Document:

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                                                                     Exhibit 4.7

REGISTERED                                                            REGISTERED

THIS NOTE IS A REGISTERED GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE OF A DEPOSITARY. UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW
YORK) TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH
OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY AND ANY PAYMENT HEREON IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY A PERSON IS WRONGFUL SINCE THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

No. 1                                                        CUSIP NO. 58155QAA1

                              McKESSON CORPORATION

                        7 3/4% NOTE DUE FEBRUARY 1, 2012

               McKesson Corporation, a Delaware corporation (the "Issuer," which
term includes any successor corporation under the Indenture hereinafter referred
to), for value received, hereby promises to pay to, Cede & Co., or registered
assigns, the principal sum of Four Hundred Million Dollars ($400,000,000) on
February 1, 2012 and to pay interest on said principal sum from January 29,
2002, or from the most recent interest payment date to which interest has been
paid or duly provided for, semi-annually in arrears on February 1 and August 1,
(each such date, an "Interest Payment Date") of each year commencing on August
1, 2002, at the rate of 7 3/4% per annum until the principal hereof shall have
become due and payable.

               The amount of interest payable on any Interest Payment Date shall
be computed on the basis of a 360-day year comprised of twelve 30-day months. In
the event that any date on which the principal or interest payable on this Note
is not a Business Day, then payment of principal or interest payable on such
date will be made on the next succeeding day that is a Business Day (and without
any interest or other payment in respect of such delay). The interest
installment so payable, and punctually paid or duly provided for, on any
Interest Payment Date will, as provided in the Indenture (referred to on the
reverse hereof) be paid to the person in whose name this Note is registered at
the close of business on the record date for such interest installment, which
shall be the close of business on the

<PAGE>

immediately preceding January 15 and July 15 prior to such Interest Payment
Date, as applicable. Any such interest installment not punctually paid or duly
provided for shall forthwith cease to be payable to the registered holders on
such record date and may be paid to the person in whose name this Note is
registered at the close of business on a subsequent record date (which shall be
not less than five Business Days prior to the date of payment of such defaulted
interest), notice whereof shall be given by mail by or on behalf of the Issuer
to the registered holders of Notes not less than 15 days preceding such
subsequent record date, all as more fully provided in the Indenture. The
principal of and the interest on this Note shall be payable at the office or
agency of the Issuer maintained for that purpose in any coin or currency of the
United States of America that at the time of payment is legal tender for payment
of public and private debts; provided, however, that payment of interest may be
made at the option of the Issuer by check mailed to the person entitled thereto
at such address as shall appear in the registry books of the Issuer; provided,
further that for so long as this Note is represented by a Registered Global
Security, payment of principal, premium, if any, or interest on this Note may be
made by wire transfer to the account of the Depositary or its nominee.

               Unless the certificate of authentication hereon has been executed
by or on behalf of the Trustee (as defined below) under the Indenture (as
defined below), by the manual signature of one of its authorized officers, this
Note shall not be entitled to any benefit under the Indenture or be valid or
obligatory for any purpose.

               Capitalized terms used in this Note which are defined in the
Indenture shall have the respective meanings assigned to them in the Indenture.

               The provisions of this Note are continued on the reverse side
hereof and such continued provisions shall for all purposes have the same effect
as though fully set forth at this place.

                                       2
<PAGE>

               IN WITNESS WHEREOF, the Issuer has caused this instrument to be
duly executed, manually or in facsimile, and an imprint or facsimile of its
corporate seal to be imprinted hereon.

                                        McKESSON CORPORATION

                                        By: /s/    Nigel A. Rees
                                            ------------------------------------
                                            Name:  Nigel A. Rees
                                            Title: Vice President and Controller

Attest:

By: /s/    Glenette E. Babb
    ------------------------------------
    Name:  Glennette E. Babb
    Title: Assistant Secretary

CERTIFICATE OF AUTHENTICATION
This is one of the Securities
referred to in the within-mentioned
Indenture.

