Document:

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                                                                     Exhibit 4.2

                             AMENDMENT NO. 1 TO THE
                           FIVE YEAR CREDIT AGREEMENT

                            Dated as of May 29, 2002

                  AMENDMENT NO. 1 TO THE FIVE YEAR CREDIT AGREEMENT among York
International Corporation, a Delaware corporation (the "Borrower"), the banks,
financial institutions and other institutional lenders parties to the Credit
Agreement referred to below (collectively, the "Lenders") and Citibank, N.A., as
administrative agent (the "Agent") for the Lenders.

                  PRELIMINARY STATEMENTS:

                  (1) The Borrower, the Lenders, JPMorgan Chase Bank (as
successor to The Chase Manhattan Bank), as syndication agent, Bank of
Tokyo-Mitsubishi Trust Company, Wachovia Bank, National Association (as
successor to First Union National Bank) and Fleet National Bank, as
documentation agents, JP Morgan Securities, Inc. and Salomon Smith Barney Inc.,
as joint lead arrangers and joint bookrunners, and the Agent have entered into a
Five Year Credit Agreement dated as of May 29, 2001 (the "Credit Agreement").
Capitalized terms not otherwise defined in this Amendment have the same meanings
as specified in the Credit Agreement.

                  (2) The Borrower and the Required Lenders have agreed to amend
the Credit Agreement as hereinafter set forth.

                  AGREEMENT:

                  SECTION 1. Amendments to Credit Agreement. The Credit
Agreement is, effective as of the date hereof and subject to the satisfaction of
the conditions precedent set forth in Section 2, hereby amended as follows:

                  (a) The definition of "Applicable Margin" in Section 1.01 is
         amended by deleting from the grid opposite Level 4 the figure "0.875%"
         and substituting therefor the figure "1.050%".

                  (b) The definition of "EBITDA" in Section 1.01 is amended in
         full to read as follows:

                  "EBITDA" means, for any Person for any period, net income (or
         net loss) plus the sum of (a) interest expense, (b) income tax expense,
         (c) depreciation expense, (d) amortization expense and (e) any
         extraordinary or non-recurring losses (inclusive of losses related to
         Statement of Financial Accounting Standards No. 142 and No. 144 in an
         aggregate amount not to exceed $350,000,000) minus any extraordinary or
         non-recurring gains, for such period in each case determined for such
         Person in accordance with GAAP.
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                  (c) The definition of "Net Worth" in Section 1.01 is amended
         in full to read as follows:

                  "Net Worth" means, on any date, all amounts which, in
         accordance with GAAP, would be included under stockholders' equity on a
         Consolidated balance sheet of the Borrower and its Subsidiaries at such
         date, adjusted to exclude (x) accumulated foreign currency translation
         adjustments and (y) accumulated losses related to Statement of
         Financial Accounting Standards No. 142 and No. 144 in an aggregate
         amount not to exceed $350,000,000.

                  (d) Section 1.03 is amended in full to read as follows:

         SECTION 1.03. Accounting Terms. All accounting terms not specifically
defined herein shall be construed in accordance with generally accepted
accounting principles consistent with those applied in the preparation of the
financial statements of the Borrower as of December 31, 2001, as modified by the
Borrower's adoption of Statement of Financial Accounting Standards No. 142 and
No. 144 ("GAAP").

         SECTION 2. Conditions of Effectiveness. This Amendment shall become
effective as of the date first above written, provided that, on or before May
29, 2002, the Agent shall have received counterparts of this Amendment executed
by the Borrower and the Required Lenders or, as to any of the Lenders, advice
satisfactory to the Agent that such Lender has executed this Amendment. This
Amendment is subject to the provisions of Section 8.01 of the Credit Agreement.

         SECTION 3. Representations and Warranties of the Borrower. The Borrower
represents and warrants as follows:

                  (a) The Borrower is a corporation duly organized, validly
         existing and in good standing under the laws of the State of Delaware.

                  (b) The execution, delivery and performance by the Borrower of
         this Amendment and the Credit Agreement and the Notes, as amended
         hereby, are within the Borrower's corporate powers, have been duly
         authorized by all necessary corporate action and do not (i) contravene
         the Borrower's charter or by-laws or (ii) law or any contractual
         restriction binding on or affecting the Borrower.

