
Board.

         The Committee shall have authority to grant, pursuant to the terms of
the Plan, to officers, other key employees, Outside Directors and consultants
eligible under Section 4: (i) Stock Options, (ii) Stock Appreciation Rights,
(iii) Restricted Stock, and/or (iv) Other Stock-Based Awards; provided,
however, that the power to grant

<PAGE>   4

and establish the terms and conditions of awards to Outside Directors under the
Plan other than pursuant to Section 9 shall be reserved to the Board.

         In particular, the Committee, or the Board, as the case may be, shall
have the authority, consistent with the terms of the Plan:

                  (a)      to select the officers, key employees and Outside
         Directors of and consultants to the Corporation and its Subsidiaries
         and Affiliates to whom Stock Options, Stock Appreciation Rights,
         Restricted Stock, and/or Other Stock-Based Awards may from time to
         time be granted hereunder;

                  (b)      to determine whether and to what extent Incentive
         Stock Options, Non-Qualified Stock Options, Stock Appreciation Rights,
         Restricted Stock, and/or Other Stock-Based Awards, or any combination
         thereof, are to be granted hereunder to one or more eligible persons;

                  (c)      to determine the number of shares to be covered by
         each such award granted hereunder;

                  (d)      to determine the terms and conditions, not
         inconsistent with the terms of the Plan, of any award granted
         hereunder (including, but not limited to, the share price and any
         restriction or limitation, or any vesting acceleration or waiver of
         forfeiture restrictions regarding any Stock Option or other award
         and/or the shares of Common Stock relating thereto, based in each case
         on such factors as the Committee shall determine, in its sole
         discretion); and to amend or waive any such terms and conditions to
         the extent permitted by Section 11 hereof;

                  (e)      to determine whether and under what circumstances a
         Stock Option may be settled in cash or Restricted Stock under Section
         5(m) or (n), as applicable, instead of Common Stock;

                  (f)      to determine whether, to what extent, and under what
         circumstances Option grants and/or other awards under the Plan are to
         be made, and operate, on a tandem basis vis-a-vis other awards under
         the Plan and/or cash awards made outside of the Plan;

                  (g)      to determine whether, to what extent, and under what
         circumstances shares of Common Stock and other amounts payable with
         respect to an award under this Plan shall be deferred either
         automatically or at the election of the participant (including
         providing for and determining the amount (if any) of any deemed
         earnings on any deferred amount during any deferral period);

                  (h)      to determine whether to require payment of tax
         withholding requirements in shares of Common Stock subject to the
         award; and

                  (i)      to impose any holding period required to satisfy
         Section 16 under the Exchange Act.

         The Committee shall have the authority to adopt, alter, and repeal
such rules, guidelines, and practices governing the Plan as it shall, from time
to time, deem advisable; to interpret the terms and provisions of the Plan

<PAGE>   5

and any award issued under the Plan (and any agreements relating thereto); and
to otherwise supervise the administration of the Plan.

         All decisions made by the Committee pursuant to the provisions of the
Plan shall be subject to ratification by the Board, which shall act only on the
recommendation of the Committee as to all matters as to which the Committee has
discretion pursuant to the provisions of the Plan. Subject to such
ratification, the decisions of the Committee shall be final and binding on all
persons, including the Corporation and Plan participants.

SECTION 3.  SHARES OF COMMON STOCK SUBJECT TO PLAN.

         (a)      The aggregate number of shares of Common Stock that may be
issued under the Plan shall be 1,120,000 shares. The shares of Common Stock
issuable under the Plan may consist, in whole or in part, of authorized and
unissued shares or treasury shares. No officer of the Corporation or other
person whose compensation may be subject to the limitations on deductibility
under Section 162(m) of the Code shall be eligible to receive awards pursuant
to this Plan relating to in excess of 200,000 shares of Common Stock in any
fiscal year (the "Section 162(m) Maximum").

         (b)      If any shares of Common Stock that have been optioned cease
to be subject to a Stock Option, or if any shares of Common Stock that are
subject to any Restricted Stock or Other Stock-Based Award granted hereunder
are forfeited prior to the payment of any dividends, if applicable, with
respect to such shares of Common Stock, or any such award otherwise terminates
without a payment being made to the participant in the form of Common Stock,
such shares shall again be available for distribution in connection with future
awards under the Plan.

         (c)      In the event of any merger, reorganization, consolidation,
recapitalization, extraordinary cash dividend, stock dividend, stock split or
other change in corporate structure affecting the Common Stock, an appropriate
substitution or adjustment shall be made in the maximum number of shares that
may be awarded under the Plan, in the number and option price of shares subject
to outstanding Options granted under the Plan, in the number of shares
underlying grants of Restricted Stock and Outside Director Restricted Stock,
the Section 162(m) Maximum and in the number of shares subject to other
outstanding awards granted under the Plan as may be determined to be
appropriate by the Committee, in its sole discretion, provided that the number
of shares subject to any award shall always be a whole number. An adjusted
option price shall also be used to determine the amount payable by the
Corporation upon the exercise of any Stock Appreciation Right associated with
any Stock Option.

SECTION 4.  ELIGIBILITY.

         Officers, other key employees and Outside Directors of and consultants
to the Corporation and its Subsidiaries and Affiliates who are responsible for
or contribute to the management, growth and/or profitability of the business of
the Corporation and/or its Subsidiaries and Affiliates are eligible to be
granted awards under the Plan. Outside Directors are eligible to receive awards
pursuant to Section 9 and as otherwise determined by the Board.

<PAGE>   6

SECTION 5.  STOCK OPTIONS.

         Stock Options may be granted alone, in addition to, or in tandem with
other awards granted under the Plan and/or cash awards made outside of the
Plan. Any Stock Option granted under the Plan shall be in such form as the
Committee may from time to time approve.

         Stock Options granted under the Plan may be of two types: (i)
Incentive Stock Options and (ii) Non- Qualified Stock Options. Incentive Stock
Options may be granted only to individuals who are employees of the Corporation
or any Subsidiary of the Corporation.