THE BANK OF NEW YORK
  as Trustee

By: /s/    Michael Pitfick
    ------------------------------------
    Authorized Signatory

Dated:     January 29, 2002
      ----------------------------------

                                       3
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                         [FORM OF REVERSE SIDE OF NOTE]

               This Note is one of a duly authorized series of securities (the
"Securities") of the Issuer designated as its 7 3/4% Notes due February 1, 2012
(the "Notes"). The Securities are all issued or to be issued under and pursuant
to an Indenture, dated as of January 29, 2002 (the "Indenture"), duly executed
and delivered between the Issuer and The Bank of New York, a New York banking
corporation (the "Trustee," which term includes any successor Trustee with
respect to the Securities under the Indenture), to which the Indenture and all
indentures supplemental thereto reference is hereby made for a statement of the
respective rights thereunder of the Issuer, the Trustee and the holders of the
Securities and the terms upon which the Notes are to be authenticated and
delivered. The terms of individual series of Securities may vary with respect to
interest rate or interest rate formulas, issue dates, maturity, redemption,
repayment, currency of payment and otherwise.

               The Notes are issuable only as Registered Securities in minimum
denominations of $1,000 and integral multiples of $1,000 in excess thereof. As
provided in the Indenture and subject to certain limitations therein set forth,
the Notes are exchangeable for a like aggregate principal amount of Notes as
requested by the holder surrendering the same.

               Except as set forth below, this Note is not redeemable and is not
entitled to the benefit of a sinking fund or any analogous provision.

               This Note is redeemable, in whole or in part, at the option of
the Issuer, at any time at a redemption price equal to the greater of (i) 100%
of its principal amount and (ii) as determined by the Quotation Agent, the sum
of the present values of the remaining scheduled payments of principal and
interest thereon (not including any portion of those payments of interest
accrued as of the date of redemption) discounted to the date of redemption on a
semi-annual basis (assuming a 360-day year consisting of twelve 30-day months)
at the Adjusted Treasury Rate plus 30 basis points, plus, in each case, accrued
interest thereon to the date of redemption. The Holder of this Note will receive
notice thereof by first-class mail at least 30 and not more than 60 days prior
to the date fixed for redemption. Unless the Issuer defaults in payment of the
redemption price, on and after the redemption date, interest will cease to
accrue on the Notes or portions thereof called for redemption.

               "Adjusted Treasury Rate" means, with respect to any date of
redemption, the rate per annum equal to the semi-annual equivalent yield to
maturity of the Comparable Treasury Issue, assuming a price for the Comparable
Treasury Issue (expressed as a percentage of its principal amount) equal to the
Comparable Treasury Price for that date of redemption.

                                       4
<PAGE>

               "Comparable Treasury Issue" means the United States Treasury
security selected by the Quotation Agent as having a maturity comparable to the
remaining term of the Note that would be utilized, at the time of selection and
in accordance with customary financial practice, in pricing new issues of
corporate debt securities of comparable maturity to the remaining term of the
Note.

               "Comparable Treasury Price" means, with respect to any date of
redemption, (i) the average of the Reference Treasury Dealer Quotations for the
date of redemption, after excluding the highest and lowest Reference Treasury
Dealer Quotations, or (ii) if the Trustee obtains fewer than three Reference
Treasury Dealer Quotations, the average of all such Reference Treasury Dealer
Quotations.

               "Quotation Agent" means J.P. Morgan Securities Inc. or another
Reference Treasury Dealer appointed by the Issuer.

               "Reference Treasury Dealer" means (i) each of J.P. Morgan
Securities Inc. and Banc of America Securities LLC and their respective
successors; provided, however, that if either of the foregoing shall cease to be
a primary U.S. Government securities dealer in New York City (a "Primary
Treasury Dealer"), the Issuer shall substitute another Primary Treasury Dealer;
and (ii) any other Primary Treasury Dealer selected by the Issuer.

               "Reference Treasury Dealer Quotations" means, with respect to
each Reference Treasury Dealer and any date of redemption, the average, as
determined by the Trustee, of the bid and asked prices for the Comparable
Treasury Issue (expressed in each case as a percentage of its principal amount)
quoted in writing to the Trustee by that Reference Treasury Dealer at 5:00 p.m.,
New York City time, on the third business day preceding that date of redemption.