                  (c) No authorization or approval or other action by, and no
         notice to or filing with, any governmental authority or regulatory body
         or any other third party is required for the due execution, delivery or
         performance by the Borrower of this Amendment or the Credit Agreement
         and the Notes, as amended hereby.

                  (d) This Amendment has been duly executed and delivered by the
         Borrower. This Amendment and the Credit Agreement and the Notes, as
         amended hereby, are legal, valid and binding obligations of the
         Borrower, enforceable against the Borrower in accordance with their
         respective terms, except as enforceability may be limited by applicable
         bankruptcy, insolvency, reorganization, moratorium or similar laws
         affecting
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         the enforcement of creditors' rights generally and by general equitable
         principles (whether enforcement is sought by proceedings in equity or
         at law).

                  (e) There is no pending or, to the knowledge of the Borrower,
         threatened action, suit, investigation, litigation or proceeding,
         including, without limitation, any Environmental Action, affecting the
         Borrower or any of its Subsidiaries before any court, governmental
         agency or arbitrator that (i) could be reasonably expected to have a
         Material Adverse Effect or (ii) purports to affect the legality,
         validity or enforceability of this Amendment or the Credit Agreement or
         the Notes, as amended hereby.

                  SECTION 4. Reference to and Effect on the Credit Agreement and
the Notes. (a) On and after the effectiveness of this Amendment, each reference
in the Credit Agreement to "this Agreement", "hereunder", "hereof" or words of
like import referring to the Credit Agreement, and each reference in the Notes
to "the Credit Agreement", "thereunder", "thereof" or words of like import
referring to the Credit Agreement, shall mean and be a reference to the Credit
Agreement, as amended by this Amendment.

                  (b) The Credit Agreement and the Notes, as specifically
amended by this Amendment, are and shall continue to be in full force and effect
and are hereby in all respects ratified and confirmed.

                  (c) The execution, delivery and effectiveness of this
Amendment shall not, except as expressly provided herein, operate as a waiver of
any right, power or remedy of any Lender or the Agent under the Credit
Agreement, nor constitute a waiver of any provision of the Credit Agreement.

                  SECTION 5. Costs and Expenses. The Borrower agrees to pay on
demand all costs and expenses of the Agent in connection with the preparation,
execution, delivery and administration, modification and amendment of this
Amendment and the other instruments and documents to be delivered hereunder
(including, without limitation, the reasonable fees and expenses of counsel for
the Agent) in accordance with the terms of Section 8.04 of the Credit Agreement.

                  SECTION 6. Execution in Counterparts. This Amendment may be
executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute but one and the same
agreement. Delivery of an executed counterpart of a signature page to this
Amendment by telecopier shall be effective as delivery of a manually executed
counterpart of this Amendment.

                  SECTION 7. Governing Law. This Amendment shall be governed by,
and construed in accordance with, the laws of the State of New York.
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                  IN WITNESS WHEREOF, the parties hereto have caused this
Amendment to be executed by their respective officers thereunto duly authorized,
as of the date first above written.

                                                  YORK INTERNATIONAL CORPORATION

                                                  By _______________________
                                                     Title:

ACCEPTED and AGREED:

CITIBANK, N.A., as Agent and as Lender

     By_______________________
     Title:

JPMORGAN CHASE BANK

By_______________________
     Title:

BANK OF TOKYO-MITSUBISHI TRUST COMPANY

By_______________________
     Title:

WACHOVIA BANK, NATIONAL ASSOCIATION

By_______________________
     Title:

FLEET NATIONAL BANK

By_______________________
     Title:
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NORDEA BANK FINLAND PLC
(formerly known as Merita Bank PLC)

By_______________________
     Title:

By_______________________
     Title:

THE BANK OF NOVA SCOTIA

By_______________________
     Title:

BNP PARIBAS

By_______________________
     Title:

By_______________________
     Title:

DANSKE BANK

By_______________________
     Title:

ING BANK

By_______________________
     Title:

PNC BANK, N.A.