         The Committee shall have the authority to grant to any optionee
Incentive Stock Options, Non-Qualified Stock Options, or both types of Stock
Options (in each case with or without Stock Appreciation Rights).

         Options granted to officers, key employees, Outside Directors and
consultants under the Plan shall be subject to the following terms and
conditions and shall contain such additional terms and conditions, not
inconsistent with the terms of the Plan, as the Committee shall deem desirable.

                  (a)      Option Price. The option price per share of
         Common Stock purchasable under a Stock Option shall be determined by
         the Committee at the time of grant but shall be not less than 100%
         (or, in the case of any employee who owns stock possessing more than
         10% of the total combined voting power of all classes of stock of the
         Corporation or of any of its Subsidiaries, not less than 110%) of the
         Fair Market Value of the Common Stock at grant, in the case of
         Incentive Stock Options, and not less than 50% of the Fair Market
         Value of the Common Stock at grant, in the case of Non-Qualified Stock
         Options.

                  (b)      Option Term. The term of each Stock Option
         shall be fixed by the Committee, but no Incentive Stock Option shall
         be exercisable more than ten years (or, in the case of an employee who
         owns stock possessing more than 10% of the total combined voting power
         of all classes of stock of the Corporation or any of its Subsidiaries
         or parent corporations, more than five years) after the date the
         Option is granted.

                  (c)      Exercisability. Stock Options shall be
         exercisable at such time or times and subject to such terms and
         conditions as shall be determined by the Committee at or after grant;
         provided, however, that except as provided in Section 5(g) and (h) and
         Section 10, unless otherwise determined by the Committee at or after
         grant, no Stock Option shall be exercisable prior to the first
         anniversary date of the granting of the Option. The Committee may
         provide that a Stock Option shall vest over a period of future service
         at a rate specified at the time of grant, or that the Stock Option is
         exercisable only in installments. If the Committee provides, in its
         sole discretion, that any Stock Option is exercisable only in
         installments, the Committee may waive such installment exercise
         provisions at any time at or after grant, in whole or in part, based
         on such factors as the Committee shall determine in its sole
         discretion.

                  (d)      Method of Exercise. Subject to whatever
         installment exercise restrictions apply under Section 5(c), Stock
         Options may be exercised in whole or in part at any time during the
         option period, by giving written notice of exercise to the Corporation
         specifying the number of shares to be purchased.

<PAGE>   7

         Such notice shall be accompanied by payment in full of the purchase
         price, either by check, note, or such other instrument as the
         Committee may accept. As determined by the Committee, in its sole
         discretion, at or (except in the case of an Incentive Stock Option)
         after grant, payment in full or in part may also be made in the form
         of shares of Common Stock already owned by the optionee or, in the
         case of a NonQualified Stock Option, shares of Restricted Stock or
         shares subject to such Option or another award hereunder (in each case
         valued at the Fair Market Value of the Common Stock on the date the
         Option is exercised). If payment of the exercise price is made in part
         or in full with Common Stock, the Committee may award to the employee
         a new Stock Option to replace the Common Stock which was surrendered.
         If payment of the option exercise price of a Non-Qualified Stock
         Option is made in whole or in part in the form of Restricted Stock,
         such Restricted Stock (and any replacement shares relating thereto)
         shall remain (or be) restricted in accordance with the original terms
         of the Restricted Stock award in question, and any additional Common
         Stock received upon the exercise shall be subject to the same
         forfeiture restrictions, unless otherwise determined by the Committee,
         in its sole discretion, at or after grant. No shares of Common Stock
         shall be issued until full payment therefor has been made. An optionee
         shall generally have the rights to dividends or other rights of a
         shareholder with respect to shares subject to the Option when the
         optionee has given written notice of exercise, has paid in full for
         such shares, and, if requested, has given the representation described
         in Section 13(a).

                  (e)      Transferability of Options. No Non-Qualified
         Stock Option shall be transferable by the optionee without the prior
         written consent of the Committee other than (i) transfers by the
         Optionee to a member of his or her Immediate Family or a trust for the
         benefit of the optionee or a member of his or her Immediate Family, or
         (ii) transfers by will or by the laws of descent and distribution. No
         Incentive Stock Option shall be transferable by the optionee otherwise
         than by will or by the laws of descent and distribution and all
         Incentive Stock Options shall be exercisable, during the optionee's
         lifetime, only by the optionee.

                  (f)      Bonus for Taxes. In the case of a
         Non-Qualified Stock Option or an optionee who elects to make a
         disqualifying disposition (as defined in Section 422(a)(1) of the
         Code) of Common Stock acquired pursuant to the exercise of an
         Incentive Stock Option, the Committee in its discretion may award at
         the time of grant or thereafter the right to receive upon exercise of
         such Stock Option a cash bonus calculated to pay part or all of the
         federal and state, if any, income tax incurred by the optionee upon
         such exercise.

                  (g)      Termination by Death. Subject to Section 5(k),
         if an optionee's employment by the Corporation and any Subsidiary or
         (except in the case of an Incentive Stock Option) Affiliate terminates
         by reason of death, any Stock Option held by such optionee may
         thereafter be exercised, to the extent such option was exercisable at
         the time of death or (except in the case of an Incentive Stock Option)
         on such accelerated basis as the Committee may determine at or after
         grant (or except in the case of an Incentive Stock Option, as may be
         determined in accordance with procedures established by the Committee)
         by the legal representative of the estate or by the legatee of the
         optionee under the will of the optionee, for a period of one year (or
         such other period as the Committee may specify at or after grant) from
         the date of such death or until the expiration of the stated term of
         such Stock Option, whichever period is the shorter.