               If an Event of Default with respect to the Notes shall occur and
be continuing, the principal of all the Notes may be declared due and payable in
the manner and with the effect provided in the Indenture.

               The Indenture contains provisions permitting the Issuer and the
Trustee, with the consent of the holders of not less than a majority in
aggregate principal amount of the Senior Securities or Subordinated Securities,
as the case may be, of all series issued under such Indenture then outstanding
and affected (each voting as one class), to add any provisions to, or change in
any manner, eliminate or waive any of the provisions of, such Indenture or
modify in any manner the rights of the holders of the Securities of each series
or Coupons so affected; provided that the Issuer and the Trustee may not,
without the consent of the holder of each Outstanding Security affected there-
by, (i) extend the final maturity of the principal of any Security or reduce the
principal

                                       5
<PAGE>

amount thereof or premium thereon, if any, or reduce the rate or extend the time
of payment of interest thereon, or reduce any amount payable on redemption
thereof or change the currency in which the principal thereof (other than as
otherwise may be provided with respect to such series), premium, if any, or
interest thereon is payable or reduce the amount of the principal of any
Original Issue Discount Security that is payable upon acceleration or provable
in bankruptcy, or in the case of Subordinated Securities of any series, modify
any of the subordination provisions or the definition of "Senior Indebtedness"
relating to such series in a manner adverse to the holders of such Subordinated
Securities, or alter certain provisions of the Indenture relating to Securities
not denominated in Dollars or the Judgment Currency of such Securities or impair
or affect the right of any Securityholder to institute suit for the enforcement
of any payment thereof when due or, if the Securities provide therefor, any
right of repayment at the option of the Securityholder or (ii) reduce the
aforesaid percentage in principal amount of Securities of any series issued
under the Indenture, the consent of the holders of which is required for any
such modification. It is also provided in the Indenture that, with respect to
certain defaults or Events of Default regarding the Securities of any series,
the holders of a majority in aggregate principal amount Outstanding of the
Securities of each such series, each such series voting as a separate class (or,
of all Securities, as the case may be voting as a single class) may under
certain circumstances waive all defaults with respect to each such series (or
with respect to all the Securities, as the case may be) and rescind and annul a
declaration of default and its consequences, but no such waiver or rescission
and annulment shall extend to or affect any subsequent default or shall impair
any right consequent thereto. The preceding sentence shall not, however, apply
to a default in the payment of the principal of or interest on any of the
Securities.

               No reference herein to the Indenture and no provision of this
Note or of the Indenture shall alter or impair the obligation of the Issuer,
which is absolute and unconditional, to pay the principal of and interest on
this Note at the time, place and rate, and in the coin or currency, herein
prescribed.

               As provided in the Indenture and subject to certain limitations
therein set forth, the transfer of this Note may be registered on the registry
books of the Issuer, upon surrender of this Note for registration of transfer at
the office or agency of the Issuer maintained by the Issuer for such purpose in
the Borough of Manhattan, The City of New York, duly endorsed by, or accompanied
by a written instrument of transfer in form satisfactory to the Issuer and the
Trustee duly executed by, the holder hereof or by its attorney duly authorized
in writing, and thereupon one or more new Notes of authorized denominations and
for the same aggregate principal amount, will be issued to the designated
transferee or transferees.

                                       6
<PAGE>

               No service charge shall be made for any such registration of
transfer or exchange, but the Issuer may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
therewith.

               Prior to due presentment of this Note for registration of
transfer, the Issuer, the Trustee and any agent of the Issuer or the Trustee may
treat the person in whose name this Note is registered as the owner hereof for
all purposes, whether or not this Note be overdue, and neither the Issuer, the
Trustee nor any such agent shall be affected by notice to the contrary.

               THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK, INCLUDING, WITHOUT LIMITATION, SECTION 5-1401
OF THE NEW YORK GENERAL OBLIGATIONS LAW.