By_______________________
     Title:

THE ROYAL BANK OF SCOTLAND PLC

By_______________________
     Title:
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ALLFIRST BANK

By_______________________
     Title:

INTESABCI - NEW YORK BRANCH

By_______________________
     Title:

THE BANK OF NEW YORK

By_______________________
     Title:

DRESDNER BANK LATEINAMERIKA AG, MIAMI AGENCY

By_______________________
     Title:<PAGE>
                                                                    Exhibit 10.1

                         YORK INTERNATIONAL CORPORATION

                  AMENDED AND RESTATED 2002 OMNIBUS STOCK PLAN

1.      ESTABLISHMENT AND PURPOSE

         York International Corporation hereby establishes the YORK
INTERNATIONAL CORPORATION 2002 OMNIBUS STOCK PLAN (the "Plan"). The Plan permits
the grant of incentive stock options, non-statutory stock options, restricted
stock awards, stock appreciation rights, performance awards, dividend
equivalents and other stock units or any combination of the foregoing.

        The purpose of the Plan is to promote the growth and profitability of
York International Corporation (the "Company") by (i) providing directors,
certain officers and other employees of the Company and its subsidiaries with
incentives to improve stockholder value and contribute to the success of the
Company, and (ii) enabling the Company to attract, retain and reward the best
available persons for positions of substantial responsibility.

2.      DEFINITIONS

        "Cause" means the termination of employment of an employee for (i)
providing the Company with materially false representations relied upon by the
Company in furnishing information to stockholders, a stock exchange or the
Securities and Exchange Commission, (ii) maintaining an undisclosed,
unauthorized and material conflict of interest in the discharge of duties owed
to the Company, (iii) misconduct causing a serious violation by the Company of
state or federal laws, (iv) theft of Company funds or assets, or (v) conviction
of a crime involving moral turpitude.

        "Change in Control" shall mean

        (a) The acquisition by any individual, entity or group (within the
meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934,
as amended (the "Exchange Act")) (a "Person") of beneficial ownership (within
the meaning of Rule 13d-3 promulgated under the Exchange Act) of 30% or more of
the then outstanding shares of common stock of the Company (the "Outstanding
Company Common Stock"); provided, however, that for purposes of this subsection
(a), the following acquisitions shall not constitute a Change in Control: (i)
any acquisition directly from the Company, (ii) any acquisition by the Company,
(iii) any acquisition by any employee benefit plan (or related trust) sponsored
or maintained by the Company or any corporation controlled by the Company, or
(iv) any acquisition by any corporation pursuant to a transaction which complies
with clauses (A) and (B) of subsection (c) hereof; or

        (b) Individuals who, as of the date of the most recent amendment hereof,
constitute the Board of Directors (the "Incumbent Board") cease for any reason
to constitute at least a majority of the Board; provided, however, that any
individual becoming a director subsequent to the date of the most recent
amendment hereof whose election, or nomination for election by the Company's
shareholders, was

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approved by a vote of at least a majority of the directors then comprising the
Incumbent Board shall be considered as though such individual were a member of
the Incumbent Board, but excluding, for this purpose, any such individual whose
initial assumption of office occurs as a result of an actual or threatened
election contest with respect to the election or removal of directors or other
actual or threatened solicitation of proxies or consents by or on behalf of a
person or entity other than the Board; or

        (c) Consummation of a reorganization, merger or consolidation involving
the Company or any subsidiary of the Company or sale or other disposition of all
or substantially all of the assets of the Company (a "Business Combination"), in
each case, unless, following such Business Combination, (A) either (i) all or
substantially all of the individuals and entities who were the beneficial
owners, respectively, of the Outstanding Company Common Stock immediately prior
to such Business Combination beneficially own, directly or indirectly, more than
50% of, respectively, the then outstanding shares of common stock and the
combined voting power of the then outstanding voting securities entitled to vote
generally in the election of directors, as the case may be, of the corporation
resulting from such Business Combination (including, without limitation, a
corporation which as a result of such transactions owns the Company or all or
substantially all of the Company's assets either directly or through one or more
subsidiaries) in substantially the same proportions as their ownership
immediately prior to such Business Combination of the Outstanding Company Common
Stock or (ii) at least a majority of the members of the board of directors of
the corporation resulting from such Business Combination were members of the
Incumbent Board at the time of the execution of the initial agreement, or at the
time of the action of the Board, providing for such Business Combination and (B)
no Person (excluding any corporation resulting from such Business Combination or
any employee benefit plan (or related trust) of the Company or such corporation
resulting from such Business Combination) beneficially owns, directly or
indirectly, 30% or more of, respectively, the then outstanding shares of common
stock of the corporation resulting from such Business Combination or the
combined voting power of the then outstanding voting securities of such
corporation except to the extent that such ownership existed prior to the
Business Combination; or

        (d)     A complete liquidation or dissolution of the Company.