<PAGE>   8

                  (h)      Termination by Reason of Disability. Subject
         to Section 5(k), if an optionee's employment by the Corporation and
         any Subsidiary or (except in the case of an Incentive Stock Option)
         Affiliate terminates by reason of Disability, any Stock Option held by
         such optionee may thereafter be exercised by the optionee, to the
         extent it was exercisable at the time of termination or (except in the
         case of an Incentive Stock Option) on such accelerated basis as the
         Committee may determine at or after grant (or, except in the case of
         an Incentive Stock Option, as may be determined in accordance with
         procedures established by the Committee), for a period of (i) three
         years (or such other period as the Committee may specify at or after
         grant) from the date of such termination of employment or until the
         expiration of the stated term of such Stock Option, whichever period
         is the shorter, in the case of a Non-Qualified Stock Option and (ii)
         one year from the date of termination of employment or until the
         expiration of the stated term of such Stock Option, whichever period
         is shorter, in the case of an Incentive Stock Option; provided
         however, that, if the optionee dies within the period specified in (i)
         above (or other such period as the committee shall specify at or after
         grant), any unexercised Non-Qualified Stock Option held by such
         optionee shall thereafter be exercisable to the extent to which it was
         exercisable at the time of death for a period of twelve months from
         the date of such death or until the expiration of the stated term of
         such Stock Option, whichever period is shorter. In the event of
         termination of employment by reason of Disability, if an Incentive
         Stock Option is exercised after the expiration of the exercise period
         applicable to Incentive Stock Options, but before the expiration of
         any period that would apply if such Stock Option were a Non-Qualified
         Stock Option, such Stock Option will thereafter be treated as a
         Non-Qualified Stock Option.

                  (i)      Termination by Reason of Retirement. Subject
         to Section 5(k), if an optionee's employment by the Corporation and
         any Subsidiary or (except in the case of an Incentive Stock Option)
         Affiliate terminates by reason of Normal or Early Retirement, any
         Stock Option held by such optionee may thereafter be exercised by the
         optionee, to the extent it was exercisable at the time of such
         Retirement or (except in the case of an Incentive Stock Option) on
         such accelerated basis as the Committee may determine at or after
         grant (or, except in the case of an Incentive Stock Option, as may be
         determined in accordance with procedures established by the
         Committee), for a period of (i) three years (or such other period as
         the Committee may specify at or after grant) from the date of such
         termination of employment or the expiration of the stated term of such
         Stock Option, whichever period is the shorter, in the case of a
         Non-Qualified Stock Option and (ii) three months from the date of such
         termination of employment or the expiration of the stated term of such
         Stock Option, whichever period is the shorter, in the event of an
         Incentive Stock Option; provided however, that, if the optionee dies
         within the period specified in (i) above (or other such period as the
         Committee shall specify at or after grant), any unexercised
         NonQualified Stock Option held by such optionee shall thereafter be
         exercisable to the extent to which it was exercisable at the time of
         death for a period of twelve months from the date of such death or
         until the expiration of the stated term of such Stock Option,
         whichever period is shorter. In the event of termination of employment
         by reason of Retirement, if an Incentive Stock Option is exercised
         after the expiration of the exercise period applicable to Incentive
         Stock Options, but before the expiration of the period that would
         apply if such Stock Option were a Non-Qualified Stock Option, the
         option will thereafter be treated as a Non-Qualified Stock Option.

<PAGE>   9

                  (j)      Other Termination. Subject to Section 5(k),
         unless otherwise determined by the Committee (or pursuant to
         procedures established by the Committee) at or (except in the case of
         an Incentive Stock Option) after grant, if an optionee's employment by
         the Corporation and any Subsidiary or (except in the case of an
         Incentive Stock Option) Affiliate is involuntarily terminated for any
         reason other than death, Disability or Normal or Early Retirement, the
         Stock Option shall thereupon terminate, except that such Stock Option
         may be exercised, to the extent otherwise then exercisable, for the
         lesser of three months or the balance of such Stock Option's term if
         the involuntary termination is without Cause. For purposes of this
         Plan, "Cause" means (i) a felony conviction of a participant or the
         failure of a participant to contest prosecution for a felony, or (ii)
         a participant's willful misconduct or dishonesty, which is directly
         and materially harmful to the business or reputation of the
         Corporation or any Subsidiary or Affiliate. If an optionee voluntarily
         terminates employment with the Corporation and any Subsidiary or
         (except in the case of an Incentive Stock Option) Affiliate (except
         for Disability, Normal or Early Retirement), the Stock Option shall
         thereupon terminate; provided, however, that the Committee at grant or
         (except in the case of an Incentive Stock Option) thereafter may
         extend the exercise period in this situation for the lesser of three
         months or the balance of such Stock Option's term.

                  (k)      Incentive Stock Options. Anything in the Plan
         to the contrary notwithstanding, no term of this Plan relating to
         Incentive Stock Options shall be interpreted, amended, or altered, nor
         shall any discretion or authority granted under the Plan be so
         exercised, so as to disqualify the Plan under Section 422 of the Code,
         or, without the consent of the optionee(s) affected, to disqualify any
         Incentive Stock Option under such Section 422. No Incentive Stock
         Option shall be granted to any participant under the Plan if such
         grant would cause the aggregate Fair Market Value (as of the date the
         Incentive Stock Option is granted) of the Common Stock with respect to
         which all Incentive Stock Options are exercisable for the first time
         by such participant during any calendar year (under all such plans of
         the Company and any Subsidiary) to exceed $100,000. To the extent
         permitted under Section 422 of the Code or the applicable regulations
         thereunder or any applicable Internal Revenue Service pronouncement:

                           (i)      if (x) a participant's employment is
                  terminated by reason of death, Disability, or Retirement and
                  (y) the portion of any Incentive Stock Option that is
                  otherwise exercisable during the post-termination period
                  specified under Section 5(g), (h) or (i), applied without
                  regard to the $100,000 limitation contained in Section 422(d)
                  of the Code, is greater than the portion of such Option that
                  is immediately exercisable as an "Incentive Stock Option"
                  during such post- termination period under Section 422, such
                  excess shall be treated as a Non-Qualified Stock Option; and

                           (ii)     if the exercise of an Incentive Stock Option
                  is accelerated by reason of a Change in Control, any portion
                  of such Option that is not exercisable as an Incentive Stock
                  Option by reason of the $100,000 limitation contained in
                  Section 422(d) of the Code shall be treated as a Non-Qualified
                  Stock Option.