                                       7
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                [FORM OF SCHEDULE FOR ENDORSEMENTS ON REGISTERED
            GLOBAL SECURITIES TO REFLECT CHANGES IN PRINCIPAL AMOUNT]

                                   Schedule A

           Changes to Principal Amount of Registered Global Securities

<TABLE>
<CAPTION>
              Principal Amount
                  of Notes
          by which this Registered         Remaining
          Global Security is to be         Principal
           Reduced or Increased,         Amount of this
               and Reason for              Registered
Date       Reduction or Increase         Global Security     Notation Made By
----      ------------------------       ---------------     ----------------
<S>       <C>                            <C>                 <C>

</TABLE>

                                       8<PAGE>

                                                                   Exhibit 10.1

                              MCKESSON CORPORATION

                   1999 STOCK OPTION AND RESTRICTED STOCK PLAN

                       (As Amended Through July 31, 2001)

        1. Establishment, Purpose and Definitions.

           (a) There is hereby adopted the McKesson Corporation 1999 Stock
Option and Restricted Stock Plan (the "Plan").

           (b) The purpose of this Plan is to provide a means whereby eligible
employees of McKesson Corporation (the "Company") and its affiliates may be
given an opportunity to purchase shares of the common stock ($0.01 par value) of
the Company (the "Stock") pursuant to options, which will not qualify as
"incentive stock options" under Section 422 of the Internal Revenue Code, as
amended (the "Code"), and by providing participants with grants of restricted
shares of Stock ("Restricted Stock") in accordance with the terms and conditions
set forth herein.

        2. Stock Subject to the Plan.

           (a) The number of shares of Stock available for the grant of awards
hereunder shall be 32,700,000 (all such shares shall be subject to equitable
adjustment as provided herein). The maximum number of shares of Stock that may
be granted to any individual in the form of options during any plan year shall
not exceed 600,000; in each case, such maximum number shall be subject to
equitable adjustment as provided herein.

           As the Committee (as hereinafter defined) may determine from time to
time, the Stock may consist either in whole or in part of shares of authorized
but unissued Stock, or shares of authorized and issued Stock reacquired by the
Company and held in its treasury. If an option is surrendered for cash or for
any other reason (except surrender for shares of Stock) ceases to be exercisable
in whole or in part, the shares which were subject to such option but as to
which the option had not been exercised shall continue to be available for
grants of stock options under the Plan. If any shares of Stock underlying
Restricted Stock grants shall be reacquired by the Company pursuant to the
termination provisions described herein or in the instruments evidencing the
making of such Restricted Stock grants, such shares shall again be available for
grant of Restricted Stock awards under the Plan. Prior to the granting of
awards, the Company shall be under no obligation to reserve or retain in its
treasury any particular number of shares of Stock at any time, and no particular
shares of Stock, whether issued or held as treasury Stock, shall be identified
as being available for future awards under the Plan.

           (b) In the event that the Committee shall determine that any dividend
or other distribution (whether in the form of cash, stock, or other property),
recapitalization, stock split,

<PAGE>

reverse stock split, reorganization, merger, consolidation, spin-off,
combination, repurchase, or share exchange, or other similar corporate
transaction or event, affects the Stock such that an adjustment is appropriate
in order to preserve (but not increase) the rights of participants under the
Plan, then the Committee shall make such equitable changes or adjustments as it
deems necessary or appropriate to any or all of (i) the number and kind of
shares which may thereafter be issued in connection with respect to both
Restricted Stock and option awards, (ii) the number and kind of shares issued in
respect of outstanding awards, and (iii) the exercise price relating to any
options.

        3. Eligibility.

           Persons who shall be eligible to have granted to them awards provided
for by the Plan shall be such key employees of the Company and its affiliates as
the Committee, in its sole discretion, shall designate from time to time.

        4. Administration of the Plan.

           (a) The Plan shall be administered by a committee (the "Committee")
consisting of not less than two directors of the Company to be appointed by the
Board each of whom a "non-employee director" within the meaning of Rule 16b-3
under the Exchange Act or such other committee as is established by the Board.

           (b) The Committee may from time to time determine which key employees
of the Company and its affiliates shall be granted awards under the Plan, the
terms thereof, and the number of shares covered by an option or the number of
shares of Restricted Stock to be granted.