        "Code" means the Internal Revenue Code of 1986, as amended, and any
successor statue.

        "Disability" means the inability to perform the duties assigned by the
Company to the participant by reason of any medically determined physical or
mental impairment which can be expected to result in death or which has lasted
or can be expected to last for a continuous period of not less than twelve
months.

        "Fair Market Value" of a share of the Company's Common Stock for any
purpose shall mean the closing price of the Common Stock on the exchange where
the Common Stock is principally traded. If the Common Stock is not traded on an
exchange, but is traded in the over-the-counter market, Fair Market Value on the
relevant date shall mean the last sale price reported by the National
Association of Securities Dealers Automated Quotation Systems ("NASDAQ"), if the
Common Stock is included in the National Market System or the average of the
closing bid and asked

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prices reported on the preceding day on which such prices were reported. If the
Common Stock is not traded on an exchange or reported by NASDAQ, the Board of
Directors shall determine Fair Market Value. In the case of incentive stock
options, the Board's determination shall conform to the Treasury Regulations
under Section 422 of the Code.

        "Retirement" means termination of employment on or after the date the
participant either attains 62 years of age or attains 55 years of age and
completes 5 years of service or a retirement with the approval of the Board of
Directors.

        "Subsidiary" and "subsidiaries" mean only a corporation or corporations
within the meaning of the definition of "subsidiary corporation" provided in
Section 424(f) of the Code, or any successor thereto of similar import.

3.      ADMINISTRATION

        The Plan shall be administered by the Compensation Committee appointed
by the Board of Directors, which shall be composed of not less than two
directors of the Company who are both "non-employee directors" and "outside
directors." "Non-employee directors" shall have the meaning set forth in Rule
16b-3 of the Securities and Exchange Commission ("Rule 16b-3") and "outside
directors" shall have the meaning set forth in Treasury Regulation Section
1.162-27(e)(3) or any successor rule.

        The Committee shall, consistent with the provisions of the Plan, be
authorized to (i) select persons to participate in the Plan, (ii) determine all
terms, conditions and restrictions of grants made under the Plan to each
participant, and the conditions and restrictions, if any, subject to which such
grants will be made, (iii) modify, extend or renew outstanding grants, accept
the surrender of outstanding grants and substitute new grants, provided that no
such action shall be taken with respect to any outstanding grant which would
adversely affect the participant without his consent, and further provided that,
except for adjustments pursuant to Section 15, neither the Board of Directors
nor the Committee shall have the authority to reprice any stock option granted
under this Plan or to accept the surrender of an outstanding option in
consideration for the issuance of a new option with a lower exercise price
unless such repricing or issuance has previously been approved by the
stockholders of the Company, (iv) interpret the Plan and (v) adopt, amend, or
rescind such rules and regulations for carrying out the Plan as it may deem
appropriate. Subject to the overall limitation on the number of shares of Common
Stock available under the Plan, the Committee may use available shares of Common
Stock as the form of payment for compensation, grants or rights earned or due
under any other compensation plans or arrangements of the Company or a
subsidiary, including the plans and arrangements of the Company or a subsidiary
assumed in business combinations. The Committee may permit the deferred delivery
of any shares of Common Stock under this Plan, subject to such rules and
procedures as it may establish, which may include provisions for the payment or
crediting of interest or dividend equivalents, and may include converting such
credits into deferred Common Stock equivalents.

        Decisions of the Committee on all matters relating to the Plan shall be
in the Committee's sole discretion and shall be conclusive and binding on all
parties, including the Company, its stockholders and the participants in the
Plan. The

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validity, construction and effect of the Plan and any rules and regulations
relating to the Plan shall be determined in accordance with applicable federal
and state laws and rules and regulations promulgated pursuant thereto.

        Notwithstanding anything to the contrary herein, the Board of Directors
may, in its sole discretion, at any time and from time to time resolve to
administer the Plan. In such event, the term "Committee" used herein shall be
deemed to mean the Board of Directors.