<PAGE>   10

                  (l)      Buyout Provisions. The Committee may at any
         time offer to buy out for a payment in cash, Common Stock, or
         Restricted Stock an Option previously granted, based on such terms and
         conditions as the Committee shall establish and communicate to the
         optionee at the time that such offer is made.

                  (m)      Settlement Provisions. If the option agreement
         so provides at grant or (except in the case of an Incentive Stock
         Option) is amended after grant and prior to exercise to so provide
         (with the optionee's consent), the Committee may require that all or
         part of the shares to be issued with respect to the spread value of an
         exercised Option take the form of Restricted Stock, which shall be
         valued on the date of exercise on the basis of the Fair Market Value
         (as determined by the Committee) of such Restricted Stock determined
         without regards to the forfeiture restrictions involved.

                  (n)      Performance and Other Conditions. The Committee may
         condition the exercise of any Option upon the attainment of specified
         performance goals or other factors as the Committee may determine, in
         its sole discretion. Unless specifically provided in the option
         agreement, any such conditional Option shall vest immediately prior to
         its expiration if the conditions to exercise have not theretofore been
         satisfied.

SECTION 6.  STOCK APPRECIATION RIGHTS.

                  (a)      Grant and Exercise. Stock Appreciation Rights
         may be granted in conjunction with all or part of any Stock Option
         granted under the Plan. In the case of a Non-Qualified Stock Option,
         such rights may be granted either at or after the time of the grant of
         such Stock Option. In the case of an Incentive Stock Option, such
         rights may be granted only at the time of the grant of such Stock
         Option. A Stock Appreciation Right or applicable portion thereof
         granted with respect to a given Stock Option shall terminate and no
         longer be exercisable upon the termination or exercise of the related
         Stock Option, subject to such provisions as the Committee may specify
         at grant where a Stock Appreciation Right is granted with respect to
         less than the full number of shares covered by a related Stock Option.
         A Stock Appreciation Right may be exercised by an optionee, subject to
         Section 6(b), in accordance with the procedures established by the
         Committee for such purpose. Upon such exercise, the optionee shall be
         entitled to receive an amount determined in the manner prescribed in
         Section 6(b). Stock Options relating to exercised Stock Appreciation
         Rights shall no longer be exercisable to the extent that the related
         Stock Appreciation Rights have been exercised.

                  (b)      Terms and Conditions. Stock Appreciation
         Rights shall be subject to such terms and conditions, not inconsistent
         with the provisions of the Plan, as shall be determined from time to
         time by the Committee, including the following:

                           (i)      Stock Appreciation Rights shall be
                  exercisable only at such time or times and to the extent that
                  the Stock Options to which they relate shall be exercisable in
                  accordance with the provisions of Section 5 and this Section 6
                  of the Plan.

                           (ii)     Upon the exercise of a Stock Appreciation
                  Right, an optionee shall be entitled to receive an amount in
                  cash and/or shares of Common Stock equal in value to the
                  excess of the Fair

<PAGE>   11

                  Market Value of one share of Common Stock over the option
                  price per share specified in the related Stock Option
                  multiplied by the number of shares in respect of which the
                  Stock Appreciation Right shall have been exercised, with the
                  Committee having the right to determine the form of payment.
                  When payment is to be made in shares, the number of shares to
                  be paid shall be calculated on the basis of the Fair Market
                  Value of the shares on the date of exercise. When payment is
                  to be made in cash, such amount shall be calculated on the
                  basis of the Fair Market Value of the Common Stock on the
                  date of exercise.

                           (iii)    Stock Appreciation Rights shall be
                  transferable only when and to the extent that the underlying
                  Stock Option would be transferable under Section 5(e) of the
                  Plan.

                           (iv)     Upon the exercise of a Stock Appreciation
                  Right, the Stock Option or part thereof to which such Stock
                  Appreciation Right is related shall be deemed to have been
                  exercised for the purpose of the limitation set forth in
                  Section 3 of the Plan on the number of shares of Common Stock
                  to be issued under the Plan.

                           (v)      The Committee, in its sole discretion, may
                  also provide that, in the event of a Change in Control and/or
                  a Potential Change in Control, the amount to be paid upon the
                  exercise of a Stock Appreciation Right shall be based on the
                  Change in Control Price, subject to such terms and conditions
                  as the Committee may specify at grant.

                           (vi)     The Committee may condition the exercise of
                  any Stock Appreciation Right upon the attainment of specified
                  performance goals or other factors as the Committee may
                  determine, in its sole discretion.

SECTION 7.  RESTRICTED STOCK.

                  (a)      Administration. Shares of Restricted Stock may
         be issued either alone, in addition to, or in tandem with other awards
         granted under the Plan and/or cash awards made outside the Plan. The
         Committee shall determine the eligible persons to whom, and the time
         or times at which, grants of Restricted Stock will be made, the number
         of shares of Restricted Stock to be awarded to any person, the price
         (if any) to be paid by the recipient of Restricted Stock (subject to
         Section 7(b)), the time or times within which such awards may be
         subject to forfeiture, and the other terms, restrictions and
         conditions of the awards in addition to those set forth in Section
         7(c). The Committee may condition the grant of Restricted Stock upon
         the attainment of specified performance goals or such other factors as
         the Committee may determine, in its sole discretion. The provisions of
         Restricted Stock awards need not be the same with respect to each
         recipient.

                  (b)      Awards and Certificates. The prospective recipient of
         a Restricted Stock award shall not have any rights with respect to such
         award, unless and until such recipient has executed an agreement
         evidencing the award and has delivered a fully executed copy thereof to
         the Corporation, and has otherwise complied with the applicable terms
         and conditions of such award.

<PAGE>   12

                           (i)      The purchase price for shares of Restricted
                  Stock shall be established by the Committee and may be zero.

                           (ii)     Awards of Restricted Stock must be accepted
                  within a period of 60 days (or such shorter period as the
                  Committee may specify at grant) after the award date, by
                  executing a Restricted Stock Award Agreement and paying
                  whatever price (if any) is required under Section 7(b)(i).