           (c) The Committee shall have the sole authority, in its absolute
discretion, to adopt, amend, and rescind such rules and regulations as, in its
opinion, may be advisable in the administration of the Plan, to construe and
interpret the Plan, the rules and regulations, and the instruments evidencing
awards granted under the Plan and to make all other determinations deemed
necessary or advisable for the administration of the Plan. All decisions,
determinations, and interpretations of the Committee shall be final and binding
on all participants and other interested parties.

        5. Stock Options and Stock Appreciation Rights.

           (a) The Option Price.

           The exercise price of each option shall not be less than the fair
market value of the Stock covered by such option on the date the option is
granted. Such fair market value shall, if the Stock is not listed or admitted to
trading on a stock exchange, be the mean between the lowest reported bid price
and highest reported asked price of the Stock on the date the option is granted
in the over-the-counter market, as reported by any publication of general
circulation selected by the Company which regularly reports the market price of
the Stock in such market, or, if the Stock is then listed or admitted to trading
on any stock exchange, the composite closing

                                       2
<PAGE>

price on such day as reported in the Wall Street Journal. Such price shall be
subject to adjustment as provided in paragraph 2(b) hereof.

           (b) Terms and Conditions of Options.

               (i) Each option granted pursuant to the Plan shall be evidenced
by a written grant agreement (the "Agreement") executed by the Company and the
person to whom such option is granted which shall provide such terms and
conditions as the Committee may determine, in its sole discretion.

               (ii) Unless otherwise provided in the Agreement, the term of each
option shall be for no more than ten years and three months.

               (iii) The Agreement may contain such other terms, provisions, and
conditions as may be determined by the Committee (not inconsistent with this
Plan) including, without limitation, provisions relating to stock appreciation
rights ("SARs") with respect to options granted hereunder. Unless otherwise
provided in the Agreement, the Committee may, in its sole discretion, extend the
post-termination exercise period with respect to an option (but not beyond the
original term of such option).

               (iv) The Committee shall have the authority to accelerate the
exercisability of any outstanding option at such time and under such
circumstances as it, in its sole discretion, deems appropriate.

           (c) Stock Appreciation Rights.

           The Committee may, under such terms and conditions as it deems
appropriate, authorize the surrender by an optionee of all or part of an
unexercised option and authorize a payment in consideration thereof of an amount
equal to the difference obtained by subtracting the option price of the shares
then subject to exercise under such option from the fair market value of the
Stock represented by such shares on the date of surrender, provided that the
Committee determines that such settlement is consistent with the purpose of the
Plan. Such payment may be made in shares of Stock valued at their fair market
value on the date of surrender of such option or in cash, or partly in shares
and partly in cash. Acceptance of such surrender and the manner of payment shall
be in the discretion of the Committee. If an option is surrendered for cash, the
shares covered by the surrendered option will thereafter be available for grant
under the Plan to the extent permitted under Rule 16b-3 of the Exchange Act.

           (d) Use of Proceeds.

           Proceeds realized from the sale of Stock pursuant to options granted
under the Plan shall constitute general funds of the Company.

        6. Restricted Stock Awards.

           (a) Terms and Conditions.

                                       3
<PAGE>

           Each Restricted Stock grant made pursuant to the Plan shall be
evidenced by an Agreement executed by the Company and the person to whom such
Restricted Stock is granted (the "Grantee"). Each Restricted Stock grant made
under the Plan shall, unless otherwise provided in the Agreement, contain the
following terms, conditions and restrictions and such additional terms,
conditions and restrictions as may be determined by the Committee.

           (b) Restrictions.