4.      SHARES AVAILABLE FOR THE PLAN; ANNUAL LIMIT ON GRANTS

        The shares of Common Stock with respect to which grants may be made
under the Plan shall be shares currently authorized but unissued or currently
held or subsequently acquired by the Company as treasury shares. Subject to
adjustments as provided in Section 15, as of any date the total number of shares
of Common Stock with respect to which awards may be granted under the Plan shall
be equal to 2,000,000 shares, provided that the number of restricted shares
awarded under the Plan may not exceed 3% of the total number of shares of Common
Stock outstanding at the time of any such award. Subject to adjustments as
contemplated by Section 15, no person may be granted more than 300,000
restricted shares or stock appreciation rights, or options to purchase more than
300,000 shares, during any one calendar year. If any grant under the Plan
expires or terminates unexercised, becomes unexercisable or is forfeited or
otherwise terminated or canceled as to any shares, the shares subject to such
grants shall thereafter be available for further grants under the Plan unless
such shares would not be deemed available for future grants pursuant to Rule
16b-3. If the exercise price of any stock option granted under the Plan is
satisfied by tendering shares of Common Stock to the Company (by either actual
delivery or by attestation), only the number of shares of Common Stock issued
net of the shares of Common Stock tendered shall be deemed to have been granted
for purposes of determining the number of shares of Common Stock available for
grant under the Plan.

5.      PARTICIPATION

        Participation in the Plan shall be limited to directors, officers
(including directors who are officers of the Company), and other employees of
the Company and its subsidiaries who are recommended by the officers and
selected by the Committee. Only directors who are not officers or employees of
the Company shall be eligible to participate in Section 7 of the Plan. No
director who is not an officer of the Company shall be eligible to participate,
except pursuant to Section 7.

          Nothing in the Plan or in any grant thereunder shall confer any right
on an employee to continue in the employ of the Company or shall interfere in
any way with the right of the Company to terminate an employee at any time.

        Stock options, restricted share awards, stock appreciation rights or any
combination thereof may be granted to such persons and for such number of shares
as the Committee shall determine, subject to the limitations in Section 4. A
grant of any type made in any one year to an eligible employee shall neither
guarantee nor

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preclude a further grant of that or any other type to such employee in that year
or subsequent years.

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6.      STOCK OPTIONS

        Subject to the other applicable provisions of the Plan, the Committee
may from time to time grant to eligible participants nonqualified stock options
or incentive stock options as that term is defined in Section 422 of the Code.
The options granted shall be subject to the following terms and conditions:

        (a) Price. The price per share payable upon the exercise of each option
("exercise price") shall not be less than 100% of the Fair Market Value of the
shares on the date the option is granted. Except for adjustments pursuant to
Section 15, the exercise price for any outstanding option granted under the Plan
may not be decreased after the date of grant nor may an outstanding option
granted under the Plan be surrendered to the Company as consideration for the
grant of a new option with a lower exercise price unless previously approved by
the stockholders of the Company.

        (b) Payment. Options may be exercised in whole or in part by payment of
the exercise price of the shares to be acquired. Payment may be made in cash or,
unless otherwise determined by the Committee, in shares of Common Stock (by
either actual delivery of shares or by attestation) or a combination of cash and
shares of Common Stock. The Fair Market Value of shares of Common Stock
delivered on exercise of options shall be determined on the date of exercise.
Shares of Common Stock delivered in payment of the exercise price may be
previously owned shares acceptable to the Committee. A Participant may elect to
pay the exercise price upon the exercise of an Option by authorizing a third
party to sell shares of Common Stock acquired upon exercise of the Option and
remit to the Company a sufficient portion of the sale proceeds to pay the entire
exercise price and any tax withholding resulting from such exercise.