                           (iii)    Each participant receiving a Restricted
                  Stock award shall be issued a stock certificate in respect of
                  such shares of Restricted Stock. Such certificate shall be
                  registered in the name of such participant, and shall bear an
                  appropriate legend referring to the terms, conditions, and
                  restrictions applicable to such award.

                           (iv)     The Committee shall require that the stock
                  certificates evidencing such shares be held in custody by the
                  Corporation until the restrictions thereon shall have lapsed,
                  and that, as a condition of any Restricted Stock award, the
                  participant shall have delivered a stock power, endorsed in
                  blank, relating to the shares of Common Stock covered by such
                  award.

                  (c)      Restrictions and Conditions. The shares of Restricted
         Stock awarded pursuant to this Section 7 shall be subject to the
         following restrictions and conditions:

                           (i)      In accordance with the provisions of this
                  Plan and the award agreement, during a period set by the
                  Committee commencing with the date of such award (the
                  "Restriction Period"), the participant shall not be permitted
                  to sell, transfer, pledge, assign, or otherwise encumber
                  shares of Restricted Stock awarded under the Plan, except to
                  the extent permitted under Section 13(h) below. Within these
                  limits, the Committee, in its sole discretion, may provide for
                  the lapse of such restrictions in installments and may
                  accelerate or waive such restrictions, in whole or in part,
                  based on service, performance, such other factors or criteria
                  as the Committee may determine in its sole discretion.

                           (ii)     Except as provided in this paragraph (ii)
                  and Section 7(c)(i), the participant shall have, with respect
                  to the shares of Restricted Stock, all of the rights of a
                  shareholder of the Corporation, including the right to vote
                  the shares, and the right to receive any cash dividends. The
                  Committee, in its sole discretion, as determined at the time
                  of award, may permit or require the payment of cash dividends
                  to be deferred and, if the Committee so determines,
                  reinvested, subject to Section 14(e), in additional Restricted
                  Stock to the extent shares are available under Section 3, or
                  otherwise reinvested. Pursuant to Section 3 above, stock
                  dividends issued with respect to Restricted Stock shall be
                  treated as additional shares of Restricted Stock that are
                  subject to the same restrictions and other terms and
                  conditions that apply to the shares with respect to which such
                  dividends are issued. If the Committee so determines, the
                  award agreement may also impose restrictions on the right to
                  vote and the right to receive dividends.

<PAGE>   13

                           (iii)    Subject to the applicable provisions of the
                  award agreement and this Section 7, upon termination of a
                  participant's employment with the Corporation and any
                  Subsidiary or Affiliate for any reason during the Restriction
                  Period, all shares still subject to restriction will vest, or
                  be forfeited, in accordance with the terms and conditions
                  established by the Committee at or after grant.

                           (iv)     If and when the Restriction Period expires
                  without a prior forfeiture of the Restricted Stock subject to
                  such Restriction Period, certificates for an appropriate
                  number of unrestricted shares shall be delivered to the
                  participant promptly.

                  (d)      Minimum Value Provisions. In order to better
         ensure that award payments actually reflect the performance of the
         Corporation and service of the participant, the Committee may provide,
         in its sole discretion, for a tandem performance-based or other award
         designed to guarantee a minimum value, payable in cash or Common Stock
         to the recipient of a restricted stock award, subject to such
         performance, future service, deferral, and other terms and conditions
         as may be specified by the Committee.

SECTION 8.  OTHER STOCK-BASED AWARDS.

                  (a)      Administration. Other Stock-Based Awards,
         including, without limitation, performance shares, convertible
         preferred stock, convertible debentures, exchangeable securities and
         Common Stock awards or options valued by reference to earnings per
         share or Subsidiary performance, may be granted either alone, in
         addition to, or in tandem with Stock Options, Stock Appreciation
         Rights, or Restricted Stock granted under the Plan and cash awards
         made outside of the Plan; provided that no such Other Stock-Based
         Awards may be granted in tandem with Incentive Stock Options if that
         would cause such Stock Options not to qualify as Incentive Stock
         Options pursuant to Section 422 of the Code. Subject to the provisions
         of the Plan, the Committee shall have authority to determine the
         persons to whom and the time or times at which such awards shall be
         made, the number of shares of Common Stock to be awarded pursuant to
         such awards, and all other conditions of the awards. The Committee may
         also provide for the grant of Common Stock upon the completion of a
         specified performance period. The provisions of Other Stock-Based
         Awards need not be the same with respect to each recipient.

                  (b)      Terms and Conditions. Other Stock-Based Awards
         made pursuant to this Section 8 shall be subject to the following
         terms and conditions:

                           (i)      Shares subject to awards under this Section
                  8 and the award agreement referred to in Section 8(b)(v)
                  below, may not be sold, assigned, transferred, pledged, or
                  otherwise encumbered prior to the date on which the shares are
                  issued, or, if later, the date on which any applicable
                  restriction, performance, or deferral period lapses.

                           (ii)     Subject to the provisions of this Plan and
                  the award agreement and unless otherwise determined by the
                  Committee at grant, the recipient of an award under this
                  Section 8 shall be entitled to receive, currently or on a
                  deferred basis, interest or dividends or interest or dividend

<PAGE>   14

                  equivalents with respect to the number of shares covered by
                  the award, as determined at the time of the award by the
                  Committee, in its sole discretion, and the Committee may
                  provide that such amounts (if any) shall be deemed to have
                  been reinvested in additional shares of Common Stock or
                  otherwise reinvested.

                           (iii)    Any award under Section 8 and any shares of
                  Common Stock covered by any such award shall vest or be
                  forfeited to the extent so provided in the award agreement, as
                  determined by the Committee in its sole discretion.

                           (iv)     In the event of the
                  participant's Retirement, Disability, or death, or in cases
                  of special circumstances, the Committee may, in its sole
                  discretion, waive in whole or in part any or all of the
                  remaining limitations imposed hereunder (if any) with respect
                  to any or all of an award under this Section 8.