           Until the restrictions imposed on any Restricted Stock grant shall
lapse, shares of Stock granted to a participant pursuant to a Restricted Stock
grant:

               (i) Shall not be sold, assigned, transferred, pledged,
hypothecated, or otherwise disposed of, and

               (ii) Shall, if the Grantee's continuous employment with the
Company shall terminate for any reason, unless otherwise provided in the
Agreement, be returned to the Company forthwith, and all the rights of the
Grantee to such shares shall immediately terminate; provided that if the
Committee, in its sole discretion, shall within ninety (90) days of such
termination of employment, notify the participant in writing of its decision not
to terminate the Grantee's rights in such shares, then the Grantee shall
continue to be the owner of such shares subject to such continuing restrictions
as the Committee may prescribe in such notice. If the Grantee's interests in the
shares granted pursuant to a Restricted Stock grant shall be terminated, such
Grantee shall forthwith deliver or cause to be delivered to the Secretary of the
Company the certificate(s), if any, previously delivered to the Grantee for such
shares, accompanied by such endorsement(s) and/or instrument(s) of transfer as
may be required by the Secretary of the Company.

           (c) Lapse of Restrictions.

           Except as otherwise provided in the Plan or the Agreement, the
restrictions imposed on any Restricted Stock grant shall commence with the date
of the grant and continue during a period set by the Committee. Notwithstanding
the foregoing, the Committee may accelerate the lapsing of restrictions on a
Restricted Stock grant under such terms and conditions as it may deem
appropriate.

           (d) Restrictive Legend; Certificates May be Held in Custody.

           Each certificate evidencing shares granted pursuant to a Restricted
Stock grant may bear an appropriate legend referring to the terms, conditions
and restrictions described in the Plan and in the instrument evidencing the
Restricted Stock grant. Any attempt to dispose of such shares in contravention
of such terms, conditions and restrictions shall be invalid. The Committee may
enact rules which provide that the certificates evidencing such shares may be
held in custody by a bank or other institution, or that the Company may itself
hold such shares in custody, until restriction thereon shall have lapsed.

                                       4
<PAGE>

           (e) Restrictions upon Making of Restricted Stock Grants.

           The registration or qualification under any federal or state law of
any shares to be granted pursuant to Restricted Stock grants or the resale or
other disposition of any such shares by or on behalf of the Grantees receiving
such shares may be necessary or desirable as a condition of or in connection
with such Restricted Stock grants, and, in any such event, if the Committee in
its sole discretion so determines, delivery of the certificates for such shares
shall not be made until such registration or qualification shall have been
completed.

        7. Change in Control.

           Upon a Change in Control (as hereinafter defined), then
notwithstanding anything herein to the contrary, all options granted under the
Plan that are outstanding at the time of such Change in Control shall become
immediately exercisable in full and all restrictions with respect to shares of
Restricted Stock shall lapse and such shares shall become fully vested and
exercisable.

           A "Change in Control" of the Company shall be deemed to have occurred
if any of the events set forth in any one of the following paragraphs shall
occur:

               (i) Any "person" (as such term is used in sections 13(d) and
14(d) of the Exchange Act), excluding the Company or any of its affiliates, a
trustee or any fiduciary holding securities under an employee benefit plan of
the Company or any of its affiliates, an underwriter temporarily holding
securities pursuant to an offering of such securities or a company owned,
directly or indirectly, by stockholders of the Company in substantially the same
proportions as their ownership of the Company, is or becomes the "beneficial
owner" (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of securities of the Company representing 30% or more of the
combined voting power of the Company's then outstanding securities; or

               (ii) During any period of not more than two consecutive years,
individuals who at the beginning of such period constitute the Board and any new
director (other than a director designated by a Person who has entered into an
agreement with the Company to effect a transaction described in clause (i),
(iii) or (iv) of this paragraph) whose election by the Board or nomination for
election by the Company's stockholders was approved by a vote of at least
two-thirds (2/3) of the directors then still in office who either were directors
at the beginning of the period or whose election or nomination for election was
previously so approved, cease for any reason to constitute a majority thereof;
or

               (iii) The shareholders of the Company approve a merger or
consolidation of the Company with any other company, other than (A) a merger or
consolidation which would result in the voting securities of the Company
outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into

                                       5
<PAGE>

voting securities of the surviving entity), in combination with the ownership of
any trustee or other fiduciary holding securities under an employee benefit plan
of the Company, at least 50% of the combined voting power of the voting
securities of the Company or such surviving entity outstanding immediately after
such merger or consolidation, or (B) a merger or consolidation effected to
implement a recapitalization of the Company (or similar transaction) in which no
person acquires more than 50% of the combined voting power of the Company's then
outstanding securities; or

               (iv) The shareholders of the Company approve a plan of complete
liquidation of the Company or an agreement for the sale or disposition by the
Company of all or substantially all of the Company's assets.