         Unless otherwise determined by the Committee, a participant may also
deliver Common Stock of the Company, including shares acquired upon exercise of
the option, in satisfaction of any amount the Company is required to withhold
for taxes in connection with the exercise of an option subject, if the optionee
is subject to Section 16(b) of the Exchange Act, to such restrictions as may be
imposed from time to time by the Securities and Exchange Commission to comply
with Section 16(b). An election to deliver Common Stock to pay withholding taxes
must be made on or before the date the amount of tax to be withheld is
determined and once made will be irrevocable. The withholding tax obligation
that may be paid by the withholding or delivery of shares may not exceed the
statutory minimum withholding for federal, state and local tax obligations in
connection with the exercise of the option or the sale of shares received upon
exercise of the option. The Fair Market Value of the shares to be withheld or
delivered will be the Fair Market Value on the date as of which the amount of
tax to be withheld is determined.

        (c) Term of Options. The term during which each option may be exercised
shall be determined by the Committee, provided that upon a Change in Control,
all outstanding options shall automatically become immediately exercisable. In
no event shall an option be exercisable more than ten years from the date it is
granted. Prior to the exercise of the option and delivery of the stock
represented thereby, the optionee

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shall not have any rights to receive any dividends or be entitled to any voting
rights on any stock represented by outstanding options.

        (d) Restrictions on Incentive Stock Options. The aggregate Fair Market
Value (determined as of the grant date) of shares of Common Stock with respect
to which all incentive stock options first become exercisable by any participant
in any calendar year under this or any other plan of the Company or any related
or predecessor corporation of the Company or any related corporation (as defined
in the applicable regulations under the Code) may not exceed $100,000 or such
higher amount as may be permitted from time to time under Section 422 of the
Code. To the extent that such aggregate fair market value shall exceed $100,000,
or applicable higher amount, such options shall be treated as options which are
not incentive stock options.

        The exercise price of any incentive stock option granted to a
participant who owns (within the meaning of Section 422(b)(6) of the Code, after
the application of the attribution rules in Section 424(d) of the Code) more
than 10% of the combined voting power of all classes of shares of the Company or
any related corporation shall be not less than 110% of the Fair Market Value of
the Common Stock on the grant date and the term of such option shall not exceed
five years.

        Incentive stock options can only be issued to employees of the Company.

7.      DIRECTOR STOCK OPTIONS

        Each person who is a director of the Company and who is not an officer
or employee of the Company (a "non-employee director") as of immediately
following the election of directors at the Company's annual stockholder meeting,
or who became a non-employee director at any time within six months thereafter,
shall be granted as of such date (or on the next day the New York Stock Exchange
is open for trading) an option exercisable for such number of shares of Common
Stock as shall be approved by the Committee.

        Each option shall terminate, and cease to be exercisable, on the earlier
of the occurrence of: (i) the tenth anniversary of the date of grant of the
option, or (ii) five years following the date on which the grantee is no longer
a director eligible to receive options under this Section (including, but not
limited to, such date as the director resigns or dies).

        The exercise price of each option granted pursuant to this Section shall
not be less than 100% of the Fair Market Value of the shares on the date the
option is granted.

        Each option granted pursuant to this Section shall be exercisable as
follows:

         (a) On or before the first anniversary of the date the option is
granted, the option will not be exercisable with respect to any of the shares
subject to the option, and

         (b) On the first anniversary of the grant date, the option will become
exercisable to the extent of 25% of the shares subject to the option, and to the
extent

                                      -7-
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of an additional 25% of such shares on each subsequent anniversary of the date
of grant, provided that upon a Change in Control any outstanding option shall
automatically become immediately exercisable in full, in accordance with Section
15.

                In addition to the options to be granted to non-employee
directors in the manner set forth above, the Committee may at any time and from
time to time grant stock options to non-employee directors on such terms and
conditions as the Committee may determine, subject to the provisions of Section
6 and the other applicable provisions of the Plan.

8.      RESTRICTED SHARE AWARDS

        Subject to the other applicable provisions of the Plan, the Committee
may at any time and from time to time award shares of Common Stock to such
participants and in such amounts and for such consideration, as it determines.
Each award of shares shall specify the applicable restrictions on such shares,
the duration of such restrictions, and the time or times at which such
restrictions shall lapse, or the performance or other objectives upon the
achievement of which such restrictions shall lapse, with respect to all or a
specified number of shares that are part of the award. The duration of such
restrictions shall not be less than three years, except that, in the case of
restricted shares with performance or other objectives, the duration of such
restrictions shall not be less than one year. The Committee may reduce or
shorten the duration of any restriction applicable to any shares awarded to any
participant under the Plan only in the event of an unusual, non-recurring
situation.