                           (v)      Each award under this Section 8
                  shall be confirmed by, and subject to the terms of, an
                  agreement or other instrument by the Corporation and the
                  participant.

                           (vi)     Common Stock (including securities
                  convertible into Common Stock) issued on a bonus basis under
                  this Section 8 may be issued for no cash consideration. Common
                  Stock (including securities convertible into Common Stock)
                  purchased pursuant to a purchase right awarded under this
                  Section 8 shall be priced at least 85% of the Fair Market
                  Value of the Common Stock on the date of grant.

SECTION 9.  AWARDS TO OUTSIDE DIRECTORS.

                  (a)      The provisions of this Section 9 shall apply
         only to awards to Outside Directors in accordance with this Section 9.
         The Committee shall have no authority to determine the timing of or
         the terms or conditions of any award under this Section 9.

                  (b)      Effective as of the Distribution, each person
         serving as an Outside Director on such date will receive a grant of a
         number of shares of Common Stock (rounded up to the next whole share)
         having an aggregate Fair Market Value on such date equal to $10,000,
         which shares shall be restricted as provided in this Section 9.

                  (c)      On the date of the Annual Meeting of Shareholders of
         the Corporation occurring after the Distribution, unless this Plan has
         been previously terminated, each Outside Director will receive an
         automatic grant of a number of shares of Common Stock (rounded up to
         the next whole share) having an aggregate Fair Market Value on such
         date equal to $10,000 (subject to increase based upon any increase in
         the Consumer Price Index for Urban Wage Earning and Clerical Workers,
         U.S. All City Average Report, of the U.S. Bureau of Labor Statistics
         or, if such index is no longer available, a similar index), which
         shares shall be restricted as provided in this Section 9.

<PAGE>   15

                  (d)      Each grant of Outside Director Restricted Stock shall
         vest in increments of one-third of the shares of Common Stock subject
         to such grant with the first one-third increment vesting on the date of
         grant, the second one-third increment on the first anniversary of the
         date of grant and the final one-third increment on the second
         anniversary of the date of grant, if the grantee is still a member of
         the Board on such dates. Upon the vesting of the shares, the
         Corporation will deliver the stock certificate(s) evidencing the
         vested shares to the Outside Director, all restrictions on the shares
         imposed by this Plan (other than pursuant to Section 13(a) below) will
         be lifted and such shares will no longer be deemed to be "Outside
         Directors Restricted Stock" hereunder.

                  (e)      Until the earlier of (i) five years from the
         date of grant and (ii) the date on which the Outside Director ceases
         to serve as a director of the Corporation (the "Outside Director
         Period of Restriction"), no Outside Director Restricted Stock may be
         sold, transferred, pledged, assigned, or otherwise alienated or
         hypothecated, otherwise than by will or by the laws of descent and
         distribution.

         Each certificate representing Outside Director Restricted Stock
         granted pursuant to this Section 9 shall bear the following legend:

                  "The sale or other transfer of the shares represented by this
                  certificate, whether voluntary, involuntary, or by operation
                  of law, is subject to certain restrictions on transfer set
                  forth in the AmSurg Corp. 1997 Stock Incentive Plan (the
                  "Plan"). A copy of the Plan and the rules of such Plan may be
                  obtained from the Secretary of AmSurg Corp."

         Once the Outside Director Period of Restriction has lapsed, the
         grantee shall be entitled to have the legend required by this Section
         9 removed from such stock certificate(s); provided however, that such
         certificate shall be subject to any legend required by applicable
         state or federal law.

                  (f)      Upon termination of an Outside Director's service as
         a member of the Board for any reason other than death, disability or
         retirement, all shares of Outside Restricted Stock not theretofore
         vested will be forfeited. Upon termination of an Outside Director's
         service as a member of the Board due to death, disability or
         retirement, all shares of Outside Director Restricted Stock will vest
         immediately.

                  (g)      Grantees of Outside Director Restricted Stock
         shall enter into a restricted stock agreement with the Corporation
         setting forth the terms provided herein. Each participant receiving an
         award of Outside Director Restricted Stock shall be issued one or more
         stock certificates evidencing the shares of Outside Director
         Restricted Stock. Such certificates shall be registered in the name of
         the Outside Director, and shall bear an appropriate legend referring
         to the terms, conditions and restrictions applicable to the award. The
         stock certificates shall be held in the custody of the Corporation
         until the award or portion thereof represented by such certificate is
         vested. The Corporation may require the Outside Director to deliver a
         stock power, endorsed in blank, relating to the shares of Common Stock
         covered by the award.

<PAGE>   16

                  (h)      Outside Directors will have the right to vote
         the shares and to receive cash dividends with respect to the shares of
         Outside Director Restricted Stock. Stock dividends issued with respect
         to Outside Director Restricted Stock will be treated as additional
         shares of Outside Director Restricted Stock subject to the same
         restrictions and vesting schedule as the shares of Outside Director
         Restricted Stock with respect to which they were received.

                  (i)      Shares of Outside Director Restricted Stock
         shall be subject to Section 10. The number of shares underlying each
         grant of Outside Director Restricted Stock shall be adjusted
         automatically in the same manner as the number of shares under Section
         3 hereof at any time that awards of Restricted Stock are adjusted as
         provided in Section 3.

SECTION 10.  CHANGE IN CONTROL PROVISIONS.

                  (a)      Impact of Event. In the event of:

                           (1)      a "Change in Control" as defined in Section
                  10(b); or

                           (2)      a "Potential Change in Control" as defined
                  in Section 10(c), but only if and to the extent so determined
                  by the Committee or the Board at or after grant (subject to
                  any right of approval expressly reserved by the Committee or
                  the Board at the time of such determination),

                           (i)      Subject to the limitations set forth below
                  in this Section 10(a), the following acceleration provisions
                  shall apply:

                                    (a)      Any Stock Appreciation Rights or
                           any Stock Option awarded under the Plan not
                           previously exercisable and vested shall become fully
                           exercisable and vested.