           Notwithstanding the foregoing, no Change in Control shall be deemed
to have occurred if there is consummated any transaction or series of integrated
transactions immediately following which the holders of the Stock immediately
prior to such transaction or series of transactions continue to have the same
proportionate ownership in an entity which owns all or substantially all of the
assets of the Company immediately prior to such transaction or series of
transactions.

        8. Amendment and Termination of the Plan.

           The Board at any time and from time to time may suspend, terminate,
modify or amend the Plan. No suspension, termination, modification or amendment
of the Plan may adversely affect any award previously granted without the
written consent of the Grantee.

        9. Assignability.

           Each option award granted pursuant to this Plan shall, during the
participant's lifetime, be exercisable only by him. No award nor any right
thereunder shall be transferable by the participant by operation of law or
otherwise other than by will, the laws of descent and distribution or pursuant
to a qualified domestic relations order as defined in the Code or the Employee
Retirement Income Security Act of 1974, as amended.

       10. Payment Upon Exercise.

           Payment of the purchase price upon exercise of any option granted
under this Plan shall be made in cash; provided that the Committee, in its sole
discretion, may permit an option holder to pay the option price, in whole or in
part, by tendering to the Company shares of Stock owned by the option holder,
and having a fair market value equal to the option price. The fair market value
of such Stock shall be determined by the Committee as it deems appropriate, or
as may be required in order to comply with any applicable law or regulation.

       11. Effective Date and Duration of the Plan.

           The Plan shall become effective upon its adoption by the Board of
Directors. Unless sooner terminated, the Plan shall remain in effect until
terminated by action of the Board,

                                       6
<PAGE>

provided, however, that the duration of the Plan shall in no event exceed ten
years from the date of the adoption of the Plan by the Board. Termination of the
Plan shall not affect any awards previously granted pursuant thereto, which
shall remain in effect until their restrictions shall have lapsed (with respect
to Restricted Stock grants) or until exercised (with respect to option grants)
all in accordance with their terms.

       12. Agreement by Participant Regarding Withholding Taxes.

           If the Committee shall so require, as a condition of exercise of an
option or SAR or upon the lapsing of restrictions imposed on Restricted Stock
(each a "Tax Event"), each participant shall agree that no later than the date
of the Tax Event, the participant will pay to the Company or make arrangements
satisfactory to the Committee regarding payment of any federal, state or local
taxes of any kind required by law to be withheld upon the Tax Event.
Alternatively, the Committee may provide, in its sole discretion, that a
participant may elect, to the extent permitted or required by law, to have the
Company deduct federal, state and local taxes of any kind required by law to be
withheld upon the Tax Event from any payment of any kind due to the participant,
including withholding of Shares.

        13. Rights as a Shareholder.

           A participant granted an award hereunder or a transferee of an award
shall have no rights as a shareholder with respect to any shares covered by the
award until the date of the issuance of a stock certificate to him for such
shares. No adjustment shall be made for dividends (ordinary or extraordinary,
whether in cash, securities or other property) or distribution of other rights
for which the record date is prior to the date such stock certificate is issued,
except as otherwise provided in the Plan.

        14. No Rights to Employment.

           Nothing in the Plan or in any award granted or Agreement entered into
pursuant hereto shall confer upon any participant the right to continue in the
employ of, or in an independent contractor relationship with, the Company or any
subsidiary or to be entitled to any remuneration or benefits not set forth in
the Plan or such Agreement or to interfere with or limit in any way the right of
the Company or any such subsidiary to terminate such participant's employment.
Awards granted under the Plan shall not be affected by any change in duties or
position of a participant as long as such participant continues to be employed
by, or, for awards granted prior to July 25, 2001, in a consultant relationship
with, the Company or any subsidiary.

                                       7

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