        Restricted shares may be issued at the time of award, subject to
forfeiture if the restrictions do not lapse, or upon lapse of the restrictions.
If shares are issued at the time of the award, the participant may be required
to deposit the certificates with the Company during the period of any
restriction thereon and to execute a blank stock power therefor. Except as
otherwise provided by the Committee, during such period of restriction the
participant shall have all of the rights of a holder of Common Stock, including
but not limited to the rights to receive dividends (or amounts equivalent to
dividends) and to vote. If shares are issued upon lapse of restrictions, the
Committee may provide that the participant will be entitled to receive any
amounts per share pursuant to any dividend or distribution paid by the Company
on its Common Stock to stockholders of record after the award and prior to the
issuance of the shares.

        Except as otherwise provided by the Committee, upon termination of a
grantee's employment due to death or Disability during any period of
restriction, all restrictions on shares awarded to such grantee shall lapse.
Except as otherwise provided by the Committee, on termination of a grantee's
employment for any other reason (including Retirement), all restricted shares
subject to awards made to such grantee shall be forfeited to the Company.

        The Committee may designate whether any award being granted to any
grantee is intended to be "performance-based compensation" as that term is used
in section 162(m) of the Code. Any such awards designated as intended to be
"performance-based compensation" shall be conditioned on the achievement of one
or more performance measures, to the extent required by Code section 162(m). The
performance measures that may be used by the Committee for such awards shall be

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based on any one or more of the following, as selected by the Committee: fully
diluted earnings per share, Corporate or Division earnings before interest and
taxes (with or without a pro forma charge for the cost of capital) in absolute
dollars or as a percentage of sales, revenue, sales, profit after tax, gross
profit, operating profit, unit volume, return on equity, changes in working
capital, return on capital, cash flow, total shareholder return, return on net
capital employed, average net capital as a percent of sales, manufacturing
efficiency, new product development project milestone dates, information
technology systems implementation project milestone dates, cost of quality, and
purchase price variance. For awards under this Section 8 intended to be
"performance-based compensation," the grant of the awards and the establishment
of the performance measures shall be made during the period required under Code
section 162(m).

9. STOCK APPRECIATION RIGHTS

        The Committee may grant stock appreciation rights, entitling the grantee
to receive, in cash or stock, value equal to (or otherwise based on) the excess
of: (a) the Fair Market Value of a specified number of shares of Common Stock at
the time of exercise; over (b) an exercise price established by the Committee
that shall not be less than 100% of the Fair Market Value of the Common Stock on
the date of grant. The stock appreciation rights shall be exercisable in
accordance with such terms and conditions and during such periods as may be
established by the Committee.

10.     WITHHOLDING OF TAXES

        The Company may permit or require, as a condition to any grant under the
Plan or to the delivery of certificates for shares issued hereunder, that the
grantee pay to the Company, in cash or, unless otherwise determined by the
Company, in shares of Company Common Stock valued at Fair Market Value on the
date as of which the withholding tax liability is determined, any federal, state
or local taxes of any kind required by law to be withheld with respect to any
grant or any delivery of shares. The Company, to the extent permitted or
required by law, shall have the right to deduct from any payment of any kind
(including salary or bonus) otherwise due to a grantee any federal, state or
local taxes of any kind required by law to be withheld with respect to any grant
or to the delivery of shares under the Plan, or to retain or sell without notice
a sufficient number of the shares to be issued to such grantee to cover any such
taxes. In the event of a transfer of an option pursuant to Section 12, the
grantee shall remain liable for any tax required to be withheld.

11.     WRITTEN AGREEMENT

        Each person to whom a grant is made under the Plan shall enter into a
written agreement with the Company that shall contain such provisions,
consistent with the provisions of the Plan, as may be established by the
Committee.

12.     TRANSFERABILITY

        To the extent required to comply with Rule 16b-3 and in any event in the
case of an incentive stock option, no option or restricted share award granted
under the Plan shall be transferable by a participant otherwise than by will or
the laws of descent and

                                      -9-
<PAGE>
distribution, or as permitted by this Section 12. The Committee may, in its
discretion, authorize all or a portion of the options granted to a participant
to be transferred to:

         (a) a member of the participant's family;

         (b) a trust or trusts for the exclusive benefit of members of the
participant's family;

         (c) a family partnership, family limited partnership, or family limited
liability partnership or company;

         (d) a charitable or non-profit organization, trust or foundation under
Section 501(c)(3) of the Code; or

         (e) such other person or entity as the Committee may in its discretion
permit.