                                    (b)      The restrictions applicable to any
                           Restricted Stock , Outside Director Restricted Stock
                           and Other Stock-Based Awards, in each case to the
                           extent not already vested under the Plan, shall lapse
                           and such shares and awards shall be deemed fully
                           vested.

                           (ii)     Subject to the limitations set forth below
                  in this Section 10(a), the value of all outstanding Stock
                  Options, Stock Appreciation Rights, Restricted Stock, Outside
                  Director Restricted Stock and Other Stock-Based Awards, in
                  each case to the extent vested, shall, unless otherwise
                  determined Board or by the Committee in its sole discretion
                  prior to any Change in Control, be cashed out on the basis of
                  the "Change in Control Price" as defined in Section 10(d) as
                  of the date such Change in Control or such Potential Change in
                  Control is determined to have occurred or such other date as
                  the Board or Committee may determine prior to the Change in
                  Control.

                           (iii)    The Board or the Committee may impose
                  additional conditions on the acceleration or valuation of any
                  award in the award agreement.

<PAGE>   17

                  (b)      Definition of Change in Control. For purposes
         of Section 10(a), a "Change in Control" means the happening of any of
         the following:

                           (i)      any person or entity, including a "group" as
                  defined in Section 13(d)(3) of the Exchange Act, other than
                  the Corporation or a wholly-owned subsidiary thereof or any
                  employee benefit plan of the Corporation or any of its
                  Subsidiaries, becomes the beneficial owner of the
                  Corporation's securities having 35% or more of the combined
                  voting power of the then outstanding securities of the
                  Corporation that may be cast for the election of directors of
                  the Corporation (other than as a result of an issuance of
                  securities initiated by the Corporation in the ordinary
                  course of business); or

                           (ii)     as the result of, or in connection with, any
                  cash tender or exchange offer, merger or other business
                  combination, sales of assets or contested election, or any
                  combination of the foregoing transactions, less than a
                  majority of the combined voting power of the then outstanding
                  securities of the Corporation or any successor corporation or
                  entity entitled to vote generally in the election of the
                  directors of the Corporation or such other corporation or
                  entity after such transaction are held in the aggregate by the
                  holders of the Corporation's securities entitled to vote
                  generally in the election of directors of the Corporation
                  immediately prior to such transaction; or

                           (iii)    during any period of two consecutive years,
                  individuals who at the beginning of any such period constitute
                  the Board cease for any reason to constitute at least a
                  majority thereof, unless the election, or the nomination for
                  election by the Corporation's shareholders, of each director
                  of the Corporation first elected during such period was
                  approved by a vote of at least two-thirds of the directors of
                  the Corporation then still in office who were directors of the
                  Corporation at the beginning of any such period.

                  (c)      Definition of Potential Change in Control. For
         purposes of Section 10(a), a "Potential Change in Control" means the
         happening of any one of the following:

                           (i)      The approval by shareholders of an agreement
                  by the Corporation, the consummation of which would result in
                  a Change in Control of the Corporation as defined in Section
                  10(b); or

                           (ii)     The acquisition of beneficial ownership,
                  directly or indirectly, by any entity, person or group (other
                  than the Corporation or a Subsidiary or any Corporation
                  employee benefit plan (including any trustee of such plan
                  acting as such trustee)) of securities of the Corporation
                  representing 5% or more of the combined voting power of the
                  Corporation's outstanding securities and the adoption by the
                  Committee of a resolution to the effect that a Potential
                  Change in Control of the Corporation has occurred for purposes
                  of this Plan.

                  (d)      Change in Control Price. For purposes of this
         Section 10, "Change in Control Price" means the highest price per
         share paid in any transaction reported on The Nasdaq Stock Market
         National Market or such other exchange or market as is the principal
         trading market for the Common Stock, or

<PAGE>   18

         paid or offered in any bona fide transaction related to a Potential or
         actual Change in Control of the Corporation at any time during the 60
         day period immediately preceding the occurrence of the Change in
         Control (or, where applicable, the occurrence of the Potential Change
         in Control event), in each case as determined by the Committee except
         that, in the case of Incentive Stock Options and Stock Appreciation
         Rights relating to Incentive Stock Options, such price shall be based
         only on transactions reported for the date on which the optionee
         exercises such Stock Appreciation Rights or, where applicable, the
         date on which a cash out occurs under Section 10(a)(ii).

SECTION 11.  AMENDMENTS AND TERMINATION.

         The Board may at any time amend, alter or discontinue the Plan;
provided, however, that, without the approval of the Corporation's
shareholders, no amendment or alteration may be made which would (a) except as
a result of the provisions of Section 3(c) of the Plan, increase the maximum
number of shares that may be issued under the Plan or increase the Section
162(m) Maximum, (b) change the provisions governing Incentive Stock Options
except as required or permitted under the provisions governing incentive stock
options under the Code, or (c) make any change for which applicable law or
regulatory authority (including the regulatory authority of The Nasdaq Stock
Market National Market or any other market or exchange on which the Common
Stock is traded) would require shareholder approval or for which shareholder
approval would be required to secure full deductibility of compensation
received under the Plan under Section 162(m) of the Code. No amendment,
alteration, or discontinuation shall be made which would impair the rights of
an optionee or participant under a Stock Option, Stock Appreciation Right,
Restricted Stock, Other Stock-Based Award or Outside Director Restricted Stock
theretofore granted, without the participant's consent.

         The Committee may amend the terms of any Stock Option or other award
theretofore granted, prospectively or retroactively, but, subject to Section 3
above, no such amendment shall impair the rights of any holder without the
holder's consent. The Committee may also substitute new Stock Options for
previously granted Stock Options (on a one for one or other basis), including
previously granted Stock Options having higher option exercise prices. Solely
for purposes of computing the Section 162(m) Maximum, if any Stock Options or
other awards previously granted to a participant are canceled and new Stock
Options or other awards having a lower exercise price or other more favorable
terms for the participant are substituted in their place, both the initial
Stock Options or other awards and the replacement Stock Options or other awards
will be deemed to be outstanding (although the canceled Stock Options or other
awards will not be exercisable or deemed outstanding for any other purposes).

SECTION 12. UNFUNDED STATUS OF PLAN.

         The Plan is intended to constitute an "unfunded" plan for incentive
and deferred compensation. With respect to any payments not yet made to a
participant or optionee by the Corporation, nothing contained herein shall give
any such participant or optionee any rights that are greater than those of a
general creditor of the Corporation. In its sole discretion, the Committee may
authorize the creation of trusts or other arrangements to meet the obligations
created under the Plan to deliver Common Stock or payments in lieu of or with
respect to awards hereunder; provided, however, that, unless the Committee
otherwise determines with the consent of the

<PAGE>   19

affected participant, the existence of such trusts or other arrangements is
consistent with the "unfunded" status of the Plan.

SECTION 13. GENERAL PROVISIONS.

                  (a)      The Committee may require each person purchasing
         shares pursuant to a Stock Option or other award under the Plan to
         represent to and agree with the Corporation in writing that the
         optionee or participant is acquiring the shares without a view to
         distribution thereof. The certificates for such shares may include
         any legend which the Committee deems appropriate to reflect any
         restrictions on transfer. All certificates for shares of Common Stock
         or other securities delivered under the Plan shall be subject to such
         stock-transfer orders and other restrictions as the Committee may deem
         advisable under the rules, regulations, and other requirements of the
         Securities and Exchange Commission, any stock exchange upon which the
         Common Stock is then listed, and any applicable Federal or state
         securities law, and the Committee may cause a legend or legends to be
         put on any such certificates to make appropriate reference to such
         restrictions.

                  (b)      Nothing contained in this Plan shall prevent
         the Board from adopting other or additional compensation arrangements,
         subject to shareholder approval if such approval is required; and such
         arrangements may be either generally applicable or applicable only in
         specific cases.

                  (c)      The adoption of the Plan shall not confer upon
         any employee of the Corporation or any Subsidiary or Affiliate any
         right to continued employment with the Corporation or a Subsidiary or
         Affiliate, as the case may be, nor shall it interfere in any way with
         the right of the Corporation or a Subsidiary or Affiliate to terminate
         the employment of any of its employees at any time.

                  (d)      No later than the date as of which an amount
         first becomes includible in the gross income of the participant for
         Federal income tax purposes with respect to any award under the Plan,
         the participant shall pay to the Corporation, or make arrangements
         satisfactory to the Committee regarding the payment of, any Federal,
         state, or local taxes of any kind required by law to be withheld with
         respect to such amount. The Committee may require withholding
         obligations to be settled with Common Stock, including Common Stock
         that is part of the award that gives rise to the withholding
         requirement. The obligations of the Corporation under the Plan shall
         be conditional on such payment or arrangements and the Corporation and
         its Subsidiaries or Affiliates shall, to the extent permitted by law,
         have the right to deduct any such taxes from any payment of any kind
         otherwise due to the participant.

                  (e)      The actual or deemed reinvestment of dividends
         or dividend equivalents in additional Restricted Stock (or other types
         of Plan awards) at the time of any dividend payment shall only be
         permissible if sufficient shares of Common Stock are available under
         Section 3 for such reinvestment (taking into account then outstanding
         Stock Options and other Plan awards).

                  (f)      The Plan and all awards made and actions taken
         thereunder shall be governed by and construed in accordance with the
         laws of the State of Tennessee.

<PAGE>   20

                  (g)      The members of the Committee and the Board shall not
         be liable to any employee or other person with respect to any
         determination made hereunder in a manner that is not inconsistent with
         their legal obligations as members of the Board. In addition to such
         other rights of indemnification as they may have as directors or as
         members of the Committee, the members of the Committee shall be
         indemnified by the Corporation against the reasonable expenses,
         including attorneys' fees actually and necessarily incurred in
         connection with the defense of any action, suit or proceeding, or in
         connection with any appeal therein, to which they or any of them may
         be a party by reason of any action taken or failure to act under or in
         connection with the Plan or any option granted thereunder, and against
         all amounts paid by them in settlement thereof (provided such
         settlement is approved by independent legal counsel selected by the
         Corporation) or paid by them in satisfaction of a judgment in any such
         action, suit or proceeding, except in relation to matters as to which
         it shall be adjudged in such action, suit or proceeding that such
         Committee member is liable for negligence or misconduct in the
         performance of his duties; provided that within 60 days after
         institution of any such action, suit or proceeding, the Committee
         member shall in writing offer the Corporation the opportunity, at its
         own expense, to handle and defend the same.

                  (h)      In addition to any other restrictions on transfer
         that may be applicable under the terms of this Plan or the applicable
         award agreement, no Stock Option, Stock Appreciation Right, Restricted
         Stock award, Other Stock-Based Award or Outside Director Restricted
         Stock award or other right issued under this Plan is transferable by
         the participant without the prior written consent of the Committee, or,
         in the case of an Outside Director, the Board, other than (i) transfers
         by a participant to a member of his or her Immediate Family or a trust
         for the benefit of the participant or a member of his or her Immediate
         Family or (ii) transfers by will or by the laws of descent and
         distribution. The designation of a beneficiary will not constitute a
         transfer.

                  (i)      The Committee may, at or after grant, condition the
         receipt of any payment in respect of any award or the transfer of any
         shares subject to an award on the satisfaction of a six-month holding
         period, if such holding period is required for compliance with Section
         16 under the Exchange Act.

SECTION 14. EFFECTIVE DATE OF PLAN.

         The Plan shall be effective upon adoption by the Board (the "Effective
Date"), subject to approval by the holders of a majority of the votes of the
Corporation's capital stock.

SECTION 15. TERM OF PLAN.

         No Stock Option, Stock Appreciation Right, Restricted Stock award,
Other Stock-Based Award or award of Outside Director Restricted Stock award
shall be granted pursuant to the Plan on or after the tenth anniversary of the
Effective Date of the Plan, but awards granted prior to such tenth anniversary
may be extended beyond that date.

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