        An option may be exercised only by the grantee thereof, his permitted
transferee or his or her guardian or legal representative. Subsequent transfers
of options transferred pursuant to this Section 12 shall be prohibited except
those by will or the laws of descent and distribution. Following any permitted
transfer, any transferred options shall continue to be subject to the same terms
and conditions as were applicable immediately prior to transfer and such options
shall be exercisable by the transferee only to the extent and for the periods
that they would have been exercisable by the participant.

13.     LISTING AND REGISTRATION

        If the Company determines that the listing, registration or
qualification upon any securities exchange or under any law of shares subject to
any option or restricted share award is necessary or desirable as a condition
of, or in connection with, the granting of same or the issue or purchase of
shares thereunder, no such option may be exercised in whole or in part and no
restrictions on such restricted share award shall lapse, unless such listing,
registration or qualification is effected free of any conditions not acceptable
to the Company.

        Notwithstanding any other provision of the Plan, the Company shall have
no liability to deliver any shares of Common Stock under the Plan or make any
other distribution of benefits under the Plan unless such delivery or
distribution would comply with all applicable laws (including, without
limitation, the requirements of the Securities Act of 1933) and the applicable
requirements of any securities exchange.

14.     TRANSFER OF EMPLOYEE

        Transfer of an employee from the Company to a subsidiary, from a
subsidiary to the Company, and from one subsidiary to another shall not be
considered a termination of employment. Nor shall it be considered a termination
of employment if an employee is placed on military or sick leave or such other
leave of absence which is considered as continuing intact the employment
relationship; in such a case, the employment relationship shall be continued
until the date when an employee's right to reemployment shall no longer be
guaranteed either by law or contract.

                                      -10-
<PAGE>
15.     ADJUSTMENTS; BUSINESS COMBINATIONS

        In the event of a reorganization, recapitalization, stock split, stock
dividend, combination of shares, merger, share exchange, consolidation,
distribution of assets, or any other change in the corporate structure or shares
of the Company, the Committee shall make such adjustments as it deems
appropriate in the number and kind of shares reserved for issuance under the
Plan, in the number and kind of shares covered by outstanding options, stock
appreciation rights and restricted share awards made under the Plan, and in the
exercise price of outstanding options and stock appreciation rights.

        In the event of any Change in Control, all outstanding options, stock
appreciation rights and restricted share awards shall vest and shall be
exercisable notwithstanding any restriction on vesting or exercise, at a date to
be determined by the Committee not later than the effective date of the
transaction.

16.     TERMINATION AND MODIFICATION OF THE PLAN

        The Board of Directors, without further approval of stockholders may
modify or terminate the Plan, except that no modification shall become effective
without prior approval of the stockholders of the Company if stockholder
approval would be required for continued compliance with Rule 16b-3, or if such
modification would materially increase the benefits to participants under the
Plan, materially increase the number of securities which may be issued under the
Plan, or materially modify the requirements for participation in the Plan.
Except with the approval of the Company's stockholders, no modification may be
made to the provisions of Section 3 or Section 6(a) concerning the repricing of
any outstanding stock option. The Committee shall be authorized to make minor or
administrative modifications to the Plan as well as modifications to the Plan
that may be dictated by requirements of federal or state laws applicable to the
Company or that may be authorized or made desirable by such laws.

17.     LIMITATION ON BENEFITS

        With respect to persons subject to Section 16 of the Exchange Act,
transactions under this Plan are intended to comply with all applicable
conditions of Rule 16b-3 or its successors under such Act. To the extent any
provision of the Plan or action by the Committee fails to so comply, it shall be
deemed null and void, to the extent permitted by law and deemed advisable by the
Committee.

18.     EFFECTIVE DATE; TERMINATION DATE

        The Plan is effective as of May 23, 2002,, as amended and restated May
31, 2002. Unless previously terminated, the Plan shall terminate at the close of
business on May 23, 2012, ten years from the effective date.

                                      -11-

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